Calendar No. 125

104TH CONGRESS

1ST SESSION H. R. 4

[Report No. 104–96]

AN ACT

To restore the American family, reduce illegitimacy,

pendence.control welfare spending and reduce welfare deJUNE 9 (legislative day, JUNE 5), 1995

Reported with an amendment and an amendment to the

title
II

Calendar No. 125

104TH CONGRESS

1ST SESSION H. R. 4

[Report No. 104–96]

IN THE SENATE OF THE UNITED STATES

MARCH 29 (legislative day, MARCH 27), 1995

Received; read twice and referred to the Committee on Finance

JUNE 9 (legislative day, JUNE 5), 1995

Reported under authority of the Senate on June 8 (legislative day, June 5),

1995, by Mr. PACKWOOD, with an amendment and an amendment to the title

[Strike out all after the enacting clause and insert the part printed in italic]

AN ACT

To restore the American family, reduce illegitimacy, control

welfare spending and reduce welfare dependence.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Personal Responsibility

5 Act of 1995’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.
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Sec. 2. Table of contents.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 100. Sense of the Congress.

Sec. 101. Block grants to States.

Sec. 102. Report on data processing.

Sec. 103. Transfers.

Sec. 104. Conforming amendments to the Social Security Act.

Sec. 105. Conforming amendments to other laws.

Sec. 106. Continued application of current standards under medicaid program.

Sec. 107. Effective date.

TITLE II—CHILD PROTECTION BLOCK GRANT PROGRAM

Sec. 201. Establishment of program.

Sec. 202. Conforming amendments.

Sec. 203. Continued application of current standards under medicaid program.

Sec. 204. Effective date.

Sec. 205. Sense of the Congress regarding timely adoption of children.

TITLE III—BLOCK GRANTS FOR CHILD CARE AND FOR

NUTRITION ASSISTANCE

Subtitle A—Child Care Block Grants

Sec. 301. Amendments to the Child Care and Development Block Grant Act of

1990.

Sec. 302. Repeal of child care assistance authorized by Acts other than the Social Security Act.

Subtitle B—Family and School-Based Nutrition Block Grants

CHAPTER 1—FAMILY NUTRITION BLOCK GRANT PROGRAM

Sec. 321. Amendment to Child Nutrition Act of 1966.

CHAPTER 2—SCHOOL-BASED NUTRITION BLOCK GRANT PROGRAM

Sec. 341. Amendment to National School Lunch Act.

CHAPTER 3—MISCELLANEOUS PROVISIONS

Sec. 361. Repealers.

Subtitle C—Other Repealers and Conforming Amendments

Sec. 371. Amendments to laws relating to child protection block grant.

Subtitle D—Related Provisions

Sec. 381. Requirement that data relating to the incidence of poverty in the

United States be published at least every 2 years.

Sec. 382. Data on program participation and outcomes.

Subtitle E—General Effective Date; Preservation of Actions, Obligations, and

Rights

Sec. 391. Effective date.
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Sec. 392. Application of amendments and repealers.

TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR

ALIENS

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

Subtitle A—Eligibility for Federal Benefits Programs

Sec. 401. Ineligibility of illegal aliens for certain public benefits programs.

Sec. 402. Ineligibility of nonimmigrants for certain public benefits programs.

Sec. 403. Limited eligibility of immigrants for 5 specified Federal public benefits programs.

Sec. 404. Notification.

Subtitle B—Eligibility for State and Local Public Benefits Programs

Sec. 411. Ineligibility of illegal aliens for State and local public benefits programs.

Sec. 412. Ineligibility of nonimmigrants for State and local public benefits programs.

Sec. 413. State authority to limit eligibility of immigrants for State and local

means-tested public benefits programs.

Subtitle C—Attribution of Income and Affidavits of Support

Sec. 421. Attribution of sponsor’s income and resources to family-sponsored immigrants.

Sec. 422. Requirements for sponsor’s affidavit of support.

Subtitle D—General Provisions

Sec. 431. Definitions.

Sec. 432. Construction.

Subtitle E—Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

TITLE V—FOOD STAMP REFORM AND COMMODITY DISTRIBUTION

Sec. 501. Short title.

Subtitle A—Commodity Distribution Provisions

Sec. 511. Short title.

Sec. 512. Availability of commodities.

Sec. 513. State, local and private supplementation of commodities.

Sec. 514. State plan.

Sec. 515. Allocation of commodities to States.

Sec. 516. Priority system for State distribution of commodities.

Sec. 517. Initial processing costs.

Sec. 518. Assurances; anticipated use.

Sec. 519. Authorization of appropriations.

Sec. 520. Commodity supplemental food program.

Sec. 521. Commodities not income.

Sec. 522. Prohibition against certain State charges.

Sec. 523. Definitions.

Sec. 524. Regulations.
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Sec. 525. Finality of determinations.

Sec. 526. Sale of commodities prohibited.

Sec. 527. Settlement and adjustment of claims.

Sec. 528. Repealers; amendments.

Subtitle B—Simplification and Reform of Food Stamp Program

Sec. 531. Short title.

CHAPTER 1—SIMPLIFIED FOOD STAMP PROGRAM AND STATE ASSISTANCE

FOR NEEDY FAMILIES

Sec. 541. Establishment of simplified food stamp program.

Sec. 542. Simplified food stamp program.

Sec. 543. Conforming amendments.

CHAPTER 2—FOOD STAMP PROGRAM

Sec. 551. Thrifty food plan.

Sec. 552. Income deductions and energy assistance.

Sec. 553. Vehicle allowance.

Sec. 554. Work requirements.

Sec. 555. Comparable treatment of disqualified individuals.

Sec. 556. Encourage electronic benefit transfer systems.

Sec. 557. Value of minimum allotment.

Sec. 558. Initial month benefit determination.

Sec. 559. Improving food stamp program management.

Sec. 560. Work supplementation or support program.

Sec. 561. Obligations and allotments.

CHAPTER 3—PROGRAM INTEGRITY

Sec. 571. Authority to establish authorization periods.

Sec. 572. Condition precedent for approval of retail food stores and wholesale

food concerns.

Sec. 573. Waiting period for retail food stores and wholesale food concerns that

are denied approval to accept coupons.

Sec. 574. Disqualification of retail food stores and wholesale food concerns.

Sec. 575. Authority to suspend stores violating program requirements pending

administrative and judicial review.

Sec. 576. Criminal forfeiture.

Sec. 577. Expanded definition of ‘‘coupon’’.

Sec. 578. Doubled penalties for violating food stamp program requirements.

Sec. 579. Disqualification of convicted individuals.

Sec. 580. Claims collection.

Sec. 581. Denial of food stamp benefits for 10 years to individuals found to

have fraudulently misrepresented residence in order to obtain

benefits simultaneously in 2 or more States.

Sec. 582. Disqualification relating to child support arrears.

Sec. 583. Elimination of food stamp benefits with respect to fugitive felons and

probation and parole violators.

Subtitle C—Effective Dates and Miscellaneous Provisions

Sec. 591. Effective dates.

Sec. 592. Sense of the Congress.

Sec. 593. Deficit reduction.
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TITLE VI—SUPPLEMENTAL SECURITY INCOME

Sec. 601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics.

Sec. 602. Supplemental security income benefits for disabled children.

Sec. 603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability.

Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, and

Guam under programs of aid to the aged, blind, or disabled.

Sec. 605. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Sec. 606. 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. 607. Denial of SSI benefits for fugitive felons and probation and parole

violators.

TITLE VII—CHILD SUPPORT

Sec. 700. References.

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 701. State obligation to provide child support enforcement services.

Sec. 702. Distribution of child support collections.

Sec. 703. Privacy safeguards.

Subtitle B—Locate and Case Tracking

Sec. 711. State case registry.

Sec. 712. Collection and disbursement of support payments.

Sec. 713. State directory of new hires.

Sec. 714. Amendments concerning income withholding.

Sec. 715. Locator information from interstate networks.

Sec. 716. Expansion of the Federal Parent Locator Service.

Sec. 717. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 721. Adoption of uniform State laws.

Sec. 722. Improvements to full faith and credit for child support orders.

Sec. 723. Administrative enforcement in interstate cases.

Sec. 724. Use of forms in interstate enforcement.

Sec. 725. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 731. State laws concerning paternity establishment.

Sec. 732. Outreach for voluntary paternity establishment.

Sec. 733. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 741. Federal matching payments.

Sec. 742. Performance-based incentives and penalties.

Sec. 743. Federal and State reviews and audits.
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Sec. 744. Required reporting procedures.

Sec. 745. Automated data processing requirements.

Sec. 746. Technical assistance.

Sec. 747. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 751. Simplified process for review and adjustment of child support orders.

Sec. 752. Furnishing consumer reports for certain purposes relating to child

support.

Subtitle G—Enforcement of Support Orders

Sec. 761. Federal income tax refund offset.

Sec. 762. Authority to collect support from Federal employees.

Sec. 763. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 764. Voiding of fraudulent transfers.

Sec. 765. Sense of the Congress that States should suspend drivers’, business,

and occupational licenses of persons owing past-due child support.

Sec. 766. Work requirement for persons owing past-due child support.

Sec. 767. Definition of support order.

Sec. 768. Liens.

Sec. 769. State law authorizing suspension of licenses.

Subtitle H—Medical Support

Sec. 771. Technical correction to ERISA definition of medical child support

order.

Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential

Parents

Sec. 781. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 791. Effective dates.

TITLE VIII—MISCELLANEOUS PROVISIONS

Sec. 801. Scoring.

Sec. 802. Provisions to encourage electronic benefit transfer systems.

1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE

3 FOR NEEDY FAMILIES

4 SEC. 100. SENSE OF THE CONGRESS.

5 It is the sense of the Congress that—
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1 (1) marriage is the foundation of a successful

2 society;

3 (2) marriage is an essential social institution

4 which promotes the interests of children and society

5 at large;

6 (3) the negative consequences of an out-of-wed7 lock birth on the child, the mother, and society are

8 well documented as follows:

9 (A) the illegitimacy rate among black

10 Americans was 26 percent in 1965, but today

11 the rate is 68 percent and climbing;

12 (B) the illegitimacy rate among white

13 Americans has risen tenfold, from 2.29 percent

14 in 1960 to 22 percent today;

15 (C) the total of all out-of-wedlock births

16 between 1970 and 1991 has risen from 10 per17 cent to 30 percent and if the current trend con18 tinues, 50 percent of all births by the year 2015

19 will be out-of-wedlock;

(D) 3 20 ⁄4 of illegitimate births among whites

21 are to women with a high school education or

22 less;

23 (E) the 1-parent family is 6 times more

24 likely to be poor than the 2-parent family;
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1 (F) children born into families receiving

2 welfare assistance are 3 times more likely than

3 children not born into families receiving welfare

4 to be on welfare when they reach adulthood;

5 (G) teenage single parent mothering is the

6 single biggest contributor to low birth weight

7 babies;

8 (H) children born out-of-wedlock are more

9 likely to experience low verbal cognitive attain10 ment, child abuse, and neglect;

11 (I) young people from single parent or

12 stepparent families are 2 to 3 times more likely

13 to have emotional or behavioral problems than

14 those from intact families;

15 (J) young white women who were raised in

16 a single parent family are more than twice as

17 likely to have children out-of-wedlock and to be18 come parents as teenagers, and almost twice as

19 likely to have their marriages end in divorce, as

20 are children from 2-parent families;

21 (K) the younger the single parent mother,

22 the less likely she is to finish high school;

23 (L) young women who have children before

24 finishing high school are more likely to receive

25 welfare assistance for a longer period of time;
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1 (M) between 1985 and 1990, the public

2 cost of births to teenage mothers under the aid

3 to families with dependent children program,

4 the food stamp program, and the medicaid pro5 gram has been estimated at $120,000,000,000;

6 (N) the absence of a father in the life of

7 a child has a negative effect on school perform8 ance and peer adjustment;

9 (O) the likelihood that a young black man

10 will engage in criminal activities doubles if he

11 is raised without a father and triples if he lives

12 in a neighborhood with a high concentration of

13 single parent families; and

14 (P) the greater the incidence of single par15 ent families in a neighborhood, the higher the

16 incidence of violent crime and burglary; and

17 (4) in light of this demonstration of the crisis

18 in our Nation, the reduction of out-of-wedlock births

19 is an important government interest and the policy

20 contained in provisions of this title address the

21 crisis.

22 SEC. 101. BLOCK GRANTS TO STATES.

23 Title IV of the Social Security Act (42 U.S.C. 601

24 et seq.) is amended by striking part A, except sections

25 403(h) and 417, and inserting 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 ‘‘The purpose of this part is to increase the flexibility

5 of States in operating a program designed to—

6 ‘‘(1) provide assistance to needy families so that

7 the children in such families may be cared for in

8 their homes or in the homes of relatives;

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

10 government benefits by promoting work and mar11 riage; and

12 ‘‘(3) discourage out-of-wedlock births.

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

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

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

16 that, during the 3-year period immediately preceding the

17 fiscal year, has submitted to the Secretary a plan that in18 cludes the following:

19 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO20 GRAM.—A written document that outlines how the

21 State intends to do the following:

22 ‘‘(A) Conduct a program designed to—

23 ‘‘(i) provide cash benefits to needy

24 families with children; and

25 ‘‘(ii) provide parents of children in

26 such families with work experience, assist-
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1 ance in finding employment, and other

2 work preparation activities and support

3 services that the State considers appro4 priate to enable such families to leave the

5 program and become self-sufficient.

6 ‘‘(B) Require at least 1 parent of a child

7 in any family which has received benefits for

8 more than 24 months (whether or not consecu9 tive) under the program to engage in work ac10 tivities (as defined by the State).

11 ‘‘(C) Ensure that parents receiving assist12 ance under the program engage in work activi13 ties in accordance with section 404.

14 ‘‘(D) Treat interstate immigrants, if fami15 lies including such immigrants are to be treated

16 differently than other families.

17 ‘‘(E) Take such reasonable steps as the

18 State deems necessary to restrict the use and

19 disclosure of information about individuals and

20 families receiving benefits under the program.

21 ‘‘(F) Take actions to reduce the incidence

22 of out-of-wedlock pregnancies, which may in23 clude providing unmarried mothers and unmar24 ried fathers with services which will help

25 them—
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1 ‘‘(i) avoid subsequent pregnancies;

2 and

3 ‘‘(ii) provide adequate care to their

4 children.

5 ‘‘(G) Reduce teenage pregnancy, including

6 (at the option of the State) through the provi7 sion of education and counseling to male and

8 female teenagers.

9 ‘‘(2) CERTIFICATION THAT THE STATE WILL

10 OPERATE A CHILD SUPPORT ENFORCEMENT PRO11 GRAM.—A certification by the Governor of the State

12 that, during the fiscal year, the State will operate a

13 child support enforcement program under the State

14 plan approved under part D, in a manner that com15 plies with the requirements of such part.

16 ‘‘(3) CERTIFICATION THAT THE STATE WILL

17 OPERATE A CHILD PROTECTION PROGRAM.—A cer18 tification by the Governor of the State that, during

19 the fiscal year, the State will operate a child protec20 tion program in accordance with part B, which in21 cludes a foster care program and an adoption assist22 ance program.

23 ‘‘(b) DETERMINATIONS.—The Secretary shall deter24 mine whether a plan submitted pursuant to subsection (a)

25 contains the material required by subsection (a).
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1 ‘‘SEC. 403. PAYMENTS TO STATES.

2 ‘‘(a) ENTITLEMENTS.—

3 ‘‘(1) GRANTS FOR FAMILY ASSISTANCE.—

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

5 shall be entitled to receive from the Secretary

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

7 1999, and 2000 a grant in an amount equal to

8 the State family assistance grant for the fiscal

9 year.

10 ‘‘(B) GRANT INCREASED TO REWARD

11 STATES THAT REDUCE OUT-OF-WEDLOCK

12 BIRTHS.—The amount of the grant payable to

13 a State under subparagraph (A) for fiscal year

14 1998 or any succeeding fiscal year shall be in15 creased by—

16 ‘‘(i) 5 percent if the illegitimacy ratio

17 of the State for the fiscal year is at least

18 1 percentage point lower than the illegit19 imacy ratio of the State for fiscal year

20 1995; or

21 ‘‘(ii) 10 percent if the illegitimacy

22 ratio of the State for the fiscal year is at

23 least 2 percentage points lower than the il24 legitimacy ratio of the State for fiscal year

25 1995.
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1 ‘‘(2) SUPPLEMENTAL GRANTS TO ADJUST FOR

2 POPULATION INCREASES.—In addition to any grant

3 under paragraph (1), each eligible State shall be en4 titled to receive from the Secretary for each of fiscal

5 years 1997, 1998, 1999, and 2000, a grant in an

6 amount equal to the State proportion of

7 $100,000,000.

8 ‘‘(b) DEFINITIONS.—As used in this section:

9 ‘‘(1) STATE FAMILY ASSISTANCE GRANT.—

10 ‘‘(A) IN GENERAL.—The term ‘State fam11 ily assistance grant’ means, with respect to a

12 fiscal year, the provisional State family assist13 ance grant adjusted in accordance with sub14 paragraph (C).

15 ‘‘(B) PROVISIONAL STATE FAMILY ASSIST16 ANCE GRANT.—The term ‘provisional State

17 family assistance grant’ means—

18 ‘‘(i) the greater of—

‘‘(I) 1 19 ⁄3 of the total amount of ob20 ligations to the State under section

21 403 of this title (as in effect before

22 October 1, 1995) for fiscal years

23 1992, 1993, and 1994 (other than

24 with respect to amounts expended for

25 child care under subsection (g) or (i)
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1 of section 402 of this title (as so in ef2 fect)); or

3 ‘‘(II) the total amount of obliga4 tions to the State under such section

5 403 for fiscal year 1994 (other than

6 with respect to amounts expended for

7 child care under subsection (g) or (i)

8 of section 402 of this title (as so in ef9 fect)); multiplied by

10 ‘‘(ii)(I) the total amount of outlays to

11 all of the States under such section 403

12 for fiscal year 1994 (other than with re13 spect to amounts expended for child care

14 under subsection (g) or (i) of section 402

15 of this title (as so in effect)); divided by

16 ‘‘(II) the total amount of obligations

17 to all of the States under such section 403

18 for fiscal year 1994 (other than with re19 spect to amounts expended for child care

20 under subsection (g) or (i) of section 402

21 of this title (as so in effect)).

22 ‘‘(C) PROPORTIONAL ADJUSTMENT.—The

23 Secretary shall determine the percentage (if

24 any) by which each provisional State family as25 sistance grant must be reduced or increased to
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1 ensure that the sum of such grants equals

2 $15,390,296,000, and shall adjust each provi3 sional State family assistance grant by the per4 centage so determined.

5 ‘‘(2) ILLEGITIMACY RATIO.—The term ‘illegit6 imacy ratio’ means, with respect to a State and a

7 fiscal year—

8 ‘‘(A) the sum of—

9 ‘‘(i) the number of out-of-wedlock

10 births that occurred in the State during

11 the most recent fiscal year for which such

12 information is available; and

13 ‘‘(ii) the amount (if any) by which the

14 number of abortions performed in the

15 State during the most recent fiscal year for

16 which such information is available exceeds

17 the number of abortions performed in the

18 State during the fiscal year that imme19 diately precedes such most recent fiscal

20 year; divided by

21 ‘‘(B) the number of births that occurred in

22 the State during the most recent fiscal year for

23 which such information is available.

24 ‘‘(3) STATE PROPORTION.—The term ‘State

25 proportion’ means, with respect to a fiscal year, the
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1 amount that bears the same ratio to the amount

2 specified in subsection (a)(2) as the increase (if any)

3 in the population of the State for the most recent

4 fiscal year for which such information is available

5 over the population of the State for the fiscal year

6 that immediately precedes such most recent fiscal

7 year bears to the total increase in the population of

8 all States which have such an increase in population,

9 as determined by the Secretary using data from the

10 Bureau of the Census.

11 ‘‘(4) FISCAL YEAR.—The term ‘fiscal year’

12 means any 12-month period ending on September 30

13 of a calendar year.

14 ‘‘(5) STATE.—The term ‘State’ includes the

15 several States, the District of Columbia, the Com16 monwealth of Puerto Rico, the United States Virgin

17 Islands, Guam, and American Samoa.

18 ‘‘(c) USE OF GRANT.—

19 ‘‘(1) IN GENERAL.—A State to which a grant

20 is made under this section may use the grant in any

21 manner that is reasonably calculated to accomplish

22 the purpose of this part, subject to this part, includ23 ing to provide noncash assistance to mothers who

24 have not attained 18 years of age and their children

25 and to provide low income households with assist-
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1 ance in meeting home heating and cooling costs.

2 Notwithstanding any other provision of this Act, a

3 State to which a grant is made under section 403

4 may not use any part of the grant to provide medi5 cal services.

6 ‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI7 GRANTS UNDER RULES OF FORMER STATE.—A State

8 to which a grant is made under this section may

9 apply to a family the rules of the program operated

10 under this part of another State if the family has

11 moved to the State from the other State and has re12 sided in the State for less than 12 months.

13 ‘‘(3) AUTHORITY TO USE PORTION OF GRANT

14 FOR OTHER PURPOSES.—

15 ‘‘(A) IN GENERAL.—A State may use not

16 more than 30 percent of the amount of the

17 grant made to the State under this section for

18 a fiscal year to carry out a State program pur19 suant to any or all of the following provisions

20 of law:

21 ‘‘(i) Part B of this title.

22 ‘‘(ii) Title XX of this Act.

23 ‘‘(iii) Any provision of law, enacted

24 into law during the 104th Congress, under
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1 which grants are made to States for food

2 and nutrition.

3 ‘‘(iv) The Child Care and Develop4 ment Block Grant Act of 1990.

5 ‘‘(B) APPLICABLE RULES.—Any amount

6 paid to the State under this part that is used

7 to carry out a State program pursuant to a pro8 vision of law specified in subparagraph (A)

9 shall not be subject to the requirements of this

10 part, but shall be subject to the requirements

11 that apply to Federal funds provided directly

12 under the provision of law to carry out the

13 program.

14 ‘‘(4) AUTHORITY TO RESERVE CERTAIN

15 AMOUNTS FOR EMERGENCY BENEFITS.—A State

16 may reserve amounts paid to the State under this

17 section for any fiscal year for the purpose of provid18 ing emergency assistance under the State program

19 operated under this part.

20 ‘‘(5) IMPLEMENTATION OF ELECTRONIC BENE21 FIT TRANSFER SYSTEM.—A State to which a grant

22 is made under this section is encouraged to imple23 ment an electronic benefit transfer system for pro24 viding assistance under the State program funded
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1 under this part, and may use the grant for such

2 purpose.

3 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

4 pay each grant payable to a State under this section in

5 quarterly installments.

6 ‘‘(e) PENALTIES.—

7 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

8 THIS PART.—

9 ‘‘(A) IN GENERAL.—If an audit conducted

10 pursuant to chapter 75 of title 31, United

11 States Code, finds that an amount paid to a

12 State under this section for a fiscal year has

13 been used in violation of this part, then the

14 Secretary shall reduce the amount of the grant

15 otherwise payable to the State under this sec16 tion for the immediately succeeding fiscal year

17 by the amount so used.

18 ‘‘(B) LIMITATION ON AMOUNT OF PEN19 ALTY.—In carrying out subparagraph (A), the

20 Secretary shall not reduce any quarterly pay21 ment by more than 25 percent.

22 ‘‘(C) CARRYFORWARD OF UNRECOVERED

23 PENALTIES.—To the extent that subparagraph

24 (B) prevents the Secretary from recovering dur25 ing a fiscal year the full amount of a penalty
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1 imposed on a State under subparagraph (A) for

2 a prior fiscal year, the Secretary shall apply

3 subparagraph (A) to the grant otherwise pay4 able to the State under this section for the im5 mediately succeeding fiscal year.

6 ‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE7 PORT.—

8 ‘‘(A) IN GENERAL.—If the Secretary deter9 mines that a State has not, within 6 months

10 after the end of a fiscal year, submitted the re11 port required by section 406 for the fiscal year,

12 the Secretary shall reduce by 3 percent the

13 amount of the grant that would (in the absence

14 of this subsection, subsection (a)(1)(B) of this

15 section, and section 404(c)(2)) be payable to

16 the State under subsection (a)(1)(A) for the im17 mediately succeeding fiscal year.

18 ‘‘(B) RESCISSION OF PENALTY.—The Sec19 retary shall rescind a penalty imposed on a

20 State under subparagraph (A) with respect to a

21 report for a fiscal year if the State submits the

22 report before the end of the immediately suc23 ceeding fiscal year.

24 ‘‘(3) FOR FAILURE TO PARTICIPATE IN THE IN25 COME AND ELIGIBILITY VERIFICATION SYSTEM.—If
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1 the Secretary determines that a State program fund2 ed under this part is not participating during a fis3 cal year in the income and eligibility verification sys4 tem required by section 1137, the Secretary shall re5 duce by 1 percent the amount of the grant that

6 would (in the absence of this subsection, subsection

7 (a)(1)(B) of this section, and section 404(c)(2)) be

8 payable to the State under subsection (a)(1)(A) for

9 the fiscal year.

10 ‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—The

11 Secretary may not regulate the conduct of States under

12 this part or enforce any provision of this part, except to

13 the extent expressly provided in this part.

14 ‘‘(g) FEDERAL RAINY DAY FUND.—

15 ‘‘(1) ESTABLISHMENT.—There is hereby estab16 lished in the Treasury of the United States a revolv17 ing loan fund which shall be known as the ‘Federal

18 Rainy Day Fund’.

19 ‘‘(2) DEPOSITS INTO FUND.—

20 ‘‘(A) APPROPRIATION.—Out of any money

21 in the Treasury of the United States not other22 wise appropriated, $1,000,000,000 are hereby

23 appropriated for fiscal year 1996 for payment

24 to the Federal Rainy Day Fund.
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1 ‘‘(B) LOAN REPAYMENTS.—The Secretary

2 shall deposit into the fund any principal or in3 terest payment received with respect to a loan

4 made under this subsection.

5 ‘‘(3) AVAILABILITY.—Amounts in the fund are

6 authorized to remain available without fiscal year

7 limitation for the purpose of making loans and re8 ceiving payments of principal and interest on such

9 loans, in accordance with this subsection.

10 ‘‘(4) USE OF FUND.—

11 ‘‘(A) LOANS TO QUALIFIED STATES.—

12 ‘‘(i) IN GENERAL.—The Secretary

13 shall make loans from the fund to any

14 qualified State for a period to maturity of

15 not more than 3 years.

16 ‘‘(ii) RATE OF INTEREST.—The Sec17 retary shall charge and collect interest on

18 any loan made under clause (i) at a rate

19 equal to the current average market yield

20 on outstanding marketable obligations of

21 the United States with remaining periods

22 to maturity comparable to the period to

23 maturity of the loan.

24 ‘‘(iii) MAXIMUM LOAN.—The amount

25 of any loan made to a State under clause
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1 (i) during a fiscal year shall not exceed the

2 lesser of—

3 ‘‘(I) 50 percent of the amount of

4 the grant payable to the State under

5 this section for the fiscal year; or

6 ‘‘(II) $100,000,000.

7 ‘‘(B) QUALIFIED STATE DEFINED.—A

8 State is a qualified State for purposes of sub9 paragraph (A) if the unemployment rate of the

10 State (as determined by the Bureau of Labor

11 Statistics) for the most recent 3-month period

12 for which such information is available is—

13 ‘‘(i) more than 6.5 percent; and

14 ‘‘(ii) at least 110 percent of such rate

15 for the corresponding 3-month period in ei16 ther of the 2 immediately preceding cal17 endar years.

18 ‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.

19 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

20 ‘‘(1) REQUIREMENT APPLICABLE TO ALL FAMI21 LIES RECEIVING ASSISTANCE.—

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

23 grant is made under section 403 for a fiscal

24 year shall achieve the minimum participation

25 rate specified in the following table for the fis-
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1 cal year with respect to all families receiving as2 sistance under the State program funded under

3 this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 10

1997 ............................................................... 15

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

1999 ............................................................... 25

2000 ............................................................... 27

2001 ............................................................... 29

2002 ............................................................... 40

2003 or thereafter ......................................... 50.

4 ‘‘(B) PRO RATA REDUCTION OF PARTICIPA5 TION RATE DUE TO CASELOAD REDUCTIONS

6 NOT REQUIRED BY FEDERAL LAW.—The mini7 mum participation rate otherwise required by

8 subparagraph (A) for a fiscal year shall be re9 duced by a percentage equal to the percentage

10 (if any) by which the number of families receiv11 ing assistance during the fiscal year under the

12 State program funded under this part is less

13 than the number of families that received aid

14 under the State plan approved under part A of

15 this title (as in effect before October 1, 1995)

16 during the fiscal year immediately preceding

17 such effective date, except to the extent that the

18 Secretary determines that the reduction in the

19 number of families receiving such assistance is

20 required by Federal law.
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1 ‘‘(C) PARTICIPATION RATE.—For purposes

2 of this paragraph:

3 ‘‘(i) AVERAGE MONTHLY RATE.—The

4 participation rate of a State for a fiscal

5 year is the average of the participation

6 rates of the State for each month in the

7 fiscal year.

8 ‘‘(ii) MONTHLY PARTICIPATION

9 RATES.—The participation rate of a State

10 for a month is—

11 ‘‘(I) the number of families re12 ceiving cash assistance under the

13 State program funded under this part

14 which include an individual who is en15 gaged in work activities for the

16 month; divided by

17 ‘‘(II) the total number of families

18 receiving cash assistance under the

19 State program funded under this part

20 during the month which include an in21 dividual who has attained 18 years of

22 age.

23 ‘‘(iii) ENGAGED.—A recipient is en24 gaged in work activities for a month in a

25 fiscal year if the recipient is making
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1 progress in such activities for at least the

2 minimum average number of hours per

3 week specified in the following table during

4 the month, not fewer than 20 hours per

5 week of which are attributable to an activ6 ity described in subparagraph (A), (B),

7 (C), or (D) of subsection (b)(1) (or, in the

8 case of the first 4 weeks for which the re9 cipient is required under this section to

10 participate in work activities, an activity

11 described in subsection (b)(1)(E)):

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 ..................................................... 35

2003 or thereafter ................................ 35.

12 ‘‘(2) REQUIREMENT APPLICABLE TO 2-PARENT

13 FAMILIES.—

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

15 grant is made under section 403 for a fiscal

16 year shall achieve the minimum participation

17 rate specified in the following table for the fis18 cal year with respect to 2-parent families receiv19 ing assistance under the State program funded

20 under this part:
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The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 50

1997 ............................................................... 50

1998 or thereafter ......................................... 90.

1 ‘‘(B) PARTICIPATION RATE.—For purposes

2 of this paragraph:

3 ‘‘(i) AVERAGE MONTHLY RATE.—The

4 participation rate of a State for a fiscal

5 year is the average of the participation

6 rates of the State for each month in the

7 fiscal year.

8 ‘‘(ii) MONTHLY PARTICIPATION

9 RATES.—The participation rate of a State

10 for a month is—

11 ‘‘(I) the number of 2-parent fam12 ilies receiving cash assistance under

13 the State program funded under this

14 part which include at least 1 adult

15 who is engaged in work activities for

16 the month; divided by

17 ‘‘(II) the total number of 2-par18 ent families receiving cash assistance

19 under the State program funded

20 under this part during the month.

21 ‘‘(iii) ENGAGED.—An adult is engaged

22 in work activities for a month in a fiscal
29

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1 year if the adult is making progress in

2 such activities for at least 35 hours per

3 week during the month, not fewer than 30

4 hours per week of which are attributable to

5 an activity described in subparagraph (A),

6 (B), (C), or (D) of subsection (b)(1) (or, in

7 the case of the first 4 weeks for which the

8 recipient is required under this section to

9 participate in work activities, an activity

10 described in subsection (b)(1)(E)).

11 ‘‘(b) DEFINITIONS.—As used in this section:

12 ‘‘(1) WORK ACTIVITIES.—The term ‘work ac13 tivities’ means—

14 ‘‘(A) unsubsidized employment;

15 ‘‘(B) subsidized private sector employment;

16 ‘‘(C) subsidized public sector employment

17 or work experience (including work associated

18 with the refurbishing of publicly assisted hous19 ing) only if sufficient private sector employment

20 is not available;

21 ‘‘(D) on-the-job training;

22 ‘‘(E) job search and job readiness assist23 ance;

24 ‘‘(F) education directly related to employ25 ment, in the case of a recipient who has not at-
30

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1 tained 20 years of age, and has not received a

2 high school diploma or a certificate of high

3 school equivalency;

4 ‘‘(G) job skills training directly related to

5 employment; or

6 ‘‘(H) at the option of the State, satisfac7 tory attendance at secondary school, in the case

8 of a recipient who—

9 ‘‘(i) has not completed secondary

10 school; and

11 ‘‘(ii) is a dependent child, or a head of

12 household who has not attained 20 years

13 of age.

14 ‘‘(2) FISCAL YEAR.—The term ‘fiscal year’

15 means any 12-month period ending on September 30

16 of a calendar year.

17 ‘‘(c) PENALTIES.—

18 ‘‘(1) AGAINST INDIVIDUALS.—

19 ‘‘(A) APPLICABLE TO ALL FAMILIES.—A

20 State to which a grant is made under section

21 403 shall ensure that the amount of cash as22 sistance paid under the State program funded

23 under this part to a recipient of assistance

24 under the program who refuses to engage (with-
31

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1 in the meaning of subsection (a)(1)(C)(iii)) in

2 work activities required under this section shall

3 be less than the amount of cash assistance that

4 would otherwise be paid to the recipient under

5 the program, subject to such good cause and

6 other exceptions as the State may establish.

7 ‘‘(B) APPLICABLE TO 2-PARENT FAMI8 LIES.—A State to which a grant is made under

9 section 403 shall reduce the amount of cash as10 sistance otherwise payable to a 2-parent family

11 for a month under the State program funded

12 under this part with respect to an adult in the

13 family who is not engaged (within the meaning

14 of subsection (a)(2)(B)(iii)) in work activities

15 for at least 35 hours per week during the

16 month, pro rata (or more, at the option of the

17 State) with respect to any period during the

18 month for which the adult is not so engaged.

19 ‘‘(C) LIMITATION ON FEDERAL AUTHOR20 ITY.—No officer or employee of the Federal

21 Government may regulate the conduct of States

22 under this paragraph or enforce this paragraph

23 against any State.

24 ‘‘(2) AGAINST STATES.—
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1 ‘‘(A) IN GENERAL.—If the Secretary deter2 mines that a State to which a grant is made

3 under section 403 for a fiscal year has failed to

4 comply with subsection (a) for the fiscal year,

5 the Secretary shall reduce by not more than 5

6 percent the amount of the grant that would (in

7 the absence of this paragraph and subsections

8 (a)(1)(B) and (e) of section 403) be payable to

9 the State under section 403(a)(1)(A) for the

10 immediately succeeding fiscal year.

11 ‘‘(B) PENALTY BASED ON SEVERITY OF

12 FAILURE.—The Secretary shall impose reduc13 tions under subparagraph (A) based on the de14 gree of noncompliance.

15 ‘‘(d) RULE OF INTERPRETATION.—This section shall

16 not be construed to prohibit a State from offering recipi17 ents of assistance under the State program funded under

18 this part an opportunity to participate in an education or

19 training program, consistent with the requirements of this

20 section.

21 ‘‘(e) RESEARCH.—The Secretary shall conduct re22 search on the costs and benefits of State activities under

23 this section.

24 ‘‘(f) EVALUATION OF INNOVATIVE APPROACHES TO

25 EMPLOYING RECIPIENTS OF ASSISTANCE.—The Sec-
33

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1 retary shall evaluate innovative approaches to employing

2 recipients of assistance under State programs funded

3 under this part.

4 ‘‘(g) ANNUAL RANKING OF STATES AND REVIEW OF

5 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

6 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec7 retary shall rank the States to which grants are paid

8 under section 403 in the order of their success in

9 moving recipients of assistance under the State pro10 gram funded under this part into long-term private

11 sector jobs.

12 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST

13 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

14 review the programs of the 3 States most recently

15 ranked highest under paragraph (1) and the 3

16 States most recently ranked lowest under paragraph

17 (1) that provide parents with work experience, as18 sistance in finding employment, and other work

19 preparation activities and support services to enable

20 the families of such parents to leave the program

21 and become self-sufficient.

22 ‘‘(h) SENSE OF THE CONGRESS.—In complying with

23 this section, each State that operates a program funded

24 under this part is encouraged to assign the highest prior-
34

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1 ity to requiring families that include older preschool or

2 school-age children to be engaged in work activities.

3 ‘‘(i) SENSE OF THE CONGRESS THAT STATES

4 SHOULD IMPOSE CERTAIN REQUIREMENTS ON

5 NONCUSTODIAL, NONSUPPORTING MINOR PARENTS.—It

6 is the sense of the Congress that the States should require

7 noncustodial, nonsupporting parents who have not at8 tained 18 years of age to fulfill community work obliga9 tions and attend appropriate parenting or money manage10 ment classes after school.

11 ‘‘SEC. 405. PROHIBITIONS.

12 ‘‘(a) IN GENERAL.—

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

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

15 under section 403 may not use any part of the grant

16 to provide assistance to a family, unless the family

17 includes a minor child.

18 ‘‘(2) CERTAIN PAYMENTS NOT TO BE DIS19 REGARDED IN DETERMINING THE AMOUNT OF AS20 SISTANCE TO BE PROVIDED TO A FAMILY.—

21 ‘‘(A) INCOME SECURITY PAYMENTS.—If a

22 State to which a grant is made under section

23 403 uses any part of the grant to provide as24 sistance for any individual who is receiving a

25 payment under a State plan for old-age assist-
35

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1 ance approved under section 2, a State program

2 funded under part B that provides cash pay3 ments for foster care, or the supplemental secu4 rity income program under title XVI (other

5 than service benefits provided through the use

6 of a grant made under part C of such title),

7 then the State may not disregard the payment

8 in determining the amount of assistance to be

9 provided to the family of which the individual is

10 a member under the State program funded

11 under this part.

12 ‘‘(B) CERTAIN SUPPORT PAYMENTS.—A

13 State to which a grant is made under section

14 403 may not disregard an amount distributed

15 to a family under section 457(a)(1)(A) in deter16 mining the income of the family for purposes of

17 eligibility for assistance under the State pro18 gram funded under this part.

19 ‘‘(3) NO ASSISTANCE FOR CERTAIN ALIENS.—

20 Notwithstanding section 403(c)(1), a State to which

21 a grant is made under section 403 may not use any

22 part of the grant to provide assistance for an indi23 vidual who is not a citizen or national of the United

24 States, except consistent with title IV of the Per25 sonal Responsibility Act of 1995.
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1 ‘‘(4) NO ASSISTANCE FOR OUT-OF-WEDLOCK

2 BIRTHS TO MINORS.—

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

4 grant is made under section 403 may not use

5 any part of the grant to provide cash benefits

6 for a child born out-of-wedlock to an individual

7 who has not attained 18 years of age, or for the

8 individual, until the individual attains such age.

9 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—

10 Subparagraph (A) shall not apply with respect

11 to a child who is born as a result of rape or in12 cest.

13 ‘‘(C) STATE OPTION.—Nothing in subpara14 graph (A) shall be construed to prohibit a State

15 from using funds provided by section 403 from

16 providing aid in the form of vouchers that may

17 be used only to pay for particular goods and

18 services specified by the State as suitable for

19 the care of the child such as diapers, clothing,

20 and school supplies.

21 ‘‘(5) NO ADDITIONAL CASH ASSISTANCE FOR

22 CHILDREN BORN TO FAMILIES RECEIVING ASSIST23 ANCE.—

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

25 grant is made under section 403 may not use
37

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1 any part of the grant to provide cash benefits

2 for a minor child who is born to—

3 ‘‘(i) a recipient of benefits under the

4 program operated under this part; or

5 ‘‘(ii) a person who received such bene6 fits at any time during the 10-month pe7 riod ending with the birth of the child.

8 ‘‘(B) EXCEPTION FOR VOUCHERS.—Sub9 paragraph (A) shall not apply to vouchers

10 which are provided in lieu of cash benefits and

11 which may be used only to pay for particular

12 goods and services specified by the State as

13 suitable for the care of the child involved.

14 ‘‘(C) EXCEPTION FOR RAPE OR INCEST.—

15 Subparagraph (A) shall not apply with respect

16 to a child who is born as a result of rape or in17 cest.

18 ‘‘(6) NO ASSISTANCE FOR MORE THAN 5

19 YEARS.—

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

21 grant is made under section 403 may not use

22 any part of the grant to provide cash benefits

23 for the family of an individual who, after at24 taining 18 years of age, has received benefits

25 under the program operated under this part for
38

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1 60 months (whether or not consecutive) after

2 the effective date of this part, except as pro3 vided under subparagraph (B).

4 ‘‘(B) HARDSHIP EXCEPTION.—

5 ‘‘(i) IN GENERAL.—The State may ex6 empt a family from the application of sub7 paragraph (A) by reason of hardship.

8 ‘‘(ii) LIMITATION.—The number of

9 families with respect to which an exemp10 tion made by a State under clause (i) is in

11 effect shall not exceed 10 percent of the

12 number of families to which the State is

13 providing assistance under the program op14 erated under this part.

15 ‘‘(7) NO ASSISTANCE FOR FAMILIES NOT CO16 OPERATING IN PATERNITY ESTABLISHMENT OR

17 CHILD SUPPORT.—Notwithstanding section

18 403(c)(1), a State to which a grant is made under

19 section 403 may not use any part of the grant to

20 provide assistance to a family that includes an indi21 vidual whom the agency responsible for administer22 ing the State plan approved under part D deter23 mines is not cooperating with the State in establish24 ing the paternity of any child of the individual, or
39

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1 in establishing, modifying, or enforcing a support

2 order with respect to such a child.

3 ‘‘(8) NO ASSISTANCE FOR FAMILIES NOT AS4 SIGNING SUPPORT RIGHTS TO THE STATE.—Not5 withstanding section 403(c)(1), a State to which a

6 grant is made under section 403 may not use any

7 part of the grant to provide assistance to a family

8 that includes an individual who has not assigned to

9 the State any rights the individual may have (on be10 half of the individual or of any other person for

11 whom the individual has applied for or is receiving

12 such assistance) to support from any other person

13 for any period for which the individual receives such

14 assistance.

15 ‘‘(9) WITHHOLDING OF PORTION OF ASSIST16 ANCE FOR FAMILIES WHICH INCLUDE A CHILD

17 WHOSE PATERNITY IS NOT ESTABLISHED.—

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

19 grant is made under section 403 may not fail

20 to—

21 ‘‘(i) withhold assistance under the

22 State program funded under this part from

23 a family which includes a child whose pa24 ternity is not established, in an amount

25 equal to $50 or 15 percent of the amount
40

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1 of the amount of the assistance that would

2 (in the absence of this paragraph) be pro3 vided to the family with respect to the

4 child, whichever the State elects; or

5 ‘‘(ii) provide to the family the total

6 amount of assistance so withheld once the

7 paternity of the child is established, if the

8 family is then eligible for such assistance.

9 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—Sub10 paragraph (A) shall not apply with respect to a child

11 who is born as a result of rape or incest.

12 ‘‘(10) DENIAL OF ASSISTANCE FOR 10 YEARS

13 TO A PERSON FOUND TO HAVE FRAUDULENTLY MIS14 REPRESENTED RESIDENCE IN ORDER TO OBTAIN

15 BENEFITS IN 2 OR MORE STATES.—An individual

16 shall not be considered an eligible individual for the

17 purposes of this title during the 10-year period that

18 begins with the date the individual is found by a

19 State to have made, or is convicted in Federal or

20 State court of having made a fraudulent statement

21 or representation with respect to the place of resi22 dence of the person in order to receive benefits or

23 services simultaneously from 2 or more States under

24 programs that are funded under this part, title XIX,

25 or the Food Stamp Act of 1977, or benefits in 2 or
41

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1 more States under the supplemental security income

2 program under title XVI.

3 ‘‘(11) DENIAL OF ASSISTANCE FOR FUGITIVE

4 FELONS AND PROBATION AND PAROLE VIOLA5 TORS.—

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

7 grant is made under section 403 may not use

8 any part of the grant to provide assistance to

9 any individual who is—

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

11 custody or confinement after conviction,

12 under the laws of the place from which the

13 individual flees, for a crime, or an attempt

14 to commit a crime, which is a felony under

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

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

19 ‘‘(ii) violating a condition of probation

20 or parole imposed under Federal or State

21 law.

22 ‘‘(B) EXCHANGE OF INFORMATION WITH

23 LAW ENFORCEMENT AGENCIES.—If a State to

24 which a grant is made under section 403 estab25 lishes safeguards against the use or disclosure
42

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1 of information about applicants or recipients of

2 assistance under the State program funded

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

6 law enforcement officer, upon the request of the

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

9 name of the recipient and notifies the agency

10 that—

11 (i) such recipient—

12 (I) is fleeing to avoid prosecution,

13 or custody or confinement after con14 viction, under the laws of the place

15 from which the recipient flees, for a

16 crime, or an attempt to commit a

17 crime, which is a felony under the

18 laws of the place from which the re19 cipient flees, or which, in the case of

20 the State of New Jersey, is a high

21 misdemeanor under the laws of such

22 State;

23 (II) is violating a condition of

24 probation or parole imposed under

25 Federal or State law; or
43

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1 (III) has information that is nec2 essary for the officer to conduct the

3 official duties of the officer; and

4 (ii) the location or apprehension of the

5 recipient is within such official duties.

6 ‘‘(12) DENIAL OF ASSISTANCE FOR MINOR

7 CHILDREN WHO ARE ABSENT FROM THE HOME FOR

8 A SIGNIFICANT PERIOD.—

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

10 grant is made under section 403 may not use

11 any part of the grant to provide assistance for

12 a minor child who has been, or is expected by

13 a parent (or other caretaker relative) of the

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

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

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

17 more than 90 consecutive days as the State

18 may provide for in the State plan submitted

19 pursuant to section 402.

20 ‘‘(B) STATE AUTHORITY TO ESTABLISH

21 GOOD CAUSE EXCEPTIONS.—The State may es22 tablish such good cause exceptions to subpara23 graph (A) as the State considers appropriate if

24 such exceptions are provided for in the State

25 plan submitted pursuant to section 402.
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1 ‘‘(C) DENIAL OF ASSISTANCE FOR REL2 ATIVE WHO FAILS TO NOTIFY STATE AGENCY

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

4 grant is made under section 403 may not use

5 any part of the grant to provide assistance for

6 an individual who is a parent (or other care7 taker relative) of a minor child and who fails to

8 notify the agency administering the State pro9 gram funded under this part, of the absence of

10 the minor child from the home for the period

11 specified in or provided for under subparagraph

12 (A), by the end of the 5-day period that begins

13 with the date that it becomes clear to the par14 ent (or relative) that the minor child will be ab15 sent for such period so specified or provided

16 for.

17 ‘‘(b) MINOR CHILD DEFINED.—As used in sub18 section (a), the term ‘minor child’ means an individual—

19 ‘‘(1) who has not attained 18 years of age; or

20 ‘‘(2) who—

21 ‘‘(A) has not attained 19 years of age; and

22 ‘‘(B) is a full-time student in a secondary

23 school (or in the equivalent level of vocational

24 or technical training).
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1 ‘‘SEC. 406. DATA COLLECTION AND REPORTING.

2 ‘‘(a) IN GENERAL.—Each State to which a grant is

3 made under section 403 for a fiscal year shall, not later

4 than 6 months after the end of the fiscal year, transmit

5 to the Secretary the following aggregate information on

6 families to which assistance was provided during the fiscal

7 year under the State program operated under this part

8 or an equivalent State program:

9 ‘‘(1) The number of adults receiving such as10 sistance.

11 ‘‘(2) The number of children receiving such as12 sistance and the average age of the children.

13 ‘‘(3) The employment status of such adults, and

14 the average earnings of employed adults receiving

15 such assistance.

16 ‘‘(4) The number of 1-parent families in which

17 the parent is a widow or widower, is divorced, is sep18 arated, or has never married.

19 ‘‘(5) The age, race, and educational attainment

20 of the adults receiving such assistance.

21 ‘‘(6) The average assistance provided to the

22 families under the program.

23 ‘‘(7) Whether, at the time of application for as24 sistance under the program, the families or any

25 member of the families receives benefits under any

26 of the following:
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1 ‘‘(A) Any housing program.

2 ‘‘(B) The food stamp program under the

3 Food Stamp Act of 1977.

4 ‘‘(C) The Head Start programs carried out

5 under the Head Start Act.

6 ‘‘(D) Any job training program.

7 ‘‘(8) The number of months, since the most re8 cent application for assistance under the program,

9 for which such assistance has been provided to the

10 families.

11 ‘‘(9) The total number of months for which as12 sistance has been provided to the families under the

13 program.

14 ‘‘(10) Any other data necessary to indicate

15 whether the State is in compliance with the plan

16 most recently submitted by the State pursuant to

17 section 402.

18 ‘‘(11) The components of any program carried

19 out by the State to provide employment and training

20 activities in order to comply with section 404, and

21 the average monthly number of adults in each such

22 component.

23 ‘‘(12) The number of part-time job placements

24 and the number of full-time job placements made

25 through the program referred to in paragraph (11),
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1 the number of cases with reduced assistance, and

2 the number of cases closed due to employment.

3 ‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—

4 A State may comply with the requirement to provide pre5 cise numerical information described in subsection (a) by

6 submitting an estimate which is obtained through the use

7 of scientifically acceptable sampling methods.

8 ‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO

9 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The

10 report required by subsection (a) for a fiscal year shall

11 include a statement of the percentage of the funds paid

12 to the State under this part for the fiscal year that are

13 used to cover administrative costs or overhead.

14 ‘‘(d) REPORT ON STATE EXPENDITURES ON PRO15 GRAMS FOR NEEDY FAMILIES.—The report required by

16 subsection (a) for a fiscal year shall include a statement

17 of the total amount expended by the State during the fis18 cal year on programs for needy families.

19 ‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI20 PATING IN WORK ACTIVITIES.—The report required by

21 subsection (a) for a fiscal year shall include the number

22 of noncustodial parents in the State who participated in

23 work activities (as defined in section 404(b)(1)) during the

24 fiscal year.
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1 ‘‘SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUD2 IES.

3 ‘‘(a) RESEARCH.—The Secretary may conduct re4 search on the effects, costs, and benefits of State pro5 grams funded under this part.

6 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA7 TIVE APPROACHES TO EMPLOYING WELFARE RECIPI8 ENTS.—The Secretary may assist States in developing,

9 and shall evaluate, innovative approaches to employing re10 cipients of cash assistance under programs funded under

11 this part. In performing such evaluations, the Secretary

12 shall, to the maximum extent feasible, use random assign13 ment to experimental and control groups.

14 ‘‘(c) STUDIES OF WELFARE CASELOADS.—The Sec15 retary may conduct studies of the caseloads of States oper16 ating programs funded under this part.

17 ‘‘(d) DISSEMINATION OF INFORMATION.—The Sec18 retary shall develop innovative methods of disseminating

19 information on any research, evaluations, and studies con20 ducted under this section, including the facilitation of the

21 sharing of information and best practices among States

22 and localities through the use of computers and other

23 technologies.

24 ‘‘SEC. 408. STUDY BY THE CENSUS BUREAU.

25 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

26 expand the Survey of Income and Program Participation
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1 as necessary to obtain such information as will enable in2 terested persons to evaluate the impact of the amendments

3 made by title I of the Personal Responsibility Act of 1995

4 on a random national sample of recipients of assistance

5 under State programs funded under this part and (as ap6 propriate) other low income families, and in doing so, shall

7 pay particular attention to the issues of out-of-wedlock

8 birth, welfare dependency, the beginning and end of wel9 fare spells, and the causes of repeat welfare spells.

10 ‘‘(b) APPROPRIATION.—Out of any money in the

11 Treasury of the United States not otherwise appropriated,

12 the Secretary of the Treasury shall pay to the Bureau of

13 the Census $10,000,000 for each of fiscal years 1996,

14 1997, 1998, 1999, and 2000 to carry out subsection (a).’’.

15 SEC. 102. REPORT ON DATA PROCESSING.

16 (a) IN GENERAL.—Within 6 months after the date

17 of the enactment of this Act, the Secretary of Health and

18 Human Services shall prepare and submit to the Congress

19 a report on—

20 (1) the status of the automated data processing

21 systems operated by the States to assist manage22 ment in the administration of State programs under

23 part A of title IV of the Social Security Act (wheth24 er in effect before or after October 1, 1995); and
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1 (2) what would be required to establish a sys2 tem capable of—

3 (A) tracking participants in public pro4 grams over time; and

5 (B) checking case records of the States to

6 determine whether individuals are participating

7 in public programs of 2 or more States.

8 (b) PREFERRED CONTENTS.—The report required by

9 subsection (a) should include—

10 (1) a plan for building on the automated data

11 processing systems of the States to establish a sys12 tem with the capabilities described in subsection

13 (a)(2); and

14 (2) an estimate of the amount of time required

15 to establish such a system and of the cost of estab16 lishing such a system.

17 SEC. 103. TRANSFERS.

18 (a) CHILD SUPPORT REVIEW PENALTIES.—

19 (1) TRANSFER OF PROVISION.—Section 403 of

20 the Social Security Act, as added by the amendment

21 made by section 101 of this Act, is amended by add22 ing at the end subsection (h) of section 403, as in

23 effect immediately before the effective date of this

24 title.
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1 (2) CONFORMING AMENDMENT.—Section

2 403(h)(3) of such Act, as in effect pursuant to para3 graph (1) of this subsection, is amended by striking

4 ‘‘, section 402(a)(27),’’.

5 (b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—

6 (1) REDESIGNATION OF PROVISION.—Section

7 417 of such Act (42 U.S.C. 617), as in effect imme8 diately before the effective date of this title, is

9 amended by striking the following:

10 ‘‘ASSISTANT SECRETARY FOR FAMILY SUPPORT

11 ‘‘SEC. 417.’’

12 and inserting the following:

13 ‘‘SEC. 409. ASSISTANT SECRETARY FOR FAMILY SUPPORT.’’.

14 (2) TRANSFER OF PROVISION.—Part A of title

15 IV of such Act, as added by the amendment made

16 by section 101 of this Act, is amended by adding at

17 the end the section amended by paragraph (1) of

18 this subsection.

19 (3) CONFORMING AMENDMENT.—Section 409

20 of such Act, as added by paragraph (2) of this sub21 section is amended by striking ‘‘, part D, and part

22 F’’ and inserting ‘‘and part D’’.

23 SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL

24 SECURITY ACT.

25 (a) AMENDMENTS TO TITLE II.—
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1 (1) Section 205(c)(2)(C)(vi) of the Social Secu2 rity Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesig3 nated by section 321(a)(9)(B) of the Social Security

4 Independence and Program Improvements Act of

5 1994, is amended—

6 (A) by inserting ‘‘an agency administering

7 a program funded under part A of title IV or’’

8 before ‘‘an agency operating’’; and

9 (B) by striking ‘‘A or D of title IV of this

10 Act’’ and inserting ‘‘D of such title’’.

11 (2) Section 228(d)(1) of such Act (42 U.S.C.

12 428(d)(1)) is amended by inserting ‘‘under a State

13 program funded under’’ before ‘‘part A of title IV’’.

14 (b) AMENDMENTS TO PART D OF TITLE IV.—

15 (1) Section 451 of such Act (42 U.S.C. 651) is

16 amended by striking ‘‘aid’’ and inserting ‘‘assistance

17 under a State program funded’’.

18 (2) Section 452(a)(10)(C) of such Act (42

19 U.S.C. 652(a)(10)(C)) is amended—

20 (A) by striking ‘‘aid to families with de21 pendent children’’ and inserting ‘‘assistance

22 under a State program funded under part A’’;

23 and

24 (B) by striking ‘‘such aid’’ and inserting

25 ‘‘such assistance’’; and
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1 (C) by striking ‘‘under section 402(a)(26)’’

2 and inserting ‘‘pursuant to section 405(a)(8)’’.

3 (3) Section 452(a)(10)(F) of such Act (42

4 U.S.C. 652(a)(10)(F)) is amended—

5 (A) by striking ‘‘aid under a State plan ap6 proved’’ and inserting ‘‘assistance under a State

7 program funded’’; and

8 (B) by striking ‘‘in accordance with the

9 standards referred to in section

10 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

11 State’’.

12 (4) Section 452(b) of such Act (42 U.S.C.

13 652(b)) is amended in the last sentence by striking

14 ‘‘plan approved under part A’’ and inserting ‘‘pro15 gram funded under part A’’.

16 (5) Section 452(d)(3)(B)(i) of such Act (42

17 U.S.C. 652(d)(3)(B)(i)) is amended by striking

18 ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.

19 (6) Section 452(g)(2)(A)(ii)(I) of such Act (42

20 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking

21 ‘‘aid is being paid under the State’s plan approved’’

22 and inserting ‘‘assistance is being provided under

23 the State program funded under’’.

24 (7) Section 452(g)(2)(A) of such Act (42

25 U.S.C. 652(g)(2)(A)) is amended in the matter fol-
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1 lowing clause (iii) by striking ‘‘aid was being paid

2 under the State’s plan approved’’ and inserting ‘‘as3 sistance was being provided under the State pro4 gram funded’’.

5 (8) Section 452(g)(2) of such Act (42 U.S.C.

6 652(g)(2)) is amended in the matter following sub7 paragraph (B)—

8 (A) by striking ‘‘who is a dependent child

9 by reason of the death of a parent’’ and insert10 ing ‘‘with respect to whom assistance is being

11 provided under the State program funded under

12 part A’’; and

13 (B) by inserting ‘‘by the State agency ad14 ministering the State plan approved under this

15 part’’ after ‘‘found’’;

16 (C) by striking ‘‘under section 402(a)(26)’’

17 and inserting ‘‘pursuant to section 405(a)(8)’’;

18 and

19 (D) by striking ‘‘administering the plan

20 under part E determines (as provided in section

21 454(4)(B))’’ and inserting ‘‘determines’’.

22 (9) Section 452(h) of such Act (42 U.S.C.

23 652(h)) is amended by striking ‘‘under section

24 402(a)(26)’’ and inserting ‘‘pursuant to section

25 405(a)(8)’’.
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1 (10) Section 454(5) of such Act (42 U.S.C.

2 654(5)) is amended—

3 (A) by striking ‘‘under section 402(a)(26)’’

4 and inserting ‘‘pursuant to section 405(a)(8)’’;

5 and

6 (B) by striking ‘‘except that this para7 graph shall not apply to such payments for any

8 month following the first month in which the

9 amount collected is sufficient to make such

10 family ineligible for assistance under the State

11 plan approved under part A;’’.

12 (11) Section 454(6)(D) of such Act (42 U.S.C.

13 654(6)(D)) is amended by striking ‘‘aid under a

14 State plan approved’’ and inserting ‘‘assistance

15 under a State program funded’’.

16 (12) Section 456 of such Act (42 U.S.C. 656)

17 is amended by striking ‘‘under section 402(a)(26)’’

18 each place such term appears and inserting ‘‘pursu19 ant to section 405(a)(8)’’.

20 (13) Section 466(a)(3)(B) of such Act (42

21 U.S.C. 666(a)(3)(B)) is amended by striking

22 ‘‘402(a)(26)’’ and inserting ‘‘405(a)(8)’’.

23 (14) Section 466(b)(2) of such Act (42 U.S.C.

24 666(b)(2)) is amended by striking ‘‘aid’’ and insert25 ing ‘‘assistance under a State program funded’’.
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1 (c) REPEAL OF PART F OF TITLE IV.—Part F of

2 title IV of such Act (42 U.S.C. 681–687) is hereby re3 pealed.

4 (d) AMENDMENT TO TITLE X.—Section 1002(a)(7)

5 of such Act (42 U.S.C. 1202(a)(7)) is amended by striking

6 ‘‘aid to families with dependent children under the State

7 plan approved under section 402 of this Act’’ and insert8 ing ‘‘assistance under a State program funded under part

9 A of title IV’’.

10 (e) AMENDMENTS TO TITLE XI.—

11 (1) Section 1108 of such Act (42 U.S.C. 1308)

12 is amended—

13 (A) by striking subsections (a), (b), (d),

14 and (e); and

15 (B) by striking ‘‘(c)’’.

16 (2) Section 1109 of such Act (42 U.S.C. 1309)

17 is amended by striking ‘‘or part A of title IV,’’.

18 (3) Section 1115(a) of such Act (42 U.S.C.

19 1315(a)) is amended—

20 (A) in the matter preceding paragraph (1),

21 by striking ‘‘A or’’;

22 (B) in paragraph (1), by striking ‘‘402,’’;

23 and

24 (C) in paragraph (2), by striking ‘‘403,’’.
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1 (4) Section 1116 of such Act (42 U.S.C. 1316)

2 is amended—

3 (A) in each of subsections (a)(1), (b), and

4 (d), by striking ‘‘or part A of title IV,’’; and

5 (B) in subsection (a)(3), by striking

6 ‘‘404,’’.

7 (5) Section 1118 of such Act (42 U.S.C. 1318)

8 is amended—

9 (A) by striking ‘‘403(a),’’;

10 (B) by striking ‘‘and part A of title IV,’’;

11 and

12 (C) by striking ‘‘, and shall, in the case of

13 American Samoa, mean 75 per centum with re14 spect to part A of title IV’’.

15 (6) Section 1119 of such Act (42 U.S.C. 1319)

16 is amended—

17 (A) by striking ‘‘or part A of title IV’’; and

18 (B) by striking ‘‘403(a),’’.

19 (7) Section 1133(a) of such Act (42 U.S.C.

20 1320b–3(a)) is amended by striking ‘‘or part A of

21 title IV,’’.

22 (8) Section 1136 of such Act (42 U.S.C.

23 1320b–6) is hereby repealed.

24 (9) Section 1137 of such Act (42 U.S.C.

25 1320b–7) is amended—
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1 (A) in subsection (b), by striking para2 graph (1) and inserting the following:

3 ‘‘(1) any State program funded under part A of

4 title IV of this Act;’’; and

5 (B) in subsection (d)(1)(B)—

6 (i) by striking ‘‘In this subsection—’’

7 and all that follows through ‘‘(ii) in’’ and

8 inserting ‘‘In this subsection, in’’; and

9 (ii) by redesignating subclauses (I),

10 (II), and (III) as clauses (i), (ii), and (iii);

11 and

12 (iii) by moving such redesignated ma13 terial 2 ems to the left.

14 (f) AMENDMENT TO TITLE XIV.—Section

15 1402(a)(7) of such Act (42 U.S.C. 1352(a)(7)) is amend16 ed by striking ‘‘aid to families with dependent children

17 under the State plan approved under section 402 of this

18 Act’’ and inserting ‘‘assistance under a State program

19 funded under part A of title IV’’.

20 (g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

21 RESPECT TO THE TERRITORIES.—Section 1602(a)(11) of

22 such Act, as in effect without regard to the amendment

23 made by section 301 of the Social Security Amendments

24 of 1972, (42 U.S.C. 1382 note) is amended by striking
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1 ‘‘aid under the State plan approved’’ and inserting ‘‘assist2 ance under a State program funded’’.

3 (h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

4 RESPECT TO THE STATES.—Section 1611(c)(5)(A) of

5 such Act (42 U.S.C. 1382(c)(5)(A)) is amended to read

6 as follows: ‘‘(A) a State program funded under part A of

7 title IV,’’.

8 SEC. 105. CONFORMING AMENDMENTS TO OTHER LAWS.

9 (a) Subsection (b) of section 508 of the Unemploy10 ment Compensation Amendments of 1976 (42 U.S.C.

11 603a) is amended to read as follows:

12 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX13 PENSES.—For purposes of section 455 of the Social Secu14 rity Act, expenses incurred to reimburse State employment

15 offices for furnishing information requested of such of16 fices—

17 ‘‘(1) pursuant to the third sentence of section

18 3(a) of the Act entitled ‘An Act to provide for the

19 establishment of a national employment system and

20 for cooperation with the States in the promotion of

21 such system, and for other purposes’, approved June

22 6, 1933 (29 U.S.C. 49b(a)),

23 ‘‘(2) by a State or local agency charged with

24 the duty of carrying a State plan for child support
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1 approved under part D of title IV of the Social Se2 curity Act,

3 shall be considered to constitute expenses incurred in the

4 administration of such State plan.’’.

5 (b) Paragraph (9) of section 51(d) of the Internal

6 Revenue Code of 1986 is amended by striking all that fol7 lows ‘‘agency as’’ and inserting ‘‘being eligible for financial

8 assistance under part A of title IV of the Social Security

9 Act and as having continually received such financial as10 sistance during the 90-day period which immediately pre11 cedes the date on which such individual is hired by the

12 employer.’’

13 (c) Section 9121 of the Omnibus Budget Reconcili14 ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.

15 (d) Section 9122 of the Omnibus Budget Reconcili16 ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.

17 (e) Section 221 of the Housing and Urban-Rural Re18 covery Act of 1983 (42 U.S.C. 602 note), relating to treat19 ment under AFDC of certain rental payments for federally

20 assisted housing, is hereby repealed.

21 (f) Section 159 of the Tax Equity and Fiscal Respon22 sibility Act of 1982 (42 U.S.C. 602 note) is hereby re23 pealed.
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1 (g) Section 202(d) of the Social Security Amend2 ments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is here3 by repealed.

4 (h) Section 233 of the Social Security Act Amend5 ments of 1994 (42 U.S.C. 602 note) is hereby repealed.

6 (i) Section 903 of the Stewart B. McKinney Home7 less Assistance Amendments Act of 1988 (42 U.S.C.

8 11381 note), relating to demonstration projects to reduce

9 number of AFDC families in welfare hotels, is amended—

10 (1) in subsection (a), by striking ‘‘aid to fami11 lies with dependent children under a State plan ap12 proved’’ and inserting ‘‘assistance under a State pro13 gram funded’’; and

14 (2) in subsection (c), by striking ‘‘aid to fami15 lies with dependent children in the State under a

16 State plan approved’’ and inserting ‘‘assistance in

17 the State under a State program funded’’.

18 SEC. 106. CONTINUED APPLICATION OF CURRENT STAND19 ARDS UNDER MEDICAID PROGRAM.

20 (a) IN GENERAL.—Title XIX of the Social Security

21 Act is amended—

22 (1) in section 1931, by inserting ‘‘subject to

23 section 1931(a),’’ after ‘‘under this title,’’ and by re24 designating such section as section 1932; and
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1 (2) by inserting after section 1930 the following

2 new section:

3 ‘‘CONTINUED APPLICATION OF AFDC STANDARDS

4 ‘‘SEC. 1931. (a) For purposes of applying this title

5 on and after October 1, 1995, with respect to a State—

6 ‘‘(1) except as provided in paragraph (2), any

7 reference in this title (or other provision of law in

8 relation to the operation of this title) to a provision

9 of part A of title IV of this Act, or a State plan

10 under such part, shall be considered a reference to

11 such provision or plan as in effect as of March 7,

12 1995, with respect to the State and eligibility for

13 medical assistance under this title shall be deter14 mined as if such provision or plan (as in effect as

15 of such date) had remained in effect on and after

16 October 1, 1995; and

17 ‘‘(2) any reference in section 1902(a)(5) or

18 1902(a)(55) to a State plan approved under part A

19 of title IV shall be deemed a reference to a State

20 program funded under such part (as in effect on and

21 after October 1, 1995).

22 ‘‘(b) In the case of a waiver of a provision of part

23 A of title IV in effect with respect to a State as of March

24 7, 1995, if the waiver affects eligibility of individuals for

25 medical assistance under this title, such waiver may con26 tinue to be applied, at the option of the State, in relation
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1 to this title after the date the waiver would otherwise

2 expire.’’

3 (b) PLAN AMENDMENT.—Section 1902(a) of such

4 Act (42 U.S.C. 1396a(a)) is amended—

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

6 (61),

7 (2) by striking the period at the end of para8 graph (62) and inserting ‘‘; and’’, and

9 (3) by inserting after paragraph (62) the fol10 lowing new paragraph:

11 ‘‘(63) provide for continuing to administer eligi12 bility standards with respect to individuals who are

13 (or seek to be) eligible for medical assistance based

14 on the application of section 1931.’’.

15 (c) CONFORMING AMENDMENTS.—(1) Section

16 1902(c) of such Act (42 U.S.C. 1396a(c)) is amended by

17 striking ‘‘if—’’ and all that follows and inserting the fol18 lowing: ‘‘if the State requires individuals described in sub19 section (l)(1) to apply for assistance under the State pro20 gram funded under part A of title IV as a condition of

21 applying for or receiving medical assistance under this

22 title.’’.

23 (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i))

24 is amended by striking paragraph (9).
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to medical assistance furnished for

3 calendar quarters beginning on or after October 1, 1995.

4 SEC. 107. EFFECTIVE DATE.

5 (a) IN GENERAL.—Except as otherwise provided in

6 this title, this title and the amendments made by this title

7 shall take effect on October 1, 1995.

8 (b) DELAYED APPLICABILITY OF AUTHORITY TO

9 TEMPORARILY REDUCE ASSISTANCE FOR CERTAIN FAMI10 LIES WHICH INCLUDE A CHILD WHOSE PATERNITY IS

11 NOT ESTABLISHED.—Section 405(a)(9) of the Social Se12 curity Act, as added by the amendment made by section

13 101 of this Act, shall not apply to individuals who, imme14 diately before the effective date of this title, are recipients

15 of aid under a State plan approved under part A of title

16 IV of the Social Security Act, until the end of the 1-year

17 (or, at the option of the State, 2-year) period that begins

18 with such effective date.

19 (c) TRANSITION RULE.—The amendments made by

20 this title shall not apply with respect to—

21 (1) powers, duties, functions, rights, claims,

22 penalties, or obligations applicable to aid or services

23 provided before the effective date of this title under

24 the provisions amended; and
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1 (2) administrative actions and proceedings com2 menced before such date, or authorized before such

3 date to be commenced, under such provisions.

4 TITLE II—CHILD PROTECTION

5 BLOCK GRANT PROGRAM

6 SEC. 201. ESTABLISHMENT OF PROGRAM.

7 Part B of title IV of the Social Security Act (42

8 U.S.C. 620–635) is amended to read as follows:

9 ‘‘PART B—BLOCK GRANTS TO STATES FOR THE

10 PROTECTION OF CHILDREN

11 ‘‘SEC. 421. PURPOSE.

12 ‘‘The purpose of this part is to enable eligible States

13 to carry out a child protection program to—

14 ‘‘(1) identify and assist families at risk of abus15 ing or neglecting their children;

16 ‘‘(2) operate a system for receiving reports of

17 abuse or neglect of children;

18 ‘‘(3) investigate families reported to abuse or

19 neglect their children;

20 ‘‘(4) provide support, treatment, and family

21 preservation services to families which are, or are at

22 risk of, abusing or neglecting their children;

23 ‘‘(5) support children who must be removed

24 from or who cannot live with their families;
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1 ‘‘(6) make timely decisions about permanent liv2 ing arrangements for children who must be removed

3 from or who cannot live with their families; and

4 ‘‘(7) provide for continuing evaluation and im5 provement of child protection laws, regulations, and

6 services.

7 ‘‘SEC. 422. ELIGIBLE STATES.

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

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

10 that, during the 3-year period immediately preceding the

11 fiscal year, has submitted to the Secretary a plan that in12 cludes the following:

13 ‘‘(1) OUTLINE OF CHILD PROTECTION PRO14 GRAM.—A written document that outlines the activi15 ties the State intends to conduct to achieve the pur16 pose of this part, including the procedures to be

17 used for—

18 ‘‘(A) receiving reports of child abuse or ne19 glect;

20 ‘‘(B) investigating such reports;

21 ‘‘(C) protecting children in families in

22 which child abuse or neglect is found to have

23 occurred;

24 ‘‘(D) removing children from dangerous

25 settings;
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1 ‘‘(E) protecting children in foster care;

2 ‘‘(F) promoting timely adoptions;

3 ‘‘(G) protecting the rights of families,

4 using adult relatives as the preferred placement

5 for children separated from their parents if

6 such relatives meet all State child protection

7 standards;

8 ‘‘(H) preventing child abuse and neglect;

9 and

10 ‘‘(I) establishing and responding to citizen

11 review panels under section 425.

12 ‘‘(2) CERTIFICATION OF STATE LAW REQUIRING

13 THE REPORTING OF CHILD ABUSE AND NEGLECT.—

14 A certification that the State has in effect laws that

15 require public officials and other professionals to re16 port actual or suspected instances of child abuse or

17 neglect.

18 ‘‘(3) CERTIFICATION OF STATE PROGRAM TO

19 INVESTIGATE CHILD ABUSE AND NEGLECT CASES.—

20 A certification that the State has in effect a pro21 gram to investigate child abuse and neglect cases.

22 ‘‘(4) CERTIFICATION OF STATE PROCEDURES

23 FOR REMOVAL AND PLACEMENT OF ABUSED OR NE24 GLECTED CHILDREN.—A certification that the State
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1 has in effect procedures for removal from families

2 and placement of abused or neglected children.

3 ‘‘(5) CERTIFICATION OF STATE PROCEDURES

4 FOR DEVELOPING AND REVIEWING WRITTEN PLANS

5 FOR PERMANENT PLACEMENT OF REMOVED CHIL6 DREN.—A certification that the State has in effect

7 procedures for ensuring that a written plan is pre8 pared for children who have been removed from their

9 families, which specifies the goal for achieving a per10 manent placement for the child in a timely fashion,

11 for ensuring that the written plan is reviewed every

12 6 months, and for ensuring that information about

13 such children is collected regularly and recorded in

14 case records, and a description of such procedures.

15 ‘‘(6) CERTIFICATION THAT THE STATE WILL

16 CONTINUE TO HONOR ADOPTION ASSISTANCE

17 AGREEMENTS.—A certification that the State will

18 honor any adoption assistance agreement (as defined

19 in section 475(3), as in effect immediately before the

20 effective date of this part) entered into by an agency

21 of the State, that is in effect as of such effective

22 date.

23 ‘‘(7) CERTIFICATION OF STATE PROGRAM TO

24 PROVIDE INDEPENDENT LIVING SERVICES.—A cer25 tification that the State has in effect a program to
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1 provide independent living services to individuals in

2 the child protection program of the State who have

3 attained 16 years of age but have not attained 20

4 (or, at the option of the State, 22) years of age, and

5 who do not have a family to which to be returned

6 for assistance in making the transition to self-suffi7 cient adulthood.

8 ‘‘(8) CERTIFICATION OF STATE PROCEDURES

9 TO RESPOND TO REPORTING OF MEDICAL NEGLECT

10 OF DISABLED INFANTS.—

11 ‘‘(A) IN GENERAL.—A certification that

12 the State has in place for the purpose of re13 sponding to the reporting of medical neglect of

14 infants (including instances of withholding of

15 medically indicated treatment from disabled in16 fants with life-threatening conditions), proce17 dures or programs, or both (within the State

18 child protective services system), to provide

19 for—

20 ‘‘(i) coordination and consultation

21 with individuals designated by and within

22 appropriate health-care facilities;

23 ‘‘(ii) prompt notification by individ24 uals designated by and within appropriate

25 health-care facilities of cases of suspected
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1 medical neglect (including instances of

2 withholding of medically indicated treat3 ment from disabled infants with life-threat4 ening conditions); and

5 ‘‘(iii) authority, under State law, for

6 the State child protective service to pursue

7 any legal remedies, including the authority

8 to initiate legal proceedings in a court of

9 competent jurisdiction, as may be nec10 essary to prevent the withholding of medi11 cally indicated treatment from disabled in12 fants with life-threatening conditions.

13 ‘‘(B) WITHHOLDING OF MEDICALLY INDI14 CATED TREATMENT.—As used in subparagraph

15 (A), the term ‘withholding of medically indi16 cated treatment’ means the failure to respond

17 to the infant’s life-threatening conditions by

18 providing treatment (including appropriate nu19 trition, hydration, and medication) which, in the

20 treating physician’s or physicians’ reasonable

21 medical judgment, will be most likely to be ef22 fective in ameliorating or correcting all such

23 conditions, except that such term does not in24 clude the failure to provide treatment (other

25 than appropriate nutrition, hydration, or medi-
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1 cation) to an infant when, in the treating physi2 cian’s or physicians’ reasonable medical judg3 ment—

4 ‘‘(i) the infant is chronically and irre5 versibly comatose;

6 ‘‘(ii) the provision of such treatment

7 would—

8 ‘‘(I) merely prolong dying;

9 ‘‘(II) not be effective in amelio10 rating or correcting all of the infant’s

11 life-threatening conditions; or

12 ‘‘(III) otherwise be futile in

13 terms of the survival of the infant; or

14 ‘‘(iii) the provision of such treatment

15 would be virtually futile in terms of the

16 survival of the infant and the treatment it17 self under such circumstances would be in18 humane.

19 ‘‘(9) IDENTIFICATION OF CHILD PROTECTION

20 GOALS.—The quantitative goals of the State child

21 protection program.

22 ‘‘(b) DETERMINATIONS.—The Secretary shall deter23 mine whether a plan submitted pursuant to subsection (a)

24 contains the material required by subsection (a). The Sec25 retary may not require a State to include in such a plan
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1 any material not described in subsection (a), and may not

2 review the adequacy of State procedures. The Secretary

3 may not require a State to alter its child protection law

4 regarding determination of the adequacy, type and timing

5 of health care (whether medical, non-medical or spiritual).

6 ‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

7 ‘‘(a) ENTITLEMENT.—

8 ‘‘(1) IN GENERAL.—Each eligible State shall be

9 entitled to receive from the Secretary for each fiscal

10 year specified in subsection (b)(1) a grant in an

11 amount equal to the State share of the child protec12 tion amount for the fiscal year.

13 ‘‘(2) ADDITIONAL GRANT.—

14 ‘‘(A) IN GENERAL.—In addition to a grant

15 under paragraph (1) of this subsection, the Sec16 retary shall pay to each eligible State for each

17 fiscal year specified in subsection (b)(1) an

18 amount equal to the State share of the amount

19 (if any) appropriated pursuant to subparagraph

20 (B) of this paragraph for the fiscal year.

21 ‘‘(B) LIMITATION ON AUTHORIZATION OF

22 APPROPRIATIONS.—For grants under subpara23 graph (A), there are authorized to be appro24 priated to the Secretary an amount not to ex-
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1 ceed $486,000,000 for each fiscal year specified

2 in subsection (b)(1).

3 ‘‘(b) DEFINITIONS.—As used in this section:

4 ‘‘(1) CHILD PROTECTION AMOUNT.—The term

5 ‘child protection amount’ means—

6 ‘‘(A) $3,930,000,000 for fiscal year 1996;

7 ‘‘(B) $4,195,000,000 for fiscal year 1997;

8 ‘‘(C) $4,507,000,000 for fiscal year 1998;

9 ‘‘(D) $4,767,000,000 for fiscal year 1999;

10 and

11 ‘‘(E) $5,071,000,000 for fiscal year 2000.

12 ‘‘(2) STATE SHARE.—

13 ‘‘(A) IN GENERAL.—The term ‘State

14 share’ means the qualified child protection ex15 penses of the State divided by the sum of the

16 qualified child protection expenses of all of the

17 States.

18 ‘‘(B) QUALIFIED CHILD PROTECTION EX19 PENSES.—The term ‘qualified child protection

20 expenses’ means, with respect to a State the

21 greater of—

‘‘(i) 1 22 ⁄3 of the total amount of obliga23 tions to the State under the provisions of

24 law specified in subparagraph (C) for fiscal

25 years 1992, 1993, and 1994; or
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1 ‘‘(ii) the total amount of obligations to

2 the State under such provisions of law for

3 fiscal year 1994.

4 ‘‘(C) PROVISIONS OF LAW.—The provisions

5 of law specified in this subparagraph are the

6 following (as in effect immediately before the

7 effective date of this part):

8 ‘‘(i) Section 474(a) (other than sub9 paragraphs (C) and (D) of paragraph (3))

10 of this Act.

11 ‘‘(ii) Section 304 of the Family Vio12 lence Prevention and Services Act.

13 ‘‘(iii) Section 107(a) of the Child

14 Abuse Prevention and Treatment Act.

15 ‘‘(iv) Section 201(d) of the Child

16 Abuse Prevention and Treatment Act.

17 ‘‘(v) Section 423 of this Act.

18 ‘‘(3) STATE.—The term ‘State’ includes the

19 several States, the District of Columbia, the Com20 monwealth of Puerto Rico, the United States Virgin

21 Islands, Guam, and American Samoa.

22 ‘‘(c) USE OF GRANT.—

23 ‘‘(1) IN GENERAL.—A State to which a grant

24 is made under this section may use the grant in any

25 manner that the State deems appropriate to accom-
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1 plish the purpose of this part, including setting up

2 abuse and neglect reporting systems, abuse and ne3 glect prevention, family preservation, foster care,

4 adoption, program administration, and training.

5 ‘‘(2) AUTHORITY TO USE PORTION OF GRANT

6 FOR OTHER PURPOSES.—

7 ‘‘(A) IN GENERAL.—A State may use not

8 more than 30 percent of the amount of the

9 grant made to the State under this section for

10 fiscal year 1998 or a succeeding fiscal year to

11 carry out a State program pursuant to any or

12 all of the following provisions of law:

13 ‘‘(i) Part A of this title.

14 ‘‘(ii) Title XX of this Act.

15 ‘‘(iii) The Child Care and Develop16 ment Block Grant Act of 1990.

17 ‘‘(iv) Any provision of law, enacted

18 into law during the 104th Congress, under

19 which grants are made to States for food

20 and nutrition or employment and training.

21 ‘‘(B) APPLICABLE RULES.—Any amount

22 paid to the State under this part that is used

23 to carry out a State program pursuant to a pro24 vision of law specified in subparagraph (A)

25 shall not be subject to the requirements of this
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1 part, but shall be subject to the requirements

2 that apply to Federal funds provided directly

3 under the provision of law to carry out the pro4 gram.

5 ‘‘(3) TIMING OF EXPENDITURES.—A State to

6 which a grant is made under this section for a fiscal

7 year shall expend the total amount of the grant not

8 later than the end of the immediately succeeding fis9 cal year.

10 ‘‘(4) RULE OF INTERPRETATION.—This part

11 shall not be interpreted to prohibit short- and long12 term foster care facilities operated for profit from

13 receiving funds provided under this part.

14 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

15 pay each eligible State the amount of the grant payable

16 to the State under this section in quarterly installments.

17 ‘‘(e) PENALTIES.—

18 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

19 THIS PART.—

20 ‘‘(A) IN GENERAL.—If an audit conducted

21 pursuant to chapter 75 of title 31, United

22 States Code, finds that an amount paid to a

23 State under this section for a fiscal year has

24 been used in violation of this part, then the

25 Secretary shall reduce the amount of the grant
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1 that would (in the absence of this subsection)

2 be payable to the State under this section for

3 the immediately succeeding fiscal year by the

4 amount so used.

5 ‘‘(B) LIMITATION.—In carrying out sub6 paragraph (A), the Secretary shall not reduce

7 any quarterly payment by more than 25

8 percent.

9 ‘‘(C) CARRYFORWARD OF UNRECOVERED

10 PENALTY.—To the extent that subparagraph

11 (B) prevents the Secretary from recovering dur12 ing a fiscal year the full amount of a penalty

13 imposed on a State under subparagraph (A) for

14 a prior fiscal year, the Secretary shall apply

15 subparagraph (A) to the grant otherwise pay16 able to the State under this section for the im17 mediately succeeding fiscal year.

18 ‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—If

19 an audit conducted pursuant to chapter 75 of title

20 31, United States Code, finds that the amount ex21 pended by a State (other than from amounts pro22 vided by the Federal Government) during fiscal year

23 1996 or 1997 to carry out the State program funded

24 under this part is less than the total amount ex25 pended by the State (other than from amounts pro-
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1 vided by the Federal Government) during fiscal year

2 1995 under parts B and E of this title, then the

3 Secretary shall reduce the amount of the grant that

4 would (in the absence of this subsection) be payable

5 to the State under this section for the immediately

6 succeeding fiscal year by the amount of the dif7 ference.

8 ‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE9 PORT.—

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

11 reduce by 3 percent the amount of the grant

12 that would (in the absence of this subsection)

13 be payable to a State under this section for a

14 fiscal year if the Secretary determines that the

15 State has not submitted the report required by

16 section 427(b) for the immediately preceding

17 fiscal year, within 6 months after the end of the

18 immediately preceding fiscal year.

19 ‘‘(B) RESCISSION OF PENALTY.—The Sec20 retary shall rescind a penalty imposed on a

21 State under subparagraph (A) with respect to a

22 report for a fiscal year if the State submits the

23 report before the end of the immediately suc24 ceeding fiscal year.
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1 ‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—Except

2 as expressly provided in this part, the Secretary may not

3 regulate the conduct of States under this part or enforce

4 any provision of this part.

5 ‘‘SEC. 424. CHILD PROTECTION STANDARDS.

6 ‘‘(a) IN GENERAL.—Each State to which a grant is

7 made under section 423 shall operate a child protection

8 program in accorance with the following standards in

9 order to assure the protection of children:

10 ‘‘(1) The primary standard by which a State

11 child welfare system shall be judged is the protection

12 of children.

13 ‘‘(2) Each State shall investigate reports of

14 abuse and neglect promptly.

15 ‘‘(3) Children removed from their homes shall

16 have a permanency plan and a dispositional hearing

17 by a court or a court-appointed body within 3

18 months after a fact-finding hearing.

19 ‘‘(4) All child protection cases in which the

20 child is placed outside the home shall be reviewed

21 every 6 months unless the child is in a long-term

22 placement.

23 ‘‘(b) PLACEMENT OF CHILDREN WITH REL24 ATIVES.—A State to which a grant is made under this

25 part may consider—
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1 ‘‘(1) establishing a new type of foster care

2 placement, which could be considered a permanent

3 placement, for children who are separated from their

4 parents (in this subsection referred to as ‘kinship

5 care’) under which—

6 ‘‘(A) adult relatives of such children would

7 be the preferred placement option if such rel8 atives meet all relevant child protection stand9 ards established by the State;

10 ‘‘(B) the State would make a needs-based

11 payment and provide supportive services, as ap12 propriate, with respect to children placed in a

13 kinship care arrangement; and

14 ‘‘(2) in placing children for adoption, giving

15 preference to adult relatives who meet applicable

16 adoption standards (including those acting as foster

17 parents of such children).

18 ‘‘SEC. 425. CITIZEN REVIEW PANELS.

19 ‘‘(a) ESTABLISHMENT.—Each State to which a grant

20 is made under section 423 shall establish at least 3 citizen

21 review panels.

22 ‘‘(b) COMPOSITION.—Each panel established under

23 subsection (a) shall be broadly representative of the com24 munity from which drawn.
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1 ‘‘(c) FREQUENCY OF MEETINGS.—Each panel estab2 lished under subsection (a) shall meet not less frequently

3 than quarterly.

4 ‘‘(d) DUTIES.—

5 ‘‘(1) IN GENERAL.—Each panel established

6 under subsection (a) shall, by examining specific

7 cases, determine the extent to which the State and

8 local agencies responsible for carrying out activities

9 under this part are doing so in accordance with the

10 State plan, with the child protection standards set

11 forth in section 424, and with any other criteria that

12 the panel considers important to ensure the protec13 tion of children.

14 ‘‘(2) CONFIDENTIALITY.—The members and

15 staff of any panel established under subsection (a)

16 shall not disclose to any person or government any

17 information about any specific child protection case

18 with respect to which the panel is provided informa19 tion.

20 ‘‘(e) STATE ASSISTANCE.—Each State that estab21 lishes a panel under subsection (a) shall afford the panel

22 access to any information on any case that the panel de23 sires to review, and shall provide the panel with staff as24 sistance in performing its duties.
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1 ‘‘(f) REPORTS.—Each panel established under sub2 section (a) shall make a public report of its activities after

3 each meeting.

4 ‘‘SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING

5 AND RUNAWAY CHILDREN.

6 ‘‘(a) IN GENERAL.—The Attorney General of the

7 United States shall establish and operate by contract a

8 clearinghouse of information on children who are missing

9 or have run away from home, including a 24-hour toll10 free telephone hotline which may be contacted for informa11 tion on such children.

12 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO13 PRIATIONS.—To carry out subsection (a), there are au14 thorized to be appropriated to the Attorney General of the

15 United States not to exceed $7,000,000 for each fiscal

16 year.

