H. R. 4

One Hundred Fourth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Wednesday,

the fourth day of January, one thousand nine hundred and ninety-five

An Act

To restore the American family, enhance support and work opportunities for families

with children, reduce out-of-wedlock pregnancies, reduce welfare dependence, and

control welfare spending.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

Work Opportunity Act of 1995’’.

SEC. 2. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY

FAMILIES

Sec. 101. Findings.

Sec. 102. Reference to Social Security Act.

Sec. 103. Block grants to States.

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

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

Sec. 106. Report on data processing.

Sec. 107. Study on alternative outcomes measures.

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

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

Sec. 110. Conforming amendments to other laws.

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

required. Sec. 112. Disclosure of receipt of Federal funds.

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

program. Sec. 114. Medicaid eligibility under title IV of the Social Security Act.

Sec. 115. Secretarial submission of legislative proposal for technical and conforming

amendments.

Sec. 116. Effective date; transition rule.

TITLE II—SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

Subtitle A—Eligibility Restrictions

Sec. 201. Denial of SSI benefits for 10 years to individuals found to have fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States. Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole violators.

Subtitle B—Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.
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Sec. 212. Eligibility redeterminations and continuing disability reviews.

Sec. 213. Additional accountability requirements.

Sec. 214. Reduction in cash benefits payable to institutionalized individuals whose

medical costs are covered by private insurance. Sec. 215. Regulations.

Subtitle C—State Supplementation Programs

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

programs for supplementation of SSI benefits.

Subtitle D—Studies Regarding Supplemental Security Income Program

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

Sec. 232. Study of disability determination process.

Sec. 233. Study by General Accounting Office.

Subtitle E—National Commission on the Future of Disability

Sec. 241. Establishment.

Sec. 242. Duties of the Commission.

Sec. 243. Membership.

Sec. 244. Staff and support services.

Sec. 245. Powers of Commission.

Sec. 246. Reports.

Sec. 247. Termination.

Sec. 248. Authorization of appropriations.

Subtitle F—Retirement Age Eligibility

Sec. 251. Eligibility for supplemental security income benefits based on social security retirement age.

TITLE III—CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

Subtitle A—Eligibility for Services; Distribution of Payments

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

Sec. 302. Distribution of child support collections.

Sec. 303. Privacy safeguards.

Sec. 304. Rights to notification and hearings.

Subtitle B—Locate and Case Tracking

Sec. 311. State case registry.

Sec. 312. Collection and disbursement of support payments.

Sec. 313. State directory of new hires.

Sec. 314. Amendments concerning income withholding.

Sec. 315. Locator information from interstate networks.

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

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

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 321. Adoption of uniform State laws.

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

Sec. 323. Administrative enforcement in interstate cases.

Sec. 324. Use of forms in interstate enforcement.

Sec. 325. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 331. State laws concerning paternity establishment.

Sec. 332. Outreach for voluntary paternity establishment.

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

Subtitle E—Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.

Sec. 342. Federal and State reviews and audits.

Sec. 343. Required reporting procedures.

Sec. 344. Automated data processing requirements.

Sec. 345. Technical assistance.

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

Subtitle F—Establishment and Modification of Support Orders
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Sec. 351. Simplified process for review and adjustment of child support orders.

Sec. 352. Furnishing consumer reports for certain purposes relating to child support. Sec. 353. Nonliability for financial institutions providing financial records to State

child support enforcement agencies in child support cases.

Subtitle G—Enforcement of Support Orders

Sec. 361. Internal Revenue Service collection of arrearages.

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

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

Sec. 364. Voiding of fraudulent transfers.

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

Sec. 366. Definition of support order.

Sec. 367. Reporting arrearages to credit bureaus.

Sec. 368. Liens.

Sec. 369. State law authorizing suspension of licenses.

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

Sec. 371. International child support enforcement.

Sec. 372. Financial institution data matches.

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

cases of minor parents. Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of a

child.

Subtitle H—Medical Support

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

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

Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential Parents

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

Subtitle J—Effect of Enactment

Sec. 391. Effective dates.

TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

Subtitle A—Eligibility for Federal Benefits

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

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

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

public benefit. Sec. 404. Notification and information reporting.

Subtitle B—Eligibility for State and Local Public Benefits Programs

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

and local public benefits.

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

Subtitle C—Attribution of Income and Affidavits of Support

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

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

resources to the alien with respect to State programs. Sec. 423. Requirements for sponsor’s affidavit of support.

Sec. 424. Cosignature of alien student loans.

Subtitle D—General Provisions

Sec. 431. Definitions.

Sec. 432. Reapplication for SSI benefits.

Sec. 433. Verification of eligibility for Federal public benefits.

Sec. 434. Statutory construction.

Sec. 435. Communication between State and local government agencies, and the

Immigration and Naturalization Service. Sec. 436. Qualifying quarters.

Subtitle E—Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

TITLE V—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS
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Sec. 501. Reductions.

Sec. 502. Reductions in Federal bureaucracy.

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

TITLE VI—REFORM OF PUBLIC HOUSING

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

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

Sec. 603. Effective date.

TITLE VII—CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER

CARE AND ADOPTION ASSISTANCE

Subtitle A—Block Grants to States for the Protection of Children and Matching

Payments for Foster Care and Adoption Assistance

Sec. 701. Establishment of program.

Sec. 702. Conforming amendments.

Sec. 703. Transfer and amendment to foster care protection requirement.

Sec. 704. Effective date; transition rule.

Sec. 705. Sense of the Congress regarding timely adoption of children.

Subtitle B—Child and Family Services Block Grant

Sec. 751. Child and family services block grant.

Sec. 752. Reauthorizations.

Sec. 753. Repeals.

TITLE VIII—CHILD CARE

Sec. 801. Short title and references.

Sec. 802. Goals.

Sec. 803. Authorization of appropriations.

Sec. 804. Lead agency.

Sec. 805. Application and plan.

Sec. 806. Limitation on State allotments.

Sec. 807. Activities to improve the quality of child care.

Sec. 808. Repeal of early childhood development and before- and after-school care

requirement.

Sec. 809. Administration and enforcement.

Sec. 810. Payments.

Sec. 811. Annual report and audits.

Sec. 812. Report by the Secretary.

Sec. 813. Allotments.

Sec. 814. Definitions.

Sec. 815. Repeals.

TITLE IX—CHILD NUTRITION PROGRAMS

Subtitle A—National School Lunch Act

Sec. 901. State disbursement to schools.

Sec. 902. Nutritional and other program requirements.

Sec. 903. Free and reduced price policy statement.

Sec. 904. Special assistance.

Sec. 905. Miscellaneous provisions and definitions.

Sec. 906. Summer food service program for children.

Sec. 907. Commodity distribution.

Sec. 908. Child care food program.

Sec. 909. Pilot projects.

Sec. 910. Reduction of paperwork.

Sec. 911. Information on income eligibility.

Sec. 912. Nutrition guidance for child nutrition programs.

Sec. 913. Information clearinghouse.

Sec. 914. School nutrition optional block grant demonstration program.

Subtitle B—Child Nutrition Act of 1966

Sec. 921. Special milk program.

Sec. 922. Free and reduced price policy statement.

Sec. 923. School breakfast program authorization.

Sec. 924. State administrative expenses.

Sec. 925. Regulations.

Sec. 926. Prohibitions.

Sec. 927. Miscellaneous provisions and definitions.

Sec. 928. Accounts and records.
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Sec. 929. Special supplemental nutrition program for women, infants, and children.

Sec. 930. Cash grants for nutrition education.

Sec. 931. Nutrition education and training.

Sec. 932. Breastfeeding promotion program.

TITLE X—FOOD STAMPS AND COMMODITY DISTRIBUTION

Sec. 1001. Short title.

Subtitle A—Food Stamp Program

Sec. 1011. Definition of certification period.

Sec. 1012. Definition of coupon.

Sec. 1013. Treatment of children living at home.

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

Sec. 1015. Adjustment of thrifty food plan.

Sec. 1016. Definition of homeless individual.

Sec. 1017. State option for eligibility standards.

Sec. 1018. Earnings of students.

Sec. 1019. Energy assistance.

Sec. 1020. Deductions from income.

Sec. 1021. Vehicle allowance.

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

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

Sec. 1024. Disqualification of convicted individuals.

Sec. 1025. Disqualification.

Sec. 1026. Caretaker exemption.

Sec. 1027. Employment and training.

Sec. 1028. Comparable treatment for disqualification.

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

Sec. 1030. Disqualification of fleeing felons.

Sec. 1031. Cooperation with child support agencies.

Sec. 1032. Disqualification relating to child support arrears.

Sec. 1033. Work requirement.

Sec. 1034. Encourage electronic benefit transfer systems.

Sec. 1035. Value of minimum allotment.

Sec. 1036. Benefits on recertification.

Sec. 1037. Optional combined allotment for expedited households.

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

Sec. 1039. Allotments for households residing in centers.

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

concerns. Sec. 1041. Authority to establish authorization periods.

Sec. 1042. Information for verifying eligibility for authorization.

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

Sec. 1044. Operation of food stamp offices.

Sec. 1045. State employee and training standards.

Sec. 1046. Exchange of law enforcement information.

Sec. 1047. Expedited coupon service.

Sec. 1048. Withdrawing fair hearing requests.

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

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

Sec. 1051. Disqualification of retailers who are disqualified under the WIC program. Sec. 1052. Collection of overissuances.

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

administrative and judicial review. Sec. 1054. Expanded criminal forfeiture for violations.

Sec. 1055. Limitation of Federal match.

Sec. 1056. Standards for administration.

Sec. 1057. Work supplementation or support program.

Sec. 1058. Waiver authority.

Sec. 1059. Authorization of pilot projects.

Sec. 1060. Response to waivers.

Sec. 1061. Employment initiatives program.

Sec. 1062. Adjustable food stamp cap.

Sec. 1063. Reauthorization of Puerto Rico nutrition assistance program.

Sec. 1064. Simplified food stamp program.

Sec. 1065. State food assistance block grant.

Sec. 1066. American Samoa.

Sec. 1067. Assistance for community food projects.

Subtitle B—Commodity Distribution Programs
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Sec. 1071. Commodity distribution program; commodity supplemental food program.

Sec. 1072. Emergency food assistance program.

Sec. 1073. Food bank demonstration project.

Sec. 1074. Hunger prevention programs.

Sec. 1075. Report on entitlement commodity processing.

Sec. 1076. National commodity processing.

TITLE XI—MISCELLANEOUS

Subtitle A—General Provisions

Sec. 1101. Expenditure of Federal funds in accordance with laws and procedures

applicable to expenditure of State funds.

Sec. 1102. Elimination of housing assistance with respect to fugitive felons and probation and parole violators.

Sec. 1103. Sense of the Senate regarding enterprise zones.

Sec. 1104. Sense of the Senate regarding the inability of the non-custodial parent

to pay child support.

Sec. 1105. Food stamp eligibility.

Sec. 1106. Establishing national goals to prevent teenage pregnancies.

Sec. 1107. Sense of the Senate regarding enforcement of statutory rape laws.

Sec. 1108. Sanctioning for testing positive for controlled substances.

Sec. 1109. Abstinence education.

Sec. 1110. Provisions to encourage electronic benefit transfer systems.

Sec. 1111. Reduction in block grants to States for social services.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY

FAMILIES

SEC. 101. FINDINGS.

The Congress makes the following findings:

(1) Marriage is the foundation of a successful society.

(2) Marriage is an essential institution of a successful society which promotes the interests of children.

(3) Promotion of responsible fatherhood and motherhood

is integral to successful child rearing and the well-being of

children.

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

children had a child support order established and, of that

54 percent, only about one-half received the full amount due.

Of the cases enforced through the public child support enforcement system, only 18 percent of the caseload has a collection.

(5) The number of individuals receiving aid to families

with dependent children (in this section referred to as ‘‘AFDC’’)

has more than tripled since 1965. More than two-thirds of

these recipients are children. Eighty-nine percent of children

receiving AFDC benefits now live in homes in which no father

is present.

(A)(i) The average monthly number of children receiving AFDC benefits— (I) was 3,300,000 in 1965;

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

(III) was 7,400,000 in 1980; and

(IV) was 9,300,000 in 1992.

(ii) While the number of children receiving AFDC benefits increased nearly threefold between 1965 and 1992,

the total number of children in the United States aged

0 to 18 has declined by 5.5 percent.
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(B) The Department of Health and Human Services

has estimated that 12,000,000 children will receive AFDC

benefits within 10 years.

(C) The increase in the number of children receiving

public assistance is closely related to the increase in births

to unmarried women. Between 1970 and 1991, the percentage of live births to unmarried women increased nearly

threefold, from 10.7 percent to 29.5 percent.

(6) The increase of out-of-wedlock pregnancies and births

is well documented as follows:

(A) It is estimated that the rate of nonmarital teen

pregnancy rose 23 percent from 54 pregnancies per 1,000

unmarried teenagers in 1976 to 66.7 pregnancies in 1991.

The overall rate of nonmarital pregnancy rose 14 percent

from 90.8 pregnancies per 1,000 unmarried women in 1980

to 103 in both 1991 and 1992. In contrast, the overall

pregnancy rate for married couples decreased 7.3 percent

between 1980 and 1991, from 126.9 pregnancies per 1,000

married women in 1980 to 117.6 pregnancies in 1991.

(B) The total of all out-of-wedlock births between 1970

and 1991 has risen from 10.7 percent to 29.5 percent and

if the current trend continues, 50 percent of all births

by the year 2015 will be out-of-wedlock.

(7) The negative consequences of an out-of-wedlock birth

on the mother, the child, the family, and society are well

documented as follows:

(A) Young women 17 and under who give birth outside

of marriage are more likely to go on public assistance

and to spend more years on welfare once enrolled. These

combined effects of ‘‘younger and longer’’ increase total

AFDC costs per household by 25 percent to 30 percent

for 17-year olds. (B) Children born out-of-wedlock have a substantially

higher risk of being born at a very low or moderately

low birth weight. (C) Children born out-of-wedlock are more likely to

experience low verbal cognitive attainment, as well as more

child abuse, and neglect. (D) Children born out-of-wedlock were more likely to

have lower cognitive scores, lower educational aspirations,

and a greater likelihood of becoming teenage parents themselves.

(E) Being born out-of-wedlock significantly reduces the

chances of the child growing up to have an intact marriage. (F) Children born out-of-wedlock are 3 times more

likely to be on welfare when they grow up.

(8) Currently 35 percent of children in single-parent homes

were born out-of-wedlock, nearly the same percentage as that

of children in single-parent homes whose parents are divorced

(37 percent). While many parents find themselves, through

divorce or tragic circumstances beyond their control, facing

the difficult task of raising children alone, nevertheless, the

negative consequences of raising children in single-parent

homes are well documented as follows:

(A) Only 9 percent of married-couple families with

children under 18 years of age have income below the

national poverty level. In contrast, 46 percent of female-
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headed households with children under 18 years of age

are below the national poverty level.

(B) Among single-parent families, nearly 1⁄2 of the

mothers who never married received AFDC while only

1⁄5 of divorced mothers received AFDC.

(C) Children born into families receiving welfare assistance are 3 times more likely to be on welfare when they

reach adulthood than children not born into families receiving welfare.

(D) Mothers under 20 years of age are at the greatest

risk of bearing low-birth-weight babies.

(E) The younger the single parent mother, the less

likely she is to finish high school.

(F) Young women who have children before finishing

high school are more likely to receive welfare assistance

for a longer period of time.

(G) Between 1985 and 1990, the public cost of births

to teenage mothers under the aid to families with dependent children program, the food stamp program, and the

medicaid program has been estimated at $120,000,000,000.

(H) The absence of a father in the life of a child

has a negative effect on school performance and peer

adjustment.

(I) Children of teenage single parents have lower cognitive scores, lower educational aspirations, and a greater

likelihood of becoming teenage parents themselves.

(J) Children of single-parent homes are 3 times more

likely to fail and repeat a year in grade school than are

children from intact 2-parent families.

(K) Children from single-parent homes are almost 4

times more likely to be expelled or suspended from school.

(L) Neighborhoods with larger percentages of youth

aged 12 through 20 and areas with higher percentages

of single-parent households have higher rates of violent

crime.

(M) Of those youth held for criminal offenses within

the State juvenile justice system, only 29.8 percent lived

primarily in a home with both parents. In contrast to

these incarcerated youth, 73.9 percent of the 62,800,000

children in the Nation’s resident population were living

with both parents.

(9) Therefore, in light of this demonstration of the crisis

in our Nation, it is the sense of the Congress that prevention

of out-of-wedlock pregnancy and reduction in out-of-wedlock

birth are very important Government interests and the policy

contained in part A of title IV of the Social Security Act (as

amended by section 103 of this Act) is intended to address

the crisis.

SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

Except as otherwise specifically provided, wherever in this title

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

of a section or other provision, the reference shall be considered

to be made to that section or other provision of the Social Security

Act.
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SEC. 103. BLOCK GRANTS TO STATES.

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

as follows:

‘‘PART A—BLOCK GRANTS TO STATES FOR

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

‘‘SEC. 401. PURPOSE.

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

flexibility of States in operating a program designed to— ‘‘(1) provide assistance to needy families so that children

may be cared for in their own homes or in the homes of

relatives;

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

benefits by promoting job preparation, work, and marriage; ‘‘(3) prevent and reduce the incidence of out-of-wedlock

pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and ‘‘(4) encourage the formation and maintenance of two-parent families.

‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any

State program funded under this part.

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

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

means, with respect to a fiscal year, a State that, during the

2-year period immediately preceding the fiscal year, has submitted

to the Secretary a plan that includes the following: ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM.— ‘‘(A) GENERAL PROVISIONS.—A written document that

outlines how the State intends to do the following: ‘‘(i) Conduct a program, designed to serve all political subdivisions in the State, that provides assistance

to needy families with (or expecting) children and provides parents with job preparation, work, and support

services to enable them to leave the program and

become self-sufficient.

‘‘(ii) Require a parent or caretaker receiving assist- ance under the program to engage in work (as defined

by the State) once the State determines the parent

or caretaker is ready to engage in work, or once the

parent or caretaker has received assistance under the

program for 24 months (whether or not consecutive),

whichever is earlier.

‘‘(iii) Ensure that parents and caretakers receiving

assistance under the program engage in work activities

in accordance with section 407.

‘‘(iv) Take such reasonable steps as the State

deems necessary to restrict the use and disclosure of

information about individuals and families receiving

assistance under the program attributable to funds

provided by the Federal Government.

‘‘(v) Establish goals and take action to prevent

and reduce the incidence of out-of-wedlock pregnancies,
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with special emphasis on teenage pregnancies, and

establish numerical goals for reducing the illegitimacy

ratio of the State (as defined in section 403(a)(2)(B))

for calendar years 1996 through 2005.

‘‘(B) SPECIAL PROVISIONS.—

‘‘(i) The document shall indicate whether the State

intends to treat families moving into the State from

another State differently than other families under

the program, and if so, how the State intends to treat

such families under the program.

‘‘(ii) The document shall indicate whether the State

intends to provide assistance under the program to

individuals who are not citizens of the United States,

and if so, shall include an overview of such assistance.

‘‘(2) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD

SUPPORT ENFORCEMENT PROGRAM.—A certification by the chief

executive officer of the State that, during the fiscal year, the

State will operate a child support enforcement program under

the State plan approved under part D.

‘‘(3) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD

PROTECTION PROGRAM.—A certification by the chief executive

officer of the State that, during the fiscal year, the State will

operate a child protection program under the State plan

approved under part B.

‘‘(4) CERTIFICATION OF THE ADMINISTRATION OF THE PROGRAM.—A certification by the chief executive officer of the State

specifying which State agency or agencies will administer and

supervise the program referred to in paragraph (1) for the

fiscal year, which shall include assurances that local governments and private sector organizations—

‘‘(A) have been consulted regarding the plan and design

of welfare services in the State so that services are provided

in a manner appropriate to local populations; and

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

on the plan and the design of such services.

‘‘(5) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS

WITH EQUITABLE ACCESS TO ASSISTANCE.—A certification by the

chief executive officer of the State that, during the fiscal year,

the State will provide each Indian who is a member of an

Indian tribe in the State that does not have a tribal family

assistance plan approved under section 412 with equitable

access to assistance under the State program funded under

this part attributable to funds provided by the Federal Government.

‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUMMARY.—The State

shall make available to the public a summary of any plan submitted

by the State under this section.

‘‘SEC. 403. GRANTS TO STATES.

‘‘(a) GRANTS.—

‘‘(1) FAMILY ASSISTANCE GRANT.—

‘‘(A) IN GENERAL.—Each eligible State shall be entitled

to receive from the Secretary, for each of fiscal years 1996,

1997, 1998, 1999, 2000, and 2001 a grant in an amount

equal to the State family assistance grant.
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‘‘(B) STATE FAMILY ASSISTANCE GRANT DEFINED.—As

used in this part, the term ‘State family assistance grant’

means the greatest of—

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

to the State under former section 403 (as in effect

on September 30, 1995) for fiscal years 1992, 1993,

and 1994 (other than with respect to amounts expended

by the State for child care under subsection (g) or

(i) of former section 402 (as so in effect));

‘‘(ii)(I) the total amount required to be paid to

the State under former section 403 for fiscal year 1994

(other than with respect to amounts expended by the

State for child care under subsection (g) or (i) of former

section 402 (as so in effect)); plus

‘‘(II) an amount equal to 85 percent of the amount

(if any) by which the total amount required to be

paid to the State under former section 403(a)(5) for

emergency assistance for fiscal year 1995 exceeds the

total amount required to be paid to the State under

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

fiscal year 1994, the Secretary approved under former

section 402 an amendment to the former State plan

with respect to the provision of emergency assistance

in the context of family preservation; or

‘‘(iii) 4⁄3 of the total amount required to be paid

to the State under former section 403 (as in effect

on September 30, 1995) for the 1st 3 quarters of fiscal

year 1995 (other than with respect to amounts

expended by the State under the State plan approved

under part F (as so in effect) or for child care under

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

effect)), plus the total amount required to be paid to

the State for fiscal year 1995 under former section

403(l) (as so in effect).

‘‘(C) TOTAL AMOUNT REQUIRED TO BE PAID TO THE STATE

UNDER FORMER SECTION 403 DEFINED.—As used in this part,

the term ‘total amount required to be paid to the State

under former section 403’ means, with respect to a fiscal

year— ‘‘(i) in the case of a State to which section 1108

does not apply, the sum of— ‘‘(I) the Federal share of maintenance assistance expenditures for the fiscal year, before reduction pursuant to subparagraph (B) or (C) of section

403(b)(2) (as in effect on September 30, 1995),

as reported by the State on ACF Form 231;

‘‘(II) the Federal share of administrative

expenditures (including administrative expenditures for the development of management information systems) for the fiscal year, as reported by

the State on ACF Form 231;

‘‘(III) the Federal share of emergency assistance expenditures for the fiscal year, as reported

by the State on ACF Form 231;

‘‘(IV) the Federal share of expenditures for

the fiscal year with respect to child care pursuant

to subsections (g) and (i) of former section 402
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(as in effect on September 30, 1995), as reported

by the State on ACF Form 231; and

‘‘(V) the aggregate amount required to be paid

to the State for the fiscal year with respect to

the State program operated under part F (as in

effect on September 30, 1995), as determined by

the Secretary, including additional obligations or

reductions in obligations made after the close of

the fiscal year; and

‘‘(ii) in the case of a State to which section 1108

applies, the lesser of—

‘‘(I) the sum described in clause (i); or

‘‘(II) the total amount certified by the Secretary under former section 403 (as in effect during

the fiscal year) with respect to the territory.

‘‘(D) INFORMATION TO BE USED IN DETERMINING

AMOUNTS.—

‘‘(i) FOR FISCAL YEARS 1992 AND 1993.—

‘‘(I) In determining the amount described in

subclauses (I) through (IV) of subparagraph (C)(i)

for any State for each of fiscal years 1992 and

1993, the Secretary shall use information available

as of April 28, 1995.

‘‘(II) In determining the amount described in

subparagraph (C)(i)(V) for any State for each of

fiscal years 1992 and 1993, the Secretary shall

use information available as of January 6, 1995.

‘‘(ii) FOR FISCAL YEAR 1994.—In determining the amounts described in subparagraph (C)(i) for any State

for fiscal year 1994, the Secretary shall use information

available as of April 28, 1995.

‘‘(iii) FOR FISCAL YEAR 1995.— ‘‘(I) In determining the amount described in subparagraph (B)(ii)(II) for any State for fiscal year

1995, the Secretary shall use the information

which was reported by the States and estimates

made by the States with respect to emergency

assistance expenditures and was available as of

August 11, 1995. ‘‘(II) In determining the amounts described in subclauses (I) through (IV) of subparagraph (C)(i)

for any State for fiscal year 1995, the Secretary

shall use information available as of October 2,

1995.

‘‘(III) In determining the amount described in

subparagraph (C)(i)(V) for any State for fiscal year

1995, the Secretary shall use information available

as of October 5, 1995.

‘‘(E) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there

are appropriated for fiscal years 1996, 1997, 1998, 1999,

2000, and 2001 such sums as are necessary for grants

under this paragraph.

‘‘(2) GRANT TO REWARD STATES THAT REDUCE OUT-OF-WEDLOCK BIRTHS.—

‘‘(A) IN GENERAL.—In addition to any grant under paragraph (1), each eligible State shall be entitled to receive
H. R. 4—13

from the Secretary for fiscal year 1998 or any succeeding

fiscal year, a grant in an amount equal to the State family

assistance grant multiplied by—

‘‘(i) 5 percent if—

‘‘(I) the illegitimacy ratio of the State for the

fiscal year is at least 1 percentage point lower

than the illegitimacy ratio of the State for fiscal

year 1995; and

‘‘(II) the rate of induced pregnancy terminations in the State for the fiscal year is less

than the rate of induced pregnancy terminations

in the State for fiscal year 1995; or

‘‘(ii) 10 percent if—

‘‘(I) the illegitimacy ratio of the State for the

fiscal year is at least 2 percentage points lower

than the illegitimacy ratio of the State for fiscal

year 1995; and

‘‘(II) the rate of induced pregnancy terminations in the State for the fiscal year is less

than the rate of induced pregnancy terminations

in the State for fiscal year 1995.

‘‘(B) ILLEGITIMACY RATIO.—As used in this paragraph,

the term ‘illegitimacy ratio’ means, with respect to a State

and a fiscal year—

‘‘(i) the number of out-of-wedlock births that

occurred in the State during the most recent fiscal

year for which such information is available; divided

by ‘‘(ii) the number of births that occurred in the

State during the most recent fiscal year for which

such information is available.

‘‘(C) DISREGARD OF CHANGES IN DATA DUE TO CHANGED

REPORTING METHODS.—For purposes of subparagraph (A),

the Secretary shall disregard— ‘‘(i) any difference between the illegitimacy ratio

of a State for a fiscal year and the illegitimacy ratio

of the State for fiscal year 1995 which is attributable

to a change in State methods of reporting data used

to calculate the illegitimacy ratio; and ‘‘(ii) any difference between the rate of induced

pregnancy terminations in a State for a fiscal year

and such rate for fiscal year 1995 which is attributable

to a change in State methods of reporting data used

to calculate such rate.

‘‘(D) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there

are appropriated for fiscal year 1998 and for each succeeding fiscal year such sums as are necessary for grants under

this paragraph.

‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN

CERTAIN STATES.—

‘‘(A) IN GENERAL.—Each qualifying State shall, subject

to subparagraph (F), be entitled to receive from the Secretary—

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

equal to 2.5 percent of the total amount required to

be paid to the State under former section 403 (as
H. R. 4—14

in effect during fiscal year 1994) for fiscal year 1994;

and

‘‘(ii) for each of fiscal years 1998, 1999, and 2000,

a grant in an amount equal to the sum of—

‘‘(I) the amount (if any) required to be paid

to the State under this paragraph for the immediately preceding fiscal year; and

‘‘(II) 2.5 percent of the sum of—

‘‘(aa) the total amount required to be paid

to the State under former section 403 (as in

effect during fiscal year 1994) for fiscal year

1994; and

‘‘(bb) the amount (if any) required to be

paid to the State under this paragraph for

the fiscal year preceding the fiscal year for

which the grant is to be made.

‘‘(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR

STATES FAILING TO REMAIN QUALIFYING STATES.—Each State

that is not a qualifying State for a fiscal year specified

in subparagraph (A)(ii) but was a qualifying State for a

prior fiscal year shall, subject to subparagraph (F), be

entitled to receive from the Secretary for the specified

fiscal year, a grant in an amount equal to the amount

required to be paid to the State under this paragraph

for the most recent fiscal year for which the State was

a qualifying State.

‘‘(C) QUALIFYING STATE.—

‘‘(i) IN GENERAL.—For purposes of this paragraph,

a State is a qualifying State for a fiscal year if—

‘‘(I) the level of welfare spending per poor person by the State for the immediately preceding

fiscal year is less than the national average level

of State welfare spending per poor person for such

preceding fiscal year; and

‘‘(II) the population growth rate of the State

(as determined by the Bureau of the Census for

the most recent fiscal year for which information

is available) exceeds the average population

growth rate for all States (as so determined) for

such most recent fiscal year.

‘‘(ii) STATE MUST QUALIFY IN FISCAL YEAR 1997.—

Notwithstanding clause (i), a State shall not be a

qualifying State for any fiscal year after 1997 by reason

of clause (i) if the State is not a qualifying State

for fiscal year 1997 by reason of clause (i).

‘‘(iii) CERTAIN STATES DEEMED QUALIFYING

STATES.—For purposes of this paragraph, a State is

deemed to be a qualifying State for fiscal years 1997,

1998, 1999, and 2000 if—

‘‘(I) the level of welfare spending per poor person by the State for fiscal year 1996 is less than

35 percent of the national average level of State

welfare spending per poor person for fiscal year

1996; or

‘‘(II) the population of the State increased by

more than 10 percent from April 1, 1990, to July
H. R. 4—15

1, 1994, as determined by the Bureau of the Census.

‘‘(D) DEFINITIONS.—As used in this paragraph:

‘‘(i) LEVEL OF WELFARE SPENDING PER POOR PERSON.—The term ‘level of State welfare spending per

poor person’ means, with respect to a State and a

fiscal year—

‘‘(I) the sum of—

‘‘(aa) the total amount required to be paid

to the State under former section 403 (as in

effect during fiscal year 1994) for fiscal year

1994; and

‘‘(bb) the amount (if any) paid to the State

under this paragraph for the immediately

preceding fiscal year; divided by

‘‘(II) the number of individuals, according to

the 1990 decennial census, who were residents

of the State and whose income was below the

poverty line.

