In the Senate of the United States,

July 23, 1996.

Resolved, That the bill from the House of Representatives (H.R. 3734) entitled ‘‘An Act to provide for reconciliation pursuant to section 201(a)(1) of the concurrent resolution on the budget for fiscal year 1997’’, do pass with the

following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Personal Responsibility,

3 Work Opportunity, and Medicaid Restructuring Act of

4 1996’’.
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1 TITLE I—AGRICULTURE AND

2 RELATED PROVISIONS

3 SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This title may be cited as the ‘‘Ag5 ricultural Reconciliation Act of 1996’’.

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

7 title is as follows:

TITLE I—AGRICULTURE AND RELATED PROVISIONS

Sec. 1001. Short title; table of contents.

Subtitle A—Food Stamps and Commodity Distribution

CHAPTER 1—FOOD STAMP PROGRAM

Sec. 1111. Definition of certification period.

Sec. 1112. Definition of coupon.

Sec. 1113. Treatment of children living at home.

Sec. 1114. Adjustment of thrifty food plan.

Sec. 1115. Definition of homeless individual.

Sec. 1116. State option for eligibility standards.

Sec. 1117. Earnings of students.

Sec. 1118. Energy assistance.

Sec. 1119. Deductions from income.

Sec. 1120. Vehicle allowance.

Sec. 1121. Vendor payments for transitional housing counted as income.

Sec. 1122. Simplified calculation of income for the self-employed.

Sec. 1123. Doubled penalties for violating food stamp program requirements.

Sec. 1124. Disqualification of convicted individuals.

Sec. 1125. Disqualification.

Sec. 1126. Employment and training.

Sec. 1127. Food stamp eligibility.

Sec. 1128. Comparable treatment for disqualification.

Sec. 1129. Disqualification for receipt of multiple food stamp benefits.

Sec. 1130. Disqualification of fleeing felons.

Sec. 1131. Cooperation with child support agencies.

Sec. 1132. Disqualification relating to child support arrears.

Sec. 1133. Work requirement.

Sec. 1134. Encouragement of electronic benefit transfer systems.

Sec. 1135. Value of minimum allotment.

Sec. 1136. Benefits on recertification.

Sec. 1137. Optional combined allotment for expedited households.

Sec. 1138. Failure to comply with other means-tested public assistance programs.

Sec. 1139. Allotments for households residing in centers.

Sec. 1140. Condition precedent for approval of retail food stores and wholesale

food concerns.

Sec. 1141. Authority to establish authorization periods.
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Sec. 1142. Information for verifying eligibility for authorization.

Sec. 1143. Waiting period for stores that fail to meet authorization criteria.

Sec. 1144. Operation of food stamp offices.

Sec. 1145. State employee and training standards.

Sec. 1146. Exchange of law enforcement information.

Sec. 1147. Withdrawing fair hearing requests.

Sec. 1148. Income, eligibility, and immigration status verification systems.

Sec. 1149. Disqualification of retailers who intentionally submit falsified applications.

Sec. 1150. Disqualification of retailers who are disqualified under the WIC program.

Sec. 1151. Collection of overissuances.

Sec. 1152. Authority to suspend stores violating program requirements pending

administrative and judicial review.

Sec. 1153. Expanded criminal forfeiture for violations.

Sec. 1154. Limitation on Federal match.

Sec. 1155. Standards for administration.

Sec. 1156. Work supplementation or support program.

Sec. 1157. Response to waivers.

Sec. 1158. Employment initiatives program.

Sec. 1159. Reauthorization.

Sec. 1160. Simplified food stamp program.

CHAPTER 2—COMMODITY DISTRIBUTION PROGRAMS

Sec. 1171. Emergency food assistance program.

Sec. 1172. Food bank demonstration project.

Sec. 1173. Hunger prevention programs.

Sec. 1174. Report on entitlement commodity processing.

Subtitle B—Child Nutrition Programs

CHAPTER 1—AMENDMENTS TO THE NATIONAL SCHOOL LUNCH ACT

Sec. 1201. State disbursement to schools.

Sec. 1202. Nutritional and other program requirements.

Sec. 1203. Free and reduced price policy statement.

Sec. 1204. Special assistance.

Sec. 1205. Miscellaneous provisions and definitions.

Sec. 1206. Commodity distribution.

Sec. 1207. Child and adult care food program.

Sec. 1208. Pilot projects.

Sec. 1209. Reduction of paperwork.

Sec. 1210. Information on income eligibility.

Sec. 1211. Nutrition guidance for child nutrition programs.

CHAPTER 2—AMENDMENTS TO THE CHILD NUTRITION ACT OF 1966

Sec. 1251. Special milk program.

Sec. 1252. Free and reduced price policy statement.

Sec. 1253. School breakfast program authorization.

Sec. 1254. State administrative expenses.

Sec. 1255. Regulations.

Sec. 1256. Prohibitions.

Sec. 1257. Miscellaneous provisions and definitions.

Sec. 1258. Accounts and records.
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Sec. 1259. Special supplemental nutrition program for women, infants, and children.

Sec. 1260. Cash grants for nutrition education.

Sec. 1261. Nutrition education and training.

Sec. 1262. Rounding rules.

1 Subtitle A—Food Stamps and

2 Commodity Distribution

3 CHAPTER 1—FOOD STAMP PROGRAM

4 SEC. 1111. DEFINITION OF CERTIFICATION PERIOD.

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

6 2012(c)) is amended by striking ‘‘Except as provided’’ and

7 all that follows and inserting the following: ‘‘The certifi8 cation period shall not exceed 12 months, except that the

9 certification period may be up to 24 months if all adult

10 household members are elderly or disabled. A State agency

11 shall have at least 1 contact with each certified household

12 every 12 months.’’.

13 SEC. 1112. DEFINITION OF COUPON.

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

15 2012(d)) is amended by striking ‘‘or type of certificate’’ and

16 inserting ‘‘type of certificate, authorization card, cash or

17 check issued in lieu of a coupon, or access device, including

18 an electronic benefit transfer card or personal identification

19 number,’’.

20 SEC. 1113. TREATMENT OF CHILDREN LIVING AT HOME.

21 The second sentence of section 3(i) of the Food Stamp

22 Act of 1977 (7 U.S.C. 2012(i)) is amended by striking
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1 ‘‘(who are not themselves parents living with their children

2 or married and living with their spouses)’’.

3 SEC. 1114. ADJUSTMENT OF THRIFTY FOOD PLAN.

4 The second sentence of section 3(o) of the Food Stamp

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

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

7 the following: ‘‘shall—

8 ‘‘(1) make’’;

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

10 the following: ‘‘scale;

11 ‘‘(2) make’’;

12 (3) by striking ‘‘Alaska, (3) make’’ and inserting

13 the following: ‘‘Alaska;

14 ‘‘(3) make’’; and

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

16 that follows through the end of the subsection and in17 serting the following: ‘‘Columbia; and

18 ‘‘(4) on October 1, 1996, and each October 1

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

20 of the diet in the preceding June, and round the re21 sult to the nearest lower dollar increment for each

22 household size, except that on October 1, 1996, the

23 Secretary may not reduce the cost of the diet in effect

24 on September 30, 1996.’’.
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1 SEC. 1115. DEFINITION OF HOMELESS INDIVIDUAL.

2 Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7

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

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

5 SEC. 1116. STATE OPTION FOR ELIGIBILITY STANDARDS.

6 Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C.

7 2014(d)) is amended by striking ‘‘(b) The Secretary’’ and

8 inserting the following:

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

10 provided in this Act, the Secretary’’.

11 SEC. 1117. EARNINGS OF STUDENTS.

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

13 U.S.C. 2014(d)(7)) is amended by striking ‘‘21 years of age

14 or younger’’ and inserting ‘‘19 years of age or younger (17

15 years of age or younger in fiscal year 2002)’’.

16 SEC. 1118. ENERGY ASSISTANCE.

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

18 of 1977 (7 U.S.C. 2014(d)) is amended by striking para19 graph (11) and inserting the following: ‘‘(11)(A) any pay20 ments or allowances made for the purpose of providing en21 ergy assistance under any Federal law, or (B) a 1-time

22 payment or allowance made under a Federal or State law

23 for the costs of weatherization or emergency repair or re24 placement of an unsafe or inoperative furnace or other heat25 ing or cooling device,’’.
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1 (b) CONFORMING AMENDMENTS.—Section 5(k) of the

2 Food Stamp Act of 1977 (7 U.S.C. 2014(k)) is amended—

3 (1) in paragraph (1)—

4 (A) in subparagraph (A), by striking ‘‘plan

5 for aid to families with dependent children ap6 proved’’ and inserting ‘‘program funded’’; and

7 (B) in subparagraph (B), by striking ‘‘, not

8 including energy or utility-cost assistance,’’;

9 (2) in paragraph (2), by striking subparagraph

10 (C) and inserting the following:

11 ‘‘(C) a payment or allowance described in sub12 section (d)(11);’’; and

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

14 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY15 MENTS.—

16 ‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For

17 purposes of subsection (d)(1), a payment made

18 under a State law to provide energy assistance

19 to a household shall be considered money payable

20 directly to the household.

21 ‘‘(B) ENERGY ASSISTANCE EXPENSES.—For

22 purposes of subsection (e)(7), an expense paid on

23 behalf of a household under a State law to pro24 vide energy assistance shall be considered an out-
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1 of-pocket expense incurred and paid by the

2 household.’’.

3 SEC. 1119. DEDUCTIONS FROM INCOME.

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

5 of 1977 (7 U.S.C. 2014) is amended by striking subsection

6 (e) and inserting the following:

7 ‘‘(e) DEDUCTIONS FROM INCOME.—

8 ‘‘(1) STANDARD DEDUCTION.—

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

10 allow a standard deduction for each household in

11 the 48 contiguous States and the District of Co12 lumbia, Alaska, Hawaii, Guam, and the Virgin

13 Islands of the United States of—

14 ‘‘(i) for the period beginning October 1,

15 1995, and ending November 30, 1996, $134,

16 $229, $189, $269, and $118, respectively;

17 ‘‘(ii) for the period beginning Decem18 ber 1, 1996, and ending September 30,

19 2001, $120, $206, $170, $242, and $106, re20 spectively;

21 ‘‘(iii) for the period beginning October

22 1, 2001, and ending August 31, 2002, $113,

23 $193, $159, $227, and $100, respectively;

24 and
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1 ‘‘(iv) for the period beginning Septem2 ber 1, 2002, and ending September 30,

3 2002, $120, $206, $170, $242, and $106, re4 spectively.

5 ‘‘(B) ADJUSTMENT FOR INFLATION.—On

6 October 1, 2002, and each October 1 thereafter,

7 the Secretary shall adjust the standard deduction

8 to the nearest lower dollar increment to reflect

9 changes in the Consumer Price Index for all

10 urban consumers published by the Bureau of

11 Labor Statistics, for items other than food, for

12 the 12-month period ending the preceding June

13 30.

14 ‘‘(2) EARNED INCOME DEDUCTION.—

15 ‘‘(A) DEFINITION OF EARNED INCOME.—In

16 this paragraph, the term ‘earned income’ does

17 not include—

18 ‘‘(i) income excluded by subsection (d);

19 or

20 ‘‘(ii) any portion of income earned

21 under a work supplementation or support

22 program, as defined under section 16(b),

23 that is attributable to public assistance.

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

25 subparagraph (C), a household with earned in-
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1 come shall be allowed a deduction of 20 percent

2 of all earned income to compensate for taxes,

3 other mandatory deductions from salary, and

4 work expenses.

5 ‘‘(C) EXCEPTION.—The deduction described

6 in subparagraph (B) shall not be allowed with

7 respect to determining an overissuance due to the

8 failure of a household to report earned income in

9 a timely manner.

10 ‘‘(3) DEPENDENT CARE DEDUCTION.—

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

12 entitled, with respect to expenses (other than ex13 cluded expenses described in subparagraph (B))

14 for dependent care, to a dependent care deduc15 tion, the maximum allowable level of which shall

16 be $200 per month for each dependent child

17 under 2 years of age and $175 per month for

18 each other dependent, for the actual cost of pay19 ments necessary for the care of a dependent if the

20 care enables a household member to accept or

21 continue employment, or training or education

22 that is preparatory for employment.

23 ‘‘(B) EXCLUDED EXPENSES.—The excluded

24 expenses referred to in subparagraph (A) are—
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1 ‘‘(i) expenses paid on behalf of the

2 household by a third party;

3 ‘‘(ii) amounts made available and ex4 cluded, for the expenses referred to in sub5 paragraph (A), under subsection (d)(3); and

6 ‘‘(iii) expenses that are paid under sec7 tion 6(d)(4).

8 ‘‘(4) DEDUCTION FOR CHILD SUPPORT PAY9 MENTS.—

10 ‘‘(A) IN GENERAL.—A household shall be en11 titled to a deduction for child support payments

12 made by a household member to or for an indi13 vidual who is not a member of the household if

14 the household member is legally obligated to

15 make the payments.

16 ‘‘(B) METHODS FOR DETERMINING

17 AMOUNT.—The Secretary may prescribe by regu18 lation the methods, including calculation on a

19 retrospective basis, that a State agency shall use

20 to determine the amount of the deduction for

21 child support payments.

22 ‘‘(5) HOMELESS SHELTER ALLOWANCE.—Under

23 rules prescribed by the Secretary, a State agency may

24 develop a standard homeless shelter allowance, which

25 shall not exceed $143 per month, for such expenses as
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1 may reasonably be expected to be incurred by house2 holds in which all members are homeless individuals

3 but are not receiving free shelter throughout the

4 month. A State agency that develops the allowance

5 may use the allowance in determining eligibility and

6 allotments for the households. The State agency may

7 make a household with extremely low shelter costs in8 eligible for the allowance.

9 ‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—

10 ‘‘(A) IN GENERAL.—A household containing

11 an elderly or disabled member shall be entitled,

12 with respect to expenses other than expenses paid

13 on behalf of the household by a third party, to

14 an excess medical expense deduction for the por15 tion of the actual costs of allowable medical ex16 penses, incurred by the elderly or disabled mem17 ber, exclusive of special diets, that exceeds $35

18 per month.

19 ‘‘(B) METHOD OF CLAIMING DEDUCTION.—

20 ‘‘(i) IN GENERAL.—A State agency

21 shall offer an eligible household under sub22 paragraph (A) a method of claiming a de23 duction for recurring medical expenses that

24 are initially verified under the excess medi25 cal expense deduction in lieu of submitting
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1 information on, or verification of, actual ex2 penses on a monthly basis.

3 ‘‘(ii) METHOD.—The method described

4 in clause (i) shall—

5 ‘‘(I) be designed to minimize the

6 burden for the eligible elderly or dis7 abled household member choosing to de8 duct the recurrent medical expenses of

9 the member pursuant to the method;

10 ‘‘(II) rely on reasonable estimates

11 of the expected medical expenses of the

12 member for the certification period (in13 cluding changes that can be reasonably

14 anticipated based on available infor15 mation about the medical condition of

16 the member, public or private medical

17 insurance coverage, and the current

18 verified medical expenses incurred by

19 the member); and

20 ‘‘(III) not require further report21 ing or verification of a change in med22 ical expenses if such a change has been

23 anticipated for the certification period.

24 ‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
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1 ‘‘(A) IN GENERAL.—A household shall be

2 entitled, with respect to expenses other than ex3 penses paid on behalf of the household by a third

4 party, to an excess shelter expense deduction to

5 the extent that the monthly amount expended by

6 a household for shelter exceeds an amount equal

7 to 50 percent of monthly household income after

8 all other applicable deductions have been al9 lowed.

10 ‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—

11 ‘‘(i) THROUGH DECEMBER 31, 1996.—

12 In the case of a household that does not con13 tain an elderly or disabled individual, dur14 ing the 15-month period ending December

15 31, 1996, the excess shelter expense deduc16 tion shall not exceed—

17 ‘‘(I) in the 48 contiguous States

18 and the District of Columbia, $247 per

19 month; and

20 ‘‘(II) in Alaska, Hawaii, Guam,

21 and the Virgin Islands of the United

22 States, $429, $353, $300, and $182 per

23 month, respectively.

24 ‘‘(i) AFTER DECEMBER 31, 1996.—In

25 the case of a household that does not contain
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1 an elderly or disabled individual, after De2 cember 31, 1996, the excess shelter expense

3 deduction shall not exceed—

4 ‘‘(I) in the 48 contiguous States

5 and the District of Columbia, $342 per

6 month; and

7 ‘‘(II) in Alaska, Hawaii, Guam,

8 and the Virgin Islands of the United

9 States, $594, $489, $415, and $252 per

10 month, respectively.

11 ‘‘(C) STANDARD UTILITY ALLOWANCE.—

12 ‘‘(i) IN GENERAL.—In computing the

13 excess shelter expense deduction, a State

14 agency may use a standard utility allow15 ance in accordance with regulations pro16 mulgated by the Secretary, except that a

17 State agency may use an allowance that

18 does not fluctuate within a year to reflect

19 seasonal variations.

20 ‘‘(ii) RESTRICTIONS ON HEATING AND

21 COOLING EXPENSES.—An allowance for a

22 heating or cooling expense may not be used

23 in the case of a household that—

24 ‘‘(I) does not incur a heating or

25 cooling expense, as the case may be;
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1 ‘‘(II) does incur a heating or cool2 ing expense but is located in a public

3 housing unit that has central utility

4 meters and charges households, with re5 gard to the expense, only for excess

6 utility costs; or

7 ‘‘(III) shares the expense with,

8 and lives with, another individual not

9 participating in the food stamp pro10 gram, another household participating

11 in the food stamp program, or both,

12 unless the allowance is prorated be13 tween the household and the other indi14 vidual, household, or both.

15 ‘‘(iii) MANDATORY ALLOWANCE.—

16 ‘‘(I) IN GENERAL.—A State agen17 cy may make the use of a standard

18 utility allowance mandatory for all

19 households with qualifying utility costs

20 if—

21 ‘‘(aa) the State agency has

22 developed 1 or more standards

23 that include the cost of heating

24 and cooling and 1 or more stand-
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1 ards that do not include the cost

2 of heating and cooling; and

3 ‘‘(bb) the Secretary finds that

4 the standards will not result in

5 an increased cost to the Secretary.

6 ‘‘(II) HOUSEHOLD ELECTION.—A

7 State agency that has not made the use

8 of a standard utility allowance man9 datory under subclause (I) shall allow

10 a household to switch, at the end of a

11 certification period, between the stand12 ard utility allowance and a deduction

13 based on the actual utility costs of the

14 household.

15 ‘‘(iv) AVAILABILITY OF ALLOWANCE TO

16 RECIPIENTS OF ENERGY ASSISTANCE.—

17 ‘‘(I) IN GENERAL.—Subject to

18 subclause (II), if a State agency elects

19 to use a standard utility allowance

20 that reflects heating or cooling costs,

21 the standard utility allowance shall be

22 made available to households receiving

23 a payment, or on behalf of which a

24 payment is made, under the Low-In25 come Home Energy Assistance Act of
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1 1981 (42 U.S.C. 8621 et seq.) or other

2 similar energy assistance program, if

3 the household still incurs out-of-pocket

4 heating or cooling expenses in excess of

5 any assistance paid on behalf of the

6 household to an energy provider.

7 ‘‘(II) SEPARATE ALLOWANCE.—A

8 State agency may use a separate

9 standard utility allowance for house10 holds on behalf of which a payment de11 scribed in subclause (I) is made, but

12 may not be required to do so.

13 ‘‘(III) STATES NOT ELECTING TO

14 USE SEPARATE ALLOWANCE.—A State

15 agency that does not elect to use a sep16 arate allowance but makes a single

17 standard utility allowance available to

18 households incurring heating or cooling

19 expenses (other than a household de20 scribed in subclause (I) or (II) of

21 clause (ii)) may not be required to re22 duce the allowance due to the provision

23 (directly or indirectly) of assistance

24 under the Low-Income Home Energy
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1 Assistance Act of 1981 (42 U.S.C. 8621

2 et seq.).

3 ‘‘(IV) PRORATION OF ASSIST4 ANCE.—For the purpose of the food

5 stamp program, assistance provided

6 under the Low-Income Home Energy

7 Assistance Act of 1981 (42 U.S.C. 8621

8 et seq.) shall be considered to be pro9 rated over the entire heating or cooling

10 season for which the assistance was

11 provided.’’.

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

13 the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is

14 amended by striking ‘‘. Under rules prescribed’’ and all that

15 follows through ‘‘verifies higher expenses’’.

16 SEC. 1120. VEHICLE ALLOWANCE.

17 Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.

18 2014(g)) is amended by striking paragraph (2) and insert19 ing the following:

20 ‘‘(2) INCLUDED ASSETS.—

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

22 provisions of this paragraph, the Secretary shall,

23 in prescribing inclusions in, and exclusions

24 from, financial resources, follow the regulations

25 in force as of June 1, 1982 (other than those re-
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1 lating to licensed vehicles and inaccessible re2 sources).

3 ‘‘(B) ADDITIONAL INCLUDED ASSETS.—The

4 Secretary shall include in financial resources—

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

6 used for recreational purposes;

7 ‘‘(ii) any vacation home;

8 ‘‘(iii) any mobile home used primarily

9 for vacation purposes;

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

11 licensed vehicle that is used for household

12 transportation or to obtain or continue em13 ployment to the extent that the fair market

14 value of the vehicle exceeds $4,600 through

15 September 30, 1996, and $4,650 beginning

16 October 1, 1996; and

17 ‘‘(v) any savings or retirement account

18 (including an individual account), regard19 less of whether there is a penalty for early

20 withdrawal.

21 ‘‘(C) EXCLUDED VEHICLES.—A vehicle (and

22 any other property, real or personal, to the ex23 tent the property is directly related to the main24 tenance or use of the vehicle) shall not be in-
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1 cluded in financial resources under this para2 graph if the vehicle is—

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

4 ‘‘(ii) necessary for the transportation

5 of a physically disabled household member;

6 or

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

8 carry fuel for heating or water for home use

9 and provides the primary source of fuel or

10 water, respectively, for the household.’’.

11 SEC. 1121. VENDOR PAYMENTS FOR TRANSITIONAL HOUS12 ING COUNTED AS INCOME.

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

14 U.S.C. 2014(k)(2)) is amended—

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

16 (2) by redesignating subparagraphs (G) and (H)

17 as subparagraphs (F) and (G), respectively.

18 SEC. 1122. SIMPLIFIED CALCULATION OF INCOME FOR THE

19 SELF-EMPLOYED.

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

21 2014) is amended by adding at the end the following:

22 ‘‘(n) SIMPLIFIED CALCULATION OF INCOME FOR THE

23 SELF-EMPLOYED.—

24 ‘‘(1) IN GENERAL.—Not later than 1 year after

25 the date of enactment of this subsection, the Secretary
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1 shall establish a procedure, designed to not increase

2 Federal costs, by which a State may use a reasonable

3 estimate of income excluded under subsection (d)(9)

4 in lieu of calculating the actual cost of producing self5 employment income.

6 ‘‘(2) INCLUSIVE OF ALL TYPES OF INCOME.—The

7 procedure established under paragraph (1) shall allow

8 a State to estimate income for all types of self-em9 ployment income.

10 ‘‘(3) DIFFERENCES FOR DIFFERENT TYPES OF

11 INCOME.—The procedure established under paragraph

12 (1) may differ for different types of self-employment

13 income.’’.

14 SEC. 1123. DOUBLED PENALTIES FOR VIOLATING FOOD

15 STAMP PROGRAM REQUIREMENTS.

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

17 U.S.C. 2015(b)(1)) is amended—

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

19 inserting ‘‘1 year’’; and

20 (2) in clause (ii), by striking ‘‘1 year’’ and in21 serting ‘‘2 years’’.

22 SEC. 1124. DISQUALIFICATION OF CONVICTED INDIVID23 UALS.

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

25 U.S.C. 2015(b)(1)(iii)) is amended—
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1 (1) in subclause (II), by striking ‘‘or’’ at the end;

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

3 the end and inserting ‘‘; or’’; and

4 (3) by inserting after subclause (III) the follow5 ing:

6 ‘‘(IV) a conviction of an offense under sub7 section (b) or (c) of section 15 involving an item

8 covered by subsection (b) or (c) of section 15 hav9 ing a value of $500 or more.’’.

10 SEC. 1125. DISQUALIFICATION.

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

12 of 1977 (7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1)

13 Unless otherwise exempted by the provisions’’ and all that

14 follows through the end of paragraph (1) and inserting the

15 following:

16 ‘‘(d) CONDITIONS OF PARTICIPATION.—

17 ‘‘(1) WORK REQUIREMENTS.—

18 ‘‘(A) IN GENERAL.—No physically and

19 mentally fit individual over the age of 15 and

20 under the age of 60 shall be eligible to partici21 pate in the food stamp program if the individ22 ual—

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

24 and every 12 months thereafter, to register
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1 for employment in a manner prescribed by

2 the Secretary;

3 ‘‘(ii) refuses without good cause to par4 ticipate in an employment and training

5 program established under paragraph (4),

6 to the extent required by the State agency;

7 ‘‘(iii) refuses without good cause to ac8 cept an offer of employment, at a site or

9 plant not subject to a strike or lockout at

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

11 than the higher of—

12 ‘‘(I) the applicable Federal or

13 State minimum wage; or

14 ‘‘(II) 80 percent of the wage that

15 would have governed had the minimum

16 hourly rate under section 6(a)(1) of the

17 Fair Labor Standards Act of 1938 (29

18 U.S.C. 206(a)(1)) been applicable to

19 the offer of employment;

20 ‘‘(iv) refuses without good cause to pro21 vide a State agency with sufficient informa22 tion to allow the State agency to determine

23 the employment status or the job availabil24 ity of the individual;
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1 ‘‘(v) voluntarily and without good

2 cause—

3 ‘‘(I) quits a job; or

4 ‘‘(II) reduces work effort and,

5 after the reduction, the individual is

6 working less than 30 hours per week;

7 or

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

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

10 individual who is the head of a household be11 comes ineligible to participate in the food stamp

12 program under subparagraph (A), the household

13 shall, at the option of the State agency, become

14 ineligible to participate in the food stamp pro15 gram for a period, determined by the State agen16 cy, that does not exceed the lesser of—

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

18 the individual determined under subpara19 graph (C); or

20 ‘‘(ii) 180 days.

21 ‘‘(C) DURATION OF INELIGIBILITY.—

22 ‘‘(i) FIRST VIOLATION.—The first time

23 that an individual becomes ineligible to

24 participate in the food stamp program
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1 under subparagraph (A), the individual

2 shall remain ineligible until the later of—

3 ‘‘(I) the date the individual be4 comes eligible under subparagraph (A);

5 ‘‘(II) the date that is 1 month

6 after the date the individual became

7 ineligible; or

8 ‘‘(III) a date determined by the

9 State agency that is not later than 3

10 months after the date the individual

11 became ineligible.

12 ‘‘(ii) SECOND VIOLATION.—The second

13 time that an individual becomes ineligible

14 to participate in the food stamp program

15 under subparagraph (A), the individual

16 shall remain ineligible until the later of—

17 ‘‘(I) the date the individual be18 comes eligible under subparagraph (A);

19 ‘‘(II) the date that is 3 months

20 after the date the individual became

21 ineligible; or

22 ‘‘(III) a date determined by the

23 State agency that is not later than 6

24 months after the date the individual

25 became ineligible.
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1 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA2 TION.—The third or subsequent time that

3 an individual becomes ineligible to partici4 pate in the food stamp program under sub5 paragraph (A), the individual shall remain

6 ineligible until the later of—

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

9 ‘‘(II) the date that is 6 months

10 after the date the individual became

11 ineligible;

12 ‘‘(III) a date determined by the

13 State agency; or

14 ‘‘(IV) at the option of the State

15 agency, permanently.

16 ‘‘(D) ADMINISTRATION.—

17 ‘‘(i) GOOD CAUSE.—The Secretary

18 shall determine the meaning of good cause

19 for the purpose of this paragraph.

20 ‘‘(ii) VOLUNTARY QUIT.—The Secretary

21 shall determine the meaning of voluntarily

22 quitting and reducing work effort for the

23 purpose of this paragraph.

24 ‘‘(iii) DETERMINATION BY STATE

25 AGENCY.—
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1 ‘‘(I) IN GENERAL.—Subject to

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

3 a State agency shall determine—

4 ‘‘(aa) the meaning of any

5 term used in subparagraph (A);

6 ‘‘(bb) the procedures for de7 termining whether an individual

8 is in compliance with a require9 ment under subparagraph (A);

10 and

11 ‘‘(cc) whether an individual

12 is in compliance with a require13 ment under subparagraph (A).

14 ‘‘(II) NOT LESS RESTRICTIVE.—A

15 State agency may not use a meaning,

16 procedure, or determination under sub17 clause (I) that is less restrictive on in18 dividuals receiving benefits under this

19 Act than a comparable meaning, proce20 dure, or determination under a State

21 program funded under part A of title

22 IV of the Social Security Act (42

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

24 ‘‘(iv) STRIKE AGAINST THE GOVERN25 MENT.—For the purpose of subparagraph
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1 (A)(v), an employee of the Federal Govern2 ment, a State, or a political subdivision of

3 a State, who is dismissed for participating

4 in a strike against the Federal Government,

5 the State, or the political subdivision of the

6 State shall be considered to have voluntarily

7 quit without good cause.

8 ‘‘(v) SELECTING A HEAD OF HOUSE9 HOLD.—

10 ‘‘(I) IN GENERAL.—For purposes

11 of this paragraph, the State agency

12 shall allow the household to select any

13 adult parent of a child in the house14 hold as the head of the household if all

15 adult household members making ap16 plication under the food stamp pro17 gram agree to the selection.

18 ‘‘(II) TIME FOR MAKING DESIGNA19 TION.—A household may designate the

20 head of the household under subclause

21 (I) each time the household is certified

22 for participation in the food stamp

23 program, but may not change the des24 ignation during a certification period
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1 unless there is a change in the com2 position of the household.

3 ‘‘(vi) CHANGE IN HEAD OF HOUSE4 HOLD.—If the head of a household leaves the

5 household during a period in which the

6 household is ineligible to participate in the

7 food stamp program under subparagraph

8 (B)—

9 ‘‘(I) the household shall, if other10 wise eligible, become eligible to partici11 pate in the food stamp program; and

12 ‘‘(II) if the head of the household

13 becomes the head of another household,

14 the household that becomes headed by

15 the individual shall become ineligible

16 to participate in the food stamp pro17 gram for the remaining period of ineli18 gibility.’’.

19 (b) CONFORMING AMENDMENT.—

20 (1) The second sentence of section 17(b)(2) of the

21 Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is

22 amended by striking ‘‘6(d)(1)(i)’’ and inserting

23 ‘‘6(d)(1)(A)(i)’’.
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1 (2) Section 20 of the Food Stamp Act of 1977

2 (7 U.S.C. 2029) is amended by striking subsection (f)

3 and inserting the following:

4 ‘‘(f) DISQUALIFICATION.—An individual or a house5 hold may become ineligible under section 6(d)(1) to partici6 pate in the food stamp program for failing to comply with

7 this section.’’.

8 SEC. 1126. EMPLOYMENT AND TRAINING.

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

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

11 (1) by striking ‘‘(4)(A) Not later than April 1,

12 1987, each’’ and inserting the following:

13 ‘‘(4) EMPLOYMENT AND TRAINING.—

14 ‘‘(A) IN GENERAL.—

15 ‘‘(i) IMPLEMENTATION.—Each’’;

16 (2) in subparagraph (A)—

17 (A) by inserting ‘‘work,’’ after ‘‘skills, train18 ing,’’; and

19 (B) by adding at the end the following:

20 ‘‘(ii) STATEWIDE WORKFORCE DEVEL21 OPMENT SYSTEM.—Each component of an

22 employment and training program carried

23 out under this paragraph shall be delivered

24 through a statewide workforce development
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1 system, unless the component is not avail2 able locally through such a system.’’;

3 (3) in subparagraph (B)—

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

5 striking the colon at the end and inserting the

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

7 retain the option to apply employment require8 ments prescribed under this subparagraph to a

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

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

11 and conditions’’ and all that follows through

12 ‘‘time of application’’; and

13 (C) in clause (iv)—

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

15 and

16 (ii) by redesignating subclauses (III)

17 and (IV) as subclauses (I) and (II), respec18 tively;

19 (4) in subparagraph (D)—

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

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

22 days or less’’;

23 (B) in clause (ii), by striking ‘‘but with re24 spect’’ and all that follows through ‘‘child care’’;

25 and
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1 (C) in clause (iii), by striking ‘‘, on the

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

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

4 be valid’’;

5 (5) in subparagraph (E), by striking the third

6 sentence;

7 (6) in subparagraph (G)—

8 (A) by striking ‘‘(G)(i) The State’’ and in9 serting ‘‘(G) The State’’; and

10 (B) by striking clause (ii);

11 (7) in subparagraph (H), by striking ‘‘(H)(i)

12 The Secretary’’ and all that follows through ‘‘(ii) Fed13 eral funds’’ and inserting ‘‘(H) Federal funds’’;

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

15 was in operation,’’ and all that follows through ‘‘So16 cial Security Act’’ and inserting the following: ‘‘), ex17 cept that no such payment or reimbursement shall ex18 ceed the applicable local market rate’’;

19 (9)(A) by striking subparagraphs (K) and (L)

20 and inserting the following:

21 ‘‘(K) LIMITATION ON FUNDING.—Notwith22 standing any other provision of this paragraph,

23 the amount of funds a State agency uses to carry

24 out this paragraph (including funds used to

25 carry out subparagraph (I)) for participants
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1 who are receiving benefits under a State pro2 gram funded under part A of title IV of the So3 cial Security Act (42 U.S.C. 601 et seq.) shall

4 not exceed the amount of funds the State agency

5 used in fiscal year 1995 to carry out this para6 graph for participants who were receiving bene7 fits in fiscal year 1995 under a State program

8 funded under part A of title IV of the Act (42

9 U.S.C. 601 et seq.).’’; and

10 (B) by redesignating subparagraphs (M) and (N)

11 as subparagraphs (L) and (M), respectively; and

12 (10) in subparagraph (L), as so redesignated—

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

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

15 (B) by striking clause (ii).

16 (b) FUNDING.—Section 16(h) of the Food Stamp Act

17 of 1977 (7 U.S.C. 2025(h)) is amended by striking

18 ‘‘(h)(1)(A) The Secretary’’ and all that follows through the

19 end of paragraph (1) and inserting the following:

20 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PRO21 GRAMS.—

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) AMOUNTS.—To carry out employment

24 and training programs, the Secretary shall re25 serve for allocation to State agencies from funds
35

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1 made available for each fiscal year under section

2 18(a)(1) the amount of—

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

4 and

5 ‘‘(ii) for each of fiscal years 1997

6 through 2002, $85,000,000.

7 ‘‘(B) ALLOCATION.—The Secretary shall al8 locate the amounts reserved under subparagraph

9 (A) among the State agencies using a reasonable

10 formula (as determined by the Secretary) that

11 gives consideration to the population in each

12 State affected by section 6(o).

13 ‘‘(C) REALLOCATION.—

14 ‘‘(i) NOTIFICATION.—A State agency

15 shall promptly notify the Secretary if the

16 State agency determines that the State

17 agency will not expend all of the funds allo18 cated to the State agency under subpara19 graph (B).

20 ‘‘(ii) REALLOCATION.—On notification

21 under clause (i), the Secretary shall reallo22 cate the funds that the State agency will not

23 expend as the Secretary considers appro24 priate and equitable.
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1 ‘‘(D) MINIMUM ALLOCATION.—Notwith2 standing subparagraphs (A) through (C), the

3 Secretary shall ensure that each State agency op4 erating an employment and training program

5 shall receive not less than $50,000 for each fiscal

6 year.’’.

7 (c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2)

8 of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is

9 amended by inserting before the period at the end the follow10 ing: ‘‘, including the costs for case management and case11 work to facilitate the transition from economic dependency

12 to self-sufficiency through work’’.

13 (d) REPORTS.—Section 16(h) of the Food Stamp Act

14 of 1977 (7 U.S.C. 2025(h)) is amended—

15 (1) in paragraph (5)—

16 (A) by striking ‘‘(5)(A) The Secretary’’ and

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

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

19 (2) by striking paragraph (6).

20 SEC. 1127. FOOD STAMP ELIGIBILITY.

21 The third sentence of section 6(f) of the Food Stamp

22 Act of 1977 (7 U.S.C. 2015(f)) is amended by inserting ‘‘,

23 at State option,’’ after ‘‘less’’.
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1 SEC. 1128. COMPARABLE TREATMENT FOR DISQUALIFICA2 TION.

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

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

5 the following:

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

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

10 member to perform an action required under a Fed11 eral, State, or local law relating to a means-tested

12 public assistance program, the State agency may im13 pose the same disqualification on the member of the

14 household under the food stamp program.

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

17 of an individual to perform an action required under

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

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

20 rules and procedures that apply under part A of title

21 IV of the Act to impose the same disqualification

22 under the food stamp program.

23 ‘‘(3) APPLICATION AFTER DISQUALIFICATION PE24 RIOD.—A member of a household disqualified under

25 paragraph (1) may, after the disqualification period

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

2 prior disqualification under subsection (d) shall be

3 considered in determining eligibility.’’.

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

5 Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—

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

7 end;

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

9 the end and inserting a semicolon; and

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

11 ‘‘(26) the guidelines the State agency uses in car12 rying out section 6(i); and’’.

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

14 the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is

15 amended by striking ‘‘that is comparable to a requirement

16 of paragraph (1)’’.

17 SEC. 1129. DISQUALIFICATION FOR RECEIPT OF MULTIPLE

18 FOOD STAMP BENEFITS.

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

20 2015), as amended by section 1129, is amended by adding

21 at the end the following:

22 ‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE

23 FOOD STAMP BENEFITS.—An individual shall be ineligible

24 to participate in the food stamp program as a member of

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

2 a Federal or State court of having made, a fraudulent state3 ment or representation with respect to the identity or place

4 of residence of the individual in order to receive multiple

5 benefits simultaneously under the food stamp program.’’.

6 SEC. 1130. DISQUALIFICATION OF FLEEING FELONS.

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

8 2015), as amended by section 1130, is amended by adding

9 at the end the following:

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

11 member of a household who is otherwise eligible to partici12 pate in the food stamp program shall be eligible to partici13 pate in the program as a member of that or any other

14 household during any period during which the individual

15 is—

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

17 confinement after conviction, under the law of the

18 place from which the individual is fleeing, for a

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

20 under the law of the place from which the individual

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

22 misdemeanor under the law of New Jersey; or

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

24 imposed under a Federal or State law.’’.
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1 SEC. 1131. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

3 2015), as amended by section 1131, is amended by adding

4 at the end the following:

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

6 SUPPORT AGENCIES.—

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

8 agency, subject to paragraphs (2) and (3), no natural

9 or adoptive parent or other individual (collectively re10 ferred to in this subsection as ‘the individual’) who is

11 living with and exercising parental control over a

12 child under the age of 18 who has an absent parent

13 shall be eligible to participate in the food stamp pro14 gram unless the individual cooperates with the State

15 agency administering the program established under

16 part D of title IV of the Social Security Act (42

17 U.S.C. 651 et seq.)—

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

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

20 ‘‘(B) in obtaining support for—

21 ‘‘(i) the child; or

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

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

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

25 good cause is found for refusing to cooperate, as deter26 mined by the State agency in accordance with stand-
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1 ards prescribed by the Secretary in consultation with

2 the Secretary of Health and Human Services. The

3 standards shall take into consideration circumstances

4 under which cooperation may be against the best in5 terests of the child.

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

7 payment of a fee or other cost for services provided

8 under part D of title IV of the Social Security Act

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

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

11 CHILD SUPPORT AGENCIES.—

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

13 agency, subject to paragraphs (2) and (3), a putative

14 or identified noncustodial parent of a child under the

15 age of 18 (referred to in this subsection as ‘the indi16 vidual’) shall not be eligible to participate in the food

17 stamp program if the individual refuses to cooperate

18 with the State agency administering the program es19 tablished under part D of title IV of the Social Secu20 rity Act (42 U.S.C. 651 et seq.)—

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

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

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

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

3 Human Services, shall develop guidelines on

4 what constitutes a refusal to cooperate under

5 paragraph (1).

6 ‘‘(B) PROCEDURES.—The State agency shall

7 develop procedures, using guidelines developed

8 under subparagraph (A), for determining wheth9 er an individual is refusing to cooperate under

10 paragraph (1).

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

12 payment of a fee or other cost for services provided

13 under part D of title IV of the Social Security Act

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

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

16 safeguards to restrict the use of information collected

17 by a State agency administering the program estab18 lished under part D of title IV of the Social Security

19 Act (42 U.S.C. 651 et seq.) to purposes for which the

20 information is collected.’’.

21 SEC. 1132. DISQUALIFICATION RELATING TO CHILD SUP22 PORT ARREARS.

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

24 2015), as amended by section 1132, is amended by adding

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

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

4 agency, no individual shall be eligible to participate

5 in the food stamp program as a member of any house6 hold during any month that the individual is delin7 quent in any payment due under a court order for the

8 support of a child of the individual.

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

10 apply if—

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

12 delay payment; or

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

14 payment plan approved by a court or the State

15 agency designated under part D of title IV of the

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

17 provide support for the child of the individual.’’.

18 SEC. 1133. WORK REQUIREMENT.

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

20 of 1977 (7 U.S.C. 2015), as amended by section 1133, is

21 amended by adding at the end the following:

22 ‘‘(o) WORK REQUIREMENT.—

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

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

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

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

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

5 ‘‘(C) a program of employment or training

6 operated or supervised by a State or political

7 subdivision of a State that meets standards ap8 proved by the Governor of the State, including a

9 program under subsection (d)(4), other than a

10 job search program or a job search training pro11 gram.

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

13 provisions of this subsection, no individual shall be el14 igible to participate in the food stamp program as a

15 member of any household if, during the preceding 12-

16 month period, the individual received food stamp ben17 efits for not less than 4 months during which the in18 dividual did not—

19 ‘‘(A) work 20 hours or more per week, aver20 aged monthly;

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

23 more per week, as determined by the State agen24 cy;
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1 ‘‘(C) participate in and comply with the re2 quirements of a program under section 20 or a

3 comparable program established by a State or

4 political subdivision of a State; or

5 ‘‘(D) receive an exemption under paragraph

6 (6).

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

8 apply to an individual if the individual is—

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

10 ‘‘(B) medically certified as physically or

11 mentally unfit for employment;

12 ‘‘(C) a parent or other member of a house13 hold with responsibility for a dependent child;

14 ‘‘(D) otherwise exempt under subsection

15 (d)(2); or

16 ‘‘(E) a pregnant woman.

17 ‘‘(4) WAIVER.—

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

19 State agency, the Secretary may waive the ap20 plicability of paragraph (2) to any group of in21 dividuals in the State if the Secretary makes a

22 determination that the area in which the indi23 viduals reside—

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

25 10 percent; or
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1 ‘‘(ii) does not have a sufficient number

2 of jobs to provide employment for the indi3 viduals.

4 ‘‘(B) RESPONSE.—The Secretary shall re5 spond to a request made pursuant to subpara6 graph (A) not later than 15 days after the State

7 agency makes the request.

8 ‘‘(C) REPORT.—The Secretary shall report

9 the basis for a waiver under subparagraph (A)

10 to the Committee on Agriculture of the House of

11 Representatives and the Committee on Agri12 culture, Nutrition, and Forestry of the Senate.

13 ‘‘(5) SUBSEQUENT ELIGIBILITY.—

14 ‘‘(A) IN GENERAL.—An individual shall be15 come eligible to participate in the food stamp

16 program if, during a 30-day period, the individ17 ual—

18 ‘‘(i) works 80 or more hours;

19 ‘‘(ii) participates in and complies with

20 the requirements of a work program for 80

21 or more hours, as determined by a State

22 agency; or

23 ‘‘(iii) participates in and complies

24 with the requirements of a program under

25 section 20 or a comparable program estab-
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1 lished by a State or political subdivision of

2 a State.

3 ‘‘(B) AFTER BECOMING ELIGIBLE.—An in4 dividual shall remain subject to paragraph (2)

5 during any 12-month period subsequent to be6 coming eligible to participate in the food stamp

7 program under subparagraph (A), except that

8 the term ‘preceding 12-month period’ in para9 graph (2) shall mean the preceding period begin10 ning on the date the individual most recently

11 satisfied the requirements of subparagraph (A).

12 ‘‘(6) STATE AGENCY EXEMPTIONS.—

13 ‘‘(A) IN GENERAL.—A State agency may ex14 empt an individual for purposes of paragraph

15 (2)(D)—

16 ‘‘(i) by reason of hardship; or

17 ‘‘(ii) if the individual participates in

18 and complies with the requirements of a

19 program of job search or job search training

20 under clauses (i) or (ii) of subsection

21 (d)(4)(B) that requires an average of not

22 less than 20 hours per week of participa23 tion.

24 ‘‘(B) LIMITATION ON HARDSHIP EXEMP25 TION.—The average monthly number of individ-
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1 uals receiving benefits due to a hardship exemp2 tion granted by a State agency under subpara3 graph (A)(i) for a fiscal year may not exceed 20

4 percent of the average monthly number of indi5 viduals receiving allotments during the fiscal

6 year in the State who are not exempt from the

7 requirements of this subsection under paragraph

8 (3) or (4).

9 ‘‘(C) LIMITATION ON JOB SEARCH EXEMP10 TION.—A State agency may not exempt an indi11 vidual under subparagraph (A)(ii) for more than

12 2 months during any 12-month period.’’.

13 (b) TRANSITION PROVISION.—During the 1-year pe14 riod beginning on the date of enactment of this Act, the

15 term ‘‘preceding 12-month period’’ in section 6(o) of the

16 Food Stamp Act of 1977, as added by subsection (a), means

17 the preceding period that begins on the date of enactment

18 of this Act.

19 SEC. 1134. ENCOURAGEMENT OF ELECTRONIC BENEFIT

20 TRANSFER SYSTEMS.

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

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

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

24 following:

25 ‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
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1 ‘‘(A) IMPLEMENTATION.—Not later than Oc2 tober 1, 2002, each State agency shall implement

3 an electronic benefit transfer system under which

4 household benefits determined under section 8(a)

5 or 26 are issued from and stored in a central

6 databank, unless the Secretary provides a waiver

7 for a State agency that faces unusual barriers to

8 implementing an electronic benefit transfer sys9 tem.

10 ‘‘(B) TIMELY IMPLEMENTATION.—Each

11 State agency is encouraged to implement an elec12 tronic benefit transfer system under subpara13 graph (A) as soon as practicable.

14 ‘‘(C) STATE FLEXIBILITY.—Subject to para15 graph (2), a State agency may procure and im16 plement an electronic benefit transfer system

17 under the terms, conditions, and design that the

18 State agency considers appropriate.

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

20 transfer system should take into account gen21 erally accepted standard operating rules based

22 on—

23 ‘‘(i) commercial electronic funds trans24 fer technology;
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1 ‘‘(ii) the need to permit interstate op2 eration and law enforcement monitoring;

3 and

4 ‘‘(iii) the need to permit monitoring

5 and investigations by authorized law en6 forcement agencies.’’;

7 (2) in paragraph (2)—

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

9 April 1, 1992,’’;

10 (B) in subparagraph (A)—

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

12 (ii) by striking ‘‘on-line’’;

13 (C) by striking subparagraph (D) and in14 serting the following:

15 ‘‘(D)(i) measures to maximize the security

16 of a system using the most recent technology

17 available that the State agency considers appro18 priate and cost effective and which may include

19 personal identification numbers, photographic

20 identification on electronic benefit transfer cards,

21 and other measures to protect against fraud and

22 abuse; and

23 ‘‘(ii) effective not later than 2 years after

24 the date of enactment of this clause, to the extent

25 practicable, measures that permit a system to
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1 differentiate items of food that may be acquired

2 with an allotment from items of food that may

3 not be acquired with an allotment;’’;

4 (D) in subparagraph (G), by striking ‘‘and’’

5 at the end;

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

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

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

9 ‘‘(I) procurement standards.’’; and

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

11 ‘‘(7) REPLACEMENT OF BENEFITS.—Regulations

12 issued by the Secretary regarding the replacement of

13 benefits and liability for replacement of benefits under

14 an electronic benefit transfer system shall be similar

15 to the regulations in effect for a paper-based food

16 stamp issuance system.

17 ‘‘(8) REPLACEMENT CARD FEE.—A State agency

18 may collect a charge for replacement of an electronic

19 benefit transfer card by reducing the monthly allot20 ment of the household receiving the replacement card.

21 ‘‘(9) OPTIONAL PHOTOGRAPHIC IDENTIFICA22 TION.—

23 ‘‘(A) IN GENERAL.—A State agency may re24 quire that an electronic benefit card contain a

25 photograph of 1 or more members of a household.
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1 ‘‘(B) OTHER AUTHORIZED USERS.—If a

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

4 State agency shall establish procedures to ensure

5 that any other appropriate member of the house6 hold or any authorized representative of the

7 household may utilize the card.

8 ‘‘(10) APPLICABLE LAW.—Disclosures, protec9 tions, responsibilities, and remedies established by the

10 Federal Reserve Board under section 904 of the Elec11 tronic Fund Transfer Act (15 U.S.C. 1693b) shall not

12 apply to benefits under this Act delivered through any

13 electronic benefit transfer system.’’.

14 (b) SENSE OF CONGRESS.—It is the sense of Congress

15 that a State that operates an electronic benefit transfer sys16 tem under the Food Stamp Act of 1977 (7 U.S.C. 2011 et

17 seq.) should operate the system in a manner that is compat18 ible with electronic benefit transfer systems operated by

19 other States.

20 SEC. 1135. VALUE OF MINIMUM ALLOTMENT.

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

22 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall

23 be adjusted’’ and all that follows through ‘‘$5’’.
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1 SEC. 1136. BENEFITS ON RECERTIFICATION.

2 Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7

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

4 one month’’.

5 SEC. 1137. OPTIONAL COMBINED ALLOTMENT FOR EXPE6 DITED HOUSEHOLDS.

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

8 2017(c)) is amended by striking paragraph (3) and insert9 ing the following:

10 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR EX11 PEDITED HOUSEHOLDS.—A State agency may pro12 vide to an eligible household applying after the 15th

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

14 household and the regular allotment of the household

15 for the following month, an allotment that is equal to

16 the total amount of the initial allotment and the first

17 regular allotment. The allotment shall be provided in

18 accordance with section 11(e)(3) in the case of a

19 household that is not entitled to expedited service and

20 in accordance with paragraphs (3) and (9) of section

21 11(e) in the case of a household that is entitled to ex22 pedited service.’’.
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1 SEC. 1138. FAILURE TO COMPLY WITH OTHER MEANS-TEST2 ED PUBLIC ASSISTANCE PROGRAMS.

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

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

5 the following:

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

8 ‘‘(1) IN GENERAL.—If the benefits of a household

9 are reduced under a Federal, State, or local law relat10 ing to a means-tested public assistance program for

11 the failure of a member of the household to perform

12 an action required under the law or program, for the

13 duration of the reduction—

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

16 the income of the household to the extent that the

17 decrease is the result of the reduction; and

18 ‘‘(B) the State agency may reduce the allot19 ment of the household by not more than 25 per20 cent.

21 ‘‘(2) RULES AND PROCEDURES.—If the allotment

22 of a household is reduced under this subsection for a

23 failure to perform an action required under part A

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

25 et seq.), the State agency may use the rules and proce26 dures that apply under part A of title IV of the Act
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1 to reduce the allotment under the food stamp pro2 gram.’’.

3 SEC. 1139. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

4 CENTERS.

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

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

7 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

8 CENTERS.—

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

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

11 alcoholic treatment program described in the last sen12 tence of section 3(i), a State agency may provide an

13 allotment for the individual to—

14 ‘‘(A) the center as an authorized representa15 tive of the individual for a period that is less

16 than 1 month; and

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

18 the center.

19 ‘‘(2) DIRECT PAYMENT.—A State agency may re20 quire an individual referred to in paragraph (1) to

21 designate the center in which the individual resides as

22 the authorized representative of the individual for the

23 purpose of receiving an allotment.’’.
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1 SEC. 1140. CONDITION PRECEDENT FOR APPROVAL OF RE2 TAIL FOOD STORES AND WHOLESALE FOOD

3 CONCERNS.

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

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

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

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

8 include size, location, and type of items sold, shall be ap9 proved to be authorized or reauthorized for participation

10 in the food stamp program unless an authorized employee

11 of the Department of Agriculture, a designee of the Sec12 retary, or, if practicable, an official of the State or local

13 government designated by the Secretary has visited the store

14 or concern for the purpose of determining whether the store

15 or concern should be approved or reauthorized, as appro16 priate.’’.

17 SEC. 1141. AUTHORITY TO ESTABLISH AUTHORIZATION PE18 RIODS.

19 Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C.

20 2018(a)) is amended by adding at the end the following:

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

22 shall establish specific time periods during which au23 thorization to accept and redeem coupons, or to re24 deem benefits through an electronic benefit transfer

25 system, shall be valid under the food stamp pro26 gram.’’.
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1 SEC. 1142. INFORMATION FOR VERIFYING ELIGIBILITY FOR

2 AUTHORIZATION.

3 Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C.

4 2018(c)) is amended—

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

6 may include relevant income and sales tax filing doc7 uments,’’ after ‘‘submit information’’; and

8 (2) by inserting after the first sentence the fol9 lowing: ‘‘The regulations may require retail food

10 stores and wholesale food concerns to provide written

11 authorization for the Secretary to verify all relevant

12 tax filings with appropriate agencies and to obtain

13 corroborating documentation from other sources so

14 that the accuracy of information provided by the

15 stores and concerns may be verified.’’.

16 SEC. 1143. WAITING PERIOD FOR STORES THAT FAIL TO

17 MEET AUTHORIZATION CRITERIA.

18 Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.

19 2018(d)) is amended by adding at the end the following:

20 ‘‘A retail food store or wholesale food concern that is denied

21 approval to accept and redeem coupons because the store

22 or concern does not meet criteria for approval established

23 by the Secretary may not, for at least 6 months, submit

24 a new application to participate in the program. The Sec25 retary may establish a longer time period under the preced-
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1 ing sentence, including permanent disqualification, that re2 flects the severity of the basis of the denial.’’.

3 SEC. 1144. OPERATION OF FOOD STAMP OFFICES.

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

5 2020), as amended by sections 1119(b) and 1129(b), is

6 amended—

7 (1) in subsection (e)—

8 (A) by striking paragraph (2) and inserting

9 the following:

10 ‘‘(2)(A) that the State agency shall establish pro11 cedures governing the operation of food stamp offices

12 that the State agency determines best serve households

13 in the State, including households with special needs,

14 such as households with elderly or disabled members,

15 households in rural areas with low-income members,

16 homeless individuals, households residing on reserva17 tions, and households in areas in which a substantial

18 number of members of low-income households speak a

19 language other than English.

20 ‘‘(B) In carrying out subparagraph (A), a State

21 agency—

22 ‘‘(i) shall provide timely, accurate, and fair

23 service to applicants for, and participants in,

24 the food stamp program;
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1 ‘‘(ii) shall develop an application contain2 ing the information necessary to comply with

3 this Act;

4 ‘‘(iii) shall permit an applicant household

5 to apply to participate in the program on the

6 same day that the household first contacts a food

7 stamp office in person during office hours;

8 ‘‘(iv) shall consider an application that con9 tains the name, address, and signature of the ap10 plicant to be filed on the date the applicant sub11 mits the application;

12 ‘‘(v) shall require that an adult representa13 tive of each applicant household certify in writ14 ing, under penalty of perjury, that—

15 ‘‘(I) the information contained in the

16 application is true; and

17 ‘‘(II) all members of the household are

18 citizens or are aliens eligible to receive food

19 stamps under section 6(f);

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

21 and issuing coupons to eligible homeless individ22 uals, to ensure that participation in the food

23 stamp program is limited to eligible households;

24 and
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1 ‘‘(vii) may establish operating procedures

2 that vary for local food stamp offices to reflect

3 regional and local differences within the State.

4 ‘‘(C) Nothing in this Act shall prohibit the use

5 of signatures provided and maintained electronically,

6 storage of records using automated retrieval systems

7 only, or any other feature of a State agency’s applica8 tion system that does not rely exclusively on the col9 lection and retention of paper applications or other

10 records.

11 ‘‘(D) The signature of any adult under this

12 paragraph shall be considered sufficient to comply

13 with any provision of Federal law requiring a house14 hold member to sign an application or statement.’’;

15 (B) in paragraph (3)—

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

17 follows through ‘‘provide each’’ and insert18 ing ‘‘shall provide each’’; and

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

20 that follows through ‘‘representative of the

21 State agency;’’;

22 (C) by striking paragraphs (14) and (25);

23 (D)(i) by redesignating paragraphs (15)

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

25 respectively; and
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1 (ii) by redesignating paragraph (26), as

2 paragraph (24); and

3 (2) in subsection (i)—

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

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

6 following:

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

8 ‘‘(1) APPLICATION PROCEDURES.—Notwithstand9 ing any other provision of law,’’; and

10 (B) by striking ‘‘; (3) households’’ and all

11 that follows through ‘‘title IV of the Social Secu12 rity Act. No’’ and inserting a period and the fol13 lowing:

14 ‘‘(2) DENIAL AND TERMINATION.—Except in a

15 case of disqualification as a penalty for failure to

16 comply with a public assistance program rule or reg17 ulation, no’’.

18 SEC. 1145. STATE EMPLOYEE AND TRAINING STANDARDS.

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

20 U.S.C. 2020(e)(6)) is amended—

21 (1) by striking ‘‘that (A) the’’ and inserting

22 ‘‘that—

23 ‘‘(A) the’’;

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

25 ‘‘Act; and
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1 ‘‘(B) the’’;

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

3 States Civil Service Commission’’ and inserting ‘‘Of4 fice of Personnel Management’’; and

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

6 SEC. 1146. EXCHANGE OF LAW ENFORCEMENT INFORMA7 TION.

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

9 U.S.C. 2020(e)(8)) is amended—

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

11 following: ‘‘that—

12 ‘‘(A) the’’;

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

14 inserting the following: ‘‘law;

15 ‘‘(B) notwithstanding’’;

16 (3) by striking ‘‘Act, and (C) such’’ and insert17 ing the following: ‘‘Act;

18 ‘‘(C) the’’; and

19 (4) by adding at the end the following:

20 ‘‘(D) notwithstanding any other provision

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

22 if available, photograph of any member of a

23 household shall be made available, on request, to

24 any Federal, State, or local law enforcement offi25 cer if the officer furnishes the State agency with
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1 the name of the member and notifies the agency

2 that—

3 ‘‘(i) the member—

4 ‘‘(I) is fleeing to avoid prosecu5 tion, or custody or confinement after

6 conviction, for a crime (or attempt to

7 commit a crime) that, under the law of

8 the place the member is fleeing, is a

9 felony (or, in the case of New Jersey,

10 a high misdemeanor), or is violating a

11 condition of probation or parole im12 posed under Federal or State law; or

13 ‘‘(II) has information that is nec14 essary for the officer to conduct an offi15 cial duty related to subclause (I);

16 ‘‘(ii) locating or apprehending the

17 member is an official duty; and

18 ‘‘(iii) the request is being made in the

19 proper exercise of an official duty; and

20 ‘‘(E) the safeguards shall not prevent com21 pliance with paragraph (16);’’.

22 SEC. 1147. WITHDRAWING FAIR HEARING REQUESTS.

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

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

25 semicolon at the end a period and the following: ‘‘At the
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1 option of a State, at any time prior to a fair hearing deter2 mination under this paragraph, a household may with3 draw, orally or in writing, a request by the household for

4 the fair hearing. If the withdrawal request is an oral re5 quest, the State agency shall provide a written notice to

6 the household confirming the withdrawal request and pro7 viding the household with an opportunity to request a hear8 ing’’.

9 SEC. 1148. INCOME, ELIGIBILITY, AND IMMIGRATION STA10 TUS VERIFICATION SYSTEMS.

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

12 2020) is amended—

13 (1) in subsection (e)(18), as redesignated by sec14 tion 1145(1)(D)—

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

16 inserting ‘‘at the option of the State agency, that

17 information may be’’; and

18 (B) by striking ‘‘shall be requested’’ and in19 serting ‘‘may be requested’’; and

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

21 ‘‘(p) STATE VERIFICATION OPTION.—Notwithstanding

22 any other provision of law, in carrying out the food stamp

23 program, a State agency shall not be required to use an

24 income and eligibility or an immigration status verifica-
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1 tion system established under section 1137 of the Social Se2 curity Act (42 U.S.C. 1320b–7).’’.

3 SEC. 1149. DISQUALIFICATION OF RETAILERS WHO INTEN4 TIONALLY SUBMIT FALSIFIED APPLICATIONS.

5 Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C.

6 2021(b)) is amended—

7 (1) in paragraph (2), by striking ‘‘and’’ at the

8 end;

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

10 the end and inserting ‘‘; and’’; and

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

12 ‘‘(4) for a reasonable period of time to be deter13 mined by the Secretary, including permanent dis14 qualification, on the knowing submission of an appli15 cation for the approval or reauthorization to accept

16 and redeem coupons that contains false information

17 about a substantive matter that was a part of the ap18 plication.’’.

19 SEC. 1150. DISQUALIFICATION OF RETAILERS WHO ARE DIS20 QUALIFIED UNDER THE WIC PROGRAM.

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

22 2021) is amended by adding at the end the following:

23 ‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE

24 DISQUALIFIED UNDER THE WIC PROGRAM.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall issue

2 regulations providing criteria for the disqualification

3 under this Act of an approved retail food store and

4 a wholesale food concern that is disqualified from ac5 cepting benefits under the special supplemental nutri6 tion program for women, infants, and children estab7 lished under section 17 of the Child Nutrition Act of

8 1966 (7 U.S.C. 1786).

9 ‘‘(2) TERMS.—A disqualification under para10 graph (1)—

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

12 the disqualification from the program referred to

13 in paragraph (1);

14 ‘‘(B) may begin at a later date than the dis15 qualification from the program referred to in

16 paragraph (1); and

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

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

19 SEC. 1151. COLLECTION OF OVERISSUANCES.

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

21 the Food Stamp Act of 1977 (7 U.S.C. 2022) is amended—

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

23 following:

24 ‘‘(b) COLLECTION OF OVERISSUANCES.—
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1 ‘‘(1) IN GENERAL.—Except as otherwise provided

2 in this subsection, a State agency shall collect any

3 overissuance of coupons issued to a household by—

4 ‘‘(A) reducing the allotment of the house5 hold;

6 ‘‘(B) withholding amounts from unemploy7 ment compensation from a member of the house8 hold under subsection (c);

9 ‘‘(C) recovering from Federal pay or a Fed10 eral income tax refund under subsection (d); or

11 ‘‘(D) any other means.

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

13 shall not apply if the State agency demonstrates to

14 the satisfaction of the Secretary that all of the means

15 referred to in paragraph (1) are not cost effective.

16 ‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—If

17 a household received an overissuance of coupons with18 out any member of the household being found ineli19 gible to participate in the program under section

20 6(b)(1) and a State agency elects to reduce the allot21 ment of the household under paragraph (1)(A), the

22 State agency shall not reduce the monthly allotment

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

24 amount in excess of the greater of—
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1 ‘‘(A) 10 percent of the monthly allotment of

2 the household; or

3 ‘‘(B) $10.

4 ‘‘(4) PROCEDURES.—A State agency shall collect

5 an overissuance of coupons issued to a household

6 under paragraph (1) in accordance with the require7 ments established by the State agency for providing

8 notice, electing a means of payment, and establishing

9 a time schedule for payment.’’; and

10 (2) in subsection (d)—

11 (A) by striking ‘‘as determined under sub12 section (b) and except for claims arising from an

13 error of the State agency,’’ and inserting ‘‘, as

14 determined under subsection (b)(1),’’; and

15 (B) by inserting before the period at the end

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

17 authorized by section 3720A of title 31, United

18 States Code’’.

19 (b) CONFORMING AMENDMENTS.—Section 11(e)(8)(C)

20 of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C))

21 is amended—

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

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

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

25 the following: ‘‘or a Federal income tax refund as au-
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1 thorized by section 3720A of title 31, United States

2 Code’’.

3 (c) RETENTION RATE.—The proviso of the first sen4 tence of section 16(a) of the Food Stamp Act of 1977 (7

5 U.S.C. 2025(a)) is amended by striking ‘‘25 percent during

6 the period beginning October 1, 1990’’ and all that follows

7 through ‘‘section 13(b)(2) of this Act’’ and inserting ‘‘35

8 percent of the value of all funds or allotments recovered or

9 collected pursuant to subsections (b)(1) and (c) of section

10 13 and 20 percent of the value of all funds or allotments

11 recovered or collected pursuant to section 13(b)(2) of this

12 Act’’.

13 SEC. 1152. AUTHORITY TO SUSPEND STORES VIOLATING

14 PROGRAM REQUIREMENTS PENDING ADMIN15 ISTRATIVE AND JUDICIAL REVIEW.

16 Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C.

17 2023(a)) is amended—

18 (1) by redesignating the first through seventeenth

19 sentences as paragraphs (1) through (17), respectively;

20 and

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

22 ‘‘(18) SUSPENSION OF STORES PENDING RE23 VIEW.—Notwithstanding any other provision of this

24 subsection, any permanent disqualification of a retail

25 food store or wholesale food concern under paragraph
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1 (3) or (4) of section 12(b) shall be effective from the

2 date of receipt of the notice of disqualification. If the

3 disqualification is reversed through administrative or

4 judicial review, the Secretary shall not be liable for

5 the value of any sales lost during the disqualification

6 period.’’.

7 SEC. 1153. EXPANDED CRIMINAL FORFEITURE FOR VIOLA8 TIONS.

9 (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD

10 STAMP TRAFFICKING.—The first sentence of section 15(g)

11 of the Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is

12 amended by striking ‘‘or intended to be furnished’’.

13 (b) CRIMINAL FORFEITURE.—Section 15 of the Food

14 Stamp Act of 1977 (7 U.S.C. 2024) is amended by adding

15 at the end the following:

16 ‘‘(h) CRIMINAL FORFEITURE.—

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

18 person convicted of an offense in violation of sub19 section (b) or (c), a court shall order, in addition to

20 any other sentence imposed under this section, that

21 the person forfeit to the United States all property de22 scribed in paragraph (2).

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

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

25 attempted transaction, to commit, or to facilitate the
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1 commission of, a violation (other than a mis2 demeanor) of subsection (b) or (c), or proceeds trace3 able to a violation of subsection (b) or (c), shall be

4 subject to forfeiture to the United States under para5 graph (1).

6 ‘‘(3) INTEREST OF OWNER.—No interest in prop7 erty shall be forfeited under this subsection as the re8 sult of any act or omission established by the owner

9 of the interest to have been committed or omitted

10 without the knowledge or consent of the owner.

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

12 forfeited property and any monies forfeited under this

13 subsection shall be used—

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

15 Justice for the costs incurred by the Department

16 to initiate and complete the forfeiture proceed17 ing;

18 ‘‘(B) second, to reimburse the Department of

19 Agriculture Office of Inspector General for any

20 costs the Office incurred in the law enforcement

21 effort resulting in the forfeiture;

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

23 State law enforcement agency for any costs in24 curred in the law enforcement effort resulting in

25 the forfeiture; and
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1 ‘‘(D) fourth, by the Secretary to carry out

2 the approval, reauthorization, and compliance

3 investigations of retail stores and wholesale food

4 concerns under section 9.’’.

5 SEC. 1154. LIMITATION ON FEDERAL MATCH.

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

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

8 comma at the end the following: ‘‘but not including recruit9 ment activities,’’.

10 SEC. 1155. STANDARDS FOR ADMINISTRATION.

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

12 of 1977 (7 U.S.C. 2025) is amended by striking subsection

13 (b).

14 (b) CONFORMING AMENDMENTS.—

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

16 Stamp Act of 1977 (7 U.S.C. 2020(g)) is amended by

17 striking ‘‘the Secretary’s standards for the efficient

18 and effective administration of the program estab19 lished under section 16(b)(1) or’’.

20 (2) Section 16(c)(1)(B) of the Food Stamp Act

21 of 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by strik22 ing ‘‘pursuant to subsection (b)’’.
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1 SEC. 1156. WORK SUPPLEMENTATION OR SUPPORT PRO2 GRAM.

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

4 2025), as amended by section 1157(a), is amended by in5 serting after subsection (a) the following:

6 ‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO7 GRAM.—

8 ‘‘(1) DEFINITION OF WORK SUPPLEMENTATION

9 OR SUPPORT PROGRAM.—In this subsection, the term

10 ‘work supplementation or support program’ means a

11 program under which, as determined by the Sec12 retary, public assistance (including any benefits pro13 vided under a program established by the State and

14 the food stamp program) is provided to an employer

15 to be used for hiring and employing a public assist16 ance recipient who was not employed by the employer

17 at the time the public assistance recipient entered the

18 program.

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

20 use an amount equal to the allotment that would oth21 erwise be issued to a household under the food stamp

22 program, but for the operation of this subsection, for

23 the purpose of subsidizing or supporting a job under

24 a work supplementation or support program estab25 lished by the State.
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1 ‘‘(3) PROCEDURE.—If a State agency makes an

2 election under paragraph (2) and identifies each

3 household that participates in the food stamp pro4 gram that contains an individual who is participat5 ing in the work supplementation or support pro6 gram—

7 ‘‘(A) the Secretary shall pay to the State

8 agency an amount equal to the value of the allot9 ment that the household would be eligible to re10 ceive but for the operation of this subsection;

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

12 amount received under subparagraph (A) in ac13 cordance with the work supplementation or sup14 port program in lieu of providing the allotment

15 that the household would receive but for the oper16 ation of this subsection;

17 ‘‘(C) for purposes of—

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

19 received under this subsection shall be ex20 cluded from household income and resources;

21 and

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

23 under this subsection shall be considered to

24 be the value of an allotment provided to the

25 household; and
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1 ‘‘(D) the household shall not receive an al2 lotment from the State agency for the period

3 during which the member continues to partici4 pate in the work supplementation or support

5 program.

6 ‘‘(4) OTHER WORK REQUIREMENTS.—No indi7 vidual shall be excused, by reason of the fact that a

8 State has a work supplementation or support pro9 gram, from any work requirement under section 6(d),

10 except during the periods in which the individual is

11 employed under the work supplementation or support

12 program.

13 ‘‘(5) LENGTH OF PARTICIPATION.—A State agen14 cy shall provide a description of how the public as15 sistance recipients in the program shall, within a spe16 cific period of time, be moved from supplemented or

17 supported employment to employment that is not sup18 plemented or supported.

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

20 or support program shall not displace the employ21 ment of individuals who are not supplemented or sup22 ported.’’.
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1 SEC. 1157. RESPONSE TO WAIVERS.

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

3 U.S.C. 2026(b)(1)), as amended by section 1159, is amend4 ed by adding at the end the following:

5 ‘‘(D) RESPONSE TO WAIVERS.—

6 ‘‘(i) RESPONSE.—Not later than 60

7 days after the date of receiving a request for

8 a waiver under subparagraph (A), the Sec9 retary shall provide a response that—

10 ‘‘(I) approves the waiver request;

11 ‘‘(II) denies the waiver request

12 and describes any modification needed

13 for approval of the waiver request;

14 ‘‘(III) denies the waiver request

15 and describes the grounds for the de16 nial; or

17 ‘‘(IV) requests clarification of the

18 waiver request.

19 ‘‘(ii) FAILURE TO RESPOND.—If the

20 Secretary does not provide a response in ac21 cordance with clause (i), the waiver shall be

22 considered approved, unless the approval is

23 specifically prohibited by this Act.

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

25 of a waiver request under clause (i)(III), the

26 Secretary shall provide a copy of the waiver
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1 request and a description of the reasons for

2 the denial to the Committee on Agriculture

3 of the House of Representatives and the

4 Committee on Agriculture, Nutrition, and

5 Forestry of the Senate.’’.

6 SEC. 1158. EMPLOYMENT INITIATIVES PROGRAM.

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

8 2026) is amended by striking subsection (d) and inserting

9 the following:

10 ‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—

11 ‘‘(1) ELECTION TO PARTICIPATE.—

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

13 provisions of this subsection, a State may elect

14 to carry out an employment initiatives program

15 under this subsection.

16 ‘‘(B) REQUIREMENT.—A State shall be eli17 gible to carry out an employment initiatives pro18 gram under this subsection only if not less than

19 50 percent of the households in the State that re20 ceived food stamp benefits during the summer of

21 1993 also received benefits under a State pro22 gram funded under part A of title IV of the So23 cial Security Act (42 U.S.C. 601 et seq.) during

24 the summer of 1993.

25 ‘‘(2) PROCEDURE.—
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1 ‘‘(A) IN GENERAL.—A State that has elected

2 to carry out an employment initiatives program

3 under paragraph (1) may use amounts equal to

4 the food stamp allotments that would otherwise

5 be issued to a household under the food stamp

6 program, but for the operation of this subsection,

7 to provide cash benefits in lieu of the food stamp

8 allotments to the household if the household is el9 igible under paragraph (3).

10 ‘‘(B) PAYMENT.—The Secretary shall pay to

11 each State that has elected to carry out an em12 ployment initiatives program under paragraph

13 (1) an amount equal to the value of the allot14 ment that each household participating in the

15 program in the State would be eligible to receive

16 under this Act but for the operation of this sub17 section.

18 ‘‘(C) OTHER PROVISIONS.—For purposes of

19 the food stamp program (other than this sub20 section)—

21 ‘‘(i) cash assistance under this sub22 section shall be considered to be an allot23 ment; and

24 ‘‘(ii) each household receiving cash ben25 efits under this subsection shall not receive
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1 any other food stamp benefit during the pe2 riod for which the cash assistance is pro3 vided.

4 ‘‘(D) ADDITIONAL PAYMENTS.—Each State

5 that has elected to carry out an employment ini6 tiatives program under paragraph (1) shall—

7 ‘‘(i) increase the cash benefits provided

8 to each household participating in the pro9 gram in the State under this subsection to

10 compensate for any State or local sales tax

11 that may be collected on purchases of food

12 by the household, unless the Secretary deter13 mines on the basis of information provided

14 by the State that the increase is unnecessary

15 on the basis of the limited nature of the

16 items subject to the State or local sales tax;

17 and

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

19 cash benefits required by clause (i).

20 ‘‘(3) ELIGIBILITY.—A household shall be eligible

21 to receive cash benefits under paragraph (2) if an

22 adult member of the household—

23 ‘‘(A) has worked in unsubsidized employ24 ment for not less than the preceding 90 days;
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1 ‘‘(B) has earned not less than $350 per

2 month from the employment referred to in sub3 paragraph (A) for not less than the preceding 90

4 days;

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

6 program funded under part A of title IV of the

7 Social Security Act (42 U.S.C. 601 et seq.); or

8 ‘‘(ii) was receiving benefits under a State

9 program funded under part A of title IV of the

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

11 time the member first received cash benefits

12 under this subsection and is no longer eligible for

13 the State program because of earned income;

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

15 $350 per month from the employment referred to

16 in subparagraph (A); and

17 ‘‘(E) elects to receive cash benefits in lieu of

18 food stamp benefits under this subsection.

19 ‘‘(4) EVALUATION.—A State that operates a pro20 gram under this subsection for 2 years shall provide

21 to the Secretary a written evaluation of the impact of

22 cash assistance under this subsection. The State agen23 cy, with the concurrence of the Secretary, shall deter24 mine the content of the evaluation.’’.
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1 SEC. 1159. REAUTHORIZATION.

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

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

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

5 2002’’.

6 SEC. 1160. SIMPLIFIED FOOD STAMP PROGRAM.

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

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

9 following:

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

11 ‘‘(a) DEFINITION OF FEDERAL COSTS.—In this sec12 tion, the term ‘Federal costs’ does not include any Federal

13 costs incurred under section 17.

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

15 may elect to carry out a Simplified Food Stamp Program

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

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

18 this section.

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

20 carry out a Program, within the State or a political sub21 division of the State—

22 ‘‘(1) only households in which all members re23 ceive assistance under a State program funded under

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

25 U.S.C. 601 et seq.) shall receive benefits under the

26 Program;
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1 ‘‘(2) a household in which all members receive

2 assistance under a State program funded under part

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

4 601 et seq.) shall automatically be eligible to partici5 pate in the Program; and

6 ‘‘(3) subject to subsection (f), benefits under the

7 Program shall be determined under rules and proce8 dures established by the State under—

9 ‘‘(A) a State program funded under part A

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

11 601 et seq.);

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

13 section 27); or

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

15 funded under part A of title IV of the Social Se16 curity Act (42 U.S.C. 601 et seq.) and the food

17 stamp program (other than section 27).

18 ‘‘(d) APPROVAL OF PROGRAM.—

19 ‘‘(1) STATE PLAN.—A State agency may not op20 erate a Program unless the Secretary approves a

21 State plan for the operation of the Program under

22 paragraph (2).

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

24 approve any State plan to carry out a Program if the

25 Secretary determines that the plan—
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1 ‘‘(A) complies with this section; and

2 ‘‘(B) contains sufficient documentation that

3 the plan will not increase Federal costs for any

4 fiscal year.

5 ‘‘(e) INCREASED FEDERAL COSTS.—

6 ‘‘(1) DETERMINATION.—

7 ‘‘(A) IN GENERAL.—The Secretary shall de8 termine whether a Program being carried out by

9 a State agency is increasing Federal costs under

10 this Act.

11 ‘‘(B) NO EXCLUDED HOUSEHOLDS.—In

12 making a determination under subparagraph

13 (A), the Secretary shall not require the State

14 agency to collect or report any information on

15 households not included in the Program.

16 ‘‘(C) ALTERNATIVE ACCOUNTING PERI17 ODS.—The Secretary may approve the request of

18 a State agency to apply alternative accounting

19 periods to determine if Federal costs do not ex20 ceed the Federal costs had the State agency not

21 elected to carry out the Program.

22 ‘‘(2) NOTIFICATION.—If the Secretary determines

23 that the Program has increased Federal costs under

24 this Act for any fiscal year or any portion of any fis25 cal year, the Secretary shall notify the State not later
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1 than 30 days after the Secretary makes the deter2 mination under paragraph (1).

3 ‘‘(3) ENFORCEMENT.—

4 ‘‘(A) CORRECTIVE ACTION.—Not later than

5 90 days after the date of a notification under

6 paragraph (2), the State shall submit a plan for

7 approval by the Secretary for prompt corrective

8 action that is designed to prevent the Program

9 from increasing Federal costs under this Act.

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

11 submit a plan under subparagraph (A) or carry

12 out a plan approved by the Secretary, the Sec13 retary shall terminate the approval of the State

14 agency operating the Program and the State

15 agency shall be ineligible to operate a future Pro16 gram.

17 ‘‘(f) RULES AND PROCEDURES.—

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

19 State or political subdivision of a State may follow

20 the rules and procedures established by the State or

21 political subdivision under a State program funded

22 under part A of title IV of the Social Security Act (42

23 U.S.C. 601 et seq.) or under the food stamp program.

24 ‘‘(2) STANDARDIZED DEDUCTIONS.—In operat25 ing a Program, a State or political subdivision of a
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1 State may standardize the deductions provided under

2 section 5(e). In developing the standardized deduc3 tion, the State shall consider the work expenses, de4 pendent care costs, and shelter costs of participating

5 households.

6 ‘‘(3) REQUIREMENTS.—In operating a Program,

7 a State or political subdivision shall comply with the

8 requirements of—

9 ‘‘(A) subsections (a) through (g) of section 7;

10 ‘‘(B) section 8(a) (except that the income of

11 a household may be determined under a State

12 program funded under part A of title IV of the

13 Social Security Act (42 U.S.C. 601 et seq.));

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

15 ‘‘(D) subsections (a), (c), (d), and (n) of sec16 tion 11;

17 ‘‘(E) paragraph (3) of section 11(e), to the

18 extent that the paragraph requires that an eligi19 ble household be certified and receive an allot20 ment for the period of application not later than

21 30 days after filing an application;

22 ‘‘(F) paragraphs (8), (12), (16), (18), (20),

23 (24), and (25) of section 11(e);

24 ‘‘(G) section 11(e)(10) (or a comparable re25 quirement established by the State under a State
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1 program funded under part A of title IV of the

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

3 ‘‘(H) section 16.

4 ‘‘(4) LIMITATION ON ELIGIBILITY.—Notwith5 standing any other provision of this section, a house6 hold may not receive benefits under this section as a

7 result of the eligibility of the household under a State

8 program funded under part A of title IV of the Social

9 Security Act (42 U.S.C. 601 et seq.), unless the Sec10 retary determines that any household with income

11 above 130 percent of the poverty guidelines is not eli12 gible for the program.’’.