17 ‘‘SEC. 427. DATA COLLECTION AND REPORTING.

18 ‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE

19 GOALS.—On the date that is 3 years after the effective

20 date of this part and annually thereafter, each State to

21 which a grant is made under section 423 shall submit to

22 the Secretary a report that contains quantitative informa23 tion on the extent to which the State is making progress

24 toward achieving the goals of the State child protection

25 program.
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1 ‘‘(b) ANNUAL STATE DATA REPORTS.—Each State

2 to which a grant is made under section 423 shall annually

3 submit to the Secretary of Health and Human Services

4 a report that includes the following:

5 ‘‘(1) The number of children who were reported

6 to the State during the year as abused or neglected.

7 ‘‘(2) Of the number of children described in

8 paragraph (1), the number with respect to whom

9 such reports were substantiated.

10 ‘‘(3) Of the number of children described in

11 paragraph (2)—

12 ‘‘(A) the number that did not receive serv13 ices during the year under the State program

14 funded under this part;

15 ‘‘(B) the number that received services

16 during the year under the State program fund17 ed under this part or an equivalent State pro18 gram; and

19 ‘‘(C) the number that were removed from

20 their families during the year.

21 ‘‘(4) The number of families that received pre22 ventive services from the State during the year.

23 ‘‘(5) The number of children who entered foster

24 care under the responsibility of the State during the

25 year.
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1 ‘‘(6) The number of children in foster care

2 under the responsibility of the State who exited from

3 foster care during the year.

4 ‘‘(7) The types of foster care placements made

5 by the State during the year, and the average

6 monthly number of children in each type of place7 ment.

8 ‘‘(8) The average length of the foster care

9 placements made by the State during the year.

10 ‘‘(9) The age, ethnicity, gender, and family in11 come of the children placed in foster care under the

12 responsibility of the State during the year.

13 ‘‘(10) The number of children in foster care

14 under the responsibility of the State with respect to

15 whom the State has the goal of adoption.

16 ‘‘(11) The number of children in foster care

17 under the responsibility of the State who were freed

18 for adoption during the year.

19 ‘‘(12) The number of children in foster care

20 under the responsibility of the State whose adoptions

21 were finalized during the year.

22 ‘‘(13) The number of disrupted adoptions in the

23 State during the year.

24 ‘‘(14) Quantitative measurements showing

25 whether the State is making progress toward the
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1 child protection goals identified by the State under

2 section 422(a)(9).

3 ‘‘(15) The number of infants abandoned in the

4 State during the year, and the number of such in5 fants who were legally adopted during the year and

6 the length of time between the discovery of the aban7 donment and such adoption.

8 ‘‘(16) The number of children who died during

9 the year while in foster care under the responsibility

10 of the State.

11 ‘‘(17) The number of deaths in the State dur12 ing the year resulting from child abuse or neglect.

13 ‘‘(18) The number of children served by the

14 independent living program of the State.

15 ‘‘(19) Any other information which the Sec16 retary and a majority of the States agree is appro17 priate to collect for purposes of this part.

18 ‘‘(20) The response of the State to the findings

19 and recommendations of the citizen review panels es20 tablished by the State pursuant to section 425.

21 ‘‘(c) AUTHORITY OF STATES TO USE ESTIMATES.—

22 A State may comply with a requirement to provide precise

23 numerical information described in subsection (b) by sub24 mitting an estimate which is obtained through the use of

25 scientifically acceptable sampling methods.
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1 ‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within

2 6 months after the end of each fiscal year, the Secretary

3 shall prepare a report based on information provided by

4 the States for the fiscal year pursuant to subsection (b),

5 and shall make the report and such information available

6 to the Congress and the public.

7 ‘‘(e) SCOPE OF STATE PROGRAM FUNDED UNDER

8 THIS PART.—As used in subsection (b), the term ‘State

9 program funded under this part’ includes any equivalent

10 State program.

11 ‘‘SEC. 428. RESEARCH AND TRAINING.

12 ‘‘(a) IN GENERAL.—The Secretary shall conduct re13 search and training in child welfare.

14 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO15 PRIATIONS.—To carry out subsection (a), there are au16 thorized to be appropriated to the Secretary not to exceed

17 $10,000,000 for each fiscal year.

18 ‘‘SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD

19 WELFARE.

20 ‘‘(a) IN GENERAL.—The Secretary shall conduct a

21 national study based on random samples of children who

22 are at risk of child abuse or neglect, or are determined

23 by States to have been abused or neglected.

24 ‘‘(b) REQUIREMENTS.—The study required by sub25 section (a) shall—
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1 ‘‘(1) have a longitudinal component; and

2 ‘‘(2) yield data reliable at the State level for as

3 many States as the Secretary determines is feasible.

4 ‘‘(c) PREFERRED CONTENTS.—In conducting the

5 study required by subsection (a), the Secretary should—

6 ‘‘(1) collect data on the child protection pro7 grams of different small States or (different groups

8 of such States) in different years to yield an occa9 sional picture of the child protection programs of

10 such States;

11 ‘‘(2) carefully consider selecting the sample

12 from cases of confirmed abuse or neglect; and

13 ‘‘(3) follow each case for several years while ob14 taining information on, among other things—

15 ‘‘(A) the type of abuse or neglect involved;

16 ‘‘(B) the frequency of contact with State

17 or local agencies;

18 ‘‘(C) whether the child involved has been

19 separated from the family, and, if so, under

20 what circumstances;

21 ‘‘(D) the number, type, and characteristics

22 of out-of-home placements of the child; and

23 ‘‘(E) the average duration of each place24 ment.

25 ‘‘(d) REPORTS.—
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1 ‘‘(1) IN GENERAL.—From time to time, the

2 Secretary shall prepare reports summarizing the re3 sults of the study required by subsection (a), and

4 should include in such reports a comparison of the

5 results of the study with the information reported by

6 States under section 427.

7 ‘‘(2) AVAILABILITY.—The Secretary shall make

8 available to the public any report prepared under

9 paragraph (1), in writing or in the form of an elec10 tronic data tape.

11 ‘‘(3) AUTHORITY TO CHARGE FEE.—The Sec12 retary may charge and collect a fee for the furnish13 ing of reports under paragraph (2).

14 ‘‘(e) FUNDING.—Out of any money in the Treasury

15 of the United States not otherwise appropriated, the Sec16 retary of the Treasury shall pay to the Secretary of Health

17 and Human Services $6,000,000 for each of fiscal years

18 1996 through 2000 to carry out this section.

19 ‘‘SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC

20 ADOPTION.

21 ‘‘(a) PURPOSE.—The purpose of this section is to de22 crease the length of time that children wait to be adopted

23 and to prevent discrimination in the placement of children

24 on the basis of race, color, or national origin.

25 ‘‘(b) MULTIETHNIC PLACEMENTS.—
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1 ‘‘(1) PROHIBITION.—A State or other entity

2 that receives funds from the Federal Government

3 and is involved in adoption or foster care placements

4 may not—

5 ‘‘(A) deny to any person the opportunity to

6 become an adoptive or a foster parent, on the

7 basis of the race, color, or national origin of the

8 person, or of the child, involved; or

9 ‘‘(B) delay or deny the placement of a

10 child for adoption or into foster care, or other11 wise discriminate in making a placement deci12 sion, on the basis of the race, color, or national

13 origin of the adoptive or foster parent, or the

14 child, involved.

15 ‘‘(2) PENALTIES.—

16 ‘‘(A) STATE VIOLATORS.—A State that

17 violates paragraph (1) during a period shall

18 remit to the Secretary all funds that were paid

19 to the State under this part during the period.

20 ‘‘(B) PRIVATE VIOLATORS.—Any other en21 tity that violates paragraph (1) during a period

22 shall remit to the Secretary all funds that were

23 paid to the entity during the period by a State

24 from funds provided under this part.

25 ‘‘(3) PRIVATE CAUSE OF ACTION.—
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1 ‘‘(A) IN GENERAL.—Any individual who is

2 aggrieved by a violation of paragraph (1) by a

3 State or other entity may bring an action seek4 ing relief in any United States district court.

5 ‘‘(B) STATUTE OF LIMITATIONS.—An ac6 tion under this paragraph may not be brought

7 more than 2 years after the date the alleged

8 violation occurred.’’.

9 SEC. 202. CONFORMING AMENDMENTS.

10 (a) AMENDMENTS TO PART D OF TITLE IV OF THE

11 SOCIAL SECURITY ACT.—

12 (1) Section 452(a)(10)(C) of the Social Security

13 Act (42 U.S.C. 652(a)(10)(C)), as amended by sec14 tion 104(b)(2)(C) of this Act, is amended—

15 (A) by striking ‘‘(or foster care mainte16 nance payments under part E)’’ and inserting

17 ‘‘or cash payments under a State program

18 funded under part B’’; and

19 (B) by striking ‘‘or 471(a)(17)’’.

20 (2) Section 452(g)(2)(A) of such Act (42

21 U.S.C. 652(g)(2)(A)) is amended—

22 (A) by striking ‘‘or E’’ the 1st place such

23 term appears and inserting ‘‘or benefits or serv24 ices are being provided under the State pro25 gram funded under part B’’; and
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1 (B) by striking ‘‘or E’’ the 2nd place such

2 term appears and inserting ‘‘or benefits or serv3 ices were being provided under the State pro4 gram funded under part B’’.

5 (3) Section 456(a)(1) of such Act (42 U.S.C.

6 656(a)(1)) is amended by striking ‘‘foster care main7 tenance payments’’ and inserting ‘‘benefits or serv8 ices under a State program funded under part B’’.

9 (4) Section 466(a)(3)(B) of such Act (42

10 U.S.C. 666(a)(3)(B)), as amended by section

11 104(b)(13) of this Act, is amended by striking ‘‘or

12 471(a)(17)’’.

13 (b) REPEAL OF PART E OF TITLE IV OF THE SOCIAL

14 SECURITY ACT.—Part E of title IV of such Act (42

15 U.S.C. 671–679) is hereby repealed.

16 (c) AMENDMENT TO TITLE XVI OF THE SOCIAL SE17 CURITY ACT AS IN EFFECT WITH RESPECT TO THE

18 STATES.—Section 1611(c)(5)(B) of such Act (42 U.S.C.

19 1382(c)(5)(B)) is amended to read as follows: ‘‘(B) the

20 State program funded under part B of title IV,’’.

21 (d) REPEAL OF SECTION 13712 OF THE OMNIBUS

22 BUDGET RECONCILIATION ACT OF 1993.—Section 13712

23 of the Omnibus Budget Reconciliation Act of 1993 (42

24 U.S.C. 670 note) is hereby repealed.
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1 (e) AMENDMENT TO SECTION 9442 OF THE OMNIBUS

2 BUDGET RECONCILIATION ACT OF 1986.—Section

3 9442(4) of the Omnibus Budget Reconciliation Act of

4 1986 (42 U.S.C. 679a(4)) is amended by inserting ‘‘(as

5 in effect before October 1, 1995)’’ after ‘‘Act’’.

6 (f) REPEAL OF SECTION 553 OF THE HOWARD M.

7 METZENBAUM MULTIETHNIC PLACEMENT ACT OF

8 1994.—Section 553 of the Howard M. Metzenbaum

9 Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108

10 Stat. 4056) is hereby repealed.

11 (g) REPEAL OF SUBTITLE C OF TITLE XVII OF THE

12 VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT

13 OF 1994.—Subtitle C of title XVII of the Violent Crime

14 Control and Law Enforcement Act of 1994 is hereby re15 pealed.

16 SEC. 203. CONTINUED APPLICATION OF CURRENT STAND17 ARDS UNDER MEDICAID PROGRAM.

18 Section 1931 of the Social Security Act, as inserted

19 by section 106(a)(2) of this Act, is amended—

20 (1) in subsection (a)(1)—

21 (A) by striking ‘‘part A of’’, and

22 (B) by striking ‘‘under such part’’ and in23 serting ‘‘under a part of such title’’; and

24 (2) in subsection (b), by striking ‘‘part A of’’.
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1 SEC. 204. EFFECTIVE DATE.

2 (a) IN GENERAL.—This title and the amendments

3 made by this title shall take effect on October 1, 1995.

4 (b) TRANSITION RULE.—The amendments made by

5 this title shall not apply with respect to—

6 (1) powers, duties, functions, rights, claims,

7 penalties, or obligations applicable to aid or services

8 provided before the effective date of this title under

9 the provisions amended; and

10 (2) administrative actions and proceedings com11 menced before such date, or authorized before such

12 date to be commenced, under such provisions.

13 SEC. 205. SENSE OF THE CONGRESS REGARDING TIMELY

14 ADOPTION OF CHILDREN.

15 It is the sense of the Congress that—

16 (1) too many children who wish to be adopted

17 are spending inordinate amounts of time in foster

18 care;

19 (2) there is an urgent need for States to in20 crease the number of waiting children being adopted

21 in a timely and lawful manner;

22 (3) studies have shown that States spend an ex23 cess of $15,000 each year on each special needs

24 child in foster care, and would save significant

25 amounts of money if they offered incentives to fami26 lies to adopt special needs children;
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1 (4) States should allocate sufficient funds under

2 this title for adoption assistance and medical assist3 ance to encourage more families to adopt children

4 who otherwise would languish in the foster care sys5 tem for a period that many experts consider det6 rimental to their development;

7 (5) States should offer incentives for families

8 that adopt special needs children to make adoption

9 more affordable for middle-class families;

10 (6) when it is necessary for a State to remove

11 a child from the home of the child’s biological par12 ents, the State should strive—

13 (A) to provide the child with a single foster

14 care placement and a single coordinated case

15 team; and

16 (B) to conclude an adoption of the child,

17 when adoption is the goal of the child and the

18 State, within one year of the child’s placement

19 in foster care; and

20 (7) States should participate in local, regional,

21 or national programs to enable maximum visibility of

22 waiting children to potential parents. Such programs

23 should include a nationwide, interactive computer

24 network to disseminate information on children eligi-
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1 ble for adoption to help match them with families

2 around the country.

3 TITLE III—BLOCK GRANTS FOR

4 CHILD CARE AND FOR NUTRI5 TION ASSISTANCE

6 Subtitle A—Child Care Block

7 Grants

8 SEC. 301. AMENDMENTS TO THE CHILD CARE AND DEVEL9 OPMENT BLOCK GRANT ACT OF 1990.

10 (a) GOALS.—Section 658A of the Child Care and De11 velopment Block Grant Act of 1990 (42 U.S.C. 9801 note)

12 is amended—

13 (1) in the heading of such section by inserting

14 ‘‘AND GOALS’’ after ‘‘TITLE’’,

15 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

16 ‘‘This’’, and

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

18 ‘‘(b) GOALS.—The goals of this subchapter are—

19 ‘‘(1) to allow each State maximum flexibility in

20 developing child care programs and policies that best

21 suit the needs of children and parents within such

22 State;

23 ‘‘(2) to promote parental choice to empower

24 working parents to make their own decisions on the

25 child care that best suits their family’s needs;
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1 ‘‘(3) to encourage States to provide consumer

2 education information to help parents make in3 formed choices about child care;

4 ‘‘(4) to assist States to provide child care to

5 parents trying to achieve independence from public

6 assistance; and

7 ‘‘(5) to assist States in implementing the

8 health, safety, licensing, and registration standards

9 established in State regulations.’’.

10 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

11 658B of the Child Care and Development Block Grant Act

12 of 1990 (42 U.S.C. 9858) is amended to read as follows:

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

14 ‘‘There is authorized to be appropriated to carry out

15 this subchapter $2,093,000,000 for each of the fiscal

16 years 1996, 1997, 1998, 1999, and 2000.’’.

17 (c) LEAD ENTITY.—Section 658D of the Child Care

18 and Development Block Grant Act of 1990 (42 U.S.C.

19 9858b) is amended—

20 (1) in the heading of such section by striking

21 ‘‘AGENCY’’ inserting ‘‘ENTITY’’,

22 (2) in subsection (a) by inserting ‘‘or other en23 tity’’ after ‘‘State agency’’, and

24 (3) by striking ‘‘lead agency’’ each place it ap25 pears and inserting ‘‘lead entity’’.
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1 (d) APPLICATION AND PLAN.—Section 658E of the

2 Child Care and Development Block Grant Act of 1990 (42

3 U.S.C. 9858c) is amended—

4 (1) in subsection (b)—

5 (A) by striking ‘‘implemented—’’ and all

6 that follows through ‘‘(2)’’ and inserting ‘‘im7 plemented’’, and

8 (B) by striking ‘‘for subsequent State

9 plans’’,

10 (2) in subsection (c)—

11 (A) in paragraph (1)—

12 (i) in the heading of such paragraph

13 by striking ‘‘AGENCY’’ and inserting ‘‘EN14 TITY’’, and

15 (ii) by striking ‘‘agency’’ and inserting

16 ‘‘entity’’,

17 (B) in paragraph (2)—

18 (i) in subparagraph (A)—

19 (I) in clause (i) by striking ‘‘,

20 other than through assistance pro21 vided under paragraph (3)(C),’’ and

22 (II) by striking ‘‘except’’ and all

23 that follows through ‘‘1992’’, and in24 serting ‘‘and provide a detailed de25 scription of the procedures the State
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1 will implement to carry out the re2 quirements of this subparagraph’’,

3 (ii) in subparagraph (B)—

4 (I) by striking ‘‘Provide assur5 ances’’ and inserting ‘‘Certify’’, and

6 (II) by inserting before the pe7 riod at the end ‘‘and provide a de8 tailed description of such procedures’’,

9 (iii) in subparagraph (C)—

10 (I) by striking ‘‘Provide assur11 ances’’ and inserting ‘‘Certify’’, and

12 (II) by inserting before the pe13 riod at the end ‘‘and provide a de14 tailed description of how such record

15 is maintained and is made available’’,

16 (iv) by amending subparagraph (D) to

17 read as follows:

18 ‘‘(D) CONSUMER EDUCATION INFORMA19 TION.—Provide assurances that the State will

20 collect and disseminate to parents of eligible

21 children and the general public, consumer edu22 cation information that will promote informed

23 child care choices.’’,

24 (v) in subparagraph (E)—
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1 (I) by striking ‘‘Provide assur2 ances’’ and inserting ‘‘Certify’’,

3 (II) in clause (i) by inserting

4 ‘‘health, safety, and’’ after ‘‘comply

5 with all’’,

6 (III) in clause (i) by striking ‘‘;

7 and’’ at the end,

8 (IV) by striking ‘‘that—’’ and all

9 that follows through ‘‘(i)’’, and insert10 ing ‘‘that’’, and

11 (V) by striking ‘‘(ii)’’ and all that

12 follows through the end of such sub13 paragraph, and inserting ‘‘and provide

14 a detailed description of such require15 ments and of how such requirements

16 are effectively enforced.’’, and

17 (vi) by striking subparagraphs (F),

18 (G), (H), (I), and (J),

19 (C) in paragraph (3)—

20 (i) in subparagraph (A) by inserting

21 ‘‘or as authorized by section 658T’’ before

22 the period at the end,

23 (ii) in subparagraph (B)—

24 (I) by striking ‘‘.—Subject to the

25 reservation contained in subparagraph
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1 (C), the’’ and inserting ‘‘AND RELAT2 ED ACTIVITIES.—The’’,

3 (II) by inserting ‘‘, other than

4 amounts transferred under section

5 658T,’’ after ‘‘subchapter’’,

6 (III) in clause (i) by striking ‘‘;

7 and’’ at the end and inserting a pe8 riod,

9 (IV) by striking ‘‘for—’’ and all

10 that follows through ‘‘section

11 658E(c)(2)(A)’’ and inserting ‘‘for

12 child care services, activities that im13 prove the quality or availability of

14 such services, and any other activity

15 that the State deems appropriate to

16 realize any of the goals specified in

17 paragraphs (2) through (5) of section

18 658A(b)’’, and

19 (V) by striking clause (ii), and

20 (iii) by amending subparagraph (C) to

21 read as follows:

22 ‘‘(C) LIMITATION ON ADMINISTRATIVE

23 COSTS.—Not more than 5 percent of the aggre24 gate amount of payments received under this

25 subchapter by a State in each fiscal year may
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1 be expended for administrative costs incurred

2 by such State to carry out all its functions and

3 duties under this subchapter.’’,

4 (D) in paragraph (4)(A)—

5 (i) by striking ‘‘provide assurances’’

6 and inserting ‘‘certify’’,

7 (ii) in the first sentence by inserting

8 ‘‘and shall provide a summary of the facts

9 relied on by the State to determine that

10 such rates are sufficient to ensure such ac11 cess’’ before the period, and

12 (iii) by striking the last sentence, and

13 (E) by striking paragraph (5).

14 (e) LIMITATIONS ON STATE ALLOTMENTS—Section

15 658F(b)(2) of the Child Care and Development Block

16 Grant Act of 1990 (42 U.S.C. 9858d(b)(2)) is amended

17 by striking ‘‘referred to in section 658E(c)(2)(F)’’.

18 (f) REPEAL OF EARMARKED REQUIRED EXPENDI19 TURES.—The Child Care and Development Block Grant

20 Act of 1990 (42 U.S.C. 9801 note) is amended by striking

21 sections 658G and 658H.

22 (g) ADMINISTRATION AND ENFORCEMENT.—Section

23 658I(a) of the Child Care and Development Block Grant

24 Act of 1990 (42 U.S.C. 9858g(a)) is amended—
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1 (1) in paragraph (1) by inserting ‘‘and’’ at the

2 end,

3 (2) by striking paragraph (2), and

4 (3) by redesignating paragraph (3) as para5 graph (2).

6 (h) PAYMENTS.—Section 658J(c) of the Child Care

7 and Development Block Grant Act of 1990 (42 U.S.C.

8 9858h(c)) is amended—

9 (1) by striking ‘‘expended’’ and inserting ‘‘obli10 gated’’, and

11 (2) by striking ‘‘3 fiscal years’’ and inserting

12 ‘‘fiscal year’’.

13 (i) ANNUAL REPORT AND AUDITS.—Section 658K of

14 the Child Care and Development Block Grant Act of 1990

15 (42 U.S.C. 9858i) is amended—

16 (1) in the heading of such section by inserting

17 ‘‘, EVALUATION PLANS,’’ after ‘‘REPORT’’,

18 (2) in subsection (a)—

19 (A) by striking ‘‘, 1992’’ and inserting

20 ‘‘following the end of the first fiscal year with

21 respect to which the amendments made by the

22 Personal Responsibility Act of 1995 apply’’,

23 (B) by amending paragraph (2) to read as

24 follows:
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1 ‘‘(2) containing data on the manner in which

2 the child care needs of families in the State are

3 being fulfilled, including information concerning—

4 ‘‘(A) the number and ages of children

5 being assisted with funds provided under this

6 subchapter;

7 ‘‘(B) with respect to the families of such

8 children—

9 ‘‘(i) the number of other children in

10 such families;

11 ‘‘(ii) the number of such families that

12 include only 1 parent;

13 ‘‘(iii) the number of such families that

14 include both parents;

15 ‘‘(iv) the ages of the mothers of such

16 children;

17 ‘‘(v) the ages of the fathers of such

18 children;

19 ‘‘(vi) the sources of the economic re20 sources of such families, including the

21 amount of such resources obtained from

22 (and separately identified as being from)—

23 ‘‘(I) employment, including self24 employment;
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1 ‘‘(II) assistance received under

2 part A of title IV of the Social Secu3 rity Act (42 U.S.C. 601 et seq.);

4 ‘‘(III) part B of title IV of the

5 Social Security Act (42 U.S.C. 621 et

6 seq.);

7 ‘‘(IV) the Child Nutrition Act of

8 1966 (42 U.S.C. 1771 et seq.);

9 ‘‘(V) the National School Lunch

10 Act (42 U.S.C. 1751 et seq.);

11 ‘‘(VI) assistance received under

12 title XVI of the Social Security Act

13 (42 U.S.C. 1381 et seq.);

14 ‘‘(VII) assistance received under

15 title XIV of the Social Security Act

16 (42 U.S.C. 1351 et seq.);

17 ‘‘(VIII) assistance received under

18 title XIX of the Social Security Act

19 (42 U.S.C. 1396 et seq.);

20 ‘‘(IX) assistance received under

21 title XX of the Social Security Act

22 (42 U.S.C. 1397 et seq.); and

23 ‘‘(X) any other source of eco24 nomic resources the Secretary deter25 mines to be appropriate;
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1 ‘‘(C) the number of such providers sepa2 rately identified with respect to each type of

3 child care provider specified in section 658P(5)

4 that provided child care services obtained with

5 assistance provided under this subchapter;

6 ‘‘(D) with respect to cost of such serv7 ices—

8 ‘‘(i) the cost imposed by such provid9 ers to provide such services; and

10 ‘‘(ii) the portion of such cost paid

11 with assistance provided under this sub12 chapter;

13 ‘‘(E) with respect to consumer education

14 information described in section 658E(c)(2)(D)

15 provided by such State—

16 ‘‘(i) the manner in which such infor17 mation was provided; and

18 ‘‘(ii) the number of parents to whom

19 such information was provided; and

20 ‘‘(F) with respect to complaints received by

21 such State regarding child care services ob22 tained with assistance provided under this sub23 chapter—

24 ‘‘(i) the number of such complaints

25 that were found to have merit; and
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1 ‘‘(ii) a description of the actions taken

2 by the State to correct the circumstances

3 on which such complaints were based.’’,

4 (C) by striking paragraphs (3), (4), (5),

5 and (6) and inserting the following:

6 ‘‘(3) containing evidence demonstrating that the

7 State satisfied the requirements of section

8 658E(c)(2)(F); and

9 ‘‘(4) identifying each State program operated

10 under a provision of law specified in section 658T to

11 which the State transferred funds under the author12 ity of such section, specifying the amount of funds

13 so transferred to such program, and containing a

14 justification for so transferring such amount;’’, and

15 (3) in subsection (b)—

16 (A) in paragraph (1) by striking ‘‘a appli17 cation’’ and inserting ‘‘an application’’,

18 (B) in paragraph (2) by striking ‘‘any

19 agency administering activities that receive’’

20 and inserting ‘‘the State that receives’’, and

21 (C) in paragraph (4) by striking ‘‘entitles’’

22 and inserting ‘‘entitled’’, and

23 (4) by redesignating subsection (b) as sub24 section (c), and
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1 (5) by inserting after subsection (a) the follow2 ing:

3 ‘‘(b) STATE EVALUATION PLAN AND EVALUATION

4 RESULTS.—

5 ‘‘(1) EVALUATION PLAN.—In the first report

6 submitted under subsection (a) after the date of the

7 enactment of the Personal Responsibility Act of

8 1995, and in the report for each alternating 1-year

9 period thereafter, the State shall include a plan the

10 State intends to carry out in the 1-year period sub11 sequent to the period for which such report is sub12 mitted, to evaluate the extent to which the State has

13 realized each of the goals specified in paragraphs (2)

14 through (5) of section 658A(b). The State shall in15 clude in such plan a description of the types of data

16 and other information the State will collect to deter17 mine whether the State has realized such goals.

18 ‘‘(2) EVALUATION RESULTS.—In the second re19 port submitted under subsection (a) after the date

20 of the enactment of the Personal Responsibility Act

21 of 1995, and in the report for each alternating 1-

22 year period thereafter, the State shall include a sum23 mary of the results of an evaluation carried out

24 under the evaluation plan contained in the report
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1 submitted under subsection (a) for the preceding 1-

2 year period.’’.

3 (j) REPORT BY SECRETARY.—Section 658L of the

4 Child Care and Development Block Grant Act of 1990 (42

5 U.S.C. 9858j) is amended—

6 (1) by striking ‘‘, 1993, and annually’’ and in7 serting ‘‘following the end of the second fiscal year

8 with respect to which the amendments made by the

9 Personal Responsibility Act of 1995 apply, and bien10 nially’’,

11 (2) by striking ‘‘Committee on Education and

12 Labor’’ and inserting ‘‘Speaker’’,

13 (3) by striking ‘‘Committee on Labor and

14 Human Resources’’ and inserting ‘‘President pro

15 tempore’’, and

16 (4) by striking the last sentence.

17 (k) REALLOTMENTS.—Section 658O of the Child

18 Care and Development Block Grant Act of 1990 (42

19 U.S.C. 9858m) is amended—

20 (1) in subsection (a)(1)—

21 (A) by striking ‘‘POSSESSIONS’’ and insert22 ing ‘‘POSSESSIONS’’,

23 (B) by inserting ‘‘and’’ after ‘‘States,’’,

24 and
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1 (C) by striking ‘‘, and the Trust Territory

2 of the Pacific Islands’’,

3 (2) by amending subsection (b) to read as fol4 lows:

5 ‘‘(b) STATE ALLOTMENT.—From the amount appro6 priated under section 658B for each fiscal year remaining

7 after reservations under subsection (a), the Secretary shall

8 allot to each State (excluding Guam, American Samoa, the

9 Virgin Islands of the United States, and the Common10 wealth of the Northern Mariana Islands) an amount that

11 bears the same ratio to the amount so appropriated for

12 such fiscal year as the aggregate of the amounts received

13 by the State under—

14 ‘‘(1) this subchapter for fiscal year 1994;

15 ‘‘(2) section 403 of the Social Security Act,

16 with respect to expenditures by the State for child

17 care under section 402(g)(1) of such Act during fis18 cal year 1994; and

19 ‘‘(3) section 403(n) of the Social Security Act

20 for fiscal year 1994;

21 bears to the aggregate of the amounts received by all the

22 States (excluding Guam, American Samoa, the Virgin Is23 lands of the United States, and the Commonwealth of the

24 Northern Mariana Islands) under paragraphs (1), (2), and

25 (3).’’,
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1 (3) in subsection (c)—

2 (A) in paragraph (2)(A) by striking ‘‘agen3 cy’’ and inserting ‘‘entity’’, and

4 (B) in paragraph (5) by striking ‘‘our’’

5 and inserting ‘‘out’’,

6 (4) by striking subsection (e), and

7 (5) by redesignating subsection (f) as sub8 section (e).

9 (l) DEFINITIONS.—Section 658P of the Child Care

10 and Development Block Grant Act of 1990 (42 U.S.C.

11 9858n) is amended—

12 (1) in paragraph (5)(A)—

13 (A) in clause (i) by striking ‘‘and’’ at the

14 end and inserting ‘‘or’’,

15 (B) by striking ‘‘that—’’ and all that fol16 lows through ‘‘(i)’’, and inserting ‘‘that’’, and

17 (C) by striking clause (ii),

18 (2) by amending paragraph (8) to read as fol19 lows:

20 ‘‘(8) LEAD ENTITY.—The term ‘lead entity’

21 means the State agency or other entity designated

22 under section 658B(a).’’,

23 (3) by striking paragraphs (3), (10), and (12),

24 (4) by inserting after paragraph (2) the follow25 ing:
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1 ‘‘(3) CHILD CARE SERVICES.—The term ‘child

2 care services’ means services that constitute physical

3 care of a child and may include services that are de4 signed to enhance the educational, social, cultural,

5 emotional, and recreational development of a child

6 but that are not intended to serve as a substitute for

7 compulsory educational services.’’,

8 (5) in paragraph (13)—

9 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’, and

10 (B) by striking ‘‘, and the Trust Territory

11 of the Pacific Islands’’, and

12 (6) by redesignating paragraphs (11), (13), and

13 (14) as paragraphs (10), (11), and (12), respec14 tively.

15 (m) AUTHORITY TO TRANSFER FUNDS.—The Child

16 Care and Development Block Grant Act of 1990 (42

17 U.S.C. 9858 et seq.) is amended by inserting after section

18 658S the following:

19 ‘‘SEC. 658T. TRANSFER OF FUNDS.

20 ‘‘(a) AUTHORITY.—Of the aggregate amount of pay21 ments received under this subchapter by a State in each

22 fiscal year, the State may transfer not more than 20 per23 cent for use by the State to carry out State programs

24 under 1 or more of the following provisions of law:
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1 ‘‘(1) Part A of title IV of the Social Security

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

3 ‘‘(2) Part B of title IV of the Social Security

4 Act (42 U.S.C. 621 et seq.).

5 ‘‘(3) The Child Nutrition Act of 1966 (42

6 U.S.C. 1771 et seq.).

7 ‘‘(4) The National School Lunch Act (42

8 U.S.C. 1751 et seq.).

9 ‘‘(5) Title XX of the Social Security Act (42

10 U.S.C. 1397 et seq.).

11 ‘‘(b) REQUIREMENTS APPLICABLE TO FUNDS

12 TRANSFERRED.—Funds transferred under subsection (a)

13 to carry out a State program operated under a provision

14 of law specified in such subsection shall not be subject to

15 the requirements of this subchapter, but shall be subject

16 to the same requirements that apply to Federal funds pro17 vided directly under such provision of law to carry out

18 such program.’’.

19 SEC. 302. REPEAL OF CHILD CARE ASSISTANCE AUTHOR20 IZED BY ACTS OTHER THAN THE SOCIAL SE21 CURITY ACT.

22 (a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

23 ASSISTANCE ACT OF 1985.—Title VI of the Human Serv24 ices Reauthorization Act of 1986 (42 U.S.C. 10901–

25 10905) is repealed.
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1 (b) STATE DEPENDENT CARE DEVELOPMENT

2 GRANTS ACT.—Subchapter E of chapter 8 of subtitle A

3 of title VI of the Omnibus Budget Reconciliation Act of

4 1981 (42 U.S.C. 9871–9877) is repealed.

5 (c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title

6 X of the Elementary and Secondary Education Act of

7 1965, as amended by Public Law 103–382 (108 Stat.

8 3809 et seq.), is amended—

9 (1) in section 10413(a) by striking paragraph

10 (4),

11 (2) in section 10963(b)(2) by striking subpara12 graph (G), and

13 (3) in section 10974(a)(6) by striking subpara14 graph (G).

15 (d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION

16 CENTERS.—Section 9205 of the Native Hawaiian Edu17 cation Act (Public Law 103–382; 108 Stat. 3794) is re18 pealed.

19 Subtitle B—Family and School20 Based Nutrition Block Grants

21 CHAPTER 1—FAMILY NUTRITION BLOCK

22 GRANT PROGRAM

23 SEC. 321. AMENDMENT TO CHILD NUTRITION ACT OF 1966.

24 The Child Nutrition Act of 1966 (42 U.S.C. 1771

25 et seq.) is amended to read as follows:
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1 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘Child Nutrition Act of 1966’.

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

5 is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Authorization.

‘‘Sec. 3. Allotment.

‘‘Sec. 4. Application.

‘‘Sec. 5. Use of amounts.

‘‘Sec. 6. Reports.

‘‘Sec. 7. Penalties.

‘‘Sec. 8. Model nutrition standards for food assistance for pregnant,

postpartum, and breastfeeding women, infants and children.

‘‘Sec. 9. Authorization of appropriations.

‘‘Sec. 10. Definitions.

6 ‘‘SEC. 2. AUTHORIZATION.

7 ‘‘(a) IN GENERAL.—In the case of each State that

8 in accordance with section 4 submits to the Secretary of

9 Agriculture an application for a fiscal year, the Secretary

10 shall provide a grant for the year to the State for the pur11 pose of achieving the goals described in subsection (b).

12 The grant shall consist of the allotment determined for

13 the State under section 3.

14 ‘‘(b) GOALS.—The goals of this Act are—

15 ‘‘(1) to provide nutritional risk assessment, food

16 assistance based on such risk assessment, and nutri17 tion education and counseling to economically dis18 advantaged pregnant women, postpartum women,

19 breastfeeding women, infants, and young children

20 who are determined to be at nutritional risk;
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1 ‘‘(2) to provide nutritional risk assessments of

2 such women in order to provide food assistance and

3 nutrition education which meets their specific needs;

4 ‘‘(3) to provide nutrition education to such

5 women in order to increase their awareness of the

6 types of foods which should be consumed to main7 tain good health;

8 ‘‘(4) to provide food assistance, including nutri9 tious meal supplements, to such women in order to

10 reduce incidences of low-birthweight babies and ba11 bies born with birth defects as a result of nutritional

12 deficiencies;

13 ‘‘(5) to provide food assistance, including nutri14 tious meal supplements, to such women, infants, and

15 young children in order to ensure their future good

16 health;

17 ‘‘(6) to ensure that such women, infants, and

18 children are referred to other health services, includ19 ing routine pediatric and obstetric care, when nec20 essary;

21 ‘‘(7) to ensure that children from economically

22 disadvantaged families in day care facilities, family

23 day care homes, homeless shelters, settlement

24 houses, recreational centers, Head Start centers,

25 Even Start programs and child care facilities for
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1 children with disabilities receive nutritious meals,

2 supplements, and low-cost milk; and

3 ‘‘(8) to provide summer food service programs

4 to meet the nutritional needs of children from eco5 nomically disadvantaged families during months

6 when school is not in session.

7 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

8 provide payments under a grant under this Act to States

9 on a quarterly basis.

10 ‘‘SEC. 3. ALLOTMENT.

11 ‘‘The Secretary shall allot the amount appropriated

12 to carry out this Act for a fiscal year among the States

13 as follows:

14 ‘‘(1) FIRST FISCAL YEAR.—

15 ‘‘(A) IN GENERAL.—With respect to the

16 first fiscal year for which the Secretary provides

17 grants to States under this Act, the amount al18 lotted to each State shall bear the same propor19 tion to such amount appropriated as the aggre20 gate of the amounts described in subparagraph

21 (B) that were received by each such State

22 under the provisions of law described in such

23 subparagraph (as such provisions of law were in

24 effect on the day before the date of the enact25 ment of the Personal Responsibility Act of
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1 1995) for the preceding fiscal year bears to the

2 aggregate of the amounts described in subpara3 graph (B) that were received by all such States

4 under such provisions of law for such preceding

5 fiscal year.

6 ‘‘(B) AMOUNTS DESCRIBED.—The

7 amounts described in this subparagraph are the

8 following:

9 ‘‘(i) The amount received under the

10 special supplemental nutrition program for

11 women, infants, and children under section

12 17 of this Act (42 U.S.C. 1786).

13 ‘‘(ii) The amount received under the

14 homeless children nutrition program estab15 lished under section 17B of the National

16 School Lunch Act (42 U.S.C. 1766b).

17 ‘‘(iii) 87.5 percent of the sum of the

18 amounts received under the following pro19 grams:

20 ‘‘(I) The child and adult care

21 food program under section 17 of the

22 National School Lunch Act (42

23 U.S.C. 1766), except for subsection

24 (o) of such section.
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1 ‘‘(II) The summer food service

2 program for children established

3 under section 13 of the National

4 School Lunch Act (42 U.S.C. 1761).

5 ‘‘(III) The special milk program

6 established under section 3 of this Act

7 (42 U.S.C. 1772).

8 ‘‘(2) SECOND FISCAL YEAR.—With respect to

9 the second fiscal year for which the Secretary pro10 vides grants to States under this Act—

11 ‘‘(A) 95 percent of such amount appro12 priated shall be allotted among the States by al13 lotting to each State an amount that bears the

14 same proportion to such amount appropriated

15 as the amount allotted to each such State from

16 a grant under this Act for the preceding fiscal

17 year bears to the aggregate of the amounts al18 lotted to all such States from grants under this

19 Act for such preceding fiscal year; and

20 ‘‘(B) 5 percent of such amount appro21 priated shall be allotted among the States by al22 lotting to each State an amount that bears the

23 same proportion to such amount appropriated

24 as the relative number of individuals receiving

25 assistance during the 1-year period ending on
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1 June 30 of the preceding fiscal year in such

2 State from amounts received from a grant

3 under this Act for such preceding fiscal year

4 bears to the total number of individuals receiv5 ing assistance in all States from amounts re6 ceived from grants under this Act for the pre7 ceding fiscal year.

8 ‘‘(3) THIRD AND FOURTH FISCAL YEARS.—

9 With respect to each of the third and fourth fiscal

10 years for which the Secretary provides grants to

11 States under this Act—

12 ‘‘(A) 90 percent of such amount appro13 priated shall be allotted among the States by al14 lotting to each State an amount determined in

15 accordance with the formula described in para16 graph (2)(A); and

17 ‘‘(B) 10 percent of such amount appro18 priated shall be allotted among the States by al19 lotting to each State an amount determined in

20 accordance with the formula described in para21 graph (2)(B).

22 ‘‘(4) FIFTH FISCAL YEAR.—With respect to the

23 fifth fiscal year for which the Secretary provides

24 grants to States under this Act—
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1 ‘‘(A) 85 percent of such amount appro2 priated shall be allotted among the States by al3 lotting to each State an amount determined in

4 accordance with the formula described in para5 graph (2)(A); and

6 ‘‘(B) 15 percent of such amount appro7 priated shall be allotted among the States by al8 lotting to each State an amount determined in

9 accordance with the formula described in para10 graph (2)(B).

11 ‘‘SEC. 4. APPLICATION.

12 ‘‘The Secretary may provide a grant under this Act

13 to a State for a fiscal year only if the State submits to

14 the Secretary an application containing only—

15 ‘‘(1) an agreement that the State will use

16 amounts received from such grant in accordance

17 with section 5;

18 ‘‘(2) except as provided in paragraph (3), an

19 agreement that the State will set minimum nutri20 tional requirements for food assistance provided

21 under this Act based on the most recent tested nu22 tritional research available, except that—

23 ‘‘(A) such requirements shall not be con24 strued to prohibit the substitution of foods to
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1 accommodate the medical or other special die2 tary needs of individual students; and

3 ‘‘(B) such requirements shall, at a mini4 mum, be based on—

5 ‘‘(i) the weekly average of the nutrient

6 content of school lunches; or

7 ‘‘(ii) such other standards as the

8 State may prescribe;

9 ‘‘(3) an agreement that the State, with respect

10 to the provision of food assistance to economically

11 disadvantaged pregnant women, postpartum women,

12 breastfeeding women, infants, and young children,

13 shall—

14 ‘‘(A) implement the minimum nutritional

15 requirements described in paragraph (2) for

16 such food assistance; or

17 ‘‘(B) implement the model nutrition stand18 ards developed under section 8 for such food as19 sistance;

20 ‘‘(4) an agreement that the State will take such

21 reasonable steps as the State deems necessary to re22 strict the use and disclosure of information about in23 dividuals and families receiving assistance under this

24 Act;
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1 ‘‘(5) an agreement that the State will use not

2 more than 5 percent of the amount of such grant for

3 administrative costs incurred to provide assistance

4 under this Act, except that costs associated with the

5 nutritional risk assessment of individuals described

6 in section 5(a)(1) and costs associated with nutrition

7 education and counseling provided to such individ8 uals shall not be considered to be administrative

9 costs; and

10 ‘‘(6) an agreement that the State will submit to

11 the Secretary a report in accordance with section 6.

12 ‘‘SEC. 5. USE OF AMOUNTS.

13 ‘‘(a) IN GENERAL.—The Secretary may provide a

14 grant under this Act to a State only if the State agrees

15 that it will use all amounts received from such grant—

16 ‘‘(1) subject to subsection (b), to provide nutri17 tional risk assessment, food assistance based on such

18 risk assessment, and nutrition education and coun19 seling to economically disadvantaged pregnant

20 women, postpartum women, breastfeeding women,

21 infants, and young children who are determined to

22 be at nutritional risk;

23 ‘‘(2) to provide milk in nonprofit nursery

24 schools, child care centers, settlement houses, sum25 mer camps, and similar institutions devoted to the
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1 care and training of children, to children from eco2 nomically disadvantaged families;

3 ‘‘(3) to provide food service programs in institu4 tions and family day care homes providing child care

5 to children from economically disadvantaged fami6 lies;

7 ‘‘(4) to provide summer food service programs

8 carried out by nonprofit food authorities, local gov9 ernments, nonprofit higher education institutions

10 participating in the National Youth Sports Program,

11 and residential nonprofit summer camps to children

12 from economically disadvantaged families; and

13 ‘‘(5) to provide nutritious meals to pre-school

14 age homeless children in shelters and other facilities

15 serving the homeless population.

16 ‘‘(b) ADDITIONAL REQUIREMENTS WITH RESPECT

17 TO ASSISTANCE FOR PREGNANT, POSTPARTUM, AND

18 BREASTFEEDING WOMEN, INFANTS, AND CHILDREN.—

19 ‘‘(1) MINIMUM AMOUNT OF ASSISTANCE.—The

20 State shall ensure that not less than 80 percent of

21 the amount of the grant is used to provide nutri22 tional risk assessment, food assistance based on such

23 nutritional risk assessment, and nutrition education

24 and counseling to economically disadvantaged preg25 nant women, postpartum women, breastfeeding
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1 women, infants, and young children under sub2 section (a)(1).

3 ‘‘(2) COST CONTAINMENT MEASURES REGARD4 ING PROCUREMENT OF INFANT FORMULA.—

5 ‘‘(A) IN GENERAL.—The State shall, with

6 respect to the provision of food assistance to

7 economically disadvantaged pregnant women,

8 postpartum women, breastfeeding women, in9 fants, and young children under subsection

10 (a)(1), establish and carry out a cost contain11 ment system for the procurement of infant for12 mula.

13 ‘‘(B) USE OF AMOUNTS RESULTING FROM

14 SAVINGS.—The State shall use amounts avail15 able to the State as result of savings in costs

16 to the State from the implementation of the

17 cost containment system described in subpara18 graph (A) for the purpose of providing the as19 sistance described in paragraphs (1) through

20 (5) of subsection (a).

21 ‘‘(C) ANNUAL REPORTS.—The State shall

22 submit to the Secretary for each fiscal year a

23 report containing—

24 ‘‘(i) a description of the cost contain25 ment system for infant formula imple-
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1 mented by the State in accordance with

2 subparagraph (A) for such fiscal year; and

3 ‘‘(ii) the estimated amount of savings

4 in costs derived by the State in providing

5 food assistance described in such subpara6 graph under such cost containment system

7 for such fiscal year as compared to the

8 amount of such savings derived by the

9 State under the cost containment system

10 for the preceding fiscal year, where appro11 priate.

12 ‘‘(3) ASSISTANCE FOR MEMBERS OF THE

13 ARMED FORCES AND THEIR DEPENDENTS.—The

14 State shall ensure that assistance described in sub15 section (a)(1) is provided to members of the Armed

16 Forces and dependents of such members (regardless

17 of the State of residence of such members or de18 pendents) who meet the requirements of such sub19 section on an equitable basis with assistance pro20 vided to all other individuals under such subsection

21 in such State.

22 ‘‘(c) ADDITIONAL REQUIREMENT WITH RESPECT TO

23 CHILD CARE ASSISTANCE ON MILITARY INSTALLA24 TIONS.—
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1 ‘‘(1) IN GENERAL.—To the extent consistent

2 with the number of children who are receiving assist3 ance under child care programs established and car4 ried out on military installations in such State by

5 the Department of Defense, the State, after timely

6 and appropriate consultation with representatives of

7 such programs, shall provide assistance to such pro8 grams for such children (regardless of the State of

9 residence of such children) in accordance with sub10 section (a)(3) on an equitable basis with assistance

11 provided in accordance with such subsection to all

12 other child care programs carried out in such State.

13 ‘‘(2) LIMITATION.—In providing assistance to a

14 child care program established and carried out on a

15 military installation under paragraph (1), a State

16 shall not require that such program be licensed

17 under State law if such program is licensed by the

18 Department of Defense.

19 ‘‘(d) AUTHORITY TO USE AMOUNTS FOR OTHER

20 PURPOSES.—

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

22 and (3), a State may use not more than 20 percent

23 of amounts received from a grant under this Act for

24 a fiscal year to carry out a State program pursuant

25 to any or all of the following provisions of law:
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1 ‘‘(A) Part A of title IV of the Social Secu2 rity Act (42 U.S.C. 601 et seq.).

3 ‘‘(B) Part B of title IV of the Social Secu4 rity Act (42 U.S.C. 621 et seq.).

5 ‘‘(C) Title XX of the Social Security Act

6 (42 U.S.C. 1397 et seq.).

7 ‘‘(D) The National School Lunch Act (42

8 U.S.C. 1751 et seq.).

9 ‘‘(E) The Child Care and Development

10 Block Grant Act of 1990 (42 U.S.C. 9858 et

11 seq.).

12 ‘‘(2) SUFFICIENT FUNDING DETERMINATION.—

13 Prior to using any amounts received from a grant

14 under this Act for a fiscal year to carry out a State

15 program pursuant to any or all of the provisions of

16 law described in paragraph (1), the appropriate

17 State agency shall make a determination that suffi18 cient amounts will remain available for such fiscal

19 year to carry out this Act.

20 ‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR

21 OTHER PURPOSES.—Amounts paid to the State

22 under a grant under this Act that are used to carry

23 out a State program pursuant to a provision of law

24 specified in paragraph (1) shall not be subject to the

25 requirements of this Act, but shall be subject to the
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1 same requirements that apply to Federal funds pro2 vided directly under the provision of law to carry out

3 the program.

4 ‘‘SEC. 6. REPORTS.

5 ‘‘The Secretary may provide a grant under this Act

6 to a State for a fiscal year only if the State agrees that

7 it will submit, for such fiscal year, a report to the Sec8 retary describing—

9 ‘‘(1) the number of individuals receiving assist10 ance under the grant in accordance with each of

11 paragraphs (1) through (5) of section 5(a);

12 ‘‘(2) the different types of assistance provided

13 to such individuals in accordance with such para14 graphs;

15 ‘‘(3) the extent to which such assistance was ef16 fective in achieving the goals described in section

17 2(b);

18 ‘‘(4) the standards and methods the State is

19 using to ensure the nutritional quality of such assist20 ance, including meals and supplements;

21 ‘‘(5) the number of low birthweight births in

22 the State in such fiscal year compared to the num23 ber of such births in the State in the previous fiscal

24 year; and
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1 ‘‘(6) any other information which can be rea2 sonably required by the Secretary.

3 ‘‘SEC. 7. PENALTIES.

4 ‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION

5 OF THIS ACT.—

6 ‘‘(1) IN GENERAL.—The Secretary shall reduce

7 the amounts otherwise payable to a State under a

8 grant under this Act by any amount paid to the

9 State under this Act which an audit conducted pur10 suant to chapter 75 of title 31, United States Code,

11 finds has been used in violation of this Act.

12 ‘‘(2) LIMITATION.—In carrying out paragraph

13 (1), the Secretary shall not reduce any quarterly

14 payment by more than 25 percent.

15 ‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED

16 REPORT.—The Secretary shall reduce by 3 percent the

17 amount otherwise payable to a State under a grant under

18 this Act for a fiscal year if the Secretary determines that

19 the State has not submitted the report required by section

20 6 for the immediately preceding fiscal year, within 6

21 months after the end of the immediately preceding fiscal

22 year.
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1 ‘‘SEC. 8. MODEL NUTRITION STANDARDS FOR FOOD ASSIST2 ANCE FOR PREGNANT, POSTPARTUM, AND

3 BREASTFEEDING WOMEN, INFANTS AND

4 CHILDREN.

5 ‘‘(a) IN GENERAL.—Not later than April 1, 1996, the

6 Food and Nutrition Board of the Institute of Medicine of

7 the National Academy of Sciences, in cooperation with pe8 diatricians, obstetricians, nutritionists, and directors of

9 programs providing nutritional risk assessment, food as10 sistance, and nutrition education and counseling to eco11 nomically disadvantaged pregnant women, postpartum

12 women, breastfeeding women, infants, and young children,

13 shall develop model nutrition standards for food assistance

14 provided to such women, infants, and children under this

15 Act.

16 ‘‘(b) REQUIREMENT.—Such model nutrition stand17 ards shall require that food assistance provided to such

18 women, infants, and children contain nutrients that are

19 lacking in the diets of such women, infants, and children,

20 as determined by nutritional research.

21 ‘‘(c) REPORT TO CONGRESS.—Not later than 1 year

22 after the date on which the model nutrition standards are

23 developed under subsection (a), the Food and Nutrition

24 Board of the Institute of Medicine of the National Acad25 emy of Sciences shall prepare and submit to the Congress
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1 a report regarding the efforts of States to implement such

2 model nutrition standards.

3 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘(a) IN GENERAL.—There are authorized to be ap5 propriated to carry out this Act $4,606,000,000 for fiscal

6 year 1996, $4,777,000,000 for fiscal year 1997,

7 $4,936,000,000 for fiscal year 1998, $5,120,000,000 for

8 fiscal year 1999, and $5,308,000,000 for fiscal year 2000.

9 ‘‘(b) AVAILABILITY.—Amounts authorized to be ap10 propriated under subsection (a) are authorized to remain

11 available until the end of the fiscal year subsequent to the

12 fiscal year for which such amounts are appropriated.

13 ‘‘SEC. 10. DEFINITIONS.

14 ‘‘For purposes of this Act:

15 ‘‘(1) BREASTFEEDING WOMEN.—The term

16 ‘breastfeeding women’ means women up to 1 year

17 postpartum who are breastfeeding their infants.

18 ‘‘(2) ECONOMICALLY DISADVANTAGED.—The

19 term ‘economically disadvantaged’ means an individ20 ual or a family, as the case may be, whose annual

21 income does not exceed 185 percent of the applicable

22 family size income levels contained in the most re23 cent income poverty guidelines prescribed by the Of24 fice of Management and Budget and based on data

25 from the Bureau of the Census.
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1 ‘‘(3) INFANTS.—The term ‘infants’ means indi2 viduals under 1 year of age.

3 ‘‘(4) POSTPARTUM WOMEN.—The term

4 ‘postpartum women’ means women who are in the

5 180-day period beginning on the termination of

6 pregnancy.

7 ‘‘(5) PREGNANT WOMEN.—The term ‘pregnant

8 women’ means women who have 1 or more fetuses

9 in utero.

10 ‘‘(6) SCHOOL.—The term ‘school’ means a pub11 lic or private nonprofit elementary, intermediate, or

12 secondary school.

13 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

14 the Secretary of Agriculture.

15 ‘‘(8) STATE.—The term ‘State’ means any of

16 the several States, the District of Columbia, the

17 Commonwealth of Puerto Rico, the Commonwealth

18 of the Northern Mariana Islands, American Samoa,

19 Guam, the Virgin Islands, or a tribal organization

20 (as defined in section 4(l) of the Indian Self-Deter21 mination and Education Assistance Act (25 U.S.C.

22 450b(l))).

23 ‘‘(9) YOUNG CHILDREN.—The term ‘young chil24 dren’ means individuals who have attained the age

25 of 1 but have not attained the age of 5.’’.
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1 CHAPTER 2—SCHOOL-BASED NUTRITION

2 BLOCK GRANT PROGRAM

3 SEC. 341. AMENDMENT TO NATIONAL SCHOOL LUNCH ACT.

4 The National School Lunch Act (42 U.S.C. 1751 et

5 seq.) is amended to read as follows:

6 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

8 ‘National School Lunch Act’.

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

10 is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Authorization.

‘‘Sec. 3. Allotment.

‘‘Sec. 4. Application.

‘‘Sec. 5. Use of amounts.

‘‘Sec. 6. Reports.

‘‘Sec. 7. Penalties.

‘‘Sec. 8. Assistance to children enrolled in private nonprofit schools and Department of Defense domestic dependents’ schools in case of restrictions on State or failure by State to provide assistance.

‘‘Sec. 9. Food service programs for department of defense overseas dependents’

schools.

‘‘Sec. 10. Model nutrition standards for meals for students.

‘‘Sec. 11. Definitions.

11 ‘‘SEC. 2. AUTHORIZATION.

12 ‘‘(a) ENTITLEMENT.—

13 ‘‘(1) IN GENERAL.—In the case of each State

14 that in accordance with section 4 submits to the

15 Secretary of Agriculture an application for a fiscal

16 year, each such State shall be entitled to receive

17 from the Secretary for such fiscal year a grant for

18 the purpose of achieving the goals described in sub19 section (b). Subject to paragraph (2), the grant shall
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1 consist of the allotment for such State determined

2 under section 3 of the school-based nutrition amount

3 for the fiscal year.

4 ‘‘(2) REQUIREMENT TO PROVIDE COMMOD5 ITIES.—9 percent of the amount of the assistance

6 available under this Act for each State shall be in

7 the form of commodities.

8 ‘‘(3) SCHOOL-BASED NUTRITION AMOUNT.—

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

10 Act, the term ‘school-based nutrition amount’

11 means, subject to the reservation contained in

12 subparagraph (B), $6,681,000,000 for fiscal

13 year 1996, $6,956,000,000 for fiscal year 1997,

14 $7,237,000,000 for fiscal year 1998,

15 $7,538,000,000 for fiscal year 1999, and

16 $7,849,000,000 for fiscal year 2000.

17 ‘‘(B) RESERVATION.—For each fiscal year

18 described in subparagraph (A), the Secretary

19 shall reserve an amount equal to the amount

20 determined under subsection (c) of section 9 for

21 such fiscal year from the school-based nutrition

22 amount for the purpose of establishing and car23 rying out nutritious food service programs at

24 Department of Defense overseas dependents’

25 schools in accordance with such section.
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1 ‘‘(4) AVAILABILITY.—Payments under a grant

2 to a State from the allotment determined under sec3 tion 3 for any fiscal year may be obligated by the

4 State in that fiscal year or in the succeeding fiscal

5 year.

6 ‘‘(b) GOALS.—The goals of this Act are—

7 ‘‘(1) to safeguard the health and well-being of

8 children through the provision of nutritious, well-bal9 anced meals and food supplements;

10 ‘‘(2) to provide economically disadvantaged chil11 dren access to nutritious free or low cost meals, food

12 supplements, and low-cost milk;

13 ‘‘(3) to ensure that children served under this

14 Act are receiving the nutrition they require to take

15 advantage of the educational opportunities provided

16 to them;

17 ‘‘(4) to emphasize foods which are naturally

18 good sources of vitamins and minerals over foods

19 which have been enriched with vitamins and min20 erals and are high in fat or sodium content;

21 ‘‘(5) to provide a comprehensive school nutri22 tion program for children; and

23 ‘‘(6) to minimize paperwork burdens and ad24 ministrative expenses for participating schools.
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1 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

2 provide payments under a grant under this Act to States

3 on a quarterly basis.

4 ‘‘SEC. 3. ALLOTMENT.

5 ‘‘The Secretary shall allot the school-based nutrition

6 amount to carry out this Act for a fiscal year among the

7 States as follows:

8 ‘‘(1) FIRST FISCAL YEAR.—

9 ‘‘(A) IN GENERAL.—With respect to the

10 first fiscal year for which the Secretary provides

11 grants to States under this Act, the amount al12 lotted to each State shall bear the same propor13 tion to such school-based nutrition amount as

14 the aggregate of the amounts described in sub15 paragraph (B) that were received by each such

16 State under the provisions of law described in

17 such subparagraph (as such provisions of law

18 were in effect on the day before the date of the

19 enactment of the Personal Responsibility Act of

20 1995) for the preceding fiscal year bears to the

21 aggregate of the amounts described in subpara22 graph (B) that were received by all such States

23 under such provisions of law for such preceding

24 fiscal year.
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1 ‘‘(B) AMOUNTS DESCRIBED.—The

2 amounts described in this subparagraph are the

3 following:

4 ‘‘(i) The amount received under the

5 school breakfast program established under

6 section 4 of the Child Nutrition Act of

7 1966 (42 U.S.C. 1773).

8 ‘‘(ii) The amount received under the

9 school lunch program established under

10 this Act (42 U.S.C. 1751 et seq.).

11 ‘‘(iii) 12.5 percent of the sum of the

12 amounts received under the following pro13 grams:

14 ‘‘(I) The child and adult care

15 food program under section 17 of this

16 Act (42 U.S.C. 1766), except for sub17 section (o) of such section.

18 ‘‘(II) The summer food service

19 program for children established

20 under section 13 of this Act (42

21 U.S.C. 1761).

22 ‘‘(III) The special milk program

23 established under section 3 of the

24 Child Nutrition Act of 1966 (42

25 U.S.C. 1772).
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1 ‘‘(2) SECOND FISCAL YEAR.—With respect to

2 the second fiscal year for which the Secretary pro3 vides grants to States under this Act—

4 ‘‘(A) 95 percent of such school-based nu5 trition amount shall be allotted among the

6 States by allotting to each State an amount

7 that bears the same proportion to such school8 based nutrition amount as the amount allotted

9 to each such State from a grant under this Act

10 for the preceding fiscal year bears to the aggre11 gate of the amounts allotted to all such States

12 from grants under this Act for such preceding

13 fiscal year; and

14 ‘‘(B) 5 percent of such school-based nutri15 tion amount shall be allotted among the States

16 by allotting to each State an amount that bears

17 the same proportion to such school-based nutri18 tion amount as the relative number of meals

19 served during the 1-year period ending on June

20 30 of the preceding fiscal year in a State from

21 amounts received from a grant under this Act

22 for such preceding fiscal year bears to the total

23 number of meals served in all States from

24 amounts received from grants under this Act

25 for the preceding fiscal year.
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1 ‘‘(3) THIRD AND FOURTH FISCAL YEARS.—

2 With respect to each of the third and fourth fiscal

3 years for which the Secretary provides grants to

4 States under this Act—

5 ‘‘(A) 90 percent of such school-based nu6 trition amount shall be allotted among the

7 States by allotting to each State an amount de8 termined in accordance with the formula de9 scribed in paragraph (2)(A); and

10 ‘‘(B) 10 percent of such school-based nu11 trition amount shall be allotted among the

12 States by allotting to each State an amount de13 termined in accordance with the formula de14 scribed in paragraph (2)(B).

15 ‘‘(4) FIFTH FISCAL YEAR.—With respect to the

16 fifth fiscal year for which the Secretary provides

17 grants to States under this Act—

18 ‘‘(A) 85 percent of such school-based nu19 trition amount shall be allotted among the

20 States by allotting to each State an amount de21 termined in accordance with the formula de22 scribed in paragraph (2)(A); and

23 ‘‘(B) 15 percent of such school-based nu24 trition amount shall be allotted among the

25 States by allotting to each State an amount de-
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1 termined in accordance with the formula de2 scribed in paragraph (2)(B).

3 ‘‘SEC. 4. APPLICATION.

4 ‘‘The Secretary may provide a grant under this Act

5 to a State for a fiscal year only if the State submits to

6 the Secretary an application containing only—

7 ‘‘(1) an agreement that the State will use

8 amounts received from such grant in accordance

9 with section 5;

10 ‘‘(2) except as provided in paragraph (3), an

11 agreement that the State will set minimum nutri12 tional requirements for meals provided under this

13 Act based on the most recent tested nutritional re14 search available, except that—

15 ‘‘(A) such requirements shall not be con16 strued to prohibit the substitution of foods to

17 accommodate the medical or other special die18 tary needs of individual students; and

19 ‘‘(B) such requirements shall, at a mini20 mum, be based on—

21 ‘‘(i) the weekly average of the nutrient

22 content of school lunches; or

23 ‘‘(ii) such other standards as the

24 State may prescribe;
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1 ‘‘(3) an agreement that the State, with respect

2 to the provision of meals to students, shall—

3 ‘‘(A) implement the minimum nutritional

4 requirements described in paragraph (2) for

5 such meals; or

6 ‘‘(B) implement the model nutrition stand7 ards developed under section 10 for such meals;

8 ‘‘(4) an agreement that the State will take such

9 reasonable steps as the State deems necessary to re10 strict the use and disclosure of information about in11 dividuals and families receiving assistance under this

12 Act;

13 ‘‘(5) an agreement that the State will use not

14 more than 2 percent of the amount of such grant for

15 administrative costs incurred to provide assistance

16 under this Act; and

17 ‘‘(6) an agreement that the State will submit to

18 the Secretary a report in accordance with section 6.

19 ‘‘SEC. 5. USE OF AMOUNTS.

20 ‘‘(a) IN GENERAL.—The Secretary may provide a

21 grant under this Act to a State only if the State agrees

22 that it will use all amounts received from such grant to

23 provide assistance to schools to establish and carry out

24 nutritious food service programs that provide affordable

25 meals and supplements to students, which may include—
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1 ‘‘(1) nonprofit school breakfast programs;

2 ‘‘(2) nonprofit school lunch programs;

3 ‘‘(3) nonprofit before and after school supple4 ment programs;

5 ‘‘(4) nonprofit low-cost milk services; and

6 ‘‘(5) nonprofit summer meals programs.

7 ‘‘(b) ADDITIONAL REQUIREMENTS.—

8 ‘‘(1) MINIMUM AMOUNT OF GRANT FOR FREE

9 OR LOW COST MEALS OR SUPPLEMENTS.—In provid10 ing assistance to schools to establish and carry out

11 nutritious food service programs in accordance with

12 subsection (a), the State shall ensure that not less

13 than 80 percent of the amount of the grant is used

14 to provide free or low cost meals or supplements to

15 economically disadvantaged children.

16 ‘‘(2) PROVISION OF FOOD SERVICE PROGRAMS

17 IN PRIVATE NONPROFIT SCHOOLS AND DEPARTMENT

18 OF DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS.—

19 To the extent consistent with the number of children

20 in the State who are enrolled in private nonprofit

21 schools and Department of Defense domestic de22 pendents’ schools, the State, after timely and appro23 priate consultation with representatives of such

24 schools, as the case may be, shall ensure that nutri25 tious food service programs are established and car-
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1 ried out in such schools in accordance with sub2 section (a) on an equitable basis with nutritious food

3 service programs established and carried out in pub4 lic nonprofit schools in the State.

5 ‘‘(c) AUTHORITY TO USE AMOUNTS FOR OTHER

6 PURPOSES.—

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

8 and (3), a State may use not more than 20 percent

9 of amounts received from a grant under this Act for

10 a fiscal year to carry out a State program pursuant

11 to any or all of the following provisions of law:

12 ‘‘(A) Part A of title IV of the Social Secu13 rity Act (42 U.S.C. 601 et seq.).

14 ‘‘(B) Part B of title IV of the Social Secu15 rity Act (42 U.S.C. 621 et seq.).

16 ‘‘(C) Title XX of the Social Security Act

17 (42 U.S.C. 1397 et seq.).

18 ‘‘(D) The Child Nutrition Act of 1966 (42

19 U.S.C. 1771 et seq.).

20 ‘‘(E) The Child Care and Development

21 Block Grant Act of 1990 (42 U.S.C. 9858 et

22 seq.).

23 ‘‘(2) SUFFICIENT FUNDING DETERMINATION.—

24 Prior to using any amounts received from a grant

25 under this Act for a fiscal year to carry out a State
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1 program pursuant to any or all of the provisions of

2 law described in paragraph (1), the appropriate

3 State agency shall make a determination that suffi4 cient amounts will remain available for such fiscal

5 year to carry out this Act.

6 ‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR

7 OTHER PURPOSES.—Amounts paid to the State

8 under a grant under this Act that are used to carry

9 out a State program pursuant to a provision of law

10 specified in paragraph (1) shall not be subject to the

11 requirements of this Act, but shall be subject to the

12 same requirements that apply to Federal funds pro13 vided directly under the provision of law to carry out

14 the program.

15 ‘‘(d) LIMITATION ON PROVISION OF COMMODITIES

16 TO CERTAIN SCHOOL DISTRICTS, PRIVATE NONPROFIT

17 SCHOOLS, AND DEPARTMENT OF DEFENSE DOMESTIC

18 DEPENDENTS’ SCHOOLS.—

19 ‘‘(1) IN GENERAL.—A State may not require a

20 school district, private nonprofit school, or Depart21 ment of Defense domestic dependents’ school de22 scribed in paragraph (2), except upon the request of

23 such school district, private school, or domestic de24 pendents’ school, as the case may be, to accept com25 modities for use in the food service program of such
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1 school district, private school, or domestic depend2 ents’ school in accordance with this section. Such

3 school district, private school, or domestic depend4 ents’ school may continue to receive commodity as5 sistance in the form that it received such assistance

6 as of January 1, 1987.

7 ‘‘(2) SCHOOL DISTRICT, PRIVATE NONPROFIT

8 SCHOOL, AND DEPARTMENT OF DEFENSE DOMESTIC

9 DEPENDENTS’ SCHOOL DESCRIBED.—A school dis10 trict, private nonprofit school, or Department of De11 fense domestic dependents’ school described in this

12 paragraph is a school district, private nonprofit

13 school, or Department of Defense domestic depend14 ents’ school, as the case may be, that as of January

15 1, 1987, was receiving all cash payments or all com16 modity letters of credit in lieu of entitlement com17 modities for the school lunch program of such school

18 district, private school, or domestic dependents’

19 school under section 18(b) of the National School

20 Lunch Act (42 U.S.C. 1751 et seq.), as such section

21 was in effect on the day before the date of the enact22 ment of the Personal Responsibility Act of 1995.

23 ‘‘(e) PROHIBITION ON PHYSICAL SEGREGATION,

24 OVERT IDENTIFICATION, OR OTHER DISCRIMINATION

25 WITH RESPECT TO CHILDREN ELIGIBLE FOR FREE OR
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1 LOW COST MEALS OR SUPPLEMENTS.—In providing as2 sistance to schools to establish and carry out nutritious

3 food service programs in accordance with subsection (a),

4 the State shall ensure that such schools do not—

5 ‘‘(1) physically segregate children eligible to re6 ceive free or low cost meals or supplements on the

7 basis of such eligibility;

8 ‘‘(2) provide for the overt identification of such

9 children by special tokens or tickets, announced or

10 published list of names, or other means; or

11 ‘‘(3) otherwise discriminate against such chil12 dren.

13 ‘‘SEC. 6. REPORTS.

14 ‘‘The Secretary may provide a grant under this Act

15 to a State for a fiscal year only if the State agrees that

16 it will submit, for such fiscal year, a report to the Sec17 retary describing—

18 ‘‘(1) the number of individuals receiving assist19 ance under the grant;

20 ‘‘(2) the different types of assistance provided

21 to such individuals;

22 ‘‘(3) the total number of meals served to stu23 dents under the grant, including the percentage of

24 such meals served to economically disadvantaged

25 students;
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1 ‘‘(4) the extent to which such assistance was ef2 fective in achieving the goals described in section

3 2(b);

4 ‘‘(5) the standards and methods the State is

5 using to ensure the nutritional quality of such assist6 ance, including meals and supplements; and

7 ‘‘(6) any other information which can be rea8 sonably required by the Secretary.

9 ‘‘SEC. 7. PENALTIES.

10 ‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION

11 OF THIS ACT.—

12 ‘‘(1) IN GENERAL.—The Secretary shall reduce

13 the amounts otherwise payable to a State under a

14 grant under this Act by any amount paid to the

15 State under this Act which an audit conducted pur16 suant to chapter 75 of title 31, United States Code,

17 finds has been used in violation of this Act.

18 ‘‘(2) LIMITATION.—In carrying out paragraph

19 (1), the Secretary shall not reduce any quarterly

20 payment by more than 25 percent.

21 ‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED

22 REPORT.—The Secretary shall reduce by 3 percent the

23 amount otherwise payable to a State under a grant under

24 this Act for a fiscal year if the Secretary determines that

25 the State has not submitted the report required by section
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1 6 for the immediately preceding fiscal year, within 6

2 months after the end of the immediately preceding fiscal

3 year.

4 ‘‘SEC. 8. ASSISTANCE TO CHILDREN ENROLLED IN PRIVATE

5 NONPROFIT SCHOOLS AND DEPARTMENT OF

6 DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS

7 IN CASE OF RESTRICTIONS ON STATE OR

8 FAILURE BY STATE TO PROVIDE ASSISTANCE.

9 ‘‘(a) IN GENERAL.—If, by reason of any other provi10 sion of law, a State is prohibited from providing assistance

11 from amounts received from a grant under this Act to pri12 vate nonprofit schools or Department of Defense domestic

13 dependents’ schools for a fiscal year to establish and carry

14 out nutritious food service programs in such schools in ac15 cordance with section 5(a), or the Secretary determines

16 that a State has substantially failed or is unwilling to pro17 vide such assistance to such private nonprofit schools or

18 domestic dependents’ schools for such fiscal year, the Sec19 retary shall, after consultation with appropriate represent20 atives of the State and private nonprofit schools or domes21 tic dependents’ schools, as the case may be, arrange for

22 the provision of such assistance to private nonprofit

23 schools or domestic dependents’ schools in the State for

24 such fiscal year in accordance with the requirements this

25 Act.
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1 ‘‘(b) REDUCTION IN AMOUNT OF STATE GRANT.—

2 If the Secretary arranges for the provision of assistance

3 to private nonprofit schools or Department of Defense do4 mestic dependents’ schools in a State for a fiscal year

5 under subsection (a), the amount of the grant for such

6 State for such fiscal year shall be reduced by the amount

7 of such assistance provided to such private nonprofit

8 schools or domestic dependents’ schools, as the case may

9 be.

10 ‘‘SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF

11 DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS.

12 ‘‘(a) IN GENERAL.—The Secretary shall make avail13 able to the Secretary of Defense for each fiscal year funds

14 and commodities in an amount determined in accordance

15 with subsection (c) for the purpose of establishing and car16 rying out nutritious food service programs that provide af17 fordable meals and supplements to students attending De18 partment of Defense overseas dependents’ schools.

19 ‘‘(b) REQUIREMENTS.—In carrying out nutritious

20 food service programs under subsection (a), the Secretary

21 of Defense—

22 ‘‘(1) shall ensure that not less than 80 percent

23 of the amount of assistance provided to each school

24 for a fiscal year is used to provide free or low cost
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1 meals or supplements to economically disadvantaged

2 children; and

3 ‘‘(2) shall ensure that, with respect to the pro4 vision of meals to students, each such school will—

5 ‘‘(A) implement minimum nutritional re6 quirements for meals provided under this sec7 tion based on the most recent tested nutritional

8 research available, except that—

9 ‘‘(i) such requirements shall not be

10 construed to prohibit the substitution of

11 foods to accommodate the medical or other

12 special dietary needs of individual stu13 dents; and

14 ‘‘(ii) such requirements shall, at a

15 minimum, be based on—

16 ‘‘(I) the weekly average of the

17 nutrient content of school lunches; or

18 ‘‘(II) such other standards as the

19 Secretary of Agriculture may pre20 scribe; or

21 ‘‘(B) implement the model nutrition stand22 ards developed under section 10 for such meals.

23 ‘‘(c) AMOUNT AND SOURCE OF FUNDS AND COMMOD24 ITIES.—
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1 ‘‘(1) AMOUNT.—The Secretary, in consultation

2 with the Secretary of Defense, shall determine the

3 amount of funds and commodities necessary for each

4 fiscal year to establish and carry out nutritious food

5 service programs described in subsection (a).

6 ‘‘(2) SOURCE.—Such amount of funds and com7 modities shall consist of the reservation of the

8 school-based nutrition amount in accordance with

9 section 2(a)(3)(B).

10 ‘‘SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR

11 STUDENTS.

12 ‘‘(a) MODEL NUTRITION STANDARDS.—Not later

13 than April 1, 1996, the Food and Nutrition Board of the

14 Institute of Medicine of the National Academy of Sciences,

15 in cooperation with nutritionists and directors of programs

16 providing meals to students under this Act, shall develop

17 model nutrition standards for meals provided to such stu18 dents under this Act.

19 ‘‘(b) REPORT TO CONGRESS.—Not later than 1 year

20 after the date on which the model nutrition standards are

21 developed under subsection (a), the Food and Nutrition

22 Board of the Institute of Medicine of the National Acad23 emy of Sciences shall prepare and submit to the Congress

24 a report regarding the efforts of States to implement such

25 model nutrition standards.
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1 ‘‘SEC. 11. DEFINITIONS.

2 ‘‘For purposes of this Act:

3 ‘‘(1) DEPARTMENT OF DEFENSE DOMESTIC DE4 PENDENTS’ SCHOOL.—The term ‘Department of De5 fense domestic dependents’ school’ means an elemen6 tary or secondary school established pursuant to sec7 tion 2164 of title 10, United States Code.

8 ‘‘(2) DEPARTMENT OF DEFENSE OVERSEAS DE9 PENDENTS’ SCHOOL.—The term ‘Department of De10 fense overseas dependents’ school’ means a Depart11 ment of Defense dependents’ school which is located

12 outside the United States and the territories or pos13 sessions of the United States.

14 ‘‘(3) ECONOMICALLY DISADVANTAGED.—The

15 term ‘economically disadvantaged’ means an individ16 ual or a family, as the case may be, whose annual

17 income does not exceed 185 percent of the applicable

18 family size income levels contained in the most re19 cent income poverty guidelines prescribed by the Of20 fice of Management and Budget and based on data

21 from the Bureau of the Census.

22 ‘‘(4) SCHOOL.—The term ‘school’ means a pub23 lic or private nonprofit elementary, intermediate, or

24 secondary school.

25 ‘‘(5) SECRETARY.—The term ‘Secretary’ means

26 the Secretary of Agriculture.
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1 ‘‘(6) STATE.—The term ‘State’ means any of

2 the several States, the District of Columbia, the

3 Commonwealth of Puerto Rico, the Commonwealth

4 of the Northern Mariana Islands, American Samoa,

5 Guam, the Virgin Islands, or a tribal organization

6 (as defined in section 4(l) of the Indian Self-Deter7 mination and Education Assistance Act (25 U.S.C.

8 450b(l))).’’.

9 CHAPTER 3—MISCELLANEOUS

10 PROVISIONS

11 SEC. 361. REPEALERS.

12 The following Acts are repealed:

13 (1) The Commodity Distribution Reform Act

14 and WIC Amendments of 1987 (Public Law 100–

15 237; 101 Stat. 1733).

16 (2) The Child Nutrition and WIC Reauthoriza17 tion Act of 1989 (Public Law 101–147; 103 Stat.

18 877).

19 Subtitle C—Other Repealers and

20 Conforming Amendments

21 SEC. 371. AMENDMENTS TO LAWS RELATING TO CHILD

22 PROTECTION BLOCK GRANT.

23 (a) ABANDONED INFANTS ASSISTANCE.—
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1 (1) REPEALER.—The Abandoned Infants As2 sistance Act of 1988 (42 U.S.C. 670 note) is re3 pealed.

4 (2) CONFORMING AMENDMENT.—Section

5 421(7) of the Domestic Volunteer Service Act of

6 1973 (42 U.S.C. 5061(7)) is amended to read as fol7 lows:

8 ‘‘(7) the term ‘boarder baby’ means an infant

9 who is medically cleared for discharge from an

10 acute-care hospital setting, but remains hospitalized

11 because of a lack of appropriate out-of-hospital

12 placement alternatives;’’.

13 (b) CHILD ABUSE PREVENTION AND TREATMENT.—

14 (1) REPEALER.—The Child Abuse Prevention

15 and Treatment Act (42 U.S.C. 5101 et seq.) is re16 pealed.

17 (2) CONFORMING AMENDMENTS.—The Victims

18 of Crime Act of 1984 (42 U.S.C. 10601 et seq.) is

19 amended—

20 (A) in section 1402—

21 (i) in subsection (d)—

22 (I) by striking paragraph (2);

23 (II) by redesignating paragraphs

24 (3) and (4) as paragraphs (2) and

25 (3), respectively; and
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1 (III) in paragraph (2) (as redes2 ignated by subclause (II))—

3 (aa) in subparagraph (A),

4 by striking the semicolon at the

5 end and inserting ‘‘; and’’;

6 (bb) by striking subpara7 graph (B); and

8 (cc) by redesignating sub9 paragraph (C) as subparagraph

10 (B); and

11 (ii) by striking subsection (g); and

12 (B) by striking section 1404A.

13 (c) ADOPTION OPPORTUNITIES.—The Child Abuse

14 Prevention and Treatment and Adoption Reform Act of

15 1978 (42 U.S.C. 5111 et seq.) is repealed.

16 (d) CRISIS NURSERIES.—The Temporary Child Care

17 for Children with Disabilities and Crisis Nurseries Act of

18 1986 (42 U.S.C. 5117 et seq.) is amended—

19 (1) in the title heading by striking ‘‘AND CRI20 SIS NURSERIES’’;

21 (2) in section 201 by striking ‘‘and Crisis Nurs22 eries’’;

23 (3) in section 202—

24 (A) by striking ‘‘provide: (A) temporary’’

25 and inserting ‘‘to provide temporary’’; and
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1 (B) by striking ‘‘children, and (B)’’ and all

2 that follows through the period and inserting

3 ‘‘children.’’;

4 (4) by striking section 204; and

5 (5) in section 205—

6 (A) in subsection (a)—

7 (i) in paragraph (1)(A) by striking

8 ‘‘or 204’’; and

9 (ii) in paragraph (2)—

10 (I) by striking subparagraph (D);

11 and

12 (II) by redesignating subpara13 graph (E) as subparagraph (D);

14 (B) by striking subsection (b)(3); and

15 (C) in subsection (d)—

16 (i) by striking paragraph (3); and

17 (ii) by redesignating paragraphs (4)

18 and (5) as paragraph (3) and (4), respec19 tively.

20 (e) MISSING CHILDREN’S ASSISTANCE ACT.—The

21 Missing Children’s Assistance Act (42 U.S.C. 5771-5779)

22 is repealed.

23 (f) FAMILY SUPPORT CENTERS.—Subtitle F of title

24 VII of the Stewart B. McKinney Homeless Assistance Act

25 (42 U.S.C. 11481–11489) is repealed.
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1 (g) INVESTIGATION AND PROSECUTION OF CHILD

2 ABUSE CASES.—Subtitle A of title II of the Victims of

3 Child Abuse Act of 1990 (42 U.S.C. 13001–13004) is re4 pealed.

5 (h) REPEAL OF FAMILY UNIFICATION PROGRAM.—

6 Subsection (x) of section 8 of the United States Housing

7 Act of 1937 (42 U.S.C. 1437f(x)) is repealed.

8 Subtitle D—Related Provisions

9 SEC. 381. REQUIREMENT THAT DATA RELATING TO THE IN10 CIDENCE OF POVERTY IN THE UNITED

11 STATES BE PUBLISHED AT LEAST EVERY 2

12 YEARS.

13 (a) IN GENERAL.—The Secretary shall, to the extent

14 feasible, produce and publish for each State, county, and

15 local unit of general purpose government for which data

16 have been compiled in the then most recent census of pop17 ulation under section 141(a) of title 13, United States

18 Code, and for each school district, data relating to the in19 cidence of poverty. Such data may be produced by means

20 of sampling, estimation, or any other method that the Sec21 retary determines will produce current, comprehensive,

22 and reliable data.

23 (b) CONTENT; FREQUENCY.—Data under this sec24 tion—

25 (1) shall include—
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1 (A) for each school district, the number of

2 children age 5 to 17, inclusive, in families below

3 the poverty level; and

4 (B) for each State and county referred to

5 in subsection (a), the number of individuals age

6 65 or older below the poverty level; and

7 (2) shall be published—

8 (A) for each State, county, and local unit

9 of general purpose government referred to in

10 subsection (a), in 1996 and at least every sec11 ond year thereafter; and

12 (B) for each school district, in 1998 and at

13 least every second year thereafter.

14 (c) AUTHORITY TO AGGREGATE.—

15 (1) IN GENERAL.—If reliable data could not

16 otherwise be produced, the Secretary may, for pur17 poses of subsection (b)(1)(A), aggregate school dis18 tricts, but only to the extent necessary to achieve re19 liability.

20 (2) INFORMATION RELATING TO USE OF AU21 THORITY.—Any data produced under this subsection

22 shall be appropriately identified and shall be accom23 panied by a detailed explanation as to how and why

24 aggregation was used (including the measures taken

25 to minimize any such aggregation).
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1 (d) REPORT TO BE SUBMITTED WHENEVER DATA

2 IS NOT TIMELY PUBLISHED.—If the Secretary is unable

3 to produce and publish the data required under this sec4 tion for any State, county, local unit of general purpose

5 government, or school district in any year specified in sub6 section (b)(2), a report shall be submitted by the Secretary

7 to the President of the Senate and the Speaker of the

8 House of Representatives, not later than 90 days before

9 the start of the following year, enumerating each govern10 ment or school district excluded and giving the reasons

11 for the exclusion.

12 (e) CRITERIA RELATING TO POVERTY.—In carrying

13 out this section, the Secretary shall use the same criteria

14 relating to poverty as were used in the then most recent

15 census of population under section 141(a) of title 13,

16 United States Code (subject to such periodic adjustments

17 as may be necessary to compensate for inflation and other

18 similar factors).

19 (f) CONSULTATION.—The Secretary shall consult

20 with the Secretary of Education in carrying out the re21 quirements of this section relating to school districts.

22 (g) DEFINITION.—For the purpose of this section,

23 the term ‘‘Secretary’’ means the Secretary of Health and

24 Human Services.
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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated to carry out this section

3 $1,500,000 for each of fiscal years 1996 through 2000.

4 SEC. 382. DATA ON PROGRAM PARTICIPATION AND OUT5 COMES.

6 (a) IN GENERAL.—The Secretary shall produce data

7 relating to participation in programs authorized by this

8 Act by families and children. Such data may be produced

9 by means of sampling, estimation, or any other method

10 that the Secretary determines will produce comprehensive

11 and reliable data.

12 (b) CONTENT.—Data under this section shall include,

13 but not be limited to—

14 (1) changes in participation in welfare, health,

15 education, and employment and training programs,

16 for families and children, the duration of such par17 ticipation, and the causes and consequences of any

18 changes in program participation;

19 (2) changes in employment status, income and

20 poverty status, family structure and process, and

21 children’s well-being, over time, for families and chil22 dren participating in Federal programs and, if ap23 propriate, other low-income families and children,

24 and the causes and consequences of such changes;

25 and
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1 (3) demographic data, including household com2 position, marital status, relationship of householders,

3 racial and ethnic designation, age, and educational

4 attainment.

5 (c) FREQUENCY.—Data under this section shall re6 flect the period 1993 through 2002, and shall be published

7 as often as practicable during that time, but in any event

8 no later than December 31, 2003.

9 (d) DEFINITION.—For the purpose of this section,

10 the term ‘‘Secretary’’ means the Secretary of Health and

11 Human Services.

12 (e) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated to carry out this section

14 $2,500,000 in fiscal year 1996, $10,000,000 for each of

15 fiscal years 1997 through 2002, and $2,000,000 for fiscal

16 year 2003.

17 Subtitle E—General Effective Date;

18 Preservation of Actions, Obliga19 tions, and Rights

20 SEC. 391. EFFECTIVE DATE.

21 Except as otherwise provided in this title, this title

22 and the amendments made by this title shall take effect

23 on October 1, 1995.
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1 SEC. 392. APPLICATION OF AMENDMENTS AND REPEALERS.

2 An amendment or repeal made by this title shall not

3 apply with respect to—

4 (1) powers, duties, functions, rights, claims,

5 penalties, or obligations applicable to financial as6 sistance provided before the effective date of amend7 ment or repeal, as the case may be, under the Act

8 so amended or so repealed; and

9 (2) administrative actions and proceedings com10 menced before such date, or authorized before such

11 date to be commenced, under such Act.

12 TITLE IV—RESTRICTING WEL13 FARE AND PUBLIC BENEFITS

14 FOR ALIENS

15 SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING

16 WELFARE AND IMMIGRATION.

17 The Congress makes the following statements con18 cerning national policy with respect to welfare and immi19 gration:

20 (1) Self-sufficiency has been a basic principle of

21 United States immigration law since this country’s

22 earliest immigration statutes.

23 (2) It continues to be the immigration policy of

24 the United States that—

25 (A) aliens within the nation’s borders not

26 depend on public resources to meet their needs,
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1 but rather rely on their own capabilities and the

2 resources of their families, their sponsors, and

3 private organizations, and

4 (B) the availability of public benefits not

5 constitute an incentive for immigration to the

6 United States.

7 (3) Despite the principle of self-sufficiency,

8 aliens have been applying for and receiving public

9 benefits from Federal, State, and local governments

10 at increasing rates.

11 (4) Current eligibility rules for public assistance

12 and unenforceable financial support agreements have

13 proved wholly incapable of assuring that individual

14 aliens not burden the public benefits system.

15 (5) It is a compelling government interest to

16 enact new rules for eligibility and sponsorship agree17 ments in order to assure that aliens be self-reliant

18 in accordance with national immigration policy.

19 (6) It is a compelling government interest to re20 move the incentive for illegal immigration provided

21 by the availability of public benefits.
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1 Subtitle A—Eligibility for Federal

2 Benefits Programs

3 SEC. 401. INELIGIBILITY OF ILLEGAL ALIENS FOR CERTAIN

4 PUBLIC BENEFITS PROGRAMS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law and except as provided in subsections (b) and

7 (c), any alien who is not lawfully present in the United

8 States shall not be eligible for any Federal means-tested

9 public benefits program (as defined in section 431(d)(2)).