‘‘(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE

SPENDING PER POOR PERSON.—The term ‘national average level of State welfare spending per poor person’

means, with respect to a fiscal year, an amount equal

to—

‘‘(I) the total amount required to be paid to

the States under former section 403 (as in effect

during fiscal year 1994) for fiscal year 1994;

divided by

‘‘(II) the number of individuals, according to

the 1990 decennial census, who were residents

of any State and whose income was below the

poverty line.

‘‘(iii) STATE.—The term ‘State’ means each of the

50 States of the United States and the District of

Columbia.

‘‘(E) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there

are appropriated for fiscal years 1997, 1998, 1999, and

2000 such sums as are necessary for grants under this

paragraph, in a total amount not to exceed $800,000,000.

‘‘(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPROPRIATIONS.—If the amount appropriated pursuant to this

paragraph for a fiscal year is less than the total amount

of payments otherwise required to be made under this

paragraph for the fiscal year, then the amount otherwise

payable to any State for the fiscal year under this paragraph shall be reduced by a percentage equal to the amount

so appropriated divided by such total amount.

‘‘(G) BUDGET SCORING.—Notwithstanding section

257(b)(2) of the Balanced Budget and Emergency Deficit

Control Act of 1985, the baseline shall assume that no

grant shall be made under this paragraph after fiscal year

2000.

‘‘(b) CONTINGENCY FUND.—

‘‘(1) ESTABLISHMENT.—There is hereby established in the

Treasury of the United States a fund which shall be known
H. R. 4—16

as the ‘Contingency Fund for State Welfare Programs’ (in this

section referred to as the ‘Fund’).

‘‘(2) DEPOSITS INTO FUND.—Out of any money in the Treasury of the United States not otherwise appropriated, there

are appropriated for fiscal years 1997, 1998, 1999, 2000, and

2001 such sums as are necessary for payment to the Fund

in a total amount not to exceed $1,000,000,000.

‘‘(3) GRANTS.—From amounts appropriated pursuant to

paragraph (2), the Secretary of the Treasury shall pay to each

eligible State for a fiscal year an amount equal to the lesser

of—

‘‘(A) the Federal medical assistance percentage for the

State for the fiscal year (as defined in section 1905(b),

as in effect on September 30, 1995) of the amount (if

any) by which the expenditures of the State in the fiscal

year under the State program funded under this part

exceed the historic State expenditures (as defined in section

409(a)(7)(B)(iii)) for the State with respect to the fiscal

year; or

‘‘(B) 20 percent of the State family assistance grant

for the fiscal year.

‘‘(4) ELIGIBLE STATE.—For purposes of this subsection, a

State is an eligible State for a fiscal year, if—

‘‘(A) the average rate of total unemployment in such

State (seasonally adjusted) for the period consisting of the

most recent 3 months for which data for all States are

published equals or exceeds 6.5 percent;

‘‘(B) the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period equals

or exceeds 110 percent of such average rate for either

(or both) of the corresponding 3-month periods ending in

the 2 preceding calendar years; and ‘‘(C) the total amount expended by the State during

the fiscal year under the State program funded under

this part is not less than 100 percent of the level of historic

State expenditures (as defined in section 409(a)(7)(B)(iii))

with respect to the fiscal year.

‘‘(5) STATE.—As used in this subsection, the term ‘State’

means each of the 50 States of the United States and the

District of Columbia.

‘‘(6) PAYMENT PRIORITY.—The Secretary shall make pay- ments under paragraph (3) in the order in which the Secretary

receives claims for such payments. ‘‘(7) ANNUAL REPORTS.—The Secretary of the Treasury shall

annually report to the Congress on the status of the Fund.

‘‘(8) BUDGET SCORING.—Notwithstanding section 257(b)(2)

of the Balanced Budget and Emergency Deficit Control Act

of 1985, the baseline shall assume that no grant shall be

made under this subsection after fiscal year 2001.

‘‘SEC. 404. USE OF GRANTS.

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

a grant is made under section 403 may use the grant—

‘‘(1) in any manner that is reasonably calculated to accomplish the purpose of this part, including to provide low income

households with assistance in meeting home heating and cooling costs; or
H. R. 4—17

‘‘(2) in any manner that the State was authorized to use

amounts received under part A or F, as such parts were in

effect on September 30, 1995.

‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINISTRATIVE PURPOSES.—

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

section 403 shall not expend more than 15 percent of the

grant for administrative purposes.

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to the use

of a grant for information technology and computerization

needed for tracking or monitoring required by or under this

part.

‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER

RULES OF FORMER STATE.—A State operating a program funded

under this part may apply to a family the rules (including benefit

amounts) of the program funded under this part of another State

if the family has moved to the State from the other State and

has resided in the State for less than 12 months.

‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PURPOSES.—

‘‘(1) IN GENERAL.—A State may use not more than 30

percent of the amount of the grant made to the State under

section 403 for a fiscal year to carry out a State program

pursuant to any or all of the following provisions of law:

‘‘(A) Part B of this title.

‘‘(B) Title XX of this Act.

‘‘(C) The Child Care and Development Block Grant

Act of 1990.

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

under this part that is used to carry out a State program

pursuant to a provision of law specified or described in paragraph (1) shall not be subject to the requirements of this

part, but shall be subject to the requirements that apply to

Federal funds provided directly under the provision of law

to carry out the program.

‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR ASSIST- ANCE.—A State may reserve amounts paid to the State under this

part for any fiscal year for the purpose of providing, without fiscal

year limitation, assistance under the State program funded under

this part.

‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACEMENT PRO- GRAM.—A State to which a grant is made under section 403 may use the grant to make payments (or provide job placement vouchers)

to State-approved public and private job placement agencies that

provide employment placement services to individuals who receive

assistance under the State program funded under this part.

‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT TRANSFER SYSTEM.—A State to which a grant is made under section 403 is

encouraged to implement an electronic benefit transfer system for

providing assistance under the State program funded under this

part, and may use the grant for such purpose.

‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.

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

to a State under section 403 in quarterly installments.

‘‘(b) NOTIFICATION.—Not later than 3 months before the payment of any such quarterly installment to a State, the Secretary
H. R. 4—18

shall notify the State of the amount of any reduction determined

under section 412(a)(1)(B) with respect to the State.

‘‘(c) COMPUTATION AND CERTIFICATION OF PAYMENTS TO

STATES.—

‘‘(1) COMPUTATION.—The Secretary shall estimate the

amount to be paid to each eligible State for each quarter

under this part, such estimate to be based on a report filed

by the State containing an estimate by the State of the total

sum to be expended by the State in the quarter under the

State program funded under this part and such other information as the Secretary may find necessary.

‘‘(2) CERTIFICATION.—The Secretary of Health and Human

Services shall certify to the Secretary of the Treasury the

amount estimated under paragraph (1) with respect to a State,

reduced or increased to the extent of any overpayment or

underpayment which the Secretary of Health and Human Services determines was made under this part to the State for

any prior quarter and with respect to which adjustment has

not been made under this paragraph.

‘‘(d) PAYMENT METHOD.—Upon receipt of a certification under

subsection (c)(2) with respect to a State, the Secretary of the Treasury shall, through the Fiscal Service of the Department of the

Treasury and before audit or settlement by the General Accounting

Office, pay to the State, at the time or times fixed by the Secretary

of Health and Human Services, the amount so certified.

‘‘(e) COLLECTION OF STATE OVERPAYMENTS TO FAMILIES FROM

FEDERAL TAX REFUNDS.—

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

of Health and Human Services that a State agency administering a program funded under this part has notified the Secretary

that a named individual has been overpaid under the State

program funded under this part, the Secretary of the Treasury

shall determine whether any amounts as refunds of Federal

taxes paid are payable to such individual, regardless of whether

the individual filed a tax return as a married or unmarried

individual. If the Secretary of the Treasury finds that any

such amount is so payable, the Secretary shall withhold from

such refunds an amount equal to the overpayment sought to

be collected by the State and pay such amount to the State

agency. ‘‘(2) REGULATIONS.—The Secretary of the Treasury shall

issue regulations, after review by the Secretary of Health and

Human Services, that provide—

‘‘(A) that a State may only submit under paragraph (1) requests for collection of overpayments with respect

to individuals—

‘‘(i) who are no longer receiving assistance under

the State program funded under this part;

‘‘(ii) with respect to whom the State has already

taken appropriate action under State law against the

income or resources of the individuals or families

involved to collect the past-due legally enforceable debt;

and

‘‘(iii) to whom the State agency has given notice

of its intent to request withholding by the Secretary

of the Treasury from the income tax refunds of such

individuals;
H. R. 4—19

‘‘(B) that the Secretary of the Treasury will give a timely and appropriate notice to any other person filing

a joint return with the individual whose refund is subject

to withholding under paragraph (1); and ‘‘(C) the procedures that the State and the Secretary of the Treasury will follow in carrying out this subsection

which, to the maximum extent feasible and consistent with

the provisions of this subsection, will be the same as those

issued pursuant to section 464(b) applicable to collection

of past-due child support.

‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

‘‘(a) LOAN AUTHORITY.— ‘‘(1) IN GENERAL.—The Secretary shall make loans to any loan-eligible State, for a period to maturity of not more than

3 years. ‘‘(2) LOAN-ELIGIBLE STATE.—As used in paragraph (1), the term ‘loan-eligible State’ means a State against which a penalty

has not been imposed under section 409(a)(1).

‘‘(b) RATE OF INTEREST.—The Secretary shall charge and collect interest on any loan made under this section at a rate equal

to the current average market yield on outstanding marketable

obligations of the United States with remaining periods to maturity

comparable to the period to maturity of the loan. ‘‘(c) USE OF LOAN.—A State shall use a loan made to the

State under this section only for any purpose for which grant

amounts received by the State under section 403(a) may be used,

including—‘‘(1) welfare anti-fraud activities; and

‘‘(2) the provision of assistance under the State program to Indian families that have moved from the service area of

an Indian tribe with a tribal family assistance plan approved

under section 412.

‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE.— The cumulative dollar amount of all loans made to a State under

this section during fiscal years 1997 through 2001 shall not exceed

10 percent of the State family assistance grant. ‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS.— The total dollar amount of loans outstanding under this section

may not exceed $1,700,000,000. ‘‘(f) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary for the cost of loans under

this section.

‘‘SEC. 407. MANDATORY WORK REQUIREMENTS.

‘‘(a) PARTICIPATION RATE REQUIREMENTS.— ‘‘(1) ALL FAMILIES.—A State to which a grant is made under section 403 for a fiscal year shall achieve the minimum

participation rate specified in the following table for the fiscal

year with respect to all families receiving assistance under

the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................................... 15

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

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

1999 ............................................................................... 30
H. R. 4—20

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

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

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

‘‘(2) 2-PARENT FAMILIES.—A State to which a grant is made

under section 403 for a fiscal year shall achieve the minimum

participation rate specified in the following table for the fiscal

year with respect to 2-parent families receiving assistance

under the State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

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

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

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

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

‘‘(b) CALCULATION OF PARTICIPATION RATES.—

‘‘(1) ALL FAMILIES.—

‘‘(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(1), the participation rate for all families of a

State for a fiscal year is the average of the participation

rates for all families of the State for each month in the

fiscal year.

‘‘(B) MONTHLY PARTICIPATION RATES.—The participation rate of a State for all families of the State for a

month, expressed as a percentage, is—

‘‘(i) the number of families receiving assistance

under the State program funded under this part that

include an adult who is engaged in work for the month;

divided by

‘‘(ii) the amount by which—

‘‘(I) the number of families receiving such

assistance during the month that include an adult

receiving such assistance; exceeds

‘‘(II) the number of families receiving such

assistance that are subject in such month to a

penalty described in subsection (e)(1) but have not

been subject to such penalty for more than 3

months within the preceding 12-month period

(whether or not consecutive).

‘‘(2) 2-PARENT FAMILIES.—

‘‘(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(2), the participation rate for 2-parent families

of a State for a fiscal year is the average of the participation

rates for 2-parent families of the State for each month

in the fiscal year.

‘‘(B) MONTHLY PARTICIPATION RATES.—The participation rate of a State for 2-parent families of the State

for a month shall be calculated by use of the formula

set forth in paragraph (1)(B), except that in the formula

the term ‘number of 2-parent families’ shall be substituted

for the term ‘number of families’ each place such latter

term appears.

‘‘(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO

CASELOAD REDUCTIONS NOT REQUIRED BY FEDERAL LAW.—

‘‘(A) IN GENERAL.—The Secretary shall prescribe regulations for reducing the minimum participation rate otherwise required by this section for a fiscal year by the number
H. R. 4—21

of percentage points equal to the number of percentage

points (if any) by which— ‘‘(i) the number of families receiving assistance during the fiscal year under the State program funded

under this part is less than ‘‘(ii) the number of families that received aid under

the State plan approved under part A (as in effect

on September 30, 1995) during fiscal year 1995. The minimum participation rate shall not be reduced to

the extent that the Secretary determines that the reduction

in the number of families receiving such assistance is

required by Federal law. ‘‘(B) ELIGIBILITY CHANGES NOT COUNTED.—The regula- tions described in subparagraph (A) shall not take into

account families that are diverted from a State program

funded under this part as a result of differences in eligibility criteria under a State program funded under this

part and eligibility criteria under the State program operated under the State plan approved under part A (as such

plan and such part were in effect on September 30, 1995).

Such regulations shall place the burden on the Secretary

to prove that such families were diverted as a direct result

of differences in such eligibility criteria.

‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING

ASSISTANCE UNDER A TRIBAL FAMILY ASSISTANCE PLAN.—For

purposes of paragraphs (1)(B) and (2)(B), a State may, at its

option, include families receiving assistance under a tribal family assistance plan approved under section 412.

‘‘(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTIONS.—For any fiscal year, a State may, at its option, not

require an individual who is a single custodial parent caring

for a child who has not attained 12 months of age to engage

in work and may disregard such an individual in determining

the participation rates under subsection (a).

‘‘(c) ENGAGED IN WORK.—

‘‘(1) ALL FAMILIES.—For purposes of subsection (b)(1)(B)(i),

a recipient is engaged in work for a month in a fiscal year

if the recipient is participating in such activities for at least

the minimum average number of hours per week specified

in the following table during the month, not fewer than 20

hours per week of which are attributable to an activity

described in paragraph (1), (2), (3), (4), (5), (7), or (8) of subsection (d) (or, in the case of the first 4 weeks for which

the recipient is required pursuant to this section to participate

in work activities, an activity described in subsection (d)(6)):

The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

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

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

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

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

2000 ............................................................................... 30

2001 ............................................................................... 30

2002 ............................................................................... 35

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

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

(b)(2)(B)(i), an adult is engaged in work for a month in a

fiscal year if the adult is making progress in such activities
H. R. 4—22

for at least 35 hours per week during the month, not fewer

than 30 hours per week of which are attributable to an activity

described in paragraph (1), (2), (3), (4), (5), (7), or (8) of subsection (d) (or, in the case of the first 4 weeks for which

the recipient is required pursuant to this section to participate

in work activities, an activity described in subsection (d)(6)).

‘‘(3) LIMITATION ON VOCATIONAL EDUCATION ACTIVITIES

COUNTED AS WORK.—For purposes of determining monthly

participation rates under paragraphs (1)(B)(i) and (2)(B)(i) of

subsection (b), not more than 20 percent of adults in all families

and in 2-parent families determined to be engaged in work

in the State for a month may meet the work activity requirement through participation in vocational educational training.

‘‘(d) WORK ACTIVITIES DEFINED.—As used in this section, the

term ‘work activities’ means—

‘‘(1) unsubsidized employment;

‘‘(2) subsidized private sector employment;

‘‘(3) subsidized public sector employment;

‘‘(4) work experience (including work associated with the

refurbishing of publicly assisted housing) if sufficient private

sector employment is not available;

‘‘(5) on-the-job training;

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

‘‘(7) community service programs;

‘‘(8) vocational educational training (not to exceed 12

months with respect to any individual);

‘‘(9) job skills training directly related to employment;

‘‘(10) education directly related to employment, in the case

of a recipient who has not attained 20 years of age, and has

not received a high school diploma or a certificate of high

school equivalency; and

‘‘(11) satisfactory attendance at secondary school, in the

case of a recipient who—

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

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

has not attained 20 years of age.

‘‘(e) PENALTIES AGAINST INDIVIDUALS.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

if an adult in a family receiving assistance under the State

program funded under this part refuses to engage in work

required in accordance with this section, the State shall—

‘‘(A) reduce the amount of assistance otherwise payable

to the family pro rata (or more, at the option of the State)

with respect to any period during a month in which the

adult so refuses; or

‘‘(B) terminate such assistance,

subject to such good cause and other exceptions as the State

may establish.

‘‘(2) EXCEPTION.—Notwithstanding paragraph (1), a State

may not reduce or terminate assistance under the State program funded under this part based on a refusal of an adult

to work if the adult is a single custodial parent caring for

a child who has not attained 6 years of age, and the adult

proves that the adult has a demonstrated inability (as determined by the State) to obtain needed child care, for 1 or

more of the following reasons:
H. R. 4—23

‘‘(A) Unavailability of appropriate child care within

a reasonable distance from the individual’s home or work

site.

‘‘(B) Unavailability or unsuitability of informal child

care by a relative or under other arrangements.

‘‘(C) Unavailability of appropriate and affordable formal child care arrangements.

‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), an adult in

a family receiving assistance under a State program funded

under this part attributable to funds provided by the Federal

Government may fill a vacant employment position in order

to engage in a work activity described in subsection (d).

‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No adult in a

work activity described in subsection (d) which is funded, in

whole or in part, by funds provided by the Federal Government

shall be employed or assigned—

‘‘(A) when any other individual is on layoff from the

same or any substantially equivalent job; or

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

of any regular employee or otherwise caused an involuntary

reduction of its workforce in order to fill the vacancy so

created with an adult described in paragraph (1).

‘‘(3) NO PREEMPTION.—Nothing in this subsection shall preempt or supersede any provision of State or local law that

provides greater protection for employees from displacement.

‘‘(g) SENSE OF THE CONGRESS.—It is the sense of the Congress

that in complying with this section, each State that operates a

program funded under this part is encouraged to assign the highest

priority to requiring adults in 2-parent families and adults in singleparent families that include older preschool or school-age children

to be engaged in work activities.

‘‘(h) SENSE OF THE CONGRESS THAT STATES SHOULD IMPOSE

CERTAIN REQUIREMENTS ON NONCUSTODIAL, NONSUPPORTING MINOR

PARENTS.—It is the sense of the Congress that the States should

require noncustodial, nonsupporting parents who have not attained

18 years of age to fulfill community work obligations and attend

appropriate parenting or money management classes after school.

‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

‘‘(a) IN GENERAL.—

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

CHILD.—A State to which a grant is made under section 403

shall not use any part of the grant to provide assistance to

a family, unless the family includes—

‘‘(A) a minor child who resides with a custodial parent

or other adult caretaker relative of the child; or

‘‘(B) a pregnant individual.

‘‘(2) NO ADDITIONAL CASH ASSISTANCE FOR CHILDREN BORN

TO FAMILIES RECEIVING ASSISTANCE.—

‘‘(A) GENERAL RULE.—A State to which a grant is made

under section 403 shall not use any part of the grant

to provide cash benefits for a minor child who is born

to—

‘‘(i) a recipient of assistance under the program

operated under this part; or
H. R. 4—24

‘‘(ii) a person who received such assistance at any

time during the 10-month period ending with the birth

of the child.

‘‘(B) EXCEPTION FOR CHILDREN BORN INTO FAMILIES

WITH NO OTHER CHILDREN.—Subparagraph (A) shall not

apply to a minor child who is born into a family that

does not include any other children.

‘‘(C) EXCEPTION FOR VOUCHERS.—Subparagraph (A)

shall not apply to vouchers which are provided in lieu

of cash benefits and which may be used only to pay for

particular goods and services specified by the State as

suitable for the care of the child involved.

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

(A) shall not apply with respect to a child who is born

as a result of rape or incest.

‘‘(E) STATE ELECTION TO OPT OUT.—Subparagraph (A)

shall not apply to a State if State law specifically exempts

the State program funded under this part from the application of subparagraph (A).

‘‘(F) SUBSTITUTION OF FAMILY CAPS IN EFFECT UNDER

WAIVERS.—Subparagraph (A) shall not apply to a State—

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

part, there is in effect a waiver approved by the Secretary under section 1115 which permits the State

to deny aid under the State plan approved under part

A of this title (as in effect without regard to the amendments made by title I of the Personal Responsibility

and Work Opportunity Act of 1995) to a family by

reason of the birth of a child to a family member

otherwise eligible for such aid; and ‘‘(ii) for so long as the State continues to implement

such policy under the State program funded under

this part, under rules prescribed by the State. ‘‘(3) REDUCTION OR ELIMINATION OF ASSISTANCE FOR

NONCOOPERATION IN CHILD SUPPORT.—If the agency responsible

for administering the State plan approved under part D determines that an individual is not cooperating with the State

in establishing, modifying, or enforcing a support order with

respect to a child of the individual, then the State—

‘‘(A) shall deduct from the assistance that would otherwise be provided to the family of the individual under

the State program funded under this part the share of

such assistance attributable to the individual; and

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

State program.

‘‘(4) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN

SUPPORT RIGHTS TO THE STATE.—

‘‘(A) IN GENERAL.—A State to which a grant is made

under section 403 shall require, as a condition of providing

assistance to a family under the State program funded

under this part, that a member of the family assign to

the State any rights the family member may have (on

behalf of the family member or of any other person for

whom the family member has applied for or is receiving

such assistance) to support from any other person, not

exceeding the total amount of assistance so provided to

the family, which accrue (or have accrued) before the date
H. R. 4—25

the family leaves the program, which assignment, on and

after the date the family leaves the program, shall not

apply with respect to any support (other than support

collected pursuant to section 464) which accrued before

the family received such assistance and which the State

has not collected by—

‘‘(i) September 30, 2000, if the assignment is

executed on or after October 1, 1997, and before October 1, 2000; or

‘‘(ii) the date the family leaves the program, if

the assignment is executed on or after October 1, 2000.

‘‘(B) LIMITATION.—A State to which a grant is made

under section 403 shall not require, as a condition of providing assistance to any family under the State program

funded under this part, that a member of the family assign

to the State any rights to support described in subparagraph (A) which accrue after the date the family leaves

the program, except to the extent necessary to enable the

State to comply with section 457.

‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS WHO DO NOT

ATTEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PROGRAM.—A State to which a grant is made under section 403

shall not use any part of the grant to provide assistance to

an individual who has not attained 18 years of age, is not

married, has a minor child at least 12 weeks of age in his

or her care, and has not successfully completed a high-school

education (or its equivalent), if the individual does not participate in—

‘‘(A) educational activities directed toward the attainment of a high school diploma or its equivalent; or ‘‘(B) an alternative educational or training program

that has been approved by the State.

‘‘(6) NO ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN

ADULT-SUPERVISED SETTINGS.— ‘‘(A) IN GENERAL.— ‘‘(i) REQUIREMENT.—Except as provided in

subparagraph (B), a State to which a grant is made

under section 403 shall not use any part of the grant

to provide assistance to an individual described in

clause (ii) of this subparagraph if the individual and

the minor child referred to in clause (ii)(II) do not

reside in a place of residence maintained by a parent,

legal guardian, or other adult relative of the individual

as such parent’s, guardian’s, or adult relative’s own

home.

‘‘(ii) INDIVIDUAL DESCRIBED.— For purposes of

clause (i), an individual described in this clause is

an individual who—

‘‘(I) has not attained 18 years of age; and

‘‘(II) is not married, and has a minor child

in his or her care.

‘‘(B) EXCEPTION.—

‘‘(i) PROVISION OF, OR ASSISTANCE IN LOCATING,

ADULT-SUPERVISED LIVING ARRANGEMENT.—In the case

of an individual who is described in clause (ii), the

State agency referred to in section 402(a)(4) shall provide, or assist the individual in locating, a second
H. R. 4—26

chance home, maternity home, or other appropriate

adult-supervised supportive living arrangement, taking

into consideration the needs and concerns of the

individual, unless the State agency determines that

the individual’s current living arrangement is appropriate, and thereafter shall require that the individual

and the minor child referred to in subparagraph

(A)(ii)(II) reside in such living arrangement as a condition of the continued receipt of assistance under the

State program funded under this part attributable to

funds provided by the Federal Government (or in an

alternative appropriate arrangement, should circumstances change and the current arrangement cease

to be appropriate).

‘‘(ii) INDIVIDUAL DESCRIBED.—For purposes of

clause (i), an individual is described in this clause

if the individual is described in subparagraph (A)(ii),

and—

‘‘(I) the individual has no parent, legal guardian or other appropriate adult relative described

in subclause (II) of his or her own who is living

or whose whereabouts are known;

‘‘(II) no living parent, legal guardian, or other

appropriate adult relative, who would otherwise

meet applicable State criteria to act as the individual’s legal guardian, of such individual allows the

individual to live in the home of such parent,

guardian, or relative;

‘‘(III) the State agency determines that—

‘‘(aa) the individual or the minor child

referred to in subparagraph (A)(ii)(II) is being

or has been subjected to serious physical or

emotional harm, sexual abuse, or exploitation

in the residence of the individual’s own parent

or legal guardian; or

‘‘(bb) substantial evidence exists of an act

or failure to act that presents an imminent

or serious harm if the individual and the minor

child lived in the same residence with the

individual’s own parent or legal guardian; or

‘‘(IV) the State agency otherwise determines

that it is in the best interest of the minor child

to waive the requirement of subparagraph (A) with

respect to the individual or the minor child.

‘‘(iii) SECOND-CHANCE HOME.—For purposes of this

subparagraph, the term ‘second-chance home’ means

an entity that provides individuals described in clause

(ii) with a supportive and supervised living arrangement in which such individuals are required to learn

parenting skills, including child development, family

budgeting, health and nutrition, and other skills to

promote their long-term economic independence and

the well-being of their children.

‘‘(7) NO MEDICAL SERVICES.—

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

(B), a State to which a grant is made under section 403
H. R. 4—27

shall not use any part of the grant to provide medical

services.

‘‘(B) EXCEPTION FOR FAMILY PLANNING SERVICES.—As

used in subparagraph (A), the term ‘medical services’ does

not include family planning services.

‘‘(8) NO ASSISTANCE FOR MORE THAN 5 YEARS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), a State to which a grant is made

under section 403 shall not use any part of the grant

to provide cash assistance to a family that includes an

adult who has received assistance under any State program

funded under this part attributable to funds provided by

the Federal Government, for 60 months (whether or not

consecutive) after the date the State program funded under

this part commences.

‘‘(B) MINOR CHILD EXCEPTION.—In determining the

number of months for which an individual who is a parent

or pregnant has received assistance under the State program funded under this part, the State shall disregard

any month for which such assistance was provided with

respect to the individual and during which the individual

was—

‘‘(i) a minor child; and

‘‘(ii) not the head of a household or married to

the head of a household.

‘‘(C) HARDSHIP EXCEPTION.—

‘‘(i) IN GENERAL.—The State may exempt a family

from the application of subparagraph (A) by reason

of hardship or if the family includes an individual

who has been battered or subjected to extreme cruelty.

‘‘(ii) LIMITATION.—The number of families with

respect to which an exemption made by a State under

clause (i) is in effect for a fiscal year shall not exceed

15 percent of the average monthly number of families

to which assistance is provided under the State program funded under this part.

‘‘(iii) BATTERED OR SUBJECT TO EXTREME CRUELTY

DEFINED.—For purposes of clause (i), an individual has

been battered or subjected to extreme cruelty if the

individual has been subjected to—

‘‘(I) physical acts that resulted in, or threatened to result in, physical injury to the individual;

‘‘(II) sexual abuse;

‘‘(III) sexual activity involving a dependent

child;

‘‘(IV) being forced as the caretaker relative

of a dependent child to engage in nonconsensual

sexual acts or activities;

‘‘(V) threats of, or attempts at, physical or

sexual abuse;

‘‘(VI) mental abuse; or

‘‘(VII) neglect or deprivation of medical care.

‘‘(D) RULE OF INTERPRETATION.—Subparagraph (A)

shall not be interpreted to require any State to provide

assistance to any individual for any period of time under

the State program funded under this part.
H. R. 4—28

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

FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE

IN ORDER TO OBTAIN ASSISTANCE IN 2 OR MORE STATES.—A

State to which a grant is made under section 403 shall not

use any part of the grant to provide cash assistance to an

individual during the 10-year period that begins on the date

the individual is convicted in Federal or State court of having

made a fraudulent statement or representation with respect

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

assistance simultaneously from 2 or more States under programs that are funded under this title, title XIX, or the Food

Stamp Act of 1977, or benefits in 2 or more States under

the supplemental security income program under title XVI.

‘‘(10) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS AND

PROBATION AND PAROLE VIOLATORS.—

‘‘(A) IN GENERAL.—A State to which a grant is made

under section 403 shall not use any part of the grant

to provide assistance to any individual who is—

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

confinement after conviction, under the laws of the

place from which the individual flees, for a crime,

or an attempt to commit a crime, which is a felony

under the laws of the place from which the individual

flees, or which, in the case of the State of New Jersey,

is a high misdemeanor under the laws of such State;

or

‘‘(ii) violating a condition of probation or parole

imposed under Federal or State law.

‘‘(B) EXCHANGE OF INFORMATION WITH LAW ENFORCE- MENT AGENCIES.—If a State to which a grant is made

under section 403 establishes safeguards against the use

or disclosure of information about applicants or recipients

of assistance under the State program funded under this

part, the safeguards shall not prevent the State agency

administering the program from furnishing a Federal,

State, or local law enforcement officer, upon the request

of the officer, with the current address of any recipient

if the officer furnishes the agency with the name of the

recipient and notifies the agency that— ‘‘(i) the recipient—

‘‘(I) is described in subparagraph (A); or

‘‘(II) has information that is necessary for the

officer to conduct the official duties of the officer;

and

‘‘(ii) the location or apprehension of the recipient

is within such official duties.