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

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

15 by sections 1129(b) and 1145, is amended by adding at the

16 end the following:

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

18 Food Stamp Program under section 26, the plans of

19 the State agency for operating the program, includ20 ing—

21 ‘‘(A) the rules and procedures to be followed

22 by the State agency to determine food stamp ben23 efits;

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

25 needs of households that experience high shelter
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1 costs in relation to the incomes of the households;

2 and

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

4 the State agency will carry out a quality control

5 system under section 16(c).’’.

6 (c) CONFORMING AMENDMENTS.—

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

8 U.S.C. 2017), as amended by section 1140, is amend9 ed—

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

11 (B) by redesignating subsection (f) as sub12 section (e).

13 (2) Section 17 of the Food Stamp Act of 1977

14 (7 U.S.C. 2026) is amended—

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

16 (B) by redesignating subsections (j) through

17 (l) as subsections (i) through (k), respectively.

18 CHAPTER 2—COMMODITY DISTRIBUTION

19 PROGRAMS

20 SEC. 1171. EMERGENCY FOOD ASSISTANCE PROGRAM.

21 (a) DEFINITIONS.—Section 201A of the Emergency

22 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

23 612c note) is amended to read as follows:

24 ‘‘SEC. 201A. DEFINITIONS.

25 ‘‘In this Act:
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1 ‘‘(1) ADDITIONAL COMMODITIES.—The term ‘ad2 ditional commodities’ means commodities made avail3 able under section 214 in addition to the commodities

4 made available under sections 202 and 203D.

5 ‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM6 PLOYED PERSONS.—The term ‘average monthly num7 ber of unemployed persons’ means the average month8 ly number of unemployed persons in each State dur9 ing the most recent fiscal year for which information

10 concerning the number of unemployed persons is

11 available, as determined by the Bureau of Labor Sta12 tistics of the Department of Labor.

13 ‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term

14 ‘eligible recipient agency’ means a public or nonprofit

15 organization that—

16 ‘‘(A) administers—

17 ‘‘(i) an emergency feeding organiza18 tion;

19 ‘‘(ii) a charitable institution (includ20 ing a hospital and a retirement home, but

21 excluding a penal institution) to the extent

22 that the institution serves needy persons;

23 ‘‘(iii) a summer camp for children, or

24 a child nutrition program providing food

25 service;
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1 ‘‘(iv) a nutrition project operating

2 under the Older Americans Act of 1965 (42

3 U.S.C. 3001 et seq.), including a project

4 that operates a congregate nutrition site

5 and a project that provides home-delivered

6 meals; or

7 ‘‘(v) a disaster relief program;

8 ‘‘(B) has been designated by the appropriate

9 State agency, or by the Secretary; and

10 ‘‘(C) has been approved by the Secretary for

11 participation in the program established under

12 this Act.

13 ‘‘(4) EMERGENCY FEEDING ORGANIZATION.—The

14 term ‘emergency feeding organization’ means a public

15 or nonprofit organization that administers activities

16 and projects (including the activities and projects of

17 a charitable institution, a food bank, a food pantry,

18 a hunger relief center, a soup kitchen, or a similar

19 public or private nonprofit eligible recipient agency)

20 providing nutrition assistance to relieve situations of

21 emergency and distress through the provision of food

22 to needy persons, including low-income and unem23 ployed persons.

24 ‘‘(5) FOOD BANK.—The term ‘food bank’ means

25 a public or charitable institution that maintains an
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1 established operation involving the provision of food

2 or edible commodities, or the products of food or edi3 ble commodities, to food pantries, soup kitchens, hun4 ger relief centers, or other food or feeding centers that,

5 as an integral part of their normal activities, provide

6 meals or food to feed needy persons on a regular

7 basis.

8 ‘‘(6) FOOD PANTRY.—The term ‘food pantry’

9 means a public or private nonprofit organization that

10 distributes food to low-income and unemployed house11 holds, including food from sources other than the De12 partment of Agriculture, to relieve situations of emer13 gency and distress.

14 ‘‘(7) POVERTY LINE.—The term ‘poverty line’

15 has the meaning provided in section 673(2) of the

16 Community Services Block Grant Act (42 U.S.C.

17 9902(2)).

18 ‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’

19 means a public or charitable institution that, as an

20 integral part of the normal activities of the institu21 tion, maintains an established feeding operation to

22 provide food to needy homeless persons on a regular

23 basis.

24 ‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD25 ITIES.—The term ‘total value of additional commod-
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1 ities’ means the actual cost of all additional commod2 ities that are paid by the Secretary (including the

3 distribution and processing costs incurred by the Sec4 retary).

5 ‘‘(10) VALUE OF ADDITIONAL COMMODITIES AL6 LOCATED TO EACH STATE.—The term ‘value of addi7 tional commodities allocated to each State’ means the

8 actual cost of additional commodities allocated to

9 each State that are paid by the Secretary (including

10 the distribution and processing costs incurred by the

11 Secretary).’’.

12 (b) STATE PLAN.—Section 202A of the Emergency

13 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

14 612c note) is amended to read as follows:

15 ‘‘SEC. 202A. STATE PLAN.

16 ‘‘(a) IN GENERAL.—To receive commodities under this

17 Act, a State shall submit a plan of operation and adminis18 tration every 4 years to the Secretary for approval. The

19 plan may be amended at any time, with the approval of

20 the Secretary.

21 ‘‘(b) REQUIREMENTS.—Each plan shall—

22 ‘‘(1) designate the State agency responsible for

23 distributing the commodities received under this Act;
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1 ‘‘(2) set forth a plan of operation and adminis2 tration to expeditiously distribute commodities under

3 this Act;

4 ‘‘(3) set forth the standards of eligibility for re5 cipient agencies; and

6 ‘‘(4) set forth the standards of eligibility for in7 dividual or household recipients of commodities,

8 which shall require—

9 ‘‘(A) individuals or households to be com10 prised of needy persons; and

11 ‘‘(B) individual or household members to be

12 residing in the geographic location served by the

13 distributing agency at the time of applying for

14 assistance.

15 ‘‘(c) STATE ADVISORY BOARD.—The Secretary shall

16 encourage each State receiving commodities under this Act

17 to establish a State advisory board consisting of representa18 tives of all entities in the State, both public and private,

19 interested in the distribution of commodities received under

20 this Act.’’.

21 (c) AUTHORIZATION OF APPROPRIATIONS FOR ADMIN22 ISTRATIVE FUNDS.—Section 204(a)(1) of the Emergency

23 Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

24 612c note) is amended—
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1 (1) in the first sentence, by striking ‘‘for State

2 and local’’ and all that follows through ‘‘under this

3 title’’ and inserting ‘‘to pay for the direct and indi4 rect administrative costs of the States related to the

5 processing, transporting, and distributing to eligible

6 recipient agencies of commodities provided by the Sec7 retary under this Act and commodities secured from

8 other sources’’; and

9 (2) by striking the fourth sentence.

10 (d) DELIVERY OF COMMODITIES.—Section 214 of the

11 Emergency Food Assistance Act of 1983 (Public Law 98–

12 8; 7 U.S.C. 612c note) is amended—

13 (1) by striking subsections (a) through (e) and

14 (j);

15 (2) by redesignating subsections (f) through (i)

16 as subsections (a) through (d), respectively;

17 (3) in subsection (b), as redesignated by para18 graph (2)—

19 (A) in the first sentence, by striking ‘‘sub20 section (f) or subsection (j) if applicable,’’ and

21 inserting ‘‘subsection (a),’’; and

22 (B) in the second sentence, by striking ‘‘sub23 section (f)’’ and inserting ‘‘subsection (a)’’;

24 (4) by striking subsection (c), as redesignated by

25 paragraph (2), and inserting the following:
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1 ‘‘(c) ADMINISTRATION.—

2 ‘‘(1) IN GENERAL.—Commodities made available

3 for each fiscal year under this section shall be deliv4 ered at reasonable intervals to States based on the

5 grants calculated under subsection (a), or reallocated

6 under subsection (b), before December 31 of the follow7 ing fiscal year.

8 ‘‘(2) ENTITLEMENT.—Each State shall be enti9 tled to receive the value of additional commodities de10 termined under subsection (a).’’; and

11 (5) in subsection (d), as redesignated by para12 graph (2), by striking ‘‘or reduce’’ and all that follows

13 through ‘‘each fiscal year’’.

14 (e) TECHNICAL AMENDMENTS.—The Emergency Food

15 Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c

16 note) is amended—

17 (1) in the first sentence of section 203B(a), by

18 striking ‘‘203 and 203A of this Act’’ and inserting

19 ‘‘203A’’;

20 (2) in section 204(a), by striking ‘‘title’’ each

21 place it appears and inserting ‘‘Act’’;

22 (3) in the first sentence of section 210(e), by

23 striking ‘‘(except as otherwise provided for in section

24 214(j))’’; and

25 (4) by striking section 212.
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1 (f) REPORT ON EFAP.—Section 1571 of the Food Se2 curity Act of 1985 (Public Law 99–198; 7 U.S.C. 612c note)

3 is repealed.

4 (g) AVAILABILITY OF COMMODITIES UNDER THE FOOD

5 STAMP PROGRAM.—The Food Stamp Act of 1977 (7 U.S.C.

6 2011 et seq.), as amended by section 1164(a), is amended

7 by adding at the end the following:

8 ‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER9 GENCY FOOD ASSISTANCE PROGRAM.

10 ‘‘(a) PURCHASE OF COMMODITIES.—From amounts

11 appropriated under this Act, for each of fiscal years 1997

12 through 2002, the Secretary shall purchase $100,000,000 of

13 a variety of nutritious and useful commodities of the types

14 that the Secretary has the authority to acquire through the

15 Commodity Credit Corporation or under section 32 of the

16 Act entitled ‘An Act to amend the Agricultural Adjustment

17 Act, and for other purposes’, approved August 24, 1935 (7

18 U.S.C. 612c), and distribute the commodities to States for

19 distribution in accordance with section 214 of the Emer20 gency Food Assistance Act of 1983 (Public Law 98–8; 7

21 U.S.C. 612c note).

22 ‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur23 chasing commodities under subsection (a), the Secretary

24 shall, to the extent practicable and appropriate, make pur25 chases based on—
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1 ‘‘(1) agricultural market conditions;

2 ‘‘(2) preferences and needs of States and distrib3 uting agencies; and

4 ‘‘(3) preferences of recipients.’’.

5 (h) EFFECTIVE DATE.—The amendments made by sub6 section (d) shall become effective on October 1, 1996.

7 SEC. 1172. FOOD BANK DEMONSTRATION PROJECT.

8 Section 3 of the Charitable Assistance and Food Bank

9 Act of 1987 (Public Law 100–232; 7 U.S.C. 612c note) is

10 repealed.

11 SEC. 1173. HUNGER PREVENTION PROGRAMS.

12 The Hunger Prevention Act of 1988 (Public Law 100–

13 435; 7 U.S.C. 612c note) is amended—

14 (1) by striking section 110;

15 (2) by striking subtitle C of title II; and

16 (3) by striking section 502.

17 SEC. 1174. REPORT ON ENTITLEMENT COMMODITY PROC18 ESSING.

19 Section 1773 of the Food, Agriculture, Conservation,

20 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 612c

21 note) is amended by striking subsection (f).
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1 Subtitle B—Child Nutrition

2 Programs

3 CHAPTER 1—AMENDMENTS TO THE

4 NATIONAL SCHOOL LUNCH ACT

5 SEC. 1201. STATE DISBURSEMENT TO SCHOOLS.

6 (a) IN GENERAL.—Section 8 of the National School

7 Lunch Act (42 U.S.C. 1757) is amended—

8 (1) in the third sentence, by striking ‘‘Nothing’’

9 and all that follows through ‘‘educational agency to’’

10 and inserting ‘‘The State educational agency may’’;

11 (2) by striking the fourth and fifth sentences;

12 (3) by redesignating the first through seventh

13 sentences, as amended by paragraph (2), as sub14 sections (a) through (g), respectively;

15 (4) in subsection (b), as redesignated by para16 graph (3), by striking ‘‘the preceding sentence’’ and

17 inserting ‘‘subsection (a)’’; and

18 (5) in subsection (d), as redesignated by para19 graph (3), by striking ‘‘Such food costs’’ and inserting

20 ‘‘Use of funds paid to States’’.

21 (b) DEFINITION OF CHILD.—Section 12(d) of the Na22 tional School Lunch Act (42 U.S.C. 1760(d)) is amended

23 by adding at the end the following:

24 ‘‘(9) CHILD.—
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1 ‘‘(A) IN GENERAL.—The term ‘child’ in2 cludes an individual, regardless of age, who—

3 ‘‘(i) is determined by a State edu4 cational agency, in accordance with regula5 tions prescribed by the Secretary, to have 1

6 or more mental or physical disabilities; and

7 ‘‘(ii) is attending any institution, as

8 defined in section 17(a), or any nonresiden9 tial public or nonprofit private school of

10 high school grade or under, for the purpose

11 of participating in a school program estab12 lished for individuals with mental or phys13 ical disabilities.

14 ‘‘(B) RELATIONSHIP TO CHILD AND ADULT

15 CARE FOOD PROGRAM.—No institution that is

16 not otherwise eligible to participate in the pro17 gram under section 17 shall be considered eligi18 ble because of this paragraph.’’.

19 SEC. 1202. NUTRITIONAL AND OTHER PROGRAM REQUIRE20 MENTS.

21 (a) NUTRITIONAL STANDARDS.—Section 9(a) of the

22 National School Lunch Act (42 U.S.C. 1758(a)) is amend23 ed—

24 (1) in paragraph (2)—
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1 (A) by striking ‘‘(2)(A) Lunches’’ and in2 serting ‘‘(2) Lunches’’;

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

4 (C) by redesignating clauses (i) and (ii) as

5 subparagraphs (A) and (B), respectively;

6 (2) by striking paragraph (3); and

7 (3) by redesignating paragraph (4) as para8 graph (3).

9 (b) UTILIZATION OF AGRICULTURAL COMMODITIES.—

10 Section 9(c) of the National School Lunch Act (42 U.S.C.

11 1758(c)) is amended—

12 (1) in the fifth sentence, by striking ‘‘of the pro13 visions of law referred to in the preceding sentence’’

14 and inserting ‘‘provision of law’’; and

15 (2) by striking the second, fourth, and sixth sen16 tences.

17 (c) CONFORMING AMENDMENT.—The last sentence of

18 section 9(d)(1) of the National School Lunch Act (42 U.S.C.

19 1758(d)(1)) is amended by striking ‘‘subsection (b)(2)(C)’’

20 and inserting ‘‘subsection (b)(2)(B)’’.

21 (d) NUTRITIONAL INFORMATION.—Section 9(f) of the

22 National School Lunch Act (42 U.S.C. 1758(f)) is amend23 ed—

24 (1) by striking paragraph (1);

25 (2) by striking ‘‘(2)’’;
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1 (3) by redesignating subparagraphs (A) through

2 (D) as paragraphs (1) through (4), respectively;

3 (4) by striking paragraph (1), as redesignated by

4 paragraph (3), and inserting the following:

5 ‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as

6 provided in paragraph (2), not later than the first

7 day of the 1996–1997 school year, each school that is

8 participating in the school lunch or school breakfast

9 program shall serve lunches and breakfasts under the

10 program that—

11 ‘‘(A) are consistent with the goals of the

12 most recent Dietary Guidelines for Americans

13 published under section 301 of the National Nu14 trition Monitoring and Related Research Act of

15 1990 (7 U.S.C. 5341); and

16 ‘‘(B) provide, on the average over each week,

17 at least—

‘‘(i) with respect to school lunches, 1 18 ⁄3

19 of the daily recommended dietary allowance

20 established by the Food and Nutrition

21 Board of the National Research Council of

22 the National Academy of Sciences; and

23 ‘‘(ii) with respect to school breakfasts,

1 24 ⁄4 of the daily recommended dietary allow25 ance established by the Food and Nutrition
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1 Board of the National Research Council of

2 the National Academy of Sciences.’’;

3 (5) in paragraph (3), as redesignated by para4 graph (3)—

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

6 subparagraphs (A) and (B), respectively; and

7 (B) in subparagraph (A), as so redesig8 nated, by redesignating subclauses (I) and (II)

9 as clauses (i) and (ii), respectively; and

10 (6) in paragraph (4), as redesignated by para11 graph (3)—

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

13 subparagraphs (A) and (B), respectively; and

14 (B) in subparagraph (A), as so redesig15 nated—

16 (i) by redesignating subclauses (I) and

17 (II) as clauses (i) and (ii), respectively; and

18 (ii) in clause (ii), as so redesignated,

19 by striking ‘‘subparagraph (C)’’ and insert20 ing ‘‘paragraph (3)’’.

21 (e) USE OF RESOURCES.—Section 9 of the National

22 School Lunch Act (42 U.S.C. 1758) is amended by striking

23 subsection (h).
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1 SEC. 1203. FREE AND REDUCED PRICE POLICY STATEMENT.

2 Section 9(b)(2) of the National School Lunch Act (42

3 U.S.C. 1758(b)(2)), as amended by section 1202(b)(1), is

4 amended by adding at the end the following:

5 ‘‘(C) FREE AND REDUCED PRICE POLICY

6 STATEMENT.—After the initial submission, a

7 school food authority shall not be required to

8 submit a free and reduced price policy statement

9 to a State educational agency under this Act un10 less there is a substantive change in the free and

11 reduced price policy of the school food authority.

12 A routine change in the policy of a school food

13 authority, such as an annual adjustment of the

14 income eligibility guidelines for free and reduced

15 price meals, shall not be sufficient cause for re16 quiring the school food authority to submit a

17 policy statement.’’.

18 SEC. 1204. SPECIAL ASSISTANCE.

19 (a) EXTENSION OF PAYMENT PERIOD.—Section

20 11(a)(1)(D)(i) of the National School Lunch Act (42 U.S.C.

21 1759a(a)(1)(D)(i)) is amended by striking ‘‘, on the date

22 of enactment of this subparagraph,’’.

23 (b) APPLICABILITY OF OTHER PROVISIONS.—Section

24 11 of the National School Lunch Act (42 U.S.C. 1759a) is

25 amended—

26 (1) by striking subsection (d);
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1 (2) in subsection (e)(2)—

2 (A) by striking ‘‘The’’ and inserting ‘‘On

3 request of the Secretary, the’’; and

4 (B) by striking ‘‘each month’’; and

5 (3) by redesignating subsections (e) and (f) as

6 subsections (d) and (e), respectively.

7 SEC. 1205. MISCELLANEOUS PROVISIONS AND DEFINI8 TIONS.

9 (a) ACCOUNTS AND RECORDS.—The second sentence of

10 section 12(a) of the National School Lunch Act (42 U.S.C.

11 1760(a)) is amended by striking ‘‘at all times be available’’

12 and inserting ‘‘be available at any reasonable time’’.

13 (b) RESTRICTION ON REQUIREMENTS.—Section 12(c)

14 of the National School Lunch Act (42 U.S.C. 1760(c)) is

15 amended by striking ‘‘neither the Secretary nor the State

16 shall’’ and inserting ‘‘the Secretary shall not’’.

17 (c) DEFINITIONS.—Section 12(d) of the National

18 School Lunch Act (42 U.S.C. 1760(d)), as amended by sec19 tion 1201(b), is amended—

20 (1) in paragraph (1), by striking ‘‘the Trust Ter21 ritory of the Pacific Islands’’ and inserting ‘‘the Com22 monwealth of the Northern Mariana Islands’’;

23 (2) by striking paragraphs (3) and (4); and

24 (3) by redesignating paragraphs (1), (2), and (5)

25 through (9) as paragraphs (6), (7), (3), (4), (2), (5),
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1 and (1), respectively, and rearranging the paragraphs

2 so as to appear in numerical order.

3 (d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT

4 RATES.—Section 12(f) of the National School Lunch Act

5 (42 U.S.C. 1760(f)) is amended by striking ‘‘the Trust Ter6 ritory of the Pacific Islands,’’.

7 (e) EXPEDITED RULEMAKING.—Section 12(k) of the

8 National School Lunch Act (42 U.S.C. 1760(k)) is amend9 ed—

10 (1) by striking paragraphs (1), (2), and (5); and

11 (2) by redesignating paragraphs (3) and (4) as

12 paragraphs (1) and (2), respectively.

13 (f) WAIVER.—Section 12(l) of the National School

14 Lunch Act (42 U.S.C. 1760(l)) is amended—

15 (1) in paragraph (2)(A)—

16 (A) in clause (iii), by adding ‘‘and’’ at the

17 end;

18 (B) in clause (iv), by striking the semicolon

19 at the end and inserting a period; and

20 (C) by striking clauses (v) through (vii);

21 (2) in paragraph (3)—

22 (A) in subparagraph (A), by striking ‘‘(A)’’;

23 and

24 (B) by striking subparagraphs (B) through

25 (D);
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1 (3) in paragraph (4)—

2 (A) in the matter preceding subparagraph

3 (A), by striking ‘‘of any requirement relating’’

4 and inserting ‘‘that increases Federal costs or

5 that relates’’;

6 (B) by striking subparagraph (D);

7 (C) by redesignating subparagraphs (E)

8 through (N) as subparagraphs (D) through (M),

9 respectively; and

10 (D) in subparagraph (L), as redesignated

11 by subparagraph (C), by striking ‘‘and’’ at the

12 end and inserting ‘‘or’’; and

13 (4) in paragraph (6)—

14 (A) by striking ‘‘(A)(i)’’ and all that follows

15 through ‘‘(B)’’; and

16 (B) by redesignating clauses (i) through (iv)

17 as subparagraphs (A) through (D), respectively.

18 (g) SIMPLIFIED ADMINISTRATION OF SCHOOL MEAL

19 AND OTHER NUTRITION PROGRAMS.—Section 12 of the Na20 tional School Lunch Act (42 U.S.C. 1760), as amended by

21 subsection (g), is amended by adding at the end the follow22 ing:

23 ‘‘(m) SIMPLIFIED ADMINISTRATION OF SCHOOL MEAL

24 AND OTHER NUTRITION PROGRAMS.—Notwithstanding any

25 other provision of law, no assistance or benefits provided
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1 under the programs established under the following provi2 sions of law shall be contingent on the citizenship or immi3 gration status of any applicant or recipient:

4 ‘‘(1) This Act.

5 ‘‘(2) The Child Nutrition Act of 1966 (42 U.S.C.

6 1771 et seq.);

7 ‘‘(3) Section 4 of the Agriculture and Consumer

8 Protection Act of 1973 (Public Law 93–86; 7 U.S.C.

9 612c note).

10 ‘‘(4) The Emergency Food Assistance Act of 1983

11 (Public Law 98–8; 7 U.S.C. 612c note).

12 ‘‘(5) The food distribution program on Indian

13 reservations established under section 4(b) of Public

14 Law 88–525 (7 U.S.C. 2013(b)).’’.

15 SEC. 1206. COMMODITY DISTRIBUTION.

16 (a) CEREAL AND SHORTENING IN COMMODITY DONA17 TIONS.—Section 14(b) of the National School Lunch Act (42

18 U.S.C. 1762a(b)) is amended—

19 (1) by striking paragraph (1); and

20 (2) by redesignating paragraphs (2) and (3) as

21 paragraphs (1) and (2), respectively.

22 (b) ADVISORY COUNCIL.—Section 14(e) of the National

23 School Lunch Act (42 U.S.C. 1762a(e)) is amended by strik24 ing ‘‘educational’’.
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1 (c) CASH COMPENSATION FOR PILOT PROJECT

2 SCHOOLS.—Section 14(g) of the National School Lunch Act

3 (42 U.S.C. 1762a(g)) is amended by striking paragraph (3).

4 SEC. 1207. CHILD AND ADULT CARE FOOD PROGRAM.

5 (a) ESTABLISHMENT OF PROGRAM.—Section 17 of the

6 National School Lunch Act (42 U.S.C. 1766) is amended

7 in the first sentence of subsection (a), by striking ‘‘initiate,

8 maintain, and expand’’ and inserting ‘‘initiate and main9 tain’’.

10 (b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph

11 (2) of the last sentence of section 17(a) of the National

12 School Lunch Act (42 U.S.C. 1766(a)) is amended—

13 (1) in subparagraph (B), by striking ‘‘and’’ at

14 the end;

15 (2) in subparagraph (C), by striking the period

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

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

18 ‘‘(D) in the case of a family or group day

19 care home sponsoring organization that employs

20 more than 1 employee, the organization does not

21 base payments to an employee of the organiza22 tion on the number of family or group day care

23 homes recruited.’’.

24 (c) TECHNICAL ASSISTANCE.—The last sentence of sec25 tion 17(d)(1) of the National School Lunch Act (42 U.S.C.
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1 1766(d)(1)) is amended by striking ‘‘, and shall provide

2 technical assistance’’ and all that follows through ‘‘its ap3 plication’’.

4 (d) REIMBURSEMENT OF CHILD CARE INSTITU5 TIONS.—Section 17(f)(2)(B) of the National School Lunch

6 Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking ‘‘two

7 meals and two supplements or three meals and one supple8 ment’’ and inserting ‘‘2 meals and 1 supplement’’.

9 (e) IMPROVED TARGETING OF DAY CARE HOME REIM10 BURSEMENTS.—

11 (1) RESTRUCTURED DAY CARE HOME REIM12 BURSEMENTS.—Section 17(f)(3) of the National

13 School Lunch Act (42 U.S.C. 1766(f)(3)) is amended

14 by striking ‘‘(3)(A) Institutions’’ and all that follows

15 through the end of subparagraph (A) and inserting

16 the following:

17 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY

18 CARE HOME SPONSORING ORGANIZATIONS.—

19 ‘‘(A) REIMBURSEMENT FACTOR.—

20 ‘‘(i) IN GENERAL.—An institution that

21 participates in the program under this sec22 tion as a family or group day care home

23 sponsoring organization shall be provided,

24 for payment to a home sponsored by the or25 ganization, reimbursement factors in ac-
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1 cordance with this subparagraph for the

2 cost of obtaining and preparing food and

3 prescribed labor costs involved in providing

4 meals under this section.

5 ‘‘(ii) TIER I FAMILY OR GROUP DAY

6 CARE HOMES.—

7 ‘‘(I) DEFINITION OF TIER I FAM8 ILY OR GROUP DAY CARE HOME.—In

9 this paragraph, the term ‘tier I family

10 or group day care home’ means—

11 ‘‘(aa) a family or group day

12 care home that is located in a geo13 graphic area, as defined by the

14 Secretary based on census data, in

15 which at least 50 percent of the

16 children residing in the area are

17 members of households whose in18 comes meet the income eligibility

19 guidelines for free or reduced price

20 meals under section 9;

21 ‘‘(bb) a family or group day

22 care home that is located in an

23 area served by a school enrolling

24 elementary students in which at

25 least 50 percent of the total num-
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1 ber of children enrolled are cer2 tified eligible to receive free or re3 duced price school meals under

4 this Act or the Child Nutrition

5 Act of 1966 (42 U.S.C. 1771 et

6 seq.); or

7 ‘‘(cc) a family or group day

8 care home that is operated by a

9 provider whose household meets

10 the income eligibility guidelines

11 for free or reduced price meals

12 under section 9 and whose income

13 is verified by the sponsoring or

14 organization of the home under

15 regulations established by the Sec16 retary.

17 ‘‘(II) REIMBURSEMENT.—Except

18 as provided in subclause (III), a tier I

19 family or group day care home shall be

20 provided reimbursement factors under

21 this clause without a requirement for

22 documentation of the costs described in

23 clause (i), except that reimbursement

24 shall not be provided under this sub25 clause for meals or supplements served
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1 to the children of a person acting as a

2 family or group day care home pro3 vider unless the children meet the in4 come eligibility guidelines for free or

5 reduced price meals under section 9.

6 ‘‘(III) FACTORS.—Except as pro7 vided in subclause (IV), the reimburse8 ment factors applied to a home referred

9 to in subclause (II) shall be the factors

10 in effect on July 1, 1996.

11 ‘‘(IV) ADJUSTMENTS.—The reim12 bursement factors under this subpara13 graph shall be adjusted on July 1,

14 1997, and each July 1 thereafter, to re15 flect changes in the Consumer Price

16 Index for food at home for the most re17 cent 12-month period for which the

18 data are available. The reimbursement

19 factors under this subparagraph shall

20 be rounded to the nearest lower cent

21 increment and based on the unrounded

22 adjustment in effect on June 30 of the

23 preceding school year.

24 ‘‘(iii) TIER II FAMILY OR GROUP DAY

25 CARE HOMES.—
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1 ‘‘(I) IN GENERAL.—

2 ‘‘(aa) FACTORS.—Except as

3 provided in subclause (II), with

4 respect to meals or supplements

5 served under this clause by a fam6 ily or group day care home that

7 does not meet the criteria set forth

8 in clause (ii)(I), the reimburse9 ment factors shall be $1 for

10 lunches and suppers, 30 cents for

11 breakfasts, and 15 cents for sup12 plements.

13 ‘‘(bb) ADJUSTMENTS.—The

14 factors shall be adjusted on July

15 1, 1997, and each July 1 there16 after, to reflect changes in the

17 Consumer Price Index for food at

18 home for the most recent 12-month

19 period for which the data are

20 available. The reimbursement fac21 tors under this item shall be

22 rounded down to the nearest lower

23 cent increment and based on the

24 unrounded adjustment for the pre25 ceding 12-month period.
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1 ‘‘(cc) REIMBURSEMENT.—A

2 family or group day care home

3 shall be provided reimbursement

4 factors under this subclause with5 out a requirement for documenta6 tion of the costs described in

7 clause (i), except that reimburse8 ment shall not be provided under

9 this subclause for meals or supple10 ments served to the children of a

11 person acting as a family or

12 group day care home provider un13 less the children meet the income

14 eligibility guidelines for free or re15 duced price meals under section 9.

16 ‘‘(II) OTHER FACTORS.—A family

17 or group day care home that does not

18 meet the criteria set forth in clause

19 (ii)(I) may elect to be provided reim20 bursement factors determined in ac21 cordance with the following require22 ments:

23 ‘‘(aa) CHILDREN ELIGIBLE

24 FOR FREE OR REDUCED PRICE

25 MEALS.—In the case of meals or
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1 supplements served under this

2 subsection to children who are

3 members of households whose in4 comes meet the income eligibility

5 guidelines for free or reduced price

6 meals under section 9, the family

7 or group day care home shall be

8 provided reimbursement factors

9 set by the Secretary in accordance

10 with clause (ii)(III).

11 ‘‘(bb) INELIGIBLE CHIL12 DREN.—In the case of meals or

13 supplements served under this

14 subsection to children who are

15 members of households whose in16 comes do not meet the income eli17 gibility guidelines, the family or

18 group day care home shall be pro19 vided reimbursement factors in

20 accordance with subclause (I).

21 ‘‘(III) INFORMATION AND DETER22 MINATIONS.—

23 ‘‘(aa) IN GENERAL.—If a

24 family or group day care home

25 elects to claim the factors de-
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1 scribed in subclause (II), the fam2 ily or group day care home spon3 soring organization serving the

4 home shall collect the necessary

5 income information, as deter6 mined by the Secretary, from any

7 parent or other caretaker to make

8 the determinations specified in

9 subclause (II) and shall make the

10 determinations in accordance

11 with rules prescribed by the Sec12 retary.

13 ‘‘(bb) CATEGORICAL ELIGI14 BILITY.—In making a determina15 tion under item (aa), a family or

16 group day care home sponsoring

17 organization may consider a child

18 participating in or subsidized

19 under, or a child with a parent

20 participating in or subsidized

21 under, a federally or State sup22 ported child care or other benefit

23 program with an income eligi24 bility limit that does not exceed

25 the eligibility standard for free or
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1 reduced price meals under section

2 9 to be a child who is a member

3 of a household whose income meets

4 the income eligibility guidelines

5 under section 9.

6 ‘‘(cc) FACTORS FOR CHIL7 DREN ONLY.—A family or group

8 day care home may elect to re9 ceive the reimbursement factors

10 prescribed under clause (ii)(III)

11 solely for the children participat12 ing in a program referred to in

13 item (bb) if the home elects not to

14 have income statements collected

15 from parents or other caretakers.

16 ‘‘(IV) SIMPLIFIED MEAL COUNT17 ING AND REPORTING PROCEDURES.—

18 The Secretary shall prescribe sim19 plified meal counting and reporting

20 procedures for use by a family or

21 group day care home that elects to

22 claim the factors under subclause (II)

23 and by a family or group day care

24 home sponsoring organization that

25 sponsors the home. The procedures the
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1 Secretary prescribes may include 1 or

2 more of the following:

3 ‘‘(aa) Setting an annual per4 centage for each home of the num5 ber of meals served that are to be

6 reimbursed in accordance with the

7 reimbursement factors prescribed

8 under clause (ii)(III) and an an9 nual percentage of the number of

10 meals served that are to be reim11 bursed in accordance with the re12 imbursement factors prescribed

13 under subclause (I), based on the

14 family income of children enrolled

15 in the home in a specified month

16 or other period.

17 ‘‘(bb) Placing a home into 1

18 of 2 or more reimbursement cat19 egories annually based on the per20 centage of children in the home

21 whose households have incomes

22 that meet the income eligibility

23 guidelines under section 9, with

24 each such reimbursement category

25 carrying a set of reimbursement
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1 factors such as the factors pre2 scribed under clause (ii)(III) or

3 subclause (I) or factors established

4 within the range of factors pre5 scribed under clause (ii)(III) and

6 subclause (I).

7 ‘‘(cc) Such other simplified

8 procedures as the Secretary may

9 prescribe.

10 ‘‘(V) MINIMUM VERIFICATION RE11 QUIREMENTS.—The Secretary may es12 tablish any minimum verification re13 quirements that are necessary to carry

14 out this clause.’’.

15 (2) GRANTS TO STATES TO PROVIDE ASSISTANCE

16 TO FAMILY OR GROUP DAY CARE HOMES.—Section

17 17(f)(3) of the National School Lunch Act (42 U.S.C.

18 1766(f)(3)) is amended by adding at the end the fol19 lowing:

20 ‘‘(D) GRANTS TO STATES TO PROVIDE AS21 SISTANCE TO FAMILY OR GROUP DAY CARE

22 HOMES.—

23 ‘‘(i) IN GENERAL.—

24 ‘‘(I) RESERVATION.—From

25 amounts made available to carry out
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1 this section, the Secretary shall reserve

2 $5,000,000 of the amount made avail3 able for fiscal year 1997.

4 ‘‘(II) PURPOSE.—The Secretary

5 shall use the funds made available

6 under subclause (I) to provide grants

7 to States for the purpose of provid8 ing—

9 ‘‘(aa) assistance, including

10 grants, to family and day care

11 home sponsoring organizations

12 and other appropriate organiza13 tions, in securing and providing

14 training, materials, automated

15 data processing assistance, and

16 other assistance for the staff of the

17 sponsoring organizations; and

18 ‘‘(bb) training and other as19 sistance to family and group day

20 care homes in the implementation

21 of the amendment to subpara22 graph (A) made by section

23 1208(e)(1) of the Agricultural

24 Reconciliation Act of 1996.
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1 ‘‘(ii) ALLOCATION.—The Secretary

2 shall allocate from the funds reserved under

3 clause (i)(I)—

4 ‘‘(I) $30,000 in base funding to

5 each State; and

6 ‘‘(II) any remaining amount

7 among the States, based on the number

8 of family day care homes participating

9 in the program in a State during fis10 cal year 1995 as a percentage of the

11 number of all family day care homes

12 participating in the program during

13 fiscal year 1995.

14 ‘‘(iii) RETENTION OF FUNDS.—Of the

15 amount of funds made available to a State

16 for fiscal year 1997 under clause (i), the

17 State may retain not to exceed 30 percent

18 of the amount to carry out this subpara19 graph.

20 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

21 payments received under this subparagraph

22 shall be in addition to payments that a

23 State receives under subparagraph (A).’’.

24 (3) PROVISION OF DATA.—Section 17(f)(3) of the

25 National School Lunch Act (42 U.S.C. 1766(f)(3)), as
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1 amended by paragraph (2), is amended by adding at

2 the end the following:

3 ‘‘(E) PROVISION OF DATA TO FAMILY OR

4 GROUP DAY CARE HOME SPONSORING ORGANIZA5 TIONS.—

6 ‘‘(i) CENSUS DATA.—The Secretary

7 shall provide to each State agency admin8 istering a child and adult care food pro9 gram under this section data from the most

10 recent decennial census survey or other ap11 propriate census survey for which the data

12 are available showing which areas in the

13 State meet the requirements of subpara14 graph (A)(ii)(I)(aa). The State agency shall

15 provide the data to family or group day

16 care home sponsoring organizations located

17 in the State.

18 ‘‘(ii) SCHOOL DATA.—

19 ‘‘(I) IN GENERAL.—A State agen20 cy administering the school lunch pro21 gram under this Act or the school

22 breakfast program under the Child Nu23 trition Act of 1966 (42 U.S.C. 1771 et

24 seq.) shall provide to approved family

25 or group day care home sponsoring or-
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1 ganizations a list of schools serving ele2 mentary school children in the State in

which not less than 1 3 ⁄2 of the children

4 enrolled are certified to receive free or

5 reduced price meals. The State agency

6 shall collect the data necessary to cre7 ate the list annually and provide the

8 list on a timely basis to any approved

9 family or group day care home spon10 soring organization that requests the

11 list.

12 ‘‘(II) USE OF DATA FROM PRE13 CEDING SCHOOL YEAR.—In determin14 ing for a fiscal year or other annual

15 period whether a home qualifies as a

16 tier I family or group day care home

17 under subparagraph (A)(ii)(I), the

18 State agency administering the pro19 gram under this section, and a family

20 or group day care home sponsoring or21 ganization, shall use the most current

22 available data at the time of the deter23 mination.

24 ‘‘(iii) DURATION OF DETERMINA25 TION.—For purposes of this section, a deter-
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1 mination that a family or group day care

2 home is located in an area that qualifies the

3 home as a tier I family or group day care

4 home (as the term is defined in subpara5 graph (A)(ii)(I)), shall be in effect for 3

6 years (unless the determination is made on

7 the basis of census data, in which case the

8 determination shall remain in effect until

9 more recent census data are available) un10 less the State agency determines that the

11 area in which the home is located no longer

12 qualifies the home as a tier I family or

13 group day care home.’’.

14 (4) CONFORMING AMENDMENTS.—Section 17(c)

15 of the National School Lunch Act (42 U.S.C. 1766(c))

16 is amended by inserting ‘‘except as provided in sub17 section (f)(3),’’ after ‘‘For purposes of this section,’’

18 each place it appears in paragraphs (1), (2), and (3).

19 (f) REIMBURSEMENT.—Section 17(f) of the National

20 School Lunch Act (42 U.S.C. 1766(f)) is amended—

21 (1) in paragraph (3)—

22 (A) in subparagraph (B), by striking the

23 third and fourth sentences; and

24 (B) in subparagraph (C)(ii), by striking

25 ‘‘conduct outreach’’ and all that follows through
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1 ‘‘may become’’ and inserting ‘‘assist unlicensed

2 family or group day care homes in becoming’’;

3 and

4 (2) in the first sentence of paragraph (4), by

5 striking ‘‘shall’’ and inserting ‘‘may’’.

6 (g) NUTRITIONAL REQUIREMENTS.—Section 17(g)(1)

7 of the National School Lunch Act (42 U.S.C. 1766(g)(1))

8 is amended—

9 (1) in subparagraph (A), by striking the second

10 sentence; and

11 (2) in subparagraph (B), by striking the second

12 sentence.

13 (h) ELIMINATION OF STATE PAPERWORK AND OUT14 REACH BURDEN.—Section 17 of the National School Lunch

15 Act (42 U.S.C. 1766) is amended by striking subsection (k)

16 and inserting the following:

17 ‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A

18 State participating in the program established under this

19 section shall provide sufficient training, technical assist20 ance, and monitoring to facilitate effective operation of the

21 program. The Secretary shall assist the State in developing

22 plans to fulfill the requirements of this subsection.’’.

23 (i) RECORDS.—The second sentence of section 17(m)

24 of the National School Lunch Act (42 U.S.C. 1766(m)) is
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1 amended by striking ‘‘at all times’’ and inserting ‘‘at any

2 reasonable time’’.

3 (j) INFORMATION FOR PARENTS.—Section 17 of the

4 National School Lunch Act (42 U.S.C. 1766) is amended

5 by striking subsection (q) and inserting the following:

6 ‘‘(q) INFORMATION FOR PARENTS.—The State agency

7 shall ensure that, at least once a year, child care institu8 tions provide written information to parents that in9 cludes—

10 ‘‘(1) basic information on the benefits of the spe11 cial supplemental nutrition program for women, in12 fants, and children authorized under section 17 of the

13 Child Nutrition Act of 1966 (42 U.S.C. 1786);

14 ‘‘(2) information on the maximum income lim15 its, according to family size, applicable to the pro16 gram; and

17 ‘‘(3) information on where parents may apply to

18 participate in the program.’’.

19 (k) EFFECTIVE DATE.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall

22 become effective on the date of enactment of this Act.

23 (2) IMPROVED TARGETING OF DAY CARE HOME

24 REIMBURSEMENTS.—The amendments made by para-
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1 graphs (1) and (4) of subsection (e) shall become effec2 tive on July 1, 1997.

3 (3) REGULATIONS.—

4 (A) INTERIM REGULATIONS.—Not later than

5 January 1, 1997, the Secretary of Agriculture

6 shall issue interim regulations to implement—

7 (i) the amendments made by para8 graphs (1), (3), and (4) of subsection (e);

9 and

10 (ii) section 17(f)(3)(C) of the National

11 School Lunch Act (42 U.S.C.

12 1766(f)(3)(C)).

13 (B) FINAL REGULATIONS.—Not later than

14 July 1, 1997, the Secretary of Agriculture shall

15 issue final regulations to implement the provi16 sions of law referred to in subparagraph (A).

17 (l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM

18 PARTICIPATION AND FAMILY DAY CARE LICENSING.—

19 (1) IN GENERAL.—The Secretary of Agriculture,

20 in conjunction with the Secretary of Health and

21 Human Services, shall study the impact of the

22 amendments made by this section on—

23 (A) the number of family day care homes

24 participating in the child and adult care food
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1 program established under section 17 of the Na2 tional School Lunch Act (42 U.S.C. 1766);

3 (B) the number of day care home sponsor4 ing organizations participating in the program;

5 (C) the number of day care homes that are

6 licensed, certified, registered, or approved by

7 each State in accordance with regulations issued

8 by the Secretary;

9 (D) the rate of growth of the numbers re10 ferred to in subparagraphs (A) through (C);

11 (E) the nutritional adequacy and quality of

12 meals served in family day care homes that—

13 (i) received reimbursement under the

14 program prior to the amendments made by

15 this section but do not receive reimburse16 ment after the amendments made by this

17 section; or

18 (ii) received full reimbursement under

19 the program prior to the amendments made

20 by this section but do not receive full reim21 bursement after the amendments made by

22 this section; and

23 (F) the proportion of low-income children

24 participating in the program prior to the

25 amendments made by this section and the pro-
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1 portion of low-income children participating in

2 the program after the amendments made by this

3 section.

4 (2) REQUIRED DATA.—Each State agency par5 ticipating in the child and adult care food program

6 under section 17 of the National School Lunch Act

7 (42 U.S.C. 1766) shall submit to the Secretary of Ag8 riculture data on—

9 (A) the number of family day care homes

10 participating in the program on June 30, 1997,

11 and June 30, 1998;

12 (B) the number of family day care homes li13 censed, certified, registered, or approved for serv14 ice on June 30, 1997, and June 30, 1998; and

15 (C) such other data as the Secretary may

16 require to carry out this subsection.

17 (3) SUBMISSION OF REPORT.—Not later than 2

18 years after the date of enactment of this section, the

19 Secretary of Agriculture shall submit the study re20 quired under this subsection to the Committee on Eco21 nomic and Educational Opportunities of the House of

22 Representatives and the Committee on Agriculture,

23 Nutrition, and Forestry of the Senate.
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1 SEC. 1208. PILOT PROJECTS.

2 (a) UNIVERSAL FREE PILOT.—Section 18(d) of the

3 National School Lunch Act (42 U.S.C. 1769(d)) is amend4 ed—

5 (1) by striking paragraph (3); and

6 (2) by redesignating paragraphs (4) and (5) as

7 paragraphs (3) and (4), respectively.

8 (b) DEMONSTRATION PROJECT OUTSIDE SCHOOL

9 HOURS.—Section 18(e) of the National School Lunch Act

10 (42 U.S.C. 1769(e)) is amended—

11 (1) in paragraph (1)—

12 (A) in subparagraph (A)—

13 (i) by striking ‘‘(A)’’; and

14 (ii) by striking ‘‘shall’’ and inserting

15 ‘‘may’’; and

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

17 (2) by striking paragraph (5) and inserting the

18 following:

19 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

20 There are authorized to be appropriated to carry out

21 this subsection such sums as are necessary for each of

22 fiscal years 1997 and 1998.’’.

23 (c) CONFORMING AMENDMENT.—Section 17B(d)(1)(A)

24 of the National School Lunch Act (42 U.S.C.

25 1766b(d)(1)(A)) is amended by striking ‘‘18(c)’’ and insert26 ing ‘‘18(b)’’.
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1 SEC. 1209. REDUCTION OF PAPERWORK.

2 Section 19 of the National School Lunch Act (42

3 U.S.C. 1769a) is repealed.

4 SEC. 1210. INFORMATION ON INCOME ELIGIBILITY.

5 Section 23 of the National School Lunch Act (42

6 U.S.C. 1769d) is repealed.

7 SEC. 1211. NUTRITION GUIDANCE FOR CHILD NUTRITION

8 PROGRAMS.

9 Section 24 of the National School Lunch Act (42

10 U.S.C. 1769e) is repealed.

11 CHAPTER 2—AMENDMENTS TO THE CHILD

12 NUTRITION ACT OF 1966

13 SEC. 1251. SPECIAL MILK PROGRAM.

14 Section 3(a)(3) of the Child Nutrition Act of 1966 (42

15 U.S.C. 1772(a)(3)) is amended by striking ‘‘the Trust Ter16 ritory of the Pacific Islands’’ and inserting ‘‘the Common17 wealth of the Northern Mariana Islands’’.

18 SEC. 1252. FREE AND REDUCED PRICE POLICY STATEMENT.

19 Section 4(b)(1) of the Child Nutrition Act of 1966 (42

20 U.S.C. 1773(b)(1)) is amended by adding at the end the

21 following:

22 ‘‘(E) FREE AND REDUCED PRICE POLICY

23 STATEMENT.—After the initial submission, a

24 school food authority shall not be required to

25 submit a free and reduced price policy statement

26 to a State educational agency under this Act un-
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1 less there is a substantive change in the free and

2 reduced price policy of the school food authority.

3 A routine change in the policy of a school food

4 authority, such as an annual adjustment of the

5 income eligibility guidelines for free and reduced

6 price meals, shall not be sufficient cause for re7 quiring the school food authority to submit a

8 policy statement.’’.

9 SEC. 1253. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

10 (a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD

11 PREPARATION.—Section 4(e)(1)(B) of the Child Nutrition

12 Act of 1966 (42 U.S.C. 1773(e)(1)(B)) is amended by strik13 ing the second sentence.

14 (b) EXPANSION OF PROGRAM; STARTUP AND EXPAN15 SION COSTS.—

16 (1) IN GENERAL.—Section 4 of the Child Nutri17 tion Act of 1966 (42 U.S.C. 1773) is amended by

18 striking subsections (f) and (g).

19 (2) EFFECTIVE DATE.—The amendments made

20 by paragraph (1) shall become effective on October 1,

21 1996.

22 SEC. 1254. STATE ADMINISTRATIVE EXPENSES.

23 (a) USE OF FUNDS FOR COMMODITY DISTRIBUTION

24 ADMINISTRATION; STUDIES.—Section 7 of the Child Nutri25 tion Act of 1966 (42 U.S.C. 1776) is amended—
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1 (1) by striking subsections (e) and (h); and

2 (2) by redesignating subsections (f), (g), and (i)

3 as subsections (e), (f), and (g), respectively.

4 (b) APPROVAL OF CHANGES.—Section 7(e) of the Child

5 Nutrition Act of 1966 (42 U.S.C. 1776(e)), as so redesig6 nated, is amended—

7 (1) by striking ‘‘each year an annual plan’’ and

8 inserting ‘‘the initial fiscal year a plan’’; and

9 (2) by adding at the end the following: ‘‘After

10 submitting the initial plan, a State shall be required

11 to submit to the Secretary for approval only a sub12 stantive change in the plan.’’.

13 SEC. 1255. REGULATIONS.

14 Section 10(b) of the Child Nutrition Act of 1966 (42

15 U.S.C. 1779(b)) is amended—

16 (1) in paragraph (1), by striking ‘‘(1)’’; and

17 (2) by striking paragraphs (2) through (4).

18 SEC. 1256. PROHIBITIONS.

19 Section 11(a) of the Child Nutrition Act of 1966 (42

20 U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec21 retary nor the State shall’’ and inserting ‘‘the Secretary

22 shall not’’.
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1 SEC. 1257. MISCELLANEOUS PROVISIONS AND DEFINI2 TIONS.

3 Section 15 of the Child Nutrition Act of 1966 (42

4 U.S.C. 1784) is amended—

5 (1) in paragraph (1), by striking ‘‘the Trust Ter6 ritory of the Pacific Islands’’ and inserting ‘‘the Com7 monwealth of the Northern Mariana Islands’’; and

8 (2) in the first sentence of paragraph (3)—

9 (A) in subparagraph (A), by inserting

10 ‘‘and’’ at the end; and

11 (B) by striking ‘‘, and (C)’’ and all that fol12 lows through ‘‘Governor of Puerto Rico’’.

13 SEC. 1258. ACCOUNTS AND RECORDS.

14 The second sentence of section 16(a) of the Child Nutri15 tion Act of 1966 (42 U.S.C. 1785(a)) is amended by striking

16 ‘‘at all times be available’’ and inserting ‘‘be available at

17 any reasonable time’’.

18 SEC. 1259. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

19 FOR WOMEN, INFANTS, AND CHILDREN.

20 (a) DEFINITIONS.—Section 17(b) of the Child Nutri21 tion Act of 1966 (42 U.S.C. 1786(b)) is amended—

22 (1) in paragraph (15)(B)(iii), by inserting ‘‘of

23 not more than 365 days’’ after ‘‘accommodation’’; and

24 (2) in paragraph (16)—

25 (A) in subparagraph (A), by adding ‘‘and’’

26 at the end; and
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1 (B) in subparagraph (B), by striking ‘‘;

2 and’’ and inserting a period; and

3 (C) by striking subparagraph (C).

4 (b) SECRETARY’S PROMOTION OF WIC.—Section 17(c)

5 of the Child Nutrition Act of 1966 (42 U.S.C. 1786(c)) is

6 amended by striking paragraph (5).

7 (c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the

8 Child Nutrition Act of 1966 (42 U.S.C. 1786(d)) is amend9 ed by striking paragraph (4).

10 (d) STATE PLAN.—Section 17(f) of the Child Nutrition

11 Act of 1966 (42 U.S.C. 1786(f)) is amended—

12 (1) in paragraph (1)—

13 (A) in subparagraph (A)—

14 (i) by striking ‘‘annually to the Sec15 retary, by a date specified by the Secretary,

16 a’’ and inserting ‘‘to the Secretary, by a

17 date specified by the Secretary, an initial’’;

18 and

19 (ii) by adding at the end the following:

20 ‘‘After submitting the initial plan, a State

21 shall be required to submit to the Secretary

22 for approval only a substantive change in

23 the plan.’’;

24 (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) in clause (vii), by striking ‘‘to

14 provide program benefits’’ and all that fol15 lows through ‘‘emphasis on’’ and inserting

16 ‘‘for’’;

17 (iv) by striking clauses (ix), (x), and

18 (xii);

19 (v) in clause (xiii), by striking ‘‘may

20 require’’ and inserting ‘‘may reasonably re21 quire’’;

22 (vi) by redesignating clauses (xi) and

23 (xiii), as so amended, as clauses (ix) and

24 (x), respectively; and
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1 (vii) in clause (ix), as so redesignated,

2 by adding ‘‘and’’ at the end;

3 (C) by striking subparagraph (D); and

4 (D) by redesignating subparagraph (E) as

5 subparagraph (D);

6 (2) in the second sentence of paragraph (5), by

7 striking ‘‘at all times be available’’ and inserting ‘‘be

8 available at any reasonable time’’;

9 (3) in paragraph (9)(B), by striking the second

10 sentence;

11 (4) in the first sentence of paragraph (11), by

12 striking ‘‘, including standar5s that will ensure suffi13 cient State agency staff’’;

14 (5) in paragraph (12), by striking the third sen15 tence;

16 (6) in paragraph (17), by striking ‘‘and to ac17 commodate’’ and all that follows through ‘‘facilities’’;

18 (7) in paragraph (19), by striking ‘‘shall’’ and

19 inserting ‘‘may’’; and

20 (8) by redesignating paragraphs (3), (4), (5),

21 (7), (9) through (21), (23), and (24) as paragraphs

22 (2), (3), (4), (5), (6) through (18), (19), and (20), re23 spectively.

24 (e) INFORMATION.—Section 17(g) of the Child Nutri25 tion Act of 1966 (42 U.S.C. 1786(g)) is 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 (f) PROCUREMENT OF INFANT FORMULA.—

6 (1) IN GENERAL.—Section 17(h) of the Child Nu7 trition Act of 1966 (42 U.S.C. 1786(h)) is 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), (C),

12 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 (C),
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1 (D), and (E)(iii), in carrying out subpara2 graph (A),’’ and inserting ‘‘subparagraphs

3 (B) and (C)(iii),’’;

4 (vi) in subparagraph (B)(i), as so re5 designated, by striking ‘‘subparagraph (B)’’

6 each place it appears and inserting ‘‘sub7 paragraph (A)’’; and

8 (vii) in subparagraph (C)(iii), as so

9 redesignated, by striking ‘‘subparagraph

10 (B)’’ and inserting ‘‘subparagraph (A)’’;

11 and

12 (2) APPLICATION.—The amendments made by

13 paragraph (1) shall not apply to a contract for the

14 procurement of infant formula under section 17(h)(8)

15 of the Child Nutrition Act of 1966 (42 U.S.C.

16 1786(h)(8)) that is in effect on the date of enactment

17 of this subsection.

18 (g) NATIONAL ADVISORY COUNCIL ON MATERNAL, IN19 FANT, AND FETAL NUTRITION.—Section 17(k)(3) of the

20 Child Nutrition Act of 1966 (42 U.S.C. 1786(k)(3)) is

21 amended by striking ‘‘Secretary shall designate’’ and insert22 ing ‘‘Council shall elect’’.

23 (h) COMPLETED STUDY; COMMUNITY COLLEGE DEM24 ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS25 TEM.—Section 17 of the Child Nutrition Act of 1966 (42
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1 U.S.C. 1786) is amended by striking subsections (n), (o),

2 and (p).

3 (i) DISQUALIFICATION OF VENDORS WHO ARE DIS4 QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Section

5 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786),

6 as amended by subsection (i), is amended by adding at the

7 end the following:

8 ‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE DIS9 QUALIFIED UNDER THE FOOD STAMP PROGRAM.—

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

11 regulations providing criteria for the disqualification

12 under this section of an approved vendor that is dis13 qualified from accepting benefits under the food

14 stamp program established under the Food Stamp Act

15 of 1977 (7 U.S.C. 2011 et seq.).

16 ‘‘(2) TERMS.—A disqualification under para17 graph (1)—

18 ‘‘(A) shall be for the same period as the dis19 qualification from the program referred to in

20 paragraph (1);

21 ‘‘(B) may begin at a later date than the dis22 qualification from the program referred to in

23 paragraph (1); and

24 ‘‘(C) shall not be subject to judicial or ad25 ministrative review.’’.
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1 SEC. 1260. 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. 1261. NUTRITION EDUCATION AND TRAINING.

5 (a) FINDINGS.—Section 19 of the Child Nutrition Act

6 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 in9 serting ‘‘that effective dissemination of scientifically

10 valid information to children participating or eligible

11 to participate in the school lunch and related child

12 nutrition programs should be encouraged.’’; and

13 (2) in the first sentence of subsection (b), by

14 striking ‘‘encourage’’ and all that follows through ‘‘es15 tablishing’’ and inserting ‘‘establish’’.

16 (b) USE OF FUNDS.—Section 19(f) of the Child Nutri17 tion Act of 1966 (42 U.S.C. 1788(f)) is amended—

18 (1) in paragraph (1)—

19 (A) by striking subparagraph (B); and

20 (B) in subparagraph (A)—

21 (i) by striking ‘‘(A)’’;

22 (ii) by striking clauses (ix) through

23 (xix);

24 (iii) by redesignating clauses (i)

25 through (viii) and (xx) as subparagraphs

26 (A) through (H) and (I), respectively;
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1 (iv) in subparagraph (I), as so redesig2 nated, by striking the period at the end and

3 inserting ‘‘; and’’; and

4 (v) by adding at the end the following:

5 ‘‘(J) other appropriate related activities, as de6 termined by the State.’’;

7 (2) by striking paragraphs (2) and (4); and

8 (3) by redesignating paragraph (3) as para9 graph (2).

10 (c) ACCOUNTS, RECORDS, AND REPORTS.—The second

11 sentence of section 19(g)(1) of the Child Nutrition Act of

12 1966 (42 U.S.C. 1788(g)(1)) is amended by striking ‘‘at all

13 times be available’’ and inserting ‘‘be available at any rea14 sonable time’’.

15 (d) STATE COORDINATORS FOR NUTRITION; STATE

16 PLAN.—Section 19(h) of the Child Nutrition Act of 1966

17 (42 U.S.C. 1788(h)) is amended—

18 (1) in the second sentence of paragraph (1)—

19 (A) by striking ‘‘as provided in paragraph

20 (2) of this subsection’’; and

21 (B) by striking ‘‘as provided in paragraph

22 (3) of this subsection’’;

23 (2) in paragraph (2), by striking the second and

24 third sentences; and

25 (3) by striking paragraph (3).
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1 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

2 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(i))

3 is amended—

4 (1) in the first sentence of paragraph (2)(A), by

5 striking ‘‘and each succeeding fiscal year’’;

6 (2) by redesignating paragraphs (3) and (4) as

7 paragraphs (4) and (5), respectively; and

8 (3) by inserting after paragraph (2) the follow9 ing:

10 ‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

11 ‘‘(A) IN GENERAL.—There are authorized to

12 be appropriated to carry out this section

13 $10,000,000 for each of fiscal years 1997 through

14 2002.

15 ‘‘(B) GRANTS.—

16 ‘‘(i) IN GENERAL.—Grants to each

17 State from the amounts made available

18 under subparagraph (A) shall be based on a

19 rate of 50 cents for each child enrolled in

20 schools or institutions within the State, ex21 cept that no State shall receive an amount

22 less than $75,000 per fiscal year.

23 ‘‘(ii) INSUFFICIENT FUNDS.—If the

24 amount made available for any fiscal year

25 is insufficient to pay the amount to which
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1 each State is entitled under clause (i), the

2 amount of each grant shall be ratably re3 duced.’’.

4 (f) ASSESSMENT.—Section 19 of the Child Nutrition

5 Act of 1966 (42 U.S.C. 1788) is amended by striking sub6 section (j).

7 (g) EFFECTIVE DATE.—The amendments made by sub8 section (e) shall become effective on October 1, 1996.

9 SEC. 1262. ROUNDING RULES.

10 (a) SPECIAL MILK PRICE PROGRAM RATES.—Section

11 3(a)(8) of the Child Nutrition Act of 1966 (42 U.S.C.

12 1772(a)(8)) is amended by striking ‘‘one-fourth cent’’ and

13 inserting ‘‘lower cent increment’’.

14 (b) REDUCED PRICE BREAKFAST RATES.—Section

15 4(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b))

16 is amended—

17 (1) in the second sentence of paragraph (1)(B),

18 by striking ‘‘one-fourth cent’’ and inserting ‘‘lower

19 cent increment’’; and

20 (2) in paragraph (2)(B)(ii), by striking ‘‘one21 fourth cent’’ and inserting ‘‘lower cent increment’’.

22 (c) COMMODITY RATE.—The second sentence of section

23 6(e)(1)(B) of the National School Lunch Act (42 U.S.C.

1755(e)(1)(B)) is amended by striking ‘‘1 24 ⁄4 cent’’ and insert25 ing ‘‘lower cent increment’’.
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1 (d) LUNCH, BREAKFAST, AND SUPPLEMENT RATES.—

2 The third sentence of section 11(a)(3)(B) of the National

3 School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended

4 by striking ‘‘one-fourth cent’’ and inserting ‘‘lower cent in5 crement’’.

6 (e) EFFECTIVE DATE.—The amendments made by this

7 section shall become effective on July 1, 1996.

8 TITLE II—COMMITTEE ON

9 FINANCE

10 Subtitle A—Welfare Reform

11 SEC. 2001. SHORT TITLE OF SUBTITLE.

12 This subtitle may be cited as the ‘‘Personal Respon13 sibility and Work Opportunity Act of 1996’’.

14 SEC. 2002. TABLE OF CONTENTS OF SUBTITLE.

15 The table of contents for this subtitle is as follows:

TITLE II—COMMITTEE ON FINANCE

Subtitle A—Welfare Reform

Sec. 2001. Short title.

Sec. 2002. Table of contents.

CHAPTER 1—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY

FAMILIES

Sec. 2101. Findings.

Sec. 2102. Reference to Social Security Act.

Sec. 2103. Block grants to States.

Sec. 2104. Services provided by charitable, religious, or private organizations.

Sec. 2105. Census data on grandparents as primary caregivers for their grandchildren.

Sec. 2106. Report on data processing.

Sec. 2107. Study on alternative outcomes measures.

Sec. 2108. Welfare Formula Fairness Commission.

Sec. 2109. Conforming amendments to the Social Security Act.

Sec. 2110. Conforming amendments to the Food Stamp Act of 1977 and related

provisions.

Sec. 2111. Conforming amendments to other laws.
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Sec. 2112. Development of prototype of counterfeit-resistant social security card

required.

Sec. 2113. Modifications to the job opportunities for certain low-income individuals program.

Sec. 2114. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 2115. Effective date; transition rule.

Sec. 2116. Community Steering Committees demonstration projects.

Sec. 2117. Denial of benefits for certain drug related convictions.

CHAPTER 2—SUPPLEMENTAL SECURITY INCOME

Sec. 2200. Reference to Social Security Act.

SUBCHAPTER A—ELIGIBILITY RESTRICTIONS

Sec. 2201. 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. 2202. Denial of SSI benefits for fugitive felons and probation and parole violators.

Sec. 2203. Treatment of prisoners.

Sec. 2204. Effective date of application for benefits.

SUBCHAPTER B—BENEFITS FOR DISABLED CHILDREN

Sec. 2211. Definition and eligibility rules.

Sec. 2212. Eligibility redeterminations and continuing disability reviews.

Sec. 2213. Additional accountability requirements.

Sec. 2214. Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by private insurance.

Sec. 2215. Regulations.

SUBCHAPTER C—ADDITIONAL ENFORCEMENT PROVISION

Sec. 2221. Installment payment of large past-due supplemental security income

benefits.

Sec. 2222. Regulations.

SUBCHAPTER D—STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME

PROGRAM

Sec. 2231. Annual report on the supplemental security income program.

Sec. 2232. Study by General Accounting Office.

CHAPTER 3—CHILD SUPPORT

Sec. 2300. Reference to Social Security Act.

SUBCHAPTER A—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS

Sec. 2301. State obligation to provide child support enforcement services.

Sec. 2302. Distribution of child support collections.

Sec. 2303. Privacy safeguards.

Sec. 2304. Rights to notification of hearings.

SUBCHAPTER B—LOCATE AND CASE TRACKING

Sec. 2311. State case registry.

Sec. 2312. Collection and disbursement of support payments.
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Sec. 2313. State directory of new hires.

Sec. 2314. Amendments concerning income withholding.

Sec. 2315. Locator information from interstate networks.

Sec. 2316. Expansion of the Federal Parent Locator Service.

Sec. 2317. Collection and use of social security numbers for use in child support

enforcement.

SUBCHAPTER C—STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 2321. Adoption of uniform State laws.

Sec. 2322. Improvements to full faith and credit for child support orders.

Sec. 2323. Administrative enforcement in interstate cases.

Sec. 2324. Use of forms in interstate enforcement.

Sec. 2325. State laws providing expedited procedures.

SUBCHAPTER D—PATERNITY ESTABLISHMENT

Sec. 2331. State laws concerning paternity establishment.

Sec. 2332. Outreach for voluntary paternity establishment.

Sec. 2333. Cooperation by applicants for and recipients of part A assistance.

SUBCHAPTER E—PROGRAM ADMINISTRATION AND FUNDING

Sec. 2341. Performance-based incentives and penalties.

Sec. 2342. Federal and State reviews and audits.

Sec. 2343. Required reporting procedures.

Sec. 2344. Automated data processing requirements.

Sec. 2345. Technical assistance.

Sec. 2346. Reports and data collection by the Secretary.

SUBCHAPTER F—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 2351. Simplified process for review and adjustment of child support orders.

Sec. 2352. Furnishing consumer reports for certain purposes relating to child

support.

Sec. 2353. Nonliability for financial institutions providing financial records to

State child support enforcement agencies in child support cases.

SUBCHAPTER G—ENFORCEMENT OF SUPPORT ORDERS

Sec. 2361. Internal Revenue Service collection of arrearages.

Sec. 2362. Authority to collect support from Federal employees.

Sec. 2363. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 2364. Voiding of fraudulent transfers.

Sec. 2365. Work requirement for persons owing past-due child support.

Sec. 2366. Definition of support order.

Sec. 2367. Reporting arrearages to credit bureaus.

Sec. 2368. Liens.

Sec. 2369. State law authorizing suspension of licenses.

Sec. 2370. Denial of passports for nonpayment of child support.

Sec. 2371. International support enforcement.

Sec. 2372. Financial institution data matches.

Sec. 2373. Enforcement of orders against paternal or maternal grandparents in

cases of minor parents.

Sec. 2374. Nondischargeability in bankruptcy of certain debts for the support of

a child.

Sec. 2375. Child support enforcement for Indian tribes.
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SUBCHAPTER H—MEDICAL SUPPORT

Sec. 2376. Correction to ERISA definition of medical child support order.

Sec. 2377. Enforcement of orders for health care coverage.

SUBCHAPTER I—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NONRESIDENTIAL PARENTS

Sec. 2381. Grants to States for access and visitation programs.

SUBCHAPTER J—EFFECTIVE DATES AND CONFORMING AMENDMENTS

Sec. 2391. Effective dates and conforming amendments.

CHAPTER 4—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

Sec. 2400. Statements of national policy concerning welfare and immigration.

SUBCHAPTER A—ELIGIBILITY FOR FEDERAL BENEFITS

Sec. 2401. Aliens who are not qualified aliens ineligible for Federal public benefits.

Sec. 2402. Limited eligibility of qualified aliens for certain Federal programs.

Sec. 2403. Five-year limited eligibility of qualified aliens for Federal means-tested public benefit.

Sec. 2404. Notification and information reporting.

SUBCHAPTER B—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS

PROGRAMS

Sec. 2411. Aliens who are not qualified aliens or nonimmigrants ineligible for

State and local public benefits.

Sec. 2412. State authority to limit eligibility of qualified aliens for State public

benefits.

SUBCHAPTER C—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT

Sec. 2421. Federal attribution of sponsor’s income and resources to alien.

Sec. 2422. Authority for States to provide for attribution of sponsors income and

resources to the alien with respect to State programs.

Sec. 2423. Requirements for sponsor’s affidavit of support.

SUBCHAPTER D—GENERAL PROVISIONS

Sec. 2431. Definitions.

Sec. 2432. Verification of eligibility for Federal public benefits.

Sec. 2433. Statutory construction.

Sec. 2434. Communication between State and local government agencies and the

Immigration and Naturalization Service.

Sec. 2435. Qualifying quarters.

SUBCHAPTER E—CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING

Sec. 2441. Conforming amendments relating to assisted housing.

SUBCHAPTER F—EARNED INCOME CREDIT DENIED TO UNAUTHORIZED

EMPLOYEES

Sec. 2451. Earned income credit denied to individuals not authorized to be employed in the United States.
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CHAPTER 5—REFORM OF PUBLIC HOUSING

Sec. 2501. Failure to comply with other welfare and public assistance programs.

Sec. 2502. Fraud under means-tested welfare and public assistance programs.

CHAPTER 6—TECHNICAL AMENDMENTS RELATING TO CHILD PROTECTION

PROGRAMS

Sec. 2601. Extension of enhanced funding for implementation of statewide automated child welfare information systems.

Sec. 2602. Redesignation of section 1123.

Sec. 2603. Kinship care.

CHAPTER 7—CHILD CARE

Sec. 2701. Short title and references.

Sec. 2702. Goals.

Sec. 2703. Authorization of appropriations and entitlement authority.

Sec. 2704. Lead agency.

Sec. 2705. Application and plan.

Sec. 2706. Limitation on State allotments.

Sec. 2707. Activities to improve the quality of child care.

Sec. 2708. Repeal of early childhood development and before- and after-school care

requirement.

Sec. 2709. Administration and enforcement.

Sec. 2710. Payments.

Sec. 2711. Annual report and audits.

Sec. 2712. Report by the Secretary.

Sec. 2713. Allotments.

Sec. 2714. Definitions.

Sec. 2715. Effective date.

CHAPTER 8—MISCELLANEOUS

Sec. 2801. Appropriation by State legislatures.

Sec. 2802. Sanctioning for testing positive for controlled substances.

Sec. 2803. Reduction in block grants to States for social services.

Sec. 2804. Elimination of housing assistance with respect to fugitive felons and

probation and parole violators.

Sec. 2805. Sense of the Senate regarding enterprise zones.

Sec. 2806. Sense of the Senate regarding the inability of the non-custodial parent

to pay child support.

Sec. 2807. Establishing national goals to prevent teenage pregnancies.

Sec. 2808. Sense of the Senate regarding enforcement of statutory rape laws.

Sec. 2809. Provisions to encourage electronic benefit transfer systems.

Sec. 2810. Rules relating to denial of earned income credit on basis of disqualified income.

Sec. 2811. Modification of adjusted gross income definition for earned income

credit.

Sec. 2812. Suspension of inflation adjustments for individuals with no qualifying

children.

Sec. 2813. Refundable credit for adoption expenses.

Sec. 2814. Exclusion of adoption assistance.

Sec. 2815. Withdrawal from IRA for adoption expenses.
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1 CHAPTER 1—BLOCK GRANTS FOR TEM2 PORARY ASSISTANCE FOR NEEDY FAM3 ILIES

4 SEC. 2101. FINDINGS.

5 The Congress makes the following findings:

6 (1) Marriage is the foundation of a successful so7 ciety.

8 (2) Marriage is an essential institution of a suc9 cessful society which promotes the interests of chil10 dren.

11 (3) Promotion of responsible fatherhood and

12 motherhood is integral to successful child rearing and

13 the well-being of children.

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

15 families with children had a child support order es16 tablished and, of that 54 percent, only about one-half

17 received the full amount due. Of the cases enforced

18 through the public child support enforcement system,

19 only 18 percent of the caseload has a collection.

20 (5) The number of individuals receiving aid to

21 families with dependent children (in this section re22 ferred to as ‘‘AFDC’’) has more than tripled since

23 1965. More than two-thirds of these recipients are

24 children. Eighty-nine percent of children receiving
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1 AFDC benefits now live in homes in which no father

2 is present.

3 (A)(i) The average monthly number of chil4 dren receiving AFDC benefits—

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

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

7 (III) was 7,400,000 in 1980; and

8 (IV) was 9,300,000 in 1992.

9 (ii) While the number of children receiving

10 AFDC benefits increased nearly threefold between

11 1965 and 1992, the total number of children in

12 the United States aged 0 to 18 has declined by

13 5.5 percent.

14 (B) The Department of Health and Human

15 Services has estimated that 12,000,000 children

16 will receive AFDC benefits within 10 years.

17 (C) The increase in the number of children

18 receiving public assistance is closely related to

19 the increase in births to unmarried women. Be20 tween 1970 and 1991, the percentage of live

21 births to unmarried women increased nearly

22 threefold, from 10.7 percent to 29.5 percent.

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

24 and births is well documented as follows:
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1 (A) It is estimated that the rate of non2 marital teen pregnancy rose 23 percent from 54

3 pregnancies per 1,000 unmarried teenagers in

4 1976 to 66.7 pregnancies in 1991. The overall

5 rate of nonmarital pregnancy rose 14 percent

6 from 90.8 pregnancies per 1,000 unmarried

7 women in 1980 to 103 in both 1991 and 1992.

8 In contrast, the overall pregnancy rate for mar9 ried couples decreased 7.3 percent between 1980

10 and 1991, from 126.9 pregnancies per 1,000

11 married women in 1980 to 117.6 pregnancies in

12 1991.

13 (B) The total of all out-of-wedlock births be14 tween 1970 and 1991 has risen from 10.7 per15 cent to 29.5 percent and if the current trend con16 tinues, 50 percent of all births by the year 2015

17 will be out-of-wedlock.

18 (7) An effective strategy to combat teenage preg19 nancy must address the issue of male responsibility,

20 including statutory rape culpability and prevention.

21 The increase of teenage pregnancies among the young22 est girls is particularly severe and is linked to preda23 tory sexual practices by men who are significantly

24 older.
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1 (A) It is estimated that in the late 1980’s,

2 the rate for girls age 14 and under giving birth

3 increased 26 percent.

4 (B) Data indicates that at least half of the

5 children born to teenage mothers are fathered by

6 adult men. Available data suggests that almost

7 70 percent of births to teenage girls are fathered

8 by men over age 20.

9 (C) Surveys of teen mothers have revealed

10 that a majority of such mothers have histories of

11 sexual and physical abuse, primarily with older

12 adult men.

13 (8) The negative consequences of an out-of-wed14 lock birth on the mother, the child, the family, and so15 ciety are well documented as follows:

16 (A) Young women 17 and under who give

17 birth outside of marriage are more likely to go

18 on public assistance and to spend more years on

19 welfare once enrolled. These combined effects of

20 ‘‘younger and longer’’ increase total AFDC costs

21 per household by 25 percent to 30 percent for 17-

22 year-olds.

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

24 substantially higher risk of being born at a very

25 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 more

5 likely to have lower cognitive scores, lower edu6 cational aspirations, and a greater likelihood of

7 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 (9) 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). While

18 many parents find themselves, through divorce or

19 tragic circumstances beyond their control, facing the

20 difficult task of raising children alone, nevertheless,

21 the negative consequences of raising children in sin22 gle-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 in25 come 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.

(B) Among single-parent families, nearly 1 4 ⁄2

5 of the mothers who never married received AFDC

while only 1 6 ⁄5 of divorced mothers received

7 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 before

18 finishing high school are more likely to receive

19 welfare assistance for a longer period of time.

20 (G) Between 1985 and 1990, the public cost

21 of births to teenage mothers under the aid to

22 families with dependent children program, the

23 food stamp program, and the medicaid program

24 has been estimated at $120,000,000,000.
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1 (H) The absence of a father in the life of a

2 child has a negative effect on school performance

3 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-par11 ent 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

22 with both parents. In contrast to these incarcer23 ated youth, 73.9 percent of the 62,800,000 chil24 dren in the Nation’s resident population were

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

2 the crisis in our Nation, it is the sense of the Congress

3 that prevention of out-of-wedlock pregnancy and re4 duction in out-of-wedlock birth and protection of teen5 age girls from pregnancy as well as predatory sexual

6 behavior are very important Government interests

7 and the policy contained in part A of title IV of the

8 Social Security Act (as amended by section 2103(a)

9 of this Act) is intended to address the crisis.

10 SEC. 2102. REFERENCE TO SOCIAL SECURITY ACT.

11 Except as otherwise specifically provided, wherever in

12 this chapter an amendment is expressed in terms of an

13 amendment to or repeal of a section or other provision, the

14 reference shall be considered to be made to that section or

15 other provision of the Social Security Act.

16 SEC. 2103. BLOCK GRANTS TO STATES.

17 (a) IN GENERAL.—Part A of title IV (42 U.S.C. 601

18 et seq.) is amended—

19 (1) by striking all that precedes section 418 (as

20 added by section 2803(b)(2) of this Act) and inserting

21 the following:
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1 ‘‘PART A—BLOCK GRANTS TO STATES FOR

2 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

3 ‘‘SEC. 401. PURPOSE.

4 ‘‘(a) IN GENERAL.—The purpose of this part is to in5 crease the flexibility of States in operating a program de6 signed to—

7 ‘‘(1) provide assistance to needy families so that

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

9 the homes of relatives;

10 ‘‘(2) end the dependence of needy parents on gov11 ernment benefits by promoting job preparation, work,

12 and marriage;

13 ‘‘(3) prevent and reduce the incidence of out-of14 wedlock pregnancies and establish annual numerical

15 goals for preventing and reducing the incidence of

16 these pregnancies; and

17 ‘‘(4) encourage the formation and maintenance

18 of two-parent families.

19 ‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall

20 not be interpreted to entitle any individual or family to

21 assistance under any State program funded under this

22 part.

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

24 ‘‘(a) IN GENERAL.—As used in this part, the term ‘eli25 gible State’ means, with respect to a fiscal year, a State

26 that, during the 2-year period immediately preceding the
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1 fiscal year, has submitted to the Secretary a plan that the

2 Secretary has found includes the following:

3 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO4 GRAM.—

5 ‘‘(A) GENERAL PROVISIONS.—A written

6 document that outlines how the State intends to

7 do the following:

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

9 serve all political subdivisions in the State

10 (not necessarily in a uniform manner), that

11 provides assistance to needy families with

12 (or expecting) children and provides parents

13 with job preparation, work, and support

14 services to enable them to leave the program

15 and become self-sufficient.

16 ‘‘(ii) Require a parent or caretaker re17 ceiving assistance under the program to en18 gage in work (as defined by the State) once

19 the State determines the parent or caretaker

20 is ready to engage in work, or once the par21 ent or caretaker has received assistance

22 under the program for 24 months (whether

23 or not consecutive), whichever is earlier.

24 ‘‘(iii) Ensure that parents and care25 takers receiving assistance under the pro-
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1 gram engage in work activities in accord2 ance with section 407.

3 ‘‘(iv) Take such reasonable steps as the

4 State deems necessary to restrict the use

5 and disclosure of information about indi6 viduals and families receiving assistance

7 under the program attributable to funds

8 provided by the Federal Government.

9 ‘‘(v) Establish goals and take action to

10 prevent and reduce the incidence of out-of11 wedlock pregnancies, with special emphasis

12 on teenage pregnancies, and establish nu13 merical goals for reducing the illegitimacy

14 ratio of the State (as defined in section

15 403(a)(2)(B)) for calendar years 1996

16 through 2005.

17 ‘‘(vi) Conduct a program, designed to

18 reach State and local law enforcement offi19 cials, the education system, and relevant

20 counseling services, that provides education

21 and training on the problem of statutory

22 rape so that teenage pregnancy prevention

23 programs may be expanded in scope to in24 clude men.
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1 ‘‘(vii) Determine, on an objective and

2 equitable basis, the needs of and the amount

3 of assistance to be provided to needy fami4 lies, and, except as provided in subpara5 graph (B), treat families of similar needs

6 and circumstances similarly.

7 ‘‘(viii) Grant an opportunity for a fair

8 hearing before the appropriate State agency

9 to any individual to whom assistance under

10 the program has been denied, reduced, or

11 terminated, or whose request for such assist12 ance is not acted on with reasonable

13 promptness.

14 ‘‘(B) SPECIAL PROVISIONS.—

15 ‘‘(i) The document shall indicate

16 whether the State intends to treat families

17 moving into the State from another State

18 differently than other families under the

19 program, and if so, how the State intends

20 to treat such families under the program.

21 ‘‘(ii) The document shall indicate

22 whether the State intends to provide assist23 ance under the program to individuals who

24 are not citizens of the United States, and if
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1 so, shall include an overview of such assist2 ance.