10 (b) EXCEPTION FOR EMERGENCY ASSISTANCE.—

11 Subsection (a) shall not apply to the provision of non-cash,

12 in-kind emergency assistance (including emergency medi13 cal services).

14 (c) TREATMENT OF HOUSING-RELATED ASSIST15 ANCE.—Subsection (a) shall not apply to any program for

16 housing or community development assistance adminis17 tered by the Secretary of Housing and Urban Develop18 ment, any program under title V of the Housing Act of

19 1949, or any assistance under section 306C of the Consoli20 dated Farm and Rural Development Act, except that in

21 the case of financial assistance (as defined in section

22 214(b) of the Housing and Community Development Act

23 of 1980), the provisions of section 214 of such Act shall

24 apply instead of subsection (a).
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1 SEC. 402. INELIGIBILITY OF NONIMMIGRANTS FOR CER2 TAIN PUBLIC BENEFITS PROGRAMS.

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law and except as provided in subsections (b) and

5 (c), any alien who is lawfully present in the United States

6 as a nonimmigrant shall not be eligible for any Federal

7 means-tested public benefits program.

8 (b) EXCEPTIONS.—

9 (1) EMERGENCY ASSISTANCE.—Subsection (a)

10 shall not apply to the provision of non-cash, in-kind

11 emergency assistance (including emergency medical

12 services).

13 (2) ALIENS GRANTED ASYLUM.—Subsection (a)

14 shall not apply to an alien who is granted asylum

15 under section 208 of the Immigration and National16 ity Act or whose deportation has been withheld

17 under section 243(h) of such Act.

18 (3) TREATMENT OF TEMPORARY AGRICUL19 TURAL WORKERS.—Subsection (a) shall not apply to

20 a nonimmigrant admitted as a temporary agricul21 tural worker under section 101(a)(15)(H)(ii)(a) of

22 the Immigration and Nationality Act or as the

23 spouse or minor child of such a worker under section

24 101(a)(15)(H)(iii) of such Act.

25 (c) TREATMENT OF HOUSING-RELATED ASSIST26 ANCE.—Subsection (a) shall not apply to any program for
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1 housing or community development assistance adminis2 tered by the Secretary of Housing and Urban Develop3 ment, any program under title V of the Housing Act of

4 1949, or any assistance under section 306C of the Consoli5 dated Farm and Rural Development Act, except that in

6 the case of financial assistance (as defined in section

7 214(b) of the Housing and Community Development Act

8 of 1980), the provisions of section 214 of such Act shall

9 apply instead of subsection (a).

10 (d) TREATMENT OF ALIENS PAROLED INTO THE

11 UNITED STATES.—An alien who is paroled into the

12 United States under section 212(d)(5) of the Immigration

13 and Nationality Act for a period of less than 1 year shall

14 be considered, for purposes of this subtitle, to be lawfully

15 present in the United States as a nonimmigrant.

16 SEC. 403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5

17 SPECIFIED FEDERAL PUBLIC BENEFITS PRO18 GRAMS.

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of law and except as provided in subsection (b), any

21 alien who is lawfully present in the United States shall

22 not be eligible for any of the following Federal means-test23 ed public benefits programs:

24 (1) SSI.—The supplemental security income

25 program under title XVI of the Social Security Act.
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1 (2) TEMPORARY ASSISTANCE FOR NEEDY FAMI2 LIES.—The program of block grants to States for

3 temporary assistance for needy families under part

4 A of title IV of the Social Security Act.

5 (3) SOCIAL SERVICES BLOCK GRANT.—The pro6 gram of block grants to States for social services

7 under title XX of the Social Security Act.

8 (4) MEDICAID.—The program of medical assist9 ance under title XIX of the Social Security Act.

10 (5) FOOD STAMPS.—The program under the

11 Food Stamp Act of 1977.

12 (b) EXCEPTIONS.—

13 (1) TIME-LIMITED EXCEPTION FOR REFU14 GEES.—Subsection (a) shall not apply to an alien

15 admitted to the United States as a refugee under

16 section 207 of the Immigration and Nationality Act

17 until 5 years after the date of such alien’s arrival

18 into the United States.

19 (2) CERTAIN LONG-TERM, PERMANENT RESI20 DENT, AGED ALIENS.—Subsection (a) shall not

21 apply to an alien who—

22 (A) has been lawfully admitted to the

23 United States for permanent residence;

24 (B) is over 75 years of age; and
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1 (C) has resided in the United States for at

2 least 5 years.

3 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

4 Subsection (a) shall not apply to an alien who is

5 lawfully residing in any State (or any territory or

6 possession of the United States) and is—

7 (A) a veteran (as defined in section 101 of

8 title 38, United States Code) with a discharge

9 characterized as an honorable discharge,

10 (B) on active duty (other than active duty

11 for training) in the Armed Forces of the United

12 States, or

13 (C) the spouse or unmarried dependent

14 child of an individual described in subparagraph

15 (A) or (B).

16 Subparagraph (A) shall not apply in the case of a

17 veteran who has been separated from military serv18 ice on account of alienage.

19 (4) EMERGENCY ASSISTANCE.—Subsection (a)

20 shall not apply to the provision of non-cash, in-kind

21 emergency assistance (including emergency medical

22 services).

23 (5) TRANSITION FOR CURRENT BENE24 FICIARIES.—Subsection (a) shall not apply to the eli25 gibility of an alien for a program until 1 year after
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1 the date of the enactment of this Act if, on such

2 date of enactment, the alien is lawfully residing in

3 any State or any territory or possession of the

4 United States and is eligible for the program.

5 (6) CERTAIN PERMANENT RESIDENT AND DIS6 ABLED ALIENS.—Subsection (a) shall not apply to

7 an alien who—

8 (A) has been lawfully admitted to the

9 United States for permanent residence; and

10 (B) is unable because of physical or devel11 opmental disability or mental impairment (in12 cluding Alzheimer’s disease) to comply with the

13 naturalization requirements of section 312(a) of

14 the Immigration and Naturalization Act.

15 SEC. 404. NOTIFICATION.

16 Each Federal agency that administers a program to

17 which section 401, 402, or 403 applies shall, directly or

18 through the States, post information and provide general

19 notification to the public and to program recipients of the

20 changes regarding eligibility for any such program pursu21 ant to this subtitle.
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1 Subtitle B—Eligibility for State

2 and Local Public Benefits Pro3 grams

4 SEC. 411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE

5 AND LOCAL PUBLIC BENEFITS PROGRAMS.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law and except as otherwise provided in this sec8 tion, no alien who is not lawfully present in the United

9 States (as determined in accordance with regulations of

10 the Attorney General) shall be eligible for any State

11 means-tested public benefits program (as defined in sec12 tion 431(d)(3)).

13 (b) EXCEPTION FOR EMERGENCY ASSISTANCE.—

14 Subsection (a) shall not apply to the provision of non-cash,

15 in-kind emergency assistance (including emergency medi16 cal services).

17 SEC. 412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE

18 AND LOCAL PUBLIC BENEFITS PROGRAMS.

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of law and except as otherwise provided in this sec21 tion, no alien who is lawfully present in the United States

22 as a nonimmigrant shall be eligible for any State means23 tested public benefits program (as defined in section

24 431(d)(3)).

25 (b) EXCEPTIONS.—
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1 (1) EMERGENCY ASSISTANCE.—The limitations

2 under subsection (a) shall not apply to the provision

3 of non-cash, in-kind emergency assistance (including

4 emergency medical services).

5 (2) ALIENS GRANTED ASYLUM.—Subsection (a)

6 shall not apply to an alien who is granted asylum

7 under section 208 of the Immigration and National8 ity Act or whose deportation has been withheld

9 under section 243(h) of such Act.

10 (3) TREATMENT OF TEMPORARY AGRICUL11 TURAL WORKERS.—Subsection (a) shall not apply to

12 a nonimmigrant admitted as a temporary agricul13 tural worker under section 101(a)(15)(H)(ii)(a) of

14 the Immigration and Nationality Act or as the

15 spouse or minor child of such a worker under section

16 101(a)(15)(H)(iii) of such Act.

17 (c) TREATMENT OF ALIENS PAROLED INTO THE

18 UNITED STATES.—An alien who is paroled into the

19 United States under section 212(d)(5) of the Immigration

20 and Nationality Act for a period of less than 1 year shall

21 be considered, for purposes of this subtitle, to be lawfully

22 present in the United States as a nonimmigrant.
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1 SEC. 413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF IM2 MIGRANTS FOR STATE AND LOCAL MEANS3 TESTED PUBLIC BENEFITS PROGRAMS.

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law and except as otherwise provided in this section

6 or section 412, a State is authorized to determine eligi7 bility requirements for aliens who are lawfully present in

8 the United States for any State means-tested public bene9 fits program.

10 (b) EXCEPTIONS.—

11 (1) TIME-LIMITED EXCEPTION FOR REFU12 GEES.—The authority under subsection (a) shall not

13 apply to an alien admitted to the United States as

14 a refugee under section 207 of the Immigration and

15 Nationality Act until 5 years after the date of such

16 alien’s arrival into the United States.

17 (2) CERTAIN LONG-TERM, PERMANENT RESI18 DENT, AGED ALIENS.—The authority under sub19 section (a) shall not apply to an alien who—

20 (A) has been lawfully admitted to the

21 United States for permanent residence;

22 (B) is over 75 years of age; and

23 (C) has resided in the United States for at

24 least 5 years.

25 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

26 The authority under subsection (a) shall not apply
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1 to an alien who is lawfully residing in any State (or

2 any territory or possession of the United States) and

3 is—

4 (A) a veteran (as defined in section 101 of

5 title 38, United States Code) with a discharge

6 characterized as an honorable discharge,

7 (B) on active duty (other than active duty

8 for training) in the Armed Forces of the United

9 States, or

10 (C) the spouse or unmarried dependent

11 child of an individual described in subparagraph

12 (A) or (B).

13 Subparagraph (A) shall not apply in the case of a

14 veteran who has been separated from military serv15 ice on account of alienage.

16 (4) EMERGENCY ASSISTANCE.—The authority

17 under subsection (a) shall not apply to the provision

18 of non-cash, in-kind emergency assistance (including

19 emergency medical services).

20 (5) TRANSITION.—The authority under sub21 section (a) shall not apply to eligibility of an alien

22 for a State means-tested public benefits program

23 until 1 year after the date of the enactment of this

24 Act if, on such date of enactment, the alien is law25 fully present in the United States and is eligible for
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1 benefits under the program. Nothing in the previous

2 sentence is intended to address alien eligibility for

3 such a program before the date of the enactment of

4 this Act.

5 Subtitle C—Attribution of Income

6 and Affidavits of Support

7 SEC. 421. ATTRIBUTION OF SPONSOR’S INCOME AND RE8 SOURCES TO FAMILY-SPONSORED IMMI9 GRANTS.

10 (a) IN GENERAL.—Notwithstanding any other provi11 sion of law and except as provided in subsection (c), in

12 determining the eligibility and the amount of benefits of

13 an alien for any means-tested public benefits program (as

14 defined in section 431(d)) the income and resources of the

15 alien shall be deemed to include—

16 (1) the income and resources of any person who

17 executed an affidavit of support pursuant to section

18 213A of the Immigration and Nationality Act (as

19 added by section 422) in behalf of such alien, and

20 (2) the income and resources of the spouse (if

21 any) of the person.

22 (b) APPLICATION.—Subsection (a) shall apply with

23 respect to an alien until such time as the alien achieves

24 United States citizenship through naturalization pursuant
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1 to chapter 2 of title III of the Immigration and National2 ity Act.

3 (c) EXCEPTION FOR HOUSING-RELATED ASSIST4 ANCE.—Subsection (a) shall not apply to any program for

5 housing or community development assistance adminis6 tered by the Secretary of Housing and Urban Develop7 ment, any program under title V of the Housing Act of

8 1949, or any assistance under section 306C of the Consoli9 dated Farm and Rural Development Act.

10 SEC. 422. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

11 SUPPORT.

12 (a) IN GENERAL.—Title II of the Immigration and

13 Nationality Act is amended by inserting after section 213

14 the following new section:

15 ‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

16 ‘‘SEC. 213A. (a) ENFORCEABILITY.—No affidavit of

17 support may be accepted by the Attorney General or by

18 any consular officer to establish that an alien is not ex19 cludable as a public charge under section 212(a)(4) unless

20 such affidavit is executed as a contract—

21 ‘‘(1) which is legally enforceable against the

22 sponsor by the Federal Government and by any

23 State (or any political subdivision of such State)

24 which provides any means-tested public benefits pro25 gram, but not later than 10 years after the alien last

26 receives any such benefit; and
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1 ‘‘(2) in which the sponsor agrees to submit to

2 the jurisdiction of any Federal or State court for the

3 purpose of actions brought under subsection (e)(2).

4 Such contract shall be enforceable with respect to benefits

5 provided to the alien until such time as the alien achieves

6 United States citizenship through naturalization pursuant

7 to chapter 2 of title III.

8 ‘‘(b) FORMS.—Not later than 90 days after the date

9 of enactment of this section, the Attorney General, in con10 sultation with the Secretary of State and the Secretary

11 of Health and Human Services, shall formulate an affida12 vit of support consistent with the provisions of this sec13 tion.

14 ‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this

15 section shall be construed to grant third party beneficiary

16 rights to any sponsored alien under an affidavit of

17 support.

18 ‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—(1)

19 The sponsor shall notify the Federal Government and the

20 State in which the sponsored alien is currently resident

21 within 30 days of any change of address of the sponsor

22 during the period specified in subsection (a)(1).

23 ‘‘(2) Any person subject to the requirement of para24 graph (1) who fails to satisfy such requirement shall be

25 subject to a civil penalty of—
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1 ‘‘(A) not less than $250 or more than $2,000,

2 or

3 ‘‘(B) if such failure occurs with knowledge that

4 the sponsored alien has received any benefit under

5 any means-tested public benefits program, not less

6 than $2,000 or more than $5,000.

7 ‘‘(e) REIMBURSEMENT OF GOVERNMENT EX8 PENSES.—(1)(A) Upon notification that a sponsored alien

9 has received any benefit under any means-tested public

10 benefits program, the appropriate Federal, State, or local

11 official shall request reimbursement by the sponsor in the

12 amount of such assistance.

13 ‘‘(B) The Attorney General, in consultation with the

14 Secretary of Health and Human Services, shall prescribe

15 such regulations as may be necessary to carry out sub16 paragraph (A).

17 ‘‘(2) If within 45 days after requesting reimburse18 ment, the appropriate Federal, State, or local agency has

19 not received a response from the sponsor indicating a will20 ingness to commence payments, an action may be brought

21 against the sponsor pursuant to the affidavit of support.

22 ‘‘(3) If the sponsor fails to abide by the repayment

23 terms established by such agency, the agency may, within

24 60 days of such failure, bring an action against the spon25 sor pursuant to the affidavit of support.
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1 ‘‘(4) No cause of action may be brought under this

2 subsection later than 10 years after the alien last received

3 any benefit under any means-tested public benefits pro4 gram.

5 ‘‘(f) DEFINITIONS.—For the purposes of this sec6 tion—

7 ‘‘(1) SPONSOR.—The term ‘sponsor’ means an

8 individual who—

9 ‘‘(A) is a citizen or national of the United

10 States or an alien who is lawfully admitted to

11 the United States for permanent residence;

12 ‘‘(B) is 18 years of age or over; and

13 ‘‘(C) is domiciled in any State.

14 ‘‘(2) MEANS-TESTED PUBLIC BENEFITS PRO15 GRAM.—The term ‘means-tested public benefits pro16 gram’ means a program of public benefits (including

17 cash, medical, housing, and food assistance and so18 cial services) of the Federal Government or of a

19 State or political subdivision of a State in which the

20 eligibility of an individual, household, or family eligi21 bility unit for benefits under the program, or the

22 amount of such benefits, or both are determined on

23 the basis of income, resources, or financial need of

24 the individual, household, or unit.’’.
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1 (b) CLERICAL AMENDMENT.—The table of contents

2 of such Act is amended by inserting after the item relating

3 to section 213 the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

4 (c) EFFECTIVE DATE.—Subsection (a) of section

5 213A of the Immigration and Nationality Act, as inserted

6 by subsection (a) of this section, shall apply to affidavits

7 of support executed on or after a date specified by the

8 Attorney General, which date shall be not earlier than 60

9 days (and not later than 90 days) after the date the Attor10 ney General formulates the form for such affidavits under

11 subsection (b) of such section.

12 Subtitle D—General Provisions

13 SEC. 431. DEFINITIONS.

14 (a) IN GENERAL.—Except as otherwise provided in

15 this section, the terms used in this title have the same

16 meaning given such terms in section 101(a) of the Immi17 gration and Nationality Act.

18 (b) LAWFUL PRESENCE.—For purposes of this title,

19 the determination of whether an alien is lawfully present

20 in the United States shall be made in accordance with reg21 ulations of the Attorney General. An alien shall not be

22 considered to be lawfully present in the United States for

23 purposes of this title merely because the alien may be con24 sidered to be permanently residing in the United States

25 under color of law for purposes of any particular program.
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1 (c) STATE.—As used in this title, the term ‘‘State’’

2 includes the District of Columbia, Puerto Rico, the Virgin

3 Islands, Guam, the Northern Mariana Islands, and Amer4 ican Samoa.

5 (d) PUBLIC BENEFITS PROGRAMS.—As used in this

6 title—

7 (1) MEANS-TESTED PROGRAM.—The term

8 ‘‘means-tested public benefits program’’ means a

9 program of public benefits (including cash, medical,

10 housing, and food assistance and social services) of

11 the Federal Government or of a State or political

12 subdivision of a State in which the eligibility of an

13 individual, household, or family eligibility unit for

14 benefits under the program, or the amount of such

15 benefits, or both are determined on the basis of in16 come, resources, or financial need of the individual,

17 household, or unit.

18 (2) FEDERAL MEANS-TESTED PUBLIC BENE19 FITS PROGRAM.—The term ‘‘Federal means-tested

20 public benefits program’’ means a means-tested pub21 lic benefits program of (or contributed to by) the

22 Federal Government and under which the Federal

23 Government has specified standards for eligibility

24 and includes the programs specified in section

25 403(a).
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1 (3) STATE MEANS-TESTED PUBLIC BENEFITS

2 PROGRAM.—The term ‘‘State means-tested public

3 benefits program’’ means a means-tested public ben4 efits program of a State or political subdivision of a

5 State under which the State or political subdivision

6 specifies the standards for eligibility, and does not

7 include any Federal means-tested public benefits

8 program.

9 SEC. 432. CONSTRUCTION.

10 Nothing in this title shall be construed as addressing

11 alien eligibility for governmental programs that are not

12 means-tested public benefits programs.

13 Subtitle E—Conforming

14 Amendments

15 SEC. 441. CONFORMING AMENDMENTS RELATING TO AS16 SISTED HOUSING.

17 (a) LIMITATIONS ON ASSISTANCE.—Section 214 of

18 the Housing and Community Development Act of 1980

19 (42 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 Cran3 ston-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’’’

9 and 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 De15 velopment, with respect to financial assistance ad16 ministered by such Secretary and financial assist17 ance under subtitle A of title III of the Cranston18 Gonzalez National Affordable Housing Act; and

19 ‘‘(2) the Secretary of Agriculture, with respect

20 to financial assistance administered by such Sec21 retary.’’.

22 (b) CONFORMING AMENDMENTS.—Section 501(h) of

23 the Housing Act of 1949 (42 U.S.C. 1471(h)) is

24 amended—

25 (1) by striking ‘‘(1)’’;
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1 (2) by striking ‘‘by the Secretary of Housing

2 and Urban Development’’; and

3 (3) by striking paragraph (2).

4 TITLE V—FOOD STAMP REFORM

5 AND COMMODITY DISTRIBUTION

6 SEC. 501. SHORT TITLE.

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

8 and Commodity Distribution Act’’.

9 Subtitle A—Commodity

10 Distribution Provisions

11 SEC. 511. SHORT TITLE.

12 This subtitle may be cited as the ‘‘Commodity Dis13 tribution Act of 1995’’.

14 SEC. 512. AVAILABILITY OF COMMODITIES.

15 (a) Notwithstanding any other provision of law, the

16 Secretary of Agriculture (hereinafter in this subtitle re17 ferred to as the ‘‘Secretary’’) is authorized during fiscal

18 years 1996 through 2000 to purchase a variety of nutri19 tious and useful commodities and distribute such commod20 ities to the States for distribution in accordance with this

21 subtitle.

22 (b) In addition to the commodities described in sub23 section (a), the Secretary may expend funds made avail24 able to carry out section 32 of the Act of August 24, 1935

25 (7 U.S.C. 612c), which are not expended or needed to
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1 carry out such sections, to purchase, process, and distrib2 ute commodities of the types customarily purchased under

3 such section to the States for distribution in accordance

4 with this subtitle.

5 (c) In addition to the commodities described in sub6 sections (a) and (b), agricultural commodities and the

7 products thereof made available under clause (2) of the

8 second sentence of section 32 of the Act of August 24,

9 1935 (7 U.S.C. 612c), may be made available by the Sec10 retary to the States for distribution in accordance with

11 this subtitle.

12 (d) In addition to the commodities described in sub13 sections (a), (b), and (c), commodities acquired by the

14 Commodity Credit Corporation that the Secretary deter15 mines, in the discretion of the Secretary, are in excess of

16 quantities need to—

17 (1) carry out other domestic donation pro18 grams;

19 (2) meet other domestic obligations;

20 (3) meet international market development and

21 food aid commitments; and

22 (4) carry out the farm price and income sta23 bilization purposes of the Agricultural Adjustment

24 Act of 1938, the Agricultural Act of 1949, and the

25 Commodity Credit Corporation Charter Act;
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1 shall be made available by the Secretary, without charge

2 or credit for such commodities, to the States for distribu3 tion in accordance with this subtitle.

4 (e) During each fiscal year, the types, varieties, and

5 amounts of commodities to be purchased under this sub6 title shall be determined by the Secretary. In purchasing

7 such commodities, except those commodities purchased

8 pursuant to section 520, the Secretary shall, to the extent

9 practicable and appropriate, make purchases based on—

10 (1) agricultural market conditions;

11 (2) the preferences and needs of States and dis12 tributing agencies; and

13 (3) the preferences of the recipients.

14 SEC. 513. STATE, LOCAL AND PRIVATE SUPPLEMENTATION

15 OF COMMODITIES.

16 (a) The Secretary shall establish procedures under

17 which State and local agencies, recipient agencies, or any

18 other entity or person may supplement the commodities

19 distributed under this subtitle for use by recipient agencies

20 with nutritious and wholesome commodities that such en21 tities or persons donate for distribution, in all or part of

22 the State, in addition to the commodities otherwise made

23 available under this subtitle.

24 (b) States and eligible recipient agencies may use—
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1 (1) the funds appropriated for administrative

2 cost under section 519(b);

3 (2) equipment, structures, vehicles, and all

4 other facilities involved in the storage, handling, or

5 distribution of commodities made available under

6 this subtitle; and

7 (3) the personnel, both paid or volunteer, in8 volved in such storage, handling, or distribution;

9 to store, handle or distribute commodities donated for use

10 under subsection (a).

11 (c) States and recipient agencies shall continue, to

12 the maximum extent practical, to use volunteer workers,

13 and commodities and other foodstuffs donated by chari14 table and other organizations, in the distribution of com15 modities under this subtitle.

16 SEC. 514. STATE PLAN.

17 (a) A State seeking to receive commodities under this

18 subtitle shall submit a plan of operation and administra19 tion every four years to the Secretary for approval. The

20 plan may be amended at any time, with the approval of

21 the Secretary.

22 (b) The State plan, at a minimum, shall—

23 (1) designate the State agency responsible for

24 distributing the commodities received under this sub25 title;
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1 (2) set forth a plan of operation and adminis2 tration to expeditiously distribute commodities under

3 this subtitle in quantities requested to eligible recipi4 ent agencies in accordance with sections 516 and

5 520;

6 (3) set forth the standards of eligibility for re7 cipient agencies; and

8 (4) set forth the standards of eligibility for indi9 vidual or household recipients of commodities, which

10 at minimum shall require—

11 (A) individuals or households to be com12 prised of needy persons; and

13 (B) individual or household members to be

14 residing in the geographic location served by

15 the distributing agency at the time of applica16 tion for assistance.

17 (c) The Secretary shall encourage each State receiv18 ing commodities under this subtitle to establish a State

19 advisory board consisting of representatives of all inter20 ested entities, both public and private, in the distribution

21 of commodities received under this subtitle in the State.

22 (d) A State agency receiving commodities under this

23 subtitle may—

24 (1)(A) enter into cooperative agreements with

25 State agencies of other States to jointly provide
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1 commodities received under this subtitle to eligible

2 recipient agencies that serve needy persons in a sin3 gle geographical area which includes such States; or

4 (B) transfer commodities received under this

5 subtitle to any such eligible recipient agency in the

6 other State under such agreement; and

7 (2) advise the Secretary of an agreement en8 tered into under this subsection and the transfer of

9 commodities made pursuant to such agreement.

10 SEC. 515. ALLOCATION OF COMMODITIES TO STATES.

11 (a) In each fiscal year, except for those commodities

12 purchased under section 520, the Secretary shall allocate

13 the commodities distributed under this subtitle as follows:

14 (1) 60 percent of the such total value of com15 modities shall be allocated in a manner such that the

16 value of commodities allocated to each State bears

17 the same ratio to 60 percent of such total value as

18 the number of persons in households within the

19 State having incomes below the poverty line bears to

20 the total number of persons in households within all

21 States having incomes below such poverty line. Each

22 State shall receive the value of commodities allocated

23 under this paragraph.

24 (2) 40 percent of such total value of commod25 ities shall be allocated in a manner such that the
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1 value of commodities allocated to each State bears

2 the same ratio to 40 percent of such total value as

3 the average monthly number of unemployed persons

4 within the State bears to the average monthly num5 ber of unemployed persons within all States during

6 the same fiscal year. Each State shall receive the

7 value of commodities allocated to the State under

8 this paragraph.

9 (b)(1) The Secretary shall notify each State of the

10 amount of commodities that such State is allotted to re11 ceive under subsection (a) or this subsection, if applicable.

12 Each State shall promptly notify the Secretary if such

13 State determines that it will not accept any or all of the

14 commodities made available under such allocation. On

15 such a notification by a State, the Secretary shall reallo16 cate and distribute such commodities as the Secretary

17 deems appropriate and equitable. The Secretary shall fur18 ther establish procedures to permit States to decline to

19 receive portions of such allocation during each fiscal year

20 as the State determines is appropriate and the Secretary

21 shall reallocate and distribute such allocation as the Sec22 retary deems appropriate and equitable.

23 (2) In the event of any drought, flood, hurricane, or

24 other natural disaster affecting substantial numbers of

25 persons in a State, county, or parish, the Secretary may
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1 request that States unaffected by such a disaster consider

2 assisting affected States by allowing the Secretary to re3 allocate commodities from such unaffected State to States

4 containing areas adversely affected by the disaster.

5 (c) Purchases of commodities under this subtitle shall

6 be made by the Secretary at such times and under such

7 conditions as the Secretary determines appropriate within

8 each fiscal year. All commodities so purchased for each

9 such fiscal year shall be delivered at reasonable intervals

10 to States based on the allocations and reallocations made

11 under subsections (a) and (b), and or carry out section

12 520, not later than December 31 of the following fiscal

13 year.

14 SEC. 516. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF

15 COMMODITIES.

16 (a) In distributing the commodities allocated under

17 subsections (a) and (b) of section 515, the State agency,

18 under procedures determined by the State agency, shall

19 offer, or otherwise make available, its full allocation of

20 commodities for distribution to emergency feeding organi21 zations.

22 (b) If the State agency determines that the State will

23 not exhaust the commodities allocated under subsections

24 (a) and (b) of section 515 through distribution to organi25 zations referred to in subsection (a), its remaining alloca-
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1 tion of commodities shall be distributed to charitable insti2 tutions described in section 523(3) not receiving commod3 ities under subsection (a).

4 (c) If the State agency determines that the State will

5 not exhaust the commodities allocated under subsections

6 (a) and (b) of section 515 through distribution to organi7 zations referred to in subsections (a) and (b), its remain8 ing allocation of commodities shall be distributed to any

9 eligible recipient agency not receiving commodities under

10 subsections (a) and (b).

11 SEC. 517. INITIAL PROCESSING COSTS.

12 The Secretary may use funds of the Commodity

13 Credit Corporation to pay the costs of initial processing

14 and packaging of commodities to be distributed under this

15 subtitle into forms and in quantities suitable, as deter16 mined by the Secretary, for use by the individual house17 holds or eligible recipient agencies, as applicable. The Sec18 retary may pay such costs in the form of Corporation19 owned commodities equal in value to such costs. The Sec20 retary shall ensure that any such payments in kind will

21 not displace commercial sales of such commodities.

22 SEC. 518. ASSURANCES; ANTICIPATED USE.

23 (a) The Secretary shall take such precautions as the

24 Secretary deems necessary to ensure that commodities

25 made available under this subtitle will not displace com-
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1 mercial sales of such commodities or the products thereof.

2 The Secretary shall submit to the Committee on Agri3 culture of the House of Representatives and the Commit4 tee on Agriculture, Nutrition, and Forestry of the Senate

5 by December 31, 1997, and not less than every two years

6 thereafter, a report as to whether and to what extent such

7 displacements or substitutions are occurring.

8 (b) The Secretary shall determine that commodities

9 provided under this subtitle shall be purchased and dis10 tributed only in quantities that can be consumed without

11 waste. No eligible recipient agency may receive commod12 ities under this subtitle in excess of anticipated use, based

13 on inventory records and controls, or in excess of its ability

14 to accept and store such commodities.

15 SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

16 (a) PURCHASE OF COMMODITIES.—To carry out this

17 subtitle, there are authorized to be appropriated

18 $260,000,000 for each of the fiscal years 1996 through

19 2000 to purchase, process, and distribute commodities to

20 the States in accordance with this subtitle.

21 (b) ADMINISTRATIVE FUNDS.—

22 (1) There are authorized to be appropriated

23 $40,000,000 for each of the fiscal years 1996

24 through 2000 for the Secretary to make available to

25 the States for State and local payments for costs as-
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1 sociated with the distribution of commodities by eli2 gible recipient agencies under this subtitle, excluding

3 costs associated with the distribution of those com4 modities distributed under section 520. Funds ap5 propriated under this paragraph for any fiscal year

6 shall be allocated to the States on an advance basis

7 dividing such funds among the States in the same

8 proportions as the commodities distributed under

9 this subtitle for such fiscal year are allocated among

10 the States. If a State agency is unable to use all of

11 the funds so allocated to it, the Secretary shall re12 allocate such unused funds among the other States

13 in a manner the Secretary deems appropriate and

14 equitable.

15 (2)(A) A State shall make available in each fis16 cal year to eligible recipient agencies in the State

17 not less than 40 percent of the funds received by the

18 State under paragraph (1) for such fiscal year, as

19 necessary to pay for, or provide advance payments

20 to cover, the allowable expenses of eligible recipient

21 agencies for distributing commodities to needy per22 sons, but only to the extent such expenses are actu23 ally so incurred by such recipient agencies.

24 (B) As used in this paragraph, the term ‘‘allow25 able expenses’’ includes—
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1 (i) costs of transporting, storing, handling,

2 repackaging, processing, and distributing com3 modities incurred after such commodities are

4 received by eligible recipient agencies;

5 (ii) costs associated with determinations of

6 eligibility, verification, and documentation;

7 (iii) costs of providing information to per8 sons receiving commodities under this subtitle

9 concerning the appropriate storage and prepa10 ration of such commodities; and

11 (iv) costs of recordkeeping, auditing, and

12 other administrative procedures required for

13 participation in the program under this subtitle.

14 (C) If a State makes a payment, using State

15 funds, to cover allowable expenses of eligible recipi16 ent agencies, the amount of such payment shall be

17 counted toward the amount a State must make

18 available for allowable expenses of recipient agencies

19 under this paragraph.

20 (3) States to which funds are allocated for a

21 fiscal year under this subsection shall submit finan22 cial reports to the Secretary, on a regular basis, as

23 to the use of such funds. No such funds may be

24 used by States or eligible recipient agencies for costs

25 other than those involved in covering the expenses
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1 related to the distribution of commodities by eligible

2 recipient agencies.

3 (4)(A) Except as provided in subparagraph (B),

4 to be eligible to receive funds under this subsection,

5 a State shall provide in cash or in kind (according

6 to procedures approved by the Secretary for certify7 ing these in-kind contributions) from non-Federal

8 sources a contribution equal to the difference be9 tween—

10 (i) the amount of such funds so received;

11 and

12 (ii) any part of the amount allocated to the

13 State and paid by the State—

14 (I) to eligible recipient agencies; or

15 (II) for the allowable expenses of such

16 recipient agencies; for use in carrying out

17 this subtitle.

18 (B) Funds allocated to a State under this sec19 tion may, upon State request, be allocated before

20 States satisfy the matching requirement specified in

21 subparagraph (A), based on the estimated contribu22 tion required. The Secretary shall periodically rec23 oncile estimated and actual contributions and adjust

24 allocations to the State to correct for overpayments

25 and underpayments.
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1 (C) Any funds distributed for administrative

2 costs under section 520(b) shall not be covered by

3 this paragraph.

4 (5) States may not charge for commodities

5 made available to eligible recipient agencies, and

6 may not pass on to such recipient agencies the cost

7 of any matching requirements, under this subtitle.

8 (c) The value of the commodities made available

9 under subsections (c) and (d) of section 512, and the

10 funds of the Commodity Credit Corporation used to pay

11 the costs of initial processing, packaging (including forms

12 suitable for home use), and delivering commodities to the

13 States shall not be charged against appropriations author14 ized by this section.

15 SEC. 520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

16 (a) From the funds appropriated under section

17 519(a), $94,500,000 shall be used for each fiscal year to

18 purchase and distribute commodities to supplemental feed19 ing programs serving woman, infants, and children or el20 derly individuals (hereinafter in this section referred to as

21 the ‘‘commodity supplemental food program’’), or serving

22 both groups wherever located.

23 (b) Not more than 20 percent of the funds made

24 available under subsection (a) shall be made available to

25 the States for State and local payments of administrative
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1 costs associated with the distribution of commodities by

2 eligible recipient agencies under this section. Administra3 tive costs for the purposes of the commodity supplemental

4 food program shall include, but not be limited to, expenses

5 for information and referral, operation, monitoring, nutri6 tion education, start-up costs, and general administration,

7 including staff, warehouse and transportation personnel,

8 insurance, and administration of the State or local office.

9 (c)(1) During each fiscal year the commodity supple10 mental food program is in operation, the types, varieties,

11 and amounts of commodities to be purchased under this

12 section shall be determined by the Secretary, but, if the

13 Secretary proposes to make any significant changes in the

14 types, varieties, or amounts from those that were available

15 or were planned at the beginning of the fiscal year the

16 Secretary shall report such changes before implementation

17 to the Committee on Agriculture of the House of Rep18 resentatives and the Committee on Agriculture, Nutrition,

19 and Forestry of the Senate.

20 (2) Notwithstanding any other provision of law, the

21 Commodity Credit Corporation shall, to the extent that

22 the Commodity Credit Corporation inventory levels per23 mit, provide not less than 9,000,000 pounds of cheese and

24 not less than 4,000,000 pounds of nonfat dry milk in each

25 of the fiscal years 1996 through 2000 to the Secretary.
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1 The Secretary shall use such amounts of cheese and non2 fat dry milk to carry out the commodity supplemental food

3 program before the end of each fiscal year.

4 (d) The Secretary shall, in each fiscal year, approve

5 applications of additional sites for the program, including

6 sites that serve only elderly persons, in areas in which the

7 program currently does not operate, to the full extent that

8 applications can be approved within the appropriations

9 available for the program for the fiscal year and without

10 reducing actual participation levels (including participa11 tion of elderly persons under subsection (e)) in areas in

12 which the program is in effect.

13 (e) If a local agency that administers the commodity

14 supplemental food program determines that the amount

15 of funds made available to the agency to carry out this

16 section exceeds the amount of funds necessary to provide

17 assistance under such program to women, infants, and

18 children, the agency, with the approval of the Secretary,

19 may permit low-income elderly persons (as defined by the

20 Secretary) to participate in and be served by such pro21 gram.

22 (f)(1) If it is necessary for the Secretary to pay a

23 significantly higher than expected price for one or more

24 types of commodities purchased under this section, the

25 Secretary shall promptly determine whether the price is
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1 likely to cause the number of persons that can be served

2 in the program in a fiscal year to decline.

3 (2) If the Secretary determines that such a decline

4 would occur, the Secretary shall promptly notify the State

5 agencies charged with operating the program of the de6 cline and shall ensure that a State agency notify all local

7 agencies operating the program in the State of the decline.

8 (g) Commodities distributed to States pursuant to

9 this section shall not be considered in determining the

10 commodity allocation to each State under section 515 or

11 priority of distribution under section 516.

12 SEC. 521. COMMODITIES NOT INCOME.

13 Notwithstanding any other provision of law, commod14 ities distributed under this subtitle shall not be considered

15 income or resources for purposes of determining recipient

16 eligibility under any Federal, State, or local means-tested

17 program.

18 SEC. 522. PROHIBITION AGAINST CERTAIN STATE

19 CHARGES.

20 Whenever a commodity is made available without

21 charge or credit under this subtitle by the Secretary for

22 distribution within the States to eligible recipient agencies,

23 the State may not charge recipient agencies any amount

24 that is in excess of the State’s direct costs of storing, and

25 transporting to recipient agencies the commodities minus
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1 any amount the Secretary provides the State for the costs

2 of storing and transporting such commodities.

3 SEC. 523. DEFINITIONS.

4 As used in this subtitle:

5 (1) The term ‘‘average monthly number of un6 employed persons’’ means the average monthly num7 ber of unemployed persons within a State in the

8 most recent fiscal year for which such information is

9 available as determined by the Bureau of Labor Sta10 tistics of the Department of Labor.

11 (2) The term ‘‘elderly persons’’ means individ12 uals 60 years of age or older.

13 (3) The term ‘‘eligible recipient agency’’ means

14 a public or nonprofit organization that admin15 isters—

16 (A) an institution providing commodities to

17 supplemental feeding programs serving women,

18 infants, and children or serving elderly persons,

19 or serving both groups;

20 (B) an emergency feeding organization;

21 (C) a charitable institution (including a

22 hospital and a retirement home, but excluding

23 a penal institution) to the extent that such in24 stitution serves needy persons;
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1 (D) a summer camp for children, or a

2 child nutrition program providing food service;

3 (E) a nutrition project operating under the

4 Older Americans Act of 1965, including such

5 project that operates a congregate nutrition site

6 and a project that provides home-delivered

7 meals; or

8 (F) a disaster relief program;and that has

9 been designated by the appropriate State agen10 cy, or by the Secretary, and approved by the

11 Secretary for participation in the program es12 tablished under this subtitle.

13 (4) The term ‘‘emergency feeding organization’’

14 means a public or nonprofit organization that ad15 ministers activities and projects (including the activi16 ties and projects of a charitable institution, a food

17 bank, a food pantry, a hunger relief center, a soup

18 kitchen, or a similar public or private nonprofit eligi19 ble recipient agency) providing nutrition assistance

20 to relieve situations of emergency and distress

21 through the provision of food to needy persons, in22 cluding low-income and unemployed persons.

23 (5) The term ‘‘food bank’’ means a public and

24 charitable institution that maintains an established

25 operation involving the provision of food or edible
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1 commodities, or the products thereof, to food pan2 tries, soup kitchens, hunger relief centers, or other

3 food or feeding centers that, as an integral part of

4 their normal activities, provide meals or food to feed

5 needy persons on a regular basis.

6 (6) The term ‘‘food pantry’’ means a public or

7 private nonprofit organization that distributes food

8 to low-income and unemployed households, including

9 food from sources other than the Department of Ag10 riculture, to relieve situations of emergency and dis11 tress.

12 (7) The term ‘‘needy persons’’ means—

13 (A) individuals who have low incomes or

14 who are unemployed, as determined by the

15 State (in no event shall the income of such indi16 vidual or household exceed 185% of the poverty

17 line);

18 (B) households certified as eligible to par19 ticipate in the food stamp program under the

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

21 seq.); or

22 (C) individuals or households participating

23 in any other Federal, or Federally assisted,

24 means-tested program.
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1 (8) The term ‘‘poverty line’’ has the same

2 meaning given such term in section 673(2) of the

3 Community Services Block Grant Act (42 U.S.C.

4 9902(2)).

5 (9) The term ‘‘soup kitchen’’ means a public

6 and charitable institution that, as integral part of its

7 normal activities, maintains an established feeding

8 operation to provide food to needy homeless persons

9 on a regular basis.

10 SEC. 524. REGULATIONS.

11 (a) The Secretary shall issue regulations within 120

12 days to implement this subtitle.

13 (b) In administering this subtitle, the Secretary shall

14 minimize, to the maximum extent practicable, the regu15 latory, recordkeeping, and paperwork requirements im16 posed on eligible recipient agencies.

17 (c) The Secretary shall as early as feasible but not

18 later than the beginning of each fiscal year, publish in the

19 Federal Register a nonbinding estimate of the types and

20 quantities of commodities that the Secretary anticipates

21 are likely to be made available under the commodity dis22 tribution program under this subtitle during the fiscal

23 year.

24 (d) The regulations issued by the Secretary under

25 this section shall include provisions that set standards
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1 with respect to liability for commodity losses for the com2 modities distributed under this subtitle in situations in

3 which there is no evidence of negligence or fraud, and con4 ditions for payment to cover such losses. Such provisions

5 shall take into consideration the special needs and cir6 cumstances of eligible recipient agencies.

7 SEC. 525. FINALITY OF DETERMINATIONS.

8 Determinations made by the Secretary under this

9 subtitle and the facts constituting the basis for any dona10 tion of commodities under this subtitle, or the amount

11 thereof, when officially determined in conformity with the

12 applicable regulations prescribed by the Secretary, shall

13 be final and conclusive and shall not be reviewable by any

14 other officer or agency of the Government.

15 SEC. 526. SALE OF COMMODITIES PROHIBITED.

16 Except as otherwise provided in section 517, none of

17 the commodities distributed under this subtitle shall be

18 sold or otherwise disposed of in commercial channels in

19 any form.

20 SEC. 527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

21 (a) The Secretary, or a designee of the Secretary,

22 shall have the authority to—

23 (1) determine the amount of, settle, and adjust

24 any claim arising under this subtitle; and
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1 (2) waive such a claim if the Secretary deter2 mines that to do so will serve the purposes of this

3 subtitle.

4 (b) Nothing contained in this section shall be con5 strued to diminish the authority of the Attorney General

6 of the United States under section 516 of title 28, United

7 States Code, to conduct litigation on behalf of the United

8 States.

9 SEC. 528. REPEALERS; AMENDMENTS.

10 (a) The Emergency Food Assistance Act of 1983 (7

11 U.S.C. 612c note) is repealed.

12 (b) AMENDMENTS.—

13 (1) The Hunger Prevention Act of 1988 (7

14 U.S.C. 612c note) is amended—

15 (A) by striking section 110;

16 (B) by striking subtitle C of title II; and

17 (C) by striking section 502.

18 (2) The Commodity Distribution Reform Act

19 and WIC Amendments of 1987 (7 U.S.C. 612c note)

20 is amended by striking section 4.

21 (3) The Charitable Assistance and Food Bank

22 Act of 1987 (7 U.S.C. 612c note) is amended by

23 striking section 3.

24 (4) The Food Security Act of 1985 (7 U.S.C.

25 612c note) is amended—
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1 (A) by striking section 1571; and

2 (B) in section 1562(d), by striking ‘‘sec3 tion 4 of the Agricultural and Consumer Pro4 tection Act of 1973’’ and inserting ‘‘section 110

5 of the Commodity Distribution Act of 1995’’.

6 (5) The Agricultural and Consumer Protection

7 Act of 1973 (7 U.S.C. 612c note) is amended—

8 (A) in section 4(a), by striking ‘‘institu9 tions (including hospitals and facilities caring

10 for needy infants and children), supplemental

11 feeding programs serving women, infants and

12 children or elderly persons, or both, wherever

13 located, disaster areas, summer camps for chil14 dren’’ and inserting ‘‘disaster areas’’;

15 (B) in subsection 4(c), by striking ‘‘the

16 Emergency Food Assistance Act of 1983’’ and

17 inserting ‘‘the Commodity Distribution Act of

18 1995’’; and

19 (C) by striking section 5.

20 (6) The Food, Agriculture, Conservation, and

21 Trade Act of 1990 (7 U.S.C. 612c note) is amended

22 by striking section 1773(f).
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1 Subtitle B—Simplification and

2 Reform of Food Stamp Program

3 SEC. 531. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Food Stamp Sim5 plification and Reform Act of 1995’’.

6 CHAPTER 1—SIMPLIFIED FOOD STAMP

7 PROGRAM AND STATE ASSISTANCE

8 FOR NEEDY FAMILIES

9 SEC. 541. ESTABLISHMENT OF SIMPLIFIED FOOD STAMP

10 PROGRAM.

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

12 U.S.C. 2013(a)) is amended—

13 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

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

15 paragraph:

16 ‘‘(2) At the request of the State agency, a State may

17 operate a program, as provided in section 24, within the

18 State or any political subdivisions within the State in

19 which households with one or more members receiving reg20 ular cash benefits under the program established by the

21 State under the Temporary Assistance for Needy Families

22 Block Grant will be issued food stamp benefits in accord23 ance with the rules and procedures established—

24 ‘‘(A) by the State under the Temporary Assist25 ance for Needy Families Block Grant or this Act; or
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1 ‘‘(B) under the food stamp program.’’.

2 SEC. 542. SIMPLIFIED FOOD STAMP PROGRAM.

3 (a) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

4 seq.) is amended by adding the following new section:

5 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

6 ‘‘(a) If a State elects to operate a program under sec7 tion 4(a)(2) within the State or any political subdivision

8 within the State—

9 ‘‘(1) households in which all members receive

10 regular cash benefits under the program established

11 by the State under the Temporary Assistance for

12 Needy Families Block Grant shall be automatically

13 eligible to participate in the food stamp program;

14 and

15 ‘‘(2) benefits under such program shall be de16 termined under the rules and procedures established

17 by the State or political subdivision under the Tem18 porary Assistance for Needy Families Block Grant

19 or under the food stamp program, subject to sub20 section (g).

21 ‘‘(b) In approving a State plan to carry out a pro22 gram under section 4(a)(2), the Secretary shall certify

23 that the average level of food stamp benefits per household

24 participating in the program under such section for the

25 State or political subdivision in which such program is in
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1 operation is not expected to exceed the average level of

2 food stamp benefits per household that received benefits

3 under the program established by a State under part A

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

5 seq.) in such area in the preceding fiscal year, adjusted

6 for any changes in the thrifty food plan under section 3(o).

7 The Secretary shall compute the permissible average level

8 of food stamp benefits per household each year for each

9 State or political subdivision in which such program is in

10 operation and may require a State to report any informa11 tion necessary to make such computation.

12 ‘‘(c) When the Secretary determines that the average

13 level of food stamp benefits per household provided by the

14 State or political subdivision under such program has ex15 ceeded the permissible average level of food stamp benefits

16 per household for the State or political subdivision in

17 which the program was in operation, the State or political

18 subdivision shall pay to the Treasury of the United States

19 the value of the food stamp benefits in excess of the per20 missible average level of food stamp benefits per household

21 in the State or political subdivision within 90 days after

22 the notification of such excess payments.

23 ‘‘(d)(1) A household against which a penalty is im24 posed (including a reduction in benefits or disqualifica25 tion) for noncompliance with the program established by
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1 the State under the Temporary Assistance for Needy

2 Families Block Grant may have the same penalty imposed

3 against it (including a reduction in benefits or disqualifica4 tion) in the program administered under this section.

5 ‘‘(2) If the penalty for noncompliance with the pro6 gram established by the State under the Temporary As7 sistance for Needy Families block grant is a reduction in

8 benefits in such program, the household shall not receive

9 an increased allotment under the program administered

10 under this section as a result of a decrease in the house11 hold’s income (as determined by the State under this sec12 tion) caused by such penalty.

13 ‘‘(3) Any household disqualified from the program

14 administered under this subsection may, after such dis15 qualification period has expired, apply for food stamp ben16 efits under this Act and shall be treated as a new appli17 cant.

18 ‘‘(e) If a State or political subdivision, at its option,

19 operates a program under section 4(a)(2) for households

20 that include any member who does not receive regular

21 cash benefits under the program established by the State

22 under the Temporary Assistance for Needy Families Block

23 Grant, the Secretary shall ensure that the State plan pro24 vides that household eligibility shall be determined under

25 this Act, benefits may be determined under the rules and
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1 procedures established by the State under the Temporary

2 Assistance for Needy Families Block Grant or this Act,

3 and benefits provided under this section shall be equitably

4 distributed among all household members.

5 ‘‘(f)(1) Under the program operated under section

6 4(a)(2), the State may elect to provide cash assistance in

7 lieu of allotments to all households that include a member

8 who is employed and whose employment produces for the

9 benefit of the member’s household income that satisfies

10 the requirements of paragraph (2).

11 ‘‘(2) The State, in electing to provide cash assistance

12 under paragraph (1), at a minimum shall require that

13 such earned income is—

14 ‘‘(A) not less that $350 per month;

15 ‘‘(B) earned from employment provided by a

16 nongovernmental employer, as determined by the

17 State; and

18 ‘‘(C) received from the same employer for a pe19 riod of employment of not less than 3 consecutive

20 months.

21 ‘‘(3) If a State that makes the election described in

22 paragraph (1) identifies each household that receives cash

23 assistance under this subsection—

24 ‘‘(A) the Secretary shall pay to the State an

25 amount equal to the value of the allotment that such
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1 household would be eligible to receive under this sec2 tion but for the operation of this subsection;

3 ‘‘(B) the State shall provide such amount to the

4 household as cash assistance in lieu of such allot5 ment; and

6 ‘‘(C) for purposes of the food stamp program

7 (other than this section and section 4(a)(2))—

8 ‘‘(i) such cash assistance shall be consid9 ered to be an allotment; and

10 ‘‘(ii) such household shall not receive any

11 other food stamp benefit for the period for

12 which such cash assistance is provided.

13 ‘‘(4) A State that makes the election in paragraph

14 (1) shall—

15 ‘‘(A) increase the cash benefits provided to

16 households under this subsection to compensate for

17 any State or local sales tax that may be collected on

18 purchases of food by any household receiving cash

19 benefits under this subsection, unless the Secretary

20 determines on the basis of information provided by

21 the State that the increase is unnecessary on the

22 basis of the limited nature of the items subject to

23 the State or local sales tax; and

24 ‘‘(B) pay the cost of any increase in cash bene25 fits required by paragraph (1).
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1 ‘‘(5) After a State operates a program under this sub2 section for 2 years, the State shall provide to the Secretary

3 a written evaluation of the impact of cash assistance.

4 ‘‘(g) In operating a program under section 4(a)(2),

5 the State or political subdivision may follow the rules and

6 procedures established by the State or political subdivision

7 under the Temporary Assistance for Needy Families Block

8 Grant or under the food stamp program, except that the

9 State or political subdivision shall comply with the require10 ments of—

11 ‘‘(1) subsections (a) through (g) of section 7

12 (relating to the issuance and use of coupons);

13 ‘‘(2) section 8(a) (relating to the value of allot14 ments, except that a household’s income may be de15 termined under the program established by the State

16 under the Temporary Assistance for Needy Families

17 Block Grant);

18 ‘‘(3) section 8(b) (allotment not considered in19 come or resources);

20 ‘‘(4) subsections (a), (c), (d), and (n) of section

21 11 (relating to administration);

22 ‘‘(5) paragraphs (8), (12), (17), (19), (21),

23 (26), and (27) of section 11(e) (relating to the State

24 plan);
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1 ‘‘(6) section 11(e)(10) (relating to a fair hear2 ing) or a comparable requirement established by the

3 State under the Temporary Assistance for Needy

4 Families Block Grant; and

5 ‘‘(7) section 16 (relating to administrative cost6 sharing and quality control).’’.

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

8 U.S.C. 2020(e)) is amended—

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

10 end;

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

12 the end and inserting ‘‘; and’’; and

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

14 paragraph:

15 ‘‘(26) the plans of the State agency for operat16 ing, at the election of the State, a program under

17 section 4(a)(2), including—

18 ‘‘(A) the rules and procedures to be fol19 lowed by the State to determine food stamp

20 benefits;

21 ‘‘(B) a statement specifying whether the

22 program operated by the State under section

23 4(a)(2) will include households that include

24 members who do not receive regular cash bene25 fits under the program established by the State
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1 under the Temporary Assistance for Needy

2 Families Block Grant; and

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

4 the State or political subdivision will carry out

5 a quality control system under section 16(c).’’.

6 SEC. 543. CONFORMING AMENDMENTS.

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

8 U.S.C. 2017) is amended by striking subsection (e).

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

10 U.S.C. 2026) is amended—

11 (1) by striking subsection (i); and

12 (2) by redesignating subsections (j), (k), and (l)

13 as subsections (i), (j), and (k), respectively.

14 CHAPTER 2—FOOD STAMP PROGRAM

15 SEC. 551. THRIFTY FOOD PLAN.

16 Section 3(o) of the Food Stamp Act of 1977 (7

17 U.S.C. 2012(o)) is amended by striking ‘‘(4) through Jan18 uary 1, 1980, adjust the cost of such diet every January

19 1 and July 1’’ and all that follows through the end of the

20 subsection, and inserting the following: ‘‘(4) on October

21 1, 1995, adjust the cost of the thrifty food plan to reflect

22 103 percent of the cost of the thrifty food plan in June

23 1994 and increase such amount by 2 percent, rounding

24 the result to the nearest lower dollar increment for each

25 household size, and (5) on October 1, 1996, and each Oc-
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1 tober 1 thereafter, increase the amount established for the

2 preceding October 1, before such amount was rounded, by

3 2 percent, rounding the result to the nearest lower dollar

4 increment for each household size.’’.

5 SEC. 552. INCOME DEDUCTIONS AND ENERGY ASSISTANCE.

6 (a) Section 5(d)(11) of the Food Stamp Act of 1977

7 (7 U.S.C. 2014(d)(11)) is amended—

8 (1) by striking ‘‘(A)’’; and

9 (2) by striking ‘‘or (B) under any State or local

10 laws,’’ and all that follows through ‘‘or impracticable

11 to do so,’’.

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

13 U.S.C. 2014(e)) is amended to read as follows:

14 ‘‘(e)(1) DEDUCTIONS FOR STANDARD AND EARNED

15 INCOME.—

16 ‘‘(A) In computing household income, the Sec17 retary shall allow a standard deduction of $134 a

18 month for each household, except that households in

19 Alaska, Hawaii, Guam, and the Virgin Islands of the

20 United States shall be allowed a standard deduction

21 of $229, $189, $269, and $118, respectively.

22 ‘‘(B) All households with earned income shall

23 also be allowed an additional deduction of 20 per24 cent of all earned income (other than that excluded

25 by subsection (d) of this section and that earned
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1 under section 16(j)), to compensate for taxes, other

2 mandatory deductions from salary, and work ex3 penses, except that such additional deduction shall

4 not be allowed with respect to earned income that a

5 household willfully or fraudulently fails (as proven in

6 a proceeding provided for in section 6(b)) to report

7 in a timely manner.

8 ‘‘(2) DEPENDENT CARE DEDUCTION.—The Sec9 retary shall allow households a deduction with respect to

10 expenses other than expenses paid on behalf of the house11 hold by a third party or amounts made available and ex12 cluded for the expenses under subsection (d)(3), the maxi13 mum allowable level of which shall be $200 a month for

14 each dependent child under 2 years of age and $175 a

15 month for each other dependent, for the actual cost of

16 payments necessary for the care of a dependent when such

17 care enables a household member to accept or continue

18 employment, or training or education which is preparatory

19 for employment.

20 ‘‘(3) EXCESS SHELTER EXPENSE DEDUCTION.—

21 ‘‘(A) The Secretary shall allow households,

22 other than those households containing an elderly or

23 disabled member, with respect to expenses other

24 than expenses paid on behalf of the household by a

25 third party, an excess shelter expense deduction to
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1 the extent that the monthly amount expended by a

2 household for shelter exceeds an amount equal to 50

3 percent of monthly household income after all other

4 applicable deductions have been allowed.

5 ‘‘(B) Such excess shelter expense deduction

6 shall not exceed $231 a month in the 48 contiguous

7 States and the District of Columbia, and shall not

8 exceed, in Alaska, Hawaii, Guam, and the Virgin Is9 lands of the United States, $402, $330, $280, and

10 $171 a month, respectively.

11 ‘‘(C)(i) Notwithstanding section 2605(f) of the

12 Low-Income Home Energy Assistance Act of 1981

13 (42 U.S.C. 8624(f)), a household may not claim as

14 a shelter expense any payment received, or costs

15 paid on its behalf, under the Low-Income Home En16 ergy Assistance Act of 1981 (42 U.S.C. 8621 et

17 seq.).

18 ‘‘(ii) Notwithstanding section 2605(f) of the

19 Low-Income Home Energy Assistance Act of 1981

20 (42 U.S.C. 8624(f)), a State agency may use a

21 standard utility allowance as provided under sub22 paragraph (D) for heating and cooling expenses only

23 if the household incurs out-of-pocket heating or cool24 ing expenses in excess of any payment received, or

25 costs paid on its behalf, under the Low-Income
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1 Home Energy Assistance Act of 1981 (42 U.S.C.

2 8621 et seq.).

3 ‘‘(iii) For purposes of the food stamp program,

4 assistance provided under the Low-Income Home

5 Energy Assistance Act of 1981 shall be considered

6 to be prorated over the entire heating or cooling sea7 son for which it was provided.

8 ‘‘(iv) At the end of any certification period and

9 up to one additional time during each twelve-month

10 period, a State agency shall allow a household to

11 switch between any standard utility allowance and a

12 deduction based on its actual utility costs.

13 ‘‘(D)(i) In computing the excess shelter expense

14 deduction, a State agency may use a standard utility

15 allowance in accordance with regulations promul16 gated by the Secretary, except that a State agency

17 may use an allowance which does not fluctuate with18 in a year to reflect seasonal variations.

19 ‘‘(ii) An allowance for a heating or cooling ex20 pense may not be used for a household that does not

21 incur a heating or cooling expense, as the case may

22 be, or does incur a heating or cooling expense but

23 is located in a public housing unit which has central

24 utility meters and charges households, with regard

25 to such expense, only for excess utility costs.
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1 ‘‘(iii) No such allowance may be used for a

2 household that shares such expense with, and lives

3 with, another individual not participating in the food

4 stamp program, another household participating in

5 the food stamp program, or both, unless the allow6 ance is prorated between the household and the

7 other individual, household, or both.

8 ‘‘(4) HOMELESS SHELTER DEDUCTION.—(A) A

9 State shall develop a standard homeless shelter deduction,

10 which shall not exceed $139 a month, for the expenses

11 that may reasonably be expected to be incurred by house12 holds in which all members are homeless but are not re13 ceiving free shelter throughout the month. Subject to sub14 paragraph (B), the State shall use such deduction in de15 termining eligibility and allotments for such households.

16 ‘‘(B) The Secretary may prohibit the use of the

17 standard homeless shelter deduction for households with

18 extremely low shelter costs.

19 ‘‘(5) ELDERLY AND DISABLED HOUSEHOLDS.—

20 ‘‘(A) The Secretary shall allow households con21 taining an elderly or disabled member, with respect

22 to expenses other than expenses paid on behalf of

23 the household by a third party—

24 ‘‘(i) an excess medical expense deduction

25 for that portion of the actual cost of allowable
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1 medical expenses, incurred by elderly or dis2 abled members, exclusive of special diets, that

3 exceed $35 a month; and

4 ‘‘(ii) an excess shelter expense deduction to

5 the extent that the monthly amount expended

6 by a household for shelter exceeds an amount

7 equal to 50 percent of monthly household in8 come after all other applicable deductions have

9 been allowed.

10 ‘‘(B) State agencies shall offer eligible house11 holds a method of claiming a deduction for recurring

12 medical expenses that are initially verified under the

13 excess medical expense deduction provided for in

14 subparagraph (A), in lieu of submitting information

15 or verification on actual expenses on a monthly

16 basis. The method described in the preceding sen17 tence shall be designed to minimize the administra18 tive burden for eligible elderly and disabled house19 hold members choosing to deduct their recurrent

20 medical expenses pursuant to such method, shall rely

21 on reasonable estimates of the member’s expected

22 medical expenses for the certification period (includ23 ing changes that can be reasonably anticipated

24 based on available information about the member’s

25 medical condition, public or private medical insur-
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1 ance coverage, and the current verified medical ex2 penses incurred by the member), and shall not re3 quire further reporting or verification of a change in

4 medical expenses if such a change has been antici5 pated for the certification period.

6 ‘‘(6) CHILD SUPPORT DEDUCTION.—Before deter7 mining the excess shelter expense deduction, the Secretary

8 shall allow all households a deduction for child support

9 payments made by a household member to or for an indi10 vidual who is not a member of the household if such house11 hold member was legally obligated to make such payments,

12 except that the Secretary is authorized to prescribe by reg13 ulation the methods, including calculation on a retrospec14 tive basis, that State agencies shall use to determine the

15 amount of the deduction for child support payments.’’.

16 (c) Section 11(e)(3) of the Food Stamp Act of 1977

17 (7 U.S.C. 2020(e)(3)) is amended by striking ‘‘Under the

18 rules prescribed by the Secretary, a State agency shall de19 velop standard estimates’’ and all that follows through the

20 end of the paragraph.

21 SEC. 553. VEHICLE ALLOWANCE.

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

23 U.S.C. 2014(g)(2)) is amended by striking ‘‘a level set by

24 the Secretary, which shall be $4,500 through August 31,
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1 1994,’’ and all that follows through the end of the para2 graph, and inserting ‘‘$4,550.’’.

3 SEC. 554. WORK REQUIREMENTS.

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

5 U.S.C. 2015(d)) is amended—

6 (1) in paragraph (1)(A)(ii), by striking ‘‘an em7 ployment and training program under paragraph

8 (4), to the extent required under paragraph (4), in9 cluding any reasonable employment requirements as

10 are prescribed by the State agency in accordance

11 with paragraph (4)’’ and inserting ‘‘a State job

12 search program’’;

13 (2) in paragraph (2)(A)—

14 (A) by striking ‘‘title IV of the Social Se15 curity Act (42 U.S.C. 602)’’ and inserting ‘‘the

16 program established by the State under the

17 Temporary Assistance for Needy Families

18 Block Grant’’; and

19 (B) by striking ‘‘that is comparable to a

20 requirement of paragraph (1)’’; and

21 (3) by amending paragraph (4) to read as fol22 lows:

23 ‘‘(4)(A) Except as provided in subparagraphs (B),

24 (C), and (D), an individual shall not be denied initial eligi25 bility but shall be disqualified from the food stamp pro-
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1 gram if after 90 days from the certification of eligibility

2 of such individual the individual was not employed a mini3 mum of 20 hours per week, or does not participate in a

4 program established under section 20 or a comparable

5 program established by the State or local government.

6 ‘‘(B) Subparagraph (A) shall not apply in the case

7 of an individual who—

8 ‘‘(i) is under eighteen or over fifty years of age;

9 ‘‘(ii) is certified by a physician as physically or

10 mentally unfit for employment;

11 ‘‘(iii) is a parent or other member of a house12 hold with responsibility for the care of a dependent;

13 ‘‘(iv) is participating a minimum of 20 hours

14 per week and is in compliance with the requirements

15 of—

16 ‘‘(I) a program under the Job Training

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

18 ‘‘(II) a program under section 236 of the

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

20 ‘‘(III) a program of employment or train21 ing operated or supervised by an agency of

22 State or local government which meets stand23 ards deemed appropriate by the Governor; or

24 ‘‘(v) would otherwise be exempt under sub25 section (d)(2).
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1 ‘‘(C) Upon request of the State, the Secretary may

2 waive the requirements of subparagraph (A) in the case

3 of some or all individuals within all or part of the State

4 if the Secretary makes a determination that such area—

5 ‘‘(i) has an unemployment rate of over 10 per6 cent; or

7 ‘‘(ii) does not have a sufficient number of jobs

8 to provide employment for individuals subject to this

9 paragraph. The Secretary shall report to the Com10 mittee on Agriculture of the House of Representa11 tives and the Committee on Agriculture, Nutrition,

12 and Forestry of the Senate on the basis on which

13 the Secretary made such a decision.

14 ‘‘(D) An individual who has been disqualified from

15 the food stamp program under subparagraph (A) may re16 establish eligibility for assistance if such person becomes

17 exempt under subparagraph (B) or by—

18 ‘‘(i) becoming employed for a minimum of 20

19 hours per week during any consecutive thirty-day pe20 riod; or

21 ‘‘(ii) participating in a program established

22 under section 20 or a comparable program estab23 lished by the State or local government.’’.

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

25 U.S.C. 2025) is amended—
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1 (1) by striking subsection (h); and

2 (2) by redesignating subsections (i) and (j) as

3 subsections (h) and (i), respectively.

4 (c) Section 17 of the Food Stamp Act of 1977 (7

5 U.S.C. 2026), as amended by section 543(b), is amend6 ed—

7 (1) by striking subsection (d); and

8 (2) by redesignating subsections (e) through (k)

9 as subsections (d) through (j), respectively.

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

11 U.S.C. 2029) is amended to read as follows:

12 ‘‘SEC. 20. (a)(1) The Secretary shall permit a State

13 that applies and submits a plan in compliance with guide14 lines promulgated by the Secretary to operate a program

15 within the State or any political subdivision within the

16 State, under which persons who are required to work

17 under section 6(d)(4) may accept an offer from the State

18 or political subdivision to perform work on its behalf, or

19 on behalf of a private nonprofit entity designated by the

20 State or political subdivision, in order to continue to qual21 ify for benefits after they have initially been judged eligi22 ble.

23 ‘‘(2) The Secretary shall promulgate guidelines pur24 suant to paragraph (1) which, to the maximum extent

25 practicable, enable a State or political subdivision to de-
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1 sign and operate a program that is compatible and consist2 ent with similar programs operated by the State or politi3 cal subdivision.

4 ‘‘(b) To be approved by the Secretary, a program

5 shall provide that participants work, in return for com6 pensation consisting of the allotment to which the house7 hold is entitled under section 8(a), with each hour of such

8 work entitling that household to a portion of its allotment

9 equal in value to 100 percent of the higher of the applica10 ble State minimum wage or the Federal minimum hourly

11 rate under the Fair Labor Standards Act of 1938.

12 ‘‘(c) No State or political subdivision that receives

13 funds provided under this section shall replace any em14 ployed worker with an individual who is participating in

15 a program under this section for the purposes of comply16 ing with section 6(d)(4). Such an individual may be placed

17 in any position offered by the State or political subdivision

18 that—

19 ‘‘(1) is a new position;

20 ‘‘(2) is a position that became available in the

21 normal course of conducting the business of the

22 State or political subdivision;

23 ‘‘(3) involves performing work that would other24 wise be performed on an overtime basis by a worker
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1 who is not an individual participating in such pro2 gram; or

3 ‘‘(4) that is a position which became available

4 by shifting a current employee to an alternate posi5 tion.

6 ‘‘(d) The Secretary shall allocate among the States

7 or political subdivisions in each fiscal year, from funds ap8 propriated for the fiscal year under section 18(a)(1), the

9 amount of $75,000,000 to assist in carrying out the pro10 gram under this section during the fiscal year.

11 ‘‘(e)(1) In making the allocation required under sub12 section (d), the Secretary shall allocate to each State oper13 ating a program under this section that percentage of the

14 total funds allocated under subsection (d) which equals the

15 estimate of the Secretary of the percentage of participants

16 who are required to work under section 6(d)(4) that reside

17 in such State.

18 ‘‘(2) The State shall promptly notify the Secretary

19 if such State determines that it will not expend the funds

20 allocated it under paragraph (1) and the Secretary shall

21 reallocate such funds as the Secretary deems appropriate

22 and equitable.

23 ‘‘(f) Notwithstanding subsection (d), the Secretary

24 shall ensure that each State operating a program under

25 this section is allocated at least $50,000 by reducing, to
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1 the extent necessary, the funds allocated to those States

2 allocated more than $50,000.

3 ‘‘(g) If, in carrying out such program during such

4 fiscal year, a State or political subdivision incurs costs

5 that exceed the amount allocated to the State agency

6 under subsection (d)—

7 ‘‘(1) the Secretary shall pay such State agency

8 an amount equal to 50 percent of such additional

9 costs, subject to the first limitation in paragraph

10 (2); and

11 ‘‘(2) the Secretary shall also reimburse each

12 State agency in an amount equal to 50 percent of

13 the total amount of payments made or costs in14 curred by the State or political subdivision in con15 nection with transportation costs and other expenses

16 reasonably necessary and directly related to partici17 pation in a program under this section, except that

18 such total amount shall not exceed an amount rep19 resenting $25 per participant per month for costs of

20 transportation and other actual costs and such reim21 bursement shall not be made out of funds allocated

22 under subsection (d).

23 ‘‘(h) The Secretary may suspend or cancel some or

24 all of these payments, or may withdraw approval from a

25 State or political subdivision to operate a program, upon
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1 a finding that the State or political subdivision has failed

2 to comply with the requirements of this section.’’.

3 (e) Section 7(i)(6) of the Food Stamp Act of 1977

4 (7 U.S.C. 2016(i)(6)) is amended by striking ‘‘section

5 17(f)’’ and inserting ‘‘section 17(e)’’.

6 SEC. 555. COMPARABLE TREATMENT OF DISQUALIFIED

7 INDIVIDUALS.

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

9 2015) is amended by adding at the end the following new

10 subsection:

11 ‘‘(i) An individual who is a member of a household

12 who would otherwise be eligible to participate in the food

13 stamp program under this section and who has been dis14 qualified for noncompliance with program requirements

15 from the program established by the State under part A

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

17 seq.) shall not be eligible to participate in the food stamp

18 program during the period such disqualification is in

19 effect.’’.

20 SEC. 556. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

21 SYSTEMS.

22 (a) Section 7(i) of the Food Stamp Act of 1977 (7

23 U.S.C. 2016(i)) is amended—

24 (1) by amending paragraph (1) to read as

25 follows:
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1 ‘‘(1)(A) State agencies are encouraged to implement

2 an on-line electronic benefit transfer system in which

3 household benefits determined under section 8(a) or sec4 tion 24 are issued from and stored in a central data bank

5 and electronically accessed by household members at the

6 point-of-sale.

7 ‘‘(B) Subject to paragraph (2), a State is authorized

8 to procure and implement an on-line electronic benefit

9 transfer system under the terms, conditions, and design

10 that the State deems appropriate, except that each elec11 tronic benefit transfer card shall bear a photograph of the

12 members of the household to which such card is issued.

13 ‘‘(C) Upon request of a State, the Secretary may

14 waive any provision of this Act prohibiting the effective

15 implementation of an electronic benefit transfer system

16 under this subsection.’’;

17 (2) in paragraph (2)—

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

19 April 1, 1992,’’;

20 (B) by striking ‘‘the approval of’’;

21 (C) in subparagraph (A) by striking ‘‘, in

22 any 1 year,’’; and

23 (D) by amending subparagraph (D) to

24 read as follows:
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1 ‘‘(D)(i) measures to maximize the security of

2 such system using the most recent technology avail3 able that the State considers appropriate and cost4 effective and which may include (but is not limited

5 to) personal identification numbers (PIN), photo6 graphic identification on electronic benefit transfer

7 cards, and other measures to protect against fraud

8 and abuse; and

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

10 date of the enactment of the Personal Responsibility

11 Act of 1995, measures that permit such system to

12 differentiate items of food that may be acquired with

13 an allotment from items of food that may not be ac14 quired with an allotment.’’; and

15 (3) in paragraph (3), by striking ‘‘the Secretary

16 shall not approve such a system unless—’’ and in17 serting ‘‘such system shall provide that—’’.

18 (b) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

19 seq.), as amended by section 542(a), is amended by adding

20 at the end the following new section:

21 ‘‘SEC. 25. ENCOURAGEMENT OF ELECTRONIC BENEFIT

22 TRANSFER SYSTEMS.

23 ‘‘(a) Upon fully implementing an electronic benefit

24 transfer system which operates in the entire State, a State

25 may, subject to the provisions of this section, elect to re-
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1 ceive a grant for any fiscal year to operate a low-income

2 nutrition assistance program in such fiscal year in lieu of

3 the food stamp program.

4 ‘‘(b)(1) A State that meets the requirements of this

5 section and elects to operate such program, shall receive

6 each fiscal year under this section the sum of—

7 ‘‘(A)(i) the total dollar value of all benefits is8 sued under the food stamp program by the State

9 during fiscal year 1994; or

10 ‘‘(ii) the average per fiscal year of the total dol11 lar value of all benefits issued under the food stamp

12 program by the State during fiscal years 1992

13 through 1994; and

14 ‘‘(B)(i) the total amount received by the State

15 for administrative costs under section 16(a) for fis16 cal year 1994; or

17 ‘‘(ii) the average per fiscal year of the total

18 amount received by the State for administrative

19 costs under section 16(a) for fiscal years 1992

20 through 1994.

21 ‘‘(2) Upon approval by the Secretary of the plan sub22 mitted by a State under subsection (c), the Secretary shall

23 pay to the State at such times and in such manner as

24 the Secretary may determine, the amount to which the

25 State is eligible under subsection (b)(1).
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1 ‘‘(c) To be eligible to operate a low-income nutrition

2 assistance program under this section, a State shall sub3 mit for approval each fiscal year a plan of operation speci4 fying the manner in which such a program will be con5 ducted by the State. Such plan shall—

6 ‘‘(1) certify that the State has implemented a

7 state-wide electronic benefit transfer system in ac8 cordance with section 7(i);

9 ‘‘(2) designate a single State agency responsible

10 for the administration of the low-income nutrition

11 assistance program under this section;

12 ‘‘(3) assess the food and nutrition needs of

13 needy persons residing in the State;

14 ‘‘(4) limit the assistance to be provided under

15 this section to the purchase of food;

16 ‘‘(5) describe the persons to whom such assist17 ance will be provided;

18 ‘‘(6) assure the Secretary that assistance will be

19 provided to the most needy persons in the State and

20 that applicants for assistance shall have adequate

21 notice and fair hearings comparable to those re22 quired under section 11;

23 ‘‘(7) provide that, in the operation of the low24 income nutrition assistance program, there shall be
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1 no discrimination on the basis of race, sex, religion,

2 national origin, or political beliefs; and

3 ‘‘(8) include other information as may be re4 quired by the Secretary.

5 ‘‘(d) Payments made under this section to the State

6 may be expended only in the fiscal year for which such

7 payments are distributed, except that the State may re8 serve up to 5 percent of the grant received for a fiscal

9 year to provide assistance under this section in subsequent

10 fiscal years: Provided, That such reserved funds may not

11 total more than 20 percent of the total grant received

12 under this section for a fiscal year.

13 ‘‘(e) The State agency shall keep records concerning

14 the operation of the program carried out under this sec15 tion and shall make such records available to the Secretary

16 and the Comptroller General of the United States.

17 ‘‘(f) If the Secretary finds that there is substantial

18 failure by a State to comply with the requirements of this

19 section, regulations issued pursuant to this section, or the

20 plan approved under subsection (c), then the Secretary

21 shall take one or more of the following actions:

22 ‘‘(1) Suspend all or part of such payment au23 thorized by subsection (b)(2) to be made available to

24 such State, until the Secretary determines the State
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1 to be in substantial compliance with such require2 ments.

3 ‘‘(2) Withhold all or part of such payments

4 until the Secretary determines that there is no

5 longer failure to comply with such requirements, at

6 which time the withheld payment may be paid.

7 ‘‘(3) Terminate the authority of the State to

8 operate the low-income nutrition assistance program.

9 ‘‘(g)(1) States which receive grants under this section

10 shall provide for—

11 ‘‘(A) a biennial audit, conducted in accordance

12 with the standards of the Comptroller General, of

13 expenditures for the provision of nutrition assistance

14 under this section; and

15 ‘‘(B) not later than 120 days after the end of

16 each fiscal year in which an audit is conducted, pro17 vide the Secretary with such audit.

18 States shall make the report of such audit available for

19 public inspection.

20 ‘‘(2) Not later than 120 days after the end of the

21 fiscal year for which a State receives a grant under this

22 section, such State shall prepare an activities report com23 paring actual expenditures for such fiscal year for nutri24 tion assistance under this section with the expenditures

25 for such fiscal year predicted in the plan submitted in ac-
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1 cordance with subsection (c). Such State shall make the

2 activities report available for public inspection.

3 ‘‘(h) Whoever knowingly and willfully embezzles,

4 misapplies, steals, or obtains by fraud, false statement, or

5 forgery, any funds, assets, or property provided or fi6 nanced under this section shall be fined not more than

7 $10,000 or imprisoned for not more than 5 years, or

8 both.’’.

9 SEC. 557. VALUE OF MINIMUM ALLOTMENT.

10 Section 8(a) of the Food Stamp Act of 1977 (7

11 U.S.C. 2017(a)) is amended by striking ‘‘, and shall be

12 adjusted on each October 1’’ and all that follows through

13 the end of such subsection, and inserting a period.

14 SEC. 558. INITIAL MONTH BENEFIT DETERMINATION.

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

16 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

17 than one month’’ after ‘‘following any period’’.

18 SEC. 559. IMPROVING FOOD STAMP PROGRAM MANAGE19 MENT.

20 (a) Section 13(a)(1) of the Food Stamp Act of 1977

21 (7 U.S.C. 2022(a)(1)) is amended—

22 (1) in the fifth sentence, by inserting ‘‘(after a

23 determination on any request for a waiver for good

24 cause related to the claim has been made by the Sec25 retary)’’ after ‘‘bill for collection’’; and
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1 (2) in the sixth sentence, by striking ‘‘1 year’’

2 and inserting ‘‘2 years’’.

3 (b) Section 16(c) of the Food Stamp Act of 1977 (7

4 U.S.C. 2025(c)) is amended—

5 (1) in paragraph (1)(C)—

6 (A) by striking ‘‘national performance

7 measure’’ and inserting ‘‘payment error toler8 ance level’’; and

9 (B) by striking ‘‘equal to—’’ and all that

10 follows through the period at the end and in11 serting the following:

12 ‘‘equal to its payment error rate less such tolerance

13 level times the total value of allotments issued in

14 such a fiscal year by such State agency. The amount

15 of liability shall not be affected by corrective action

16 under subparagraph (B).’’;

17 (2) in paragraph (3)(A), by striking ‘‘120 days’’

18 and inserting ‘‘60 days (or 90 days at the discretion

19 of the Secretary)’’;

20 (3) in the last sentence of paragraph (6), by in21 serting ‘‘shall be used to establish a payment-error

22 tolerance level. Such tolerance level for any fiscal

23 year will be one percentage point added to the lowest

24 national performance measure ever announced up to

25 and including such fiscal year under this section.
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1 The payment-error tolerance level’’ after ‘‘The an2 nounced national performance measure’’; and

3 (4) by striking paragraphs (8) and (9).

4 SEC. 560. WORK SUPPLEMENTATION OR SUPPORT PRO5 GRAM.

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

7 U.S.C. 2020(e)), as amended by section 542(b), is amend8 ed—

9 (1) in paragraph (25), by striking ‘‘and’’;

10 (2) in paragraph (26), by striking the period

11 and inserting ‘‘; and’’ at the end; and

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

13 paragraph:

14 ‘‘(27) the plans of the State agency for includ15 ing eligible food stamp recipients in a work

16 supplementation or support program under section

17 16(j).’’.

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

19 U.S.C. 2025), as amended by section 554(b), is amended

20 by adding at the end the following new subsection:

21 ‘‘(j) WORK SUPPLEMENTATION OR SUPPORT PRO22 GRAM.—

23 ‘‘(1) A State may elect to use the sums equal

24 to the food stamp benefits that would otherwise be

25 allotted to participants under the food stamp pro-
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1 gram but for the operation of this subsection for the

2 purposes of providing and subsidizing or supporting

3 jobs under a work supplementation or support pro4 gram established by the State.

5 ‘‘(2) If a State that makes the election de6 scribed in paragraph (1) identifies each household

7 that participates in the food stamp program which

8 contains an individual who is participating in such

9 work supplementation or support program—

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

11 an amount equal to the value of the allotment

12 that the household would be eligible to receive

13 but for the operation of this subsection;

14 ‘‘(B) the State shall expend such amount

15 in accordance with its work supplementation or

16 support program in lieu of the allotment that

17 the household would receive but for the oper18 ation of this subsection;

19 ‘‘(C) for purposes of—

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

21 received under this subsection shall be ex22 cluded from household income and re23 sources; and

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

25 under this subsection shall be considered
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1 as the value of an allotment provided to

2 the household; and

3 ‘‘(D) the household shall not receive an al4 lotment from the State agency for the period

5 during which the member continues to partici6 pate in the work supplementation program.

7 ‘‘(3) No person shall be excused by reason of

8 the fact that such State has a work supplementation

9 or support program from any work requirement

10 under section 6(d), except during the periods in

11 which such individual is employed under such work

12 supplementation or support program.

13 ‘‘(4) For purposes of this subsection, the term

14 ‘‘work supplementation or support program’’ shall

15 mean a program in which, as determined by the Sec16 retary, public assistance, including any benefits pro17 vided under a program established by the State and

18 the food stamp program, is provided to an employer

19 to be used for hiring a public assistance recipient.’’.

20 SEC. 561. OBLIGATIONS AND ALLOTMENTS.

21 Section 18 of the Food Stamp Act of 1977 (7 U.S.C.

22 2027) is amended—

23 (1) in subsection (a)—

24 (A) in paragraph (1)—
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1 (i) by striking ‘‘are authorized to be

2 appropriated such sums as are necessary

3 for each of the fiscal years 1991 through

4 1995’’ and inserting the following:

5 ‘‘is provided to be obligated, not in excess of the cost esti6 mate made by the Congressional Budget Office for this

7 Act, as amended by the Personal Responsibility Act of

8 1995, for the fiscal year ending September 30, 1996, with

9 adjustments for any estimates of total obligations for addi10 tional fiscal years made by the Congressional Budget Of11 fice to reflect the provisions contained in the Personal Re12 sponsibility Act of 1995’’;

13 (ii) by striking ‘‘In each monthly re14 port, the Secretary shall also state’’ and

15 inserting ‘‘Also, the Secretary shall file a

16 report every February 15, April 15, and

17 July 15, stating’’; and

18 (iii) by striking ‘‘supplemental appro19 priations’’ and inserting ‘‘additional

20 obligational authority’’; and

21 (B) in paragraph (2), by striking ‘‘author22 ized to be appropriated’’ and inserting ‘‘obli23 gated’’;

24 (2) in subsection (b)—
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1 (A) in the first sentence, by striking ‘‘ap2 propriation’’ and inserting ‘‘total obligations

3 limitation provided’’; and

4 (B) in the second sentence, by striking

5 ‘‘appropriation’’ and inserting ‘‘obligational

6 amount provided in subsection (a)(1)’’;

7 (3) in subsection (c)—

8 (A) by inserting ‘‘or under section 24’’

9 after ‘‘under sections 5(d) and 5(e)’’;

10 (B) by inserting ‘‘or under section 24’’

11 after ‘‘under section 5(c)’’;

12 (C) by striking ‘‘and’’ after ‘‘or otherwise

13 disabled’’; and

14 (D) by inserting before the period at the

15 end ‘‘, and (3) adequate and appropriate rec16 ommendations on how to equitably achieve such

17 reductions’’; and

18 (4) in subsection (f), by striking ‘‘No funds ap19 propriated’’ and inserting ‘‘None of the funds obli20 gated’’.
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1 CHAPTER 3—PROGRAM INTEGRITY

2 SEC. 571. AUTHORITY TO ESTABLISH AUTHORIZATION

3 PERIODS.

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 new sentence:

7 ‘‘The Secretary shall establish specific time periods during

8 which authorization to accept and redeem coupons, or to

9 redeem benefits through an electronic benefit transfer sys10 tem, under the food stamp program shall be valid.’’.

11 SEC. 572. CONDITION PRECEDENT FOR APPROVAL OF RE12 TAIL FOOD STORES AND WHOLESALE FOOD

13 CONCERNS.

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

15 U.S.C. 2018(a)(1)), as previously amended by this title,

16 is amended by adding at the end the following new sen17 tence:

18 ‘‘No retail food store or wholesale food concern shall be

19 approved for participation in the food stamp program un20 less an authorized employee of the Department of Agri21 culture, wherever possible, or an official of the State or

22 local government designated by the Department of Agri23 culture, has visited such retail food store or wholesale food

24 concern for the purpose of determining whether such retail
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1 food store or wholesale food concern should be so ap2 proved.’’.

3 SEC. 573. WAITING PERIOD FOR RETAIL FOOD STORES AND

4 WHOLESALE FOOD CONCERNS THAT ARE DE5 NIED APPROVAL TO ACCEPT COUPONS.

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

7 U.S.C. 2018(d)) is amended by adding at the end the fol8 lowing new sentence:

9 ‘‘Such retail food store or wholesale food concern shall not

10 submit an application under subsection (a)(1) for six

11 months from the date of receipt of the notice of denial.’’.

12 SEC. 574. DISQUALIFICATION OF RETAIL FOOD STORES

13 AND WHOLESALE FOOD CONCERNS.

14 Section 12(a) of the Food Stamp Act of 1977 (7

15 U.S.C. 2021(a)) is amended—

16 (1) by inserting ‘‘(1)’’ after ‘‘(a); and

17 (2) by inserting the following new paragraph:

18 ‘‘(2) A retail food store or wholesale food concern

19 that is disqualified from participating in the program

20 under section 17 of the Child Nutrition Act of 1966 shall

21 for such period of disqualification also be disqualified from

22 participating in the food stamp program.’’.
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1 SEC. 575. AUTHORITY TO SUSPEND STORES VIOLATING

2 PROGRAM REQUIREMENTS PENDING ADMIN3 ISTRATIVE AND JUDICIAL REVIEW.

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

5 U.S.C. 2023(a)) is amended by adding at the end the fol6 lowing new sentence:

7 ‘‘Notwithstanding any other provision of law, the perma8 nent disqualification of a retail food store or wholesale

9 food concern under section 12(b)(3) shall be effective from

10 the date of receipt of the notice of disqualification.’’.

11 SEC. 576. CRIMINAL FORFEITURE.

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

13 2024) is amended by adding at the end the following new

14 subsection:

15 ‘‘(h)(1) The court, in imposing sentence on a person

16 convicted of an offense in violation of subsection (b) or

17 (c), shall order, in addition to any other sentence imposed

18 pursuant to this subsection, that the person forfeit to the

19 United States all property described in paragraph (2).

20 ‘‘(2) All property, real and personal, used in a trans21 action or attempted transaction, to commit, or to facilitate

22 the commission of, a violation (other than a misdemeanor)

23 of subsection (b) or (c), or proceeds traceable to a violation

24 of subsection (b) or (c), is subject to forfeiture to the Unit25 ed States.
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1 ‘‘(3) No property shall be forfeited under this sub2 section to the extent of an interest of an owner, by reason

3 of any act or omission established by that owner to have

4 been committed or omitted without the knowledge or con5 sent of that owner.

6 ‘‘(4) The proceeds from any sale of forfeited property

7 and any monies forfeited under this subsection shall be

8 used—

9 ‘‘(A) to reimburse the Department of Justice

10 for the costs incurred by the Department to initiate

11 and complete the forfeiture proceeding that caused

12 the sale that produced such proceeds;

13 ‘‘(B) to reimburse the Department of Agri14 culture Office of Inspector General for any costs it

15 incurred in the law enforcement effort resulting in

16 the forfeiture;

17 ‘‘(C) to reimburse any Federal or State law en18 forcement agencies for any costs incurred in the law

19 enforcement effort resulting in the forfeiture; and

20 ‘‘(D) by the Secretary to carry out the ap21 proval, reauthorization, and compliance investiga22 tions of retail stores under section 9.’’.

23 SEC. 577. EXPANDED DEFINITION OF ‘‘COUPON’’.

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

25 U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi-
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1 cate’’ and inserting ‘‘type of certificate, authorization

2 cards, cash or checks issued in lieu of coupons, or access

3 devices, including, but not limited to, electronic benefit

4 transfer cards or personal identification numbers’’.