‘‘(11) DENIAL OF ASSISTANCE FOR MINOR CHILDREN WHO

ARE ABSENT FROM THE HOME FOR A SIGNIFICANT PERIOD.—

‘‘(A) IN GENERAL.—A State to which a grant is made

under section 403 shall not use any part of the grant

to provide assistance for a minor child who has been,

or is expected by a parent (or other caretaker relative)

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

of 45 consecutive days or, at the option of the State, such

period of not less than 30 and not more than 90 consecutive

days as the State may provide for in the State plan submitted pursuant to section 402.
H. R. 4—29

‘‘(B) STATE AUTHORITY TO ESTABLISH GOOD CAUSE

EXCEPTIONS.—The State may establish such good cause

exceptions to subparagraph (A) as the State considers

appropriate if such exceptions are provided for in the State

plan submitted pursuant to section 402.

‘‘(C) DENIAL OF ASSISTANCE FOR RELATIVE WHO FAILS

TO NOTIFY STATE AGENCY OF ABSENCE OF CHILD.—A State

to which a grant is made under section 403 shall not

use any part of the grant to provide assistance for an

individual who is a parent (or other caretaker relative)

of a minor child and who fails to notify the agency administering the State program funded under this part of the

absence of the minor child from the home for the period

specified in or provided for pursuant to subparagraph (A),

by the end of the 5-day period that begins with the date

that it becomes clear to the parent (or relative) that the

minor child will be absent for such period so specified

or provided for.

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

IN DETERMINING THE AMOUNT OF ASSISTANCE TO BE PROVIDED

TO A FAMILY.—If a State to which a grant is made under

section 403 uses any part of the grant to provide assistance

for any individual who is receiving a payment under a State

plan for old-age assistance approved under section 2, a State

program funded under part B that provides cash payments

for foster care, or the supplemental security income program

under title XVI, then the State shall not disregard the payment

in determining the amount of assistance to be provided under

the State program funded under this part, from funds provided

by the Federal Government, to the family of which the individual is a member.

‘‘(b) ALIENS.—For special rules relating to the treatment of

aliens, see section 402 of the Personal Responsibility and Work

Opportunity Act of 1995.

‘‘SEC. 409. PENALTIES.

‘‘(a) IN GENERAL.—Subject to this section: ‘‘(1) USE OF GRANT IN VIOLATION OF THIS PART.— ‘‘(A) GENERAL PENALTY.—If an audit conducted under

chapter 75 of title 31, United States Code, finds that an

amount paid to a State under section 403 for a fiscal

year has been used in violation of this part, the Secretary

shall reduce the grant payable to the State under section

403(a)(1) for the immediately succeeding fiscal year quarter

by the amount so used.

‘‘(B) ENHANCED PENALTY FOR INTENTIONAL VIOLATIONS.—If the State does not prove to the satisfaction of

the Secretary that the State did not intend to use the

amount in violation of this part, the Secretary shall further

reduce the grant payable to the State under section

403(a)(1) for the immediately succeeding fiscal year quarter

by an amount equal to 5 percent of the State family assistance grant.

‘‘(2) FAILURE TO SUBMIT REQUIRED REPORT.—

‘‘(A) IN GENERAL.—If the Secretary determines that

a State has not, within 1 month after the end of a fiscal

quarter, submitted the report required by section 411(a)
H. R. 4—30

for the quarter year, the Secretary shall reduce the grant

payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 4

percent of the State family assistance grant.

‘‘(B) RESCISSION OF PENALTY.—The Secretary shall

rescind a penalty imposed on a State under subparagraph

(A) with respect to a report for a fiscal quarter if the

State submits the report before the end of the immediately

succeeding fiscal quarter.

‘‘(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES.—

‘‘(A) IN GENERAL.—If the Secretary determines that

a State to which a grant is made under section 403 for

a fiscal year has failed to comply with section 407(a) for

the fiscal year, the Secretary shall reduce the grant payable

to the State under section 403(a)(1) for the immediately

succeeding fiscal year by an amount equal to not more

than 5 percent of the State family assistance grant.

‘‘(B) PENALTY BASED ON SEVERITY OF FAILURE.—The

Secretary shall impose reductions under subparagraph (A)

based on the degree of noncompliance.

‘‘(4) FAILURE TO PARTICIPATE IN THE INCOME AND ELIGIBILITY VERIFICATION SYSTEM.—If the Secretary determines that

a State program funded under this part is not participating

during a fiscal year in the income and eligibility verification

system required by section 1137, the Secretary shall reduce

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

immediately succeeding fiscal year by an amount equal to not

more than 2 percent of the State family assistance grant. ‘‘(5) FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT

AND CHILD SUPPORT ENFORCEMENT REQUIREMENTS UNDER PART

D.—Notwithstanding any other provision of this Act, if the

Secretary determines that the State agency that administers

a program funded under this part does not enforce the penalties

requested by the agency administering part D against recipients

of assistance under the State program who fail to cooperate

in establishing paternity in accordance with such part, the

Secretary shall reduce the grant payable to the State under

section 403(a)(1) for the immediately succeeding fiscal year

(without regard to this section) by not more than 5 percent. ‘‘(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR

STATE WELFARE PROGRAMS.—If the Secretary determines that

a State has failed to repay any amount borrowed from the

Federal Loan Fund for State Welfare Programs established

under section 406 within the period of maturity applicable

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

shall reduce the grant payable to the State under section

403(a)(1) for the immediately succeeding fiscal year quarter

(without regard to this section) by the outstanding loan amount,

plus the interest owed on the outstanding amount. The Secretary shall not forgive any outstanding loan amount or interest

owed on the outstanding amount.

‘‘(7) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL

OF HISTORIC EFFORT.—

‘‘(A) IN GENERAL.—The Secretary shall reduce the grant

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

1997, 1998, 1999, 2000, or 2001 by the amount (if any)

by which qualified State expenditures for the then imme-
H. R. 4—31

diately preceding fiscal year is less than the applicable

percentage of historic State expenditures with respect to

the fiscal year.

‘‘(B) DEFINITIONS.—As used in this paragraph:

‘‘(i) QUALIFIED STATE EXPENDITURES.—

‘‘(I) IN GENERAL.—The term ‘qualified State

expenditures’ means, with respect to a State and

a fiscal year, the total expenditures by the State

during the fiscal year, under all State programs,

for any of the following with respect to eligible

families:

‘‘(aa) Cash assistance.

‘‘(bb) Child care assistance.

‘‘(cc) Educational activities designed to

increase self-sufficiency, job training, and

work.

‘‘(dd) Administrative costs.

‘‘(ee) Any other use of funds allowable

under section 404(a)(1).

‘‘(II) EXCLUSION OF TRANSFERS FROM OTHER

STATE AND LOCAL PROGRAMS.—Such term does not

include funding supplanted by transfers from other

State and local programs.

‘‘(III) ELIGIBLE FAMILIES.—As used in

subclause (I), the term ‘eligible families’ means

families eligible for assistance under the State program funded under this part, and families who

would be eligible for such assistance but for the

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

of this Act or section 402 of the Personal Responsibility and Work Opportunity Act of 1995.

‘‘(ii) APPLICABLE PERCENTAGE.—The term

‘applicable percentage’ means— ‘‘(I) for fiscal year 1996, 75 percent; and

‘‘(II) for fiscal years 1997, 1998, 1999, and 2000, 75 percent reduced (if appropriate) in accordance with subparagraph (C)(iii).

‘‘(iii) HISTORIC STATE EXPENDITURES.—The term

‘historic State expenditures’ means, with respect to

a State and a fiscal year specified in subparagraph

(A), the lesser of—

‘‘(I) the expenditures by the State under parts A and F (as in effect during fiscal year 1994)

for fiscal year 1994; or ‘‘(II) the amount which bears the same ratio

to the amount described in subclause (I) as—

‘‘(aa) the State family assistance grant for

the fiscal year immediately preceding the fiscal year specified in subparagraph (A), plus

the total amount required to be paid to the

State under former section 403 for fiscal year

1994 with respect to amounts expended by

the State for child care under subsection (g)

or (i) of section 402 (as in effect during fiscal

year 1994); bears to

‘‘(bb) the total amount required to be paid

to the State under former section 403 (as in
H. R. 4—32

effect during fiscal year 1994) for fiscal year

1994.

Such term does not include any expenditures under

the State plan approved under part A (as so in effect)

on behalf of individuals covered by a tribal family

assistance plan approved under section 412, as determined by the Secretary.

‘‘(iv) EXPENDITURES BY THE STATE.—The term

‘expenditures by the State’ does not include—

‘‘(I) any expenditures from amounts made

available by the Federal Government;

‘‘(II) State funds expended for the medicaid

program under title XIX; or

‘‘(III) any State funds which are used to match

Federal funds or are expended as a condition of

receiving Federal funds under Federal programs

other than under this title.

‘‘(C) APPLICABLE PERCENTAGE REDUCED FOR STATES

WITH BEST OR MOST IMPROVED PERFORMANCE IN CERTAIN

AREAS.—

‘‘(i) SCORING OF STATE PERFORMANCE.—Beginning

with fiscal year 1997, the Secretary shall assign to

each State a score that represents the performance

of the State for the fiscal year in each category

described in clause (ii).

‘‘(ii) CATEGORIES.—The categories described in this

clause are the following:

‘‘(I) Increasing the number of families that

received assistance under a State program funded

under this part in the fiscal year, and that, during

the fiscal year, become ineligible for such assistance as a result of unsubsidized employment. ‘‘(II) Reducing the percentage of families that,

within 18 months after becoming ineligible for

assistance under the State program funded under

this part, become eligible for such assistance. ‘‘(III) Increasing the average earnings of families that receive assistance under this part.

‘‘(IV) Reducing the percentage of children in

the State that receive assistance under the State

program funded under this part.

‘‘(iii) REDUCTION OF MAINTENANCE OF EFFORT

THRESHOLD.— ‘‘(I) REDUCTION FOR STATES WITH 5 GREATEST

SCORES IN EACH CATEGORY OF PERFORMANCE.—The

applicable percentage for a State for a fiscal year

shall be reduced by 2 percentage points, with

respect to each category described in clause (ii)

for which the score assigned to the State under

clause (i) for the immediately preceding fiscal year

is 1 of the 5 highest scores so assigned to States.

‘‘(II) REDUCTION FOR STATES WITH 5 GREATEST

IMPROVEMENT IN SCORES IN EACH CATEGORY OF

PERFORMANCE.—The applicable percentage for a

State for a fiscal year shall be reduced by 2

percentage points for a State for a fiscal year,

with respect to each category described in clause
H. R. 4—33

(ii) for which the difference between the score

assigned to the State under clause (i) for the immediately preceding fiscal year and the score so

assigned to the State for the 2nd preceding fiscal

year is 1 of the 5 greatest such differences.

‘‘(III) LIMITATION ON REDUCTION.—The

applicable percentage for a State for a fiscal year

may not be reduced by more than 8 percentage

points pursuant to this clause.

‘‘(8) SUBSTANTIAL NONCOMPLIANCE OF STATE CHILD SUPPORT

ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D.—

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

part D is found as a result of a review conducted under

section 452(a)(4) not to have complied substantially with

the requirements of such part for any quarter, and the

Secretary determines that the program is not complying

substantially with such requirements at the time the finding is made, the Secretary shall reduce the grant payable

to the State under section 403(a)(1) for the quarter and

each subsequent quarter that ends before the 1st quarter

throughout which the program is found not to be in

substantial compliance with such requirements by—

‘‘(i) not less than 1 nor more than 2 percent;

‘‘(ii) not less than 2 nor more than 3 percent,

if the finding is the 2nd consecutive such finding made

as a result of such a review; or

‘‘(iii) not less than 3 nor more than 5 percent,

if the finding is the 3rd or a subsequent consecutive

such finding made as a result of such a review.

‘‘(B) DISREGARD OF NONCOMPLIANCE WHICH IS OF A

TECHNICAL NATURE.—For purposes of subparagraph (A) and section 452(a)(4), a State which is not in full compliance

with the requirements of this part shall be determined

to be in substantial compliance with such requirements

only if the Secretary determines that any noncompliance

with such requirements is of a technical nature which

does not adversely affect the performance of the State’s

program operated under part D.

‘‘(9) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTIN- GENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.— If, at the end of any fiscal year during which amounts from

the Contingency Fund for State Welfare Programs have been

paid to a State, the Secretary finds that the State has failed,

during the fiscal year, to expend under the State program

funded under this part an amount equal to at least 100 percent

of the level of historic State expenditures (as defined in paragraph (7)(B)(iii) of this subsection) with respect to the fiscal

year, the Secretary shall reduce the grant payable to the State

under section 403(a)(1) for the immediately succeeding fiscal

year by the total of the amounts so paid to the State.

‘‘(10) FAILURE TO EXPEND ADDITIONAL STATE FUNDS TO

REPLACE GRANT REDUCTIONS.—If the grant payable to a State

under section 403(a)(1) for a fiscal year is reduced by reason

of this subsection, the State shall, during the immediately

succeeding fiscal year, expend under the State program funded

under this part an amount equal to the total amount of such

reductions.
H. R. 4—34

‘‘(b) REASONABLE CAUSE EXCEPTION.—

‘‘(1) IN GENERAL.—The Secretary may not impose a penalty

on a State under subsection (a) with respect to a requirement

if the Secretary determines that the State has reasonable cause

for failing to comply with the requirement.

‘‘(2) EXCEPTION.—Paragraph (1) of this subsection shall

not apply to any penalty under subsection (a)(7).

‘‘(c) CORRECTIVE COMPLIANCE PLAN.—

‘‘(1) IN GENERAL.—

‘‘(A) NOTIFICATION OF VIOLATION.—Before imposing a

penalty against a State under subsection (a) with respect

to a violation of this part, the Secretary shall notify the

State of the violation and allow the State the opportunity

to enter into a corrective compliance plan in accordance

with this subsection which outlines how the State will

correct the violation and how the State will insure continuing compliance with this part.

‘‘(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLIANCE PLAN.—During the 60-day period that begins on the

date the State receives a notice provided under subparagraph (A) with respect to a violation, the State may submit

to the Federal Government a corrective compliance plan

to correct the violation.

‘‘(C) CONSULTATION ABOUT MODIFICATIONS.—During

the 60-day period that begins with the date the Secretary

receives a corrective compliance plan submitted by a State

in accordance with subparagraph (B), the Secretary may

consult with the State on modifications to the plan.

‘‘(D) ACCEPTANCE OF PLAN.— A corrective compliance

plan submitted by a State in accordance with subparagraph

(B) is deemed to be accepted by the Secretary if the Secretary does not accept or reject the plan during 60-day

period that begins on the date the plan is submitted.

‘‘(2) EFFECT OF CORRECTING VIOLATION.—The Secretary

may not impose any penalty under subsection (a) with respect

to any violation covered by a State corrective compliance plan

accepted by the Secretary if the State corrects the violation

pursuant to the plan.

‘‘(3) EFFECT OF FAILING TO CORRECT VIOLATION.—The Secretary shall assess some or all of a penalty imposed on a

State under subsection (a) with respect to a violation if the

State does not, in a timely manner, correct the violation pursuant to a State corrective compliance plan accepted by the Secretary.

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

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

subsection (a), the Secretary shall not reduce any quarterly

payment to a State by more than 25 percent.

‘‘(2) CARRYFORWARD OF UNRECOVERED PENALTIES.—To the

extent that paragraph (1) of this subsection prevents the Secretary from recovering during a fiscal year the full amount

of penalties imposed on a State under subsection (a) of this

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

remaining amount of such penalties to the grant payable to

the State under section 403(a)(1) for the immediately succeeding

fiscal year.
H. R. 4—35

‘‘SEC. 410. APPEAL OF ADVERSE DECISION.

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

takes any adverse action under this part with respect to a State,

the Secretary shall notify the chief executive officer of the State

of the adverse action, including any action with respect to the

State plan submitted under section 402 or the imposition of a

penalty under section 409. ‘‘(b) ADMINISTRATIVE REVIEW.— ‘‘(1) IN GENERAL.—Within 60 days after the date a State receives notice under subsection (a) of an adverse action, the

State may appeal the action, in whole or in part, to the Departmental Appeals Board established in the Department of Health

and Human Services (in this section referred to as the ‘Board’)

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

appeal filed by a State under paragraph (1) on the basis of

such documentation as the State may submit and as the Board

may require to support the final decision of the Board. In

deciding whether to uphold an adverse action or any portion

of such an action, the Board shall conduct a thorough review

of the issues and take into account all relevant evidence. The

Board shall make a final determination with respect to an

appeal filed under paragraph (1) not less than 60 days after

the date the appeal is filed.

‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.— ‘‘(1) IN GENERAL.—Within 90 days after the date of a final

decision by the Board under this section with respect to an

adverse action taken against a State, the State may obtain

judicial review of the final decision (and the findings incorporated into the final decision) by filing an action in—

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

judicial district in which the principal or headquarters

office of the State agency is located; or

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

of Columbia.

‘‘(2) PROCEDURAL RULES.—The district court in which an

action is filed under paragraph (1) shall review the final decision of the Board on the record established in the administrative

proceeding, in accordance with the standards of review prescribed by subparagraphs (A) through (E) of section 706(2)

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

basis of the documents and supporting data submitted to the

Board.

‘‘SEC. 411. DATA COLLECTION AND REPORTING.

‘‘(a) QUARTERLY REPORTS BY STATES.—

‘‘(1) GENERAL REPORTING REQUIREMENT.—

‘‘(A) CONTENTS OF REPORT.—Beginning July 1, 1996,

each State shall collect on a monthly basis, and report

to the Secretary on a quarterly basis, the following

disaggregated case record information on the families

receiving assistance under the State program funded under

this part:

‘‘(i) The county of residence of the family.

‘‘(ii) Whether a child receiving such assistance or

an adult in the family is disabled.

‘‘(iii) The ages of the members of such families.
H. R. 4—36

‘‘(iv) The number of individuals in the family, and

the relation of each family member to the youngest

child in the family.

‘‘(v) The employment status and earnings of the

employed adult in the family.

‘‘(vi) The marital status of the adults in the family,

including whether such adults have never married,

are widowed, or are divorced.

‘‘(vii) The race and educational status of each adult

in the family.

‘‘(viii) The race and educational status of each

child in the family.

‘‘(ix) Whether the family received subsidized housing, medical assistance under the State plan approved

under title XIX, food stamps, or subsidized child care,

and if the latter 2, the amount received.

‘‘(x) The number of months that the family has

received each type of assistance under the program.

‘‘(xi) If the adults participated in, and the number

of hours per week of participation in, the following

activities:

‘‘(I) Education.

‘‘(II) Subsidized private sector employment.

‘‘(III) Unsubsidized employment.

‘‘(IV) Public sector employment, work experience, or community service.

‘‘(V) Job search.

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

‘‘(VII) Vocational education.

‘‘(xii) Information necessary to calculate participation rates under section 407.

‘‘(xiii) The type and amount of assistance received

under the program, including the amount of and reason

for any reduction of assistance (including sanctions). ‘‘(xiv) From a sample of closed cases, whether the

family left the program, and if so, whether the family

left due to—

‘‘(I) employment;

‘‘(II) marriage;

‘‘(III) the prohibition set forth in section

408(a)(8);

‘‘(IV) sanction; or

‘‘(V) State policy. ‘‘(xv) Any amount of unearned income received

by any member of the family.

‘‘(xvi) The citizenship of the members of the family.

‘‘(B) USE OF ESTIMATES.—

‘‘(i) AUTHORITY.—A State may comply with

subparagraph (A) by submitting an estimate which

is obtained through the use of scientifically acceptable

sampling methods approved by the Secretary.

‘‘(ii) SAMPLING AND OTHER METHODS.—The Secretary shall provide the States with such case sampling

plans and data collection procedures as the Secretary

deems necessary to produce statistically valid estimates of the performance of State programs funded

under this part. The Secretary may develop and imple-
H. R. 4—37

ment procedures for verifying the quality of data

submitted by the States.

‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The report required by paragraph (1) for a fiscal quarter shall include a statement of

the percentage of the funds paid to the State under this part

for the quarter that are used to cover administrative costs

or overhead.

‘‘(3) REPORT ON STATE EXPENDITURES ON PROGRAMS FOR

NEEDY FAMILIES.—The report required by paragraph (1) for

a fiscal quarter shall include a statement of the total amount

expended by the State during the quarter on programs for

needy families.

‘‘(4) REPORT ON NONCUSTODIAL PARENTS PARTICIPATING IN

WORK ACTIVITIES.—The report required by paragraph (1) for

a fiscal quarter shall include the number of noncustodial parents in the State who participated in work activities (as defined

in section 407(d)) during the quarter.

‘‘(5) REPORT ON TRANSITIONAL SERVICES.—The report

required by paragraph (1) for a fiscal quarter shall include

the total amount expended by the State during the quarter

to provide transitional services to a family that has ceased

to receive assistance under this part because of employment,

along with a description of such services.

‘‘(6) REGULATIONS.—The Secretary shall prescribe such

regulations as may be necessary to define the data elements

with respect to which reports are required by this subsection.

‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE SECRETARY.— Not later than 6 months after the end of fiscal year 1997, and

each fiscal year thereafter, the Secretary shall transmit to the

Congress a report describing— ‘‘(1) whether the States are meeting— ‘‘(A) the participation rates described in section 407(a);

and

‘‘(B) the objectives of— ‘‘(i) increasing employment and earnings of needy

families, and child support collections; and

‘‘(ii) decreasing out-of-wedlock pregnancies and

child poverty; ‘‘(2) the demographic and financial characteristics of families applying for assistance, families receiving assistance, and

families that become ineligible to receive assistance; ‘‘(3) the characteristics of each State program funded under

this part; and

‘‘(4) the trends in employment and earnings of needy families with minor children living at home.

‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

‘‘(a) GRANTS FOR INDIAN TRIBES.—

‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—

‘‘(A) IN GENERAL.—For each of fiscal years 1997, 1998,

1999, and 2000, the Secretary shall pay to each Indian

tribe that has an approved tribal family assistance plan

a tribal family assistance grant for the fiscal year in an

amount equal to the amount determined under subparagraph (B), and shall reduce the grant payable under section

403(a)(1) to any State in which lies the service area or
H. R. 4—38

areas of the Indian tribe by that portion of the amount

so determined that is attributable to expenditures by the

State.

‘‘(B) AMOUNT DETERMINED.—

‘‘(i) IN GENERAL.—The amount determined under

this subparagraph is an amount equal to the total

amount of the Federal payments to a State or States

under section 403 (as in effect during such fiscal year)

for fiscal year 1994 attributable to expenditures (other

than child care expenditures) by the State or States

under parts A and F (as so in effect) for fiscal year

1994 for Indian families residing in the service area

or areas identified by the Indian tribe pursuant to

subsection (b)(1)(C) of this section.

‘‘(ii) USE OF STATE SUBMITTED DATA.—

‘‘(I) IN GENERAL.—The Secretary shall use

State submitted data to make each determination

under clause (i).

‘‘(II) DISAGREEMENT WITH DETERMINATION.—

If an Indian tribe or tribal organization disagrees

with State submitted data described under

subclause (I), the Indian tribe or tribal organization may submit to the Secretary such additional

information as may be relevant to making the

determination under clause (i) and the Secretary

may consider such information before making such

determination.

‘‘(2) GRANTS FOR INDIAN TRIBES THAT RECEIVED JOBS

FUNDS.—‘‘(A) IN GENERAL.—The Secretary shall pay to each

eligible Indian tribe for each of fiscal years 1996, 1997,

1998, 1999, and 2000 a grant in an amount equal to the

amount received by the Indian tribe in fiscal year 1994

under section 482(i) (as in effect during fiscal year 1994). ‘‘(B) ELIGIBLE INDIAN TRIBE.—For purposes of subparagraph (A), the term ‘eligible Indian tribe’ means an Indian

tribe or Alaska Native organization that conducted a job

opportunities and basic skills training program in fiscal

year 1995 under section 482(i) (as in effect during fiscal

year 1995). ‘‘(C) USE OF GRANT.—Each Indian tribe to which a

grant is made under this paragraph shall use the grant

for the purpose of operating a program to make work

activities available to members of the Indian tribe.

‘‘(D) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there

are appropriated $7,638,474 for each fiscal year specified

in subparagraph (A) for grants under subparagraph (A).

‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—

‘‘(1) IN GENERAL.—Any Indian tribe that desires to receive

a tribal family assistance grant shall submit to the Secretary

a 3-year tribal family assistance plan that—

‘‘(A) outlines the Indian tribe’s approach to providing

welfare-related services for the 3-year period, consistent

with this section;

‘‘(B) specifies whether the welfare-related services provided under the plan will be provided by the Indian tribe
H. R. 4—39

or through agreements, contracts, or compacts with intertribal consortia, States, or other entities;

‘‘(C) identifies the population and service area or areas

to be served by such plan;

‘‘(D) provides that a family receiving assistance under

the plan may not receive duplicative assistance from other

State or tribal programs funded under this part;

‘‘(E) identifies the employment opportunities in or near

the service area or areas of the Indian tribe and the manner

in which the Indian tribe will cooperate and participate

in enhancing such opportunities for recipients of assistance

under the plan consistent with any applicable State standards; and

‘‘(F) applies the fiscal accountability provisions of section 5(f)(1) of the Indian Self-Determination and Education

Assistance Act (25 U.S.C. 450c(f)(1)), relating to the submission of a single-agency audit report required by chapter

75 of title 31, United States Code.

‘‘(2) APPROVAL.—The Secretary shall approve each tribal

family assistance plan submitted in accordance with paragraph

(1).

‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this section shall

preclude the development and submission of a single tribal

family assistance plan by the participating Indian tribes of

an intertribal consortium.

‘‘(c) MINIMUM WORK PARTICIPATION REQUIREMENTS AND TIME

LIMITS.—The Secretary, with the participation of Indian tribes,

shall establish for each Indian tribe receiving a grant under this

section minimum work participation requirements, appropriate time

limits for receipt of welfare-related services under the grant, and

penalties against individuals—

‘‘(1) consistent with the purposes of this section;

‘‘(2) consistent with the economic conditions and resources

available to each tribe; and

‘‘(3) similar to comparable provisions in section 407(d).

‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this section shall

preclude an Indian tribe from seeking emergency assistance from

any Federal loan program or emergency fund.

‘‘(e) ACCOUNTABILITY.—Nothing in this section shall be construed to limit the ability of the Secretary to maintain program

funding accountability consistent with—

‘‘(1) generally accepted accounting principles; and

‘‘(2) the requirements of the Indian Self-Determination and

Education Assistance Act (25 U.S.C. 450 et seq.).

‘‘(f) PENALTIES.—

‘‘(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall

apply to an Indian tribe with an approved tribal assistance

plan in the same manner as such subsections apply to a State.

‘‘(2) Section 409(a)(3) shall apply to an Indian tribe with

an approved tribal assistance plan by substituting ‘meet minimum work participation requirements established under section

412(c)’ for ‘comply with section 407(a)’.

‘‘(g) DATA COLLECTION AND REPORTING.—Section 411 shall

apply to an Indian tribe with an approved tribal family assistance

plan.

‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
H. R. 4—40

‘‘(1) IN GENERAL.—Notwithstanding any other provision of

this section, and except as provided in paragraph (2), an Indian

tribe in the State of Alaska that receives a tribal family assistance grant under this section shall use the grant to operate

a program in accordance with requirements comparable to the

requirements applicable to the program of the State of Alaska

funded under this part. Comparability of programs shall be

established on the basis of program criteria developed by the

Secretary in consultation with the State of Alaska and such

Indian tribes.

‘‘(2) WAIVER.—An Indian tribe described in paragraph (1)

may apply to the appropriate State authority to receive a waiver

of the requirement of paragraph (1).

‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

‘‘(a) RESEARCH.—The Secretary shall conduct research on the

benefits, effects, and costs of operating different State programs

funded under this part, including time limits relating to eligibility

for assistance. The research shall include studies on the effects

of different programs and the operation of such programs on welfare

dependency, illegitimacy, teen pregnancy, employment rates, child

well-being, and any other area the Secretary deems appropriate.

The Secretary shall also conduct research on the costs and benefits

of State activities under section 409.

‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE

APPROACHES TO REDUCING WELFARE DEPENDENCY AND INCREASING

CHILD WELL-BEING.—

‘‘(1) IN GENERAL.—The Secretary may assist States in developing, and shall evaluate, innovative approaches for reducing

welfare dependency and increasing the well-being of minor

children living at home with respect to recipients of assistance

under programs funded under this part. The Secretary may

provide funds for training and technical assistance to carry

out the approaches developed pursuant to this paragraph.

‘‘(2) EVALUATIONS.—In performing the evaluations under

paragraph (1), the Secretary shall, to the maximum extent

feasible, use random assignment as an evaluation methodology.

‘‘(c) DISSEMINATION OF INFORMATION.—The Secretary shall

develop innovative methods of disseminating information on any

research, evaluations, and studies conducted under this section,

including the facilitation of the sharing of information and best

practices among States and localities through the use of computers

and other technologies.

‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF MOST AND

LEAST SUCCESSFUL WORK PROGRAMS.—

‘‘(1) ANNUAL RANKING OF STATES.—The Secretary shall rank

annually the States to which grants are paid under section

403 in the order of their success in placing recipients of assistance under the State program funded under this part into

long-term private sector jobs, reducing the overall welfare caseload, and, when a practicable method for calculating this

information becomes available, diverting individuals from formally applying to the State program and receiving assistance.

In ranking States under this subsection, the Secretary shall

take into account the average number of minor children living

at home in families in the State that have incomes below
H. R. 4—41

the poverty line and the amount of funding provided each

State for such families.

‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUCCESSFUL WORK

PROGRAMS.—The Secretary shall review the programs of the

3 States most recently ranked highest under paragraph (1)

and the 3 States most recently ranked lowest under paragraph

(1) that provide parents with work experience, assistance in

finding employment, and other work preparation activities and

support services to enable the families of such parents to leave

the program and become self-sufficient.

‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

‘‘(1) ANNUAL RANKING OF STATES.—

‘‘(A) IN GENERAL.—The Secretary shall annually rank

States to which grants are made under section 403 based

on the following ranking factors:

‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RATIOS.—The ratio

represented by—

‘‘(I) the total number of out-of-wedlock births

in families receiving assistance under the State

program under this part in the State for the most

recent fiscal year for which information is available; over

‘‘(II) the total number of births in families

receiving assistance under the State program

under this part in the State for such year.