3 ‘‘(iii) Not later than one year after the

4 date of enactment of this Act, unless the

5 State opts out of this provision by notifying

6 the Secretary, a State shall, consistent with

7 the exception provided in section 407(e)(2),

8 require a parent or caretaker receiving as9 sistance under the program who, after re10 ceiving such assistance for two months is

11 not exempt from work requirements and is

12 not engaged in work, as determined under

13 section 407(c), to participate in community

14 service employment, with minimum hours

15 per week and tasks to be determined by the

16 State.

17 ‘‘(2) CERTIFICATION THAT THE STATE WILL OP18 ERATE A CHILD SUPPORT ENFORCEMENT PROGRAM.—

19 A certification by the chief executive officer of the

20 State that, during the fiscal year, the State will oper21 ate a child support enforcement program under the

22 State plan approved under part D.

23 ‘‘(3) CERTIFICATION THAT THE STATE WILL OP24 ERATE A FOSTER CARE AND ADOPTION ASSISTANCE

25 PROGRAM.—A certification by the chief executive offi-
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1 cer of the State that, during the fiscal year, the State

2 will operate a foster care and adoption assistance

3 program under the State plan approved under part

4 E, and that the State will take such actions as are

5 necessary to ensure that children receiving assistance

6 under such part are eligible for medical assistance

7 under the State plan under title XIX (or XV, if appli8 cable).

9 ‘‘(4) CERTIFICATION OF THE ADMINISTRATION

10 OF THE PROGRAM.—A certification by the chief execu11 tive officer of the State specifying which State agency

12 or agencies will administer and supervise the pro13 gram referred to in paragraph (1) for the fiscal year,

14 which shall include assurances that local governments

15 and private sector organizations—

16 ‘‘(A) have been consulted regarding the plan

17 and design of welfare services in the State so

18 that services are provided in a manner appro19 priate to local populations; and

20 ‘‘(B) have had at least 45 days to submit

21 comments on the plan and the design of such

22 services.

23 ‘‘(5) CERTIFICATION THAT THE STATE WILL

24 PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS25 SISTANCE.—A certification by the chief executive offi-
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1 cer of the State that, during the fiscal year, the State

2 will provide each Indian who is a member of an In3 dian tribe in the State that does not have a tribal

4 family assistance plan approved under section 412

5 with equitable access to assistance under the State

6 program funded under this part attributable to funds

7 provided by the Federal Government.

8 ‘‘(6) CERTIFICATION OF STANDARDS AND PROCE9 DURES TO ENSURE AGAINST PROGRAM FRAUD AND

10 ABUSE.—A certification by the chief executive officer

11 of the State that the State has established and is en12 forcing standards and procedures to ensure against

13 program fraud and abuse, including standards and

14 procedures concerning nepotism, conflicts of interest

15 among individuals responsible for the administration

16 and supervision of the State program, kickbacks, and

17 the use of political patronage.

18 ‘‘(7) CERTIFICATION OF STANDARDS AND PROCE19 DURES TO ENSURE THAT THE STATE WILL SCREEN

20 FOR AND IDENTIFY DOMESTIC VIOLENCE.—

21 ‘‘(A) IN GENERAL.—A certification by the

22 chief executive officer of the State that the State

23 has established and is enforcing standards and

24 procedures to—
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1 ‘‘(i) screen and identify individuals re2 ceiving assistance under this part with a

3 history of domestic violence while maintain4 ing the confidentiality of such individuals;

5 ‘‘(ii) refer such individuals to counsel6 ing and supportive services; and

7 ‘‘(iii) waive, pursuant to a determina8 tion of good cause, other program require9 ments such as time limits (for so long as

10 necessary) for individuals receiving assist11 ance, residency requirements, child support

12 cooperation requirements, and family cap

13 provisions, in cases where compliance with

14 such requirements would make it more dif15 ficult for individuals receiving assistance

16 under this part to escape domestic violence

17 or unfairly penalize such individuals who

18 are or have been victimized by such vio19 lence, or individuals who are at risk of fur20 ther domestic violence.

21 ‘‘(B) DOMESTIC VIOLENCE DEFINED.—For

22 purposes of this paragraph, the term ‘domestic

23 violence’ has the same meaning as the term ‘bat24 tered or subjected to extreme cruelty’, as defined

25 in section 408(a)(8)(C)(iii).
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1 ‘‘(8) CERTIFICATION REGARDING ELIGIBILITY OF

2 INDIVIDUAL WHO HAS BEEN BATTERED OR SUB3 JECTED TO EXTREME CRUELTY.—A certification by

4 the chief executive officer of the State that the State

5 has established and is enforcing standards and proce6 dures to ensure that in the case of an individual who

7 has been battered or subjected to extreme cruelty, as

8 determined under section 408(a)(8)(C)(iii), the State

9 will determine the eligibility of such individual for

10 assistance under this part based solely on such indi11 vidual’s income.

12 ‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUM13 MARY.—The State shall make available to the public a sum14 mary of any plan submitted by the State under this 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, for

20 each of fiscal years 1996, 1997, 1998, 1999,

21 2000, and 2001 a grant in an amount equal to

22 the State family assistance grant.

23 ‘‘(B) STATE FAMILY ASSISTANCE GRANT DE24 FINED.—As used in this part, the term ‘State

25 family assistance grant’ means the greatest of—
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‘‘(i) 1 1 ⁄3 of the total amount required to

2 be paid to the State under former section

3 403 (as in effect on September 30, 1995) for

4 fiscal years 1992, 1993, and 1994 (other

5 than with respect to amounts expended by

6 the State for child care under subsection (g)

7 or (i) of former section 402 (as so in ef8 fect));

9 ‘‘(ii)(I) the total amount required to be

10 paid to the State under former section 403

11 for fiscal year 1994 (other than with respect

12 to amounts expended by the State for child

13 care under subsection (g) or (i) of former

14 section 402 (as so in effect)); plus

15 ‘‘(II) an amount equal to 85 percent of

16 the amount (if any) by which the total

17 amount required to be paid to the State

18 under former section 403(a)(5) for emer19 gency assistance for fiscal year 1995 exceeds

20 the total amount required to be paid to the

21 State under former section 403(a)(5) for fis22 cal year 1994, if, during fiscal year 1994 or

23 1995, the Secretary approved under former

24 section 402 an amendment to the former

25 State plan to allow the provision of emer-
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1 gency assistance in the context of family

2 preservation; or

‘‘(iii) 4 3 ⁄3 of the total amount required

4 to be paid to the State under former section

5 403 (as in effect on September 30, 1995) for

6 the 1st 3 quarters of fiscal year 1995 (other

7 than with respect to amounts expended by

8 the State under the State plan approved

9 under part F (as so in effect) or for child

10 care under subsection (g) or (i) of former

11 section 402 (as so in effect)), plus the total

12 amount required to be paid to the State for

13 fiscal year 1995 under former section 403(l)

14 (as so in effect).

15 ‘‘(C) TOTAL AMOUNT REQUIRED TO BE PAID

16 TO THE STATE UNDER FORMER SECTION 403 DE17 FINED.—As used in this part, the term ‘total

18 amount required to be paid to the State under

19 former section 403’ means, with respect to a fis20 cal year—

21 ‘‘(i) in the case of a State to which sec22 tion 1108 does not apply, the sum of—

23 ‘‘(I) the Federal share of mainte24 nance assistance expenditures for the

25 fiscal year, before reduction pursuant
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1 to subparagraph (B) or (C) of section

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

3 30, 1995), as reported by the State on

4 ACF Form 231;

5 ‘‘(II) the Federal share of admin6 istrative expenditures (including ad7 ministrative expenditures for the devel8 opment of management information

9 systems) for the fiscal year, as reported

10 by the State on ACF Form 231;

11 ‘‘(III) the Federal share of emer12 gency assistance expenditures for the

13 fiscal year, as reported by the State on

14 ACF Form 231;

15 ‘‘(IV) the Federal share of expend16 itures for the fiscal year with respect to

17 child care pursuant to subsections (g)

18 and (i) of former section 402 (as in ef19 fect on September 30, 1995), as re20 ported by the State on ACF Form 231;

21 and

22 ‘‘(V) the aggregate amount re23 quired to be paid to the State for the

24 fiscal year with respect to the State

25 program operated under part F (as in
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1 effect on September 30, 1995), as deter2 mined by the Secretary, including ad3 ditional obligations or reductions in

4 obligations made after the close of the

5 fiscal year; and

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

7 section 1108 applies, the lesser of—

8 ‘‘(I) the sum described in clause

9 (i); or

10 ‘‘(II) the total amount certified by

11 the Secretary under former section 403

12 (as in effect during the fiscal year)

13 with respect to the territory.

14 ‘‘(D) INFORMATION TO BE USED IN DETER15 MINING AMOUNTS.—

16 ‘‘(i) FOR FISCAL YEARS 1992 AND

17 1993.—

18 ‘‘(I) In determining the amounts

19 described in subclauses (I) through

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

21 State for each of fiscal years 1992 and

22 1993, the Secretary shall use informa23 tion available as of April 28, 1995.

24 ‘‘(II) In determining the amount

25 described in subparagraph (C)(i)(V)
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1 for any State for each of fiscal years

2 1992 and 1993, the Secretary shall use

3 information available as of January 6,

4 1995.

5 ‘‘(ii) FOR FISCAL YEAR 1994.—In deter6 mining the amounts described in subpara7 graph (C)(i) for any State for fiscal year

8 1994, the Secretary shall use information

9 available as of April 28, 1995.

10 ‘‘(iii) FOR FISCAL YEAR 1995.—

11 ‘‘(I) In determining the amount

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

13 for any State for fiscal year 1995, the

14 Secretary shall use the information

15 which was reported by the States and

16 estimates made by the States with re17 spect to emergency assistance expendi18 tures and was available as of August

19 11, 1995.

20 ‘‘(II) In determining the amounts

21 described in subclauses (I) through

22 (III) of subparagraph (C)(i) for any

23 State for fiscal year 1995, the Sec24 retary shall use information available

25 as of October 2, 1995.
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1 ‘‘(III) In determining the amount

2 described in subparagraph (C)(i)(IV)

3 for any State for fiscal year 1995, the

4 Secretary shall use information avail5 able as of February 28, 1996.

6 ‘‘(IV) In determining the amount

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

8 for any State for fiscal year 1995, the

9 Secretary shall use information avail10 able as of October 5, 1995.

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 1996, 1997, 1998, 1999, 2000, and

15 2001 such sums as are necessary for grants

16 under this paragraph.

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

18 OUT-OF-WEDLOCK BIRTHS.—

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

20 shall be entitled to receive from the Secretary for

21 fiscal year 1998 or any succeeding fiscal year,

22 an illegitimacy reduction bonus if—

23 ‘‘(i) the State demonstrates that the

24 number of out-of-wedlock births that oc25 curred in the State during the most recent
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1 2-year period for which such information is

2 available decreased as compared to the

3 number of such births that occurred during

4 the previous 2-year period; and

5 ‘‘(ii) the rate of induced pregnancy ter6 minations in the State for the fiscal year is

7 less than the rate of induced pregnancy ter8 minations in the State for fiscal year 1995.

9 ‘‘(B) PARTICIPATION IN ILLEGITIMACY

10 BONUS.—A State that demonstrates a decrease

11 under subparagraph (A)(i) shall be eligible for a

12 grant under paragraph (5).

13 ‘‘(II) the rate of induced preg14 nancy terminations in the State for the

15 fiscal year is less than the rate of in16 duced pregnancy terminations in the

17 State for fiscal year 1995.

18 ‘‘(C) ILLEGITIMACY RATIO.—As used in this

19 paragraph, the term ‘illegitimacy ratio’ means,

20 with respect to a State and a fiscal year—

21 ‘‘(i) the number of out-of-wedlock births

22 that occurred in the State during the most

23 recent fiscal year for which such informa24 tion is available; divided by
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1 ‘‘(ii) the number of births that occurred

2 in the State during the most recent fiscal

3 year for which such information is avail4 able.

5 ‘‘(D) DISREGARD OF CHANGES IN DATA DUE

6 TO CHANGED REPORTING METHODS.—For pur7 poses of subparagraph (A), the Secretary shall

8 disregard—

9 ‘‘(i) any difference between the illegit10 imacy ratio of a State for a fiscal year and

11 the illegitimacy ratio of the State the pre12 ceding 2 fiscal years which is attributable

13 to a change in State methods of reporting

14 data used to calculate the illegitimacy ratio;

15 and

16 ‘‘(ii) any difference between the rate of

17 induced pregnancy terminations in a State

18 for a fiscal year and such rate for fiscal

19 year 1995 which is attributable to a change

20 in State methods of reporting data used to

21 calculate such rate.

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

23 in the Treasury of the United States not other24 wise appropriated, there are appropriated for

25 fiscal year 1998 and for each succeeding fiscal
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1 year such sums as are necessary for grants under

2 this paragraph.

3 ‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION

4 INCREASES IN CERTAIN STATES.—

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

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

7 receive from the Secretary—

8 ‘‘(i) for fiscal year 1998 a grant in an

9 amount equal to 2.5 percent of the total

10 amount required to be paid to the State

11 under former section 403 (as in effect dur12 ing fiscal year 1994) for fiscal year 1994;

13 and

14 ‘‘(ii) for each of fiscal years 1999,

15 2000, and 2001, a grant in an amount

16 equal to the sum of—

17 ‘‘(I) the amount (if any) required

18 to be paid to the State under this

19 paragraph for the immediately preced20 ing fiscal year; and

21 ‘‘(II) 2.5 percent of the sum of—

22 ‘‘(aa) the total amount re23 quired to be paid to the State

24 under former section 403 (as in
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1 effect during fiscal year 1994) for

2 fiscal year 1994; and

3 ‘‘(bb) the amount (if any) re4 quired to be paid to the State

5 under this paragraph for the fis6 cal year preceding the fiscal year

7 for which the grant is to be made.

8 ‘‘(B) PRESERVATION OF GRANT WITHOUT

9 INCREASES FOR STATES FAILING TO REMAIN

10 QUALIFYING STATES.—Each State that is not a

11 qualifying State for a fiscal year specified in

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

13 for a prior fiscal year shall, subject to subpara14 graph (F), be entitled to receive from the Sec15 retary for the specified fiscal year, a grant in an

16 amount equal to the amount required to be paid

17 to the State under this paragraph for the most

18 recent fiscal year for which the State was a

19 qualifying State.

20 ‘‘(C) QUALIFYING STATE.—

21 ‘‘(i) IN GENERAL.—For purposes of

22 this paragraph, a State is a qualifying

23 State for a fiscal year if—

24 ‘‘(I) the level of welfare spending

25 per poor person by the State for the
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1 immediately preceding fiscal year is

2 less than the national average level of

3 State welfare spending per poor person

4 for such preceding fiscal year; and

5 ‘‘(II) the population growth rate

6 of the State (as determined by the Bu7 reau of the Census) for the most recent

8 fiscal year for which information is

9 available exceeds the average popu10 lation growth rate for all States (as so

11 determined) for such most recent fiscal

12 year.

13 ‘‘(ii) STATE MUST QUALIFY IN FISCAL

14 YEAR 1998.—Notwithstanding clause (i), a

15 State shall not be a qualifying State for

16 any fiscal year after 1998 by reason of

17 clause (i) if the State is not a qualifying

18 State for fiscal year 1998 by reason of

19 clause (i).

20 ‘‘(iii) CERTAIN STATES DEEMED

21 QUALIFYING STATES.—For purposes of this

22 paragraph, a State is deemed to be a quali23 fying State for fiscal years 1998, 1999,

24 2000, and 2001 if—
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1 ‘‘(I) the level of welfare spending

2 per poor person by the State for fiscal

3 year 1997 is less than 35 percent of the

4 national average level of State welfare

5 spending per poor person for fiscal

6 year 1996; or

7 ‘‘(II) the population of the State

8 increased by more than 10 percent

9 from April 1, 1990 to July 1, 1994, ac10 cording to the population estimates in

11 publication CB94-204 of the Bureau of

12 the Census.

13 ‘‘(D) DEFINITIONS.—As used in this para14 graph:

15 ‘‘(i) LEVEL OF WELFARE SPENDING

16 PER POOR PERSON.—The term ‘level of

17 State welfare spending per poor person’

18 means, with respect to a State and a fiscal

19 year—

20 ‘‘(I) the sum of—

21 ‘‘(aa) the total amount re22 quired to be paid to the State

23 under former section 403 (as in

24 effect during fiscal year 1994) for

25 fiscal year 1994; and
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1 ‘‘(bb) the amount (if any)

2 paid to the State under this para3 graph for the immediately preced4 ing fiscal year; divided by

5 ‘‘(II) the number of individuals,

6 according to the 1990 decennial census,

7 who were residents of the State and

8 whose income was below the poverty

9 line.

10 ‘‘(ii) NATIONAL AVERAGE LEVEL OF

11 STATE WELFARE SPENDING PER POOR PER12 SON.—The term ‘national average level of

13 State welfare spending per poor person’

14 means, with respect to a fiscal year, an

15 amount equal to—

16 ‘‘(I) the total amount required to

17 be paid to the States under former sec18 tion 403 (as in effect during fiscal year

19 1994) for fiscal year 1994; divided by

20 ‘‘(II) the number of individuals,

21 according to the 1990 decennial census,

22 who were residents of any State and

23 whose income was below the poverty

24 line.
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1 ‘‘(iii) STATE.—The term ‘State’ means

2 each of the 50 States of the United States

3 and the District of Columbia.

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

5 in the Treasury of the United States not other6 wise appropriated, there are appropriated for

7 fiscal years 1998, 1999, 2000, and 2001 such

8 sums as are necessary for grants under this

9 paragraph, in a total amount not to exceed

10 $800,000,000.

11 ‘‘(F) GRANTS REDUCED PRO RATA IF INSUF12 FICIENT APPROPRIATIONS.—If the amount ap13 propriated pursuant to this paragraph for a fis14 cal year is less than the total amount of pay15 ments otherwise required to be made under this

16 paragraph for the fiscal year, then the amount

17 otherwise payable to any State for the fiscal year

18 under this paragraph shall be reduced by a per19 centage equal to the amount so appropriated di20 vided by such total amount.

21 ‘‘(G) BUDGET SCORING.—Notwithstanding

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

23 Emergency Deficit Control Act of 1985, the base24 line shall assume that no grant shall be made

25 under this paragraph after fiscal year 2000.
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1 ‘‘(4) BONUS TO REWARD HIGH PERFORMANCE

2 STATES.—

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

4 make a grant pursuant to this paragraph to

5 each State for each bonus year for which the

6 State is a high performing State.

7 ‘‘(B) AMOUNT OF GRANT.—

8 ‘‘(i) IN GENERAL.—Subject to clause

9 (ii) of this subparagraph, the Secretary

10 shall determine the amount of the grant

11 payable under this paragraph to a high

12 performing State for a bonus year, which

13 shall be based on the score assigned to the

14 State under subparagraph (D)(i) for the fis15 cal year that immediately precedes the

16 bonus year.

17 ‘‘(ii) LIMITATION.—The amount pay18 able to a State under this paragraph for a

19 bonus year shall not exceed 5 percent of the

20 State family assistance grant.

21 ‘‘(C) FORMULA FOR MEASURING STATE PER22 FORMANCE.—Not later than 1 year after the date

23 of the enactment of the Personal Responsibility

24 and Work Opportunity Act of 1996, the Sec25 retary, in consultation with the National Gov-
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1 ernors’ Association and the American Public

2 Welfare Association, shall develop a formula for

3 measuring State performance in operating the

4 State program funded under this part so as to

5 achieve the goals set forth in section 401(a). Such

6 formula shall emphasize the extent to which the

7 State increases the number of families that be8 come ineligible for assistance under the State

9 program funded under this part as a result of

10 unsubsidized employment.

11 ‘‘(D) SCORING OF STATE PERFORMANCE;

12 SETTING OF PERFORMANCE THRESHOLDS.—For

13 each bonus year, the Secretary shall—

14 ‘‘(i) use the formula developed under

15 subparagraph (C) to assign a score to each

16 eligible State for the fiscal year that imme17 diately precedes the bonus year; and

18 ‘‘(ii) prescribe a performance threshold

19 in such a manner so as to ensure that—

20 ‘‘(I) the average annual total

21 amount of grants to be made under

22 this paragraph for each bonus year

23 equals the amount specified for such

24 bonus year in subparagraph (E)(ii);

25 and
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1 ‘‘(II) the total amount of grants to

2 be made under this paragraph for all

3 bonus years equals $1,000,000,000.

4 ‘‘(E) DEFINITIONS.—As used in this para5 graph:

6 ‘‘(i) BONUS YEAR.—The term ‘bonus

7 year’ means fiscal years 1999, 2000, 2001,

8 2002, and 2003.

9 ‘‘(ii) THE AMOUNT SPECIFIED FOR

10 SUCH BONUS YEAR.—The term ‘the amount

11 specified for such bonus year’ means the fol12 lowing:

13 ‘‘(I) For fiscal years 1999, 2000,

14 2001, and 2002, $175,000,000.

15 ‘‘(II) For fiscal year 2003,

16 $300,000,000.

17 ‘‘(iii) HIGH PERFORMING STATE.—The

18 term ‘high performing State’ means, with

19 respect a bonus year, an eligible State

20 whose score assigned pursuant to subpara21 graph (D)(i) for the fiscal year immediately

22 preceding the bonus year equals or exceeds

23 the performance threshold prescribed under

24 subparagraph (D)(ii) for such preceding fis25 cal year.
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1 ‘‘(F) APPROPRIATION.—Out of any money

2 in the Treasury of the United States not other3 wise appropriated, there are appropriated for

4 fiscal years 1999 through 2003 $1,000,000,000

5 for grants under this paragraph.

6 ‘‘(5) BONUS TO REWARD DECREASE IN ILLEGIT7 IMACY.—

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

9 make a grant pursuant to this paragraph to

10 each State determined eligible under paragraph

11 (2)(B) for each bonus year for which the State

12 demonstrates a net decrease in out-of-wedlock

13 births.

14 ‘‘(B) AMOUNT OF GRANT.—

15 ‘‘(i) IN GENERAL.—Subject to this sub16 paragraph, the Secretary shall determine

17 the amount of the grant payable under this

18 paragraph to a low illegitimacy State for a

19 bonus year.

20 ‘‘(ii) TOP FIVE STATES.—With respect

21 to States determined eligible under para22 graph (2)(B) for a fiscal year, the Secretary

23 shall determine which five of such States

24 demonstrated the greatest decrease in out-of25 wedlock births under such paragraph for the
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1 period involved. Each of such five States

2 shall receive a grant of equal amount under

3 this paragraph for such fiscal year but such

4 amount shall not exceed $20,000,000 for

5 any single State.

6 ‘‘(iii) LESS THAN FIVE STATES.—With

7 respect to a fiscal year, if the Secretary de8 termines that there are less than five States

9 eligible under paragraph (2)(B) for a fiscal

10 year, the grants under this paragraph shall

11 be awarded to each such State in an equal

12 amount but such amount shall not exceed

13 $25,000,000 for any single State.

14 ‘‘(C) BONUS YEAR.—The term ‘bonus year’

15 means fiscal years 1999, 2000, 2001, 2002, and

16 2003.

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

18 in the Treasury of the United States not other19 wise appropriated, there are appropriated for

20 fiscal years 1999 through 2003, such sums as are

21 necessary for grants under this paragraph.

22 ‘‘(b) CONTINGENCY FUND.—

23 ‘‘(1) ESTABLISHMENT.—There is hereby estab24 lished in the Treasury of the United States a fund

25 which shall be known as the ‘Contingency Fund for
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1 State Welfare Programs’ (in this section referred to as

2 the ‘Fund’).

3 ‘‘(2) DEPOSITS INTO FUND.—Out of any money

4 in the Treasury of the United States not otherwise

5 appropriated, there are appropriated for fiscal years

6 1998, 1999, 2000, and 2001 such sums as are nec7 essary for payment to the Fund in a total amount not

8 to exceed $2,000,000,000.

9 ‘‘(3) GRANTS.—

10 ‘‘(A) PROVISIONAL PAYMENTS.—If an eligi11 ble State submits to the Secretary a request for

12 funds under this paragraph during an eligible

13 month, the Secretary shall, subject to this para14 graph, pay to the State, from amounts appro15 priated pursuant to paragraph (2), an amount

16 equal to the amount of funds so requested.

17 ‘‘(B) PAYMENT PRIORITY.—The Secretary

18 shall make payments under subparagraph (A) in

19 the order in which the Secretary receives requests

20 for such payments.

21 ‘‘(C) LIMITATIONS.—

22 ‘‘(i) MONTHLY PAYMENT TO A

23 STATE.—The total amount paid to a single

24 State under subparagraph (A) during a
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month shall not exceed 1 1 ⁄12 of 20 percent of

2 the State family assistance grant.

3 ‘‘(ii) PAYMENTS TO ALL STATES.—The

4 total amount paid to all States under sub5 paragraph (A) during fiscal years 1998

6 through 2001 shall not exceed the total

7 amount appropriated pursuant to para8 graph (2).

9 ‘‘(4) ANNUAL RECONCILIATION.—Notwithstand10 ing paragraph (3), at the end of each fiscal year, each

11 State shall remit to the Secretary an amount equal

12 to the amount (if any) by which the total amount

13 paid to the State under paragraph (3) during the fis14 cal year exceeds—

15 ‘‘(A) the Federal medical assistance percent16 age for the State for the fiscal year (as defined

17 in section 1905(b), as in effect on September 30,

18 1995) of the amount (if any) by which the ex19 penditures under the State program funded

20 under this part for the fiscal year exceed historic

21 State expenditures (as defined in section

22 409(a)(7)(B)(iii)); multiplied by

‘‘(B) 1 23 ⁄12 times the number of months dur24 ing the fiscal year for which the Secretary makes

25 a payment to the State under this subsection.
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1 ‘‘(5) ELIGIBLE MONTH.—As used in paragraph

2 (3)(A), the term ‘eligible month’ means, with respect

3 to a State, a month in the 2-month period that begins

4 with any month for which the State is a needy State.

5 ‘‘(6) NEEDY STATE.—For purposes of paragraph

6 (5), a State is a needy State for a month if—

7 ‘‘(A) the average rate of—

8 ‘‘(i) total unemployment in such State

9 (seasonally adjusted) for the period consist10 ing of the most recent 3 months for which

11 data for all States are published equals or

12 exceeds 6.5 percent; and

13 ‘‘(ii) total unemployment in such State

14 (seasonally adjusted) for the 3-month period

15 equals or exceeds 110 percent of such aver16 age rate for either (or both) of the cor17 responding 3-month periods ending in the 2

18 preceding calendar years; or

19 ‘‘(B) as determined by the Secretary of Ag20 riculture (in the discretion of the Secretary of

21 Agriculture), the monthly average number of in22 dividuals (as of the last day of each month) par23 ticipating in the food stamp program in the

24 State in the then most recently concluded 3-
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1 month period for which data are available ex2 ceeds by not less than 10 percent the lesser of—

3 ‘‘(i) the monthly average number of in4 dividuals (as of the last day of each month)

5 in the State that would have participated

6 in the food stamp program in the cor7 responding 3-month period in fiscal year

8 1994 if the amendments made by chapter 4

9 of the Personal Responsibility and Work

10 Opportunity Act of 1996 and the amend11 ments made by chapter 1 of subtitle A of

12 title I of the Agricultural Reconciliation Act

13 of 1996 had been in effect throughout fiscal

14 year 1994; or

15 ‘‘(ii) the monthly average number of

16 individuals (as of the last day of each

17 month) in the State that would have par18 ticipated in the food stamp program in the

19 corresponding 3-month period in fiscal year

20 1995 if the amendments made by chapter 4

21 of the Personal Responsibility and Work

22 Opportunity Act of 1996 and the amend23 ments made by chapter 1 of subtitle A of

24 title I of the Agricultural Reconciliation Act
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1 of 1996 had been in effect throughout fiscal

2 year 1995.

3 ‘‘(7) OTHER TERMS DEFINED.—As used in this

4 subsection:

5 ‘‘(A) STATE.—The term ‘State’ means each

6 of the 50 States of the United States and the

7 District of Columbia.

8 ‘‘(B) SECRETARY.—The term ‘Secretary’

9 means the Secretary of the Treasury.

10 ‘‘(8) ANNUAL REPORTS.—The Secretary shall an11 nually report to the Congress on the status of the

12 Fund.

13 ‘‘SEC. 404. USE OF GRANTS.

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

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

16 grant—

17 ‘‘(1) in any manner that is reasonably cal18 culated to accomplish the purpose of this part, includ19 ing to provide low income households with assistance

20 in meeting home heating and cooling costs; or

21 ‘‘(2) in any manner that the State was author22 ized to use amounts received under part A or F, as

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

24 ‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINISTRA25 TIVE PURPOSES.—
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1 ‘‘(1) LIMITATION.—A State to which a grant is

2 made under section 403 shall not expend more than

3 15 percent of the grant for administrative purposes.

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

5 apply to the use of a grant for information technology

6 and computerization needed for tracking or monitor7 ing required by or under this part.

8 ‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMIGRANTS

9 UNDER RULES OF FORMER STATE.—A State operating a

10 program funded under this part may apply to a family

11 the rules (including benefit amounts) of the program funded

12 under this part of another State if the family has moved

13 to the State from the other State and has resided in the

14 State for less than 12 months.

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

16 OTHER PURPOSES.—

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

18 than 30 percent of the amount of the grant made to

19 the State under section 403 for a fiscal year to carry

20 out a State program pursuant to the Child Care and

21 Development Block Grant Act of 1990.

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

23 the State under this part that is used to carry out a

24 State program pursuant to a provision of law speci25 fied or described in paragraph (1) shall not be subject
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1 to the requirements of this part, but shall be subject

2 to the requirements that apply to Federal funds pro3 vided directly under the provision of law to carry out

4 the program.

5 ‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR

6 ASSISTANCE.—A State may reserve amounts paid to the

7 State under this part for any fiscal year for the purpose

8 of providing, without fiscal year limitation, assistance

9 under the State program funded under this part.

10 ‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACE11 MENT PROGRAM.—A State to which a grant is made under

12 section 403 may use the grant to make payments (or pro13 vide job placement vouchers) to State-approved public and

14 private job placement agencies that provide employment

15 placement services to individuals who receive assistance

16 under the State program funded under this part.

17 ‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT

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

19 under section 403 is encouraged to implement an electronic

20 benefit transfer system for providing assistance under the

21 State program funded under this part, and may use the

22 grant for such purpose.

23 ‘‘(h) USE OF FUNDS FOR INDIVIDUAL DEVELOPMENT

24 ACCOUNTS.—
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1 ‘‘(1) IN GENERAL.—A State operating a pro2 gram funded under this part may use amounts re3 ceived under a grant under section 403 to carry out

4 a program to fund individual development accounts

5 (as defined in paragraph (2)) established by individ6 uals eligible for assistance under the State program

7 under this part.

8 ‘‘(2) INDIVIDUAL DEVELOPMENT ACCOUNTS.—

9 ‘‘(A) ESTABLISHMENT.—Under a State pro10 gram carried out under paragraph (1), an indi11 vidual development account may be established

12 by or on behalf of an individual eligible for as13 sistance under the State program operated under

14 this part for the purpose of enabling the individ15 ual to accumulate funds to for a qualified pur16 pose described in subparagraph (B).

17 ‘‘(B) QUALIFIED PURPOSE.—A qualified

18 purpose described in this subparagraph is 1 or

19 more of the following, as provided by the quali20 fied entity providing assistance to the individual

21 under this subsection:

22 ‘‘(i) POSTSECONDARY EDUCATIONAL

23 EXPENSES.—Postsecondary educational ex24 penses paid from an individual develop-
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1 ment account directly to an eligible edu2 cational institution.

3 ‘‘(ii) FIRST-HOME PURCHASE.—Quali4 fied acquisition costs with respect to a

5 qualified principal residence for a qualified

6 first-time homebuyer, if paid from an indi7 vidual development account directly to the

8 persons to whom the amounts are due.

9 ‘‘(iii) BUSINESS CAPITALIZATION.—

10 Amounts paid from an individual develop11 ment account directly to a business capital12 ization account which is established in a

13 federally insured financial institution and

14 is restricted to use solely for qualified busi15 ness capitalization expenses.

16 ‘‘(C) CONTRIBUTIONS TO BE FROM EARNED

17 INCOME.—An individual may only contribute to

18 an individual development account such

19 amounts as are derived from earned income, as

20 defined in section 911(d)(2) of the Internal Reve21 nue Code of 1986.

22 ‘‘(D) WITHDRAWAL OF FUNDS.—The Sec23 retary shall establish such regulations as may be

24 necessary to ensure that funds held in an indi25 vidual development account are not withdrawn
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1 except for 1 or more of the qualified purposes de2 scribed in subparagraph (B).

3 ‘‘(3) REQUIREMENTS.—

4 ‘‘(A) IN GENERAL.—An individual develop5 ment account established under this subsection

6 shall be a trust created or organized in the Unit7 ed States and funded through periodic contribu8 tions by the establishing individual and matched

9 by or through a qualified entity for a qualified

10 purpose (as described in paragraph (2)(B).

11 ‘‘(B) QUALIFIED ENTITY.—For purposes of

12 this subsection, the term ‘qualified entity’ means

13 either—

14 ‘‘(i) a not-for-profit organization de15 scribed in section 501(c)(3) of the Internal

16 Revenue Code of 1986 and exempt from tax17 ation under section 501(a) of such Code; or

18 ‘‘(ii) a State or local government agen19 cy acting in cooperation with an organiza20 tion described in clause (i).

21 ‘‘(4) NO REDUCTION IN BENEFITS.—Notwith22 standing any other provision of Federal law (other

23 than the Internal Revenue Code of 1986) that requires

24 consideration of 1 or more financial circumstances of

25 an individual, for the purpose of determining eligi-
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1 bility to receive, or the amount of, any assistance or

2 benefit authorized by such law to be provided to or for

3 the benefit of such individual, funds (including inter4 est accruing) in an individual development account

5 under this subsection shall be disregarded for such

6 purpose with respect to any period during which such

7 individual maintains or makes contributions into

8 such an account.

9 ‘‘(5) DEFINITIONS.—For purposes of this sub10 section—

11 ‘‘(A) ELIGIBLE EDUCATIONAL INSTITU12 TION.—The term ‘eligible educational institution’

13 means the following:

14 ‘‘(i) An institution described in section

15 481(a)(1) or 1201(a) of the Higher Edu16 cation Act of 1965 (20 U.S.C. 1088(a)(1) or

17 1141(a)), as such sections are in effect on

18 the date of the enactment of this subsection.

19 ‘‘(ii) An area vocational education

20 school (as defined in subparagraph (C) or

21 (D) of section 521(4) of the Carl D. Perkins

22 Vocational and Applied Technology Edu23 cation Act (20 U.S.C. 2471(4))) which is in

24 any State (as defined in section 521(33) of
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1 such Act), as such sections are in effect on

2 the date of the enactment of this subsection.

3 ‘‘(B) POST-SECONDARY EDUCATIONAL EX4 PENSES.—The term ‘post-secondary educational

5 expenses’ means—

6 ‘‘(i) tuition and fees required for the

7 enrollment or attendance of a student at an

8 eligible educational institution, and

9 ‘‘(ii) fees, books, supplies, and equip10 ment required for courses of instruction at

11 an eligible educational institution.

12 ‘‘(C) QUALIFIED ACQUISITION COSTS.—The

13 term ‘qualified acquisition costs’ means the costs

14 of acquiring, constructing, or reconstructing a

15 residence. The term includes any usual or rea16 sonable settlement, financing, or other closing

17 costs.

18 ‘‘(D) QUALIFIED BUSINESS.—The term

19 ‘qualified business’ means any business that does

20 not contravene any law or public policy (as de21 termined by the Secretary).

22 ‘‘(E) QUALIFIED BUSINESS CAPITALIZATION

23 EXPENSES.—The term ‘qualified business cap24 italization expenses’ means qualified expendi-
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1 tures for the capitalization of a qualified busi2 ness pursuant to a qualified plan.

3 ‘‘(F) QUALIFIED EXPENDITURES.—The term

4 ‘qualified expenditures’ means expenditures in5 cluded in a qualified plan, including capital,

6 plant, equipment, working capital, and inven7 tory expenses.

8 ‘‘(G) QUALIFIED FIRST-TIME HOME9 BUYER.—

10 ‘‘(i) IN GENERAL.—The term ‘qualified

11 first-time homebuyer’ means a taxpayer

12 (and, if married, the taxpayer’s spouse) who

13 has no present ownership interest in a prin14 cipal residence during the 3-year period

15 ending on the date of acquisition of the

16 principal residence to which this subsection

17 applies.

18 ‘‘(ii) DATE OF ACQUISITION.—The

19 term ‘date of acquisition’ means the date on

20 which a binding contract to acquire, con21 struct, or reconstruct the principal residence

22 to which this subparagraph applies is en23 tered into.

24 ‘‘(H) QUALIFIED PLAN.—The term ‘quali25 fied plan’ means a business plan which—
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1 ‘‘(i) is approved by a financial institu2 tion, or by a nonprofit loan fund having

3 demonstrated fiduciary integrity,

4 ‘‘(ii) includes a description of services

5 or goods to be sold, a marketing plan, and

6 projected financial statements, and

7 ‘‘(iii) may require the eligible individ8 ual to obtain the assistance of an experi9 enced entrepreneurial advisor.

10 ‘‘(I) QUALIFIED PRINCIPAL RESIDENCE.—

11 The term ‘qualified principal residence’ means a

12 principal residence (within the meaning of sec13 tion 1034 of the Internal Revenue Code of 1986),

14 the qualified acquisition costs of which do not ex15 ceed 100 percent of the average area purchase

16 price applicable to such residence (determined in

17 accordance with paragraphs (2) and (3) of sec18 tion 143(e) of such Code).

19 ‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.

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

21 payable to a State under section 403 in quarterly install22 ments.

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

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

25 the Secretary shall notify the State of the amount of any
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1 reduction determined under section 412(a)(1)(B) with re2 spect to the State.

3 ‘‘(c) COMPUTATION AND CERTIFICATION OF PAYMENTS

4 TO STATES.—

5 ‘‘(1) COMPUTATION.—The Secretary shall esti6 mate the amount to be paid to each eligible State for

7 each quarter under this part, such estimate to be

8 based on a report filed by the State containing an es9 timate by the State of the total sum to be expended

10 by the State in the quarter under the State program

11 funded under this part and such other information as

12 the Secretary may find necessary.

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

14 and Human Services shall certify to the Secretary of

15 the Treasury the amount estimated under paragraph

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

17 the extent of any overpayment or underpayment

18 which the Secretary of Health and Human Services

19 determines was made under this part to the State for

20 any prior quarter and with respect to which adjust21 ment has not been made under this paragraph.

22 ‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi23 cation under subsection (c)(2) with respect to a State, the

24 Secretary of the Treasury shall, through the Fiscal Service

25 of the Department of the Treasury and before audit or set-
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1 tlement by the General Accounting Office, pay to the State,

2 at the time or times fixed by the Secretary of Health and

3 Human Services, the amount so certified.

4 ‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PRO5 GRAMS.

6 ‘‘(a) LOAN AUTHORITY.—

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

8 loans to any loan-eligible State, for a period to matu9 rity of not more than 3 years.

10 ‘‘(2) LOAN-ELIGIBLE STATE.—As used in para11 graph (1), the term ‘loan-eligible State’ means a State

12 against which a penalty has not been imposed under

13 section 409(a)(1).

14 ‘‘(b) RATE OF INTEREST.—The Secretary shall charge

15 and collect interest on any loan made under this section

16 at a rate equal to the current average market yield on out17 standing marketable obligations of the United States with

18 remaining periods to maturity comparable to the period to

19 maturity of the loan.

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

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

22 which grant amounts received by the State under section

23 403(a) may be used, including—

24 ‘‘(1) welfare anti-fraud activities; and
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1 ‘‘(2) the provision of assistance under the State

2 program to Indian families that have moved from the

3 service area of an Indian tribe with a tribal family

4 assistance plan approved under section 412.

5 ‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A

6 STATE.—The cumulative dollar amount of all loans made

7 to a State under this section during fiscal years 1997

8 through 2001 shall not exceed 10 percent of the State family

9 assistance grant.

10 ‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING

11 LOANS.—The total dollar amount of loans outstanding

12 under this section may not exceed $1,700,000,000.

13 ‘‘(f) APPROPRIATION.—Out of any money in the Treas14 ury of the United States not otherwise appropriated, there

15 are appropriated such sums as may be necessary for the

16 cost of loans under this section.

17 ‘‘SEC. 407. MANDATORY WORK REQUIREMENTS.

18 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

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

20 is made under section 403 for a fiscal year shall

21 achieve the minimum participation rate specified in

22 the following table for the fiscal year with respect to

23 all families receiving assistance under the State pro24 gram funded under this part:
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The minimum

participation

‘‘If the fiscal year is: rate is:

1996 .................................................................... 15

1997 .................................................................... 25

1998 .................................................................... 30

1999 .................................................................... 35

2000 .................................................................... 40

2001 .................................................................... 45

2002 and thereafter ........................................... 50.

1 ‘‘(2) 2-PARENT FAMILIES.—A State to which a

2 grant is made under section 403 for a fiscal year

3 shall achieve the minimum participation rate speci4 fied in the following table for the fiscal year with re5 spect to 2-parent families receiving assistance under

6 the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 .................................................................... 50

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

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

1999 and thereafter ........................................... 90.

7 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—

8 ‘‘(1) ALL FAMILIES.—

9 ‘‘(A) AVERAGE MONTHLY RATE.—For pur10 poses of subsection (a)(1), the participation rate

11 for all families of a State for a fiscal year is the

12 average of the participation rates for all families

13 of the State for each month in the fiscal year.

14 ‘‘(B) MONTHLY PARTICIPATION RATES.—

15 The participation rate of a State for all families
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1 of the State for a month, expressed as a percent2 age, is—

3 ‘‘(i) the number of families receiving

4 assistance under the State program funded

5 under this part that include an adult who

6 is engaged in work for the month; divided

7 by

8 ‘‘(ii) the amount by which—

9 ‘‘(I) the number of families receiv10 ing such assistance during the month

11 that include an adult receiving such

12 assistance; exceeds

13 ‘‘(II) the number of families re14 ceiving such assistance that are subject

15 in such month to a penalty described

16 in subsection (e)(1) but have not been

17 subject to such penalty for more than 3

18 months within the preceding 12-month

19 period (whether or not consecutive).

20 ‘‘(2) 2-PARENT FAMILIES.—

21 ‘‘(A) AVERAGE MONTHLY RATE.—For pur22 poses of subsection (a)(2), the participation rate

23 for 2-parent families of a State for a fiscal year

24 is the average of the participation rates for 2-
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1 parent families of the State for each month in

2 the fiscal year.

3 ‘‘(B) MONTHLY PARTICIPATION RATES.—

4 The participation rate of a State for 2-parent

5 families of the State for a month shall be cal6 culated by use of the formula set forth in para7 graph (1)(B), except that in the formula the term

8 ‘number of 2-parent families’ shall be substituted

9 for the term ‘number of families’ each place such

10 latter term appears.

11 ‘‘(3) PRO RATA REDUCTION OF PARTICIPATION

12 RATE DUE TO CASELOAD REDUCTIONS NOT REQUIRED

13 BY FEDERAL LAW.—

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

15 prescribe regulations for reducing the minimum

16 participation rate otherwise required by this sec17 tion for a fiscal year by the number of percent18 age points equal to the number of percentage

19 points (if any) by which—

20 ‘‘(i) the average monthly number of

21 families receiving assistance during the fis22 cal year under the State program funded

23 under this part is less than

24 ‘‘(ii) the average monthly number of

25 families that received aid under the State
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1 plan approved under part A (as in effect on

2 September 30, 1995) during fiscal year

3 1995.

4 The minimum participation rate shall not be re5 duced to the extent that the Secretary determines

6 that the reduction in the number of families re7 ceiving such assistance is required by Federal

8 law.

9 ‘‘(B) ELIGIBILITY CHANGES NOT COUNT10 ED.—The regulations described in subparagraph

11 (A) shall not take into account families that are

12 diverted from a State program funded under this

13 part as a result of differences in eligibility cri14 teria under a State program funded under this

15 part and eligibility criteria under the State pro16 gram operated under the State plan approved

17 under part A (as such plan and such part were

18 in effect on September 30, 1995). Such regula19 tions shall place the burden on the Secretary to

20 prove that such families were diverted as a direct

21 result of differences in such eligibility criteria.

22 ‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS

23 RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY AS24 SISTANCE PLAN.—For purposes of paragraphs (1)(B)

25 and (2)(B), a State may, at its option, include fami-
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1 lies receiving assistance under a tribal family assist2 ance plan approved under section 412.

3 ‘‘(5) STATE OPTION FOR PARTICIPATION RE4 QUIREMENT EXEMPTIONS.—

5 ‘‘(A) IN GENERAL.—For any fiscal year, a

6 State may, at its option, not require an individ7 ual who is a single custodial parent caring for

8 a child who has not attained 12 months of age

9 to engage in work and may disregard such an

10 individual in determining the participation

11 rates under subsection (a).

12 ‘‘(B) LIMITATION.—The exemption de13 scribed in subparagraph (A) may only be ap14 plied to a single custodial parent for a total of

15 12 months (whether or not consecutive).

16 ‘‘(c) ENGAGED IN WORK.—

17 ‘‘(1) ALL FAMILIES.—For purposes of subsection

18 (b)(1)(B)(i), a recipient is engaged in work for a

19 month in a fiscal year if the recipient is participat20 ing in work activities for at least the minimum aver21 age number of hours per week specified in the follow22 ing table during the month, not fewer than 20 hours

23 per week of which are attributable to an activity de24 scribed in paragraph (1), (2), (3), (4), (5), (6), (7),

25 or (8) of subsection (d):
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The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

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

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

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

1999 .................................................................... 25

2000 .................................................................... 30

2001 .................................................................... 30

2002 and thereafter ........................................... 35.

1 ‘‘(2) 2-PARENT FAMILIES.—For purposes of sub2 section (b)(2)(B)(i)—

3 ‘‘(A) an adult is engaged in work for a

4 month in a fiscal year if the adult is making

5 progress in work activities for at least 35 hours

6 per week during the month, not fewer than 30

7 hours per week of which are attributable to an

8 activity described in paragraph (1), (2), (3), (4),

9 (5), (6), (7), or (8) of subsection (d); and

10 ‘‘(B) if the family of such adult receives fed11 erally-funded child care assistance, if the adult’s

12 spouse is making progress in work activities for

13 at least 20 hours per week during the month

14 which are attributable to an activity described in

15 paragraph (1), (2), (3), (4), (5), or (7) of sub16 section (d).

17 ‘‘(3) LIMITATION ON NUMBER OF WEEKS FOR

18 WHICH JOB SEARCH COUNTS AS WORK.—Notwith19 standing paragraphs (1) and (2), an individual shall

20 not be considered to be engaged in work by virtue of
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1 participation in an activity described in subsection

2 (d)(6), after the individual has participated in such

3 an activity for 4 weeks (except if the unemployment

4 rate in the State is above the national average, in

5 which case, 12 weeks) in a fiscal year. An individual

6 shall be considered to be participating in such an ac7 tivity for a week if the individual participates in

8 such an activity at any time during the week.

9 ‘‘(4) LIMITATION ON EDUCATION ACTIVITIES

10 COUNTED AS WORK.—For purposes of determining

11 monthly participation rates under paragraphs

12 (1)(B)(i) and (2)(B)(i) of subsection (b), not more

13 than 30 percent of adults in all families and in 2-

14 parent families determined to be engaged in work in

15 the State for a month may meet the work activity re16 quirement through participation in vocational edu17 cational training.

18 ‘‘(5) SINGLE PARENT WITH CHILD UNDER AGE 6

19 DEEMED TO BE MEETING WORK PARTICIPATION RE20 QUIREMENTS IF PARENT IS ENGAGED IN WORK FOR 20

21 HOURS PER WEEK.—For purposes of determining

22 monthly participation rates under subsection

23 (b)(1)(B)(i), a recipient in a 1-parent family who is

24 the parent of a child who has not attained 6 years

25 of age is deemed to be engaged in work for a month
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1 if the recipient is engaged in work for an average of

2 at least 20 hours per week during the month.

3 ‘‘(6) TEEN HEAD OF HOUSEHOLD WHO MAIN4 TAINS SATISFACTORY SCHOOL ATTENDANCE DEEMED

5 TO BE MEETING WORK PARTICIPATION REQUIRE6 MENTS.—For purposes of determining monthly par7 ticipation rates under subsection (b)(1)(B)(i), a recip8 ient who is a single head of household and has not

9 attained 20 years of age is deemed to be engaged in

10 work for a month in a fiscal year if the recipient—

11 ‘‘(A) maintains satisfactory attendance at

12 secondary school or the equivalent during the

13 month; or

14 ‘‘(B) participates in education directly re15 lated to employment for at least the minimum

16 average number of hours per week specified in

17 the table set forth in paragraph (1).

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

19 section, the term ‘work activities’ means—

20 ‘‘(1) unsubsidized employment;

21 ‘‘(2) subsidized private sector employment;

22 ‘‘(3) subsidized public sector employment;

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

24 with the refurbishing of publicly assisted housing) if

25 sufficient private sector employment is not available;
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1 ‘‘(5) on-the-job training;

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

3 ‘‘(7) community service programs;

4 ‘‘(8) educational training (not to exceed 24

5 months with respect to any individual);

6 ‘‘(9) job skills training directly related to em7 ployment;

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

9 in the case of a recipient who has not attained 20

10 years of age, and has not received a high school di11 ploma or a certificate of high school equivalency; and

12 ‘‘(11) satisfactory attendance at secondary

13 school, in the case of a recipient who—

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

15 and

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

17 household who has not attained 20 years of age.

18 ‘‘(e) PENALTIES AGAINST INDIVIDUALS.—

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), if an adult in a family receiving assistance

21 under the State program funded under this part re22 fuses to engage in work required in accordance with

23 this section, the State shall—

24 ‘‘(A) reduce the amount of assistance other25 wise payable to the family pro rata (or more, at
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1 the option of the State) with respect to any pe2 riod during a month in which the adult so re3 fuses; or

4 ‘‘(B) terminate such assistance,

5 subject to such good cause and other exceptions as the

6 State may establish.

7 ‘‘(2) EXCEPTION.—

8 ‘‘(A) IN GENERAL.—Notwithstanding para9 graph (1), a State may not reduce or terminate

10 assistance under the State program funded under

11 this part based on a refusal of an adult to work

12 if the adult is a single custodial parent caring

13 for a child who has not attained 11 years of age,

14 and the adult proves that the adult has a dem15 onstrated inability (as determined by the State)

16 to obtain needed child care, for 1 or more of the

17 following reasons:

18 ‘‘(i) Unavailability of appropriate

19 child care within a reasonable distance from

20 the individual’s home or work site.

21 ‘‘(ii) Unavailability or unsuitability of

22 informal child care by a relative or under

23 other arrangements.
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1 ‘‘(iii) Unavailability of appropriate

2 and affordable formal child care arrange3 ments.

4 ‘‘(B) INCLUDED IN DETERMINATION OF PAR5 TICIPATION RATES.—A State may not disregard

6 an adult for which the exception described in

7 subparagraph (A) applies from determination of

8 the participation rates under subsection (a).

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

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

11 adult in a family receiving assistance under a State

12 program funded under this part attributable to funds

13 provided by the Federal Government may fill a va14 cant employment position in order to engage in a

15 work activity described in subsection (d).

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

17 work assignment to an adult in a family receiving as18 sistance under a State program funded under this

19 part shall result in—

20 ‘‘(A) the displacement of any currently em21 ployed worker (including any temporary layoffs

22 and any partial displacement of such worker

23 through such matters as a reduction in the hours

24 of nonovertime work, wages, or employment ben25 efits; and
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1 ‘‘(B) the termination of the employment of

2 any regular employee or any other involuntary

3 reduction of an employer’s workforce in order to

4 fill the vacancy so created with an adult de5 scribed in paragraph (1).

6 ‘‘(3) GRIEVANCE PROCEDURE.—A State with a

7 program funded under this part shall establish and

8 maintain a grievance procedure for resolving com9 plaints of alleged violations of the provisions of para10 graph (2) and for providing adequate remedies for

11 any such violations established. The grievance proce12 dure established under this paragraph shall include

13 an opportunity for a hearing.

14 ‘‘(4) NO PREEMPTION.—Nothing in this sub15 section shall preempt or supersede any provision of

16 State or local law that provides greater protection for

17 employees from displacement.

18 ‘‘(g) SENSE OF THE CONGRESS.—It is the sense of the

19 Congress that in complying with this section, each State

20 that operates a program funded under this part is encour21 aged to assign the highest priority to requiring adults in

22 2-parent families and adults in single-parent families that

23 include older preschool or school-age children to be engaged

24 in work activities.
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1 ‘‘(h) SENSE OF THE CONGRESS THAT STATES SHOULD

2 IMPOSE CERTAIN REQUIREMENTS ON NONCUSTODIAL, NON3 SUPPORTING MINOR PARENTS.—It is the sense of the Con4 gress that the States should require noncustodial, non5 supporting parents who have not attained 18 years of age

6 to fulfill community work obligations and attend appro7 priate parenting or money management classes after school.

8 ‘‘(i) ENCOURAGEMENT TO PROVIDE CHILD CARE

9 SERVICES.—An individual participating in a State com10 munity service program may be treated as being engaged

11 in work under subsection (c) if such individual provides

12 child care services to other individuals participating in the

13 community service program in the manner, and for the pe14 riod of time each week, determined appropriate by the

15 State.

16 ‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

17 ‘‘(a) IN GENERAL.—

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

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

20 under section 403 shall not use any part of the grant

21 to provide assistance to a family—

22 ‘‘(A) unless the family includes—

23 ‘‘(i) a minor child who resides with a

24 custodial parent or other adult caretaker

25 relative of the child; or
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1 ‘‘(ii) a pregnant individual; and

2 ‘‘(B) if such family includes an adult who

3 has received assistance under any State program

4 funded under this part attributable to funds pro5 vided by the Federal Government, for 60 months

6 (whether or not consecutive) after the date the

7 State program funded under this part com8 mences (unless an exception described in sub9 paragraph (B) or (C) of paragraph (8) applies).

10 ‘‘(2) REDUCTION OR ELIMINATION OF ASSIST11 ANCE FOR NONCOOPERATION IN ESTABLISHING PA12 TERNITY OR OBTAINING CHILD SUPPORT.—If the

13 agency responsible for administering the State plan

14 approved under part D determines that an individual

15 is not cooperating with the State in establishing pa16 ternity or in establishing, modifying, or enforcing a

17 support order with respect to a child of the individ18 ual, and the individual does not qualify for any good

19 cause or other exception established by the State pur20 suant to section 454(29), then the State—

21 ‘‘(A) shall deduct not less than 25 percent

22 of the assistance that would otherwise be pro23 vided to the family of the individual under the

24 State program funded under this part; and
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1 ‘‘(B) may deny the family any assistance

2 under the State program.

3 ‘‘(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGN4 ING CERTAIN SUPPORT RIGHTS TO THE STATE.—

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

6 grant is made under section 403 shall require, as

7 a condition of providing assistance to a family

8 under the State program funded under this part,

9 that a member of the family assign to the State

10 any rights the family member may have (on be11 half of the family member or of any other person

12 for whom the family member has applied for or

13 is receiving such assistance) to support from any

14 other person, not exceeding the total amount of

15 assistance so provided to the family, which ac16 crue (or have accrued) before the date the family

17 leaves the program, which assignment, on and

18 after the date the family leaves the program,

19 shall not apply with respect to any support

20 (other than support collected pursuant to section

21 464) which accrued before the family received

22 such assistance and which the State has not col23 lected by—
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1 ‘‘(i) September 30, 2000, if the assign2 ment is executed on or after October 1,

3 1997, and before October 1, 2000; or

4 ‘‘(ii) the date the family leaves the pro5 gram, if the assignment is executed on or

6 after October 1, 2000.

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

8 grant is made under section 403 shall not re9 quire, as a condition of providing assistance to

10 any family under the State program funded

11 under this part, that a member of the family as12 sign to the State any rights to support described

13 in subparagraph (A) which accrue after the date

14 the family leaves the program.

15 ‘‘(4) NO ASSISTANCE FOR TEENAGE PARENTS

16 WHO DO NOT ATTEND HIGH SCHOOL OR OTHER

17 EQUIVALENT TRAINING PROGRAM.—A State to which

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

19 part of the grant to provide assistance to an individ20 ual who has not attained 18 years of age, is not mar21 ried, has a minor child at least 12 weeks of age in

22 his or her care, and has not successfully completed a

23 high-school education (or its equivalent), if the indi24 vidual does not participate in—
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1 ‘‘(A) educational activities directed toward

2 the attainment of a high school diploma or its

3 equivalent; or

4 ‘‘(B) an alternative educational or training

5 program that has been approved by the State.

6 ‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS

7 NOT LIVING IN ADULT-SUPERVISED SETTINGS.—

8 ‘‘(A) IN GENERAL.—

9 ‘‘(i) REQUIREMENT.—Except as pro10 vided in subparagraph (B), a State to

11 which a grant is made under section 403

12 shall not use any part of the grant to pro13 vide assistance to an individual described

14 in clause (ii) of this subparagraph if the in15 dividual and the minor child referred to in

16 clause (ii)(II) do not reside in a place of

17 residence maintained by a parent, legal

18 guardian, or other adult relative of the in19 dividual as such parent’s, guardian’s, or

20 adult relative’s own home.

21 ‘‘(ii) INDIVIDUAL DESCRIBED.—For

22 purposes of clause (i), an individual de23 scribed in this clause is an individual

24 who—
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1 ‘‘(I) has not attained 18 years of

2 age; and

3 ‘‘(II) is not married, and has a

4 minor child in his or her care.

5 ‘‘(B) EXCEPTION.—

6 ‘‘(i) PROVISION OF, OR ASSISTANCE IN

7 LOCATING, ADULT-SUPERVISED LIVING AR8 RANGEMENT.—In the case of an individual

9 who is described in clause (ii), the State

10 agency referred to in section 402(a)(4) shall

11 provide, or assist the individual in locating,

12 a second chance home, maternity home, or

13 other appropriate adult-supervised support14 ive living arrangement, taking into consid15 eration the needs and concerns of the indi16 vidual, and thereafter shall require that the

17 individual and the minor child referred to

18 in subparagraph (A)(ii)(II) reside in such

19 living arrangement as a condition of the

20 continued receipt of assistance under the

21 State program funded under this part at22 tributable to funds provided by the Federal

23 Government (or in an alternative appro24 priate arrangement, should circumstances
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1 change and the current arrangement cease

2 to be appropriate).

3 ‘‘(ii) INDIVIDUAL DESCRIBED.—For

4 purposes of clause (i), an individual is de5 scribed in this clause if the individual is de6 scribed in subparagraph (A)(ii), and—

7 ‘‘(I) the individual has no parent,

8 legal guardian or other appropriate

9 adult relative described in subclause

10 (II) of his or her own who is living or

11 whose whereabouts are known;

12 ‘‘(II) no living parent, legal

13 guardian, or other appropriate adult

14 relative, who would otherwise meet ap15 plicable State criteria to act as the in16 dividual’s legal guardian, of such indi17 vidual allows the individual to live in

18 the home of such parent, guardian, or

19 relative;

20 ‘‘(III) the State agency determines

21 that—

22 ‘‘(aa) the individual or the

23 minor child referred to in sub24 paragraph (A)(ii)(II) is being or

25 has been subjected to serious phys-
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1 ical or emotional harm, sexual

2 abuse, or exploitation in the resi3 dence of the individual’s own par4 ent or legal guardian; or

5 ‘‘(bb) substantial evidence ex6 ists of an act or failure to act that

7 presents an imminent or serious

8 harm if the individual and the

9 minor child lived in the same res10 idence with the individual’s own

11 parent or legal guardian; or

12 ‘‘(IV) the State agency otherwise

13 determines that it is in the best inter14 est of the minor child to waive the re15 quirement of subparagraph (A) with

16 respect to the individual or the minor

17 child.

18 ‘‘(iii) SECOND-CHANCE HOME.—For

19 purposes of this subparagraph, the term

20 ‘second-chance home’ means an entity that

21 provides individuals described in clause (ii)

22 with a supportive and supervised living ar23 rangement in which such individuals are

24 required to learn parenting skills, including

25 child development, family budgeting, health
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1 and nutrition, and other skills to promote

2 their long-term economic independence and

3 the well-being of their children.

4 ‘‘(6) NO MEDICAL SERVICES.—

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

6 subparagraph (B), a State to which a grant is

7 made under section 403 shall not use any part

8 of the grant to provide medical services.

9 ‘‘(B) EXCEPTION FOR FAMILY PLANNING

10 SERVICES.—As used in subparagraph (A), the

11 term ‘medical services’ does not include family

12 planning services.

13 ‘‘(7) SANCTION WELFARE RECIPIENTS FOR FAIL14 ING TO ENSURE THAT MINOR DEPENDENT CHILDREN

15 ATTEND SCHOOL.—

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

17 grant is made under section 403 shall not be

18 prohibited from sanctioning a family that in19 cludes an adult who has received assistance

20 under any State program funded under this part

21 attributable to funds provided by the Federal

22 Government or under the food stamp program,

23 as defined in section 3(h) of the Food Stamp Act

24 of 1977, if such adult fails to ensure that the

25 minor dependent children of such adult attend
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1 school as required by the law of the State in

2 which the minor children reside.

3 ‘‘(8) DENIAL OF ASSISTANCE FOR 10 YEARS TO A

4 PERSON FOUND TO HAVE FRAUDULENTLY MISREPRE5 SENTED RESIDENCE IN ORDER TO OBTAIN ASSIST6 ANCE IN 2 OR MORE STATES.—A State to which a

7 grant is made under section 403 shall not use any

8 part of the grant to provide cash assistance to an in9 dividual during the 10-year period that begins on the

10 date the individual is convicted in Federal or State

11 court of having made a fraudulent statement or rep12 resentation with respect to the place of residence of

13 the individual in order to receive assistance simulta14 neously from 2 or more States under programs that

15 are funded under this title, title XV or XIX, or the

16 Food Stamp Act of 1977, or benefits in 2 or more

17 States under the supplemental security income pro18 gram under title XVI. The preceding sentence shall

19 not apply with respect to a conviction of an individ20 ual, for any month beginning after the President of

21 the United States grants a pardon with respect to the

22 conduct which was the subject of the conviction.

23 ‘‘(9) DENIAL OF ASSISTANCE FOR FUGITIVE FEL24 ONS AND PROBATION AND PAROLE VIOLATORS.—
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1 ‘‘(A) IN GENERAL.—A State to which a

2 grant is made under section 403 shall not use

3 any part of the grant to provide assistance to

4 any individual who is—

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

6 custody or confinement after conviction,

7 under the laws of the place from which the

8 individual flees, for a crime, or an attempt

9 to commit a crime, which is a felony under

10 the laws of the place from which the indi11 vidual flees, or which, in the case of the

12 State of New Jersey, is a high misdemeanor

13 under the laws of such State; or

14 ‘‘(ii) violating a condition of probation

15 or parole imposed under Federal or State

16 law.

17 The preceding sentence shall not apply with re18 spect to conduct of an individual, for any month

19 beginning after the President of the United

20 States grants a pardon with respect to the con21 duct.

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 of
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1 information about applicants or recipients of as2 sistance under the State program funded under

3 this part, the safeguards shall not prevent the

4 State agency administering the program from

5 furnishing a Federal, State, or local law enforce6 ment officer, upon the request of the officer, with

7 the current address of any recipient if the officer

8 furnishes the agency with the name of the recipi9 ent and notifies the agency that—

10 ‘‘(i) the recipient—

11 ‘‘(I) is described in subparagraph

12 (A); or

13 ‘‘(II) has information that is nec14 essary for the officer to conduct the of15 ficial duties of the officer; and

16 ‘‘(ii) the location or apprehension of

17 the recipient is within such official duties.

18 ‘‘(10) DENIAL OF ASSISTANCE FOR MINOR CHIL19 DREN WHO ARE ABSENT FROM THE HOME FOR A SIG20 NIFICANT PERIOD.—

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

22 grant is made under section 403 shall not use

23 any part of the grant to provide assistance for

24 a minor child who has been, or is expected by a

25 parent (or other caretaker relative) of the child
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1 to be, absent from the home for a period of 45

2 consecutive days or, at the option of the State,

3 such period of not less than 30 and not more

4 than 180 consecutive days as the State may pro5 vide for in the State plan submitted pursuant to

6 section 402.

7 ‘‘(B) STATE AUTHORITY TO ESTABLISH

8 GOOD CAUSE EXCEPTIONS.—The State may es9 tablish such good cause exceptions to subpara10 graph (A) as the State considers appropriate if

11 such exceptions are provided for in the State

12 plan submitted pursuant to section 402.

13 ‘‘(C) DENIAL OF ASSISTANCE FOR RELATIVE

14 WHO FAILS TO NOTIFY STATE AGENCY OF AB15 SENCE OF CHILD.—A State to which a grant is

16 made under section 403 shall not use any part

17 of the grant to provide assistance for an individ18 ual who is a parent (or other caretaker relative)

19 of a minor child and who fails to notify the

20 agency administering the State program funded

21 under this part of the absence of the minor child

22 from the home for the period specified in or pro23 vided for pursuant to subparagraph (A), by the

24 end of the 5-day period that begins with the date

25 that it becomes clear to the parent (or relative)
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1 that the minor child will be absent for such pe2 riod so specified or provided for.

3 ‘‘(11) ASSURING MEDICAID COVERAGE FOR LOW4 INCOME FAMILIES.—

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

6 other provision of this Act, subject to the succeed7 ing provisions of this paragraph, with respect to

8 a State any reference in title XIX (or other pro9 vision of law in relation to the operation of such

10 title) to a provision of this part, or a State plan

11 under this part (or a provision of such a plan),

12 including standards and methodologies for deter13 mining income and resources under this part or

14 such plan, shall be considered a reference to such

15 a provision or plan as in effect as of July 1,

16 1996, with respect to the State.

17 ‘‘(B) CONSTRUCTIONS.—

18 ‘‘(i) In applying section 1925(a)(1),

19 the reference to ‘section 402(a)(8)(B)(ii)(II)’

20 is deemed a reference to a corresponding

21 earning disregard rule (if any) established

22 under a State program funded under this

23 part (as in effect on or after October 1,

24 1996).
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1 ‘‘(ii) The provisions of former section

2 406(h) (as in effect on July 1, 1996) shall

3 apply, in relation to title XIX, with respect

4 to individuals who receive assistance under

5 a State program funded under this part (as

6 in effect on or after October 1, 1996) and

7 are eligible for medical assistance under

8 title XIX or who are described in subpara9 graph (C)(i) in the same manner as they

10 apply as of July 1, 1996, with respect to in11 dividuals who become ineligible for aid to

12 families with dependent children as a result

13 (wholly or partly) of the collection or in14 creased collection of child or spousal sup15 port under part D of this title.

16 ‘‘(iii) With respect to the reference in

17 section 1902(a)(5) to a State plan approved

18 under this part, a State may treat such ref19 erence as a reference either to a State pro20 gram funded under this part (as in effect on

21 or after October 1, 1996) or to the State

22 plan under title XIX.

23 ‘‘(C) ELIGIBILITY CRITERIA.—

24 ‘‘(i) IN GENERAL.—For purposes of

25 title XIX, subject to clause (ii), in determin-
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1 ing eligibility for medical assistance under

2 such title, an individual shall be treated as

3 receiving aid or assistance under a State

4 plan approved under this part (and shall be

5 treated as meeting the income and resource

6 standards under this part) only if the indi7 vidual meets—

8 ‘‘(I) the income and resource

9 standards for determining eligibility

10 under such plan; and

11 ‘‘(II) the eligibility requirements

12 of such plan under subsections (a)

13 through (c) of former section 406 and

14 former section 407(a),

15 as in effect as of July 1, 1996. Subject to

16 clause (ii)(II), the income and resource

17 methodologies under such plan as of such

18 date shall be used in the determination of

19 whether any individual meets income and

20 resource standards under such plan.

21 ‘‘(ii) STATE OPTION.—For purposes of

22 applying this paragraph, a State may—

23 ‘‘(I) lower its income standards

24 applicable with respect to this part,

25 but not below the income standards ap-
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1 plicable under its State plan under

2 this part on May 1, 1988; and

3 ‘‘(II) use income and resource

4 standards or methodologies that are

5 less restrictive than the standards or

6 methodologies used under the State

7 plan under this part as of July 1,

8 1996.

9 ‘‘(iii) TRANSITIONAL COVERAGE.—For

10 purposes of section 1925, an individual who

11 is receiving assistance under the State pro12 gram funded under this part (as in effect on

13 or after October 1, 1996) and is eligible for

14 medical assistance under title XIX shall be

15 treated as an individual receiving aid or

16 assistance pursuant to a State plan ap17 proved under this part (as in effect as of

18 July 1, 1996) (and thereby eligible for con19 tinuation of medical assistance under such

20 section 1925).

21 ‘‘(D) WAIVERS.—In the case of a waiver of

22 a provision of this part in effect with respect to

23 a State as of July 1, 1996, if the waiver affects

24 eligibility of individuals for medical assistance

25 under title XIX, such waiver may (but need not)
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1 continue to be applied, at the option of the State,

2 in relation to such title after the date the waiver

3 would otherwise expire. If a State elects not to

4 continue to apply such a waiver, then, after the

5 date of the expiration of the waiver, subpara6 graphs (A), (B), and (C) shall be applied as if

7 any provisions so waived had not been waived.

8 ‘‘(E) STATE OPTION TO USE 1 APPLICATION

9 FORM.—Nothing in this paragraph, this part, or

10 title XIX, shall be construed as preventing a

11 State from providing for the same application

12 form for assistance under a State program fund13 ed under this part (on or after October 1, 1996)

14 and for medical assistance under title XIX.

15 ‘‘(F) REQUIREMENT FOR RECEIPT OF

16 FUNDS.—A State to which a grant is made

17 under section 403 shall take such action as may

18 be necessary to ensure that the provisions of this

19 paragraph are carried out: Provided, That the

20 State is otherwise participating in title XIX of

21 this Act.

22 ‘‘(b) ALIENS.—For special rules relating to the treat23 ment of aliens, see section 2402 of the Personal Responsibil24 ity and Work Opportunity Act of 1996.
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1 ‘‘(c) NONDISCRIMINATION PROVISIONS.—Any program

2 or activity that receives funds under this part shall be sub3 ject to enforcement authorized under the following provi4 sions of law:

5 ‘‘(1) The Age Discrimination Act of 1975 (42

6 U.S.C. 6101 et seq.).

7 ‘‘(2) Section 504 of the Rehabilitation Act of

8 1973 (29 U.S.C. 794).

9 ‘‘(3) The Americans with Disabilities Act of

10 1990 (42 U.S.C. 12101 et seq.).

11 ‘‘(4) Title VI of the Civil Rights Act of 1964 (42

12 U.S.C. 2000d et seq.).

13 ‘‘(d) STATE REQUIRED TO ENTER INTO A PERSONAL

14 RESPONSIBILITY AGREEMENT WITH EACH FAMILY RE15 CEIVING ASSISTANCE.—

16 ‘‘(1) IN GENERAL.—Each State to which a grant

17 is made under section 403 shall require each family

18 receiving assistance under the State program funded

19 under this part to enter into a personal responsibility

20 agreement (as developed by the State) with the State.

21 ‘‘(2) PERSONAL RESPONSIBILITY AGREEMENT.—

22 For purposes of this subsection, the term ‘personal re23 sponsibility agreement’ means a binding contract be24 tween the State and each family receiving assistance
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1 under the State program funded under this part

2 that—

3 ‘‘(A) contains a statement that public as4 sistance is not intended to be a way of life, but

5 is intended as temporary assistance to help the

6 family achieve self-sufficiency and personal inde7 pendence;

8 ‘‘(B) outlines the steps each family and the

9 State will take to get the family off of welfare

10 and to become self-sufficient, including an em11 ployment goal for the individual and a plan for

12 promptly moving the individual into paid em13 ployment;

14 ‘‘(C) specifies a negotiated time-limited pe15 riod of eligibility for receipt of assistance that is

16 consistent with unique family circumstances and

17 is based on a reasonable plan to facilitate the

18 transition of the family to self-sufficiency;

19 ‘‘(D) provides for the imposition of sanc20 tions if the individual refuses to sign the agree21 ment or does not comply with the terms of the

22 agreement, which may include loss or reduction

23 of cash benefits;
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1 ‘‘(E) provides that the contract shall be in2 valid if the State agency fails to comply with the

3 contract; and

4 ‘‘(F) provides that the individual agrees not

5 to abuse illegal drugs or other substances that

6 would interfere with the ability of the individual

7 to become self-sufficient, or provide for a referral

8 for substance abuse treatment if necessary to in9 crease the employability of the individual.

10 ‘‘(3) ASSESSMENT.—The State agency shall pro11 vide, through a case manager, an initial and thor12 ough assessment of the skills, prior work experience,

13 and employability of each parent for use in develop14 ing and negotiating a personal responsibility con15 tract.

16 ‘‘(4) DISPUTE RESOLUTION.—The State agency

17 shall establish a dispute resolution procedure for dis18 putes related to participation in the personal respon19 sibility contract that provides the opportunity for a

20 hearing.

21 ‘‘SEC. 409. PENALTIES.

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

23 ‘‘(1) USE OF GRANT IN VIOLATION OF THIS

24 PART.—
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1 ‘‘(A) GENERAL PENALTY.—If an audit con2 ducted under chapter 75 of title 31, United

3 States Code, finds that an amount paid to a

4 State under section 403 for a fiscal year has

5 been used in violation of this part, the Secretary

6 shall reduce the grant payable to the State under

7 section 403(a)(1) for the immediately succeeding

8 fiscal year quarter by the amount so used.

9 ‘‘(B) ENHANCED PENALTY FOR INTEN10 TIONAL VIOLATIONS.—If the State does not prove

11 to the satisfaction of the Secretary that the State

12 did not intend to use the amount in violation of

13 this part, the Secretary shall further reduce the

14 grant payable to the State under section

15 403(a)(1) for the immediately succeeding fiscal

16 year quarter by an amount equal to 5 percent of

17 the State family assistance grant.

18 ‘‘(2) FAILURE TO SUBMIT REQUIRED REPORT.—

19 ‘‘(A) IN GENERAL.—If the Secretary deter20 mines that a State has not, within 1 month after

21 the end of a fiscal quarter, submitted the report

22 required by section 411(a) for the quarter, the

23 Secretary shall reduce the grant payable to the

24 State under section 403(a)(1) for the imme25 diately succeeding fiscal year by an amount
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1 equal to 4 percent of the State family assistance

2 grant.

3 ‘‘(B) RESCISSION OF PENALTY.—The Sec4 retary shall rescind a penalty imposed on a

5 State under subparagraph (A) with respect to a

6 report if the State submits the report before the

7 end of the fiscal quarter that immediately suc8 ceeds the fiscal quarter for which the report was

9 required.

10 ‘‘(3) FAILURE TO SATISFY MINIMUM PARTICIPA11 TION RATES.—

12 ‘‘(A) IN GENERAL.—If the Secretary deter13 mines that a State to which a grant is made

14 under section 403 for a fiscal year has failed to

15 comply with section 407(a) for the fiscal year,

16 the Secretary shall reduce the grant payable to

17 the State under section 403(a)(1) for the imme18 diately succeeding fiscal year by an amount

19 equal to not more than 5 percent of the State

20 family assistance grant.

21 ‘‘(B) PENALTY BASED ON SEVERITY OF

22 FAILURE.—The Secretary shall impose reduc23 tions under subparagraph (A) based on the de24 gree of noncompliance.
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HR 3734 EAS

1 ‘‘(C) ADDITIONAL PENALTY FOR CONSECU2 TIVE NONCOMPLIANCE.—Notwithstanding the

3 limitation described in subparagraph (A), the

4 Secretary shall reduce the grant payable to the

5 State under section 403(a)(1) for a fiscal year,

6 in addition to the reduction imposed under sub7 paragraph (A), by an amount equal to 5 percent

8 of the State family assistance grant, if the Sec9 retary determines that the State failed to comply

10 with section 407(a) for 2 or more consecutive

11 preceding fiscal years.

12 ‘‘(4) FAILURE TO PARTICIPATE IN THE INCOME

13 AND ELIGIBILITY VERIFICATION SYSTEM.—If the Sec14 retary determines that a State program funded under

15 this part is not participating during a fiscal year in

16 the income and eligibility verification system required

17 by section 1137, the Secretary shall reduce the grant

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

19 immediately succeeding fiscal year by an amount

20 equal to not more than 2 percent of the State family

21 assistance grant.

22 ‘‘(5) FAILURE TO COMPLY WITH PATERNITY ES23 TABLISHMENT AND CHILD SUPPORT ENFORCEMENT

24 REQUIREMENTS UNDER PART D.—Notwithstanding

25 any other provision of this Act, if the Secretary deter-
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HR 3734 EAS

1 mines that the State agency that administers a pro2 gram funded under this part does not enforce the pen3 alties requested by the agency administering part D

4 against recipients of assistance under the State pro5 gram who fail to cooperate in establishing paternity

6 or in establishing, modifying, or enforcing a child

7 support order in accordance with such part and who

8 do not qualify for any good cause or other exception

9 established by the State under section 454(29), the

10 Secretary shall reduce the grant payable to the State

11 under section 403(a)(1) for the immediately succeed12 ing fiscal year (without regard to this section) by not

13 more than 5 percent.

14 ‘‘(6) FAILURE TO TIMELY REPAY A FEDERAL

15 LOAN FUND FOR STATE WELFARE PROGRAMS.—If the

16 Secretary determines that a State has failed to repay

17 any amount borrowed from the Federal Loan Fund

18 for State Welfare Programs established under section

19 406 within the period of maturity applicable to the

20 loan, plus any interest owed on the loan, the Sec21 retary shall reduce the grant payable to the State

22 under section 403(a)(1) for the immediately succeed23 ing fiscal year quarter (without regard to this sec24 tion) by the outstanding loan amount, plus the inter25 est owed on the outstanding amount. The Secretary
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1 shall not forgive any outstanding loan amount or in2 terest owed on the outstanding amount.

3 ‘‘(7) FAILURE OF ANY STATE TO MAINTAIN CER4 TAIN LEVEL OF HISTORIC EFFORT.—

5 ‘‘(A) IN GENERAL.—The Secretary shall re6 duce the grant payable to the State under section

7 403(a)(1) for fiscal year 1998, 1999, 2000, 2001,

8 or 2002 by the amount (if any) by which quali9 fied State expenditures for the then immediately

10 preceding fiscal year are less than the applicable

11 percentage of historic State expenditures with re12 spect to such preceding fiscal year.

13 ‘‘(B) DEFINITIONS.—As used in this para14 graph:

15 ‘‘(i) QUALIFIED STATE EXPENDI16 TURES.—

17 ‘‘(I) IN GENERAL.—The term

18 ‘qualified State expenditures’ means,

19 with respect to a State and a fiscal

20 year, the total expenditures by the

21 State during the fiscal year, under all

22 State programs, for any of the follow23 ing with respect to eligible families:

24 ‘‘(aa) Cash assistance.

25 ‘‘(bb) Child care assistance.
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HR 3734 EAS

1 ‘‘(cc) Educational activities

2 designed to increase self-suffi3 ciency, job training, and work, ex4 cluding any expenditure for pub5 lic education in the State except

6 expenditures which involve the

7 provision of services or assistance

8 to a member of an eligible family

9 which is not generally available to

10 persons who are not members of

11 an eligible family.

12 ‘‘(dd) Administrative costs in

13 connection with the matters de14 scribed in items (aa), (bb), (cc),

15 and (ee), but only to the extent

16 that such costs do not exceed 15

17 percent of the total amount of

18 qualified State expenditures for

19 the fiscal year.

20 ‘‘(ee) Any other use of funds

21 allowable under section 404(a)(1).

22 ‘‘(II) EXCLUSION OF TRANSFERS

23 FROM OTHER STATE AND LOCAL PRO24 GRAMS.—Such term does not include

25 expenditures under any State or local
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HR 3734 EAS

1 program during a fiscal year, except to

2 the extent that—

3 ‘‘(aa) such expenditures ex4 ceed the amount expended under

5 the State or local program in the

6 fiscal year most recently ending

7 before the date of the enactment of

8 the Personal Responsibility and

9 Work Opportunity Act of 1996; or

10 ‘‘(bb) the State is entitled to

11 a payment under former section

12 403 (as in effect immediately be13 fore such date of enactment) with

14 respect to such expenditures.

15 ‘‘(III) ELIGIBLE FAMILIES.—As

16 used in subclause (I), the term ‘eligible

17 families’ means families eligible for as18 sistance under the State program fund19 ed under this part, and families that

20 would be eligible for such assistance

21 but for the application of section

22 408(a)(8) of this Act or section 2402 of

23 the Personal Responsibility and Work

24 Opportunity Act of 1996.
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HR 3734 EAS

1 ‘‘(ii) APPLICABLE PERCENTAGE.—The

2 term ‘applicable percentage’ means for fiscal

3 years 1997 through 2001, 80 percent re4 duced (if appropriate) in accordance with

5 subparagraph (C)(ii).