5 SEC. 578. DOUBLED PENALTIES FOR VIOLATING FOOD

6 STAMP PROGRAM REQUIREMENTS.

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

8 U.S.C. 2015(b)(1)) is amended—

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

10 inserting ‘‘1 year’’; and

11 (2) in clause (ii), by striking ‘‘1 year’’ and in12 serting ‘‘2 years’’.

13 SEC. 579. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

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

15 (7 U.S.C. 2015(b)(1)(iii)) is amended—

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

17 end;

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

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

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

21 subclause:

22 ‘‘(IV) a conviction of an offense under sub23 section (a) or (b) of section 15 involving items

24 referred to in such subsection having a value of

25 $500 or more.’’.
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1 SEC. 580. CLAIMS COLLECTION.

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

3 (7 U.S.C. 2020(e)(8)) is amended by inserting before the

4 semicolon at the end ‘‘or refunds of Federal taxes as au5 thorized pursuant to section 3720A of title 31 of the Unit6 ed States Code’’.

7 (b) Section 13(d) of the Act (7 U.S.C. 2022(d)) is

8 amended—

9 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

10 and

11 (2) by inserting before the period at the end

12 ‘‘or refunds of Federal taxes as authorized pursuant

13 to section 3720A of title 31 of the United States

14 Code’’.

15 SEC. 581. DENIAL OF FOOD STAMP BENEFITS FOR 10 YEARS

16 TO INDIVIDUALS FOUND TO HAVE FRAUDU17 LENTLY MISREPRESENTED RESIDENCE IN

18 ORDER TO OBTAIN BENEFITS SIMULTA19 NEOUSLY IN 2 OR MORE STATES.

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

21 2015) is amended by adding at the end the following:

22 ‘‘(I) An individual shall be ineligible to participate in

23 the food stamp program as a member of any household

24 during the 10-year period beginning on the date the indi25 vidual is found by a State to have made, or is convicted

26 in Federal or State court of having made, a fraudulent
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1 statement or representation with respect to the place of

2 residence of the individual in order to receive benefits si3 multaneously from 2 or more States under the food stamp

4 program or under programs that are funded under part

5 A of title IV, title XIX, or benefits in 2 or more States

6 under the supplemental security income program under

7 title XVI.’’.

8 SEC. 582. DISQUALIFICATION RELATING TO CHILD SUP9 PORT ARREARS.

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

11 2015) is amended by adding at the end the following:

12 ‘‘(i) No individual is eligible to participate in the food

13 stamp program as a member of any household during any

14 period such individual has any unpaid liability that is

15 both—

16 ‘‘(1) under a court order for the support of a

17 child of such individual; and

18 ‘‘(2) for which the court is not allowing such in19 dividual to delay payment.’’.

20 SEC. 583. ELIMINATION OF FOOD STAMP BENEFITS WITH

21 RESPECT TO FUGITIVE FELONS AND PROBA22 TION AND PAROLE VIOLATORS.

23 (a) INELIGIBILITY FOR FOOD STAMPS.—Section 6 of

24 the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended
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1 by section 555, is amended by adding at the end the fol2 lowing:

3 ‘‘(j) No member of a household who is otherwise eligi4 ble to participate in the food stamp program shall be eligi5 ble to participate in the program as a member of that or

6 any other household while the individual is—

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

8 confinement after conviction, under the laws of the

9 place from which he flees, for a crime, or an attempt

10 to commit a crime, which is a felony under the laws

11 of the place from which he flees, or which, in the

12 case of the State of New Jersey, is a high mis13 demeanor under the laws of such State; or

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

15 imposed under Federal or State law.’’.

16 (2) EXCHANGE OF INFORMATION WITH LAW EN17 FORCEMENT OFFICERS.—Section 11(e)(8) of such Act (7

18 U.S.C. 2020(e)(8)) is amended—

19 (1) by striking ‘‘and (C)’’ and inserting ‘‘(C)’’;

20 and

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

22 the following: ‘‘, (D) notwithstanding any other pro23 vision of law, the address of a member of a house24 hold shall be made available, on request, to a Fed25 eral, State, or local law enforcement officer if the of-
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1 ficer furnishes the State agency with the name of

2 the member and notifies the agency that (i) the

3 member (I) is fleeing to avoid prosecution, or cus4 tody or confinement after conviction, under the laws

5 of the place from which he flees, for a crime, or an

6 attempt to commit a crime, which is a felony under

7 the laws of the place from which he flees, or which,

8 in the case of the State of New Jersey, is a high

9 misdemeanor under the laws of such State, or is vio10 lating a condition of probation or parole imposed

11 under Federal or State law, or (II) has information

12 that is necessary for the officer to conduct the offi13 cer’s official duties, (ii) the location or apprehension

14 of the member is within the official duties of the of15 ficer, and (iii) the request is made in the proper ex16 ercise of the duties, and’’.

17 Subtitle C—Effective Dates and

18 Miscellaneous Provisions

19 SEC. 591. EFFECTIVE DATES.

20 (a) Except as provided in subsection (b), this title and

21 amendments made by this title shall take effect on October

22 1, 1995.

23 (b) The amendments made by section 559 shall take

24 effect on October 1, 1994.
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1 SEC. 592. SENSE OF THE CONGRESS.

2 It is the sense of the Congress that States that oper3 ate electronic benefit systems to transfer benefits provided

4 under the Food Stamp Act of 1977 should operate elec5 tronic benefit systems that are compatible with each other.

6 SEC. 593. DEFICIT REDUCTION.

7 It is the sense of the Committee on Agriculture of

8 the House of Representatives that reductions in outlays

9 resulting from subtitle B shall not be taken into account

10 for purposes of section 252 of the Balanced Budget and

11 Emergency Deficit Control Act of 1985.

12 TITLE VI—SUPPLEMENTAL

13 SECURITY INCOME

14 SEC. 601. DENIAL OF SUPPLEMENTAL SECURITY INCOME

15 BENEFITS BY REASON OF DISABILITY TO

16 DRUG ADDICTS AND ALCOHOLICS.

17 (a) IN GENERAL.—Section 1614(a)(3) of the Social

18 Security Act (42 U.S.C. 1382c(a)(3)) is amended by add19 ing at the end the following:

20 ‘‘(I) Notwithstanding subparagraph (A), an individ21 ual shall not be considered to be disabled for purposes of

22 this title if alcoholism or drug addiction would (but for

23 this subparagraph) be a contributing factor material to

24 the Commissioner’s determination that the individual is

25 disabled.’’.

26 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 1611(e) of such Act (42 U.S.C.

2 1382(e)) is amended by striking paragraph (3).

3 (2) Section 1631(a)(2)(A)(ii) of such Act (42

4 U.S.C. 1383(a)(2)(A)(ii)) is amended—

5 (A) by striking ‘‘(I)’’; and

6 (B) by striking subclause (II).

7 (3) Section 1631(a)(2)(B) of such Act (42

8 U.S.C. 1383(a)(2)(B)) is amended—

9 (A) by striking clause (vii);

10 (B) in clause (viii), by striking ‘‘(ix)’’ and

11 inserting ‘‘(viii)’’;

12 (C) in clause (ix)—

13 (i) by striking ‘‘(viii)’’ and inserting

14 ‘‘(vii)’’; and

15 (ii) in subclause (II), by striking all

16 that follows ‘‘15 years’’ and inserting a pe17 riod;

18 (D) in clause (xiii)—

19 (i) by striking ‘‘(xii)’’ and inserting

20 ‘‘(xi)’’; and

21 (ii) by striking ‘‘(xi)’’ and inserting

22 ‘‘(x)’’; and

23 (E) by redesignating clauses (viii) through

24 (xiii) as clauses (vii) through (xii), respectively.
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1 (4) Section 1631(a)(2)(D)(i)(II) of such Act

2 (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amended by

3 striking all that follows ‘‘$25.00 per month’’ and in4 serting a period.

5 (5) Section 1634 of such Act (42 U.S.C. 1383c)

6 is amended by striking subsection (e).

7 (6) Section 201(c)(1) of the Social Security

8 Independence and Program Improvements Act of

9 1994 (42 U.S.C. 425 note) is amended—

10 (A) by striking ‘‘—’’ and all that follows

11 through ‘‘(A)’’ the 1st place such term appears;

12 (B) by striking ‘‘and’’ the 3rd place such

13 term appears;

14 (C) by striking subparagraph (B);

15 (D) by striking ‘‘either subparagraph (A)

16 or subparagraph (B)’’ and inserting ‘‘the pre17 ceding sentence’’; and

18 (E) by striking ‘‘subparagraph (A) or (B)’’

19 and inserting ‘‘the preceding sentence’’.

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

21 this section shall take effect on October 1, 1995, and shall

22 apply with respect to months beginning on or after such

23 date.

24 (d) FUNDING OF CERTAIN PROGRAMS FOR DRUG

25 ADDICTS AND ALCOHOLICS.—
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1 (1) IN GENERAL.—Out of any money in the

2 Treasury not otherwise appropriated, there are here3 by appropriated—

4 (A) for carrying out section 1971 of the

5 Public Health Service Act (as amended by

6 paragraph (2) of this subsection), $95,000,000

7 for each of the fiscal years 1997 through 2000;

8 and

9 (B) for carrying out the medication devel10 opment project to improve drug abuse and drug

11 treatment research (administered through the

12 National Institute on Drug Abuse), $5,000,000

13 for each of the fiscal years 1997 through 2000.

14 (2) CAPACITY EXPANSION PROGRAM REGARD15 ING DRUG ABUSE TREATMENT.—Section 1971 of the

16 Public Health Service Act (42 U.S.C. 300y) is

17 amended—

18 (A) in subsection (a)(1), by adding at the

19 end the following sentence: ‘‘This paragraph is

20 subject to subsection (j).’’;

21 (B) by redesignating subsection (j) as sub22 section (k);

23 (C) in subsection (j) (as so redesignated),

24 by inserting before the period the following:
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1 ‘‘and for each of the fiscal years 1995 through

2 2000’’; and

3 (D) by inserting after subsection (i) the

4 following subsection:

5 ‘‘(j) FORMULA GRANTS FOR CERTAIN FISCAL

6 YEARS.—

7 ‘‘(1) IN GENERAL.—For each of the fiscal years

8 1997 through 2000, the Director shall, for the pur9 pose described in subsection (a)(1), make a grant to

10 each State that submits to the Director an applica11 tion in accordance with paragraph (2). Such a grant

12 for a State shall consist of the allotment determined

13 for the State under paragraph (3). For each of the

14 fiscal years 1997 through 2000, grants under this

15 paragraph shall be the exclusive grants under this

16 section.

17 ‘‘(2) REQUIREMENTS.—The Director may make

18 a grant under paragraph (1) only if, by the date

19 specified by the Director, the State submits to the

20 Director an application for the grant that is in such

21 form, is made in such manner, and contain such

22 agreements, assurances, and information as the Di23 rector determines to be necessary to carry out this

24 subsection, and if the application contains an agree25 ment by the State in accordance with the following:
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1 ‘‘(A) The State will expend the grant in

2 accordance with the priority described in sub3 section (b)(1).

4 ‘‘(B) The State will comply with the condi5 tions described in each of subsections (c), (d),

6 (g), and (h).

7 ‘‘(3) ALLOTMENT.—

8 ‘‘(A) For purposes of paragraph (1), the

9 allotment under this paragraph for a State for

10 a fiscal year shall, except as provided in sub11 paragraph (B), be the product of—

12 ‘‘(i) the amount appropriated in sec13 tion 601(d)(1)(A) of the Personal Respon14 sibility Act of 1995 for the fiscal year, to15 gether with any additional amounts appro16 priated to carry out this section for the fis17 cal year; and

18 ‘‘(ii) the percentage determined for

19 the State under the formula established in

20 section 1933(a).

21 ‘‘(B) Subsections (b) through (d) of section

22 1933 apply to an allotment under subparagraph

23 (A) to the same extent and in the same manner

24 as such subsections apply to an allotment under

25 subsection (a) of section 1933.’’.
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1 SEC. 602. SUPPLEMENTAL SECURITY INCOME BENEFITS

2 FOR DISABLED CHILDREN.

3 (a) RESTRICTIONS ON ELIGIBILITY FOR CASH BENE4 FITS.—

5 (1) IN GENERAL.—Section 1614(a)(3)(A) of the

6 Social Security Act (42 U.S.C. 1382c(a)(3)(A)) is

7 amended—

8 (A) by inserting ‘‘(i)’’ after ‘‘(3)(A)’’;

9 (B) by inserting ‘‘who has attained 18

10 years of age’’ before ‘‘shall be considered’’;

11 (C) by striking ‘‘he’’ and inserting ‘‘the in12 dividual’’;

13 (D) by striking ‘‘(or, in the case of an indi14 vidual under the age of 18, if he suffers from

15 any medically determinable physical or mental

16 impairment impairment of comparable sever17 ity)’’; and

18 (E) by adding after and below the end the

19 following:

20 ‘‘(ii) An individual who has not attained 18 years of

21 age shall be considered to be disabled for purposes of this

22 title for a month if the individual—

23 ‘‘(I) meets all non-disability-related require24 ments for eligibility for cash benefits under this title;

25 ‘‘(II) has any medically determinable physical

26 or mental impairment (or combination of impair-
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1 ments) that meets the requirements, applicable to

2 individuals who have not attained 18 years of age,

3 of the Listings of Impairments set forth in appendix

4 1 of subpart P of part 404 of title 20, Code of Fed5 eral Regulations (revised as of April 1, 1994), or

6 that is equivalent in severity to such an impairment

7 (or such a combination of impairments); and

8 ‘‘(III)(aa) for the month preceding the first

9 month for which this clause takes effect, was eligible

10 for cash benefits under this title by reason of disabil11 ity; or

12 ‘‘(bb) as a result of the impairment (or com13 bination of impairments) involved—

14 ‘‘(1) is in a hospital, skilled nursing facil15 ity, nursing facility, residential treatment facil16 ity, intermediate care facility for the mentally

17 retarded, or other medical institution; or

18 ‘‘(2) would be required to be placed in

19 such an institution if the individual were not re20 ceiving personal assistance necessitated by the

21 impairment (or impairments).

22 ‘‘(iii) As used in clause (ii)(III)(bb)(2), the term ‘per23 sonal assistance’ includes at least hands-on or stand-by

24 assistance, supervision, or cueing, with activities of daily

25 living and the administration of medical treatment (where
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1 applicable). For purposes of the preceding sentence, the

2 term ‘acitivities of daily living’ means eating, toileting,

3 dressing, bathing, and transferring.’’.

4 (2) NOTICE.—Within 1 month after the date of

5 the enactment of this Act, the Commissioner of So6 cial Security shall notify each individual whose eligi7 bility for cash supplemental security income benefits

8 under title XVI of the Social Security Act will termi9 nate by reason of the amendments made by para10 graph (1) of such termination.

11 (3) ANNUAL REPORTS ON LISTINGS OF IMPAIR12 MENTS.—The Commissioner of Social Security shall

13 annually submit to the Congress a report on the

14 Listings of Impairments set forth in appendix 1 of

15 subpart P of part 404 of title 20, Code of Federal

16 Regulations (revised as of April 1, 1994), that are

17 applicable to individuals who have not attained 18

18 years of age, and recommend any necessary revisions

19 to the listings.

20 (b) ESTABLISHMENT OF PROGRAM OF BLOCK

21 GRANTS REGARDING CHILDREN WITH DISABILITIES.—

22 (1) IN GENERAL.—Title XVI of the Social Se23 curity Act (42 U.S.C. 1381 et seq.) is amended by

24 adding at the end the following:
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1 ‘‘PART C—BLOCK GRANTS TO STATES FOR

2 CHILDREN WITH DISABILITIES

3 ‘‘SEC. 1641. ENTITLEMENT TO GRANTS.

4 ‘‘Each State that meets the requirements of section

5 1642 for fiscal year 1997 or any subsequent fiscal year

6 shall be entitled to receive from the Commissioner for the

7 fiscal year a grant in an amount equal to the allotment

8 (as defined in section 1646(1)) of the State for the fiscal

9 year.

10 ‘‘SEC. 1642. REQUIREMENTS.

11 ‘‘(a) IN GENERAL.—A State meets the requirements

12 of this section for a grant under section 1641 for a fiscal

13 year if by the date specified by the Commissioner, the

14 State submits to the Commissioner an application for the

15 grant that is in such form, is made in such manner, and

16 contain such agreements, assurances, and information as

17 the Commissioner determines to be necessary to carry out

18 this part, and if the application contains an agreement by

19 the State in accordance with the following:

20 ‘‘(1) The grant will not be expended for any

21 purpose other than providing authorized services (as

22 defined in section 1646(2)) to qualifying children (as

23 defined in section 1646(3)).

24 ‘‘(2)(A) In providing authorized services, the

25 State will make every reasonable effort to obtain

26 payment for the services from other Federal or State
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1 programs that provide payment for such services

2 and from private entities that are legally liable to

3 make the payments pursuant to insurance policies,

4 prepaid plans, or other arrangements.

5 ‘‘(B) The State will expend the grant only to

6 the extent that payments from the programs and en7 tities described in subparagraph (A) are not avail8 able for authorized services provided by the State.

9 ‘‘(3) The State will comply with the condition

10 described in subsection (b).

11 ‘‘(4) The State will comply with the condition

12 described in subsection (c).

13 ‘‘(b) MAINTENANCE OF EFFORT.—

14 ‘‘(1) IN GENERAL.—The condition referred to

15 in subsection (a)(3) for a State for a fiscal year is

16 that, with respect to the purposes described in para17 graph (2), the State will maintain expenditures of

18 non-Federal amounts for such purposes at a level

19 that is not less than the following, as applicable:

20 ‘‘(A) For the first fiscal year for which the

21 State receives a grant under section 1641, an

22 amount equal to the difference between—

23 ‘‘(i) the average level of such expendi24 tures maintained by the State for the 2-

25 year period preceding October 1, 1995 (ex-
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1 cept that, if such first fiscal year is other

2 than fiscal year 1997, the amount of such

3 average level shall be increased to the ex4 tent necessary to offset the effect of infla5 tion occurring after October 1, 1995); and

6 ‘‘(ii) the aggregate of non-Federal ex7 penditures made by the State for such 2-

8 year period pursuant to section 1618 (as

9 such section was in effect for such period).

10 ‘‘(B) For each subsequent fiscal year, the

11 amount applicable under subparagraph (A) in12 creased to the extent necessary to offset the ef13 fect of inflation occurring after the beginning of

14 the fiscal year to which such subparagraph ap15 plies.

16 ‘‘(2) RELEVANT PURPOSES.—The purposes de17 scribed in this paragraph are any purposes designed

18 to meet (or assist in meeting) the unique needs of

19 qualifying children that arise from physical and

20 mental impairments, including such purposes that

21 are authorized to be carried out under title XIX.

22 ‘‘(3) RULE OF CONSTRUCTION.—With respect

23 to compliance with the agreement made by a State

24 pursuant to paragraph (1), the State has discretion

25 to select, from among the purposes described in
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1 paragraph (2), the purposes for which the State ex2 pends the non-Federal amounts reserved by the

3 State for such compliance.

4 ‘‘(4) USE OF CONSUMER PRICE INDEX.—Deter5 minations under paragraph (1) of the extent of in6 flation shall be made through use of the consumer

7 price index for all urban consumers, U.S. city aver8 age, published by the Bureau of Labor Statistics.

9 ‘‘(c) ASSESSMENT OF NEED FOR SERVICES.—The

10 condition referred to in subsection (a)(4) for a State for

11 a fiscal year is that each qualifying child will be permitted

12 to apply for authorized services, and will be provided with

13 an opportunity to have an assessment conducted to deter14 mine the need of such child for authorized services.

15 ‘‘SEC. 1643. AUTHORITY OF STATE.

16 ‘‘The following decisions are in the discretion of a

17 State with respect to compliance with an agreement made

18 by the State under section 1642(a)(1):

19 ‘‘(1) Decisions regarding which of the author20 ized services are provided.

21 ‘‘(2) Decisions regarding who among qualifying

22 children in the State receives the services.

23 ‘‘(3) Decisions regarding the number of services

24 provided for the qualifying child involved and the

25 duration of the services.
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1 ‘‘SEC. 1644. AUTHORIZED SERVICES.

2 ‘‘(a) AUTHORITY OF COMMISSIONER.—The Commis3 sioner, subject to subsection (b), shall issue regulations

4 designating the purposes for which grants under section

5 1641 are authorized to be expended by the States.

6 ‘‘(b) REQUIREMENTS REGARDING SERVICES.—The

7 Commissioner shall ensure that the purposes authorized

8 under subsection (a)—

9 ‘‘(1) are designed to meet (or assist in meeting)

10 the unique needs of qualifying children that arise

11 from physical and mental impairments;

12 ‘‘(2) include medical and nonmedical services;

13 and

14 ‘‘(3) do not include the provision of cash bene15 fits.

16 ‘‘SEC. 1645. GENERAL PROVISIONS.

17 ‘‘(a) ISSUANCE OF REGULATIONS.—Regulations

18 under this part shall be issued in accordance with proce19 dures established for the issuance of substantive rules

20 under section 553 of title 5, United States Code. Pay21 ments under grants under section 1641 for fiscal year

22 1997 shall begin not later than January 1, 1997, without

23 regard to whether final rules under this part have been

24 issued and without regard to whether such rules have

25 taken effect.

26 ‘‘(b) PROVISIONS REGARDING OTHER PROGRAMS.—
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1 ‘‘(1) INAPPLICABILITY OF VALUE OF SERV2 ICES.—The value of authorized services provided

3 under this part shall not be taken into account in

4 determining eligibility for, or the amount of, benefits

5 or services under any Federal or federally-assisted

6 program.

7 ‘‘(2) MEDICAID PROGRAM.—For purposes of

8 title XIX, each qualifying child shall be considered

9 to be a recipient of supplemental security income

10 benefits under this title (without regard to whether

11 the child has received authorized services under this

12 part and without regard to whether the State in13 volved is receiving a grant under section 1641). The

14 preceding sentence applies on and after the date of

15 the enactment of this part.

16 ‘‘(c) USE BY STATES OF EXISTING DELIVERY SYS17 TEMS.—With respect to the systems utilized by the States

18 to deliver services to individuals with disabilities (including

19 systems utilized before the date of the enactment of the

20 Personal Responsibility Act of 1995), it is the sense of

21 the Congress that the States should utilize such systems

22 in providing authorized services under this part.

23 ‘‘(d) REQUIRED PARTICIPATION OF STATES.—Sub24 paragraphs (C)(i) and (E)(i)(I) of section 205(c)(2) shall

25 not apply to a State that does not participate in the pro-
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1 gram established in this part for fiscal year 1997 or any

2 succeeding fiscal year.

3 ‘‘SEC. 1646. DEFINITIONS.

4 ‘‘As used in this part:

5 ‘‘(1) ALLOTMENT.—The term ‘allotment’

6 means, with respect to a State and a fiscal year, the

7 product of—

8 ‘‘(A) an amount equal to the difference be9 tween—

10 ‘‘(i) the number of qualifying children

11 in the State (as determined for the most

12 recent 12-month period for which data are

13 available to the Commissioner); and

14 ‘‘(ii) the number of qualifying children

15 in the State receiving cash benefits under

16 this title by reason of disability (as so de17 termined); and

18 ‘‘(B) an amount equal to 75 percent of the

19 mean average of the respective annual totals of

20 cash benefits paid under this title to each quali21 fying child described in subparagraph (A)(ii)

22 (as so determined).

23 ‘‘(2) AUTHORIZED SERVICE.—The term ‘au24 thorized service’ means each purpose authorized by

25 the Commissioner under section 1644(a).
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1 ‘‘(3) QUALIFYING CHILD.—

2 ‘‘(A) IN GENERAL.—The term ‘qualifying

3 child’ means an individual who—

4 ‘‘(i) has not attained 18 years of age;

5 and

6 ‘‘(ii)(I) is eligible for cash benefits

7 under this title by reason of disability; or

8 ‘‘(II) meets the conditions described

9 in subclauses (I) and (II) of section

10 1614(a)(3)(A)(ii), but (by reason of

11 subclause (III) of such section) is not eligi12 ble for such cash benefits.

13 ‘‘(B) RESPONSIBILITIES OF COMMIS14 SIONER.—The Commissioner shall provide for

15 determinations of whether individuals meet the

16 criteria established in subparagraph (A) for sta17 tus as qualifying children. Such determinations

18 shall be made in accordance with the provisions

19 otherwise applicable under this title with re20 spect to such criteria.’’.

21 (2) RULE REGARDING CERTAIN MILITARY PAR22 ENTS; CASH BENEFITS FOR QUALIFYING CHIL23 DREN.—Section 1614(a)(1)(B)(ii) of the Social Se24 curity Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amend25 ed by striking ‘‘United States, and who, for the
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1 month’’ and all that follows and inserting the follow2 ing: ‘‘United States, and—

3 ‘‘(I) who, for the month before the parent re4 ported for such assignment, received a cash benefit

5 under this title by reason of blindness, or

6 ‘‘(II) for whom, for such month, a determina7 tion was in effect that the child is a qualifying child

8 under section 1646(3).’’.

9 (c) PROVISIONS RELATING TO SSI CASH BENEFITS

10 AND SSI SERVICE BENEFITS.—

11 (1) CONTINUING DISABILITY REVIEWS FOR

12 CERTAIN CHILDREN.—Section 1614(a)(3)(G) of such

13 Act (42 U.S.C. 1382c(a)(3)(G)) is amended—

14 (A) by inserting ‘‘(i)’’ after ‘‘(G)’’; and

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

16 ‘‘(ii)(I) Not less frequently than once every 3 years,

17 the Commissioner shall redetermine the eligibility for cash

18 benefits under this title and for services under part C—

19 ‘‘(aa) of each individual who has not attained

20 18 years of age and is eligible for such cash benefits

21 by reason of disability; and

22 ‘‘(bb) of each qualifying child (as defined in sec23 tion 1646(3)).
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1 ‘‘(II) Subclause (I) shall not apply to an individual

2 if the individual has an impairment (or combination of im3 pairments) which is (or are) not expected to improve.’’.

4 (2) DISABILITY REVIEW REQUIRED FOR SSI RE5 CIPIENTS WHO ARE 18 YEARS OF AGE.—

6 (A) IN GENERAL.—Section 1614(a)(3)(G)

7 of such Act (42 U.S.C. 1382c(a)(3)(G)), as

8 amended by paragraph (1) of this subsection, is

9 amended by adding at the end the following:

10 ‘‘(iii)(I) The Commissioner shall redetermine the eli11 gibility of a qualified individual for supplemental security

12 income benefits under this title by reason of disability, by

13 applying the criteria used in determining eligibility for

14 such benefits of applicants who have attained 18 years of

15 age.

16 ‘‘(II) The redetermination required by subclause (I)

17 with respect to a qualified individual shall be conducted

18 during the 1-year period that begins on the date the quali19 fied individual attains 18 years of age.

20 ‘‘(III) As used in this clause, the term ‘qualified indi21 vidual’ means an individual who attains 18 years of age

22 and for whom, for the month preceding the month in

23 which the individual attained such age, a determination

24 was in effect that the individual is a qualifying child under

25 section 1646(3).
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1 ‘‘(IV) A redetermination under subclause (I) of this

2 clause shall be considered a substitute for a review re3 quired under any other provision of this subparagraph.’’.

4 (B) REPORT TO THE CONGRESS.—Not

5 later than October 1, 1998, the Commissioner

6 of Social Security shall submit to the Commit7 tee on Ways and Means of the House of Rep8 resentatives and the Committee on Finance of

9 the Senate a report on the activities conducted

10 under section 1614(a)(3)(G)(iii) of the Social

11 Security Act.

12 (C) CONFORMING REPEAL.—Section 207

13 of the Social Security Independence and Pro14 gram Improvements Act of 1994 (42 U.S.C.

15 1382 note; 108 Stat. 1516) is hereby repealed.

16 (3) DISABILITY REVIEW REQUIRED FOR LOW

17 BIRTH WEIGHT BABIES WHO HAVE RECEIVED SSI

18 BENEFITS FOR 12 MONTHS.—Section 1614(a)(3)(G)

19 of such Act (42 U.S.C. 1382c(a)(3)(G)), as amended

20 by paragraphs (1) and (2) of this subsection, is

21 amended by adding at the end the following:

22 ‘‘(iv)(I) The Commissioner shall redetermine the eli23 gibility for—

24 ‘‘(aa) cash benefits under this title by reason of

25 disability of an individual whose low birth weight is
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1 a contributing factor material to the Commissioner’s

2 determination that the individual is disabled; and

3 ‘‘(bb) services under part C of an individual

4 who is eligible for such services by reason of low

5 birth weight.

6 ‘‘(II) The redetermination required by subclause (I)

7 shall be conducted once the individual has received such

8 benefits for 12 months.

9 ‘‘(III) A redetermination under subclause (I) of this

10 clause shall be considered a substitute for a review re11 quired under any other provision of this subparagraph.’’.

12 (4) APPLICABILITY OF MEDICAID RULES RE13 GARDING COUNTING OF CERTAIN ASSETS AND

14 TRUSTS OF CHILDREN.—Section 1613(c) of the So15 cial Security Act (42 U.S.C. 1382b(c)) is amended

16 to read as follows:

17 ‘‘TREATMENT OF CERTAIN ASSETS AND TRUSTS IN

18 ELIGIBILITY DETERMINATIONS FOR CHILDREN

19 ‘‘(c) Subsections (c) and (d) of section 1917 shall

20 apply to determinations of eligibility for benefits under

21 this title in the case of an individual who has not attained

22 18 years of age in the same manner as such subsections

23 apply to determinations of eligibility for medical assistance

24 under a State plan under title XIX, except that—

25 ‘‘(1) the amount described in section

26 1917(c)(1)(E)(i)(II) shall be the amount of cash
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1 benefits payable under this title to an eligible indi2 vidual who does not have an eligible spouse and who

3 has no income or resources;

4 ‘‘(2) the look-back date specified in section

5 1917(c)(1)(B) shall be the date that is 36 months

6 before the date the individual has applied for bene7 fits under this title; and

8 ‘‘(3) any assets in a trust over which the indi9 vidual has control shall be considered assets of the

10 individual.’’.

11 (d) CONFORMING AMENDMENTS.—

12 (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5),

13 and (e)(1)(B) of section 1611 of the Social Security

14 Act (42 U.S.C. 1382 (b)(1), (b)(2), (c)(3), (c)(5),

15 and (e)(1)(B)) are each amended by inserting

16 ‘‘cash’’ before ‘‘benefit under this title’’.

17 (2) Section 1611(c)(1) of such Act (42 U.S.C.

18 1382(c)(1)) is amended—

19 (A) by striking ‘‘a benefit’’ and inserting

20 ‘‘benefits’’;

21 (B) by striking ‘‘such benefit’’ and insert22 ing ‘‘the cash benefit under this title’’; and

23 (C) by striking ‘‘and the amount of such

24 benefits’’ and inserting ‘‘benefits under this
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1 title and the amount of any cash benefit under

2 this title’’.

3 (3) Section 1611(c)(2) of such Act (42 U.S.C.

4 1382(c)(2)) is amended—

5 (A) by striking ‘‘such benefit’’ and insert6 ing ‘‘the cash benefit’’;

7 (B) by inserting ‘‘cash’’ before ‘‘benefits’’

8 each place such term appears; and

9 (C) in subpargraph (B), by inserting

10 ‘‘cash’’ before ‘‘benefit’’.

11 (4) Section 1611(c)(3) of such Act (42 U.S.C.

12 1382(c)(3)) is amended by inserting ‘‘cash’’ before

13 ‘‘benefits under this title’’.

14 (5) Section 1611(e)(1)(G) of such Act (42

15 U.S.C. 1382(e)(1)(G)) is amended by inserting

16 ‘‘cash’’ before ‘‘benefit of’’.

17 (6) Section 1614(a)(4) of such Act (42 U.S.C.

18 1382c(a)(4)) is amended by inserting ‘‘or impair19 ment’’ after ‘‘disability’’ each place such term ap20 pears.

21 (7) Section 1614(f)(1) of such Act (42 U.S.C.

22 1382c(f)(1)) is amended by striking ‘‘and the

23 amount of benefits’’ and inserting ‘‘benefits under

24 this title and the amount of any cash benefit under

25 this title’’.
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1 (8) Section 1614(f)(2)(A) of such Act (42

2 U.S.C. 1382c(f)(2)(A)) is amended by striking ‘‘and

3 the amount of benefits’’ and inserting ‘‘benefits

4 under this title and the amount of any cash benefit’’.

5 (9) Section 1614(f)(3) of such Act (42 U.S.C.

6 1382c(f)(3)) is amended by striking ‘‘and the

7 amount of benefits’’ and inserting ‘‘benefits under

8 this title and the amount of any cash benefit under

9 this title’’.

10 (10) Section 1616(e)(1) of such Act (42 U.S.C.

11 1382e(e)(1)) is amended by inserting ‘‘cash’’ before

12 ‘‘supplemental’’.

13 (11) Section 1621(a) of such Act (42 U.S.C.

14 1382j(a)) is amended by striking ‘‘and the amount

15 of benefits’’ and inserting ‘‘benefits under this title

16 and the amount of any cash benefit under this title’’.

17 (12) Section 1631(a)(4) of such Act (42 U.S.C.

18 1383(a)(4)) is amended by inserting ‘‘cash’’ before

19 ‘‘benefits’’ the 1st place such term appears in each

20 of subparagraphs (A) and (B).

21 (13) Section 1631(a)(7)(A) of such Act (42

22 U.S.C. 1383(a)(7)(A)) is amended by inserting

23 ‘‘cash’’ before ‘‘benefits based’’.

24 (14) Section 1631(a)(8)(A) of such Act (42

25 U.S.C. 1383(a)(8)(A)) is amended by striking ‘‘ben-
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1 efits based on disability or blindness under this

2 title’’ and inserting ‘‘benefits under this title (other

3 than by reason of age)’’.

4 (15) Section 1631(c) of such Act (42 U.S.C.

5 1383(c)) is amended—

6 (A) by striking ‘‘payment’’ each place such

7 term appears and inserting ‘‘benefits’’; and

8 (B) by striking ‘‘payments’’ each place

9 such term appears and inserting ‘‘benefits’’.

10 (16) Section 1631(e) of such Act (42 U.S.C.

11 1383(e)) is amended—

12 (A) in paragraph (1)(B), by striking

13 ‘‘amounts of such benefits’’ and inserting

14 ‘‘amounts of cash benefits under this title’’;

15 (B) in paragraph (2), by inserting ‘‘cash’’

16 before ‘‘benefits’’ each place such term appears;

17 (C) by redesignating the 2nd paragraph

18 (6) and paragraph (7) as paragraphs (7) and

19 (8), respectively; and

20 (D) in paragraph (7) (as so redesignated),

21 by inserting ‘‘cash’’ before ‘‘benefits’’ each place

22 such term appears.

23 (17) Section 1631(g)(2) of such Act (42 U.S.C.

24 1383(g)(2)) is amended by striking ‘‘supplemental

25 security income’’ and inserting ‘‘cash’’.
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1 (18) Section 1635(a) of such Act (42 U.S.C.

2 1383d(a)) is amended by striking ‘‘by reason of dis3 ability or blindness’’.

4 (e) TEMPORARY ELIGIBILITY FOR CASH BENEFITS

5 FOR POOR DISABLED CHILDREN RESIDING IN STATES

6 APPLYING ALTERNATIVE INCOME ELIGIBILITY STAND7 ARDS UNDER MEDICAID.—

8 (1) IN GENERAL.—For the period beginning

9 upon the 1st day of the 1st month that begins 90

10 or more days after the date of the enactment of this

11 Act and ending upon the close of fiscal year 1996,

12 an individual described in paragraph (2) shall be

13 considered to be eligible for cash benefits under title

14 XVI of the Social Security Act, by reason of disabil15 ity notwithstanding that the individual does not

16 meet any of the conditions described in section

17 1614(a)(3)(A)(ii)(III) of such Act.

18 (2) REQUIREMENTS.—For purposes of para19 graph (1), an individual described in this paragraph

20 is an individual who—

21 (A) has not attained 18 years of age;

22 (B) meets the conditions described in

23 subclauses (I) and (II) of section

24 1614(a)(3)(A)(ii) of the Social Security Act;
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1 (C) resides in a State that, pursuant to

2 section 1902(f) of such Act, restricts eligibility

3 for medical assistance under title XIX of such

4 Act with respect to aged, blind, and disabled in5 dividuals; and

6 (D) is not eligible for medical assistance

7 under the State plan under such title XIX.

8 (f) REDUCTION IN CASH BENEFITS PAYABLE TO IN9 STITUTIONALIZED CHILDREN WHOSE MEDICAL COSTS

10 ARE COVERED BY PRIVATE INSURANCE.—Section

11 1611(e)(1)(B) of the Social Security Act (42 U.S.C.

12 1382(e)(1)(B)) is amended by inserting ‘‘or under any

13 health insurance policy issued by a private provider of

14 such insurance’’ after ‘‘title XIX’’.

15 (g) APPLICABILITY.—

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by subsections

18 (a)(1), (c), (d) and (f), and section 1645(b)(2) of the

19 Social Security Act (as added by the amendment

20 made by subsection (b) of this section), shall apply

21 to benefits for months beginning 90 or more days

22 after the date of the enactment of this Act, without

23 regard to whether regulations have been issued to

24 implement such amendments.
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1 (2) DELAYED APPLICABILITY TO CURRENT SSI

2 RECIPIENTS OF ELIGIBILITY RESTRICTIONS.—The

3 amendments made by subsection (a)(1) shall not

4 apply, during the first 6 months that begin after the

5 month in which this Act becomes law, to an individ6 ual who is a recipient of cash supplemental security

7 income benefits under title XVI of the Social Secu8 rity Act for the month in which this Act becomes

9 law.

10 (h) REGULATIONS.—Within 3 months after the date

11 of the enactment of this Act—

12 (1) the Commissioner of Social Security shall

13 prescribe such regulations as may be necessary to

14 implement the amendments made by subsections

15 (a)(1), (c), (d), and (f) and to implement subsection

16 (e); and

17 (2) the Secretary of Health and Human Serv18 ices shall prescribe such regulations as may be nec19 essary to implement section 1645(b)(2) of the Social

20 Security Act, as added by the amendment made by

21 subsection (b) of this section.
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1 SEC. 603. EXAMINATION OF MENTAL LISTINGS USED TO DE2 TERMINE ELIGIBILITY OF CHILDREN FOR SSI

3 BENEFITS BY REASON OF DISABILITY.

4 Section 202(e)(2) of the Social Security Independ5 ence and Program Improvements Act of 1994 (42 U.S.C.

6 1382 note) is amended—

7 (1) by striking ‘‘and’’ at the end of subpara8 graph (F); and

9 (2) by redesignating subparagraph (G) as sub10 paragraph (H) and inserting after subparagraph (F)

11 the following:

12 ‘‘(G) whether the criteria in the mental dis13 orders listings in the Listings of Impairments set

14 forth in appendix 1 of subpart P of part 404 of title

15 20, Code of Federal Regulations, are appropriate to

16 ensure that eligibility of individuals who have not at17 tained 18 years of age for cash benefits under the

18 supplemental security income program by reason of

19 disability is limited to those who have serious dis20 abilities and for whom such benefits are necessary to

21 improve their condition or quality of life; and’’.
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1 SEC. 604. LIMITATION ON PAYMENTS TO PUERTO RICO,

2 THE VIRGIN ISLANDS, AND GUAM UNDER

3 PROGRAMS OF AID TO THE AGED, BLIND, OR

4 DISABLED.

5 Section 1108 of the Social Security Act (42 U.S.C.

6 1308), as amended by section 104(e)(1) of this Act, is

7 amended by inserting before ‘‘The total’’ the following:

8 ‘‘(a) PROGRAMS OF AID TO THE AGED, BLIND, OR

9 DISABLED.—The total amount certified by the Secretary

10 of Health and Human Services under titles I, X, XIV, and

11 XVI (as in effect without regard to the amendment made

12 by section 301 of the Social Security Amendments of

13 1972)—

14 ‘‘(1) for payment to Puerto Rico shall not ex15 ceed $18,053,940;

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

17 exceed $473,659; and

18 ‘‘(3) for payment to Guam shall not exceed

19 $900,718.

20 ‘‘(b) MEDICAID PROGRAMS.—’’.

21 SEC. 605. REPEAL OF MAINTENANCE OF EFFORT REQUIRE22 MENTS APPLICABLE TO OPTIONAL STATE

23 PROGRAMS FOR SUPPLEMENTATION OF SSI

24 BENEFITS.

25 Section 1618 of the Social Security Act (42 U.S.C.

26 1382g) is hereby repealed.
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1 SEC. 606. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI2 VIDUALS FOUND TO HAVE FRAUDULENTLY

3 MISREPRESENTED RESIDENCE IN ORDER TO

4 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

5 MORE STATES.

6 Section 1614(a) of the Social Security Act (42 U.S.C.

7 1382c(a)) is amended by adding at the end the following:

8 ‘‘(5) An individual shall not be considered an eligible

9 individual for purposes of this title during the 10-year pe10 riod beginning on the date the individual is found by a

11 State to have made, or is convicted in Federal or State

12 court of having made, a fraudulent statement or represen13 tation with respect to the place of residence of the individ14 ual in order to receive benefits simultaneously from 2 or

15 more States under programs that are funded under part

16 A of title IV, title XIX, or the Food Stamp Act of 1977,

17 or benefits in 2 or more States under the supplemental

18 security income program under title XVI.’’.

19 SEC. 607. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

20 AND PROBATION AND PAROLE VIOLATORS.

21 (a) IN GENERAL.—Section 1611(c) of the Social Se22 curity Act (42 U.S.C. 1382(e)), as amended by section

23 601(b)(1) of this Act, is amended by inserting after para24 graph (2) the following:

25 ‘‘(3) A person shall not be an eligible individual

26 or eligible spouse for purposes of this title with re-
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1 spect to any month if, throughout the month, the

2 person is—

3 ‘‘(A) fleeing to avoid prosecution, or cus4 tody or confinement after conviction, under the

5 laws of the place from which the person flees,

6 for a crime, or an attempt to commit a crime,

7 which is a felony under the laws of the place

8 from which the person flees, or which, in the

9 case of the State of New Jersey, is a high mis10 demeanor under the laws of such State; or

11 ‘‘(B) violating a condition of probation or

12 parole imposed under Federal or State law.’’.

13 (b) EXCHANGE OF INFORMATION WITH LAW EN14 FORCEMENT AGENCIES.—Section 1631(e) of such Act (42

15 U.S.C. 1383(e)) is amended by inserting after paragraph

16 (3) the following:

17 ‘‘(4) Notwithstanding any other provision of law, the

18 Commissioner shall furnish any Federal, State, or local

19 law enforcement officer, upon the request of the officer,

20 with the current address of any recipient of benefits under

21 this title, if the officer furnishes the agency with the name

22 of the recipient and notifies the agency that—

23 ‘‘(A) the recipient—

24 ‘‘(i) is fleeing to avoid prosecution, or cus25 tody or confinement after conviction, under the
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1 laws of the place from which the person flees,

2 for a crime, or an attempt to commit a crime,

3 which is a felony under the laws of the place

4 from which the person flees, or which, in the

5 case of the State of New Jersey, is a high mis6 demeanor under the laws of such State;

7 ‘‘(ii) is violating a condition of probation or

8 parole imposed under Federal or State law; or

9 ‘‘(iii) has information that is necessary for

10 the officer to conduct the officer’s official du11 ties;

12 ‘‘(B) the location or apprehension of the recipi13 ent is within the official duties of the officer; and

14 ‘‘(C) the request is made in the proper exercise

15 of such duties.’’.

16 TITLE VII—CHILD SUPPORT

17 SEC. 700. REFERENCES.

18 Except as otherwise specifically provided, wherever in

19 this title an amendment is expressed in terms of an

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

21 the reference shall be considered to be made to that sec22 tion or other provision of the Social Security Act.
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1 Subtitle A—Eligibility for Services;

2 Distribution of Payments

3 SEC. 701. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

4 ENFORCEMENT SERVICES.

5 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

6 U.S.C. 654) is amended—

7 (1) by striking paragraph (4) and inserting the

8 following:

9 ‘‘(4) provide that the State will—

10 ‘‘(A) provide services relating to the estab11 lishment of paternity or the establishment,

12 modification, or enforcement of child support

13 obligations, as appropriate, under the plan with

14 respect to—

15 ‘‘(i) each child for whom cash assist16 ance is provided under the State program

17 funded under part A of this title, benefits

18 or services are provided under the State

19 program funded under part B of this title,

20 or medical assistance is provided under the

21 State plan approved under title XIX, un22 less the State agency administering the

23 plan determines (in accordance with para24 graph (28)) that it is against the best in25 terests of the child to do so; and
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1 ‘‘(ii) any other child, if an individual

2 applies for such services with respect to

3 the child; and

4 ‘‘(B) enforce any support obligation estab5 lished with respect to—

6 ‘‘(i) a child with respect to whom the

7 State provides services under the plan; or

8 ‘‘(ii) the custodial parent of such a

9 child.’’; and

10 (2) in paragraph (6)—

11 (A) by striking ‘‘provide that’’ and insert12 ing ‘‘provide that—’’;

13 (B) by striking subparagraph (A) and in14 serting the following:

15 ‘‘(A) services under the plan shall be made

16 available to nonresidents on the same terms as

17 to residents;’’;

18 (C) in subparagraph (B), by inserting ‘‘on

19 individuals not receiving assistance under any

20 State program funded under part A’’ after

21 ‘‘such services shall be imposed’’;

22 (D) in each of subparagraphs (B), (C),

23 (D), and (E)—

24 (i) by indenting the subparagraph in

25 the same manner as, and aligning the left
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1 margin of the subparagraph with the left

2 margin of, the matter inserted by subpara3 graph (B) of this paragraph; and

4 (ii) by striking the final comma and

5 inserting a semicolon; and

6 (E) in subparagraph (E), by indenting

7 each of clauses (i) and (ii) 2 additional ems.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Section 452(b) (42 U.S.C. 652(b)) is

10 amended by striking ‘‘454(6)’’ and inserting

11 ‘‘454(4)’’.

12 (2) Section 452(g)(2)(A) (42 U.S.C.

13 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

14 place it appears and inserting ‘‘454(4)(A)(ii)’’.

15 (3) Section 466(a)(3)(B) (42 U.S.C.

16 666(a)(3)(B)) is amended by striking ‘‘in the case of

17 overdue support which a State has agreed to collect

18 under section 454(6)’’ and inserting ‘‘in any other

19 case’’.

20 (4) Section 466(e) (42 U.S.C. 666(e)) is

21 amended by striking ‘‘paragraph (4) or (6) of sec22 tion 454’’ and inserting ‘‘section 454(4)’’.
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1 SEC. 702. DISTRIBUTION OF CHILD SUPPORT COLLEC2 TIONS.

3 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

4 amended to read as follows:

5 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

6 ‘‘(a) IN GENERAL.—An amount collected on behalf

7 of a family as support by a State pursuant to a plan ap8 proved under this part shall be distributed as follows:

9 ‘‘(1) FAMILIES RECEIVING CASH ASSISTANCE.—

10 In the case of a family receiving cash assistance

11 from the State, the State shall—

12 ‘‘(A) retain, or distribute to the family, the

13 State share of the amount so collected; and

14 ‘‘(B) pay to the Federal Government the

15 Federal share of the amount so collected.

16 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED

17 CASH ASSISTANCE.—In the case of a family that for18 merly received cash assistance from the State:

19 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

20 the extent that the amount so collected does not

21 exceed the amount required to be paid to the

22 family for the month in which collected, the

23 State shall distribute the amount so collected to

24 the family.

25 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

26 extent that the amount so collected exceeds the
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1 amount required to be paid to the family for

2 the month in which collected, the State shall

3 distribute the amount so collected as follows:

4 ‘‘(i) DISTRIBUTION TO THE FAMILY

5 TO SATISFY ARREARAGES THAT ACCRUED

6 BEFORE OR AFTER THE FAMILY RECEIVED

7 CASH ASSISTANCE.—The State shall dis8 tribute the amount so collected to the fam9 ily to the extent necessary to satisfy any

10 support arrears with respect to the family

11 that accrued before or after the family re12 ceived cash assistance from the State.

13 ‘‘(ii) REIMBURSEMENT OF GOVERN14 MENTS FOR ASSISTANCE PROVIDED TO

15 THE FAMILY.—To the extent that clause

16 (i) does not apply to the amount, the State

17 shall retain the State share of the amount

18 so collected, and pay to the Federal Gov19 ernment the Federal share of the amount

20 so collected, to the extent necessary to re21 imburse amounts paid to the family as

22 cash assistance from the State.

23 ‘‘(iii) DISTRIBUTION OF THE REMAIN24 DER TO THE FAMILY.—To the extent that

25 neither clause (i) nor clause (ii) applies to
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1 the amount so collected, the State shall

2 distribute the amount to the family.

3 ‘‘(3) FAMILIES THAT NEVER RECEIVED CASH

4 ASSISTANCE.—In the case of any other family, the

5 State shall distribute the amount so collected to the

6 family.

7 ‘‘(b) DEFINITIONS.—As used in subsection (a):

8 ‘‘(1) CASH ASSISTANCE.—The term ‘cash as9 sistance from the State’ means—

10 ‘‘(A) cash assistance under the State pro11 gram funded under part A or under the State

12 plan approved under part A of this title (as in

13 effect before October 1, 1995); or

14 ‘‘(B) cash benefits under the State pro15 gram funded under part B or under the State

16 plan approved under part B or E of this title

17 (as in effect before October 1, 1995).

18 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

19 share’ means, with respect to an amount collected by

20 the State to satisfy a support obligation owed to a

21 family for a time period—

22 ‘‘(A) the greatest Federal medical assist23 ance percentage in effect for the State for fiscal

24 year 1995 or any succeeding fiscal year; or
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1 ‘‘(B) if support is not owed to the family

2 for any month for which the family received aid

3 to families with dependent children under the

4 State plan approved under part A of this title

5 (as in effect before October 1, 1995), the Fed6 eral reimbursement percentage for the fiscal

7 year in which the time period occurs.

8 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT9 AGE.—The term ‘Federal medical assistance per10 centage’ means—

11 ‘‘(A) the Federal medical assistance per12 centage (as defined in section 1118), in the case

13 of Puerto Rico, the Virgin Islands, Guam, and

14 American Samoa; or

15 ‘‘(B) the Federal medical assistance per16 centage (as defined in section 1905(b)) in the

17 case of any other State.

18 ‘‘(4) FEDERAL REIMBURSEMENT PERCENT19 AGE.—The term ‘Federal reimbursement percentage’

20 means, with respect to a fiscal year—

21 ‘‘(A) the total amount paid to the State

22 under section 403 for the fiscal year; divided by

23 ‘‘(B) the total amount expended by the

24 State to carry out the State program under

25 part A during the fiscal year.
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1 ‘‘(5) STATE SHARE.—The term ‘State share’

2 means 100 percent minus the Federal share.

3 ‘‘(c) CONTINUATION OF SERVICES FOR FAMILIES

4 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

5 PROGRAM FUNDED UNDER PART A.—When a family with

6 respect to which services are provided under a State plan

7 approved under this part ceases to receive assistance

8 under the State program funded under part A, the State

9 shall provide appropriate notice to the family and continue

10 to provide such services, subject to the same conditions

11 and on the same basis as in the case of individuals to

12 whom services are furnished under section 454, except

13 that an application or other request to continue services

14 shall not be required of such a family and section

15 454(6)(B) shall not apply to the family.’’.

16 (b) EFFECTIVE DATE.—

17 (1) GENERAL RULE.—Except as provided in

18 paragraph (2), the amendment made by subsection

19 (a) shall become effective on October 1, 1999.

20 (2) EARLIER EFFECTIVE DATE FOR RULES RE21 LATING TO DISTRIBUTION OF SUPPORT COLLECTED

22 FOR FAMILIES RECEIVING CASH ASSISTANCE.—Sec23 tion 457(a)(1) of the Social Security Act, as added

24 by the amendment made by subsection (a), shall be25 come effective on October 1, 1995.
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1 SEC. 703. PRIVACY SAFEGUARDS.

2 (a) STATE PLAN REQUIREMENT.—Section 454 (42

3 U.S.C. 654) is amended—

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

5 (23);

6 (2) by striking the period at the end of para7 graph (24) and inserting ‘‘; and’’; and

8 (3) by adding after paragraph (24) the follow9 ing:

10 ‘‘(25) will have in effect safeguards, applicable

11 to all confidential information handled by the State

12 agency, that are designed to protect the privacy

13 rights of the parties, including—

14 ‘‘(A) safeguards against unauthorized use

15 or disclosure of information relating to proceed16 ings or actions to establish paternity, or to es17 tablish or enforce support;

18 ‘‘(B) prohibitions against the release of in19 formation on the whereabouts of one party to

20 another party against whom a protective order

21 with respect to the former party has been en22 tered; and

23 ‘‘(C) prohibitions against the release of in24 formation on the whereabouts of one party to

25 another party if the State has reason to believe

26 that the release of the information may result
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1 in physical or emotional harm to the former

2 party.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall become effective on October 1, 1997.

5 Subtitle B—Locate and Case

6 Tracking

7 SEC. 711. STATE CASE REGISTRY.

8 Section 454A, as added by section 745(a)(2) of this

9 Act, is amended by adding at the end the following:

10 ‘‘(e) STATE CASE REGISTRY.—

11 ‘‘(1) CONTENTS.—The automated system re12 quired by this section shall include a registry (which

13 shall be known as the ‘State case registry’) that con14 tains records with respect to—

15 ‘‘(A) each case in which services are being

16 provided by the State agency under the State

17 plan approved under this part; and

18 ‘‘(B) each support order established or

19 modified in the State on or after October 1,

20 1998.

21 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

22 State case registry may be established by linking

23 local case registries of support orders through an

24 automated information network, subject to this sec25 tion.
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1 ‘‘(3) USE OF STANDARDIZED DATA ELE2 MENTS.—Such records shall use standardized data

3 elements for both parents (such as names, social se4 curity numbers and other uniform identification

5 numbers, dates of birth, and case identification

6 numbers), and contain such other information (such

7 as on case status) as the Secretary may require.

8 ‘‘(4) PAYMENT RECORDS.—Each case record in

9 the State case registry with respect to which services

10 are being provided under the State plan approved

11 under this part and with respect to which a support

12 order has been established shall include a record

13 of—

14 ‘‘(A) the amount of monthly (or other peri15 odic) support owed under the order, and other

16 amounts (including arrears, interest or late

17 payment penalties, and fees) due or overdue

18 under the order;

19 ‘‘(B) any amount described in subpara20 graph (A) that has been collected;

21 ‘‘(C) the distribution of such collected

22 amounts;

23 ‘‘(D) the birth date of any child for whom

24 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 maintain,

7 and regularly monitor, case records in the State case

8 registry with respect to which services are being pro9 vided under the State plan approved under this part,

10 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 compari15 son with Federal, State, or local sources of in16 formation;

17 ‘‘(C) information on support collections

18 and distributions; and

19 ‘‘(D) any other relevant information.

20 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS21 CLOSURES OF INFORMATION.—The State shall use the

22 automated system required by this section to extract infor23 mation from (at such times, and in such standardized for24 mat or formats, as may be required by the Secretary), to

25 share and compare information with, and to receive infor-
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1 mation from, other data bases and information compari2 son services, in order to obtain (or provide) information

3 necessary to enable the State agency (or the Secretary or

4 other State or Federal agencies) to carry out this part,

5 subject to section 6103 of the Internal Revenue Code of

6 1986. Such information comparison activities shall include

7 the following:

8 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP9 PORT ORDERS.—Furnishing to the Federal Case

10 Registry of Child Support Orders established under

11 section 453(h) (and update as necessary, with infor12 mation including notice of expiration of orders) the

13 minimum amount of information on child support

14 cases recorded in the State case registry that is nec15 essary to operate the registry (as specified by the

16 Secretary in regulations).

17 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

18 Exchanging information with the Federal Parent

19 Locator Service for the purposes specified in section

20 453.

21 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

22 MEDICAID AGENCIES.—Exchanging information with

23 State agencies (of the State and of other States) ad24 ministering programs funded under part A, pro25 grams operated under State plans under title XIX,
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1 and other programs designated by the Secretary, as

2 necessary to perform State agency responsibilities

3 under this part and under such programs.

4 ‘‘(4) INTRA- AND INTERSTATE INFORMATION

5 COMPARISONS.—Exchanging information with other

6 agencies of the State, agencies of other States, and

7 interstate information networks, as necessary and

8 appropriate to carry out (or assist other States to

9 carry out) the purposes of this part.’’.

10 SEC. 712. COLLECTION AND DISBURSEMENT OF SUPPORT

11 PAYMENTS.

12 (a) STATE PLAN REQUIREMENT.—Section 454 (42

13 U.S.C. 654), as amended by section 703(a) of this Act,

14 is amended—

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

16 (24);

17 (2) by striking the period at the end of para18 graph (25) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (25) the follow20 ing:

21 ‘‘(26) provide that, on and after October 1,

22 1998, the State agency will—

23 ‘‘(A) operate a State disbursement unit in

24 accordance with section 454B; and
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1 ‘‘(B) have sufficient State staff (consisting

2 of State employees) and (at State option) con3 tractors reporting directly to the State agency

4 to—

5 ‘‘(i) monitor and enforce support col6 lections through the unit (including carry7 ing out the automated data processing re8 sponsibilities described in section 454A(g));

9 and

10 ‘‘(ii) take the actions described in sec11 tion 466(c)(1) in appropriate cases.’’.

12 (b) ESTABLISHMENT OF STATE DISBURSEMENT

13 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

14 amended by section 745(a)(2) of this Act, is amended by

15 inserting after section 454A the following:

16 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP17 PORT PAYMENTS.

18 ‘‘(a) STATE DISBURSEMENT UNIT.—

19 ‘‘(1) IN GENERAL.—In order for a State to

20 meet the requirements of this section, the State

21 agency must establish and operate a unit (which

22 shall be known as the ‘State disbursement unit’) for

23 the collection and disbursement of payments under

24 support orders in all cases being enforced by the

25 State pursuant to section 454(4).
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1 ‘‘(2) OPERATION.—The State disbursement

2 unit shall be operated—

3 ‘‘(A) directly by the State agency (or 2 or

4 more State agencies under a regional coopera5 tive agreement), or (to the extent appropriate)

6 by a contractor responsible directly to the State

7 agency; and

8 ‘‘(B) in coordination with the automated

9 system established by the State pursuant to

10 section 454A.

11 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

12 UNITS.—The State disbursement unit may be estab13 lished by linking local disbursement units through

14 an automated information network, subject to this

15 section. The Secretary must agree that the system

16 will not cost more nor take more time to establish

17 than a centralized system. In addition, employers

18 shall be given 1 location to which income withhold19 ing is sent.

20 ‘‘(b) REQUIRED PROCEDURES.—The State disburse21 ment unit shall use automated procedures, electronic proc22 esses, and computer-driven technology to the maximum

23 extent feasible, efficient, and economical, for the collection

24 and disbursement of support payments, including proce25 dures—
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1 ‘‘(1) for receipt of payments from parents, em2 ployers, and other States, and for disbursements to

3 custodial parents and other obligees, the State agen4 cy, and the agencies of other States;

5 ‘‘(2) for accurate identification of payments;

6 ‘‘(3) to ensure prompt disbursement of the cus7 todial parent’s share of any payment; and

8 ‘‘(4) to furnish to any parent, upon request,

9 timely information on the current status of support

10 payments under an order requiring payments to be

11 made by or to the parent.

12 ‘‘(c) TIMING OF DISBURSEMENTS.—The State dis13 bursement unit shall distribute all amounts payable under

14 section 457(a) within 2 business days after receipt from

15 the employer or other source of periodic income, if suffi16 cient information identifying the payee is provided.

17 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec18 tion, the term ‘business day’ means a day on which State

19 offices are open for regular business.’’.

20 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

21 added by section 745(a)(2) of this Act and as amended

22 by section 711 of this Act, is amended by adding at the

23 end the following:

24 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

25 PAYMENTS.—
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1 ‘‘(1) IN GENERAL.—The State shall use the

2 automated system required by this section, to the

3 maximum extent feasible, to assist and facilitate the

4 collection and disbursement of support payments

5 through the State disbursement unit operated under

6 section 454B, through the performance of functions,

7 including, at a minimum—

8 ‘‘(A) transmission of orders and notices to

9 employers (and other debtors) for the withhold10 ing of wages (and other income)—

11 ‘‘(i) within 2 business days after re12 ceipt (from a court, another State, an em13 ployer, the Federal Parent Locator Service,

14 or another source recognized by the State)

15 of notice of, and the income source subject

16 to, such withholding; and

17 ‘‘(ii) using uniform formats prescribed

18 by the Secretary;

19 ‘‘(B) ongoing monitoring to promptly iden20 tify failures to make timely payment of support;

21 and

22 ‘‘(C) automatic use of enforcement proce23 dures (including procedures authorized pursu24 ant to section 466(c)) where payments are not

25 timely made.
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1 ‘‘(2) BUSINESS DAY DEFINED.—As used in

2 paragraph (1), the term ‘business day’ means a day

3 on which State offices are open for regular busi4 ness.’’.

5 (d) EFFECTIVE DATE.—The amendments made by

6 this section shall become effective on October 1, 1998.

7 SEC. 713. STATE DIRECTORY OF NEW HIRES.

8 (a) STATE PLAN REQUIREMENT.—Section 454 (42

9 U.S.C. 654), as amended by sections 703(a) and 712(a)

10 of this Act, is amended—

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

12 (25);

13 (2) by striking the period at the end of para14 graph (26) and inserting ‘‘; and’’; and

15 (3) by adding after paragraph (26) the follow16 ing:

17 ‘‘(27) provide that, on and after October 1,

18 1997, the State will operate a State Directory of

19 New Hires 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

22 after section 453 the following:

23 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

24 ‘‘(a) ESTABLISHMENT.—
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1 ‘‘(1) IN GENERAL.—Not later than October 1,

2 1997, each State shall establish an automated direc3 tory (to be known as the ‘State Directory of New

4 Hires’) which shall contain information supplied in

5 accordance with subsection (b) by employers and

6 labor organizations on each newly hired employee.

7 ‘‘(2) DEFINITIONS.—As used in this section:

8 ‘‘(A) EMPLOYEE.—The term ‘employee’—

9 ‘‘(i) means an individual who is an

10 employee within the meaning of chapter 24

11 of the Internal Revenue Code of 1986; and

12 ‘‘(ii) does not include an employee of

13 a Federal or State agency performing in14 telligence or counterintelligence functions,

15 if the head of such agency has determined

16 that reporting pursuant to paragraph (1)

17 with respect to the employee could endan18 ger the safety of the employee or com19 promise an ongoing investigation or intel20 ligence mission.

21 ‘‘(B) GOVERNMENTAL EMPLOYERS.—The

22 term ‘employer’ includes any governmental en23 tity.

24 ‘‘(C) LABOR ORGANIZATION.—The term

25 ‘labor organization’ shall have the meaning
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1 given such term in section 2(5) of the National

2 Labor Relations Act, and includes any entity

3 (also known as a ‘hiring hall’) which is used by

4 the organization and an employer to carry out

5 requirements described in section 8(f)(3) of

6 such Act of an agreement between the organiza7 tion and the employer.

8 ‘‘(b) EMPLOYER INFORMATION.—

9 ‘‘(1) REPORTING REQUIREMENT.—

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

11 subparagraph (B), each employer shall furnish

12 to the Directory of New Hires of the State in

13 which a newly hired employee works a report

14 that contains the name, address, and social se15 curity number of the employee, and the name

16 of, and identifying number assigned under sec17 tion 6109 of the Internal Revenue Code of 1986

18 to, the employer.

19 ‘‘(B) MULTISTATE EMPLOYERS.—An em20 ployer who has employees who are employed in

21 2 or more States may comply with subpara22 graph (A) by transmitting the report described

23 in subparagraph (A) magnetically or electroni24 cally to the State in which the greatest number

25 of employees of the employer are employed.
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1 ‘‘(2) TIMING OF REPORT.—The report required

2 by paragraph (1) with respect to an employee shall

3 be made not later than the later of—

4 ‘‘(A) 15 days after the date the employer

5 hires the employee; or

6 ‘‘(B) the date the employee first receives

7 wages or other compensation from the em8 ployer.

9 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re10 port required by subsection (b) shall be made on a W–

11 4 form or the equivalent, and may be transmitted by first

12 class mail, magnetically, or electronically.

13 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

14 EMPLOYERS.—

15 ‘‘(1) IN GENERAL.—An employer that fails to

16 comply with subsection (b) with respect to an em17 ployee shall be subject to a civil money penalty of—

18 ‘‘(A) $25; or

19 ‘‘(B) $500 if, under State law, the failure

20 is the result of a conspiracy between the em21 ployer and the employee to not supply the re22 quired report or to supply a false or incomplete

23 report.

24 ‘‘(2) APPLICABILITY OF SECTION 1128.—Section

25 1128 (other than subsections (a) and (b) of such
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1 section) shall apply to a civil money penalty under

2 paragraph (1) of this subsection in the same manner

3 as such section applies to a civil money penalty or

4 proceeding under section 1128A(a).

5 ‘‘(e) INFORMATION COMPARISONS.—

6 ‘‘(1) IN GENERAL.—Not later than October 1,

7 1997, an agency designated by the State shall, di8 rectly or by contract, conduct automated compari9 sons of the social security numbers reported by em10 ployers pursuant to subsection (b) and the social se11 curity numbers appearing in the records of the State

12 case registry for cases being enforced under the

13 State plan.

14 ‘‘(2) NOTICE OF MATCH.—When an information

15 comparison conducted under paragraph (1) reveals a

16 match with respect to the social security number of

17 an individual required to provide support under a

18 support order, the State Directory of New Hires

19 shall provide the agency administering the State

20 plan approved under this part of the appropriate

21 State with the name, address, and social security

22 number of the employee to whom the social security

23 number is assigned, and the name of, and identify24 ing number assigned under section 6109 of the In25 ternal Revenue Code of 1986 to, the employer.
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1 ‘‘(f) TRANSMISSION OF INFORMATION.—

2 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

3 NOTICES TO EMPLOYERS.—Within 2 business days

4 after the date information regarding a newly hired

5 employee is entered into the State Directory of New

6 Hires, the State agency enforcing the employee’s

7 child support obligation shall transmit a notice to

8 the employer of the employee directing the employer

9 to withhold from the wages of the employee an

10 amount equal to the monthly (or other periodic)

11 child support obligation of the employee, unless the

12 employee’s wages are not subject to withholding pur13 suant to section 466(b)(3).

14 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC15 TORY OF NEW HIRES.—

16 ‘‘(A) NEW HIRE INFORMATION.—Within 4

17 business days after the State Directory of New

18 Hires receives information from employers pur19 suant to this section, the State Directory of

20 New Hires shall furnish the information to the

21 National Directory of New Hires.

22 ‘‘(B) WAGE AND UNEMPLOYMENT COM23 PENSATION INFORMATION.—The State Direc24 tory of New Hires shall, on a quarterly basis,

25 furnish to the National Directory of New Hires
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1 extracts of the reports required under section

2 303(a)(6) to be made to the Secretary of Labor

3 concerning the wages and unemployment com4 pensation paid to individuals, by such dates, in

5 such format, and containing such information

6 as the Secretary of Health and Human Services

7 shall specify in regulations.

8 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

9 subsection, the term ‘business day’ means a day on

10 which State offices are open for regular business.

11 ‘‘(g) OTHER USES OF NEW HIRE INFORMATION.—

12 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI13 GORS.—The agency administering the State plan ap14 proved under this part shall use information received

15 pursuant to subsection (e)(2) to locate individuals

16 for purposes of establishing paternity and establish17 ing, modifying, and enforcing child support obliga18 tions.

19 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER20 TAIN PROGRAMS.—A State agency responsible for

21 administering a program specified in section 1137(b)

22 shall have access to information reported by employ23 ers pursuant to subsection (b) of this section for

24 purposes of verifying eligibility for the program.
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1 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU2 RITY AND WORKERS COMPENSATION.—State agen3 cies operating employment security and workers’

4 compensation programs shall have access to informa5 tion reported by employers pursuant to subsection

6 (b) for the purposes of administering such pro7 grams.’’.

8 SEC. 714. AMENDMENTS CONCERNING INCOME WITHHOLD9 ING.

10 (a) MANDATORY INCOME WITHHOLDING.—

11 (1) IN GENERAL.—Section 466(a)(1) (42

12 U.S.C. 666(a)(1)) is amended to read as follows:

13 ‘‘(1) INCOME WITHHOLDING.—

14 ‘‘(A) UNDER ORDERS ENFORCED UNDER

15 THE STATE PLAN.—Procedures described in

16 subsection (b) for the withholding from income

17 of amounts payable as support in cases subject

18 to enforcement under the State plan.

19 ‘‘(B) UNDER CERTAIN ORDERS PREDATING

20 CHANGE IN REQUIREMENT.—Procedures under

21 which the wages of a person with a support ob22 ligation imposed by a support order issued (or

23 modified) in the State before October 1, 1996,

24 if not otherwise subject to withholding under

25 subsection (b), shall become subject to with-
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1 holding as provided in subsection (b) if arrear2 ages occur, without the need for a judicial or

3 administrative hearing.’’.

4 (2) CONFORMING AMENDMENTS.—

5 (A) Section 466(a)(8)(B)(iii) (42 U.S.C.

6 666(a)(8)(B)(iii)) is amended—

7 (i) by striking ‘‘(5),’’; and

8 (ii) by inserting ‘‘, and, at the option

9 of the State, the requirements of sub10 section (b)(5)’’ before the period.

11 (B) Section 466(b) (42 U.S.C. 666(b)) is

12 amended in the matter preceding paragraph

13 (1), by striking ‘‘subsection (a)(1)’’ and insert14 ing ‘‘subsection (a)(1)(A)’’.

15 (C) Section 466(b)(5) (42 U.S.C.

16 666(b)(5)) is amended by striking all that fol17 lows ‘‘administered by’’ and inserting ‘‘the

18 State through the State disbursement unit es19 tablished pursuant to section 454B, in accord20 ance with the requirements of section 454B.’’.

21 (D) Section 466(b)(6)(A) (42 U.S.C.

22 666(b)(6)(A)) is amended—

23 (i) in clause (i), by striking ‘‘to the

24 appropriate agency’’ and all that follows

25 and inserting ‘‘to the State disbursement
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1 unit within 2 business days after the date

2 the amount would (but for this subsection)

3 have been paid or credited to the employee,

4 for distribution in accordance with this

5 part.’’;

6 (ii) in clause (ii), by inserting ‘‘be in

7 a standard format prescribed by the Sec8 retary, and’’ after ‘‘shall’’; and

9 (iii) by adding at the end the follow10 ing:

11 ‘‘(iii) As used in this subparagraph, the term

12 ‘business day’ means a day on which State offices

13 are open for regular business.’’.

14 (E) Section 466(b)(6)(D) (42 U.S.C.

15 666(b)(6)(D)) is amended by striking ‘‘any em16 ployer’’ and all that follows and inserting the

17 following:

18 ‘‘any employer who—

19 ‘‘(i) discharges from employment, refuses

20 to employ, or takes disciplinary action against

21 any absent parent subject to wage withholding

22 required by this subsection because of the exist23 ence of such withholding and the obligations or

24 additional obligations which is imposes upon the

25 employer; or
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1 ‘‘(ii) fails to withhold support from wages,

2 or to pay such amounts to the State disburse3 ment unit in accordance with this subsection.’’.

4 (F) Section 466(b) (42 U.S.C. 666(b)) is

5 amended by adding at the end the following:

6 ‘‘(11) Procedures under which the agency ad7 ministering the State plan approved under this part

8 may execute a withholding order through electronic

9 means and without advance notice to the obligor.’’.

10 (b) CONFORMING AMENDMENT.—Section 466(c) (42

11 U.S.C. 666(c)) is repealed.

12 SEC. 715. LOCATOR INFORMATION FROM INTERSTATE NET13 WORKS.

14 Section 466(a) (42 U.S.C. 666(a)) is amended by

15 adding at the end the following:

16 ‘‘(12) LOCATOR INFORMATION FROM INTER17 STATE NETWORKS.—Procedures to ensure that all

18 Federal and State agencies conducting activities

19 under this part have access to any system used by

20 the State to locate an individual for purposes relat21 ing to motor vehicles or law enforcement.’’.
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1 SEC. 716. EXPANSION OF THE FEDERAL PARENT LOCATOR

2 SERVICE.

3 (a) EXPANDED AUTHORITY TO LOCATE INDIVID4 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

5 amended—

6 (1) in subsection (a), by striking all that follows

7 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

8 establishing parentage, establishing, setting the

9 amount of, modifying, or enforcing child support ob10 ligations—

11 ‘‘(1) information on, or facilitating the discov12 ery of, the location of any individual—

13 ‘‘(A) who is under an obligation to pay

14 child support;

15 ‘‘(B) against whom such an obligation is

16 sought; or

17 ‘‘(C) to whom such an obligation is owed,

18 including the individual’s social security number (or

19 numbers), most recent address, and the name, ad20 dress, and employer identification number of the in21 dividual’s employer; and

22 ‘‘(2) information on the individual’s wages (or

23 other income) from, and benefits of, employment (in24 cluding rights to or enrollment in group health care

25 coverage).’’; and
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1 (2) in subsection (b), in the matter preceding

2 paragraph (1), by striking ‘‘social security’’ and all

3 that follows through ‘‘absent parent’’ and inserting

4 ‘‘information described in subsection (a)’’.

5 (b) REIMBURSEMENT FOR INFORMATION FROM FED6 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

7 653(e)(2)) is amended in the 4th sentence by inserting

8 ‘‘in an amount which the Secretary determines to be rea9 sonable payment for the information exchange (which

10 amount shall not include payment for the costs of obtain11 ing, compiling, or maintaining the information)’’ before

12 the period.

13 (c) REIMBURSEMENT FOR REPORTS BY STATE

14 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

15 adding at the end the following:

16 ‘‘(g) The Secretary may reimburse Federal and State

17 agencies for the costs incurred by such entities in furnish18 ing information requested by the Secretary under this sec19 tion in an amount which the Secretary determines to be

20 reasonable payment for the information exchange (which

21 amount shall not include payment for the costs of obtain22 ing, compiling, or maintaining the information).’’.

23 (d) TECHNICAL AMENDMENTS.—

24 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

25 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),
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1 653(b), 663(a), 663(e), and 663(f)) are each amend2 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

3 place such term appears.

4 (2) Section 453 (42 U.S.C. 653) is amended in

5 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR6 ENT’’.

7 (e) NEW COMPONENTS.—Section 453 (42 U.S.C.

8 653), as amended by subsection (c) of this section, is

9 amended by adding at the end the following:

10 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

11 ORDERS.—

12 ‘‘(1) IN GENERAL.—Not later than October 1,

13 1998, in order to assist States in administering pro14 grams under State plans approved under this part

15 and programs funded under part A, and for the

16 other purposes specified in this section, the Sec17 retary shall establish and maintain in the Federal

18 Parent Locator Service an automated registry

19 (which shall be known as the ‘Federal Case Registry

20 of Child Support Orders’), which shall contain ab21 stracts of support orders and other information de22 scribed in paragraph (2) with respect to each case

23 in each State case registry maintained pursuant to

24 section 454A(e), as furnished (and regularly up-
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1 dated), pursuant to section 454A(f), by State agen2 cies administering programs under this part.

3 ‘‘(2) CASE INFORMATION.—The information re4 ferred to in paragraph (1) with respect to a case

5 shall be such information as the Secretary may

6 specify in regulations (including the names, social

7 security numbers or other uniform identification

8 numbers, and State case identification numbers) to

9 identify the individuals who owe or are owed support

10 (or with respect to or on behalf of whom support ob11 ligations are sought to be established), and the State

12 or States which have the case.

13 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

14 ‘‘(1) IN GENERAL.—In order to assist States in

15 administering programs under State plans approved

16 under this part and programs funded under part A,

17 and for the other purposes specified in this section,

18 the Secretary shall, not later than October 1, 1996,

19 establish and maintain in the Federal Parent Loca20 tor Service an automated directory to be known as

21 the National Directory of New Hires, which shall

22 contain the information supplied pursuant to section

23 453A(f)(2).

24 ‘‘(2) ADMINISTRATION OF FEDERAL TAX

25 LAWS.—The Secretary of the Treasury shall have
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1 access to the information in the Federal Directory of

2 New Hires for purposes of administering section 32

3 of the Internal Revenue Code of 1986, or the ad4 vance payment of the earned income tax credit

5 under section 3507 of such Code, and verifying a

6 claim with respect to employment in a tax return.

7 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS8 CLOSURES.—

9 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD10 MINISTRATION.—

11 ‘‘(A) The Secretary shall transmit informa12 tion on individuals and employers maintained

13 under this section to the Social Security Admin14 istration to the extent necessary for verification

15 in accordance with subparagraph (B).

16 ‘‘(B) The Social Security Administration

17 shall verify the accuracy of, correct, or supply

18 to the extent possible, and report to the Sec19 retary, the following information supplied by

20 the Secretary pursuant to subparagraph (A):

21 ‘‘(i) The name, social security num22 ber, and birth date of each such individual.

23 ‘‘(ii) The employer identification num24 ber of each such employer.
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1 ‘‘(2) INFORMATION COMPARISONS.—For the

2 purpose of locating individuals in a paternity estab3 lishment case or a case involving the establishment,

4 modification, or enforcement of a support order, the

5 Secretary shall—

6 ‘‘(A) compare information in the National

7 Directory of New Hires against information in

8 the support order abstracts in the Federal Case

9 Registry of Child Support Orders not less often

10 than every 2 business days; and

11 ‘‘(B) within 2 such days after such a com12 parison reveals a match with respect to an indi13 vidual, report the information to the State

14 agency responsible for the case.

15 ‘‘(3) INFORMATION COMPARISONS AND DISCLO16 SURES OF INFORMATION IN ALL REGISTRIES FOR

17 TITLE IV PROGRAM PURPOSES.—To the extent and

18 with the frequency that the Secretary determines to

19 be effective in assisting States to carry out their re20 sponsibilities under programs operated under this

21 part and programs funded under part A, the Sec22 retary shall—

23 ‘‘(A) compare the information in each com24 ponent of the Federal Parent Locator Service

25 maintained under this section against the infor-
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1 mation in each other such component (other

2 than the comparison required by paragraph

3 (2)), and report instances in which such a com4 parison reveals a match with respect to an indi5 vidual to State agencies operating such pro6 grams; and

7 ‘‘(B) disclose information in such registries

8 to such State agencies.

9 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

10 TO THE SOCIAL SECURITY ADMINISTRATION.—The

11 National Directory of New Hires shall provide the

12 Commissioner of Social Security with all information

13 in the National Directory, which shall be used to de14 termine the accuracy of payments under the supple15 mental security income program under title XVI and

16 in connection with benefits under title II.

17 ‘‘(5) RESEARCH.—The Secretary may provide

18 access to information reported by employers pursu19 ant to section 453A(b) for research purposes found

20 by the Secretary to be likely to contribute to achiev21 ing the purposes of part A or this part, but without

22 personal identifiers.

23 ‘‘(k) FEES.—

24 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

25 shall reimburse the Commissioner of Social Security,
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1 at a rate negotiated between the Secretary and the

2 Commissioner, for the costs incurred by the Com3 missioner in performing the verification services de4 scribed in subsection (j).

5 ‘‘(2) FOR INFORMATION FROM STATE DIREC6 TORIES OF NEW HIRES.—The Secretary shall reim7 burse costs incurred by State directories of new

8 hires in furnishing information as required by sub9 section (j)(3), at rates which the Secretary deter10 mines to be reasonable (which rates shall not include

11 payment for the costs of obtaining, compiling, or

12 maintaining such information).

13 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

14 AND FEDERAL AGENCIES.—A State or Federal agen15 cy that receives information from the Secretary pur16 suant to this section shall reimburse the Secretary

17 for costs incurred by the Secretary in furnishing the

18 information, at rates which the Secretary determines

19 to be reasonable (which rates shall include payment

20 for the costs of obtaining, verifying, maintaining,

21 and comparing the information).

22 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In23 formation in the Federal Parent Locator Service, and in24 formation resulting from comparisons using such informa25 tion, shall not be used or disclosed except as expressly pro-
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1 vided in this section, subject to section 6103 of the Inter2 nal Revenue Code of 1986.

3 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

4 The Secretary shall establish and implement safeguards

5 with respect to the entities established under this section

6 designed to—

7 ‘‘(1) ensure the accuracy and completeness of

8 information in the Federal Parent Locator Service;

9 and

10 ‘‘(2) restrict access to confidential information

11 in the Federal Parent Locator Service to authorized

12 persons, and restrict use of such information to au13 thorized purposes.’’.

14 (f) CONFORMING AMENDMENTS.—

15 (1) TO PART D OF TITLE IV OF THE SOCIAL SE16 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

17 654(8)(B)) is amended to read as follows:

18 ‘‘(B) the Federal Parent Locator Service

19 established under section 453;’’.

20 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

21 Section 3304(a)(16) of the Internal Revenue Code of

22 1986 is amended—

23 (A) by striking ‘‘Secretary of Health, Edu24 cation, and Welfare’’ each place such term ap-
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1 pears and inserting ‘‘Secretary of Health and

2 Human Services’’;

3 (B) in subparagraph (B), by striking

4 ‘‘such information’’ and all that follows and in5 serting ‘‘information furnished under subpara6 graph (A) or (B) is used only for the purposes

7 authorized under such subparagraph;’’;

8 (C) by striking ‘‘and’’ at the end of sub9 paragraph (A);

10 (D) by redesignating subparagraph (B) as

11 subparagraph (C); and

12 (E) by inserting after subparagraph (A)

13 the following new subparagraph:

14 ‘‘(B) wage and unemployment compensa15 tion information contained in the records of

16 such agency shall be furnished to the Secretary

17 of Health and Human Services (in accordance

18 with regulations promulgated by such Sec19 retary) as necessary for the purposes of the Na20 tional Directory of New Hires established under

21 section 453(i) of the Social Security Act, and’’.

22 (3) TO STATE GRANT PROGRAM UNDER TITLE

23 III OF THE SOCIAL SECURITY ACT.—Section 303(a)

24 (42 U.S.C. 503(a)) is amended—
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1 (A) by striking ‘‘and’’ at the end of para2 graph (8);

3 (B) by striking ‘‘and’’ at the end of para4 graph (9);

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

6 paragraph (10) and inserting ‘‘; and’’; and

7 (D) by adding after paragraph (10) the

8 following:

9 ‘‘(11) The making of quarterly electronic re10 ports, at such dates, in such format, and containing

11 such information, as required by the Secretary of

12 Health and Human Services under section 453(i)(3),

13 and compliance with such provisions as such Sec14 retary may find necessary to ensure the correctness

15 and verification of such reports.’’.

16 SEC. 717. COLLECTION AND USE OF SOCIAL SECURITY

17 NUMBERS FOR USE IN CHILD SUPPORT EN18 FORCEMENT.

19 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

20 U.S.C. 666(a)), as amended by section 715 of this Act,

21 is amended by adding at the end the following:

22 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM23 BERS IN CERTAIN FAMILY MATTERS.—Procedures

24 requiring that the social security number of—
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1 ‘‘(A) any applicant for a professional li2 cense, commercial driver’s license, occupational

3 license, or marriage license be recorded on the

4 application;

5 ‘‘(B) any individual who is subject to a di6 vorce decree, support order, or paternity deter7 mination or acknowledgment be placed in the

8 records relating to the matter; and

9 ‘‘(C) any individual who has died be placed

10 in the records relating to the death and be re11 corded on the death certificate.’’.

12 (b) CONFORMING AMENDMENTS.—Section

13 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

14 section 321(a)(9) of the Social Security Independence and

15 Program Improvements Act of 1994, is amended—

16 (1) in clause (i), by striking ‘‘may require’’ and

17 inserting ‘‘shall require’’;

18 (2) in clause (ii), by inserting after the 1st sen19 tence the following: ‘‘In the administration of any

20 law involving the issuance of a marriage certificate

21 or license, each State shall require each party named

22 in the certificate or license to furnish to the State

23 (or political subdivision thereof) or any State agency

24 having administrative responsibility for the law in25 volved, the social security number of the party.’’;
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1 (3) in clause (vi), by striking ‘‘may’’ and insert2 ing ‘‘shall’’; and

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

4 ‘‘(x) An agency of a State (or a politi5 cal subdivision thereof) charged with the

6 administration of any law concerning the

7 issuance or renewal of a license, certificate,

8 permit, or other authorization to engage in

9 a profession, an occupation, or a commer10 cial activity shall require all applicants for

11 issuance or renewal of the license, certifi12 cate, permit, or other authorization to pro13 vide the applicant’s social security number

14 to the agency for the purpose of admin15 istering such laws, and for the purpose of

16 responding to requests for information

17 from an agency operating pursuant to part

18 D of title IV.

19 ‘‘(xi) All divorce decrees, support or20 ders, and paternity determinations issued,

21 and all paternity acknowledgments made,

22 in each State shall include the social secu23 rity number of each party to the decree,

24 order, determination, or acknowledgement

25 in the records relating to the matter.’’.
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1 Subtitle C—Streamlining and

2 Uniformity of Procedures

3 SEC. 721. ADOPTION OF UNIFORM STATE LAWS.

4 Section 466 (42 U.S.C. 666) is amended by adding

5 at the end the following:

6 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

7 ACT.—

8 ‘‘(1) ENACTMENT AND USE.—In order to sat9 isfy section 454(20)(A) on or after January 1, 1997,

10 each State must have in effect the Uniform Inter11 state Family Support Act, as approved by the Na12 tional Conference of Commissioners on Uniform

13 State Laws in August 1992 (with the modifications

14 and additions specified in this subsection), and the

15 procedures required to implement such Act.

16 ‘‘(2) EXPANDED APPLICATION.—The State law

17 enacted pursuant to paragraph (1) shall be applied

18 to any case involving an order which is established

19 or modified in a State and which is sought to be

20 modified or enforced in another State.

21 ‘‘(3) JURISDICTION TO MODIFY ORDERS.—The

22 State law enacted pursuant to paragraph (1) of this

23 subsection shall contain the following provision in

24 lieu of section 611(a)(1) of the Uniform Interstate

25 Family Support Act:
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1 ‘‘ ‘(1) the following requirements are met:

2 ‘‘ ‘(i) the child, the individual obligee, and

3 the obligor—

4 ‘‘ ‘(I) do not reside in the issuing

5 State; and

6 ‘‘ ‘(II) either reside in this State or

7 are subject to the jurisdiction of this State

8 pursuant to section 201; and

9 ‘‘ ‘(ii) (in any case where another State is

10 exercising or seeks to exercise jurisdiction to

11 modify the order) the conditions of section 204

12 are met to the same extent as required for pro13 ceedings to establish orders; or’.

14 ‘‘(4) SERVICE OF PROCESS.—The State law en15 acted pursuant to paragraph (1) shall provide that,

16 in any proceeding subject to the law, process may be

17 served (and proved) upon persons in the State by

18 any means acceptable in any State which is the initi19 ating or responding State in the proceeding.’’.

20 SEC. 722. IMPROVEMENTS TO FULL FAITH AND CREDIT

21 FOR CHILD SUPPORT ORDERS.

22 Section 1738B of title 28, United States Code, is

23 amended—

24 (1) in subsection (a)(2), by striking ‘‘subsection

25 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;
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1 (2) in subsection (b), by inserting after the 2nd

2 undesignated paragraph the following:

3 ‘‘ ‘child’s home State’ means the State in which

4 a child lived with a parent or a person acting as par5 ent for at least six consecutive months immediately

6 preceding the time of filing of a petition or com7 parable pleading for support and, if a child is less

8 than six months old, the State in which the child

9 lived from birth with any of them. A period of tem10 porary absence of any of them is counted as part of

11 the six-month period.’’;

12 (3) in subsection (c), by inserting ‘‘by a court

13 of a State’’ before ‘‘is made’’;

14 (4) in subsection (c)(1), by inserting ‘‘and sub15 sections (e), (f), and (g)’’ after ‘‘located’’;

16 (5) in subsection (d)—

17 (A) by inserting ‘‘individual’’ before ‘‘con18 testant’’; and

19 (B) by striking ‘‘subsection (e)’’ and in20 serting ‘‘subsections (e) and (f)’’;

21 (6) in subsection (e), by striking ‘‘make a modi22 fication of a child support order with respect to a

23 child that is made’’ and inserting ‘‘modify a child

24 support order issued’’;
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1 (7) in subsection (e)(1), by inserting ‘‘pursuant

2 to subsection (i)’’ before the semicolon;

3 (8) in subsection (e)(2)—

4 (A) by inserting ‘‘individual’’ before ‘‘con5 testant’’ each place such term appears; and

6 (B) by striking ‘‘to that court’s making the

7 modification and assuming’’ and inserting ‘‘with

8 the State of continuing, exclusive jurisdiction

9 for a court of another State to modify the order

10 and assume’’;

11 (9) by redesignating subsections (f) and (g) as

12 subsections (g) and (h), respectively;

13 (10) by inserting after subsection (e) the follow14 ing:

15 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

16 If one or more child support orders have been issued in

17 this or another State with regard to an obligor and a child,

18 a court shall apply the following rules in determining

19 which order to recognize for purposes of continuing, exclu20 sive jurisdiction and enforcement:

21 ‘‘(1) If only one court has issued a child sup22 port order, the order of that court must be recog23 nized.