‘‘(ii) NET CHANGES IN THE OUT-OF-WEDLOCK

RATIO.—The difference between the ratio described in

subparagraph (A)(i) with respect to a State for the

most recent fiscal year for which such information

is available and the ratio with respect to the State

for the immediately preceding year.

‘‘(2) ANNUAL REVIEW.—The Secretary shall review the programs of the 5 States most recently ranked highest under

paragraph (1) and the 5 States most recently ranked the lowest

under paragraph (1).

‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall be eligible

to receive funding to evaluate the State program funded under

this part if—

‘‘(1) the State submits a proposal to the Secretary for

the evaluation;

‘‘(2) the Secretary determines that the design and approach

of the evaluation is rigorous and is likely to yield information

that is credible and will be useful to other States, and

‘‘(3) unless otherwise waived by the Secretary, the State

contributes to the cost of the evaluation, from non-Federal

sources, an amount equal to at least 10 percent of the cost

of the evaluation.

‘‘(g) FUNDING OF STUDIES AND DEMONSTRATIONS.—

‘‘(1) IN GENERAL.—Out of any money in the Treasury of

the United States not otherwise appropriated, there are appropriated $15,000,000 for each fiscal year specified in section

403(a)(1) for the purpose of paying—

‘‘(A) the cost of conducting the research described in

subsection (a);
H. R. 4—42

‘‘(B) the cost of developing and evaluating innovative approaches for reducing welfare dependency and increasing

the well-being of minor children under subsection (b); ‘‘(C) the Federal share of any State-initiated study approved under subsection (f); and ‘‘(D) an amount determined by the Secretary to be necessary to operate and evaluate demonstration projects,

relating to this part, that are in effect or approved under

section 1115 as of September 30, 1995, and are continued

after such date.

‘‘(2) ALLOCATION.—Of the amount appropriated under para- graph (1) for a fiscal year— ‘‘(A) 50 percent shall be allocated for the purposes described in subparagraphs (A) and (B) of paragraph (1),

and

‘‘(B) 50 percent shall be allocated for the purposes described in subparagraphs (C) and (D) of paragraph (1).

‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.

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

the Survey of Income and Program Participation as necessary to

obtain such information as will enable interested persons to evaluate the impact of the amendments made by title I of the Personal

Responsibility and Work Opportunity Act of 1995 on a random

national sample of recipients of assistance under State programs

funded under this part and (as appropriate) other low income families, and in doing so, shall pay particular attention to the issues

of out-of-wedlock birth, welfare dependency, the beginning and end

of welfare spells, and the causes of repeat welfare spells. ‘‘(b) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999,

2000, 2001, and 2002 for payment to the Bureau of the Census

to carry out subsection (a).

‘‘SEC. 415. WAIVERS.

‘‘(a) CONTINUATION OF WAIVERS.— ‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACTMENT OF WEL- FARE REFORM.—Except as provided in paragraph (3), if any waiver granted to a State under section 1115 or otherwise

which relates to the provision of assistance under a State

plan under this part (as in effect on September 30, 1995)

is in effect as of the date of the enactment of the Personal

Responsibility and Work Opportunity Act of 1995, the amendments made by such Act shall not apply with respect to the

State before the expiration (determined without regard to any

extensions) of the waiver to the extent such amendments are

inconsistent with the waiver.

‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Except as provided

in paragraph (3), if any waiver granted to a State under section

1115 or otherwise which relates to the provision of assistance

under a State plan under this part (as in effect on September

30, 1995) is submitted to the Secretary before the date of

the enactment of the Personal Responsibility and Work Opportunity Act of 1995 and approved by the Secretary before the

effective date of this title, and the State demonstrates to the

satisfaction of the Secretary that the waiver will not result

in Federal expenditures under title IV of this Act (as in effect
H. R. 4—43

without regard to the amendments made by the Personal

Responsibility and Work Opportunity Act of 1995) that are

greater than would occur in the absence of the waiver, such

amendments shall not apply with respect to the State before

the expiration (determined without regard to any extensions)

of the waiver to the extent such amendments are inconsistent

with the waiver.

‘‘(3) FINANCING LIMITATION.—Notwithstanding any other

provision of law, beginning with fiscal year 1996, a State operating under a waiver described in paragraph (1) shall be entitled

to payment under section 403 for the fiscal year, in lieu of

any other payment provided for in the waiver.

‘‘(b) STATE OPTION TO TERMINATE WAIVER.—

‘‘(1) IN GENERAL.—A State may terminate a waiver

described in subsection (a) before the expiration of the waiver.

‘‘(2) REPORT.—A State which terminates a waiver under

paragraph (1) shall submit a report to the Secretary summarizing the waiver and any available information concerning the

result or effect of the waiver.

‘‘(3) HOLD HARMLESS PROVISION.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, a State that, not later than the date described

in subparagraph (B), submits a written request to terminate a waiver described in subsection (a) shall be held

harmless for accrued cost neutrality liabilities incurred

under the waiver.

‘‘(B) DATE DESCRIBED.—The date described in this

subparagraph is the later of— ‘‘(i) January 1, 1996; or

‘‘(ii) 90 days following the adjournment of the first

regular session of the State legislature that begins

after the date of the enactment of the Personal Responsibility and Work Opportunity Act of 1995. ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT WAIVERS.— The Secretary shall encourage any State operating a waiver

described in subsection (a) to continue the waiver and to evaluate,

using random sampling and other characteristics of accepted scientific evaluations, the result or effect of the waiver.

‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A State may elect

to continue 1 or more individual waivers described in subsection

(a).

‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

‘‘The programs under this part and part D shall be administered

by an Assistant Secretary for Family Support within the Department of Health and Human Services, who shall be appointed by

the President, by and with the advice and consent of the Senate,

and who shall be in addition to any other Assistant Secretary

of Health and Human Services provided for by law.

‘‘SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

‘‘No officer or employee of the Federal Government may regulate

the conduct of States under this part or enforce any provision

of this part, except to the extent expressly provided in this part.

‘‘SEC. 418. DEFINITIONS.

‘‘As used in this part:
H. R. 4—44

‘‘(1) ADULT.—The term ‘adult’ means an individual who

is not a minor child.

‘‘(2) MINOR CHILD.—The term ‘minor child’ means an

individual who—

‘‘(A) has not attained 18 years of age; or

‘‘(B) has not attained 19 years of age and is a fulltime student in a secondary school (or in the equivalent

level of vocational or technical training).

‘‘(3) FISCAL YEAR.—The term ‘fiscal year’ means any 12-

month period ending on September 30 of a calendar year.

‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION.—

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

(B), the terms ‘Indian’, ‘Indian tribe’, and ‘tribal organization’ have the meaning given such terms by section 4

of the Indian Self-Determination and Education Assistance

Act (25 U.S.C. 450b).

‘‘(B) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—

The term ‘Indian tribe’ means, with respect to the State

of Alaska, only the Metlakatla Indian Community of the

Annette Islands Reserve and the following Alaska Native

regional nonprofit corporations:

‘‘(i) Arctic Slope Native Association.

‘‘(ii) Kawerak, Inc.

‘‘(iii) Maniilaq Association.

‘‘(iv) Association of Village Council Presidents.

‘‘(v) Tanana Chiefs Conference.

‘‘(vi) Cook Inlet Tribal Council.

‘‘(vii) Bristol Bay Native Association.

‘‘(viii) Aleutian and Pribilof Island Association.

‘‘(ix) Chugachmuit.

‘‘(x) Tlingit Haida Central Council.

‘‘(xi) Kodiak Area Native Association.

‘‘(xii) Copper River Native Association.

‘‘(5) STATE.—Except as otherwise specifically provided, the

term ‘State’ means the 50 States of the United States, the

District of Columbia, the Commonwealth of Puerto Rico, the

United States Virgin Islands, Guam, and American Samoa.’’.

SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE ORGANIZATIONS.

(a) IN GENERAL.—

(1) STATE OPTIONS.—A State may—

(A) administer and provide services under the programs described in subparagraphs (A) and (B)(i) of paragraph (2) through contracts with charitable, religious, or

private organizations; and

(B) provide beneficiaries of assistance under the programs described in subparagraphs (A) and (B)(ii) of paragraph (2) with certificates, vouchers, or other forms of

disbursement which are redeemable with such

organizations.

(2) PROGRAMS DESCRIBED.—The programs described in this

paragraph are the following programs:

(A) A State program funded under part A of title

IV of the Social Security Act (as amended by section 103

of this Act).
H. R. 4—45

(B) Any other program established or modified under

title I, II, or VI of this Act, that—

(i) permits contracts with organizations; or

(ii) permits certificates, vouchers, or other forms

of disbursement to be provided to beneficiaries, as a

means of providing assistance.

(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section

is to allow States to contract with religious organizations, or to

allow religious organizations to accept certificates, vouchers, or

other forms of disbursement under any program described in subsection (a)(2), on the same basis as any other nongovernmental

provider without impairing the religious character of such organizations, and without diminishing the religious freedom of beneficiaries

of assistance funded under such program.

(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.—

In the event a State exercises its authority under subsection (a),

religious organizations are eligible, on the same basis as any other

private organization, as contractors to provide assistance, or to

accept certificates, vouchers, or other forms of disbursement, under

any program described in subsection (a)(2) so long as the programs

are implemented consistent with the Establishment Clause of the

United States Constitution. Except as provided in subsection (k),

neither the Federal Government nor a State receiving funds under

such programs shall discriminate against an organization which

is or applies to be a contractor to provide assistance, or which

accepts certificates, vouchers, or other forms of disbursement, on

the basis that the organization has a religious character.

(d) RELIGIOUS CHARACTER AND FREEDOM.— (1) RELIGIOUS ORGANIZATIONS.—A religious organization with a contract described in subsection (a)(1)(A), or which

accepts certificates, vouchers, or other forms of disbursement

under subsection (a)(1)(B), shall retain its independence from

Federal, State, and local governments, including such organization’s control over the definition, development, practice, and

expression of its religious beliefs. (2) ADDITIONAL SAFEGUARDS.—Neither the Federal Government nor a State shall require a religious organization to— (A) alter its form of internal governance; or

(B) remove religious art, icons, scripture, or other

symbols;

in order to be eligible to contract to provide assistance, or

to accept certificates, vouchers, or other forms of disbursement,

funded under a program described in subsection (a)(2).

(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.— (1) IN GENERAL.—If an individual described in paragraph

(2) has an objection to the religious character of the organization

or institution from which the individual receives, or would

receive, assistance funded under any program described in subsection (a)(2), the State in which the individual resides shall

provide such individual (if otherwise eligible for such assistance) within a reasonable period of time after the date of

such objection with assistance from an alternative provider

that is accessible to the individual and the value of which

is not less than the value of the assistance which the individual

would have received from such organization.

(2) INDIVIDUAL DESCRIBED.—An individual described in this

paragraph is an individual who receives, applies for, or requests
H. R. 4—46

to apply for, assistance under a program described in subsection

(a)(2).

(f) EMPLOYMENT PRACTICES.—A religious organization’s exemption provided under section 702 of the Civil Rights Act of 1964

(42 U.S.C. 2000e–1a) regarding employment practices shall not

be affected by its participation in, or receipt of funds from, programs

described in subsection (a)(2).

(g) NONDISCRIMINATION AGAINST BENEFICIARIES.—Except as

otherwise provided in law, a religious organization shall not

discriminate against an individual in regard to rendering assistance

funded under any program described in subsection (a)(2) on the

basis of religion, a religious belief, or refusal to actively participate

in a religious practice.

(h) FISCAL ACCOUNTABILITY.—

(1) IN GENERAL.—Except as provided in paragraph (2), any

religious organization contracting to provide assistance funded

under any program described in subsection (a)(2) shall be subject to the same regulations as other contractors to account

in accord with generally accepted auditing principles for the

use of such funds provided under such programs.

(2) LIMITED AUDIT.—If such organization segregates Federal

funds provided under such programs into separate accounts,

then only the financial assistance provided with such funds

shall be subject to audit.

(i) COMPLIANCE.—Any party which seeks to enforce its rights

under this section may assert a civil action for injunctive relief

exclusively in an appropriate State court against the entity or

agency that allegedly commits such violation.

(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.—

No funds provided directly to institutions or organizations to provide

services and administer programs under subsection (a)(1)(A) shall

be expended for sectarian worship, instruction, or proselytization.

(k) PREEMPTION.—Nothing in this section shall be construed

to preempt any provision of a State constitution or State statute

that prohibits or restricts the expenditure of State funds in or

by religious organizations.

SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

CAREGIVERS FOR THEIR GRANDCHILDREN.

(a) IN GENERAL.—Not later than 90 days after the date of

the enactment of this Act, the Secretary of Commerce, in carrying

out section 141 of title 13, United States Code, shall expand the

data collection efforts of the Bureau of the Census (in this section

referred to as the ‘‘Bureau’’) to enable the Bureau to collect statistically significant data, in connection with its decennial census

and its mid-decade census, concerning the growing trend of grandparents who are the primary caregivers for their grandchildren.

(b) EXPANDED CENSUS QUESTION.—In carrying out subsection

(a), the Secretary of Commerce shall expand the Bureau’s census

question that details households which include both grandparents

and their grandchildren. The expanded question shall be formulated

to distinguish between the following households:

(1) A household in which a grandparent temporarily provides a home for a grandchild for a period of weeks or months

during periods of parental distress.
H. R. 4—47

(2) A household in which a grandparent provides a home for a grandchild and serves as the primary caregiver for the

grandchild.

SEC. 106. REPORT ON DATA PROCESSING.

(a) IN GENERAL.—Within 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services

shall prepare and submit to the Congress a report on— (1) the status of the automated data processing systems operated by the States to assist management in the administration of State programs under part A of title IV of the Social

Security Act (whether in effect before or after October 1, 1995);

and

(2) what would be required to establish a system capable of—

(A) tracking participants in public programs over time; and

(B) checking case records of the States to determine whether individuals are participating in public programs

of 2 or more States.

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

(a) should include—

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

systems of the States to establish a system with the capabilities

described in subsection (a)(2); and

(2) an estimate of the amount of time required to establish

such a system and of the cost of establishing such a system.

SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

(a) STUDY.—The Secretary shall, in cooperation with the States,

study and analyze outcomes measures for evaluating the success

of the States in moving individuals out of the welfare system

through employment as an alternative to the minimum participation

rates described in section 407 of the Social Security Act. The study

shall include a determination as to whether such alternative outcomes measures should be applied on a national or a State-byState basis and a preliminary assessment of the effects of section

409(a)(7)(C) of such Act.

(b) REPORT.—Not later than September 30, 1998, the Secretary

shall submit to the Committee on Finance of the Senate and the

Committee on Ways and Means of the House of Representatives

a report containing the findings of the study required by subsection

(a).

SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

(a) AMENDMENTS TO TITLE II.—

(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as

so redesignated by section 321(a)(9)(B) of the Social Security

Independence and Program Improvements Act of 1994, is

amended—

(A) by inserting ‘‘an agency administering a program

funded under part A of title IV or’’ before ‘‘an agency

operating’’; and (B) by striking ‘‘A or D of title IV of this Act’’ and

inserting ‘‘D of such title’’.

(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by

inserting ‘‘under a State program funded under’’ before ‘‘part

A of title IV’’.
H. R. 4—48

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

(1) Section 451 (42 U.S.C. 651) is amended by striking

‘‘aid’’ and inserting ‘‘assistance under a State program funded’’.

(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is

amended—

(A) by striking ‘‘aid to families with dependent children’’ and inserting ‘‘assistance under a State program

funded under part A’’;

(B) by striking ‘‘such aid’’ and inserting ‘‘such assistance’’; and

(C) by striking ‘‘under section 402(a)(26) or’’ and inserting ‘‘pursuant to section 408(a)(4) or under section’’.

(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is

amended—

(A) by striking ‘‘aid under a State plan approved’’ and

inserting ‘‘assistance under a State program funded’’; and

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

referred to in section 402(a)(26)(B)(ii)’’ and inserting ‘‘by

the State’’.

(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the

first sentence by striking ‘‘aid under the State plan approved

under part A’’ and inserting ‘‘assistance under the State program funded under part A’’.

(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is

amended by striking ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.

(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I))

is amended by striking ‘‘aid is being paid under the State’s

plan approved under part A or E’’ and inserting ‘‘assistance

is being provided under the State program funded under part

A’’.

(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended in the matter following clause (iii) by striking ‘‘aid was being

paid under the State’s plan approved under part A or E’’

and inserting ‘‘assistance was being provided under the State

program funded under part A’’. (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in the matter following subparagraph (B)— (A) by striking ‘‘who is a dependent child’’ and inserting

‘‘with respect to whom assistance is being provided under

the State program funded under part A’’; (B) by inserting ‘‘by the State agency administering

the State plan approved under this part’’ after ‘‘found’’;

and

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

‘‘with the State in establishing paternity’’.

(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking

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

408(a)(4)’’.

(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by

striking ‘‘aid under part A of this title’’ and inserting ‘‘assistance

under a State program funded under part A’’.

(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended—

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

‘‘pursuant to section 408(a)(4)’’; and

(B) by striking ‘‘; except that this paragraph shall

not apply to such payments for any month following the

first month in which the amount collected is sufficient
H. R. 4—49

to make such family ineligible for assistance under the

State plan approved under part A;’’ and inserting a comma.

(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended

by striking ‘‘aid under a State plan approved’’ and inserting

‘‘assistance under a State program funded’’.

(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by

striking ‘‘under section 402(a)(26)’’.

(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is

amended by striking ‘‘402(a)(26)’’ and inserting ‘‘408(a)(4)’’.

(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by

striking ‘‘aid’’ and inserting ‘‘assistance under a State program

funded’’.

(16) Section 469(a) (42 U.S.C. 669(a)) is amended—

(A) by striking ‘‘aid under plans approved’’ and inserting ‘‘assistance under State programs funded’’; and

(B) by striking ‘‘such aid’’ and inserting ‘‘such assistance’’.

(c) REPEAL OF PART F OF TITLE IV.—Part F of title IV (42

U.S.C. 681–687) is repealed.

(d) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42 U.S.C.

1202(a)(7)) is amended by striking ‘‘aid to families with dependent

children under the State plan approved under section 402 of this

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

part A of title IV’’.

(e) AMENDMENTS TO TITLE XI.—

(1) Section 1108 (42 U.S.C. 1308) is amended—

(A) by redesignating subsection (c) as subsection (g);

(B) by striking all that precedes subsection (c) and

inserting the following:

‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN

ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION ON

TOTAL PAYMENTS.

‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY.— Notwithstanding any other provision of this Act, the total amount

certified by the Secretary of Health and Human Services under

titles I, X, XIV, and XVI, under parts A and B of title IV, and

under subsection (b) of this section, for payment to any territory

for a fiscal year shall not exceed the ceiling amount for the territory

for the fiscal year. ‘‘(b) ENTITLEMENT TO MATCHING GRANT.— ‘‘(1) IN GENERAL.—Each territory shall be entitled to receive

from the Secretary for each fiscal year a grant in an amount

equal to 75 percent of the amount (if any) by which— ‘‘(A) the total expenditures of the territory during the

fiscal year under the territory programs funded under parts

A and B of title IV; exceeds

‘‘(B) the sum of—

‘‘(i) the total amount required to be paid to the

territory (other than with respect to child care) under

former section 403 (as in effect on September 30, 1995)

for fiscal year 1995, which shall be determined by

applying subparagraphs (C) and (D) of section 403(a)(1)

to the territory;

‘‘(ii) the total amount required to be paid to the

territory under former section 434 (as so in effect)

for fiscal year 1995; and
H. R. 4—50

‘‘(iii) the total amount expended by the territory

during fiscal year 1995 pursuant to parts A, B, and

F of title IV (as so in effect), other than for child

care.

‘‘(2) USE OF GRANT.—Any territory to which a grant is

made under paragraph (1) may expend the amount under any

program operated or funded under any provision of law specified

in subsection (a).

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

‘‘(1) TERRITORY.—The term ‘territory’ means Puerto Rico,

the Virgin Islands, Guam, and American Samoa.

‘‘(2) CEILING AMOUNT.—The term ‘ceiling amount’ means,

with respect to a territory and a fiscal year, the mandatory

ceiling amount with respect to the territory plus the discretionary ceiling amount with respect to the territory, reduced

for the fiscal year in accordance with subsection (f).

‘‘(3) MANDATORY CEILING AMOUNT.—The term ‘mandatory

ceiling amount’ means—

‘‘(A) $105,538,000 with respect to Puerto Rico;

‘‘(B) $4,902,000 with respect to Guam;

‘‘(C) $3,742,000 with respect to the Virgin Islands;

and

‘‘(D) $1,122,000 with respect to American Samoa.

‘‘(4) DISCRETIONARY CEILING AMOUNT.—The term ‘discretionary ceiling amount’ means, with respect to a territory and

a fiscal year, the total amount appropriated pursuant to subsection (d)(3) for the fiscal year for payment to the territory.

‘‘(5) TOTAL AMOUNT EXPENDED BY THE TERRITORY.—The

term ‘total amount expended by the territory’— ‘‘(A) does not include expenditures during the fiscal

year from amounts made available by the Federal Government; and

‘‘(B) when used with respect to fiscal year 1995, also

does not include—

‘‘(i) expenditures during fiscal year 1995 under subsection (g) or (i) of section 402 (as in effect on

September 30, 1995); or

‘‘(ii) any expenditures during fiscal year 1995 for which the territory (but for section 1108, as in effect

on September 30, 1995) would have received

reimbursement from the Federal Government.

‘‘(d) DISCRETIONARY GRANTS.— ‘‘(1) IN GENERAL.—The Secretary shall make a grant to

each territory for any fiscal year in the amount appropriated

pursuant to paragraph (3) for the fiscal year for payment to

the territory.

‘‘(2) USE OF GRANT.—Any territory to which a grant is

made under paragraph (1) may expend the amount under any

program operated or funded under any provision of law specified

in subsection (a).

‘‘(3) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—

For grants under paragraph (1), there are authorized to be

appropriated to the Secretary for each fiscal year—

‘‘(A) $7,951,000 for payment to Puerto Rico;

‘‘(B) $345,000 for payment to Guam;

‘‘(C) $275,000 for payment to the Virgin Islands; and

‘‘(D) $190,000 for payment to American Samoa.
H. R. 4—51

‘‘(e) AUTHORITY TO TRANSFER FUNDS AMONG PROGRAMS.—Notwithstanding any other provision of this Act, any territory to which

an amount is paid under any provision of law specified in subsection

(a) may use part or all of the amount to carry out any program

operated by the territory, or funded, under any other such provision

of law.

‘‘(f) MAINTENANCE OF EFFORT.—The ceiling amount with respect

to a territory shall be reduced for a fiscal year by an amount

equal to the amount (if any) by which—

‘‘(1) the total amount expended by the territory under all

programs of the territory operated pursuant to the provisions

of law specified in subsection (a) (as such provisions were

in effect for fiscal year 1995) for fiscal year 1995; exceeds

‘‘(2) the total amount expended by the territory under all

programs of the territory that are funded under the provisions

of law specified in subsection (a) for the fiscal year that immediately precedes the fiscal year referred to in the matter preceding paragraph (1).’’; and

(C) by striking subsections (d) and (e).

(2) Section 1109 (42 U.S.C. 1309) is amended by striking

‘‘or part A of title IV,’’.

(3) Section 1115 (42 U.S.C. 1315) is amended—

(A) in subsection (a)(2)—

(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

(ii) by striking ‘‘403,’’;

(iii) by striking the period at the end and inserting

‘‘, and’’; and

(iv) by adding at the end the following new

subparagraph: ‘‘(B) costs of such project which would not otherwise be

a permissible use of funds under part A of title IV and which

are not included as part of the costs of projects under section

1110, shall to the extent and for the period prescribed by

the Secretary, be regarded as a permissible use of funds under

such part.’’; and

(B) in subsection (c)(3), by striking ‘‘under the program

of aid to families with dependent children’’ and inserting

‘‘part A of such title’’.

(4) Section 1116 (42 U.S.C. 1316) is amended—

(A) in each of subsections (a)(1), (b), and (d), by striking

‘‘or part A of title IV,’’; and

(B) in subsection (a)(3), by striking ‘‘404,’’. (5) Section 1118 (42 U.S.C. 1318) is amended—

(A) by striking ‘‘403(a),’’;

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

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

Samoa, mean 75 per centum with respect to part A of

title IV’’.

(6) Section 1119 (42 U.S.C. 1319) is amended—

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

(B) by striking ‘‘403(a),’’.

(7) Section 1133(a) (42 U.S.C. 1320b–3(a)) is amended by

striking ‘‘or part A of title IV,’’.

(8) Section 1136 (42 U.S.C. 1320b–6) is repealed.

(9) Section 1137 (42 U.S.C. 1320b–7) is amended—

(A) in subsection (b), by striking paragraph (1) and

inserting the following:
H. R. 4—52

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

of this Act;’’; and

(B) in subsection (d)(1)(B)—

(i) by striking ‘‘In this subsection—’’ and all that

follows through ‘‘(ii) in’’ and inserting ‘‘In this subsection, in’’;

(ii) by redesignating subclauses (I), (II), and (III)

as clauses (i), (ii), and (iii); and

(iii) by moving such redesignated material 2 ems

to the left.

(f) AMENDMENT TO TITLE XIV.—Section 1402(a)(7) (42 U.S.C.

1352(a)(7)) is amended by striking ‘‘aid to families with dependent

children under the State plan approved under section 402 of this

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

part A of title IV’’.

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

TO THE TERRITORIES.—Section 1602(a)(11), as in effect without

regard to the amendment made by section 301 of the Social Security

Amendments of 1972 (42 U.S.C. 1382 note), is amended by striking

‘‘aid under the State plan approved’’ and inserting ‘‘assistance under

a State program funded’’.

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

TO THE STATES.—Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is

amended to read as follows: ‘‘(A) a State program funded under

part A of title IV,’’.

(i) AMENDMENT TO TITLE XIX.—Section 1902(j) (42 U.S.C.

1396a(j)) is amended by striking ‘‘1108(c)’’ and inserting ‘‘1108(g)’’.

SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF

1977 AND RELATED PROVISIONS.

(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)

is amended—

(1) in the second sentence of subsection (a), by striking

‘‘plan approved’’ and all that follows through ‘‘title IV of the

Social Security Act’’ and inserting ‘‘program funded under part

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

seq.)’’;

(2) in subsection (d)—

(A) in paragraph (5), by striking ‘‘assistance to families

with dependent children’’ and inserting ‘‘assistance under

a State program funded’’; and (B) by striking paragraph (13) and redesignating para- graphs (14), (15), and (16) as paragraphs (13), (14), and

(15), respectively;

(3) in subsection (j), by striking ‘‘plan approved under part

A of title IV of such Act (42 U.S.C. 601 et seq.)’’ and inserting

‘‘program funded under part A of title IV of the Act (42 U.S.C.

601 et seq.)’’; and

(4) by striking subsection (m).

(b) Section 6 of such Act (7 U.S.C. 2015) is amended—

(1) in subsection (c)(5), by striking ‘‘the State plan

approved’’ and inserting ‘‘the State program funded’’; and

(2) in subsection (e)(6), by striking ‘‘aid to families with

dependent children’’ and inserting ‘‘benefits under a State program funded’’.

(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended

by striking ‘‘State plans under the Aid to Families with Dependent
H. R. 4—53

Children Program under’’ and inserting ‘‘State programs funded

under part A of’’.

(d) Section 17 of such Act (7 U.S.C. 2026) is amended—

(1) in the first sentence of subsection (b)(1)(A), by striking

‘‘to aid to families with dependent children under part A of

title IV of the Social Security Act’’ and inserting ‘‘or are receiving assistance under a State program funded under part A

of title IV of the Social Security Act (42 U.S.C. 601 et seq.)’’;

and

(2) in subsection (b)(3), by adding at the end the following

new subparagraph:

‘‘(I) The Secretary may not grant a waiver under this

paragraph on or after October 1, 1995. Any reference in this

paragraph to a provision of title IV of the Social Security

Act shall be deemed to be a reference to such provision as

in effect on September 30, 1995.’’;

(e) Section 20 of such Act (7 U.S.C. 2029) is amended—

(1) in subsection (a)(2)(B) by striking ‘‘operating—’’ and

all that follows through ‘‘(ii) any other’’ and inserting ‘‘operating

any’’; and

(2) in subsection (b)—

(A) in paragraph (1)—

(i) by striking ‘‘(b)(1) A household’’ and inserting

‘‘(b) A household’’; and

(ii) in subparagraph (B), by striking ‘‘training program’’ and inserting ‘‘activity’’;

(B) by striking paragraph (2); and

(C) by redesignating subparagraphs (A) through (F) as paragraphs (1) through (6), respectively. (f) Section 5(h)(1) of the Agriculture and Consumer Protection Act of 1973 (Public Law 93–186; 7 U.S.C. 612c note) is amended

by striking ‘‘the program for aid to families with dependent children’’

and inserting ‘‘the State program funded’’. (g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is amended—

(1) in subsection (b)—

(A) in paragraph (2)(C)(ii)(II)— (i) by striking ‘‘program for aid to families with

dependent children’’ and inserting ‘‘State program

funded’’; and

(ii) by inserting before the period at the end the

following: ‘‘that the Secretary determines complies with

standards established by the Secretary that ensure

that the standards under the State program are comparable to or more restrictive than those in effect on

June 1, 1995’’; and

(B) in paragraph (6)—

(i) in subparagraph (A)(ii)—

(I) by striking ‘‘an AFDC assistance unit

(under the aid to families with dependent children

program authorized’’ and inserting ‘‘a family

(under the State program funded’’; and

(II) by striking ‘‘, in a State’’ and all that

follows through ‘‘9902(2)))’’ and inserting ‘‘that the

Secretary determines complies with standards

established by the Secretary that ensure that the

standards under the State program are comparable
H. R. 4—54

to or more restrictive than those in effect on June

1, 1995’’; and

(ii) in subparagraph (B), by striking ‘‘aid to families

with dependent children’’ and inserting ‘‘assistance

under the State program funded under part A of title

IV of the Social Security Act (42 U.S.C. 601 et seq.)

that the Secretary determines complies with standards

established by the Secretary that ensure that the

standards under the State program are comparable

to or more restrictive than those in effect on June

1, 1995’’; and

(2) in subsection (d)(2)(C)—

(A) by striking ‘‘program for aid to families with

dependent children’’ and inserting ‘‘State program funded’’;

and

(B) by inserting before the period at the end the following: ‘‘that the Secretary determines complies with standards established by the Secretary that ensure that the

standards under the State program are comparable to or

more restrictive than those in effect on June 1, 1995’’.