6 ‘‘(iii) HISTORIC STATE EXPENDI7 TURES.—The term ‘historic State expendi8 tures’ means, with respect to a State, the

9 lesser of—

10 ‘‘(I) the expenditures by the State

11 under parts A and F (as in effect dur12 ing fiscal year 1994) for fiscal year

13 1994; or

14 ‘‘(II) the amount which bears the

15 same ratio to the amount described in

16 subclause (I) as—

17 ‘‘(aa) the State family assist18 ance grant, plus the total amount

19 required to be paid to the State

20 under former section 403 for fiscal

21 year 1994 with respect to amounts

22 expended by the State for child

23 care under subsection (g) or (i) of

24 section 402 (as in effect during

25 fiscal year 1994); bears to
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HR 3734 EAS

1 ‘‘(bb) the total amount re2 quired to be paid to the State

3 under former section 403 (as in

4 effect during fiscal year 1994) for

5 fiscal year 1994.

6 Such term does not include any expendi7 tures under the State plan approved under

8 part A (as so in effect) on behalf of individ9 uals covered by a tribal family assistance

10 plan approved under section 412, as deter11 mined by the Secretary.

12 ‘‘(iv) EXPENDITURES BY THE STATE.—

13 The term ‘expenditures by the State’ does

14 not include—

15 ‘‘(I) any expenditures from

16 amounts made available by the Federal

17 Government;

18 ‘‘(II) State funds expended for the

19 medicaid program under title XV or

20 XIX; or

21 ‘‘(III) any State funds which are

22 used to match Federal funds or are ex23 pended as a condition of receiving Fed24 eral funds under Federal programs

25 other than under this part.
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HR 3734 EAS

1 ‘‘(C) APPLICABLE PERCENTAGE REDUCED

2 FOR HIGH PERFORMANCE STATES.—

3 ‘‘(i) DETERMINATION OF HIGH PER4 FORMANCE STATES.—The Secretary shall

5 use the formula developed under section

6 403(a)(4)(C) to assign a score to each eligi7 ble State that represents the performance of

8 the State program funded under this part

9 for each fiscal year, and shall prescribe a

10 performance threshold which the Secretary

11 shall use to determine whether to reduce the

12 applicable percentage with respect to any el13 igible State for a fiscal year.

14 ‘‘(ii) REDUCTION PROPORTIONAL TO

15 PERFORMANCE.—The Secretary shall reduce

16 the applicable percentage for a fiscal year

17 with respect to each eligible State by an

18 amount which is directly proportional to

19 the amount (if any) by which the score as20 signed to the State under clause (i) for the

21 immediately preceding fiscal year exceeds

22 the performance threshold prescribed under

23 clause (i) for such preceding fiscal year,

24 subject to clause (iii).
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HR 3734 EAS

1 ‘‘(iii) LIMITATION ON REDUCTION.—

2 The applicable percentage for a fiscal year

3 with respect to a State may not be reduced

4 by more than 8 percentage points under this

5 subparagraph.

6 ‘‘(8) SUBSTANTIAL NONCOMPLIANCE OF STATE

7 CHILD SUPPORT ENFORCEMENT PROGRAM WITH RE8 QUIREMENTS OF PART D.—

9 ‘‘(A) IN GENERAL.—If a State program op10 erated under part D is found as a result of a re11 view conducted under section 452(a)(4) not to

12 have complied substantially with the require13 ments of such part for any quarter, and the Sec14 retary determines that the program is not com15 plying substantially with such requirements at

16 the time the finding is made, the Secretary shall

17 reduce the grant payable to the State under sec18 tion 403(a)(1) for the quarter and each subse19 quent quarter that ends before the 1st quarter

20 throughout which the program is found to be in

21 substantial compliance with such requirements

22 by—

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

24 percent;
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1 ‘‘(ii) not less than 2 nor more than 3

2 percent, if the finding is the 2nd consecutive

3 such finding made as a result of such a re4 view; or

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

6 percent, if the finding is the 3rd or a subse7 quent consecutive such finding made as a

8 result of such a review.

9 ‘‘(B) DISREGARD OF NONCOMPLIANCE

10 WHICH IS OF A TECHNICAL NATURE.—For pur11 poses of subparagraph (A) and section 452(a)(4),

12 a State which is not in full compliance with the

13 requirements of this part shall be determined to

14 be in substantial compliance with such require15 ments only if the Secretary determines that any

16 noncompliance with such requirements is of a

17 technical nature which does not adversely affect

18 the performance of the State’s program operated

19 under part D.

20 ‘‘(9) FAILURE OF STATE RECEIVING AMOUNTS

21 FROM CONTINGENCY FUND TO MAINTAIN 100 PERCENT

22 OF HISTORIC EFFORT.—If, at the end of any fiscal

23 year during which amounts from the Contingency

24 Fund for State Welfare Programs have been paid to

25 a State, the Secretary finds that the expenditures
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1 under the State program funded under this part for

2 the fiscal year are less than 100 percent of historic

3 State expenditures (as defined in paragraph

4 (7)(B)(iii) of this subsection), the Secretary shall re5 duce the grant payable to the State under section

6 403(a)(1) for the immediately succeeding fiscal year

7 by the total of the amounts so paid to the State.

8 ‘‘(10) FAILURE TO COMPLY WITH PROVISIONS OF

9 THIS PART OR THE STATE PLAN.—If, after reasonable

10 notice and opportunity for hearing, the Secretary de11 termines that during a fiscal year a State has not

12 substantially complied with any provision of this

13 part or of the State plan, the Secretary shall, if a pre14 ceding paragraph of this subsection does not apply to

15 such noncompliance, reduce the grant payable to the

16 State under section 403(a)(1) for the immediately

17 succeeding fiscal year by an amount equal to not

18 more than 5 percent of the State family assistance

19 grant, and shall continue to impose such reduction

20 during each succeeding fiscal year until the Secretary

21 determines that the State no longer is in noncompli22 ance with such provision.

23 ‘‘(11) FAILURE TO COMPLY WITH 5-YEAR LIMIT

24 ON ASSISTANCE.—If the Secretary determines that

25 during a fiscal year a State has not complied with
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HR 3734 EAS

1 the provisions of section 408(a)(1)(B), the Secretary

2 shall reduce the grant payable to the State under sec3 tion 403(a)(1) for the immediately succeeding fiscal

4 year by an amount equal to 5 percent of the State

5 family assistance grant.

6 ‘‘(12) REQUIRED REPLACEMENT OF GRANT FUND

7 REDUCTIONS CAUSED BY PENALTIES.—If the grant

8 payable to a State under section 403(a)(1) for a fiscal

9 year is reduced by reason of this subsection, the State

10 shall, during the immediately succeeding fiscal year,

11 expend under the State program funded under this

12 part an amount equal to the total amount of such re13 ductions.

14 ‘‘(b) REASONABLE CAUSE EXCEPTION.—

15 ‘‘(1) IN GENERAL.—The Secretary may not im16 pose a penalty on a State under subsection (a) with

17 respect to a requirement if the Secretary determines

18 that the State has reasonable cause for failing to com19 ply with the requirement.

20 ‘‘(2) EXCEPTION.—Paragraph (1) of this sub21 section shall not apply to any penalty under para22 graph (6) or (7) of subsection (a).

23 ‘‘(c) CORRECTIVE COMPLIANCE PLAN.—

24 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) NOTIFICATION OF VIOLATION.—Before

2 imposing a penalty against a State under sub3 section (a) with respect to a violation of this

4 part, the Secretary shall notify the State of the

5 violation and allow the State the opportunity to

6 enter into a corrective compliance plan in ac7 cordance with this subsection which outlines how

8 the State will correct the violation and how the

9 State will insure continuing compliance with

10 this part.

11 ‘‘(B) 60-DAY PERIOD TO PROPOSE A COR12 RECTIVE COMPLIANCE PLAN.—During the 60-day

13 period that begins on the date the State receives

14 a notice provided under subparagraph (A) with

15 respect to a violation, the State may submit to

16 the Federal Government a corrective compliance

17 plan to correct the violation.

18 ‘‘(C) CONSULTATION ABOUT MODIFICA19 TIONS.—During the 60-day period that begins

20 with the date the Secretary receives a corrective

21 compliance plan submitted by a State in accord22 ance with subparagraph (B), the Secretary may

23 consult with the State on modifications to the

24 plan.
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1 ‘‘(D) ACCEPTANCE OF PLAN.— A corrective

2 compliance plan submitted by a State in accord3 ance with subparagraph (B) is deemed to be ac4 cepted by the Secretary if the Secretary does not

5 accept or reject the plan during 60-day period

6 that begins on the date the plan is submitted.

7 ‘‘(2) EFFECT OF CORRECTING VIOLATION.—The

8 Secretary may not impose any penalty under sub9 section (a) with respect to any violation covered by a

10 State corrective compliance plan accepted by the Sec11 retary if the State corrects the violation pursuant to

12 the plan.

13 ‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA14 TION.—The Secretary shall assess some or all of a

15 penalty imposed on a State under subsection (a) with

16 respect to a violation if the State does not, in a time17 ly manner, correct the violation pursuant to a State

18 corrective compliance plan accepted by the Secretary.

19 ‘‘(4) INAPPLICABILITY TO FAILURE TO TIMELY

20 REPAY A FEDERAL LOAN FUND FOR A STATE WEL21 FARE PROGRAM.—This subsection shall not apply to

22 the imposition of a penalty against a State under

23 subsection (a)(6).

24 ‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—
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1 ‘‘(1) IN GENERAL.—In imposing the penalties

2 described in subsection (a), the Secretary shall not re3 duce any quarterly payment to a State by more than

4 25 percent.

5 ‘‘(2) CARRYFORWARD OF UNRECOVERED PEN6 ALTIES.—To the extent that paragraph (1) of this

7 subsection prevents the Secretary from recovering dur8 ing a fiscal year the full amount of penalties imposed

9 on a State under subsection (a) of this section for a

10 prior fiscal year, the Secretary shall apply any re11 maining amount of such penalties to the grant pay12 able to the State under section 403(a)(1) for the im13 mediately succeeding fiscal year.

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

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

16 Secretary takes any adverse action under this part with re17 spect to a State, the Secretary shall notify the chief execu18 tive officer of the State of the adverse action, including any

19 action with respect to the State plan submitted under sec20 tion 402 or the imposition of a penalty under section 409.

21 ‘‘(b) ADMINISTRATIVE REVIEW.—

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

23 date a State receives notice under subsection (a) of an

24 adverse action, the State may appeal the action, in

25 whole or in part, to the Departmental Appeals Board
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1 established in the Department of Health and Human

2 Services (in this section referred to as the ‘Board’) by

3 filing an appeal with the Board.

4 ‘‘(2) PROCEDURAL RULES.—The Board shall

5 consider an appeal filed by a State under paragraph

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

7 may submit and as the Board may require to support

8 the final decision of the Board. In deciding whether

9 to uphold an adverse action or any portion of such

10 an action, the Board shall conduct a thorough review

11 of the issues and take into account all relevant evi12 dence. The Board shall make a final determination

13 with respect to an appeal filed under paragraph (1)

14 not less than 60 days after the date the appeal is

15 filed.

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

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

18 date of a final decision by the Board under this sec19 tion with respect to an adverse action taken against

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

21 final decision (and the findings incorporated into the

22 final decision) by filing an action in—

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

24 for the judicial district in which the principal or
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1 headquarters office of the State agency is located;

2 or

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

4 the District of Columbia.

5 ‘‘(2) PROCEDURAL RULES.—The district court in

6 which an action is filed under paragraph (1) shall re7 view the final decision of the Board on the record es8 tablished in the administrative proceeding, in accord9 ance with the standards of review prescribed by sub10 paragraphs (A) through (E) of section 706(2) of title

11 5, United States Code. The review shall be on the

12 basis of the documents and supporting data submitted

13 to the Board.

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

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

16 ‘‘(1) GENERAL REPORTING REQUIREMENT.—

17 ‘‘(A) CONTENTS OF REPORT.—Each eligible

18 State shall collect on a monthly basis, and report

19 to the Secretary on a quarterly basis, the follow20 ing disaggregated case record information on the

21 families receiving assistance under the State pro22 gram funded under this part:

23 ‘‘(i) The county of residence of the fam24 ily.
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1 ‘‘(ii) Whether a child receiving such as2 sistance or an adult in the family is dis3 abled.

4 ‘‘(iii) The ages of the members of such

5 families.

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

7 family, and the relation of each family

8 member to the youngest child in the family.

9 ‘‘(v) The employment status and earn10 ings of the employed adult in the family.

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

12 in the family, including whether such adults

13 have never married, are widowed, or are di14 vorced.

15 ‘‘(vii) The race and educational status

16 of each adult in the family.

17 ‘‘(viii) The race and educational status

18 of each child in the family.

19 ‘‘(ix) Whether the family received sub20 sidized housing, medical assistance under

21 the State plan under title XV or the State

22 plan approved under title XIX, food stamps,

23 or subsidized child care, and if the latter 2,

24 the amount received.
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1 ‘‘(x) The number of months that the

2 family has received each type of assistance

3 under the program.

4 ‘‘(xi) If the adults participated in, and

5 the number of hours per week of participa6 tion in, the following activities:

7 ‘‘(I) Education.

8 ‘‘(II) Subsidized private sector

9 employment.

10 ‘‘(III) Unsubsidized employment.

11 ‘‘(IV) Public sector employment,

12 work experience, or community service.

13 ‘‘(V) Job search.

14 ‘‘(VI) Job skills training or on15 the-job training.

16 ‘‘(VII) Vocational education.

17 ‘‘(xii) Information necessary to cal18 culate participation rates under section

19 407.

20 ‘‘(xiii) The type and amount of assist21 ance received under the program, including

22 the amount of and reason for any reduction

23 of assistance (including sanctions).

24 ‘‘(xiv) Any amount of unearned in25 come received by any member of the family.
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1 ‘‘(xv) The citizenship of the members of

2 the family.

3 ‘‘(xvi) From a sample of closed cases,

4 whether the family left the program, and if

5 so, whether the family left due to—

6 ‘‘(I) employment;

7 ‘‘(II) marriage;

8 ‘‘(III) the prohibition set forth in

9 section 408(a)(8);

10 ‘‘(IV) sanction; or

11 ‘‘(V) State policy.

12 ‘‘(B) USE OF ESTIMATES.—

13 ‘‘(i) AUTHORITY.—A State may com14 ply with subparagraph (A) by submitting

15 an estimate which is obtained through the

16 use of scientifically acceptable sampling

17 methods approved by the Secretary.

18 ‘‘(ii) SAMPLING AND OTHER METH19 ODS.—The Secretary shall provide the

20 States with such case sampling plans and

21 data collection procedures as the Secretary

22 deems necessary to produce statistically

23 valid estimates of the performance of State

24 programs funded under this part. The Sec25 retary may develop and implement proce-
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1 dures for verifying the quality of data sub2 mitted by the States.

3 ‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO

4 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The

5 report required by paragraph (1) for a fiscal quarter

6 shall include a statement of the percentage of the

7 funds paid to the State under this part for the quar8 ter that are used to cover administrative costs or over9 head.

10 ‘‘(3) REPORT ON STATE EXPENDITURES ON PRO11 GRAMS FOR NEEDY FAMILIES.—The report required

12 by paragraph (1) for a fiscal quarter shall include a

13 statement of the total amount expended by the State

14 during the quarter on programs for needy families.

15 ‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR16 TICIPATING IN WORK ACTIVITIES.—The report re17 quired by paragraph (1) for a fiscal quarter shall in18 clude the number of noncustodial parents in the State

19 who participated in work activities (as defined in sec20 tion 407(d)) during the quarter.

21 ‘‘(5) REPORT ON TRANSITIONAL SERVICES.—The

22 report required by paragraph (1) for a fiscal quarter

23 shall include the total amount expended by the State

24 during the quarter to provide transitional services to

25 a family that has ceased to receive assistance under
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1 this part because of employment, along with a de2 scription of such services.

3 ‘‘(6) REGULATIONS.—The Secretary shall pre4 scribe such regulations as may be necessary to define

5 the data elements with respect to which reports are re6 quired by this subsection.

7 ‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE

8 SECRETARY.—Not later than 6 months after the end of fis9 cal year 1997, and each fiscal year thereafter, the Secretary

10 shall transmit to the Congress a report describing—

11 ‘‘(1) whether the States are meeting—

12 ‘‘(A) the participation rates described in

13 section 407(a); and

14 ‘‘(B) the objectives of—

15 ‘‘(i) increasing employment and earn16 ings of needy families, and child support

17 collections; and

18 ‘‘(ii) decreasing out-of-wedlock preg19 nancies and child poverty;

20 ‘‘(2) the demographic and financial characteris21 tics of families applying for assistance, families re22 ceiving assistance, and families that become ineligible

23 to receive assistance;

24 ‘‘(3) the characteristics of each State program

25 funded under this part; and
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1 ‘‘(4) the trends in employment and earnings of

2 needy families with minor children living at home.

3 ‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN4 DIAN TRIBES.

5 ‘‘(a) GRANTS FOR INDIAN TRIBES.—

6 ‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—

7 ‘‘(A) IN GENERAL.—For each of fiscal years

8 1997, 1998, 1999, 2000, and 2001, the Secretary

9 shall pay to each Indian tribe that has an ap10 proved tribal family assistance plan a tribal

11 family assistance grant for the fiscal year in an

12 amount equal to the amount determined under

13 subparagraph (B), and shall reduce the grant

14 payable under section 403(a)(1) to any State in

15 which lies the service area or areas of the Indian

16 tribe by that portion of the amount so deter17 mined that is attributable to expenditures by the

18 State.

19 ‘‘(B) AMOUNT DETERMINED.—

20 ‘‘(i) IN GENERAL.—The amount deter21 mined under this subparagraph is an

22 amount equal to the total amount of the

23 Federal payments to a State or States

24 under section 403 (as in effect during such

25 fiscal year) for fiscal year 1994 attributable
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1 to expenditures (other than child care ex2 penditures) by the State or States under

3 parts A and F (as so in effect) for fiscal

4 year 1994 for Indian families residing in

5 the service area or areas identified by the

6 Indian tribe pursuant to subsection

7 (b)(1)(C) of this section.

8 ‘‘(ii) USE OF STATE SUBMITTED

9 DATA.—

10 ‘‘(I) IN GENERAL.—The Secretary

11 shall use State submitted data to make

12 each determination under clause (i).

13 ‘‘(II) DISAGREEMENT WITH DE14 TERMINATION.—If an Indian tribe or

15 tribal organization disagrees with

16 State submitted data described under

17 subclause (I), the Indian tribe or tribal

18 organization may submit to the Sec19 retary such additional information as

20 may be relevant to making the deter21 mination under clause (i) and the Sec22 retary may consider such information

23 before making such determination.

24 ‘‘(2) GRANTS FOR INDIAN TRIBES THAT RE25 CEIVED JOBS FUNDS.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall pay

2 to each eligible Indian tribe for each of fiscal

3 years 1996, 1997, 1998, 1999, 2000, and 2001 a

4 grant in an amount equal to the amount re5 ceived by the Indian tribe in fiscal year 1994

6 under section 482(i) (as in effect during fiscal

7 year 1994).

8 ‘‘(B) ELIGIBLE INDIAN TRIBE.—For pur9 poses of subparagraph (A), the term ‘eligible In10 dian tribe’ means an Indian tribe or Alaska Na11 tive organization that conducted a job opportuni12 ties and basic skills training program in fiscal

13 year 1995 under section 482(i) (as in effect dur14 ing fiscal year 1995).

15 ‘‘(C) USE OF GRANT.—Each Indian tribe to

16 which a grant is made under this paragraph

17 shall use the grant for the purpose of operating

18 a program to make work activities available to

19 members of the Indian tribe.

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

21 in the Treasury of the United States not other22 wise appropriated, there are appropriated

23 $7,638,474 for each fiscal year specified in sub24 paragraph (A) for grants under subparagraph

25 (A).
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1 ‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—

2 ‘‘(1) IN GENERAL.—Any Indian tribe that de3 sires to receive a tribal family assistance grant shall

4 submit to the Secretary a 3-year tribal family assist5 ance plan that—

6 ‘‘(A) outlines the Indian tribe’s approach to

7 providing welfare-related services for the 3-year

8 period, consistent with this section;

9 ‘‘(B) specifies whether the welfare-related

10 services provided under the plan will be provided

11 by the Indian tribe or through agreements, con12 tracts, or compacts with intertribal consortia,

13 States, or other entities;

14 ‘‘(C) identifies the population and service

15 area or areas to be served by such plan;

16 ‘‘(D) provides that a family receiving as17 sistance under the plan may not receive duplica18 tive assistance from other State or tribal pro19 grams funded under this part;

20 ‘‘(E) identifies the employment opportuni21 ties in or near the service area or areas of the

22 Indian tribe and the manner in which the In23 dian tribe will cooperate and participate in en24 hancing such opportunities for recipients of as-
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1 sistance under the plan consistent with any ap2 plicable State standards; and

3 ‘‘(F) applies the fiscal accountability provi4 sions of section 5(f)(1) of the Indian Self-Deter5 mination and Education Assistance Act (25

6 U.S.C. 450c(f)(1)), relating to the submission of

7 a single-agency audit report required by chapter

8 75 of title 31, United States Code.

9 ‘‘(2) APPROVAL.—The Secretary shall approve

10 each tribal family assistance plan submitted in ac11 cordance with paragraph (1).

12 ‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this

13 section shall preclude the development and submission

14 of a single tribal family assistance plan by the par15 ticipating Indian tribes of an intertribal consortium.

16 ‘‘(c) MINIMUM WORK PARTICIPATION REQUIREMENTS

17 AND TIME LIMITS.—The Secretary, with the participation

18 of Indian tribes, shall establish for each Indian tribe receiv19 ing a grant under this section minimum work participa20 tion requirements, appropriate time limits for receipt of

21 welfare-related services under the grant, and penalties

22 against individuals—

23 ‘‘(1) consistent with the purposes of this section;

24 ‘‘(2) consistent with the economic conditions and

25 resources available to each tribe; and
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1 ‘‘(3) similar to comparable provisions in section

2 407(d).

3 ‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec4 tion shall preclude an Indian tribe from seeking emergency

5 assistance from any Federal loan program or emergency

6 fund.

7 ‘‘(e) ACCOUNTABILITY.—Nothing in this section shall

8 be construed to limit the ability of the Secretary to main9 tain program funding accountability consistent with—

10 ‘‘(1) generally accepted accounting principles;

11 and

12 ‘‘(2) the requirements of the Indian Self-Deter13 mination and Education Assistance Act (25 U.S.C.

14 450 et seq.).

15 ‘‘(f) PENALTIES.—

16 ‘‘(1) Subsections (a)(1), (a)(6), and (b) of section

17 409, shall apply to an Indian tribe with an approved

18 tribal assistance plan in the same manner as such

19 subsections apply to a State.

20 ‘‘(2) Section 409(a)(3) shall apply to an Indian

21 tribe with an approved tribal assistance plan by sub22 stituting ‘meet minimum work participation require23 ments established under section 412(c)’ for ‘comply

24 with section 407(a)’.
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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 Alaska

9 that receives a tribal family assistance grant under

10 this section shall use the grant to operate a program

11 in accordance with requirements comparable to the

12 requirements applicable to the program of the State

13 of Alaska funded under this part. Comparability of

14 programs shall be established on the basis of program

15 criteria developed by the Secretary in consultation

16 with the State of Alaska and such Indian tribes.

17 ‘‘(2) WAIVER.—An Indian tribe described in

18 paragraph (1) may apply to the appropriate State

19 authority to receive a waiver of the requirement of

20 paragraph (1).

21 ‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD22 IES.

23 ‘‘(a) RESEARCH.—The Secretary shall conduct re24 search on the benefits, effects, and costs of operating dif25 ferent State programs funded under this part, including
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1 time limits relating to eligibility for assistance. The re2 search shall include studies on the effects of different pro3 grams and the operation of such programs on welfare de4 pendency, illegitimacy, teen pregnancy, employment rates,

5 child well-being, and any other area the Secretary deems

6 appropriate. The Secretary shall also conduct research on

7 the costs and benefits of State activities under section 409.

8 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE

9 APPROACHES TO REDUCING WELFARE DEPENDENCY AND

10 INCREASING CHILD WELL-BEING.—

11 ‘‘(1) IN GENERAL.—The Secretary may assist

12 States in developing, and shall evaluate, innovative

13 approaches for reducing welfare dependency and in14 creasing the well-being of minor children living at

15 home with respect to recipients of assistance under

16 programs funded under this part. The Secretary may

17 provide funds for training and technical assistance to

18 carry out the approaches developed pursuant to this

19 paragraph.

20 ‘‘(2) EVALUATIONS.—In performing the evalua21 tions under paragraph (1), the Secretary shall, to the

22 maximum extent feasible, use random assignment as

23 an evaluation methodology.

24 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec25 retary shall develop innovative methods of disseminating
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1 information on any research, evaluations, and studies con2 ducted under this section, including the facilitation of the

3 sharing of information and best practices among States and

4 localities through the use of computers and other tech5 nologies.

6 ‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF

7 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

8 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec9 retary shall rank annually the States to which grants

10 are paid under section 403 in the order of their suc11 cess in placing recipients of assistance under the

12 State program funded under this part into long-term

13 private sector jobs, reducing the overall welfare case14 load, and, when a practicable method for calculating

15 this information becomes available, diverting individ16 uals from formally applying to the State program

17 and receiving assistance. In ranking States under this

18 subsection, the Secretary shall take into account the

19 average number of minor children living at home in

20 families in the State that have incomes below the pov21 erty line and the amount of funding provided each

22 State for such families.

23 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUC24 CESSFUL WORK PROGRAMS.—The Secretary shall re25 view the programs of the 3 States most recently
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1 ranked highest under paragraph (1) and the 3 States

2 most recently ranked lowest under paragraph (1) that

3 provide parents with work experience, assistance in

4 finding employment, and other work preparation ac5 tivities and support services to enable the families of

6 such parents to leave the program and become self-suf7 ficient.

8 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF IS9 SUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

10 ‘‘(1) ANNUAL RANKING OF STATES.—

11 ‘‘(A) IN GENERAL.—The Secretary shall an12 nually rank States to which grants are made

13 under section 403 based on the following ranking

14 factors:

15 ‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA16 TIOS.—The ratio represented by—

17 ‘‘(I) the total number of out-of18 wedlock births in families receiving as19 sistance under the State program

20 under this part in the State for the

21 most recent fiscal year for which infor22 mation is available; over

23 ‘‘(II) the total number of births in

24 families receiving assistance under the
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1 State program under this part in the

2 State for such year.

3 ‘‘(ii) NET CHANGES IN THE OUT-OF4 WEDLOCK RATIO.—The difference between

5 the ratio described in subparagraph (A)(i)

6 with respect to a State for the most recent

7 fiscal year for which such information is

8 available and the ratio with respect to the

9 State for the immediately preceding year.

10 ‘‘(2) ANNUAL REVIEW.—The Secretary shall re11 view the programs of the 5 States most recently

12 ranked highest under paragraph (1) and the 5 States

13 most recently ranked the lowest under paragraph (1).

14 ‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall

15 be eligible to receive funding to evaluate the State program

16 funded under this part if—

17 ‘‘(1) the State submits a proposal to the Sec18 retary for the evaluation;

19 ‘‘(2) the Secretary determines that the design

20 and approach of the evaluation is rigorous and is

21 likely to yield information that is credible and will

22 be useful to other States; and

23 ‘‘(3) unless otherwise waived by the Secretary,

24 the State contributes to the cost of the evaluation,
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1 from non-Federal sources, an amount equal to at least

2 10 percent of the cost of the evaluation.

3 ‘‘(g) FUNDING OF STUDIES AND DEMONSTRATIONS.—

4 ‘‘(1) IN GENERAL.—Out of any money in the

5 Treasury of the United States not otherwise appro6 priated, there are appropriated $15,000,000 for each

7 of fiscal years 1998 through 2001, for the purpose of

8 paying—

9 ‘‘(A) the cost of conducting the research de10 scribed in subsection (a);

11 ‘‘(B) the cost of developing and evaluating

12 innovative approaches for reducing welfare de13 pendency and increasing the well-being of minor

14 children under subsection (b);

15 ‘‘(C) the Federal share of any State-initi16 ated study approved under subsection (f); and

17 ‘‘(D) an amount determined by the Sec18 retary to be necessary to operate and evaluate

19 demonstration projects, relating to this part, that

20 are in effect or approved under section 1115 as

21 of September 30, 1995, and are continued after

22 such date.

23 ‘‘(2) ALLOCATION.—Of the amount appropriated

24 under paragraph (1) for a fiscal year—
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1 ‘‘(A) 50 percent shall be allocated for the

2 purposes described in subparagraphs (A) and

3 (B) of paragraph (1), and

4 ‘‘(B) 50 percent shall be allocated for the

5 purposes described in subparagraphs (C) and

6 (D) of paragraph (1).

7 ‘‘(3) DEMONSTRATIONS OF INNOVATIVE STRATE8 GIES.—The Secretary may implement and evaluate

9 demonstrations of innovative and promising strate10 gies which—

11 ‘‘(A) provide one-time capital funds to es12 tablish, expand, or replicate programs;

13 ‘‘(B) test performance-based grant-to-loan

14 financing in which programs meeting perform15 ance targets receive grants while programs not

16 meeting such targets repay funding on a pro17 rated basis; and

18 ‘‘(C) test strategies in multiple States and

19 types of communities.

20 ‘‘(h) CHILD POVERTY RATES.—

21 ‘‘(1) IN GENERAL.—Not later than 90 days after

22 the date of the enactment of this part, and annually

23 thereafter, the chief executive officer of a State shall

24 submit to the Secretary a statement of the child pov25 erty rate in the State as of such date of enactment or
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1 the date of such subsequent statements. Such subse2 quent statements shall include the change in such rate

3 from the previous statement, if any.

4 ‘‘(2) INCREASE IN RATE.—With respect to a

5 State that submits a statement under paragraph (1)

6 that indicates an increase of 5 percent or more in the

7 child poverty rate of the State from the previous state8 ment as a result of the changes made by the Act, the

9 State shall, not later than 90 days after the date of

10 such statement, prepare and submit to the Secretary

11 a corrective action plan in accordance with para12 graph (3).

13 ‘‘(3) CORRECTIVE ACTION PLAN.—

14 ‘‘(A) IN GENERAL.—A corrective action

15 plan submitted under paragraph (2) shall out16 line that manner in which the State will reduce

17 the child poverty rate within the State. The plan

18 shall include a description of the actions to be

19 taken by the State under such plan.

20 ‘‘(B) CONSULTATION ABOUT MODIFICA21 TIONS.—During the 60-day period that begins

22 with the date the Secretary receives the corrective

23 action plan of a State under subparagraph (A),

24 the Secretary may consult with the State on

25 modifications to the plan.
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1 ‘‘(C) ACCEPTANCE OF PLAN.— A corrective

2 action plan submitted by a State in accordance

3 with subparagraph (A) is deemed to be accepted

4 by the Secretary if the Secretary does not accept

5 or reject the plan during 60-day period that be6 gins on the date the plan is submitted.

7 ‘‘(4) COMPLIANCE WITH PLAN.—

8 ‘‘(A) IN GENERAL.—A State that submits a

9 corrective action plan under this subsection shall

10 continue to implement such plan until such time

11 as the Secretary makes the determination de12 scribed in subparagraph (B).

13 ‘‘(B) DETERMINATION.—A determination

14 described in this subparagraph is a determina15 tion that the child poverty rate for the State in16 volved has fallen to, and not exceeded for a pe17 riod of 2-consecutive years, a rate that is not

18 greater than the rate contained in the most re19 cent statement submitted by the State under

20 paragraph (1) which did not trigger the applica21 tion of paragraph (2).

22 ‘‘(C) LABOR SURPLUS AREA.—With respect

23 to a State that submits a corrective action plan

24 under paragraph (2), such plan shall con-
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1 tinue to be implemented until the area involved

2 is no longer designated as a Labor Surplus Area.

3 ‘‘(5) METHODOLOGY.—The Secretary shall pro4 mulgate regulations establishing the methodology by

5 which a States shall determine the child poverty rate

6 within such State. Such methodology shall, with re7 spect to a State, take into account factors including

8 the number of children who receive free or reduced9 price lunches, the number of food stamp households,

10 and the county by county estimates of children in

11 poverty as determined by the Census Bureau.

12 ‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.

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

14 expand the Survey of Income and Program Participation

15 as necessary to obtain such information as will enable in16 terested persons to evaluate the impact of the amendments

17 made by chapter 1 of the Personal Responsibility and Work

18 Opportunity Act of 1996 on a random national sample of

19 recipients of assistance under State programs funded under

20 this part and (as appropriate) other low income families,

21 and in doing so, shall pay particular attention to the issues

22 of out-of-wedlock birth, welfare dependency, the beginning

23 and end of welfare spells, and the causes of repeat welfare

24 spells.
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1 ‘‘(b) APPROPRIATION.—Out of any money in the

2 Treasury of the United States not otherwise appropriated,

3 there are appropriated $10,000,000 for each of fiscal years

4 1998, 1999, 2000, 2001, and 2002 for payment to the Bu5 reau of the Census to carry out subsection (a).

6 ‘‘SEC. 415. WAIVERS.

7 ‘‘(a) CONTINUATION OF WAIVERS.—

8 ‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT9 MENT OF WELFARE REFORM.—Except as provided in

10 paragraph (3), if any waiver granted to a State

11 under section 1115 or otherwise which relates to the

12 provision of assistance under a State plan under this

13 part (as in effect on September 30, 1996) is in effect

14 as of the date of the enactment of the Personal Re15 sponsibility and Work Opportunity Act of 1996, the

16 amendments made by such Act (other than by section

17 2103(d) of such Act) shall not apply with respect to

18 the State before the expiration (determined without

19 regard to any extensions) of the waiver to the extent

20 such amendments are inconsistent with the waiver.

21 ‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex22 cept as provided in paragraph (3), if any waiver

23 granted to a State under section 1115 or otherwise

24 which relates to the provision of assistance under a

25 State plan under this part (as in effect on September
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1 30, 1996) is submitted to the Secretary before the date

2 of the enactment of the Personal Responsibility and

3 Work Opportunity Act of 1996 and approved by the

4 Secretary on or before July 1, 1997, and the State

5 demonstrates to the satisfaction of the Secretary that

6 the waiver will not result in Federal expenditures

7 under title IV of this Act (as in effect without regard

8 to the amendments made by the Personal Responsibil9 ity and Work Opportunity Act of 1996) that are

10 greater than would occur in the absence of the waiver,

11 the amendments made by the Personal Responsibility

12 and Work Opportunity Act of 1996 (other than by

13 section 2103(d) of such Act) shall not apply with re14 spect to the State before the expiration (determined

15 without regard to any extensions) of the waiver to the

16 extent the amendments made by the Personal Respon17 sibility and Work Opportunity Act of 1996 are incon18 sistent with the waiver.

19 ‘‘(3) FINANCING LIMITATION.—Notwithstanding

20 any other provision of law, beginning with fiscal year

21 1996, a State operating under a waiver described in

22 paragraph (1) shall be entitled to payment under sec23 tion 403 for the fiscal year, in lieu of any other pay24 ment provided for in the waiver.

25 ‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
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1 ‘‘(1) IN GENERAL.—A State may terminate a

2 waiver described in subsection (a) before the expira3 tion of the waiver.

4 ‘‘(2) REPORT.—A State which terminates a

5 waiver under paragraph (1) shall submit a report to

6 the Secretary summarizing the waiver and any avail7 able information concerning the result or effect of the

8 waiver.

9 ‘‘(3) HOLD HARMLESS PROVISION.—

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

11 other provision of law, a State that, not later

12 than the date described in subparagraph (B),

13 submits a written request to terminate a waiver

14 described in subsection (a) shall be held harmless

15 for accrued cost neutrality liabilities incurred

16 under the waiver.

17 ‘‘(B) DATE DESCRIBED.—The date described

18 in this subparagraph is 90 days following the

19 adjournment of the first regular session of the

20 State legislature that begins after the date of the

21 enactment of the Personal Responsibility and

22 Work Opportunity Act of 1996.

23 ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT

24 WAIVERS.—The Secretary shall encourage any State oper25 ating a waiver described in subsection (a) to continue the
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1 waiver and to evaluate, using random sampling and other

2 characteristics of accepted scientific evaluations, the result

3 or effect of the waiver.

4 ‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A

5 State may elect to continue 1 or more individual waivers

6 described in subsection (a).

7 ‘‘SEC. 416. ADMINISTRATION.

8 ‘‘The programs under this part and part D shall be

9 administered by an Assistant Secretary for Family Support

10 within the Department of Health and Human Services, who

11 shall be appointed by the President, by and with the advice

12 and consent of the Senate, and who shall be in addition

13 to any other Assistant Secretary of Health and Human

14 Services provided for by law, and the Secretary shall reduce

15 the Federal workforce within the Department of Health and

16 Human Services by an amount equal to the sum of 75 per17 cent of the full-time equivalent positions at such Depart18 ment that relate to any direct spending program, or any

19 program funded through discretionary spending, that has

20 been converted into a block grant program under the Per21 sonal Responsibility and Work Opportunity Act of 1996

22 and the amendments made by such Act, and by an amount

23 equal to 75 percent of that portion of the total full-time

24 equivalent departmental management positions at such De25 partment that bears the same relationship to the amount
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1 appropriated for any direct spending program, or any pro2 gram funded through discretionary spending, that has been

3 converted into a block grant program under the Personal

4 Responsibility and Work Opportunity Act of 1996 and the

5 amendments made by such Act, as such amount relates to

6 the total amount appropriated for use by such Department,

7 and, notwithstanding any other provision of law, the Sec8 retary shall take such actions as may be necessary, includ9 ing reductions in force actions, consistent with sections

10 3502 and 3595 of title 5, United States Code, to reduce the

11 full-time equivalent positions within the Department of

12 Health and Human Services by 245 full-time equivalent po13 sitions related to the program converted into a block grant

14 under the amendment made by section 2103 of the Personal

15 Responsibility and Work Opportunity Act of 1996, and by

16 60 full-time equivalent managerial positions in the Depart17 ment.

18 ‘‘SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

19 ‘‘No officer or employee of the Federal Government

20 may regulate the conduct of States under this part or en21 force any provision of this part, except to the extent ex22 pressly provided in this part.’’; and

23 (2) by inserting after such section 418 the follow24 ing:
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1 ‘‘SEC. 419. DEFINITIONS.

2 ‘‘As used in this part:

3 ‘‘(1) ADULT.—The term ‘adult’ means an indi4 vidual who is not a minor child.

5 ‘‘(2) MINOR CHILD.—The term ‘minor child’

6 means an individual who—

7 ‘‘(A) has not attained 18 years of age; or

8 ‘‘(B) has not attained 19 years of age and

9 is a full-time student in a secondary school (or

10 in the equivalent level of vocational or technical

11 training).

12 ‘‘(3) FISCAL YEAR.—The term ‘fiscal year’

13 means any 12-month period ending on September 30

14 of a calendar year.

15 ‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI16 ZATION.—

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

18 subparagraph (B), the terms ‘Indian’, ‘Indian

19 tribe’, and ‘tribal organization’ have the mean20 ing given such terms by section 4 of the Indian

21 Self-Determination and Education Assistance

22 Act (25 U.S.C. 450b).

23 ‘‘(B) SPECIAL RULE FOR INDIAN TRIBES IN

24 ALASKA.—The term ‘Indian tribe’ means, with

25 respect to the State of Alaska, only the

26 Metlakatla Indian Community of the Annette Is-
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1 lands Reserve and the following Alaska Native

2 regional nonprofit corporations:

3 ‘‘(i) Arctic Slope Native Association.

4 ‘‘(ii) Kawerak, Inc.

5 ‘‘(iii) Maniilaq Association.

6 ‘‘(iv) Association of Village Council

7 Presidents.

8 ‘‘(v) Tanana Chiefs Conference.

9 ‘‘(vi) Cook Inlet Tribal Council.

10 ‘‘(vii) Bristol Bay Native Association.

11 ‘‘(viii) Aleutian and Pribilof Island

12 Association.

13 ‘‘(ix) Chugachmuit.

14 ‘‘(x) Tlingit Haida Central Council.

15 ‘‘(xi) Kodiak Area Native Association.

16 ‘‘(xii) Copper River Native Associa17 tion.

18 ‘‘(5) STATE.—

19 ‘‘(A) IN GENERAL.—Except as otherwise

20 specifically provided, the term ‘State’ means the

21 50 States of the United States, the District of

22 Columbia, the Commonwealth of Puerto Rico, the

23 United States Virgin Islands, Guam, and Amer24 ican Samoa.
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1 ‘‘(B) STATE OPTION TO CONTRACT TO PRO2 VIDE SERVICES.—The term ‘State’ includes the—

3 ‘‘(i) administration and provision of

4 services under the program funded under

5 this part, or under the programs funded

6 under parts B and E of this title, through

7 contracts with charitable, religious, or pri8 vate organizations; and

9 ‘‘(ii) provision to beneficiaries of as10 sistance under such programs with certifi11 cates, vouchers, or other forms of disburse12 ment which are redeemable with such orga13 nizations.’’.

14 (b) GRANTS TO OUTLYING AREAS.—Section 1108 (42

15 U.S.C. 1308) is amended—

16 (1) by redesignating subsection (c) as subsection

17 (g);

18 (2) by striking all that precedes subsection (c)

19 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 TER24 RITORY.—Notwithstanding any other provision of this Act,

25 the total amount certified by the Secretary of Health and
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1 Human Services under titles I, X, XIV, and XVI, under

2 parts A and E of title IV, and under subsection (b) of this

3 section, for payment to any territory for a fiscal year shall

4 not exceed the ceiling amount for the territory for the fiscal

5 year.

6 ‘‘(b) ENTITLEMENT TO MATCHING GRANT.—

7 ‘‘(1) IN GENERAL.—Each territory shall be enti8 tled to receive from the Secretary for each fiscal year

9 a grant in an amount equal to 75 percent of the

10 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 E 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) for

20 fiscal year 1995, which shall be determined

21 by applying subparagraphs (C) and (D) of

22 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 the

4 territory during fiscal year 1995 pursuant

5 to parts A and F of title IV (as so in effect),

6 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 under

10 any provision of law specified in subsection (a).

11 ‘‘(c) DEFINITIONS.—As used in this section:

12 ‘‘(1) TERRITORY.—The term ‘territory’ means

13 Puerto Rico, the Virgin Islands, Guam, and Amer14 ican Samoa.

15 ‘‘(2) CEILING AMOUNT.—The term ‘ceiling

16 amount’ means, with respect to a territory and a fis17 cal year, the mandatory ceiling amount with respect

18 to the territory, reduced for the fiscal year in accord19 ance with subsection (e).

20 ‘‘(3) MANDATORY CEILING AMOUNT.—The term

21 ‘mandatory ceiling amount’ means—

22 ‘‘(A) $102,040,000 with respect to for Puer23 to Rico;

24 ‘‘(B) $4,683,000 with respect to Guam;
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1 ‘‘(C) $3,554,000 with respect to the Virgin

2 Islands; and

3 ‘‘(D) $1,000,000 with respect to American

4 Samoa.

5 ‘‘(4) TOTAL AMOUNT EXPENDED BY THE TERRI6 TORY.—The term ‘total amount expended by the terri7 tory’—

8 ‘‘(A) does not include expenditures during

9 the fiscal year from amounts made available by

10 the Federal Government; and

11 ‘‘(B) when used with respect to fiscal year

12 1995, also does not include—

13 ‘‘(i) expenditures during fiscal year

14 1995 under subsection (g) or (i) of section

15 402 (as in effect on September 30, 1995); or

16 ‘‘(ii) any expenditures during fiscal

17 year 1995 for which the territory (but for

18 section 1108, as in effect on September 30,

19 1995) would have received reimbursement

20 from the Federal Government.

21 ‘‘(d) AUTHORITY TO TRANSFER FUNDS AMONG PRO22 GRAMS.—Notwithstanding any other provision of this Act,

23 any territory to which an amount is paid under any provi24 sion of law specified in subsection (a) may use part or all
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1 of the amount to carry out any program operated by the

2 territory, or funded, under any other such provision of law.

3 ‘‘(e) MAINTENANCE OF EFFORT.—The ceiling amount

4 with respect to a territory shall be reduced for a fiscal year

5 by an amount equal to the amount (if any) by which—

6 ‘‘(1) the total amount expended by the territory

7 under all programs of the territory operated pursuant

8 to the provisions of law specified in subsection (a) (as

9 such provisions were in effect for fiscal year 1995) for

10 fiscal year 1995; exceeds

11 ‘‘(2) the total amount expended by the territory

12 under all programs of the territory that are funded

13 under the provisions of law specified in subsection (a)

14 for the fiscal year that immediately precedes the fiscal

15 year referred to in the matter preceding paragraph

16 (1).’’; and

17 (3) by striking subsections (d) and (e).

18 (c) REPEAL OF PROVISIONS REQUIRING REDUCTION

19 OF MEDICAID PAYMENTS TO STATES THAT REDUCE WEL20 FARE PAYMENT LEVELS.—

21 (1) Section 1903(i) (42 U.S.C. 1396b(i)) is

22 amended by striking paragraph (9).

23 (2) Section 1902 (42 U.S.C. 1396a) is amended

24 by striking subsection (c).
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1 (d) ELIMINATION OF CHILD CARE PROGRAMS UNDER

2 THE SOCIAL SECURITY ACT.—

3 (1) AFDC AND TRANSITIONAL CHILD CARE PRO4 GRAMS.—Section 402 (42 U.S.C. 602) is amended by

5 striking subsection (g).

6 (2) AT-RISK CHILD CARE PROGRAM.—

7 (A) AUTHORIZATION.—Section 402 (42

8 U.S.C. 602) is amended by striking subsection

9 (i).

10 (B) FUNDING PROVISIONS.—Section 403 (42

11 U.S.C. 603) is amended by striking subsection

12 (n).

13 SEC. 2104. SERVICES PROVIDED BY CHARITABLE, RELI14 GIOUS, OR PRIVATE ORGANIZATIONS.

15 (a) IN GENERAL.—

16 (1) STATE OPTIONS.—A State may—

17 (A) administer and provide services under

18 the programs described in subparagraphs (A)

19 and (B)(i) of paragraph (2) through contracts

20 with charitable, religious, or private organiza21 tions; and

22 (B) provide beneficiaries of assistance under

23 the programs described in subparagraphs (A)

24 and (B)(ii) of paragraph (2) with certificates,
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1 vouchers, or other forms of disbursement which

2 are redeemable with such organizations.

3 (2) PROGRAMS DESCRIBED.—The programs de4 scribed in this paragraph are the following programs:

5 (A) A State program funded under part A

6 of title IV of the Social Security Act (as amend7 ed by section 2103(a) of this Act).

8 (B) Any other program established or modi9 fied under chapter 1 or 2 of this subtitle, that—

10 (i) permits contracts with organiza11 tions; or

12 (ii) permits certificates, vouchers, or

13 other forms of disbursement to be provided

14 to beneficiaries, as a means of providing as15 sistance.

16 (b) RELIGIOUS ORGANIZATIONS.—The purpose of this

17 section is to allow States to contract with religious organi18 zations, or to allow religious organizations to accept certifi19 cates, vouchers, or other forms of disbursement under any

20 program described in subsection (a)(2), on the same basis

21 as any other nongovernmental provider without impairing

22 the religious character of such organizations, and without

23 diminishing the religious freedom of beneficiaries of assist24 ance funded under such program.
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1 (c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANI2 ZATIONS.—In the event a State exercises its authority under

3 subsection (a), religious organizations are eligible, on the

4 same basis as any other private organization, as contractors

5 to provide assistance, or to accept certificates, vouchers, or

6 other forms of disbursement, under any program described

7 in subsection (a)(2) so long as the programs are imple8 mented consistent with the Establishment Clause of the

9 United States Constitution. Except as provided in sub10 section (k), neither the Federal Government nor a State re11 ceiving funds under such programs shall discriminate

12 against an organization which is or applies to be a contrac13 tor to provide assistance, or which accepts certificates,

14 vouchers, or other forms of disbursement, on the basis that

15 the organization has a religious character.

16 (d) RELIGIOUS CHARACTER AND FREEDOM.—

17 (1) RELIGIOUS ORGANIZATIONS.—A religious or18 ganization with a contract described in subsection

19 (a)(1)(A), or which accepts certificates, vouchers, or

20 other forms of disbursement under subsection

21 (a)(1)(B), shall retain its independence from Federal,

22 State, and local governments, including such organi23 zation’s control over the definition, development,

24 practice, and expression of its religious beliefs.
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1 (2) ADDITIONAL SAFEGUARDS.—Neither the Fed2 eral Government nor a State shall require a religious

3 organization to—

4 (A) alter its form of internal governance; or

5 (B) remove religious art, icons, scripture, or

6 other symbols;

7 in order to be eligible to contract to provide assist8 ance, or to accept certificates, vouchers, or other forms

9 of disbursement, funded under a program described in

10 subsection (a)(2).

11 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—

12 (1) IN GENERAL.—If an individual described in

13 paragraph (2) has an objection to the religious char14 acter of the organization or institution from which

15 the individual receives, or would receive, assistance

16 funded under any program described in subsection

17 (a)(2), the State in which the individual resides shall

18 provide such individual (if otherwise eligible for such

19 assistance) within a reasonable period of time after

20 the date of such objection with assistance from an al21 ternative provider that is accessible to the individual

22 and the value of which is not less than the value of

23 the assistance which the individual would have re24 ceived from such organization.
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1 (2) INDIVIDUAL DESCRIBED.—An individual de2 scribed in this paragraph is an individual who re3 ceives, applies for, or requests to apply for, assistance

4 under a program described in subsection (a)(2).

5 (f) EMPLOYMENT PRACTICES.—A religious organiza6 tion’s exemption provided under section 702 of the Civil

7 Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding employ8 ment practices shall not be affected by its participation in,

9 or receipt of funds from, programs described in subsection

10 (a)(2).

11 (g) NONDISCRIMINATION AGAINST BENEFICIARIES.—

12 Except as otherwise provided in law, a religious organiza13 tion shall not discriminate against an individual in regard

14 to rendering assistance funded under any program de15 scribed in subsection (a)(2) on the basis of religion, a reli16 gious belief, or refusal to actively participate in a religious

17 practice.

18 (h) FISCAL ACCOUNTABILITY.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), any religious organization contracting to

21 provide assistance funded under any program de22 scribed in subsection (a)(2) shall be subject to the

23 same regulations as other contractors to account in

24 accord with generally accepted auditing principles for

25 the use of such funds provided under such programs.
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1 (2) LIMITED AUDIT.—If such organization seg2 regates Federal funds provided under such programs

3 into separate accounts, then only the financial assist4 ance provided with such funds shall be subject to

5 audit.

6 (i) COMPLIANCE.—Any party which seeks to enforce its

7 rights under this section may assert a civil action for in8 junctive relief exclusively in an appropriate State court

9 against the entity or agency that allegedly commits such

10 violation.

11 (j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN

12 PURPOSES.—No funds provided directly to institutions or

13 organizations to provide services and administer programs

14 under subsection (a)(1)(A) shall be expended for sectarian

15 worship, instruction, or proselytization.

16 (k) PREEMPTION.—Nothing in this section shall be

17 construed to preempt any provision of a State constitution

18 or State statute that prohibits or restricts the expenditure

19 of State funds in or by religious organizations.

20 SEC. 2105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

21 CAREGIVERS FOR THEIR GRANDCHILDREN.

22 (a) IN GENERAL.—Not later than 90 days after the

23 date of the enactment of this Act, the Secretary of Com24 merce, in carrying out section 141 of title 13, United States

25 Code, shall expand the data collection efforts of the Bureau
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1 of the Census (in this section referred to as the ‘‘Bureau’’)

2 to enable the Bureau to collect statistically significant data,

3 in connection with its decennial census and its mid-decade

4 census, concerning the growing trend of grandparents who

5 are the primary caregivers for their grandchildren.

6 (b) EXPANDED CENSUS QUESTION.—In carrying out

7 subsection (a), the Secretary of Commerce shall expand the

8 Bureau’s census question that details households which in9 clude both grandparents and their grandchildren. The ex10 panded question shall be formulated to distinguish between

11 the following households:

12 (1) A household in which a grandparent tempo13 rarily provides a home for a grandchild for a period

14 of weeks or months during periods of parental dis15 tress.

16 (2) A household in which a grandparent provides

17 a home for a grandchild and serves as the primary

18 caregiver for the grandchild.

19 SEC. 2106. REPORT ON DATA PROCESSING.

20 (a) IN GENERAL.—Within 6 months after the date of

21 the enactment of this Act, the Secretary of Health and

22 Human Services shall prepare and submit to the Congress

23 a report on—

24 (1) the status of the automated data processing

25 systems operated by the States to assist management
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1 in the administration of State programs under part

2 A of title IV of the Social Security Act (whether in

3 effect before or after October 1, 1995); and

4 (2) what would be required to establish a system

5 capable of—

6 (A) tracking participants in public pro7 grams over time; and

8 (B) checking case records of the States to de9 termine whether individuals are participating in

10 public programs of 2 or more States.

11 (b) PREFERRED CONTENTS.—The report required by

12 subsection (a) should include—

13 (1) a plan for building on the automated data

14 processing systems of the States to establish a system

15 with the capabilities described in subsection (a)(2);

16 and

17 (2) an estimate of the amount of time required

18 to establish such a system and of the cost of establish19 ing such a system.

20 SEC. 2107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

21 (a) STUDY.—The Secretary shall, in cooperation with

22 the States, study and analyze outcomes measures for evalu23 ating the success of the States in moving individuals out

24 of the welfare system through employment as an alternative

25 to the minimum participation rates described in section
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1 407 of the Social Security Act. The study shall include a

2 determination as to whether such alternative outcomes

3 measures should be applied on a national or a State-by4 State basis and a preliminary assessment of the effects of

5 section 409(a)(7)(C) of such Act.

6 (b) REPORT.—Not later than September 30, 1998, the

7 Secretary shall submit to the Committee on Finance of the

8 Senate and the Committee on Ways and Means of the House

9 of Representatives a report containing the findings of the

10 study required by subsection (a).

11 SEC. 2108. WELFARE FORMULA FAIRNESS COMMISSION.

12 (a) ESTABLISHMENT.—There is established a commis13 sion to be known as the Welfare Formula Fairness Commis14 sion (in this section referred to as the ‘‘Commission’’).

15 (b) MEMBERSHIP.—

16 (1) COMPOSITION.—The Commission shall be

17 composed of 13 members, of whom—

18 (A) 3 shall be appointed by the President,

19 of whom not more than 2 shall be of the same

20 political party;

21 (B) 3 shall be appointed by the Majority

22 Leader of the Senate;

23 (C) 2 shall be appointed by the Minority

24 Leader of the Senate;
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1 (D) 3 shall be appointed by the Speaker of

2 the House of Representatives; and

3 (E) 2 shall be appointed by the Minority

4 Leader of the House of Representatives.

5 (2) DATE.—The appointments of the members of

6 the Commission shall be made not later than 30 days

7 after the date of the enactment of this Act.

8 (c) PERIOD OF APPOINTMENT; VACANCIES.—Members

9 shall be appointed for the life of the Commission. Any va10 cancy in the Commission shall not affect its powers, but

11 shall be filled in the same manner as the original appoint12 ment.

13 (d) INITIAL MEETING.—Not later than 30 days after

14 the date on which all members of the Commission have been

15 appointed, the Commission shall hold its first meeting.

16 (e) MEETINGS.—The Commission shall meet at the call

17 of the Chair.

18 (f) QUORUM.—A majority of the members of the Com19 mission shall constitute a quorum, but a lesser number of

20 members may hold hearings.

21 (g) CHAIR AND VICE CHAIR.—The Commission shall

22 select a Chair and Vice Chair from among its members.

23 (h) DUTIES OF THE COMMISSION.—

24 (1) STUDY.—The Commission shall study—
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1 (A) the temporary assistance for needy fam2 ilies block grant program established under part

3 A of title IV of the Social Security Act, as

4 amended by section 2103 of this Act; and

5 (B) the funding formulas applied, the bonus

6 payments provided, and the work requirements

7 established under such program.

8 (2) REPORT.—Not later than September 1, 1998,

9 the Commission shall submit a report to the Congress

10 on the matters studied under paragraph (1).

11 (i) POWERS OF THE COMMISSION.—

12 (1) HEARINGS.—The Commission may hold such

13 hearings, sit and act at such times and places, take

14 such testimony, and receive such evidence as the Com15 mission considers advisable to carry out the purposes

16 of this section.

17 (2) INFORMATION FROM FEDERAL AGENCIES.—

18 The Commission may secure directly from any Fed19 eral department or agency such information as the

20 Commission considers necessary to carry out the pro21 visions of this section. Upon request of the Chair of

22 the Commission, the head of such department or agen23 cy shall furnish such information to the Commission.

24 (3) POSTAL SERVICES.—The Commission may

25 use the United States mails in the same manner and
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1 under the same conditions as other departments and

2 agencies of the Federal Government.

3 (4) GIFTS.—The Commission may accept, use,

4 and dispose of gifts or donations of services or prop5 erty.

6 (j) PERSONNEL MATTERS.—

7 (1) COMPENSATION OF MEMBERS.—Each mem8 ber of the Commission who is not an officer or em9 ployee of the Federal Government shall be com10 pensated at a rate equal to the daily equivalent of the

11 annual rate of basic pay prescribed for level IV of the

12 Executive Schedule under section 5315 of title 5,

13 United States Code, for each day (including travel

14 time) during which such member is engaged in the

15 performance of the duties of the Commission. All

16 members of the Commission who are officers or em17 ployees of the United States shall serve without com18 pensation in addition to that received for their serv19 ices as officers or employees of the United States.

20 (2) TRAVEL EXPENSES.—The members of the

21 Commission shall be allowed travel expenses, includ22 ing per diem in lieu of subsistence, at rates author23 ized for employees of agencies under subchapter I of

24 chapter 57 of title 5, United States Code, while away
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1 from their homes or regular places of business in the

2 performance of services for the Commission.

3 (3) STAFF.—

4 (A) IN GENERAL.—The Chair of the Com5 mission may, without regard to the civil service

6 laws and regulations, appoint and terminate an

7 executive director and such other additional per8 sonnel as may be necessary to enable the Com9 mission to perform its duties. The employment of

10 an executive director shall be subject to confirma11 tion by the Commission.

12 (B) COMPENSATION.—The Chair of the

13 Commission may fix the compensation of the ex14 ecutive director and other personnel without re15 gard to the provisions of chapter 51 and sub16 chapter III of chapter 53 of title 5, United States

17 Code, relating to classification of positions and

18 General Schedule pay rates, except that the rate

19 of pay for the executive director and other per20 sonnel may not exceed the rate payable for level

21 V of the Executive Schedule under section 5316

22 of such title.

23 (4) DETAIL OF GOVERNMENT EMPLOYEES.—Any

24 Federal Government employee may be detailed to the

25 Commission without reimbursement, and such detail
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1 shall be without interruption or loss of civil service

2 status or privilege.

3 (5) PROCUREMENT OF TEMPORARY AND INTER4 MITTENT SERVICES.—The Chair of the Commission

5 may procure temporary and intermittent services

6 under section 3109(b) of title 5, United States Code,

7 at rates for individuals which do not exceed the daily

8 equivalent of the annual rate of basic pay prescribed

9 for level V of the Executive Schedule under section

10 5316 of such title.

11 (k) TERMINATION OF THE COMMISSION.—The Com12 mission shall terminate not later than December 31, 1998.

13 (l) AUTHORIZATION OF APPROPRIATIONS.—There is

14 authorized to be appropriated to the Commission such sums

15 as are necessary to carry out the purposes of this section.

16 SEC. 2109. CONFORMING AMENDMENTS TO THE SOCIAL SE17 CURITY ACT.

18 (a) AMENDMENTS TO PART D OF TITLE IV.—

19 (1) Section 451 (42 U.S.C. 651) is amended by

20 striking ‘‘aid’’ and inserting ‘‘assistance under a

21 State program funded’’.

22 (2) Section 452(a)(10)(C) (42 U.S.C.

23 652(a)(10)(C)) is amended—
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1 (A) by striking ‘‘aid to families with de2 pendent children’’ and inserting ‘‘assistance

3 under a State program funded under part A’’;

4 (B) by striking ‘‘such aid’’ and inserting

5 ‘‘such assistance’’; and

6 (C) by striking ‘‘under section 402(a)(26)

7 or’’ and inserting ‘‘pursuant to section 408(a)(4)

8 or under section’’.

9 (3) Section 452(a)(10)(F) (42 U.S.C.

10 652(a)(10)(F)) is amended—

11 (A) by striking ‘‘aid under a State plan ap12 proved’’ and inserting ‘‘assistance under a State

13 program funded’’; and

14 (B) by striking ‘‘in accordance with the

15 standards referred to in section

16 402(a)(26)(B)(ii)’’ and inserting ‘‘by the State’’.

17 (4) Section 452(b) (42 U.S.C. 652(b)) is amend18 ed in the first sentence by striking ‘‘aid under the

19 State plan approved under part A’’ and inserting

20 ‘‘assistance under the State program funded under

21 part A’’.

22 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

23 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

24 and inserting ‘‘1115(b)’’.
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1 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

2 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

3 being paid under the State’s plan approved under

4 part A or E’’ and inserting ‘‘assistance is being pro5 vided under the State program funded under part A’’.

6 (7) Section 452(g)(2)(A) (42 U.S.C.

7 652(g)(2)(A)) is amended in the matter following

8 clause (iii) by striking ‘‘aid was being paid under the

9 State’s plan approved under part A or E’’ and insert10 ing ‘‘assistance was being provided under the State

11 program funded under part A’’.

12 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

13 amended in the matter following subparagraph (B)—

14 (A) by striking ‘‘who is a dependent child’’

15 and inserting ‘‘with respect to whom assistance

16 is being provided under the State program fund17 ed under part A’’;

18 (B) by inserting ‘‘by the State’’ after

19 ‘‘found’’; and

20 (C) by striking ‘‘to have good cause for re21 fusing to cooperate under section 402(a)(26)’’

22 and inserting ‘‘to qualify for a good cause or

23 other exception to cooperation pursuant to sec24 tion 454(29)’’.
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1 (9) Section 452(h) (42 U.S.C. 652(h)) is amend2 ed by striking ‘‘under section 402(a)(26)’’ and insert3 ing ‘‘pursuant to section 408(a)(4)’’.

4 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

5 amended by striking ‘‘aid under part A of this title’’

6 and inserting ‘‘assistance under a State program

7 funded under part A’’.

8 (11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is

9 amended—

10 (A) by striking ‘‘under section 402(a)(26)’’

11 and inserting ‘‘pursuant to section 408(a)(4)’’;

12 and

13 (B) by striking ‘‘; except that this para14 graph shall not apply to such payments for any

15 month following the first month in which the

16 amount collected is sufficient to make such fam17 ily ineligible for assistance under the State plan

18 approved under part A;’’ and inserting a

19 comma.

20 (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is

21 amended by striking ‘‘aid under a State plan ap22 proved’’ and inserting ‘‘assistance under a State pro23 gram funded’’.

24 (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is

25 amended by striking ‘‘under section 402(a)(26)’’.
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1 (14) Section 466(a)(3)(B) (42 U.S.C.

2 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’

3 and inserting ‘‘408(a)(3)’’.

4 (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

5 amended by striking ‘‘aid’’ and inserting ‘‘assistance

6 under a State program funded’’.

7 (16) Section 469(a) (42 U.S.C. 669(a)) is

8 amended—

9 (A) by striking ‘‘aid under plans approved’’

10 and inserting ‘‘assistance under State programs

11 funded’’; and

12 (B) by striking ‘‘such aid’’ and inserting

13 ‘‘such assistance’’.

14 (17) Section 472(c)(2) (42 U.S.C. 672(c)(2)) is

15 amended by striking ‘‘nonprofit’’.

16 (b) REPEAL OF PART F OF TITLE IV.—Part F of title

17 IV (42 U.S.C. 681–687) is repealed.

18 (c) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42

19 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to families

20 with dependent children under the State plan approved

21 under section 402 of this Act’’ and inserting ‘‘assistance

22 under a State program funded under part A of title IV’’.

23 (d) AMENDMENTS TO TITLE XI.—

24 (1) Section 1109 (42 U.S.C. 1309) is amended

25 by striking ‘‘or part A of title IV,’’.
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1 (2) Section 1115 (42 U.S.C. 1315) is amended—

2 (A) in subsection (a)(2)—

3 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

4 (ii) by striking ‘‘403,’’;

5 (iii) by striking the period at the end

6 and inserting ‘‘, and’’; and

7 (iv) by adding at the end the following

8 new subparagraph:

9 ‘‘(B) costs of such project which would not other10 wise be a permissible use of funds under part A of

11 title IV and which are not included as part of the

12 costs of projects under section 1110, shall to the extent

13 and for the period prescribed by the Secretary, be re14 garded as a permissible use of funds under such

15 part.’’; and

16 (B) in subsection (c)(3), by striking ‘‘the

17 program of aid to families with dependent chil18 dren’’ and inserting ‘‘part A of such title’’.

19 (3) Section 1116 (42 U.S.C. 1316) is amended—

20 (A) in each of subsections (a)(1), (b), and

21 (d), by striking ‘‘or part A of title IV,’’; and

22 (B) in subsection (a)(3), by striking ‘‘404,’’.

23 (4) Section 1118 (42 U.S.C. 1318) is amended—

24 (A) by striking ‘‘403(a),’’;
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1 (B) by striking ‘‘and part A of title IV,’’;

2 and

3 (C) by striking ‘‘, and shall, in the case of

4 American Samoa, mean 75 per centum with re5 spect to part A of title IV’’.

6 (5) Section 1119 (42 U.S.C. 1319) is amended—

7 (A) by striking ‘‘or part A of title IV’’; and

8 (B) by striking ‘‘403(a),’’.

9 (6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

10 amended by striking ‘‘or part A of title IV,’’.

11 (7) Section 1136 (42 U.S.C. 1320b–6) is re12 pealed.

13 (8) Section 1137 (42 U.S.C. 1320b–7) is amend14 ed—

15 (A) in subsection (b), by striking paragraph

16 (1) and inserting the following:

17 ‘‘(1) any State program funded under part A of

18 title IV of this Act;’’; and

19 (B) in subsection (d)(1)(B)—

20 (i) by striking ‘‘In this subsection—’’

21 and all that follows through ‘‘(ii) in’’ and

22 inserting ‘‘In this subsection, in’’;

23 (ii) by redesignating subclauses (I),

24 (II), and (III) as clauses (i), (ii), and (iii);

25 and
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1 (iii) by moving such redesignated ma2 terial 2 ems to the left.

3 (e) AMENDMENT TO TITLE XIV.—Section 1402(a)(7)

4 (42 U.S.C. 1352(a)(7)) is amended by striking ‘‘aid to fam5 ilies with dependent children under the State plan approved

6 under section 402 of this Act’’ and inserting ‘‘assistance

7 under a State program funded under part A of title IV’’.

8 (f) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

9 RESPECT TO THE TERRITORIES.—Section 1602(a)(11), as

10 in effect without regard to the amendment made by section

11 301 of the Social Security Amendments of 1972 (42 U.S.C.

12 1382 note), is amended by striking ‘‘aid under the State

13 plan approved’’ and inserting ‘‘assistance under a State

14 program funded’’.

15 (g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

16 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42

17 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

18 a State program funded under part A of title IV,’’.

19 (h) AMENDMENT TO TITLE XIX.—Section 1902(j) (42

20 U.S.C. 1396a(j)) is amended by striking ‘‘1108(c)’’ and in21 serting ‘‘1108(g)’’.
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1 SEC. 2110. CONFORMING AMENDMENTS TO THE FOOD

2 STAMP ACT OF 1977 AND RELATED PROVI3 SIONS.

4 (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C.

5 2014) is amended—

6 (1) in the second sentence of subsection (a), by

7 striking ‘‘plan approved’’ and all that follows through

8 ‘‘title IV of the Social Security Act’’ and inserting

9 ‘‘program funded under part A of title IV of the So10 cial Security Act (42 U.S.C. 601 et seq.)’’;

11 (2) in subsection (d)—

12 (A) in paragraph (5), by striking ‘‘assist13 ance to families with dependent children’’ and

14 inserting ‘‘assistance under a State program

15 funded’’; and

16 (B) by striking paragraph (13) and redesig17 nating paragraphs (14), (15), and (16) as para18 graphs (13), (14), and (15), respectively;

19 (3) in subsection (j), by striking ‘‘plan approved

20 under part A of title IV of such Act (42 U.S.C. 601

21 et seq.)’’ and inserting ‘‘program funded under part

22 A of title IV of the Act (42 U.S.C. 601 et seq.)’’; and

23 (4) by striking subsection (m) and redesignating

24 subsection (n), as added by section 1122, as subsection

25 (m).
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1 (b) Section 6 of such Act (7 U.S.C. 2015) is amend2 ed—

3 (1) in subsection (c)(5), by striking ‘‘the State

4 plan approved’’ and inserting ‘‘the State program

5 funded’’; and

6 (2) in subsection (e)(6), by striking ‘‘aid to fami7 lies with dependent children’’ and inserting ‘‘benefits

8 under a State program funded’’.

9 (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4))

10 is amended by striking ‘‘State plans under the Aid to Fami11 lies with Dependent Children Program under’’ and insert12 ing ‘‘State programs funded under part A of’’.

13 (d) Section 17(b)(3) of such Act (7 U.S.C. 2026(b)(3))

14 is amended by adding at the end the following new subpara15 graph:

16 ‘‘(I) The Secretary may not grant a waiver under this

17 paragraph on or after October 1, 1995. Any reference in

18 this paragraph to a provision of title IV of the Social Secu19 rity Act shall be deemed to be a reference to such provision

20 as in effect on September 30, 1995.’’.

21 (e) Section 20 of such Act (7 U.S.C. 2029) is amend22 ed—

23 (1) in subsection (a)(2)(B) by striking ‘‘operat24 ing—’’ and all that follows through ‘‘(ii) any other’’

25 and inserting ‘‘operating any’’; and
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1 (2) in subsection (b)—

2 (A) in paragraph (1)—

3 (i) by striking ‘‘(b)(1) A household’’

4 and inserting ‘‘(b) A household’’; and

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

6 ‘‘training program’’ and inserting ‘‘activ7 ity’’;

8 (B) by striking paragraph (2); and

9 (C) by redesignating subparagraphs (A)

10 through (F) as paragraphs (1) through (6), re11 spectively.

12 (f) Section 5(h)(1) of the Agriculture and Consumer

13 Protection Act of 1973 (Public Law 93–186; 7 U.S.C. 612c

14 note) is amended by striking ‘‘the program for aid to fami15 lies with dependent children’’ and inserting ‘‘the State pro16 gram funded’’.

17 (g) Section 9 of the National School Lunch Act (42

18 U.S.C. 1758) is amended—

19 (1) in subsection (b)—

20 (A) in paragraph (2)(B)(ii)(II), as amend21 ed by section 1202(b)—

22 (i) by striking ‘‘program for aid to

23 families with dependent children’’ and in24 serting ‘‘State program funded’’; and
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1 (ii) by inserting before the period at

2 the end the following: ‘‘(42 U.S.C. 601 et

3 seq.) that the Secretary determines complies

4 with standards established by the Secretary

5 that ensure that the standards under the

6 State program are comparable to or more

7 restrictive than those in effect on June 1,

8 1995’’; and

9 (B) in paragraph (6)—

10 (i) in subparagraph (A)(ii)—

11 (I) by striking ‘‘an AFDC assist12 ance unit (under the aid to families

13 with dependent children program au14 thorized’’ and inserting ‘‘a family

15 (under the State program funded’’; and

16 (II) by striking ‘‘, in a State’’

17 and all that follows through

18 ‘‘9902(2)))’’ and inserting ‘‘that the

19 Secretary determines complies with

20 standards established by the Secretary

21 that ensure that the standards under

22 the State program are comparable to

23 or more restrictive than those in effect

24 on June 1, 1995’’; and
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1 (ii) in subparagraph (B), by striking

2 ‘‘aid to families with dependent children’’

3 and inserting ‘‘assistance under the State

4 program funded under part A of title IV of

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

6 seq.) that the Secretary determines complies

7 with standards established by the Secretary

8 that ensure that the standards under the

9 State program are comparable to or more

10 restrictive than those in effect on June 1,

11 1995’’; and

12 (2) in subsection (d)(2)(C)—

13 (A) by striking ‘‘program for aid to families

14 with dependent children’’ and inserting ‘‘State

15 program funded’’; and

16 (B) by inserting before the period at the end

17 the following: ‘‘(42 U.S.C. 601 et seq.) that the

18 Secretary determines complies with standards es19 tablished by the Secretary that ensure that the

20 standards under the State program are com21 parable to or more restrictive than those in effect

22 on June 1, 1995’’.

23 (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition

24 Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—
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1 (1) by striking ‘‘program for aid to families with

2 dependent children established’’ and inserting ‘‘State

3 program funded’’; and

4 (2) by inserting before the semicolon the follow5 ing: ‘‘(42 U.S.C. 601 et seq.) that the Secretary deter6 mines complies with standards established by the Sec7 retary that ensure that the standards under the State

8 program are comparable to or more restrictive than

9 those in effect on June 1, 1995’’.

10 SEC. 2111. CONFORMING AMENDMENTS TO OTHER LAWS.

11 (a) Subsection (b) of section 508 of the Unemployment

12 Compensation Amendments of 1976 (42 U.S.C. 603a; Pub13 lic Law 94–566; 90 Stat. 2689) is amended to read as fol14 lows:

15 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX16 PENSES.—For purposes of section 455 of the Social Security

17 Act, expenses incurred to reimburse State employment of18 fices for furnishing information requested of such offices—

19 ‘‘(1) pursuant to the third sentence of section

20 3(a) of the Act entitled ‘An Act to provide for the es21 tablishment of a national employment system and for

22 cooperation with the States in the promotion of such

23 system, and for other purposes’, approved June 6,

24 1933 (29 U.S.C. 49b(a)), or
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1 ‘‘(2) by a State or local agency charged with the

2 duty of carrying a State plan for child support ap3 proved under part D of title IV of the Social Security

4 Act,

5 shall be considered to constitute expenses incurred in the

6 administration of such State plan.’’.

7 (b) Section 9121 of the Omnibus Budget Reconcili8 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

9 (c) Section 9122 of the Omnibus Budget Reconciliation

10 Act of 1987 (42 U.S.C. 602 note) is repealed.

11 (d) Section 221 of the Housing and Urban-Rural Re12 covery Act of 1983 (42 U.S.C. 602 note), relating to treat13 ment under AFDC of certain rental payments for federally

14 assisted housing, is repealed.

15 (e) Section 159 of the Tax Equity and Fiscal Respon16 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.

17 (f) Section 202(d) of the Social Security Amendments

18 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

19 (g) Section 903 of the Stewart B. McKinney Homeless

20 Assistance Amendments Act of 1988 (42 U.S.C. 11381 note),

21 relating to demonstration projects to reduce number of

22 AFDC families in welfare hotels, is amended—

23 (1) in subsection (a), by striking ‘‘aid to families

24 with dependent children under a State plan ap-
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1 proved’’ and inserting ‘‘assistance under a State pro2 gram funded’’; and

3 (2) in subsection (c), by striking ‘‘aid to families

4 with dependent children in the State under a State

5 plan approved’’ and inserting ‘‘assistance in the State

6 under a State program funded’’.

7 (h) The Higher Education Act of 1965 (20 U.S.C. 1001

8 et seq.) is amended—

9 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

10 23(c)(3)), by striking ‘‘(Aid to Families with Depend11 ent Children)’’; and

12 (2) in section 480(b)(2) (20 U.S.C.

13 1087vv(b)(2)), by striking ‘‘aid to families with de14 pendent children under a State plan approved’’ and

15 inserting ‘‘assistance under a State program funded’’.

16 (i) The Carl D. Perkins Vocational and Applied Tech17 nology Education Act (20 U.S.C. 2301 et seq.) is amend18 ed—

19 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

20 2341(d)(3)(A)(ii)), by striking ‘‘The program for aid

21 to dependent children’’ and inserting ‘‘The State pro22 gram funded’’;

23 (2) in section 232(b)(2)(B) (20 U.S.C.

24 2341a(b)(2)(B)), by striking ‘‘the program for aid to
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1 families with dependent children’’ and inserting ‘‘the

2 State program funded’’; and

3 (3) in section 521(14)(B)(iii) (20 U.S.C.

4 2471(14)(B)(iii)), by striking ‘‘the program for aid to

5 families with dependent children’’ and inserting ‘‘the

6 State program funded’’.

7 (j) The Elementary and Secondary Education Act of

8 1965 (20 U.S.C. 2701 et seq.) is amended—

9 (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)),

10 by striking ‘‘Aid to Families with Dependent Chil11 dren program’’ and inserting ‘‘State program funded

12 under part A of title IV of the Social Security Act’’;

13 (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)),

14 by striking ‘‘the program of aid to families with de15 pendent children under a State plan approved under’’

16 and inserting ‘‘a State program funded under part A

17 of’’; and

18 (3) in section 5203(b)(2) (20 U.S.C.

19 7233(b)(2))—

20 (A) in subparagraph (A)(xi), by striking

21 ‘‘Aid to Families with Dependent Children bene22 fits’’ and inserting ‘‘assistance under a State

23 program funded under part A of title IV of the

24 Social Security Act’’; and
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1 (B) in subparagraph (B)(viii), by striking

2 ‘‘Aid to Families with Dependent Children’’ and

3 inserting ‘‘assistance under the State program

4 funded under part A of title IV of the Social Se5 curity Act’’.

6 (k) The 4th proviso of chapter VII of title I of Public

7 Law 99–88 (25 U.S.C. 13d–1) is amended to read as fol8 lows: ‘‘Provided further, That general assistance payments

9 made by the Bureau of Indian Affairs shall be made—

10 ‘‘(1) after April 29, 1985, and before October 1,

11 1995, on the basis of Aid to Families with Dependent

12 Children (AFDC) standards of need; and

13 ‘‘(2) on and after October 1, 1995, on the basis

14 of standards of need established under the State pro15 gram funded under part A of title IV of the Social

16 Security Act,

17 except that where a State ratably reduces its AFDC or State

18 program payments, the Bureau shall reduce general assist19 ance payments in such State by the same percentage as the

20 State has reduced the AFDC or State program payment.’’.

21 (l) The Internal Revenue Code of 1986 (26 U.S.C. 1

22 et seq.) is amended—

23 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

24 striking all that follows ‘‘agency as’’ and inserting

25 ‘‘being eligible for financial assistance under part A
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1 of title IV of the Social Security Act and as having

2 continually received such financial assistance during

3 the 90-day period which immediately precedes the

4 date on which such individual is hired by the em5 ployer.’’;

6 (2) in section 3304(a)(16) (26 U.S.C.

7 3304(a)(16)), by striking ‘‘eligibility for aid or serv8 ices,’’ and all that follows through ‘‘children ap9 proved’’ and inserting ‘‘eligibility for assistance, or

10 the amount of such assistance, under a State program

11 funded’’;

12 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

13 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

14 dependent children provided under a State plan ap15 proved’’ and inserting ‘‘a State program funded’’;

16 (4) in section 6103(l)(10) (26 U.S.C.

17 6103(l)(10))—

18 (A) by striking ‘‘(c) or (d)’’ each place it

19 appears and inserting ‘‘(c), (d), or (e)’’; and

20 (B) by adding at the end of subparagraph

21 (B) the following new sentence: ‘‘Any return in22 formation disclosed with respect to section

23 6402(e) shall only be disclosed to officers and em24 ployees of the State agency requesting such infor25 mation.’’;
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1 (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)),

2 in the matter preceding subparagraph (A)—

3 (A) by striking ‘‘(5), (10)’’ and inserting

4 ‘‘(5)’’; and

5 (B) by striking ‘‘(9), or (12)’’ and inserting

6 ‘‘(9), (10), or (12)’’;

7 (6) in section 6334(a)(11)(A) (26 U.S.C.