24 ‘‘(2) If two or more courts have issued child

25 support orders for the same obligor and child, and
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1 only one of the courts would have continuing, exclu2 sive jurisdiction under this section, the order of that

3 court must be recognized.

4 ‘‘(3) If two or more courts have issued child

5 support orders for the same obligor and child, and

6 only one of the courts would have continuing, exclu7 sive jurisdiction under this section, an order issued

8 by a court in the current home State of the child

9 must be recognized, but if an order has not been is10 sued in the current home State of the child, the

11 order most recently issued must be recognized.

12 ‘‘(4) If two or more courts have issued child

13 support orders for the same obligor and child, and

14 none of the courts would have continuing, exclusive

15 jurisdiction under this section, a court may issue a

16 child support order, which must be recognized.

17 ‘‘(5) The court that has issued an order recog18 nized under this subsection is the court having con19 tinuing, exclusive jurisdiction.’’;

20 (11) in subsection (g) (as so redesignated)—

21 (A) by striking ‘‘PRIOR’’ and inserting

22 ‘‘MODIFIED’’; and

23 (B) by striking ‘‘subsection (e)’’ and in24 serting ‘‘subsections (e) and (f)’’;

25 (12) in subsection (h) (as so redesignated)—
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1 (A) in paragraph (2), by inserting ‘‘includ2 ing the duration of current payments and other

3 obligations of support’’ before the comma; and

4 (B) in paragraph (3), by inserting ‘‘arrears

5 under’’ after ‘‘enforce’’; and

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

7 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

8 no individual contestant or child residing in the issuing

9 State, the party or support enforcement agency seeking

10 to modify, or to modify and enforce, a child support order

11 issued in another State shall register that order in a State

12 with jurisdiction over the nonmovant for the purpose of

13 modification.’’.

14 SEC. 723. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

15 CASES.

16 Section 466(a) (42 U.S.C. 666(a)), as amended by

17 sections 715 and 717(a) of this Act, is amended by adding

18 at the end the following:

19 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

20 INTERSTATE CASES.—Procedures under which—

21 ‘‘(A)(i) the State shall respond within 5

22 business days to a request made by another

23 State to enforce a support order; and
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1 ‘‘(ii) the term ‘business day’ means a day

2 on which State offices are open for regular

3 business;

4 ‘‘(B) the State may, by electronic or other

5 means, transmit to another State a request for

6 assistance in a case involving the enforcement

7 of a support order, which request—

8 ‘‘(i) shall include such information as

9 will enable the State to which the request

10 is transmitted to compare the information

11 about the case to the information in the

12 data bases of the State; and

13 ‘‘(ii) shall constitute a certification by

14 the requesting State—

15 ‘‘(I) of the amount of support

16 under the order the payment of which

17 is in arrears; and

18 ‘‘(II) that the requesting State

19 has complied with all procedural due

20 process requirements applicable to the

21 case;

22 ‘‘(C) if the State provides assistance to an23 other State pursuant to this paragraph with re24 spect to a case, neither State shall consider the
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1 case to be transferred to the caseload of such

2 other State; and

3 ‘‘(D) the State shall maintain records of—

4 ‘‘(i) the number of such requests for

5 assistance received by the State;

6 ‘‘(ii) the number of cases for which

7 the State collected support in response to

8 such a request; and

9 ‘‘(iii) the amount of such collected

10 support.’’.

11 SEC. 724. USE OF FORMS IN INTERSTATE ENFORCEMENT.

12 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

13 652(a)) is amended—

14 (1) by striking ‘‘and’’ at the end of parargraph

15 (9);

16 (2) by striking the period at the end of para17 graph (10) and inserting ‘‘; and’’; and

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

19 ‘‘(11) not later than June 30, 1996, promulgate

20 forms to be used by States in interstate cases for—

21 ‘‘(A) collection of child support through in22 come withholding;

23 ‘‘(B) imposition of liens; and

24 ‘‘(C) administrative subpoenas.’’.
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1 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

2 654(9)) is amended—

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (C);

5 (2) by inserting ‘‘and’’ at the end of subpara6 graph (D); and

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

8 ‘‘(E) no later than October 1, 1996, in

9 using the forms promulgated pursuant to sec10 tion 452(a)(11) for income withholding, imposi11 tion of liens, and issuance of administrative

12 subpoenas in interstate child support cases;’’.

13 SEC. 725. STATE LAWS PROVIDING EXPEDITED PROCE14 DURES.

15 (a) STATE LAW REQUIREMENTS.—Section 466 (42

16 U.S.C. 666), as amended by section 714 of this Act, is

17 amended—

18 (1) in subsection (a)(2), by strking the 1st sen19 tence and inserting the following: ‘‘Expedited admin20 istrative and judicial procedures (including the pro21 cedures specified in subsection (c)) for establishing

22 paternity and for establishing, modifying, and en23 forcing support obligations.’’; and

24 (2) by inserting after subsection (b) the follow25 ing:
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1 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

2 specified in this subsection are the following:

3 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN4 CY.—Procedures which give the State agency the au5 thority to take the following actions relating to es6 tablishment or enforcement of support orders, with7 out the necessity of obtaining an order from any

8 other judicial or administrative tribunal (but subject

9 to due process safeguards, including (as appropriate)

10 requirements for notice, opportunity to contest the

11 action, and opportunity for an appeal on the record

12 to an independent administrative or judicial tribu13 nal), and to recognize and enforce the authority of

14 State agencies of other States) to take the following

15 actions:

16 ‘‘(A) GENETIC TESTING.—To order genetic

17 testing for the purpose of paternity establish18 ment as provided in section 466(a)(5).

19 ‘‘(B) DEFAULT ORDERS.—To enter a de20 fault order, upon a showing of service of proc21 ess and any additional showing required by

22 State law—

23 ‘‘(i) establishing paternity, in the case

24 of a putative father who refuses to submit

25 to genetic testing; and
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1 ‘‘(ii) establishing or modifying a sup2 port obligation, in the case of a parent (or

3 other obligor or obligee) who fails to re4 spond to notice to appear at a proceeding

5 for such purpose.

6 ‘‘(C) SUBPOENAS.—To subpoena any fi7 nancial or other information needed to estab8 lish, modify, or enforce a support order, and to

9 impose penalties for failure to respond to such

10 a subpoena.

11 ‘‘(D) ACCESS TO PERSONAL AND FINAN12 CIAL INFORMATION.—To obtain access, subject

13 to safeguards on privacy and information secu14 rity, to the records of all other State and local

15 government agencies (including law enforcement

16 and corrections records), including automated

17 access to records maintained in automated data

18 bases.

19 ‘‘(E) CHANGE IN PAYEE.—In cases where

20 support is subject to an assignment in order to

21 comply with a requirement imposed pursuant to

22 part A or section 1912, or to a requirement to

23 pay through the State disbursement unit estab24 lished pursuant to section 454B, upon provid25 ing notice to obligor and obligee, to direct the
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1 obligor or other payor to change the payee to

2 the appropriate government entity.

3 ‘‘(F) INCOME WITHHOLDING.—To order

4 income withholding in accordance with sub5 sections (a)(1) and (b) of section 466.

6 ‘‘(G) SECURING ASSETS.—In cases in

7 which there is a support arrearage, to secure

8 assets to satisfy the arrearage by—

9 ‘‘(i) intercepting or seizing periodic or

10 lump sum payments from—

11 ‘‘(I) a State or local agency (in12 cluding unemployment compensation,

13 workers’ compensation, and other ben14 efits); and

15 ‘‘(II) judgments, settlements, and

16 lotteries;

17 ‘‘(ii) attaching and seizing assets of

18 the obligor held in financial institutions;

19 and

20 ‘‘(iii) attaching public and private re21 tirement funds.

22 ‘‘(H) INCREASE MONTHLY PAYMENTS.—

23 For the purpose of securing overdue support, to

24 increase the amount of monthly support pay25 ments to include amounts for arrearages (sub-
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1 ject to such conditions or limitations as the

2 State may provide).

3 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

4 The expedited procedures required under subsection

5 (a)(2) shall include the following rules and author6 ity, applicable with respect to all proceedings to es7 tablish paternity or to establish, modify, or enforce

8 support orders:

9 ‘‘(A) LOCATOR INFORMATION; PRESUMP10 TIONS CONCERNING NOTICE.—Procedures

11 under which—

12 ‘‘(i) each party to any paternity or

13 child support proceeding is required (sub14 ject to privacy safeguards) to file with the

15 tribunal and the State case registry upon

16 entry of an order, and to update as appro17 priate, information on location and identity

18 of the party (including social security num19 ber, residential and mailing addresses, tele20 phone number, driver’s license number,

21 and name, address, and name and tele22 phone number of employer); and

23 ‘‘(ii) in any subsequent child support

24 enforcement action between the parties,

25 upon sufficient showing that diligent effort
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1 has been made to ascertain the location of

2 such a party, the tribunal may deem State

3 due process requirements for notice and

4 service of process to be met with respect to

5 the party, upon delivery of written notice

6 to the most recent residential or employer

7 address filed with the tribunal pursuant to

8 clause (i).

9 ‘‘(B) STATEWIDE JURISDICTION.—Proce10 dures under which—

11 ‘‘(i) the State agency and any admin12 istrative or judicial tribunal with authority

13 to hear child support and paternity cases

14 exerts statewide jurisdiction over the par15 ties; and

16 ‘‘(ii) in a State in which orders are is17 sued by courts or administrative tribunals,

18 a case may be transferred between admin19 istrative areas in the State without need

20 for any additional filing by the petitioner,

21 or service of process upon the respondent,

22 to retain jurisdiction over the parties.’’.

23 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

24 Section 454A, as added by section 745(a)(2) of this Act
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1 and as amended by sections 711 and 712(c) of this Act,

2 is amended by adding at the end the following:

3 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

4 The automated system required by this section shall be

5 used, to the maximum extent feasible, to implement the

6 expedited administrative procedures required by section

7 466(c).’’.

8 Subtitle D—Paternity

9 Establishment

10 SEC. 731. STATE LAWS CONCERNING PATERNITY ESTAB11 LISHMENT.

12 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

13 U.S.C. 666(a)(5)) is amended to read as follows:

14 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES15 TABLISHMENT.—

16 ‘‘(A) ESTABLISHMENT PROCESS AVAIL17 ABLE FROM BIRTH UNTIL AGE 18.—

18 ‘‘(i) Procedures which permit the es19 tablishment of the paternity of a child at

20 any time before the child attains 18 years

21 of age.

22 ‘‘(ii) As of August 16, 1984, clause (i)

23 shall also apply to a child for whom pater24 nity has not been established or for whom

25 a paternity action was brought but dis-
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1 missed becasue a statute of limitations of

2 less than 18 years was then in effect in the

3 State.

4 ‘‘(B) PROCEDURES CONCERNING GENETIC

5 TESTING.—

6 ‘‘(i) GENETIC TESTING REQUIRED IN

7 CERTAIN CONTESTED CASES.—Procedures

8 under which the State is required, in a

9 contested paternity case, to require the

10 child and all other parties (other than indi11 viduals found under section 454(28) to

12 have good cause for refusing to cooperate)

13 to submit to genetic tests upon the request

14 of any such party if the request is sup15 ported by a sworn statement by the

16 party—

17 ‘‘(I) alleging paternity, and set18 ting forth facts establishing a reason19 able possibility of the requisite sexual

20 contact between the parties; or

21 ‘‘(II) denying paternity, and set22 ting forth facts establishing a reason23 able possibility of the nonexistence of

24 sexual contact between the parties.
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1 ‘‘(ii) OTHER REQUIREMENTS.—Proce2 dures which require the State agency, in

3 any case in which the agency orders ge4 netic testing—

5 ‘‘(I) to pay costs of such tests,

6 subject to recoupment (where the

7 State so elects) from the alleged fa8 ther if paternity is established; and

9 ‘‘(II) to obtain additional testing

10 in any case where an original test re11 sult is contested, upon request and

12 advance payment by the contestant.

13 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL14 EDGMENT.—

15 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce16 dures for a simple civil process for volun17 tarily acknowledging paternity under which

18 the State must provide that, before a

19 mother and a putative father can sign an

20 acknowledgment of paternity, the mother

21 and the putative father must be given no22 tice, orally, in writing, and in a language

23 that each can understand, of the alter24 natives to, the legal consequences of, and

25 the rights (including, if 1 parent is a
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1 minor, any rights afforded due to minority

2 status) and responsibilities that arise from,

3 signing the acknowledgment.

4 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

5 Such procedures must include a hospital6 based program for the voluntary acknowl7 edgment of paternity focusing on the pe8 riod immediately before or after the birth

9 of a child.

10 ‘‘(iii) PATERNITY ESTABLISHMENT

11 SERVICES.—

12 ‘‘(I) STATE-OFFERED SERV13 ICES.—Such procedures must require

14 the State agency responsible for main15 taining birth records to offer vol16 untary paternity establishment serv17 ices.

18 ‘‘(II) REGULATIONS.—

19 ‘‘(aa) SERVICES OFFERED

20 BY HOSPITALS AND BIRTH

21 RECORD AGENCIES.—The Sec22 retary shall prescribe regulations

23 governing voluntary paternity es24 tablishment services offered by
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1 hospitals and birth record agen2 cies.

3 ‘‘(bb) SERVICES OFFERED

4 BY OTHER ENTITIES.—The Sec5 retary shall prescribe regulations

6 specifying the types of other enti7 ties that may offer voluntary pa8 ternity establishment services,

9 and governing the provision of

10 such services, which shall include

11 a requirement that such an entity

12 must use the same notice provi13 sions used by, use the same ma14 terials used by, provide the per15 sonnel providing such services

16 with the same training provided

17 by, and evaluate the provision of

18 such services in the same manner

19 as the provision of such services

20 is evaluated by, voluntary pater21 nity establishment programs of

22 hospitals and birth record agen23 cies.

24 ‘‘(iv) USE OF FEDERAL PATERNITY

25 ACKNOWLEDGMENT AFFIDAVIT.—Such
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1 procedures must require the State and

2 those required to establish paternity to use

3 only the affidavit developed under section

4 452(a)(7) for the voluntary acknowledg5 ment of paternity, and to give full faith

6 and credit to such an affidavit signed in

7 any other State.

8 ‘‘(D) STATUS OF SIGNED PATERNITY AC9 KNOWLEDGMENT.—

10 ‘‘(i) LEGAL FINDING OF PATER11 NITY.—Procedures under which a signed

12 acknowledgment of paternity is considered

13 a legal finding of paternity, subject to the

14 right of any signatory to rescind the ac15 knowledgment within 60 days.

16 ‘‘(ii) CONTEST.—Procedures under

17 which, after the 60-day period referred to

18 in clause (i), a signed acknowledgment of

19 paternity may be challenged in court only

20 on the basis of fraud, duress, or material

21 mistake of fact, with the burden of proof

22 upon the challenger, and under which the

23 legal responsibilities (including child sup24 port obligations) of any signatory arising

25 from the acknowledgment may not be sus-
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1 pended during the challenge, except for

2 good cause shown.

3 ‘‘(iii) RESCISSION.—Procedures under

4 which, after the 60-day period referred to

5 in clause (i), a minor who has signed an

6 acknowledgment of paternity other than in

7 the presence of a parent or court-appointed

8 guardian ad litem may rescind the ac9 knowledgment in a judicial or administra10 tive proceeding, until the earlier of—

11 ‘‘(I) attaining the age of major12 ity; or

13 ‘‘(II) the date of the first judicial

14 or administrative proceeding brought

15 (after the signing) to establish a child

16 support obligation, visitation rights, or

17 custody rights with respect to the

18 child whose paternity is the subject of

19 the acknowledgment, and at which the

20 minor is represented by a parent or

21 guardian ad litem, or an attorney.

22 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI23 CATION PROCEEDINGS.—Procedures under

24 which judicial or administrative proceedings are
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1 not required or permitted to ratify an unchal2 lenged acknowledgment of paternity.

3 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

4 RESULTS.—Procedures—

5 ‘‘(i) requiring the admission into evi6 dence, for purposes of establishing pater7 nity, of the results of any genetic test that

8 is—

9 ‘‘(I) of a type generally acknowl10 edged as reliable by accreditation bod11 ies designated by the Secretary; and

12 ‘‘(II) performed by a laboratory

13 approved by such an accreditation

14 body;

15 ‘‘(ii) requiring an objection to genetic

16 testing results to be made in writing not

17 later than a specified number of days be18 fore any hearing at which the results may

19 be introduced into evidence (or, at State

20 option, not later than a specified number

21 of days after receipt of the results); and

22 ‘‘(iii) making the test results admissi23 ble as evidence of paternity without the

24 need for foundation testimony or other
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1 proof of authenticity or accuracy, unless

2 objection is made.

3 ‘‘(G) PRESUMPTION OF PATERNITY IN

4 CERTAIN CASES.—Procedures which create a re5 buttable or, at the option of the State, conclu6 sive presumption of paternity upon genetic test7 ing results indicating a threshold probability

8 that the alleged father is the father of the child.

9 ‘‘(H) DEFAULT ORDERS.—Procedures re10 quiring a default order to be entered in a pater11 nity case upon a showing of service of process

12 on the defendant and any additional showing

13 required by State law.

14 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce15 dures providing that the parties to an action to

16 establish paternity are not entitled to a trial by

17 jury.

18 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

19 ON PROBABLE PATERNITY IN CONTESTED

20 CASES.—Procedures which require that a tem21 porary order be issued, upon motion by a party,

22 requiring the provision of child support pending

23 an administrative or judicial determination of

24 parentage, where there is clear and convincing
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1 evidence of paternity (on the basis of genetic

2 tests or other evidence).

3 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

4 PATERNITY ESTABLISHMENT COSTS.—Proce5 dures under which bills for pregnancy, child6 birth, and genetic testing are admissible as evi7 dence without requiring third-party foundation

8 testimony, and shall constitute prima facie evi9 dence of amounts incurred for such services or

10 for testing on behalf of the child.

11 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

12 Procedures ensuring that the putative father

13 has a reasonable opportunity to initiate a pater14 nity action.

15 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

16 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

17 RECORDS.—Procedures under which voluntary

18 acknowledgments and adjudications of paternity

19 by judicial or administrative processes are filed

20 with the State registry of birth records for com21 parison with information in the State case reg22 istry.’’.

23 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI24 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

25 amended by inserting ‘‘, and develop an affidavit to be
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1 used for the voluntary acknowledgment of paternity which

2 shall include the social security number of each parent’’

3 before the semicolon.

4 (c) TECHNICAL AMENDMENT.—Section 468 (42

5 U.S.C. 668) is amended by striking ‘‘a simple civil process

6 for voluntarily acknowledging paternity and’’.

7 SEC. 732. OUTREACH FOR VOLUNTARY PATERNITY ESTAB8 LISHMENT.

9 Section 454(23) (42 U.S.C. 654(23)) is amended by

10 inserting ‘‘and will publicize the availability and encourage

11 the use of procedures for voluntary establishment of pater12 nity and child support by means the State deems appro13 priate’’ before the semicolon.

14 SEC. 733. COOPERATION BY APPLICANTS FOR AND RECIPI15 ENTS OF TEMPORARY FAMILY ASSISTANCE.

16 Section 454 (42 U.S.C. 654), as amended by sections

17 703(a), 712(a), and 713(a) of this Act, is amended—

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

19 (26);

20 (2) by striking the period at the end of para21 graph (27) and inserting ‘‘; and’’; and

22 (3) by inserting after paragraph (27) the fol23 lowing:

24 ‘‘(28) provide that the State agency responsible

25 for administering the State plan—
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1 ‘‘(A) shall require each individual who has

2 applied for or is receiving assistance under the

3 State program funded under part A to cooper4 ate with the State in establishing the paternity

5 of, and in establishing, modifying, or enforcing

6 a support order for, any child of the individual

7 by providing the State agency with the name of,

8 and such other information as the State agency

9 may require with respect to, the father of the

10 child, subject to such good cause and other ex11 ceptions as the State may establish; and

12 ‘‘(B) may require the individual and the

13 child to submit to genetic tests.’’.

14 Subtitle E—Program

15 Administration and Funding

16 SEC. 741. FEDERAL MATCHING PAYMENTS.

17 (a) INCREASED BASE MATCHING RATE.—Section

18 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

19 follows:

20 ‘‘(2) The percent specified in this paragraph for any

21 quarter is 66 percent.’’.

22 (b) MAINTENANCE OF EFFORT.—Section 455 (42

23 U.S.C. 655) is amended—
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1 (1) in subsection (a)(1), in the matter preced2 ing subparagraph (A), by striking ‘‘From’’ and in3 serting ‘‘Subject to subsection (c), from’’; and

4 (2) by inserting after subsection (b) the follow5 ing:

6 ‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding

7 subsection (a), the total expenditures under the State plan

8 approved under this part for fiscal year 1997 and each

9 succeeding fiscal year, reduced by the percentage specified

10 in paragraph (2) for the fiscal year shall not be less than

11 such total expenditures for fiscal year 1996, reduced by

12 66 percent.’’.

13 SEC. 742. PERFORMANCE-BASED INCENTIVES AND PEN14 ALTIES.

15 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH16 ING RATE.—Section 458 (42 U.S.C. 658) is amended to

17 read as follows:

18 ‘‘SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

19 ‘‘(a) INCENTIVE ADJUSTMENTS.—

20 ‘‘(1) IN GENERAL.—Beginning with fiscal year

21 1999, the Secretary shall increase the percent speci22 fied in section 455(a)(2) that applies to payments to

23 a State under section 455(a)(1)(A) for each quarter

24 in a fiscal year by a factor reflecting the sum of the

25 applicable incentive adjustments (if any) determined
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1 in accordance with regulations under this section

2 with respect to the paternity establishment percent3 age of the State for the immediately preceding fiscal

4 year and with respect to overall performance of the

5 State in child support enforcement during such pre6 ceding fiscal year.

7 ‘‘(2) STANDARDS.—

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

9 specify in regulations—

10 ‘‘(i) the levels of accomplishment, and

11 rates of improvement as alternatives to

12 such levels, which a State must attain to

13 qualify for an incentive adjustment under

14 this section; and

15 ‘‘(ii) the amounts of incentive adjust16 ment that shall be awarded to a State that

17 achieves specified accomplishment or im18 provement levels, which amounts shall be

19 graduated, ranging up to—

20 ‘‘(I) 12 percentage points, in con21 nection with paternity establishment;

22 and

23 ‘‘(II) 12 percentage points, in

24 connection with overall performance in

25 child support enforcement.
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1 ‘‘(B) LIMITATION.—In setting performance

2 standards pursuant to subparagraph (A)(i) and

3 adjustment amounts pursuant to subparagraph

4 (A)(ii), the Secretary shall ensure that the ag5 gregate number of percentage point increases as

6 incentive adjustments to all States do not ex7 ceed such aggregate increases as assumed by

8 the Secretary in estimates of the cost of this

9 section as of June 1994, unless the aggregate

10 performance of all States exceeds the projected

11 aggregate performance of all States in such cost

12 estimates.

13 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST14 MENT.—The Secretary shall determine the amount

15 (if any) of the incentive adjustment due each State

16 on the basis of the data submitted by the State pur17 suant to section 454(15)(B) concerning the levels of

18 accomplishment (and rates of improvement) with re19 spect to performance indicators specified by the Sec20 retary pursuant to this section.

21 ‘‘(4) RECYCLING OF INCENTIVE ADJUST22 MENT.—A State to which funds are paid by the

23 Federal Government as a result of an incentive ad24 justment under this section shall expend the funds
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1 in the State program under this part within 2 years

2 after the date of the payment.

3 ‘‘(b) DEFINITIONS.—As used in this section:

4 ‘‘(1) PATERNITY ESTABLISHMENT PERCENT5 AGE.—The term ‘paternity establishment percent6 age’ means, with respect to a State and a fiscal

7 year—

8 ‘‘(A) the total number of children in the

9 State who were born out of wedlock, who have

10 not attained 1 year of age and for whom pater11 nity is established or acknowledged during the

12 fiscal year; divided by

13 ‘‘(B) the total number of children born out

14 of wedlock in the State during the fiscal year.

15 ‘‘(2) OVERALL PERFORMANCE IN CHILD SUP16 PORT ENFORCEMENT.—The term ‘overall perform17 ance in child support enforcement’ means a measure

18 or measures of the effectiveness of the State agency

19 in a fiscal year which takes into account factors in20 cluding—

21 ‘‘(A) the percentage of cases requiring a

22 support order in which such an order was es23 tablished;

24 ‘‘(B) the percentage of cases in which child

25 support is being paid;
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1 ‘‘(C) the ratio of child support collected to

2 child support due; and

3 ‘‘(D) the cost-effectiveness of the State

4 program, as determined in accordance with

5 standards established by the Secretary in regu6 lations (after consultation with the States).’’.

7 (b) CONFORMING AMENDMENTS.—Section 454(22)

8 (42 U.S.C. 654(22)) is amended—

9 (1) by striking ‘‘incentive payments’’ the 1st

10 place such term appears and inserting ‘‘incentive ad11 justments’’; and

12 (2) by striking ‘‘any such incentive payments

13 made to the State for such period’’ and inserting

14 ‘‘any increases in Federal payments to the State re15 sulting from such incentive adjustments’’.

16 (c) CALCULATION OF IV–D PATERNITY ESTABLISH17 MENT PERCENTAGE.—

18 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

19 amended—

20 (A) in the matter preceding subparagraph

21 (A) by inserting ‘‘its overall performance in

22 child support enforcement is satisfactory (as de23 fined in section 458(b) and regulations of the

24 Secretary), and’’ after ‘‘1994,’’; and
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1 (B) in each of subparagraphs (A) and (B),

2 by striking ‘‘75’’ and inserting ‘‘90’’.

3 (2) Section 452(g)(2)(A) (42 U.S.C.

4 652(g)(2)(A)) is amended in the matter preceding

5 clause (i)—

6 (A) by striking ‘‘paternity establishment

7 percentage’’ and inserting ‘‘IV–D paternity es8 tablishment percentage’’; and

9 (B) by striking ‘‘(or all States, as the case

10 may be)’’.

11 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

12 amended—

13 (A) by striking subparagraph (A) and re14 designating subparagraphs (B) and (C) as sub15 paragraphs (A) and (B), respectively;

16 (B) in subparagraph (A) (as so redesig17 nated), by striking ‘‘the percentage of children

18 born out-of-wedlock in a State’’ and inserting

19 ‘‘the percentage of children in a State who are

20 born out of wedlock or for whom support has

21 not been established’’; and

22 (C) in subparagraph (B) (as so redesig23 nated)—
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1 (i) by inserting ‘‘and overall perform2 ance in child support enforcement’’ after

3 ‘‘paternity establishment percentages’’; and

4 (ii) by inserting ‘‘and securing sup5 port’’ before the period.

6 (d) EFFECTIVE DATES.—

7 (1) INCENTIVE ADJUSTMENTS.—(A) The

8 amendments made by subsections (a) and (b) shall

9 become effective on October 1, 1997, except to the

10 extent provided in subparagraph (B).

11 (B) Section 458 of the Social Security Act, as

12 in effect prior to the enactment of this section, shall

13 be effective for purposes of incentive payments to

14 States for fiscal years before fiscal year 1999.

15 (2) PENALTY REDUCTIONS.—The amendments

16 made by subsection (c) shall become effective with

17 respect to calendar quarters beginning on and after

18 the date of the enactment of this Act.

19 SEC. 743. FEDERAL AND STATE REVIEWS AND AUDITS.

20 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

21 U.S.C. 654) is amended—

22 (1) in paragraph (14), by striking ‘‘(14)’’ and

23 inserting ‘‘(14)(A)’’;

24 (2) by redesignating paragraph (15) as sub25 paragraph (B) of paragraph (14); and
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1 (3) by inserting after paragraph (14) the fol2 lowing:

3 ‘‘(15) provide for—

4 ‘‘(A) a process for annual reviews of and

5 reports to the Secretary on the State program

6 operated under the State plan approved under

7 this part, which shall include such information

8 as may be necessary to measure State compli9 ance with Federal requirements for expedited

10 procedures and timely case processing, using

11 such standards and procedures as are required

12 by the Secretary, under which the State agency

13 will determine the extent to which the program

14 is operated in compliance with this part; and

15 ‘‘(B) a process of extracting from the auto16 mated data processing system required by para17 graph (16) and transmitting to the Secretary

18 data and calculations concerning the levels of

19 accomplishment (and rates of improvement)

20 with respect to applicable performance indica21 tors (including IV–D paternity establishment

22 percentages and overall performance in child

23 support enforcement) to the extent necessary

24 for purposes of sections 452(g) and 458.’’.
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1 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

2 U.S.C. 652(a)(4)) is amended to read as follows:

3 ‘‘(4)(A) review data and calculations transmit4 ted by State agencies pursuant to section

5 454(15)(B) on State program accomplishments with

6 respect to performance indicators for purposes of

7 subsection (g) of this section and section 458;

8 ‘‘(B) review annual reports submitted pursuant

9 to section 454(15)(A) and, as appropriate, provide

10 to the State comments, recommendations for addi11 tional or alternative corrective actions, and technical

12 assistance; and

13 ‘‘(C) conduct audits, in accordance with the

14 government auditing standards of the Comptroller

15 General of the United States—

16 ‘‘(i) at least once every 3 years (or more

17 frequently, in the case of a State which fails to

18 meet the requirements of this part, concerning

19 performance standards and reliability of pro20 gram data) to assess the completeness, reliabil21 ity, and security of the data, and the accuracy

22 of the reporting systems, used in calculating

23 performance indicators under subsection (g) of

24 this section and section 458;
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1 ‘‘(ii) of the adequacy of financial manage2 ment of the State program operated under the

3 State plan approved under this part, including

4 assessments of—

5 ‘‘(I) whether Federal and other funds

6 made available to carry out the State pro7 gram are being appropriately expended,

8 and are properly and fully accounted for;

9 and

10 ‘‘(II) whether collections and disburse11 ments of support payments are carried out

12 correctly and are fully accounted for; and

13 ‘‘(iii) for such other purposes as the Sec14 retary may find necessary;’’.

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

16 this section shall be effective with respect to calendar

17 quarters beginning 12 months or more after the date of

18 the enactment of this section.

19 SEC. 744. REQUIRED REPORTING PROCEDURES.

20 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

21 652(a)(5)) is amended by inserting ‘‘, and establish proce22 dures to be followed by States for collecting and reporting

23 information required to be provided under this part, and

24 establish uniform definitions (including those necessary to

25 enable the measurement of State compliance with the re-
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1 quirements of this part relating to expedited processes and

2 timely case processing) to be applied in following such pro3 cedures’’ before the semicolon.

4 (b) STATE PLAN REQUIREMENT.—Section 454 (42

5 U.S.C. 654), as amended by sections 703(a), 712(a),

6 713(a), and 733 of this Act, is amended—

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

8 (27);

9 (2) by striking the period at the end of para10 graph (28) and inserting ‘‘; and’’; and

11 (3) by adding after paragraph (28) the follow12 ing:

13 ‘‘(29) provide that the State shall use the defi14 nitions established under section 452(a)(5) in col15 lecting and reporting information as required under

16 this part.’’.

17 SEC. 745. AUTOMATED DATA PROCESSING REQUIREMENTS.

18 (a) REVISED REQUIREMENTS.—

19 (1) Section 454(16) (42 U.S.C. 654(16)) is

20 amended—

21 (A) by striking ‘‘, at the option of the

22 State,’’;

23 (B) by inserting ‘‘and operation by the

24 State agency’’ after ‘‘for the establishment’’;
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1 (C) by inserting ‘‘meeting the requirements

2 of section 454A’’ after ‘‘information retrieval

3 system’’;

4 (D) by striking ‘‘in the State and localities

5 thereof, so as (A)’’ and inserting ‘‘so as’’;

6 (E) by striking ‘‘(i)’’; and

7 (F) by striking ‘‘(including’’ and all that

8 follows and inserting a semicolon.

9 (2) Part D of title IV (42 U.S.C. 651–669) is

10 amended by inserting after section 454 the follow11 ing:

12 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

13 ‘‘(a) IN GENERAL.—In order for a State to meet the

14 requirements of this section, the State agency administer15 ing the State program under this part shall have in oper16 ation a single statewide automated data processing and

17 information retrieval system which has the capability to

18 perform the tasks specified in this section with the fre19 quency and in the manner required by or under this part.

20 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys21 tem required by this section shall perform such functions

22 as the Secretary may specify relating to management of

23 the State program under this part, including—
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1 ‘‘(1) controlling and accounting for use of Fed2 eral, State, and local funds in carrying out the pro3 gram; and

4 ‘‘(2) maintaining the data necessary to meet

5 Federal reporting requirements under this part on a

6 timely basis.

7 ‘‘(c) CALCULATION OF PERFORMANCE INDICA8 TORS.—In order to enable the Secretary to determine the

9 incentive and penalty adjustments required by sections

10 452(g) and 458, the State agency shall—

11 ‘‘(1) use the automated system—

12 ‘‘(A) to maintain the requisite data on

13 State performance with respect to paternity es14 tablishment and child support enforcement in

15 the State; and

16 ‘‘(B) to calculate the IV–D paternity es17 tablishment percentage and overall performance

18 in child support enforcement for the State for

19 each fiscal year; and

20 ‘‘(2) have in place systems controls to ensure

21 the completeness, and reliability of, and ready access

22 to, the data described in paragraph (1)(A), and the

23 accuracy of the calculations described in paragraph

24 (1)(B).
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1 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

2 State agency shall have in effect safeguards on the integ3 rity, accuracy, and completeness of, access to, and use of

4 data in the automated system required by this section,

5 which shall include the following (in addition to such other

6 safeguards as the Secretary may specify in regulations):

7 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

8 policies concerning access to data by State agency

9 personnel, and sharing of data with other persons,

10 which—

11 ‘‘(A) permit access to and use of data only

12 to the extent necessary to carry out the State

13 program under this part; and

14 ‘‘(B) specify the data which may be used

15 for particular program purposes, and the per16 sonnel permitted access to such data.

17 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

18 (such as passwords or blocking of fields) to ensure

19 strict adherence to the policies described in para20 graph (1).

21 ‘‘(3) MONITORING OF ACCESS.—Routine mon22 itoring of access to and use of the automated sys23 tem, through methods such as audit trails and feed24 back mechanisms, to guard against and promptly

25 identify unauthorized access or use.
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1 ‘‘(4) TRAINING AND INFORMATION.—Proce2 dures to ensure that all personnel (including State

3 and local agency staff and contractors) who may

4 have access to or be required to use confidential pro5 gram data are informed of applicable requirements

6 and penalties (including those in section 6103 of the

7 Internal Revenue Code of 1986), and are adequately

8 trained in security procedures.

9 ‘‘(5) PENALTIES.—Administrative penalties (up

10 to and including dismissal from employment) for un11 authorized access to, or disclosure or use of, con12 fidential data.’’.

13 (3) REGULATIONS.—The Secretary of Health

14 and Human Services shall prescribe final regulations

15 for implementation of section 454A of the Social Se16 curity Act not later than 2 years after the date of

17 the enactment of this Act.

18 (4) IMPLEMENTATION TIMETABLE.—Section

19 454(24) (42 U.S.C. 654(24)), as amended by sec20 tions 703(a)(2) and 712(a)(1) of this Act, is amend21 ed to read as follows:

22 ‘‘(24) provide that the State will have in effect

23 an automated data processing and information re24 trieval system—
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1 ‘‘(A) by October 1, 1995, which meets all

2 requirements of this part which were enacted on

3 or before the date of enactment of the Family

4 Support Act of 1988; and

5 ‘‘(B) by October 1, 1999, which meets all

6 requirements of this part enacted on or before

7 the date of the enactment of the Personal Re8 sponsibility Act of 1995, except that such dead9 line shall be extended by 1 day for each day (if

10 any) by which the Secretary fails to meet the

11 deadline imposed by section 745(a)(3) of the

12 Personal Responsibility Act of 1995.’’.

13 (b) SPECIAL FEDERAL MATCHING RATE FOR DE14 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

15 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

16 655(a)) is amended—

17 (A) in paragraph (1)(B)—

18 (i) by striking ‘‘90 percent’’ and in19 serting ‘‘the percent specified in paragraph

20 (3)’’;

21 (ii) by striking ‘‘so much of’’; and

22 (iii) by striking ‘‘which the Secretary’’

23 and all that follows and inserting ‘‘, and’’;

24 and

25 (B) by adding at the end the following:
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1 ‘‘(3)(A) The Secretary shall pay to each State, for

2 each quarter in fiscal year 1996, 90 percent of so much

3 of the State expenditures described in paragraph (1)(B)

4 as the Secretary finds are for a system meeting the re5 quirements specified in section 454(16).

6 ‘‘(B)(i) The Secretary shall pay to each State, for

7 each quarter in fiscal years 1997 through 2001, the per8 centage specified in clause (ii) of so much of the State

9 expenditures described in paragraph (1)(B) as the Sec10 retary finds are for a system meeting the requirements

11 of sections 454(16) and 454A.

12 ‘‘(ii) The percentage specified in this clause is the

13 greater of—

14 ‘‘(I) 80 percent; or

15 ‘‘(II) the percentage otherwise applicable to

16 Federal payments to the State under subparagraph

17 (A) (as adjusted pursuant to section 458).’’.

18 (2) TEMPORARY LIMITATION ON PAYMENTS

19 UNDER SPECIAL FEDERAL MATCHING RATE.—

20 (A) IN GENERAL.—The Secretary of

21 Health and Human Services may not pay more

22 than $260,000,000 in the aggregate under sec23 tion 455(a)(3) of the Social Security Act for fis24 cal years 1996, 1997, 1998, 1999, and 2000.
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1 (B) ALLOCATION OF LIMITATION AMONG

2 STATES.—The total amount payable to a State

3 under section 455(a)(3) of such Act for fiscal

4 years 1996, 1997, 1998, 1999, and 2000 shall

5 not exceed the limitation determined for the

6 State by the Secretary of Health and Human

7 Services in regulations.

8 (C) ALLOCATION FORMULA.—The regula9 tions referred to in subparagraph (B) shall pre10 scribe a formula for allocating the amount spec11 ified in subparagraph (A) among States with

12 plans approved under part D of title IV of the

13 Social Security Act, which shall take into ac14 count—

15 (i) the relative size of State caseloads

16 under such part; and

17 (ii) the level of automation needed to

18 meet the automated data processing re19 quirements of such part.

20 (c) CONFORMING AMENDMENT.—Section 123(c) of

21 the Family Support Act of 1988 (102 Stat. 2352; Public

22 Law 100–485) is repealed.

23 SEC. 746. TECHNICAL ASSISTANCE.

24 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

25 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE-
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1 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI2 CANCE.—Section 452 (42 U.S.C. 652) is amended by add3 ing at the end the following:

4 ‘‘(j) Out of any money in the Treasury of the United

5 States not otherwise appropriated, there is hereby appro6 priated to the Secretary for each fiscal year an amount

7 equal to 1 percent of the total amount paid to the Federal

8 Government pursuant to section 457(a) during the imme9 diately preceding fiscal year (as determined on the basis

10 of the most recent reliable data available to the Secretary

11 as of the end of the 3rd calendar quarter following the

12 end of such preceding fiscal year), to cover costs incurred

13 by the Secretary for—

14 ‘‘(1) information dissemination and technical

15 assistance to States, training of State and Federal

16 staff, staffing studies, and related activities needed

17 to improve programs under this part (including tech18 nical assistance concerning State automated systems

19 required by this part); and

20 ‘‘(2) research, demonstration, and special

21 projects of regional or national significance relating

22 to the operation of State programs under this

23 part.’’.

24 (b) OPERATION OF FEDERAL PARENT LOCATOR

25 SERVICE.—Section 453 (42 U.S.C. 653), as amended by
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1 section 716(e) of this Act, is amended by adding at the

2 end the following:

3 ‘‘(n) Out of any money in the Treasury of the United

4 States not otherwise appropriated, there is hereby appro5 priated to the Secretary for each fiscal year an amount

6 equal to 2 percent of the total amount paid to the Federal

7 Government pursuant to section 457(a) during the imme8 diately preceding fiscal year (as determined on the basis

9 of the most recent reliable data available to the Secretary

10 as of the end of the 3rd calendar quarter following the

11 end of such preceding fiscal year), to cover costs incurred

12 by the Secretary for operation of the Federal Parent Loca13 tor Service under this section, to the extent such costs are

14 not recovered through user fees.’’.

15 SEC. 747. REPORTS AND DATA COLLECTION BY THE SEC16 RETARY.

17 (a) ANNUAL REPORT TO CONGRESS.—

18 (1) Section 452(a)(10)(A) (42 U.S.C.

19 652(a)(10)(A)) is amended—

20 (A) by striking ‘‘this part;’’ and inserting

21 ‘‘this part, including—’’; and

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

23 ‘‘(i) the total amount of child support

24 payments collected as a result of services
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1 furnished during the fiscal year to individ2 uals receiving services under this part;

3 ‘‘(ii) the cost to the States and to the

4 Federal Government of so furnishing the

5 services; and

6 ‘‘(iii) the number of cases involving

7 families—

8 ‘‘(I) who became ineligible for as9 sistance under State programs funded

10 under part A during a month in the

11 fiscal year; and

12 ‘‘(II) with respect to whom a

13 child support payment was received in

14 the month;’’.

15 (2) Section 452(a)(10)(C) (42 U.S.C.

16 652(a)(10)(C)) is amended—

17 (A) in the matter preceding clause (i)—

18 (i) by striking ‘‘with the data required

19 under each clause being separately stated

20 for cases’’ and inserting ‘‘separately stated

21 for (1) cases’’;

22 (ii) by striking ‘‘cases where the child

23 was formerly receiving’’ and inserting ‘‘or

24 formerly received’’;
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1 (iii) by inserting ‘‘or 1912’’ after

2 ‘‘471(a)(17)’’; and

3 (iv) by inserting ‘‘(2)’’ before ‘‘all

4 other’’;

5 (B) in each of clauses (i) and (ii), by strik6 ing ‘‘, and the total amount of such obliga7 tions’’;

8 (C) in clause (iii), by striking ‘‘described

9 in’’ and all that follows and inserting ‘‘in which

10 support was collected during the fiscal year;’’;

11 (D) by striking clause (iv);

12 (E) by redesignating clause (v) as clause

13 (vii), and inserting after clause (iii) the follow14 ing:

15 ‘‘(iv) the total amount of support col16 lected during such fiscal year and distrib17 uted as current support;

18 ‘‘(v) the total amount of support col19 lected during such fiscal year and distrib20 uted as arrearages;

21 ‘‘(vi) the total amount of support due

22 and unpaid for all fiscal years; and’’.

23 (3) Section 452(a)(10)(G) (42 U.S.C.

24 652(a)(10)(G)) is amended by striking ‘‘on the use

25 of Federal courts and’’.
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1 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

2 is amended by striking all that follows subparagraph

3 (I).

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

5 subsection (a) shall be effective with respect to fiscal year

6 1996 and succeeding fiscal years.

7 Subtitle F—Establishment and

8 Modification of Support Orders

9 SEC. 751. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST10 MENT OF CHILD SUPPORT ORDERS.

11 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend12 ed to read as follows:

13 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

14 ORDERS.—Procedures under which the State shall

15 review and adjust each support order being enforced

16 under this part. Such procedures shall provide the

17 following:

18 ‘‘(A) The State shall review and, as appro19 priate, adjust the support order every 3 years,

20 taking into account the best interests of the

21 child involved.

22 ‘‘(B)(i) The State may elect to review and,

23 if appropriate, adjust an order pursuant to sub24 paragraph (A) by—
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1 ‘‘(I) reviewing and, if appropriate, ad2 justing the order in accordance with the

3 guidelines established pursuant to section

4 467(a) if the amount of the child support

5 award under the order differs from the

6 amount that would be awarded in accord7 ance with the guidelines; or

8 ‘‘(II) applying a cost-of-living adjust9 ment to the order in accordance with a for10 mula developed by the State and permit ei11 ther party to contest the adjustment, with12 in 30 days after the date of the notice of

13 the adjustment, by making a request for

14 review and, if appropriate, adjustment of

15 the order in accordance with the child sup16 port guidelines established pursuant to sec17 tion 467(a).

18 ‘‘(ii) Any adjustment under clause (i) shall

19 be made without a requirement for proof or

20 showing of a change in circumstances.

21 ‘‘(C) The State may use automated meth22 ods (including automated comparisons with

23 wage or State income tax data) to identify or24 ders eligible for review, conduct the review,

25 identify orders eligible for adjustment, apply
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1 the appropriate adjustment to the orders eligi2 ble for adjustment under the threshold estab3 lished by the State.

4 ‘‘(D) The State shall, at the request of ei5 ther parent subject to such an order or of any

6 State child support enforcement agency, review

7 and, if appropriate, adjust the order in accord8 ance with the guidelines established pursuant to

9 section 467(a) based upon a substantial change

10 in the circumstances of either parent.

11 ‘‘(E) The State shall provide notice to the

12 parents subject to such an order informing

13 them of their right to request the State to re14 view and, if appropriate, adjust the order pur15 suant to subparagraph (D). The notice may be

16 included in the order.’’.

17 SEC. 752. FURNISHING CONSUMER REPORTS FOR CERTAIN

18 PURPOSES RELATING TO CHILD SUPPORT.

19 Section 604 of the Fair Credit Reporting Act (15

20 U.S.C. 1681b) is amended by adding at the end the follow21 ing:

22 ‘‘(4) In response to a request by the head of a

23 State or local child support enforcement agency (or

24 a State or local government official authorized by

25 the head of such an agency), if the person making
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1 the request certifies to the consumer reporting agen2 cy that—

3 ‘‘(A) the consumer report is needed for the

4 purpose of establishing an individual’s capacity

5 to make child support payments or determining

6 the appropriate level of such payments;

7 ‘‘(B) the person has provided at least 10

8 days prior notice to the consumer whose report

9 is requested, by certified or registered mail to

10 the last known address of the consumer, that

11 the report will be requested, and

12 ‘‘(C) the consumer report will be kept con13 fidential, will be used solely for a purpose de14 scribed in subparagraph (A), and will not be

15 used in connection with any other civil, admin16 istrative, or criminal proceeding, or for any

17 other purpose.

18 ‘‘(5) To an agency administering a State plan

19 under section 454 of the Social Security Act (42

20 U.S.C. 654) for use to set an initial or modified

21 child support award.’’.
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1 Subtitle G—Enforcement of

2 Support Orders

3 SEC. 761. FEDERAL INCOME TAX REFUND OFFSET.

4 (a) CHANGED ORDER OF REFUND DISTRIBUTION

5 UNDER INTERNAL REVENUE CODE.—

6 (1) Subsection (c) of section 6402 of the Inter7 nal Revenue Code of 1986 is amended by striking

8 the third sentence and inserting the following new

9 sentences: ‘‘A reduction under this subsection shall

10 be after any other reduction allowed by subsection

11 (d) with respect to the Department of Health and

12 Human Services and the Department of Education

13 with respect to a student loan and before any other

14 reduction allowed by law and before such overpay15 ment is credited to the future liability for tax of

16 such person pursuant to subsection (b). A reduction

17 under this subsection shall be assigned to the State

18 with respect to past-due support owed to individuals

19 for periods such individuals were receiving assistance

20 under part A or B of title IV of the Social Security

21 Act only after satisfying all other past-due sup22 port.’’.

23 (2) Paragraph (2) of section 6402(d) of such

24 Code is amended—
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1 (A) by striking ‘‘Any overpayment’’ and in2 serting ‘‘Except in the case of past-due legally

3 enforceable debts owed to the Department of

4 Health and Human Services or to the Depart5 ment of Education with respect to a student

6 loan, any overpayment’’; and

7 (B) by striking ‘‘with respect to past-due

8 support collected pursuant to an assignment

9 under section 402(a)(26) of the Social Security

10 Act’’.

11 (b) ELIMINATION OF DISPARITIES IN TREATMENT

12 OF ASSIGNED AND NON-ASSIGNED ARREARAGES.—

13 (1) Section 464(a) (42 U.S.C. 664(a)) is

14 amended—

15 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

16 OFFSET AUTHORIZED.—’’;

17 (B) in paragraph (1)—

18 (i) in the 1st sentence, by striking

19 ‘‘which has been assigned to such State

20 pursuant to section 402(a)(26) or section

21 471(a)(17)’’; and

22 (ii) in the 2nd sentence, by striking

23 ‘‘in accordance with section 457(b)(4) or

24 (d)(3)’’ and inserting ‘‘as provided in para25 graph (2)’’;
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1 (C) by striking paragraph (2) and insert2 ing the following:

3 ‘‘(2) The State agency shall distribute amounts paid

4 by the Secretary of the Treasury pursuant to paragraph

5 (1)—

6 ‘‘(A) in accordance with section 457(a), in the

7 case of past-due support assigned to a State pursu8 ant to requirements imposed pursuant to section

9 405(a)(8); and

10 ‘‘(B) to or on behalf of the child to whom the

11 support was owed, in the case of past-due support

12 not so assigned.’’; and

13 (D) in paragraph (3)—

14 (i) by striking ‘‘or (2)’’ each place

15 such term appears; and

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

17 ‘‘under paragraph (2)’’ and inserting ‘‘on

18 account of past-due support described in

19 paragraph (2)(B)’’.

20 (2) Section 464(b) (42 U.S.C. 664(b)) is

21 amended—

22 (A) by striking ‘‘(b)(1)’’ and inserting the

23 following:

24 ‘‘(b) REGULATIONS.—’’; and

25 (B) by striking paragraph (2).
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1 (3) Section 464(c) (42 U.S.C. 664(c)) is

2 amended—

3 (A) by striking ‘‘(c)(1) Except as provided

4 in paragraph (2), as’’ and inserting the follow5 ing:

6 ‘‘(c) DEFINITION.—As’’; and

7 (B) by striking paragraphs (2) and (3).

8 SEC. 762. AUTHORITY TO COLLECT SUPPORT FROM FED9 ERAL EMPLOYEES.

10 (a) CONSOLIDATION AND STREAMLINING OF AU11 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

12 read as follows:

13 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

14 WITHHOLDING, GARNISHMENT, AND SIMILAR

15 PROCEEDINGS FOR ENFORCEMENT OF CHILD

16 SUPPORT AND ALIMONY OBLIGATIONS.

17 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not18 withstanding any other provision of law (including section

19 207 of this Act and section 5301 of title 38, United States

20 Code), effective January 1, 1975, moneys (the entitlement

21 to which is based upon remuneration for employment) due

22 from, or payable by, the United States or the District of

23 Columbia (including any agency, subdivision, or instru24 mentality thereof) to any individual, including members

25 of the Armed Forces of the United States, shall be subject,
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1 in like manner and to the same extent as if the United

2 States or the District of Columbia were a private person,

3 to withholding in accordance with State law enacted pur4 suant to subsections (a)(1) and (b) of section 466 and reg5 ulations of the Secretary under such subsections, and to

6 any other legal process brought, by a State agency admin7 istering a program under a State plan approved under this

8 part or by an individual obligee, to enforce the legal obliga9 tion of the individual to provide child support or alimony.

10 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

11 PRIVATE PERSON.—With respect to notice to withhold in12 come pursuant to subsection (a)(1) or (b) of section 466,

13 or any other order or process to enforce support obliga14 tions against an individual (if the order or process con15 tains or is accompanied by sufficient data to permit

16 prompt identification of the individual and the moneys in17 volved), each governmental entity specified in subsection

18 (a) shall be subject to the same requirements as would

19 apply if the entity were a private person, except as other20 wise provided in this section.

21 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

22 OR PROCESS—

23 ‘‘(1) DESIGNATION OF AGENT.—The head of

24 each agency subject to this section shall—
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1 ‘‘(A) designate an agent or agents to re2 ceive orders and accept service of process in

3 matters relating to child support or alimony;

4 and

5 ‘‘(B) annually publish in the Federal Reg6 ister the designation of the agent or agents,

7 identified by title or position, mailing address,

8 and telephone number.

9 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

10 agent designated pursuant to paragraph (1) of this

11 subsection receives notice pursuant to State proce12 dures in effect pursuant to subsection (a)(1) or (b)

13 of section 466, or is effectively served with any

14 order, process, or interrogatory, with respect to an

15 individual’s child support or alimony payment obli16 gations, the agent shall—

17 ‘‘(A) as soon as possible (but not later

18 than 15 days) thereafter, send written notice of

19 the notice or service (together with a copy of

20 the notice or service) to the individual at the

21 duty station or last-known home address of the

22 individual;

23 ‘‘(B) within 30 days (or such longer period

24 as may be prescribed by applicable State law)

25 after receipt of a notice pursuant to such State
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1 procedures, comply with all applicable provi2 sions of section 466; and

3 ‘‘(C) within 30 days (or such longer period

4 as may be prescribed by applicable State law)

5 after effective service of any other such order,

6 process, or interrogatory, respond to the order,

7 process, or interrogatory.

8 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

9 specified in subsection (a) receives notice or is served with

10 process, as provided in this section, concerning amounts

11 owed by an individual to more than 1 person—

12 ‘‘(1) support collection under section 466(b)

13 must be given priority over any other process, as

14 provided in section 466(b)(7);

15 ‘‘(2) allocation of moneys due or payable to an

16 individual among claimants under section 466(b)

17 shall be governed by section 466(b) and the regula18 tions prescribed under such section; and

19 ‘‘(3) such moneys as remain after compliance

20 with paragraphs (1) and (2) shall be available to

21 satisfy any other such processes on a first-come,

22 first-served basis, with any such process being satis23 fied out of such moneys as remain after the satisfac24 tion of all such processes which have been previously

25 served.
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1 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

2 governmental entity that is affected by legal process

3 served for the enforcement of an individual’s child support

4 or alimony payment obligations shall not be required to

5 vary its normal pay and disbursement cycle in order to

6 comply with the legal process.

7 ‘‘(f) RELIEF FROM LIABILITY.—

8 ‘‘(1) Neither the United States, nor the govern9 ment of the District of Columbia, nor any disbursing

10 officer shall be liable with respect to any payment

11 made from moneys due or payable from the United

12 States to any individual pursuant to legal process

13 regular on its face, if the payment is made in ac14 cordance with this section and the regulations issued

15 to carry out this section.

16 ‘‘(2) No Federal employee whose duties include

17 taking actions necessary to comply with the require18 ments of subsection (a) with regard to any individ19 ual shall be subject under any law to any discipli20 nary action or civil or criminal liability or penalty

21 for, or on account of, any disclosure of information

22 made by the employee in connection with the carry23 ing out of such actions.

24 ‘‘(g) REGULATIONS.—Authority to promulgate regu25 lations for the implementation of this section shall, insofar
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1 as this section applies to moneys due from (or payable

2 by)—

3 ‘‘(1) the United States (other than the legisla4 tive or judicial branches of the Federal Government)

5 or the government of the District of Columbia, be

6 vested in the President (or the designee of the Presi7 dent);

8 ‘‘(2) the legislative branch of the Federal Gov9 ernment, be vested jointly in the President pro tem10 pore of the Senate and the Speaker of the House of

11 Representatives (or their designees), and

12 ‘‘(3) the judicial branch of the Federal Govern13 ment, be vested in the Chief Justice of the United

14 States (or the designee of the Chief Justice).

15 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

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

17 moneys paid or payable to an individual which are

18 considered to be based upon remuneration for em19 ployment, for purposes of this section—

20 ‘‘(A) consist of—

21 ‘‘(i) compensation paid or payable for

22 personal services of the individual, whether

23 the compensation is denominated as wages,

24 salary, commission, bonus, pay, allowances,
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1 or otherwise (including severance pay, sick

2 pay, and incentive pay);

3 ‘‘(ii) periodic benefits (including a

4 periodic benefit as defined in section

5 228(h)(3)) or other payments—

6 ‘‘(I) under the insurance system

7 established by title II;

8 ‘‘(II) under any other system or

9 fund established by the United States

10 which provides for the payment of

11 pensions, retirement or retired pay,

12 annuities, dependents’ or survivors’

13 benefits, or similar amounts payable

14 on account of personal services per15 formed by the individual or any other

16 individual;

17 ‘‘(III) as compensation for death

18 under any Federal program;

19 ‘‘(IV) under any Federal pro20 gram established to provide ‘black

21 lung’ benefits; or

22 ‘‘(V) by the Secretary of Veter23 ans Affairs as pension, or as com24 pensation for a service-connected dis25 ability or death (except any compensa-
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1 tion paid by the Secretary to a mem2 ber of the Armed Forces who is in re3 ceipt of retired or retainer pay if the

4 member has waived a portion of the

5 retired pay of the member in order to

6 receive the compensation); and

7 ‘‘(iii) worker’s compensation benefits

8 paid under Federal or State law but

9 ‘‘(B) do not include any payment—

10 ‘‘(i) by way of reimbursement or oth11 erwise, to defray expenses incurred by the

12 individual in carrying out duties associated

13 with the employment of the individual; or

14 ‘‘(ii) as allowances for members of the

15 uniformed services payable pursuant to

16 chapter 7 of title 37, United States Code,

17 as prescribed by the Secretaries concerned

18 (defined by section 101(5) of such title) as

19 necessary for the efficient performance of

20 duty.

21 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter22 mining the amount of any moneys due from, or pay23 able by, the United States to any individual, there

24 shall be excluded amounts which—
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1 ‘‘(A) are owed by the individual to the

2 United States;

3 ‘‘(B) are required by law to be, and are,

4 deducted from the remuneration or other pay5 ment involved, including Federal employment

6 taxes, and fines and forfeitures ordered by

7 court-martial;

8 ‘‘(C) are properly withheld for Federal,

9 State, or local income tax purposes, if the with10 holding of the amounts is authorized or re11 quired by law and if amounts withheld are not

12 greater than would be the case if the individual

13 claimed all dependents to which he was entitled

14 (the withholding of additional amounts pursu15 ant to section 3402(i) of the Internal Revenue

16 Code of 1986 may be permitted only when the

17 individual presents evidence of a tax obligation

18 which supports the additional withholding);

19 ‘‘(D) are deducted as health insurance pre20 miums;

21 ‘‘(E) are deducted as normal retirement

22 contributions (not including amounts deducted

23 for supplementary coverage); or

24 ‘‘(F) are deducted as normal life insurance

25 premiums from salary or other remuneration
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1 for employment (not including amounts de2 ducted for supplementary coverage).

3 ‘‘(i) DEFINITIONS.—As used in this section:

4 ‘‘(1) UNITED STATES.—The term ‘United

5 States’ includes any department, agency, or instru6 mentality of the legislative, judicial, or executive

7 branch of the Federal Government, the United

8 States Postal Service, the Postal Rate Commission,

9 any Federal corporation created by an Act of Con10 gress that is wholly owned by the Federal Govern11 ment, and the governments of the territories and

12 possessions of the United States.

13 ‘‘(2) CHILD SUPPORT.—The term ‘child sup14 port’, when used in reference to the legal obligations

15 of an individual to provide such support, means peri16 odic payments of funds for the support and mainte17 nance of a child or children with respect to which

18 the individual has such an obligation, and (subject

19 to and in accordance with State law) includes pay20 ments to provide for health care, education, recre21 ation, clothing, or to meet other specific needs of

22 such a child or children, and includes attorney’s

23 fees, interest, and court costs, when and to the ex24 tent that the same are expressly made recoverable as

25 such pursuant to a decree, order, or judgment issued
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1 in accordance with applicable State law by a court

2 of competent jurisdiction.

3 ‘‘(3) ALIMONY.—The term ‘alimony’, when used

4 in reference to the legal obligations of an individual

5 to provide the same, means periodic payments of

6 funds for the support and maintenance of the spouse

7 (or former spouse) of the individual, and (subject to

8 and in accordance with State law) includes separate

9 maintenance, alimony pendente lite, maintenance,

10 and spousal support, and includes attorney’s fees,

11 interest, and court costs when and to the extent that

12 the same are expressly made recoverable as such

13 pursuant to a decree, order, or judgment issued in

14 accordance with applicable State law by a court of

15 competent jurisdiction. Such term does not include

16 any payment or transfer of property or its value by

17 an individual to the spouse or a former spouse of the

18 individual in compliance with any community prop19 erty settlement, equitable distribution of property, or

20 other division of property between spouses or former

21 spouses.

22 ‘‘(4) PRIVATE PERSON.—The term ‘private per23 son’ means a person who does not have sovereign or

24 other special immunity or privilege which causes the

25 person not to be subject to legal process.
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1 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc2 ess’ means any writ, order, summons, or other simi3 lar process in the nature of garnishment—

4 ‘‘(A) which is issued by—

5 ‘‘(i) a court of competent jurisdiction

6 in any State, territory, or possession of the

7 United States;

8 ‘‘(ii) a court of competent jurisdiction

9 in any foreign country with which the

10 United States has entered into an agree11 ment which requires the United States to

12 honor the process; or

13 ‘‘(iii) an authorized official pursuant

14 to an order of such a court of competent

15 jurisdiction or pursuant to State or local

16 law; and

17 ‘‘(B) which is directed to, and the purpose

18 of which is to compel, a governmental entity

19 which holds moneys which are otherwise pay20 able to an individual to make a payment from

21 the moneys to another party in order to satisfy

22 a legal obligation of the individual to provide

23 child support or make alimony payments.’’.

24 (b) CONFORMING AMENDMENTS.—
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1 (1) TO PART D OF TITLE IV.—Sections 461 and

2 462 (42 U.S.C. 661 and 662) are repealed.

3 (2) TO TITLE 5, UNITED STATES CODE.—Sec4 tion 5520a of title 5, United States Code, is amend5 ed, in subsections (h)(2) and (i), by striking ‘‘sec6 tions 459, 461, and 462 of the Social Security Act

7 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec8 tion 459 of the Social Security Act (42 U.S.C.

9 659)’’.

10 (c) MILITARY RETIRED AND RETAINER PAY.—

11 (1) DEFINITION OF COURT.—Section

12 1408(a)(1) of title 10, United States Code, is

13 amended—

14 (A) by striking ‘‘and’’ at the end of sub15 paragraph (B);

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

17 subparagraph (C) and inserting ‘‘; and’’; and

18 (C) by adding after subparagraph (C) the

19 following:

20 ‘‘(D) any administrative or judicial tribu21 nal of a State competent to enter orders for

22 support or maintenance (including a State

23 agency administering a program under a State

24 plan approved under part D of title IV of the

25 Social Security Act), and, for purposes of this
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1 subparagraph, the term ‘State’ includes the

2 District of Columbia, the Commonwealth of

3 Puerto Rico, the Virgin Islands, Guam, and

4 American Samoa.’’.

5 (2) DEFINITION OF COURT ORDER.—Section

6 1408(a)(2) of such title is amended by inserting ‘‘or

7 a court order for the payment of child support not

8 included in or accompanied by such a decree or set9 tlement,’’ before ‘‘which—’’.

10 (3) PUBLIC PAYEE.—Section 1408(d) of such

11 title is amended—

12 (A) in the heading, by inserting ‘‘(OR FOR

13 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

14 (B) in paragraph (1), in the first sentence,

15 by inserting ‘‘(or for the benefit of such spouse

16 or former spouse to a State disbursement unit

17 established pursuant to section 454B of the So18 cial Security Act or other public payee des19 ignated by a State, in accordance with part D

20 of title IV of the Social Security Act, as di21 rected by court order, or as otherwise directed

22 in accordance with such part D)’’ before ‘‘in an

23 amount sufficient’’.
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1 (4) RELATIONSHIP TO PART D OF TITLE IV.—

2 Section 1408 of such title is amended by adding at

3 the end the following:

4 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

5 involving an order providing for payment of child support

6 (as defined in section 459(i)(2) of the Social Security Act)

7 by a member who has never been married to the other

8 parent of the child, the provisions of this section shall not

9 apply, and the case shall be subject to the provisions of

10 section 459 of such Act.’’.

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

12 this section shall become effective 6 months after the date

13 of the enactment of this Act.

14 SEC. 763. ENFORCEMENT OF CHILD SUPPORT OBLIGA15 TIONS OF MEMBERS OF THE ARMED FORCES.

16 (a) AVAILABILITY OF LOCATOR INFORMATION.—

17 (1) MAINTENANCE OF ADDRESS INFORMA18 TION.—The Secretary of Defense shall establish a

19 centralized personnel locator service that includes

20 the address of each member of the Armed Forces

21 under the jurisdiction of the Secretary. Upon re22 quest of the Secretary of Transportation, addresses

23 for members of the Coast Guard shall be included in

24 the centralized personnel locator service.

25 (2) TYPE OF ADDRESS.—
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1 (A) RESIDENTIAL ADDRESS.—Except as

2 provided in subparagraph (B), the address for

3 a member of the Armed Forces shown in the lo4 cator service shall be the residential address of

5 that member.

6 (B) DUTY ADDRESS.—The address for a

7 member of the Armed Forces shown in the loca8 tor service shall be the duty address of that

9 member in the case of a member—

10 (i) who is permanently assigned over11 seas, to a vessel, or to a routinely

12 deployable unit; or

13 (ii) with respect to whom the Sec14 retary concerned makes a determination

15 that the member’s residential address

16 should not be disclosed due to national se17 curity or safety concerns.

18 (3) UPDATING OF LOCATOR INFORMATION.—

19 Within 30 days after a member listed in the locator

20 service establishes a new residential address (or a

21 new duty address, in the case of a member covered

22 by paragraph (2)(B)), the Secretary concerned shall

23 update the locator service to indicate the new ad24 dress of the member.
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1 (4) AVAILABILITY OF INFORMATION.—The Sec2 retary of Defense shall make information regarding

3 the address of a member of the Armed Forces listed

4 in the locator service available, on request, to the

5 Federal Parent Locator Service established under

6 section 453 of the Social Security Act.

7 (b) FACILITATING GRANTING OF LEAVE FOR AT8 TENDANCE AT HEARINGS.—

9 (1) REGULATIONS.—The Secretary of each

10 military department, and the Secretary of Transpor11 tation with respect to the Coast Guard when it is

12 not operating as a service in the Navy, shall pre13 scribe regulations to facilitate the granting of leave

14 to a member of the Armed Forces under the juris15 diction of that Secretary in a case in which—

16 (A) the leave is needed for the member to

17 attend a hearing described in paragraph (2);

18 (B) the member is not serving in or with

19 a unit deployed in a contingency operation (as

20 defined in section 101 of title 10, United States

21 Code); and

22 (C) the exigencies of military service (as

23 determined by the Secretary concerned) do not

24 otherwise require that such leave not be grant25 ed.
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1 (2) COVERED HEARINGS.—Paragraph (1) ap2 plies to a hearing that is conducted by a court or

3 pursuant to an administrative process established

4 under State law, in connection with a civil action—

5 (A) to determine whether a member of the

6 Armed Forces is a natural parent of a child; or

7 (B) to determine an obligation of a mem8 ber of the Armed Forces to provide child sup9 port.

10 (3) DEFINITIONS.—For purposes of this sub11 section:

12 (A) The term ‘‘court’’ has the meaning

13 given that term in section 1408(a) of title 10,

14 United States Code.

15 (B) The term ‘‘child support’’ has the

16 meaning given such term in section 459(i) of

17 the Social Security Act (42 U.S.C. 659(i)).

18 (c) PAYMENT OF MILITARY RETIRED PAY IN COM19 PLIANCE WITH CHILD SUPPORT ORDERS.—

20 (1) DATE OF CERTIFICATION OF COURT

21 ORDER.—Section 1408 of title 10, United States

22 Code, as amended by section 762(c)(4) of this Act,

23 is amended—

24 (A) by redesignating subsections (i) and (j)

25 as subsections (j) and (k), respectively; and
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1 (B) by inserting after subsection (h) the

2 following:

3 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

4 the date of a certification of the authenticity or complete5 ness of a copy of a court order for child support received

6 by the Secretary concerned for the purposes of this section

7 be recent in relation to the date of receipt by the Sec8 retary.’’.

9 (2) PAYMENTS CONSISTENT WITH ASSIGN10 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

11 of such title is amended by inserting after the 1st

12 sentence the following: ‘‘In the case of a spouse or

13 former spouse who, pursuant to section 405(a)(8) of

14 the Social Security Act (42 U.S.C. 605(a)(8)), as15 signs to a State the rights of the spouse or former

16 spouse to receive support, the Secretary concerned

17 may make the child support payments referred to in

18 the preceding sentence to that State in amounts con19 sistent with that assignment of rights.’’.

20 (3) ARREARAGES OWED BY MEMBERS OF THE

21 UNIFORMED SERVICES.—Section 1408(d) of such

22 title is amended by adding at the end the following:

23 ‘‘(6) In the case of a court order for which effective

24 service is made on the Secretary concerned on or after

25 the date of the enactment of this paragraph and which
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1 provides for payments from the disposable retired pay of

2 a member to satisy the amount of child support set forth

3 in the order, the authority provided in paragraph (1) to

4 make payments from the disposable retired pay of a mem5 ber to satisy the amount of child support set forth in a

6 court order shall apply to payment of any amount of child

7 support arrearages set forth in that order as well as to

8 amounts of child support that currently become due.’’.

9 (4) PAYROLL DEDUCTIONS.—The Secretary of

10 Defense shall begin payroll deductions within 30

11 days after receiving notice of withholding, or for the

12 first pay period that begins after such 30-day pe13 riod.

14 SEC. 764. VOIDING OF FRAUDULENT TRANSFERS.

15 Section 466 (42 U.S.C. 666), as amended by section

16 721 of this Act, is amended by adding at the end the

17 following:

18 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

19 order to satisfy section 454(20)(A), each State must have

20 in effect—

21 ‘‘(1)(A) the Uniform Fraudulent Conveyance

22 Act of 1981;

23 ‘‘(B) the Uniform Fraudulent Transfer Act

24 of 1984; or
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1 ‘‘(C) another law, specifying indicia of

2 fraud which create a prima facie case that a

3 debtor transferred income or property to avoid

4 payment to a child support creditor, which the

5 Secretary finds affords comparable rights to

6 child support creditors; and

7 ‘‘(2) procedures under which, in any case in

8 which the State knows of a transfer by a child sup9 port debtor with respect to which such a prima facie

10 case is established, the State must—

11 ‘‘(A) seek to void such transfer; or

12 ‘‘(B) obtain a settlement in the best inter13 ests of the child support creditor.’’.

14 SEC. 765. SENSE OF THE CONGRESS THAT STATES SHOULD

15 SUSPEND DRIVERS’, BUSINESS, AND OCCUPA16 TIONAL LICENSES OF PERSONS OWING PAST17 DUE CHILD SUPPORT.

18 It is the sense of the Congress that each State should

19 suspend any driver’s license, business license, or occupa20 tional license issued to any person who owes past-due child

21 support.

22 SEC. 766. WORK REQUIREMENT FOR PERSONS OWING

23 PAST-DUE CHILD SUPPORT.

24 Section 466(a) of the Social Security Act (42 U.S.C.

25 666(a)), as amended by sections 701(a), 715, 717(a), and
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1 723 of this Act, is amended by adding at the end the

2 following:

3 ‘‘(16) PROCEDURES TO ENSURE THAT PERSONS

4 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

5 FOR PAYMENT OF SUCH SUPPORT.—

6 ‘‘(A) Procedures requiring the State, in

7 any case in which an individual owes past-due

8 support with respect to a child receiving assist9 ance under a State program funded under part

10 A, to seek a court order that requires the indi11 vidual to—

12 ‘‘(i) pay such support in accordance

13 with a plan approved by the court; or

14 ‘‘(ii) if the individual is subject to

15 such a plan and is not incapacitated, par16 ticipate in such work activities (as defined

17 in section 404(b)(1)) as the court deems

18 appropriate.

19 ‘‘(B) As used in subparagraph (A), the

20 term ‘past-due support’ means the amount of a

21 delinquency, determined under a court order, or

22 an order of an administrative process estab23 lished under State law, for support and mainte24 nance of a child, or of a child and the parent

25 with whom the child is living.’’.
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1 SEC. 767. DEFINITION OF SUPPORT ORDER.

2 Section 453 (42 U.S.C. 653) as amended by sections

3 716 and 746(b) of this Act, is amended by adding at the

4 end the following:

5 ‘‘(o) SUPPORT ORDER DEFINED.—As used in this

6 part, the term ‘support order’ means an order issued by

7 a court or an administrative process established under

8 State law that requires support and maintenance of a child

9 or of a child and the parent with whom the child is liv10 ing.’’.

11 SEC. 768. LIENS.

12 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

13 to read as follows:

14 ‘‘(4) Procedures under which—

15 ‘‘(A) liens arise by operation of law against

16 real and personal property for amounts of over17 due support owed by an absent parent who re18 sides or owns property in the State; and

19 ‘‘(B) the State accords full faith and credit

20 to liens described in subparagraph (A) arising

21 in another State, without registration of the un22 derlying order.’’.
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1 SEC. 769. STATE LAW AUTHORIZING SUSPENSION OF LI2 CENSES.

3 Section 466(a) (42 U.S.C. 666(a)), as amended by

4 sections 715, 717(a), and 723 of this Act, is amended by

5 adding at the end the following:

6 ‘‘(15) AUTHORITY TO WITHHOLD OR SUSPEND

7 LICENSES.—Procedures under which the State has

8 (and uses in appropriate cases) authority to withhold

9 or suspend, or to restrict the use of driver’s licenses,

10 professional and occupational licenses, and rec11 reational licenses of individuals owing overdue sup12 port or failing, after receiving appropriate notice, to

13 comply with subpoenas or warrants relating to pa14 ternity or child support proceedings.’’.

15 Subtitle H—Medical Support

16 SEC. 771. TECHNICAL CORRECTION TO ERISA DEFINITION

17 OF MEDICAL CHILD SUPPORT ORDER.

18 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em19 ployee Retirement Income Security Act of 1974 (29

20 U.S.C. 1169(a)(2)(B)) is amended—

21 (1) by striking ‘‘issued by a court of competent

22 jurisdiction’’;

23 (2) by striking the period at the end of clause

24 (ii) and inserting a comma; and

25 (3) by adding, after and below clause (ii), the

26 following:
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1 ‘‘if such judgment, decree, or order (I) is issued

2 by a court of competent jurisdiction or (II) is

3 issued through an administrative process estab4 lished under State law and has the force and ef5 fect of law under applicable State law.’’.

6 (b) EFFECTIVE DATE.—

7 (1) IN GENERAL.—The amendments made by

8 this section shall take effect on the date of the en9 actment of this Act.

10 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

11 JANUARY 1, 1996.—Any amendment to a plan re12 quired to be made by an amendment made by this

13 section shall not be required to be made before the

14 first plan year beginning on or after January 1,

15 1996, if—

16 (A) during the period after the date before

17 the date of the enactment of this Act and be18 fore such first plan year, the plan is operated

19 in accordance with the requirements of the

20 amendments made by this section; and

21 (B) such plan amendment applies retro22 actively to the period after the date before the

23 date of the enactment of this Act and before

24 such first plan year.
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1 A plan shall not be treated as failing to be operated

2 in accordance with the provisions of the plan merely

3 because it operates in accordance with this para4 graph.

5 Subtitle I—Enhancing Responsibil6 ity and Opportunity for Non7 residential Parents

8 SEC. 781. GRANTS TO STATES FOR ACCESS AND VISITATION

9 PROGRAMS.

10 Part D of title IV (42 U.S.C. 651–669) is amended

11 by adding at the end the following:

12 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA13 TION PROGRAMS.

14 ‘‘(a) IN GENERAL.—The Administration for Children

15 and Families shall make grants under this section to en16 able States to establish and administer programs to sup17 port and facilitate absent parents’ access to and visitation

18 of their children, by means of activities including medi19 ation (both voluntary and mandatory), counseling, edu20 cation, development of parenting plans, visitation enforce21 ment (including monitoring, supervision and neutral drop22 off and pickup), and development of guidelines for visita23 tion and alternative custody arrangements.
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1 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

2 to be made to a State under this section for a fiscal year

3 shall be an amount equal to the lesser of—

4 ‘‘(1) 90 percent of State expenditures during

5 the fiscal year for activities described in subsection

6 (a); or

7 ‘‘(2) the allotment of the State under sub8 section (c) for the fiscal year.

9 ‘‘(c) ALLOTMENTS TO STATES.—

10 ‘‘(1) IN GENERAL.—The allotment of a State

11 for a fiscal year is the amount that bears the same

12 ratio to the amount appropriated for grants under

13 this section for the fiscal year as the number of chil14 dren in the State living with only 1 biological parent

15 bears to the total number of such children in all

16 States.

17 ‘‘(2) MINIMUM ALLOTMENT.—The Administra18 tion for Children and Families shall adjust allot19 ments to States under paragraph (1) as necessary to

20 ensure that no State is allotted less than—

21 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

22 or

23 ‘‘(B) $100,000 for any succeeding fiscal

24 year.
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1 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

2 FOR SIMILAR ACTIVITIES.—A State to which a grant is

3 made under this section may not use the grant to supplant

4 expenditures by the State for activities specified in sub5 section (a), but shall use the grant to supplement such

6 expenditures at a level at least equal to the level of such

7 expenditures for fiscal year 1995.

8 ‘‘(e) STATE ADMINISTRATION.—Each State to which

9 a grant is made under this section—

10 ‘‘(1) may administer State programs funded

11 with the grant, directly or through grants to or con12 tracts with courts, local public agencies, or non-prof13 it 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 Subtitle J—Effect of Enactment

20 SEC. 791. EFFECTIVE DATES.

21 (a) IN GENERAL.—Except as otherwise specifically

22 provided (but subject to subsections (b) and (c))—

23 (1) the provisions of this title requiring the en24 actment or amendment of State laws under section

25 466 of the Social Security Act, or revision of State
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1 plans under section 454 of such Act, shall be effec2 tive with respect to periods beginning on and after

3 October 1, 1996; and

4 (2) all other provisions of this title shall become

5 effective upon enactment.

6 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

7 provisions of this title shall become effective with respect

8 to a State on the later of—

9 (1) the date specified in this title, or

10 (2) the effective date of laws enacted by the leg11 islature of such State implementing such provisions,

12 but in no event later than the first day of the first cal13 endar quarter beginning after the close of the first regular

14 session of the State legislature that begins after the date

15 of the enactment of this Act. For purposes of the previous

16 sentence, in the case of a State that has a 2-year legisla17 tive session, each year of such session shall be deemed to

18 be a separate regular session of the State legislature.

19 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

20 AMENDMENT.—A State shall not be found out of compli21 ance with any requirement enacted by this title if the State

22 is unable to so comply without amending the State con23 stitution until the earlier of—

24 (1) 1 year after the effective date of the nec25 essary State constitutional amendment; or
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1 (2) 5 years after the date of the enactment of

2 this title.

3 TITLE VIII—MISCELLANEOUS

4 PROVISIONS

5 SEC. 801. SCORING.

6 Section 251(b)(2) of the Balanced Budget and Emer7 gency Deficit Control Act of 1985 is amended by adding

8 at the end the following new subparagraph:

9 ‘‘(H) SPECIAL ALLOWANCE FOR WELFARE RE10 FORM.—For any fiscal year, the adjustments shall

11 be appropriations for discretionary programs result12 ing from the Personal Responsibility Act of 1995 (as

13 described in the joint explanatory statement accom14 panying a conference report on that Act) in discre15 tionary accounts and the outlays flowing in all years

16 from such appropriations (but not to exceed

17 amounts authorized for those programs by that Act

18 for that fiscal year) minus appropriations for com19 parable discretionary programs for fiscal year 1995

20 (as described in the joint explanatory statement ac21 companying a conference report on that Act.’’.

22 SEC. 802. PROVISIONS TO ENCOURAGE ELECTRONIC BENE23 FIT TRANSFER SYSTEMS.

24 Section 904 of the Electronic Fund Transfer Act (15

25 U.S.C. 1693b) is amended—
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1 (1) by striking ‘‘(d) In the event’’ and inserting

2 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS

3 OTHER THAN CERTAIN FINANCIAL INSTITU4 TIONS.—

5 ‘‘(1) IN GENERAL.—In the event’’; and

6 (2) by adding at the end the following new

7 paragraph:

8 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC9 TRONIC BENEFIT TRANSFER PROGRAMS.—

10 ‘‘(A) EXEMPTION GENERALLY.—The dis11 closures, protections, responsibilities, and rem12 edies established under this title, and any regu13 lation prescribed or order issued by the Board

14 in accordance with this title, shall not apply to

15 any electronic benefit transfer program estab16 lished under State or local law or administered

17 by a State or local government.

18 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

19 INTO RECIPIENT’S ACCOUNT.—Subparagraph

20 (A) shall not apply with respect to any elec21 tronic funds transfer under an electronic benefit

22 transfer program for deposits directly into a

23 consumer account held by the recipient of the

24 benefit.
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1 ‘‘(C) RULE OF CONSTRUCTION.—No provi2 sion of this paragraph may be construed as—

3 ‘‘(i) affecting or altering the protec4 tions otherwise applicable with respect to

5 benefits established by Federal, State, or

6 local law; or

7 ‘‘(ii) otherwise superseding the appli8 cation of any State or local law.

9 ‘‘(D) ELECTRONIC BENEFIT TRANSFER

10 PROGRAM DEFINED.—For purposes of this

11 paragraph, the term ‘electronic benefit transfer

12 program’—

13 ‘‘(i) means a program under which a

14 government agency distributes needs-tested

15 benefits by establishing accounts to be

16 accessed by recipients electronically, such

17 as through automated teller machines, or

18 point-of-sale terminals; and

19 ‘‘(ii) does not include employment-re20 lated payments, including salaries and pen21 sion, retirement, or unemployment benefits

22 established by Federal, State, or local gov23 ernments.’’.
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1 SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CON2 TENTS.

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

4 ‘‘Family Self-Sufficiency Act of 1995’’.

5 (b) REFERENCE TO SOCIAL SECURITY ACT.—Except

6 as otherwise specifically provided, wherever in this Act an

7 amendment is expressed in terms of an amendment to or

8 repeal of a section or other provision, the reference shall

9 be considered to be made to that section or other provision

10 of the Social Security Act.

11 (c) TABLE OF CONTENTS.—The table of contents of this

12 Act is as follows:

Sec. 1. Short title; reference; table of contents.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 101. Block grants to States.

Sec. 102. Report on data processing.

Sec. 103. Continued application of current standards under medicaid program.

Sec. 104. Waivers.

Sec. 105. Deemed income requirement for Federal and federally funded programs

under the Social Security Act.

Sec. 106. Conforming amendments to the Social Security Act.

Sec. 107. Conforming amendments to the Food Stamp Act of 1977 and related

provisions.

Sec. 108. Conforming amendments to other laws.

Sec. 109. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 110. Effective date; transition rule.

TITLE II—MODIFICATIONS TO THE JOBS PROGRAM

Sec. 201. Modifications to the JOBS program.

Sec. 202. Effective date.

TITLE III—SUPPLEMENTAL SECURITY INCOME

Subtitle A—Eligibility Restrictions

Sec. 301. Denial of supplemental security income benefits by reason of disability

to drug addicts and alcoholics.

Sec. 302. Limited eligibility of noncitizens for SSI benefits.
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Sec. 303. 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. 304. Denial of SSI benefits for fugitive felons and probation and parole violators.

Sec. 305. Effective dates; application to current recipients.

Subtitle B—Benefits for Disabled Children

Sec. 311. Restrictions on eligibility for benefits.

Sec. 312. Continuing disability reviews.

Sec. 313. Treatment requirements for disabled individuals under the age of 18.

Subtitle C—Study of Disability Determination Process

Sec. 321. Study of disability determination process.

Subtitle D—National Commission on the Future of Disability

Sec. 331. Establishment.

Sec. 332. Duties of the Commission.

Sec. 333. Membership.

Sec. 334. Staff and support services.

Sec. 335. Powers of Commission.

Sec. 336. Reports.

Sec. 337. Termination.

TITLE IV—CHILD SUPPORT

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 401. State obligation to provide child support enforcement services.

Sec. 402. Distribution of child support collections.

Sec. 403. Rights to notification and hearings.

Sec. 404. Privacy safeguards.

Subtitle B—Locate and Case Tracking

Sec. 411. State case registry.

Sec. 412. Collection and disbursement of support payments.

Sec. 413. State directory of new hires.

Sec. 414. Amendments concerning income withholding.

Sec. 415. Locator information from interstate networks.

Sec. 416. Expansion of the Federal parent locator service.

Sec. 417. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 421. Adoption of uniform State laws.

Sec. 422. Improvements to full faith and credit for child support orders.

Sec. 423. Administrative enforcement in interstate cases.

Sec. 424. Use of forms in interstate enforcement.

Sec. 425. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 431. State laws concerning paternity establishment.

Sec. 432. Outreach for voluntary paternity establishment.
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Sec. 433. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 441. Federal matching payments.

Sec. 442. Performance-based incentives and penalties.

Sec. 443. Federal and State reviews and audits.

Sec. 444. Required reporting procedures.

Sec. 445. Automated data processing requirements.

Sec. 446. Technical assistance.

Sec. 447. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 451. National Child Support Guidelines Commission.

Sec. 452. Simplified process for review and adjustment of child support orders.

Sec. 453. Furnishing consumer reports for certain purposes relating to child support.

Sec. 454. Nonliability for depository institutions providing financial records to

State child support enforcement agencies in child support cases.

Subtitle G—Enforcement of Support Orders

Sec. 461. Federal income tax refund offset.

Sec. 462. Internal Revenue Service collection of arrearages.

Sec. 463. Authority to collect support from Federal employees.

Sec. 464. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 465. Voiding of fraudulent transfers.

Sec. 466. Work requirement for persons owing child support.

Sec. 467. Definition of support order.

Sec. 468. Reporting arrearages to credit bureaus.

Sec. 469. Liens.

Sec. 470. State law authorizing suspension of licenses.

Sec. 471. Denial of passports for nonpayment of child support.

Subtitle H—Medical Support

Sec. 475. Technical correction to ERISA definition of medical child support

order.

Sec. 476. Enforcement of orders for health care coverage.

Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential

Parents

Sec. 481. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 491. Effective dates.
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1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE FOR

3 NEEDY FAMILIES

4 SEC. 101. BLOCK GRANTS TO STATES.

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

6 to read as follows:

7 ‘‘PART A—BLOCK GRANTS TO STATES FOR TEM8 PORARY ASSISTANCE FOR NEEDY FAMILIES

9 WITH MINOR CHILDREN

10 ‘‘SEC. 401. PURPOSE.

11 ‘‘The purpose of this part is to increase the flexibility

12 of States in operating a program designed to—

13 ‘‘(1) provide assistance to needy families with

14 minor children;

15 ‘‘(2) provide job preparation and opportunities

16 for such families; and

17 ‘‘(3) prevent and reduce the incidence of out-of18 wedlock pregnancies.

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

20 ‘‘(a) IN GENERAL.—As used in this part, the term ‘eli21 gible State’ means, with respect to a fiscal year, a State

22 that has submitted to the Secretary a plan that includes

23 the following:
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1 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO2 GRAM.—A written document that outlines how the

3 State intends to do the following:

4 ‘‘(A) Conduct a program designed to serve

5 all political subdivisions in the State to—

6 ‘‘(i) provide assistance to needy fami7 lies with not less than 1 minor child; and

8 ‘‘(ii) provide a parent or caretaker in

9 such families with work experience, assist10 ance in finding employment, and other

11 work preparation activities and support

12 services that the State considers appropriate

13 to enable such families to leave the program

14 and become self-sufficient.

15 ‘‘(B) Require a parent or caretaker receiv16 ing assistance under the program for more than

17 24 months (whether or not consecutive), or at the

18 option of the State, a lesser period, to engage in

19 work activities in accordance with section 404

20 and part F.