(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966

(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—

(1) by striking ‘‘program for aid to families with dependent

children established’’ and inserting ‘‘State program funded’’;

and

(2) by inserting before the semicolon the following: ‘‘that

the Secretary determines complies with standards established

by the Secretary that ensure that the standards under the

State program are comparable to or more restrictive than those

in effect on June 1, 1995’’.

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

(a) Subsection (b) of section 508 of the Unemployment Com- pensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–

566; 90 Stat. 2689) is amended to read as follows:

‘‘(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.—For purposes of section 455 of the Social Security Act, expenses incurred

to reimburse State employment offices for furnishing information

requested of such offices—

‘‘(1) pursuant to the third sentence of section 3(a) of the

Act entitled ‘An Act to provide for the establishment of a

national employment system and for cooperation with the

States in the promotion of such system, and for other purposes’,

approved June 6, 1933 (29 U.S.C. 49b(a)), or

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

of carrying a State plan for child support approved under

part D of title IV of the Social Security Act,

shall be considered to constitute expenses incurred in the administration of such State plan.’’.

(b) Section 9121 of the Omnibus Budget Reconciliation Act

of 1987 (42 U.S.C. 602 note) is repealed.

(c) Section 9122 of the Omnibus Budget Reconciliation Act

of 1987 (42 U.S.C. 602 note) is repealed.

(d) Section 221 of the Housing and Urban-Rural Recovery Act

of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC

of certain rental payments for federally assisted housing, is

repealed.
H. R. 4—55

(e) Section 159 of the Tax Equity and Fiscal Responsibility

Act of 1982 (42 U.S.C. 602 note) is repealed.

(f) Section 202(d) of the Social Security Amendments of 1967

(81 Stat. 882; 42 U.S.C. 602 note) is repealed.

(g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating

to demonstration projects to reduce number of AFDC families in

welfare hotels, is amended—

(1) in subsection (a), by striking ‘‘aid to families with

dependent children under a State plan approved’’ and inserting

‘‘assistance under a State program funded’’; and

(2) in subsection (c), by striking ‘‘aid to families with

dependent children in the State under a State plan approved’’

and inserting ‘‘assistance in the State under a State program

funded’’.

(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)

is amended—

(1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by striking ‘‘(Aid to Families with Dependent Children)’’; and

(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking

‘‘aid to families with dependent children under a State plan

approved’’ and inserting ‘‘assistance under a State program

funded’’.

(i) The Carl D. Perkins Vocational and Applied Technology

Education Act (20 U.S.C. 2301 et seq.) is amended—

(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)),

by striking ‘‘the program for aid to dependent children’’ and

inserting ‘‘the State program funded’’; (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by

striking ‘‘the program for aid to families with dependent children’’ and inserting ‘‘the State program funded’’; and (3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)),

by striking ‘‘the program for aid to families with dependent

children’’ and inserting ‘‘the State program funded’’.

(j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended—

(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking

‘‘Aid to Families with Dependent Children Program’’ and inserting ‘‘State program funded under part A of title IV of the

Social Security Act’’; (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking

‘‘the program of aid to families with dependent children under

a State plan approved under’’ and inserting ‘‘a State program

funded under part A of’’; and

(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))—

(A) in subparagraph (A)(xi), by striking ‘‘Aid to Families with Dependent Children benefits’’ and inserting

‘‘assistance under a State program funded under part A

of title IV of the Social Security Act’’; and

(B) in subparagraph (B)(viii), by striking ‘‘Aid to Families with Dependent Children’’ and inserting ‘‘assistance

under the State program funded under part A of title

IV of the Social Security Act’’.

(k) Chapter VII of title I of Public Law 99–88 (25 U.S.C.

13d–1) is amended to read as follows: ‘‘Provided further, That general assistance payments made by the Bureau of Indian Affairs

shall be made—
H. R. 4—56

‘‘(1) after April 29, 1985, and before October 1, 1995, on

the basis of Aid to Families with Dependent Children (AFDC)

standards of need; and

‘‘(2) on and after October 1, 1995, on the basis of standards

of need established under the State program funded under

part A of title IV of the Social Security Act,

except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance payments in such State by the same percentage as the State has

reduced the AFDC or State program payment.’’.

(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)

is amended—

(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all

that follows ‘‘agency as’’ and inserting ‘‘being eligible for financial assistance under part A of title IV of the Social Security

Act and as having continually received such financial assistance

during the 90-day period which immediately precedes the date

on which such individual is hired by the employer.’’;

(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking ‘‘eligibility for aid or services,’’ and all that follows through

‘‘children approved’’ and inserting ‘‘eligibility for assistance,

or the amount of such assistance, under a State program

funded’’;

(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)),

by striking ‘‘aid to families with dependent children provided

under a State plan approved’’ and inserting ‘‘a State program

funded’’;

(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))—

(A) by striking ‘‘(c) or (d)’’ each place it appears and

inserting ‘‘(c), (d), or (e)’’; and

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

following new sentence: ‘‘Any return information disclosed

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

officers and employees of the State agency requesting such

information.’’;

(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)—

(A) by striking ‘‘(5), (10)’’ and inserting ‘‘(5)’’; and

(B) by striking ‘‘(9), or (12)’’ and inserting ‘‘(9), (10),

or (12)’’;

(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by

striking ‘‘(relating to aid to families with dependent children)’’;

(7) in section 6402 (26 U.S.C. 6402)—

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

inserting ‘‘(c), (d), and (e)’’;

(B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and

(C) by inserting after subsection (d) the following:

‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE IV–A OF THE

SOCIAL SECURITY ACT.—The amount of any overpayment to be

refunded to the person making the overpayment shall be reduced

(after reductions pursuant to subsections (c) and (d), but before

a credit against future liability for an internal revenue tax) in

accordance with section 405(e) of the Social Security Act (concerning

recovery of overpayments to individuals under State plans approved

under part A of title IV of such Act).’’; and
H. R. 4—57

(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by

striking ‘‘aid to families with dependent children’’ and inserting

‘‘assistance under a State program funded under part A of

title IV of the Social Security Act’’.

(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b))

is amended by striking ‘‘State plan approved under part A of title

IV’’ and inserting ‘‘State program funded under part A of title

IV’’.

(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.)

is amended—

(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et seq.)’’;

(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking ‘‘State aid to families with dependent children records,’’

and inserting ‘‘records collected under the State program funded

under part A of title IV of the Social Security Act,’’;

(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—

(A) by striking ‘‘the JOBS program’’ and inserting ‘‘the

work activities required under title IV of the Social Security

Act’’; and

(B) by striking the second sentence;

(4) in section 123(c) (29 U.S.C. 1533(c))—

(A) in paragraph (1)(E), by repealing clause (vi); and

(B) in paragraph (2)(D), by repealing clause (v);

(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking

‘‘, including recipients under the JOBS program’’;

(6) in subparagraphs (A) and (B) of section 204(a)(1) (29

U.S.C. 1604(a)(1) (A) and (B)), by striking ‘‘(such as the JOBS

program)’’ each place it appears; (7) in section 205(a) (29 U.S.C. 1605(a)), by striking para- graph (4) and inserting the following: ‘‘(4) the portions of title IV of the Social Security Act

relating to work activities;’’; (8) in section 253 (29 U.S.C. 1632)—

(A) in subsection (b)(2), by repealing subparagraph (C);

and

(B) in paragraphs (1)(B) and (2)(B) of subsection (c),

by striking ‘‘the JOBS program or’’ each place it appears;

(9) in section 264 (29 U.S.C. 1644)—

(A) in subparagraphs (A) and (B) of subsection (b)(1), by striking ‘‘(such as the JOBS program)’’ each place it

appears; and

(B) in subparagraphs (A) and (B) of subsection (d)(3),

by striking ‘‘and the JOBS program’’ each place it appears;

(10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following:

‘‘(6) the portion of title IV of the Social Security Act relating

to work activities;’’;

(11) in the second sentence of section 429(e) (29 U.S.C.

1699(e)), by striking ‘‘and shall be in an amount that does

not exceed the maximum amount that may be provided by

the State pursuant to section 402(g)(1)(C) of the Social Security

Act (42 U.S.C. 602(g)(1)(C))’’;

(12) in section 454(c) (29 U.S.C. 1734(c)), by striking ‘‘JOBS

and’’;

(13) in section 455(b) (29 U.S.C. 1735(b)), by striking ‘‘the

JOBS program,’’;
H. R. 4—58

(14) in section 501(1) (29 U.S.C. 1791(1)), by striking ‘‘aid

to families with dependent children under part A of title IV

of the Social Security Act (42 U.S.C. 601 et seq.)’’ and inserting

‘‘assistance under the State program funded under part A of

title IV of the Social Security Act’’;

(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking

‘‘aid to families with dependent children’’ and inserting ‘‘assistance under the State program funded’’;

(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by

striking ‘‘aid to families with dependent children’’ and inserting

‘‘assistance under the State program funded’’; and

(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))—

(A) in clause (v), by striking the semicolon and inserting ‘‘; and’’; and

(B) by striking clause (vi).

(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code,

is amended to read as follows:

‘‘(iv) assistance under a State program funded

under part A of title IV of the Social Security Act’’.

(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy

Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to

read as follows:

‘‘(i) assistance under the State program funded

under part A of title IV of the Social Security Act;’’.

(q) Section 303(f)(2) of the Family Support Act of 1988 (42

U.S.C. 602 note) is amended—

(1) by striking ‘‘(A)’’; and

(2) by striking subparagraphs (B) and (C).

(r) The Balanced Budget and Emergency Deficit Control Act

of 1985 (2 U.S.C. 900 et seq.) is amended—

(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking

‘‘Aid to families with dependent children (75–0412–0–1–609);’’

and inserting ‘‘Block grants to States for temporary assistance

for needy families;’’; and

(2) in section 256 (2 U.S.C. 906)—

(A) by striking subsection (k); and

(B) by redesignating subsection (l) as subsection (k).

(s) The Immigration and Nationality Act (8 U.S.C. 1101 et

seq.) is amended—

(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ‘‘aid

under a State plan approved under’’ each place it appears

and inserting ‘‘assistance under a State program funded under’’;

(2) in section 245A(h) (8 U.S.C. 1255a(h))—

(A) in paragraph (1)(A)(i), by striking ‘‘program of aid

to families with dependent children’’ and inserting ‘‘State

program of assistance’’; and

(B) in paragraph (2)(B), by striking ‘‘aid to families

with dependent children’’ and inserting ‘‘assistance under

a State program funded under part A of title IV of the

Social Security Act’’; and

(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking

‘‘State plan approved’’ and inserting ‘‘State program funded’’.

(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.

9835(a)(4)(B)(i)) is amended by striking ‘‘program of aid to families

with dependent children under a State plan approved’’ and inserting

‘‘State program of assistance funded’’.
H. R. 4—59

(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed. (v) Subparagraph (E) of section 213(d)(6) of the School-To- Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended

to read as follows:

‘‘(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;’’. (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code,

is amended by striking ‘‘section 464 or 1137 of the Social Security

Act’’ and inserting ‘‘section 404(e), 464, or 1137 of the Social Security

Act.’’.

SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL SECURITY CARD REQUIRED.

(a) DEVELOPMENT.— (1) IN GENERAL.—The Commissioner of Social Security (in this section referred to as the ‘‘Commissioner’’) shall, in accordance with this section, develop a prototype of a counterfeitresistant social security card. Such prototype card shall— (A) be made of a durable, tamper-resistant material

such as plastic or polyester, (B) employ technologies that provide security features, such as magnetic stripes, holograms, and integrated circuits, and

(C) be developed so as to provide individuals with

reliable proof of citizenship or legal resident alien status.

(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney Gen- eral of the United States shall provide such information and

assistance as the Commissioner deems necessary to enable

the Commissioner to comply with this section.

(b) STUDY AND REPORT.— (1) IN GENERAL.—The Commissioner shall conduct a study and issue a report to Congress which examines different methods of improving the social security card application process. (2) ELEMENTS OF STUDY.—The study shall include an evaluation of the cost and work load implications of issuing

a counterfeit-resistant social security card for all individuals

over a 3-, 5-, and 10-year period. The study shall also evaluate

the feasibility and cost implications of imposing a user fee

for replacement cards and cards issued to individuals who

apply for such a card prior to the scheduled 3-, 5-, and 10-

year phase-in options. (3) DISTRIBUTION OF REPORT.—The Commissioner shall submit copies of the report described in this subsection along

with a facsimile of the prototype card as described in subsection

(a) to the Committees on Ways and Means and Judiciary of

the House of Representatives and the Committees on Finance

and Judiciary of the Senate within 1 year after the date of

the enactment of this Act.

SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

(a) IN GENERAL.—Whenever an organization that accepts Federal funds under this Act or the amendments made by this Act

makes any communication that in any way intends to promote

public support or opposition to any policy of a Federal, State,

or local government through any broadcasting station, newspaper,

magazine, outdoor advertising facility, direct mailing, or any other

type of general public advertising, such communication shall state
H. R. 4—60

the following: ‘‘This was prepared and paid for by an organization

that accepts taxpayer dollars.’’.

(b) FAILURE TO COMPLY.—If an organization makes any communication described in subsection (a) and fails to provide the statement required by that subsection, such organization shall be ineligible to receive Federal funds under this Act or the amendments

made by this Act.

(c) DEFINITION.—For purposes of this section, the term

‘‘organization’’ means an organization described in section 501(c)

of the Internal Revenue Code of 1986.

(d) EFFECTIVE DATES.—This section shall take effect—

(1) with respect to printed communications 1 year after

the date of enactment of this Act; and

(2) with respect to any other communication on the date

of enactment of this Act.

SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN

LOW-INCOME INDIVIDUALS PROGRAM.

Section 505 of the Family Support Act of 1988 (42 U.S.C.

1315 note) is amended—

(1) in the heading, by striking ‘‘DEMONSTRATION’’;

(2) by striking ‘‘demonstration’’ each place such term

appears;

(3) in subsection (a), by striking ‘‘in each of fiscal years’’

and all that follows through ‘‘10’’ and inserting ‘‘shall enter

into agreements with’’;

(4) in subsection (b)(3), by striking ‘‘aid to families with

dependent children under part A of title IV of the Social Security Act’’ and inserting ‘‘assistance under the program funded

part A of title IV of the Social Security Act of the State in

which the individual resides’’;

(5) in subsection (c)—

(A) in paragraph (1)(C), by striking ‘‘aid to families

with dependent children under part A of title IV of the

Social Security Act’’ and inserting ‘‘assistance under a State

program funded part A of title IV of the Social Security

Act’’;

(B) in paragraph (2), by striking ‘‘aid to families with

dependent children under title IV of such Act’’ and inserting

‘‘assistance under a State program funded part A of title

IV of the Social Security Act’’;

(6) in subsection (d), by striking ‘‘job opportunities and basic skills training program (as provided for under title IV

of the Social Security Act)’’ and inserting ‘‘the State program

funded under part A of title IV of the Social Security Act’’;

and

(7) by striking subsections (e) through (g) and inserting

the following:

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of

conducting projects under this section, there is authorized to be

appropriated an amount not to exceed $25,000,000 for any fiscal

year.’’.

SEC. 114. MEDICAID ELIGIBILITY UNDER TITLE IV OF THE SOCIAL

SECURITY ACT.

(a) IN GENERAL.—Section 1902(a)(10)(A) (42 U.S.C.

1396a(a)(10)(A)) is amended—
H. R. 4—61

(1) in clause (i), by amending subclause (I) to read as

follows:

‘‘(I) who are receiving a foster care maintenance payment described in section 423(b)(1)(A)

or an adoption assistance payment described in

section 423(b)(1)(B),’’; and

(2) in clause (ii)—

(A) by striking ‘‘or’’ at the end of subclause (XI),

(B) by adding ‘‘or’’ at the end of subclause (XII), and

(C) by adding at the end the following new subclause:

‘‘(XIII) to individuals (which may include

individuals who receive payment under any plan

of the State approved under title I, X, XIV, or

XVI, or a program funded under part A of title

IV of this Act, as amended by the Personal Responsibility and Work Opportunity Act of 1995, and

other similar individuals) who meet such eligibility

criteria as the State establishes, so long as the

State demonstrates to the satisfaction of the Secretary that the application of such criteria does

not result in Federal expenditures under this title

that are greater than the Federal expenditures

that would have been made under this title if

such Act had not been enacted,’’.

(b) EFFECTIVE DATE.—The amendments made by subsection

(a) shall apply to medical assistance for items and services furnished

on or after the date of the enactment of this Act.

SEC. 115. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL

FOR TECHNICAL AND CONFORMING AMENDMENTS.

Not later than 90 days after the date of the enactment of

this Act, the Secretary of Health and Human Services and the

Commissioner of Social Security, in consultation, as appropriate,

with the heads of other Federal agencies, shall submit to the

appropriate committees of Congress a legislative proposal proposing

such technical and conforming amendments as are necessary to

bring the law into conformity with the policy embodied in this

title.

SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

(a) IN GENERAL.—Except as otherwise provided in this title,

this title and the amendments made by this title shall take effect

on October 1, 1996.

(b) TRANSITION RULES.— (1) STATE OPTION TO ACCELERATE EFFECTIVE DATE.—

(A) IN GENERAL.—If, within 3 months after the date

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

Human Services receives from a State a plan described

in section 402(a) of the Social Security Act (as added by

the amendment made by section 103 of this Act), this

title and the amendments made by this title (except section

409(a)(7) of the Social Security Act, as added by the amendment made by such section 103) shall also apply with

respect to the State during the period that begins on the

date of such receipt and ends on September 30, 1996,

except that the State shall be considered an eligible State

for fiscal year 1996 for purposes of part A of title IV
H. R. 4—62

of the Social Security Act (as in effect pursuant to the

amendment made by such section 103).

(B) LIMITATIONS ON FEDERAL OBLIGATIONS.—

(i) UNDER AFDC PROGRAM.—If the Secretary

receives from a State the plan referred to in subparagraph (A), the total obligations of the Federal Government to the State under part A of title IV of the

Social Security Act (as in effect on September 30, 1995)

with respect to expenditures by the State after the

date of the enactment of this Act shall not exceed

an amount equal to—

(I) the State family assistance grant (as

defined in section 403(a)(1)(B) of the Social Security Act (as in effect pursuant to the amendment

made by section 103 of this Act)); minus

(II) any obligations of the Federal Government

to the State under part A of title IV of the Social

Security Act (as in effect on September 30, 1995)

with respect to expenditures by the State during

the period that begins on October 1, 1995, and

ends on the day before the date of the enactment

of this Act.

(ii) UNDER TEMPORARY FAMILY ASSISTANCE PROGRAM.—Notwithstanding section 403(a)(1) of the Social

Security Act (as in effect pursuant to the amendment

made by section 103 of this Act), the total obligations

of the Federal Government to a State under such section 403(a)(1) for fiscal year 1996 after the termination

of the State AFDC program shall not exceed an amount

equal to—

(I) the amount described in clause (i)(I) of

this subparagraph; minus

(II) any obligations of the Federal Government

to the State under part A of title IV of the Social

Security Act (as in effect on September 30, 1995)

with respect to expenditures by the State on or

after October 1, 1995.

(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETERMINING FEDERAL AFDC OBLIGATIONS.—As used in this

subparagraph, the term ‘‘obligations of the Federal

Government to the State under part A of title IV

of the Social Security Act’’ does not include any obligation of the Federal Government with respect to child

care expenditures by the State.

(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996

DEEMED ACCEPTANCE OF GRANT LIMITATIONS AND FORMULA.—The submission of a plan by a State pursuant

to subparagraph (A) is deemed to constitute the State’s

acceptance of the grant reductions under subparagraph

(B)(ii) (including the formula for computing the amount

of the reduction).

(D) DEFINITIONS.—As used in this paragraph:

(i) STATE AFDC PROGRAM.—The term ‘‘State AFDC

program’’ means the State program under parts A and

F of title IV of the Social Security Act (as in effect

on September 30, 1995).
H. R. 4—63

(ii) STATE.—The term ‘‘State’’ means the 50 States

and the District of Columbia.

(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments

made by this title shall not apply with respect to— (A) powers, duties, functions, rights, claims, penalties, or obligations applicable to aid, assistance, or services provided before the effective date of this title under the provisions amended; and

(B) administrative actions and proceedings commenced before such date, or authorized before such date to be

commenced, under such provisions.

(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMI- NATED OR SUBSTANTIALLY MODIFIED BY THIS TITLE.—In closing out accounts, Federal and State officials may use scientifically

acceptable statistical sampling techniques. Claims made with

respect to State expenditures under a State plan approved

under part A of title IV of the Social Security Act (as in

effect before the effective date of this Act) with respect to

assistance or services provided on or before September 30,

1995, shall be treated as claims with respect to expenditures

during fiscal year 1995 for purposes of reimbursement even

if payment was made by a State on or after October 1, 1995.

Each State shall complete the filing of all claims under the

State plan (as so in effect) no later than September 30, 1997.

The head of each Federal department shall— (A) use the single audit procedure to review and resolve any claims in connection with the close out of programs

under such State plans; and (B) reimburse States for any payments made for assist- ance or services provided during a prior fiscal year from

funds for fiscal year 1995, rather than from funds authorized by this title.

(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR

FAMILY SUPPORT.—The individual who, on the day before the effective date of this title, is serving as Assistant Secretary

for Family Support within the Department of Health and

Human Services shall, until a successor is appointed to such

position—(A) continue to serve in such position; and

(B) except as otherwise provided by law— (i) continue to perform the functions of the Assistant Secretary for Family Support under section 417

of the Social Security Act (as in effect before such

effective date); and

(ii) have the powers and duties of the Assistant

Secretary for Family Support under section 416 of

the Social Security Act (as in effect pursuant to the

amendment made by section 103 of this Act).

TITLE II—SUPPLEMENTAL SECURITY

INCOME

SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

Except as otherwise specifically provided, wherever in this title

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

of a section or other provision, the reference shall be considered
H. R. 4—64

to be made to that section or other provision of the Social Security

Act.

Subtitle A—Eligibility Restrictions

SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS

FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO OBTAIN BENEFITS SIMULTANEOUSLY

IN 2 OR MORE STATES.

(a) IN GENERAL.—Section 1614(a) (42 U.S.C. 1382c(a)) is

amended by adding at the end the following new paragraph:

‘‘(5) An individual shall not be considered an eligible individual

for the purposes of this title during the 10-year period that begins

on the date the individual is convicted in Federal or State court

of having made a fraudulent statement or representation with

respect to the place of residence of the individual in order to

receive assistance simultaneously from 2 or more States under

programs that are funded under title IV, title XIX, or the Food

Stamp Act of 1977, or benefits in 2 or more States under the

supplemental security income program under this title.’’.

(b) EFFECTIVE DATE.—The amendment made by this section

shall take effect on the date of the enactment of this Act.

SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND

PROBATION AND PAROLE VIOLATORS.

(a) IN GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)) is

amended by inserting after paragraph (3) the following new paragraph: ‘‘(4) A person shall not be considered an eligible individual

or eligible spouse for purposes of this title with respect to any

month if during such month the person is— ‘‘(A) fleeing to avoid prosecution, or custody or confinement

after conviction, under the laws of the place from which the

person flees, for a crime, or an attempt to commit a crime,

which is a felony under the laws of the place from which

the person flees, or which, in the case of the State of New

Jersey, is a high misdemeanor under the laws of such State;

or

‘‘(B) violating a condition of probation or parole imposed

under Federal or State law.’’.

(b) EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGEN- CIES.—Section 1611(e) (42 U.S.C. 1382(e)), as amended by sub- section (a), is amended by inserting after paragraph (4) the following

new paragraph:

‘‘(5) Notwithstanding any other provision of law, the Commissioner shall furnish any Federal, State, or local law enforcement

officer, upon the request of the officer, with the current address,

Social Security number, and photograph (if applicable) of any recipient of benefits under this title, if the officer furnishes the Commissioner with the name of the recipient and notifies the Commissioner

that—

‘‘(A) the recipient—

‘‘(i) is described in subparagraph (A) or (B) of paragraph (4); or

‘‘(ii) has information that is necessary for the officer

to conduct the officer’s official duties; and
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‘‘(B) the location or apprehension of the recipient is within

the officer’s official duties.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the date of the enactment of this Act.

Subtitle B—Benefits for Disabled Children

SEC. 211. DEFINITION AND ELIGIBILITY RULES.

(a) DEFINITION OF CHILDHOOD DISABILITY.—Section 1614(a)(3)

(42 U.S.C. 1382c(a)(3)), as amended by section 201(a), is amended—

(1) in subparagraph (A), by striking ‘‘An individual’’ and

inserting ‘‘Except as provided in subparagraph (C), an individual’’;

(2) in subparagraph (A), by striking ‘‘(or, in the case of

an individual under the age of 18, if he suffers from any

medically determinable physical or mental impairment of comparable severity)’’;

(3) by redesignating subparagraphs (C) through (I) as subparagraphs (D) through (J), respectively;

(4) by inserting after subparagraph (B) the following new

subparagraph:

‘‘(C) An individual under the age of 18 shall be considered

disabled for the purposes of this title if that individual has a

medically determinable physical or mental impairment, which

results in marked and severe functional limitations, and which

can be expected to result in death or which has lasted or can

be expected to last for a continuous period of not less than 12

months. Notwithstanding the preceding sentence, no individual

under the age of 18 who engages in substantial gainful activity

(determined in accordance with regulations prescribed pursuant

to subparagraph (E)) may be considered to be disabled.’’; and (5) in subparagraph (F), as redesignated by paragraph (3), by striking ‘‘(D)’’ and inserting ‘‘(E)’’.

(b) CHANGES TO CHILDHOOD SSI REGULATIONS.— (1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION

OF MENTAL AND EMOTIONAL DISORDERS.—The Commissioner of

Social Security shall modify sections 112.00C.2. and

112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title

20, Code of Federal Regulations, to eliminate references to

maladaptive behavior in the domain of personal/behavorial

function.

(2) DISCONTINUANCE OF INDIVIDUALIZED FUNCTIONAL

ASSESSMENT.—The Commissioner of Social Security shall discontinue the individualized functional assessment for children

set forth in sections 416.924d and 416.924e of title 20, Code

of Federal Regulations.

(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES

TO INDIVIDUALS UNDER THE AGE OF 18.—Section 1614(a)(4) (42

U.S.C. 1382(a)(4)) is amended—

(1) by redesignating subclauses (I) and (II) of clauses (i)

and (ii) of subparagraph (B) as items (aa) and (bb), respectively;

(2) by redesignating clauses (i) and (ii) of subparagraphs

(A) and (B) as subclauses (I) and (II), respectively;

(3) by redesignating subparagraphs (A) through (C) as

clauses (i) through (iii), respectively, and by moving their left

hand margin 2 ems to the right;
H. R. 4—66

(4) by inserting before clause (i) (as redesignated by paragraph (3)) the following:

‘‘(A) in the case of an individual who is age 18 or

older—’’;

(5) at the end of subparagraph (A)(iii) (as redesignated

by paragraphs (3) and (4)), by striking the period and inserting

‘‘; or’’;

(6) by inserting after and below subparagraph (A)(iii) (as

so redesignated) the following:

‘‘(B) in the case of an individual who is under the

age of 18—

‘‘(i) substantial evidence which demonstrates that

there has been medical improvement in the individual’s

impairment or combination of impairments, and that

such impairment or combination of impairments no

longer results in marked and severe functional limitations; or

‘‘(ii) substantial evidence which demonstrates that,

as determined on the basis of new or improved diagnostic techniques or evaluations, the individual’s

impairment or combination of impairments, is not as

disabling as it was considered to be at the time of

the most recent prior decision that the individual was

under a disability or continued to be under a disability,

and such impairment or combination of impairments

does not result in marked or severe functional limitations; or’’;

(7) by redesignating subparagraph (D) as subparagraph

(C) and by inserting in such subparagraph ‘‘in the case of

any individual,’’ before ‘‘substantial evidence’’; and

(8) in the first sentence following subparagraph (C) (as

redesignated by paragraph (7)), by—

(A) inserting ‘‘(i)’’ before ‘‘to restore’’; and

(B) inserting ‘‘, or (ii) in the case of an individual

under the age of 18, to eliminate or improve the individual’s

impairment or combination of impairments so that it no

longer results in marked and severe functional limitations’’

immediately before the period.

(d) AMOUNT OF BENEFITS.—Section 1611(b) (42 U.S.C. 1382(b))

is amended by adding at the end the following new paragraph:

‘‘(3)(A) Except with respect to individuals described in subparagraph (B), the benefit under this title for an individual described

in section 1614(a)(3)(C) shall be payable at a rate equal to 75

percent of the rate otherwise determined under this subsection.

‘‘(B) An individual is described in this subparagraph if such

individual is described in section 1614(a)(3)(C), and—

‘‘(i) in the case of such an individual under the age of

6, such individual has a medical impairment that severely

limits the individual’s ability to function in a manner appropriate to individuals of the same age and who without special

personal assistance would require specialized care outside the

home; or

‘‘(ii) in the case of such an individual who has attained

the age of 6, such individual requires personal care assistance

with—

‘‘(I) at least 2 activities of daily living;
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‘‘(II) continual 24-hour supervision or monitoring to

avoid causing injury or harm to self or others; or

‘‘(III) the administration of medical treatment; and

who without such assistance would require full-time or parttime specialized care outside the home.

‘‘(C)(i) For purposes of subparagraph (B), the term ‘specialized

care’ means medical care beyond routine administration of medication.

‘‘(ii) For purposes of subparagraph (B)(ii)—

‘‘(I) the term ‘personal care assistance’ means at least

hands-on and stand-by assistance, supervision, or cueing; and

‘‘(II) the term ‘activities of daily living’ means eating,

toileting, dressing, bathing, and mobility.’’.

(e) EFFECTIVE DATES, ETC.—

(1) EFFECTIVE DATES.—

(A) IN GENERAL.—The provisions of, and amendments

made by, subsections (a), (b), and (c) shall apply to

applicants for benefits under title XVI of the Social Security

Act for months beginning on or after the date of the enactment of this Act, without regard to whether regulations

have been issued to implement such provisions and amendments.