8 6334(a)(11)(A)), by striking ‘‘(relating to aid to fam9 ilies with dependent children)’’;

10 (7) in section 6402 (26 U.S.C. 6402)—

11 (A) in subsection (a), by striking ‘‘(c) and

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

13 (B) by redesignating subsections (e) through

14 (i) as subsections (f) through (j), respectively;

15 and

16 (C) by inserting after subsection (d) the fol17 lowing:

18 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

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

20 overpayment to be refunded to the person making the over21 payment shall be reduced (after reductions pursuant to sub22 sections (c) and (d), but before a credit against future liabil23 ity for an internal revenue tax) in accordance with section

24 405(e) of the Social Security Act (concerning recovery of
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1 overpayments to individuals under State plans approved

2 under part A of title IV of such Act).’’; and

3 (8) in section 7523(b)(3)(C) (26 U.S.C.

4 7523(b)(3)(C)), by striking ‘‘aid to families with de5 pendent children’’ and inserting ‘‘assistance under a

6 State program funded under part A of title IV of the

7 Social Security Act’’.

8 (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C.

9 49b(b)) is amended by striking ‘‘State plan approved under

10 part A of title IV’’ and inserting ‘‘State program funded

11 under part A of title IV’’.

12 (n) The Job Training Partnership Act (29 U.S.C. 1501

13 et seq.) is amended—

14 (1) in section 4(29)(A)(i) (29 U.S.C.

15 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et seq.)’’;

16 (2) in section 106(b)(6)(C) (29 U.S.C.

17 1516(b)(6)(C)), by striking ‘‘State aid to families

18 with dependent children records,’’ and inserting

19 ‘‘records collected under the State program funded

20 under part A of title IV of the Social Security Act,’’;

21 (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—

22 (A) by striking ‘‘the JOBS program’’ and

23 inserting ‘‘the work activities required under

24 title IV of the Social Security Act’’; and

25 (B) by striking the second sentence;
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1 (4) in section 123(c) (29 U.S.C. 1533(c))—

2 (A) in paragraph (1)(E), by repealing

3 clause (vi); and

4 (B) in paragraph (2)(D), by repealing

5 clause (v);

6 (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)),

7 by striking ‘‘, including recipients under the JOBS

8 program’’;

9 (6) in subparagraphs (A) and (B) of section

10 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by

11 striking ‘‘(such as the JOBS program)’’ each place it

12 appears;

13 (7) in section 205(a) (29 U.S.C. 1605(a)), by

14 striking paragraph (4) and inserting the following:

15 ‘‘(4) the portions of title IV of the Social Secu16 rity Act relating to work activities;’’;

17 (8) in section 253 (29 U.S.C. 1632)—

18 (A) in subsection (b)(2), by repealing sub19 paragraph (C); and

20 (B) in paragraphs (1)(B) and (2)(B) of

21 subsection (c), by striking ‘‘the JOBS program

22 or’’ each place it appears;

23 (9) in section 264 (29 U.S.C. 1644)—
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1 (A) in subparagraphs (A) and (B) of sub2 section (b)(1), by striking ‘‘(such as the JOBS

3 program)’’ each place it appears; and

4 (B) in subparagraphs (A) and (B) of sub5 section (d)(3), by striking ‘‘and the JOBS pro6 gram’’ each place it appears;

7 (10) in section 265(b) (29 U.S.C. 1645(b)), by

8 striking paragraph (6) and inserting the following:

9 ‘‘(6) the portion of title IV of the Social Security

10 Act relating to work activities;’’;

11 (11) in the second sentence of section 429(e) (29

12 U.S.C. 1699(e)), by striking ‘‘and shall be in an

13 amount that does not exceed the maximum amount

14 that may be provided by the State pursuant to section

15 402(g)(1)(C) of the Social Security Act (42 U.S.C.

16 602(g)(1)(C))’’;

17 (12) in section 454(c) (29 U.S.C. 1734(c)), by

18 striking ‘‘JOBS and’’;

19 (13) in section 455(b) (29 U.S.C. 1735(b)), by

20 striking ‘‘the JOBS program,’’;

21 (14) in section 501(1) (29 U.S.C. 1791(1)), by

22 striking ‘‘aid to families with dependent children

23 under part A of title IV of the Social Security Act (42

24 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance under
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1 the State program funded under part A of title IV of

2 the Social Security Act’’;

3 (15) in section 506(1)(A) (29 U.S.C.

4 1791e(1)(A)), by striking ‘‘aid to families with de5 pendent children’’ and inserting ‘‘assistance under the

6 State program funded’’;

7 (16) in section 508(a)(2)(A) (29 U.S.C.

8 1791g(a)(2)(A)), by striking ‘‘aid to families with de9 pendent children’’ and inserting ‘‘assistance under the

10 State program funded’’; and

11 (17) in section 701(b)(2)(A) (29 U.S.C.

12 1792(b)(2)(A))—

13 (A) in clause (v), by striking the semicolon

14 and inserting ‘‘; and’’; and

15 (B) by striking clause (vi).

16 (o) Section 3803(c)(2)(C)(iv) of title 31, United States

17 Code, is amended to read as follows:

18 ‘‘(iv) assistance under a State program funded

19 under part A of title IV of the Social Security Act;’’.

20 (p) Section 2605(b)(2)(A)(i) of the Low-Income Home

21 Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i))

22 is amended to read as follows:

23 ‘‘(i) assistance under the State pro24 gram funded under part A of title IV of the

25 Social Security Act;’’.
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1 (q) Section 303(f)(2) of the Family Support Act of

2 1988 (42 U.S.C. 602 note) is amended—

3 (1) by striking ‘‘(A)’’; and

4 (2) by striking subparagraphs (B) and (C).

5 (r) The Balanced Budget and Emergency Deficit Con6 trol Act of 1985 (2 U.S.C. 900 et seq.) is amended—

7 (1) in the first section 255(h) (2 U.S.C. 905(h)),

8 by striking ‘‘Aid to families with dependent children

9 (75–0412–0–1–609);’’ and inserting ‘‘Block grants to

10 States for temporary assistance for needy families;’’;

11 and

12 (2) in section 256 (2 U.S.C. 906)—

13 (A) by striking subsection (k); and

14 (B) by redesignating subsection (l) as sub15 section (k).

16 (s) The Immigration and Nationality Act (8 U.S.C.

17 1101 et seq.) is amended—

18 (1) in section 210(f) (8 U.S.C. 1160(f)), by strik19 ing ‘‘aid under a State plan approved under’’ each

20 place it appears and inserting ‘‘assistance under a

21 State program funded under’’;

22 (2) in section 245A(h) (8 U.S.C. 1255a(h))—

23 (A) in paragraph (1)(A)(i), by striking

24 ‘‘program of aid to families with dependent chil-
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1 dren’’ and inserting ‘‘State program of assist2 ance’’; and

3 (B) in paragraph (2)(B), by striking ‘‘aid

4 to families with dependent children’’ and insert5 ing ‘‘assistance under a State program funded

6 under part A of title IV of the Social Security

7 Act’’; and

8 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by

9 striking ‘‘State plan approved’’ and inserting ‘‘State

10 program funded’’.

11 (t) Section 640(a)(4)(B)(i) of the Head Start Act (42

12 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘program

13 of aid to families with dependent children under a State

14 plan approved’’ and inserting ‘‘State program of assistance

15 funded’’.

16 (u) Section 9 of the Act of April 19, 1950 (64 Stat.

17 47, chapter 92; 25 U.S.C. 639) is repealed.

18 (v) Subparagraph (E) of section 213(d)(6) of the

19 School-To-Work Opportunities Act of 1994 (20 U.S.C.

20 6143(d)(6)) is amended to read as follows:

21 ‘‘(E) part A of title IV of the Social Secu22 rity Act (42 U.S.C. 601 et seq.) relating to work

23 activities;’’.

24 (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United

25 States Code, is amended by striking ‘‘section 464 or 1137
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1 of the Social Security Act’’ and inserting ‘‘section 404(e),

2 464, or 1137 of the Social Security Act’’.

3 SEC. 2112. DEVELOPMENT OF PROTOTYPE OF COUNTER4 FEIT-RESISTANT SOCIAL SECURITY CARD RE5 QUIRED.

6 (a) DEVELOPMENT.—

7 (1) IN GENERAL.—The Commissioner of Social

8 Security (in this section referred to as the ‘‘Commis9 sioner’’) shall, in accordance with this section, develop

10 a prototype of a counterfeit-resistant social security

11 card. Such prototype card shall—

12 (A) be made of a durable, tamper-resistant

13 material such as plastic or polyester,

14 (B) employ technologies that provide secu15 rity features, such as magnetic stripes,

16 holograms, and integrated circuits, and

17 (C) be developed so as to provide individ18 uals with reliable proof of citizenship or legal

19 resident alien status.

20 (2) ASSISTANCE BY ATTORNEY GENERAL.—The

21 Attorney General of the United States shall provide

22 such information and assistance as the Commissioner

23 deems necessary to enable the Commissioner to com24 ply with this section.

25 (b) STUDY AND REPORT.—
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1 (1) IN GENERAL.—The Commissioner shall con2 duct a study and issue a report to the Congress which

3 examines different methods of improving the social se4 curity card application process.

5 (2) ELEMENTS OF STUDY.—The study shall in6 clude an evaluation of the cost and work load impli7 cations of issuing a counterfeit-resistant social secu8 rity card for all individuals over a 3-, 5-, and 10-

9 year period. The study shall also evaluate the feasibil10 ity and cost implications of imposing a user fee for

11 replacement cards and cards issued to individuals

12 who apply for such a card prior to the scheduled 3-

13 , 5-, and 10-year phase-in options.

14 (3) DISTRIBUTION OF REPORT.—The Commis15 sioner shall submit copies of the report described in

16 this subsection along with a facsimile of the prototype

17 card as described in subsection (a) to the Committees

18 on Ways and Means and Judiciary of the House of

19 Representatives and the Committees on Finance and

20 Judiciary of the Senate within 1 year after the date

21 of the enactment of this Act.
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1 SEC. 2113. MODIFICATIONS TO THE JOB OPPORTUNITIES

2 FOR CERTAIN LOW-INCOME INDIVIDUALS

3 PROGRAM.

4 Section 505 of the Family Support Act of 1988 (42

5 U.S.C. 1315 note) is amended—

6 (1) in the heading, by striking ‘‘DEMONSTRA7 TION’’;

8 (2) by striking ‘‘demonstration’’ each place such

9 term appears;

10 (3) in subsection (a), by striking ‘‘in each of fis11 cal years’’ and all that follows through ‘‘10’’ and in12 serting ‘‘shall enter into agreements with’’;

13 (4) in subsection (b)(3), by striking ‘‘aid to fam14 ilies with dependent children under part A of title IV

15 of the Social Security Act’’ and inserting ‘‘assistance

16 under the program funded part A of title IV of the

17 Social Security Act of the State in which the individ18 ual resides’’;

19 (5) in subsection (c)—

20 (A) in paragraph (1)(C), by striking ‘‘aid

21 to families with dependent children under title

22 IV of the Social Security Act’’ and inserting ‘‘as23 sistance under a State program funded part A of

24 title IV of the Social Security Act’’; and

25 (B) in paragraph (2), by striking ‘‘aid to

26 families with dependent children under title IV
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1 of such Act’’ and inserting ‘‘assistance under a

2 State program funded part A of title IV of the

3 Social Security Act’’;

4 (6) in subsection (d), by striking ‘‘job opportuni5 ties and basic skills training program (as provided

6 for under title IV of the Social Security Act)’’ and in7 serting ‘‘the State program funded under part A of

8 title IV of the Social Security Act’’; and

9 (7) by striking subsections (e) through (g) and

10 inserting the following:

11 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the

12 purpose of conducting projects under this section, there is

13 authorized to be appropriated an amount not to exceed

14 $25,000,000 for any fiscal year.’’.

15 SEC. 2114. SECRETARIAL SUBMISSION OF LEGISLATIVE

16 PROPOSAL FOR TECHNICAL AND CONFORM17 ING AMENDMENTS.

18 Not later than 90 days after the date of the enactment

19 of this Act, the Secretary of Health and Human Services

20 and the Commissioner of Social Security, in consultation,

21 as appropriate, with the heads of other Federal agencies,

22 shall submit to the appropriate committees of the Congress

23 a legislative proposal proposing such technical and con24 forming amendments as are necessary to bring the law into

25 conformity with the policy embodied in this chapter.
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1 SEC. 2115. EFFECTIVE DATE; TRANSITION RULE.

2 (a) EFFECTIVE DATES.—

3 (1) IN GENERAL.—Except as otherwise provided

4 in this chapter, this chapter and the amendments

5 made by this chapter shall take effect on July 1, 1997.

6 (2) DELAYED EFFECTIVE DATE FOR CERTAIN

7 PROVISIONS.—Notwithstanding any other provision of

8 this section, paragraphs (2), (3), (4), (5), (8), and

9 (10) of section 409(a) and section 411(a) of the Social

10 Security Act (as added by the amendments made by

11 section 2103(a) of this Act) shall not take effect with

12 respect to a State until, and shall apply only with re13 spect to conduct that occurs on or after, the later of—

14 (A) July 1, 1997; or

15 (B) the date that is 6 months after the date

16 the Secretary of Health and Human Services re17 ceives from the State a plan described in section

18 402(a) of the Social Security Act (as added by

19 such amendment).

20 (3) ELIMINATION OF CHILD CARE PROGRAMS.—

21 The amendments made by section 2103(d) shall take

22 effect on October 1, 1996.

23 (4) DEFINITIONS APPLICABLE TO NEW CHILD

24 CARE ENTITLEMENT.—Sections 403(a)(1)(C),

25 403(a)(1)(D), and 419(4) of the Social Security Act,
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1 as added by the amendments made by section 2103(a)

2 of this Act, shall take effect on October 1, 1996.

3 (b) TRANSITION RULES.—Effective on the date of the

4 enactment of this Act:

5 (1) STATE OPTION TO ACCELERATE EFFECTIVE

6 DATE.—

7 (A) IN GENERAL.—If the Secretary of

8 Health and Human Services receives from a

9 State a plan described in section 402(a) of the

10 Social Security Act (as added by the amendment

11 made by section 2103(a)(1) of this Act), then—

12 (i) on and after the date of such re13 ceipt—

14 (I) except as provided in clause

15 (ii), this chapter and the amendments

16 made by this chapter (other than by

17 section 2103(d) of this Act) shall apply

18 with respect to the State; and

19 (II) the State shall be considered

20 an eligible State for purposes of part A

21 of title IV of the Social Security Act

22 (as in effect pursuant to the amend23 ments made by such section 2103(a));

24 and
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1 (ii) during the period that begins on

2 the date of such receipt and ends on June

3 30, 1997, there shall remain in effect with

4 respect to the State—

5 (I) section 403(h) of the Social

6 Security Act (as in effect on September

7 30, 1995); and

8 (II) all State reporting require9 ments under parts A and F of title IV

10 of the Social Security Act (as in effect

11 on September 30, 1995), modified by

12 the Secretary as appropriate, taking

13 into account the State program under

14 part A of title IV of the Social Secu15 rity Act (as in effect pursuant to the

16 amendments made by such section

17 2103(a)).

18 (B) LIMITATIONS ON FEDERAL OBLIGA19 TIONS.—

20 (i) UNDER AFDC PROGRAM.—The total

21 obligations of the Federal Government to a

22 State under part A of title IV of the Social

23 Security Act (as in effect on September 30,

24 1995) with respect to expenditures in fiscal
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1 year 1997 shall not exceed an amount equal

2 to the State family assistance grant.

3 (ii) UNDER TEMPORARY FAMILY AS4 SISTANCE PROGRAM.—Notwithstanding sec5 tion 403(a)(1) of the Social Security Act (as

6 in effect pursuant to the amendments made

7 by section 2103(a) of this Act), the total ob8 ligations of the Federal Government to a

9 State under such section 403(a)(1)—

10 (I) for fiscal year 1996, shall be

11 an amount equal to—

12 (aa) the State family assist13 ance grant; multiplied by

(bb) 1 14 ⁄366 of the number of

15 days during the period that begins

16 on the date the Secretary of

17 Health and Human Services first

18 receives from the State a plan de19 scribed in section 402(a) of the

20 Social Security Act (as added by

21 the amendment made by section

22 2103(a)(1) of this Act) and ends

23 on September 30, 1996; and

24 (II) for fiscal year 1997, shall be

25 an amount equal to the lesser of—
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1 (aa) the amount (if any) by

2 which the State family assistance

3 grant exceeds the total obligations

4 of the Federal Government to the

5 State under part A of title IV of

6 the Social Security Act (as in ef7 fect on September 30, 1995) with

8 respect to expenditures in fiscal

9 year 1997; or

10 (bb) the State family assistance grant, multiplied by 1 11 ⁄365 of

12 the number of days during the pe13 riod that begins on October 1,

14 1996, or the date the Secretary of

15 Health and Human Services first

16 receives from the State a plan de17 scribed in section 402(a) of the

18 Social Security Act (as added by

19 the amendment made by section

20 2103(a)(1) of this Act), whichever

21 is later, and ends on September

22 30, 1997.

23 (iii) CHILD CARE OBLIGATIONS EX24 CLUDED IN DETERMINING FEDERAL AFDC

25 OBLIGATIONS.—As used in this subpara-
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1 graph, the term ‘‘obligations of the Federal

2 Government to the State under part A of

3 title IV of the Social Security Act’’ does not

4 include any obligation of the Federal Gov5 ernment with respect to child care expendi6 tures by the State.

7 (C) SUBMISSION OF STATE PLAN FOR FIS8 CAL YEAR 1996 OR 1997 DEEMED ACCEPTANCE OF

9 GRANT LIMITATIONS AND FORMULA AND TERMI10 NATION OF AFDC ENTITLEMENT.—The submis11 sion of a plan by a State pursuant to subpara12 graph (A) is deemed to constitute—

13 (i) the State’s acceptance of the grant

14 reductions under subparagraph (B) (includ15 ing the formula for computing the amount

16 of the reduction); and

17 (ii) the termination of any entitlement

18 of any individual or family to benefits or

19 services under the State AFDC program.

20 (D) DEFINITIONS.—As used in this para21 graph:

22 (i) STATE AFDC PROGRAM.—The term

23 ‘‘State AFDC program’’ means the State

24 program under parts A and F of title IV of
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1 the Social Security Act (as in effect on Sep2 tember 30, 1995).

3 (ii) STATE.—The term ‘‘State’’ means

4 the 50 States and the District of Columbia.

5 (iii) STATE FAMILY ASSISTANCE

6 GRANT.—The term ‘‘State family assistance

7 grant’’ means the State family assistance

8 grant (as defined in section 403(a)(1)(B) of

9 the Social Security Act, as added by the

10 amendment made by section 2103(a)(1) of

11 this Act).

12 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The

13 amendments made by this chapter shall not apply

14 with respect to—

15 (A) powers, duties, functions, rights, claims,

16 penalties, or obligations applicable to aid, assist17 ance, or services provided before the effective date

18 of this chapter under the provisions amended;

19 and

20 (B) administrative actions and proceedings

21 commenced before such date, or authorized before

22 such date to be commenced, under such provi23 sions.

24 (3) CLOSING OUT ACCOUNT FOR THOSE PRO25 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED BY
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1 THIS CHAPTER.—In closing out accounts, Federal and

2 State officials may use scientifically acceptable statis3 tical sampling techniques. Claims made with respect

4 to State expenditures under a State plan approved

5 under part A of title IV of the Social Security Act (as

6 in effect on September 30, 1995) with respect to as7 sistance or services provided on or before September

8 30, 1995, shall be treated as claims with respect to ex9 penditures during fiscal year 1995 for purposes of re10 imbursement even if payment was made by a State

11 on or after October 1, 1995. Each State shall complete

12 the filing of all claims under the State plan (as so in

13 effect) within 2 years after the date of the enactment

14 of this Act. The head of each Federal department

15 shall—

16 (A) use the single audit procedure to review

17 and resolve any claims in connection with the

18 close out of programs under such State plans;

19 and

20 (B) reimburse States for any payments

21 made for assistance or services provided during

22 a prior fiscal year from funds for fiscal year

23 1995, rather than from funds authorized by this

24 chapter.
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1 (4) CONTINUANCE IN OFFICE OF ASSISTANT SEC2 RETARY FOR FAMILY SUPPORT.—The individual who,

3 on the day before the effective date of this chapter, is

4 serving as Assistant Secretary for Family Support

5 within the Department of Health and Human Serv6 ices shall, until a successor is appointed to such posi7 tion—

8 (A) continue to serve in such position; and

9 (B) except as otherwise provided by law—

10 (i) continue to perform the functions of

11 the Assistant Secretary for Family Support

12 under section 417 of the Social Security Act

13 (as in effect before such effective date); and

14 (ii) have the powers and duties of the

15 Assistant Secretary for Family Support

16 under section 416 of the Social Security Act

17 (as in effect pursuant to the amendment

18 made by section 2103(a)(1) of this Act).

19 (c) TERMINATION OF ENTITLEMENT UNDER AFDC

20 PROGRAM.—Effective October 1, 1996, no individual or

21 family shall be entitled to any benefits or services under

22 any State plan approved under part A or F of title IV of

23 the Social Security Act (as in effect on September 30, 1995).
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1 SEC. 2116. COMMUNITY STEERING COMMITTEES DEM2 ONSTRATION PROJECTS.

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

4 Human Services (in this section referred to as the ‘‘Sec5 retary’’) shall enter into agreements with not more than 5

6 States that submit an application under this section, in

7 such form and such manner as the Secretary may specify,

8 for the purpose of conducting a demonstration project de9 scribed in subsection (b).

10 (b) DESCRIPTION OF PROJECT.—

11 (1) ESTABLISHMENT.—A demonstration project

12 conducted under this section shall establish within a

13 State in each participating county a Community

14 Steering Committee that shall be designed to help re15 cipients of temporary assistance to needy families

16 under a State program under part A of title IV of the

17 Social Security Act who are parents move into the

18 non-subsidized workforce and to develop a holistic ap19 proach to the development needs of such recipient’s

20 family.

21 (2) MEMBERSHIP.—A Community Steering

22 Committee shall consist of local educators, business

23 representatives, and social service providers.

24 (3) GOALS AND DUTIES.—

25 (A) GOALS.—The goals of a Community

26 Steering Committee are—
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1 (i) to ensure that recipients of tem2 porary assistance to needy families who are

3 parents obtain and retain unsubsidized em4 ployment; and

5 (ii) to reduce the incidence of

6 intergenerational receipt of welfare assist7 ance by addressing the needs of children of

8 recipients of temporary assistance to needy

9 families.

10 (B) DUTIES.—A Community Steering Com11 mittee shall—

12 (i) identify and create unsubsidized

13 employment positions for recipients of tem14 porary assistance to needy families;

15 (ii) propose and implement solutions

16 to barriers to unsubsidized employment of

17 recipients of temporary assistance to needy

18 families;

19 (iii) assess the needs of children of re20 cipients of temporary assistance to needy

21 families; and

22 (iv) provide services that are designed

23 to ensure that children of recipients of tem24 porary assistance to needy families enter
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1 school ready to learn and that, once en2 rolled, such children stay in school.

3 (C) PRIMARY RESPONSIBILITY.—A primary

4 responsibility of a Community Steering Commit5 tee shall be to work on an ongoing basis with

6 parents who are recipients of temporary assist7 ance to needy families and who have obtained

8 nonsubsidized employment in order to ensure

9 that such recipients retain their employment. Ac10 tivities to carry out this responsibility may in11 clude—

12 (i) counseling;

13 (ii) emergency day care;

14 (iii) sick day care;

15 (iv) transportation;

16 (v) provision of clothing;

17 (vi) housing assistance; or

18 (vii) any other assistance that may be

19 necessary on an emergency and temporary

20 basis to ensure that such parents can man21 age the responsibility of being employed and

22 the demands of having a family.

23 (D) FOLLOW-UP SERVICES FOR CHIL24 DREN.—A Community Steering Committee may

25 provide special follow-up services for children of
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1 recipients of temporary assistance to needy fami2 lies that are designed to ensure that the children

3 reach their fullest potential and do not, as they

4 mature, receive welfare assistance as the head of

5 their own household.

6 (c) REPORT.—Not later than October 1, 2001, the Sec7 retary shall submit a report to the Congress on the results

8 of the demonstration projects conducted under this section.

9 SEC. 2117. DENIAL OF BENEFITS FOR CERTAIN DRUG RE10 LATED CONVICTIONS.

11 (a) IN GENERAL.—An individual convicted (under

12 Federal or State law) of any crime relating to the illegal

13 possession, use, or distribution of a drug shall not be eligible

14 for any Federal means-tested public benefit, as defined in

15 section 2403(c)(1) of this Act.

16 (b) FAMILY MEMBERS EXEMPT.—The prohibition con17 tained under subsection (a) shall not apply to the family

18 members or dependents of the convicted individual in a

19 manner that would make such family members or depend20 ents ineligible for welfare benefits that they would otherwise

21 be eligible for. Any benefits provided to family members or

22 dependents of a person described in subsection (a) shall be

23 reduced by the amount which would have otherwise been

24 made available to the convicted individual.
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1 (c) PERIOD OF PROHIBITION.—The prohibition under

2 subsection (a) shall apply—

3 (1) with respect to an individual convicted of a

4 misdemeanor, during the 5-year period beginning on

5 the date of the conviction or the 5-year period begin6 ning on January 1, 1997, whichever is later; and

7 (2) with respect to an individual convicted of a

8 felony, for the duration of the life of that individual.

9 (d) EXCEPTIONS.—Subsection (a) shall not apply with

10 respect to the following Federal benefits:

11 (1) Emergency medical services under title XV or

12 XIX of the Social Security Act.

13 (2) Short-term, non-cash, in-kind emergency dis14 aster relief.

15 (3)(A) Public health assistance for immuniza16 tions.

17 (B) Public health assistance for testing and

18 treatment of communicable diseases if the Secretary of

19 Health and Human Services determines that it is

20 necessary to prevent the spread of such disease.

21 (e) EFFECTIVE DATE.—The denial of Federal benefits

22 set forth in this section shall take effect for convictions oc23 curring after the date of enactment.

24 (f) REGULATIONS.—Not later than December 31, 1996,

25 the Attorney General shall promulgate regulations detailing
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1 the means by which Federal and State agencies, courts, and

2 law enforcement agencies will exchange and share the data

3 and information necessary to implement and enforce the

4 withholding of Federal benefits.

5 CHAPTER 2—SUPPLEMENTAL SECURITY

6 INCOME

7 SEC. 2200. REFERENCE TO SOCIAL SECURITY ACT.

8 Except as otherwise specifically provided, wherever in

9 this chapter an amendment is expressed in terms of an

10 amendment to or repeal of a section or other provision, the

11 reference shall be considered to be made to that section or

12 other provision of the Social Security Act.

13 Subchapter A—Eligibility Restrictions

14 SEC. 2201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI15 VIDUALS FOUND TO HAVE FRAUDULENTLY

16 MISREPRESENTED RESIDENCE IN ORDER TO

17 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

18 MORE STATES.

19 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

20 1382(e)), as amended by section 105(b)(4) of the Contract

21 with America Advancement Act of 1996, is amended by re22 designating paragraph (5) as paragraph (3) and by adding

23 at the end the following new paragraph:

24 ‘‘(4)(A) No person shall be considered an eligible indi25 vidual or eligible spouse for purposes of this title during
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1 the 10-year period that begins on the date the person is con2 victed in Federal or State court of having made a fraudu3 lent statement or representation with respect to the place

4 of residence of the person in order to receive assistance si5 multaneously from 2 or more States under programs that

6 are funded under title IV, title XV, title XIX, or the Food

7 Stamp Act of 1977, or benefits in 2 or more States under

8 the supplemental security income program under this title.

9 ‘‘(B) As soon as practicable after the conviction of a

10 person in a Federal or State court as described in subpara11 graph (A), an official of such court shall notify the Commis12 sioner of such conviction.’’.

13 (b) EFFECTIVE DATE.—The amendment made by this

14 section shall take effect on the date of the enactment of this

15 Act.

16 SEC. 2202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

17 AND PROBATION AND PAROLE VIOLATORS.

18 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

19 1382(e)), as amended by section 2201(a) of this Act, is

20 amended by adding at the end the following new paragraph:

21 ‘‘(5) No person shall be considered an eligible individ22 ual or eligible spouse for purposes of this title with respect

23 to any month if during such month the person is—

24 ‘‘(A) fleeing to avoid prosecution, or custody or

25 confinement after conviction, under the laws of the
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1 place from which the person flees, for a crime, or an

2 attempt to commit a crime, which is a felony under

3 the laws of the place from which the person flees, or

4 which, in the case of the State of New Jersey, is a

5 high misdemeanor under the laws of such State; or

6 ‘‘(B) violating a condition of probation or parole

7 imposed under Federal or State law.’’.

8 (b) EXCHANGE OF INFORMATION.—Section 1611(e) (42

9 U.S.C. 1382(e)), as amended by section 2201(a) of this Act

10 and subsection (a) of this section, is amended by adding

11 at the end the following new paragraph:

12 ‘‘(6) Notwithstanding any other provision of law

13 (other than section 6103 of the Internal Revenue Code of

14 1986), the Commissioner shall furnish any Federal, State,

15 or local law enforcement officer, upon the written request

16 of the officer, with the current address, Social Security

17 number, and photograph (if applicable) of any recipient of

18 benefits under this title, if the officer furnishes the Commis19 sioner with the name of the recipient, and other identifying

20 information as reasonably required by the Commissioner to

21 establish the unique identity of the recipient, and notifies

22 the Commissioner that—

23 ‘‘(A) the recipient—

24 ‘‘(i) is described in subparagraph (A) or

25 (B) of paragraph (5); or
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1 ‘‘(ii) has information that is necessary for

2 the officer to conduct the officer’s official duties;

3 and

4 ‘‘(B) the location or apprehension of the recipi5 ent is within the officer’s official duties.’’.

6 (c) EFFECTIVE DATE.—The amendments made by this

7 section shall take effect on the date of the enactment of this

8 Act.

9 SEC. 2203. TREATMENT OF PRISONERS.

10 (a) IMPLEMENTATION OF PROHIBITION AGAINST PAY11 MENT OF BENEFITS TO PRISONERS.—Section 1611(e)(1)

12 (42 U.S.C. 1382(e)(1)) is amended by adding at the end

13 the following new subparagraph:

14 ‘‘(I)(i) The Commissioner shall enter into a contract,

15 with any interested State or local institution referred to in

16 subparagraph (A), under which—

17 ‘‘(I) the institution shall provide to the Commis18 sioner, on a monthly basis, the names, social security

19 account numbers, dates of birth, and such other iden20 tifying information concerning the inmates of the in21 stitution as the Commissioner may require for the

22 purpose of carrying out paragraph (1); and

23 ‘‘(II) the Commissioner shall pay to any such in24 stitution, with respect to each inmate of the institu25 tion who is eligible for a benefit under this title for
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1 the month preceding the first month throughout which

2 such inmate is in such institution and becomes ineli3 gible for such benefit (or becomes eligible only for a

4 benefit payable at a reduced rate) as a result of the

5 application of this paragraph, an amount not to ex6 ceed $400 if the institution furnishes the information

7 described in subclause (I) to the Commissioner within

8 30 days after such individual becomes an inmate of

9 such institution, or an amount not to exceed $200 if

10 the institution furnishes such information after 30

11 days after such date but within 90 days after such

12 date.

13 ‘‘(ii) The provisions of section 552a of title 5, United

14 States Code, shall not apply to any agreement entered into

15 under clause (i) or to information exchanged pursuant to

16 such agreement.

17 ‘‘(iii) Payments to institutions required by clause

18 (i)(II) shall be made from funds otherwise available for the

19 payment of benefits under this title and shall be treated as

20 direct spending for purposes of the Balanced Budget and

21 Emergency Deficit Control Act of 1985.’’.

22 (b) DENIAL OF SSI BENEFITS FOR 10 YEARS TO A

23 PERSON FOUND TO HAVE FRAUDULENTLY OBTAINED SSI

24 BENEFITS WHILE IN PRISON.—
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1 (1) IN GENERAL.—Section 1611(e)(1) (42 U.S.C.

2 1382(e)(1)), as amended by subsection (a) of this sec3 tion, is amended by adding at the end the following

4 new subparagraph:

5 ‘‘(J) In any case in which the Commissioner of Social

6 Security finds that a person has made a fraudulent state7 ment or representation in order to obtain or to continue

8 to receive benefits under this title while being an inmate

9 in a penal institution, such person shall not be considered

10 an eligible individual or eligible spouse for any month end11 ing during the 10-year period beginning on the date on

12 which such person ceases being such an inmate.’’.

13 (2) EFFECTIVE DATE.—The amendment made by

14 this subsection shall apply with respect to statements

15 or representations made on or after the date of the en16 actment of this Act.

17 (c) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN

18 THE COLLECTION OF INFORMATION RESPECTING PUBLIC

19 INMATES.—

20 (1) STUDY.—The Commissioner of Social Secu21 rity shall conduct a study of the desirability, feasibil22 ity, and cost of—

23 (A) establishing a system under which Fed24 eral, State, and local courts would furnish to the

25 Commissioner such information respecting court
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1 orders by which individuals are confined in

2 jails, prisons, or other public penal, correctional,

3 or medical facilities as the Commissioner may

4 require for the purpose of carrying out section

5 1611(e)(1) of the Social Security Act; and

6 (B) requiring that State and local jails,

7 prisons, and other institutions that enter into

8 contracts with the Commissioner under section

9 1611(e)(1)(I) of the Social Security Act furnish

10 the information required by such contracts to the

11 Commissioner by means of an electronic or other

12 sophisticated data exchange system.

13 (2) REPORT.—Not later than 1 year after the

14 date of the enactment of this Act, the Commissioner

15 of Social Security shall submit a report on the results

16 of the study conducted pursuant to this subsection to

17 the Committee on Finance of the Senate and the Com18 mittee on Ways and Means of the House of Represent19 atives.

20 SEC. 2204. EFFECTIVE DATE OF APPLICATION FOR BENE21 FITS.

22 (a) IN GENERAL.—Subparagraphs (A) and (B) of sec23 tion 1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read

24 as follows:
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1 ‘‘(A) the first day of the month following the date

2 such application is filed, or

3 ‘‘(B) the first day of the month following the

4 date such individual becomes eligible for such benefits

5 with respect to such application.’’.

6 (b) SPECIAL RULE RELATING TO EMERGENCY AD7 VANCE PAYMENTS.—Section 1631(a)(4)(A) (42 U.S.C.

8 1383(a)(4)(A)) is amended—

9 (1) by inserting ‘‘for the month following the

10 date the application is filed’’ after ‘‘is presumptively

11 eligible for such benefits’’; and

12 (2) by inserting ‘‘, which shall be repaid through

13 proportionate reductions in such benefits over a pe14 riod of not more than 6 months’’ before the semicolon.

15 (c) CONFORMING AMENDMENTS.—

16 (1) Section 1614(b) (42 U.S.C. 1382c(b)) is

17 amended by striking ‘‘at the time the application or

18 request is filed’’ and inserting ‘‘on the first day of the

19 month following the date the application or request is

20 filed’’.

21 (2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is

22 amended by inserting ‘‘following the month’’ after

23 ‘‘beginning with the month’’.

24 (d) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—The amendments made by

2 this section shall apply to applications for benefits

3 under title XVI of the Social Security Act filed on or

4 after the date of the enactment of this Act, without re5 gard to whether regulations have been issued to imple6 ment such amendments.

7 (2) BENEFITS UNDER TITLE XVI.—For purposes

8 of this subsection, the term ‘‘benefits under title XVI

9 of the Social Security Act’’ includes supplementary

10 payments pursuant to an agreement for Federal ad11 ministration under section 1616(a) of the Social Se12 curity Act, and payments pursuant to an agreement

13 entered into under section 212(b) of Public Law 93–

14 66.

15 Subchapter B—Benefits for Disabled Children

16 SEC. 2211. DEFINITION AND ELIGIBILITY RULES.

17 (a) DEFINITION OF CHILDHOOD DISABILITY.—Section

18 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by section

19 105(b)(1) of the Contract with America Advancement Act

20 of 1996, is amended—

21 (1) in subparagraph (A), by striking ‘‘An indi22 vidual’’ and inserting ‘‘Except as provided in sub23 paragraph (C), an individual’’;

24 (2) in subparagraph (A), by striking ‘‘(or, in the

25 case of an individual under the age of 18, if he suffers
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1 from any medically determinable physical or mental

2 impairment of comparable severity)’’;

3 (3) by redesignating subparagraphs (C) through

4 (I) as subparagraphs (D) through (J), respectively;

5 (4) by inserting after subparagraph (B) the fol6 lowing new subparagraph:

7 ‘‘(C) An individual under the age of 18 shall be consid8 ered disabled for the purposes of this title if that individual

9 has a medically determinable physical or mental impair10 ment, which results in marked and severe functional limita11 tions, and which can be expected to result in death or which

12 has lasted or can be expected to last for a continuous period

13 of not less than 12 months. Notwithstanding the preceding

14 sentence, no individual under the age of 18 who engages

15 in substantial gainful activity (determined in accordance

16 with regulations prescribed pursuant to subparagraph (E))

17 may be considered to be disabled.’’; and

18 (5) in subparagraph (F), as redesignated by

19 paragraph (3), by striking ‘‘(D)’’ and inserting

20 ‘‘(E)’’.

21 (b) REQUEST FOR COMMENTS TO IMPROVE DISABILITY

22 EVALUATION.—Not later than 60 days after the date of the

23 enactment of this Act, and annually thereafter, the Commis24 sioner of Social Security shall issue a request for comments

25 in the Federal Register regarding improvements to the dis-
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1 ability evaluation and determination procedures for indi2 viduals under age 18 to ensure the comprehensive assess3 ment of such individuals, including—

4 (1) additions to conditions which should be pre5 sumptively disabling at birth or ages 0 through 3

6 years;

7 (2) specific changes in individual listings in the

8 Listing of Impairments set forth in appendix 1 of

9 subpart P of part 404 of title 20, Code of Federal

10 Regulations;

11 (3) improvements in regulations regarding deter12 minations based on regulations providing for medical

13 and functional equivalence to such Listing of Impair14 ments, and consideration of multiple impairments;

15 and

16 (4) any other changes to the disability deter17 mination procedures.

18 (c) CHANGES TO CHILDHOOD SSI REGULATIONS.—

19 (1) MODIFICATION TO MEDICAL CRITERIA FOR

20 EVALUATION OF MENTAL AND EMOTIONAL DIS21 ORDERS.—The Commissioner of Social Security shall

22 modify sections 112.00C.2. and 112.02B.2.c.(2) of ap23 pendix 1 to subpart P of part 404 of title 20, Code

24 of Federal Regulations, to eliminate references to
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1 maladaptive behavior in the domain of personal/

2 behavorial function.

3 (2) DISCONTINUANCE OF INDIVIDUALIZED FUNC4 TIONAL ASSESSMENT.—The Commissioner of Social

5 Security shall discontinue the individualized func6 tional assessment for children set forth in sections

7 416.924d and 416.924e of title 20, Code of Federal

8 Regulations.

9 (d) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT

10 APPLIES TO INDIVIDUALS UNDER THE AGE OF 18.—Sec11 tion 1614(a)(4) (42 U.S.C. 1382(a)(4)) is amended—

12 (1) by redesignating subclauses (I) and (II) of

13 clauses (i) and (ii) of subparagraph (B) as items (aa)

14 and (bb), respectively;

15 (2) by redesignating clauses (i) and (ii) of sub16 paragraphs (A) and (B) as subclauses (I) and (II),

17 respectively;

18 (3) by redesignating subparagraphs (A) through

19 (C) as clauses (i) through (iii), respectively;

20 (4) by inserting before clause (i) (as redesignated

21 by paragraph (3)) the following new subparagraph:

22 ‘‘(A) in the case of an individual who is age 18

23 or older—’’;
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1 (5) by inserting after and below subparagraph

2 (A)(iii) (as so redesignated) the following new sub3 paragraph:

4 ‘‘(B) in the case of an individual who is under

5 the age of 18—

6 ‘‘(i) substantial evidence which dem7 onstrates that there has been medical improve8 ment in the individual’s impairment or com9 bination of impairments, and that such impair10 ment or combination of impairments no longer

11 results in marked and severe functional limita12 tions; or

13 ‘‘(ii) substantial evidence which dem14 onstrates that, as determined on the basis of new

15 or improved diagnostic techniques or evalua16 tions, the individual’s impairment or combina17 tion of impairments, is not as disabling as it

18 was considered to be at the time of the most re19 cent prior decision that the individual was

20 under a disability or continued to be under a

21 disability, and such impairment or combination

22 of impairments does not result in marked and

23 severe functional limitations; or’’;

24 (6) by redesignating subparagraph (D) as sub25 paragraph (C) and by inserting in such subpara-
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1 graph ‘‘in the case of any individual,’’ before ‘‘sub2 stantial evidence’’; and

3 (7) in the first sentence following subparagraph

4 (C) (as redesignated by paragraph (6)), by—

5 (A) inserting ‘‘(i)’’ before ‘‘to restore’’; and

6 (B) inserting ‘‘, or (ii) in the case of an in7 dividual under the age of 18, to eliminate or im8 prove the individual’s impairment or combina9 tion of impairments so that it no longer results

10 in marked and severe functional limitations’’

11 immediately before the period.

12 (e) EFFECTIVE DATES, ETC.—

13 (1) EFFECTIVE DATES.—

14 (A) SUBSECTIONS (a) AND (c).—

15 (i) IN GENERAL.—The provisions of,

16 and amendments made by, subsections (a)

17 and (c) shall apply to any individual who

18 applies for, or whose claim is finally adju19 dicated with respect to, benefits under title

20 XVI of the Social Security Act on or after

21 the date of the enactment of this Act, with22 out regard to whether regulations have been

23 issued to implement such provisions and

24 amendments.
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1 (ii) DETERMINATION OF FINAL ADJU2 DICATION.—For purposes of clause (i), no

3 individual’s claim with respect to such ben4 efits may be considered to be finally adju5 dicated before such date of enactment if, on

6 or after such date, there is pending a re7 quest for either administrative or judicial

8 review with respect to such claim that has

9 been denied in whole, or there is pending,

10 with respect to such claim, readjudication

11 by the Commissioner of Social Security

12 pursuant to relief in a class action or im13 plementation by the Commissioner of a

14 court remand order.

15 (B) SUBSECTION (d).—The amendments

16 made by subsection (d) shall apply with respect

17 to benefits under title XVI of the Social Security

18 Act for months beginning on or after the date of

19 the enactment of this Act, without regard to

20 whether regulations have been issued to imple21 ment such amendments.

22 (2) APPLICATION TO CURRENT RECIPIENTS.—

23 (A) ELIGIBILITY REDETERMINATIONS.—

24 During the period beginning on the date of the

25 enactment of this Act and ending on the date
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1 which is 1 year after such date of enactment, the

2 Commissioner of Social Security shall redeter3 mine the eligibility of any individual under age

4 18 who is receiving supplemental security in5 come benefits by reason of disability under title

6 XVI of the Social Security Act as of the date of

7 the enactment of this Act and whose eligibility

8 for such benefits may terminate by reason of the

9 provisions of, or amendments made by, sub10 sections (a) and (c) of this section. With respect

11 to any redetermination under this subpara12 graph—

13 (i) section 1614(a)(4) of the Social Se14 curity Act (42 U.S.C. 1382c(a)(4)) shall not

15 apply;

16 (ii) the Commissioner of Social Secu17 rity shall apply the eligibility criteria for

18 new applicants for benefits under title XVI

19 of such Act;

20 (iii) the Commissioner shall give such

21 redetermination priority over all continuing

22 eligibility reviews and other reviews under

23 such title; and

24 (iv) such redetermination shall be

25 counted as a review or redetermination oth-
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1 erwise required to be made under section

2 208 of the Social Security Independence

3 and Program Improvements Act of 1994 or

4 any other provision of title XVI of the So5 cial Security Act.

6 (B) GRANDFATHER PROVISION.—The provi7 sions of, and amendments made by, subsections

8 (a) and (c) of this section, and the redetermina9 tion under subparagraph (A), shall only apply

10 with respect to the benefits of an individual de11 scribed in subparagraph (A) for months begin12 ning on or after the later of July 1, 1997, or the

13 date of the redetermination with respect to such

14 individual.

15 (C) NOTICE.—Not later than January 1,

16 1997, the Commissioner of Social Security shall

17 notify an individual described in subparagraph

18 (A) of the provisions of this paragraph.

19 (3) REPORT.—The Commissioner of Social Secu20 rity shall report to the Congress regarding the

21 progress made in implementing the provisions of, and

22 amendments made by, this section on child disability

23 evaluations not later than 180 days after the date of

24 the enactment of this Act.
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1 (4) REGULATIONS.—Notwithstanding any other

2 provision of law, the Commissioner of Social Security

3 shall submit for review to the committees of jurisdic4 tion in the Congress any final regulation pertaining

5 to the eligibility of individuals under age 18 for bene6 fits under title XVI of the Social Security Act at least

7 45 days before the effective date of such regulation.

8 The submission under this paragraph shall include

9 supporting documentation providing a cost analysis,

10 workload impact, and projections as to how the regu11 lation will effect the future number of recipients

12 under such title.

13 (5) APPROPRIATIONS.—

14 (A) IN GENERAL.—Out of any money in the

15 Treasury not otherwise appropriated, there are

16 authorized to be appropriated and are hereby

17 appropriated, to remain available without fiscal

18 year limitation, $200,000,000 for fiscal year

19 1997, $75,000,000 for fiscal year 1998, and

20 $25,000,000 for fiscal year 1999, for the Com21 missioner of Social Security to utilize only for

22 continuing disability reviews and redetermina23 tions under title XVI of the Social Security Act,

24 with reviews and redeterminations for individ-
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1 uals affected by the provisions of subsection (b)

2 given highest priority.

3 (B) ADDITIONAL FUNDS.—Amounts appro4 priated under subparagraph (A) shall be in ad5 dition to any funds otherwise appropriated for

6 continuing disability reviews and redetermina7 tions under title XVI of the Social Security Act.

8 (6) BENEFITS UNDER TITLE XVI.—For purposes

9 of this subsection, the term ‘‘benefits under title XVI

10 of the Social Security Act’’ includes supplementary

11 payments pursuant to an agreement for Federal ad12 ministration under section 1616(a) of the Social Se13 curity Act, and payments pursuant to an agreement

14 entered into under section 212(b) of Public Law 93–

15 66.

16 SEC. 2212. ELIGIBILITY REDETERMINATIONS AND CONTINU17 ING DISABILITY REVIEWS.

18 (a) CONTINUING DISABILITY REVIEWS RELATING TO

19 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

20 1382c(a)(3)(H)), as redesignated by section 2211(a)(3) of

21 this Act, is amended—

22 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

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

24 clause:
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1 ‘‘(ii)(I) Not less frequently than once every 3 years,

2 the Commissioner shall review in accordance with para3 graph (4) the continued eligibility for benefits under this

4 title of each individual who has not attained 18 years of

5 age and is eligible for such benefits by reason of an impair6 ment (or combination of impairments) which is likely to

7 improve (or, at the option of the Commissioner, which is

8 unlikely to improve).

9 ‘‘(II) A representative payee of a recipient whose case

10 is reviewed under this clause shall present, at the time of

11 review, evidence demonstrating that the recipient is, and

12 has been, receiving treatment, to the extent considered medi13 cally necessary and available, of the condition which was

14 the basis for providing benefits under this title.

15 ‘‘(III) If the representative payee refuses to comply

16 without good cause with the requirements of subclause (II),

17 the Commissioner of Social Security shall, if the Commis18 sioner determines it is in the best interest of the individual,

19 promptly suspend payment of benefits to the representative

20 payee, and provide for payment of benefits to an alternative

21 representative payee of the individual or, if the interest of

22 the individual under this title would be served thereby, to

23 the individual.

24 ‘‘(IV) Subclause (II) shall not apply to the representa25 tive payee of any individual with respect to whom the Com-
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1 missioner determines such application would be inappro2 priate or unnecessary. In making such determination, the

3 Commissioner shall take into consideration the nature of

4 the individual’s impairment (or combination of impair5 ments). Section 1631(c) shall not apply to a finding by the

6 Commissioner that the requirements of subclause (II) should

7 not apply to an individual’s representative payee.’’.

8 (b) DISABILITY ELIGIBILITY REDETERMINATIONS RE9 QUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS OF

10 AGE.—

11 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

12 U.S.C. 1382c(a)(3)(H)), as amended by subsection (a)

13 of this section, is amended by adding at the end the

14 following new clause:

15 ‘‘(iii) If an individual is eligible for benefits under this

16 title by reason of disability for the month preceding the

17 month in which the individual attains the age of 18 years,

18 the Commissioner shall redetermine such eligibility—

19 ‘‘(I) during the 1-year period beginning on the

20 individual’s 18th birthday; and

21 ‘‘(II) by applying the criteria used in determin22 ing the initial eligibility for applicants who are age

23 18 or older.

24 With respect to a redetermination under this clause, para25 graph (4) shall not apply and such redetermination shall
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1 be considered a substitute for a review or redetermination

2 otherwise required under any other provision of this sub3 paragraph during that 1-year period.’’.

4 (2) CONFORMING REPEAL.—Section 207 of the

5 Social Security Independence and Program Improve6 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

7 1516) is hereby repealed.

8 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

9 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H) (42

10 U.S.C. 1382c(a)(3)(H)), as amended by subsections (a) and

11 (b) of this section, is amended by adding at the end the

12 following new clause:

13 ‘‘(iv)(I) Not later than 12 months after the birth of

14 an individual, the Commissioner shall review in accordance

15 with paragraph (4) the continuing eligibility for benefits

16 under this title by reason of disability of such individual

17 whose low birth weight is a contributing factor material

18 to the Commissioner’s determination that the individual is

19 disabled.

20 ‘‘(II) A review under subclause (I) shall be considered

21 a substitute for a review otherwise required under any other

22 provision of this subparagraph during that 12-month pe23 riod.

24 ‘‘(III) A representative payee of a recipient whose case

25 is reviewed under this clause shall present, at the time of
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1 review, evidence demonstrating that the recipient is, and

2 has been, receiving treatment, to the extent considered medi3 cally necessary and available, of the condition which was

4 the basis for providing benefits under this title.

5 ‘‘(IV) If the representative payee refuses to comply

6 without good cause with the requirements of subclause (III),

7 the Commissioner of Social Security shall, if the Commis8 sioner determines it is in the best interest of the individual,

9 promptly suspend payment of benefits to the representative

10 payee, and provide for payment of benefits to an alternative

11 representative payee of the individual or, if the interest of

12 the individual under this title would be served thereby, to

13 the individual.

14 ‘‘(V) Subclause (III) shall not apply to the representa15 tive payee of any individual with respect to whom the Com16 missioner determines such application would be inappro17 priate or unnecessary. In making such determination, the

18 Commissioner shall take into consideration the nature of

19 the individual’s impairment (or combination of impair20 ments). Section 1631(c) shall not apply to a finding by the

21 Commissioner that the requirements of subclause (III)

22 should not apply to an individual’s representative payee.’’.

23 (d) EFFECTIVE DATE.—The amendments made by this

24 section shall apply to benefits for months beginning on or

25 after the date of the enactment of this Act, without regard
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1 to whether regulations have been issued to implement such

2 amendments.

3 SEC. 2213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

4 (a) REQUIREMENT TO ESTABLISH ACCOUNT.—Section

5 1631(a)(2) (42 U.S.C. 1383(a)(2)) is amended—

6 (1) by redesignating subparagraphs (F) and (G)

7 as subparagraphs (G) and (H), respectively; and

8 (2) by inserting after subparagraph (E) the fol9 lowing new subparagraph:

10 ‘‘(F)(i)(I) Each representative payee of an eligible in11 dividual under the age of 18 who is eligible for the payment

12 of benefits described in subclause (II) shall establish on be13 half of such individual an account in a financial institu14 tion into which such benefits shall be paid, and shall there15 after maintain such account for use in accordance with

16 clause (ii).

17 ‘‘(II) Benefits described in this subclause are past-due

18 monthly benefits under this title (which, for purposes of this

19 subclause, include State supplementary payments made by

20 the Commissioner pursuant to an agreement under section

21 1616 or section 212(b) of Public Law 93–66) in an amount

22 (after any withholding by the Commissioner for reimburse23 ment to a State for interim assistance under subsection (g))

24 that exceeds the product of—

25 ‘‘(aa) 6, and
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1 ‘‘(bb) the maximum monthly benefit payable

2 under this title to an eligible individual.

3 ‘‘(ii)(I) A representative payee may use funds in the

4 account established under clause (i) to pay for allowable

5 expenses described in subclause (II).

6 ‘‘(II) An allowable expense described in this subclause

7 is an expense for—

8 ‘‘(aa) education or job skills training;

9 ‘‘(bb) personal needs assistance;

10 ‘‘(cc) special equipment;

11 ‘‘(dd) housing modification;

12 ‘‘(ee) medical treatment;

13 ‘‘(ff) therapy or rehabilitation; or

14 ‘‘(gg) any other item or service that the Commis15 sioner determines to be appropriate:

16 Provided, That such expense benefits such individual and,

17 in the case of an expense described in item (cc), (dd), (ff),

18 or (gg), is related to the impairment (or combination of

19 impairments) of such individual.

20 ‘‘(III) The use of funds from an account established

21 under clause (i) in any manner not authorized by this

22 clause—

23 ‘‘(aa) by a representative payee shall be consid24 ered a misapplication of benefits for all purposes of

25 this paragraph, and any representative payee who
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1 knowingly misapplies benefits from such an account

2 shall be liable to the Commissioner in an amount

3 equal to the total amount of such benefits; and

4 ‘‘(bb) by an eligible individual who is his or her

5 own payee shall be considered a misapplication of

6 benefits for all purposes of this paragraph and the

7 total amount of such benefits so used shall be consid8 ered to be the uncompensated value of a disposed re9 source and shall be subject to the provisions of section

10 1613(c).

11 ‘‘(IV) This clause shall continue to apply to funds in

12 the account after the child has reached age 18, regardless

13 of whether benefits are paid directly to the beneficiary or

14 through a representative payee.

15 ‘‘(iii) The representative payee may deposit into the

16 account established pursuant to clause (i)—

17 ‘‘(I) past-due benefits payable to the eligible in18 dividual in an amount less than that specified in

19 clause (i)(II), and

20 ‘‘(II) any other funds representing an underpay21 ment under this title to such individual, provided

22 that the amount of such underpayment is equal to or

23 exceeds the maximum monthly benefit payable under

24 this title to an eligible individual.
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1 ‘‘(iv) The Commissioner of Social Security shall estab2 lish a system for accountability monitoring whereby such

3 representative payee shall report, at such time and in such

4 manner as the Commissioner shall require, on activity re5 specting funds in the account established pursuant to clause

6 (i).’’.

7 (b) CONFORMING AMENDMENTS.—

8 (1) EXCLUSION FROM RESOURCES.—Section

9 1613(a) (42 U.S.C. 1382b(a)) is amended—

10 (A) by striking ‘‘and’’ at the end of para11 graph (10);

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

13 paragraph (11) and inserting ‘‘; and’’; and

14 (C) by inserting after paragraph (11) the

15 following new paragraph:

16 ‘‘(12) any account, including accrued interest or

17 other earnings thereon, established and maintained in

18 accordance with section 1631(a)(2)(F).’’.

19 (2) EXCLUSION FROM INCOME.—Section 1612(b)

20 (42 U.S.C. 1382a(b)) is amended—

21 (A) by striking ‘‘and’’ at the end of para22 graph (19);

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

24 paragraph (20) and inserting ‘‘; and’’; and
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1 (C) by adding at the end the following new

2 paragraph:

3 ‘‘(21) the interest or other earnings on any ac4 count established and maintained in accordance with

5 section 1631(a)(2)(F).’’.

6 (c) EFFECTIVE DATE.—The amendments made

7 by this section shall apply to payments made after

8 the date of the enactment of this Act.

9 SEC. 2214. REDUCTION IN CASH BENEFITS PAYABLE TO IN10 STITUTIONALIZED INDIVIDUALS WHOSE MED11 ICAL COSTS ARE COVERED BY PRIVATE IN12 SURANCE.

13 (a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.

14 1382(e)(1)(B)) is amended—

15 (1) by striking ‘‘title XIX, or’’ and inserting

16 ‘‘title XV or XIX,’’; and

17 (2) by inserting ‘‘or, in the case of an eligible in18 dividual under the age of 18, receiving payments

19 (with respect to such individual) under any health in20 surance policy issued by a private provider of such

21 insurance’’ after ‘‘section 1614(f)(2)(B),’’.

22 (b) EFFECTIVE DATE.—The amendment made by this

23 section shall apply to benefits for months beginning 90 or

24 more days after the date of the enactment of this Act, with-
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1 out regard to whether regulations have been issued to imple2 ment such amendments.

3 SEC. 2215. REGULATIONS.

4 Within 3 months after the date of the enactment of this

5 Act, the Commissioner of Social Security shall prescribe

6 such regulations as may be necessary to implement the

7 amendments made by this subchapter.

8 Subchapter C—Additional Enforcement

9 Provision

10 SEC. 2221. INSTALLMENT PAYMENT OF LARGE PAST-DUE

11 SUPPLEMENTAL SECURITY INCOME BENE12 FITS.

13 (a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383)

14 is amended by adding at the end the following new para15 graph:

16 ‘‘(10)(A) If an individual is eligible for past-due

17 monthly benefits under this title in an amount that (after

18 any withholding for reimbursement to a State for interim

19 assistance under subsection (g)) equals or exceeds the prod20 uct of—

21 ‘‘(i) 12, and

22 ‘‘(ii) the maximum monthly benefit payable

23 under this title to an eligible individual (or, if appro24 priate, to an eligible individual and eligible spouse),
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1 then the payment of such past-due benefits (after any such

2 reimbursement to a State) shall be made in installments

3 as provided in subparagraph (B).

4 ‘‘(B)(i) The payment of past-due benefits subject to this

5 subparagraph shall be made in not to exceed 3 installments

6 that are made at 6-month intervals.

7 ‘‘(ii) Except as provided in clause (iii), the amount

8 of each of the first and second installments may not exceed

9 an amount equal to the product of clauses (i) and (ii) of

10 subparagraph (A).

11 ‘‘(iii) In the case of an individual who has—

12 ‘‘(I) outstanding debt attributable to—

13 ‘‘(aa) food,

14 ‘‘(bb) clothing,

15 ‘‘(cc) shelter, or

16 ‘‘(dd) medically necessary services, supplies

17 or equipment, or medicine; or

18 ‘‘(II) current expenses or expenses anticipated in

19 the near term attributable to—

20 ‘‘(aa) medically necessary services, supplies

21 or equipment, or medicine, or

22 ‘‘(bb) the purchase of a home, and

23 such debt or expenses are not subject to reimbursement by

24 a public assistance program, the Secretary under title

25 XVIII, a State plan approved under title XV or XIX, or
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1 any private entity legally liable to provide payment pursu2 ant to an insurance policy, pre-paid plan, or other arrange3 ment, the limitation specified in clause (ii) may be exceeded

4 by an amount equal to the total of such debt and expenses.

5 ‘‘(C) This paragraph shall not apply to any individual

6 who, at the time of the Commissioner’s determination that

7 such individual is eligible for the payment of past-due

8 monthly benefits under this title—

9 ‘‘(i) is afflicted with a medically determinable

10 impairment that is expected to result in death within

11 12 months; or

12 ‘‘(ii) is ineligible for benefits under this title and

13 the Commissioner determines that such individual is

14 likely to remain ineligible for the next 12 months.

15 ‘‘(D) For purposes of this paragraph, the term ‘benefits

16 under this title’ includes supplementary payments pursu17 ant to an agreement for Federal administration under sec18 tion 1616(a), and payments pursuant to an agreement en19 tered into under section 212(b) of Public Law 93–66.’’.

20 (b) CONFORMING AMENDMENT.—Section 1631(a)(1)

21 (42 U.S.C. 1383(a)(1)) is amended by inserting ‘‘(subject

22 to paragraph (10))’’ immediately before ‘‘in such install23 ments’’.

24 (c) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—The amendments made by

2 this section are effective with respect to past-due bene3 fits payable under title XVI of the Social Security Act

4 after the third month following the month in which

5 this Act is enacted.

6 (2) BENEFITS PAYABLE UNDER TITLE XVI.—For

7 purposes of this subsection, the term ‘‘benefits payable

8 under title XVI of the Social Security Act’’ includes

9 supplementary payments pursuant to an agreement

10 for Federal administration under section 1616(a) of

11 the Social Security Act, and payments pursuant to

12 an agreement entered into under section 212(b) of

13 Public Law 93–66.

14 SEC. 2222. REGULATIONS.

15 Within 3 months after the date of the enactment of this

16 Act, the Commissioner of Social Security shall prescribe

17 such regulations as may be necessary to implement the

18 amendments made by this subchapter.

19 Subchapter D—Studies Regarding

20 Supplemental Security Income Program

21 SEC. 2231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU22 RITY INCOME PROGRAM.

23 Title XVI (42 U.S.C. 1381 et seq.), as amended by sec24 tion 2201(c) of this Act, is amended by adding at the end

25 the following new section:
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1 ‘‘ANNUAL REPORT ON PROGRAM

2 ‘‘SEC. 1637. (a) Not later than May 30 of each year,

3 the Commissioner of Social Security shall prepare and de4 liver a report annually to the President and the Congress

5 regarding the program under this title, including—

6 ‘‘(1) a comprehensive description of the program;

7 ‘‘(2) historical and current data on allowances

8 and denials, including number of applications and

9 allowance rates for initial determinations, reconsider10 ation determinations, administrative law judge hear11 ings, appeals council reviews, and Federal court deci12 sions;

13 ‘‘(3) historical and current data on characteris14 tics of recipients and program costs, by recipient

15 group (aged, blind, disabled adults, and disabled chil16 dren);

17 ‘‘(4) historical and current data on prior enroll18 ment by recipients in public benefit programs, includ19 ing State programs funded under part A of title IV

20 of the Social Security Act and State general assist21 ance programs;

22 ‘‘(5) projections of future number of recipients

23 and program costs, through at least 25 years;
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1 ‘‘(6) number of redeterminations and continuing

2 disability reviews, and the outcomes of such redeter3 minations and reviews;

4 ‘‘(7) data on the utilization of work incentives;

5 ‘‘(8) detailed information on administrative and

6 other program operation costs;

7 ‘‘(9) summaries of relevant research undertaken

8 by the Social Security Administration, or by other re9 searchers;

10 ‘‘(10) State supplementation program oper11 ations;

12 ‘‘(11) a historical summary of statutory changes

13 to this title; and

14 ‘‘(12) such other information as the Commis15 sioner deems useful.

16 ‘‘(b) Each member of the Social Security Advisory

17 Board shall be permitted to provide an individual report,

18 or a joint report if agreed, of views of the program under

19 this title, to be included in the annual report required under

20 this section.’’.

21 SEC. 2232. STUDY BY GENERAL ACCOUNTING OFFICE.

22 Not later than January 1, 1999, the Comptroller Gen23 eral of the United States shall study and report on—

24 (1) the impact of the amendments made by, and

25 the provisions of, this chapter on the supplemental se-
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1 curity income program under title XVI of the Social

2 Security Act; and

3 (2) extra expenses incurred by families of chil4 dren receiving benefits under such title that are not

5 covered by other Federal, State, or local programs.

6 CHAPTER 3—CHILD SUPPORT

7 SEC. 2300. REFERENCE TO SOCIAL SECURITY ACT.

8 Except as otherwise specifically provided, wherever in

9 this chapter an amendment is expressed in terms of an

10 amendment to or repeal of a section or other provision, the

11 reference shall be considered to be made to that section or

12 other provision of the Social Security Act.

13 Subchapter A—Eligibility for Services;

14 Distribution of Payments

15 SEC. 2301. STATE OBLIGATION TO PROVIDE CHILD SUP16 PORT ENFORCEMENT SERVICES.

17 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

18 U.S.C. 654) is amended—

19 (1) by striking paragraph (4) and inserting the

20 following new paragraph:

21 ‘‘(4) provide that the State will—

22 ‘‘(A) provide services relating to the estab23 lishment of paternity or the establishment, modi24 fication, or enforcement of child support obliga-
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1 tions, as appropriate, under the plan with re2 spect to—

3 ‘‘(i) each child for whom (I) assistance

4 is provided under the State program funded

5 under part A of this title, (II) benefits or

6 services for foster care maintenance are pro7 vided under the State program funded

8 under part E of this title, (III) medical as9 sistance is provided under the State plan

10 under title XV, or (IV) medical assistance is

11 provided under the State plan approved

12 under title XIX, unless, in accordance with

13 paragraph (29), good cause or other excep14 tions exist;

15 ‘‘(ii) any other child, if an individual

16 applies for such services with respect to the

17 child; and

18 ‘‘(B) enforce any support obligation estab19 lished with respect to—

20 ‘‘(i) a child with respect to whom the

21 State provides services under the plan; or

22 ‘‘(ii) the custodial parent of such a

23 child;’’; and

24 (2) in paragraph (6)—
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1 (A) by striking ‘‘provide that’’ and insert2 ing ‘‘provide that—’’;

3 (B) by striking subparagraph (A) and in4 serting the following new subparagraph:

5 ‘‘(A) services under the plan shall be made

6 available to residents of other States on the same

7 terms as to residents of the State submitting the

8 plan;’’;

9 (C) in subparagraph (B), by inserting ‘‘on

10 individuals not receiving assistance under any

11 State program funded under part A’’ after ‘‘such

12 services shall be imposed’’;

13 (D) in each of subparagraphs (B), (C), (D),

14 and (E)—

15 (i) by indenting the subparagraph in

16 the same manner as, and aligning the left

17 margin of the subparagraph with the left

18 margin of, the matter inserted by subpara19 graph (B) of this paragraph; and

20 (ii) by striking the final comma and

21 inserting a semicolon; and

22 (E) in subparagraph (E), by indenting each

23 of clauses (i) and (ii) 2 additional ems.

24 (b) CONTINUATION OF SERVICES FOR FAMILIES CEAS25 ING TO RECEIVE ASSISTANCE UNDER THE STATE PRO-
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1 GRAM FUNDED UNDER PART A.—Section 454 (42 U.S.C.

2 654) is amended—

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

4 (23);

5 (2) by striking the period at the end of para6 graph (24) and inserting ‘‘; and’’; and

7 (3) by adding after paragraph (24) the following

8 new paragraph:

9 ‘‘(25) provide that if a family with respect to

10 which services are provided under the plan ceases to

11 receive assistance under the State program funded

12 under part A, the State shall provide appropriate no13 tice to the family and continue to provide such serv14 ices, subject to the same conditions and on the same

15 basis as in the case of other individuals to whom serv16 ices are furnished under the plan, except that an ap17 plication or other request to continue services shall

18 not be required of such a family and paragraph

19 (6)(B) shall not apply to the family.’’.

20 (c) CONFORMING AMENDMENTS.—

21 (1) Section 452(b) (42 U.S.C. 652(b)) is amend22 ed by striking ‘‘454(6)’’ and inserting ‘‘454(4)’’.

23 (2) Section 452(g)(2)(A) (42 U.S.C.

24 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

25 place it appears and inserting ‘‘454(4)(A)(ii)’’.
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1 (3) Section 466(a)(3)(B) (42 U.S.C.

2 666(a)(3)(B)) is amended by striking ‘‘in the case of

3 overdue support which a State has agreed to collect

4 under section 454(6)’’ and inserting ‘‘in any other

5 case’’.

6 (4) Section 466(e) (42 U.S.C. 666(e)) is amended

7 by striking ‘‘paragraph (4) or (6) of section 454’’ and

8 inserting ‘‘section 454(4)’’.

9 SEC. 2302. DISTRIBUTION OF CHILD SUPPORT COLLEC10 TIONS.

11 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

12 amended to read as follows:

13 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

14 ‘‘(a) IN GENERAL.—Subject to subsection (e), an

15 amount collected on behalf of a family as support by a State

16 pursuant to a plan approved under this part shall be dis17 tributed as follows:

18 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

19 case of a family receiving assistance from the State,

20 the State shall—

21 ‘‘(A) pay to the Federal Government the

22 Federal share of the amount so collected; and

23 ‘‘(B) retain, or distribute to the family, the

24 State share of the amount so collected.
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1 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS2 SISTANCE.—In the case of a family that formerly re3 ceived assistance from the State:

4 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

5 the extent that the amount so collected does not

6 exceed the amount required to be paid to the

7 family for the month in which collected, the

8 State shall distribute the amount so collected to

9 the family.

10 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

11 extent that the amount so collected exceeds the

12 amount required to be paid to the family for the

13 month in which collected, the State shall distrib14 ute the amount so collected as follows:

15 ‘‘(i) DISTRIBUTION OF ARREARAGES

16 THAT ACCRUED AFTER THE FAMILY CEASED

17 TO RECEIVE ASSISTANCE.—

18 ‘‘(I) PRE-OCTOBER 1997.—Except

19 as provided in subclause (II), the pro20 visions of this section (other than sub21 section (b)(1)) as in effect and applied

22 on the day before the date of the enact23 ment of section 2302 of the Personal

24 Responsibility and Work Opportunity

25 Act of 1996 shall apply with respect to
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1 the distribution of support arrearages

2 that—

3 ‘‘(aa) accrued after the fam4 ily ceased to receive assistance,

5 and

6 ‘‘(bb) are collected before Oc7 tober 1, 1997.

8 ‘‘(II) POST-SEPTEMBER 1997.—

9 With respect to the amount so collected

10 on or after October 1, 1997 (or before

11 such date, at the option of the State)—

12 ‘‘(aa) IN GENERAL.—The

13 State shall first distribute the

14 amount so collected (other than

15 any amount described in clause

16 (iv)) to the family to the extent

17 necessary to satisfy any support

18 arrearages with respect to the

19 family that accrued after the fam20 ily ceased to receive assistance

21 from the State.

22 ‘‘(bb) REIMBURSEMENT OF

23 GOVERNMENTS FOR ASSISTANCE

24 PROVIDED TO THE FAMILY.—After

25 the application of division (aa)
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1 and clause (ii)(II)(aa) with re2 spect to the amount so collected,

3 the State shall retain the State

4 share of the amount so collected,

5 and pay to the Federal Govern6 ment the Federal share (as defined

7 in subsection (c)(2)) of the

8 amount so collected, but only to

9 the extent necessary to reimburse

10 amounts paid to the family as as11 sistance by the State.

12 ‘‘(cc) DISTRIBUTION OF THE

13 REMAINDER TO THE FAMILY.—To

14 the extent that neither division

15 (aa) nor division (bb) applies to

16 the amount so collected, the State

17 shall distribute the amount to the

18 family.

19 ‘‘(ii) DISTRIBUTION OF ARREARAGES

20 THAT ACCRUED BEFORE THE FAMILY RE21 CEIVED ASSISTANCE.—

22 ‘‘(I) PRE-OCTOBER 2000.—Except

23 as provided in subclause (II), the pro24 visions of this section (other than sub25 section (b)(1)) as in effect and applied
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1 on the day before the date of the enact2 ment of section 2302 of the Personal

3 Responsibility and Work Opportunity

4 Act of 1996 shall apply with respect to

5 the distribution of support arrearages

6 that—

7 ‘‘(aa) accrued before the fam8 ily received assistance, and

9 ‘‘(bb) are collected before Oc10 tober 1, 2000.

11 ‘‘(II) POST-SEPTEMBER 2000.—

12 Unless, based on the report required by

13 paragraph (4), the Congress determines

14 otherwise, with respect to the amount

15 so collected on or after October 1, 2000

16 (or before such date, at the option of

17 the State)—

18 ‘‘(aa) IN GENERAL.—The

19 State shall first distribute the

20 amount so collected (other than

21 any amount described in clause

22 (iv)) to the family to the extent

23 necessary to satisfy any support

24 arrearages with respect to the

25 family that accrued before the
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1 family received assistance from

2 the State.

3 ‘‘(bb) REIMBURSEMENT OF

4 GOVERNMENTS FOR ASSISTANCE

5 PROVIDED TO THE FAMILY.—After

6 the application of clause

7 (i)(II)(aa) and division (aa) with

8 respect to the amount so collected,

9 the State shall retain the State

10 share of the amount so collected,

11 and pay to the Federal Govern12 ment the Federal share (as defined

13 in subsection (c)(2)) of the

14 amount so collected, but only to

15 the extent necessary to reimburse

16 amounts paid to the family as as17 sistance by the State.

18 ‘‘(cc) DISTRIBUTION OF THE

19 REMAINDER TO THE FAMILY.—To

20 the extent that neither division

21 (aa) nor division (bb) applies to

22 the amount so collected, the State

23 shall distribute the amount to the

24 family.
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1 ‘‘(iii) DISTRIBUTION OF ARREARAGES

2 THAT ACCRUED WHILE THE FAMILY RE3 CEIVED ASSISTANCE.—In the case of a fam4 ily described in this subparagraph, the pro5 visions of paragraph (1) shall apply with

6 respect to the distribution of support arrear7 ages that accrued while the family received

8 assistance.

9 ‘‘(iv) AMOUNTS COLLECTED PURSUANT

10 TO SECTION 464.—Notwithstanding any

11 other provision of this section, any amount

12 of support collected pursuant to section 464

13 shall be retained by the State to the extent

14 past-due support has been assigned to the

15 State as a condition of receiving assistance

16 from the State, up to the amount necessary

17 to reimburse the State for amounts paid to

18 the family as assistance by the State. The

19 State shall pay to the Federal Government

20 the Federal share of the amounts so re21 tained. To the extent the amount collected

22 pursuant to section 464 exceeds the amount

23 so retained, the State shall distribute the ex24 cess to the family.
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1 ‘‘(v) ORDERING RULES FOR DISTRIBU2 TIONS.—For purposes of this subparagraph,

3 unless an earlier effective date is required

4 by this section, effective October 1, 2000, the

5 State shall treat any support arrearages

6 collected, except for amounts collected pur7 suant to section 464, as accruing in the fol8 lowing order:

9 ‘‘(I) To the period after the family

10 ceased to receive assistance.

11 ‘‘(II) To the period before the fam12 ily received assistance.

13 ‘‘(III) To the period while the

14 family was receiving assistance.

15 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST16 ANCE.—In the case of any other family, the State

17 shall distribute the amount so collected to the family.

18 ‘‘(4) FAMILIES UNDER CERTAIN AGREEMENTS.—

19 In the case of a family receiving assistance from an

20 Indian tribe, distribute the amount so collected pursu21 ant to an agreement entered into pursuant to a State

22 plan under section 454(33).

23 ‘‘(5) STUDY AND REPORT.—Not later than Octo24 ber 1, 1998, the Secretary shall report to the Congress

25 the Secretary’s findings with respect to—
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1 ‘‘(A) whether the distribution of post-assist2 ance arrearages to families has been effective in

3 moving people off of welfare and keeping them

4 off of welfare;

5 ‘‘(B) whether early implementation of a

6 pre-assistance arrearage program by some States

7 has been effective in moving people off of welfare

8 and keeping them off of welfare;

9 ‘‘(C) what the overall impact has been of the

10 amendments made by the Personal Responsibil11 ity and Work Opportunity Act of 1996 with re12 spect to child support enforcement in moving

13 people off of welfare and keeping them off of wel14 fare; and

15 ‘‘(D) based on the information and data the

16 Secretary has obtained, what changes, if any,

17 should be made in the policies related to the dis18 tribution of child support arrearages.

19 ‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights to

20 support obligations, which were assigned to a State as a

21 condition of receiving assistance from the State under part

22 A and which were in effect on the day before the date of

23 the enactment of the Personal Responsibility and Work Op24 portunity Act of 1996, shall remain assigned after such

25 date.
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1 ‘‘(c) DEFINITIONS.—As used in subsection (a):

2 ‘‘(1) ASSISTANCE.—The term ‘assistance from

3 the State’ means—

4 ‘‘(A) assistance under the State program

5 funded under part A or under the State plan ap6 proved under part A of this title (as in effect on

7 the day before the date of the enactment of the

8 Personal Responsibility and Work Opportunity

9 Act of 1996); and

10 ‘‘(B) foster care maintenance payments

11 under the State plan approved under part E of

12 this title.

13 ‘‘(2) FEDERAL SHARE.—The term ‘Federal share’

14 means that portion of the amount collected resulting

15 from the application of the Federal medical assistance

16 percentage in effect for the fiscal year in which the

17 amount is collected.

18 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT19 AGE.—The term ‘Federal medical assistance percent20 age’ means—

21 ‘‘(A) the Federal medical assistance percent22 age (as defined in section 1118), in the case of

23 Puerto Rico, the Virgin Islands, Guam, and

24 American Samoa; or
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1 ‘‘(B) the Federal medical assistance percent2 age (as defined in section 1905(b), as in effect on

3 September 30, 1996) in the case of any other

4 State.

5 ‘‘(4) STATE SHARE.—The term ‘State share’

6 means 100 percent minus the Federal share.

7 ‘‘(d) HOLD HARMLESS PROVISION.—If the amounts

8 collected which could be retained by the State in the fiscal

9 year (to the extent necessary to reimburse the State for

10 amounts paid to families as assistance by the State) are

11 less than the State share of the amounts collected in fiscal

12 year 1995 (determined in accordance with section 457 as

13 in effect on the day before the date of the enactment of the

14 Personal Responsibility and Work Opportunity Act of

15 1996), the State share for the fiscal year shall be an amount

16 equal to the State share in fiscal year 1995.

17 ‘‘(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBUTION

18 UNDER THIS SECTION.—At State option, this section shall

19 not apply to any amount collected on behalf of a family

20 as support by the State (and paid to the family in addition

21 to the amount of assistance otherwise payable to the family)

22 pursuant to a plan approved under this part if such

23 amount would have been paid to the family by the State

24 under section 402(a)(28), as in effect and applied on the

25 day before the date of the enactment of section 2302 of the
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1 Personal Responsibility and Work Opportunity Act of 1996.

2 For purposes of subsection (d), the State share of such

3 amount paid to the family shall be considered amounts

4 which could be retained by the State if such payments were

5 reported by the State as part of the State share of amounts

6 collected in fiscal year 1995.’’.

7 (b) CONFORMING AMENDMENTS.—

8 (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is

9 amended by striking ‘‘section 457(b)(4) or (d)(3)’’

10 and inserting ‘‘section 457’’.

11 (2) Section 454 (42 U.S.C. 654) is amended—

12 (A) in paragraph (11)—

13 (i) by striking ‘‘(11)’’ and inserting

14 ‘‘(11)(A)’’; and

15 (ii) by inserting after the semicolon

16 ‘‘and’’; and

17 (B) by redesignating paragraph (12) as

18 subparagraph (B) of paragraph (11).

19 (c) EFFECTIVE DATES.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall

22 be effective on October 1, 1996, or earlier at the

23 State’s option.
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1 (2) CONFORMING AMENDMENTS.—The amend2 ments made by subsection (b)(2) shall become effective

3 on the date of the enactment of this Act.

4 SEC. 2303. PRIVACY SAFEGUARDS.

5 (a) STATE PLAN REQUIREMENT.—Section 454 (42

6 U.S.C. 654), as amended by section 2301(b) of this Act, is

7 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 following

13 new paragraph:

14 ‘‘(26) will have in effect safeguards, applicable to

15 all confidential information handled by the State

16 agency, that are designed to protect the privacy rights

17 of the parties, including—

18 ‘‘(A) safeguards against unauthorized use or

19 disclosure of information relating to proceedings

20 or actions to establish paternity, or to establish

21 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 that

6 the release of the information may result in

7 physical or emotional harm to the former

8 party.’’.

9 (b) EFFECTIVE DATE.—The amendment made by sub10 section (a) shall become effective on October 1, 1997.

11 SEC. 2304. RIGHTS TO NOTIFICATION OF HEARINGS.

12 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

13 amended by section 2302(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 procedures

17 to require the State to provide individuals who are

18 applying for or receiving services under the State

19 plan, or who are parties to cases in which services are

20 being provided under the State plan—

21 ‘‘(A) with notice of all proceedings in which

22 support obligations might be established or modi23 fied; 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 deter5 mination;’’.

6 (b) EFFECTIVE DATE.—The amendment made by sub7 section (a) shall become effective on October 1, 1997.

8 Subchapter B—Locate and Case Tracking

9 SEC. 2311. STATE CASE REGISTRY.

10 Section 454A, as added by section 2344(a)(2) of this

11 Act, is amended by adding at the end the following new

12 subsections:

13 ‘‘(e) STATE CASE REGISTRY.—

14 ‘‘(1) CONTENTS.—The automated system re15 quired by this section shall include a registry (which

16 shall be known as the ‘State case registry’) that con17 tains records with respect to—

18 ‘‘(A) each case in which services are being

19 provided by the State agency under the State

20 plan approved under this part; and

21 ‘‘(B) each support order established or

22 modified in the State on or after October 1,

23 1998.