21 ‘‘(C) Satisfy the minimum participation

22 rates specified in section 404.

23 ‘‘(D) Treat—

24 ‘‘(i) families with minor children mov25 ing into the State from another State; and
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1 ‘‘(ii) noncitizens of the United States.

2 ‘‘(E) Safeguard and restrict the use and

3 disclosure of information about individuals and

4 families receiving assistance under the program.

5 ‘‘(F) Take action to prevent and reduce the

6 incidence of out-of-wedlock pregnancies, with

7 special emphasis on teenage pregnancies.

8 ‘‘(2) CERTIFICATION THAT THE STATE WILL OP9 ERATE A CHILD SUPPORT ENFORCEMENT PROGRAM.—

10 A certification by the chief executive officer of the

11 State that, during the fiscal year, the State will oper12 ate a child support enforcement program under the

13 State plan approved under part D, in a manner that

14 complies with the requirements of such part.

15 ‘‘(3) CERTIFICATION THAT THE STATE WILL OP16 ERATE A CHILD PROTECTION PROGRAM.—A certifi17 cation by the chief executive officer of the State that,

18 during the fiscal year, the State will operate a child

19 protection program in accordance with part B.

20 ‘‘(4) CERTIFICATION THAT THE STATE WILL OP21 ERATE A FOSTER CARE AND ADOPTION ASSISTANCE

22 PROGRAM.—A certification by the chief executive offi23 cer of the State that, during the fiscal year, the State

24 will operate a foster care and adoption assistance

25 program in accordance with part E.
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1 ‘‘(5) CERTIFICATION THAT THE STATE WILL OP2 ERATE A JOBS PROGRAM.—A certification by the chief

3 executive officer of the State that, during the fiscal

4 year, the State will operate a JOBS program in ac5 cordance with part F.

6 ‘‘(6) CERTIFICATION THAT THE STATE WILL PAR7 TICIPATE IN THE INCOME AND ELIGIBILITY VERIFICA8 TION SYSTEM.—A certification by the chief executive

9 officer of the State that, during the fiscal year, the

10 State will participate in the income and eligibility

11 verification system required by section 1137.

12 ‘‘(7) CERTIFICATION OF THE ADMINISTRATION

13 OF THE PROGRAM.—The chief executive officer of the

14 State shall certify which State agency or agencies are

15 responsible for the administration and supervision of

16 the State program for the fiscal year.

17 ‘‘(8) CERTIFICATION THAT REQUIRED REPORTS

18 WILL BE SUBMITTED.—A certification by the chief ex19 ecutive officer of the State that the State shall provide

20 the Secretary with any reports required under this

21 part and part F.

22 ‘‘(9) ESTIMATE OF FISCAL YEAR STATE AND

23 LOCAL EXPENDITURES.—An estimate of the total

24 amount of State and local expenditures under the

25 State program for the fiscal year.
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1 ‘‘(b) DETERMINATIONS.—The Secretary shall deter2 mine whether a plan submitted pursuant to subsection (a)

3 contains the material required by subsection (a).

4 ‘‘(c) DEFINITIONS.—For purposes of this part, the fol5 lowing definitions shall apply:

6 ‘‘(1) MINOR CHILD.—The term ‘minor child’

7 means an individual—

8 ‘‘(A) who—

9 ‘‘(i) has not attained 18 years of age;

10 or

11 ‘‘(ii) has—

12 ‘‘(I) not attained 19 years of age;

13 and

14 ‘‘(II) is a full-time student in a

15 secondary school (or in the equivalent

16 level of vocational or technical train17 ing); and

18 ‘‘(B) who resides with such individual’s cus19 todial parent or other caretaker relative.

20 ‘‘(2) WORK ACTIVITY.—The term ‘work activity’

21 means an activity described in section 482.

22 ‘‘(3) FISCAL YEAR.—The term ‘fiscal year’

23 means any 12-month period ending on September 30

24 of a calendar year.
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1 ‘‘(4) STATE.—The term ‘State’ includes the sev2 eral States, the District of Columbia, the Common3 wealth of Puerto Rico, the United States Virgin Is4 lands, Guam, and American Samoa.

5 ‘‘SEC. 403. PAYMENTS TO STATES.

6 ‘‘(a) ENTITLEMENT.—

7 ‘‘(1) IN GENERAL.—Subject to the provisions of

8 section 406, the Secretary shall pay to each eligible

9 State for each of fiscal years 1996, 1997, 1998, 1999,

10 and 2000 a grant in an amount equal to the State

11 family assistance grant for the fiscal year.

12 ‘‘(2) APPROPRIATION.—

13 ‘‘(A) STATES.—There are authorized to be

14 appropriated and there are appropriated

15 $16,779,000,000 for each fiscal year described in

16 paragraph (1) for the purpose of paying State

17 family assistance grants to States under such

18 paragraph.

19 ‘‘(B) INDIAN TRIBES.—There are authorized

20 to be appropriated and there are appropriated

21 $7,638,474 for each fiscal year described in

22 paragraph (1) for the purpose of paying State

23 family assistance grants to Indian tribes under

24 such paragraph in accordance with section

25 482(i).
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1 ‘‘(b) STATE FAMILY ASSISTANCE GRANT.—

2 ‘‘(1) IN GENERAL.—For purposes of subsection

3 (a), a State family assistance grant for any State for

4 a fiscal year is an amount equal to the total amount

5 of the Federal payments to the State under section

6 403 for fiscal year 1994 (as such section was in effect

7 before October 1, 1995).

8 ‘‘(2) STATE APPROPRIATION OF GRANT.—Not9 withstanding any other provision of law, any funds

10 received by a State under this part shall be expended

11 only in accordance with the laws and procedures ap12 plicable to expenditures of the State’s own revenues,

13 including appropriation by the State legislature, con14 sistent with the terms and conditions required under

15 this part.

16 ‘‘(3) SPECIAL RULE FOR INDIAN TRIBES.—For

17 amount of a State family assistance grant for a fiscal

18 year for an Indian tribe, see section 482(i).

19 ‘‘(c) USE OF GRANT.—

20 ‘‘(1) IN GENERAL.—Subject to this part, a State

21 to which a grant is made under this section may use

22 the grant in any manner that is reasonably cal23 culated to accomplish the purpose of this part.

24 ‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI25 GRANTS UNDER RULES OF FORMER STATE.—A State
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1 to which a grant is made under this section may

2 apply to a family the rules of the program operated

3 under this part of another State if the family has

4 moved to the State from the other State and has re5 sided in the State for less than 12 months.

6 ‘‘(3) AUTHORITY TO RESERVE CERTAIN AMOUNTS

7 FOR ASSISTANCE.—A State may reserve amounts

8 paid to the State under this part for any fiscal year

9 for the purpose of providing, without fiscal year limi10 tation, assistance under the State program operated

11 under this part.

12 ‘‘(4) AUTHORITY TO PROVIDE CHILD CARE AND

13 TRANSITIONAL SERVICES.—A State to which a grant

14 is made under this section may provide, at the State’s

15 option, child care and transitional services to—

16 ‘‘(A) families at risk of becoming eligible for

17 assistance under the program if child care is not

18 provided; and

19 ‘‘(B) families that cease to receive assistance

20 under the program because of employment.

21 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall pay

22 each grant payable to a State under this section in quar23 terly installments.

24 ‘‘(e) LIMITATION ON FEDERAL AUTHORITY.—The Sec25 retary may not regulate the conduct of States under this
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1 part or enforce any provision of this part, except to the

2 extent expressly provided in this part.

3 ‘‘(f) SUPPLEMENTAL ASSISTANCE FOR NEEDY FAMI4 LIES FEDERAL LOAN FUND.—

5 ‘‘(1) ESTABLISHMENT.—There is hereby estab6 lished in the Treasury of the United States a revolv7 ing loan fund which shall be known as the ‘Supple8 mental Assistance for Needy Families Federal Loan

9 Fund’.

10 ‘‘(2) DEPOSITS INTO FUND.—

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

12 in the Treasury of the United States not other13 wise appropriated, $1,700,000,000 are hereby

14 appropriated for fiscal year 1996 for payment to

15 the Supplemental Assistance for Needy Families

16 Federal Loan Fund.

17 ‘‘(B) LOAN REPAYMENTS.—The Secretary

18 shall deposit into the fund any principal or in19 terest payment received with respect to a loan

20 made under this subsection.

21 ‘‘(3) AVAILABILITY.—Amounts in the fund are

22 authorized to remain available without fiscal year

23 limitation for the purpose of making loans and re24 ceiving payments of principal and interest on such

25 loans, in accordance with this subsection.
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1 ‘‘(4) USE OF FUND.—

2 ‘‘(A) LOANS TO STATES.—The Secretary

3 shall make loans from the fund to any loan-eligi4 ble State, as defined in subparagraph (D), for a

5 period to maturity of not more than 3 years.

6 ‘‘(B) RATE OF INTEREST.—The Secretary

7 shall charge and collect interest on any loan

8 made under subparagraph (A) at a rate equal to

9 the Federal short term rate, as defined in section

10 1274(d) of the Internal Revenue Code of 1986.

11 ‘‘(C) MAXIMUM LOAN.—The cumulative

12 amount of any loans made to a State under sub13 paragraph (A) during fiscal years 1996 through

14 2000 shall not exceed 10 percent of the State

15 family assistance grant under subsection (b) for

16 a fiscal year.

17 ‘‘(D) LOAN-ELIGIBLE STATE.—For purposes

18 of subparagraph (A), a loan-eligible State is a

19 State which has not had a penalty described in

20 section 406 imposed against it at any time prior

21 to the loan being made.

22 ‘‘(5) LIMITATION ON USE OF LOAN.—A State

23 shall use a loan received under this subsection only

24 for—
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1 ‘‘(A) the purpose of providing assistance

2 under the State program funded under this part;

3 or

4 ‘‘(B) welfare anti-fraud activities, systems,

5 or initiatives, including positive client identity

6 verification and computerized data record

7 matching and analysis.

8 ‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.

9 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

10 ‘‘(1) REQUIREMENT APPLICABLE TO ALL FAMI11 LIES RECEIVING ASSISTANCE.—

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

13 grant is made under section 403 for a fiscal year

14 shall achieve the minimum participation rate

15 specified in the following table for the fiscal year

16 with respect to all families receiving assistance

17 under the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

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

1997 .................................................................... 30

1998 .................................................................... 35

1999 .................................................................... 40

2000 .................................................................... 45

2001 or thereafter .............................................. 50.

18 ‘‘(B) STATE OPTION FOR PARTICIPATION

19 REQUIREMENT EXEMPTIONS.—For any fiscal

20 year before fiscal year 1999, a State may opt to

21 not require an individual described in section
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1 402(a)(19)(C) (as such section was in effect on

2 September 30, 1995) to engage in work activities

3 and may exclude such individuals from the de4 termination of the minimum participation rate

5 specified for such fiscal year in subparagraph

6 (A).

7 ‘‘(C) CHILD CARE FOR INDIVIDUALS WITH

8 CHILDREN UNDER 6 YEARS OF AGE.—If a State

9 requires an individual described in section

10 402(a)(19)(C)(iii)(II) (as such section was in ef11 fect on September 30, 1995) to engage in work

12 activities, the State shall provide the individual

13 with child care.

14 ‘‘(D) PARTICIPATION RATE.—For purposes

15 of this paragraph:

16 ‘‘(i) AVERAGE MONTHLY RATE.—The

17 participation rate of a State for a fiscal

18 year is the average of the participation

19 rates of the State for each month in the fis20 cal year.

21 ‘‘(ii) MONTHLY PARTICIPATION

22 RATES.—The participation rate of a State

23 for a month, expressed as a percentage, is—

24 ‘‘(I) the number of families receiv25 ing assistance under the State program
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1 funded under this part which include

2 an individual who is engaged in work

3 activities for the month; divided by

4 ‘‘(II) the total number of families

5 receiving assistance under the State

6 program funded under this part dur7 ing the month.

8 ‘‘(iii) ENGAGED.—A recipient is en9 gaged in work activities for a month in a

10 fiscal year if the recipient is participating,

11 per the State’s requirement which must be

12 at least 20 hours each week in the month,

13 in work activities described in clause (i),

14 (ii), (vi), (vii), (viii), (ix), or (x) of section

15 482(d)(1)(A), (or, in the case of the first 4

16 weeks for which the recipient is required

17 under this section to participate in work

18 activities, an activity described in any such

19 clause or in clause (iii), (iv), or (v) of such

20 section).

21 ‘‘(2) REQUIREMENT APPLICABLE TO 2-PARENT

22 FAMILIES.—

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

24 grant is made under section 403 for a fiscal year

25 shall achieve the minimum participation rate
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1 specified in the following table for the fiscal year

2 with respect to 2-parent families receiving assist3 ance under the State program funded under this

4 part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 .................................................................... 60

1997 or 1998 ...................................................... 75

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

5 ‘‘(B) PARTICIPATION RATE.—For purposes

6 of this paragraph:

7 ‘‘(i) AVERAGE MONTHLY RATE.—The

8 participation rate of a State for a fiscal

9 year is the average of the participation

10 rates of the State for each month in the fis11 cal year.

12 ‘‘(ii) MONTHLY PARTICIPATION

13 RATES.—The participation rate of a State

14 for a month is—

15 ‘‘(I) the number of 2-parent fami16 lies receiving assistance under the

17 State program funded under this part

18 which include at least 1 adult who is

19 engaged in work activities for the

20 month; divided by

21 ‘‘(II) the total number of 2-parent

22 families receiving assistance under the
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1 State program funded under this part

2 during the month.

3 ‘‘(iii) ENGAGED.—An adult is engaged

4 in work activities for a month in a fiscal

5 year if the adult is making progress in such

6 activities, per the State’s requirement which

7 must be at least 30 hours each week in a

8 month, in work activities described in

9 clause (vi), (vii), (viii), (ix), or (x) of sec10 tion 482(d)(1)(A) (or, in the case of the first

11 4 weeks for which the recipient is required

12 under this section to participate in work

13 activities, an activity described in any such

14 clause or in clause (iii), (iv), or (v) of such

15 section).

16 ‘‘(b) PENALTIES AGAINST INDIVIDUALS.—

17 ‘‘(1) APPLICABLE TO ALL FAMILIES.—If an adult

18 in a family receiving assistance under the State pro19 gram funded under this part refuses to engage (within

20 the meaning of subsection (a)(1)(C)(iii)) in work ac21 tivities required under this section, a State to which

22 a grant is made under section 403 shall—

23 ‘‘(A) reduce the amount of assistance that

24 would otherwise be payable to the family; or

25 ‘‘(B) terminate such assistance,
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1 subject to such good cause and other exceptions as the

2 State may establish.

3 ‘‘(2) APPLICABLE TO 2-PARENT FAMILIES.—If an

4 adult in a 2-parent family refuses to engage (within

5 the meaning of subsection (a)(2)(B)(iii)) in work ac6 tivities for at least 30 hours per week during any

7 month, a State to which a grant is made under sec8 tion 402 shall—

9 ‘‘(A) reduce the amount of assistance other10 wise payable to the family; or

11 ‘‘(B) terminate such assistance,

12 subject to such good cause and other exceptions as the

13 State may establish.

14 ‘‘(3) LIMITATION ON FEDERAL AUTHORITY.—No

15 officer or employee of the Federal Government may

16 regulate the conduct of States under this paragraph

17 or enforce this paragraph against any State.

18 ‘‘SEC. 405. LIMITATIONS.

19 ‘‘(a) NO ASSISTANCE FOR MORE THAN 5 YEARS.—

20 ‘‘(1) IN GENERAL.—Except as provided under

21 paragraph (2), a State to which a grant is made

22 under section 403 may not use any part of the grant

23 to provide assistance to a family of an individual

24 who has received assistance under the program oper25 ated under this part for the lesser of—
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1 ‘‘(A) the period of time established at the

2 option of the State; or

3 ‘‘(B) 60 months (whether or not consecutive)

4 after September 30, 1995.

5 ‘‘(2) MINOR CHILD EXCEPTION.—If an individ6 ual received assistance under the State program oper7 ated under this part as a minor child in a needy

8 family, any period during which such individual’s

9 family received assistance shall not be counted for

10 purposes of applying the limitation described in

11 paragraph (1) to an application for assistance under

12 such program by such individual as the head of a

13 household of a needy family with minor children.

14 ‘‘(3) HARDSHIP EXCEPTION.—

15 ‘‘(A) IN GENERAL.—The State may exempt

16 a family from the application of paragraph (1)

17 by reason of hardship.

18 ‘‘(B) LIMITATION.—The number of families

19 with respect to which an exemption made by a

20 State under subparagraph (A) is in effect for a

21 fiscal year shall not exceed 15 percent of the av22 erage monthly number of families to which the

23 State is providing assistance under the program

24 operated under this part.
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1 ‘‘(b) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PER2 SON FOUND TO HAVE FRAUDULENTLY MISREPRESENTED

3 RESIDENCE IN ORDER TO OBTAIN ASSISTANCE IN 2 OR

4 MORE STATES.—An individual shall not be considered an

5 eligible individual for the purposes of this part during the

6 10-year period that begins on the date the individual is con7 victed in Federal or State court of having made a fraudu8 lent statement or representation with respect to the place

9 of residence of the individual in order to receive assistance

10 simultaneously from 2 or more States under programs that

11 are funded under this title, title XIX, or the Food Stamp

12 Act of 1977, or benefits in 2 or more States under the sup13 plemental security income program under title XVI.

14 ‘‘(c) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS

15 AND PROBATION AND PAROLE VIOLATORS.—

16 ‘‘(1) IN GENERAL.—An individual shall not be

17 considered an eligible individual for the purposes of

18 this part if such individual is—

19 ‘‘(A) fleeing to avoid prosecution, or custody

20 or confinement after conviction, under the laws

21 of the place from which the individual flees, for

22 a crime, or an attempt to commit a crime, which

23 is a felony under the laws of the place from

24 which the individual flees, or which, in the case
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1 of the State of New Jersey, is a high mis2 demeanor under the laws of such State; or

3 ‘‘(B) violating a condition of probation or

4 parole imposed under Federal or State law.

5 ‘‘(2) EXCHANGE OF INFORMATION WITH LAW EN6 FORCEMENT AGENCIES.—Notwithstanding any other

7 provision of law, a State shall furnish any Federal,

8 State, or local law enforcement officer, upon the re9 quest of the officer, with the current address of any

10 recipient of assistance under this part, if the officer

11 furnishes the agency with the name of the recipient

12 and notifies the agency that—

13 ‘‘(A) such recipient—

14 ‘‘(i) is described in subparagraph (A)

15 or (B) of paragraph (1); or

16 ‘‘(ii) has information that is necessary

17 for the officer to conduct the officer’s official

18 duties; and

19 ‘‘(B) the location or apprehension of the re20 cipient is within such officer’s official duties.

21 ‘‘(d) STATE OPTION TO PROHIBIT ASSISTANCE FOR

22 CERTAIN ALIENS.—

23 ‘‘(1) IN GENERAL.—A State to which a grant is

24 made under section 403 may, at its option, prohibit

25 the use of any part of the grant to provide assistance
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1 under the State program funded under this part for

2 an individual who is not a citizen or national of the

3 United States.

4 ‘‘(2) DEEMING OF INCOME AND RESOURCES IF

5 ASSISTANCE IS PROVIDED.—For deeming of income

6 and resources requirements if assistance is provided

7 to an individual who is not a citizen or national of

8 the United States, see section 1145.

9 ‘‘SEC. 406. STATE PENALTIES.

10 ‘‘(a) IN GENERAL.—Subject to the provisions of sub11 section (b), the Secretary shall deduct from the grant other12 wise payable under section 403 the following penalties:

13 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS

14 PART.—If an audit conducted pursuant to chapter 75

15 of title 31, United States Code, finds that an amount

16 paid to a State under section 403 for a fiscal year

17 has been used in violation of this part, then the Sec18 retary shall reduce the amount of the grant otherwise

19 payable to the State under such section for the imme20 diately succeeding fiscal year quarter by the amount

21 so used, plus 5 percent of such grant (determined

22 without regard to this section).

23 ‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE24 PORT.—
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1 ‘‘(A) IN GENERAL.—If the Secretary deter2 mines that a State has not, within 6 months

3 after the end of a fiscal year, submitted the re4 port required by section 408 for the fiscal year,

5 the Secretary shall reduce by 5 percent the

6 amount of the grant that would (in the absence

7 of this section) be payable to the State under sec8 tion 403 for the immediately succeeding fiscal

9 year.

10 ‘‘(B) RESCISSION OF PENALTY.—The Sec11 retary shall rescind a penalty imposed on a

12 State under subparagraph (A) with respect to a

13 report for a fiscal year if the State submits the

14 report before the end of the immediately succeed15 ing fiscal year.

16 ‘‘(3) FOR FAILURE TO SATISFY MINIMUM PAR17 TICIPATION RATES.—

18 ‘‘(A) IN GENERAL.—If the Secretary deter19 mines that a State has failed to satisfy the mini20 mum participation rates specified in section 404

21 for a fiscal year, the Secretary shall reduce by

22 not more than 5 percent the amount of the grant

23 that would (in the absence of this section) be

24 payable to the State under section 403 for the

25 immediately succeeding fiscal year.
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1 ‘‘(B) PENALTY BASED ON SEVERITY OF

2 FAILURE.—The Secretary shall impose reduc3 tions under subparagraph (A) on the basis of the

4 degree of noncompliance.

5 ‘‘(4) FOR FAILURE TO PARTICIPATE IN THE IN6 COME AND ELIGIBILITY VERIFICATION SYSTEM.—If

7 the Secretary determines that a State program funded

8 under this part is not participating during a fiscal

9 year in the income and eligibility verification system

10 required by section 1137, the Secretary shall reduce

11 by not more than 5 percent the amount of the grant

12 that would (in the absence of this section) be payable

13 to the State under section 403 for the immediately

14 succeeding fiscal year.

15 ‘‘(5) FOR FAILURE TO COMPLY WITH PATERNITY

16 ESTABLISHMENT AND CHILD SUPPORT ENFORCEMENT

17 REQUIREMENTS UNDER PART D.—

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

19 other provision of this Act, if a State’s program

20 operated under part D of this title is found as

21 a result of a review conducted under section

22 452(a)(4) of this title not to have complied sub23 stantially with the requirements of such part for

24 any quarter beginning after September 30, 1983,

25 and the Secretary determines that the State’s
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1 program is not complying substantially with

2 such requirements at the time such finding is

3 made, the amounts otherwise payable to the

4 State under section 403 for such quarter and

5 each subsequent quarter, prior to the first quar6 ter throughout which the State program is found

7 to be in substantial compliance with such re8 quirements, shall be reduced (subject to para9 graph (2)) by—

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

11 percent;

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

13 percent, if the finding is the second consecu14 tive such finding made as a result of such

15 a review; or

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

17 percent, if the finding is the third or a sub18 sequent consecutive such finding made as a

19 result of such a review.

20 ‘‘(B) SUSPENSION OF REDUCTIONS.—

21 ‘‘(i) IN GENERAL.—The reductions re22 quired under subparagraph (A) shall be sus23 pended for any quarter if—

24 ‘‘(I) the State submits a corrective

25 action plan, within a period prescribed
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1 by the Secretary following notice of the

2 finding under subparagraph (A),

3 which contains steps necessary to

4 achieve substantial compliance within

5 a time period which the Secretary

6 finds to be appropriate;

7 ‘‘(II) the Secretary approves such

8 corrective action plan (and any

9 amendments thereto) as being sufficient

10 to achieve substantial compliance; and

11 ‘‘(III) the Secretary finds that the

12 corrective action plan (and any

13 amendments approved under subclause

14 (II)) is being fully implemented by the

15 State and that the State is progressing

16 in accordance with the timetable con17 tained in the plan to achieve substan18 tial compliance with such require19 ments.

20 ‘‘(ii) CONTINUATION OF SUSPEN21 SION.—A suspension of the penalty under

22 clause (i) shall continue until such time as

23 the Secretary determines that—

24 ‘‘(I) the State has achieved sub25 stantial compliance;
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1 ‘‘(II) the State is no longer imple2 menting its corrective action plan; or

3 ‘‘(III) the State is implementing

4 or has implemented its corrective ac5 tion plan but has failed to achieve sub6 stantial compliance within the appro7 priate time period (as specified in

8 clause (i)(I)).

9 ‘‘(iii) EXCEPTIONS.—

10 ‘‘(I) ACHIEVES COMPLIANCE.—In

11 the case of a State whose penalty sus12 pension ends pursuant to clause (ii)(I),

13 the penalty shall not be applied.

14 ‘‘(II) NO LONGER IMPLEMENTING

15 CORRECTIVE ACTION PLAN.—In the

16 case of a State whose penalty suspen17 sion ends pursuant to clause (ii)(II),

18 the penalty shall be applied as if the

19 suspension had not occurred.

20 ‘‘(III) FAILURE TO ACHIEVE COM21 PLIANCE WITHIN APPROPRIATE TIME

22 PERIOD.—In the case of a State whose

23 penalty suspension ends pursuant to

24 clause (ii)(III), the penalty shall be

25 applied to all quarters ending after the
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1 expiration of the time period specified

2 in such clause and prior to the first

3 quarter throughout which the State

4 program is found to be in substantial

5 compliance.

6 ‘‘(C) DETERMINATION OF SUBSTANTIAL

7 COMPLIANCE.—For purposes of this paragraph

8 and section 452(a)(4) of this title, a State which

9 is not in full compliance with the requirements

10 of part D shall be determined to be in substan11 tial compliance with such requirements only if

12 the Secretary determines that any noncompli13 ance with such requirements is of a technical na14 ture which does not adversely affect the perform15 ance of the child support enforcement program.

16 ‘‘(6) FOR FAILURE TO TIMELY REPAY A SUPPLE17 MENTAL ASSISTANCE FOR NEEDY FAMILIES FEDERAL

18 LOAN.—If the Secretary determines that a State has

19 failed to repay any amount borrowed from the Sup20 plemental Assistance for Needy Families Federal

21 Loan Fund established under section 403(f) within

22 the period of maturity applicable to such loan, plus

23 any interest owed on such loan, then the Secretary

24 shall reduce the amount of the grant otherwise pay25 able to the State under section 403 for the imme-
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1 diately succeeding fiscal year quarter by the outstand2 ing loan amount, plus the interest owed on such out3 standing amount.

4 ‘‘(b) REQUIREMENTS.—

5 ‘‘(1) LIMITATION ON AMOUNT OF PENALTY.—

6 ‘‘(A) IN GENERAL.—In imposing the pen7 alties described in subsection (a), the Secretary

8 shall not reduce any quarterly payment to a

9 State by more than 25 percent.

10 ‘‘(B) CARRYFORWARD OF UNRECOVERED

11 PENALTIES.—To the extent that subparagraph

12 (A) prevents the Secretary from recovering dur13 ing a fiscal year the full amount of all penalties

14 imposed on a State under subsection (a) for a

15 prior fiscal year, the Secretary shall apply any

16 remaining amount of such penalties to the grant

17 otherwise payable to the State under section 403

18 for the immediately succeeding fiscal year.

19 ‘‘(2) STATE FUNDS TO REPLACE REDUCTIONS IN

20 GRANT.—A State which has a penalty imposed

21 against it under subsection (a) shall expend addi22 tional State funds in an amount equal to the amount

23 of the penalty for the purpose of providing assistance

24 under the State program under this part.
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1 ‘‘(3) REASONABLE CAUSE FOR NONCOMPLI2 ANCE.—The Secretary may not impose a penalty on

3 a State under subsection (a) if the Secretary deter4 mines that the State has reasonable cause for failing

5 to comply with a requirement for which a penalty is

6 imposed under such subsection.

7 ‘‘SEC. 407. RELIGIOUS CHARACTER AND FREEDOM.

8 ‘‘Notwithstanding any other provision of law, any reli9 gious organization participating in the State program

10 funded under this part shall retain its independence from

11 Federal, State, and local government, including such an or12 ganization’s control over the definition, development, prac13 tice, and expression of its religious beliefs. However, a reli14 gious organization participating in the State program

15 under this part shall not deny needy families and children

16 any assistance provided under this part on the basis of reli17 gion, a religious belief, or refusal to participate in a reli18 gious practice.

19 ‘‘SEC. 408. DATA COLLECTION AND REPORTING.

20 ‘‘(a) IN GENERAL.—Each State to which a grant is

21 made under section 403 for a fiscal year shall, not later

22 than 6 months after the end of fiscal year 1997, and each

23 fiscal year thereafter, transmit to the Secretary the follow24 ing aggregate information on families to which assistance
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1 was provided during the fiscal year under the State pro2 gram operated under this part:

3 ‘‘(1) The number of adults receiving such assist4 ance.

5 ‘‘(2) The number of children receiving such as6 sistance and the average age of the children.

7 ‘‘(3) The employment status of such adults, and

8 the average earnings of employed adults receiving

9 such assistance.

10 ‘‘(4) The age, race, and educational attainment

11 at the time of application for assistance of the adults

12 receiving such assistance.

13 ‘‘(5) The average amount of cash and other as14 sistance provided to the families under the program.

15 ‘‘(6) The number of months, since the most recent

16 application for assistance under the program, for

17 which such assistance has been provided to the fami18 lies.

19 ‘‘(7) The total number of months for which as20 sistance has been provided to the families under the

21 program.

22 ‘‘(8) Any other data necessary to indicate wheth23 er the State is in compliance with the plan most re24 cently submitted by the State pursuant to section 402.
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1 ‘‘(9) The components of any program carried out

2 by the State to provide employment and training ac3 tivities in order to comply with section 404 and part

4 F, and the average monthly number of adults in each

5 such component.

6 ‘‘(10) The number of part-time job placements

7 and the number of full-time job placements made

8 through the program referred to in paragraph (11),

9 the number of cases with reduced assistance, and the

10 number of cases closed due to employment.

11 ‘‘(11) The number of cases closed due to section

12 405(a).

13 ‘‘(12) The increase or decrease in the number of

14 children born out of wedlock to recipients of assist15 ance under the State program funded under this part.

16 ‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—

17 A State may comply with the requirement to provide pre18 cise numerical information described in subsection (a) by

19 submitting an estimate which is obtained through the use

20 of scientifically acceptable sampling methods.

21 ‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO COVER

22 ADMINISTRATIVE COSTS AND OVERHEAD.—The report re23 quired by subsection (a) for a fiscal year shall include a

24 statement of—
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1 ‘‘(1) the total amount and percentage of the Fed2 eral funds paid to the State under this part for the

3 fiscal year that are used to cover administrative costs

4 or overhead; and

5 ‘‘(2) the total amount of State funds that are

6 used to cover such costs or overhead.

7 ‘‘(d) REPORT ON STATE EXPENDITURES ON PRO8 GRAMS FOR NEEDY FAMILIES.—The report required by sub9 section (a) for a fiscal year shall include a statement of

10 the total amount expended by the State during the fiscal

11 year on the program under this part and the purposes for

12 which such amount was spent.

13 ‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI14 PATING IN WORK ACTIVITIES.—The report required by sub15 section (a) for a fiscal year shall include the number of

16 noncustodial parents in the State who participated in work

17 activities during the fiscal year.

18 ‘‘(f) REPORT ON CHILD SUPPORT COLLECTED.—The

19 report required by subsection (a) for a fiscal year shall in20 clude the total amount of child support collected by the

21 State agency administering the State program under part

22 D on behalf of a family receiving assistance under this part.

23 ‘‘(g) REPORT ON CHILD CARE.—The report required

24 by subsection (a) for a fiscal year shall include the total

25 amount expended by the State for child care under the pro-
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1 gram under this part, along with a description of the types

2 of child care provided, including—

3 ‘‘(1) child care provided in the case of a family

4 that has ceased to receive assistance under this part

5 because of employment; or

6 ‘‘(2) child care provided in the case of a family

7 that is not receiving assistance under this part but

8 would be at risk of becoming eligible for such assist9 ance if child care was not provided.

10 ‘‘(h) REPORT ON TRANSITIONAL SERVICES.—The re11 port required by subsection (a) for a fiscal year shall in12 clude the total amount expended by the State for providing

13 transitional services to a family that has ceased to receive

14 assistance under this part because of employment, along

15 with a description of such services.

16 ‘‘SEC. 409. RESEARCH, EVALUATIONS, AND NATIONAL STUD17 IES.

18 ‘‘(a) RESEARCH.—The Secretary may conduct re19 search on the effects and costs of State programs funded

20 under this part.

21 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE

22 APPROACHES TO EMPLOYING WELFARE RECIPIENTS.—The

23 Secretary may assist States in developing, and shall evalu24 ate, innovative approaches to employing recipients of assist25 ance under programs funded under this part. In performing
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1 such evaluations, the Secretary shall, to the maximum ex2 tent feasible, use random assignment to experimental and

3 control groups.

4 ‘‘(c) STUDIES OF WELFARE CASELOADS.—The Sec5 retary may conduct studies of the caseloads of States operat6 ing programs funded under this part.

7 ‘‘(d) DISSEMINATION OF INFORMATION.—The Sec8 retary shall develop innovative methods of disseminating

9 information on any research, evaluations, and studies con10 ducted under this section, including the facilitation of the

11 sharing of information and best practices among States and

12 localities through the use of computers and other tech13 nologies.

14 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF

15 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

16 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec17 retary shall rank annually the States to which grants

18 are paid under section 403 in the order of their suc19 cess in moving recipients of assistance under the

20 State program funded under this part into long-term

21 private sector jobs.

22 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUC23 CESSFUL WORK PROGRAMS.—The Secretary shall re24 view the programs of the 3 States most recently

25 ranked highest under paragraph (1) and the 3 States
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1 most recently ranked lowest under paragraph (1) that

2 provide parents with work experience, assistance in

3 finding employment, and other work preparation ac4 tivities and support services to enable the families of

5 such parents to leave the program and become self-suf6 ficient.

7 ‘‘(f) STUDY ON ALTERNATIVE OUTCOMES MEAS8 URES.—

9 ‘‘(1) STUDY.—The Secretary shall, in coopera10 tion with the States, study and analyze outcomes

11 measures for evaluating the success of a State in mov12 ing individuals out of the welfare system through em13 ployment as an alternative to the minimum partici14 pation rates described in section 404. The study shall

15 include a determination as to whether such alter16 native outcomes measures should be applied on a na17 tional or a State-by-State basis.

18 ‘‘(2) REPORT.—Not later than September 30,

19 1998, the Secretary shall submit to the Committee on

20 Finance of the Senate and the Committee on Ways

21 and Means of the House of Representatives a report

22 containing the findings of the study described in

23 paragraph (1).
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1 ‘‘SEC. 410. STUDY BY THE CENSUS BUREAU.

2 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

3 expand the Survey of Income and Program Participation

4 as necessary to obtain such information as will enable in5 terested persons to evaluate the impact of the amendments

6 made by titles I and II of the Family Self-Sufficiency Act

7 of 1995 on a random national sample of recipients of assist8 ance under State programs funded under this part and (as

9 appropriate) other low-income families, and in doing so,

10 shall pay particular attention to the issues of out-of-wedlock

11 births, welfare dependency, the beginning and end of welfare

12 spells, and the causes of repeat welfare spells.

13 ‘‘(b) APPROPRIATION.—Out of any money in the

14 Treasury of the United States not otherwise appropriated,

15 the Secretary of the Treasury shall pay to the Bureau of

16 the Census $10,000,000 for each of fiscal years 1996, 1997,

17 1998, 1999, and 2000 to carry out subsection (a).

18 ‘‘SEC. 411. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

19 ‘‘The programs under this part, part D, and part F

20 of this title shall be administered by an Assistant Secretary

21 for Family Support within the Department of Health and

22 Human Services, who shall be appointed by the President,

23 by and with the advice and consent of the Senate, and who

24 shall be in addition to any other Assistant Secretary of

25 Health and Human Services provided for by law.
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1 ‘‘SEC. 412. STATE DEMONSTRATION PROGRAMS.

2 ‘‘Nothing in this part shall be construed as limiting

3 a State’s ability to conduct demonstration projects for the

4 purpose of identifying innovative or effective program de5 signs in 1 or more political subdivisions of the State.

6 ‘‘SEC. 413. NO INDIVIDUAL ENTITLEMENT.

7 ‘‘Notwithstanding any other provision of law, no indi8 vidual is entitled to any assistance under this part or any

9 service under part F.’’.

10 SEC. 102. REPORT ON DATA PROCESSING.

11 (a) IN GENERAL.—Not later than 6 months after the

12 date of the enactment of this Act, the Secretary of Health

13 and Human Services shall prepare and submit to the Con14 gress a report on—

15 (1) the status of the automated data processing

16 systems operated by the States to assist management

17 in the administration of State programs under part

18 A of title IV of the Social Security Act (whether in

19 effect before or after October 1, 1995); and

20 (2) what would be required to establish a system

21 capable of—

22 (A) tracking participants in public pro23 grams over time; and

24 (B) checking case records of the States to de25 termine whether individuals are participating in

26 public programs in 2 or more States.
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1 (b) PREFERRED CONTENTS.—The report required by

2 subsection (a) should include—

3 (1) a plan for building on the automated data

4 processing systems of the States to establish a system

5 with the capabilities described in subsection (a)(2);

6 and

7 (2) an estimate of the amount of time required

8 to establish such a system and of the cost of establish9 ing such a system.

10 SEC. 103. CONTINUED APPLICATION OF CURRENT STAND11 ARDS UNDER MEDICAID PROGRAM.

12 (a) IN GENERAL.—Title XIX (42 U.S.C. 1396 et seq.)

13 is amended—

14 (1) in section 1931, by inserting ‘‘subject to sec15 tion 1931(a),’’ after ‘‘under this title,’’ and by redes16 ignating such section as section 1932; and

17 (2) by inserting after section 1930 the following

18 new section:

19 ‘‘CONTINUED APPLICATION OF AFDC STANDARDS

20 ‘‘SEC. 1931. (a) For purposes of applying this title on

21 and after October 1, 1995, with respect to a State—

22 ‘‘(1) except as provided in paragraph (2), any

23 reference in this title (or other provision of law in re24 lation to the operation of this title) to a provision of

25 part A of title IV of this Act, or a State plan under

26 such part, shall be considered a reference to such pro-
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1 vision or plan as in effect as of June 1, 1995, with

2 respect to the State and eligibility for medical assist3 ance under this title shall be determined as if such

4 provision or plan (as in effect as of such date) had

5 remained in effect on and after October 1, 1995; and

6 ‘‘(2) any reference in section 1902(a)(5) or

7 1902(a)(55) to a State plan approved under part A

8 of title IV shall be deemed a reference to a State pro9 gram funded under such part (as in effect on and

10 after October 1, 1995).

11 ‘‘(b) In the case of a waiver of a provision of part

12 A of title IV in effect with respect to a State as of June

13 1, 1995, if the waiver affects eligibility of individuals for

14 medical assistance under this title, such waiver may, at the

15 option of the State, continue to be applied in relation to

16 this title after the date the waiver would otherwise expire.’’.

17 (b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.

18 1396a(a)) is amended—

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

20 (61);

21 (2) by striking the period at the end of para22 graph (62) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (62) the follow24 ing new paragraph:
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1 ‘‘(63) provide for continuing to administer eligi2 bility standards with respect to individuals who are

3 (or seek to be) eligible for medical assistance based on

4 the application of section 1931.’’.

5 (c) CONFORMING AMENDMENTS.—(1) Section 1902(c)

6 (42 U.S.C. 1396a(c)) is amended by striking ‘‘if—’’ and

7 all that follows and inserting the following: ‘‘if the State

8 requires individuals described in subsection (l)(1) to apply

9 for assistance under the State program funded under part

10 A of title IV as a condition of applying for or receiving

11 medical assistance under this title.’’.

12 (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended

13 by striking paragraph (9).

14 (d) EFFECTIVE DATE.—The amendments made by this

15 section shall apply to medical assistance furnished for cal16 endar quarters beginning on or after October 1, 1995.

17 SEC. 104. WAIVERS.

18 (a) CONTINUATION OF WAIVERS.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), if any waiver granted to a State under sec21 tion 1115 of the Social Security Act or otherwise

22 which relates to the provision of assistance under a

23 State plan under part A of title IV of such Act (42

24 U.S.C. 1396 et seq.), is in effect or approved by the

25 Secretary of Health and Human Services (in this sec-
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1 tion referred to as the ‘‘Secretary’’) as of October 1,

2 1995, the amendments made by this Act shall not

3 apply with respect to the State before the expiration

4 (determined without regard to any extensions) of the

5 waiver to the extent such amendments are inconsist6 ent with the terms of the waiver.

7 (2) FINANCING LIMITATION.—Notwithstanding

8 any other provision of law, beginning with fiscal year

9 1996, a State operating under a waiver described in

10 paragraph (1) shall receive the payment described for

11 such State for such fiscal year under section 403 of

12 the Social Security Act, as added by section 101, in

13 lieu of any other payment provided for in the waiver.

14 (b) STATE OPTION TO TERMINATE WAIVER.—

15 (1) IN GENERAL.—A State may terminate a

16 waiver described in subsection (a) before the expira17 tion of the waiver.

18 (2) REPORT.—A State which terminates a waiv19 er under paragraph (1) shall submit a report to the

20 Secretary summarizing the waiver and any available

21 information concerning the result or effect of such

22 waiver.

23 (3) HOLD HARMLESS PROVISION.—

24 (A) IN GENERAL.—A State that, not later

25 than the date described in subparagraph (B),
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1 submits a written request to terminate a waiver

2 described in subsection (a) shall be held harmless

3 for accrued cost neutrality liabilities incurred

4 under the terms and conditions of such waiver.

5 (B) DATE DESCRIBED.—The date described

6 in this subparagraph is the later of—

7 (i) January 1, 1996; or

8 (ii) 90 days following the adjournment

9 of the first regular session of the State legis10 lature that begins after the date of the en11 actment of this Act.

12 (c) SECRETARIAL ENCOURAGEMENT OF CURRENT

13 WAIVERS.—The Secretary shall encourage any State oper14 ating a waiver described in subsection (a) to continue such

15 waiver and to evaluate, using random sampling and other

16 characteristics of accepted scientific evaluations, the result

17 or effect of such waiver.

18 SEC. 105. DEEMED INCOME REQUIREMENT FOR FEDERAL

19 AND FEDERALLY FUNDED PROGRAMS UNDER

20 THE SOCIAL SECURITY ACT.

21 (a) IN GENERAL.—Part A of title XI (42 U.S.C. 1301–

22 1320b–14) is amended by adding at the end the following

23 new section:
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1 ‘‘DEEMED INCOME REQUIREMENT FOR FEDERAL AND

2 FEDERALLY FUNDED PROGRAMS

3 ‘‘SEC. 1145. (a) DEEMING REQUIREMENT FOR FED4 ERAL AND FEDERALLY FUNDED PROGRAMS.—For purposes

5 of determining the eligibility of an individual (whether a

6 citizen or national of the United States or an alien) for

7 assistance, and the amount of assistance, under any Federal

8 program of assistance authorized under this Act, or any

9 program of assistance authorized under this Act funded in

10 whole or in part by the Federal Government for which eligi11 bility is based on need, the income and resources described

12 in subsection (b) shall, notwithstanding any other provision

13 of law, be deemed to be the income and resources of such

14 individual.

15 ‘‘(b) DEEMED INCOME AND RESOURCES.—The income

16 and resources described in this subsection include the follow17 ing:

18 ‘‘(1) The income and resources of any person

19 who, as a sponsor of such individual’s entry into the

20 United States (or in order to enable such individual

21 lawfully to remain in the United States), executed an

22 affidavit of support or similar agreement with respect

23 to such individual.

24 ‘‘(2) The income and resources of such sponsor’s

25 spouse.
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1 ‘‘(c) LENGTH OF DEEMED INCOME PERIOD.—The re2 quirement of subsection (a) shall apply for the period for

3 which the sponsor has agreed, in such affidavit or agree4 ment, to provide support for such individual, or for a pe5 riod of 5 years beginning on the date such individual was

6 first lawfully in the United States after the execution of

7 such affidavit or agreement, whichever period is longer.

8 ‘‘(d) DEEMED INCOME AUTHORITY TO STATE AND

9 LOCAL AGENCIES.—

10 ‘‘(1) IN GENERAL.—For purposes of determining

11 the eligibility of an individual (whether a citizen or

12 national of the United States or an alien) for assist13 ance, and the amount of assistance, under any State

14 or local program of assistance authorized under this

15 Act for which eligibility is based on need, or any

16 need-based program of assistance authorized under

17 this Act and administered by a State or local govern18 ment other than a program described in subsection

19 (a), the State or local government may, notwithstand20 ing any other provision of law, require that the in21 come and resources described in subsection (b) be

22 deemed to be the income and resources of such indi23 vidual.

24 ‘‘(2) LENGTH OF DEEMING PERIOD.—A State or

25 local government may impose a requirement described
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1 in paragraph (1) for the period described in sub2 section (c).’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 1621 (42 U.S.C. 1382j) is repealed.

5 (2) Section 1614(f)(3) (42 U.S.C. 1382c(f)(3)) is

6 amended by striking ‘‘section 1621’’ and inserting

7 ‘‘section 1145’’.

8 SEC. 106. CONFORMING AMENDMENTS TO THE SOCIAL SE9 CURITY ACT.

10 (a) AMENDMENTS TO TITLE II.—

11 (1) Section 205(c)(2)(C)(vi) (42 U.S.C.

12 405(c)(2)(C)(vi)), as so redesignated by section

13 321(a)(9)(B) of the Social Security Independence and

14 Program Improvements Act of 1994, is amended—

15 (A) by inserting ‘‘an agency administering

16 a program funded under part A of title IV or’’

17 before ‘‘an agency operating’’; and

18 (B) by striking ‘‘A or D of title IV of this

19 Act’’ and inserting ‘‘D of such title’’.

20 (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is

21 amended by inserting ‘‘under a State program funded

22 under’’ before ‘‘part A of title IV’’.

23 (b) AMENDMENT TO PART B OF TITLE IV.—Section

24 422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking
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1 ‘‘under the State plan approved’’ and inserting ‘‘under the

2 State program funded.’’.

3 (c) AMENDMENTS TO PART D OF TITLE IV.—

4 (1) Section 451 (42 U.S.C. 651) is amended by

5 striking ‘‘aid’’ and inserting ‘‘assistance under a

6 State program funded’’.

7 (2) Section 452(a)(10)(C) (42 U.S.C.

8 652(a)(10)(C)) is amended—

9 (A) by striking ‘‘aid to families with de10 pendent children’’ and inserting ‘‘assistance

11 under a State program funded under part A’’;

12 and

13 (B) by striking ‘‘such aid’’ and inserting

14 ‘‘such assistance’’; and

15 (C) by striking ‘‘402(a)(26) or’’.

16 (3) Section 452(a)(10)(F) (42 U.S.C.

17 652(a)(10)(F)) is amended—

18 (A) by striking ‘‘aid under a State plan ap19 proved’’ and inserting ‘‘assistance under a State

20 program funded’’; and

21 (B) by striking ‘‘in accordance with the

22 standards referred to in section

23 402(a)(26)(B)(ii)’’ and inserting ‘‘by the State’’.

24 (4) Section 452(b) (42 U.S.C. 652(b)) is amend25 ed in the first sentence by striking ‘‘aid under the
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1 State plan approved under part A’’ and inserting

2 ‘‘assistance under a State program funded under part

3 A’’.

4 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

5 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

6 and inserting ‘‘1115(b)’’.

7 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

8 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

9 being paid under the State’s plan approved under

10 part A or E’’ and inserting ‘‘assistance is being pro11 vided under the State program funded under part A

12 or aid is being paid under the State’s plan approved

13 under part E’’.

14 (7) Section 452(g)(2)(A) (42 U.S.C.

15 652(g)(2)(A)) is amended in the matter following

16 clause (iii) by striking ‘‘aid was being paid under the

17 State’s plan approved under part A or E’’ and insert18 ing ‘‘assistance was being provided under the State

19 program funded under part A or aid was being paid

20 under the State’s plan approved under part E’’.

21 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

22 amended in the matter following subparagraph (B)—

23 (A) by striking ‘‘who is a dependent child

24 by reason of the death of a parent’’ and inserting

25 ‘‘with respect to whom assistance is being pro-
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1 vided under the State program funded under

2 part A’’;

3 (B) by inserting ‘‘by the State agency ad4 ministering the State plan approved under this

5 part’’ after ‘‘found’’; and

6 (C) by striking ‘‘under section 402(a)(26)’’

7 and inserting ‘‘with the State in establishing pa8 ternity’’.

9 (9) Section 452(h) (42 U.S.C. 652(h)) is amend10 ed by striking ‘‘under section 402(a)(26)’’.

11 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

12 amended by striking ‘‘aid’’ and inserting ‘‘assistance

13 under a State program funded’’.

14 (11) Section 454 (42 U.S.C. 654)) is amended—

15 (A) in paragraph (5)(A)—

16 (i) by striking ‘‘under section

17 402(a)(26)’’; and

18 (ii) by striking ‘‘except that this para19 graph shall not apply to such payments for

20 any month following the first month in

21 which the amount collected is sufficient to

22 make such family ineligible for assistance

23 under the State plan approved under part

24 A;’’; and
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1 (B) in paragraph (6)(D), by striking ‘‘aid

2 under a State plan approved’’ and inserting ‘‘as3 sistance under a State program funded’’.

4 (12) Section 456 (42 U.S.C. 656) is amended by

5 striking ‘‘under section 402(a)(26)’’ each place it ap6 pears.

7 (13) Section 466(a)(3)(B) (42 U.S.C.

8 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)

9 or’’.

10 (14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

11 amended by striking ‘‘aid’’ and inserting ‘‘assistance

12 under a State program funded’’.

13 (15) Section 469(a) (42 U.S.C. 669(a)) is

14 amended—

15 (A) by striking ‘‘aid under plans approved’’

16 and inserting ‘‘assistance under State programs

17 funded’’; and

18 (B) by striking ‘‘such aid’’ and inserting

19 ‘‘such assistance’’.

20 (d) AMENDMENTS TO PART E OF TITLE IV.—

21 (1) Section 470 (42 U.S.C. 670) is amended by

22 striking ‘‘the State’s plan approved’’ and inserting ‘‘a

23 State program funded’’.

24 (2) Section 471(17) (42 U.S.C. 671(17)) is

25 amended by striking ‘‘plans approved under parts A
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1 and D’’ and inserting ‘‘program funded under part A

2 and plan approved under part D’’.

3 (3) Section 472(a) (42 U.S.C. 672(a)) is amend4 ed—

5 (A) in the matter preceding paragraph (1),

6 by striking ‘‘would meet the requirements of sec7 tion 406(a) or of section 407 but for his removal

8 from the home of a relative (specified in section

9 406(a))’’ and inserting ‘‘would be a minor child

10 in a needy family under the State program

11 funded under part A but for the child’s removal

12 from the home of the child’s custodial parent or

13 caretaker relative.’; and

14 (B) in paragraph (4)—

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

16 ‘‘aid under a State plan approved under

17 section 402’’ and inserting ‘‘assistance

18 under a State program funded under part

19 A’’; and

20 (ii) in subparagraph (B)—

21 (I) in clause (i), by striking ‘‘aid’’

22 and inserting ‘‘assistance’’; and

23 (II) in clause (ii), by striking

24 ‘‘relative specified in section 406(a)’’
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1 and inserting ‘‘the child’s custodial

2 parent or caretaker relative’’.

3 (4) Section 472(h) (42 U.S.C. 672(h)) is amend4 ed to read as follows:

5 ‘‘(h)(1) For purposes of title XIX, any child with re6 spect to whom foster care maintenance payments are made

7 under this section shall be deemed to be a dependent child

8 as defined in section 406 (as in effect as of June 1, 1995)

9 and shall be deemed to be a recipient of aid to families

10 with dependent children under part A of this title (as so

11 in effect). For purposes of title XX, any child with respect

12 to whom foster care maintenance payments are made under

13 this section shall be deemed to be a minor child in a needy

14 family under a State program funded under part A and

15 shall be deemed to be a recipient of assistance under such

16 part.

17 ‘‘(2) For purposes of paragraph (1), a child whose costs

18 in a foster family home or child care institution are covered

19 by the foster care maintenance payments being made with

20 respect to the child’s minor parent, as provided in section

21 475(4)(B), shall be considered a child with respect to whom

22 foster care maintenance payments are made under this sec23 tion.’’.

24 (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is

25 amended—
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1 (A) in subparagraph (A)(i)—

2 (i) by striking ‘‘met the requirements

3 of section 406(a) or section 407’’ and all

4 that follows through ‘‘specified in section

5 406(a)),’’ and inserting ‘‘was a minor child

6 in a needy family under the State program

7 funded under part A or would have met

8 such a standard except for the child’s re9 moval from the home of the child’s custodial

10 parent or caretaker relative,’’ ; and

11 (ii) by striking ‘‘(or 403)’’;

12 (B) in subparagraph (B)(i), by striking

13 ‘‘aid under the State plan approved under sec14 tion 402’’ and inserting ‘‘assistance under the

15 State program funded under part A’’;

16 (C) in subparagraph (B)(ii)—

17 (i) in subclause (I), by striking ‘‘aid’’

18 and inserting ‘‘assistance’’; and

19 (ii) in subclause (II)—

20 (I) by striking ‘‘a relative speci21 fied in section 406(a)’’ and inserting

22 ‘‘the child’s custodial parent or care23 taker relative’’; and
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1 (II) by striking ‘‘aid’’ each place

2 such term appears and inserting ‘‘as3 sistance’’.

4 (6) Section 473(b) (42 U.S.C. 673(b)) is amend5 ed to read as follows:

6 ‘‘(b)(1) For purposes of title XIX, any child who is

7 described in paragraph (3) shall be deemed to be a depend8 ent child as defined in section 406 (as in effect as of June

9 1, 1995) and shall be deemed to be a recipient of aid to

10 families with dependent children under part A of this title

11 (as so in effect) in the State where such child resides.

12 ‘‘(2) For purposes of title XX, any child who is de13 scribed in paragraph (3) shall be deemed to be a minor

14 child in a needy family under a State program funded

15 under part A and shall be deemed to be a recipient of assist16 ance under such part.

17 ‘‘(3) A child described in this paragraph is any

18 child—

19 ‘‘(A)(i) who is a child described in sub20 section (a)(2), and

21 ‘‘(ii) with respect to whom an adoption as22 sistance agreement is in effect under this section

23 (whether or nor adoption assistance payments

24 are provided under the agreement or are being

25 made under this section), including any such
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1 child who has been placed for adoption in ac2 cordance with applicable State and local law

3 (whether or not an interlocutory or other judicial

4 decree of adoption has been issued), or

5 ‘‘(B) with respect to whom foster care main6 tenance payments are being made under section

7 472.

8 ‘‘(4) For purposes of paragraphs (1) and (2), a child

9 whose costs in a foster family home or child-care institution

10 are covered by the foster care maintenance payments being

11 made with respect to the child’s minor parent, as provided

12 in section 475(4)(B), shall be considered a child with re13 spect to whom foster care maintenance payments are being

14 made under section 472.’’.

15 (e) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42

16 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to families

17 with dependent children under the State plan approved

18 under section 402 of this Act’’ and inserting ‘‘assistance

19 under a State program funded under part A of title IV’’.

20 (f) AMENDMENTS TO TITLE XI.—

21 (1) Section 1109 (42 U.S.C. 1309) is amended

22 by striking ‘‘or part A of title IV,’’.

23 (2) Section 1115 (42 U.S.C. 1315) is amended—

24 (A) in subsection (a)(2)—

25 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
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1 (ii) by striking ‘‘403,’’;

2 (iii) by striking the period at the end

3 and inserting ‘‘, and’’; and

4 (iv) by adding at the end the following

5 new subparagraph:

6 ‘‘(B) costs of such project which would not other7 wise be a permissible use of funds under part A of

8 title IV and which are not included as part of the

9 costs of projects under section 1110, shall to the extent

10 and for the period prescribed by the Secretary, be re11 garded as a permissible use of funds under such

12 part.’’; and

13 (B) in subsection (c)(3), by striking ‘‘under

14 the program of aid to families with dependent

15 children’’ and inserting ‘‘part A of such title’’.

16 (3) Section 1116 (42 U.S.C. 1316) is amended—

17 (A) in each of subsections (a)(1), (b), and

18 (d), by striking ‘‘or part A of title IV,’’; and

19 (B) in subsection (a)(3), by striking ‘‘404,’’.

20 (4) Section 1118 (42 U.S.C. 1318) is amended—

21 (A) by striking ‘‘403(a),’’;

22 (B) by striking ‘‘and part A of title IV,’’;

23 and
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1 (C) by striking ‘‘, and shall, in the case of

2 American Samoa, mean 75 per centum with re3 spect to part A of title IV’’.

4 (5) Section 1119 (42 U.S.C. 1319) is amended—

5 (A) by striking ‘‘or part A of title IV’’; and

6 (B) by striking ‘‘403(a),’’.

7 (6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

8 amended by striking ‘‘or part A of title IV,’’.

9 (7) Section 1136 (42 U.S.C. 1320b–6) is re10 pealed.

11 (8) Section 1137 (42 U.S.C. 1320b–7) is amend12 ed—

13 (A) in subsection (b), by striking paragraph

14 (1) and inserting the following:

15 ‘‘(1) any State program funded under part A of

16 title IV of this Act;’’; and

17 (B) in subsection (d)(1)(B)—

18 (i) by striking ‘‘In this subsection—’’

19 and all that follows through ‘‘(ii) in’’ and

20 inserting ‘‘In this subsection, in’’;

21 (ii) by redesignating subclauses (I),

22 (II), and (III) as clauses (i), (ii), and (iii);

23 and

24 (iii) by moving such redesignated ma25 terial 2 ems to the left.
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1 (g) AMENDMENT TO TITLE XIV.—Section 1402(a)(7)

2 (42 U.S.C. 1352(a)(7)) is amended by striking ‘‘aid to fam3 ilies with dependent children under the State plan approved

4 under section 402 of this Act’’ and inserting ‘‘assistance

5 under a State program funded under part A of title IV’’.

6 (h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

7 RESPECT TO THE TERRITORIES.—Section 1602(a)(11), as

8 in effect without regard to the amendment made by section

9 301 of the Social Security Amendments of 1972 (42 U.S.C.

10 1382 note), is amended by striking ‘‘aid under the State

11 plan approved’’ and inserting ‘‘assistance under a State

12 program funded’’.

13 (i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

14 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42

15 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

16 a State program funded under part A of title IV,’’.

17 SEC. 107. CONFORMING AMENDMENTS TO THE FOOD STAMP

18 ACT OF 1977 AND RELATED PROVISIONS.

19 (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C.

20 2014) is amended—

21 (1) in the second sentence of subsection (a), by

22 striking ‘‘a State plan approved’’ and inserting ‘‘a

23 State program funded’’;

24 (2) in subsection (d)(5)—
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1 (A) by striking ‘‘assistance to families with

2 dependent children’’ and inserting ‘‘assistance

3 under a State program funded’’; and

4 (B) by striking paragraph (13) and redesig5 nating paragraphs (14), (15), and (16) as para6 graphs (13), (14), and (15), respectively;

7 (3) in subsection (j), by striking ‘‘a State plan

8 approved’’ and inserting ‘‘a State program funded’’;

9 and

10 (4) in subsection (k)(1)(A), by striking ‘‘a regu11 lar benefit payable to the household for living ex12 penses under a State plan for aid to families with de13 pendent children approved’’ and inserting ‘‘assistance

14 payable to the household under a State program fund15 ed’’.

16 (b) Section 6 of such Act (7 U.S.C. 2015) is amend17 ed—

18 (1) in subsection (c)(5), by striking ‘‘the State

19 plan approved’’ and inserting ‘‘the State program

20 funded’’;

21 (2) in subsection (d)(4)—

22 (A) in subparagraph (B)(i), by striking ‘‘in

23 subparagraphs (A) and (B) of section 402(a)(35)

24 of part A of title IV of the Social Security Act’’

25 and inserting ‘‘under the State program funded
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1 under part A of title IV of the Social Security

2 Act’’;

3 (B) in subparagraph (I)(i)(II), by striking

4 ‘‘benefits under part A’’ and inserting ‘‘assist5 ance under a State program funded under part

6 A’’; and

7 (C) in subparagraph (L)(ii) by striking

8 ‘‘training’’; and

9 (3) in subsection (e)(6), by striking ‘‘aid to fami10 lies with dependent children’’ and inserting ‘‘assist11 ance under a State program funded’’.

12 (c) Section 8(e) of such Act (7 U.S.C. 2017(e)) is

13 amended—

14 (1) in paragraph (1)(A)(i), by striking ‘‘aid to

15 families with dependent children’’ and inserting ‘‘as16 sistance under a State program’’;

17 (2) in paragraph (2)(A)(ii)(I), by striking ‘‘ben18 efits paid to such household under a State plan for

19 aid to families with dependent children approved’’

20 and inserting ‘‘assistance paid to such household

21 under a State program funded’’; and

22 (3) in paragraph (3), by striking ‘‘such aid to

23 families with dependent children’’ and inserting ‘‘the

24 assistance under a State program funded under part

25 A of title IV of the Social Security Act’’.
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1 (d) Section 11 of such Act (7 U.S.C. 2020) is amend2 ed—

3 (1) in subsection (e)(2), by striking ‘‘the aid to

4 families with dependent children program’’ and in5 serting ‘‘the State program funded’’; and

6 (2) in subsection (i)(1), by striking ‘‘the aid to

7 families with dependent children program’’ and in8 serting ‘‘the State program funded’’.

9 (e) 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 (f) Section 17 of such Act (7 U.S.C. 2026) is amend14 ed—

15 (1) in subsection (b)—

16 (A) the first sentence of paragraph (1)(A),

17 by striking ‘‘aid to families with dependent chil18 dren’’ and inserting ‘‘assistance under a State

19 program funded’’; and

20 (B) in paragraph (3)—

21 (i) in the first sentence of subpara22 graph (B), by striking ‘‘aid to families with

23 dependent children under part F of title IV

24 of the Social Security Act (42 U.S.C. 681 et

25 seq.)’’ and inserting ‘‘assistance under part
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1 A of title IV of the Social Security Act (42

2 U.S.C. 601 et seq.)’’;

3 (ii) in subparagraph (C)—

4 (II) in the first sentence, by strik5 ing ‘‘subsections (a)(19) and (g)’’ and

6 all that follows through ‘‘section

7 402(g)(1)(A)) and’’; and

8 (III) in the second sentence, by

9 striking ‘‘ ‘aid to families with depend10 ent children’ ’’ and inserting ‘‘ ‘assist11 ance under the State program funded

12 under part A’ ’’; and

13 (iii) in subparagraph (E), by striking

14 ‘‘the provisions of section 402, and sections

15 481 through 487,’’ and inserting ‘‘sections

16 481 through 487’’; and

17 (2) in subsection (i)—

18 (A) in paragraph (1), by striking ‘‘benefits

19 under a State plan’’ and all that follows through

20 ‘‘and without regard’’ and inserting ‘‘assistance

21 under a State program funded under part A of

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

23 601 et seq.) (referred to in this subsection as an

24 ‘eligible household’) shall be issued monthly allot-
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•HR 4 RS

1 ments following the rules and procedures of the

2 program, and without regard’’; and

3 (B) in paragraph (2)—

4 (i) in subparagraph (D)—

5 (I) in the first sentence, by strik6 ing ‘‘benefit provided under’’ and in7 serting ‘‘assistance provided under a

8 State program funded under’’; and

9 (II) in the first sentence, by strik10 ing ‘‘section 402(a)(7)(C)’’ and all that

11 follows to the end period and inserting

12 ‘‘any nonrecurring lump-sum income

13 and income deemed or allocated to the

14 household under the State program

15 funded under such part’’; and

16 (ii) in subparagraph (E)—

17 (I) in the first sentence, by strik18 ing ‘‘section 402(a)(8) of the Social Se19 curity Act (42 U.S.C. 602(a)(8))’’ and

20 inserting ‘‘the State program funded

21 under part A of title IV of the Social

22 Security Act’’; and

23 (II) in the second sentence, by

24 striking ‘‘the earned income disregards

25 provided under 402(a)(8) of the Social
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1 Security Act’’ and inserting ‘‘any

2 earned income disregards provided

3 under the State program funded under

4 such part’’.

5 (g) Section 5(h)(1) of the Agriculture and Consumer

6 Protection Act of 1973 (Public Law 93–186; 7 U.S.C. 612c

7 note) is amended by striking ‘‘the program for aid to fami8 lies with dependent children’’ and inserting ‘‘the State pro9 gram funded’’.

10 (h) Section 9 of the National School Lunch Act (42

11 U.S.C. 1758) is amended—

12 (1) in subsection (b)—

13 (A) in paragraph (2)(C)(ii)(II), by striking

14 ‘‘program for aid to families with dependent

15 children’’ and inserting ‘‘State program funded’’;

16 and

17 (B) in paragraph (6)—

18 (i) in subparagraph (A)(ii), by strik19 ing ‘‘an AFDC assistance unit (under the

20 aid to families with dependent children pro21 gram authorized’’ and inserting ‘‘a family

22 (under the State program funded’’; and

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

24 ‘‘aid to families with dependent children’’

25 and inserting ‘‘assistance under the State
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1 program funded under part A of title IV of

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

3 seq.)’’; and

4 (2) in subsection (d)(2)(C), by striking ‘‘program

5 for aid to families with dependent children’’ and in6 serting ‘‘State program funded’’.

7 (i) Section 17 of the Child Nutrition Act of 1966 (42

8 U.S.C. 1786) is amended—

9 (1) in subsection (d)(2)(A)(ii)(II), by striking

10 ‘‘program for aid to families with dependent children

11 established’’ and inserting ‘‘State program funded’’;

12 (2) in subsection (e)(4)(A), by striking ‘‘program

13 for aid to families with dependent children’’ and in14 serting ‘‘State program funded’’; and

15 (3) in subsection (f)(1)(C)(iii), by striking ‘‘aid

16 to families with dependent children,’’ and inserting

17 ‘‘State program funded under part A of title IV of the

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

19 the’’.

20 SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.

21 (a) Subsection (b) of section 508 of the Unemployment

22 Compensation Amendments of 1976 (Public Law 94–566;

23 90 Stat. 2689) is amended to read as follows:

24 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX25 PENSES.—For purposes of section 455 of the Social Security
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1 Act, expenses incurred to reimburse State employment of2 fices for furnishing information requested of such offices—

3 ‘‘(1) pursuant to the third sentence of section

4 3(a) of the Act entitled ‘An Act to provide for the es5 tablishment of a national employment system and for

6 cooperation with the States in the promotion of such

7 system, and for other purposes’, approved June 6,

8 1933 (29 U.S.C. 49b(a)), or

9 ‘‘(2) by a State or local agency charged with the

10 duty of carrying a State plan for child support ap11 proved under part D of title IV of the Social Security

12 Act,

13 shall be considered to constitute expenses incurred in the

14 administration of such State plan.’’.

15 (b) Section 9121 of the Omnibus Budget Reconcili16 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

17 (c) Section 9122 of the Omnibus Budget Reconciliation

18 Act of 1987 (42 U.S.C. 602 note) is repealed.

19 (d) Section 221 of the Housing and Urban-Rural Re20 covery Act of 1983 (42 U.S.C. 602 note), relating to treat21 ment under AFDC of certain rental payments for federally

22 assisted housing, is repealed.

23 (e) Section 159 of the Tax Equity and Fiscal Respon24 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.
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1 (f) Section 202(d) of the Social Security Amendments

2 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

3 (g) Section 233 of the Social Security Act Amendments

4 of 1994 (42 U.S.C. 602 note) is repealed.

5 (h) Section 903 of the Stewart B. McKinney Homeless

6 Assistance Amendments Act of 1988 (42 U.S.C. 11381 note),

7 relating to demonstration projects to reduce number of

8 AFDC families in welfare hotels, is amended—

9 (1) in subsection (a), by striking ‘‘aid to families

10 with dependent children under a State plan ap11 proved’’ and inserting ‘‘assistance under a State pro12 gram funded’’; and

13 (2) in subsection (c), by striking ‘‘aid to families

14 with dependent children in the State under a State

15 plan approved’’ and inserting ‘‘assistance in the State

16 under a State program funded’’.

17 (i) The Higher Education Act of 1965 (20 U.S.C. 1001

18 et seq.) is amended—

19 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

20 23(c)(3)), by striking ‘‘(Aid to Families with Depend21 ent Children)’’; and

22 (2) in section 480(b)(2) (20 U.S.C.

23 1087vv(b)(2)), by striking ‘‘aid to families with de24 pendent children under a State plan approved’’ and

25 inserting ‘‘assistance under a State program funded’’.
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1 (j) The Carl D. Perkins Vocational and Applied Tech2 nology Education Act (20 U.S.C. 2301 et seq.) is amend3 ed—

4 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

5 2341(d)(3)(A)(ii)), by striking ‘‘the program for aid

6 to dependent children’’ and inserting ‘‘the State pro7 gram funded’’;

8 (2) in section 232(b)(2)(B) (20 U.S.C.

9 2341a(b)(2)(B)), by striking ‘‘the program for aid to

10 families with dependent children’’ and inserting ‘‘the

11 State program funded’’; and

12 (3) in section 521(14)(B)(iii) (20 U.S.C.

13 2471(14)(B)(iii)), by striking ‘‘the program for aid to

14 families with dependent children’’ and inserting ‘‘the

15 State program funded’’.

16 (k) The Elementary and Secondary Education Act of

17 1965 (20 U.S.C. 2701 et seq.) is amended—

18 (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)),

19 by striking ‘‘Aid to Families with Dependent Chil20 dren Program’’ and inserting ‘‘State program funded

21 under part A of title IV of the Social Security Act’’;

22 (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)),

23 by striking ‘‘the program of aid to families with de24 pendent children under a State plan approved under’’
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1 and inserting ‘‘a State program funded under part A

2 of’’; and

3 (3) in section 5203(b)(2) (20 U.S.C.

4 7233(b)(2))—

5 (A) in subparagraph (A)(xi), by striking

6 ‘‘Aid to Families with Dependent Children bene7 fits’’ and inserting ‘‘assistance under a State

8 program funded under part A of title IV of the

9 Social Security Act’’; and

10 (B) in subparagraph (B)(viii), by striking

11 ‘‘Aid to Families with Dependent Children’’ and

12 inserting ‘‘assistance under the State program

13 funded under part A of title IV of the Social Se14 curity Act’’.

15 (l) Chapter VII of title I of Public Law 99–88 (25

16 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided fur17 ther, That general assistance payments made by the Bureau

18 of Indian Affairs shall be made—

19 ‘‘(1) after April 29, 1985, and before October 1,

20 1995, on the basis of Aid to Families with Dependent

21 Children (AFDC) standards of need; and

22 ‘‘(2) on and after October 1, 1995, on the basis

23 of standards of need established under the State pro24 gram funded under part A of title IV of the Social

25 Security Act,
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1 except that where a State ratably reduces its AFDC or State

2 program payments, the Bureau shall reduce general assist3 ance payments in such State by the same percentage as the

4 State has reduced the AFDC or State program payment.’’.

5 (m) The Internal Revenue Code of 1986 (26 U.S.C. 1

6 et seq.) is amended—

7 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

8 striking all that follows ‘‘agency as’’ and inserting

9 ‘‘being eligible for financial assistance under part A

10 of title IV of the Social Security Act and as having

11 continually received such financial assistance during

12 the 90-day period which immediately precedes the

13 date on which such individual is hired by the em14 ployer.’’;

15 (2) in section 3304(a)(16) (26 U.S.C.

16 3304(a)(16)), by striking ‘‘eligibility for aid or serv17 ices,’’ and all that follows through ‘‘children ap18 proved’’ and inserting ‘‘eligibility for assistance, or

19 the amount of such assistance, under a State program

20 funded’’;

21 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

22 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

23 dependent children provided under a State plan ap24 proved’’ and inserting ‘‘a State program funded’’;
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1 (4) in section 6334(a)(11)(A) (26 U.S.C.

2 6334(a)(11)(A)), by striking ‘‘(relating to aid to fam3 ilies with dependent children)’’; and

4 (5) in section 7523(b)(3)(C) (26 U.S.C.

5 7523(b)(3)(C)), by striking ‘‘aid to families with de6 pendent children’’ and inserting ‘‘assistance under a

7 State program funded under part A of title IV of the

8 Social Security Act’’.

9 (n) Section 3(b) of the Wagner-Peyser Act (29 U.S.C.

10 49b(b)) is amended by striking ‘‘State plan approved under

11 part A of title IV’’ and inserting ‘‘State program funded

12 under part A of title IV’’.

13 (o) The Job Training Partnership Act (29 U.S.C. 1501

14 et seq.) is amended—

15 (1) in section 106(b)(6)(C) (29 U.S.C.

16 1516(b)(6)(C)), by striking ‘‘State aid to families

17 with dependent children records,’’ and inserting

18 ‘‘records collected under the State program funded

19 under part A of title IV of the Social Security Act’’;

20 (2) in section 501(1) (29 U.S.C. 1791(1)), by

21 striking ‘‘aid to families with dependent children’’

22 and inserting ‘‘assistance under the State program

23 funded’’;

24 (3) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)),

25 by striking ‘‘aid to families with dependent children’’
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1 and inserting ‘‘assistance under the State program

2 funded’’; and

3 (4) in section 508(a)(2)(A) (29 U.S.C.

4 1791g(a)(2)(A)), by striking ‘‘aid to families with de5 pendent children’’ and inserting ‘‘assistance under the

6 State program funded’’.

7 (p) Section 3803(c)(2)(C)(iv) of title 31, United States

8 Code, is amended to read as follows:

9 ‘‘(iv) assistance under a State program

10 funded under part A of title IV of the Social

11 Security Act’’.

12 (q) Section 2605(b)(2)(A)(i) of the Low-Income Home

13 Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i))

14 is amended to read as follows:

15 ‘‘(i) assistance under the State pro16 gram funded under part A of title IV of the

17 Social Security Act;’’.

18 (r) Section 303(f)(2) of the Family Support Act of

19 1988 (42 U.S.C. 602 note) is amended—

20 (1) by striking ‘‘(A)’’; and

21 (2) by striking subparagraphs (B) and (C).

22 (s) The Balanced Budget and Emergency Deficit Con23 trol Act of 1985 (2 U.S.C. 900 et seq.) is amended—

24 (1) in section 255(h) (2 U.S.C. 905(h), by strik25 ing ‘‘Aid to families with dependent children (75–
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1 0412–0–1–609);’’ and inserting ‘‘Block grants to

2 States for temporary assistance for needy families;’’;

3 and

4 (2) in section 256 (2 U.S.C. 906)—

5 (A) by striking subsection (k); and

6 (B) by redesignating subsection (l) as sub7 section (k).

8 (t) The Immigration and Nationality Act (8 U.S.C.

9 1101 et seq.) is amended—

10 (1) in section 210(f) (8 U.S.C. 1160(f)), by strik11 ing ‘‘aid under a State plan approved under’’ each

12 place it appears and inserting ‘‘assistance under a

13 State program funded under’’;

14 (2) in section 245A(h) (8 U.S.C. 1255a(h))—

15 (A) in paragraph (1)(A)(i), by striking

16 ‘‘program of aid to families with dependent chil17 dren’’ and inserting ‘‘State program of assist18 ance’’; and

19 (B) in paragraph (2)(B), by striking ‘‘aid

20 to families with dependent children’’ and insert21 ing ‘‘assistance under a State program funded

22 under part A of title IV of the Social Security

23 Act’’; and
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1 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by

2 striking ‘‘State plan approved’’ and inserting ‘‘State

3 program funded’’.

4 (u) Section 640(a)(4)(B)(i) of the Head Start Act (42

5 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘program

6 of aid to families with dependent children under a State

7 plan approved’’ and inserting ‘‘State program of assistance

8 funded’’.

9 (v) Section 9 of the Act of April 19, 1950 (64 Stat.

10 47, chapter 92; 25 U.S.C. 639) is repealed.

11 SEC. 109. SECRETARIAL SUBMISSION OF LEGISLATIVE PRO12 POSAL FOR TECHNICAL AND CONFORMING

13 AMENDMENTS.

14 Not later than 90 days after the date of the enactment

15 of this Act, the Secretary of Health and Human Services,

16 in consultation, as appropriate, with the heads of other Fed17 eral agencies, shall submit to the appropriate committees

18 of Congress a legislative proposal providing for such tech19 nical and conforming amendments in the law as are re20 quired by the provisions of this Act.

21 SEC. 110. EFFECTIVE DATE; TRANSITION RULE.

22 (a) IN GENERAL.—Except as otherwise provided in

23 this title, this title and the amendments made by this title

24 shall take effect on October 1, 1995.

25 (b) TRANSITION RULE.—
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1 (1) STATE OPTION TO CONTINUE AFDC PRO2 GRAM.—

3 (A) 6-MONTH EXTENSION.—A State may

4 continue a State program under parts A and F

5 of title IV of the Social Security Act, as in effect

6 on September 30, 1995 (for purposes of this

7 paragraph, the ‘‘State AFDC program’’) until

8 March 31, 1996.

9 (B) REDUCTION OF FISCAL YEAR 1996

10 GRANT.—In the case of any State opting to con11 tinue the State AFDC program pursuant to sub12 paragraph (A), the State family assistance grant

13 paid to such State under section 403(b) of the

14 Social Security Act (as added by section 101

15 and as in effect on and after October 1, 1995) for

16 fiscal year 1996 (after the termination of the

17 State AFDC program) shall be reduced by an

18 amount equal to the total Federal payment to

19 such State under section 403 of the Social Secu20 rity Act (as in effect on September 30, 1995) for

21 such fiscal year.

22 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The

23 amendments made by this title shall not apply with

24 respect to—
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1 (A) powers, duties, functions, rights, claims,

2 penalties, or obligations applicable to aid, assist3 ance, or services provided before the effective date

4 of this title under the provisions amended; and

5 (B) administrative actions and proceedings

6 commenced before such date, or authorized before

7 such date to be commenced, under such provi8 sions.

9 TITLE II—MODIFICATIONS TO

10 THE JOBS PROGRAM

11 SEC. 201. MODIFICATIONS TO THE JOBS PROGRAM.

12 (a) INCREASED EMPLOYMENT AND JOB RETENTION.—

13 (1) JOB OPPORTUNITIES AND BASIC SKILLS.—

14 The heading for part F of title IV (42 U.S.C. 681 et

15 seq.) is amended by striking ‘‘TRAINING’’.

16 (2) PURPOSE.—Section 481(a) (42 U.S.C.

17 681(a)) is amended to read as follows:

18 ‘‘SEC. 481. (a) PURPOSE.—It is the purpose of this

19 part to assist each State in providing such services as the

20 State determines to be necessary to—

21 ‘‘(1) enable individuals receiving assistance

22 under part A to enter employment as quickly as pos23 sible;

24 ‘‘(2) increase job retention among such individ25 uals; and
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1 ‘‘(3) ensure that needy families with children ob2 tain the supportive services that will help them avoid

3 long-term welfare dependence.’’.

4 (b) ESTABLISHMENT AND OPERATION OF STATE PRO5 GRAMS.—

6 (1) STATE PLANS FOR JOBS PROGRAMS.—Section

7 482(a) (42 U.S.C. 682(a)) is amended—

8 (A) in the heading, by striking ‘‘TRAINING’’;

9 (B) in paragraph (1)—

10 (i) in subparagraph (A)—

11 (I) by striking ‘‘of aid to families

12 with dependent children’’;

13 (II) by striking ‘‘training’’; and

14 (III) by striking ‘‘under a plan

15 approved’’ and all that follows through

16 the period and inserting a period;

17 (ii) in subparagraph (B)—

18 (I) in the matter preceding clause

19 (i), by striking ‘‘plan for establishing

20 and operating the program must de21 scribe’’ and inserting ‘‘shall submit to

22 the Secretary periodically, but not less

23 frequently than every 2 years, a plan

24 describing’’;

25 (II) in clause (ii)—
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1 (aa) by striking ‘‘the extent

2 to which such services are expected

3 to be made available by other

4 agencies on a nonreimbursable

5 basis,’’; and

6 (bb) by striking ‘‘program,

7 and’’ and inserting ‘‘program.’’;

8 and

9 (III) by striking clause (iii);

10 (iii) by striking subparagraph (C);

11 (iv) in subparagraph (D)(i), by strik12 ing ‘‘Not later than October 1, 1992, each

13 State shall make’’ and inserting ‘‘Each

14 State shall make appropriate services of’’;

15 and

16 (v) by redesignating subparagraph (D)

17 as subparagraph (C);

18 (C) in paragraph (2)—

19 (i) by striking ‘‘(2) The’’ and inserting

20 ‘‘(2)(A) The’’;

21 (ii) by striking ‘‘approved’’; and

22 (iii) by adding at the end the following

23 new subparagraphs:

24 ‘‘(B) The State agency shall establish procedures to—
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1 ‘‘(i) encourage the placement of participants in

2 jobs as quickly as possible, including using perform3 ance measures that reward staff performance, or such

4 other management practice as the State may choose;

5 and

6 ‘‘(ii) assist participants in retaining employ7 ment after they are hired.

8 ‘‘(C) The Secretary shall provide technical assistance

9 and training to States to assist the States in implementing

10 effective management practices and strategies in order to

11 achieve the purpose of this part.’’; and

12 (D) by striking paragraph (3).

13 (2) EMPLOYABILITY PLAN.—Section 482(b)(1)

14 (42 U.S.C. 682(b)(1)) is amended—

15 (A) in subparagraph (A), by inserting ‘‘the

16 employability of each participant under the pro17 gram and, in appropriate circumstances, a sub18 sequent assessment which may include’’ after

19 ‘‘assessment of’’; and

20 (B) in subparagraph (B)—

21 (i) by striking ‘‘such assessment’’ and

22 inserting ‘‘the subsequent assessment’’; and

23 (ii) by striking the last sentence.

24 (3) PROVISION OF INFORMATION.—Section

25 482(c) (42 U.S.C. 682(c)) is amended—
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1 (A) in paragraph (1), by striking ‘‘aid to

2 families with dependent children’’ and inserting

3 ‘‘assistance under the State program funded

4 under part A’’;

5 (B) in paragraph (2), by striking ‘‘aid to

6 families with dependent children’’ and inserting

7 ‘‘assistance under the State program funded

8 under part A’’;

9 (C) in paragraph (4), by striking ‘‘aid to

10 families with dependent children of the grounds

11 for exemption from participation in the program

12 and the consequences of refusal to participate if

13 not exempt’’ and inserting ‘‘assistance under the

14 State program funded under part A of the con15 sequences of refusal to participate in the pro16 gram under this part’’; and

17 (D) by striking paragraph (5).

18 (4) SERVICES AND ACTIVITIES.—Section 482(d)

19 (42 U.S.C. 682(d)) is amended—

20 (A) in paragraph (1)(A), by striking ‘‘Such

21 services and activities—’’ and all that follows

22 through the period and inserting ‘‘Such services

23 and activities shall be designed to improve the

24 employability of participants and may include

25 any combination of the following:
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1 ‘‘(i) Educational activities (as appropriate), in2 cluding high school or equivalent education (combined

3 with training as needed), basic and remedial edu4 cation to achieve a basic literacy level, and education

5 for individuals with limited English proficiency.

6 ‘‘(ii) Job skills training.

7 ‘‘(iii) Job readiness activities to help prepare

8 participants for work.

9 ‘‘(iv) Job development and job placement.

10 ‘‘(v) Group and individual job search.

11 ‘‘(vi) On-the-job training.

12 ‘‘(vii) Work supplementation programs as de13 scribed in subsection (e).

14 ‘‘(viii) Community work experience programs as

15 described in subsection (f), or any other community

16 service programs approved by the State.

17 ‘‘(ix) A job placement voucher program, as de18 scribed in subsection (g).

19 ‘‘(x) Unsubsidized employment.’’;

20 (B) in paragraph (2), by striking the last

21 sentence; and

22 (C) in paragraph (3)—

23 (i) by striking ‘‘the Secretary shall

24 permit up to 5 States to’’ and inserting ‘‘A

25 State may’’; and
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1 (ii) by striking the last sentence.

2 (5) WORK SUPPLEMENTATION PROGRAM.—Sec3 tion 482(e) (42 U.S.C. 682(e)) is amended—

4 (A) in paragraph (1)—

5 (i) by striking ‘‘aid to families with

6 dependent children’’ each place it appears

7 and inserting ‘‘assistance under the State

8 program funded under part A’’; and

9 (ii) by striking ‘‘paragraph (3)(C)(i)

10 and (ii)’’ and inserting ‘‘paragraph (3)’’;

11 and

12 (B) in paragraph (2)—

13 (i) by striking subparagraphs (A), (C),

14 (D), (F), and (G);

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

16 ‘‘approved’’;

17 (iii) in subparagraph (E)—

18 (I) by striking ‘‘aid to families

19 with dependent children’’ and inserting

20 ‘‘assistance’’;

21 (II) by striking ‘‘(as determined

22 under subparagraph (D))’’; and

23 (III) by striking ‘‘State plan ap24 proved’’ and inserting ‘‘State pro25 gram’’; and
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1 (iv) by redesignating subparagraphs

2 (B) and (E) as subparagraphs (A) and (B),

3 respectively;

4 (C) in paragraph (3) to read as follows:

5 ‘‘(3) For purposes of this section, a subsidized job is

6 a job provided to an individual for not more than a 12-

7 month period—

8 ‘‘(A) by the State or local agency administering

9 the State plan under part A; or

10 ‘‘(B) by any other employer for which all or part

11 of the wages are paid by such State or local agency.

12 A State may provide or subsidize under the program any

13 type of job which such State determines to be appropriate.’’;

14 (D) by striking paragraph (4);

15 (E) in paragraph (5)(A)—

16 (i) by striking ‘‘eligible’’ each place it

17 appears; and

18 (ii) by redesignating such paragraph

19 as paragraph (4);

20 (F) in paragraph (6)—

21 (i) by striking ‘‘aid to families with

22 dependent children under the State plan ap23 proved’’ each place it appears and inserting

24 ‘‘assistance’’; and
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1 (ii) by redesignating such paragraph

2 as paragraph (5); and

3 (G) by striking paragraph (7).

4 (6) COMMUNITY WORK EXPERIENCE PROGRAM.—

5 Section 482(f) (42 U.S.C. 682(f)) is amended—

6 (A) in paragraph (1)—

7 (i) in subparagraph (B)—

8 (I) in clause (i), by striking ‘‘aid

9 to families with dependent children

10 payable with respect to the family of

11 which such individual is a member

12 under the State plan approved under

13 this part’’ and inserting ‘‘assistance

14 payable with respect to the family of

15 which such individual is a member

16 under the State program funded under

17 part A’’; and

18 (II) in clause (ii), by striking

19 ‘‘aid to families with dependent chil20 dren payable with respect to the family

21 of which such individual is a member

22 under the State plan approved under

23 this part (excluding any portion of

24 such aid’’ and inserting ‘‘assistance

25 payable with respect to the family of
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1 which such individual is a member

2 under the State program funded under

3 part A (excluding any portion of such

4 assistance’’;

5 (ii) by striking subparagraph (C);

6 (iii) in subparagraph (D)—

7 (I) by striking ‘‘approved’’; and

8 (II) by striking ‘‘community work

9 experience program’’ and all that fol10 lows through the period and inserting

11 ‘‘community service program.’’; and

12 (iv) by redesignating subparagraphs

13 (D) and (E) as subparagraphs (C) and (D),

14 respectively.

15 (B) in paragraph (3)—

16 (i) by striking ‘‘any program of job

17 search under subsection (g),’’; and

18 (ii) by striking ‘‘aid to families with

19 dependent children’’ and inserting ‘‘assist20 ance under the State program funded under

21 part A’’; and

22 (C) by striking paragraph (4).

23 (7) JOB PLACEMENT VOUCHER PROGRAM.—Sec24 tion 482(g) (42 U.S.C. 682(g)) is amended to read as

25 follows:
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1 ‘‘(g) JOB PLACEMENT VOUCHER PROGRAM.—(1) The

2 State agency may establish and operate a job placement

3 voucher program for individuals participating in the pro4 gram under this part.

5 ‘‘(2) A State that elects to operate a job placement

6 voucher program under this subsection—

7 ‘‘(i) shall establish eligibility requirements for

8 participation in the job placement voucher program;

9 and

10 ‘‘(ii) may establish other requirements for such

11 voucher program as the State deems appropriate.