(B) ELIGIBILITY RULES.—The amendments made by

subsection (d) shall apply to—

(i) applicants for benefits under title XVI of the

Social Security Act for months beginning on or after

January 1, 1997; and

(ii) with respect to continuing disability reviews

of eligibility for benefits under such title occurring

on or after such date.

(2) APPLICATION TO CURRENT RECIPIENTS.—

(A) ELIGIBILITY DETERMINATIONS.—Not later than 1

year after the date of the enactment of this Act, the

Commissioner of Social Security shall redetermine the eligibility of any individual under age 18 who is receiving

supplemental security income benefits by reason of disability under title XVI of the Social Security Act as of the

date of the enactment of this Act and whose eligibility

for such benefits may terminate by reason of the provisions

of, or amendments made by, subsections (a), (b), and (c).

With respect to any redetermination under this subparagraph—

(i) section 1614(a)(4) of the Social Security Act

(42 U.S.C. 1382c(a)(4)) shall not apply;

(ii) the Commissioner of Social Security shall apply

the eligibility criteria for new applicants for benefits

under title XVI of such Act;

(iii) the Commissioner shall give such redetermination priority over all continuing eligibility reviews and

other reviews under such title; and

(iv) such redetermination shall be counted as a

review or redetermination otherwise required to be

made under section 208 of the Social Security

Independence and Program Improvements Act of 1994

or any other provision of title XVI of the Social Security

Act.
H. R. 4—68

(B) GRANDFATHER PROVISION.—The provisions of, and

amendments made by, subsections (a), (b), and (c), and

the redetermination under subparagraph (A), shall only

apply with respect to the benefits of an individual described

in subparagraph (A) for months beginning on or after January 1, 1997.

(C) NOTICE.—Not later than 90 days after the date

of the enactment of this Act, the Commissioner of Social

Security shall notify an individual described in subparagraph (A) of the provisions of this paragraph.

(3) REPORT.—The Commissioner of Social Security shall

report to the Congress regarding the progress made in

implementing the provisions of, and amendments made by,

this section on child disability evaluations not later than 180

days after the date of the enactment of this Act.

(4) REGULATIONS.—The Commissioner of Social Security

shall submit for review to the committees of jurisdiction in

the Congress any final regulation pertaining to the eligibility

of individuals under age 18 for benefits under title XVI of

the Social Security Act at least 45 days before the effective

date of such regulation. The submission under this paragraph

shall include supporting documentation providing a cost analysis, workload impact, and projections as to how the regulation

will effect the future number of recipients under such title.

(5) APPROPRIATIONS.—

(A) IN GENERAL.—Out of any money in the Treasury

not otherwise appropriated, there are authorized to be

appropriated and are hereby appropriated, to remain available without fiscal year limitation, $200,000,000 for fiscal

year 1996, $75,000,000 for fiscal year 1997, and

$25,000,000 for fiscal year 1998, for the Commissioner

of Social Security to utilize only for continuing disability

reviews and redeterminations under title XVI of the Social

Security Act, with reviews and redeterminations for

individuals affected by the provisions of subsection (b) given

highest priority. (B) ADDITIONAL FUNDS.—Amounts appropriated under

subparagraph (A) shall be in addition to any funds otherwise appropriated for continuing disability reviews and

redeterminations under title XVI of the Social Security

Act.

(6) BENEFITS UNDER TITLE XVI.—For purposes of this subsection, the term ‘‘benefits under title XVI of the Social Security

Act’’ includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the

Social Security Act, and payments pursuant to an agreement

entered into under section 212(b) of Public Law 93–66.

SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING

DISABILITY REVIEWS.

(a) CONTINUING DISABILITY REVIEWS RELATING TO CERTAIN

CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as

redesignated by section 211(a)(3), is amended—

(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

(2) by adding at the end the following new clause:

‘‘(ii)(I) Not less frequently than once every 3 years, the Commissioner shall review in accordance with paragraph (4) the continued
H. R. 4—69

eligibility for benefits under this title of each individual who has

not attained 18 years of age and is eligible for such benefits by

reason of an impairment (or combination of impairments) which

may improve (or, at the option of the Commissioner, which is

unlikely to improve).

‘‘(II) A representative payee of a recipient whose case is

reviewed under this clause shall present, at the time of review,

evidence demonstrating that the recipient is, and has been, receiving treatment, to the extent considered medically necessary and

available, of the condition which was the basis for providing benefits

under this title.

‘‘(III) If the representative payee refuses to comply without

good cause with the requirements of subclause (II), the Commissioner of Social Security shall, if the Commissioner determines

it is in the best interest of the individual, promptly terminate

payment of benefits to the representative payee, and provide for

payment of benefits to an alternative representative payee of the

individual or, if the interest of the individual under this title would

be served thereby, to the individual.

‘‘(IV) Subclause (II) shall not apply to the representative payee

of any individual with respect to whom the Commissioner determines such application would be inappropriate or unnecessary.

In making such determination, the Commissioner shall take into

consideration the nature of the individual’s impairment (or combination of impairments). Section 1631(c) shall not apply to a finding

by the Commissioner that the requirements of subclause (II) should

not apply to an individual’s representative payee.’’.

(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR

SSI RECIPIENTS WHO ATTAIN 18 YEARS OF AGE.—

(1) IN GENERAL.—Section 1614(a)(3)(H) (42 U.S.C.

1382c(a)(3)(H)), as amended by subsection (a), is amended by

adding at the end the following new clause:

‘‘(iii) If an individual is eligible for benefits under this title

by reason of disability for the month preceding the month in which

the individual attains the age of 18 years, the Commissioner shall

redetermine such eligibility—

‘‘(I) during the 1-year period beginning on the individual’s

18th birthday; and

‘‘(II) by applying the criteria used in determining the initial

eligibility for applicants who are age 18 or older.

With respect to a redetermination under this clause, paragraph

(4) shall not apply and such redetermination shall be considered

a substitute for a review or redetermination otherwise required

under any other provision of this subparagraph during that 1-

year period.’’.

(2) CONFORMING REPEAL.—Section 207 of the Social Security Independence and Program Improvements Act of 1994 (42

U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed.

(c) CONTINUING DISABILITY REVIEW REQUIRED FOR LOW BIRTH

WEIGHT BABIES.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)),

as amended by subsections (a) and (b), is amended by adding

at the end the following new clause:

‘‘(iv)(I) Not later than 12 months after the birth of an individual,

the Commissioner shall review in accordance with paragraph (4)

the continuing eligibility for benefits under this title by reason

of disability of such individual whose low birth weight is a contribut-
H. R. 4—70

ing factor material to the Commissioner’s determination that the

individual is disabled.

‘‘(II) A review under subclause (I) shall be considered a substitute for a review otherwise required under any other provision

of this subparagraph during that 12-month period. ‘‘(III) A representative payee of a recipient whose case is reviewed under this clause shall present, at the time of review,

evidence demonstrating that the recipient is, and has been, receiving treatment, to the extent considered medically necessary and

available, of the condition which was the basis for providing benefits

under this title.

‘‘(IV) If the representative payee refuses to comply without good cause with the requirements of subclause (III), the Commissioner of Social Security shall, if the Commissioner determines

it is in the best interest of the individual, promptly terminate

payment of benefits to the representative payee, and provide for

payment of benefits to an alternative representative payee of the

individual or, if the interest of the individual under this title would

be served thereby, to the individual. ‘‘(V) Subclause (III) shall not apply to the representative payee of any individual with respect to whom the Commissioner determines such application would be inappropriate or unnecessary.

In making such determination, the Commissioner shall take into

consideration the nature of the individual’s impairment (or combination of impairments). Section 1631(c) shall not apply to a finding

by the Commissioner that the requirements of subclause (III) should

not apply to an individual’s representative payee.’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to benefits for months beginning on or after the date

of the enactment of this Act, without regard to whether regulations

have been issued to implement such amendments.

SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

(a) DISPOSAL OF RESOURCES FOR LESS THAN FAIR MARKET

VALUE.—

(1) IN GENERAL.—Section 1613(c) (42 U.S.C. 1382b(c)) is

amended to read as follows:

‘‘Disposal of Resources for Less Than Fair Market Value

‘‘(c)(1)(A)(i) If an individual who has not attained 18 years of age (or any person acting on such individual’s behalf) disposes

of resources of the individual for less than fair market value on

or after the look-back date specified in clause (ii)(I), the individual

is ineligible for benefits under this title for months during the

period beginning on the date specified in clause (iii) and equal

to the number of months specified in clause (iv). ‘‘(ii)(I) The look-back date specified in this subclause is a date that is 36 months before the date specified in subclause (II). ‘‘(II) The date specified in this subclause is the date on which

the individual applies for benefits under this title or, if later,

the date on which the disposal of the individual’s resources for

less than fair market value occurs.

‘‘(iii) The date specified in this clause is the first day of the

first month that follows the month in which the individual’s

resources were disposed of for less than fair market value and

that does not occur in any other period of ineligibility under this

paragraph.
H. R. 4—71

‘‘(iv) The number of months of ineligibility under this clause

for an individual shall be equal to—

‘‘(I) the total, cumulative uncompensated value of all the

individual’s resources so disposed of on or after the look-back

date specified in clause (ii)(I), divided by

‘‘(II) the amount of the maximum monthly benefit payable

under section 1611(b) to an eligible individual for the month

in which the date specified in clause (ii)(II) occurs.

‘‘(B) An individual shall not be ineligible for benefits under

this title by reason of subparagraph (A) if the Commissioner determines that—

‘‘(i) the individual intended to dispose of the resources

at fair market value;

‘‘(ii) the resources were transferred exclusively for a purpose other than to qualify for benefits under this title;

‘‘(iii) all resources transferred for less than fair market

value have been returned to the individual; or

‘‘(iv) the denial of eligibility would work an undue hardship

on the individual (as determined on the basis of criteria established by the Commissioner in regulations).

‘‘(C) For purposes of this paragraph, in the case of a resource

held by an individual in common with another person or persons

in a joint tenancy, tenancy in common, or similar arrangement,

the resource (or the affected portion of such resource) shall be

considered to be disposed of by such individual when any action

is taken, either by such individual or by any other person, that

reduces or eliminates such individual’s ownership or control of

such resource.

‘‘(D)(i) Notwithstanding subparagraph (A), this subsection shall

not apply to a transfer of a resource to a trust if the portion

of the trust attributable to such resource is considered a resource

available to the individual pursuant to subsection (e)(3) (or would

be so considered, but for the application of subsection (e)(4)).

‘‘(ii) In the case of a trust established by an individual (within the meaning of subsection (e)(2)(A)), if from such portion of the

trust (if any) that is considered a resource available to the individual

pursuant to subsection (e)(3) (or would be so considered but for

the application of subsection (e)(2)) or the residue of such portion

upon the termination of the trust—

‘‘(I) there is made a payment other than to or for the

benefit of the individual, or

‘‘(II) no payment could under any circumstance be made

to the individual,

then the payment described in subclause (I) or the foreclosure

of payment described in subclause (II) shall be considered a disposal

of resources by the individual subject to this subsection, as of

the date of such payment or foreclosure, respectively.

‘‘(2)(A) At the time an individual (and the individual’s eligible

spouse, if any) applies for benefits under this title, and at the

time the eligibility of an individual (and such spouse, if any) for

such benefits is redetermined, the Commissioner of Social Security

shall—

‘‘(i) inform such individual of the provisions of paragraph

(1) providing for a period of ineligibility for benefits under

this title for individuals who make certain dispositions of

resources for less than fair market value, and inform such

individual that information obtained pursuant to clause (ii)
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will be made available to the State agency administering a

State plan approved under title XIX (as provided in subparagraph (B)); and

‘‘(ii) obtain from such individual information which may

be used in determining whether or not a period of ineligibility

for such benefits would be required by reason of paragraph

(1).

‘‘(B) The Commissioner of Social Security shall make the

information obtained under subparagraph (A)(ii) available, on

request, to any State agency administering a State plan approved

under title XIX.

‘‘(3) For purposes of this subsection—

‘‘(A) the term ‘trust’ includes any legal instrument or device

that is similar to a trust; and

‘‘(B) the term ‘benefits under this title’ includes supplementary payments pursuant to an agreement for Federal

administration under section 1616(a), and payments pursuant

to an agreement entered into under section 212(b) of Public

Law 93–66.’’.

(2) EFFECTIVE DATE.—The amendment made by this subsection shall be effective with respect to transfers that occur

at least 90 days after the date of the enactment of this Act.

(b) TREATMENT OF ASSETS HELD IN TRUST.—

(1) TREATMENT AS RESOURCE.—Section 1613 (42 U.S.C.

1382) is amended by adding at the end the following new

subsection:

‘‘TRUSTS

‘‘(e)(1) In determining the resources of an individual who has not attained 18 years of age, the provisions of paragraph (3) shall

apply to a trust established by such individual. ‘‘(2)(A) For purposes of this subsection, an individual shall

be considered to have established a trust if any assets of the

individual were transferred to the trust.

‘‘(B) In the case of an irrevocable trust to which the assets

of an individual and the assets of any other person or persons

were transferred, the provisions of this subsection shall apply to

the portion of the trust attributable to the assets of the individual.

‘‘(C) This subsection shall apply without regard to— ‘‘(i) the purposes for which the trust is established;

‘‘(ii) whether the trustees have or exercise any discretion

under the trust;

‘‘(iii) any restrictions on when or whether distributions

may be made from the trust; or ‘‘(iv) any restrictions on the use of distributions from the

trust.

‘‘(3)(A) In the case of a revocable trust, the corpus of the

trust shall be considered a resource available to the individual.

‘‘(B) In the case of an irrevocable trust, if there are any circumstances under which payment from the trust could be made

to or for the benefit of the individual, the portion of the corpus

from which payment to or for the benefit of the individual could

be made shall be considered a resource available to the individual.

‘‘(4) The Commissioner may waive the application of this subsection with respect to any individual if the Commissioner determines, on the basis of criteria prescribed in regulations, that such

application would work an undue hardship on such individual.
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‘‘(5) For purposes of this subsection—

‘‘(A) the term ‘trust’ includes any legal instrument or device

that is similar to a trust;

‘‘(B) the term ‘corpus’ means all property and other

interests held by the trust, including accumulated earnings

and any other addition to such trust after its establishment

(except that such term does not include any such earnings

or addition in the month in which such earnings or addition

is credited or otherwise transferred to the trust);

‘‘(C) the term ‘asset’ includes any income or resource of

the individual, including—

‘‘(i) any income otherwise excluded by section 1612(b);

‘‘(ii) any resource otherwise excluded by this section;

and

‘‘(iii) any other payment or property that the individual

is entitled to but does not receive or have access to because

of action by—

‘‘(I) such individual;

‘‘(II) a person or entity (including a court) with

legal authority to act in place of, or on behalf of,

such individual; or

‘‘(III) a person or entity (including a court) acting

at the direction of, or upon the request of, such individual; and

‘‘(D) the term ‘benefits under this title’ includes supplementary payments pursuant to an agreement for Federal

administration under section 1616(a), and payments pursuant

to an agreement entered into under section 212(b) of Public

Law 93–66.’’.

(2) TREATMENT AS INCOME.—Section 1612(a)(2) (42 U.S.C.

1382a(a)(2)) is amended—

(A) by striking ‘‘and’’ at the end of subparagraph (E);

(B) by striking the period at the end of subparagraph (F) and inserting ‘‘; and’’; and (C) by adding at the end the following new subparagraph: ‘‘(G) any earnings of, and additions to, the corpus of a trust (as defined in section 1613(f)) established by an

individual (within the meaning of section 1613(e)(2)(A))

and of which such individual is a beneficiary (other than

a trust to which section 1613(e)(4) applies), except that

in the case of an irrevocable trust, there shall exist circumstances under which payment from such earnings or

additions could be made to, or for the benefit of, such

individual.’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect on January 1, 1996, and shall apply

to trusts established on or after such date.

(c) REQUIREMENT TO ESTABLISH ACCOUNT.—

(1) IN GENERAL.—Section 1631(a)(2) (42 U.S.C. 1383(a)(2))

is amended—

(A) by redesignating subparagraphs (F) and (G) as

subparagraphs (G) and (H), respectively; and

(B) by inserting after subparagraph (E) the following

new subparagraph:

‘‘(F)(i)(I) Each representative payee of an eligible individual

under the age of 18 who is eligible for the payment of benefits
H. R. 4—74

described in subclause (II) shall establish on behalf of such individual an account in a financial institution into which such benefits

shall be paid, and shall thereafter maintain such account for use

in accordance with clause (ii).

‘‘(II) Benefits described in this subclause are past-due monthly

benefits under this title (which, for purposes of this subclause,

include State supplementary payments made by the Commissioner

pursuant to an agreement under section 1616 or section 212(b)

of Public Law 93–66) in an amount (after any withholding by

the Commissioner for reimbursement to a State for interim assistance under subsection (g)) that exceeds the product of—

‘‘(aa) 6, and

‘‘(bb) the maximum monthly benefit payable under this

title to an eligible individual.

‘‘(ii)(I) A representative payee may use funds in the account

established under clause (i) to pay for allowable expenses described

in subclause (II).

‘‘(II) An allowable expense described in this subclause is an

expense for—

‘‘(aa) education or job skills training;

‘‘(bb) personal needs assistance;

‘‘(cc) special equipment;

‘‘(dd) housing modification;

‘‘(ee) medical treatment;

‘‘(ff) therapy or rehabilitation; or

‘‘(gg) any other item or service that the Commissioner

determines to be appropriate;

provided that such expense benefits such individual and, in the

case of an expense described in item (cc), (dd), (ff), or (gg), is

related to the impairment (or combination of impairments) of such

individual.

‘‘(III) The use of funds from an account established under

clause (i) in any manner not authorized by this clause—

‘‘(aa) by a representative payee shall constitute misuse

of benefits for all purposes of this paragraph, and any representative payee who knowingly misuses benefits from such an

account shall be liable to the Commissioner in an amount

equal to the total amount of such misused benefits; and

‘‘(bb) by an eligible individual who is his or her own representative payee shall be considered an overpayment subject

to recovery under subsection (b).

‘‘(IV) This clause shall continue to apply to funds in the account

after the child has reached age 18, regardless of whether benefits

are paid directly to the beneficiary or through a representative

payee.

‘‘(iii) The representative payee may deposit into the account

established pursuant to clause (i)—

‘‘(I) past-due benefits payable to the eligible individual

in an amount less than that specified in clause (i)(II), and

‘‘(II) any other funds representing an underpayment under

this title to such individual, provided that the amount of such

underpayment is equal to or exceeds the maximum monthly

benefit payable under this title to an eligible individual.

‘‘(iv) The Commissioner of Social Security shall establish a

system for accountability monitoring whereby such representative

payee shall report, at such time and in such manner as the Commis-
H. R. 4—75

sioner shall require, on activity respecting funds in the account

established pursuant to clause (i).’’.

(2) EXCLUSION FROM RESOURCES.—Section 1613(a) (42

U.S.C. 1382b(a)) is amended—

(A) in paragraph (9), by striking ‘‘; and’’ and inserting

a semicolon;

(B) in the first paragraph (10), by striking the period

and inserting a semicolon;

(C) by redesignating the second paragraph (10) as paragraph (11), and by striking the period and inserting ‘‘;

and’’; and

(D) by adding at the end the following:

‘‘(12) the assets and accrued interest or other earnings

of any account established and maintained in accordance with

section 1631(a)(2)(F).’’.

(3) EXCLUSION FROM INCOME.—Section 1612(b) (42 U.S.C.

1382a(b)) is amended—

(A) by striking ‘‘and’’ at the end of paragraph (19);

(B) by striking the period at the end of paragraph

(20) and inserting ‘‘; and’’; and

(C) by adding at the end the following new paragraph:

‘‘(21) the interest or other earnings on any account established and maintained in accordance with section

1631(a)(2)(F).’’.

(4) EFFECTIVE DATE.—The amendments made by this subsection shall apply to payments made after the date of the

enactment of this Act.

SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED INDIVIDUALS WHOSE MEDICAL COSTS ARE

COVERED BY PRIVATE INSURANCE.

(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B))

is amended—

(1) by striking ‘‘title XIX, or’’ and inserting ‘‘title XIX,’’;

and

(2) by inserting ‘‘or, in the case of an eligible individual

under the age of 18 receiving payments (with respect to such

individual) under any health insurance policy issued by a private provider of such insurance’’ after ‘‘section 1614(f)(2)(B),’’.

(b) EFFECTIVE DATE.—The amendment made by this section

shall apply to benefits for months beginning 90 or more days

after the date of the enactment of this Act, without regard to

whether regulations have been issued to implement such

amendments.

SEC. 215. REGULATIONS.

Within 3 months after the date of the enactment of this Act,

the Commissioner of Social Security shall prescribe such regulations

as may be necessary to implement the amendments made by this

subtitle.
H. R. 4—76

Subtitle C—State Supplementation

Programs

SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS

APPLICABLE TO OPTIONAL STATE PROGRAMS FOR

SUPPLEMENTATION OF SSI BENEFITS.

Section 1618 (42 U.S.C. 1382g) is hereby repealed.

Subtitle D—Studies Regarding

Supplemental Security Income Program

SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY

INCOME PROGRAM.

Title XVI (42 U.S.C. 1381 et seq.), as amended by section 201(c), is amended by adding at the end the following new section:

‘‘ANNUAL REPORT ON PROGRAM

‘‘SEC. 1637. (a) Not later than May 30 of each year, the Commis- sioner of Social Security shall prepare and deliver a report annually

to the President and the Congress regarding the program under

this title, including— ‘‘(1) a comprehensive description of the program;

‘‘(2) historical and current data on allowances and denials,

including number of applications and allowance rates at initial

determinations, reconsiderations, administrative law judge

hearings, council of appeals hearings, and Federal court appeal

hearings; ‘‘(3) historical and current data on characteristics of recipi- ents and program costs, by recipient group (aged, blind, work

disabled adults, and children);

‘‘(4) projections of future number of recipients and program

costs, through at least 25 years;

‘‘(5) number of redeterminations and continuing disability

reviews, and the outcomes of such redeterminations and

reviews;

‘‘(6) data on the utilization of work incentives;

‘‘(7) detailed information on administrative and other program operation costs; ‘‘(8) summaries of relevant research undertaken by the

Social Security Administration, or by other researchers; ‘‘(9) State supplementation program operations;

‘‘(10) a historical summary of statutory changes to this

title; and

‘‘(11) such other information as the Commissioner deems

useful.

‘‘(b) Each member of the Social Security Advisory Board shall

be permitted to provide an individual report, or a joint report

if agreed, of views of the program under this title, to be included

in the annual report under this section.’’.

SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

(a) IN GENERAL.—Not later than 90 days after the date of

the enactment of this Act, and from funds otherwise appropriated,

the Commissioner of Social Security shall make arrangements with
H. R. 4—77

the National Academy of Sciences, or other independent entity,

to conduct a study of the disability determination process under

titles II and XVI of the Social Security Act. This study shall be

undertaken in consultation with professionals representing appropriate disciplines. (b) STUDY COMPONENTS.—The study described in subsection (a) shall include—

(1) an initial phase examining the appropriateness of, and making recommendations regarding— (A) the definitions of disability in effect on the date of the enactment of this Act and the advantages and disadvantages of alternative definitions; and (B) the operation of the disability determination proc- ess, including the appropriate method of performing comprehensive assessments of individuals under age 18 with

physical and mental impairments;

(2) a second phase, which may be concurrent with the

initial phase, examining the validity, reliability, and consistency

with current scientific knowledge of the standards and individual listings in the Listing of Impairments set forth in appendix

1 of subpart P of part 404 of title 20, Code of Federal Regulations, and of related evaluation procedures as promulgated

by the Commissioner of Social Security; and (3) such other issues as the applicable entity considers

appropriate.

(c) REPORTS AND REGULATIONS.— (1) REPORTS.—The Commissioner of Social Security shall

request the applicable entity, to submit an interim report and

a final report of the findings and recommendations resulting

from the study described in this section to the President and

the Congress not later than 18 months and 24 months, respectively, from the date of the contract for such study, and such

additional reports as the Commissioner deems appropriate after

consultation with the applicable entity. (2) REGULATIONS.—The Commissioner of Social Security

shall review both the interim and final reports, and shall issue

regulations implementing any necessary changes following each

report.

SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

Not later than January 1, 1998, the Comptroller General of

the United States shall study and report on—

(1) the impact of the amendments made by, and the provisions of, this title on the supplemental security income program

under title XVI of the Social Security Act; and

(2) extra expenses incurred by families of children receiving

benefits under such title that are not covered by other Federal,

State, or local programs.

Subtitle E—National Commission on the

Future of Disability

SEC. 241. ESTABLISHMENT.

There is established a commission to be known as the National

Commission on the Future of Disability (referred to in this subtitle

as the ‘‘Commission’’).
H. R. 4—78

SEC. 242. DUTIES OF THE COMMISSION.

(a) IN GENERAL.—The Commission shall develop and carry

out a comprehensive study of all matters related to the nature,

purpose, and adequacy of all Federal programs serving individuals

with disabilities. In particular, the Commission shall study the

disability insurance program under title II of the Social Security

Act and the supplemental security income program under title

XVI of such Act.

(b) MATTERS STUDIED.—The Commission shall prepare an

inventory of Federal programs serving individuals with disabilities,

and shall examine—

(1) trends and projections regarding the size and characteristics of the population of individuals with disabilities, and

the implications of such analyses for program planning; (2) the feasibility and design of performance standards

for the Nation’s disability programs; (3) the adequacy of Federal efforts in rehabilitation

research and training, and opportunities to improve the lives

of individuals with disabilities through all manners of scientific

and engineering research; and (4) the adequacy of policy research available to the Federal

Government, and what actions might be undertaken to improve

the quality and scope of such research.

(c) RECOMMENDATIONS.—The Commission shall submit to the

appropriate committees of the Congress and to the President recommendations and, as appropriate, proposals for legislation, regarding— (1) which (if any) Federal disability programs should be

eliminated or augmented;

(2) what new Federal disability programs (if any) should

be established;

(3) the suitability of the organization and location of disability programs within the Federal Government;

(4) other actions the Federal Government should take to

prevent disabilities and disadvantages associated with disabilities; and

(5) such other matters as the Commission considers appropriate.

SEC. 243. MEMBERSHIP.

(a) NUMBER AND APPOINTMENT.— (1) IN GENERAL.—The Commission shall be composed of

15 members, of whom—

(A) five shall be appointed by the President, of whom

not more than 3 shall be of the same major political party;

(B) three shall be appointed by the Majority Leader

of the Senate;

(C) two shall be appointed by the Minority Leader

of the Senate;

(D) three shall be appointed by the Speaker of the

House of Representatives; and

(E) two shall be appointed by the Minority Leader

of the House of Representatives.

(2) REPRESENTATION.—The Commission members shall be

chosen based on their education, training, or experience. In

appointing individuals as members of the Commission, the

President and the Majority and Minority Leaders of the Senate
H. R. 4—79

and the Speaker and Minority Leader of the House of Representatives shall seek to ensure that the membership of the

Commission reflects the general interests of the business and

taxpaying community and the diversity of individuals with

disabilities in the United States.

(b) COMPTROLLER GENERAL.—The Comptroller General of the

United States shall advise the Commission on the methodology

and approach of the study of the Commission.

(c) TERM OF APPOINTMENT.—The members shall serve on the

Commission for the life of the Commission.

(d) MEETINGS.—The Commission shall locate its headquarters

in the District of Columbia, and shall meet at the call of the

Chairperson, but not less than 4 times each year during the life

of the Commission.

(e) QUORUM.—Ten members of the Commission shall constitute

a quorum, but a lesser number may hold hearings.

(f) CHAIRPERSON AND VICE CHAIRPERSON.—Not later than 15

days after the members of the Commission are appointed, such

members shall designate a Chairperson and Vice Chairperson from

among the members of the Commission.

(g) CONTINUATION OF MEMBERSHIP.—If a member of the

Commission becomes an officer or employee of any government

after appointment to the Commission, the individual may continue

as a member until a successor member is appointed.

(h) VACANCIES.—A vacancy on the Commission shall be filled

in the manner in which the original appointment was made not

later than 30 days after the Commission is given notice of the

vacancy. (i) COMPENSATION.—Members of the Commission shall receive

no additional pay, allowances, or benefits by reason of their service

on the Commission.

(j) TRAVEL EXPENSES.—Each member of the Commission shall

receive travel expenses, including per diem in lieu of subsistence,

in accordance with sections 5702 and 5703 of title 5, United States

Code.

SEC. 244. STAFF AND SUPPORT SERVICES.

(a) DIRECTOR.— (1) APPOINTMENT.—Upon consultation with the members

of the Commission, the Chairperson shall appoint a Director

of the Commission.

(2) COMPENSATION.—The Director shall be paid the rate

of basic pay for level V of the Executive Schedule.

(b) STAFF.—With the approval of the Commission, the Director

may appoint such personnel as the Director considers appropriate.

(c) APPLICABILITY OF CIVIL SERVICE LAWS.—The staff of the

Commission shall be appointed without regard to the provisions

of title 5, United States Code, governing appointments in the

competitive service, and shall be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title

relating to classification and General Schedule pay rates.

(d) EXPERTS AND CONSULTANTS.—With the approval of the

Commission, the Director may procure temporary and intermittent

services under section 3109(b) of title 5, United States Code.

(e) STAFF OF FEDERAL AGENCIES.—Upon the request of the

Commission, the head of any Federal agency may detail, on a

reimbursable basis, any of the personnel of such agency to the
H. R. 4—80

Commission to assist in carrying out the duties of the Commission

under this subtitle.

(f) OTHER RESOURCES.—The Commission shall have reasonable

access to materials, resources, statistical data, and other information from the Library of Congress and agencies and elected representatives of the executive and legislative branches of the Federal

Government. The Chairperson of the Commission shall make

requests for such access in writing when necessary. (g) PHYSICAL FACILITIES.—The Administrator of the General

Services Administration shall locate suitable office space for the

operation of the Commission. The facilities shall serve as the

headquarters of the Commission and shall include all necessary

equipment and incidentals required for proper functioning of the

Commission.

SEC. 245. POWERS OF COMMISSION.