24 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The State

25 case registry may be established by linking local case
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1 registries of support orders through an automated in2 formation network, subject to this section.

3 ‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—

4 Such records shall use standardized data elements for

5 both parents (such as names, social security numbers

6 and other uniform identification numbers, dates of

7 birth, and case identification numbers), and contain

8 such other information (such as on case status) as the

9 Secretary may require.

10 ‘‘(4) PAYMENT RECORDS.—Each case record in

11 the State case registry with respect to which services

12 are being provided under the State plan approved

13 under this part and with respect to which a support

14 order has been established shall include a record of—

15 ‘‘(A) the amount of monthly (or other peri16 odic) support owed under the order, and other

17 amounts (including arrearages, interest or late

18 payment penalties, and fees) due or overdue

19 under the order;

20 ‘‘(B) any amount described in subpara21 graph (A) that has been collected;

22 ‘‘(C) the distribution of such collected

23 amounts;

24 ‘‘(D) the birth date of any child for whom

25 the order requires the provision of support; and
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1 ‘‘(E) the amount of any lien imposed with

2 respect to the order pursuant to section

3 466(a)(4).

4 ‘‘(5) UPDATING AND MONITORING.—The State

5 agency operating the automated system required by

6 this section shall promptly establish and update,

7 maintain, and regularly monitor, case records in the

8 State case registry with respect to which services are

9 being provided under the State plan approved under

10 this part, on the basis of—

11 ‘‘(A) information on administrative actions

12 and administrative and judicial proceedings and

13 orders relating to paternity and support;

14 ‘‘(B) information obtained from comparison

15 with Federal, State, or local sources of informa16 tion;

17 ‘‘(C) information on support collections and

18 distributions; and

19 ‘‘(D) any other relevant information.

20 ‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLO21 SURES OF INFORMATION.—The State shall use the auto22 mated system required by this section to extract informa23 tion from (at such times, and in such standardized format

24 or formats, as may be required by the Secretary), to share

25 and compare information with, and to receive information
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1 from, other data bases and information comparison serv2 ices, in order to obtain (or provide) information necessary

3 to enable the State agency (or the Secretary or other State

4 or Federal agencies) to carry out this part, subject to section

5 6103 of the Internal Revenue Code of 1986. Such informa6 tion comparison activities shall include the following:

7 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP8 PORT ORDERS.—Furnishing to the Federal Case Reg9 istry of Child Support Orders established under sec10 tion 453(h) (and update as necessary, with informa11 tion including notice of expiration of orders) the min12 imum amount of information on child support cases

13 recorded in the State case registry that is necessary

14 to operate the registry (as specified by the Secretary

15 in regulations).

16 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—Ex17 changing information with the Federal Parent Loca18 tor Service for the purposes specified in section 453.

19 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MED20 ICAID AGENCIES.—Exchanging information with

21 State agencies (of the State and of other States) ad22 ministering programs funded under part A, programs

23 operated under a State plan under title XV or a State

24 plan approved under title XIX, and other programs

25 designated by the Secretary, as necessary to perform
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1 State agency responsibilities under this part and

2 under such programs.

3 ‘‘(4) INTRASTATE AND INTERSTATE INFORMATION

4 COMPARISONS.—Exchanging information with other

5 agencies of the State, agencies of other States, and

6 interstate information networks, as necessary and ap7 propriate to carry out (or assist other States to carry

8 out) the purposes of this part.’’.

9 SEC. 2312. COLLECTION AND DISBURSEMENT OF SUPPORT

10 PAYMENTS.

11 (a) STATE PLAN REQUIREMENT.—Section 454 (42

12 U.S.C. 654), as amended by sections 2301(b) and 2303(a)

13 of this Act, is amended—

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

15 (25);

16 (2) by striking the period at the end of para17 graph (26) and inserting ‘‘; and’’; and

18 (3) by adding after paragraph (26) the following

19 new paragraph:

20 ‘‘(27) provide that, on and after October 1, 1998,

21 the State agency will—

22 ‘‘(A) operate a State disbursement unit in

23 accordance with section 454B; and

24 ‘‘(B) have sufficient State staff (consisting

25 of State employees) and (at State option) con-
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1 tractors reporting directly to the State agency

2 to—

3 ‘‘(i) monitor and enforce support col4 lections through the unit in cases being en5 forced by the State pursuant to section

6 454(4) (including carrying out the auto7 mated data processing responsibilities de8 scribed in section 454A(g)); and

9 ‘‘(ii) take the actions described in sec10 tion 466(c)(1) in appropriate cases.’’.

11 (b) ESTABLISHMENT OF STATE DISBURSEMENT

12 UNIT.—Part D of title IV (42 U.S.C. 651–669), as amended

13 by section 2344(a)(2) of this Act, is amended by inserting

14 after section 454A the following new section:

15 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP16 PORT PAYMENTS.

17 ‘‘(a) STATE DISBURSEMENT UNIT.—

18 ‘‘(1) IN GENERAL.—In order for a State to meet

19 the requirements of this section, the State agency

20 must establish and operate a unit (which shall be

21 known as the ‘State disbursement unit’) for the collec22 tion and disbursement of payments under support or23 ders—

24 ‘‘(A) in all cases being enforced by the State

25 pursuant to section 454(4); and
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1 ‘‘(B) in all cases not being enforced by the

2 State under this part in which the support order

3 is initially issued in the State on or after Janu4 ary 1, 1994, and in which the wages of the non5 custodial parent are subject to withholding pur6 suant to section 466(a)(8)(B).

7 ‘‘(2) OPERATION.—The State disbursement unit

8 shall be operated—

9 ‘‘(A) directly by the State agency (or 2 or

10 more State agencies under a regional cooperative

11 agreement), or (to the extent appropriate) by a

12 contractor responsible directly to the State agen13 cy; and

14 ‘‘(B) except in cases described in paragraph

15 (1)(B), in coordination with the automated sys16 tem established by the State pursuant to section

17 454A.

18 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

19 UNITS.—The State disbursement unit may be estab20 lished by linking local disbursement units through an

21 automated information network, subject to this sec22 tion, if the Secretary agrees that the system will not

23 cost more nor take more time to establish or operate

24 than a centralized system. In addition, employers
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1 shall be given 1 location to which income withholding

2 is sent.

3 ‘‘(b) REQUIRED PROCEDURES.—The State disburse4 ment unit shall use automated procedures, electronic proc5 esses, and computer-driven technology to the maximum ex6 tent feasible, efficient, and economical, for the collection and

7 disbursement of support payments, including procedures—

8 ‘‘(1) for receipt of payments from parents, em9 ployers, and other States, and for disbursements to

10 custodial parents and other obligees, the State agency,

11 and the agencies of other States;

12 ‘‘(2) for accurate identification of payments;

13 ‘‘(3) to ensure prompt disbursement of the custo14 dial parent’s share of any payment; and

15 ‘‘(4) to furnish to any parent, upon request,

16 timely information on the current status of support

17 payments under an order requiring payments to be

18 made by or to the parent.

19 ‘‘(c) TIMING OF DISBURSEMENTS.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), the State disbursement unit shall distribute

22 all amounts payable under section 457(a) within 2

23 business days after receipt from the employer or other

24 source of periodic income, if sufficient information

25 identifying the payee is provided.
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1 ‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—

2 The State disbursement unit may delay the distribu3 tion of collections toward arrearages until the resolu4 tion of any timely appeal with respect to such arrear5 ages.

6 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec7 tion, the term ‘business day’ means a day on which State

8 offices are open for regular business.’’.

9 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

10 added by section 2344(a)(2) and as amended by section

11 2311 of this Act, is amended by adding at the end the fol12 lowing new subsection:

13 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

14 PAYMENTS.—

15 ‘‘(1) IN GENERAL.—The State shall use the auto16 mated system required by this section, to the maxi17 mum extent feasible, to assist and facilitate the collec18 tion and disbursement of support payments through

19 the State disbursement unit operated under section

20 454B, through the performance of functions, includ21 ing, at a minimum—

22 ‘‘(A) transmission of orders and notices to

23 employers (and other debtors) for the withholding

24 of wages and other income—
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1 ‘‘(i) within 2 business days after re2 ceipt of notice of, and the income source

3 subject to, such withholding from a court,

4 another State, an employer, the Federal

5 Parent Locator Service, or another source

6 recognized by the State; and

7 ‘‘(ii) using uniform formats prescribed

8 by the Secretary;

9 ‘‘(B) ongoing monitoring to promptly iden10 tify failures to make timely payment of support;

11 and

12 ‘‘(C) automatic use of enforcement proce13 dures (including procedures authorized pursuant

14 to section 466(c)) if payments are not timely

15 made.

16 ‘‘(2) BUSINESS DAY DEFINED.—As used in para17 graph (1), the term ‘business day’ means a day on

18 which State offices are open for regular business.’’.

19 (d) EFFECTIVE DATES.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall

22 become effective on October 1, 1998.

23 (2) LIMITED EXCEPTION TO UNIT HANDLING PAY24 MENTS.—Notwithstanding section 454B(b)(1) of the

25 Social Security Act, as added by this section, any
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1 State which, as of the date of the enactment of this

2 Act, processes the receipt of child support payments

3 through local courts may, at the option of the State,

4 continue to process through September 30, 1999, such

5 payments through such courts as processed such pay6 ments on or before such date of enactment.

7 SEC. 2313. STATE DIRECTORY OF NEW HIRES.

8 (a) STATE PLAN REQUIREMENT.—Section 454 (42

9 U.S.C. 654), as amended by sections 2301(b), 2303(a) and

10 2312(a) of this Act, is amended—

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

12 (26);

13 (2) by striking the period at the end of para14 graph (27) and inserting ‘‘; and’’; and

15 (3) by adding after paragraph (27) the following

16 new paragraph:

17 ‘‘(28) provide that, on and after October 1, 1997,

18 the State will operate a State Directory of New Hires

19 in accordance with section 453A.’’.

20 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

21 title IV (42 U.S.C. 651–669) is amended by inserting after

22 section 453 the following new section:

23 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

24 ‘‘(a) ESTABLISHMENT.—

25 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) REQUIREMENT FOR STATES THAT

2 HAVE NO DIRECTORY.—Except as provided in

3 subparagraph (B), not later than October 1,

4 1997, each State shall establish an automated di5 rectory (to be known as the ‘State Directory of

6 New Hires’) which shall contain information

7 supplied in accordance with subsection (b) by

8 employers on each newly hired employee.

9 ‘‘(B) STATES WITH NEW HIRE REPORTING

10 IN EXISTENCE.—A State which has a new hire

11 reporting law in existence on the date of the en12 actment of this section may continue to operate

13 under the State law, but the State must meet the

14 requirements of subsection (g)(2) not later than

15 October 1, 1997, and the requirements of this sec16 tion (other than subsection (g)(2)) not later than

17 October 1, 1998.

18 ‘‘(2) DEFINITIONS.—As used in this section:

19 ‘‘(A) EMPLOYEE.—The term ‘employee’—

20 ‘‘(i) means an individual who is an

21 employee within the meaning of chapter 24

22 of the Internal Revenue Code of 1986; and

23 ‘‘(ii) does not include an employee of a

24 Federal or State agency performing intel25 ligence or counterintelligence functions, if
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1 the head of such agency has determined that

2 reporting pursuant to paragraph (1) with

3 respect to the employee could endanger the

4 safety of the employee or compromise an on5 going investigation or intelligence mission.

6 ‘‘(B) EMPLOYER.—

7 ‘‘(i) IN GENERAL.—The term ‘em8 ployer’ has the meaning given such term in

9 section 3401(d) of the Internal Revenue

10 Code of 1986 and includes any govern11 mental entity and any labor organization.

12 ‘‘(ii) LABOR ORGANIZATION.—The

13 term ‘labor organization’ shall have the

14 meaning given such term in section 2(5) of

15 the National Labor Relations Act, and in16 cludes any entity (also known as a ‘hiring

17 hall’) which is used by the organization and

18 an employer to carry out requirements de19 scribed in section 8(f)(3) of such Act of an

20 agreement between the organization and the

21 employer.

22 ‘‘(b) EMPLOYER INFORMATION.—

23 ‘‘(1) REPORTING REQUIREMENT.—

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

25 subparagraphs (B) and (C), each employer shall
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1 furnish to the Directory of New Hires of the

2 State in which a newly hired employee works, a

3 report that contains the name, address, and so4 cial security number of the employee, and the

5 name and address of, and identifying number

6 assigned under section 6109 of the Internal Reve7 nue Code of 1986 to, the employer.

8 ‘‘(B) MULTISTATE EMPLOYERS.—An em9 ployer that has employees who are employed in

10 2 or more States and that transmits reports

11 magnetically or electronically may comply with

12 subparagraph (A) by designating 1 State in

13 which such employer has employees to which the

14 employer will transmit the report described in

15 subparagraph (A), and transmitting such report

16 to such State. Any employer that transmits re17 ports pursuant to this subparagraph shall notify

18 the Secretary in writing as to which State such

19 employer designates for the purpose of sending

20 reports.

21 ‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—

22 Any department, agency, or instrumentality of

23 the United States shall comply with subpara24 graph (A) by transmitting the report described

25 in subparagraph (A) to the National Directory
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1 of New Hires established pursuant to section

2 453.

3 ‘‘(2) TIMING OF REPORT.—Each State may pro4 vide the time within which the report required by

5 paragraph (1) shall be made with respect to an em6 ployee, but such report shall be made—

7 ‘‘(A) not later than 20 days after the date

8 the employer hires the employee; or

9 ‘‘(B) in the case of an employer transmit10 ting reports magnetically or electronically, by 2

11 monthly transmissions (if necessary) not less

12 than 12 days nor more than 16 days apart.

13 ‘‘(c) REPORTING FORMAT AND METHOD.—Each report

14 required by subsection (b) shall be made on a W–4 form

15 or, at the option of the employer, an equivalent form, and

16 may be transmitted by 1st class mail, magnetically, or elec17 tronically.

18 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EM19 PLOYERS.—The State shall have the option to set a State

20 civil money penalty which shall be less than—

21 ‘‘(1) $25; or

22 ‘‘(2) $500 if, under State law, the failure is the

23 result of a conspiracy between the employer and the

24 employee to not supply the required report or to sup25 ply a false or incomplete report.
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1 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Informa2 tion shall be entered into the data base maintained by the

3 State Directory of New Hires within 5 business days of re4 ceipt from an employer pursuant to subsection (b).

5 ‘‘(f) INFORMATION COMPARISONS.—

6 ‘‘(1) IN GENERAL.—Not later than May 1, 1998,

7 an agency designated by the State shall, directly or

8 by contract, conduct automated comparisons of the so9 cial security numbers reported by employers pursuant

10 to subsection (b) and the social security numbers ap11 pearing in the records of the State case registry for

12 cases being enforced under the State plan.

13 ‘‘(2) NOTICE OF MATCH.—When an information

14 comparison conducted under paragraph (1) reveals a

15 match with respect to the social security number of an

16 individual required to provide support under a sup17 port order, the State Directory of New Hires shall

18 provide the agency administering the State plan ap19 proved under this part of the appropriate State with

20 the name, address, and social security number of the

21 employee to whom the social security number is as22 signed, and the name and address of, and identifying

23 number assigned under section 6109 of the Internal

24 Revenue Code of 1986 to, the employer.

25 ‘‘(g) TRANSMISSION OF INFORMATION.—
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1 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NO2 TICES TO EMPLOYERS.—Within 2 business days after

3 the date information regarding a newly hired em4 ployee is entered into the State Directory of New

5 Hires, the State agency enforcing the employee’s child

6 support obligation shall transmit a notice to the em7 ployer of the employee directing the employer to with8 hold from the wages of the employee an amount equal

9 to the monthly (or other periodic) child support obli10 gation (including any past due support obligation) of

11 the employee, unless the employee’s wages are not sub12 ject to withholding pursuant to section 466(b)(3).

13 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC14 TORY OF NEW HIRES.—

15 ‘‘(A) NEW HIRE INFORMATION.—Within 3

16 business days after the date information regard17 ing a newly hired employee is entered into the

18 State Directory of New Hires, the State Direc19 tory of New Hires shall furnish the information

20 to the National Directory of New Hires.

21 ‘‘(B) WAGE AND UNEMPLOYMENT COM22 PENSATION INFORMATION.—The State Directory

23 of New Hires shall, on a quarterly basis, furnish

24 to the National Directory of New Hires extracts

25 of the reports required under section 303(a)(6) to
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1 be made to the Secretary of Labor concerning the

2 wages and unemployment compensation paid to

3 individuals, by such dates, in such format, and

4 containing such information as the Secretary of

5 Health and Human Services shall specify in reg6 ulations.

7 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

8 subsection, the term ‘business day’ means a day on

9 which State offices are open for regular business.

10 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

11 ‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—

12 The agency administering the State plan approved

13 under this part shall use information received pursu14 ant to subsection (f)(2) to locate individuals for pur15 poses of establishing paternity and establishing, modi16 fying, and enforcing child support obligations.

17 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN

18 PROGRAMS.—A State agency responsible for admin19 istering a program specified in section 1137(b) shall

20 have access to information reported by employers pur21 suant to subsection (b) of this section for purposes of

22 verifying eligibility for the program.

23 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU24 RITY AND WORKERS’ COMPENSATION.—State agencies

25 operating employment security and workers’ com-
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1 pensation programs shall have access to information

2 reported by employers pursuant to subsection (b) for

3 the purposes of administering such programs.’’.

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 defined

8 in section 453A(a)(2)(B)(iii))’’ after ‘‘employers’’;

9 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 ongoing

16 investigation or intelligence mission’’ after ‘‘para17 graph (2)’’.

18 SEC. 2314. AMENDMENTS CONCERNING INCOME WITHHOLD19 ING.

20 (a) MANDATORY INCOME WITHHOLDING.—

21 (1) IN GENERAL.—Section 466(a)(1) (42 U.S.C.

22 666(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 per4 son with a support obligation imposed by a support

5 order issued (or modified) in the State before October

6 1, 1996, if not otherwise subject to withholding under

7 subsection (b), shall become subject to withholding as

8 provided in subsection (b) if arrearages occur, without

9 the need for a judicial or administrative hearing.’’.

10 (2) CONFORMING AMENDMENTS.—

11 (A) Section 466(b) (42 U.S.C. 666(b)) is

12 amended in the matter preceding paragraph (1),

13 by striking ‘‘subsection (a)(1)’’ and inserting

14 ‘‘subsection (a)(1)(A)’’.

15 (B) Section 466(b)(4) (42 U.S.C. 666(b)(4))

16 is amended to read as follows:

17 ‘‘(4)(A) Such withholding must be carried out in

18 full compliance with all procedural due process re19 quirements of the State, and the State must send no20 tice to each noncustodial parent to whom paragraph

21 (1) applies—

22 ‘‘(i) that the withholding has commenced;

23 and

24 ‘‘(ii) of the procedures to follow if the non25 custodial parent desires to contest such withhold-
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1 ing on the grounds that the withholding or the

2 amount withheld is improper due to a mistake

3 of fact.

4 ‘‘(B) The notice under subparagraph (A) of this

5 paragraph shall include the information provided to

6 the employer under paragraph (6)(A).’’.

7 (C) Section 466(b)(5) (42 U.S.C. 666(b)(5))

8 is amended by striking all that follows ‘‘adminis9 tered by’’ and inserting ‘‘the State through the

10 State disbursement unit established pursuant to

11 section 454B, in accordance with the require12 ments of section 454B.’’.

13 (D) Section 466(b)(6)(A) (42 U.S.C.

14 666(b)(6)(A)) is amended—

15 (i) in clause (i), by striking ‘‘to the ap16 propriate agency’’ and all that follows and

17 inserting ‘‘to the State disbursement unit

18 within 7 business days after the date the

19 amount would (but for this subsection) have

20 been paid or credited to the employee, for

21 distribution in accordance with this part.

22 The employer shall comply with the proce23 dural rules relating to income withholding

24 of the State in which the employee works,
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1 regardless of the State where the notice

2 originates.’’;

3 (ii) in clause (ii), by inserting ‘‘be in

4 a standard format prescribed by the Sec5 retary, and’’ after ‘‘shall’’; and

6 (iii) by adding at the end the following

7 new clause:

8 ‘‘(iii) As used in this subparagraph, the term

9 ‘business day’ means a day on which State offices are

10 open for regular business.’’.

11 (E) Section 466(b)(6)(D) (42 U.S.C.

12 666(b)(6)(D)) is amended by striking ‘‘any em13 ployer’’ and all that follows and inserting ‘‘any

14 employer who—

15 ‘‘(i) discharges from employment, refuses to

16 employ, or takes disciplinary action against any

17 noncustodial parent subject to wage withholding

18 required by this subsection because of the exist19 ence of such withholding and the obligations or

20 additional obligations which it imposes upon the

21 employer; or

22 ‘‘(ii) fails to withhold support from wages

23 or to pay such amounts to the State disburse24 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 new

3 paragraph:

4 ‘‘(11) Procedures under which the agency admin5 istering the State plan approved under this part may

6 execute a withholding order without advance notice to

7 the obligor, including issuing the withholding order

8 through electronic means.’’.

9 (b) CONFORMING AMENDMENT.—Section 466(c) (42

10 U.S.C. 666(c)) is repealed.

11 SEC. 2315. LOCATOR INFORMATION FROM INTERSTATE

12 NETWORKS.

13 Section 466(a) (42 U.S.C. 666(a)) is amended by in14 serting after paragraph (11) the following new paragraph:

15 ‘‘(12) LOCATOR INFORMATION FROM INTERSTATE

16 NETWORKS.—Procedures to ensure that all Federal

17 and State agencies conducting activities under this

18 part have access to any system used by the State to

19 locate an individual for purposes relating to motor

20 vehicles or law enforcement.’’.

21 SEC. 2316. EXPANSION OF THE FEDERAL PARENT LOCATOR

22 SERVICE.

23 (a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS

24 AND ASSETS.—Section 453 (42 U.S.C. 653) is 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 obli5 gations, or enforcing child custody or visitation or6 ders—

7 ‘‘(1) information on, or facilitating the discovery

8 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, address,

17 and employer identification number of the individ18 ual’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 to,

25 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 ‘‘informa5 tion 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 the

11 disclosure of such information could be harmful

12 to the custodial parent or the child of such par13 ent. Information received or transmitted pursu14 ant to this section shall be subject to the safe15 guard provisions contained in section 454(26).’’.

16 (b) AUTHORIZED PERSON FOR INFORMATION REGARD17 ING VISITATION RIGHTS.—Section 453(c) (42 U.S.C.

18 653(c)) is amended—

19 (1) in paragraph (1), by striking ‘‘support’’ and

20 inserting ‘‘support or to seek to enforce orders provid21 ing child custody or visitation rights’’; and

22 (2) in paragraph (2), by striking ‘‘, or any agent

23 of such court; and’’ and inserting ‘‘or to issue an

24 order against a resident parent for child custody or

25 visitation rights, or any agent of such court;’’.
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1 (c) REIMBURSEMENT FOR INFORMATION FROM FED2 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2))

3 is amended in the 4th sentence by inserting ‘‘in an amount

4 which the Secretary determines to be reasonable payment

5 for the information exchange (which amount shall not in6 clude payment for the costs of obtaining, compiling, or

7 maintaining the information)’’ before the period.

8 (d) REIMBURSEMENT FOR REPORTS BY STATE AGEN9 CIES.—Section 453 (42 U.S.C. 653) is amended by adding

10 at the end the following new subsection:

11 ‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE AGEN12 CIES.—The Secretary may reimburse Federal and State

13 agencies for the costs incurred by such entities in furnishing

14 information requested by the Secretary under this section

15 in an amount which the Secretary determines to be reason16 able payment for the information exchange (which amount

17 shall not include payment for the costs of obtaining, compil18 ing, or maintaining the information).’’.

19 (e) CONFORMING AMENDMENTS.—

20 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

21 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

22 653(b), 663(a), 663(e), and 663(f)) are each amended

23 by inserting ‘‘Federal’’ before ‘‘Parent’’ each place

24 such term appears.
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1 (2) Section 453 (42 U.S.C. 653) is amended in

2 the heading by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.

3 (f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653),

4 as amended by subsection (d) of this section, is amended

5 by adding at the end the following new subsections:

6 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

7 ORDERS.—

8 ‘‘(1) IN GENERAL.—Not later than October 1,

9 1998, in order to assist States in administering pro10 grams under State plans approved under this part

11 and programs funded under part A, and for the other

12 purposes specified in this section, the Secretary shall

13 establish and maintain in the Federal Parent Locator

14 Service an automated registry (which shall be known

15 as the ‘Federal Case Registry of Child Support Or16 ders’), which shall contain abstracts of support orders

17 and other information described in paragraph (2)

18 with respect to each case in each State case registry

19 maintained pursuant to section 454A(e), as furnished

20 (and regularly updated), pursuant to section 454A(f),

21 by State agencies administering programs under this

22 part.

23 ‘‘(2) CASE INFORMATION.—The information re24 ferred to in paragraph (1) with respect to a case shall

25 be such information as the Secretary may specify in
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1 regulations (including the names, social security

2 numbers or other uniform identification numbers,

3 and State case identification numbers) to identify the

4 individuals who owe or are owed support (or with re5 spect to or on behalf of whom support obligations are

6 sought to be established), and the State or States

7 which have the case.

8 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

9 ‘‘(1) IN GENERAL.—In order to assist States in

10 administering programs under State plans approved

11 under this part and programs funded under part A,

12 and for the other purposes specified in this section,

13 the Secretary shall, not later than October 1, 1997, es14 tablish and maintain in the Federal Parent Locator

15 Service an automated directory to be known as the

16 National Directory of New Hires, which shall contain

17 the information supplied pursuant to section

18 453A(g)(2).

19 ‘‘(2) ENTRY OF DATA.—Information shall be en20 tered into the data base maintained by the National

21 Directory of New Hires within 2 business days of re22 ceipt pursuant to section 453A(g)(2).

23 ‘‘(3) ADMINISTRATION OF FEDERAL TAX LAWS.—

24 The Secretary of the Treasury shall have access to the

25 information in the National Directory of New Hires
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1 for purposes of administering section 32 of the Inter2 nal Revenue Code of 1986, or the advance payment

3 of the earned income tax credit under section 3507 of

4 such Code, and verifying a claim with respect to em5 ployment in a tax return.

6 ‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The

7 Secretary shall maintain within the National Direc8 tory of New Hires a list of multistate employers that

9 report information regarding newly hired employees

10 pursuant to section 453A(b)(1)(B), and the State

11 which each such employer has designated to receive

12 such information.

13 ‘‘(j) INFORMATION COMPARISONS AND OTHER DISCLO14 SURES.—

15 ‘‘(1) VERIFICATION BY SOCIAL SECURITY ADMIN16 ISTRATION.—

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

18 transmit information on individuals and em19 ployers maintained under this section to the So20 cial Security Administration to the extent nec21 essary for verification in accordance with sub22 paragraph (B).

23 ‘‘(B) VERIFICATION BY SSA.—The Social

24 Security Administration shall verify the accu25 racy of, correct, or supply to the extent possible,
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1 and report to the Secretary, the following infor2 mation supplied by the Secretary pursuant to

3 subparagraph (A):

4 ‘‘(i) The name, social security number,

5 and birth date of each such individual.

6 ‘‘(ii) The employer identification num7 ber of each such employer.

8 ‘‘(2) INFORMATION COMPARISONS.—For the pur9 pose of locating individuals in a paternity establish10 ment case or a case involving the establishment,

11 modification, or enforcement of a support order, the

12 Secretary shall—

13 ‘‘(A) compare information in the National

14 Directory of New Hires against information in

15 the support case abstracts in the Federal Case

16 Registry of Child Support Orders not less often

17 than every 2 business days; and

18 ‘‘(B) within 2 business days after such a

19 comparison reveals a match with respect to an

20 individual, report the information to the State

21 agency responsible for the case.

22 ‘‘(3) INFORMATION COMPARISONS AND DISCLO23 SURES OF INFORMATION IN ALL REGISTRIES FOR

24 TITLE IV PROGRAM PURPOSES.—To the extent and

25 with the frequency that the Secretary determines to be
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1 effective in assisting States to carry out their respon2 sibilities under programs operated under this part

3 and programs funded under part A, the Secretary

4 shall—

5 ‘‘(A) compare the information in each com6 ponent of the Federal Parent Locator Service

7 maintained under this section against the infor8 mation in each other such component (other than

9 the comparison required by paragraph (2)), and

10 report instances in which such a comparison re11 veals a match with respect to an individual to

12 State agencies operating such programs; and

13 ‘‘(B) disclose information in such registries

14 to such State agencies.

15 ‘‘(4) PROVISION OF NEW HIRE INFORMATION TO

16 THE SOCIAL SECURITY ADMINISTRATION.—The Na17 tional Directory of New Hires shall provide the Com18 missioner of Social Security with all information in

19 the National Directory.

20 ‘‘(5) RESEARCH.—The Secretary may provide

21 access to information reported by employers pursuant

22 to section 453A(b) for research purposes found by the

23 Secretary to be likely to contribute to achieving the

24 purposes of part A or this part, but without personal

25 identifiers.
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1 ‘‘(k) FEES.—

2 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

3 shall reimburse the Commissioner of Social Security,

4 at a rate negotiated between the Secretary and the

5 Commissioner, for the costs incurred by the Commis6 sioner in performing the verification services de7 scribed in subsection (j).

8 ‘‘(2) FOR INFORMATION FROM STATE DIREC9 TORIES OF NEW HIRES.—The Secretary shall reim10 burse costs incurred by State directories of new hires

11 in furnishing information as required by subsection

12 (j)(3), at rates which the Secretary determines to be

13 reasonable (which rates shall not include payment for

14 the costs of obtaining, compiling, or maintaining such

15 information).

16 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

17 AND FEDERAL AGENCIES.—A State or Federal agency

18 that receives information from the Secretary pursuant

19 to this section shall reimburse the Secretary for costs

20 incurred by the Secretary in furnishing the informa21 tion, at rates which the Secretary determines to be

22 reasonable (which rates shall include payment for the

23 costs of obtaining, verifying, maintaining, and com24 paring the information).
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1 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Infor2 mation in the Federal Parent Locator Service, and infor3 mation resulting from comparisons using such information,

4 shall not be used or disclosed except as expressly provided

5 in this section, subject to section 6103 of the Internal Reve6 nue Code of 1986.

7 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—The

8 Secretary shall establish and implement safeguards with re9 spect to the entities established under this section designed

10 to—

11 ‘‘(1) ensure the accuracy and completeness of in12 formation in the Federal Parent Locator Service; and

13 ‘‘(2) restrict access to confidential information in

14 the Federal Parent Locator Service to authorized per15 sons, and restrict use of such information to author16 ized purposes.

17 ‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each de18 partment, agency, and instrumentality of the United States

19 shall on a quarterly basis report to the Federal Parent Lo20 cator Service the name and social security number of each

21 employee and the wages paid to the employee during the

22 previous quarter, except that such a report shall not be filed

23 with respect to an employee of a department, agency, or

24 instrumentality performing intelligence or counterintel25 ligence functions, if the head of such department, agency,
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1 or instrumentality has determined that filing such a report

2 could endanger the safety of the employee or compromise

3 an ongoing investigation or intelligence mission.’’.

4 (g) CONFORMING AMENDMENTS.—

5 (1) TO PART D OF TITLE IV OF THE SOCIAL SE6 CURITY ACT.—

7 (A) Section 454(8)(B) (42 U.S.C.

8 654(8)(B)) is amended to read as follows:

9 ‘‘(B) the Federal Parent Locator Service es10 tablished under section 453;’’.

11 (B) Section 454(13) (42 U.S.C.654(13)) is

12 amended by inserting ‘‘and provide that infor13 mation requests by parents who are residents of

14 other States be treated with the same priority as

15 requests by parents who are residents of the State

16 submitting the plan’’ before the semicolon.

17 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

18 Section 3304(a)(16) of the Internal Revenue Code of

19 1986 is amended—

20 (A) by striking ‘‘Secretary of Health, Edu21 cation, and Welfare’’ each place such term ap22 pears and inserting ‘‘Secretary of Health and

23 Human Services’’;

24 (B) in subparagraph (B), by striking ‘‘such

25 information’’ and all that follows and inserting
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1 ‘‘information furnished under subparagraph (A)

2 or (B) is used only for the purposes authorized

3 under such subparagraph;’’;

4 (C) by striking ‘‘and’’ at the end of sub5 paragraph (A);

6 (D) by redesignating subparagraph (B) as

7 subparagraph (C); and

8 (E) by inserting after subparagraph (A) the

9 following new subparagraph:

10 ‘‘(B) wage and unemployment compensation in11 formation contained in the records of such agency

12 shall be furnished to the Secretary of Health and

13 Human Services (in accordance with regulations pro14 mulgated by such Secretary) as necessary for the pur15 poses of the National Directory of New Hires estab16 lished under section 453(i) of the Social Security Act,

17 and’’.

18 (3) TO STATE GRANT PROGRAM UNDER TITLE III

19 OF THE SOCIAL SECURITY ACT.—Subsection (h) of sec20 tion 303 (42 U.S.C. 503) is amended to read as fol21 lows:

22 ‘‘(h)(1) The State agency charged with the administra23 tion of the State law shall, on a reimbursable basis—

24 ‘‘(A) disclose quarterly, to the Secretary of

25 Health and Human Services, wage and claim infor-
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1 mation, as required pursuant to section 453(i)(1),

2 contained in the records of such agency;

3 ‘‘(B) ensure that information provided pursuant

4 to subparagraph (A) meets such standards relating to

5 correctness and verification as the Secretary of Health

6 and Human Services, with the concurrence of the Sec7 retary of Labor, may find necessary; and

8 ‘‘(C) establish such safeguards as the Secretary of

9 Labor determines are necessary to insure that infor10 mation disclosed under subparagraph (A) is used only

11 for purposes of section 453(i)(1) in carrying out the

12 child support enforcement program under title IV.

13 ‘‘(2) Whenever the Secretary of Labor, after reasonable

14 notice and opportunity for hearing to the State agency

15 charged with the administration of the State law, finds that

16 there is a failure to comply substantially with the require17 ments of paragraph (1), the Secretary of Labor shall notify

18 such State agency that further payments will not be made

19 to the State until the Secretary of Labor is satisfied that

20 there is no longer any such failure. Until the Secretary of

21 Labor is so satisfied, the Secretary shall make no future

22 certification to the Secretary of the Treasury with respect

23 to the State.

24 ‘‘(3) For purposes of this subsection—
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1 ‘‘(A) the term ‘wage information’ means infor2 mation regarding wages paid to an individual, the

3 social security account number of such individual,

4 and the name, address, State, and the Federal em5 ployer identification number of the employer paying

6 such wages to such individual; and

7 ‘‘(B) the term ‘claim information’ means infor8 mation regarding whether an individual is receiving,

9 has received, or has made application for, unemploy10 ment compensation, the amount of any such com11 pensation being received (or to be received by such in12 dividual), and the individual’s current (or most re13 cent) home address.’’.

14 (4) DISCLOSURE OF CERTAIN INFORMATION TO

15 AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN16 CIES.—

17 (A) IN GENERAL.—Paragraph (6) of section

18 6103(l) of the Internal Revenue Code of 1986 (re19 lating to disclosure of return information to Fed20 eral, State, and local child support enforcement

21 agencies) is amended by redesignating subpara22 graph (B) as subparagraph (C) and by inserting

23 after subparagraph (A) the following new sub24 paragraph:
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1 ‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—

2 The following information disclosed to any child

3 support enforcement agency under subparagraph

4 (A) with respect to any individual with respect

5 to whom child support obligations are sought to

6 be established or enforced may be disclosed by

7 such agency to any agent of such agency which

8 is under contract with such agency to carry out

9 the purposes described in subparagraph (C):

10 ‘‘(i) The address and social security

11 account number (or numbers) of such indi12 vidual.

13 ‘‘(ii) The amount of any reduction

14 under section 6402(c) (relating to offset of

15 past-due support against overpayments) in

16 any overpayment otherwise payable to such

17 individual.’’.

18 (B) CONFORMING AMENDMENTS.—

19 (i) Paragraph (3) of section 6103(a) of

20 such Code is amended by striking ‘‘(l)(12)’’

21 and inserting ‘‘paragraph (6) or (12) of

22 subsection (l)’’.

23 (ii) Subparagraph (C) of section

24 6103(l)(6) of such Code, as redesignated by
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1 subsection (a), is amended to read as fol2 lows:

3 ‘‘(C) RESTRICTION ON DISCLOSURE.—Infor4 mation may be disclosed under this paragraph

5 only for purposes of, and to the extent necessary

6 in, establishing and collecting child support obli7 gations from, and locating, individuals owing

8 such obligations.’’.

9 (iii) The material following subpara10 graph (F) of section 6103(p)(4) of such

11 Code is amended by striking ‘‘subsection

12 (l)(12)(B)’’ and inserting ‘‘paragraph

13 (6)(A) or (12)(B) of subsection (l)’’.

14 (h) REQUIREMENT FOR COOPERATION.—The Secretary

15 of Labor and the Secretary of Health and Human Services

16 shall work jointly to develop cost-effective and efficient

17 methods of accessing the information in the various State

18 directories of new hires and the National Directory of New

19 Hires as established pursuant to the amendments made by

20 this subchapter. In developing these methods the Secretaries

21 shall take into account the impact, including costs, on the

22 States, and shall also consider the need to insure the proper

23 and authorized use of wage record information.
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1 SEC. 2317. COLLECTION AND USE OF SOCIAL SECURITY

2 NUMBERS FOR USE IN CHILD SUPPORT EN3 FORCEMENT.

4 Section 466(a) (42 U.S.C. 666(a)), as amended by sec5 tion 2315 of this Act, is amended by inserting after para6 graph (12) the following new paragraph:

7 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM8 BERS IN CERTAIN FAMILY MATTERS.—Procedures re9 quiring that the social security number of—

10 ‘‘(A) any applicant for a professional li11 cense, commercial driver’s license, occupational

12 license, or marriage license be recorded on the

13 application;

14 ‘‘(B) any individual who is subject to a di15 vorce decree, support order, or paternity deter16 mination or acknowledgment be placed in the

17 records relating to the matter; and

18 ‘‘(C) any individual who has died be placed

19 in the records relating to the death and be re20 corded on the death certificate.

21 For purposes of subparagraph (A), if a State allows

22 the use of a number other than the social security

23 number, the State shall so advise any applicants.’’.
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1 Subchapter C—Streamlining and Uniformity

2 of Procedures

3 SEC. 2321. 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 ACT.—

7 ‘‘(1) ENACTMENT AND USE.—In order to satisfy

8 section 454(20)(A), on and after January 1, 1998,

9 each State must have in effect the Uniform Interstate

10 Family Support Act, as approved by the American

11 Bar Association on February 9, 1993, together with

12 any amendments officially adopted before January 1,

13 1998 by the National Conference of Commissioners on

14 Uniform State Laws.

15 ‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL

16 RULES OF STATE WHERE EMPLOYEE WORKS.—The

17 State law enacted pursuant to paragraph (1) shall

18 provide that an employer that receives an income

19 withholding order or notice pursuant to section 501

20 of the Uniform Interstate Family Support Act follow

21 the procedural rules that apply with respect to such

22 order or notice under the laws of the State in which

23 the obligor works.’’.
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1 SEC. 2322. 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 2nd

8 undesignated paragraph the following:

9 ‘‘ ‘child’s home State’ means the State in which a child

10 lived with a parent or a person acting as parent for at

11 least 6 consecutive months immediately preceding the time

12 of filing of a petition or comparable pleading for support

13 and, if a child is less than 6 months old, the State in which

14 the child lived from birth with any of them. A period of

15 temporary absence of any of them is counted as part of the

16 6-month period.’’;

17 (3) in subsection (c), by inserting ‘‘by a court of

18 a State’’ before ‘‘is made’’;

19 (4) in subsection (c)(1), by inserting ‘‘and sub20 sections (e), (f), and (g)’’ after ‘‘located’’;

21 (5) in subsection (d)—

22 (A) by inserting ‘‘individual’’ before ‘‘con23 testant’’; and

24 (B) by striking ‘‘subsection (e)’’ and insert25 ing ‘‘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 for

13 a court of another State to modify the order and

14 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.—If

20 1 or more child support orders have been issued with regard

21 to an obligor and a child, a court shall apply the following

22 rules in determining which order to recognize for purposes

23 of continuing, exclusive jurisdiction and enforcement:

24 ‘‘(1) If only 1 court has issued a child support

25 order, the order of that court must be recognized.
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1 ‘‘(2) If 2 or more courts have issued child sup2 port orders for the same obligor and child, and only

3 1 of the courts would have continuing, exclusive juris4 diction under this section, the order of that court

5 must be recognized.

6 ‘‘(3) If 2 or more courts have issued child sup7 port orders for the same obligor and child, and more

8 than 1 of the courts would have continuing, exclusive

9 jurisdiction under this section, an order issued by a

10 court in the current home State of the child must be

11 recognized, but if an order has not been issued in the

12 current home State of the child, the order most re13 cently issued must be recognized.

14 ‘‘(4) If 2 or more courts have issued child sup15 port orders for the same obligor and child, and none

16 of the courts would have continuing, exclusive juris17 diction under this section, a court may issue a child

18 support order, which must be recognized.

19 ‘‘(5) The court that has issued an order recog20 nized under this subsection is the court having con21 tinuing, exclusive jurisdiction.’’;

22 (11) in subsection (g) (as so redesignated)—

23 (A) by striking ‘‘PRIOR’’ and inserting

24 ‘‘MODIFIED’’; and
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1 (B) by striking ‘‘subsection (e)’’ and insert2 ing ‘‘subsections (e) and (f)’’;

3 (12) in subsection (h) (as so redesignated)—

4 (A) in paragraph (2), by inserting ‘‘includ5 ing the duration of current payments and other

6 obligations of support’’ before the comma; and

7 (B) in paragraph (3), by inserting ‘‘arrears

8 under’’ after ‘‘enforce’’; and

9 (13) by adding at the end the following new sub10 section:

11 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

12 no individual contestant or child residing in the issuing

13 State, the party or support enforcement agency seeking to

14 modify, or to modify and enforce, a child support order is15 sued in another State shall register that order in a State

16 with jurisdiction over the nonmovant for the purpose of

17 modification.’’.

18 SEC. 2323. ADMINISTRATIVE ENFORCEMENT IN INTER19 STATE CASES.

20 Section 466(a) (42 U.S.C. 666(a)), as amended by sec21 tions 2315 and 2317(a) of this Act, is amended by inserting

22 after paragraph (13) the following new paragraph:

23 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN INTER24 STATE CASES.—Procedures under which—
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1 ‘‘(A)(i) the State shall respond within 5

2 business days to a request made by another State

3 to enforce a support order; and

4 ‘‘(ii) the term ‘business day’ means a day

5 on which State offices are open for regular busi6 ness;

7 ‘‘(B) the State may, by electronic or other

8 means, transmit to another State a request for

9 assistance in a case involving the enforcement of

10 a support order, which request—

11 ‘‘(i) shall include such information as

12 will enable the State to which the request is

13 transmitted to compare the information

14 about the case to the information in the

15 data bases of the State; and

16 ‘‘(ii) shall constitute a certification by

17 the requesting State—

18 ‘‘(I) of the amount of support

19 under the order the payment of which

20 is in arrears; and

21 ‘‘(II) that the requesting State has

22 complied with all procedural due proc23 ess requirements applicable to the case;

24 ‘‘(C) if the State provides assistance to an25 other State pursuant to this paragraph with re-
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1 spect to a case, neither State shall consider the

2 case to be transferred to the caseload of such

3 other State; and

4 ‘‘(D) the State shall maintain records of—

5 ‘‘(i) the number of such requests for as6 sistance received by the State;

7 ‘‘(ii) the number of cases for which the

8 State collected support in response to such

9 a request; and

10 ‘‘(iii) the amount of such collected sup11 port.’’.

12 SEC. 2324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

13 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

14 652(a)) is amended—

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

16 (9);

17 (2) by striking the period at the end of para18 graph (10) and inserting ‘‘; and’’; and

19 (3) by adding at the end the following new para20 graph:

21 ‘‘(11) not later than October 1, 1996, after con22 sulting with the State directors of programs under

23 this part, promulgate forms to be used by States in

24 interstate cases for—
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1 ‘‘(A) collection of child support through in2 come withholding;

3 ‘‘(B) imposition of liens; and

4 ‘‘(C) administrative subpoenas.’’.

5 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

6 654(9)) is amended—

7 (1) by striking ‘‘and’’ at the end of subpara8 graph (C);

9 (2) by inserting ‘‘and’’ at the end of subpara10 graph (D); and

11 (3) by adding at the end the following new sub12 paragraph:

13 ‘‘(E) not later than March 1, 1997, in using

14 the forms promulgated pursuant to section

15 452(a)(11) for income withholding, imposition of

16 liens, and issuance of administrative subpoenas

17 in interstate child support cases;’’.

18 SEC. 2325. STATE LAWS PROVIDING EXPEDITED PROCE19 DURES.

20 (a) STATE LAW REQUIREMENTS.—Section 466 (42

21 U.S.C. 666), as amended by section 2314 of this Act, is

22 amended—

23 (1) in subsection (a)(2), by striking the first sen24 tence and inserting the following: ‘‘Expedited admin25 istrative and judicial procedures (including the proce-
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1 dures specified in subsection (c)) for establishing pa2 ternity and for establishing, modifying, and enforcing

3 support obligations.’’; and

4 (2) by inserting after subsection (b) the following

5 new subsection:

6 ‘‘(c) EXPEDITED PROCEDURES.—The procedures spec7 ified in this subsection are the following:

8 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN9 CY.—Procedures which give the State agency the au10 thority to take the following actions relating to estab11 lishment of paternity or to establishment, modifica12 tion, or enforcement of support orders, without the ne13 cessity of obtaining an order from any other judicial

14 or administrative tribunal, and to recognize and en15 force the authority of State agencies of other States to

16 take the following actions:

17 ‘‘(A) GENETIC TESTING.—To order genetic

18 testing for the purpose of paternity establishment

19 as provided in section 466(a)(5).

20 ‘‘(B) FINANCIAL OR OTHER INFORMATION.—

21 To subpoena any financial or other information

22 needed to establish, modify, or enforce a support

23 order, and to impose penalties for failure to re24 spond to such a subpoena.
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1 ‘‘(C) RESPONSE TO STATE AGENCY RE2 QUEST.—To require all entities in the State (in3 cluding for-profit, nonprofit, and governmental

4 employers) to provide promptly, in response to a

5 request by the State agency of that or any other

6 State administering a program under this part,

7 information on the employment, compensation,

8 and benefits of any individual employed by such

9 entity as an employee or contractor, and to sanc10 tion failure to respond to any such request.

11 ‘‘(D) ACCESS TO INFORMATION CONTAINED

12 IN CERTAIN RECORDS.—To obtain access, subject

13 to safeguards on privacy and information secu14 rity, and subject to the nonliability of entities

15 that afford such access under this subparagraph,

16 to information contained in the following records

17 (including automated access, in the case of

18 records maintained in automated data bases):

19 ‘‘(i) Records of other State and local

20 government agencies, including—

21 ‘‘(I) vital statistics (including

22 records of marriage, birth, and di23 vorce);

24 ‘‘(II) State and local tax and rev25 enue records (including information on
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1 residence address, employer, income

2 and assets);

3 ‘‘(III) records concerning real and

4 titled personal property;

5 ‘‘(IV) records of occupational and

6 professional licenses, and records con7 cerning the ownership and control of

8 corporations, partnerships, and other

9 business entities;

10 ‘‘(V) employment security records;

11 ‘‘(VI) records of agencies admin12 istering public assistance programs;

13 ‘‘(VII) records of the motor vehicle

14 department; and

15 ‘‘(VIII) corrections records.

16 ‘‘(ii) Certain records held by private

17 entities with respect to individuals who owe

18 or are owed support (or against or with re19 spect to whom a support obligation is

20 sought), consisting of—

21 ‘‘(I) the names and addresses of

22 such individuals and the names and

23 addresses of the employers of such indi24 viduals, as appearing in customer

25 records of public utilities and cable tel-
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1 evision companies, pursuant to an ad2 ministrative subpoena authorized by

3 subparagraph (B); and

4 ‘‘(II) information (including in5 formation on assets and liabilities) on

6 such individuals held by financial in7 stitutions.

8 ‘‘(E) CHANGE IN PAYEE.—In cases in which

9 support is subject to an assignment in order to

10 comply with a requirement imposed pursuant to

11 part A or section 1912, or to a requirement to

12 pay through the State disbursement unit estab13 lished pursuant to section 454B, upon providing

14 notice to obligor and obligee, to direct the obligor

15 or other payor to change the payee to the appro16 priate government entity.

17 ‘‘(F) INCOME WITHHOLDING.—To order in18 come withholding in accordance with subsections

19 (a)(1)(A) and (b) of section 466.

20 ‘‘(G) SECURING ASSETS.—In cases in which

21 there is a support arrearage, to secure assets to

22 satisfy the arrearage by—

23 ‘‘(i) intercepting or seizing periodic or

24 lump-sum payments from—
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1 ‘‘(I) a State or local agency, in2 cluding unemployment compensation,

3 workers’ compensation, and other bene4 fits; and

5 ‘‘(II) judgments, settlements, and

6 lotteries;

7 ‘‘(ii) attaching and seizing assets of the

8 obligor held in financial institutions;

9 ‘‘(iii) attaching public and private re10 tirement funds; and

11 ‘‘(iv) imposing liens in accordance

12 with subsection (a)(4) and, in appropriate

13 cases, to force sale of property and distribu14 tion of proceeds.

15 ‘‘(H) INCREASE MONTHLY PAYMENTS.—For

16 the purpose of securing overdue support, to in17 crease the amount of monthly support payments

18 to include amounts for arrearages, subject to

19 such conditions or limitations as the State may

20 provide.

21 Such procedures shall be subject to due process safe22 guards, including (as appropriate) requirements for

23 notice, opportunity to contest the action, and oppor24 tunity for an appeal on the record to an independent

25 administrative or judicial tribunal.
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1 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

2 The expedited procedures required under subsection

3 (a)(2) shall include the following rules and authority,

4 applicable with respect to all proceedings to establish

5 paternity or to establish, modify, or enforce support

6 orders:

7 ‘‘(A) LOCATOR INFORMATION; PRESUMP8 TIONS CONCERNING NOTICE.—Procedures under

9 which—

10 ‘‘(i) each party to any paternity or

11 child support proceeding is required (subject

12 to privacy safeguards) to file with the tribu13 nal and the State case registry upon entry

14 of an order, and to update as appropriate,

15 information on location and identity of the

16 party, including social security number,

17 residential and mailing addresses, telephone

18 number, driver’s license number, and name,

19 address, and telephone number of employer;

20 and

21 ‘‘(ii) in any subsequent child support

22 enforcement action between the parties,

23 upon sufficient showing that diligent effort

24 has been made to ascertain the location of

25 such a party, the tribunal may deem State
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1 due process requirements for notice and

2 service of process to be met with respect to

3 the party, upon delivery of written notice to

4 the most recent residential or employer ad5 dress filed with the tribunal pursuant to

6 clause (i).

7 ‘‘(B) STATEWIDE JURISDICTION.—Proce8 dures under which—

9 ‘‘(i) the State agency and any admin10 istrative or judicial tribunal with authority

11 to hear child support and paternity cases

12 exerts statewide jurisdiction over the par13 ties; and

14 ‘‘(ii) in a State in which orders are is15 sued by courts or administrative tribunals,

16 a case may be transferred between local ju17 risdictions in the State without need for

18 any additional filing by the petitioner, or

19 service of process upon the respondent, to re20 tain jurisdiction over the parties.

21 ‘‘(3) COORDINATION WITH ERISA.—Notwith22 standing subsection (d) of section 514 of the Employee

23 Retirement Income Security Act of 1974 (relating to

24 effect on other laws), nothing in this subsection shall

25 be construed to alter, amend, modify, invalidate, im-
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1 pair, or supersede subsections (a), (b), and (c) of such

2 section 514 as it applies with respect to any proce3 dure referred to in paragraph (1) and any expedited

4 procedure referred to in paragraph (2), except to the

5 extent that such procedure would be consistent with

6 the requirements of section 206(d)(3) of such Act (re7 lating to qualified domestic relations orders) or the

8 requirements of section 609(a) of such Act (relating to

9 qualified medical child support orders) if the reference

10 in such section 206(d)(3) to a domestic relations order

11 and the reference in such section 609(a) to a medical

12 child support order were a reference to a support

13 order referred to in paragraphs (1) and (2) relating

14 to the same matters, respectively.’’.

15 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

16 Section 454A, as added by section 2344(a)(2) and as

17 amended by sections 2311 and 2312(c) of this Act, is

18 amended by adding at the end the following new subsection:

19 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

20 The automated system required by this section shall be used,

21 to the maximum extent feasible, to implement the expedited

22 administrative procedures required by section 466(c).’’.
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1 Subchapter D—Paternity Establishment

2 SEC. 2331. STATE LAWS CONCERNING PATERNITY ESTAB3 LISHMENT.

4 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

5 U.S.C. 666(a)(5)) is amended to read as follows:

6 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES7 TABLISHMENT.—

8 ‘‘(A) ESTABLISHMENT PROCESS AVAILABLE

9 FROM BIRTH UNTIL AGE 18.—

10 ‘‘(i) Procedures which permit the estab11 lishment of the paternity of a child at any

12 time before the child attains 18 years of age.

13 ‘‘(ii) As of August 16, 1984, clause (i)

14 shall also apply to a child for whom pater15 nity has not been established or for whom a

16 paternity action was brought but dismissed

17 because a statute of limitations of less than

18 18 years was then in effect in the State.

19 ‘‘(B) PROCEDURES CONCERNING GENETIC

20 TESTING.—

21 ‘‘(i) GENETIC TESTING REQUIRED IN

22 CERTAIN CONTESTED CASES.—Procedures

23 under which the State is required, in a con24 tested paternity case (unless otherwise

25 barred by State law) to require the child
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1 and all other parties (other than individ2 uals found under section 454(29) to have

3 good cause and other exceptions for refusing

4 to cooperate) to submit to genetic tests upon

5 the request of any such party, if the request

6 is supported by a sworn statement by the

7 party—

8 ‘‘(I) alleging paternity, and set9 ting forth facts establishing a reason10 able possibility of the requisite sexual

11 contact between the parties; or

12 ‘‘(II) denying paternity, and set13 ting forth facts establishing a reason14 able possibility of the nonexistence of

15 sexual contact between the parties.

16 ‘‘(ii) OTHER REQUIREMENTS.—Proce17 dures which require the State agency, in

18 any case in which the agency orders genetic

19 testing—

20 ‘‘(I) to pay costs of such tests, sub21 ject to recoupment (if the State so

22 elects) from the alleged father if pater23 nity is established; and

24 ‘‘(II) to obtain additional testing

25 in any case if an original test result is
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1 contested, upon request and advance

2 payment by the contestant.

3 ‘‘(C) VOLUNTARY PATERNITY ACKNOWLEDG4 MENT.—

5 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce6 dures for a simple civil process for volun7 tarily acknowledging paternity under which

8 the State must provide that, before a mother

9 and a putative father can sign an acknowl10 edgment of paternity, the mother and the

11 putative father must be given notice, orally

12 and in writing, of the alternatives to, the

13 legal consequences of, and the rights (in14 cluding, if 1 parent is a minor, any rights

15 afforded due to minority status) and re16 sponsibilities that arise from, signing the

17 acknowledgment.

18 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

19 Such procedures must include a hospital20 based program for the voluntary acknowl21 edgment of paternity focusing on the period

22 immediately before or after the birth of a

23 child, unless good cause and other excep24 tions exist which—
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1 ‘‘(I) shall be defined, taking into

2 account the best interests of the child,

3 and

4 ‘‘(II) shall be applied in each

5 case,

6 by, at the option of the State, the State

7 agency administering the State program

8 under part A, this part, title XV, or title

9 XIX.

10 ‘‘(iii) PATERNITY ESTABLISHMENT

11 SERVICES.—

12 ‘‘(I) STATE-OFFERED SERVICES.—

13 Such procedures must require the State

14 agency responsible for maintaining

15 birth records to offer voluntary pater16 nity establishment services.

17 ‘‘(II) REGULATIONS.—

18 ‘‘(aa) SERVICES OFFERED BY

19 HOSPITALS AND BIRTH RECORD

20 AGENCIES.—The Secretary shall

21 prescribe regulations governing

22 voluntary paternity establishment

23 services offered by hospitals and

24 birth record agencies.
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1 ‘‘(bb) SERVICES OFFERED BY

2 OTHER ENTITIES.—The Secretary

3 shall prescribe regulations specify4 ing the types of other entities that

5 may offer voluntary paternity es6 tablishment services, and govern7 ing the provision of such services,

8 which shall include a requirement

9 that such an entity must use the

10 same notice provisions used by,

11 use the same materials used by,

12 provide the personnel providing

13 such services with the same train14 ing provided by, and evaluate the

15 provision of such services in the

16 same manner as the provision of

17 such services is evaluated by, vol18 untary paternity establishment

19 programs of hospitals and birth

20 record agencies.

21 ‘‘(iv) USE OF PATERNITY ACKNOWL22 EDGMENT AFFIDAVIT.—Such procedures

23 must require the State to develop and use

24 an affidavit for the voluntary acknowledg25 ment of paternity which includes the mini-
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1 mum requirements of the affidavit specified

2 by the Secretary under section 452(a)(7) for

3 the voluntary acknowledgment of paternity,

4 and to give full faith and credit to such an

5 affidavit signed in any other State accord6 ing to its procedures.

7 ‘‘(D) STATUS OF SIGNED PATERNITY AC8 KNOWLEDGMENT.—

9 ‘‘(i) INCLUSION IN BIRTH RECORDS.—

10 Procedures under which the name of the fa11 ther shall be included on the record of birth

12 of the child of unmarried parents only if—

13 ‘‘(I) the father and mother have

14 signed a voluntary acknowledgment of

15 paternity; or

16 ‘‘(II) a court or an administrative

17 agency of competent jurisdiction has

18 issued an adjudication of paternity.

19 Nothing in this clause shall preclude a

20 State agency from obtaining an admission

21 of paternity from the father for submission

22 in a judicial or administrative proceeding,

23 or prohibit the issuance of an order in a ju24 dicial or administrative proceeding which

25 bases a legal finding of paternity on an ad-
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1 mission of paternity by the father and any

2 other additional showing required by State

3 law.

4 ‘‘(ii) LEGAL FINDING OF PATERNITY.—

5 Procedures under which a signed voluntary

6 acknowledgment of paternity is considered a

7 legal finding of paternity, subject to the

8 right of any signatory to rescind the ac9 knowledgment within the earlier of—

10 ‘‘(I) 60 days; or

11 ‘‘(II) the date of an administra12 tive or judicial proceeding relating to

13 the child (including a proceeding to es14 tablish a support order) in which the

15 signatory is a party.

16 ‘‘(iii) CONTEST.—Procedures under

17 which, after the 60-day period referred to in

18 clause (ii), a signed voluntary acknowledg19 ment of paternity may be challenged in

20 court only on the basis of fraud, duress, or

21 material mistake of fact, with the burden of

22 proof upon the challenger, and under which

23 the legal responsibilities (including child

24 support obligations) of any signatory aris25 ing from the acknowledgment may not be
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1 suspended during the challenge, except for

2 good cause shown.

3 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFICA4 TION PROCEEDINGS.—Procedures under which

5 judicial or administrative proceedings are not

6 required or permitted to ratify an unchallenged

7 acknowledgment of paternity.

8 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

9 RESULTS.—Procedures—

10 ‘‘(i) requiring the admission into evi11 dence, for purposes of establishing pater12 nity, of the results of any genetic test that

13 is—

14 ‘‘(I) of a type generally acknowl15 edged as reliable by accreditation bod16 ies designated by the Secretary; and

17 ‘‘(II) performed by a laboratory

18 approved by such an accreditation

19 body;

20 ‘‘(ii) requiring an objection to genetic

21 testing results to be made in writing not

22 later than a specified number of days before

23 any hearing at which the results may be in24 troduced into evidence (or, at State option,
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1 not later than a specified number of days

2 after receipt of the results); and

3 ‘‘(iii) making the test results admissi4 ble as evidence of paternity without the need

5 for foundation testimony or other proof of

6 authenticity or accuracy, unless objection is

7 made.

8 ‘‘(G) PRESUMPTION OF PATERNITY IN CER9 TAIN CASES.—Procedures which create a rebutta10 ble or, at the option of the State, conclusive pre11 sumption of paternity upon genetic testing re12 sults indicating a threshold probability that the

13 alleged father is the father of the child.

14 ‘‘(H) DEFAULT ORDERS.—Procedures re15 quiring a default order to be entered in a pater16 nity case upon a showing of service of process on

17 the defendant and any additional showing re18 quired by State law.

19 ‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures

20 providing that the parties to an action to estab21 lish paternity are not entitled to a trial by jury.

22 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

23 ON PROBABLE PATERNITY IN CONTESTED

24 CASES.—Procedures which require that a tem25 porary order be issued, upon motion by a party,
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1 requiring the provision of child support pending

2 an administrative or judicial determination of

3 parentage, if there is clear and convincing evi4 dence of paternity (on the basis of genetic tests

5 or other evidence).

6 ‘‘(K) PROOF OF CERTAIN SUPPORT AND PA7 TERNITY ESTABLISHMENT COSTS.—Procedures

8 under which bills for pregnancy, childbirth, and

9 genetic testing are admissible as evidence with10 out requiring third-party foundation testimony,

11 and shall constitute prima facie evidence of

12 amounts incurred for such services or for testing

13 on behalf of the child.

14 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

15 Procedures ensuring that the putative father has

16 a reasonable opportunity to initiate a paternity

17 action.

18 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

19 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

20 RECORDS.—Procedures under which voluntary

21 acknowledgments and adjudications of paternity

22 by judicial or administrative processes are filed

23 with the State registry of birth records for com24 parison with information in the State case reg25 istry.’’.
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1 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDA2 VIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended

3 by inserting ‘‘, and specify the minimum requirements of

4 an affidavit to be used for the voluntary acknowledgment

5 of paternity which shall include the social security number

6 of each parent and, after consultation with the States, other

7 common elements as determined by such designee’’ before

8 the semicolon.

9 (c) CONFORMING AMENDMENT.—Section 468 (42

10 U.S.C. 668) is amended by striking ‘‘a simple civil process

11 for voluntarily acknowledging paternity and’’.

12 SEC. 2332. OUTREACH FOR VOLUNTARY PATERNITY ESTAB13 LISHMENT.

14 Section 454(23) (42 U.S.C. 654(23)) is amended by

15 inserting ‘‘and will publicize the availability and encourage

16 the use of procedures for voluntary establishment of pater17 nity and child support by means the State deems appro18 priate’’ before the semicolon.

19 SEC. 2333. COOPERATION BY APPLICANTS FOR AND RECIPI20 ENTS OF PART A ASSISTANCE.

21 Section 454 (42 U.S.C. 654), as amended by sections

22 2301(b), 2303(a), 2312(a), and 2313(a) of this Act, is

23 amended—

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

25 (27);
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1 (2) by striking the period at the end of para2 graph (28) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (28) the follow4 ing new paragraph:

5 ‘‘(29) provide that the State agency responsible

6 for administering the State plan—

7 ‘‘(A) shall make the determination (and re8 determination at appropriate intervals) as to

9 whether an individual who has applied for or is

10 receiving assistance under the State program

11 funded under part A, the State program under

12 title XV, or the State program under title XIX

13 is cooperating in good faith with the State in es14 tablishing the paternity of, or in establishing,

15 modifying, or enforcing a support order for, any

16 child of the individual by providing the State

17 agency with the name of, and such other infor18 mation as the State agency may require with re19 spect to, the noncustodial parent of the child,

20 subject to good cause and other exceptions

21 which—

22 ‘‘(i) shall be defined, taking into ac23 count the best interests of the child, and

24 ‘‘(ii) shall be applied in each case,
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1 by, at the option of the State, the State agency

2 administering the State program under part A,

3 this part, title XV, or title XIX;

4 ‘‘(B) shall require the individual to supply

5 additional necessary information and appear at

6 interviews, hearings, and legal proceedings;

7 ‘‘(C) shall require the individual and the

8 child to submit to genetic tests pursuant to judi9 cial or administrative order;

10 ‘‘(D) may request that the individual sign

11 a voluntary acknowledgment of paternity, after

12 notice of the rights and consequences of such an

13 acknowledgment, but may not require the indi14 vidual to sign an acknowledgment or otherwise

15 relinquish the right to genetic tests as a condi16 tion of cooperation and eligibility for assistance

17 under the State program funded under part A,

18 the State program under title XV, or the State

19 program under title XIX; and

20 ‘‘(E) shall promptly notify the individual

21 and the State agency administering the State

22 program funded under part A, the State agency

23 administering the State program under title XV,

24 and the State agency administering the State

25 program under title XIX, of each such deter-
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1 mination, and if noncooperation is determined,

2 the basis therefore.’’.

3 Subchapter E—Program Administration and

4 Funding

5 SEC. 2341. PERFORMANCE-BASED INCENTIVES AND PEN6 ALTIES.

7 (a) DEVELOPMENT OF NEW SYSTEM.—The Secretary

8 of Health and Human Services, in consultation with State

9 directors of programs under part D of title IV of the Social

10 Security Act, shall develop a new incentive system to re11 place, in a revenue neutral manner, the system under sec12 tion 458 of such Act. The new system shall provide addi13 tional payments to any State based on such State’s per14 formance under such a program. Not later than November

15 1, 1996, the Secretary shall report on the new system to

16 the Committee on Ways and Means of the House of Rep17 resentatives and the Committee on Finance of the Senate.

18 (b) CONFORMING AMENDMENTS TO PRESENT SYS19 TEM.—Section 458 (42 U.S.C. 658) is amended—

20 (1) in subsection (a), by striking ‘‘aid to families

21 with dependent children under a State plan approved

22 under part A of this title’’ and inserting ‘‘assistance

23 under a program funded under part A’’;

24 (2) in subsection (b)(1)(A), by striking ‘‘section

25 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’;
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1 (3) in subsections (b) and (c)—

2 (A) by striking ‘‘AFDC collections’’ each

3 place it appears and inserting ‘‘title IV–A collec4 tions’’, and

5 (B) by striking ‘‘non-AFDC collections’’

6 each place it appears and inserting ‘‘non-title

7 IV–A collections’’; and

8 (4) in subsection (c), by striking ‘‘combined

9 AFDC/non-AFDC administrative costs’’ both places it

10 appears and inserting ‘‘combined title IV–A/non-title

11 IV–A administrative costs’’.

12 (c) CALCULATION OF PATERNITY ESTABLISHMENT

13 PERCENTAGE.—

14 (1) Section 452(g)(1)(A) (42 U.S.C.

15 652(g)(1)(A)) is amended by striking ‘‘75’’ and in16 serting ‘‘90’’.

17 (2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

18 amended—

19 (A) by redesignating subparagraphs (B)

20 through (E) as subparagraphs (C) through (F),

21 respectively, and by inserting after subparagraph

22 (A) the following new subparagraph:

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

24 percentage of not less than 75 percent but less than

25 90 percent for such fiscal year, the paternity estab-
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1 lishment percentage of the State for the immediately

2 preceding fiscal year plus 2 percentage points;’’; and

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

4 flush sentence:

5 ‘‘In determining compliance under this section, a State

6 may use as its paternity establishment percentage either the

7 State’s IV–D paternity establishment percentage (as defined

8 in paragraph (2)(A)) or the State’s statewide paternity es9 tablishment percentage (as defined in paragraph (2)(B)).’’.

10 (3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

11 amended—

12 (A) in subparagraph (A)—

13 (i) in the matter preceding clause (i)—

14 (I) by striking ‘‘paternity estab15 lishment percentage’’ and inserting

16 ‘‘IV–D paternity establishment per17 centage’’; and

18 (II) by striking ‘‘(or all States, as

19 the case may be)’’; and

20 (ii) by striking ‘‘and’’ at the end there21 of;

22 (B) by redesignating subparagraph (B) as

23 subparagraph (C) and by inserting after sub24 paragraph (A) the following new subparagraph:
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1 ‘‘(B) the term ‘statewide paternity establishment

2 percentage’ means, with respect to a State for a fiscal

3 year, the ratio (expressed as a percentage) that the

4 total number of minor children—

5 ‘‘(i) who have been born out of wedlock, and

6 ‘‘(ii) the paternity of whom has been estab7 lished or acknowledged during the fiscal year,

8 bears to the total number of children born out of wed9 lock during the preceding fiscal year; and’’.

10 (4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

11 amended—

12 (A) by striking subparagraph (A) and re13 designating subparagraphs (B) and (C) as sub14 paragraphs (A) and (B), respectively; and

15 (B) in subparagraph (A) (as so redesig16 nated), by striking ‘‘the percentage of children

17 born out-of-wedlock in a State’’ and inserting

18 ‘‘the percentage of children in a State who are

19 born out of wedlock or for whom support has not

20 been established’’.

21 (d) EFFECTIVE DATES.—

22 (1) INCENTIVE ADJUSTMENTS.—

23 (A) IN GENERAL.—The system developed under

24 subsection (a) and the amendments made by sub-
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1 section (b) shall become effective on October 1, 1998,

2 except to the extent provided in subparagraph (B).

3 (B) APPLICATION OF SECTION 458.—Section 458

4 of the Social Security Act, as in effect on the day be5 fore the date of the enactment of this section, shall be

6 effective for purposes of incentive payments to States

7 for fiscal years before fiscal year 1999.

8 (2) PENALTY REDUCTIONS.—The amendments

9 made by subsection (c) shall become effective with re10 spect to calendar quarters beginning on or after the

11 date of the enactment of this Act.

12 SEC. 2342. FEDERAL AND STATE REVIEWS AND AUDITS.

13 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

14 U.S.C. 654) is amended—

15 (1) in paragraph (14), by striking ‘‘(14)’’ and

16 inserting ‘‘(14)(A)’’;

17 (2) by redesignating paragraph (15) as subpara18 graph (B) of paragraph (14); and

19 (3) by inserting after paragraph (14) the follow20 ing new paragraph:

21 ‘‘(15) provide for—

22 ‘‘(A) a process for annual reviews of and re23 ports to the Secretary on the State program op24 erated under the State plan approved under this

25 part, including such information as may be nec-
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1 essary to measure State compliance with Federal

2 requirements for expedited procedures, using

3 such standards and procedures as are required

4 by the Secretary, under which the State agency

5 will determine the extent to which the program

6 is operated in compliance with this part; and

7 ‘‘(B) a process of extracting from the auto8 mated data processing system required by para9 graph (16) and transmitting to the Secretary

10 data and calculations concerning the levels of ac11 complishment (and rates of improvement) with

12 respect to applicable performance indicators (in13 cluding paternity establishment percentages) to

14 the extent necessary for purposes of sections

15 452(g) and 458;’’.

16 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

17 U.S.C. 652(a)(4)) is amended to read as follows:

18 ‘‘(4)(A) review data and calculations transmitted

19 by State agencies pursuant to section 454(15)(B) on

20 State program accomplishments with respect to per21 formance indicators for purposes of subsection (g) of

22 this section and section 458;

23 ‘‘(B) review annual reports submitted pursuant

24 to section 454(15)(A) and, as appropriate, provide to

25 the State comments, recommendations for additional
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1 or alternative corrective actions, and technical assist2 ance; and

3 ‘‘(C) conduct audits, in accordance with the Gov4 ernment auditing standards of the Comptroller Gen5 eral of the United States—

6 ‘‘(i) at least once every 3 years (or more fre7 quently, in the case of a State which fails to

8 meet the requirements of this part concerning

9 performance standards and reliability of pro10 gram data) to assess the completeness, reliability,

11 and security of the data and the accuracy of the

12 reporting systems used in calculating perform13 ance indicators under subsection (g) of this sec14 tion and section 458;

15 ‘‘(ii) of the adequacy of financial manage16 ment of the State program operated under the

17 State plan approved under this part, including

18 assessments of—

19 ‘‘(I) whether Federal and other funds

20 made available to carry out the State pro21 gram are being appropriately expended,

22 and are properly and fully accounted for;

23 and
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1 ‘‘(II) whether collections and disburse2 ments of support payments are carried out

3 correctly and are fully accounted for; and

4 ‘‘(iii) for such other purposes as the Sec5 retary may find necessary;’’.

6 (c) EFFECTIVE DATE.—The amendments made by this

7 section shall be effective with respect to calendar quarters

8 beginning 12 months or more after the date of the enactment

9 of this Act.

10 SEC. 2343. REQUIRED REPORTING PROCEDURES.

11 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

12 652(a)(5)) is amended by inserting ‘‘, and establish proce13 dures to be followed by States for collecting and reporting

14 information required to be provided under this part, and

15 establish uniform definitions (including those necessary to

16 enable the measurement of State compliance with the re17 quirements of this part relating to expedited processes) to

18 be applied in following such procedures’’ before the semi19 colon.

20 (b) STATE PLAN REQUIREMENT.—Section 454 (42

21 U.S.C. 654), as amended by sections 2301(b), 2303(a),

22 2312(a), 2313(a), and 2333 of this Act, is amended—

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

24 (28);
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1 (2) by striking the period at the end of para2 graph (29) and inserting ‘‘; and’’; and

3 (3) by adding after paragraph (29) the following

4 new paragraph:

5 ‘‘(30) provide that the State shall use the defini6 tions established under section 452(a)(5) in collecting

7 and reporting information as required under this

8 part.’’.

9 SEC. 2344. AUTOMATED DATA PROCESSING REQUIRE10 MENTS.

11 (a) REVISED REQUIREMENTS.—

12 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

13 654(16)) is amended—

14 (A) by striking ‘‘, at the option of the

15 State,’’;

16 (B) by inserting ‘‘and operation by the

17 State agency’’ after ‘‘for the establishment’’;

18 (C) by inserting ‘‘meeting the requirements

19 of section 454A’’ after ‘‘information retrieval sys20 tem’’;

21 (D) by striking ‘‘in the State and localities

22 thereof, so as (A)’’ and inserting ‘‘so as’’;

23 (E) by striking ‘‘(i)’’; and

24 (F) by striking ‘‘(including’’ and all that

25 follows and inserting a semicolon.
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1 (2) AUTOMATED DATA PROCESSING.—Part D of

2 title IV (42 U.S.C. 651–669) is amended by inserting

3 after section 454 the following new section:

4 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

5 ‘‘(a) IN GENERAL.—In order for a State to meet the

6 requirements of this section, the State agency administering

7 the State program under this part shall have in operation

8 a single statewide automated data processing and informa9 tion retrieval system which has the capability to perform

10 the tasks specified in this section with the frequency and

11 in the manner required by or under this part.

12 ‘‘(b) PROGRAM MANAGEMENT.—The automated system

13 required by this section shall perform such functions as the

14 Secretary may specify relating to management of the State

15 program under this part, including—

16 ‘‘(1) controlling and accounting for use of Fed17 eral, State, and local funds in carrying out the pro18 gram; and

19 ‘‘(2) maintaining the data necessary to meet

20 Federal reporting requirements under this part on a

21 timely basis.

22 ‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—

23 In order to enable the Secretary to determine the incentive

24 payments and penalty adjustments required by sections

25 452(g) and 458, the State agency shall—
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1 ‘‘(1) use the automated system—

2 ‘‘(A) to maintain the requisite data on

3 State performance with respect to paternity es4 tablishment and child support enforcement in the

5 State; and

6 ‘‘(B) to calculate the paternity establish7 ment percentage for the State for each fiscal

8 year; and

9 ‘‘(2) have in place systems controls to ensure the

10 completeness and reliability of, and ready access to,

11 the data described in paragraph (1)(A), and the accu12 racy of the calculations described in paragraph

13 (1)(B).

14 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

15 State agency shall have in effect safeguards on the integrity,

16 accuracy, and completeness of, access to, and use of data

17 in the automated system required by this section, which

18 shall include the following (in addition to such other safe19 guards as the Secretary may specify in regulations):

20 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

21 policies concerning access to data by State agency

22 personnel, and sharing of data with other persons,

23 which—
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1 ‘‘(A) permit access to and use of data only

2 to the extent necessary to carry out the State

3 program under this part; and

4 ‘‘(B) specify the data which may be used for

5 particular program purposes, and the personnel

6 permitted access to such data.

7 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

8 (such as passwords or blocking of fields) to ensure

9 strict adherence to the policies described in paragraph

10 (1).

11 ‘‘(3) MONITORING OF ACCESS.—Routine mon12 itoring of access to and use of the automated system,

13 through methods such as audit trails and feedback

14 mechanisms, to guard against and promptly identify

15 unauthorized access or use.

16 ‘‘(4) TRAINING AND INFORMATION.—Procedures

17 to ensure that all personnel (including State and local

18 agency staff and contractors) who may have access to

19 or be required to use confidential program data are

20 informed of applicable requirements and penalties

21 (including those in section 6103 of the Internal Reve22 nue Code of 1986), and are adequately trained in se23 curity procedures.

24 ‘‘(5) PENALTIES.—Administrative penalties (up

25 to and including dismissal from employment) for un-
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1 authorized access to, or disclosure or use of, confiden2 tial data.’’.

3 (3) REGULATIONS.—The Secretary of Health and

4 Human Services shall prescribe final regulations for

5 implementation of section 454A of the Social Security

6 Act not later than 2 years after the date of the enact7 ment of this Act.

8 (4) IMPLEMENTATION TIMETABLE.—Section

9 454(24) (42 U.S.C. 654(24)), as amended by section

10 2303(a)(1) of this Act, is amended to read as follows:

11 ‘‘(24) provide that the State will have in effect

12 an automated data processing and information re13 trieval system—

14 ‘‘(A) by October 1, 1997, which meets all re15 quirements of this part which were enacted on or

16 before the date of enactment of the Family Sup17 port Act of 1988, and

18 ‘‘(B) by October 1, 2000, which meets all re19 quirements of this part enacted on or before the

20 date of the enactment of the Personal Respon21 sibility and Work Opportunity Act of 1996, ex22 cept that such deadline shall be extended by 1

23 day for each day (if any) by which the Secretary

24 fails to meet the deadline imposed by section
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1 2344(a)(3) of the Personal Responsibility and

2 Work Opportunity Act of 1996;’’.

3 (b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL4 OPMENT COSTS OF AUTOMATED SYSTEMS.—

5 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

6 655(a)) is amended—

7 (A) in paragraph (1)(B)—

8 (i) by striking ‘‘90 percent’’ and in9 serting ‘‘the percent specified in paragraph

10 (3)’’;

11 (ii) by striking ‘‘so much of’’; and

12 (iii) by striking ‘‘which the Secretary’’

13 and all that follows and inserting ‘‘, and’’;

14 and

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

16 paragraph:

17 ‘‘(3)(A) The Secretary shall pay to each State, for each

18 quarter in fiscal years 1996 and 1997, 90 percent of so

19 much of the State expenditures described in paragraph

20 (1)(B) as the Secretary finds are for a system meeting the

21 requirements specified in section 454(16) (as in effect on

22 September 30, 1995) but limited to the amount approved

23 for States in the advance planning documents of such States

24 submitted on or before September 30, 1995. Notwithstand25 ing the preceding sentence, any payment to a State with
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1 respect to fiscal year 1997 shall be made in one payment

2 in fiscal year 1998.

3 ‘‘(B)(i) The Secretary shall pay to each State, for each

4 quarter in fiscal years 1996 through 2001, the percentage

5 specified in clause (ii) of so much of the State expenditures

6 described in paragraph (1)(B) as the Secretary finds are

7 for a system meeting the requirements of sections 454(16)

8 and 454A.

9 ‘‘(ii) The percentage specified in this clause is 80 per10 cent.’’.

11 (2) TEMPORARY LIMITATION ON PAYMENTS

12 UNDER SPECIAL FEDERAL MATCHING RATE.—

13 (A) IN GENERAL.—The Secretary of Health

14 and Human Services may not pay more than

15 $400,000,000 in the aggregate under section

16 455(a)(3)(B) of the Social Security Act for fiscal

17 years 1996 through 2001.

18 (B) ALLOCATION OF LIMITATION AMONG

19 STATES.—The total amount payable to a State

20 under section 455(a)(3)(B) of such Act for fiscal

21 years 1996 through 2001 shall not exceed the

22 limitation determined for the State by the Sec23 retary of Health and Human Services in regula24 tions.
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1 (C) ALLOCATION FORMULA.—The regula2 tions referred to in subparagraph (B) shall pre3 scribe a formula for allocating the amount speci4 fied in subparagraph (A) among States with

5 plans approved under part D of title IV of the

6 Social Security Act, which shall take into ac7 count—

8 (i) the relative size of State caseloads

9 under such part; and

10 (ii) the level of automation needed to

11 meet the automated data processing require12 ments of such part.