12 ‘‘(3) A job placement voucher program operated by a

13 State under this subsection shall include the following re14 quirements:

15 ‘‘(A) The State shall identify, maintain, and

16 make available to an individual applying for or re17 ceiving assistance under part A a list of State-ap18 proved job placement organizations that offer services

19 in the area where the individual resides and a de20 scription of the job placement and support services

21 each such organization provides. Such organizations

22 may be publicly or privately owned and operated.

23 ‘‘(B)(i) An individual determined to be eligible

24 for assistance under part A shall, at the time the in25 dividual becomes eligible for such assistance—
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1 ‘‘(I) receive the list and description de2 scribed in subparagraph (A);

3 ‘‘(II) agree, in exchange for job placement

4 and support services, to—

5 ‘‘(aa) execute, within a period of

6 time permitted by the State, a contract

7 with a State-approved job placement

8 organization which provides that the

9 organization shall attempt to find em10 ployment for the individual; and

11 ‘‘(bb) comply with the terms of the

12 contract; and

13 ‘‘(III) receive a job placement voucher (in

14 an amount to be determined by the State) for

15 payment to a State-approved job placement or16 ganization.

17 ‘‘(ii) The State shall impose the sanctions pro18 vided for in section 404(b) on any individual who

19 does not fulfill the terms of a contract executed with

20 a State-approved job placement organization.

21 ‘‘(C) At the time an individual executes a con22 tract with a State-approved job placement organiza23 tion, the individual shall provide the organization

24 with the job placement voucher that the individual re25 ceived pursuant to subparagraph (B).
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1 ‘‘(D)(i) A State-approved job placement organi2 zation may redeem for payment from the State not

3 more than 25 percent of the value of a job placement

4 voucher upon the initial receipt of the voucher for

5 payment of costs incurred in finding and placing an

6 individual in an employment position. The remain7 ing value of such voucher shall not be redeemed for

8 payment from the State until the State-approved job

9 placement organization—

10 ‘‘(I) finds an employment position (as de11 termined by the State) for the individual who

12 provided the voucher; and

13 ‘‘(II) certifies to the State that the individ14 ual remains employed with the employer that the

15 organization originally placed the individual

16 with for the greater of—

17 ‘‘(aa) 6 continuous months; or

18 ‘‘(bb) a period determined by the State.

19 ‘‘(ii) A State may modify, on a case-by-case

20 basis, the requirement of clause (i)(II) under such

21 terms and conditions as the State deems appropriate.

22 ‘‘(E)(i) The State shall establish performance23 based standards to evaluate the success of the State

24 job placement voucher program operated under this

25 subsection in achieving employment for individuals
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1 participating in such voucher program. Such stand2 ards shall take into account the economic conditions

3 of the State in determining the rate of success.

4 ‘‘(ii) The State shall, not less than once a fiscal

5 year, evaluate the job placement voucher program op6 erated under this subsection in accordance with the

7 performance-based standards established under clause

8 (i).

9 ‘‘(iii) The State shall submit a report containing

10 the results of an evaluation conducted under clause

11 (ii) to the Secretary and a description of the perform12 ance-based standards used to conduct the evaluation

13 in such form and under such conditions as the Sec14 retary shall require. The Secretary shall review each

15 report submitted under this clause and may require

16 the State to revise the performance-based standards if

17 the Secretary determines that the State is not achiev18 ing an adequate rate of success for such State.’’.

19 (8) DISPUTE RESOLUTION PROCEDURES.—Sec20 tion 482(h) (42 U.S.C. 682(h)) is amended by strik21 ing ‘‘or through the provision of a hearing pursuant

22 to section 402(a)(4); but in no event shall aid to fam23 ilies with dependent children’’ and inserting ‘‘; but in

24 no event shall assistance under the State program

25 funded under part A’’.
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1 (9) PROVISIONS RELATING TO INDIAN TRIBES.—

2 Section 482(i) (42 U.S.C. 682(i)) is amended—

3 (A) in paragraph (1)—

4 (i) by striking ‘‘training’’ each place it

5 appears; and

6 (ii) in the second sentence, by inserting

7 ‘‘, for fiscal years before 1996,’’ after

8 ‘‘State’’;

9 (B) in paragraph (2), by inserting ‘‘, for

10 fiscal years before 1996,’’ after ‘‘paragraph (1)’’;

11 (C) in paragraph (3)—

12 (i) by striking ‘‘training’’ each place it

13 appears; and

14 (ii) by striking ‘‘402(a)(19)’’ and in15 serting ‘‘404’’;

16 (D) in paragraph (4)—

17 (i) by striking ‘‘training’’; and

18 (ii) by striking ‘‘and the maximum

19 amount’’ and all that follows through the

20 period at the end of the second sentence and

21 inserting ‘‘and the amount that may be

22 paid under section 403 to the State within

23 which the tribe or Alaska Native organiza24 tion is located shall be increased by any

25 portion of the amount retained by the Sec-
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1 retary with respect to such program (and

2 not payable to such tribe or Alaska Native

3 organization for obligations already in4 curred).’’;

5 (E) in paragraph (7)(D), by striking

6 ‘‘training’’ each place it appears;

7 (F) by redesignating paragraphs (3)

8 through (8) as paragraphs (4) through (9), re9 spectively; and

10 (G) by inserting after paragraph (2), the

11 following new paragraph:

12 ‘‘(3) For any fiscal year after 1995, the amount of

13 payment to any tribe or organization received under this

14 subsection shall be an amount equal to the amount such

15 tribe or organization received for fiscal year 1994.’’.

16 (c) COORDINATION REQUIREMENTS.—Section 483 (42

17 U.S.C. 683) is amended—

18 (1) in subsection (a)(2), by striking ‘‘not less

19 than 60 days before its submission to the Secretary,’’;

20 (2) in subsection (b), by striking ‘‘education and

21 training services’’ and inserting ‘‘necessary and sup22 portive assistance for employment’’; and

23 (3) in subsection (c), by striking ‘‘approved’’.

24 (d) PROVISIONS GENERALLY APPLICABLE.—Section

25 484 (42 U.S.C. 684) is amended—
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1 (1) in subsection (a)—

2 (A) in paragraph (1), by striking ‘‘family

3 responsibilities,’’; and

4 (B) in paragraph (5), by striking ‘‘, the

5 participant’s circumstances,’’;

6 (2) in subsection (c), by striking the last sen7 tence; and

8 (3) in subsection (e), by striking ‘‘AFDC pro9 gram’’ and inserting ‘‘State program funded under

10 part A’’.

11 (e) CONTRACT AUTHORITY.—Section 485 (42 U.S.C.

12 685) is amended in subsections (a) and (c), by striking ‘‘ap13 proved’’ each place it appears.

14 (f) PERFORMANCE STANDARDS.—Section 487(c) (42

15 U.S.C. 687(c)) is amended by striking ‘‘matching rate’’ and

16 inserting ‘‘payment to the States under section 403’’.

17 SEC. 202. EFFECTIVE DATE.

18 This title and the amendments made by this title shall

19 take effect on October 1, 1995, unless a State has exercised

20 the option described in section 110(b).
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1 TITLE III—SUPPLEMENTAL

2 SECURITY INCOME

3 Subtitle A—Eligibility Restrictions

4 SEC. 301. DENIAL OF SUPPLEMENTAL SECURITY INCOME

5 BENEFITS BY REASON OF DISABILITY TO

6 DRUG ADDICTS AND ALCOHOLICS.

7 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

8 1382c(a)(3)) is amended by adding at the end the following

9 new subparagraph:

10 ‘‘(I) Notwithstanding subparagraph (A), an individ11 ual shall not be considered to be disabled for purposes of

12 this title if alcoholism or drug addiction would (but for this

13 subparagraph) be a contributing factor material to the

14 Commissioner’s determination that the individual is dis15 abled.’’.

16 (b) CONFORMING AMENDMENTS.—

17 (1) Section 1611(e) (42 U.S.C. 1382(e)) is

18 amended by striking paragraph (3).

19 (2) Section 1631(a)(2)(A)(ii) (42 U.S.C.

20 1383(a)(2)(A)(ii)) is amended—

21 (A) by striking ‘‘(I)’’; and

22 (B) by striking subclause (II).

23 (3) Section 1631(a)(2)(B) (42 U.S.C.

24 1383(a)(2)(B)) is amended—

25 (A) by striking clause (vii);
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1 (B) in clause (viii), by striking ‘‘(ix)’’ and

2 inserting ‘‘(viii)’’;

3 (C) in clause (ix)—

4 (i) by striking ‘‘(viii)’’ and inserting

5 ‘‘(vii)’’; and

6 (ii) in subclause (II), by striking all

7 that follows ‘‘15 years’’ and inserting a pe8 riod;

9 (D) in clause (xiii)—

10 (i) by striking ‘‘(xii)’’ and inserting

11 ‘‘(xi)’’; and

12 (ii) by striking ‘‘(xi)’’ and inserting

13 ‘‘(x)’’; and

14 (E) by redesignating clauses (viii) through

15 (xiii) as clauses (vii) through (xii), respectively.

16 (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

17 1383(a)(2)(D)(i)(II)) is amended by striking all that

18 follows ‘‘$25.00 per month’’ and inserting a period.

19 (5) Section 1634 (42 U.S.C. 1383c) is amended

20 by striking subsection (e).

21 (6) Section 201(c)(1) of the Social Security Inde22 pendence and Program Improvements Act of 1994 (42

23 U.S.C. 425 note) is amended—

24 (A) by striking ‘‘—’’ and all that follows

25 through ‘‘(A)’’ the 1st place it appears;
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1 (B) by striking ‘‘and’’ the 3rd place it ap2 pears;

3 (C) by striking subparagraph (B);

4 (D) by striking ‘‘either subparagraph (A) or

5 subparagraph (B)’’ and inserting ‘‘the preceding

6 sentence’’; and

7 (E) by striking ‘‘subparagraph (A) or (B)’’

8 and inserting ‘‘the preceding sentence’’.

9 SEC. 302. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI

10 BENEFITS.

11 Paragraph (1) of section 1614(a) (42 U.S.C. 1382c(a))

12 is amended—

13 (1) in subparagraph (B)(i), by striking ‘‘either’’

14 and all that follows through ‘‘, or’’ and inserting ‘‘(I)

15 a citizen; (II) a noncitizen who is granted asylum

16 under section 208 of the Immigration and National17 ity Act or whose deportation has been withheld under

18 section 243(h) of such Act for a period of not more

19 than 5 years after the date of arrival into the United

20 States; (III) a noncitizen who is admitted to the

21 United States as a refugee under section 207 of such

22 Act for not more than such 5-year period; (IV) a

23 noncitizen, lawfully present in any State (or any ter24 ritory or possession of the United States), who is a

25 veteran (as defined in section 101 of title 38, United
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1 States Code) with a discharge characterized as an

2 honorable discharge and not on account of alienage

3 or who is the spouse or unmarried dependent child

4 of such veteran; or (V) a noncitizen who has worked

5 sufficient calendar quarters of coverage to be a fully

6 insured individual for benefits under title II, or’’; and

7 (2) by adding at the end the following new flush

8 sentence:

9 ‘‘For purposes of subparagraph (B)(i)(IV), the determina10 tion of whether a noncitizen is lawfully present in the

11 United States shall be made in accordance with regulations

12 of the Attorney General. A noncitizen shall not be consid13 ered to be lawfully present in the United States for purposes

14 of this title merely because the noncitizen may be considered

15 to be permanently residing in the United States under color

16 of law for purposes of any particular program.’’.

17 SEC. 303. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI18 VIDUALS FOUND TO HAVE FRAUDULENTLY

19 MISREPRESENTED RESIDENCE IN ORDER TO

20 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

21 MORE STATES.

22 Section 1614(a) (42 U.S.C. 1382c(a)) is amended by

23 adding at the end the following new paragraph:

24 ‘‘(5) An individual shall not be considered an eligible

25 individual for purposes of this title during the 10-year pe-
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1 riod beginning on the date the individual is convicted in

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

4 of the individual in order to receive assistance simulta5 neously from 2 or more States under programs that are

6 funded under part A of title IV, 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 title

9 XVI.’’.

10 SEC. 304. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

11 AND PROBATION AND PAROLE VIOLATORS.

12 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

13 1382(e)), as amended by section 301(b)(1) of this Act, is

14 amended by inserting after paragraph (2) the following new

15 paragraph:

16 ‘‘(3) A person shall not be an eligible individual or

17 eligible spouse for purposes of this title with respect to any

18 month if during such month the person is—

19 ‘‘(A) fleeing to avoid prosecution, or custody or

20 confinement after conviction, under the laws of the

21 place from which the person flees, for a crime, or an

22 attempt to commit a crime, which is a felony under

23 the laws of the place from which the person flees, or

24 which, in the case of the State of New Jersey, is a

25 high misdemeanor under the laws of such State; or
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1 ‘‘(B) violating a condition of probation or parole

2 imposed under Federal or State law.’’.

3 (b) EXCHANGE OF INFORMATION WITH LAW ENFORCE4 MENT AGENCIES.—Section 1631(e) (42 U.S.C. 1383(e)) is

5 amended by inserting after paragraph (3) the following new

6 paragraph:

7 ‘‘(4) Notwithstanding any other provision of law, the

8 Commissioner shall furnish any Federal, State, or local law

9 enforcement officer, upon the request of the officer, with the

10 current address of any recipient of benefits under this title,

11 if the officer furnishes the agency with the name of the re12 cipient and notifies the agency that—

13 ‘‘(A) the recipient—

14 ‘‘(i) is fleeing to avoid prosecution, or cus15 tody or confinement after conviction, under the

16 laws of the place from which the person flees, for

17 a crime, or an attempt to commit a crime, which

18 is a felony under the laws of the place from

19 which the person flees, or which, in the case of

20 the State of New Jersey, is a high misdemeanor

21 under the laws of such State;

22 ‘‘(ii) is violating a condition of probation

23 or parole imposed under Federal or State law; or
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1 ‘‘(iii) 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 SEC. 305. EFFECTIVE DATES; APPLICATION TO CURRENT

7 RECIPIENTS.

8 (a) SECTIONS 301 AND 302.—

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the amendments made by sections 301 and

11 302 shall apply to applicants for benefits for months

12 beginning on or after the date of the enactment of this

13 Act, without regard to whether regulations have been

14 issued to implement such amendments.

15 (2) APPLICATION TO CURRENT RECIPIENTS.—

16 (A) APPLICATION AND NOTICE.—Notwith17 standing any other provision of law, in the case

18 of an individual who is receiving supplemental

19 security income benefits under title XVI of the

20 Social Security Act as of the date of the enact21 ment of this Act and whose eligibility for such

22 benefits would terminate by reason of the amend23 ments made by section 301 or 302, such amend24 ments shall apply with respect to the benefits of

25 such individual for months beginning on or after
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1 January 1, 1997, and the Commissioner of So2 cial Security shall so notify the individual not

3 later than 90 days after the date of the enact4 ment of this Act.

5 (B) REAPPLICATION.—

6 (i) IN GENERAL.—Not later than 120

7 days after the date of the enactment of this

8 Act, each individual notified pursuant to

9 subparagraph (A) who desires to reapply

10 for benefits under title XVI of the Social Se11 curity Act, as amended by this title, shall

12 reapply to the Commissioner of Social Secu13 rity.

14 (ii) DETERMINATION OF ELIGI15 BILITY.—Not later than 1 year after the

16 date of the enactment of this Act, the Com17 missioner of Social Security shall determine

18 the eligibility of each individual who

19 reapplies for benefits under clause (i) pur20 suant to the procedures of such title.

21 (b) OTHER AMENDMENTS.—The amendments made by

22 sections 303 and 304 shall take effect on the date of the

23 enactment of this Act.
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1 Subtitle B—Benefits for Disabled

2 Children

3 SEC. 311. RESTRICTIONS ON ELIGIBILITY FOR BENEFITS.

4 (a) DEFINITION OF CHILDHOOD DISABILITY.—Section

5 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by section

6 301(a), is amended—

7 (1) in subparagraph (A), by striking ‘‘An indi8 vidual’’ and inserting ‘‘Except as provided in sub9 paragraph (C), an individual;

10 (2) in subparagraph (A), by striking ‘‘(or, in the

11 case of an individual under the age of 18, if he suffers

12 from any medically determinable physical or mental

13 impairment of comparable severity)’’;

14 (3) by redesignating subparagraphs (C) through

15 (I) as subparagraphs (D) through (J), respectively;

16 (4) by inserting after subparagraph (B) the fol17 lowing new subparagraph:

18 ‘‘(C) An individual under the age of 18 shall be consid19 ered disabled for the purposes of this title if that individual

20 has a medically determinable physical or mental impair21 ment, which results in marked, pervasive, and severe func22 tional limitations, and which can be expected to result in

23 death or which has lasted or can be expected to last for a

24 continuous period of not less than 12 months.’’; and
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1 (5) in subparagraph (F), as redesignated by

2 paragraph (3), by striking ‘‘(D)’’ and inserting

3 ‘‘(E)’’.

4 (b) CHANGES TO CHILDHOOD SSI REGULATIONS.—

5 (1) MODIFICATION TO MEDICAL CRITERIA FOR

6 EVALUATION OF MENTAL AND EMOTIONAL DIS7 ORDERS.—The Commissioner of Social Security shall

8 modify sections 112.00C.2. and 112.02B.2.c.(2) of ap9 pendix 1 to subpart P of part 404 of title 20, Code

10 of Federal Regulations, to eliminate references to

11 maladaptive behavior in the domain of personal/

12 behavorial function.

13 (2) DISCONTINUANCE OF INDIVIDUALIZED FUNC14 TIONAL ASSESSMENT.—The Commissioner of Social

15 Security shall discontinue the individual functional

16 assessment for children set forth in sections 416.924d

17 and 416.924e of title 20, Code of Federal Regulations.

18 (c) EFFECTIVE DATE; APPLICATION TO CURRENT RE19 CIPIENTS.—

20 (1) IN GENERAL.—The amendments made by

21 subsections (a) and (b) shall apply to applicants for

22 benefits for months beginning on or after the date of

23 the enactment of this Act, without regard to whether

24 regulations have been issued to implement such

25 amendments.
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1 (2) APPLICATION TO CURRENT RECIPIENTS.—

2 (A) CONTINUING DISABILITY REVIEWS.—Not

3 later than 1 year after the date of the enactment

4 of this Act, the Commissioner of Social Security

5 shall redetermine pursuant to the procedures of

6 title XVI of the Social Security Act the eligi7 bility of any individual who is receiving supple8 mental security income benefits under title XVI

9 of the Social Security Act as of the date of the

10 enactment of this Act and whose eligibility for

11 such benefits would terminate by reason of the

12 amendments made by subsection (a) or (b). The

13 Commissioner of Social Security shall give rede14 termination reviews under this subparagraph

15 priority over other redetermination reviews.

16 (B) GRANDFATHER AND HOLD HARM17 LESS.—The amendments made by subsections (a)

18 and (b), and the redetermination under subpara19 graph (A), shall only apply with respect to the

20 benefits of an individual described in subpara21 graph (A) for months beginning on or after Jan22 uary 1, 1997, and such individual shall be held

23 harmless for any payment of benefits made until

24 such date.
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1 (C) NOTICE.—Not later than 90 days after

2 the date of the enactment of this Act, the Com3 missioner of Social Security shall notify an in4 dividual described in subparagraph (A) of the

5 provisions of this paragraph.

6 SEC. 312. CONTINUING DISABILITY REVIEWS.

7 (a) CONTINUING DISABILITY REVIEWS RELATING FOR

8 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

9 1382c(a)(3)(H)), as redesignated by section 311(a)(3), is

10 amended—

11 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

12 (2) by adding at the end the following new

13 clause:

14 ‘‘(ii)(I) Not less frequently than once every 3 years,

15 the Commissioner shall redetermine the eligibility for bene16 fits under this title of each individual who has not attained

17 18 years of age and is eligible for such benefits by reason

18 of disability.

19 ‘‘(II) Subclause (I) shall not apply to an individual

20 if the individual has an impairment (or combination of im21 pairments) which is (or are) not expected to improve.’’.

22 (b) DISABILITY REVIEW REQUIRED FOR SSI RECIPI23 ENTS WHO ARE 18 YEARS OF AGE.—

24 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

25 U.S.C. 1382c(a)(3)(H)), as amended by subsection
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1 (a), is amended by adding at the end the following

2 new clause:

3 ‘‘(iii) If an individual is eligible for benefits under this

4 title by reason of disability for the month preceding the

5 month in which the individual attains the age of 18 years,

6 the Commissioner shall redetermine such eligibility—

7 ‘‘(I) during the 1-year period beginning on the

8 individual’s 18th birthday; and

9 ‘‘(II) by applying the criteria used in determin10 ing such eligibility for applicants who have attained

11 the age of 18 years.

12 A review under this clause shall be considered a substitute

13 for a review otherwise required under any other provision

14 of this subparagraph during that 1-year period.’’.

15 (2) REPORT TO THE CONGRESS.—Not later than

16 October 1, 1998, the Commissioner of Social Security

17 shall submit to the Committee on Ways and Means of

18 the House of Representatives and the Committee on

19 Finance of the Senate a report on the activities con20 ducted under section 1614(a)(3)(H)(iii) of the Social

21 Security Act, as added by paragraph (1).

22 (3) CONFORMING REPEAL.—Section 207 of the

23 Social Security Independence and Program Improve24 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

25 1516) is hereby repealed.
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1 (c) DISABILITY REVIEW REQUIRED FOR LOW BIRTH

2 WEIGHT BABIES.—Section 1614(a)(3)(H) (42 U.S.C.

3 1382c(a)(3)(H)), as amended by subsections (a) and (b), is

4 amended by adding at the end the following new clause:

5 ‘‘(iv)(I) Not later than 12 months after the birth of

6 an individual, the Commissioner shall redetermine the eli7 gibility for benefits under this title by reason of disability

8 of such individual whose low birth weight is a contributing

9 factor material to the Commissioner’s determination that

10 the individual is disabled.

11 ‘‘(II) A redetermination under subclause (I) shall be

12 considered a substitute for a review otherwise required

13 under any other provision of this subparagraph during that

14 12-month period.’’.

15 (d) EFFECTIVE DATE.—The amendments made by this

16 section shall apply to benefits for months beginning on or

17 after the date of the enactment of this Act, without regard

18 to whether regulations have been issued to implement such

19 amendments.

20 SEC. 313. TREATMENT REQUIREMENTS FOR DISABLED INDI21 VIDUALS UNDER THE AGE OF 18.

22 (a) IN GENERAL.—Section 1631(a)(2) (42 U.S.C.

23 1383(a)(2)) is amended—

24 (1) by redesignating subparagraphs (E) and (F)

25 as subparagraphs (F) and (G), respectively; and
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1 (2) by inserting after subparagraph (D) the fol2 lowing new subparagraph:

3 ‘‘(E)(i) Not later than 3 months after the Commis4 sioner determines that an individual under the age of 18

5 is eligible for benefits under this title by reason of disability

6 (and periodically thereafter, as the Commissioner may re7 quire), the representative payee of such individual shall file

8 with the State agency that makes disability determinations

9 on behalf of the Commissioner of Social Security in the

10 State in which such individual resides, a copy of the treat11 ment plan required by clause (ii).

12 ‘‘(ii) The treatment plan required by this clause shall

13 be developed by the individual’s treating physician or other

14 medical provider, or if approved by the Commissioner, other

15 service provider, and shall describe the services that such

16 physician or provider determines is appropriate for the

17 treatment of such individual’s impairment or combination

18 of impairments. Such plan shall be in such form and con19 tain such information as the Commissioner may prescribe.

20 ‘‘(iii) The representative payee of any individual de21 scribed in clause (i) shall provide evidence of adherence to

22 the treatment plan described in clause (ii) at the time of

23 any redetermination of eligibility conducted pursuant to

24 section 1614(a)(3)(G)(ii), and at such other time as the

25 Commissioner may prescribe.
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1 ‘‘(iv) The failure of a representative payee to comply

2 without good cause with the requirements of clause (i) or

3 (iii) shall constitute misuse of benefits to which subpara4 graph (A)(iii) (but not subparagraph (F)) shall apply. In

5 providing for an alternative representative payee as re6 quired by subparagraph (A)(iii), the Commissioner shall

7 give preference to the State agency that administers the

8 State plan approved under title XIX for the State in which

9 the individual described in clause (i) resides or any other

10 State agency designated by the State for such responsibility,

11 unless the Commissioner determines that selection of an12 other organization or person would be appropriate. Any

13 such State agency that serves as a representative payee shall

14 be a ‘qualified organization’ for purposes of subparagraph

15 (D) of this paragraph.

16 ‘‘(v) This subparagraph shall not apply to the rep17 resentative payee of any individual with respect to whom

18 the Commissioner determines such application would be in19 appropriate or unnecessary. In making such determina20 tions, the Commissioner shall take into consideration the

21 nature of the individual’s impairment (or combination of

22 impairments) and the availability of treatment for such im23 pairment (or impairments). Section 1631(c) shall not apply

24 to a finding by the Commissioner that the requirements of
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1 this subparagraph should not apply to an individual’s rep2 resentative payee.’’.

3 (b) ACCESS TO MEDICAID RECORDS.—

4 (1) REQUIREMENT TO FURNISH INFORMATION.—

5 Section 1902(a) (42 U.S.C. 1396a(a)), as amended by

6 section 103(b), is amended—

7 (A) by striking ‘‘and’’ at the end of para8 graph (62);

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

10 paragraph (63) and inserting ‘‘; and’’; and

11 (C) by adding after paragraph (63) the fol12 lowing new paragraph:

13 ‘‘(64) provide that the State agency that admin14 isters the plan described in this section shall make

15 available to the Commissioner of Social Security such

16 information as the Commissioner may request in con17 nection with the verification of information furnished

18 to the Commissioner by a representative payee pursu19 ant to section 1631(a)(2)(E)(iii).’’.

20 (2) REIMBURSEMENT OF STATE COSTS.—Section

21 1633 (42 U.S.C. 1383b) is amended by adding at the

22 end the following new subsection:

23 ‘‘(d) The Commissioner of Social Security shall reim24 burse a State for the costs of providing information pursu-
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1 ant to section 1902(a)(64) from funds available for carrying

2 out this title.’’.

3 (c) REPORT TO THE CONGRESS.—Not later than the

4 last day of the 36th month beginning after the date of the

5 enactment of this Act, the Inspector General of the Social

6 Security Administration shall report to the Committee on

7 Ways and Means of the House of Representatives and the

8 Committee on Finance of the Senate on the implementation

9 of this section.

10 (d) EFFECTIVE DATE.—This section shall take effect

11 on the 1st day of the 12th month that begins after the date

12 of the enactment of this Act.

13 Subtitle C—Study of Disability

14 Determination Process

15 SEC. 321. STUDY OF DISABILITY DETERMINATION PROCESS.

16 (a) IN GENERAL.—Not later than 180 days after the

17 date of the enactment of this Act, and from funds otherwise

18 appropriated, the Commissioner of Social Security shall

19 contract with the National Academy of Sciences, or other

20 independent entity, to conduct a comprehensive study of the

21 disability determination process under titles II and XVI of

22 the Social Security Act, including the validity, reliability,

23 equity, and consistency with current scientific knowledge

24 and standards of the Listing of Impairments set forth in
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1 appendix 1 of subpart P of part 404 of title 20, Code of

2 Federal Regulations.

3 (b) STUDY OF DEFINITIONS.—The study described in

4 subsection (a) shall also include an examination of the ap5 propriateness of the definitions of disability in titles II and

6 XVI of the Social Security Act and the advantages and dis7 advantages of alternative definitions.

8 (c) REPORTS.—The Commissioner of Social Security

9 shall, through the applicable entity, issue an interim report

10 and a final report of the findings and recommendations re11 sulting from the study described in this section to the Presi12 dent and the Congress not later than 12 months and 24

13 months, respectively, from the date of the contract for such

14 study.

15 Subtitle D—National Commission

16 on the Future of Disability

17 SEC. 331. ESTABLISHMENT.

18 There is established a commission to be known as the

19 National Commission on the Future of Disability (referred

20 to in this subtitle as the ‘‘Commission’’), the expenses of

21 which shall be paid from funds otherwise appropriated for

22 the Social Security Administration.

23 SEC. 332. DUTIES OF THE COMMISSION.

24 (a) IN GENERAL.—The Commission shall develop and

25 carry out a comprehensive study of all matters related to
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1 the nature, purpose, and adequacy of all Federal programs

2 serving individuals with disabilities. In particular, the

3 Commission shall study the disability insurance program

4 under title II of the Social Security Act and the supple5 mental security income program under title XVI of such

6 Act.

7 (b) MATTERS STUDIED.—The Commission shall pre8 pare an inventory of Federal programs serving individuals

9 with disabilities, and shall examine—

10 (1) trends and projections regarding the size and

11 characteristics of the population of individuals with

12 disabilities, and the implications of such analyses for

13 program planning;

14 (2) the feasibility and design of performance

15 standards for the Nation’s disability programs;

16 (3) the adequacy of Federal efforts in rehabilita17 tion research and training, and opportunities to im18 prove the lives of individuals with disabilities through

19 all manners of scientific and engineering research;

20 and

21 (4) the adequacy of policy research available to

22 the Federal Government, and what actions might be

23 undertaken to improve the quality and scope of such

24 research.
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1 (c) RECOMMENDATIONS.—The Commission shall sub2 mit to the appropriate committees of the Congress and to

3 the President recommendations and, as appropriate, pro4 posals for legislation, regarding—

5 (1) which (if any) Federal disability programs

6 should be eliminated or augmented;

7 (2) what new Federal disability programs (if

8 any) should be established;

9 (3) the suitability of the organization and loca10 tion of disability programs within the Federal Gov11 ernment;

12 (4) other actions the Federal Government should

13 take to prevent disabilities and disadvantages associ14 ated with disabilities; and

15 (5) such other matters as the Commission consid16 ers appropriate.

17 SEC. 333. MEMBERSHIP.

18 (a) NUMBER AND APPOINTMENT.—

19 (1) IN GENERAL.—The Commission shall be com20 posed of 15 members, of whom—

21 (A) five shall be appointed by the President,

22 of whom not more than 3 shall be of the same

23 major political party;

24 (B) three shall be appointed by the Majority

25 Leader of the Senate;
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1 (C) two shall be appointed by the Minority

2 Leader of the Senate;

3 (D) three shall be appointed by the Speaker

4 of the House of Representatives; and

5 (E) two shall be appointed by the Minority

6 Leader of the House of Representatives.

7 (2) REPRESENTATION.—The Commission mem8 bers shall be chosen based on their education, train9 ing, or experience. In appointing individuals as

10 members of the Commission, the President and the

11 Majority and Minority Leaders of the Senate and the

12 Speaker and Minority Leader of the House of Rep13 resentatives shall seek to ensure that the membership

14 of the Commission reflects the diversity of individuals

15 with disabilities in the United States.

16 (b) COMPTROLLER GENERAL.—The Comptroller Gen17 eral shall serve on the Commission as an ex officio member

18 of the Commission to advise and oversee the methodology

19 and approach of the study of the Commission.

20 (c) PROHIBITION AGAINST OFFICER OR EMPLOYEE.—

21 No officer or employee of any government shall be appointed

22 under subsection (a).

23 (d) DEADLINE FOR APPOINTMENT; TERM OF APPOINT24 MENT.—Members of the Commission shall be appointed not

25 later than 60 days after the date of the enactment of this
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1 Act. The members shall serve on the Commission for the

2 life of the Commission.

3 (e) MEETINGS.—The Commission shall locate its head4 quarters in the District of Columbia, and shall meet at the

5 call of the Chairperson, but not less than 4 times each year

6 during the life of the Commission.

7 (f) QUORUM.—Ten members of the Commission shall

8 constitute a quorum, but a lesser number may hold hear9 ings.

10 (g) CHAIRPERSON AND VICE CHAIRPERSON.—Not

11 later than 15 days after the members of the Commission

12 are appointed, such members shall designate a Chairperson

13 and Vice Chairperson from among the members of the Com14 mission.

15 (h) CONTINUATION OF MEMBERSHIP.—If a member of

16 the Commission becomes an officer or employee of any gov17 ernment after appointment to the Commission, the individ18 ual may continue as a member until a successor member

19 is appointed.

20 (i) VACANCIES.—A vacancy on the Commission shall

21 be filled in the manner in which the original appointment

22 was made not later than 30 days after the Commission is

23 given notice of the vacancy.
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1 (j) COMPENSATION.—Members of the Commission shall

2 receive no additional pay, allowances, or benefits by reason

3 of their service on the Commission.

4 (k) TRAVEL EXPENSES.—Each member of the Com5 mission shall receive travel expenses, including per diem in

6 lieu of subsistence, in accordance with sections 5702 and

7 5703 of title 5, United States Code.

8 SEC. 334. STAFF AND SUPPORT SERVICES.

9 (a) DIRECTOR.—

10 (1) APPOINTMENT.—Upon consultation with the

11 members of the Commission, the Chairperson shall

12 appoint a Director of the Commission.

13 (2) COMPENSATION.—The Director shall be paid

14 the rate of basic pay for level V of the Executive

15 Schedule.

16 (b) STAFF.—With the approval of the Commission, the

17 Director may appoint such personnel as the Director con18 siders appropriate.

19 (c) APPLICABILITY OF CIVIL SERVICE LAWS.—The

20 staff of the Commission shall be appointed without regard

21 to the provisions of title 5, United States Code, governing

22 appointments in the competitive service, and shall be paid

23 without regard to the provisions of chapter 51 and sub24 chapter III of chapter 53 of such title relating to classifica25 tion and General Schedule pay rates.
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1 (d) EXPERTS AND CONSULTANTS.—With the approval

2 of the Commission, the Director may procure temporary

3 and intermittent services under section 3109(b) of title 5,

4 United States Code.

5 (e) STAFF OF FEDERAL AGENCIES.—Upon the request

6 of the Commission, the head of any Federal agency may

7 detail, on a reimbursable basis, any of the personnel of such

8 agency to the Commission to assist in carrying out the du9 ties of the Commission under this subtitle.

10 (f) OTHER RESOURCES.—The Commission shall have

11 reasonable access to materials, resources, statistical data,

12 and other information from the Library of Congress and

13 agencies and elected representatives of the executive and leg14 islative branches of the Federal Government. The Chair15 person of the Commission shall make requests for such ac16 cess in writing when necessary.

17 (g) PHYSICAL FACILITIES.—The Administrator of the

18 General Services Administration shall locate suitable office

19 space for the operation of the Commission. The facilities

20 shall serve as the headquarters of the Commission and shall

21 include all necessary equipment and incidentals required

22 for proper functioning of the Commission.

23 SEC. 335. POWERS OF COMMISSION.

24 (a) HEARINGS.—The Commission may conduct public

25 hearings or forums at the discretion of the Commission, at
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1 any time and place the Commission is able to secure facili2 ties and witnesses, for the purpose of carrying out the duties

3 of the Commission under this subtitle.

4 (b) DELEGATION OF AUTHORITY.—Any member or

5 agent of the Commission may, if authorized by the Commis6 sion, take any action the Commission is authorized to take

7 by this section.

8 (c) INFORMATION.—The Commission may secure di9 rectly from any Federal agency information necessary to

10 enable the Commission to carry out its duties under this

11 subtitle. Upon request of the Chairperson or Vice Chair12 person of the Commission, the head of a Federal agency

13 shall furnish the information to the Commission to the ex14 tent permitted by law.

15 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis16 sion may accept, use, and dispose of gifts, bequests, or de17 vises of services or property, both real and personal, for the

18 purpose of aiding or facilitating the work of the Commis19 sion. Gifts, bequests, or devises of money and proceeds from

20 sales of other property received as gifts, bequests, or devises

21 shall be deposited in the Treasury and shall be available

22 for disbursement upon order of the Commission.

23 (e) MAILS.—The Commission may use the United

24 States mails in the same manner and under the same condi25 tions as other Federal agencies.
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1 SEC. 336. REPORTS.

2 (a) INTERIM REPORT.—Not later than 1 year prior

3 to the date on which the Commission terminates pursuant

4 to section 337, the Commission shall submit an interim re5 port to the President and to the Congress. The interim re6 port shall contain a detailed statement of the findings and

7 conclusions of the Commission, together with the Commis8 sion’s recommendations for legislative and administrative

9 action, based on the activities of the Commission.

10 (b) FINAL REPORT.—Not later than the date on which

11 the Commission terminates, the Commission shall submit

12 to the Congress and to the President a final report contain13 ing—

14 (1) a detailed statement of final findings, conclu15 sions, and recommendations; and

16 (2) an assessment of the extent to which rec17 ommendations of the Commission included in the in18 terim report under subsection (a) have been imple19 mented.

20 (c) PRINTING AND PUBLIC DISTRIBUTION.—Upon re21 ceipt of each report of the Commission under this section,

22 the President shall—

23 (1) order the report to be printed; and

24 (2) make the report available to the public upon

25 request.
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1 SEC. 337. TERMINATION.

2 The Commission shall terminate on the date that is

3 2 years after the date on which the members of the Commis4 sion have met and designated a Chairperson and Vice

5 Chairperson.

6 TITLE IV—CHILD SUPPORT

7 Subtitle A—Eligibility for Services;

8 Distribution of Payments

9 SEC. 401. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

10 ENFORCEMENT SERVICES.

11 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

12 U.S.C. 654) is amended—

13 (1) by striking paragraph (4) and inserting the

14 following new paragraph:

15 ‘‘(4) provide that the State will—

16 ‘‘(A) provide services relating to the estab17 lishment of paternity or the establishment, modi18 fication, or enforcement of child support obliga19 tions, as appropriate, under the plan with re20 spect to—

21 ‘‘(i) each child for whom (I) cash as22 sistance is provided under the State pro23 gram funded under part A of this title, (II)

24 benefits or services are provided under the

25 State program funded under part B of this

26 title, or (III) medical assistance is provided
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1 under the State plan approved under title

2 XIX, unless the State agency administering

3 the plan determines (in accordance with

4 paragraph (28)) that it is against the best

5 interests of the child to do so; and

6 ‘‘(ii) any other child, if an individual

7 applies for such services with respect to the

8 child; and

9 ‘‘(B) enforce any support obligation estab10 lished with respect to—

11 ‘‘(i) a child with respect to whom the

12 State provides services under the plan; or

13 ‘‘(ii) the custodial parent of such a

14 child.’’; and

15 (2) in paragraph (6)—

16 (A) by striking ‘‘provide that’’ and insert17 ing ‘‘provide that—’’;

18 (B) by striking subparagraph (A) and in19 serting the following new subparagraph:

20 ‘‘(A) services under the plan shall be made

21 available to nonresidents on the same terms as to

22 residents;’’;

23 (C) in subparagraph (B), by inserting ‘‘on

24 individuals not receiving assistance under any
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1 State program funded under part A’’ after ‘‘such

2 services shall be imposed’’;

3 (D) in each of subparagraphs (B), (C), (D),

4 and (E)—

5 (i) by indenting the subparagraph in

6 the same manner as, and aligning the left

7 margin of the subparagraph with the left

8 margin of, the matter inserted by subpara9 graph (B) of this paragraph; and

10 (ii) by striking the final comma and

11 inserting a semicolon; and

12 (E) in subparagraph (E), by indenting each

13 of clauses (i) and (ii) 2 additional ems.

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 452(b) (42 U.S.C. 652(b)) is amend16 ed by striking ‘‘454(6)’’ and inserting ‘‘454(4)’’.

17 (2) Section 452(g)(2)(A) (42 U.S.C.

18 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

19 place it appears and inserting ‘‘454(4)(A)(ii)’’.

20 (3) Section 466(a)(3)(B) (42 U.S.C.

21 666(a)(3)(B)) is amended by striking ‘‘in the case of

22 overdue support which a State has agreed to collect

23 under section 454(6)’’ and inserting ‘‘in any other

24 case’’.
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1 (4) Section 466(e) (42 U.S.C. 666(e)) is amended

2 by striking ‘‘paragraph (4) or (6) of section 454’’ and

3 inserting ‘‘section 454(4)’’.

4 SEC. 402. DISTRIBUTION OF CHILD SUPPORT COLLEC5 TIONS.

6 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

7 amended to read as follows:

8 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

9 ‘‘(a) IN GENERAL.—An amount collected on behalf of

10 a family as support by a State pursuant to a plan approved

11 under this part shall be distributed as follows:

12 ‘‘(1) FAMILIES RECEIVING CASH ASSISTANCE.—

13 In the case of a family receiving cash assistance from

14 the State, the State shall—

15 ‘‘(A) retain, or distribute to the family, the

16 State share of the amount so collected; and

17 ‘‘(B) pay to the Federal Government the

18 Federal share of the amount so collected.

19 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED CASH

20 ASSISTANCE.—In the case of a family that formerly

21 received cash assistance from the State:

22 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

23 the extent that the amount so collected does not

24 exceed the amount required to be paid to the

25 family for the month in which collected, the
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1 State shall distribute the amount so collected to

2 the family.

3 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

4 extent that the amount so collected exceeds the

5 amount required to be paid to the family for the

6 month in which collected, the State shall distrib7 ute the amount so collected as follows:

8 ‘‘(i) DISTRIBUTION TO THE FAMILY TO

9 SATISFY ARREARAGES THAT ACCRUED BE10 FORE OR AFTER THE FAMILY RECEIVED

11 CASH ASSISTANCE.—The State shall distrib12 ute the amount so collected to the family to

13 the extent necessary to satisfy any support

14 arrearages with respect to the family that

15 accrued before or after the family received

16 cash assistance from the State.

17 ‘‘(ii) REIMBURSEMENT OF GOVERN18 MENTS FOR ASSISTANCE PROVIDED TO THE

19 FAMILY.—To the extent that clause (i) does

20 not apply to the amount, the State shall re21 tain the State share of the amount so col22 lected, and pay to the Federal Government

23 the Federal share of the amount so collected,

24 to the extent necessary to reimburse
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1 amounts paid to the family as cash assist2 ance from the State.

3 ‘‘(iii) DISTRIBUTION OF THE REMAIN4 DER TO THE FAMILY.—To the extent that

5 neither clause (i) nor clause (ii) applies to

6 the amount so collected, the State shall dis7 tribute the amount to the family.

8 ‘‘(3) FAMILIES THAT NEVER RECEIVED CASH AS9 SISTANCE.—In the case of any other family, the State

10 shall distribute the amount so collected to the family.

11 ‘‘(b) DEFINITIONS.—As used in subsection (a):

12 ‘‘(1) CASH ASSISTANCE.—The term ‘cash assist13 ance from the State’ means—

14 ‘‘(A) cash assistance under the State pro15 gram funded under part A or under the State

16 plan approved under part A of this title (as in

17 effect before October 1, 1995); or

18 ‘‘(B) cash benefits under the State program

19 funded under part B or under the State plan ap20 proved under part B or E of this title (as in ef21 fect before October 1, 1995).

22 ‘‘(2) FEDERAL SHARE.—The term ‘Federal share’

23 means, with respect to an amount collected by the

24 State to satisfy a support obligation owed to a family

25 for a time period—
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1 ‘‘(A) the greatest Federal medical assistance

2 percentage in effect for the State for fiscal year

3 1995 or any succeeding fiscal year; or

4 ‘‘(B) if support is not owed to the family

5 for any month for which the family received aid

6 to families with dependent children under the

7 State plan approved under part A of this title

8 (as in effect before October 1, 1995), the Federal

9 reimbursement percentage for the fiscal year in

10 which the time period occurs.

11 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT12 AGE.—The term ‘Federal medical assistance percent13 age’ means—

14 ‘‘(A) the Federal medical assistance percent15 age (as defined in section 1905(b)) in the case of

16 any State for which subparagraph (B) does not

17 apply; or

18 ‘‘(B) the Federal medical assistance percent19 age (as defined in section 1118), in the case of

20 Puerto Rico, the Virgin Islands, Guam, and

21 American Samoa.

22 ‘‘(4) FEDERAL REIMBURSEMENT PERCENTAGE.—

23 The term ‘Federal reimbursement percentage’ means,

24 with respect to a fiscal year—
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1 ‘‘(A) the total amount paid to the State

2 under section 403 for the fiscal year; divided by

3 ‘‘(B) the total amount expended by the

4 State to carry out the State program under part

5 A during the fiscal year.

6 ‘‘(5) STATE SHARE.—The term ‘State share’

7 means 100 percent minus the Federal share.

8 ‘‘(c) CONTINUATION OF SERVICES FOR FAMILIES

9 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

10 PROGRAM FUNDED UNDER PART A.—When a family with

11 respect to which services are provided under a State plan

12 approved under this part ceases to receive assistance under

13 the State program funded under part A, the State shall pro14 vide appropriate notice to the family and continue to pro15 vide such services, subject to the same conditions and on

16 the same basis as in the case of individuals to whom services

17 are furnished under section 454, except that an application

18 or other request to continue services shall not be required

19 of such a family and section 454(6)(B) shall not apply to

20 the family.’’.

21 (b) CLERICAL AMENDMENTS.—Section 454 (42 U.S.C.

22 654) is amended—

23 (1) in paragraph (11)—

24 (A) by striking ‘‘(11)’’ and inserting

25 ‘‘(11)(A)’’; and
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1 (B) by inserting after the semicolon ‘‘and’’;

2 and

3 (2) by redesignating paragraph (12) as subpara4 graph (B) of paragraph (11).

5 (c) EFFECTIVE DATE.—

6 (1) GENERAL RULE.—Except as provided in

7 paragraphs (2) and (3), the amendment made by sub8 section (a) shall become effective on October 1, 1999.

9 (2) EARLIER EFFECTIVE DATE FOR RULES RE10 LATING TO DISTRIBUTION OF SUPPORT COLLECTED

11 FOR FAMILIES RECEIVING CASH ASSISTANCE.—Sec12 tion 457(a)(1) of the Social Security Act, as added by

13 the amendment made by subsection (a), shall become

14 effective on October 1, 1995.

15 (3) CLERICAL AMENDMENTS.—The amendments

16 made by subsection (b) shall become effective on Octo17 ber 1, 1995.

18 SEC. 403. RIGHTS TO NOTIFICATION AND HEARINGS.

19 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

20 amended by section 402(b), is amended by inserting after

21 paragraph (11) the following new paragraph:

22 ‘‘(12) establish procedures to provide that—

23 ‘‘(A) individuals who are applying for or

24 receiving services under this part, or are parties
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1 to cases in which services are being provided

2 under this part—

3 ‘‘(i) receive notice of all proceedings in

4 which support obligations might be estab5 lished or modified; and

6 ‘‘(ii) receive a copy of any order estab7 lishing or modifying a child support obliga8 tion, or (in the case of a petition for modi9 fication) a notice of determination that

10 there should be no change in the amount of

11 the child support award, within 14 days

12 after issuance of such order or determina13 tion; and

14 ‘‘(B) individuals applying for or receiving

15 services under this part have access to a fair

16 hearing or other formal complaint procedure that

17 meets standards established by the Secretary and

18 ensures prompt consideration and resolution of

19 complaints (but the resort to such procedure shall

20 not stay the enforcement of any support order);’’.

21 (b) EFFECTIVE DATE.—The amendment made by sub22 section (a) shall become effective on October 1, 1997.

23 SEC. 404. PRIVACY SAFEGUARDS.

24 (a) STATE PLAN REQUIREMENT.—Section 454 (42

25 U.S.C. 654) is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (23);

3 (2) by striking the period at the end of para4 graph (24) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (24) the following

6 new paragraph:

7 ‘‘(25) will have in effect safeguards, applicable to

8 all confidential information handled by the State

9 agency, that are designed to protect the privacy rights

10 of the parties, including—

11 ‘‘(A) safeguards against unauthorized use or

12 disclosure of information relating to proceedings

13 or actions to establish paternity, or to establish

14 or enforce support;

15 ‘‘(B) prohibitions against the release of in16 formation on the whereabouts of 1 party to an17 other party against whom a protective order

18 with respect to the former party has been en19 tered; and

20 ‘‘(C) prohibitions against the release of in21 formation on the whereabouts of 1 party to an22 other party if the State has reason to believe that

23 the release of the information may result in

24 physical or emotional harm to the former

25 party.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall become effective on October 1, 1997.

3 Subtitle B—Locate and Case

4 Tracking

5 SEC. 411. STATE CASE REGISTRY.

6 Section 454A, as added by section 445(a)(2) of this

7 Act, is amended by adding at the end the following new

8 subsections:

9 ‘‘(e) STATE CASE REGISTRY.—

10 ‘‘(1) CONTENTS.—The automated system re11 quired by this section shall include a registry (which

12 shall be known as the ‘State case registry’) that con13 tains records with respect to—

14 ‘‘(A) each case in which services are being

15 provided by the State agency under the State

16 plan approved under this part; and

17 ‘‘(B) each support order established or

18 modified in the State on or after October 1,

19 1998.

20 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The State

21 case registry may be established by linking local case

22 registries of support orders through an automated in23 formation network, subject to this section.

24 ‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—

25 Such records shall use standardized data elements for
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1 both parents (such as names, social security numbers

2 and other uniform identification numbers, dates of

3 birth, and case identification numbers), and contain

4 such other information (such as on-case status) as the

5 Secretary may require.

6 ‘‘(4) PAYMENT RECORDS.—Each case record in

7 the State case registry with respect to which services

8 are being provided under the State plan approved

9 under this part and with respect to which a support

10 order has been established shall include a record of—

11 ‘‘(A) the amount of monthly (or other peri12 odic) support owed under the order, and other

13 amounts (including arrearages, interest or late

14 payment penalties, and fees) due or overdue

15 under the order;

16 ‘‘(B) any amount described in subpara17 graph (A) that has been collected;

18 ‘‘(C) the distribution of such collected

19 amounts;

20 ‘‘(D) the birth date of any child for whom

21 the order requires the provision of support; and

22 ‘‘(E) the amount of any lien imposed with

23 respect to the order pursuant to section

24 466(a)(4).
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1 ‘‘(5) UPDATING AND MONITORING.—The State

2 agency operating the automated system required by

3 this section shall promptly establish and maintain,

4 and regularly monitor, case records in the State case

5 registry with respect to which services are being pro6 vided under the State plan approved under this part,

7 on the basis of—

8 ‘‘(A) information on administrative actions

9 and administrative and judicial proceedings and

10 orders relating to paternity and support;

11 ‘‘(B) information obtained from comparison

12 with Federal, State, or local sources of informa13 tion;

14 ‘‘(C) information on support collections and

15 distributions; and

16 ‘‘(D) any other relevant information.

17 ‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLO18 SURES OF INFORMATION.—The State shall use the auto19 mated system required by this section to extract informa20 tion from (at such times, and in such standardized format

21 or formats, as may be required by the Secretary), to share

22 and compare information with, and to receive information

23 from, other data bases and information comparison serv24 ices, in order to obtain (or provide) information necessary

25 to enable the State agency (or the Secretary or other State
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1 or Federal agencies) to carry out this part, subject to section

2 6103 of the Internal Revenue Code of 1986. Such informa3 tion comparison activities shall include the following:

4 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP5 PORT ORDERS.—Furnishing to the Federal Case Reg6 istry of Child Support Orders established under sec7 tion 453(h) (and update as necessary, with informa8 tion including notice of expiration of orders) the min9 imum amount of information on child support cases

10 recorded in the State case registry that is necessary

11 to operate the registry (as specified by the Secretary

12 in regulations).

13 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—Ex14 changing information with the Federal Parent Loca15 tor Service for the purposes specified in section 453.

16 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MED17 ICAID AGENCIES.—Exchanging information with

18 State agencies (of the State and of other States) ad19 ministering programs funded under part A, programs

20 operated under State plans under title XIX, and other

21 programs designated by the Secretary, as necessary to

22 perform State agency responsibilities under this part

23 and under such programs.

24 ‘‘(4) INTRASTATE AND INTERSTATE INFORMATION

25 COMPARISONS.—Exchanging information with other
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1 agencies of the State, agencies of other States, and

2 interstate information networks, as necessary and ap3 propriate to carry out (or assist other States to carry

4 out) the purposes of this part.’’.

5 SEC. 412. COLLECTION AND DISBURSEMENT OF SUPPORT

6 PAYMENTS.

7 (a) STATE PLAN REQUIREMENT.—Section 454 (42

8 U.S.C. 654), as amended by section 404(a) of this Act, is

9 amended—

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

11 (24);

12 (2) by striking the period at the end of para13 graph (25) and inserting ‘‘; and’’; and

14 (3) by adding after paragraph (25) the following

15 new paragraph:

16 ‘‘(26) provide that, on and after October 1, 1998,

17 the State agency will—

18 ‘‘(A) operate a State disbursement unit in

19 accordance with section 454B; and

20 ‘‘(B) have sufficient State staff (consisting

21 of State employees), and (at State option) con22 tractors reporting directly to the State agency,

23 to—

24 ‘‘(i) monitor and enforce support col25 lections through the unit (including carry-
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1 ing out the automated data processing re2 sponsibilities described in section 454A(g));

3 and

4 ‘‘(ii) take the actions described in sec5 tion 466(c)(1) in appropriate cases.’’.

6 (b) ESTABLISHMENT OF STATE DISBURSEMENT

7 UNIT.—Part D of title IV (42 U.S.C. 651–669), as amended

8 by section 445(a)(2) of this Act, is amended by inserting

9 after section 454A the following new section:

10 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT

11 PAYMENTS.

12 ‘‘(a) STATE DISBURSEMENT UNIT.—

13 ‘‘(1) IN GENERAL.—In order for a State to meet

14 the requirements of this section, the State agency

15 must establish and operate a unit (which shall be

16 known as the ‘State disbursement unit’) for the collec17 tion and disbursement of payments under support or18 ders in all cases being enforced by the State pursuant

19 to section 454(4).

20 ‘‘(2) OPERATION.—The State disbursement unit

21 shall be operated—

22 ‘‘(A) directly by the State agency (or 2 or

23 more State agencies under a regional cooperative

24 agreement), or (to the extent appropriate) by a
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1 contractor responsible directly to the State agen2 cy; and

3 ‘‘(B) in coordination with the automated

4 system established by the State pursuant to sec5 tion 454A.

6 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

7 UNITS.—The State disbursement unit may be estab8 lished by linking local disbursement units through an

9 automated information network, subject to this sec10 tion. The Secretary must agree that the system will

11 not cost more nor take more time to establish or oper12 ate than a centralized system. In addition, employers

13 shall be given 1 location to which income withholding

14 is sent.

15 ‘‘(b) REQUIRED PROCEDURES.—The State disburse16 ment unit shall use automated procedures, electronic proc17 esses, and computer-driven technology to the maximum ex18 tent feasible, efficient, and economical, for the collection and

19 disbursement of support payments, including procedures—

20 ‘‘(1) for receipt of payments from parents, em21 ployers, and other States, and for disbursements to

22 custodial parents and other obligees, the State agency,

23 and the agencies of other States;

24 ‘‘(2) for accurate identification of payments;
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1 ‘‘(3) to ensure prompt disbursement of the custo2 dial parent’s share of any payment; and

3 ‘‘(4) to furnish to any parent, upon request,

4 timely information on the current status of support

5 payments under an order requiring payments to be

6 made by or to the parent.

7 ‘‘(c) TIMING OF DISBURSEMENTS.—

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (2), the State disbursement unit shall distribute

10 all amounts payable under section 457(a) within 2

11 business days after receipt from the employer or other

12 source of periodic income, if sufficient information

13 identifying the payee is provided.

14 ‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—

15 The State disbursement unit may delay the distribu16 tion of collections toward arrearages until the resolu17 tion of any timely appeal with respect to such arrear18 ages.

19 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec20 tion, the term ‘business day’ means a day on which State

21 offices are open for regular business.’’.

22 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

23 added by section 445(a)(2) of this Act and as amended by

24 section 411 of this Act, is amended by adding at the end

25 the following new subsection:
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1 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

2 PAYMENTS.—

3 ‘‘(1) IN GENERAL.—The State shall use the auto4 mated system required by this section, to the maxi5 mum extent feasible, to assist and facilitate the collec6 tion and disbursement of support payments through

7 the State disbursement unit operated under section

8 454B, through the performance of functions, includ9 ing, at a minimum—

10 ‘‘(A) transmission of orders and notices to

11 employers (and other debtors) for the withholding

12 of wages and other income—

13 ‘‘(i) within 2 business days after re14 ceipt from a court, another State, an em15 ployer, the Federal Parent Locator Service,

16 or another source recognized by the State of

17 notice of, and the income source subject to,

18 such withholding; and

19 ‘‘(ii) using uniform formats prescribed

20 by the Secretary;

21 ‘‘(B) ongoing monitoring to promptly iden22 tify failures to make timely payment of support;

23 and

24 ‘‘(C) automatic use of enforcement proce25 dures (including procedures authorized pursuant
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1 to section 466(c)) where payments are not timely

2 made.

3 ‘‘(2) BUSINESS DAY DEFINED.—As used in para4 graph (1), the term ‘business day’ means a day on

5 which State offices are open for regular business.’’.

6 (d) EFFECTIVE DATE.—The amendments made by this

7 section shall become effective on October 1, 1998.

8 SEC. 413. STATE DIRECTORY OF NEW HIRES.

9 (a) STATE PLAN REQUIREMENT.—Section 454 (42

10 U.S.C. 654), as amended by sections 404(a) and 412(a) of

11 this Act, is amended—

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

13 (25);

14 (2) by striking the period at the end of para15 graph (26) and inserting ‘‘; and’’; and

16 (3) by adding after paragraph (26) the following

17 new paragraph:

18 ‘‘(27) provide that, on and after October 1, 1997,

19 the State will operate a State Directory of New Hires

20 in accordance with section 453A.’’.

21 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

22 title IV (42 U.S.C. 651–669) is amended by inserting after

23 section 453 the following new section:

24 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

25 ‘‘(a) ESTABLISHMENT.—
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1 ‘‘(1) IN GENERAL.—Not later than October 1,

2 1997, each State shall establish an automated direc3 tory (to be known as the ‘State Directory of New

4 Hires’) which shall contain information supplied in

5 accordance with subsection (b) by employers on each

6 newly hired employee.

7 ‘‘(2) DEFINITIONS.—As used in this section:

8 ‘‘(A) EMPLOYEE.—The term ‘employee’—

9 ‘‘(i) means an individual who is an

10 employee within the meaning of chapter 24

11 of the Internal Revenue Code of 1986; and

12 ‘‘(ii) does not include an employee of a

13 Federal or State agency performing intel14 ligence or counterintelligence functions, if

15 the head of such agency has determined that

16 reporting pursuant to paragraph (1) with

17 respect to the employee could endanger the

18 safety of the employee or compromise an on19 going investigation or intelligence mission.

20 ‘‘(B) EMPLOYER.—The term ‘employer’ in21 cludes—

22 ‘‘(i) any governmental entity, and

23 ‘‘(ii) any labor organization.

24 ‘‘(C) LABOR ORGANIZATION.—The term

25 ‘labor organization’ shall have the meaning given
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1 such term in section 2(5) of the National Labor

2 Relations Act, and includes any entity (also

3 known as a ‘hiring hall’) which is used by the

4 organization and an employer to carry out re5 quirements described in section 8(f)(3) of such

6 Act of an agreement between the organization

7 and the employer.

8 ‘‘(b) EMPLOYER INFORMATION.—

9 ‘‘(1) REPORTING REQUIREMENT.—Each em10 ployer shall furnish to the Directory of New Hires of

11 the State in which a newly hired employee works, a

12 report that contains the name, address, and social se13 curity number of the employee, and the name of, and

14 identifying number assigned under section 6109 of the

15 Internal Revenue Code of 1986 to, the employer.

16 ‘‘(2) TIMING OF REPORT.—The report required

17 by paragraph (1) with respect to an employee shall

18 be made not later than the later of—

19 ‘‘(A) 15 days after the date the employer

20 hires the employee; or

21 ‘‘(B) in the case of an employer that reports

22 by magnetic or electronic means, the 1st business

23 day of the week following the date on which the

24 employee 1st receives wages or other compensa25 tion from the employer.
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1 ‘‘(c) REPORTING FORMAT AND METHOD.—Each report

2 required by subsection (b) shall be made on a W–4 form

3 or the equivalent, and may be transmitted by 1st class mail,

4 magnetically, or electronically.

5 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EM6 PLOYERS.—

7 ‘‘(1) IN GENERAL.—An employer that fails to

8 comply with subsection (b) with respect to an em9 ployee shall be subject to a civil money penalty of—

10 ‘‘(A) $25; or

11 ‘‘(B) $500 if, under State law, the failure is

12 the result of a conspiracy between the employer

13 and the employee to not supply the required re14 port or to supply a false or incomplete report.

15 ‘‘(2) APPLICABILITY OF SECTION 1128.—Section

16 1128 (other than subsections (a) and (b) of such sec17 tion) shall apply to a civil money penalty under

18 paragraph (1) of this subsection in the same manner

19 as such section applies to a civil money penalty or

20 proceeding under section 1128A(a).

21 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Informa22 tion shall be entered into the data base maintained by the

23 State Directory of New Hires within 5 business days of re24 ceipt from an employer pursuant to subsection (b).

25 ‘‘(f) INFORMATION COMPARISONS.—
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1 ‘‘(1) IN GENERAL.—Not later than October 1,

2 1998, an agency designated by the State shall, di3 rectly or by contract, conduct automated comparisons

4 of the social security numbers reported by employers

5 pursuant to subsection (b) and the social security

6 numbers appearing in the records of the State case

7 registry for cases being enforced under the State plan.

8 ‘‘(2) NOTICE OF MATCH.—When an information

9 comparison conducted under paragraph (1) reveals a

10 match with respect to the social security number of an

11 individual required to provide support under a sup12 port order, the State Directory of New Hires shall

13 provide the agency administering the State plan ap14 proved under this part of the appropriate State with

15 the name, address, and social security number of the

16 employee to whom the social security number is as17 signed, and the name of, and identifying number as18 signed under section 6109 of the Internal Revenue

19 Code of 1986 to, the employer.

20 ‘‘(g) TRANSMISSION OF INFORMATION.—

21 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NO22 TICES TO EMPLOYERS.—Within 2 business days after

23 the date information regarding a newly hired em24 ployee is entered into the State Directory of New

25 Hires, the State agency enforcing the employee’s child
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1 support obligation shall transmit a notice to the em2 ployer of the employee directing the employer to with3 hold from the wages of the employee an amount equal

4 to the monthly (or other periodic) child support obli5 gation of the employee, unless the employee’s wages

6 are not subject to withholding pursuant to section

7 466(b)(3).

8 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC9 TORY OF NEW HIRES.—

10 ‘‘(A) NEW HIRE INFORMATION.—Within 2

11 business days after the date information regard12 ing a newly hired employee is entered into the

13 State Directory of New Hires, the State Direc14 tory of New Hires shall furnish the information

15 to the National Directory of New Hires.

16 ‘‘(B) WAGE AND UNEMPLOYMENT COM17 PENSATION INFORMATION.—The State Directory

18 of New Hires shall, on a quarterly basis, furnish

19 to the National Directory of New Hires extracts

20 of the reports required under section 303(a)(6) to

21 be made to the Secretary of Labor concerning the

22 wages and unemployment compensation paid to

23 individuals, by such dates, in such format, and

24 containing such information as the Secretary of
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1 Health and Human Services shall specify in reg2 ulations.

3 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

4 subsection, the term ‘business day’ means a day on

5 which State offices are open for regular business.

6 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

7 ‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—

8 The agency administering the State plan approved

9 under this part shall use information received pursu10 ant to subsection (f)(2) to locate individuals for pur11 poses of establishing paternity and establishing, modi12 fying, and enforcing child support obligations.

13 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN

14 PROGRAMS.—A State agency responsible for admin15 istering a program specified in section 1137(b) shall

16 have access to information reported by employers pur17 suant to subsection (b) of this section for purposes of

18 verifying eligibility for the program.

19 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU20 RITY AND WORKERS’ COMPENSATION.—State agencies

21 operating employment security and workers’ com22 pensation programs shall have access to information

23 reported by employers pursuant to subsection (b) for

24 the purposes of administering such programs.’’.
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1 SEC. 414. AMENDMENTS CONCERNING INCOME WITHHOLD2 ING.

3 (a) MANDATORY INCOME WITHHOLDING.—

4 (1) IN GENERAL.—Section 466(a)(1) (42 U.S.C.

5 666(a)(1)) is amended to read as follows:

6 ‘‘(1)(A) Procedures described in subsection (b)

7 for the withholding from income of amounts payable

8 as support in cases subject to enforcement under the

9 State plan.

10 ‘‘(B) Procedures under which the wages of a per11 son with a support obligation imposed by a support

12 order issued (or modified) in the State before October

13 1, 1996, if not otherwise subject to withholding under

14 subsection (b), shall become subject to withholding as

15 provided in subsection (b) if arrearages occur, without

16 the need for a judicial or administrative hearing.’’.

17 (2) CONFORMING AMENDMENTS.—

18 (A) Section 466(a)(8)(B)(iii) (42 U.S.C.

19 666(a)(8)(B)(iii)) is amended—

20 (i) by striking ‘‘(5),’’; and

21 (ii) by inserting ‘‘, and, at the option

22 of the State, the requirements of subsection

23 (b)(5)’’ before the period.

24 (B) Section 466(b) (42 U.S.C. 666(b)) is

25 amended in the matter preceding paragraph (1),
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1 by striking ‘‘subsection (a)(1)’’ and inserting

2 ‘‘subsection (a)(1)(A)’’.

3 (C) Section 466(b)(4) (42 U.S.C. 666(b)(4))

4 is amended to read as follows:

5 ‘‘(4)(A) Such withholding must be carried out in

6 full compliance with all procedural due process re7 quirements of the State, and the State must send no8 tice to each absent parent to whom paragraph (1) ap9 plies—

10 ‘‘(i) that the withholding has commenced;

11 and

12 ‘‘(ii) of the procedures to follow if the absent

13 parent desires to contest such withholding on the

14 grounds that the withholding or the amount

15 withheld is improper due to a mistake of fact.

16 ‘‘(B) The notice under subparagraph (A) shall

17 include the information provided to the employer

18 under paragraph (6)(A).’’.

19 (D) Section 466(b)(5) (42 U.S.C. 666(b)(5))

20 is amended by striking all that follows ‘‘adminis21 tered by’’ and inserting ‘‘the State through the

22 State disbursement unit established pursuant to

23 section 454B, in accordance with the require24 ments of section 454B.’’.
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1 (E) Section 466(b)(6)(A) (42 U.S.C.

2 666(b)(6)(A)) is amended—

3 (i) in clause (i), by striking ‘‘to the ap4 propriate agency’’ and all that follows and

5 inserting ‘‘to the State disbursement unit

6 within 2 business days after the date the

7 amount would (but for this subsection) have

8 been paid or credited to the employee, for

9 distribution in accordance with this part.’’;

10 (ii) in clause (ii), by inserting ‘‘be in

11 a standard format prescribed by the Sec12 retary, and’’ after ‘‘shall’’; and

13 (iii) by adding at the end the following

14 new clause:

15 ‘‘(iii) As used in this subparagraph, the term

16 ‘business day’ means a day on which State offices are

17 open for regular business.’’.

18 (F) Section 466(b)(6)(D) (42 U.S.C.

19 666(b)(6)(D)) is amended by striking ‘‘any em20 ployer’’ and all that follows and inserting ‘‘any

21 employer who—

22 ‘‘(i) discharges from employment, refuses to

23 employ, or takes disciplinary action against any

24 absent parent subject to wage withholding re25 quired by this subsection because of the existence
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1 of such withholding and the obligations or addi2 tional obligations which it imposes upon the em3 ployer; or

4 ‘‘(ii) fails to withhold support from wages,

5 or to pay such amounts to the State disburse6 ment unit in accordance with this subsection.’’.

7 (G) Section 466(b) (42 U.S.C. 666(b)) is

8 amended by adding at the end the following new

9 paragraph:

10 ‘‘(11) Procedures under which the agency admin11 istering the State plan approved under this part may

12 execute a withholding order through electronic means

13 and without advance notice to the obligor.’’.

14 (b) CONFORMING AMENDMENT.—Section 466(c) (42

15 U.S.C. 666(c)) is repealed.

16 SEC. 415. LOCATOR INFORMATION FROM INTERSTATE NET17 WORKS.

18 Section 466(a) (42 U.S.C. 666(a)) is amended by add19 ing at the end the following new paragraph:

20 ‘‘(12) Procedures to ensure that all Federal and

21 State agencies conducting activities under this part

22 have access to any system used by the State to locate

23 an individual for purposes relating to motor vehicles

24 or law enforcement.’’.
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1 SEC. 416. EXPANSION OF THE FEDERAL PARENT LOCATOR

2 SERVICE.

3 (a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS

4 AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—

5 (1) in subsection (a), by striking all that follows

6 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

7 establishing parentage, establishing, setting the

8 amount of, modifying, or enforcing child support obli9 gations, or enforcing child visitation orders—

10 ‘‘(1) information on, or facilitating the discovery

11 of, the location of any individual—

12 ‘‘(A) who is under an obligation to pay

13 child support or provide child visitation rights;

14 ‘‘(B) against whom such an obligation is

15 sought;

16 ‘‘(C) to whom such an obligation is owed,

17 including the individual’s social security number (or

18 numbers), most recent address, and the name, address,

19 and employer identification number of the individ20 ual’s employer;

21 ‘‘(2) information on the individual’s wages (or

22 other income) from, and benefits of, employment (in23 cluding rights to or enrollment in group health care

24 coverage); and
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1 ‘‘(3) information on the type, status, location,

2 and amount of any assets of, or debts owed by or to,

3 any such individual.’’; and

4 (2) in subsection (b), in the matter preceding

5 paragraph (1), by striking ‘‘social security’’ and all

6 that follows through ‘‘absent parent’’ and inserting

7 ‘‘information described in subsection (a)’’.

8 (b) AUTHORIZED PERSON FOR INFORMATION REGARD9 ING VISITATION RIGHTS.—Section 453(c) (42 U.S.C.

10 653(c)) is amended—

11 (1) in paragraph (1), by striking ‘‘support’’ and

12 inserting ‘‘support or to seek to enforce orders provid13 ing child visitation rights’’;

14 (2) in paragraph (2), by striking ‘‘, or any agent

15 of such court; and’’ and inserting ‘‘or to issue an

16 order against a resident parent for visitation rights,

17 or any agent of such court;’’;

18 (3) by striking the period at the end of para19 graph (3) and inserting ‘‘; and’’; and

20 (4) by adding at the end the following new para21 graph:

22 ‘‘(4) the absent parent, only with regard to a

23 court order against a resident parent for child visita24 tion rights.’’.
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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) The Secretary may reimburse Federal and State

12 agencies for the costs incurred by such entities in furnishing

13 information requested by the Secretary under this section

14 in an amount which the Secretary determines to be reason15 able payment for the information exchange (which amount

16 shall not include payment for the costs of obtaining, compil17 ing, or maintaining the information).’’.

18 (e) TECHNICAL AMENDMENTS.—

19 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

20 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

21 653(b), 663(a), 663(e), and 663(f)) are each amended

22 by inserting ‘‘Federal’’ before ‘‘Parent’’ each place

23 such term appears.

24 (2) Section 453 (42 U.S.C. 653) is amended in

25 the heading by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
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1 (f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653),

2 as amended by subsection (d) of this section, is amended

3 by adding at the end the following new subsection:

4 ‘‘(h)(1) Not later than October 1, 1998, in order to as5 sist States in administering programs under State plans

6 approved under this part and programs funded under part

7 A, and for the other purposes specified in this section, the

8 Secretary shall establish and maintain in the Federal Par9 ent Locator Service an automated registry (which shall be

10 known as the ‘Federal Case Registry of Child Support Or11 ders’), which shall contain abstracts of support orders and

12 other information described in paragraph (2) with respect

13 to each case in each State case registry maintained pursu14 ant to section 454A(e), as furnished (and regularly up15 dated), pursuant to section 454A(f), by State agencies ad16 ministering programs under this part.

17 ‘‘(2) The information referred to in paragraph (1)

18 with respect to a case shall be such information as the Sec19 retary may specify in regulations (including the names, so20 cial security numbers or other uniform identification num21 bers, and State case identification numbers) to identify the

22 individuals who owe or are owed support (or with respect

23 to or on behalf of whom support obligations are sought to

24 be established), and the State or States which have the case.
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1 ‘‘(i)(1) In order to assist States in administering pro2 grams under State plans approved under this part and pro3 grams funded under part A, and for the other purposes spec4 ified in this section, the Secretary shall, not later than Octo5 ber 1, 1996, establish and maintain in the Federal Parent

6 Locator Service an automated directory to be known as the

7 National Directory of New Hires, which shall contain the

8 information supplied pursuant to section 453A(g)(2).

9 ‘‘(2) Information shall be entered into the data base

10 maintained by the National Directory of New Hires within

11 2 business days of receipt pursuant to section 453A(g)(2).

12 ‘‘(3) The Secretary of the Treasury shall have access

13 to the information in the National Directory of New Hires

14 for purposes of administering section 32 of the Internal

15 Revenue Code of 1986, or the advance payment of the

16 earned income tax credit under section 3507 of such Code,

17 and verifying a claim with respect to employment in a tax

18 return.

19 ‘‘(j)(1)(A) The Secretary shall transmit information

20 on individuals and employers maintained under this sec21 tion to the Social Security Administration to the extent nec22 essary for verification in accordance with subparagraph

23 (B).

24 ‘‘(B) The Social Security Administration shall verify

25 the accuracy of, correct, or supply to the extent possible,
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1 and report to the Secretary, the following information sup2 plied by the Secretary pursuant to subparagraph (A):

3 ‘‘(i) The name, social security number, and birth

4 date of each such individual.

5 ‘‘(ii) The employer identification number of each

6 such employer.

7 ‘‘(2) For the purpose of locating individuals in a pa8 ternity establishment case or a case involving the establish9 ment, modification, or enforcement of a support order, the

10 Secretary shall—

11 ‘‘(A) compare information in the National Di12 rectory of New Hires against information in the sup13 port case abstracts in the Federal Case Registry of

14 Child Support Orders not less often than every 2

15 business days; and

16 ‘‘(B) within 2 such days after such a comparison

17 reveals a match with respect to an individual, report

18 the information to the State agency responsible for the

19 case.

20 ‘‘(3) To the extent and with the frequency that the Sec21 retary determines to be effective in assisting States to carry

22 out their responsibilities under programs operated under

23 this part and programs funded under part A, the Secretary

24 shall—
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1 ‘‘(A) compare the information in each compo2 nent of the Federal Parent Locator Service main3 tained under this section against the information in

4 each other such component (other than the compari5 son required by paragraph (2)), and report instances

6 in which such a comparison reveals a match with re7 spect to an individual to State agencies operating

8 such programs; and

9 ‘‘(B) disclose information in such registries to

10 such State agencies.

11 ‘‘(4) The National Directory of New Hires shall pro12 vide the Commissioner of Social Security with all informa13 tion in the National Directory, which shall be used to deter14 mine the accuracy of payments under the supplemental se15 curity income program under title XVI and in connection

16 with benefits under title II.

17 ‘‘(5) The Secretary may provide access to information

18 reported by employers pursuant to section 453A(b) for re19 search purposes found by the Secretary to be likely to con20 tribute to achieving the purposes of part A or this part,

21 but without personal identifiers.

22 ‘‘(k)(1) The Secretary shall reimburse the Commis23 sioner of Social Security, at a rate negotiated between the

24 Secretary and the Commissioner, for the costs incurred by
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1 the Commissioner in performing the verification services de2 scribed in subsection (j).

3 ‘‘(2) The Secretary shall reimburse costs incurred by

4 State directories of new hires in furnishing information as

5 required by subsection (j)(3), at rates which the Secretary

6 determines to be reasonable (which rates shall not include

7 payment for the costs of obtaining, compiling, or maintain8 ing such information).

9 ‘‘(3) A State or Federal agency that receives informa10 tion from the Secretary pursuant to this section shall reim11 burse the Secretary for costs incurred by the Secretary in

12 furnishing the information, at rates which the Secretary de13 termines to be reasonable (which rates shall include pay14 ment for the costs of obtaining, verifying, maintaining, and

15 comparing the information).

16 ‘‘(l) Information in the Federal Parent Locator Serv17 ice, and information resulting from comparisons using such

18 information, shall not be used or disclosed except as ex19 pressly provided in this section, subject to section 6103 of

20 the Internal Revenue Code of 1986.

21 ‘‘(m) The Secretary shall establish and implement safe22 guards with respect to the entities established under this

23 section designed to—

24 ‘‘(1) ensure the accuracy and completeness of in25 formation in the Federal Parent Locator Service; and
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1 ‘‘(2) restrict access to confidential information in

2 the Federal Parent Locator Service to authorized per3 sons, and restrict use of such information to author4 ized purposes.’’.

5 (f) QUARTERLY WAGE REPORTING.—Section

6 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

7 (1) by inserting ‘‘(including governmental enti8 ties)’’ after ‘‘employers’’; and

9 (2) by inserting ‘‘, and except that no report

10 shall be filed with respect to an employee of a Federal

11 or State agency performing intelligence or counter12 intelligence functions, if the head of such agency has

13 determined that filing such a report could endanger

14 the safety of the employee or compromise an ongoing

15 investigation or intelligence mission’’ after ‘‘para16 graph (2)’’.

17 (g) CONFORMING AMENDMENTS.—

18 (1) TO PART D OF TITLE IV OF THE SOCIAL SE19 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

20 654(8)(B)) is amended to read as follows:

21 ‘‘(B) the Federal Parent Locator Service es22 tablished under section 453;’’.

23 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

24 Section 3304(a)(16) of the Internal Revenue Code of

25 1986 is amended—
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1 (A) by striking ‘‘Secretary of Health, Edu2 cation, and Welfare’’ each place such term ap3 pears and inserting ‘‘Secretary of Health and

4 Human Services’’;

5 (B) in subparagraph (B), by striking ‘‘such

6 information’’ and all that follows and inserting

7 ‘‘information furnished under subparagraph (A)

8 or (B) is used only for the purposes authorized

9 under such subparagraph;’’;

10 (C) by striking ‘‘and’’ at the end of sub11 paragraph (A);

12 (D) by redesignating subparagraph (B) as

13 subparagraph (C); and

14 (E) by inserting after subparagraph (A) the

15 following new subparagraph:

16 ‘‘(B) wage and unemployment compensa17 tion information contained in the records of such

18 agency shall be furnished to the Secretary of

19 Health and Human Services (in accordance with

20 regulations promulgated by such Secretary) as

21 necessary for the purposes of the National Direc22 tory of New Hires established under section

23 453(i) of the Social Security Act, and’’.
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1 (3) TO STATE GRANT PROGRAM UNDER TITLE III

2 OF THE SOCIAL SECURITY ACT.—Section 303(a) (42

3 U.S.C. 503(a)) is amended—

4 (A) by striking ‘‘and’’ at the end of para5 graph (8);

6 (B) by striking ‘‘and’’ at the end of para7 graph (9);

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

9 paragraph (10) and inserting ‘‘; and’’; and

10 (D) by adding after paragraph (10) the fol11 lowing new paragraph:

12 ‘‘(11) The making of quarterly electronic reports,

13 at such dates, in such format, and containing such

14 information, as required by the Secretary of Health

15 and Human Services under section 453(i)(3), and

16 compliance with such provisions as such Secretary

17 may find necessary to ensure the correctness and ver18 ification of such reports.’’.

19 SEC. 417. COLLECTION AND USE OF SOCIAL SECURITY NUM20 BERS FOR USE IN CHILD SUPPORT ENFORCE21 MENT.

22 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

23 U.S.C. 666(a)), as amended by section 415 of this Act, is

24 amended by adding at the end the following new paragraph:
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1 ‘‘(13) Procedures requiring that the social secu2 rity number of—

3 ‘‘(A) any applicant for a professional li4 cense, commercial driver’s license, occupational

5 license, or marriage license be recorded on the

6 application;

7 ‘‘(B) any individual who is subject to a di8 vorce decree, support order, or paternity deter9 mination or acknowledgment be placed in the

10 records relating to the matter; and

11 ‘‘(C) any individual who has died be placed

12 in the records relating to the death and be re13 corded on the death certificate.’’.

14 (b) CONFORMING AMENDMENTS.—Section

15 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by sec16 tion 321(a)(9) of the Social Security Independence and

17 Program Improvements Act of 1994, is amended—

18 (1) in clause (i), by striking ‘‘may require’’ and

19 inserting ‘‘shall require’’;

20 (2) in clause (ii), by inserting after the 1st sen21 tence the following: ‘‘In the administration of any

22 law involving the issuance of a marriage certificate or

23 license, each State shall require each party named in

24 the certificate or license to furnish to the State (or po25 litical subdivision thereof), or any State agency hav-
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1 ing administrative responsibility for the law involved,

2 the social security number of the party.’’;

3 (3) in clause (vi), by striking ‘‘may’’ and insert4 ing ‘‘shall’’; and

5 (4) by adding at the end the following new

6 clauses:

7 ‘‘(x) An agency of a State (or a politi8 cal subdivision thereof) charged with the ad9 ministration of any law concerning the is10 suance or renewal of a license, certificate,

11 permit, or other authorization to engage in

12 a profession, an occupation, or a commer13 cial activity shall require all applicants for

14 issuance or renewal of the license, certifi15 cate, permit, or other authorization to pro16 vide the applicant’s social security number

17 to the agency for the purpose of administer18 ing such laws, and for the purpose of re19 sponding to requests for information from

20 an agency operating pursuant to part D of

21 title IV.

22 ‘‘(xi) All divorce decrees, support or23 ders, and paternity determinations issued,

24 and all paternity acknowledgments made,

25 in each State shall include the social secu-
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1 rity number of each party to the decree,

2 order, determination, or acknowledgement

3 in the records relating to the matter.’’.

4 Subtitle C—Streamlining and

5 Uniformity of Procedures

6 SEC. 421. ADOPTION OF UNIFORM STATE LAWS.

7 Section 466 (42 U.S.C. 666) is amended by adding

8 at the end the following new subsection:

9 ‘‘(f)(1) In order to satisfy section 454(20)(A) on or

10 after January 1, 1997, each State must have in effect the

11 Uniform Interstate Family Support Act, as approved by

12 the National Conference of Commissioners on Uniform

13 State Laws in August 1992 (with the modifications and

14 additions specified in this subsection), and the procedures

15 required to implement such Act.

16 ‘‘(2) The State law enacted pursuant to paragraph (1)

17 may be applied to any case involving an order which is

18 established or modified in a State and which is sought to

19 be modified or enforced in another State.

20 ‘‘(3) The State law enacted pursuant to paragraph (1)

21 of this subsection shall contain the following provision in

22 lieu of section 611(a)(1) of the Uniform Interstate Family

23 Support Act:

24 ‘‘ ‘(1) the following requirements are met:
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1 ‘‘ ‘(i) the child, the individual obligee, and

2 the obligor—

3 ‘‘ ‘(I) do not reside in the issuing State;

4 and

5 ‘‘ ‘(II) either reside in this State or are

6 subject to the jurisdiction of this State pur7 suant to section 201; and

8 ‘‘ ‘(ii) in any case where another State is

9 exercising or seeks to exercise jurisdiction to

10 modify the order, the conditions of section 204

11 are met to the same extent as required for pro12 ceedings to establish orders; or’.

13 ‘‘(4) The State law enacted pursuant to paragraph (1)

14 shall provide that, in any proceeding subject to the law,

15 process may be served (and proved) upon persons in the

16 State by any means acceptable in any State which is the

17 initiating or responding State in the proceeding.’’.

18 SEC. 422. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR

19 CHILD SUPPORT ORDERS.

20 Section 1738B of title 28, United States Code, is

21 amended—

22 (1) in subsection (a)(2), by striking ‘‘subsection

23 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

24 (2) in subsection (b), by inserting after the 2nd

25 undesignated paragraph the following:
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1 ‘‘ ‘child’s home State’ means the State in which

2 a child lived with a parent or a person acting as par3 ent for at least 6 consecutive months immediately pre4 ceding the time of filing of a petition or comparable

5 pleading for support and, if a child is less than 6

6 months old, the State in which the child lived from

7 birth with any of them. A period of temporary ab8 sence of any of them is counted as part of the 6-month

9 period.’’;

10 (3) in subsection (c), by inserting ‘‘by a court of

11 a State’’ before ‘‘is made’’;

12 (4) in subsection (c)(1), by inserting ‘‘and sub13 sections (e), (f), and (g)’’ after ‘‘located’’;

14 (5) in subsection (d)—

15 (A) by inserting ‘‘individual’’ before ‘‘con16 testant’’; and

17 (B) by striking ‘‘subsection (e)’’ and insert18 ing ‘‘subsections (e) and (f)’’;

19 (6) in subsection (e), by striking ‘‘make a modi20 fication of a child support order with respect to a

21 child that is made’’ and inserting ‘‘modify a child

22 support order issued’’;

23 (7) in subsection (e)(1), by inserting ‘‘pursuant

24 to subsection (i)’’ before the semicolon;

25 (8) in subsection (e)(2)—
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1 (A) by inserting ‘‘individual’’ before ‘‘con2 testant’’ each place such term appears; and

3 (B) by striking ‘‘to that court’s making the

4 modification and assuming’’ and inserting ‘‘with

5 the State of continuing, exclusive jurisdiction for

6 a court of another State to modify the order and

7 assume’’;

8 (9) by redesignating subsections (f) and (g) as

9 subsections (g) and (h), respectively;

10 (10) by inserting after subsection (e) the follow11 ing new subsection:

12 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If

13 1 or more child support orders have been issued in this or

14 another State with regard to an obligor and a child, a court

15 shall apply the following rules in determining which order

16 to recognize for purposes of continuing, exclusive jurisdic17 tion and enforcement:

18 ‘‘(1) If only 1 court has issued a child support

19 order, the order of that court must be recognized.

20 ‘‘(2) If 2 or more courts have issued child sup21 port orders for the same obligor and child, and only

22 1 of the courts would have continuing, exclusive juris23 diction under this section, the order of that court

24 must be recognized.
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1 ‘‘(3) If 2 or more courts have issued child sup2 port orders for the same obligor and child, and more

3 than 1 of the courts would have continuing, exclusive

4 jurisdiction under this section, an order issued by a

5 court in the current home State of the child must be

6 recognized, but if an order has not been issued in the

7 current home State of the child, the order most re8 cently issued must be recognized.

9 ‘‘(4) If 2 or more courts have issued child sup10 port orders for the same obligor and child, and none

11 of the courts would have continuing, exclusive juris12 diction under this section, a court may issue a child

13 support order, which must be recognized.

14 ‘‘(5) The court that has issued an order recog15 nized under this subsection is the court having con16 tinuing, exclusive jurisdiction.’’;

17 (11) in subsection (g) (as so redesignated)—

18 (A) by striking ‘‘PRIOR’’ and inserting

19 ‘‘MODIFIED’’; and

20 (B) by striking ‘‘subsection (e)’’ and insert21 ing ‘‘subsections (e) and (f)’’;

22 (12) in subsection (h) (as so redesignated)—

23 (A) in paragraph (2), by inserting ‘‘includ24 ing the duration of current payments and other

25 obligations of support’’ before the comma; and
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1 (B) in paragraph (3), by inserting ‘‘arrears

2 under’’ after ‘‘enforce’’; and

3 (13) by adding at the end the following new sub4 section:

5 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

6 no individual contestant or child residing in the issuing

7 State, the party or support enforcement agency seeking to

8 modify, or to modify and enforce, a child support order is9 sued in another State shall register that order in a State

10 with jurisdiction over the nonmovant for the purpose of

11 modification.’’.

12 SEC. 423. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

13 CASES.

14 Section 466(a) (42 U.S.C. 666(a)), as amended by sec15 tions 415 and 417(a) of this Act, is amended by adding

16 at the end the following new paragraph:

17 ‘‘(14) Procedures under which—

18 ‘‘(A)(i) the State shall respond within 5

19 business days to a request made by another State

20 to enforce a support order; and

21 ‘‘(ii) the term ‘business day’ means a day

22 on which State offices are open for regular busi23 ness;

24 ‘‘(B) the State may, by electronic or other

25 means, transmit to another State a request for
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1 assistance in a case involving the enforcement of

2 a support order, which request—

3 ‘‘(i) shall include such information as

4 will enable the State to which the request is

5 transmitted to compare the information

6 about the case to the information in the

7 data bases of the State; and

8 ‘‘(ii) shall constitute a certification by

9 the requesting State—

10 ‘‘(I) of the amount of support

11 under the order the payment of which

12 is in arrears; and

13 ‘‘(II) that the requesting State has

14 complied with all procedural due proc15 ess requirements applicable to the case;

16 ‘‘(C) if the State provides assistance to an17 other State pursuant to this paragraph with re18 spect to a case, neither State shall consider the

19 case to be transferred to the caseload of such

20 other State; and

21 ‘‘(D) the State shall maintain records of—

22 ‘‘(i) the number of such requests for as23 sistance received by the State;
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1 ‘‘(ii) the number of cases for which the

2 State collected support in response to such

3 a request; and

4 ‘‘(iii) the amount of such collected sup5 port.’’.