(a) HEARINGS.—The Commission may conduct public hearings or forums at the discretion of the Commission, at any time and

place the Commission is able to secure facilities and witnesses,

for the purpose of carrying out the duties of the Commission under

this subtitle.

(b) DELEGATION OF AUTHORITY.—Any member or agent of the Commission may, if authorized by the Commission, take any action

the Commission is authorized to take by this section. (c) INFORMATION.—The Commission may secure directly from any Federal agency information necessary to enable the Commission

to carry out its duties under this subtitle. Upon request of the

Chairperson or Vice Chairperson of the Commission, the head of

a Federal agency shall furnish the information to the Commission

to the extent permitted by law. (d) GIFTS, BEQUESTS, AND DEVISES.—The Commission may accept, use, and dispose of gifts, bequests, or devises of services

or property, both real and personal, for the purpose of aiding

or facilitating the work of the Commission. Gifts, bequests, or

devises of money and proceeds from sales of other property received

as gifts, bequests, or devises shall be deposited in the Treasury

and shall be available for disbursement upon order of the Commission.

(e) MAILS.—The Commission may use the United States mails in the same manner and under the same conditions as other Federal

agencies.

SEC. 246. REPORTS.

(a) INTERIM REPORT.—Not later than 1 year prior to the date on which the Commission terminates pursuant to section 247, the

Commission shall submit an interim report to the President and

to the Congress. The interim report shall contain a detailed statement of the findings and conclusions of the Commission, together

with the Commission’s recommendations for legislative and

administrative action, based on the activities of the Commission.

(b) FINAL REPORT.—Not later than the date on which the

Commission terminates, the Commission shall submit to the Congress and to the President a final report containing—

(1) a detailed statement of final findings, conclusions, and

recommendations; and

(2) an assessment of the extent to which recommendations

of the Commission included in the interim report under subsection (a) have been implemented.
H. R. 4—81

(c) PRINTING AND PUBLIC DISTRIBUTION.—Upon receipt of each

report of the Commission under this section, the President shall—

(1) order the report to be printed; and

(2) make the report available to the public upon request.

SEC. 247. TERMINATION.

The Commission shall terminate on the date that is 2 years

after the date on which the members of the Commission have

met and designated a Chairperson and Vice Chairperson.

SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as are

necessary to carry out the purposes of the Commission.

Subtitle F—Retirement Age Eligibility

SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME BENEFITS BASED ON SOCIAL SECURITY RETIREMENT AGE.

(a) IN GENERAL.—Section 1614(a)(1)(A) (42 U.S.C.

1382C(a)(1)(A)) is amended by striking ‘‘is 65 years of age or older,’’

and inserting ‘‘has attained retirement age.’’.

(b) RETIREMENT AGE DEFINED.—Section 1614 (42 U.S.C. 1382c)

is amended by adding at the end the following new subsection:

‘‘Retirement Age

‘‘(g) For purposes of this title, the term ‘‘retirement age’’ has

the meaning given such term by section 216(l)(1).’’.

(c) CONFORMING AMENDMENTS.—Sections 1601, 1612(b)(4),

1615(a)(1), and 1620(b)(2) (42 U.S.C. 1381, 1382a(b)(4), 1382d(a)(1),

and 1382i(b)(2)) are amended by striking ‘‘age 65’’ each place it

appears and inserting ‘‘retirement age’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply to applicants for benefits for months beginning after

September 30, 1995.

TITLE III—CHILD SUPPORT

SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

Except as otherwise specifically provided, where ever in this

title an amendment is expressed in terms of an amendment to

or repeal of a section or other provision, the reference shall be

considered to be made to that section or other provision of the

Social Security Act.

Subtitle A—Eligibility for Services;

Distribution of Payments

SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT SERVICES.

(a) STATE PLAN REQUIREMENTS.—Section 454 (42 U.S.C. 654)

is amended—

(1) by striking paragraph (4) and inserting the following

new paragraph:
H. R. 4—82

‘‘(4) provide that the State will—

‘‘(A) provide services relating to the establishment of

paternity or the establishment, modification, or enforcement of child support obligations, as appropriate, under

the plan with respect to—

‘‘(i) each child for whom (I) assistance is provided

under the State program funded under part A of this

title, (II) benefits or services for foster care maintenance and adoption assistance are provided under the

State program funded under part B of this title, or

(III) medical assistance is provided under the State

plan approved under title XIX, unless the State agency

administering the plan determines (in accordance with

paragraph (29)) that it is against the best interests

of the child to do so; and

‘‘(ii) any other child, if an individual applies for

such services with respect to the child; and

‘‘(B) enforce any support obligation established with

respect to—

‘‘(i) a child with respect to whom the State provides

services under the plan; or

‘‘(ii) the custodial parent of such a child.’’; and

(2) in paragraph (6)—

(A) by striking ‘‘provide that’’ and inserting ‘‘provide

that—’’;

(B) by striking subparagraph (A) and inserting the

following new subparagraph:

‘‘(A) services under the plan shall be made available

to residents of other States on the same terms as to residents of the State submitting the plan;’’; (C) in subparagraph (B), by inserting ‘‘on individuals

not receiving assistance under any State program funded

under part A’’ after ‘‘such services shall be imposed’’;

(D) in each of subparagraphs (B), (C), (D), and (E)— (i) by indenting the subparagraph in the same

manner as, and aligning the left margin of the subparagraph with the left margin of, the matter inserted

by subparagraph (B) of this paragraph; and (ii) by striking the final comma and inserting a

semicolon; and

(E) in subparagraph (E), by indenting each of clauses (i) and (ii) 2 additional ems.

(b) CONTINUATION OF SERVICES FOR FAMILIES CEASING TO

RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER

PART A.—Section 454 (42 U.S.C. 654) is amended—

(1) by striking ‘‘and’’ at the end of paragraph (23);

(2) by striking the period at the end of paragraph (24)

and inserting ‘‘; and’’; and

(3) by adding after paragraph (24) the following new paragraph:

‘‘(25) provide that if a family with respect to which services

are provided under the plan ceases to receive assistance under

the State program funded under part A, the State shall provide

appropriate notice to the family and continue to provide such

services, subject to the same conditions and on the same basis

as in the case of other individuals to whom services are furnished under the plan, except that an application or other
H. R. 4—83

request to continue services shall not be required of such a

family and paragraph (6)(B) shall not apply to the family.’’.

(c) CONFORMING AMENDMENTS.—

(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking

‘‘454(6)’’ and inserting ‘‘454(4)’’.

(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended

by striking ‘‘454(6)’’ each place it appears and inserting

‘‘454(4)(A)(ii)’’.

(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended

by striking ‘‘in the case of overdue support which a State

has agreed to collect under section 454(6)’’ and inserting ‘‘in

any other case’’.

(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking

‘‘paragraph (4) or (6) of section 454’’ and inserting ‘‘section

454(4)’’.

SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is amended to

read as follows:

‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

‘‘(a) IN GENERAL.—An amount collected on behalf of a family

as support by a State pursuant to a plan approved under this

part shall be distributed as follows:

‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the case of a

family receiving assistance from the State, the State shall—

‘‘(A) pay to the Federal Government the Federal share

of the amount so collected; and

‘‘(B) retain, or distribute to the family, the State share

of the amount so collected.

‘‘(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In

the case of a family that formerly received assistance from

the State:

‘‘(A) CURRENT SUPPORT PAYMENTS.—To the extent that

the amount so collected does not exceed the amount

required to be paid to the family for the month in which

collected, the State shall distribute the amount so collected

to the family. ‘‘(B) PAYMENTS OF ARREARAGES.—To the extent that

the amount so collected exceeds the amount required to

be paid to the family for the month in which collected,

the State shall distribute the amount so collected as follows:

‘‘(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED

AFTER THE FAMILY CEASED TO RECEIVE ASSISTANCE.— ‘‘(I) PRE-OCTOBER 1997.—The provisions of this

section (other than subsection (b)(1)) as in effect

and applied on the day before the date of the

enactment of section 302 of the Personal Responsibility and Work Opportunity Act of 1995 shall

apply with respect to the distribution of support

arrearages that—

‘‘(aa) accrued after the family ceased to

receive assistance, and

‘‘(bb) are collected before October 1, 1997.

‘‘(II) POST-SEPTEMBER 1997.—With respect the

amount so collected on or after October 1, 1997,

or before such date, at the option of the State—
H. R. 4—84

‘‘(aa) IN GENERAL.—The State shall first

distribute the amount so collected (other than

any amount described in clause (iv)) to the

family to the extent necessary to satisfy any

support arrearages with respect to the family

that accrued after the family ceased to receive

assistance from the State.

‘‘(bb) REIMBURSEMENT OF GOVERNMENTS

FOR ASSISTANCE PROVIDED TO THE FAMILY.—

After the application of division (aa) and

clause (ii)(II)(aa) with respect to the amount

so collected, the State shall retain the State

share of the amount so collected, and pay to

the Federal Government the Federal share (as

defined in subsection (c)(2)(A)) of the amount

so collected, but only to the extent necessary

to reimburse amounts paid to the family as

assistance by the State.

‘‘(cc) DISTRIBUTION OF THE REMAINDER TO

THE FAMILY.—To the extent that neither division (aa) nor division (bb) applies to the

amount so collected, the State shall distribute

the amount to the family.

‘‘(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED

BEFORE THE FAMILY RECEIVED ASSISTANCE.—

‘‘(I) PRE-OCTOBER 2000.—The provisions of this

section (other than subsection (b)(1)) as in effect

and applied on the day before the date of the

enactment of section 302 of the Personal Responsibility and Work Opportunity Act of 1995 shall

apply with respect to the distribution of support

arrearages that—

‘‘(aa) accrued before the family received

assistance, and

‘‘(bb) are collected before October 1, 2000.

‘‘(II) POST-SEPTEMBER 2000.—Unless, based on

the report required by paragraph (4), the Congress

determines otherwise, with respect to the amount

so collected on or after October 1, 2000, or before

such date, at the option of the State—

‘‘(aa) IN GENERAL.—The State shall first

distribute the amount so collected (other than

any amount described in clause (iv)) to the

family to the extent necessary to satisfy any

support arrearages with respect to the family

that accrued before the family received assistance from the State.

‘‘(bb) REIMBURSEMENT OF GOVERNMENTS

FOR ASSISTANCE PROVIDED TO THE FAMILY.—

After the application of clause (i)(II)(aa) and

division (aa) with respect to the amount so

collected, the State shall retain the State share

of the amount so collected, and pay to the

Federal Government the Federal share (as

defined in subsection (c)(2)) of the amount so

collected, but only to the extent necessary to
H. R. 4—85

reimburse of the amounts paid to the family

as assistance by the State.

‘‘(cc) DISTRIBUTION OF THE REMAINDER TO

THE FAMILY.—To the extent that neither division (aa) nor division (bb) applies to the

amount so collected, the State shall distribute

the amount to the family.

‘‘(iii) DISTRIBUTION OF ARREARAGES THAT ACCRUED

WHILE THE FAMILY RECEIVED ASSISTANCE.—In the case

of a family described in this subparagraph, the provisions of paragraph (1) shall apply with respect to the

distribution of support arrearages that accrued while

the family received assistance.

‘‘(iv) AMOUNTS COLLECTED PURSUANT TO SECTION

464.—Notwithstanding any other provision of this section, any amount of support collected pursuant to section 464 shall be retained by the State to the extent

necessary to reimburse amounts paid to the family

as assistance by the State. The State shall pay to

the Federal Government the Federal share of the

amounts so retained. To the extent the amount collected pursuant to section 464 exceeds the amount

so retained, the State shall distribute the excess to

the family.

‘‘(v) ORDERING RULES FOR DISTRIBUTIONS.—For

purposes of this subparagraph, the State shall treat

any support arrearages collected as accruing in the

following order:

‘‘(I) to the period after the family ceased to

receive assistance;

‘‘(II) to the period before the family received

assistance; and

‘‘(III) to the period while the family was receiving assistance.

‘‘(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the

case of any other family, the State shall distribute the amount

so collected to the family.

‘‘(4) STUDY AND REPORT.—Not later than October 1, 1998,

the Secretary shall report to the Congress the Secretary’s findings with respect to—

‘‘(A) whether the distribution of post-assistance arrearages to families has been effective in moving people off

of welfare and keeping them off of welfare;

‘‘(B) whether early implementation of a pre-assistance

arrearage program by some states has been effective in

moving people off of welfare and keeping them off of welfare;

‘‘(C) what the overall impact has been of the amendments made by the Personal Responsibility and Work

Opportunity Act of 1995 with respect to child support

enforcement in moving people off of welfare and keeping

them off of welfare; and

‘‘(D) based on the information and data the Secretary

has obtained, what changes, if any, should be made in

the policies related to the distribution of child support

arrearages.
H. R. 4—86

‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights to support

obligations, which were assigned to a State as a condition of receiving assistance from the State under part A and which were in

effect on the day before the date of the enactment of the Personal

Responsibility and Work Opportunity Act of 1995, shall remain

assigned after such date.

‘‘(c) DEFINITIONS.—As used in subsection (a):

‘‘(1) ASSISTANCE.—The term ‘assistance from the State’

means—

‘‘(A) assistance under the State program funded under

part A or under the State plan approved under part A

of this title (as in effect on the day before the date of

the enactment of the Personal Responsibility and Work

Opportunity Act of 1995); or

‘‘(B) benefits under the State plan approved under

part E of this title (as in effect on the day before the

date of the enactment of the Personal Responsibility and

Work Opportunity Act of 1995).

‘‘(2) FEDERAL SHARE.—The term ‘Federal share’ means that

portion of the amount collected resulting from the application

of the Federal medical percentage in effect for the fiscal year

in which the amount is collected.

‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE.—The term

‘Federal medical assistance percentage’ means—

‘‘(A) the Federal medical assistance percentage (as

defined in section 1118), in the case of Puerto Rico, the

Virgin Islands, Guam, and American Samoa; or

‘‘(B) the Federal medical assistance percentage (as

defined in section 1905(b)) in the case of any other State.

‘‘(4) STATE SHARE.—The term ‘State share’ means 100 percent minus the Federal share.

‘‘(d) HOLD HARMLESS PROVISION.—If the amounts collected

which could be retained by the State in the fiscal year (to the

extent necessary to reimburse the State for amounts paid to families

as assistance by the State) are less than the State share of the

amounts collected in fiscal year 1995 (determined in accordance

with section 457 as in effect on the day before the date of the

enactment of the Personal Responsibility and Work Opportunity

Act of 1995), the State share for the fiscal year shall be an amount

equal to the State share in fiscal year 1995.’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by

striking ‘‘section 457(b)(4) or (d)(3)’’ and inserting ‘‘section 457’’.

(2) Section 454 (42 U.S.C. 654) is amended—

(A) in paragraph (11)—

(i) by striking ‘‘(11)’’ and inserting ‘‘(11)(A)’’; and

(ii) by inserting after the semicolon ‘‘and’’; and

(B) by redesignating paragraph (12) as subparagraph

(B) of paragraph (11).

(c) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as provided in paragraph (2),

the amendments made by this section shall be effective on

October 1, 1996, or earlier at the State’s option.

(2) CONFORMING AMENDMENTS.—The amendments made by

subsection (b)(2) shall become effective on the date of the enactment of this Act.
H. R. 4—87

SEC. 303. PRIVACY SAFEGUARDS.

(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),

as amended by section 301(b) of this Act, is amended—

(1) by striking ‘‘and’’ at the end of paragraph (24);

(2) by striking the period at the end of paragraph (25)

and inserting ‘‘; and’’; and

(3) by adding after paragraph (25) the following new paragraph:

‘‘(26) will have in effect safeguards, applicable to all confidential information handled by the State agency, that are

designed to protect the privacy rights of the parties, including—

‘‘(A) safeguards against unauthorized use or disclosure

of information relating to proceedings or actions to establish

paternity, or to establish or enforce support;

‘‘(B) prohibitions against the release of information

on the whereabouts of 1 party to another party against

whom a protective order with respect to the former party

has been entered; and

‘‘(C) prohibitions against the release of information

on the whereabouts of 1 party to another party if the

State has reason to believe that the release of the information may result in physical or emotional harm to the former

party.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall become effective on October 1, 1997.

SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as amended

by section 302(b)(2) of this Act, is amended by inserting after

paragraph (11) the following new paragraph:

‘‘(12) provide for the establishment of procedures to require

the State to provide individuals who are applying for or receiving services under the State plan, or who are parties to cases

in which services are being provided under the State plan—

‘‘(A) with notice of all proceedings in which support

obligations might be established or modified; and

‘‘(B) with a copy of any order establishing or modifying

a child support obligation, or (in the case of a petition

for modification) a notice of determination that there should

be no change in the amount of the child support award,

within 14 days after issuance of such order or determination;’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall become effective on October 1, 1997.

Subtitle B—Locate and Case Tracking

SEC. 311. STATE CASE REGISTRY.

Section 454A, as added by section 344(a)(2) of this Act, is

amended by adding at the end the following new subsections:

‘‘(e) STATE CASE REGISTRY.—

‘‘(1) CONTENTS.—The automated system required by this

section shall include a registry (which shall be known as the

‘State case registry’) that contains records with respect to—
H. R. 4—88

‘‘(A) each case in which services are being provided

by the State agency under the State plan approved under

this part; and

‘‘(B) each support order established or modified in the

State on or after October 1, 1998.

‘‘(2) LINKING OF LOCAL REGISTRIES.—The State case registry

may be established by linking local case registries of support

orders through an automated information network, subject to

this section.

‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records

shall use standardized data elements for both parents (such

as names, social security numbers and other uniform identification numbers, dates of birth, and case identification numbers),

and contain such other information (such as on-case status)

as the Secretary may require.

‘‘(4) PAYMENT RECORDS.—Each case record in the State

case registry with respect to which services are being provided

under the State plan approved under this part and with respect

to which a support order has been established shall include

a record of—

‘‘(A) the amount of monthly (or other periodic) support

owed under the order, and other amounts (including arrearages, interest or late payment penalties, and fees) due

or overdue under the order;

‘‘(B) any amount described in subparagraph (A) that

has been collected;

‘‘(C) the distribution of such collected amounts;

‘‘(D) the birth date of any child for whom the order

requires the provision of support; and

‘‘(E) the amount of any lien imposed with respect to

the order pursuant to section 466(a)(4).

‘‘(5) UPDATING AND MONITORING.—The State agency operating the automated system required by this section shall

promptly establish and maintain, and regularly monitor, case

records in the State case registry with respect to which services

are being provided under the State plan approved under this

part, on the basis of—

‘‘(A) information on administrative actions and

administrative and judicial proceedings and orders relating

to paternity and support;

‘‘(B) information obtained from comparison with Federal, State, or local sources of information;

‘‘(C) information on support collections and distributions; and

‘‘(D) any other relevant information.

‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF

INFORMATION.—The State shall use the automated system required

by this section to extract information from (at such times, and

in such standardized format or formats, as may be required by

the Secretary), to share and compare information with, and to

receive information from, other data bases and information comparison services, in order to obtain (or provide) information necessary

to enable the State agency (or the Secretary or other State or

Federal agencies) to carry out this part, subject to section 6103

of the Internal Revenue Code of 1986. Such information comparison

activities shall include the following:
H. R. 4—89

‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.— Furnishing to the Federal Case Registry of Child Support

Orders established under section 453(h) (and update as necessary, with information including notice of expiration of orders)

the minimum amount of information on child support cases

recorded in the State case registry that is necessary to operate

the registry (as specified by the Secretary in regulations). ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—Exchanging information with the Federal Parent Locator Service for the

purposes specified in section 453. ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MEDICAID AGEN- CIES.—Exchanging information with State agencies (of the State and of other States) administering programs funded under part

A, programs operated under State plans under title XIX, and

other programs designated by the Secretary, as necessary to

perform State agency responsibilities under this part and under

such programs. ‘‘(4) INTRASTATE AND INTERSTATE INFORMATION COMPARI- SONS.—Exchanging information with other agencies of the State, agencies of other States, and interstate information networks, as necessary and appropriate to carry out (or assist

other States to carry out) the purposes of this part.’’.

SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),

as amended by sections 301(b) and 303(a) of this Act, is amended— (1) by striking ‘‘and’’ at the end of paragraph (25);

(2) by striking the period at the end of paragraph (26) and inserting ‘‘; and’’; and (3) by adding after paragraph (26) the following new para- graph: ‘‘(27) provide that, on and after October 1, 1998, the State

agency will— ‘‘(A) operate a State disbursement unit in accordance

with section 454B; and

‘‘(B) have sufficient State staff (consisting of State employees) and (at State option) contractors reporting

directly to the State agency to— ‘‘(i) monitor and enforce support collections

through the unit in cases being enforced by the State

pursuant to section 454(4) (including carrying out the

automated data processing responsibilities described

in section 454A(g)); and ‘‘(ii) take the actions described in section 466(c)(1)

in appropriate cases.’’. (b) ESTABLISHMENT OF STATE DISBURSEMENT UNIT.—Part D

of title IV (42 U.S.C. 651–669), as amended by section 344(a)(2)

of this Act, is amended by inserting after section 454A the following

new section:

‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

‘‘(a) STATE DISBURSEMENT UNIT.—

‘‘(1) IN GENERAL.—In order for a State to meet the requirements of this section, the State agency must establish and

operate a unit (which shall be known as the ‘State disbursement

unit’) for the collection and disbursement of payments under

support orders—
H. R. 4—90

‘‘(A) in all cases being enforced by the State pursuant

to section 454(4); and

‘‘(B) in all cases not being enforced by the State under

this part in which the support order is initially issued

in the State on or after January 1, 1994, and in which

the wages of the absent parent are subject to withholding

pursuant to section 466(a)(8)(B).

‘‘(2) OPERATION.—The State disbursement unit shall be

operated—

‘‘(A) directly by the State agency (or 2 or more State

agencies under a regional cooperative agreement), or (to

the extent appropriate) by a contractor responsible directly

to the State agency; and

‘‘(B) except in cases described in paragraph (1)(B), in

coordination with the automated system established by

the State pursuant to section 454A.

‘‘(3) LINKING OF LOCAL DISBURSEMENT UNITS.—The State

disbursement unit may be established by linking local disbursement units through an automated information network, subject

to this section, if the Secretary agrees that the system will

not cost more nor take more time to establish or operate than

a centralized system. In addition, employers shall be given

1 location to which income withholding is sent.

‘‘(b) REQUIRED PROCEDURES.—The State disbursement unit

shall use automated procedures, electronic processes, and computerdriven technology to the maximum extent feasible, efficient, and

economical, for the collection and disbursement of support payments, including procedures— ‘‘(1) for receipt of payments from parents, employers, and

other States, and for disbursements to custodial parents and

other obligees, the State agency, and the agencies of other

States;

‘‘(2) for accurate identification of payments;

‘‘(3) to ensure prompt disbursement of the custodial parent’s

share of any payment; and ‘‘(4) to furnish to any parent, upon request, timely information on the current status of support payments under an order

requiring payments to be made by or to the parent.

‘‘(c) TIMING OF DISBURSEMENTS.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

the State disbursement unit shall distribute all amounts payable under section 457(a) within 2 business days after receipt

from the employer or other source of periodic income, if sufficient information identifying the payee is provided. ‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—The State

disbursement unit may delay the distribution of collections

toward arrearages until the resolution of any timely appeal

with respect to such arrearages.

‘‘(d) BUSINESS DAY DEFINED.—As used in this section, the term

‘business day’ means a day on which State offices are open for

regular business.’’.

(c) USE OF AUTOMATED SYSTEM.—Section 454A, as added by

section 344(a)(2) and as amended by section 311 of this Act, is

amended by adding at the end the following new subsection:

‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS.—

‘‘(1) IN GENERAL.—The State shall use the automated system required by this section, to the maximum extent feasible,
H. R. 4—91

to assist and facilitate the collection and disbursement of support payments through the State disbursement unit operated

under section 454B, through the performance of functions,

including, at a minimum— ‘‘(A) transmission of orders and notices to employers (and other debtors) for the withholding of wages and other

income—

‘‘(i) within 2 business days after receipt from a court, another State, an employer, the Federal Parent

Locator Service, or another source recognized by the

State of notice of, and the income source subject to,

such withholding; and ‘‘(ii) using uniform formats prescribed by the Secretary;

‘‘(B) ongoing monitoring to promptly identify failures to make timely payment of support; and ‘‘(C) automatic use of enforcement procedures (includ- ing procedures authorized pursuant to section 466(c)) if

payments are not timely made.

‘‘(2) BUSINESS DAY DEFINED.—As used in paragraph (1), the term ‘business day’ means a day on which State offices

are open for regular business.’’.

(d) EFFECTIVE DATE.—The amendments made by this section shall become effective on October 1, 1998.

SEC. 313. STATE DIRECTORY OF NEW HIRES.

(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),

as amended by sections 301(b), 303(a) and 312(a) of this Act, is

amended—

(1) by striking ‘‘and’’ at the end of paragraph (26);

(2) by striking the period at the end of paragraph (27) and inserting ‘‘; and’’; and (3) by adding after paragraph (27) the following new para- graph: ‘‘(28) provide that, on and after October 1, 1997, the State

will operate a State Directory of New Hires in accordance

with section 453A.’’.

(b) STATE DIRECTORY OF NEW HIRES.—Part D of title IV (42

U.S.C. 651–669) is amended by inserting after section 453 the

following new section:

‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

‘‘(a) ESTABLISHMENT.— ‘‘(1) IN GENERAL.— ‘‘(A) REQUIREMENT FOR STATES THAT HAVE NO DIREC- TORY.—Except as provided in subparagraph (B), not later than October 1, 1997, each State shall establish an automated directory (to be known as the ‘State Directory of

New Hires’) which shall contain information supplied in

accordance with subsection (b) by employers on each newly

hired employee.

‘‘(B) STATES WITH NEW HIRE REPORTING IN EXISTENCE.—

A State which has a new hire reporting law in existence

on the date of the enactment of this section may continue

to operate under the State law, but the State must meet

the requirements of this section (other than subsection

(f)) not later than October 1, 1997.

‘‘(2) DEFINITIONS.—As used in this section:
H. R. 4—92

‘‘(A) EMPLOYEE.—The term ‘employee’—

‘‘(i) means an individual who is an employee within

the meaning of chapter 24 of the Internal Revenue

Code of 1986; and

‘‘(ii) does not include an employee of a Federal

or State agency performing intelligence or counterintelligence functions, if the head of such agency has determined that reporting pursuant to paragraph (1) with

respect to the employee could endanger the safety of

the employee or compromise an ongoing investigation

or intelligence mission.

‘‘(B) EMPLOYER.—

‘‘(i) IN GENERAL.—The term ‘employer’ has the

meaning given such term in section 3401(d) of the

Internal Revenue Code of 1996 and includes any

governmental entity and any labor organization.

‘‘(ii) LABOR ORGANIZATION.—The term ‘labor

organization’ shall have the meaning given such term

in section 2(5) of the National Labor Relations Act,

and includes any entity (also known as a ‘hiring hall’)

which is used by the organization and an employer

to carry out requirements described in section 8(f)(3)

of such Act of an agreement between the organization

and the employer.

‘‘(b) EMPLOYER INFORMATION.—

‘‘(1) REPORTING REQUIREMENT.—

‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), each employer shall furnish to the

Directory of New Hires of the State in which a newly

hired employee works, a report that contains the name,

address, and social security number of the employee, and

the name and address of, and identifying number assigned

under section 6109 of the Internal Revenue Code of 1986

to, the employer. ‘‘(B) MULTISTATE EMPLOYERS.—An employer that has

employees who are employed in 2 or more States and

that transmits reports magnetically or electronically may

comply with subparagraph (A) by designating 1 State in

which such employer has employees to which the employer

will transmit the report described in subparagraph (A),

and transmitting such report to such State. Any employer

that transmits reports pursuant to this subparagraph shall

notify the Secretary in writing as to which State such

employer designates for the purpose of sending reports. ‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—Any department, agency, or instrumentality of the United States shall

comply with subparagraph (A) by transmitting the report

described in subparagraph (A) to the National Directory

of New Hires established pursuant to section 453.

‘‘(2) TIMING OF REPORT.—Each State may provide the time

within which the report required by paragraph (1) shall be

made with respect to an employee, but such report shall be

made—

‘‘(A) not later than 20 days after the date the employer

hires the employee; or

‘‘(B) in the case of an employer transmitting reports

magnetically or electronically, by 2 monthly transmissions
H. R. 4—93

(if necessary) not less than 12 days nor more than 16

days apart.

‘‘(c) REPORTING FORMAT AND METHOD.—Each report required

by subsection (b) shall be made on a W–4 form or, at the option

of the employer, an equivalent form, and may be transmitted by

1st class mail, magnetically, or electronically.

‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.—

The State shall have the option to set a State civil money penalty

which shall be less than—

‘‘(1) $25; or

‘‘(2) $500 if, under State law, the failure is the result

of a conspiracy between the employer and the employee to

not supply the required report or to supply a false or incomplete

report.

‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be

entered into the data base maintained by the State Directory of

New Hires within 5 business days of receipt from an employer

pursuant to subsection (b).

‘‘(f) INFORMATION COMPARISONS.—

‘‘(1) IN GENERAL.—Not later than May 1, 1998, an agency

designated by the State shall, directly or by contract, conduct

automated comparisons of the social security numbers reported

by employers pursuant to subsection (b) and the social security

numbers appearing in the records of the State case registry

for cases being enforced under the State plan.

‘‘(2) NOTICE OF MATCH.—When an information comparison

conducted under paragraph (1) reveals a match with respect

to the social security number of an individual required to provide support under a support order, the State Directory of

New Hires shall provide the agency administering the State

plan approved under this part of the appropriate State with

the name, address, and social security number of the employee

to whom the social security number is assigned, and the name

of, and identifying number assigned under section 6109 of

the Internal Revenue Code of 1986 to the employer.

‘‘(g) TRANSMISSION OF INFORMATION.— ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NOTICES TO

EMPLOYERS.—Within 2 business days after the date information

regarding a newly hired employee is entered into the State

Directory of New Hires, the State agency enforcing the employee’s child support obligation shall transmit a notice to the

employer of the employee directing the employer to withhold

from the wages of the employee an amount equal to the monthly

(or other periodic) child support obligation (including any past

due support obligation) of the employee, unless the employee’s

wages are not subject to withholding pursuant to section

466(b)(3).