13 (c) CONFORMING AMENDMENT.—Section 123(c) of the

14 Family Support Act of 1988 (102 Stat. 2352; Public Law

15 100–485) is repealed.

16 SEC. 2345. TECHNICAL ASSISTANCE.

17 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

18 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPECIAL

19 PROJECTS OF REGIONAL OR NATIONAL SIGNIFICANCE.—

20 Section 452 (42 U.S.C. 652) is amended by adding at the

21 end the following new subsection:

22 ‘‘(j) Out of any money in the Treasury of the United

23 States not otherwise appropriated, there is hereby appro24 priated to the Secretary for each fiscal year (beginning with

25 fiscal year 1998) an amount equal to 1 percent of the total
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1 amount paid to the Federal Government pursuant to section

2 457(a) during the immediately preceding fiscal year (as de3 termined on the basis of the most recent reliable data avail4 able to the Secretary as of the end of the 3rd calendar quar5 ter following the end of such preceding fiscal year), to cover

6 costs incurred by the Secretary for—

7 ‘‘(1) information dissemination and technical as8 sistance to States, training of State and Federal staff,

9 staffing studies, and related activities needed to im10 prove programs under this part (including technical

11 assistance concerning State automated systems re12 quired by this part); and

13 ‘‘(2) research, demonstration, and special

14 projects of regional or national significance relating

15 to the operation of State programs under this part.

16 The amount appropriated under this subsection shall re17 main available until expended.’’.

18 (b) OPERATION OF FEDERAL PARENT LOCATOR SERV19 ICE.—Section 453 (42 U.S.C. 653), as amended by section

20 2316 of this Act, is amended by adding at the end the fol21 lowing new subsection:

22 ‘‘(o) RECOVERY OF COSTS.—Out of any money in the

23 Treasury of the United States not otherwise appropriated,

24 there is hereby appropriated to the Secretary for each fiscal

25 year an amount equal to 2 percent of the total amount paid
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1 to the Federal Government pursuant to section 457(a) dur2 ing the immediately preceding fiscal year (as determined

3 on the basis of the most recent reliable data available to

4 the Secretary as of the end of the 3rd calendar quarter fol5 lowing the end of such preceding fiscal year), to cover costs

6 incurred by the Secretary for operation of the Federal Par7 ent Locator Service under this section, to the extent such

8 costs are not recovered through user fees.’’.

9 SEC. 2346. REPORTS AND DATA COLLECTION BY THE SEC10 RETARY.

11 (a) ANNUAL REPORT TO CONGRESS.—

12 (1) Section 452(a)(10)(A) (42 U.S.C.

13 652(a)(10)(A)) is amended—

14 (A) by striking ‘‘this part;’’ and inserting

15 ‘‘this part, including—’’; and

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

17 clauses:

18 ‘‘(i) the total amount of child support

19 payments collected as a result of services

20 furnished during the fiscal year to individ21 uals receiving services under this part;

22 ‘‘(ii) the cost to the States and to the

23 Federal Government of so furnishing the

24 services; and
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1 ‘‘(iii) the number of cases involving

2 families—

3 ‘‘(I) who became ineligible for as4 sistance under State programs funded

5 under part A during a month in the

6 fiscal year; and

7 ‘‘(II) with respect to whom a child

8 support payment was received in the

9 month;’’.

10 (2) Section 452(a)(10)(C) (42 U.S.C.

11 652(a)(10)(C)) is amended—

12 (A) in the matter preceding clause (i)—

13 (i) by striking ‘‘with the data required

14 under each clause being separately stated

15 for cases’’ and inserting ‘‘separately stated

16 for cases’’;

17 (ii) by striking ‘‘cases where the child

18 was formerly receiving’’ and inserting ‘‘or

19 formerly received’’;

20 (iii) by inserting ‘‘or 1912’’ after

21 ‘‘471(a)(17)’’; and

22 (iv) by inserting ‘‘for’’ before ‘‘all

23 other’’;

24 (B) in each of clauses (i) and (ii), by strik25 ing ‘‘, and the total amount of such obligations’’;
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1 (C) in clause (iii), by striking ‘‘described

2 in’’ and all that follows and inserting ‘‘in which

3 support was collected during the fiscal year;’’;

4 (D) by striking clause (iv); and

5 (E) by redesignating clause (v) as clause

6 (vii), and inserting after clause (iii) the follow7 ing new clauses:

8 ‘‘(iv) the total amount of support col9 lected during such fiscal year and distrib10 uted as current support;

11 ‘‘(v) the total amount of support col12 lected during such fiscal year and distrib13 uted as arrearages;

14 ‘‘(vi) the total amount of support due

15 and unpaid for all fiscal years; and’’.

16 (3) Section 452(a)(10)(G) (42 U.S.C.

17 652(a)(10)(G)) is amended by striking ‘‘on the use of

18 Federal courts and’’.

19 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

20 amended—

21 (A) in subparagraph (H), by striking

22 ‘‘and’’;

23 (B) in subparagraph (I), by striking the pe24 riod and inserting ‘‘; and’’; and
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1 (C) by inserting after subparagraph (I) the

2 following new subparagraph:

3 ‘‘(J) compliance, by State, with the stand4 ards established pursuant to subsections (h) and

5 (i).’’.

6 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

7 amended by striking all that follows subparagraph

8 (J), as added by paragraph (4).

9 (b) EFFECTIVE DATE.—The amendments made by sub10 section (a) shall be effective with respect to fiscal year 1997

11 and succeeding fiscal years.

12 Subchapter F—Establishment and

13 Modification of Support Orders

14 SEC. 2351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST15 MENT OF CHILD SUPPORT ORDERS.

16 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended

17 to read as follows:

18 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

19 ORDERS UPON REQUEST.—Procedures under which

20 the State shall review and adjust each support order

21 being enforced under this part if there is an assign22 ment under part A or upon the request of either par23 ent, and may review and adjust any other support

24 order being enforced under this part. Such procedures

25 shall provide the following:
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1 ‘‘(A) IN GENERAL.—

2 ‘‘(i) 3-YEAR CYCLE.—Except as pro3 vided in subparagraphs (B) and (C), the

4 State shall review and, as appropriate, ad5 just the support order every 3 years, taking

6 into account the best interests of the child

7 involved.

8 ‘‘(ii) METHODS OF ADJUSTMENT.—The

9 State may elect to review and, if appro10 priate, adjust an order pursuant to clause

11 (i) by—

12 ‘‘(I) reviewing and, if appro13 priate, adjusting the order in accord14 ance with the guidelines established

15 pursuant to section 467(a) if the

16 amount of the child support award

17 under the order differs from the

18 amount that would be awarded in ac19 cordance with the guidelines; or

20 ‘‘(II) applying a cost-of-living ad21 justment to the order in accordance

22 with a formula developed by the State

23 and permit either party to contest the

24 adjustment, within 30 days after the

25 date of the notice of the adjustment, by
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1 making a request for review and, if ap2 propriate, adjustment of the order in

3 accordance with the child support

4 guidelines established pursuant to sec5 tion 467(a).

6 ‘‘(iii) NO PROOF OF CHANGE IN CIR7 CUMSTANCES NECESSARY.—Any adjustment

8 under this subparagraph (A) shall be made

9 without a requirement for proof or showing

10 of a change in circumstances.

11 ‘‘(B) AUTOMATED METHOD.—The State

12 may use automated methods (including auto13 mated comparisons with wage or State income

14 tax data) to identify orders eligible for review,

15 conduct the review, identify orders eligible for

16 adjustment, and apply the appropriate adjust17 ment to the orders eligible for adjustment under

18 the threshold established by the State.

19 ‘‘(C) REQUEST UPON SUBSTANTIAL CHANGE

20 IN CIRCUMSTANCES.—The State shall, at the re21 quest of either parent subject to such an order or

22 of any State child support enforcement agency,

23 review and, if appropriate, adjust the order in

24 accordance with the guidelines established pursu-
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1 ant to section 467(a) based upon a substantial

2 change in the circumstances of either parent.

3 ‘‘(D) NOTICE OF RIGHT TO REVIEW.—The

4 State shall provide notice not less than once

5 every 3 years to the parents subject to such an

6 order informing them of their right to request the

7 State to review and, if appropriate, adjust the

8 order pursuant to this paragraph. The notice

9 may be included in the order.’’.

10 SEC. 2352. FURNISHING CONSUMER REPORTS FOR CERTAIN

11 PURPOSES RELATING TO CHILD SUPPORT.

12 Section 604 of the Fair Credit Reporting Act (15

13 U.S.C. 1681b) is amended by adding at the end the follow14 ing new paragraphs:

15 ‘‘(4) In response to a request by the head of a State

16 or local child support enforcement agency (or a State or

17 local government official authorized by the head of such an

18 agency), if the person making the request certifies to the

19 consumer reporting agency that—

20 ‘‘(A) the consumer report is needed for the pur21 pose of establishing an individual’s capacity to make

22 child support payments or determining the appro23 priate level of such payments;

24 ‘‘(B) the paternity of the consumer for the child

25 to which the obligation relates has been established or
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1 acknowledged by the consumer in accordance with

2 State laws under which the obligation arises (if re3 quired by those laws);

4 ‘‘(C) the person has provided at least 10 days’

5 prior notice to the consumer whose report is requested,

6 by certified or registered mail to the last known ad7 dress of the consumer, that the report will be re8 quested; and

9 ‘‘(D) the consumer report will be kept confiden10 tial, will be used solely for a purpose described in

11 subparagraph (A), and will not be used in connection

12 with any other civil, administrative, or criminal pro13 ceeding, or for any other purpose.

14 ‘‘(5) To an agency administering a State plan under

15 section 454 of the Social Security Act (42 U.S.C. 654) for

16 use to set an initial or modified child support award.’’.

17 SEC. 2353. NONLIABILITY FOR FINANCIAL INSTITUTIONS

18 PROVIDING FINANCIAL RECORDS TO STATE

19 CHILD SUPPORT ENFORCEMENT AGENCIES

20 IN CHILD SUPPORT CASES.

21 Part D of title IV (42 U.S.C. 651–669) is amended

22 by adding at the end the following:
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1 ‘‘SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS

2 PROVIDING FINANCIAL RECORDS TO STATE

3 CHILD SUPPORT ENFORCEMENT AGENCIES

4 IN CHILD SUPPORT CASES.

5 ‘‘(a) IN GENERAL.—Notwithstanding any other provi6 sion of Federal or State law, a financial institution shall

7 not be liable under any Federal or State law to any person

8 for disclosing any financial record of an individual to a

9 State child support enforcement agency attempting to estab10 lish, modify, or enforce a child support obligation of such

11 individual.

12 ‘‘(b) PROHIBITION OF DISCLOSURE OF FINANCIAL

13 RECORD OBTAINED BY STATE CHILD SUPPORT ENFORCE14 MENT AGENCY.—A State child support enforcement agency

15 which obtains a financial record of an individual from a

16 financial institution pursuant to subsection (a) may dis17 close such financial record only for the purpose of, and to

18 the extent necessary in, establishing, modifying, or enforc19 ing a child support obligation of such individual.

20 ‘‘(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO21 SURE.—

22 ‘‘(1) DISCLOSURE BY STATE OFFICER OR EM23 PLOYEE.—If any person knowingly, or by reason of

24 negligence, discloses a financial record of an individ25 ual in violation of subsection (b), such individual
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1 may bring a civil action for damages against such

2 person in a district court of the United States.

3 ‘‘(2) NO LIABILITY FOR GOOD FAITH BUT ERRO4 NEOUS INTERPRETATION.—No liability shall arise

5 under this subsection with respect to any disclosure

6 which results from a good faith, but erroneous, inter7 pretation of subsection (b).

8 ‘‘(3) DAMAGES.—In any action brought under

9 paragraph (1), upon a finding of liability on the part

10 of the defendant, the defendant shall be liable to the

11 plaintiff in an amount equal to the sum of—

12 ‘‘(A) the greater of—

13 ‘‘(i) $1,000 for each act of unauthor14 ized disclosure of a financial record with re15 spect to which such defendant is found lia16 ble; or

17 ‘‘(ii) the sum of—

18 ‘‘(I) the actual damages sustained

19 by the plaintiff as a result of such un20 authorized disclosure; plus

21 ‘‘(II) in the case of a willful dis22 closure or a disclosure which is the re23 sult of gross negligence, punitive dam24 ages; plus
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1 ‘‘(B) the costs (including attorney’s fees) of

2 the action.

3 ‘‘(d) DEFINITIONS.—For purposes of this section—

4 ‘‘(1) FINANCIAL INSTITUTION.—The term ‘finan5 cial institution’ means—

6 ‘‘(A) a depository institution, as defined in

7 section 3(c) of the Federal Deposit Insurance Act

8 (12 U.S.C. 1813(c));

9 ‘‘(B) an institution-affiliated party, as de10 fined in section 3(u) of such Act (12 U.S.C.

11 1813(u));

12 ‘‘(C) any Federal credit union or State

13 credit union, as defined in section 101 of the

14 Federal Credit Union Act (12 U.S.C. 1752), in15 cluding an institution-affiliated party of such a

16 credit union, as defined in section 206(r) of such

17 Act (12 U.S.C. 1786(r)); and

18 ‘‘(D) any benefit association, insurance

19 company, safe deposit company, money-market

20 mutual fund, or similar entity authorized to do

21 business in the State.

22 ‘‘(2) FINANCIAL RECORD.—The term ‘financial

23 record’ has the meaning given such term in section

24 1101 of the Right to Financial Privacy Act of 1978

25 (12 U.S.C. 3401).’’.
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1 Subchapter G—Enforcement of Support

2 Orders

3 SEC. 2361. INTERNAL REVENUE SERVICE COLLECTION OF

4 ARREARAGES.

5 (a) COLLECTION OF FEES.—Section 6305(a) of the In6 ternal Revenue Code of 1986 (relating to collection of cer7 tain 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 para13 graph:

14 ‘‘(5) no additional fee may be assessed for adjust15 ments to an amount previously certified pursuant to

16 such section 452(b) with respect to the same obligor.’’;

17 and

18 (4) by striking ‘‘Secretary of Health, Education,

19 and Welfare’’ each place it appears and inserting

20 ‘‘Secretary of Health and Human Services’’.

21 (b) EFFECTIVE DATE.—The amendments made by this

22 section shall become effective October 1, 1997.
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1 SEC. 2362. AUTHORITY TO COLLECT SUPPORT FROM FED2 ERAL EMPLOYEES.

3 (a) CONSOLIDATION AND STREAMLINING OF AUTHORI4 TIES.—Section 459 (42 U.S.C. 659) is amended to read as

5 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 of

18 the Armed Forces of the United States, shall be subject, in

19 like manner and to the same extent as if the United States

20 or the District of Columbia were a private person, to with21 holding in accordance with State law enacted pursuant to

22 subsections (a)(1) and (b) of section 466 and regulations

23 of the Secretary under such subsections, and to any other

24 legal process brought, by a State agency administering a

25 program under a State plan approved under this part or
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1 by an individual obligee, to enforce the legal obligation of

2 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 obligations

7 against an individual (if the order or process contains or

8 is accompanied by sufficient data to permit prompt identi9 fication of the individual and the moneys involved), each

10 governmental entity specified in subsection (a) shall be sub11 ject to the same requirements as would apply if the entity

12 were a private person, except as otherwise provided in this

13 section.

14 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

15 OR PROCESS—

16 ‘‘(1) DESIGNATION OF AGENT.—The head of each

17 agency subject to this section shall—

18 ‘‘(A) designate an agent or agents to receive

19 orders and accept service of process in matters

20 relating to child support or alimony; and

21 ‘‘(B) annually publish in the Federal Reg22 ister the designation of the agent or agents, iden23 tified by title or position, mailing address, and

24 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) of

5 section 466, or is effectively served with any order,

6 process, or interrogatory, with respect to an individ7 ual’s child support or alimony payment obligations,

8 the agent shall—

9 ‘‘(A) as soon as possible (but not later than

10 15 days) thereafter, send written notice of the no11 tice or service (together with a copy of the notice

12 or service) to the individual at the duty station

13 or last-known home address of the individual;

14 ‘‘(B) within 30 days (or such longer period

15 as may be prescribed by applicable State law)

16 after receipt of a notice pursuant to such State

17 procedures, comply with all applicable provi18 sions of section 466; and

19 ‘‘(C) within 30 days (or such longer period

20 as may be prescribed by applicable State law)

21 after effective service of any other such order,

22 process, or interrogatory, respond to the order,

23 process, or interrogatory.

24 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

25 specified in subsection (a) receives notice or is served with
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1 process, as provided in this section, concerning amounts

2 owed by an individual to more than 1 person—

3 ‘‘(1) support collection under section 466(b) must

4 be given priority over any other process, as provided

5 in section 466(b)(7);

6 ‘‘(2) allocation of moneys due or payable to an

7 individual among claimants under section 466(b)

8 shall be governed by section 466(b) and the regula9 tions prescribed under such section; and

10 ‘‘(3) such moneys as remain after compliance

11 with paragraphs (1) and (2) shall be available to sat12 isfy any other such processes on a first-come, first13 served basis, with any such process being satisfied out

14 of such moneys as remain after the satisfaction of all

15 such processes which have been previously served.

16 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A gov17 ernmental entity that is affected by legal process served for

18 the enforcement of an individual’s child support or alimony

19 payment obligations shall not be required to vary its nor20 mal pay and disbursement cycle in order to comply with

21 the legal process.

22 ‘‘(f) RELIEF FROM LIABILITY.—

23 ‘‘(1) Neither the United States, nor the govern24 ment of the District of Columbia, nor any disbursing

25 officer shall be liable with respect to any payment
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1 made from moneys due or payable from the United

2 States to any individual pursuant to legal process

3 regular on its face, if the payment is made in accord4 ance with this section and the regulations issued to

5 carry out this section.

6 ‘‘(2) No Federal employee whose duties include

7 taking actions necessary to comply with the require8 ments of subsection (a) with regard to any individual

9 shall be subject under any law to any disciplinary ac10 tion or civil or criminal liability or penalty for, or

11 on account of, any disclosure of information made by

12 the employee in connection with the carrying out of

13 such actions.

14 ‘‘(g) REGULATIONS.—Authority to promulgate regula15 tions for the implementation of this section shall, insofar

16 as this section applies to moneys due from (or payable

17 by)—

18 ‘‘(1) the United States (other than the legislative

19 or judicial branches of the Federal Government) or

20 the government of the District of Columbia, be vested

21 in the President (or the designee of the President);

22 ‘‘(2) the legislative branch of the Federal Govern23 ment, be vested jointly in the President pro tempore

24 of the Senate and the Speaker of the House of Rep25 resentatives (or their designees), and
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1 ‘‘(3) the judicial branch of the Federal Govern2 ment, be vested in the Chief Justice of the United

3 States (or the designee of the Chief Justice).

4 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

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

6 moneys paid or payable to an individual which are

7 considered to be based upon remuneration for employ8 ment, for purposes of this section—

9 ‘‘(A) consist of—

10 ‘‘(i) compensation paid or payable for

11 personal services of the individual, whether

12 the compensation is denominated as wages,

13 salary, commission, bonus, pay, allowances,

14 or otherwise (including severance pay, sick

15 pay, and incentive pay);

16 ‘‘(ii) periodic benefits (including a

17 periodic benefit as defined in section

18 228(h)(3)) or other payments—

19 ‘‘(I) under the insurance system

20 established by title II;

21 ‘‘(II) under any other system or

22 fund established by the United States

23 which provides for the payment of pen24 sions, retirement or retired pay, annu25 ities, dependents’ or survivors’ benefits,
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1 or similar amounts payable on account

2 of personal services performed by the

3 individual or any other individual;

4 ‘‘(III) as compensation for death

5 under any Federal program;

6 ‘‘(IV) under any Federal program

7 established to provide ‘black lung’ bene8 fits; or

9 ‘‘(V) by the Secretary of Veterans

10 Affairs as compensation for a service11 connected disability paid by the Sec12 retary to a former member of the

13 Armed Forces who is in receipt of re14 tired or retainer pay if the former

15 member has waived a portion of the re16 tired or retainer pay in order to re17 ceive such compensation; and

18 ‘‘(iii) worker’s compensation benefits

19 paid under Federal or State law but

20 ‘‘(B) do not include any payment—

21 ‘‘(i) by way of reimbursement or other22 wise, to defray expenses incurred by the in23 dividual in carrying out duties associated

24 with the employment of the individual; or
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1 ‘‘(ii) as allowances for members of the

2 uniformed services payable pursuant to

3 chapter 7 of title 37, United States Code, as

4 prescribed by the Secretaries concerned (de5 fined by section 101(5) of such title) as nec6 essary for the efficient performance of duty.

7 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter8 mining the amount of any moneys due from, or pay9 able by, the United States to any individual, there

10 shall be excluded amounts which—

11 ‘‘(A) are owed by the individual to the

12 United States;

13 ‘‘(B) are required by law to be, and are, de14 ducted from the remuneration or other payment

15 involved, including Federal employment taxes,

16 and fines and forfeitures ordered by court-mar17 tial;

18 ‘‘(C) are properly withheld for Federal,

19 State, or local income tax purposes, if the with20 holding of the amounts is authorized or required

21 by law and if amounts withheld are not greater

22 than would be the case if the individual claimed

23 all dependents to which he was entitled (the

24 withholding of additional amounts pursuant to

25 section 3402(i) of the Internal Revenue Code of
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1 1986 may be permitted only when the individual

2 presents evidence of a tax obligation which sup3 ports the additional withholding);

4 ‘‘(D) are deducted as health insurance pre5 miums;

6 ‘‘(E) are deducted as normal retirement

7 contributions (not including amounts deducted

8 for supplementary coverage); or

9 ‘‘(F) are deducted as normal life insurance

10 premiums from salary or other remuneration for

11 employment (not including amounts deducted for

12 supplementary coverage).

13 ‘‘(i) DEFINITIONS.—For purposes of this section—

14 ‘‘(1) UNITED STATES.—The term ‘United States’

15 includes any department, agency, or instrumentality

16 of the legislative, judicial, or executive branch of the

17 Federal Government, the United States Postal Serv18 ice, the Postal Rate Commission, any Federal cor19 poration created by an Act of Congress that is wholly

20 owned by the Federal Government, and the govern21 ments of the territories and possessions of the United

22 States.

23 ‘‘(2) CHILD SUPPORT.—The term ‘child support’,

24 when used in reference to the legal obligations of an

25 individual to provide such support, means amounts
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1 required to be paid under a judgment, decree, or

2 order, whether temporary, final, or subject to modi3 fication, issued by a court or an administrative agen4 cy of competent jurisdiction, for the support and

5 maintenance of a child, including a child who has at6 tained the age of majority under the law of the issu7 ing State, or a child and the parent with whom the

8 child is living, which provides for monetary support,

9 health care, arrearages or reimbursement, and which

10 may include other related costs and fees, interest and

11 penalties, income withholding, attorney’s fees, and

12 other relief.

13 ‘‘(3) ALIMONY.—

14 ‘‘(A) IN GENERAL.—The term ‘alimony’,

15 when used in reference to the legal obligations of

16 an individual to provide the same, means peri17 odic payments of funds for the support and

18 maintenance of the spouse (or former spouse) of

19 the individual, and (subject to and in accordance

20 with State law) includes separate maintenance,

21 alimony pendente lite, maintenance, and spousal

22 support, and includes attorney’s fees, interest,

23 and court costs when and to the extent that the

24 same are expressly made recoverable as such pur25 suant to a decree, order, or judgment issued in
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1 accordance with applicable State law by a court

2 of competent jurisdiction.

3 ‘‘(B) EXCEPTIONS.—Such term does not in4 clude—

5 ‘‘(i) any child support; or

6 ‘‘(ii) any payment or transfer of prop7 erty or its value by an individual to the

8 spouse or a former spouse of the individual

9 in compliance with any community prop10 erty settlement, equitable distribution of

11 property, or other division of property be12 tween spouses or former spouses.

13 ‘‘(4) PRIVATE PERSON.—The term ‘private per14 son’ means a person who does not have sovereign or

15 other special immunity or privilege which causes the

16 person not to be subject to legal process.

17 ‘‘(5) LEGAL PROCESS.—The term ‘legal process’

18 means any writ, order, summons, or other similar

19 process in the nature of garnishment—

20 ‘‘(A) which is issued by—

21 ‘‘(i) a court or an administrative agen22 cy of competent jurisdiction in any State,

23 territory, or possession of the United States;

24 ‘‘(ii) a court or an administrative

25 agency of competent jurisdiction in any for-
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1 eign country with which the United States

2 has entered into an agreement which re3 quires the United States to honor the proc4 ess; or

5 ‘‘(iii) an authorized official pursuant

6 to an order of such a court or an adminis7 trative agency of competent jurisdiction or

8 pursuant to State or local law; and

9 ‘‘(B) which is directed to, and the purpose

10 of which is to compel, a governmental entity

11 which holds moneys which are otherwise payable

12 to an individual to make a payment from the

13 moneys to another party in order to satisfy a

14 legal obligation of the individual to provide child

15 support or make alimony payments.’’.

16 (b) CONFORMING AMENDMENTS.—

17 (1) TO PART D OF TITLE IV.—Sections 461 and

18 462 (42 U.S.C. 661 and 662) are repealed.

19 (2) TO TITLE 5, UNITED STATES CODE.—Section

20 5520a of title 5, United States Code, is amended, in

21 subsections (h)(2) and (i), by striking ‘‘sections 459,

22 461, and 462 of the Social Security Act (42 U.S.C.

23 659, 661, and 662)’’ and inserting ‘‘section 459 of the

24 Social Security Act (42 U.S.C. 659)’’.

25 (c) MILITARY RETIRED AND RETAINER PAY.—
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1 (1) DEFINITION OF COURT.—Section 1408(a)(1)

2 of title 10, United States Code, is amended—

3 (A) by striking ‘‘and’’ at the end of sub4 paragraph (B);

5 (B) by striking the period at the end of sub6 paragraph (C) and inserting ‘‘; and’’; and

7 (C) by adding after subparagraph (C) the

8 following new subparagraph:

9 ‘‘(D) any administrative or judicial tribu10 nal of a State competent to enter orders for sup11 port or maintenance (including a State agency

12 administering a program under a State plan ap13 proved under part D of title IV of the Social Se14 curity Act), and, for purposes of this subpara15 graph, the term ‘State’ includes the District of

16 Columbia, the Commonwealth of Puerto Rico, the

17 Virgin Islands, Guam, and American Samoa.’’.

18 (2) DEFINITION OF COURT ORDER.—Section

19 1408(a)(2) of such title is amended—

20 (A) by inserting ‘‘or a support order, as de21 fined in section 453(p) of the Social Security Act

22 (42 U.S.C. 653(p)),’’ before ‘‘which—’’;

23 (B) in subparagraph (B)(i), by striking

24 ‘‘(as defined in section 462(b) of the Social Secu25 rity Act (42 U.S.C. 662(b)))’’ and inserting ‘‘(as
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1 defined in section 459(i)(2) of the Social Secu2 rity Act (42 U.S.C. 659(i)(2)))’’; and

3 (C) in subparagraph (B)(ii), by striking

4 ‘‘(as defined in section 462(c) of the Social Secu5 rity Act (42 U.S.C. 662(c)))’’ and inserting ‘‘(as

6 defined in section 459(i)(3) of the Social Secu7 rity Act (42 U.S.C. 659(i)(3)))’’.

8 (3) PUBLIC PAYEE.—Section 1408(d) of such

9 title is amended—

10 (A) in the heading, by inserting ‘‘(OR FOR

11 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

12 (B) in paragraph (1), in the 1st sentence,

13 by inserting ‘‘(or for the benefit of such spouse

14 or former spouse to a State disbursement unit es15 tablished pursuant to section 454B of the Social

16 Security Act or other public payee designated by

17 a State, in accordance with part D of title IV of

18 the Social Security Act, as directed by court

19 order, or as otherwise directed in accordance

20 with such part D)’’ before ‘‘in an amount suffi21 cient’’.

22 (4) RELATIONSHIP TO PART D OF TITLE IV.—

23 Section 1408 of such title is amended by adding at

24 the end the following new subsection:
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1 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

2 involving an order providing for payment of child support

3 (as defined in section 459(i)(2) of the Social Security Act)

4 by a member who has never been married to the other par5 ent of the child, the provisions of this section shall not

6 apply, and the case shall be subject to the provisions of sec7 tion 459 of such Act.’’.

8 (d) EFFECTIVE DATE.—The amendments made by this

9 section shall become effective 6 months after the date of the

10 enactment of this Act.

11 SEC. 2363. ENFORCEMENT OF CHILD SUPPORT OBLIGA12 TIONS OF MEMBERS OF THE ARMED FORCES.

13 (a) AVAILABILITY OF LOCATOR INFORMATION.—

14 (1) MAINTENANCE OF ADDRESS INFORMATION.—

15 The Secretary of Defense shall establish a centralized

16 personnel locator service that includes the address of

17 each member of the Armed Forces under the jurisdic18 tion of the Secretary. Upon request of the Secretary

19 of Transportation, addresses for members of the Coast

20 Guard shall be included in the centralized personnel

21 locator service.

22 (2) TYPE OF ADDRESS.—

23 (A) RESIDENTIAL ADDRESS.—Except as

24 provided in subparagraph (B), the address for a

25 member of the Armed Forces shown in the loca-
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1 tor service shall be the residential address of that

2 member.

3 (B) DUTY ADDRESS.—The address for a

4 member of the Armed Forces shown in the loca5 tor service shall be the duty address of that mem6 ber in the case of a member—

7 (i) who is permanently assigned over8 seas, to a vessel, or to a routinely deployable

9 unit; or

10 (ii) with respect to whom the Secretary

11 concerned makes a determination that the

12 member’s residential address should not be

13 disclosed due to national security or safety

14 concerns.

15 (3) UPDATING OF LOCATOR INFORMATION.—

16 Within 30 days after a member listed in the locator

17 service establishes a new residential address (or a new

18 duty address, in the case of a member covered by

19 paragraph (2)(B)), the Secretary concerned shall up20 date the locator service to indicate the new address of

21 the member.

22 (4) AVAILABILITY OF INFORMATION.—The Sec23 retary of Defense shall make information regarding

24 the address of a member of the Armed Forces listed

25 in the locator service available, on request, to the Fed-
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1 eral Parent Locator Service established under section

2 453 of the Social Security Act.

3 (b) FACILITATING GRANTING OF LEAVE FOR ATTEND4 ANCE AT HEARINGS.—

5 (1) REGULATIONS.—The Secretary of each mili6 tary department, and the Secretary of Transportation

7 with respect to the Coast Guard when it is not operat8 ing as a service in the Navy, shall prescribe regula9 tions to facilitate the granting of leave to a member

10 of the Armed Forces under the jurisdiction of that

11 Secretary in a case in which—

12 (A) the leave is needed for the member to at13 tend a hearing described in paragraph (2);

14 (B) the member is not serving in or with a

15 unit deployed in a contingency operation (as de16 fined in section 101 of title 10, United States

17 Code); and

18 (C) the exigencies of military service (as de19 termined by the Secretary concerned) do not oth20 erwise require that such leave not be granted.

21 (2) COVERED HEARINGS.—Paragraph (1) ap22 plies to a hearing that is conducted by a court or

23 pursuant to an administrative process established

24 under State law, in connection with a civil action—
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1 (A) to determine whether a member of the

2 Armed Forces is a natural parent of a child; or

3 (B) to determine an obligation of a member

4 of the Armed Forces to provide child support.

5 (3) DEFINITIONS.—For purposes of this sub6 section—

7 (A) The term ‘‘court’’ has the meaning

8 given that term in section 1408(a) of title 10,

9 United States Code.

10 (B) The term ‘‘child support’’ has the mean11 ing given such term in section 459(i) of the So12 cial Security Act (42 U.S.C. 659(i)).

13 (c) PAYMENT OF MILITARY RETIRED PAY IN COMPLI14 ANCE WITH CHILD SUPPORT ORDERS.—

15 (1) DATE OF CERTIFICATION OF COURT

16 ORDER.—Section 1408 of title 10, United States Code,

17 as amended by section 2362(c)(4) of this Act, is

18 amended—

19 (A) by redesignating subsections (i) and (j)

20 as subsections (j) and (k), respectively; and

21 (B) by inserting after subsection (h) the fol22 lowing new subsection:

23 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

24 the date of a certification of the authenticity or completeness

25 of a copy of a court order for child support received by the
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1 Secretary concerned for the purposes of this section be recent

2 in relation to the date of receipt by the Secretary.’’.

3 (2) PAYMENTS CONSISTENT WITH ASSIGNMENTS

4 OF RIGHTS TO STATES.—Section 1408(d)(1) of such

5 title is amended by inserting after the 1st sentence the

6 following new sentence: ‘‘In the case of a spouse or

7 former spouse who, pursuant to section 408(a)(4) of

8 the Social Security Act (42 U.S.C. 608(a)(4)), assigns

9 to a State the rights of the spouse or former spouse

10 to receive support, the Secretary concerned may make

11 the child support payments referred to in the preced12 ing sentence to that State in amounts consistent with

13 that assignment of rights.’’.

14 (3) ARREARAGES OWED BY MEMBERS OF THE

15 UNIFORMED SERVICES.—Section 1408(d) of such title

16 is amended by adding at the end the following new

17 paragraph:

18 ‘‘(6) In the case of a court order for which effective

19 service is made on the Secretary concerned on or after the

20 date of the enactment of this paragraph and which provides

21 for payments from the disposable retired pay of a member

22 to satisfy the amount of child support set forth in the order,

23 the authority provided in paragraph (1) to make payments

24 from the disposable retired pay of a member to satisfy the

25 amount of child support set forth in a court order shall
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1 apply to payment of any amount of child support arrear2 ages set forth in that order as well as to amounts of child

3 support that currently become due.’’.

4 (4) PAYROLL DEDUCTIONS.—The Secretary of

5 Defense shall begin payroll deductions within 30 days

6 after receiving notice of withholding, or for the 1st

7 pay period that begins after such 30-day period.

8 SEC. 2364. VOIDING OF FRAUDULENT TRANSFERS.

9 Section 466 (42 U.S.C. 666), as amended by section

10 2321 of this Act, is amended by adding at the end the fol11 lowing new subsection:

12 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

13 order to satisfy section 454(20)(A), each State must have

14 in effect—

15 ‘‘(1)(A) the Uniform Fraudulent Conveyance Act

16 of 1981;

17 ‘‘(B) the Uniform Fraudulent Transfer Act of

18 1984; or

19 ‘‘(C) another law, specifying indicia of fraud

20 which create a prima facie case that a debtor trans21 ferred income or property to avoid payment to a child

22 support creditor, which the Secretary finds affords

23 comparable rights to child support creditors; and

24 ‘‘(2) procedures under which, in any case in

25 which the State knows of a transfer by a child sup-
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1 port debtor with respect to which such a prima facie

2 case is established, the State must—

3 ‘‘(A) seek to void such transfer; or

4 ‘‘(B) obtain a settlement in the best inter5 ests of the child support creditor.’’.

6 SEC. 2365. WORK REQUIREMENT FOR PERSONS OWING

7 PAST-DUE CHILD SUPPORT.

8 (a) IN GENERAL.—Section 466(a) (42 U.S.C. 666(a)),

9 as amended by sections 2315, 2317(a), and 2323 of this Act,

10 is amended by inserting after paragraph (14) the following

11 new paragraph:

12 ‘‘(15) PROCEDURES TO ENSURE THAT PERSONS

13 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

14 FOR PAYMENT OF SUCH SUPPORT.—

15 ‘‘(A) IN GENERAL.—Procedures under which

16 the State has the authority, in any case in which

17 an individual owes past-due support with re18 spect to a child receiving assistance under a

19 State program funded under part A, to issue an

20 order or to request that a court or an adminis21 trative process established pursuant to State law

22 issue an order that requires the individual to—

23 ‘‘(i) pay such support in accordance

24 with a plan approved by the court, or, at

25 the option of the State, a plan approved by
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1 the State agency administering the State

2 program under this part; or

3 ‘‘(ii) if the individual is subject to such

4 a plan and is not incapacitated, participate

5 in such work activities (as defined in sec6 tion 407(d)) as the court, or, at the option

7 of the State, the State agency administering

8 the State program under this part, deems

9 appropriate.

10 ‘‘(B) PAST-DUE SUPPORT DEFINED.—For

11 purposes of subparagraph (A), the term ‘past-due

12 support’ means the amount of a delinquency, de13 termined under a court order, or an order of an

14 administrative process established under State

15 law, for support and maintenance of a child, or

16 of a child and the parent with whom the child

17 is living.’’.

18 (b) CONFORMING AMENDMENT.—The flush paragraph

19 at the end of section 466(a) (42 U.S.C. 666(a)) is amended

20 by striking ‘‘and (7)’’ and inserting ‘‘(7), and (15)’’.

21 SEC. 2366. DEFINITION OF SUPPORT ORDER.

22 Section 453 (42 U.S.C. 653) as amended by sections

23 2316 and 2345(b) of this Act, is amended by adding at the

24 end the following new subsection:
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1 ‘‘(p) SUPPORT ORDER DEFINED.—As used in this

2 part, the term ‘support order’ means a judgment, decree,

3 or order, whether temporary, final, or subject to modifica4 tion, issued by a court or an administrative agency of com5 petent jurisdiction, for the support and maintenance of a

6 child, including a child who has attained the age of major7 ity under the law of the issuing State, or a child and the

8 parent with whom the child is living, which provides for

9 monetary support, health care, arrearages, or reimburse10 ment, and which may include related costs and fees, interest

11 and penalties, income withholding, attorneys’ fees, and

12 other relief.’’.

13 SEC. 2367. REPORTING ARREARAGES TO CREDIT BUREAUS.

14 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

15 to read as follows:

16 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU17 REAUS.—

18 ‘‘(A) IN GENERAL.—Procedures (subject to

19 safeguards pursuant to subparagraph (B)) re20 quiring the State to report periodically to

21 consumer reporting agencies (as defined in sec22 tion 603(f) of the Fair Credit Reporting Act (15

23 U.S.C. 1681a(f)) the name of any noncustodial

24 parent who is delinquent in the payment of sup-
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1 port, and the amount of overdue support owed by

2 such parent.

3 ‘‘(B) SAFEGUARDS.—Procedures ensuring

4 that, in carrying out subparagraph (A), infor5 mation with respect to a noncustodial parent is

6 reported—

7 ‘‘(i) only after such parent has been af8 forded all due process required under State

9 law, including notice and a reasonable op10 portunity to contest the accuracy of such in11 formation; and

12 ‘‘(ii) only to an entity that has fur13 nished evidence satisfactory to the State

14 that the entity is a consumer reporting

15 agency (as so defined).’’.

16 SEC. 2368. LIENS.

17 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

18 to read as follows:

19 ‘‘(4) LIENS.—Procedures under which—

20 ‘‘(A) liens arise by operation of law against

21 real and personal property for amounts of over22 due support owed by a noncustodial parent who

23 resides or owns property in the State; and

24 ‘‘(B) the State accords full faith and credit

25 to liens described in subparagraph (A) arising in
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1 another State, when the State agency, party, or

2 other entity seeking to enforce such a lien com3 plies with the procedural rules relating to record4 ing or serving liens that arise within the State,

5 except that such rules may not require judicial

6 notice or hearing prior to the enforcement of

7 such a lien.’’.

8 SEC. 2369. STATE LAW AUTHORIZING SUSPENSION OF LI9 CENSES.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by sec11 tions 2315, 2317(a), 2323, and 2365 of this Act, is amended

12 by inserting after paragraph (15) the following:

13 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

14 LICENSES.—Procedures under which the State has

15 (and uses in appropriate cases) authority to withhold

16 or suspend, or to restrict the use of driver’s licenses,

17 professional and occupational licenses, and rec18 reational licenses of individuals owing overdue sup19 port or failing, after receiving appropriate notice, to

20 comply with subpoenas or warrants relating to pater21 nity or child support proceedings.’’.

22 SEC. 2370. DENIAL OF PASSPORTS FOR NONPAYMENT OF

23 CHILD SUPPORT.

24 (a) HHS CERTIFICATION PROCEDURE.—
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1 (1) SECRETARIAL RESPONSIBILITY.—Section 452

2 (42 U.S.C. 652), as amended by section 2345 of this

3 Act, is amended by adding at the end the following

4 new subsection:

5 ‘‘(k)(1) If the Secretary receives a certification by a

6 State agency in accordance with the requirements of section

7 454(31) that an individual owes arrearages of child support

8 in an amount exceeding $5,000, the Secretary shall trans9 mit such certification to the Secretary of State for action

10 (with respect to denial, revocation, or limitation of pass11 ports) pursuant to paragraph (2).

12 ‘‘(2) The Secretary of State shall, upon certification

13 by the Secretary transmitted under paragraph (1), refuse

14 to issue a passport to such individual, and may revoke, re15 strict, or limit a passport issued previously to such individ16 ual.

17 ‘‘(3) The Secretary and the Secretary of State shall

18 not be liable to an individual for any action with respect

19 to a certification by a State agency under this section.’’.

20 (2) STATE AGENCY RESPONSIBILITY.—Section

21 454 (42 U.S.C. 654), as amended by sections 2301(b),

22 2303(a), 2312(b), 2313(a), 2333, and 2343(b) of this

23 Act, is amended—

24 (A) by striking ‘‘and’’ at the end of para25 graph (29);
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1 (B) by striking the period at the end of

2 paragraph (30) and inserting ‘‘; and’’; and

3 (C) by adding after paragraph (30) the fol4 lowing new paragraph:

5 ‘‘(31) provide that the State agency will have in

6 effect a procedure for certifying to the Secretary, for

7 purposes of the procedure under section 452(k), deter8 minations that individuals owe arrearages of child

9 support in an amount exceeding $5,000, under which

10 procedure—

11 ‘‘(A) each individual concerned is afforded

12 notice of such determination and the con13 sequences thereof, and an opportunity to contest

14 the determination; and

15 ‘‘(B) the certification by the State agency is

16 furnished to the Secretary in such format, and

17 accompanied by such supporting documentation,

18 as the Secretary may require.’’.

19 (b) EFFECTIVE DATE.—This section and the amend20 ments made by this section shall become effective October

21 1, 1997.

22 SEC. 2371. INTERNATIONAL SUPPORT ENFORCEMENT.

23 (a) AUTHORITY FOR INTERNATIONAL AGREEMENTS.—

24 Part D of title IV, as amended by section 2362(a) of this
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1 Act, is amended by adding after section 459 the following

2 new section:

3 ‘‘SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.

4 ‘‘(a) AUTHORITY FOR DECLARATIONS.—

5 ‘‘(1) DECLARATION.—The Secretary of State,

6 with the concurrence of the Secretary of Health and

7 Human Services, is authorized to declare any foreign

8 country (or a political subdivision thereof) to be a

9 foreign reciprocating country if the foreign country

10 has established, or undertakes to establish, procedures

11 for the establishment and enforcement of duties of

12 support owed to obligees who are residents of the

13 United States, and such procedures are substantially

14 in conformity with the standards prescribed under

15 subsection (b).

16 ‘‘(2) REVOCATION.—A declaration with respect

17 to a foreign country made pursuant to paragraph (1)

18 may be revoked if the Secretaries of State and Health

19 and Human Services determine that—

20 ‘‘(A) the procedures established by the for21 eign country regarding the establishment and en22 forcement of duties of support have been so

23 changed, or the foreign country’s implementation

24 of such procedures is so unsatisfactory, that such
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1 procedures do not meet the criteria for such a

2 declaration; or

3 ‘‘(B) continued operation of the declaration

4 is not consistent with the purposes of this part.

5 ‘‘(3) FORM OF DECLARATION.—A declaration

6 under paragraph (1) may be made in the form of an

7 international agreement, in connection with an inter8 national agreement or corresponding foreign declara9 tion, or on a unilateral basis.

10 ‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE11 MENT PROCEDURES.—

12 ‘‘(1) MANDATORY ELEMENTS.—Support enforce13 ment procedures of a foreign country which may be

14 the subject of a declaration pursuant to subsection

15 (a)(1) shall include the following elements:

16 ‘‘(A) The foreign country (or political sub17 division thereof) has in effect procedures, avail18 able to residents of the United States—

19 ‘‘(i) for establishment of paternity, and

20 for establishment of orders of support for

21 children and custodial parents; and

22 ‘‘(ii) for enforcement of orders to pro23 vide support to children and custodial par24 ents, including procedures for collection and
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1 appropriate distribution of support pay2 ments under such orders.

3 ‘‘(B) The procedures described in subpara4 graph (A), including legal and administrative

5 assistance, are provided to residents of the Unit6 ed States at no cost.

7 ‘‘(C) An agency of the foreign country is

8 designated as a Central Authority responsible

9 for—

10 ‘‘(i) facilitating support enforcement in

11 cases involving residents of the foreign coun12 try and residents of the United States; and

13 ‘‘(ii) ensuring compliance with the

14 standards established pursuant to this sub15 section.

16 ‘‘(2) ADDITIONAL ELEMENTS.—The Secretary of

17 Health and Human Services and the Secretary of

18 State, in consultation with the States, may establish

19 such additional standards as may be considered nec20 essary to further the purposes of this section.

21 ‘‘(c) DESIGNATION OF UNITED STATES CENTRAL AU22 THORITY.—It shall be the responsibility of the Secretary of

23 Health and Human Services to facilitate support enforce24 ment in cases involving residents of the United States and
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1 residents of foreign countries that are the subject of a dec2 laration under this section, by activities including—

3 ‘‘(1) development of uniform forms and proce4 dures for use in such cases;

5 ‘‘(2) notification of foreign reciprocating coun6 tries of the State of residence of individuals sought for

7 support enforcement purposes, on the basis of infor8 mation provided by the Federal Parent Locator Serv9 ice; and

10 ‘‘(3) such other oversight, assistance, and coordi11 nation activities as the Secretary may find necessary

12 and appropriate.

13 ‘‘(d) EFFECT ON OTHER LAWS.—States may enter

14 into reciprocal arrangements for the establishment and en15 forcement of support obligations with foreign countries that

16 are not the subject of a declaration pursuant to subsection

17 (a), to the extent consistent with Federal law.’’.

18 (b) STATE PLAN REQUIREMENT.—Section 454 (42

19 U.S.C. 654), as amended by sections 2301(b), 2303(a),

20 2312(b), 2313(a), 2333, 2343(b), and 2370(a)(2) of this Act,

21 is amended—

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

23 (30);

24 (2) by striking the period at the end of para25 graph (31) and inserting ‘‘; and’’; and
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1 (3) by adding after paragraph (31) the following

2 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, for

10 services under the plan for enforcement of a spousal

11 support order not described in paragraph (4)(B) en12 tered by such a country (or subdivision); and

13 ‘‘(C) provide that no applications will be re14 quired from, and no costs will be assessed for such

15 services against, the foreign reciprocating country or

16 foreign obligee (but costs may at State option be as17 sessed against the obligor).’’.

18 SEC. 2372. FINANCIAL INSTITUTION DATA MATCHES.

19 Section 466(a) (42 U.S.C. 666(a)), as amended by sec20 tions 2315, 2317(a), 2323, 2365, and 2369 of this Act, is

21 amended by inserting after paragraph (16) the following

22 new paragraph:

23 ‘‘(17) FINANCIAL INSTITUTION DATA MATCHES.—

24 ‘‘(A) IN GENERAL.—Procedures under which

25 the State agency shall enter into agreements with
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1 financial institutions doing business in the

2 State—

3 ‘‘(i) to develop and operate, in coordi4 nation with such financial institutions, a

5 data match system, using automated data

6 exchanges to the maximum extent feasible,

7 in which each such financial institution is

8 required to provide for each calendar quar9 ter the name, record address, social security

10 number or other taxpayer identification

11 number, and other identifying information

12 for each noncustodial parent who maintains

13 an account at such institution and who

14 owes past-due support, as identified by the

15 State by name and social security number

16 or other taxpayer identification number;

17 and

18 ‘‘(ii) in response to a notice of lien or

19 levy, encumber or surrender, as the case

20 may be, assets held by such institution on

21 behalf of any noncustodial parent who is

22 subject to a child support lien pursuant to

23 paragraph (4).

24 ‘‘(B) REASONABLE FEES.—The State agen25 cy may pay a reasonable fee to a financial insti-
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1 tution for conducting the data match provided

2 for in subparagraph (A)(i), not to exceed the ac3 tual costs incurred by such financial institution.

4 ‘‘(C) LIABILITY.—A financial institution

5 shall not be liable under any Federal or State

6 law to any person—

7 ‘‘(i) for any disclosure of information

8 to the State agency under subparagraph

9 (A)(i);

10 ‘‘(ii) for encumbering or surrendering

11 any assets held by such financial institution

12 in response to a notice of lien or levy issued

13 by the State agency as provided for in sub14 paragraph (A)(ii); or

15 ‘‘(iii) for any other action taken in

16 good faith to comply with the requirements

17 of subparagraph (A).

18 ‘‘(D) DEFINITIONS.—For purposes of this

19 paragraph—

20 ‘‘(i) FINANCIAL INSTITUTION.—The

21 term ‘financial institution’ has the meaning

22 given to such term by section 469A(d)(1).

23 ‘‘(ii) ACCOUNT.—The term ‘account’

24 means a demand deposit account, checking

25 or negotiable withdrawal order account,
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1 savings account, time deposit account, or

2 money-market mutual fund account.’’.

3 SEC. 2373. ENFORCEMENT OF ORDERS AGAINST PATERNAL

4 OR MATERNAL GRANDPARENTS IN CASES OF

5 MINOR PARENTS.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by sec7 tions 2315, 2317(a), 2323, 2365, 2369, and 2372 of this

8 Act, is amended by inserting after paragraph (17) the fol9 lowing new paragraph:

10 ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA11 TERNAL OR MATERNAL GRANDPARENTS.—Procedures

12 under which, at the State’s option, any child support

13 order enforced under this part with respect to a child

14 of minor parents, if the custodial parent of such child

15 is receiving assistance under the State program under

16 part A, shall be enforceable, jointly and severally,

17 against the parents of the noncustodial parent of such

18 child.’’.

19 SEC. 2374. NONDISCHARGEABILITY IN BANKRUPTCY OF

20 CERTAIN DEBTS FOR THE SUPPORT OF A

21 CHILD.

22 (a) AMENDMENT TO TITLE 11 OF THE UNITED STATES

23 CODE.—Section 523(a) of title 11, United States Code, is

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

2 (16);

3 (2) by striking the period at the end of para4 graph (17) and inserting ‘‘; or’’;

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

6 ‘‘(18) owed under State law to a State or mu7 nicipality that is—

8 ‘‘(A) in the nature of support, and

9 ‘‘(B) enforceable under part D of title IV of

10 the Social Security Act (42 U.S.C. 601 et seq.).’’,

11 and

12 (3) in paragraph (5), by striking ‘‘section

13 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’.

14 (b) AMENDMENT TO THE SOCIAL SECURITY ACT.—

15 Section 456(b) (42 U.S.C. 656(b)) is amended to read as

16 follows:

17 ‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in

18 section 101 of title 11 of the United States Code) owed

19 under State law to a State (as defined in such section) or

20 municipality (as defined in such section) that is in the na21 ture of support and that is enforceable under this part is

22 not released by a discharge in bankruptcy under title 11

23 of the United States Code.’’.

24 (c) APPLICATION OF AMENDMENTS.—The amendments

25 made by this section shall apply only with respect to cases
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1 commenced under title 11 of the United States Code after

2 the date of the enactment of this Act.

3 SEC. 2375. CHILD SUPPORT ENFORCEMENT FOR INDIAN

4 TRIBES.

5 (a) CHILD SUPPORT ENFORCEMENT AGREEMENTS.—

6 Section 454 (42 U.S.C. 654), as amended by sections

7 2301(b), 2303(a), 2312(b), 2313(a), 2333, 2343(b),

8 2370(a)(2), and 2371(b) of this Act is amended—

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

10 (31);

11 (2) by striking the period at the end of para12 graph (32) and inserting ‘‘; and’’;

13 (3) by adding after paragraph (32) the following

14 new paragraph:

15 ‘‘(33) provide that a State that receives funding

16 pursuant to section 428 and that has within its bor17 ders Indian country (as defined in section 1151 of

18 title 18, United States Code) may enter into coopera19 tive agreements with an Indian tribe or tribal organi20 zation (as defined in subsections (e) and (l) of section

21 4 of the Indian Self-Determination and Education

22 Assistance Act (25 U.S.C. 450b)), if the Indian tribe

23 or tribal organization demonstrates that such tribe or

24 organization has an established tribal court system or

25 a Court of Indian Offenses with the authority to es-
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1 tablish paternity, establish, modify, and enforce sup2 port orders, and to enter support orders in accordance

3 with child support guidelines established by such tribe

4 or organization, under which the State and tribe or

5 organization shall provide for the cooperative delivery

6 of child support enforcement services in Indian coun7 try and for the forwarding of all funding collected

8 pursuant to the functions performed by the tribe or

9 organization to the State agency, or conversely, by the

10 State agency to the tribe or organization, which shall

11 distribute such funding in accordance with such

12 agreement; and

13 (4) by adding at the end the following new sen14 tence: ‘‘Nothing in paragraph (33) shall void any

15 provision of any cooperative agreement entered into

16 before the date of the enactment of such paragraph,

17 nor shall such paragraph deprive any State of juris18 diction over Indian country (as so defined) that is

19 lawfully exercised under section 402 of the Act enti20 tled ‘An Act to prescribe penalties for certain acts of

21 violence or intimidation, and for other purposes’, ap22 proved April 11, 1968 (25 U.S.C. 1322).’’.

23 (b) DIRECT FEDERAL FUNDING TO INDIAN TRIBES

24 AND TRIBAL ORGANIZATIONS.—Section 455 (42 U.S.C.
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1 655) is amended by adding at the end the following new

2 subsection:

3 ‘‘(b) The Secretary may, in appropriate cases, make

4 direct payments under this part to an Indian tribe or tribal

5 organization which has an approved child support enforce6 ment plan under this title. In determining whether such

7 payments are appropriate, the Secretary shall, at a mini8 mum, consider whether services are being provided to eligi9 ble Indian recipients by the State agency through an agree10 ment entered into pursuant to section 454(33).’’.

11 (c) COOPERATIVE ENFORCEMENT AGREEMENTS.—

12 Paragraph (7) of section 454 (42 U.S.C. 654) is amended

13 by inserting ‘‘and Indian tribes or tribal organizations (as

14 defined in subsections (e) and (l) of section 4 of the Indian

15 Self-Determination and Education Assistance Act (25

16 U.S.C. 450b))’’ after ‘‘law enforcement officials’’.

17 (d) CONFORMING AMENDMENT.—Subsection (c) of sec18 tion 428 (42 U.S.C. 628) is amended to read as follows:

19 ‘‘(c) For purposes of this section, the terms ‘Indian

20 tribe’ and ‘tribal organization’ shall have the meanings

21 given such terms by subsections (e) and (l) of section 4 of

22 the Indian Self-Determination and Education Assistance

23 Act (25 U.S.C. 450b)), respectively.’’.
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1 Subchapter H—Medical Support

2 SEC. 2376. CORRECTION TO ERISA DEFINITION OF MEDICAL

3 CHILD SUPPORT ORDER.

4 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em5 ployee Retirement Income Security Act of 1974 (29 U.S.C.

6 1169(a)(2)(B)) is amended—

7 (1) by striking ‘‘issued by a court of competent

8 jurisdiction’’;

9 (2) by striking the period at the end of clause

10 (ii) and inserting a comma; and

11 (3) by adding, after and below clause (ii), the

12 following:

13 ‘‘if such judgment, decree, or order (I) is issued

14 by a court of competent jurisdiction or (II) is is15 sued through an administrative process estab16 lished under State law and has the force and ef17 fect of law under applicable State law.’’.

18 (b) EFFECTIVE DATE.—

19 (1) IN GENERAL.—The amendments made by

20 this section shall take effect on the date of the enact21 ment of this Act.

22 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

23 JANUARY 1, 1997.—Any amendment to a plan required

24 to be made by an amendment made by this section
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1 shall not be required to be made before the 1st plan

2 year beginning on or after January 1, 1997, if—

3 (A) during the period after the date before

4 the date of the enactment of this Act and before

5 such 1st plan year, the plan is operated in ac6 cordance with the requirements of the amend7 ments made by this section; and

8 (B) such plan amendment applies retro9 actively to the period after the date before the

10 date of the enactment of this Act and before such

11 1st plan year.

12 A plan shall not be treated as failing to be operated

13 in accordance with the provisions of the plan merely

14 because it operates in accordance with this para15 graph.

16 SEC. 2377. ENFORCEMENT OF ORDERS FOR HEALTH CARE

17 COVERAGE.

18 Section 466(a) (42 U.S.C. 666(a)), as amended by sec19 tions 2315, 2317(a), 2323, 2365, 2369, 2372, and 2373 of

20 this Act, is amended by inserting after paragraph (18) the

21 following new paragraph:

22 ‘‘(19) HEALTH CARE COVERAGE.—Procedures

23 under which all child support orders enforced pursu24 ant to this part shall include a provision for the

25 health care coverage of the child, and in the case in
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1 which a noncustodial parent provides such coverage

2 and changes employment, and the new employer pro3 vides health care coverage, the State agency shall

4 transfer notice of the provision to the employer, which

5 notice shall operate to enroll the child in the non6 custodial parent’s health plan, unless the noncustodial

7 parent contests the notice.’’.

8 Subchapter I—Enhancing Responsibility and

9 Opportunity for Non-Residential Parents

10 SEC. 2381. GRANTS TO STATES FOR ACCESS AND VISITA11 TION PROGRAMS.

12 Part D of title IV (42 U.S.C. 651–669), as amended

13 by section 2353 of this Act, is amended by adding at the

14 end the following new section:

15 ‘‘SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITA16 TION PROGRAMS.

17 ‘‘(a) IN GENERAL.—The Administration for Children

18 and Families shall make grants under this section to enable

19 States to establish and administer programs to support and

20 facilitate noncustodial parents’ access to and visitation of

21 their children, by means of activities including mediation

22 (both voluntary and mandatory), counseling, education, de23 velopment of parenting plans, visitation enforcement (in24 cluding monitoring, supervision and neutral drop-off and
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1 pickup), and development of guidelines for visitation and

2 alternative custody arrangements.

3 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

4 to be made to a State under this section for a fiscal year

5 (beginning with fiscal year 1998) shall be an amount equal

6 to the lesser of—

7 ‘‘(1) 90 percent of State expenditures during the

8 fiscal year for activities described in subsection (a); or

9 ‘‘(2) the allotment of the State under subsection

10 (c) for the fiscal year.

11 ‘‘(c) ALLOTMENTS TO STATES.—

12 ‘‘(1) IN GENERAL.—The allotment of a State for

13 a fiscal year is the amount that bears the same ratio

14 to $10,000,000 for grants under this section for the

15 fiscal year as the number of children in the State liv16 ing with only 1 biological parent bears to the total

17 number of such children in all States.

18 ‘‘(2) MINIMUM ALLOTMENT.—The Administra19 tion for Children and Families shall adjust allotments

20 to States under paragraph (1) as necessary to ensure

21 that no State is allotted less than—

22 ‘‘(A) $50,000 for fiscal year 1998 or 1999

23 or

24 ‘‘(B) $100,000 for any succeeding fiscal

25 year.
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1 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

2 FOR SIMILAR ACTIVITIES.—A State to which a grant is

3 made under this section may not use the grant to supplant

4 expenditures by the State for activities specified in sub5 section (a), but shall use the grant to supplement such ex6 penditures at a level at least equal to the level of such ex7 penditures for fiscal year 1995.

8 ‘‘(e) STATE ADMINISTRATION.—Each State to which a

9 grant is made under this section—

10 ‘‘(1) may administer State programs funded

11 with the grant, directly or through grants to or con12 tracts with courts, local public agencies, or nonprofit

13 private entities;

14 ‘‘(2) shall not be required to operate such pro15 grams on a statewide basis; and

16 ‘‘(3) shall monitor, evaluate, and report on such

17 programs in accordance with regulations prescribed

18 by the Secretary.’’.

19 Subchapter J—Effective Dates and

20 Conforming Amendments

21 SEC. 2391. EFFECTIVE DATES AND CONFORMING AMEND22 MENTS.

23 (a) IN GENERAL.—Except as otherwise specifically

24 provided (but subject to subsections (b) and (c))—
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1 (1) the provisions of this chapter requiring the

2 enactment or amendment of State laws under section

3 466 of the Social Security Act, or revision of State

4 plans under section 454 of such Act, shall be effective

5 with respect to periods beginning on and after Octo6 ber 1, 1996; and

7 (2) all other provisions of this chapter shall be8 come effective upon the date of the enactment of this

9 Act.

10 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

11 provisions of this chapter shall become effective with respect

12 to a State on the later of—

13 (1) the date specified in this chapter, or

14 (2) the effective date of laws enacted by the legis15 lature of such State implementing such provisions,

16 but in no event later than the 1st day of the 1st calendar

17 quarter beginning after the close of the 1st regular session

18 of the State legislature that begins after the date of the en19 actment of this Act. For purposes of the previous sentence,

20 in the case of a State that has a 2-year legislative session,

21 each year of such session shall be deemed to be a separate

22 regular session of the State legislature.

23 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

24 AMENDMENT.—A State shall not be found out of compliance

25 with any requirement enacted by this chapter if the State
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1 is unable to so comply without amending the State constitu2 tion until the earlier of—

3 (1) 1 year after the effective date of the necessary

4 State constitutional amendment; or

5 (2) 5 years after the date of the enactment of this

6 Act.

7 (d) CONFORMING AMENDMENTS.—

8 (1) The following provisions are amended by

9 striking ‘‘absent’’ each place it appears and inserting

10 ‘‘noncustodial’’:

11 (A) Section 451 (42 U.S.C. 651).

12 (B) Subsections (a)(1), (a)(8), (a)(10)(E),

13 (a)(10)(F), (f), and (h) of section 452 (42 U.S.C.

14 652).

15 (C) Section 453(f) (42 U.S.C. 653(f)).

16 (D) Paragraphs (8), (13), and (21)(A) of

17 section 454 (42 U.S.C. 654).

18 (E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).

19 (F) Section 458(a) (42 U.S.C. 658(a)).

20 (G) Subsections (a), (b), and (c) of section

21 463 (42 U.S.C. 663).

22 (H) Subsections (a)(3)(A), (a)(3)(C), (a)(6),

23 and (a)(8)(B)(ii), the last sentence of subsection

24 (a), and subsections (b)(1), (b)(3)(B),
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1 (b)(3)(B)(i), (b)(6)(A)(i), (b)(8), (b)(9), and (e)

2 of section 466 (42 U.S.C. 666).

3 (2) The following provisions are amended by

4 striking ‘‘an absent’’ each place it appears and insert5 ing ‘‘a noncustodial’’:

6 (A) Paragraphs (2) and (3) of section

7 453(c) (42 U.S.C. 653(c)).

8 (B) Subparagraphs (B) and (C) of section

9 454(9) (42 U.S.C. 654(9)).

10 (C) Section 456(a)(3) (42 U.S.C.

11 656(a)(3)).

12 (D) Subsections (a)(3)(A), (a)(6),

13 (a)(8)(B)(i), (b)(3)(A), and (b)(3)(B) of section

14 466 (42 U.S.C. 666).

15 (E) Paragraphs (2) and (4) of section

16 469(b) (42 U.S.C. 669(b)).

17 CHAPTER 4—RESTRICTING WELFARE AND

18 PUBLIC BENEFITS FOR ALIENS

19 SEC. 2400. STATEMENTS OF NATIONAL POLICY CONCERN20 ING WELFARE AND IMMIGRATION.

21 The Congress makes the following statements concern22 ing national policy with respect to welfare and immigra23 tion:
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1 (1) Self-sufficiency has been a basic principle of

2 United States immigration law since this country’s

3 earliest immigration statutes.

4 (2) It continues to be the immigration policy of

5 the United States that—

6 (A) aliens within the Nation’s borders not

7 depend on public resources to meet their needs,

8 but rather rely on their own capabilities and the

9 resources of their families, their sponsors, and

10 private organizations, and

11 (B) the availability of public benefits not

12 constitute an incentive for immigration to the

13 United States.

14 (3) Despite the principle of self-sufficiency,

15 aliens have been applying for and receiving public

16 benefits from Federal, State, and local governments at

17 increasing rates.

18 (4) Current eligibility rules for public assistance

19 and unenforceable financial support agreements have

20 proved wholly incapable of assuring that individual

21 aliens not burden the public benefits system.

22 (5) It is a compelling government interest to

23 enact new rules for eligibility and sponsorship agree24 ments in order to assure that aliens be self-reliant in

25 accordance with national immigration policy.
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1 (6) It is a compelling government interest to re2 move the incentive for illegal immigration provided

3 by the availability of public benefits.

4 (7) With respect to the State authority to make

5 determinations concerning the eligibility of qualified

6 aliens for public benefits in this chapter, a State that

7 chooses to follow the Federal classification in deter8 mining the eligibility of such aliens for public assist9 ance shall be considered to have chosen the least re10 strictive means available for achieving the compelling

11 governmental interest of assuring that aliens be self12 reliant in accordance with national immigration pol13 icy.

14 Subchapter A—Eligibility for Federal Benefits

15 SEC. 2401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI16 GIBLE FOR FEDERAL PUBLIC BENEFITS.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law and except as provided in subsection (b), an

19 alien who is not a qualified alien (as defined in section

20 2431) is not eligible for any Federal public benefit (as de21 fined in subsection (c)).

22 (b) EXCEPTIONS.—

23 (1) Subsection (a) shall not apply with respect

24 to the following Federal public benefits:
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1 (A) Emergency medical services under title

2 XV or XIX of the Social Security Act.

3 (B) Short-term, non-cash, in-kind emer4 gency disaster relief.

5 (C)(i) Public health assistance for immuni6 zations.

7 (ii) Public health assistance for testing and

8 treatment of a communicable disease if the Sec9 retary of Health and Human Services deter10 mines that it is necessary to prevent the spread

11 of such disease.

12 (D) Programs, services, or assistance (such

13 as soup kitchens, crisis counseling and interven14 tion, and short-term shelter) specified by the At15 torney General, in the Attorney General’s sole

16 and unreviewable discretion after consultation

17 with appropriate Federal agencies and depart18 ments, which (i) deliver in-kind services at the

19 community level, including through public or

20 private nonprofit agencies; (ii) do not condition

21 the provision of assistance, the amount of assist22 ance provided, or the cost of assistance provided

23 on the individual recipient’s income or resources;

24 and (iii) are necessary for the protection of life

25 or safety.
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1 (E) Programs for housing or community de2 velopment assistance or financial assistance ad3 ministered by the Secretary of Housing and

4 Urban Development, any program under title V

5 of the Housing Act of 1949, or any assistance

6 under section 306C of the Consolidated Farm

7 and Rural Development Act, to the extent that

8 the alien is receiving such a benefit on the date

9 of the enactment of this Act.

10 (2) Subsection (a) shall not apply to any benefit

11 payable under title II of the Social Security Act to

12 an alien who is lawfully present in the United States

13 as determined by the Attorney General, to any benefit

14 if nonpayment of such benefit would contravene an

15 international agreement described in section 233 of

16 the Social Security Act, to any benefit if nonpayment

17 would be contrary to section 202(t) of the Social Se18 curity Act, or to any benefit payable under title II of

19 the Social Security Act to which entitlement is based

20 on an application filed in or before the month in

21 which this Act becomes law.

22 (c) FEDERAL PUBLIC BENEFIT DEFINED.—

23 (1) Except as provided in paragraph (2), for

24 purposes of this chapter the term ‘‘Federal public ben25 efit’’ means—
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1 (A) any grant, contract, loan, professional

2 license, or commercial license provided by an

3 agency of the United States or by appropriated

4 funds of the United States; and

5 (B) any retirement, welfare, health, disabil6 ity, public or assisted housing, postsecondary

7 education, food assistance, unemployment bene8 fit, or any other similar benefit for which pay9 ments or assistance are provided to an individ10 ual, household, or family eligibility unit by an

11 agency of the United States or by appropriated

12 funds of the United States.

13 (2) Such term shall not apply—

14 (A) to any contract, professional license, or

15 commercial license for a nonimmigrant whose

16 visa for entry is related to such employment in

17 the United States; or

18 (B) with respect to benefits for an alien who

19 as a work authorized nonimmigrant or as an

20 alien lawfully admitted for permanent residence

21 under the Immigration and Nationality Act

22 qualified for such benefits and for whom the

23 United States under reciprocal treaty agreements

24 is required to pay benefits, as determined by the
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1 Attorney General, after consultation with the

2 Secretary of State.

3 SEC. 2402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR

4 CERTAIN FEDERAL PROGRAMS.

5 (a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL

6 PROGRAMS.—

7 (1) IN GENERAL.—Notwithstanding any other

8 provision of law and except as provided in paragraph

9 (2), an alien who is a qualified alien (as defined in

10 section 2431) is not eligible for any specified Federal

11 program (as defined in paragraph (3)).

12 (2) EXCEPTIONS.—

13 (A) TIME-LIMITED EXCEPTION FOR REFU14 GEES AND ASYLEES.—Paragraph (1) shall not

15 apply to an alien until 5 years after the date—

16 (i) an alien is admitted to the United

17 States as a refugee under section 207 of the

18 Immigration and Nationality Act;

19 (ii) an alien is granted asylum under

20 section 208 of such Act; or

21 (iii) an alien’s deportation is withheld

22 under section 243(h) of such Act.

23 (B) CERTAIN PERMANENT RESIDENT

24 ALIENS.—Paragraph (1) shall not apply to an

25 alien who—
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1 (i) is lawfully admitted to the United

2 States for permanent residence under the

3 Immigration and Nationality Act; and

4 (ii)(I) has worked 40 qualifying quar5 ters of coverage as defined under title II of

6 the Social Security Act or can be credited

7 with such qualifying quarters as provided

8 under section 435, and (II) did not receive

9 any Federal means-tested public benefit (as

10 defined in section 2403(c)) during any such

11 quarter.

12 (C) VETERAN AND ACTIVE DUTY EXCEP13 TION.—Paragraph (1) shall not apply to an

14 alien who is lawfully residing in any State and

15 is—

16 (i) a veteran (as defined in section 101

17 of title 38, United States Code) with a dis18 charge characterized as an honorable dis19 charge and not on account of alienage,

20 (ii) on active duty (other than active

21 duty for training) in the Armed Forces of

22 the United States, or

23 (iii) the spouse or unmarried depend24 ent child of an individual described in

25 clause (i) or (ii).
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1 (D) TRANSITION FOR ALIENS CURRENTLY

2 RECEIVING BENEFITS.—

3 (i) SSI.—

4 (I) IN GENERAL.—With respect to

5 the specified Federal program described

6 in paragraph (3)(A), during the period

7 beginning on the date of the enactment

8 of this Act and ending on the date

9 which is 1 year after such date of en10 actment, the Commissioner of Social

11 Security shall redetermine the eligi12 bility of any individual who is receiv13 ing benefits under such program as of

14 the date of the enactment of this Act

15 and whose eligibility for such benefits

16 may terminate by reason of the provi17 sions of this subsection.

18 (II) REDETERMINATION CRI19 TERIA.—With respect to any redeter20 mination under subclause (I), the

21 Commissioner of Social Security shall

22 apply the eligibility criteria for new

23 applicants for benefits under such pro24 gram.
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1 (III) GRANDFATHER PROVI2 SION.—The provisions of this sub3 section and the redetermination under

4 subclause (I), shall only apply with re5 spect to the benefits of an individual

6 described in subclause (I) for months

7 beginning on or after the date of the

8 redetermination with respect to such

9 individual.

10 (IV) NOTICE.—Not later than

11 January 1, 1997, the Commissioner of

12 Social Security shall notify an indi13 vidual described in subclause (I) of the

14 provisions of this clause.

15 (ii) FOOD STAMPS.—

16 (I) IN GENERAL.—With respect to

17 the specified Federal program described

18 in paragraph (3)(B), during the period

19 beginning on the date of enactment of

20 this Act and ending on the date which

21 is 1 year after the date of enactment,

22 the State agency shall, at the time of

23 the recertification, recertify the eligi24 bility of any individual who is receiv25 ing benefits under such program as of
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1 the date of enactment of this Act and

2 whose eligibility for such benefits may

3 terminate by reason of the provisions

4 of this subsection.

5 (II) RECERTIFICATION CRI6 TERIA.—With respect to any recertifi7 cation under subclause (I), the State

8 agency shall apply the eligibility cri9 teria for applicants for benefits under

10 such program.

11 (III) GRANDFATHER PROVI12 SION.—The provisions of this sub13 section and the recertification under

14 subclause (I) shall only apply with re15 spect to the eligibility of an alien for

16 a program for months beginning on or

17 after the date of recertification, if on

18 the date of enactment of this Act the

19 alien is lawfully residing in any State

20 and is receiving benefits under such

21 program on such date of enactment.

22 (3) SPECIFIED FEDERAL PROGRAM DEFINED.—

23 For purposes of this chapter, the term ‘‘specified Fed24 eral program’’ means any of the following:
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1 (A) SSI.—The supplemental security in2 come program under title XVI of the Social Se3 curity Act, including supplementary payments

4 pursuant to an agreement for Federal adminis5 tration under section 1616(a) of the Social Secu6 rity Act and payments pursuant to an agree7 ment entered into under section 212(b) of Public

8 Law 93–66.

9 (B) FOOD STAMPS.—The food stamp pro10 gram as defined in section 3(h) of the Food

11 Stamp Act of 1977.

12 (b) LIMITED ELIGIBILITY FOR DESIGNATED FEDERAL

13 PROGRAMS.—

14 (1) IN GENERAL.—Notwithstanding any other

15 provision of law and except as provided in section

16 2403 and paragraph (2), a State is authorized to de17 termine the eligibility of an alien who is a qualified

18 alien (as defined in section 2431) for any designated

19 Federal program (as defined in paragraph (3)).

20 (2) EXCEPTIONS.—Qualified aliens under this

21 paragraph shall be eligible for any designated Federal

22 program.

23 (A) TIME-LIMITED EXCEPTION FOR REFU24 GEES AND ASYLEES.—
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1 (i) An alien who is admitted to the

2 United States as a refugee under section

3 207 of the Immigration and Nationality

4 Act until 5 years after the date of an alien’s

5 entry into the United States.

6 (ii) An alien who is granted asylum

7 under section 208 of such Act until 5 years

8 after the date of such grant of asylum.

9 (iii) An alien whose deportation is

10 being withheld under section 243(h) of such

11 Act until 5 years after such withholding.

12 (B) CERTAIN PERMANENT RESIDENT

13 ALIENS.—An alien who—

14 (i) is lawfully admitted to the United

15 States for permanent residence under the

16 Immigration and Nationality Act; and

17 (ii)(I) has worked 40 qualifying quar18 ters of coverage as defined under title II of

19 the Social Security Act or can be credited

20 with such qualifying quarters as provided

21 under section 2435, and (II) did not receive

22 any Federal means-tested public benefit (as

23 defined in section 2403(c)) during any such

24 quarter.
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1 (C) VETERAN AND ACTIVE DUTY EXCEP2 TION.—An alien who is lawfully residing in any

3 State and is—

4 (i) a veteran (as defined in section 101

5 of title 38, United States Code) with a dis6 charge characterized as an honorable dis7 charge and not on account of alienage,

8 (ii) on active duty (other than active

9 duty for training) in the Armed Forces of

10 the United States, or

11 (iii) the spouse or unmarried depend12 ent child of an individual described in

13 clause (i) or (ii).

14 (D) TRANSITION FOR THOSE CURRENTLY

15 RECEIVING BENEFITS.—An alien who on the date

16 of the enactment of this Act is lawfully residing

17 in any State and is receiving benefits under such

18 program on the date of the enactment of this Act

19 shall continue to be eligible to receive such bene20 fits until January 1, 1997.

21 (3) DESIGNATED FEDERAL PROGRAM DE22 FINED.—For purposes of this chapter, the term ‘‘des23 ignated Federal program’’ means any of the follow24 ing:
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1 (A) TEMPORARY ASSISTANCE FOR NEEDY

2 FAMILIES.—The program of block grants to

3 States for temporary assistance for needy fami4 lies under part A of title IV of the Social Secu5 rity Act.

6 (B) SOCIAL SERVICES BLOCK GRANT.—The

7 program of block grants to States for social serv8 ices under title XX of the Social Security Act.

9 (C) MEDICAID.—The program of medical

10 assistance under title XV and XIX of the Social

11 Security Act.

12 SEC. 2403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

13 ALIENS FOR FEDERAL MEANS-TESTED PUB14 LIC BENEFIT.

15 (a) IN GENERAL.—Notwithstanding any other provi16 sion of law and except as provided in subsection (b), an

17 alien who is a qualified alien (as defined in section 2431)

18 and who enters the United States on or after the date of

19 the enactment of this Act is not eligible for any Federal

20 means-tested public benefit (as defined in subsection (c)) for

21 a period of five years beginning on the date of the alien’s

22 entry into the United States with a status within the mean23 ing of the term ‘‘qualified alien’’.

24 (b) EXCEPTIONS.—The limitation under subsection (a)

25 shall not apply to the following aliens:
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1 (1) EXCEPTION FOR REFUGEES AND ASYLEES.—

2 (A) An alien who is admitted to the United

3 States as a refugee under section 207 of the Im4 migration and Nationality Act.

5 (B) An alien who is granted asylum under

6 section 208 of such Act.

7 (C) An alien whose deportation is being

8 withheld under section 243(h) of such Act.

9 (2) VETERAN AND ACTIVE DUTY EXCEPTION.—An

10 alien who is lawfully residing in any State and is—

11 (A) a veteran (as defined in section 101 of

12 title 38, United States Code) with a discharge

13 characterized as an honorable discharge and not

14 on account of alienage,

15 (B) on active duty (other than active duty

16 for training) in the Armed Forces of the United

17 States, or

18 (C) the spouse or unmarried dependent

19 child of an individual described in subparagraph

20 (A) or (B).

21 (c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE22 FINED.—Such term does not include the following:

23 (1) Emergency medical services under title XV or

24 XIX of the Social Security Act.
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1 (2) Short-term, non-cash, in-kind emergency dis2 aster relief.

3 (3) Assistance or benefits under the National

4 School Lunch Act.

5 (4) Assistance or benefits under the Child Nutri6 tion Act of 1966.

7 (5)(A) Public health assistance for immuniza8 tions.

9 (B) Public health assistance for testing and

10 treatment of a communicable disease if the Secretary

11 of Health and Human Services determines that it is

12 necessary to prevent the spread of such disease.

13 (6) Payments for foster care and adoption assist14 ance under part E of title IV of the Social Security

15 Act for a child who would, in the absence of sub16 section (a), be eligible to have such payments made on

17 the child’s behalf under such part, but only if the fos18 ter or adoptive parent or parents of such child are not

19 described under subsection (a).

20 (7) Programs, services, or assistance (such as

21 soup kitchens, crisis counseling and intervention, and

22 short-term shelter) specified by the Attorney General,

23 in the Attorney General’s sole and unreviewable dis24 cretion after consultation with appropriate Federal

25 agencies and departments, which (i) deliver in-kind
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1 services at the community level, including through

2 public or private nonprofit agencies; (ii) do not con3 dition the provision of assistance, the amount of as4 sistance provided, or the cost of assistance provided

5 on the individual recipient’s income or resources; and

6 (iii) are necessary for the protection of life or safety.

7 (8) Programs of student assistance under titles

8 IV, V, IX, and X of the Higher Education Act of

9 1965, and titles III, VII, and VIII of the Public

10 Health Service Act.

11 (9) Means-tested programs under the Elementary

12 and Secondary Education Act of 1965.

13 SEC. 2404. NOTIFICATION AND INFORMATION REPORTING.

14 (a) NOTIFICATION.—Each Federal agency that admin15 isters a program to which section 2401, 2402, or 2403 ap16 plies shall, directly or through the States, post information

17 and provide general notification to the public and to pro18 gram recipients of the changes regarding eligibility for any

19 such program pursuant to this subchapter.

20 (b) INFORMATION REPORTING UNDER TITLE IV OF

21 THE SOCIAL SECURITY ACT.—Part A of title IV of the So22 cial Security Act, as amended by section 2103(a) of this

23 Act, is amended by inserting the following new section after

24 section 411:
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1 ‘‘SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFOR2 MATION.

3 ‘‘Each State to which a grant is made under section

4 403 shall, at least 4 times annually and upon request of

5 the Immigration and Naturalization Service, furnish the

6 Immigration and Naturalization Service with the name

7 and address of, and other identifying information on, any

8 individual who the State knows is unlawfully in the United

9 States.’’.

10 (c) SSI.—Section 1631(e) of such Act (42 U.S.C.