6 SEC. 424. USE OF FORMS IN INTERSTATE ENFORCEMENT.

7 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

8 652(a)) is amended—

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

10 (9);

11 (2) by striking the period at the end of para12 graph (10) and inserting ‘‘; and’’; and

13 (3) by adding at the end the following new para14 graph:

15 ‘‘(11) not later than June 30, 1996, promulgate

16 forms to be used by States in interstate cases for—

17 ‘‘(A) collection of child support through in18 come withholding;

19 ‘‘(B) imposition of liens; and

20 ‘‘(C) administrative subpoenas.’’.

21 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

22 654(9)) is amended—

23 (1) by striking ‘‘and’’ at the end of subpara24 graph (C);
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1 (2) by inserting ‘‘and’’ at the end of subpara2 graph (D); and

3 (3) by adding at the end the following new sub4 paragraph:

5 ‘‘(E) no later than October 1, 1996, in

6 using the forms promulgated pursuant to section

7 452(a)(11) for income withholding, imposition of

8 liens, and issuance of administrative subpoenas

9 in interstate child support cases;’’.

10 SEC. 425. STATE LAWS PROVIDING EXPEDITED PROCE11 DURES.

12 (a) STATE LAW REQUIREMENTS.—Section 466 (42

13 U.S.C. 666), as amended by section 414 of this Act, is

14 amended—

15 (1) in subsection (a)(2), by striking the 1st sen16 tence and inserting the following: ‘‘Expedited admin17 istrative and judicial procedures (including the proce18 dures specified in subsection (c)) for establishing pa19 ternity and for establishing, modifying, and enforcing

20 support obligations.’’; and

21 (2) by inserting after subsection (b) the following

22 new subsection:

23 ‘‘(c) The procedures specified in this subsection are the

24 following:
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1 ‘‘(1) Procedures which give the State agency the

2 authority to take the following actions relating to es3 tablishment or enforcement of support orders, without

4 the necessity of obtaining an order from any other ju5 dicial or administrative tribunal, and to recognize

6 and enforce the authority of State agencies of other

7 States) to take the following actions:

8 ‘‘(A) To order genetic testing for the pur9 pose of paternity establishment as provided in

10 section 466(a)(5).

11 ‘‘(B) To enter a default order, upon a show12 ing of service of process and any additional

13 showing required by State law—

14 ‘‘(i) establishing paternity, in the case

15 of a putative father who refuses to submit to

16 genetic testing; and

17 ‘‘(ii) establishing or modifying a sup18 port obligation, in the case of a parent (or

19 other obligor or obligee) who fails to respond

20 to notice to appear at a proceeding for such

21 purpose.

22 ‘‘(C) To subpoena any financial or other in23 formation needed to establish, modify, or enforce

24 a support order, and to impose penalties for fail25 ure to respond to such a subpoena.
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1 ‘‘(D) To require all entities in the State (in2 cluding for-profit, nonprofit, and governmental

3 employers) to provide promptly, in response to a

4 request by the State agency of that or any other

5 State administering a program under this part,

6 information on the employment, compensation,

7 and benefits of any individual employed by such

8 entity as an employee or contractor, and to sanc9 tion failure to respond to any such request.

10 ‘‘(E) To obtain access, subject to safeguards

11 on privacy and information security, to the fol12 lowing records (including automated access, in

13 the case of records maintained in automated

14 data bases):

15 ‘‘(i) Records of other State and local

16 government agencies, including—

17 ‘‘(I) vital statistics (including

18 records of marriage, birth, and di19 vorce);

20 ‘‘(II) State and local tax and rev21 enue records (including information on

22 residence address, employer, income

23 and assets);

24 ‘‘(III) records concerning real and

25 titled personal property;
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1 ‘‘(IV) records of occupational and

2 professional licenses, and records con3 cerning the ownership and control of

4 corporations, partnerships, and other

5 business entities;

6 ‘‘(V) employment security records;

7 ‘‘(VI) records of agencies admin8 istering public assistance programs;

9 ‘‘(VII) records of the motor vehicle

10 department; and

11 ‘‘(VIII) corrections records.

12 ‘‘(ii) Certain records held by private

13 entities, including—

14 ‘‘(I) customer records of public

15 utilities and cable television compa16 nies; and

17 ‘‘(II) information (including in18 formation on assets and liabilities) on

19 individuals who owe or are owed sup20 port (or against or with respect to

21 whom a support obligation is sought)

22 held by financial institutions (subject

23 to limitations on liability of such enti24 ties arising from affording such ac25 cess).
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1 ‘‘(F) In cases where support is subject to an

2 assignment in order to comply with a require3 ment imposed pursuant to part A or section

4 1912, or to a requirement to pay through the

5 State disbursement unit established pursuant to

6 section 454B, upon providing notice to obligor

7 and obligee, to direct the obligor or other payor

8 to change the payee to the appropriate govern9 ment entity.

10 ‘‘(G) To order income withholding in ac11 cordance with subsections (a)(1) and (b) of sec12 tion 466.

13 ‘‘(H) In cases in which there is a support

14 arrearage, to secure assets to satisfy the arrear15 age by—

16 ‘‘(i) intercepting or seizing periodic or

17 lump-sum payments from—

18 ‘‘(I) a State or local agency, in19 cluding unemployment compensation,

20 workers’ compensation, and other bene21 fits; and

22 ‘‘(II) judgments, settlements, and

23 lotteries;

24 ‘‘(ii) attaching and seizing assets of the

25 obligor held in financial institutions;
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1 ‘‘(iii) attaching public and private re2 tirement funds; and

3 ‘‘(iv) imposing liens in accordance

4 with subsection (a)(4) and, in appropriate

5 cases, to force sale of property and distribu6 tion of proceeds.

7 ‘‘(I) For the purpose of securing overdue

8 support, to increase the amount of monthly sup9 port payments to include amounts for arrear10 ages, subject to such conditions or limitations as

11 the State may provide.

12 Such procedures shall be subject to due process safe13 guards, including (as appropriate) requirements for

14 notice, opportunity to contest the action, and oppor15 tunity for an appeal on the record to an independent

16 administrative or judicial tribunal.

17 ‘‘(2) The expedited procedures required under

18 subsection (a)(2) shall include the following rules and

19 authority, applicable with respect to all proceedings

20 to establish paternity or to establish, modify, or en21 force support orders:

22 ‘‘(A) Procedures under which—

23 ‘‘(i) each party to any paternity or

24 child support proceeding is required (subject

25 to privacy safeguards) to file with the tribu-
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1 nal and the State case registry upon entry

2 of an order, and to update as appropriate,

3 information on location and identity of the

4 party, including social security number,

5 residential and mailing addresses, telephone

6 number, driver’s license number, and name,

7 address, and name and telephone number of

8 employer; and

9 ‘‘(ii) in any subsequent child support

10 enforcement action between the parties,

11 upon sufficient showing that diligent effort

12 has been made to ascertain the location of

13 such a party, the tribunal may deem State

14 due process requirements for notice and

15 service of process to be met with respect to

16 the party, upon delivery of written notice to

17 the most recent residential or employer ad18 dress filed with the tribunal pursuant to

19 clause (i).

20 ‘‘(B) Procedures under which—

21 ‘‘(i) the State agency and any admin22 istrative or judicial tribunal with authority

23 to hear child support and paternity cases

24 exerts statewide jurisdiction over the par25 ties; and
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1 ‘‘(ii) in a State in which orders are is2 sued by courts or administrative tribunals,

3 a case may be transferred between local ju4 risdictions in the State without need for

5 any additional filing by the petitioner, or

6 service of process upon the respondent, to re7 tain jurisdiction over the parties.’’.

8 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

9 Section 454A, as added by section 445(a)(2) of this Act and

10 as amended by sections 411 and 412(c) of this Act, is

11 amended by adding at the end the following new subsection:

12 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

13 The automated system required by this section shall be used,

14 to the maximum extent feasible, to implement the expedited

15 administrative procedures required by section 466(c).’’.

16 Subtitle D—Paternity

17 Establishment

18 SEC. 431. STATE LAWS CONCERNING PATERNITY ESTAB19 LISHMENT.

20 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

21 U.S.C. 666(a)(5)) is amended to read as follows:

22 ‘‘(5)(A)(i) Procedures which permit the establish23 ment of the paternity of a child at any time before

24 the child attains 21 years of age.
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1 ‘‘(ii) As of August 16, 1984, clause (i) shall also

2 apply to a child for whom paternity has not been es3 tablished or for whom a paternity action was brought

4 but dismissed because a statute of limitations of less

5 than 21 years was then in effect in the State.

6 ‘‘(B)(i) Procedures under which the State is re7 quired, in a contested paternity case, unless otherwise

8 barred by State law, to require the child and all other

9 parties (other than individuals found under section

10 454(28) to have good cause for refusing to cooperate)

11 to submit to genetic tests upon the request of any such

12 party if the request is supported by a sworn statement

13 by the party—

14 ‘‘(I) alleging paternity, and setting forth

15 facts establishing a reasonable possibility of the

16 requisite sexual contact between the parties; or

17 ‘‘(II) denying paternity, and setting forth

18 facts establishing a reasonable possibility of the

19 nonexistence of sexual contact between the par20 ties.

21 ‘‘(ii) Procedures which require the State agency

22 in any case in which the agency orders genetic test23 ing—
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1 ‘‘(I) to pay costs of such tests, subject to

2 recoupment (where the State so elects) from the

3 alleged father if paternity is established; and

4 ‘‘(II) to obtain additional testing in any

5 case where an original test result is contested,

6 upon request and advance payment by the con7 testant.

8 ‘‘(C)(i) Procedures for a simple civil process for

9 voluntarily acknowledging paternity under which the

10 State must provide that, before a mother and a puta11 tive father can sign an acknowledgment of paternity,

12 the mother and the putative father must be given no13 tice, orally and in writing, of the alternatives to, the

14 legal consequences of, and the rights (including, if 1

15 parent is a minor, any rights afforded due to minor16 ity status) and responsibilities that arise from, sign17 ing the acknowledgment.

18 ‘‘(ii) Such procedures must include a hospital19 based program for the voluntary acknowledgment of

20 paternity focusing on the period immediately before

21 or after the birth of a child.

22 ‘‘(iii)(I) Such procedures must require the State

23 agency responsible for maintaining birth records to

24 offer voluntary paternity establishment services.
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1 ‘‘(II)(aa) The Secretary shall prescribe regula2 tions governing voluntary paternity establishment

3 services offered by hospitals and birth record agencies.

4 ‘‘(bb) The Secretary shall prescribe regulations

5 specifying the types of other entities that may offer

6 voluntary paternity establishment services, and gov7 erning the provision of such services, which shall in8 clude a requirement that such an entity must use the

9 same notice provisions used by, use the same mate10 rials used by, provide the personnel providing such

11 services with the same training provided by, and

12 evaluate the provision of such services in the same

13 manner as the provision of such services is evaluated

14 by, voluntary paternity establishment programs of

15 hospitals and birth record agencies.

16 ‘‘(iv) Such procedures must require the State to

17 develop and use an affidavit for the voluntary ac18 knowledgment of paternity which includes the mini19 mum requirements of the affidavit developed by the

20 Secretary under section 452(a)(7) for the voluntary

21 acknowledgment of paternity, and to give full faith

22 and credit to such an affidavit signed in any other

23 State according to its procedures.

24 ‘‘(D)(i) Procedures under which the name of the

25 father shall be included on the record of birth of the
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1 child only if the father and mother have signed an ac2 knowledgment of paternity and under which a signed

3 acknowledgment of paternity is considered a legal

4 finding of paternity, subject to the right of any signa5 tory to rescind the acknowledgment within 60 days.

6 ‘‘(ii) Procedures under which, after the 60-day

7 period referred to in clause (i), a signed acknowledg8 ment of paternity may be challenged in court only on

9 the basis of fraud, duress, or material mistake of fact,

10 with the burden of proof upon the challenger, and

11 under which the legal responsibilities (including child

12 support obligations) of any signatory arising from the

13 acknowledgment may not be suspended during the

14 challenge, except for good cause shown.

15 ‘‘(E) Procedures under which judicial or admin16 istrative proceedings are not required or permitted to

17 ratify an unchallenged acknowledgment of paternity.

18 ‘‘(F) Procedures—

19 ‘‘(i) requiring the admission into evidence,

20 for purposes of establishing paternity, of the re21 sults of any genetic test that is—

22 ‘‘(I) of a type generally acknowledged

23 as reliable by accreditation bodies des24 ignated by the Secretary; and
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1 ‘‘(II) performed by a laboratory ap2 proved by such an accreditation body;

3 ‘‘(ii) requiring an objection to genetic test4 ing results to be made in writing not later than

5 a specified number of days before any hearing at

6 which the results may be introduced into evi7 dence (or, at State option, not later than a speci8 fied number of days after receipt of the results);

9 and

10 ‘‘(iii) making the test results admissible as

11 evidence of paternity without the need for foun12 dation testimony or other proof of authenticity

13 or accuracy, unless objection is made.

14 ‘‘(G) Procedures which create a rebuttable or, at

15 the option of the State, conclusive presumption of pa16 ternity upon genetic testing results indicating a

17 threshold probability that the alleged father is the fa18 ther of the child.

19 ‘‘(H) Procedures requiring a default order to be

20 entered in a paternity case upon a showing of service

21 of process on the defendant and any additional show22 ing required by State law.

23 ‘‘(I) Procedures providing that the parties to an

24 action to establish paternity are not entitled to a trial

25 by jury.
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1 ‘‘(J) Procedures which require that a temporary

2 order be issued, upon motion by a party, requiring

3 the provision of child support pending an adminis4 trative or judicial determination of parentage, where

5 there is clear and convincing evidence of paternity

6 (on the basis of genetic tests or other evidence).

7 ‘‘(K) Procedures under which bills for preg8 nancy, childbirth, and genetic testing are admissible

9 as evidence without requiring third-party foundation

10 testimony, and shall constitute prima facie evidence

11 of amounts incurred for such services or for testing on

12 behalf of the child.

13 ‘‘(L) Procedures ensuring that the putative fa14 ther has a reasonable opportunity to initiate a pater15 nity action.

16 ‘‘(M) Procedures under which voluntary ac17 knowledgments and adjudications of paternity by ju18 dicial or administrative processes are filed with the

19 State registry of birth records for comparison with in20 formation in the State case registry.’’.

21 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDA22 VIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended

23 by inserting ‘‘, and develop an affidavit to be used for the

24 voluntary acknowledgment of paternity which shall include
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1 the social security number of each parent’’ before the semi2 colon.

3 (c) TECHNICAL AMENDMENT.—Section 468 (42 U.S.C.

4 668) is amended by striking ‘‘a simple civil process for vol5 untarily acknowledging paternity and’’.

6 SEC. 432. OUTREACH FOR VOLUNTARY PATERNITY ESTAB7 LISHMENT.

8 Section 454(23) (42 U.S.C. 654(23)) is amended by

9 inserting ‘‘and will publicize the availability and encourage

10 the use of procedures for voluntary establishment of pater11 nity and child support by means the State deems appro12 priate’’ before the semicolon.

13 SEC. 433. COOPERATION BY APPLICANTS FOR AND RECIPI14 ENTS OF TEMPORARY FAMILY ASSISTANCE.

15 Section 454 (42 U.S.C. 654), as amended by sections

16 404(a), 412(a), and 413(a) of this Act, is amended—

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

18 (26);

19 (2) by striking the period at the end of para20 graph (27) and inserting ‘‘; and’’; and

21 (3) by inserting after paragraph (27) the follow22 ing new paragraph:

23 ‘‘(28) provide that the State agency responsible

24 for administering the State plan—
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1 ‘‘(A) shall make the determination (and re2 determination at appropriate intervals) as to

3 whether an individual who has applied for or is

4 receiving assistance under the State program

5 funded under part A is cooperating in good faith

6 with the State in establishing the paternity of, or

7 in establishing, modifying, or enforcing a sup8 port order for, any child of the individual by

9 providing the State agency with the name of,

10 and such other information as the State agency

11 may require with respect to, the father of the

12 child, subject to such good cause and other excep13 tions as the State may establish and taking into

14 account the best interests of the child;

15 ‘‘(B) shall require the individual to supply

16 additional necessary information and appear at

17 interviews, hearings, and legal proceedings;

18 ‘‘(C) shall require the individual and the

19 child to submit to genetic tests pursuant to judi20 cial or administrative order; and

21 ‘‘(D) shall promptly notify the individual

22 and the State agency administering the State

23 program funded under part A of each such deter24 mination, and if noncooperation is determined,

25 the basis therefore.’’.
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1 Subtitle E—Program

2 Administration and Funding

3 SEC. 441. FEDERAL MATCHING PAYMENTS.

4 (a) INCREASED BASE MATCHING RATE.—Section

5 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as fol6 lows:

7 ‘‘(2) The percent specified in this paragraph for any

8 quarter is 66 percent.’’.

9 (b) MAINTENANCE OF EFFORT.—Section 455 (42

10 U.S.C. 655) is amended—

11 (1) in subsection (a)(1), in the matter preceding

12 subparagraph (A), by striking ‘‘From’’ and inserting

13 ‘‘Subject to subsection (c), from’’; and

14 (2) by inserting after subsection (b) the following

15 new subsection:

16 ‘‘(c) Notwithstanding subsection (a), the total expendi17 tures under the State plan approved under this part for

18 fiscal year 1997 and each succeeding fiscal year, reduced

19 by the percentage specified in paragraph (2) for the fiscal

20 year shall not be less than such total expenditures for fiscal

21 year 1996, reduced by 66 percent.’’.
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1 SEC. 442. PERFORMANCE-BASED INCENTIVES AND PEN2 ALTIES.

3 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCHING

4 RATE.—Section 458 (42 U.S.C. 658) is amended to read

5 as follows:

6 ‘‘SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

7 ‘‘(a) INCENTIVE ADJUSTMENTS.—

8 ‘‘(1) IN GENERAL.—Beginning with fiscal year

9 1999, the Secretary shall increase the percent speci10 fied in section 455(a)(2) that applies to payments to

11 a State under section 455(a)(1)(A) for each quarter

12 in a fiscal year by a factor reflecting the sum of the

13 applicable incentive adjustments (if any) determined

14 in accordance with regulations under this section

15 with respect to the paternity establishment percentage

16 of the State for the immediately preceding fiscal year

17 and with respect to overall performance of the State

18 in child support enforcement during such preceding

19 fiscal year.

20 ‘‘(2) STANDARDS.—

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

22 specify in regulations—

23 ‘‘(i) the levels of accomplishment, and

24 rates of improvement as alternatives to such

25 levels, which a State must attain to qualify
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1 for an incentive adjustment under this sec2 tion; and

3 ‘‘(ii) the amounts of incentive adjust4 ment that shall be awarded to a State that

5 achieves specified accomplishment or im6 provement levels, which amounts shall be

7 graduated, ranging up to—

8 ‘‘(I) 12 percentage points, in con9 nection with paternity establishment;

10 and

11 ‘‘(II) 12 percentage points, in

12 connection with overall performance in

13 child support enforcement.

14 ‘‘(B) LIMITATION.—In setting performance

15 standards pursuant to subparagraph (A)(i) and

16 adjustment amounts pursuant to subparagraph

17 (A)(ii), the Secretary shall ensure that the aggre18 gate number of percentage point increases as in19 centive adjustments to all States do not exceed

20 such aggregate increases as assumed by the Sec21 retary in estimates of the cost of this section as

22 of June 1994, unless the aggregate performance

23 of all States exceeds the projected aggregate per24 formance of all States in such cost estimates.
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1 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST2 MENT.—The Secretary shall determine the amount (if

3 any) of the incentive adjustment due each State on

4 the basis of the data submitted by the State pursuant

5 to section 454(15)(B) concerning the levels of accom6 plishment (and rates of improvement) with respect to

7 performance indicators specified by the Secretary

8 pursuant to this section.

9 ‘‘(4) RECYCLING OF INCENTIVE ADJUSTMENT.—A

10 State to which funds are paid by the Federal Govern11 ment as a result of an incentive adjustment under

12 this section shall expend the funds in the State pro13 gram under this part within 2 years after the date

14 of the payment.

15 ‘‘(b) DEFINITIONS.—As used in this section:

16 ‘‘(1) PATERNITY ESTABLISHMENT PERCENT17 AGE.—The term ‘paternity establishment percentage’

18 means, with respect to a State and a fiscal year—

19 ‘‘(A) the total number of children in the

20 State who were born out of wedlock, who have

21 not attained 1 year of age and for whom pater22 nity is established or acknowledged during the

23 fiscal year; divided by

24 ‘‘(B) the total number of children born out

25 of wedlock in the State during the fiscal year.
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1 ‘‘(2) OVERALL PERFORMANCE IN CHILD SUPPORT

2 ENFORCEMENT.—The term ‘overall performance in

3 child support enforcement’ means a measure or meas4 ures of the effectiveness of the State agency in a fiscal

5 year which takes into account factors including—

6 ‘‘(A) the percentage of cases requiring a

7 support order in which such an order was estab8 lished;

9 ‘‘(B) the percentage of cases in which child

10 support is being paid;

11 ‘‘(C) the ratio of child support collected to

12 child support due; and

13 ‘‘(D) the cost-effectiveness of the State pro14 gram, as determined in accordance with stand15 ards established by the Secretary in regulations

16 (after consultation with the States).

17 ‘‘(3) STATE DEFINED.—The term ‘State’ does not

18 include any area within the jurisdiction of an Indian

19 tribal government.’’.

20 (b) CONFORMING AMENDMENTS.—Section 454(22) (42

21 U.S.C. 654(22)) is amended—

22 (1) by striking ‘‘incentive payments’’ the 1st

23 place such term appears and inserting ‘‘incentive ad24 justments’’; and
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1 (2) by striking ‘‘any such incentive payments

2 made to the State for such period’’ and inserting

3 ‘‘any increases in Federal payments to the State re4 sulting from such incentive adjustments’’.

5 (c) CALCULATION OF IV–D PATERNITY ESTABLISH6 MENT PERCENTAGE.—

7 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

8 amended—

9 (A) in the matter preceding subparagraph

10 (A) by inserting ‘‘its overall performance in

11 child support enforcement is satisfactory (as de12 fined in section 458(b) and regulations of the

13 Secretary), and’’ after ‘‘1994,’’; and

14 (B) in each of subparagraphs (A) and (B),

15 by striking ‘‘75’’ and inserting ‘‘90’’.

16 (2) Section 452(g)(2)(A) (42 U.S.C.

17 652(g)(2)(A)) is amended in the matter preceding

18 clause (i)—

19 (A) by striking ‘‘paternity establishment

20 percentage’’ and inserting ‘‘IV–D paternity es21 tablishment percentage’’; and

22 (B) by striking ‘‘(or all States, as the case

23 may be)’’.

24 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

25 amended—
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1 (A) by striking subparagraph (A) and re2 designating subparagraphs (B) and (C) as sub3 paragraphs (A) and (B), respectively;

4 (B) in subparagraph (A) (as so redesig5 nated), by striking ‘‘the percentage of children

6 born out-of-wedlock in a State’’ and inserting

7 ‘‘the percentage of children in a State who are

8 born out of wedlock or for whom support has not

9 been established’’; and

10 (C) in subparagraph (B) (as so redesig11 nated)—

12 (i) by inserting ‘‘and overall perform13 ance in child support enforcement’’ after

14 ‘‘paternity establishment percentages’’; and

15 (ii) by inserting ‘‘and securing sup16 port’’ before the period.

17 (d) EFFECTIVE DATES.—

18 (1) INCENTIVE ADJUSTMENTS.—

19 (A) IN GENERAL.—The amendments made

20 by subsections (a) and (b) shall become effective

21 on October 1, 1997, except to the extent provided

22 in subparagraph (B).

23 (B) EXCEPTION.—Section 458 of the Social

24 Security Act, as in effect before the date of the

25 enactment of this section, shall be effective for
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1 purposes of incentive payments to States for fis2 cal years before fiscal year 1999.

3 (2) PENALTY REDUCTIONS.—The amendments

4 made by subsection (c) shall become effective with re5 spect to calendar quarters beginning on and after the

6 date of the enactment of this Act.

7 SEC. 443. FEDERAL AND STATE REVIEWS AND AUDITS.

8 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

9 U.S.C. 654) is amended—

10 (1) in paragraph (14), by striking ‘‘(14)’’ and

11 inserting ‘‘(14)(A)’’;

12 (2) by redesignating paragraph (15) as subpara13 graph (B) of paragraph (14); and

14 (3) by inserting after paragraph (14) the follow15 ing new paragraph:

16 ‘‘(15) provide for—

17 ‘‘(A) a process for annual reviews of and re18 ports to the Secretary on the State program op19 erated under the State plan approved under this

20 part, which shall include such information as

21 may be necessary to measure State compliance

22 with Federal requirements for expedited proce23 dures, using such standards and procedures as

24 are required by the Secretary, under which the

25 State agency will determine the extent to which
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1 the program is operated in compliance with this

2 part; and

3 ‘‘(B) a process of extracting from the auto4 mated data processing system required by para5 graph (16) and transmitting to the Secretary

6 data and calculations concerning the levels of ac7 complishment (and rates of improvement) with

8 respect to applicable performance indicators (in9 cluding IV–D paternity establishment percent10 ages and overall performance in child support

11 enforcement) to the extent necessary for purposes

12 of sections 452(g) and 458.’’.

13 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

14 U.S.C. 652(a)(4)) is amended to read as follows:

15 ‘‘(4)(A) review data and calculations transmitted

16 by State agencies pursuant to section 454(15)(B) on

17 State program accomplishments with respect to per18 formance indicators for purposes of subsection (g) of

19 this section and section 458;

20 ‘‘(B) review annual reports submitted pursuant

21 to section 454(15)(A) and, as appropriate, provide to

22 the State comments, recommendations for additional

23 or alternative corrective actions, and technical assist24 ance; and
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1 ‘‘(C) conduct audits, in accordance with the Gov2 ernment auditing standards of the Comptroller Gen3 eral of the United States—

4 ‘‘(i) at least once every 3 years (or more fre5 quently, in the case of a State which fails to

6 meet the requirements of this part, concerning

7 performance standards and reliability of pro8 gram data) to assess the completeness, reliability,

9 and security of the data, and the accuracy of the

10 reporting systems, used in calculating perform11 ance indicators under subsection (g) of this sec12 tion and section 458;

13 ‘‘(ii) of the adequacy of financial manage14 ment of the State program operated under the

15 State plan approved under this part, including

16 assessments of—

17 ‘‘(I) whether Federal and other funds

18 made available to carry out the State pro19 gram are being appropriately expended,

20 and are properly and fully accounted for;

21 and

22 ‘‘(II) whether collections and disburse23 ments of support payments are carried out

24 correctly and are fully accounted for; and
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1 ‘‘(iii) for such other purposes as the Sec2 retary may find necessary;’’.

3 (c) EFFECTIVE DATE.—The amendments made by this

4 section shall be effective with respect to calendar quarters

5 beginning 12 months or more after the date of the enactment

6 of this section.

7 SEC. 444. REQUIRED REPORTING PROCEDURES.

8 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

9 652(a)(5)) is amended by inserting ‘‘, and establish proce10 dures to be followed by States for collecting and reporting

11 information required to be provided under this part, and

12 establish uniform definitions (including those necessary to

13 enable the measurement of State compliance with the re14 quirements of this part relating to expedited processes) to

15 be applied in following such procedures’’ before the semi16 colon.

17 (b) STATE PLAN REQUIREMENT.—Section 454 (42

18 U.S.C. 654), as amended by sections 404(a), 412(a), 413(a),

19 and 433 of this Act, is amended—

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

21 (27);

22 (2) by striking the period at the end of para23 graph (28) and inserting ‘‘; and’’; and

24 (3) by adding after paragraph (28) the following

25 new paragraph:
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1 ‘‘(29) provide that the State shall use the defini2 tions established under section 452(a)(5) in collecting

3 and reporting information as required under this

4 part.’’.

5 SEC. 445. AUTOMATED DATA PROCESSING REQUIREMENTS.

6 (a) REVISED REQUIREMENTS.—

7 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

8 654(16)) is amended—

9 (A) by striking ‘‘, at the option of the

10 State,’’;

11 (B) by inserting ‘‘and operation by the

12 State agency’’ after ‘‘for the establishment’’;

13 (C) by inserting ‘‘meeting the requirements

14 of section 454A’’ after ‘‘information retrieval sys15 tem’’;

16 (D) by striking ‘‘in the State and localities

17 thereof, so as (A)’’ and inserting ‘‘so as’’;

18 (E) by striking ‘‘(i)’’; and

19 (F) by striking ‘‘(including’’ and all that

20 follows and inserting a semicolon.

21 (2) AUTOMATED DATA PROCESSING.—Part D of

22 title IV (42 U.S.C. 651–669) is amended by inserting

23 after section 454 the following new section:
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1 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

2 ‘‘(a) IN GENERAL.—In order for a State to meet the

3 requirements of this section, the State agency administering

4 the State program under this part shall have in operation

5 a single statewide automated data processing and informa6 tion retrieval system which has the capability to perform

7 the tasks specified in this section with the frequency and

8 in the manner required by or under this part.

9 ‘‘(b) PROGRAM MANAGEMENT.—The automated system

10 required by this section shall perform such functions as the

11 Secretary may specify relating to management of the State

12 program under this part, including—

13 ‘‘(1) controlling and accounting for use of Fed14 eral, State, and local funds in carrying out the pro15 gram; and

16 ‘‘(2) maintaining the data necessary to meet

17 Federal reporting requirements under this part on a

18 timely basis.

19 ‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—

20 In order to enable the Secretary to determine the incentive

21 and penalty adjustments required by sections 452(g) and

22 458, the State agency shall—

23 ‘‘(1) use the automated system—

24 ‘‘(A) to maintain the requisite data on

25 State performance with respect to paternity es-
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1 tablishment and child support enforcement in the

2 State; and

3 ‘‘(B) to calculate the IV–D paternity estab4 lishment percentage and overall performance in

5 child support enforcement for the State for each

6 fiscal year; and

7 ‘‘(2) have in place systems controls to ensure the

8 completeness, and reliability of, and ready access to,

9 the data described in paragraph (1)(A), and the accu10 racy of the calculations described in paragraph

11 (1)(B).

12 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

13 State agency shall have in effect safeguards on the integrity,

14 accuracy, and completeness of, access to, and use of data

15 in the automated system required by this section, which

16 shall include the following (in addition to such other safe17 guards as the Secretary may specify in regulations):

18 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

19 policies concerning access to data by State agency

20 personnel, and sharing of data with other persons,

21 which—

22 ‘‘(A) permit access to and use of data only

23 to the extent necessary to carry out the State

24 program under this part; and
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1 ‘‘(B) specify the data which may be used for

2 particular program purposes, and the personnel

3 permitted access to such data.

4 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

5 (such as passwords or blocking of fields) to ensure

6 strict adherence to the policies described in paragraph

7 (1).

8 ‘‘(3) MONITORING OF ACCESS.—Routine mon9 itoring of access to and use of the automated system,

10 through methods such as audit trails and feedback

11 mechanisms, to guard against and promptly identify

12 unauthorized access or use.

13 ‘‘(4) TRAINING AND INFORMATION.—Procedures

14 to ensure that all personnel (including State and local

15 agency staff and contractors) who may have access to

16 or be required to use confidential program data are

17 informed of applicable requirements and penalties

18 (including those in section 6103 of the Internal Reve19 nue Code of 1986), and are adequately trained in se20 curity procedures.

21 ‘‘(5) PENALTIES.—Administrative penalties (up

22 to and including dismissal from employment) for un23 authorized access to, or disclosure or use of, confiden24 tial data.’’.
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1 (3) REGULATIONS.—The Secretary of Health and

2 Human Services shall prescribe final regulations for

3 implementation of section 454A of the Social Security

4 Act not later than 2 years after the date of the enact5 ment of this Act.

6 (4) IMPLEMENTATION TIMETABLE.—Section

7 454(24) (42 U.S.C. 654(24)), as amended by sections

8 404(a)(2) and 412(a)(1) of this Act, is amended to

9 read as follows:

10 ‘‘(24) provide that the State will have in effect

11 an automated data processing and information re12 trieval system—

13 ‘‘(A) by October 1, 1997, which meets all re14 quirements of this part which were enacted on or

15 before the date of enactment of the Family Sup16 port Act of 1988; and

17 ‘‘(B) by October 1, 1999, which meets all re18 quirements of this part enacted on or before the

19 date of the enactment of the Family Self-Suffi20 ciency Act of 1995, except that such deadline

21 shall be extended by 1 day for each day (if any)

22 by which the Secretary fails to meet the deadline

23 imposed by section 445(a)(3) of the Family Self24 Sufficiency Act of 1995.’’.
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1 (b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL2 OPMENT COSTS OF AUTOMATED SYSTEMS.—

3 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

4 655(a)) is amended—

5 (A) in paragraph (1)(B)—

6 (i) by striking ‘‘90 percent’’ and in7 serting ‘‘the percent specified in paragraph

8 (3)’’;

9 (ii) by striking ‘‘so much of’’; and

10 (iii) by striking ‘‘which the Secretary’’

11 and all that follows and inserting ‘‘, and’’;

12 and

13 (B) by adding at the end the following new

14 paragraph:

15 ‘‘(3)(A) The Secretary shall pay to each State, for each

16 quarter in fiscal years 1996 and 1997, 90 percent of so

17 much of the State expenditures described in paragraph

18 (1)(B) as the Secretary finds are for a system meeting the

19 requirements specified in section 454(16), but limited to the

20 amount approved for States in the advance planning docu21 ments of such States submitted before May 1, 1995.

22 ‘‘(B)(i) The Secretary shall pay to each State, for each

23 quarter in fiscal years 1998 through 2001, the percentage

24 specified in clause (ii) of so much of the State expenditures

25 described in paragraph (1)(B) as the Secretary finds are
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1 for a system meeting the requirements of sections 454(16)

2 and 454A.

3 ‘‘(ii) The percentage specified in this clause is the

4 greater of—

5 ‘‘(I) 80 percent; or

6 ‘‘(II) the percentage otherwise applicable to Fed7 eral payments to the State under subparagraph (A)

8 (as adjusted pursuant to section 458).’’.

9 (2) TEMPORARY LIMITATION ON PAYMENTS

10 UNDER SPECIAL FEDERAL MATCHING RATE.—

11 (A) IN GENERAL.—The Secretary of Health

12 and Human Services may not pay more than

13 $260,000,000 in the aggregate under section

14 455(a)(3) of the Social Security Act for fiscal

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

16 (B) ALLOCATION OF LIMITATION AMONG

17 STATES.—The total amount payable to a State

18 under section 455(a)(3) of such Act for fiscal

19 years 1996, 1997, 1998, 1999, and 2000 shall

20 not exceed the limitation determined for the

21 State by the Secretary of Health and Human

22 Services in regulations.

23 (C) ALLOCATION FORMULA.—The regula24 tions referred to in subparagraph (B) shall pre25 scribe a formula for allocating the amount speci-
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1 fied in subparagraph (A) among States with

2 plans approved under part D of title IV of the

3 Social Security Act, which shall take into ac4 count—

5 (i) the relative size of State caseloads

6 under such part; and

7 (ii) the level of automation needed to

8 meet the automated data processing require9 ments of such part.

10 (c) CONFORMING AMENDMENT.—Section 123(c) of the

11 Family Support Act of 1988 (102 Stat. 2352; Public Law

12 100–485) is repealed.

13 SEC. 446. TECHNICAL ASSISTANCE.

14 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

15 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPECIAL

16 PROJECTS OF REGIONAL OR NATIONAL SIGNIFICANCE.—

17 Section 452 (42 U.S.C. 652) is amended by adding at the

18 end the following new subsection:

19 ‘‘(j) Out of any money in the Treasury of the United

20 States not otherwise appropriated, there is hereby appro21 priated to the Secretary for each fiscal year an amount

22 equal to 1 percent of the total amount paid to the Federal

23 Government pursuant to section 457(a) during the imme24 diately preceding fiscal year (as determined on the basis

25 of the most recent reliable data available to the Secretary
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1 as of the end of the 3rd calendar quarter following the end

2 of such preceding fiscal year), to cover costs incurred by

3 the Secretary for—

4 ‘‘(1) information dissemination and technical as5 sistance to States, training of State and Federal staff,

6 staffing studies, and related activities needed to im7 prove programs under this part (including technical

8 assistance concerning State automated systems re9 quired by this part); and

10 ‘‘(2) research, demonstration, and special

11 projects of regional or national significance relating

12 to the operation of State programs under this part.’’.

13 (b) OPERATION OF FEDERAL PARENT LOCATOR SERV14 ICE.—Section 453 (42 U.S.C. 653), as amended by section

15 416(f) of this Act, is amended by adding at the end the

16 following new subsection:

17 ‘‘(n) Out of any money in the Treasury of the United

18 States not otherwise appropriated, there is hereby appro19 priated to the Secretary for each fiscal year an amount

20 equal to 2 percent of the total amount paid to the Federal

21 Government pursuant to section 457(a) during the imme22 diately preceding fiscal year (as determined on the basis

23 of the most recent reliable data available to the Secretary

24 as of the end of the 3rd calendar quarter following the end

25 of such preceding fiscal year), to cover costs incurred by
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1 the Secretary for operation of the Federal Parent Locator

2 Service under this section, to the extent such costs are not

3 recovered through user fees.’’.

4 SEC. 447. REPORTS AND DATA COLLECTION BY THE SEC5 RETARY.

6 (a) ANNUAL REPORT TO CONGRESS.—

7 (1) Section 452(a)(10)(A) (42 U.S.C.

8 652(a)(10)(A)) is amended—

9 (A) by striking ‘‘this part;’’ and inserting

10 ‘‘this part, including—’’; and

11 (B) by adding at the end the following new

12 clauses:

13 ‘‘(i) the total amount of child support

14 payments collected as a result of services

15 furnished during the fiscal year to individ16 uals receiving services under this part;

17 ‘‘(ii) the cost to the States and to the

18 Federal Government of so furnishing the

19 services; and

20 ‘‘(iii) the number of cases involving

21 families—

22 ‘‘(I) who became ineligible for as23 sistance under State programs funded

24 under part A during a month in the

25 fiscal year; and
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1 ‘‘(II) with respect to whom a child

2 support payment was received in the

3 month;’’.

4 (2) Section 452(a)(10)(C) (42 U.S.C.

5 652(a)(10)(C)) is amended—

6 (A) in the matter preceding clause (i)—

7 (i) by striking ‘‘with the data required

8 under each clause being separately stated

9 for cases’’ and inserting ‘‘separately stated

10 for (1) cases’’;

11 (ii) by striking ‘‘cases where the child

12 was formerly receiving’’ and inserting ‘‘or

13 formerly received’’;

14 (iii) by inserting ‘‘or 1912’’ after

15 ‘‘471(a)(17)’’; and

16 (iv) by inserting ‘‘(2)’’ before ‘‘all

17 other’’;

18 (B) in each of clauses (i) and (ii), by strik19 ing ‘‘, and the total amount of such obligations’’;

20 (C) in clause (iii), by striking ‘‘described

21 in’’ and all that follows and inserting ‘‘in which

22 support was collected during the fiscal year;’’;

23 (D) by striking clause (iv); and
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1 (E) by redesignating clause (v) as clause

2 (vii), and inserting after clause (iii) the follow3 ing new clauses:

4 ‘‘(iv) the total amount of support col5 lected during such fiscal year and distrib6 uted as current support;

7 ‘‘(v) the total amount of support col8 lected during such fiscal year and distrib9 uted as arrearages;

10 ‘‘(vi) the total amount of support due

11 and unpaid for all fiscal years; and’’.

12 (3) Section 452(a)(10)(G) (42 U.S.C.

13 652(a)(10)(G)) is amended by striking ‘‘on the use of

14 Federal courts and’’.

15 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

16 amended—

17 (A) in subparagraph (H), by striking

18 ‘‘and’’;

19 (B) in subparagraph (I), by striking the pe20 riod and inserting ‘‘; and’’; and

21 (C) by inserting after subparagraph (I) the

22 following new subparagraph:

23 ‘‘(J) compliance, by State, with the stand24 ards established pursuant to subsections (h) and

25 (i).’’.
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1 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

2 amended by striking all that follows subparagraph

3 (J), as added by paragraph (4).

4 (b) EFFECTIVE DATE.—The amendments made by sub5 section (a) shall be effective with respect to fiscal year 1996

6 and succeeding fiscal years.

7 Subtitle F—Establishment and

8 Modification of Support Orders

9 SEC. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMIS10 SION.

11 (a) ESTABLISHMENT.—There is hereby established a

12 commission to be known as the National Child Support

13 Guidelines Commission (in this section referred to as the

14 ‘‘Commission’’).

15 (b) GENERAL DUTIES.—

16 (1) IN GENERAL.—The Commission shall deter17 mine—

18 (A) whether it is appropriate to develop a

19 national child support guideline for consider20 ation by the Congress or for adoption by individ21 ual States; or

22 (B) based on a study of various guideline

23 models, the benefits and deficiencies of such mod24 els, and any needed improvements.
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1 (2) DEVELOPMENT OF MODELS.—If the Commis2 sion determines under paragraph (1)(A) that a na3 tional child support guideline is needed or under

4 paragraph (1)(B) that improvements to guideline

5 models are needed, the Commission shall develop such

6 national guideline or improvements.

7 (c) MATTERS FOR CONSIDERATION BY THE COMMIS8 SION.—In making the recommendations concerning guide9 lines required under subsection (b), the Commission shall

10 consider—

11 (1) the adequacy of State child support guide12 lines established pursuant to section 467;

13 (2) matters generally applicable to all support

14 orders, including—

15 (A) the feasibility of adopting uniform

16 terms in all child support orders;

17 (B) how to define income and under what

18 circumstances income should be imputed; and

19 (C) tax treatment of child support pay20 ments;

21 (3) the appropriate treatment of cases in which

22 either or both parents have financial obligations to

23 more than 1 family, including the effect (if any) to

24 be given to—
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1 (A) the income of either parent’s spouse;

2 and

3 (B) the financial responsibilities of either

4 parent for other children or stepchildren;

5 (4) the appropriate treatment of expenses for

6 child care (including care of the children of either

7 parent, and work-related or job-training-related child

8 care);

9 (5) the appropriate treatment of expenses for

10 health care (including uninsured health care) and

11 other extraordinary expenses for children with special

12 needs;

13 (6) the appropriate duration of support by 1 or

14 both parents, including—

15 (A) support (including shared support) for

16 postsecondary or vocational education; and

17 (B) support for disabled adult children;

18 (7) procedures to automatically adjust child sup19 port orders periodically to address changed economic

20 circumstances, including changes in the Consumer

21 Price Index or either parent’s income and expenses in

22 particular cases;

23 (8) procedures to help noncustodial parents ad24 dress grievances regarding visitation and custody or25 ders to prevent such parents from withholding child
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1 support payments until such grievances are resolved;

2 and

3 (9) whether, or to what extent, support levels

4 should be adjusted in cases in which custody is shared

5 or in which the noncustodial parent has extended vis6 itation rights.

7 (d) MEMBERSHIP.—

8 (1) NUMBER; APPOINTMENT.—

9 (A) IN GENERAL.—The Commission shall be

10 composed of 12 individuals appointed jointly by

11 the Secretary of Health and Human Services

12 and the Congress, not later than January 15,

13 1997, of which—

14 (i) 2 shall be appointed by the Chair15 man of the Committee on Finance of the

16 Senate, and 1 shall be appointed by the

17 ranking minority member of the Committee;

18 (ii) 2 shall be appointed by the Chair19 man of the Committee on Ways and Means

20 of the House of Representatives, and 1 shall

21 be appointed by the ranking minority mem22 ber of the Committee; and

23 (iii) 6 shall be appointed by the Sec24 retary of Health and Human Services.
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1 (B) QUALIFICATIONS OF MEMBERS.—Mem2 bers of the Commission shall have expertise and

3 experience in the evaluation and development of

4 child support guidelines. At least 1 member shall

5 represent advocacy groups for custodial parents,

6 at least 1 member shall represent advocacy

7 groups for noncustodial parents, and at least 1

8 member shall be the director of a State program

9 under part D of title IV of the Social Security

10 Act.

11 (2) TERMS OF OFFICE.—Each member shall be

12 appointed for a term of 2 years. A vacancy in the

13 Commission shall be filled in the manner in which

14 the original appointment was made.

15 (e) COMMISSION POWERS, COMPENSATION, ACCESS TO

16 INFORMATION, AND SUPERVISION.—The 1st sentence of sub17 paragraph (C), the 1st and 3rd sentences of subparagraph

18 (D), subparagraph (F) (except with respect to the conduct

19 of medical studies), clauses (ii) and (iii) of subparagraph

20 (G), and subparagraph (H) of section 1886(e)(6) of the So21 cial Security Act shall apply to the Commission in the same

22 manner in which such provisions apply to the Prospective

23 Payment Assessment Commission.

24 (f) REPORT.—Not later than 2 years after the appoint25 ment of members, the Commission shall submit to the Presi-
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1 dent, the Committee on Ways and Means of the House of

2 Representatives, and the Committee on Finance of the Sen3 ate, a recommended national child support guideline and

4 a final assessment of issues relating to such a proposed na5 tional child support guideline.

6 (g) TERMINATION.—The Commission shall terminate

7 6 months after the submission of the report described in sub8 section (e).

9 SEC. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST10 MENT OF CHILD SUPPORT ORDERS.

11 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended

12 to read as follows:

13 ‘‘(10) Procedures under which the State shall re14 view and adjust each support order being enforced

15 under this part upon the request of either parent or

16 the State if there is an assignment. Such procedures

17 shall provide the following:

18 ‘‘(A) The State shall review and, as appro19 priate, adjust the support order every 3 years,

20 taking into account the best interests of the child

21 involved.

22 ‘‘(B)(i) The State may elect to review and,

23 if appropriate, adjust an order pursuant to sub24 paragraph (A) by—
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1 ‘‘(I) reviewing and, if appropriate, ad2 justing the order in accordance with the

3 guidelines established pursuant to section

4 467(a) if the amount of the child support

5 award under the order differs from the

6 amount that would be awarded in accord7 ance with the guidelines; or

8 ‘‘(II) applying a cost-of-living adjust9 ment to the order in accordance with a for10 mula developed by the State and permit ei11 ther party to contest the adjustment, within

12 30 days after the date of the notice of the

13 adjustment, by making a request for review

14 and, if appropriate, adjustment of the order

15 in accordance with the child support guide16 lines established pursuant to section 467(a).

17 ‘‘(ii) Any adjustment under clause (i) shall

18 be made without a requirement for proof or

19 showing of a change in circumstances.

20 ‘‘(C) The State may use automated methods

21 (including automated comparisons with wage or

22 State income tax data) to identify orders eligible

23 for review, conduct the review, identify orders el24 igible for adjustment, apply the appropriate ad-
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1 justment to the orders eligible for adjustment

2 under the threshold established by the State.

3 ‘‘(D) The State shall, at the request of either

4 parent subject to such an order or of any State

5 child support enforcement agency, review and, if

6 appropriate, adjust the order in accordance with

7 the guidelines established pursuant to section

8 467(a) based upon a substantial change in the

9 circumstances of either parent.

10 ‘‘(E) The State shall provide notice to the

11 parents subject to such an order informing them

12 of their right to request the State to review and,

13 if appropriate, adjust the order pursuant to sub14 paragraph (D). The notice may be included in

15 the order.’’.

16 SEC. 453. FURNISHING CONSUMER REPORTS FOR CERTAIN

17 PURPOSES RELATING TO CHILD SUPPORT.

18 Section 604 of the Fair Credit Reporting Act (15

19 U.S.C. 1681b) is amended by adding at the end the follow20 ing new paragraphs:

21 ‘‘(4) In response to a request by the head of a

22 State or local child support enforcement agency (or a

23 State or local government official authorized by the

24 head of such an agency), if the person making the re-
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1 quest certifies to the consumer reporting agency

2 that—

3 ‘‘(A) the consumer report is needed for the

4 purpose of establishing an individual’s capacity

5 to make child support payments or determining

6 the appropriate level of such payments;

7 ‘‘(B) the paternity of the consumer for the

8 child to which the obligation relates has been es9 tablished or acknowledged by the consumer in ac10 cordance with State laws under which the obliga11 tion arises (if required by those laws);

12 ‘‘(C) the person has provided at least 10

13 days’ prior notice to the consumer whose report

14 is requested, by certified or registered mail to the

15 last known address of the consumer, that the re16 port will be requested, and

17 ‘‘(D) the consumer report will be kept con18 fidential, will be used solely for a purpose de19 scribed in subparagraph (A), and will not be

20 used in connection with any other civil, admin21 istrative, or criminal proceeding, or for any

22 other purpose.

23 ‘‘(5) To an agency administering a State plan

24 under section 454 of the Social Security Act (42
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1 U.S.C. 654) for use to set an initial or modified child

2 support award.’’.

3 SEC. 454. NONLIABILITY FOR DEPOSITORY INSTITUTIONS

4 PROVIDING FINANCIAL RECORDS TO STATE

5 CHILD SUPPORT ENFORCEMENT AGENCIES

6 IN CHILD SUPPORT CASES.

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of Federal or State law, a depository institution shall

9 not be liable under any Federal or State law to any person

10 for disclosing any financial record of an individual to a

11 State child support enforcement agency attempting to estab12 lish, modify, or enforce a child support obligation of such

13 individual.

14 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

15 RECORD OBTAINED BY STATE CHILD SUPPORT ENFORCE16 MENT AGENCY.—A State child support enforcement agency

17 which obtains a financial record of an individual from a

18 financial institution pursuant to subsection (a) may dis19 close such financial record only for the purpose of, and to

20 the extent necessary in, establishing, modifying, or enforc21 ing a child support obligation of such individual.

22 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO23 SURE.—

24 (1) DISCLOSURE BY STATE OFFICER OR EM25 PLOYEE.—If any person knowingly, or by reason of
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1 negligence, discloses a financial record of an individ2 ual in violation of subsection (b), such individual

3 may bring a civil action for damages against such

4 person in a district court of the United States.

5 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO6 NEOUS INTERPRETATION.—No liability shall arise

7 under this subsection with respect to any disclosure

8 which results from a good faith, but erroneous, inter9 pretation of subsection (b).

10 (3) DAMAGES.—In any action brought under

11 paragraph (1), upon a finding of liability on the part

12 of the defendant, the defendant shall be liable to the

13 plaintiff in an amount equal to the sum of—

14 (A) the greater of—

15 (i) $1,000 for each act of unauthorized

16 disclosure of a financial record with respect

17 to which such defendant is found liable; or

18 (ii) the sum of—

19 (I) the actual damages sustained

20 by the plaintiff as a result of such un21 authorized disclosure; plus

22 (II) in the case of a willful disclo23 sure or a disclosure which is the result

24 of gross negligence, punitive damages;

25 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) The term ‘‘depository institution’’ means—

5 (A) a depository institution, as defined in

6 section 3(c) of the Federal Deposit Insurance Act

7 (12 U.S.C. 1813(c));

8 (B) an institution-affiliated party, as de9 fined in section 3(u) of such Act (12 U.S.C.

10 1813(v)); and

11 (C) any Federal credit union or State credit

12 union, as defined in section 101 of the Federal

13 Credit Union Act (12 U.S.C. 1752), including

14 an institution-affiliated party of such a credit

15 union, as defined in section 206(r) of such Act

16 (12 U.S.C. 1786(r)).

17 (2) The term ‘‘financial record’’ has the meaning

18 given such term in section 1101 of the Right to Fi19 nancial Privacy Act of 1978 (12 U.S.C. 3401).

20 (3) The term ‘‘State child support enforcement

21 agency’’ means a State agency which administers a

22 State program for establishing and enforcing child

23 support obligations.
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1 Subtitle G—Enforcement of Support

2 Orders

3 SEC. 461. FEDERAL INCOME TAX REFUND OFFSET.

4 (a) CHANGED ORDER OF REFUND DISTRIBUTION

5 UNDER INTERNAL REVENUE CODE.—

6 (1) IN GENERAL.—Subsection (c) of section 6402

7 of the Internal Revenue Code of 1986 (relating to au8 thority to make credits or refunds) is amended by

9 striking the 3rd and 4th sentences and inserting the

10 following new sentences: ‘‘A reduction under this sub11 section shall be applied 1st to satisfy past-due sup12 port, before any other reductions allowed by law (in13 cluding a credit against future liability for an inter14 nal revenue tax) have been made. A reduction under

15 this subsection shall be assigned to the State with re16 spect to past-due support owed to individuals for pe17 riods such individuals were receiving assistance under

18 part A or B of title IV of the Social Security Act only

19 after satisfying all other past-due support.’’.

20 (2) CONFORMING AMENDMENT.—Paragraph (2)

21 of section 6402(d) of such Code is amended by strik22 ing ‘‘with respect to past-due support collected pursu23 ant to an assignment under section 402(a)(26) of the

24 Social Security Act’’.
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1 (b) ELIMINATION OF DISPARITIES IN TREATMENT OF

2 ASSIGNED AND NONASSIGNED ARREARAGES.—

3 (1) Section 464(a) (42 U.S.C. 664(a)) is amend4 ed—

5 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

6 OFFSET AUTHORIZED.—’’;

7 (B) in paragraph (1)—

8 (i) in the 1st sentence, by striking

9 ‘‘which has been assigned to such State pur10 suant to section 402(a)(26) or section

11 471(a)(17)’’; and

12 (ii) in the 2nd sentence, by striking

13 ‘‘in accordance with section 457(b)(4) or

14 (d)(3)’’ and inserting ‘‘as provided in para15 graph (2)’’;

16 (C) by striking paragraph (2) and inserting

17 the following new paragraph:

18 ‘‘(2) The State agency shall distribute amounts paid

19 by the Secretary of the Treasury pursuant to paragraph

20 (1)—

21 ‘‘(A) in accordance with section 457(a), in the

22 case of past-due support assigned to a State; and

23 ‘‘(B) to or on behalf of the child to whom the

24 support was owed, in the case of past-due support not

25 so assigned.’’; and
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1 (D) in paragraph (3)—

2 (i) by striking ‘‘or (2)’’ each place such

3 term appears; and

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

5 ‘‘under paragraph (2)’’ and inserting ‘‘on

6 account of past-due support described in

7 paragraph (2)(B)’’.

8 (2) Section 464(b) (42 U.S.C. 664(b)) is amend9 ed—

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

11 following:

12 ‘‘(b) REGULATIONS.—’’; and

13 (B) by striking paragraph (2).

14 (3) Section 464(c) (42 U.S.C. 664(c)) is amend15 ed—

16 (A) by striking ‘‘(c)(1) Except as provided

17 in paragraph (2), as’’ and inserting the follow18 ing:

19 ‘‘(c) DEFINITION.—As’’; and

20 (B) by striking paragraphs (2) and (3).

21 SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF

22 ARREARAGES.

23 (a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec24 tion 6305(a) of the Internal Revenue Code of 1986 (relating

25 to collection of certain liability) is amended—
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1 (1) in paragraph (1), by inserting ‘‘except as

2 provided in paragraph (5)’’ after ‘‘collected’’;

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

4 (3);

5 (3) by striking the period at the end of para6 graph (4) and inserting ‘‘, and’’;

7 (4) by adding at the end the following new para8 graph:

9 ‘‘(5) no additional fee may be assessed for adjust10 ments to an amount previously certified pursuant to

11 such section 452(b) with respect to the same obligor.’’;

12 and

13 (5) by striking ‘‘Secretary of Health, Education,

14 and Welfare’’ each place it appears and inserting

15 ‘‘Secretary of Health and Human Services’’.

16 (b) EFFECTIVE DATE.—The amendments made by this

17 section shall become effective October 1, 1997.

18 SEC. 463. AUTHORITY TO COLLECT SUPPORT FROM FED19 ERAL EMPLOYEES.

20 (a) CONSOLIDATION AND STREAMLINING OF AUTHORI21 TIES.—Section 459 (42 U.S.C. 659) is amended to read as

22 follows:
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1 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

2 WITHHOLDING, GARNISHMENT, AND SIMILAR

3 PROCEEDINGS FOR ENFORCEMENT OF CHILD

4 SUPPORT AND ALIMONY OBLIGATIONS.

5 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not6 withstanding any other provision of law (including section

7 207 of this Act and section 5301 of title 38, United States

8 Code), effective January 1, 1975, moneys (the entitlement

9 to which is based upon remuneration for employment) due

10 from, or payable by, the United States or the District of

11 Columbia (including any agency, subdivision, or instru12 mentality thereof) to any individual, including members of

13 the Armed Forces of the United States, shall be subject, in

14 like manner and to the same extent as if the United States

15 or the District of Columbia were a private person, to with16 holding in accordance with State law enacted pursuant to

17 subsections (a)(1) and (b) of section 466 and regulations

18 of the Secretary under such subsections, and to any other

19 legal process brought, by a State agency administering a

20 program under a State plan approved under this part or

21 by an individual obligee, to enforce the legal obligation of

22 the individual to provide child support or alimony.

23 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

24 PRIVATE PERSON.—With respect to notice to withhold in25 come pursuant to subsection (a)(1) or (b) of section 466,

26 or any other order or process to enforce support obligations
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1 against an individual (if the order or process contains or

2 is accompanied by sufficient data to permit prompt identi3 fication of the individual and the moneys involved), each

4 governmental entity specified in subsection (a) shall be sub5 ject to the same requirements as would apply if the entity

6 were a private person, except as otherwise provided in this

7 section.

8 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

9 OR PROCESS—

10 ‘‘(1) DESIGNATION OF AGENT.—The head of each

11 agency subject to this section shall—

12 ‘‘(A) designate an agent or agents to receive

13 orders and accept service of process in matters

14 relating to child support or alimony; and

15 ‘‘(B) annually publish in the Federal Reg16 ister the designation of the agent or agents, iden17 tified by title or position, mailing address, and

18 telephone number.

19 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

20 agent designated pursuant to paragraph (1) of this

21 subsection receives notice pursuant to State proce22 dures in effect pursuant to subsection (a)(1) or (b) of

23 section 466, or is effectively served with any order,

24 process, or interrogatory, with respect to an individ-
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1 ual’s child support or alimony payment obligations,

2 the agent shall—

3 ‘‘(A) as soon as possible (but not later than

4 15 days) thereafter, send written notice of the no5 tice or service (together with a copy of the notice

6 or service) to the individual at the duty station

7 or last-known home address of the individual;

8 ‘‘(B) within 30 days (or such longer period

9 as may be prescribed by applicable State law)

10 after receipt of a notice pursuant to such State

11 procedures, comply with all applicable provi12 sions of section 466; and

13 ‘‘(C) within 30 days (or such longer period

14 as may be prescribed by applicable State law)

15 after effective service of any other such order,

16 process, or interrogatory, respond to the order,

17 process, or interrogatory.

18 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

19 specified in subsection (a) receives notice or is served with

20 process, as provided in this section, concerning amounts

21 owed by an individual to more than 1 person—

22 ‘‘(1) support collection under section 466(b) must

23 be given priority over any other process, as provided

24 in section 466(b)(7);
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1 ‘‘(2) allocation of moneys due or payable to an

2 individual among claimants under section 466(b)

3 shall be governed by section 466(b) and the regula4 tions prescribed under such section; and

5 ‘‘(3) such moneys as remain after compliance

6 with paragraphs (1) and (2) shall be available to sat7 isfy any other such processes on a 1st-come, 1st-served

8 basis, with any such process being satisfied out of

9 such moneys as remain after the satisfaction of all

10 such processes which have been previously served.

11 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

12 governmental entity that is affected by legal process served

13 for the enforcement of an individual’s child support or ali14 mony payment obligations shall not be required to vary its

15 normal pay and disbursement cycle in order to comply with

16 the legal process.

17 ‘‘(f) RELIEF FROM LIABILITY.—

18 ‘‘(1) Neither the United States, nor the govern19 ment of the District of Columbia, nor any disbursing

20 officer shall be liable with respect to any payment

21 made from moneys due or payable from the United

22 States to any individual pursuant to legal process

23 regular on its face, if the payment is made in accord24 ance with this section and the regulations issued to

25 carry out this section.
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1 ‘‘(2) No Federal employee whose duties include

2 taking actions necessary to comply with the require3 ments of subsection (a) with regard to any individual

4 shall be subject under any law to any disciplinary ac5 tion or civil or criminal liability or penalty for, or

6 on account of, any disclosure of information made by

7 the employee in connection with the carrying out of

8 such actions.

9 ‘‘(g) REGULATIONS.—Authority to promulgate regula10 tions for the implementation of this section shall, insofar

11 as this section applies to moneys due from (or payable

12 by)—

13 ‘‘(1) the United States (other than the legislative

14 or judicial branches of the Federal Government) or

15 the government of the District of Columbia, be vested

16 in the President (or the designee of the President);

17 ‘‘(2) the legislative branch of the Federal Govern18 ment, be vested jointly in the President pro tempore

19 of the Senate and the Speaker of the House of Rep20 resentatives (or their designees), and

21 ‘‘(3) the judicial branch of the Federal Govern22 ment, be vested in the Chief Justice of the United

23 States (or the designee of the Chief Justice).

24 ‘‘(h) MONEYS SUBJECT TO PROCESS.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

2 moneys paid or payable to an individual which are

3 considered to be based upon remuneration for employ4 ment, for purposes of this section—

5 ‘‘(A) consist of—

6 ‘‘(i) compensation paid or payable for

7 personal services of the individual, whether

8 the compensation is denominated as wages,

9 salary, commission, bonus, pay, allowances,

10 or otherwise (including severance pay, sick

11 pay, and incentive pay);

12 ‘‘(ii) periodic benefits (including a

13 periodic benefit as defined in section

14 228(h)(3)) or other payments—

15 ‘‘(I) under the insurance system

16 established by title II;

17 ‘‘(II) under any other system or

18 fund established by the United States

19 which provides for the payment of pen20 sions, retirement or retired pay, annu21 ities, dependents’ or survivors’ benefits,

22 or similar amounts payable on account

23 of personal services performed by the

24 individual or any other individual;
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1 ‘‘(III) as compensation for death

2 under any Federal program;

3 ‘‘(IV) under any Federal program

4 established to provide ‘black lung’ bene5 fits; or

6 ‘‘(V) by the Secretary of Veterans

7 Affairs as pension, or as compensation

8 for a service-connected disability or

9 death (except any compensation paid

10 by the Secretary to a member of the

11 Armed Forces who is in receipt of re12 tired or retainer pay if the member has

13 waived a portion of the retired pay of

14 the member in order to receive the com15 pensation); and

16 ‘‘(iii) workers’ compensation benefits

17 paid under Federal or State law; but

18 ‘‘(B) do not include any payment—

19 ‘‘(i) by way of reimbursement or other20 wise, to defray expenses incurred by the in21 dividual in carrying out duties associated

22 with the employment of the individual; or

23 ‘‘(ii) as allowances for members of the

24 uniformed services payable pursuant to

25 chapter 7 of title 37, United States Code, as
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1 prescribed by the Secretaries concerned (de2 fined by section 101(5) of such title) as nec3 essary for the efficient performance of duty.

4 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter5 mining the amount of any moneys due from, or pay6 able by, the United States to any individual, there

7 shall be excluded amounts which—

8 ‘‘(A) are owed by the individual to the

9 United States;

10 ‘‘(B) are required by law to be, and are, de11 ducted from the remuneration or other payment

12 involved, including Federal employment taxes,

13 and fines and forfeitures ordered by court-mar14 tial;

15 ‘‘(C) are properly withheld for Federal,

16 State, or local income tax purposes, if the with17 holding of the amounts is authorized or required

18 by law and if amounts withheld are not greater

19 than would be the case if the individual claimed

20 all dependents to which he was entitled (the

21 withholding of additional amounts pursuant to

22 section 3402(i) of the Internal Revenue Code of

23 1986 may be permitted only when the individual

24 presents evidence of a tax obligation which sup25 ports the additional withholding);
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1 ‘‘(D) are deducted as health insurance pre2 miums;

3 ‘‘(E) are deducted as normal retirement

4 contributions (not including amounts deducted

5 for supplementary coverage); or

6 ‘‘(F) are deducted as normal life insurance

7 premiums from salary or other remuneration for

8 employment (not including amounts deducted for

9 supplementary coverage).

10 ‘‘(i) DEFINITIONS.—As used in this section:

11 ‘‘(1) UNITED STATES.—The term ‘United States’

12 includes any department, agency, or instrumentality

13 of the legislative, judicial, or executive branch of the

14 Federal Government, the United States Postal Serv15 ice, the Postal Rate Commission, any Federal cor16 poration created by an Act of Congress that is wholly

17 owned by the Federal Government, and the govern18 ments of the territories and possessions of the United

19 States.

20 ‘‘(2) CHILD SUPPORT.—The term ‘child support’,

21 when used in reference to the legal obligations of an

22 individual to provide such support, means periodic

23 payments of funds for the support and maintenance

24 of a child or children with respect to which the indi25 vidual has such an obligation, and (subject to and in
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1 accordance with State law) includes payments to pro2 vide for health care, education, recreation, clothing,

3 or to meet other specific needs of such a child or chil4 dren, and includes attorney’s fees, interest, and court

5 costs, when and to the extent that the same are ex6 pressly made recoverable as such pursuant to a decree,

7 order, or judgment issued in accordance with applica8 ble State law by a court of competent jurisdiction.

9 ‘‘(3) ALIMONY.—The term ‘alimony’, when used

10 in reference to the legal obligations of an individual

11 to provide the same, means periodic payments of

12 funds for the support and maintenance of the spouse

13 (or former spouse) of the individual, and (subject to

14 and in accordance with State law) includes separate

15 maintenance, alimony pendente lite, maintenance,

16 and spousal support, and includes attorney’s fees, in17 terest, and court costs when and to the extent that the

18 same are expressly made recoverable as such pursuant

19 to a decree, order, or judgment issued in accordance

20 with applicable State law by a court of competent ju21 risdiction. Such term does not include any payment

22 or transfer of property or its value by an individual

23 to the spouse or a former spouse of the individual in

24 compliance with any community property settlement,
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1 equitable distribution of property, or other division of

2 property between spouses or former spouses.

3 ‘‘(4) PRIVATE PERSON.—The term ‘private per4 son’ means a person who does not have sovereign or

5 other special immunity or privilege which causes the

6 person not to be subject to legal process.

7 ‘‘(5) LEGAL PROCESS.—The term ‘legal process’

8 means any writ, order, summons, or other similar

9 process in the nature of garnishment—

10 ‘‘(A) which is issued by—

11 ‘‘(i) a court of competent jurisdiction

12 in any State, territory, or possession of the

13 United States;

14 ‘‘(ii) a court of competent jurisdiction

15 in any foreign country with which the

16 United States has entered into an agree17 ment which requires the United States to

18 honor the process; or

19 ‘‘(iii) an authorized official pursuant

20 to an order of such a court of competent ju21 risdiction or pursuant to State or local law;

22 and

23 ‘‘(B) which is directed to, and the purpose

24 of which is to compel, a governmental entity

25 which holds moneys which are otherwise payable
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1 to an individual to make a payment from the

2 moneys to another party in order to satisfy a

3 legal obligation of the individual to provide child

4 support or make alimony payments.’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) TO PART D OF TITLE IV.—Sections 461 and

7 462 (42 U.S.C. 661 and 662) are repealed.

8 (2) TO TITLE 5, UNITED STATES CODE.—Section

9 5520a of title 5, United States Code, is amended, in

10 subsections (h)(2) and (i), by striking ‘‘sections 459,

11 461, and 462 of the Social Security Act (42 U.S.C.

12 659, 661, and 662)’’ and inserting ‘‘section 459 of the

13 Social Security Act (42 U.S.C. 659)’’.

14 (c) MILITARY RETIRED AND RETAINER PAY.—

15 (1) DEFINITION OF COURT.—Section 1408(a)(1)

16 of title 10, United States Code, is amended—

17 (A) by striking ‘‘and’’ at the end of sub18 paragraph (B);

19 (B) by striking the period at the end of sub20 paragraph (C) and inserting ‘‘; and’’; and

21 (C) by adding after subparagraph (C) the

22 following new subparagraph:

23 ‘‘(D) any administrative or judicial tribu24 nal of a State competent to enter orders for sup25 port or maintenance (including a State agency
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1 administering a program under a State plan ap2 proved under part D of title IV of the Social Se3 curity Act), and, for purposes of this subpara4 graph, the term ‘State’ includes the District of

5 Columbia, the Commonwealth of Puerto Rico, the

6 Virgin Islands, Guam, and American Samoa.’’.

7 (2) DEFINITION OF COURT ORDER.—Section

8 1408(a)(2) of such title is amended by inserting ‘‘or

9 a court order for the payment of child support not in10 cluded in or accompanied by such a decree or settle11 ment,’’ before ‘‘which—’’.

12 (3) PUBLIC PAYEE.—Section 1408(d) of such

13 title is amended—

14 (A) in the heading, by inserting ‘‘(OR FOR

15 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

16 (B) in paragraph (1), in the 1st sentence,

17 by inserting ‘‘(or for the benefit of such spouse

18 or former spouse to a State disbursement unit es19 tablished pursuant to section 454B of the Social

20 Security Act or other public payee designated by

21 a State, in accordance with part D of title IV of

22 the Social Security Act, as directed by court

23 order, or as otherwise directed in accordance

24 with such part D)’’ before ‘‘in an amount suffi25 cient’’.
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1 (4) RELATIONSHIP TO PART D OF TITLE IV.—

2 Section 1408 of such title is amended by adding at

3 the end the following new subsection:

4 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

5 involving an order providing for payment of child support

6 (as defined in section 459(i)(2) of the Social Security Act)

7 by a member who has never been married to the other par8 ent of the child, the provisions of this section shall not

9 apply, and the case shall be subject to the provisions of sec10 tion 459 of such Act.’’.

11 (d) EFFECTIVE DATE.—The amendments made by this

12 section shall become effective 6 months after the date of the

13 enactment of this Act.

14 SEC. 464. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS

15 OF MEMBERS OF THE ARMED FORCES.

16 (a) AVAILABILITY OF LOCATOR INFORMATION.—

17 (1) MAINTENANCE OF ADDRESS INFORMATION.—

18 The Secretary of Defense shall establish a centralized

19 personnel locator service that includes the address of

20 each member of the Armed Forces under the jurisdic21 tion of the Secretary. Upon request of the Secretary

22 of Transportation, addresses for members of the Coast

23 Guard shall be included in the centralized personnel

24 locator service.

25 (2) TYPE OF ADDRESS.—
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1 (A) RESIDENTIAL ADDRESS.—Except as

2 provided in subparagraph (B), the address for a

3 member of the Armed Forces shown in the loca4 tor service shall be the residential address of that

5 member.

6 (B) DUTY ADDRESS.—The address for a

7 member of the Armed Forces shown in the loca8 tor service shall be the duty address of that mem9 ber in the case of a member—

10 (i) who is permanently assigned over11 seas, to a vessel, or to a routinely deployable

12 unit; or

13 (ii) with respect to whom the Secretary

14 concerned makes a determination that the

15 member’s residential address should not be

16 disclosed due to national security or safety

17 concerns.

18 (3) UPDATING OF LOCATOR INFORMATION.—

19 Within 30 days after a member listed in the locator

20 service establishes a new residential address (or a new

21 duty address, in the case of a member covered by

22 paragraph (2)(B)), the Secretary concerned shall up23 date the locator service to indicate the new address of

24 the member.
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1 (4) AVAILABILITY OF INFORMATION.—The Sec2 retary of Defense shall make information regarding

3 the address of a member of the Armed Forces listed

4 in the locator service available, on request, to the Fed5 eral Parent Locator Service established under section

6 453 of the Social Security Act.

7 (b) FACILITATING GRANTING OF LEAVE FOR ATTEND8 ANCE AT HEARINGS.—

9 (1) REGULATIONS.—The Secretary of each mili10 tary department, and the Secretary of Transportation

11 with respect to the Coast Guard when it is not operat12 ing as a service in the Navy, shall prescribe regula13 tions to facilitate the granting of leave to a member

14 of the Armed Forces under the jurisdiction of that

15 Secretary in a case in which—

16 (A) the leave is needed for the member to at17 tend a hearing described in paragraph (2);

18 (B) the member is not serving in or with a

19 unit deployed in a contingency operation (as de20 fined in section 101 of title 10, United States

21 Code); and

22 (C) the exigencies of military service (as de23 termined by the Secretary concerned) do not oth24 erwise require that such leave not be granted.
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1 (2) COVERED HEARINGS.—Paragraph (1) ap2 plies to a hearing that is conducted by a court or

3 pursuant to an administrative process established

4 under State law, in connection with a civil action—

5 (A) to determine whether a member of the

6 Armed Forces is a natural parent of a child; or

7 (B) to determine an obligation of a member

8 of the Armed Forces to provide child support.

9 (3) DEFINITIONS.—For purposes of this sub10 section:

11 (A) The term ‘‘court’’ has the meaning

12 given that term in section 1408(a) of title 10,

13 United States Code.

14 (B) The term ‘‘child support’’ has the mean15 ing given such term in section 459(i) of the So16 cial Security Act (42 U.S.C. 659(i)).

17 (c) PAYMENT OF MILITARY RETIRED PAY IN COMPLI18 ANCE WITH CHILD SUPPORT ORDERS.—

19 (1) DATE OF CERTIFICATION OF COURT

20 ORDER.—Section 1408 of title 10, United States Code,

21 as amended by section 463(c)(4) of this Act, is

22 amended—

23 (A) by redesignating subsections (i) and (j)

24 as subsections (j) and (k), respectively; and
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1 (B) by inserting after subsection (h) the fol2 lowing new subsection:

3 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

4 the date of a certification of the authenticity or completeness

5 of a copy of a court order for child support received by the

6 Secretary concerned for the purposes of this section be recent

7 in relation to the date of receipt by the Secretary.’’.

8 (2) PAYMENTS CONSISTENT WITH ASSIGNMENTS

9 OF RIGHTS TO STATES.—Section 1408(d)(1) of such

10 title is amended by inserting after the 1st sentence the

11 following: ‘‘In the case of a spouse or former spouse

12 who assigns to a State the rights of the spouse or

13 former spouse to receive support, the Secretary con14 cerned may make the child support payments referred

15 to in the preceding sentence to that State in amounts

16 consistent with that assignment of rights.’’.

17 (3) ARREARAGES OWED BY MEMBERS OF THE

18 UNIFORMED SERVICES.—Section 1408(d) of such title

19 is amended by adding at the end the following new

20 paragraph:

21 ‘‘(6) In the case of a court order for which effective

22 service is made on the Secretary concerned on or after the

23 date of the enactment of this paragraph and which provides

24 for payments from the disposable retired pay of a member

25 to satisfy the amount of child support set forth in the order,
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1 the authority provided in paragraph (1) to make payments

2 from the disposable retired pay of a member to satisfy the

3 amount of child support set forth in a court order shall

4 apply to payment of any amount of child support arrear5 ages set forth in that order as well as to amounts of child

6 support that currently become due.’’.

7 (4) PAYROLL DEDUCTIONS.—The Secretary of

8 Defense shall begin payroll deductions within 30 days

9 after receiving notice of withholding, or for the 1st

10 pay period that begins after such 30-day period.

11 SEC. 465. VOIDING OF FRAUDULENT TRANSFERS.

12 Section 466 (42 U.S.C. 666), as amended by section

13 421 of this Act, is amended by adding at the end the follow14 ing new subsection:

15 ‘‘(g) In order to satisfy section 454(20)(A), each State

16 must have in effect—

17 ‘‘(1)(A) the Uniform Fraudulent Conveyance Act

18 of 1981;

19 ‘‘(B) the Uniform Fraudulent Transfer Act of

20 1984; or

21 ‘‘(C) another law, specifying indicia of fraud

22 which create a prima facie case that a debtor trans23 ferred income or property to avoid payment to a child

24 support creditor, which the Secretary finds affords

25 comparable rights to child support creditors; and
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1 ‘‘(2) procedures under which, in any case in

2 which the State knows of a transfer by a child sup3 port debtor with respect to which such a prima facie

4 case is established, the State must—

5 ‘‘(A) seek to void such transfer; or

6 ‘‘(B) obtain a settlement in the best inter7 ests of the child support creditor.’’.

8 SEC. 466. WORK REQUIREMENT FOR PERSONS OWING

9 CHILD SUPPORT.

10 Section 466(a) of the Social Security Act (42 U.S.C.

11 666(a)), as amended by sections 401(a), 415, 417(a), and

12 423 of this Act, is amended by adding at the end the follow13 ing new paragraph:

14 ‘‘(16) Procedures requiring the State, in any

15 case in which an individual owes support with re16 spect to a child receiving services under this part, to

17 seek a court order or administrative order that re18 quires the individual to—

19 ‘‘(A) pay such support in accordance with

20 a plan approved by the court; or

21 ‘‘(B) if the individual is not working and

22 is not incapacitated, participate in work activi23 ties (including, at State option, work activities

24 as defined in section 482) as the court deems ap25 propriate.’’.
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1 SEC. 467. DEFINITION OF SUPPORT ORDER.

2 Section 453 (42 U.S.C. 653) as amended by sections

3 416 and 446(b) of this Act, is amended by adding at the

4 end the following new subsection:

5 ‘‘(o) As used in this part, the term ‘support order’

6 means a judgment, decree, or order, whether temporary,

7 final, or subject to modification, issued by a court or an

8 administrative agency of competent jurisdiction, for the

9 support and maintenance of a child, including a child who

10 has attained the age of majority under the law of the issuing

11 State, or a child and the parent with whom the child is

12 living, which provides for monetary support, health care,

13 arrearages, or reimbursement, and which may include re14 lated costs and fees, interest and penalties, income withhold15 ing, attorneys’ fees, and other relief.’’.

16 SEC. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.

17 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

18 to read as follows:

19 ‘‘(7)(A) Procedures (subject to safeguards pursu20 ant to subparagraph (B)) requiring the State to re21 port periodically to consumer reporting agencies (as

22 defined in section 603(f) of the Fair Credit Reporting

23 Act (15 U.S.C. 1681a(f)) the name of any absent par24 ent who is delinquent in the payment of support, and

25 the amount of overdue support owed by such parent.
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1 ‘‘(B) Procedures ensuring that, in carrying out

2 subparagraph (A), information with respect to an ab3 sent parent is reported—

4 ‘‘(i) only after such parent has been af5 forded all due process required under State law,

6 including notice and a reasonable opportunity to

7 contest the accuracy of such information; and

8 ‘‘(ii) only to an entity that has furnished

9 evidence satisfactory to the State that the entity

10 is a consumer reporting agency.’’.

11 SEC. 469. LIENS.

12 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

13 to read as follows:

14 ‘‘(4) Procedures under which—

15 ‘‘(A) liens arise by operation of law against

16 real and personal property for amounts of over17 due support owed by an absent parent who re18 sides or owns property in the State; and

19 ‘‘(B) the State accords full faith and credit

20 to liens described in subparagraph (A) arising in

21 another State, without registration of the under22 lying order.’’.
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1 SEC. 470. STATE LAW AUTHORIZING SUSPENSION OF LI2 CENSES.

3 Section 466(a) (42 U.S.C. 666(a)), as amended by sec4 tions 415, 417(a), and 423 of this Act, is amended by add5 ing at the end the following new paragraph:

6 ‘‘(15) Procedures under which the State has (and

7 uses in appropriate cases) authority to withhold or

8 suspend, or to restrict the use of driver’s licenses, pro9 fessional and occupational licenses, and recreational

10 licenses of individuals owing overdue support or fail11 ing, after receiving appropriate notice, to comply

12 with subpoenas or warrants relating to paternity or

13 child support proceedings.’’.

14 SEC. 471. DENIAL OF PASSPORTS FOR NONPAYMENT OF

15 CHILD SUPPORT.

16 (a) HHS CERTIFICATION PROCEDURE.—

17 (1) SECRETARIAL RESPONSIBILITY.—Section 452

18 (42 U.S.C. 652), as amended by section 446, is

19 amended by adding at the end the following new sub20 section:

21 ‘‘(k)(1) If the Secretary receives a certification by a

22 State agency in accordance with the requirements of section

23 454(30) that an individual owes arrearages of child support

24 in an amount exceeding $5,000 or in an amount exceeding

25 24 months’ worth of child support, the Secretary shall

26 transmit such certification to the Secretary of State for ac-
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1 tion (with respect to denial, revocation, or limitation of

2 passports) pursuant to section 471(b) of the Family Self3 Sufficiency Act of 1995.

4 ‘‘(2) The Secretary shall not be liable to an individual

5 for any action with respect to a certification by a State

6 agency under this section.’’.

7 (2) STATE CSE AGENCY RESPONSIBILITY.—Sec8 tion 454 (42 U.S.C. 654), as amended by sections

9 404(a), 412(b), 413(a), 433, and 444(a), is amend10 ed—

11 (A) by striking ‘‘and’’ at the end of para12 graph (28);

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

14 paragraph (29) and inserting ‘‘; and’’; and

15 (C) by adding after paragraph (29) the fol16 lowing new paragraph:

17 ‘‘(30) provide that the State agency will have in

18 effect a procedure (which may be combined with the

19 procedure for tax refund offset under section 464) for

20 certifying to the Secretary, for purposes of the proce21 dure under section 452(k) (concerning denial of pass22 ports) determinations that individuals owe arrearages

23 of child support in an amount exceeding $5,000 or in

24 an amount exceeding 24 months’ worth of child sup25 port, under which procedure—
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1 ‘‘(A) each individual concerned is afforded

2 notice of such determination and the con3 sequences thereof, and an opportunity to contest

4 the determination; and

5 ‘‘(B) the certification by the State agency is

6 furnished to the Secretary in such format, and

7 accompanied by such supporting documentation,

8 as the Secretary may require.’’.

9 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL OF

10 PASSPORTS.—

11 (1) IN GENERAL.—The Secretary of State, upon

12 certification by the Secretary of Health and Human

13 Services, in accordance with section 452(k) of the So14 cial Security Act, that an individual owes arrearages

15 of child support in excess of $5,000 or in an amount

16 exceeding 24 months’ worth of child support, shall

17 refuse to issue a passport to such individual, and

18 may revoke, restrict, or limit a passport issued pre19 viously to such individual.

20 (2) LIMIT ON LIABILITY.—The Secretary of State

21 shall not be liable to an individual for any action

22 with respect to a certification by a State agency

23 under this section.
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1 (c) EFFECTIVE DATE.—This section and the amend2 ments made by this section shall become effective October

3 1, 1996.

4 Subtitle H—Medical Support

5 SEC. 475. TECHNICAL CORRECTION TO ERISA DEFINITION

6 OF MEDICAL CHILD SUPPORT ORDER.

7 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em8 ployee Retirement Income Security Act of 1974 (29 U.S.C.

9 1169(a)(2)(B)) is amended—

10 (1) by striking ‘‘issued by a court of competent

11 jurisdiction’’;

12 (2) by striking the period at the end of clause

13 (ii) and inserting a comma; and

14 (3) by adding, after and below clause (ii), the

15 following:

16 ‘‘if such judgment, decree, or order (I) is issued

17 by a court of competent jurisdiction or (II) is is18 sued through an administrative process estab19 lished under State law and has the force and ef20 fect of law under applicable State law.’’.

21 (b) EFFECTIVE DATE.—

22 (1) IN GENERAL.—The amendments made by

23 this section shall take effect on the date of the enact24 ment of this Act.
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1 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

2 JANUARY 1, 1996.—Any amendment to a plan required

3 to be made by an amendment made by this section

4 shall not be required to be made before the 1st plan

5 year beginning on or after January 1, 1996, if—

6 (A) during the period after the date before

7 the date of the enactment of this Act and before

8 such 1st plan year, the plan is operated in ac9 cordance with the requirements of the amend10 ments made by this section; and

11 (B) such plan amendment applies retro12 actively to the period after the date before the

13 date of the enactment of this Act and before such

14 1st plan year.

15 A plan shall not be treated as failing to be operated

16 in accordance with the provisions of the plan merely

17 because it operates in accordance with this para18 graph.

19 SEC. 476. ENFORCEMENT OF ORDERS FOR HEALTH CARE

20 COVERAGE.

21 Section 466(a) (42 U.S.C. 666(a)), as amended by sec22 tions 415, 417(a), 423, and 469 of this Act, is amended

23 by adding at the end the following new paragraph:

24 ‘‘(16) Procedures under which all child support

25 orders enforced under this part shall include a provi-
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1 sion for the health care coverage of the child, and in

2 the case in which an absent parent provides such cov3 erage and changes employment, and the new employer

4 provides health care coverage, the State agency shall

5 transfer notice of the provision to the employer, which

6 notice shall operate to enroll the child in the absent

7 parent’s health plan, unless the absent parent contests

8 the notice.’’.

9 Subtitle I—Enhancing Responsibil10 ity and Opportunity for

11 Nonresidential Parents

12 SEC. 481. GRANTS TO STATES FOR ACCESS AND VISITATION

13 PROGRAMS.

14 Part D of title IV (42 U.S.C. 651–669) is amended

15 by adding at the end the following new section:

16 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA17 TION PROGRAMS.

18 ‘‘(a) IN GENERAL.—The Administration for Children

19 and Families shall make grants under this section to enable

20 States to establish and administer programs to support and

21 facilitate absent parents’ access to and visitation of their

22 children, by means of activities including mediation (both

23 voluntary and mandatory), counseling, education, develop24 ment of parenting plans, visitation enforcement (including

25 monitoring, supervision and neutral drop-off and pickup),
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1 and development of guidelines for visitation and alternative

2 custody arrangements.

3 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

4 to be made to a State under this section for a fiscal year

5 shall be an amount equal to the lesser of—

6 ‘‘(1) 90 percent of State expenditures during the

7 fiscal year for activities described in subsection (a); or

8 ‘‘(2) the allotment of the State under subsection

9 (c) for the fiscal year.

10 ‘‘(c) ALLOTMENTS TO STATES.—

11 ‘‘(1) IN GENERAL.—The allotment of a State for

12 a fiscal year is the amount that bears the same ratio

13 to the amount appropriated for grants under this sec14 tion for the fiscal year as the number of children in

15 the State living with only 1 biological parent bears

16 to the total number of such children in all States.

17 ‘‘(2) MINIMUM ALLOTMENT.—The Administra18 tion for Children and Families shall adjust allotments

19 to States under paragraph (1) as necessary to ensure

20 that no State is allotted less than—

21 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

22 or

23 ‘‘(B) $100,000 for any succeeding fiscal

24 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 Subtitle J—Effect of Enactment

20 SEC. 491. EFFECTIVE DATES.

21 (a) IN GENERAL.—Except as otherwise specifically

22 provided (but subject to subsections (b) and (c))—

23 (1) the provisions of this title requiring the en24 actment or amendment of State laws under section

25 466 of the Social Security Act, or revision of State
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1 plans under section 454 of such Act, shall be effective

2 with respect to periods beginning on and after Octo3 ber 1, 1996; and

4 (2) all other provisions of this title shall become

5 effective upon the date of the enactment of this Act.

6 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

7 provisions of this title shall become effective with respect

8 to a State on the later of—

9 (1) the date specified in this title, or

10 (2) the effective date of laws enacted by the legis11 lature of such State implementing such provisions,

12 but in no event later than the 1st day of the 1st calendar

13 quarter beginning after the close of the 1st regular session

14 of the State legislature that begins after the date of the en15 actment of this Act. For purposes of the previous sentence,

16 in the case of a State that has a 2-year legislative session,

17 each year of such session shall be deemed to be a separate

18 regular session of the State legislature.

19 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

20 AMENDMENT.—A State shall not be found out of compliance

21 with any requirement enacted by this title if the State is

22 unable to so comply without amending the State constitu23 tion until the earlier of—

24 (1) 1 year after the effective date of the necessary

25 State constitutional amendment; or
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1 (2) 5 years after the date of the enactment of this

2 title.

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support and work opportunities for families with children,

reduce welfare dependence, and control welfare spending.’’.

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