11 1383(e)) is amended—

12 (1) by redesignating the paragraphs (6) and (7)

13 inserted by sections 206(d)(2) and 206(f)(1) of the So14 cial Security Independence and Programs Improve15 ment Act of 1994 (Public Law 103–296; 108 Stat.

16 1514, 1515) as paragraphs (7) and (8), respectively;

17 and

18 (2) by adding at the end the following new para19 graph:

20 ‘‘(9) Notwithstanding any other provision of law, the

21 Commissioner shall, at least 4 times annually and upon

22 request of the Immigration and Naturalization Service

23 (hereafter in this paragraph referred to as the ‘Service’),

24 furnish the Service with the name and address of, and other

25 identifying information on, any individual who the Com26 missioner knows is unlawfully in the United States, and
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1 shall ensure that each agreement entered into under section

2 1616(a) with a State provides that the State shall furnish

3 such information at such times with respect to any individ4 ual who the State knows is unlawfully in the United

5 States.’’.

6 (d) INFORMATION REPORTING FOR HOUSING PRO7 GRAMS.—Title I of the United States Housing Act of 1937

8 (42 U.S.C. 1437 et seq.) is amended by adding at the end

9 the following new section:

10 ‘‘SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCE11 MENT AND OTHER AGENCIES.

12 ‘‘Notwithstanding any other provision of law, the Sec13 retary shall, at least 4 times annually and upon request

14 of the Immigration and Naturalization Service (hereafter

15 in this section referred to as the ‘Service’), furnish the Serv16 ice with the name and address of, and other identifying

17 information on, any individual who the Secretary knows

18 is unlawfully in the United States, and shall ensure that

19 each contract for assistance entered into under section 6 or

20 8 of this Act with a public housing agency provides that

21 the public housing agency shall furnish such information

22 at such times with respect to any individual who the public

23 housing agency knows is unlawfully in the United States.’’.
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1 Subchapter B—Eligibility for State and Local

2 Public Benefits Programs

3 SEC. 2411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR

4 NONIMMIGRANTS INELIGIBLE FOR STATE

5 AND LOCAL PUBLIC BENEFITS.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law and except as provided in subsections (b) and

8 (d), an alien who is not—

9 (1) a qualified alien (as defined in section 2431),

10 (2) a nonimmigrant under the Immigration and

11 Nationality Act, or

12 (3) an alien who is paroled into the United

13 States under section 212(d)(5) of such Act for less

14 than one year,

15 is not eligible for any State or local public benefit (as de16 fined in subsection (c)).

17 (b) EXCEPTIONS.—Subsection (a) shall not apply with

18 respect to the following State or local public benefits:

19 (1) Emergency medical services under title XV or

20 XIX of the Social Security Act.

21 (2) Short-term, non-cash, in-kind emergency dis22 aster relief.

23 (3)(A) Public health assistance for immuniza24 tions.
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1 (B) Public health assistance for testing and

2 treatment of a communicable disease if the Secretary

3 of Health and Human Services determines that it is

4 necessary to prevent the spread of such disease.

5 (4) Programs, services, or assistance (such as

6 soup kitchens, crisis counseling and intervention, and

7 short-term shelter) specified by the Attorney General,

8 in the Attorney General’s sole and unreviewable dis9 cretion after consultation with appropriate Federal

10 agencies and departments, which (A) deliver in-kind

11 services at the community level, including through

12 public or private nonprofit agencies; (B) do not con13 dition the provision of assistance, the amount of as14 sistance provided, or the cost of assistance provided

15 on the individual recipient’s income or resources; and

16 (C) are necessary for the protection of life or safety.

17 (c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.—

18 (1) Except as provided in paragraph (2), for

19 purposes of this subchapter the term ‘‘State or local

20 public benefit’’ means—

21 (A) any grant, contract, loan, professional

22 license, or commercial license provided by an

23 agency of a State or local government or by ap24 propriated funds of a State or local government;

25 and
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1 (B) any retirement, welfare, health, disabil2 ity, public or assisted housing, postsecondary

3 education, food assistance, unemployment bene4 fit, or any other similar benefit for which pay5 ments or assistance are provided to an individ6 ual, household, or family eligibility unit by an

7 agency of a State or local government or by ap8 propriated funds of a State or local government.

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 who

15 as a work authorized nonimmigrant or as an

16 alien lawfully admitted for permanent residence

17 under the Immigration and Nationality Act

18 qualified for such benefits and for whom the

19 United States under reciprocal treaty agreements

20 is required to pay benefits, as determined by the

21 Secretary of State, after consultation with the

22 Attorney General.

23 (d) STATE AUTHORITY TO PROVIDE FOR ELIGIBILITY

24 OF ILLEGAL ALIENS FOR STATE AND LOCAL PUBLIC BENE25 FITS.—A State may provide that an alien who is not law-
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1 fully present in the United States is eligible for any State

2 or local public benefit for which such alien would otherwise

3 be ineligible under subsection (a) only through the enact4 ment of a State law after the date of the enactment of this

5 Act which affirmatively provides for such eligibility.

6 SEC. 2412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF

7 QUALIFIED ALIENS FOR STATE PUBLIC BENE8 FITS.

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law and except as provided in subsection (b), a State

11 is authorized to determine the eligibility for any State pub12 lic benefits (as defined in subsection (c) of an alien who

13 is a qualified alien (as defined in section 2431), a non14 immigrant under the Immigration and Nationality Act, or

15 an alien who is paroled into the United States under section

16 212(d)(5) of such Act for less than one year.

17 (b) EXCEPTIONS.—Qualified aliens under this sub18 section shall be eligible for any State public benefits.

19 (1) TIME-LIMITED EXCEPTION FOR REFUGEES

20 AND ASYLEES.—

21 (A) An alien who is admitted to the United

22 States as a refugee under section 207 of the Im23 migration and Nationality Act until 5 years

24 after the date of an alien’s entry into the United

25 States.
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1 (B) An alien who is granted asylum under

2 section 208 of such Act until 5 years after the

3 date of such grant of asylum.

4 (C) An alien whose deportation is being

5 withheld under section 243(h) of such Act until

6 5 years after such withholding.

7 (2) CERTAIN PERMANENT RESIDENT ALIENS.—

8 An alien who—

9 (A) is lawfully admitted to the United

10 States for permanent residence under the Immi11 gration and Nationality Act; and

12 (B)(i) has worked 40 qualifying quarters of

13 coverage as defined under title II of the Social

14 Security Act or can be credited with such quali15 fying quarters as provided under section 2435,

16 and (ii) did not receive any Federal means-test17 ed public benefit (as defined in section 2403(c))

18 during any such quarter.

19 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—An

20 alien who is lawfully residing in any State and is—

21 (A) a veteran (as defined in section 101 of

22 title 38, United States Code) with a discharge

23 characterized as an honorable discharge and not

24 on account of alienage,
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1 (B) on active duty (other than active duty

2 for training) in the Armed Forces of the United

3 States, or

4 (C) the spouse or unmarried dependent

5 child of an individual described in subparagraph

6 (A) or (B).

7 (4) TRANSITION FOR THOSE CURRENTLY RECEIV8 ING BENEFITS.—An alien who on the date of the en9 actment of this Act is lawfully residing in any State

10 and is receiving benefits on the date of the enactment

11 of this Act shall continue to be eligible to receive such

12 benefits until January 1, 1997.

13 Subchapter C—Attribution of Income and

14 Affidavits of Support

15 SEC. 2421. FEDERAL ATTRIBUTION OF SPONSOR’S INCOME

16 AND RESOURCES TO ALIEN.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law, in determining the eligibility and the amount

19 of benefits of an alien for any Federal means-tested public

20 benefits program (as defined in section 2403(c)), the income

21 and resources of the alien shall be deemed to include the

22 following:

23 (1) The income and resources of any person who

24 executed an affidavit of support pursuant to section
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1 213A of the Immigration and Nationality Act (as

2 added by section 2423) on behalf of such alien.

3 (2) The income and resources of the spouse (if

4 any) of the person.

5 (b) APPLICATION.—Subsection (a) shall apply with re6 spect to an alien until such time as the alien—

7 (1) achieves United States citizenship through

8 naturalization pursuant to chapter 2 of title III of

9 the Immigration and Nationality Act; or

10 (2)(A) has worked 40 qualifying quarters of cov11 erage as defined under title II of the Social Security

12 Act or can be credited with such qualifying quarters

13 as provided under section 2435, and (B) did not re14 ceive any Federal means-tested public benefit (as de15 fined in section 2403(c)) during any such quarter.

16 (c) REVIEW OF INCOME AND RESOURCES OF ALIEN

17 UPON REAPPLICATION.—Whenever an alien is required to

18 reapply for benefits under any Federal means-tested public

19 benefits program, the applicable agency shall review the in20 come and resources attributed to the alien under subsection

21 (a).

22 (d) APPLICATION.—

23 (1) If on the date of the enactment of this Act,

24 a Federal means-tested public benefits program at25 tributes a sponsor’s income and resources to an alien
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1 in determining the alien’s eligibility and the amount

2 of benefits for an alien, this section shall apply to any

3 such determination beginning on the day after the

4 date of the enactment of this Act.

5 (2) If on the date of the enactment of this Act,

6 a Federal means-tested public benefits program does

7 not attribute a sponsor’s income and resources to an

8 alien in determining the alien’s eligibility and the

9 amount of benefits for an alien, this section shall

10 apply to any such determination beginning 180 days

11 after the date of the enactment of this Act.

12 SEC. 2422. AUTHORITY FOR STATES TO PROVIDE FOR AT13 TRIBUTION OF SPONSORS INCOME AND RE14 SOURCES TO THE ALIEN WITH RESPECT TO

15 STATE PROGRAMS.

16 (a) OPTIONAL APPLICATION TO STATE PROGRAMS.—

17 Except as provided in subsection (b), in determining the

18 eligibility and the amount of benefits of an alien for any

19 State public benefits (as defined in section 2412(c)), the

20 State or political subdivision that offers the benefits is au21 thorized to provide that the income and resources of the

22 alien shall be deemed to include—

23 (1) the income and resources of any individual

24 who executed an affidavit of support pursuant to sec25 tion 213A of the Immigration and Nationality Act
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1 (as added by section 2423) on behalf of such alien,

2 and

3 (2) the income and resources of the spouse (if

4 any) of the individual.

5 (b) EXCEPTIONS.—Subsection (a) shall not apply with

6 respect to the following State public benefits:

7 (1) Emergency medical services.

8 (2) Short-term, non-cash, in-kind emergency dis9 aster relief.

10 (3) Programs comparable to assistance or bene11 fits under the National School Lunch Act.

12 (4) Programs comparable to assistance or bene13 fits under the Child Nutrition Act of 1966.

14 (5)(A) Public health assistance for immuniza15 tions.

16 (B) Public health assistance for testing and

17 treatment of a communicable disease if the appro18 priate chief State health official determines that it is

19 necessary to prevent the spread of such disease.

20 (6) Payments for foster care and adoption assist21 ance.

22 (7) Programs, services, or assistance (such as

23 soup kitchens, crisis counseling and intervention, and

24 short-term shelter) specified by the Attorney General

25 of a State, after consultation with appropriate agen-
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1 cies and departments, which (A) deliver in-kind serv2 ices at the community level, including through public

3 or private nonprofit agencies; (B) do not condition

4 the provision of assistance, the amount of assistance

5 provided, or the cost of assistance provided on the in6 dividual recipient’s income or resources; and (C) are

7 necessary for the protection of life or safety.

8 SEC. 2423. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

9 SUPPORT.

10 (a) IN GENERAL.—Title II of the Immigration and

11 Nationality Act is amended by inserting after section 213

12 the following new section:

13 ‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

14 ‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit

15 of support may be accepted by the Attorney General or by

16 any consular officer to establish that an alien is not exclud17 able as a public charge under section 212(a)(4) unless such

18 affidavit is executed as a contract—

19 ‘‘(A) which is legally enforceable against the

20 sponsor by the sponsored alien, the Federal Govern21 ment, and by any State (or any political subdivision

22 of such State) which provides any means-tested public

23 benefits program, but not later than 10 years after the

24 alien last receives any such benefit;
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1 ‘‘(B) in which the sponsor agrees to financially

2 support the alien, so that the alien will not become

3 a public charge; and

4 ‘‘(C) in which the sponsor agrees to submit to the

5 jurisdiction of any Federal or State court for the pur6 pose of actions brought under subsection (e)(2).

7 ‘‘(2) A contract under paragraph (1) shall be enforce8 able with respect to benefits provided to the alien until such

9 time as the alien achieves United States citizenship through

10 naturalization pursuant to chapter 2 of title III.

11 ‘‘(b) FORMS.—Not later than 90 days after the date

12 of enactment of this section, the Attorney General, in con13 sultation with the Secretary of State and the Secretary of

14 Health and Human Services, shall formulate an affidavit

15 of support consistent with the provisions of this section.

16 ‘‘(c) REMEDIES.—Remedies available to enforce an af17 fidavit of support under this section include any or all of

18 the remedies described in section 3201, 3203, 3204, or 3205

19 of title 28, United States Code, as well as an order for spe20 cific performance and payment of legal fees and other costs

21 of collection, and include corresponding remedies available

22 under State law. A Federal agency may seek to collect

23 amounts owed under this section in accordance with the

24 provisions of subchapter II of chapter 37 of title 31, United

25 States Code.
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1 ‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—

2 ‘‘(1) IN GENERAL.—The sponsor shall notify the

3 Attorney General and the State in which the spon4 sored alien is currently resident within 30 days of

5 any change of address of the sponsor during the pe6 riod specified in subsection (a)(2).

7 ‘‘(2) PENALTY.—Any person subject to the re8 quirement of paragraph (1) who fails to satisfy such

9 requirement shall be subject to a civil penalty of—

10 ‘‘(A) not less than $250 or more than

11 $2,000, or

12 ‘‘(B) if such failure occurs with knowledge

13 that the alien has received any means-tested pub14 lic benefit, not less than $2,000 or more than

15 $5,000.

16 ‘‘(e) REIMBURSEMENT OF GOVERNMENT EXPENSES.—

17 (1)(A) Upon notification that a sponsored alien has re18 ceived any benefit under any means-tested public benefits

19 program, the appropriate Federal, State, or local official

20 shall request reimbursement by the sponsor in the amount

21 of such assistance.

22 ‘‘(B) The Attorney General, in consultation with the

23 Secretary of Health and Human Services, shall prescribe

24 such regulations as may be necessary to carry out subpara25 graph (A).
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1 ‘‘(2) If within 45 days after requesting reimbursement,

2 the appropriate Federal, State, or local agency has not re3 ceived a response from the sponsor indicating a willingness

4 to commence payments, an action may be brought against

5 the sponsor pursuant to the affidavit of support.

6 ‘‘(3) If the sponsor fails to abide by the repayment

7 terms established by such agency, the agency may, within

8 60 days of such failure, bring an action against the sponsor

9 pursuant to the affidavit of support.

10 ‘‘(4) No cause of action may be brought under this sub11 section later than 10 years after the alien last received any

12 benefit under any means-tested public benefits program.

13 ‘‘(5) If, pursuant to the terms of this subsection, a Fed14 eral, State, or local agency requests reimbursement from the

15 sponsor in the amount of assistance provided, or brings an

16 action against the sponsor pursuant to the affidavit of sup17 port, the appropriate agency may appoint or hire an indi18 vidual or other person to act on behalf of such agency acting

19 under the authority of law for purposes of collecting any

20 moneys owed. Nothing in this subsection shall preclude any

21 appropriate Federal, State, or local agency from directly

22 requesting reimbursement from a sponsor for the amount

23 of assistance provided, or from bringing an action against

24 a sponsor pursuant to an affidavit of support.
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1 ‘‘(f) DEFINITION.—For the purposes of this section the

2 term ‘sponsor’ means an individual who—

3 ‘‘(1) is a citizen or national of the United States

4 or an alien who is lawfully admitted to the United

5 States for permanent residence;

6 ‘‘(2) is 18 years of age or over;

7 ‘‘(3) is domiciled in any of the 50 States or the

8 District of Columbia; and

9 ‘‘(4) is the person petitioning for the admission

10 of the alien under section 204.

11 (b) CLERICAL AMENDMENT.—The table of contents of

12 such Act is amended by inserting after the item relating

13 to section 213 the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

14 (c) EFFECTIVE DATE.—Subsection (a) of section 213A

15 of the Immigration and Nationality Act, as inserted by sub16 section (a) of this section, shall apply to affidavits of sup17 port executed on or after a date specified by the Attorney

18 General, which date shall be not earlier than 60 days (and

19 not later than 90 days) after the date the Attorney General

20 formulates the form for such affidavits under subsection (b)

21 of such section.

22 (d) BENEFITS NOT SUBJECT TO REIMBURSEMENT.—

23 Requirements for reimbursement by a sponsor for benefits

24 provided to a sponsored alien pursuant to an affidavit of
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1 support under section 213A of the Immigration and Na2 tionality Act shall not apply with respect to the following:

3 (1) Emergency medical services under title XV or

4 XIX of the Social Security Act.

5 (2) Short-term, non-cash, in-kind emergency dis6 aster relief.

7 (3) Assistance or benefits under the National

8 School Lunch Act.

9 (4) Assistance or benefits under the Child Nutri10 tion Act of 1966.

11 (5)(A) Public health assistance for immuniza12 tions.

13 (B) Public health assistance for testing and

14 treatment of a communicable disease if the Secretary

15 of Health and Human Services determines that it is

16 necessary to prevent the spread of such disease.

17 (6) Payments for foster care and adoption assist18 ance under part E of title IV of the Social Security

19 Act for a child, but only if the foster or adoptive par20 ent or parents of such child are not otherwise ineli21 gible pursuant to section 2403 of this Act.

22 (7) Programs, services, or assistance (such as

23 soup kitchens, crisis counseling and intervention, and

24 short-term shelter) specified by the Attorney General,

25 in the Attorney General’s sole and unreviewable dis-
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1 cretion after consultation with appropriate Federal

2 agencies and departments, which (A) deliver in-kind

3 services at the community level, including through

4 public or private nonprofit agencies; (B) do not con5 dition the provision of assistance, the amount of as6 sistance provided, or the cost of assistance provided

7 on the individual recipient’s income or resources; and

8 (C) are necessary for the protection of life or safety.

9 (8) Programs of student assistance under titles

10 IV, V, IX, and X of the Higher Education Act of

11 1965.

12 Subchapter D—General Provisions

13 SEC. 2431. DEFINITIONS.

14 (a) IN GENERAL.—Except as otherwise provided in

15 this chapter, the terms used in this chapter have the same

16 meaning given such terms in section 101(a) of the Immigra17 tion and Nationality Act.

18 (b) QUALIFIED ALIEN.—For purposes of this chapter,

19 the term ‘‘qualified alien’’ means an alien who, at the time

20 the alien applies for, receives, or attempts to receive a Fed21 eral public benefit, is—

22 (1) an alien who is lawfully admitted for perma23 nent residence under the Immigration and National24 ity Act,
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1 (2) an alien who is granted asylum under sec2 tion 208 of such Act,

3 (3) a refugee who is admitted to the United

4 States under section 207 of such Act,

5 (4) an alien who is paroled into the United

6 States under section 212(d)(5) of such Act for a pe7 riod of at least 1 year,

8 (5) an alien whose deportation is being withheld

9 under section 243(h) of such Act, or

10 (6) an alien who is granted conditional entry

11 pursuant to section 203(a)(7) of such Act as in effect

12 prior to April 1, 1980.

13 SEC. 2432. VERIFICATION OF ELIGIBILITY FOR FEDERAL

14 PUBLIC BENEFITS.

15 (a) IN GENERAL.—Not later than 18 months after the

16 date of the enactment of this Act, the Attorney General of

17 the United States, after consultation with the Secretary of

18 Health and Human Services, shall promulgate regulations

19 requiring verification that a person applying for a Federal

20 public benefit (as defined in section 2401(c)), to which the

21 limitation under section 2401 applies, is a qualified alien

22 and is eligible to receive such benefit. Such regulations

23 shall, to the extent feasible, require that information re24 quested and exchanged be similar in form and manner to
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1 information requested and exchanged under section 1137 of

2 the Social Security Act.

3 (b) STATE COMPLIANCE.—Not later than 24 months

4 after the date the regulations described in subsection (a) are

5 adopted, a State that administers a program that provides

6 a Federal public benefit shall have in effect a verification

7 system that complies with the regulations.

8 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

9 authorized to be appropriated such sums as may be nec10 essary to carry out the purpose of this section.

11 SEC. 2433. STATUTORY CONSTRUCTION.

12 (a) LIMITATION.—

13 (1) Nothing in this chapter may be construed as

14 an entitlement or a determination of an individual’s

15 eligibility or fulfillment of the requisite requirements

16 for any Federal, State, or local governmental pro17 gram, assistance, or benefits. For purposes of this

18 chapter, eligibility relates only to the general issue of

19 eligibility or ineligibility on the basis of alienage.

20 (2) Nothing in this chapter may be construed as

21 addressing alien eligibility for a basic public edu22 cation as determined by the Supreme Court of the

23 United States under Plyler v. Doe (457 U.S.

24 202)(1982).
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1 (b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—This

2 chapter does not apply to any Federal, State, or local gov3 ernmental program, assistance, or benefits provided to an

4 alien under any program of foreign assistance as deter5 mined by the Secretary of State in consultation with the

6 Attorney General.

7 (c) SEVERABILITY.—If any provision of this chapter

8 or the application of such provision to any person or cir9 cumstance is held to be unconstitutional, the remainder of

10 this chapter and the application of the provisions of such

11 to any person or circumstance shall not be affected thereby.

12 SEC. 2434. COMMUNICATION BETWEEN STATE AND LOCAL

13 GOVERNMENT AGENCIES AND THE IMMIGRA14 TION AND NATURALIZATION SERVICE.

15 Notwithstanding any other provision of Federal, State,

16 or local law, no State or local government entity may be

17 prohibited, or in any way restricted, from sending to or

18 receiving from the Immigration and Naturalization Service

19 information regarding the immigration status, lawful or

20 unlawful, of an alien in the United States.

21 SEC. 2435. QUALIFYING QUARTERS.

22 For purposes of this chapter, in determining the num23 ber of qualifying quarters of coverage under title II of the

24 Social Security Act an alien shall be credited with—
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1 (1) all of the qualifying quarters of coverage as

2 defined under title II of the Social Security Act

3 worked by a parent of such alien while the alien was

4 under age 18 if the parent did not receive any Fed5 eral means-tested public benefit (as defined in section

6 2403(c)) during any such quarter, and

7 (2) all of the qualifying quarters worked by a

8 spouse of such alien during their marriage if the

9 spouse did not receive any Federal means-tested pub10 lic benefit (as defined in section 2403(c)) during any

11 such quarter and the alien remains married to such

12 spouse or such spouse is deceased.

13 Subchapter E—Conforming Amendments

14 Relating to Assisted Housing

15 SEC. 2441. CONFORMING AMENDMENTS RELATING TO AS16 SISTED HOUSING.

17 (a) LIMITATIONS ON ASSISTANCE.—Section 214 of the

18 Housing and Community Development Act of 1980 (42

19 U.S.C. 1436a) is amended—

20 (1) by striking ‘‘Secretary of Housing and

21 Urban Development’’ each place it appears and in22 serting ‘‘applicable Secretary’’;

23 (2) in subsection (b), by inserting after ‘‘Na24 tional Housing Act,’’ the following: ‘‘the direct loan

25 program under section 502 of the Housing Act of
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1 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or

2 542 of such Act, subtitle A of title III of the Cranston3 Gonzalez National Affordable Housing Act,’’;

4 (3) in paragraphs (2) through (6) of subsection

5 (d), by striking ‘‘Secretary’’ each place it appears

6 and inserting ‘‘applicable Secretary’’;

7 (4) in subsection (d), in the matter following

8 paragraph (6), by striking ‘‘the term ‘Secretary’’’ and

9 inserting ‘‘the term ‘applicable Secretary’’’; and

10 (5) by adding at the end the following new sub11 section:

12 ‘‘(h) For purposes of this section, the term ‘applicable

13 Secretary’ means—

14 ‘‘(1) the Secretary of Housing and Urban Devel15 opment, with respect to financial assistance adminis16 tered by such Secretary and financial assistance

17 under subtitle A of title III of the Cranston-Gonzalez

18 National Affordable Housing Act; and

19 ‘‘(2) the Secretary of Agriculture, with respect to

20 financial assistance administered by such Secretary.’’.

21 (b) CONFORMING AMENDMENTS.—Section 501(h) of

22 the Housing Act of 1949 (42 U.S.C. 1471(h)) is amended—

23 (1) by striking ‘‘(1)’’;

24 (2) by striking ‘‘by the Secretary of Housing and

25 Urban Development’’; and
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1 (3) by striking paragraph (2).

2 Subchapter F—Earned Income Credit Denied

3 to Unauthorized Employees

4 SEC. 2451. EARNED INCOME CREDIT DENIED TO INDIVID5 UALS NOT AUTHORIZED TO BE EMPLOYED IN

6 THE UNITED STATES.

7 (a) IN GENERAL.—Section 32(c)(1) of the Internal

8 Revenue Code of 1986 (relating to individuals eligible to

9 claim the earned income credit) is amended by adding at

10 the end the following new subparagraph:

11 ‘‘(F) IDENTIFICATION NUMBER REQUIRE12 MENT.—The term ‘eligible individual’ does not

13 include any individual who does not include on

14 the return of tax for the taxable year—

15 ‘‘(i) such individual’s taxpayer identi16 fication number, and

17 ‘‘(ii) if the individual is married

18 (within the meaning of section 7703), the

19 taxpayer identification number of such in20 dividual’s spouse.’’.

21 (b) SPECIAL IDENTIFICATION NUMBER.—Section 32 of

22 such Code is amended by adding at the end the following

23 new subsection:

24 ‘‘(l) IDENTIFICATION NUMBERS.—Solely for purposes

25 of subsections (c)(1)(F) and (c)(3)(D), a taxpayer identi-
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1 fication number means a social security number issued to

2 an individual by the Social Security Administration (other

3 than a social security number issued pursuant to clause (II)

4 (or that portion of clause (III) that relates to clause (II))

5 of section 205(c)(2)(B)(i) of the Social Security Act).’’.

6 (c) EXTENSION OF PROCEDURES APPLICABLE TO

7 MATHEMATICAL OR CLERICAL ERRORS.—Section

8 6213(g)(2) of such Code (relating to the definition of mathe9 matical or clerical errors) is amended by striking ‘‘and’ at

10 the end of subparagraph (D), by striking the period at the

11 end of subparagraph (E) and inserting a comma, and by

12 inserting after subparagraph (E) the following new sub13 paragraphs:

14 ‘‘(F) an omission of a correct taxpayer

15 identification number required under section 32

16 (relating to the earned income tax credit) to be

17 included on a return, and

18 ‘‘(G) an entry on a return claiming the

19 credit under section 32 with respect to net earn20 ings from self-employment described in section

21 32(c)(2)(A) to the extent the tax imposed by sec22 tion 1401 (relating to self-employment tax) on

23 such net earnings has not been paid.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to taxable years beginning after Decem3 ber 31, 1995.

4 CHAPTER 5—REFORM OF PUBLIC

5 HOUSING

6 SEC. 2501. FAILURE TO COMPLY WITH OTHER WELFARE

7 AND PUBLIC ASSISTANCE PROGRAMS.

8 Title I of the United States Housing Act of 1937 (42

9 U.S.C. 1437 et seq.), as amended by section 2404(d) of this

10 Act, is amended by adding at the end the following new

11 section:

12 ‘‘SEC. 28. FAILURE TO COMPLY WITH OTHER WELFARE AND

13 PUBLIC ASSISTANCE PROGRAMS.

14 ‘‘(a) IN GENERAL.—If the benefits of a family are re15 duced under a Federal, State, or local law relating to wel16 fare or a public assistance program for the failure of any

17 member of the family to perform an action required under

18 the law or program, the family may not, for the duration

19 of the reduction, receive any increased assistance under this

20 Act as the result of a decrease in the income of the family

21 to the extent that the decrease in income is the result of

22 the benefits reduction.

23 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply in

24 any case in which the benefits of a family are reduced be25 cause the welfare or public assistance program to which the
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1 Federal, State, or local law relates limits the period during

2 which benefits may be provided under the program.’’.

3 SEC. 2502. FRAUD UNDER MEANS-TESTED WELFARE AND

4 PUBLIC ASSISTANCE PROGRAMS.

5 (a) IN GENERAL.—If an individual’s benefits under a

6 Federal, State, or local law relating to a means-tested wel7 fare or a public assistance program are reduced because of

8 an act of fraud by the individual under the law or program,

9 the individual may not, for the duration of the reduction,

10 receive an increased benefit under any other means-tested

11 welfare or public assistance program for which Federal

12 funds are appropriated as a result of a decrease in the in13 come of the individual (determined under the applicable

14 program) attributable to such reduction.

15 (b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR

16 WHICH FEDERAL FUNDS ARE APPROPRIATED.—For pur17 poses of subsection (a), the term ‘‘means-tested welfare or

18 public assistance program for which Federal funds are ap19 propriated’’ includes the food stamp program under the

20 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any pro21 gram of public or assisted housing under title I of the Unit22 ed States Housing Act of 1937 (42 U.S.C. 1437 et seq.),

23 and State programs funded under part A of title IV of the

24 Social Security Act (42 U.S.C. 601 et seq.).
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1 CHAPTER 6—TECHNICAL AMENDMENTS

2 RELATING TO CHILD PROTECTION

3 PROGRAMS

4 SEC. 2601. EXTENSION OF ENHANCED FUNDING FOR IMPLE5 MENTATION OF STATEWIDE AUTOMATED

6 CHILD WELFARE INFORMATION SYSTEMS.

7 Section 474(a)(3)(B) of the Social Security Act (42

8 U.S.C. 674(a)(3)(B)) is amended by inserting ‘‘(of, if the

9 quarter is in fiscal year 1997, 75 percent)’’ after ‘‘50 per10 cent’’ each place it appears.

11 SEC. 2602. REDESIGNATION OF SECTION 1123.

12 The Social Security Act is amended by redesignating

13 section 1123, the second place it appears (42 U.S.C. 1320a–

14 1a), as section 1123A.

15 SEC. 2603. KINSHIP CARE.

16 Section 471(a) of the Social Security Act (42 U.S.C.

17 671(a)) is amended—

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

19 (16);

20 (2) by striking the period at the end of para21 graph (17) and inserting ‘‘; and’’; and

22 (3) by adding at the end the following new para23 graph:

24 ‘‘(18) provides that States shall give preference to

25 an adult relative over a non-related caregiver when
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1 determining a placement for a child, provided that

2 the relative caregiver meets all relevant State child

3 protection standards.’’.

4 CHAPTER 7—CHILD CARE

5 SEC. 2701. SHORT TITLE AND REFERENCES.

6 (a) SHORT TITLE.—This chapter may be cited as the

7 ‘‘Child Care and Development Block Grant Amendments of

8 1996’’.

9 (b) REFERENCES.—Except as otherwise expressly pro10 vided, whenever in this chapter an amendment or repeal

11 is expressed in terms of an amendment to, or repeal of, a

12 section or other provision, the reference shall be considered

13 to be made to a section or other provision of the Child Care

14 and Development Block Grant Act of 1990 (42 U.S.C. 9858

15 et seq.).

16 SEC. 2802. GOALS.

17 (a) GOALS.—Section 658A (42 U.S.C. 9801 note) is

18 amended—

19 (1) in the section heading by inserting ‘‘AND

20 GOALS’’ after ‘‘TITLE’’;

21 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

22 ‘‘This’’; and

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

24 ‘‘(b) GOALS.—The goals of this subchapter are—
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1 ‘‘(1) to allow each State maximum flexibility in

2 developing child care programs and policies that best

3 suit the needs of children and parents within such

4 State;

5 ‘‘(2) to promote parental choice to empower

6 working parents to make their own decisions on the

7 child care that best suits their family’s needs;

8 ‘‘(3) to encourage States to provide consumer

9 education information to help parents make informed

10 choices about child care;

11 ‘‘(4) to assist States to provide child care to par12 ents trying to achieve independence from public as13 sistance; and

14 ‘‘(5) to assist States in implementing the health,

15 safety, licensing, and registration standards estab16 lished in State regulations.’’.

17 SEC. 2703. AUTHORIZATION OF APPROPRIATIONS AND EN18 TITLEMENT AUTHORITY.

19 (a) IN GENERAL.—Section 658B (42 U.S.C. 9858) is

20 amended to read as follows:

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

22 ‘‘There is authorized to be appropriated to carry out

23 this subchapter $1,000,000,000 for each of the fiscal years

24 1996 through 2002.’’.
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1 (b) SOCIAL SECURITY ACT.—Part A of title IV of the

2 Social Security Act (42 U.S.C. 601 et seq.) is amended by

3 adding at the end the following:

4 ‘‘SEC. 418. FUNDING FOR CHILD CARE.

5 ‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—

6 ‘‘(1) GENERAL ENTITLEMENT.—Subject to the

7 amount appropriated under paragraph (3), each

8 State shall, for the purpose of providing child care as9 sistance, be entitled to payments under a grant under

10 this subsection for a fiscal year in an amount equal

11 to—

12 ‘‘(A) the sum of the total amount required

13 to be paid to the State under former section 403

14 for fiscal year 1994 or 1995 (whichever is great15 er) with respect to amounts expended for child

16 care under section—

17 ‘‘(i) 402(g) of this Act (as such section

18 was in effect before October 1, 1995); and

19 ‘‘(ii) 402(i) of this Act (as so in effect);

20 or

21 ‘‘(B) the average of the total amounts re22 quired to be paid to the State for fiscal years

23 1992 through 1994 under the sections referred to

24 in subparagraph (A);

25 whichever is greater.
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1 ‘‘(2) REMAINDER.—

2 ‘‘(A) GRANTS.—The Secretary shall use any

3 amounts appropriated for a fiscal year under

4 paragraph (3), and remaining after the reserva5 tion described in paragraph (4) and after grants

6 are awarded under paragraph (1), to make

7 grants to States under this paragraph.

8 ‘‘(B) AMOUNT.—Subject to subparagraph

9 (C), the amount of a grant awarded to a State

10 for a fiscal year under this paragraph shall be

11 based on the formula used for determining the

12 amount of Federal payments to the State under

13 section 403(n) (as such section was in effect be14 fore October 1, 1995).

15 ‘‘(C) MATCHING REQUIREMENT.—The Sec16 retary shall pay to each eligible State in a fiscal

17 year an amount, under a grant under subpara18 graph (A), equal to the Federal medical assist19 ance percentage for such State for fiscal year

20 1995 (as defined in section 1905(b)) of so much

21 of the expenditures by the State for child care in

22 such year as exceed the State set-aside for such

23 State under paragraph (1)(A) for such year and

24 the amount of State expenditures in fiscal year

25 1994 (or fiscal year 1995, whichever is greater)
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1 that equal the non-Federal share for the pro2 grams described in subparagraph (A) of para3 graph (1).

4 ‘‘(D) REDISTRIBUTION.—

5 ‘‘(i) IN GENERAL.—With respect to any

6 fiscal year, if the Secretary determines (in

7 accordance with clause (ii)) that amounts

8 under any grant awarded to a State under

9 this paragraph for such fiscal year will not

10 be used by such State during such fiscal

11 year for carrying out the purpose for which

12 the grant is made, the Secretary shall make

13 such amounts available in the subsequent

14 fiscal year for carrying out such purpose to

15 1 or more States which apply for such funds

16 to the extent the Secretary determines that

17 such States will be able to use such addi18 tional amounts for carrying out such pur19 pose. Such available amounts shall be redis20 tributed to a State pursuant to section

21 402(i) (as such section was in effect before

22 October 1, 1995) by substituting ‘the num23 ber of children residing in all States apply24 ing for such funds’ for ‘the number of chil-
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1 dren residing in the United States in the

2 second preceding fiscal year’.

3 ‘‘(ii) TIME OF DETERMINATION AND

4 DISTRIBUTION.—The determination of the

5 Secretary under clause (i) for a fiscal year

6 shall be made not later than the end of the

7 first quarter of the subsequent fiscal year.

8 The redistribution of amounts under clause

9 (i) shall be made as close as practicable to

10 the date on which such determination is

11 made. Any amount made available to a

12 State from an appropriation for a fiscal

13 year in accordance with this subparagraph

14 shall, for purposes of this part, be regarded

15 as part of such State’s payment (as deter16 mined under this subsection) for the fiscal

17 year in which the redistribution is made.

18 ‘‘(3) APPROPRIATION.—There are authorized to

19 be appropriated, and there are appropriated, to carry

20 out this section—

21 ‘‘(A) $1,967,000,000 for fiscal year 1997;

22 ‘‘(B) $2,067,000,000 for fiscal year 1998;

23 ‘‘(C) $2,167,000,000 for fiscal year 1999;

24 ‘‘(D) $2,367,000,000 for fiscal year 2000;
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1 ‘‘(E) $2,567,000,000 for fiscal year 2001;

2 and

3 ‘‘(F) $2,717,000,000 for fiscal year 2002.

4 ‘‘(4) INDIAN TRIBES.—The Secretary shall re5 serve not more than 1 percent of the aggregate

6 amount appropriated to carry out this section in each

7 fiscal year for payments to Indian tribes and tribal

8 organizations.

9 ‘‘(b) USE OF FUNDS.—

10 ‘‘(1) IN GENERAL.—Amounts received by a State

11 under this section shall only be used to provide child

12 care assistance. Amounts received by a State under a

13 grant under subsection (a)(1) shall be available for

14 use by the State without fiscal year limitation.

15 ‘‘(2) USE FOR CERTAIN POPULATIONS.—A State

16 shall ensure that not less than 70 percent of the total

17 amount of funds received by the State in a fiscal year

18 under this section are used to provide child care as19 sistance to families who are receiving assistance

20 under a State program under this part, families who

21 are attempting through work activities to transition

22 off of such assistance program, and families who are

23 at risk of becoming dependent on such assistance pro24 gram.
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1 ‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT

2 BLOCK GRANT ACT of 1990.—Notwithstanding any other

3 provision of law, amounts provided to a State under this

4 section shall be transferred to the lead agency under the

5 Child Care and Development Block Grant Act of 1990, inte6 grated by the State into the programs established by the

7 State under such Act, and be subject to requirements and

8 limitations of such Act.

9 ‘‘(d) DEFINITION.—As used in this section, the term

10 ‘State’ means each of the 50 States or the District of Colum11 bia.’’.

12 SEC. 2704. LEAD AGENCY.

13 Section 658D(b) (42 U.S.C. 9858b(b)) is amended—

14 (1) in paragraph (1)—

15 (A) in subparagraph (A), by striking

16 ‘‘State’’ the first place that such appears and in17 serting ‘‘governmental or nongovernmental’’; and

18 (B) in subparagraph (C), by inserting

19 ‘‘with sufficient time and Statewide distribution

20 of the notice of such hearing,’’ after ‘‘hearing in

21 the State’’; and

22 (2) in paragraph (2), by striking the second sen23 tence.

24 SEC. 2705. APPLICATION AND PLAN.

25 Section 658E (42 U.S.C. 9858c) is amended—
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1 (1) in subsection (b)—

2 (A) by striking ‘‘implemented—’’ and all

3 that follows through ‘‘(2)’’ and inserting ‘‘imple4 mented’’; and

5 (B) by striking ‘‘for subsequent State

6 plans’’;

7 (2) in subsection (c)—

8 (A) in paragraph (2)—

9 (i) in subparagraph (A)—

10 (I) in clause (i) by striking ‘‘,

11 other than through assistance provided

12 under paragraph (3)(C),’’; and

13 (II) by striking ‘‘except’’ and all

14 that follows through ‘‘1992’’, and in15 serting ‘‘and provide a detailed de16 scription of the procedures the State

17 will implement to carry out the re18 quirements of this subparagraph’’;

19 (ii) in subparagraph (B)—

20 (I) by striking ‘‘Provide assur21 ances’’ and inserting ‘‘Certify’’; and

22 (II) by inserting before the period

23 at the end ‘‘and provide a detailed de24 scription of such procedures’’;

25 (iii) in subparagraph (C)—
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1 (I) by striking ‘‘Provide assur2 ances’’ and inserting ‘‘Certify’’; and

3 (II) by inserting before the period

4 at the end ‘‘and provide a detailed de5 scription of how such record is main6 tained and is made available’’;

7 (iv) by amending subparagraph (D) to

8 read as follows:

9 ‘‘(D) CONSUMER EDUCATION INFORMA10 TION.—Certify that the State will collect and

11 disseminate to parents of eligible children and

12 the general public, consumer education informa13 tion that will promote informed child care

14 choices.’’;

15 (v) in subparagraph (E), to read as

16 follows:

17 ‘‘(E) COMPLIANCE WITH STATE LICENSING

18 REQUIREMENTS.—

19 ‘‘(i) IN GENERAL.—Certify that the

20 State has in effect licensing requirements

21 applicable to child care services provided

22 within the State, and provide a detailed de23 scription of such requirements and of how

24 such requirements are effectively enforced.

25 Nothing in the preceding sentence shall be
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1 construed to require that licensing require2 ments be applied to specific types of provid3 ers of child care services.

4 ‘‘(ii) INDIAN TRIBES AND TRIBAL OR5 GANIZATIONS.—In lieu of any licensing and

6 regulatory requirements applicable under

7 State and local law, the Secretary, in con8 sultation with Indian tribes and tribal or9 ganizations, shall develop minimum child

10 care standards (that appropriately reflect

11 tribal needs and available resources) that

12 shall be applicable to Indian tribes and

13 tribal organizations receiving assistance

14 under this subchapter.’’; and

15 (vi) by striking subparagraphs (H),

16 (I), and (J) and inserting the following:

17 ‘‘(G) MEETING THE NEEDS OF CERTAIN

18 POPULATIONS.—Demonstrate the manner in

19 which the State will meet the specific child care

20 needs of families who are receiving assistance

21 under a State program under part A of title IV

22 of the Social Security Act, families who are at23 tempting through work activities to transition off

24 of such assistance program, and families that are
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1 at risk of becoming dependent on such assistance

2 program.’’;

3 (B) in paragraph (3)—

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

5 ‘‘(B) and (C)’’ and inserting ‘‘(B) through

6 (D)’’;

7 (ii) in subparagraph (B)—

8 (I) by striking ‘‘.—Subject to the

9 reservation contained in subparagraph

10 (C), the’’ and inserting ‘‘AND RELATED

11 ACTIVITIES.—The’’;

12 (II) in clause (i) by striking ‘‘;

13 and’’ at the end and inserting a pe14 riod;

15 (III) by striking ‘‘for—’’ and all

16 that follows through ‘‘section

17 658E(c)(2)(A)’’ and inserting ‘‘for

18 child care services on sliding fee scale

19 basis, activities that improve the qual20 ity or availability of such services, and

21 any other activity that the State deems

22 appropriate to realize any of the goals

23 specified in paragraphs (2) through (5)

24 of section 658A(b)’’; and

25 (IV) by striking clause (ii);
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1 (iii) by amending subparagraph (C) to

2 read as follows:

3 ‘‘(C) LIMITATION ON ADMINISTRATIVE

4 COSTS.—Not more than 5 percent of the aggre5 gate amount of funds available to the State to

6 carry out this subchapter by a State in each fis7 cal year may be expended for administrative

8 costs incurred by such State to carry out all of

9 its functions and duties under this subchapter.

10 As used in the preceding sentence, the term ‘ad11 ministrative costs’ shall not include the costs of

12 providing direct services.’’; and

13 (iv) by adding at the end thereof the

14 following:

15 ‘‘(D) ASSISTANCE FOR CERTAIN FAMI16 LIES.—A State shall ensure that a substantial

17 portion of the amounts available (after the State

18 has complied with the requirement of section

19 418(b)(2) of the Social Security Act with respect

20 to each of the fiscal years 1997 through 2002) to

21 the State to carry out activities under this sub22 chapter in each fiscal year is used to provide as23 sistance to low-income working families other

24 than families described in paragraph (2)(F).’’;

25 and
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1 (C) in paragraph (4)(A)—

2 (i) by striking ‘‘provide assurances’’

3 and inserting ‘‘certify’’;

4 (ii) in the first sentence by inserting

5 ‘‘and shall provide a summary of the facts

6 relied on by the State to determine that

7 such rates are sufficient to ensure such ac8 cess’’ before the period; and

9 (iii) by striking the last sentence.

10 SEC. 2706. LIMITATION ON STATE ALLOTMENTS.

11 Section 658F(b) (42 U.S.C. 9858d(b)) is amended—

12 (1) in paragraph (1), by striking ‘‘No’’ and in13 serting ‘‘Except as provided for in section 658O(c)(6),

14 no’’; and

15 (2) in paragraph (2), by striking ‘‘referred to in

16 section 658E(c)(2)(F)’’.

17 SEC. 2707. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD

18 CARE.

19 Section 658G (42 U.S.C. 9858e) is amended to read

20 as follows:

21 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF

22 CHILD CARE.

23 ‘‘A State that receives funds to carry out this sub24 chapter for a fiscal year, shall use not less than 4 percent

25 of the amount of such funds for activities that are designed
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1 to provide comprehensive consumer education to parents

2 and the public, activities that increase parental choice, and

3 activities designed to improve the quality and availability

4 of child care (such as resource and referral services).’’.

5 SEC. 2708. 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. 2709. 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 ‘‘finding

16 and shall require that the State reimburse the Sec17 retary for any funds that were improperly expended

18 for purposes prohibited or not authorized by this sub19 chapter, that the Secretary deduct from the adminis20 trative portion of the State allotment for the following

21 fiscal year an amount that is less than or equal to

22 any improperly expended funds, or a combination of

23 such options.’’.
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1 SEC. 2710. PAYMENTS.

2 Section 658J(c) (42 U.S.C. 9858h(c)) is amended by

3 striking ‘‘expended’’ and inserting ‘‘obligated’’.

4 SEC. 2711. 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 infor17 mation required under this subparagraph shall

18 include, with respect to a family unit receiving

19 assistance under this subchapter information

20 concerning—

21 ‘‘(i) family income;

22 ‘‘(ii) county of residence;

23 ‘‘(iii) the gender, race, and age of chil24 dren 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 sep3 arately 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 care);

18 ‘‘(viii) whether the child care provider

19 involved was a relative;

20 ‘‘(ix) the cost of child care for such

21 families; and

22 ‘‘(x) the average hours per week of such

23 care;

24 during the period for which such information is

25 required to be submitted.
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1 ‘‘(C) SUBMISSION TO SECRETARY.—A State

2 described in subparagraph (A) shall, on a quar3 terly basis, submit the information required to be

4 collected under subparagraph (B) to the Sec5 retary.

6 ‘‘(D) SAMPLING.—The Secretary may dis7 approve the information collected by a State

8 under this paragraph if the State uses sampling

9 methods to collect such information.

10 ‘‘(2) BIANNUAL REPORTS.—Not later than De11 cember 31, 1997, and every 6 months thereafter, a

12 State described in paragraph (1)(A) shall prepare

13 and submit to the Secretary a report that includes ag14 gregate data concerning—

15 ‘‘(A) the number of child care providers that

16 received funding under this subchapter as sepa17 rately identified based on the types of providers

18 listed in section 658P(5);

19 ‘‘(B) the monthly cost of child care services,

20 and the portion of such cost that is paid for with

21 assistance provided under this subchapter, listed

22 by the type of child care services provided;

23 ‘‘(C) the number of payments made by the

24 State through vouchers, contracts, cash, and dis-
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1 regards under public benefit programs, listed by

2 the type of child care services provided;

3 ‘‘(D) the manner in which consumer edu4 cation information was provided to parents and

5 the number of parents to whom such information

6 was provided; and

7 ‘‘(E) the total number (without duplication)

8 of children and families served under this sub9 chapter;

10 during the period for which such report is required to

11 be submitted.’’; and

12 (2) in subsection (b)—

13 (A) in paragraph (1) by striking ‘‘a appli14 cation’’ and inserting ‘‘an application’’;

15 (B) in paragraph (2) by striking ‘‘any

16 agency administering activities that receive’’ and

17 inserting ‘‘the State that receives’’; and

18 (C) in paragraph (4) by striking ‘‘entitles’’

19 and inserting ‘‘entitled’’.

20 SEC. 2712. REPORT BY THE SECRETARY.

21 Section 658L (42 U.S.C. 9858j) is amended—

22 (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;

23 (2) by striking ‘‘annually’’ and inserting ‘‘bien24 nially’’; and
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1 (3) by striking ‘‘Education and Labor’’ and in2 serting ‘‘Economic and Educational Opportunities’’.

3 SEC. 2713. ALLOTMENTS.

4 Section 658O (42 U.S.C. 9858m) is amended—

5 (1) in subsection (a)(1)—

6 (A) by striking ‘‘POSSESSIONS’’ and insert7 ing ‘‘POSSESSIONS’’;

8 (B) by inserting ‘‘and’’ after ‘‘States,’’; and

9 (C) by striking ‘‘, and the Trust Territory

10 of the Pacific Islands’’;

11 (2) in subsection (c)—

12 (A) in paragraph (5) by striking ‘‘our’’ and

13 inserting ‘‘out’’; and

14 (B) by adding at the end thereof the follow15 ing new paragraph:

16 ‘‘(6) CONSTRUCTION OR RENOVATION OF FACILI17 TIES.—

18 ‘‘(A) REQUEST FOR USE OF FUNDS.—An

19 Indian tribe or tribal organization may submit

20 to the Secretary a request to use amounts pro21 vided under this subsection for construction or

22 renovation purposes.
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1 ‘‘(B) DETERMINATION.—With respect to a

2 request submitted under subparagraph (A), and

3 except as provided in subparagraph (C), upon a

4 determination by the Secretary that adequate fa5 cilities are not otherwise available to an Indian

6 tribe or tribal organization to enable such tribe

7 or organization to carry out child care programs

8 in accordance with this subchapter, and that the

9 lack of such facilities will inhibit the operation

10 of such programs in the future, the Secretary

11 may permit the tribe or organization to use as12 sistance provided under this subsection to make

13 payments for the construction or renovation of

14 facilities that will be used to carry out such pro15 grams.

16 ‘‘(C) LIMITATION.—The Secretary may not

17 permit an Indian tribe or tribal organization to

18 use amounts provided under this subsection for

19 construction or renovation if such use will result

20 in a decrease in the level of child care services

21 provided by the tribe or organization as com22 pared to the level of such services provided by the

23 tribe or organization in the fiscal year preceding

24 the year for which the determination under sub25 paragraph (A) is being made.
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1 ‘‘(D) UNIFORM PROCEDURES.—The Sec2 retary shall develop and implement uniform pro3 cedures for the solicitation and consideration of

4 requests under this paragraph.’’; and

5 (3) in subsection (e), by adding at the end there6 of the following new paragraph:

7 ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZA8 TIONS.—Any portion of a grant or contract made to

9 an Indian tribe or tribal organization under sub10 section (c) that the Secretary determines is not being

11 used in a manner consistent with the provision of this

12 subchapter in the period for which the grant or con13 tract is made available, shall be allotted by the Sec14 retary to other tribes or organizations that have sub15 mitted applications under subsection (c) in accord16 ance with their respective needs.’’.

17 SEC. 2714. DEFINITIONS.

18 Section 658P (42 U.S.C. 9858n) is amended—

19 (1) in paragraph (2), in the first sentence by in20 serting ‘‘or as a deposit for child care services if such

21 a deposit is required of other children being cared for

22 by the provider’’ after ‘‘child care services’’; and

23 (2) by striking paragraph (3);

24 (3) in paragraph (4)(B), by striking ‘‘75 per25 cent’’ and inserting ‘‘85 percent’’;
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1 (4) in paragraph (5)(B)—

2 (A) by inserting ‘‘great grandchild, sibling

3 (if such provider lives in a separate residence),’’

4 after ‘‘grandchild,’’;

5 (B) by striking ‘‘is registered and’’; and

6 (C) by striking ‘‘State’’ and inserting ‘‘ap7 plicable’’.

8 (5) by striking paragraph (10);

9 (6) in paragraph (13)—

10 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and

11 (B) by striking ‘‘, and the Trust Territory

12 of the Pacific Islands’’;

13 (7) in paragraph (14)—

14 (A) by striking ‘‘The term’’ and inserting

15 the following:

16 ‘‘(A) IN GENERAL.—The term’’; and

17 (B) by adding at the end thereof the follow18 ing new subparagraph:

19 ‘‘(B) OTHER ORGANIZATIONS.—Such term

20 includes a Native Hawaiian Organization, as

21 defined in section 4009(4) of the Augustus F.

22 Hawkins-Robert T. Stafford Elementary and

23 Secondary School Improvement Amendments of

24 1988 (20 U.S.C. 4909(4)) and a private non25 profit organization established for the purpose of
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1 serving youth who are Indians or Native Hawai2 ians.’’.

3 SEC. 2715. EFFECTIVE DATE.

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

5 (b), this chapter and the amendments made by this chapter

6 shall take effect on October 1, 1996.

7 (b) EXCEPTION.—The amendment made by section

8 2803(a) shall take effect on the date of enactment of this

9 Act.

10 CHAPTER 8—MISCELLANEOUS

11 SEC. 2801. APPROPRIATION BY STATE LEGISLATURES.

12 (a) IN GENERAL.—Any funds received by a State

13 under the provisions of law specified in subsection (b) shall

14 be subject to appropriation by the State legislature, consist15 ent with the terms and conditions required under such pro16 visions of law.

17 (b) PROVISIONS OF LAW.—The provisions of law speci18 fied in this subsection are the following:

19 (1) Part A of title IV of the Social Security Act

20 (relating to block grants for temporary assistance for

21 needy families).

22 (2) Section 27 of the Food Stamp Act of 1977

23 (relating to the optional State food assistance block

24 grant).
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1 (3) The Child Care and Development Block

2 Grant Act of 1990 (relating to block grants for child

3 care).

4 SEC. 2802. SANCTIONING FOR TESTING POSITIVE FOR CON5 TROLLED SUBSTANCES.

6 Notwithstanding any other provision of law, States

7 shall not be prohibited by the Federal Government from

8 testing welfare recipients for use of controlled substances nor

9 from sanctioning welfare recipients who test positive for use

10 of controlled substances.

11 SEC. 2803. REDUCTION IN BLOCK GRANTS TO STATES FOR

12 SOCIAL SERVICES.

13 (a) IN GENERAL.—Section 2003(c) of the Social Secu14 rity Act (42 U.S.C. 1397b(c)) is amended—

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

16 (4); and

17 (2) by striking paragraph (5) and inserting the

18 following:

19 ‘‘(5) $2,800,000,000 for each of the fiscal years

20 1990 through 1995;

21 ‘‘(6) $2,381,000,000 for the fiscal year 1996;

22 ‘‘(7) $2,240,000,000 for each of the fiscal years

23 1997 through 2002; and

24 ‘‘(8) $2,800,000,000 for the fiscal year 2003 and

25 each succeeding fiscal year.’’.
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1 (b) DEDICATION OF BLOCK GRANT SHARE.—Section

2 2001 of the Social Security Act (42 U.S.C. 1397) is amend3 ed—

4 (1) in the matter preceding paragraph (1), by

5 inserting ‘‘(a)’’ before ‘‘For’’; and

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

7 ‘‘(b) For any fiscal year in which a State receives an

8 allotment under section 2003, such State shall dedicate an

9 amount equal to 1 percent of such allotment to fund pro10 grams and services that teach minors to avoid out-of-wed11 lock pregnancies.’’.

12 SEC. 2804. ELIMINATION OF HOUSING ASSISTANCE WITH

13 RESPECT TO FUGITIVE FELONS AND PROBA14 TION AND PAROLE VIOLATORS.

15 (a) ELIGIBILITY FOR ASSISTANCE.—The United States

16 Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended—

17 (1) in section 6(l)—

18 (A) in paragraph (5), by striking ‘‘and’’ at

19 the end;

20 (B) in paragraph (6), by striking the period

21 at the end and inserting ‘‘; and’’; and

22 (C) by inserting immediately after para23 graph (6) the following new paragraph:
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1 ‘‘(7) provide that it shall be cause for immediate

2 termination of the tenancy of a public housing tenant

3 if such tenant—

4 ‘‘(A) is fleeing to avoid prosecution, or cus5 tody or confinement after conviction, under the

6 laws of the place from which the individual flees,

7 for a crime, or attempt to commit a crime,

8 which is a felony under the laws of the place

9 from which the individual flees, or which, in the

10 case of the State of New Jersey, is a high mis11 demeanor under the laws of such State; or

12 ‘‘(2) is violating a condition of probation or pa13 role imposed under Federal or State law.’’; and

14 (2) in section 8(d)(1)(B)—

15 (A) in clause (iii), by striking ‘‘and’’ at the

16 end;

17 (B) in clause (iv), by striking the period at

18 the end and inserting ‘‘; and’’; and

19 (C) by adding after clause (iv) the following

20 new clause:

21 ‘‘(v) it shall be cause for termination of

22 the tenancy of a tenant if such tenant—

23 ‘‘(I) is fleeing to avoid prosecu24 tion, or custody or confinement after

25 conviction, under the laws of the place
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1 from which the individual flees, for a

2 crime, or attempt to commit a crime,

3 which is a felony under the laws of the

4 place from which the individual flees,

5 or which, in the case of the State of

6 New Jersey, is a high misdemeanor

7 under the laws of such State; or

8 ‘‘(II) is violating a condition of

9 probation or parole imposed under

10 Federal or State law;’’.

11 (b) PROVISION OF INFORMATION TO LAW ENFORCE12 MENT AGENCIES.—Title I of the United States Housing Act

13 of 1937 (42 U.S.C. 1437 et seq.), as amended by sections

14 2404(d) and 2601 of this Act, is amended by adding at the

15 end the following:

16 ‘‘SEC. 29. EXCHANGE OF INFORMATION WITH LAW EN17 FORCEMENT AGENCIES.

18 ‘‘Notwithstanding any other provision of law, each

19 public housing agency that enters into a contract for assist20 ance under section 6 or 8 of this Act with the Secretary

21 shall furnish any Federal, State, or local law enforcement

22 officer, upon the request of the officer, with the current ad23 dress, Social Security number, and photograph (if applica24 ble) of any recipient of assistance under this Act, if the offi25 cer—
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1 ‘‘(1) furnishes the public housing agency with the

2 name of the recipient; and

3 ‘‘(2) notifies the agency that—

4 ‘‘(A) such recipient—

5 ‘‘(i) is fleeing to avoid prosecution, or

6 custody or confinement after conviction,

7 under the laws of the place from which the

8 individual flees, for a crime, or attempt to

9 commit a crime, which is a felony under the

10 laws of the place from which the individual

11 flees, or which, in the case of the State of

12 New Jersey, is a high misdemeanor under

13 the laws of such State; or

14 ‘‘(ii) is violating a condition of proba15 tion or parole imposed under Federal or

16 State law; or

17 ‘‘(iii) has information that is necessary

18 for the officer to conduct the officer’s official

19 duties;

20 ‘‘(B) the location or apprehension of the re21 cipient is within such officer’s official duties;

22 and

23 ‘‘(C) the request is made in the proper exer24 cise of the officer’s official duties.’’.
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1 SEC. 2805. SENSE OF THE SENATE REGARDING ENTERPRISE

2 ZONES.

3 (a) FINDINGS.—The Senate finds that:

4 (1) Many of the Nation’s urban centers are

5 places with high levels of poverty, high rates of wel6 fare dependency, high crime rates, poor schools, and

7 joblessness;

8 (2) Federal tax incentives and regulatory re9 forms can encourage economic growth, job creation

10 and small business formation in many urban centers;

11 (3) Encouraging private sector investment in

12 America’s economically distressed urban and rural

13 areas is essential to breaking the cycle of poverty and

14 the related ills of crime, drug abuse, illiteracy, welfare

15 dependency, and unemployment;

16 (4) The empowerment zones enacted in 1993

17 should be enhanced by providing incentives to in18 crease entrepreneurial growth, capital formation, job

19 creation, educational opportunities, and home owner20 ship in the designated communities and zones.

21 (b) SENSE OF THE SENATE.—Therefore, it is the Sense

22 of the Senate that the Congress should adopt enterprise zone

23 legislation in the One Hundred Fourth Congress, and that

24 such enterprise zone legislation provide the following incen25 tives and provisions:
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1 (1) Federal tax incentives that expand access to

2 capital, increase the formation and expansion of

3 small businesses, and promote commercial revitaliza4 tion;

5 (2) Regulatory reforms that allow localities to

6 petition Federal agencies, subject to the relevant agen7 cies’ approval, for waivers or modifications of regula8 tions to improve job creation, small business forma9 tion and expansion, community development, or eco10 nomic revitalization objectives of the enterprise zones;

11 (3) Home ownership incentives and grants to en12 courage resident management of public housing and

13 home ownership of public housing;

14 (4) School reform pilot projects in certain des15 ignated enterprise zones to provide low-income par16 ents with new and expanded educational options for

17 their children’s elementary and secondary schooling.

18 SEC. 2806. SENSE OF THE SENATE REGARDING THE IN19 ABILITY OF THE NON-CUSTODIAL PARENT TO

20 PAY CHILD SUPPORT.

21 It is the sense of the Senate that—

22 (a) States should diligently continue their efforts

23 to enforce child support payments by the non-custo24 dial parent to the custodial parent, regardless of the
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1 employment status or location of the non-custodial

2 parent; and

3 (b) States are encouraged to pursue pilot pro4 grams in which the parents of a non-adult, non-custo5 dial parent who refuses to or is unable to pay child

6 support must—

7 (1) pay or contribute to the child support

8 owed by the non-custodial parent; or

9 (2) otherwise fulfill all financial obligations

10 and meet all conditions imposed on the non-cus11 todial parent, such as participation in a work

12 program or other related activity.

13 SEC. 2807. ESTABLISHING NATIONAL GOALS TO PREVENT

14 TEENAGE PREGNANCIES.

15 (a) IN GENERAL.—Not later than January 1, 1997,

16 the Secretary of Health and Human Services shall establish

17 and implement a strategy for—

18 (1) preventing out-of-wedlock teenage preg19 nancies, and

20 (2) assuring that at least 25 percent of the com21 munities in the United States have teenage pregnancy

22 prevention programs in place.

23 (b) REPORT.—Not later than June 30, 1998, and an24 nually thereafter, the Secretary shall report to the Congress

25 with respect to the progress that has been made in meeting
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1 the goals described in paragraphs (1) and (2) of subsection

2 (a).

3 SEC. 2808. SENSE OF THE SENATE REGARDING ENFORCE4 MENT OF STATUTORY RAPE LAWS.

5 (a) SENSE OF THE SENATE.—It is the sense of the Sen6 ate that States and local jurisdictions should aggressively

7 enforce statutory rape laws.

8 (b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY

9 RAPE.—Not later than January 1, 1997, the Attorney Gen10 eral shall establish and implement a program that—

11 (1) studies the linkage between statutory rape

12 and teenage pregnancy, particularly by predatory

13 older men committing repeat offensives; and

14 (2) educates State and local criminal law en15 forcement officials on the prevention and prosecution

16 of statutory rape, focusing in particular on the com17 mission of statutory rape by predatory older men

18 committing repeat offensives, and any links to teenage

19 pregnancy.

20 (c) VIOLENCE AGAINST WOMEN INITIATIVE.—The At21 torney General shall ensure that the Department of Justice’s

22 Violence Against Women initiative addresses the issue of

23 statutory rape, particularly the commission of statutory

24 rape by predatory older men committing repeat offensives.
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1 SEC. 2809. PROVISIONS TO ENCOURAGE ELECTRONIC BEN2 EFIT TRANSFER SYSTEMS.

3 Section 904 of the Electronic Fund Transfer Act (15

4 U.S.C. 1693b) is amended—

5 (1) by striking ‘‘(d) In the event’’ and inserting

6 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS OTHER

7 THAN CERTAIN FINANCIAL INSTITUTIONS.—

8 ‘‘(1) IN GENERAL.—In the event’’; and

9 (2) by adding at the end the following new para10 graph:

11 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC12 TRONIC BENEFIT TRANSFER PROGRAMS.—

13 ‘‘(A) EXEMPTION GENERALLY.—The disclo14 sures, protections, responsibilities, and remedies

15 established under this title, and any regulation

16 prescribed or order issued by the Board in ac17 cordance with this title, shall not apply to any

18 electronic benefit transfer program established

19 under State or local law or administered by a

20 State or local government.

21 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT INTO

22 RECIPIENT’S ACCOUNT.—Subparagraph (A) shall

23 not apply with respect to any electronic funds

24 transfer under an electronic benefit transfer pro25 gram for deposits directly into a consumer ac26 count held by the recipient of the benefit.
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1 ‘‘(C) RULE OF CONSTRUCTION.—No provi2 sion of this paragraph may be construed as—

3 ‘‘(i) affecting or altering the protec4 tions otherwise applicable with respect to

5 benefits established by Federal, State, or

6 local law; or

7 ‘‘(ii) otherwise superseding the appli8 cation of any State or local law.

9 ‘‘(D) ELECTRONIC BENEFIT TRANSFER PRO10 GRAM DEFINED.—For purposes of this para11 graph, the term ‘electronic benefit transfer pro12 gram’—

13 ‘‘(i) means a program under which a

14 government agency distributes needs-tested

15 benefits by establishing accounts to be

16 accessed by recipients electronically, such as

17 through automated teller machines, or

18 point-of-sale terminals; and

19 ‘‘(ii) does not include employment-re20 lated payments, including salaries and pen21 sion, retirement, or unemployment benefits

22 established by Federal, State, or local gov23 ernments.’’.
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1 SEC. 2810. RULES RELATING TO DENIAL OF EARNED IN2 COME CREDIT ON BASIS OF DISQUALIFIED IN3 COME.

4 (a) REDUCTION IN DISQUALIFIED INCOME THRESH5 OLD.—

6 (1) IN GENERAL.—Paragraph (1) of section 32(i)

7 of the Internal Revenue Code of 1986 (relating to de8 nial of credit for individuals having excessive invest9 ment income) is amended by striking ‘‘$2,350’’ and

10 inserting ‘‘$2,200’’.

11 (2) ADJUSTMENT FOR INFLATION.—Subsection

12 (j) of section 32 of such Code is amended to read as

13 follows:

14 ‘‘(j) INFLATION ADJUSTMENTS.—

15 ‘‘(1) IN GENERAL.—In the case of any taxable

16 year beginning after 1996, each of the dollar amounts

17 in subsections (b)(2)(A) and (i)(1) shall be increased

18 by an amount equal to—

19 ‘‘(A) such dollar amount, multiplied by

20 ‘‘(B) the cost-of-living adjustment deter21 mined under section 1(f)(3) for the calendar year

22 in which the taxable year begins, determined by

23 substituting ‘calendar year 1995’ for ‘calendar

24 year 1992’ in subparagraph (B) thereof.

25 ‘‘(2) ROUNDING.—
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1 ‘‘(A) IN GENERAL.—If any dollar amount

2 in subsection (b)(2), after being increased under

3 paragraph (1), is not a multiple of $10, such

4 dollar amount shall be rounded to the nearest

5 multiple of $10.

6 ‘‘(B) DISQUALIFIED INCOME THRESHOLD

7 AMOUNT.—If the dollar amount in subsection

8 (i)(1), after being increased under paragraph

9 (1), is not a multiple of $50, such amount shall

10 be rounded to the next lowest multiple of $50.’’.

11 (3) CONFORMING AMENDMENTS.—The table con12 tained in section 32(b)(2)(A) of the Internal Revenue

13 Code of 1986 is amended—

14 (1) by striking ‘‘$6,000’’ and inserting ‘‘$6,330’’,

15 (2) by striking ‘‘$11,000’’ both places it appears

16 and inserting ‘‘$11,610’’,

17 (3) by striking ‘‘$8,425’’ and inserting ‘‘$8,890’’,

18 (4) by striking ‘‘$4,000’’ and inserting ‘‘$4,220’’,

19 and

20 (5) by striking ‘‘$5,000’’ and inserting ‘‘$5,280’’.

21 (b) DEFINITION OF DISQUALIFIED INCOME.—Para22 graph (2) of section 32(i) of such Code (defining disquali23 fied income) is amended by striking ‘‘and’’ at the end of

24 subparagraph (B), by striking the period at the end of sub-
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1 paragraph (C) and inserting a comma, and by adding at

2 the end the following new subparagraphs:

3 ‘‘(D) the capital gain net income (as de4 fined in section 1222) of the taxpayer for such

5 taxable year, and

6 ‘‘(E) the excess (if any) of—

7 ‘‘(i) the aggregate income from all pas8 sive activities for the taxable year (deter9 mined without regard to any amount in10 cluded in earned income under subsection

11 (c)(2) or described in a preceding subpara12 graph), over

13 ‘‘(ii) the aggregate losses from all pas14 sive activities for the taxable year (as so de15 termined).

16 For purposes of subparagraph (E), the term ‘passive

17 activity’ has the meaning given such term by section

18 469.’’.

19 (c) EFFECTIVE DATES.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall

22 apply to taxable years beginning after December 31,

23 1995.

24 (2) ADVANCE PAYMENT INDIVIDUALS.—In the

25 case of any individual who on or before June 26,
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1 1996, has in effect an earned income eligibility cer2 tificate for the individual’s taxable year beginning in

3 1996, the amendments made by this section shall

4 apply to taxable years beginning after December 31,

5 1996.

6 SEC. 2811. MODIFICATION OF ADJUSTED GROSS INCOME

7 DEFINITION FOR EARNED INCOME CREDIT.

8 (a) IN GENERAL.—Subsections (a)(2)(B), (c)(1)(C),

9 and (f)(2)(B) of section 32 of the Internal Revenue Code

10 of 1986 are each amended by striking ‘‘adjusted gross in11 come’’ each place it appears and inserting ‘‘modified ad12 justed gross income’’.

13 (b) MODIFIED ADJUSTED GROSS INCOME DEFINED.—

14 Section 32(c) of such Code (relating to definitions and spe15 cial rules) is amended by adding at the end the following

16 new paragraph:

17 ‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—

18 ‘‘(A) IN GENERAL.—The term ‘modified ad19 justed gross income’ means adjusted gross in20 come—

21 ‘‘(i) increased by the sum of the

22 amounts described in subparagraph (B),

23 and

24 ‘‘(ii) determined without regard to the

25 amounts described in subparagraph (C).
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1 ‘‘(B) NONTAXABLE INCOME TAKEN INTO AC2 COUNT.—Amounts described in this subpara3 graph are—

4 ‘‘(i) interest received or accrued during

5 the taxable year which is exempt from tax

6 imposed by this chapter, and

7 ‘‘(ii) amounts received as a pension or

8 annuity, and any distributions or payments

9 received from an individual retirement

10 plan, by the taxpayer during the taxable

11 year to the extent not included in gross in12 come.

13 Clause (ii) shall not include any amount which

14 is not includible in gross income by reason of

15 section 402(c), 403(a)(4), 403(b)(8), 408(d) (3),

16 (4), or (5), or 457(e)(10).

17 ‘‘(C) CERTAIN AMOUNTS DISREGARDED.—

18 An amount is described in this subparagraph if

19 it is—

20 ‘‘(i) the amount of losses from sales or

21 exchanges of capital assets in excess of gains

22 from such sales or exchanges to the extent

23 such amount does not exceed the amount

24 under section 1211(b)(1),
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1 ‘‘(ii) the net loss from estates and

2 trusts,

3 ‘‘(iii) the excess (if any) of amounts

4 described in subsection (i)(2)(C)(ii) over the

5 amounts described in subsection (i)(2)(C)(i)

6 (relating to nonbusiness rents and royal7 ties), and

8 ‘‘(iv) the net loss from the carrying on

9 of trades or businesses, computed separately

10 with respect to—

11 ‘‘(I) trades or businesses (other

12 than farming) conducted as sole pro13 prietorships,

14 ‘‘(II) trades or businesses of farm15 ing conducted as sole proprietorships,

16 and

17 ‘‘(III) other trades or businesses.

18 For purposes of clause (iv), there shall not be

19 taken into account items which are attributable

20 to a trade or business which consists of the per21 formance of services by the taxpayer as an em22 ployee.’’.

23 (c) EFFECTIVE DATES.—

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section shall
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1 apply to taxable years beginning after December 31,

2 1995.

3 (2) ADVANCE PAYMENT INDIVIDUALS.—In the

4 case of any individual who on or before June 26,

5 1996, has in effect an earned income eligibility cer6 tificate for the individual’s taxable year beginning in

7 1996, the amendments made by this section shall

8 apply to taxable years beginning after December 31,

9 1996.

10 SEC. 2812. SUSPENSION OF INFLATION ADJUSTMENTS FOR

11 INDIVIDUALS WITH NO QUALIFYING CHIL12 DREN.

13 (a) IN GENERAL.—Subsection (j) of section 32 of the

14 Internal Revenue Code of 1986, as amended by section

15 2911(a)(2) of this Act, is amended by adding at the end

16 the following new paragraph:

17 ‘‘(3) NO ADJUSTMENT FOR INDIVIDUALS WITH NO

18 QUALIFYING CHILDREN.—This subsection shall not

19 apply to each dollar amount contained in subsection

20 (b)(2)(A) with respect to individuals with no qualify21 ing children.’’.

22 (b) EFFECTIVE DATE.—The amendment made by this

23 section shall apply to taxable years beginning after Decem24 ber 31, 1996.
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1 SEC. 2813. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

2 (a) IN GENERAL.—Subpart C of part IV of subchapter

3 A of chapter 1 of the Internal Revenue Code of 1986 (relat4 ing to refundable credits) is amended by redesignating sec5 tion 35 as section 36 and by inserting after section 34 the

6 following new section:

7 ‘‘SEC. 35. ADOPTION EXPENSES.

8 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi9 vidual, there shall be allowed as a credit against the tax

10 imposed by this subtitle for the taxable year the amount

11 of the qualified adoption expenses paid or incurred by the

12 taxpayer during such taxable year.

13 ‘‘(b) LIMITATIONS.—

14 ‘‘(1) DOLLAR LIMITATION.—The aggregate

15 amount of qualified adoption expenses which may be

16 taken into account under subsection (a) with respect

17 to the adoption of a child shall not exceed $5,000.

18 ‘‘(2) INCOME LIMITATION.—The amount allow19 able as a credit under subsection (a) for any taxable

20 year shall be reduced (but not below zero) by an

21 amount which bears the same ratio to the amount so

22 allowable (determined without regard to this para23 graph but with regard to paragraph (1)) as—

24 ‘‘(A) the amount (if any) by which the tax25 payer’s adjusted gross income exceeds $60,000,

26 bears to
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1 ‘‘(B) $40,000.

2 ‘‘(3) DENIAL OF DOUBLE BENEFIT.—

3 ‘‘(A) IN GENERAL.—No credit shall be al4 lowed under subsection (a) for any expense for

5 which a deduction or credit is allowable under

6 any other provision of this chapter.

7 ‘‘(B) GRANTS.—No credit shall be allowed

8 under subsection (a) for any expense to the ex9 tent that funds for such expense are received

10 under any Federal, State, or local program.

11 ‘‘(c) QUALIFIED ADOPTION EXPENSES.—For purposes

12 of this section, the term ‘qualified adoption expenses’ means

13 reasonable and necessary adoption fees, court costs, attorney

14 fees, and other expenses which are directly related to the

15 legal and finalized adoption of a child by the taxpayer and

16 which are not incurred in violation of State or Federal law

17 or in carrying out any surrogate parenting arrangement.

18 The term ‘qualified adoption expenses’ shall not include any

19 expenses in connection with the adoption by an individual

20 of a child who is the child of such individual’s spouse.

21 ‘‘(d) MARRIED COUPLES MUST FILE JOINT RE22 TURNS.—Rules similar to the rules of paragraphs (2), (3),

23 and (4) of section 21(e) shall apply for purposes of this sec24 tion.’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Paragraph (2) of section 1324(b) of title 31,

2 United States Code, is amended by inserting before

3 the period ‘‘, or from section 35 of such Code’’.

4 (2) The table of sections for subpart C of part IV

5 of subchapter A of chapter 1 of the Internal Revenue

6 Code of 1986 is amended by striking the last item and

7 inserting the following:

‘‘Sec. 35. Adoption expenses.

‘‘Sec. 36. Overpayments of tax.’’.

8 (c) EFFECTIVE DATE.—The amendments made by this

9 section shall apply to taxable years beginning after Decem10 ber 31, 1996.

11 SEC. 2814. EXCLUSION OF ADOPTION ASSISTANCE.

12 (a) IN GENERAL.—Part III of subchapter B of chapter

13 1 of the Internal Revenue Code of 1986 (relating to items

14 specifically excluded from gross income) is amended by re15 designating section 137 as section 138 and by inserting

16 after section 136 the following new section:

17 ‘‘SEC. 137. ADOPTION ASSISTANCE.

18 ‘‘(a) IN GENERAL.—Gross income of an employee does

19 not include employee adoption assistance benefits, or mili20 tary adoption assistance benefits, received by the employee

21 with respect to the employee’s adoption of a child.

22 ‘‘(b) DEFINITIONS.—For purposes of this section—

23 ‘‘(1) EMPLOYEE ADOPTION ASSISTANCE BENE24 FITS.—The term ‘employee adoption assistance bene-
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1 fits’ means payment by an employer of qualified

2 adoption expenses with respect to an employee’s adop3 tion of a child, or reimbursement by the employer of

4 such qualified adoption expenses paid or incurred by

5 the employee in the taxable year.

6 ‘‘(2) EMPLOYER AND EMPLOYEE.—The terms

7 ‘employer’ and ‘employee’ have the respective mean8 ings given such terms by section 127(c).

9 ‘‘(3) MILITARY ADOPTION ASSISTANCE BENE10 FITS.—The term ‘military adoption assistance bene11 fits’ means benefits provided under section 1052 of

12 title 10, United States Code, or section 514 of title 14,

13 United States Code.

14 ‘‘(4) QUALIFIED ADOPTION EXPENSES.—The

15 term ‘qualified adoption expenses’ means reasonable

16 and necessary adoption fees, court costs, attorney fees,

17 and other expenses which are directly related to the

18 legal and finalized adoption of a child by the tax19 payer and which are not incurred in violation of

20 State or Federal law or in carrying out any surrogate

21 parenting arrangement. The term ‘qualified adoption

22 expenses’ shall not include any expenses in connection

23 with the adoption by an individual of a child who is

24 the child of such individual’s spouse.
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1 ‘‘(c) COORDINATION WITH OTHER PROVISIONS.—The

2 Secretary shall issue regulations to coordinate the applica3 tion of this section with the application of any other provi4 sion of this title which allows a credit or deduction with

5 respect to qualified adoption expenses.’’.

6 (b) CLERICAL AMENDMENT.—The table of sections for

7 part III of subchapter B of chapter 1 of such Code is amend8 ed by striking the item relating to section 137 and inserting

9 the following new items:

‘‘Sec. 137. Adoption assistance.

‘‘Sec. 138. Cross references to other Acts.’’.

10 (c) EFFECTIVE DATE.—The amendments made this

11 section shall apply to taxable years beginning after Decem12 ber 31, 1996.

13 SEC. 2815. WITHDRAWAL FROM IRA FOR ADOPTION EX14 PENSES.

15 (a) IN GENERAL.—Subsection (d) of section 408 of the

16 Internal Revenue Code of 1986 (relating to tax treatment

17 of distributions) is amended by adding at the end the fol18 lowing new paragraph:

19 ‘‘(8) QUALIFIED ADOPTION EXPENSES.—

20 ‘‘(A) IN GENERAL.—Any amount which is

21 paid or distributed out of an individual retire22 ment plan of the taxpayer, and which would (but

23 for this paragraph) be includible in gross in-
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1 come, shall be excluded from gross income to the

2 extent that—

3 ‘‘(i) such amount exceeds the sum of—

4 ‘‘(I) the amount excludable under

5 section 137, and

6 ‘‘(II) any amount allowable as a

7 credit under this title with respect to

8 qualified adoption expenses; and

9 ‘‘(ii) such amount does not exceed the

10 qualified adoption expenses paid or in11 curred by the taxpayer during the taxable

12 year.

13 ‘‘(B) QUALIFIED ADOPTION EXPENSES.—

14 For purposes of this paragraph, the term ‘quali15 fied adoption expenses’ has the meaning given

16 such term by section 137.’’.

17 (b) EFFECTIVE DATE.—The amendment made by this

18 section shall apply to taxable years beginning after Decem19 ber 31, 1996.

Attest:

Secretary.
104TH CONGRESS

2D SESSION H. R. 3734

AMENDMENT
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