‘‘(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW

HIRES.—

‘‘(A) NEW HIRE INFORMATION.—Within 3 business days

after the date information regarding a newly hired

employee is entered into the State Directory of New Hires,

the State Directory of New Hires shall furnish the information to the National Directory of New Hires.

‘‘(B) WAGE AND UNEMPLOYMENT COMPENSATION

INFORMATION.—The State Directory of New Hires shall,

on a quarterly basis, furnish to the National Directory
H. R. 4—94

of New Hires extracts of the reports required under section

303(a)(6) to be made to the Secretary of Labor concerning

the wages and unemployment compensation paid to individuals, by such dates, in such format, and containing such

information as the Secretary of Health and Human Services

shall specify in regulations.

‘‘(3) BUSINESS DAY DEFINED.—As used in this subsection,

the term ‘business day’ means a day on which State offices

are open for regular business.

‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency

administering the State plan approved under this part shall

use information received pursuant to subsection (f)(2) to locate

individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations.

‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.—

A State agency responsible for administering a program specified in section 1137(b) shall have access to information reported

by employers pursuant to subsection (b) of this section for

purposes of verifying eligibility for the program.

‘‘(3) ADMINISTRATION OF EMPLOYMENT SECURITY AND WORKERS’ COMPENSATION.—State agencies operating employment

security and workers’ compensation programs shall have access

to information reported by employers pursuant to subsection

(b) for the purposes of administering such programs.’’.

(c) QUARTERLY WAGE REPORTING.—Section 1137(a)(3) (42

U.S.C. 1320b–7(a)(3)) is amended—

(1) by inserting ‘‘(including State and local governmental entities and labor organizations (as defined in section

453A(a)(2)(B)(iii))’’ after ‘‘employers’’; and (2) by inserting ‘‘, and except that no report shall be filed

with respect to an employee of a State or local agency performing intelligence or counterintelligence functions, if the head

of such agency has determined that filing such a report could

endanger the safety of the employee or compromise an ongoing

investigation or intelligence mission’’ after ‘‘paragraph (2)’’.

SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

(a) MANDATORY INCOME WITHHOLDING.— (1) IN GENERAL.—Section 466(a)(1) (42 U.S.C. 666(a)(1))

is amended to read as follows:

‘‘(1)(A) Procedures described in subsection (b) for the

withholding from income of amounts payable as support in

cases subject to enforcement under the State plan. ‘‘(B) Procedures under which the wages of a person with

a support obligation imposed by a support order issued (or

modified) in the State before October 1, 1996, if not otherwise

subject to withholding under subsection (b), shall become subject to withholding as provided in subsection (b) if arrearages

occur, without the need for a judicial or administrative hearing.’’.

(2) CONFORMING AMENDMENTS.—

(A) Section 466(b) (42 U.S.C. 666(b)) is amended in

the matter preceding paragraph (1), by striking ‘‘subsection

(a)(1)’’ and inserting ‘‘subsection (a)(1)(A)’’.

(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended

to read as follows:
H. R. 4—95

‘‘(4)(A) Such withholding must be carried out in full compliance with all procedural due process requirements of the State,

and the State must send notice to each noncustodial parent

to whom paragraph (1) applies—

‘‘(i) that the withholding has commenced; and

‘‘(ii) of the procedures to follow if the noncustodial

parent desires to contest such withholding on the grounds

that the withholding or the amount withheld is improper

due to a mistake of fact.

‘‘(B) The notice under subparagraph (A) of this paragraph

shall include the information provided to the employer under

paragraph (6)(A).’’.

(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended

by striking all that follows ‘‘administered by’’ and inserting

‘‘the State through the State disbursement unit established

pursuant to section 454B, in accordance with the requirements of section 454B.’’.

(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is

amended—

(i) in clause (i), by striking ‘‘to the appropriate

agency’’ and all that follows and inserting ‘‘to the State

disbursement unit within 2 business days after the

date the amount would (but for this subsection) have

been paid or credited to the employee, for distribution

in accordance with this part. The employer shall comply with the procedural rules relating to income

withholding of the State in which the employee works,

regardless of the State where the notice originates.’’.

(ii) in clause (ii), by inserting ‘‘be in a standard

format prescribed by the Secretary, and’’ after ‘‘shall’’;

and

(iii) by adding at the end the following new clause:

‘‘(iii) As used in this subparagraph, the term ‘business

day’ means a day on which State offices are open for regular

business.’’.

(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is

amended by striking ‘‘any employer’’ and all that follows

and inserting ‘‘any employer who—

‘‘(i) discharges from employment, refuses to employ,

or takes disciplinary action against any noncustodial parent

subject to wage withholding required by this subsection

because of the existence of such withholding and the obligations or additional obligations which it imposes upon the

employer; or

‘‘(ii) fails to withhold support from wages, or to pay

such amounts to the State disbursement unit in accordance

with this subsection.’’.

(F) Section 466(b) (42 U.S.C. 666(b)) is amended by

adding at the end the following new paragraph:

‘‘(11) Procedures under which the agency administering

the State plan approved under this part may execute a

withholding order without advance notice to the obligor, including issuing the withholding order through electronic means.’’.

(b) CONFORMING AMENDMENT.—Section 466(c) (42 U.S.C. 666(c))

is repealed.
H. R. 4—96

SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

Section 466(a) (42 U.S.C. 666(a)) is amended by adding at

the end the following new paragraph: ‘‘(12) LOCATOR INFORMATION FROM INTERSTATE NET- WORKS.—Procedures to ensure that all Federal and State agencies conducting activities under this part have access to any

system used by the State to locate an individual for purposes

relating to motor vehicles or law enforcement.’’.

SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS AND

ASSETS.—Section 453 (42 U.S.C. 653) is amended—

(1) in subsection (a), by striking all that follows ‘‘subsection

(c))’’ and inserting ‘‘, for the purpose of establishing parentage,

establishing, setting the amount of, modifying, or enforcing

child support obligations, or enforcing child custody or visitation

orders—

‘‘(1) information on, or facilitating the discovery of, the

location of any individual—

‘‘(A) who is under an obligation to pay child support

or provide child custody or visitation rights;

‘‘(B) against whom such an obligation is sought;

‘‘(C) to whom such an obligation is owed,

including the individual’s social security number (or numbers),

most recent address, and the name, address, and employer

identification number of the individual’s employer;

‘‘(2) information on the individual’s wages (or other income)

from, and benefits of, employment (including rights to or enrollment in group health care coverage); and ‘‘(3) information on the type, status, location, and amount

of any assets of, or debts owed by or to, any such individual.’’;

and

(2) in subsection (b)—

(A) in the matter preceding paragraph (1), by striking

‘‘social security’’ and all that follows through ‘‘absent parent’’ and inserting ‘‘information described in subsection

(a)’’; and

(B) in the flush paragraph at the end, by adding the

following: ‘‘No information shall be disclosed to any person

if the State has notified the Secretary that the State has

reasonable evidence of domestic violence or child abuse

and the disclosure of such information could be harmful

to the custodial parent or the child of such parent. Information received or transmitted pursuant to this section shall

be subject to the safeguard provisions contained in section

454(26).’’.

(b) AUTHORIZED PERSON FOR INFORMATION REGARDING VISITATION RIGHTS.—Section 453(c) (42 U.S.C. 653(c)) is amended—

(1) in paragraph (1), by striking ‘‘support’’ and inserting

‘‘support or to seek to enforce orders providing child custody

or visitation rights’’; and

(2) in paragraph (2), by striking ‘‘, or any agent of such

court; and’’ and inserting ‘‘or to issue an order against a resident

parent for child custody or visitation rights, or any agent of

such court;’’.

(c) REIMBURSEMENT FOR INFORMATION FROM FEDERAL AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the
H. R. 4—97

4th sentence by inserting ‘‘in an amount which the Secretary determines to be reasonable payment for the information exchange

(which amount shall not include payment for the costs of obtaining,

compiling, or maintaining the information)’’ before the period.

(d) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—Section

453 (42 U.S.C. 653) is amended by adding at the end the following

new subsection:

‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—The

Secretary may reimburse Federal and State agencies for the costs

incurred by such entities in furnishing information requested by

the Secretary under this section in an amount which the Secretary

determines to be reasonable payment for the information exchange

(which amount shall not include payment for the costs of obtaining,

compiling, or maintaining the information).’’.

(e) CONFORMING AMENDMENTS.—

(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and

463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and

663(f)) are each amended by inserting ‘‘Federal’’ before ‘‘Parent’’

each place such term appears.

(2) Section 453 (42 U.S.C. 653) is amended in the heading

by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.

(f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653), as amended by subsection (d) of this section, is amended by adding at

the end the following new subsections:

‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—

‘‘(1) IN GENERAL.—Not later than October 1, 1998, in order

to assist States in administering programs under State plans

approved under this part and programs funded under part

A, and for the other purposes specified in this section, the

Secretary shall establish and maintain in the Federal Parent

Locator Service an automated registry (which shall be known

as the ‘Federal Case Registry of Child Support Orders’), which

shall contain abstracts of support orders and other information

described in paragraph (2) with respect to each case in each

State case registry maintained pursuant to section 454A(e),

as furnished (and regularly updated), pursuant to section

454A(f), by State agencies administering programs under this

part.

‘‘(2) CASE INFORMATION.—The information referred to in

paragraph (1) with respect to a case shall be such information

as the Secretary may specify in regulations (including the

names, social security numbers or other uniform identification

numbers, and State case identification numbers) to identify

the individuals who owe or are owed support (or with respect

to or on behalf of whom support obligations are sought to

be established), and the State or States which have the case.

‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

‘‘(1) IN GENERAL.—In order to assist States in administering

programs under State plans approved under this part and

programs funded under part A, and for the other purposes

specified in this section, the Secretary shall, not later than

October 1, 1996, establish and maintain in the Federal Parent

Locator Service an automated directory to be known as the

National Directory of New Hires, which shall contain the

information supplied pursuant to section 453A(g)(2).

‘‘(2) ENTRY OF DATA.—Information shall be entered into

the data base maintained by the National Directory of New
H. R. 4—98

Hires within 2 business days of receipt pursuant to section

453A(g)(2).

‘‘(3) ADMINISTRATION OF FEDERAL TAX LAWS.—The Secretary

of the Treasury shall have access to the information in the

National Directory of New Hires for purposes of administering

section 32 of the Internal Revenue Code of 1986, or the advance

payment of the earned income tax credit under section 3507

of such Code, and verifying a claim with respect to employment

in a tax return.

‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The Secretary shall

maintain within the National Directory of New Hires a list

of multistate employers that report information regarding

newly hired employees pursuant to section 453A(b)(1)(B), and

the State which each such employer has designated to receive

such information.

‘‘(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES.—

‘‘(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION.—

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

information on individuals and employers maintained

under this section to the Social Security Administration

to the extent necessary for verification in accordance with

subparagraph (B).

‘‘(B) VERIFICATION BY SSA.—The Social Security

Administration shall verify the accuracy of, correct, or supply to the extent possible, and report to the Secretary,

the following information supplied by the Secretary pursuant to subparagraph (A):

‘‘(i) The name, social security number, and birth

date of each such individual.

‘‘(ii) The employer identification number of each

such employer. ‘‘(2) INFORMATION COMPARISONS.—For the purpose of locating individuals in a paternity establishment case or a case

involving the establishment, modification, or enforcement of

a support order, the Secretary shall— ‘‘(A) compare information in the National Directory

of New Hires against information in the support case

abstracts in the Federal Case Registry of Child Support

Orders not less often than every 2 business days; and ‘‘(B) within 2 such days after such a comparison reveals

a match with respect to an individual, report the information to the State agency responsible for the case.

‘‘(3) INFORMATION COMPARISONS AND DISCLOSURES OF

INFORMATION IN ALL REGISTRIES FOR TITLE IV PROGRAM PUR- POSES.—To the extent and with the frequency that the Secretary determines to be effective in assisting States to carry

out their responsibilities under programs operated under this

part and programs funded under part A, the Secretary shall—

‘‘(A) compare the information in each component of

the Federal Parent Locator Service maintained under this

section against the information in each other such component (other than the comparison required by paragraph

(2)), and report instances in which such a comparison

reveals a match with respect to an individual to State

agencies operating such programs; and

‘‘(B) disclose information in such registries to such

State agencies.
H. R. 4—99

‘‘(4) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL

SECURITY ADMINISTRATION.—The National Directory of New

Hires shall provide the Commissioner of Social Security with

all information in the National Directory, which shall be used

to determine the accuracy of payments under the supplemental

security income program under title XVI and in connection

with benefits under title II.

‘‘(5) RESEARCH.—The Secretary may provide access to

information reported by employers pursuant to section 453A(b)

for research purposes found by the Secretary to be likely to

contribute to achieving the purposes of part A or this part,

but without personal identifiers.

‘‘(k) FEES.—

‘‘(1) FOR SSA VERIFICATION.—The Secretary shall reimburse

the Commissioner of Social Security, at a rate negotiated

between the Secretary and the Commissioner, for the costs

incurred by the Commissioner in performing the verification

services described in subsection (j).

‘‘(2) FOR INFORMATION FROM STATE DIRECTORIES OF NEW

HIRES.—The Secretary shall reimburse costs incurred by State

directories of new hires in furnishing information as required

by subsection (j)(3), at rates which the Secretary determines

to be reasonable (which rates shall not include payment for

the costs of obtaining, compiling, or maintaining such information).

‘‘(3) FOR INFORMATION FURNISHED TO STATE AND FEDERAL

AGENCIES.—A State or Federal agency that receives information

from the Secretary pursuant to this section shall reimburse

the Secretary for costs incurred by the Secretary in furnishing

the information, at rates which the Secretary determines to

be reasonable (which rates shall include payment for the costs

of obtaining, verifying, maintaining, and comparing the

information).

‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Information in the

Federal Parent Locator Service, and information resulting from

comparisons using such information, shall not be used or disclosed

except as expressly provided in this section, subject to section

6103 of the Internal Revenue Code of 1986.

‘‘(m) INFORMATION INTEGRITY AND SECURITY.—The Secretary

shall establish and implement safeguards with respect to the entities established under this section designed to— ‘‘(1) ensure the accuracy and completeness of information

in the Federal Parent Locator Service; and

‘‘(2) restrict access to confidential information in the Federal Parent Locator Service to authorized persons, and restrict

use of such information to authorized purposes.

‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each department,

agency, and instrumentality of the United States shall on a quarterly basis report to the Federal Parent Locator Service the name

and social security number of each employee and the wages paid

to the employee during the previous quarter, except that such

a report shall not be filed with respect to an employee of a department, agency, or instrumentality performing intelligence or counterintelligence functions, if the head of such department, agency, or

instrumentality has determined that filing such a report could

endanger the safety of the employee or compromise an ongoing

investigation or intelligence mission.’’.
H. R. 4—100

(g) CONFORMING AMENDMENTS.—

(1) TO PART D OF TITLE IV OF THE SOCIAL SECURITY ACT.—

(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended

to read as follows:

‘‘(B) the Federal Parent Locator Service established

under section 453;’’.

(B) Section 454(13) (42 U.S.C.654(13)) is amended by

inserting ‘‘and provide that information requests by parents

who are residents of other States be treated with the same

priority as requests by parents who are residents of the

State submitting the plan’’ before the semicolon.

(2) TO FEDERAL UNEMPLOYMENT TAX ACT.—Section

3304(a)(16) of the Internal Revenue Code of 1986 is amended—

(A) by striking ‘‘Secretary of Health, Education, and

Welfare’’ each place such term appears and inserting ‘‘Secretary of Health and Human Services’’;

(B) in subparagraph (B), by striking ‘‘such information’’

and all that follows and inserting ‘‘information furnished

under subparagraph (A) or (B) is used only for the purposes

authorized under such subparagraph;’’;

(C) by striking ‘‘and’’ at the end of subparagraph (A);

(D) by redesignating subparagraph (B) as subparagraph (C); and

(E) by inserting after subparagraph (A) the following

new subparagraph:

‘‘(B) wage and unemployment compensation information contained in the records of such agency shall be furnished to the Secretary of Health and Human Services

(in accordance with regulations promulgated by such Secretary) as necessary for the purposes of the National Directory of New Hires established under section 453(i) of the

Social Security Act, and’’.

(3) TO STATE GRANT PROGRAM UNDER TITLE III OF THE

SOCIAL SECURITY ACT.—Subsection (h) of section 303 (42 U.S.C.

503) is amended to read as follows:

‘‘(h)(1) The State agency charged with the administration of

the State law shall, on a reimbursable basis—

‘‘(A) disclose quarterly, to the Secretary of Health and

Human Services, wage and claim information, as required

pursuant to section 453(i)(1), contained in the records of such

agency; ‘‘(B) ensure that information provided pursuant to subparagraph (A) meets such standards relating to correctness and

verification as the Secretary of Health and Human Services,

with the concurrence of the Secretary of Labor, may find necessary; and

‘‘(C) establish such safeguards as the Secretary of Labor

determines are necessary to insure that information disclosed

under subparagraph (A) is used only for purposes of section

453(i)(1) in carrying out the child support enforcement program

under title IV.

‘‘(2) Whenever the Secretary of Labor, after reasonable notice

and opportunity for hearing to the State agency charged with the

administration of the State law, finds that there is a failure to

comply substantially with the requirements of paragraph (1), the

Secretary of Labor shall notify such State agency that further

payments will not be made to the State until the Secretary of
H. R. 4—101

Labor is satisfied that there is no longer any such failure. Until

the Secretary of Labor is so satisfied, the Secretary shall make

no future certification to the Secretary of the Treasury with respect

to the State.

‘‘(3) For purposes of this subsection—

‘‘(A) the term ‘wage information’ means information regarding wages paid to an individual, the social security account

number of such individual, and the name, address, State, and

the Federal employer identification number of the employer

paying such wages to such individual; and

‘‘(B) the term ‘claim information’ means information regarding whether an individual is receiving, has received, or has

made application for, unemployment compensation, the amount

of any such compensation being received (or to be received

by such individual), and the individual’s current (or most

recent) home address.’’.

(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF

CHILD SUPPORT ENFORCEMENT AGENCIES.—

(A) IN GENERAL.—Paragraph (6) of section 6103(l) of

the Internal Revenue Code of 1986 (relating to disclosure

of return information to Federal, State, and local child

support enforcement agencies) is amended by redesignating

subparagraph (B) as subparagraph (C) and by inserting

after subparagraph (A) the following new subparagraph:

‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—The following

information disclosed to any child support enforcement

agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are

sought to be established or enforced may be disclosed by

such agency to any agent of such agency which is under

contract with such agency to carry out the purposes

described in subparagraph (C):

‘‘(i) The address and social security account number (or numbers) of such individual.

‘‘(ii) The amount of any reduction under section

6402(c) (relating to offset of past-due support against

overpayments) in any overpayment otherwise payable

to such individual.’’

(B) CONFORMING AMENDMENTS.—

(i) Paragraph (3) of section 6103(a) of such Code

is amended by striking ‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or (12) of subsection (l)’’.

(ii) Subparagraph (C) of section 6103(l)(6) of such

Code, as redesignated by subsection (a), is amended

to read as follows:

‘‘(C) RESTRICTION ON DISCLOSURE.—Information may

be disclosed under this paragraph only for purposes of,

and to the extent necessary in, establishing and collecting

child support obligations from, and locating, individuals

owing such obligations.’’

(iii) The material following subparagraph (F) of

section 6103(p)(4) of such Code is amended by striking

‘‘subsection (l)(12)(B)’’ and inserting ‘‘paragraph (6)(A)

or (12)(B) of subsection (l)’’.
H. R. 4—102

SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR

USE IN CHILD SUPPORT ENFORCEMENT.

(a) STATE LAW REQUIREMENT.—Section 466(a) (42 U.S.C.

666(a)), as amended by section 315 of this Act, is amended by

adding at the end the following new paragraph:

‘‘(13) RECORDING OF SOCIAL SECURITY NUMBERS IN CERTAIN

FAMILY MATTERS.—Procedures requiring that the social security

number of—

‘‘(A) any applicant for a professional license, commercial driver’s license, occupational license, or marriage

license be recorded on the application;

‘‘(B) any individual who is subject to a divorce decree,

support order, or paternity determination or acknowledgment be placed in the records relating to the matter; and

‘‘(C) any individual who has died be placed in the

records relating to the death and be recorded on the death

certificate.

For purposes of subparagraph (A), if a State allows the use

of a number other than the social security number, the State

shall so advise any applicants.’’.

(b) CONFORMING AMENDMENTS.—Section 205(c)(2)(C) (42 U.S.C.

405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security

Independence and Program Improvements Act of 1994, is

amended—

(1) in clause (i), by striking ‘‘may require’’ and inserting

‘‘shall require’’;

(2) in clause (ii), by inserting after the 1st sentence the

following: ‘‘In the administration of any law involving the issuance of a marriage certificate or license, each State shall require

each party named in the certificate or license to furnish to

the State (or political subdivision thereof), or any State agency

having administrative responsibility for the law involved, the

social security number of the party.’’;

(3) in clause (ii), by inserting ‘‘or marriage certificate’’ after

‘‘Such numbers shall not be recorded on the birth certificate’’.

(4) in clause (vi), by striking ‘‘may’’ and inserting ‘‘shall’’;

and

(5) by adding at the end the following new clauses:

‘‘(x) An agency of a State (or a political subdivision

thereof) charged with the administration of any law

concerning the issuance or renewal of a license, certificate, permit, or other authorization to engage in a

profession, an occupation, or a commercial activity

shall require all applicants for issuance or renewal

of the license, certificate, permit, or other authorization

to provide the applicant’s social security number to

the agency for the purpose of administering such laws,

and for the purpose of responding to requests for

information from an agency operating pursuant to part

D of title IV.

‘‘(xi) All divorce decrees, support orders, and paternity determinations issued, and all paternity acknowledgments made, in each State shall include the social

security number of each party to the decree, order,

determination, or acknowledgment in the records relating to the matter, for the purpose of responding to
H. R. 4—103

requests for information from an agency operating

pursuant to part D of title IV.’’.

Subtitle C—Streamlining and Uniformity

of Procedures

SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

Section 466 (42 U.S.C. 666) is amended by adding at the end the following new subsection: ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT ACT.— ‘‘(1) ENACTMENT AND USE.—In order to satisfy section 454(20)(A), on and after January 1, 1998, each State must

have in effect the Uniform Interstate Family Support Act, as

approved by the American Bar Association on February 9,

1993, together with any amendments officially adopted before

January 1, 1998 by the National Conference of Commissioners

on Uniform State Laws.

‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL RULES OF STATE

WHERE EMPLOYEE WORKS.—The State law enacted pursuant to paragraph (1) shall provide that an employer that receives

an income withholding order or notice pursuant to section 501

of the Uniform Interstate Family Support Act follow the procedural rules that apply with respect to such order or notice

under the laws of the State in which the obligor works.

SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD

SUPPORT ORDERS.

Section 1738B of title 28, United States Code, is amended—

(1) in subsection (a)(2), by striking ‘‘subsection (e)’’ and

inserting ‘‘subsections (e), (f), and (i)’’;

(2) in subsection (b), by inserting after the 2nd undesignated paragraph the following:

‘‘ ‘child’s home State’ means the State in which a child

lived with a parent or a person acting as parent for at least

6 consecutive months immediately preceding the time of filing

of a petition or comparable pleading for support and, if a

child is less than 6 months old, the State in which the child

lived from birth with any of them. A period of temporary

absence of any of them is counted as part of the 6-month

period.’’;

(3) in subsection (c), by inserting ‘‘by a court of a State’’

before ‘‘is made’’;

(4) in subsection (c)(1), by inserting ‘‘and subsections (e), (f), and (g)’’ after ‘‘located’’; (5) in subsection (d)—

(A) by inserting ‘‘individual’’ before ‘‘contestant’’; and

(B) by striking ‘‘subsection (e)’’ and inserting ‘‘sub- sections (e) and (f)’’;

(6) in subsection (e), by striking ‘‘make a modification of

a child support order with respect to a child that is made’’

and inserting ‘‘modify a child support order issued’’; (7) in subsection (e)(1), by inserting ‘‘pursuant to subsection

(i)’’ before the semicolon;

(8) in subsection (e)(2)—

(A) by inserting ‘‘individual’’ before ‘‘contestant’’ each

place such term appears; and
H. R. 4—104

(B) by striking ‘‘to that court’s making the modification

and assuming’’ and inserting ‘‘with the State of continuing,

exclusive jurisdiction for a court of another State to modify

the order and assume’’;

(9) by redesignating subsections (f) and (g) as subsections

(g) and (h), respectively;

(10) by inserting after subsection (e) the following new

subsection:

‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If 1 or more

child support orders have been issued in this or another State

with regard to an obligor and a child, a court shall apply the

following rules in determining which order to recognize for purposes

of continuing, exclusive jurisdiction and enforcement:

‘‘(1) If only 1 court has issued a child support order, the

order of that court must be recognized.

‘‘(2) If 2 or more courts have issued child support orders

for the same obligor and child, and only 1 of the courts would

have continuing, exclusive jurisdiction under this section, the

order of that court must be recognized.

‘‘(3) If 2 or more courts have issued child support orders

for the same obligor and child, and more than 1 of the courts

would have continuing, exclusive jurisdiction under this section,

an order issued by a court in the current home State of the

child must be recognized, but if an order has not been issued

in the current home State of the child, the order most recently

issued must be recognized.

‘‘(4) If 2 or more courts have issued child support orders

for the same obligor and child, and none of the courts would

have continuing, exclusive jurisdiction under this section, a

court may issue a child support order, which must be

recognized.

‘‘(5) The court that has issued an order recognized under

this subsection is the court having continuing, exclusive jurisdiction.’’;

(11) in subsection (g) (as so redesignated)—

(A) by striking ‘‘PRIOR’’ and inserting ‘‘MODIFIED’’; and

(B) by striking ‘‘subsection (e)’’ and inserting ‘‘subsections (e) and (f)’’;

(12) in subsection (h) (as so redesignated)—

(A) in paragraph (2), by inserting ‘‘including the duration of current payments and other obligations of support’’

before the comma; and

(B) in paragraph (3), by inserting ‘‘arrears under’’ after

‘‘enforce’’; and

(13) by adding at the end the following new subsection:

‘‘(i) REGISTRATION FOR MODIFICATION.—If there is no individual

contestant or child residing in the issuing State, the party or

support enforcement agency seeking to modify, or to modify and

enforce, a child support order issued in another State shall register

that order in a State with jurisdiction over the nonmovant for

the purpose of modification.’’.

SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315

and 317(a) of this Act, is amended by adding at the end the

following new paragraph:
H. R. 4—105

‘‘(14) ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

CASES.—Procedures under which—

‘‘(A)(i) the State shall respond within 5 business days

to a request made by another State to enforce a support

order; and

‘‘(ii) the term ‘business day’ means a day on which

State offices are open for regular business;

‘‘(B) the State may, by electronic or other means, transmit to another State a request for assistance in a case

involving the enforcement of a support order, which

request—

‘‘(i) shall include such information as will enable

the State to which the request is transmitted to compare the information about the case to the information

in the data bases of the State; and

‘‘(ii) shall constitute a certification by the requesting State—

‘‘(I) of the amount of support under the order

the payment of which is in arrears; and

‘‘(II) that the requesting State has complied

with all procedural due process requirements

applicable to the case;

‘‘(C) if the State provides assistance to another State

pursuant to this paragraph with respect to a case, neither

State shall consider the case to be transferred to the caseload of such other State; and

‘‘(D) the State shall maintain records of—

‘‘(i) the number of such requests for assistance

received by the State; ‘‘(ii) the number of cases for which the State collected support in response to such a request; and

‘‘(iii) the amount of such collected support.’’.

SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

(a) PROMULGATION.—Section 452(a) (42 U.S.C. 652(a)) is

amended—

(1) by striking ‘‘and’’ at the end of paragraph (9);

(2) by striking the period at the end of paragraph (10)

and inserting ‘‘; and’’; and (3) by adding at the end the following new paragraph:

‘‘(11) not later than June 30, 1996, after consulting with

the State directors of programs under this part, promulgate

forms to be used by States in interstate cases for— ‘‘(A) collection of child support through income

withholding;

‘‘(B) imposition of liens; and

‘‘(C) administrative subpoenas.’’.

(b) USE BY STATES.—Section 454(9) (42 U.S.C. 654(9)) is

amended—

(1) by striking ‘‘and’’ at the end of subparagraph (C);

(2) by inserting ‘‘and’’ at the end of subparagraph (D);

and

(3) by adding at the end the following new subparagraph:

‘‘(E) no later than October 1, 1996, in using the forms

promulgated pursuant to section 452(a)(11) for income

withholding, imposition of liens, and issuance of administrative subpoenas in interstate child support cases;’’.
H. R. 4—106

SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

(a) STATE LAW REQUIREMENTS.—Section 466 (42 U.S.C. 666),

as amended by section 314 of this Act, is amended— (1) in subsection (a)(2), by striking the first sentence and inserting the following: ‘‘Expedited administrative and judicial

procedures (including the procedures specified in subsection

(c)) for establishing paternity and for establishing, modifying,

and enforcing support obligations.’’; and (2) by inserting after subsection (b) the following new subsection:

‘‘(c) EXPEDITED PROCEDURES.—The procedures specified in this

subsection are the following: ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGENCY.—Procedures

which give the State agency the authority to take the following

actions relating to establishment or enforcement of support

orders, without the necessity of obtaining an order from any

other judicial or administrative tribunal, and to recognize and

enforce the authority of State agencies of other States) to take

the following actions: ‘‘(A) GENETIC TESTING.—To order genetic testing for the purpose of paternity establishment as provided in section 466(a)(5).

‘‘(B) FINANCIAL OR OTHER INFORMATION.—To subpoena

any financial or other information needed to establish,

modify, or enforce a support order, and to impose penalties

for failure to respond to such a subpoena.

‘‘(C) RESPONSE TO STATE AGENCY REQUEST.—To require

all entities in the State (including for-profit, nonprofit,

and governmental employers) to provide promptly, in

response to a request by the State agency of that or any

other State administering a program under this part,

information on the employment, compensation, and benefits

of any individual employed by such entity as an employee

or contractor, and to sanction failure to respond to any

such request.

‘‘(D) ACCESS TO CERTAIN RECORDS.—To obtain access,

subject to safeguards on privacy and information security,

to the following records (including automated access, in

the case of records maintained in automated data bases):

‘‘(i) Records of other State and local government

agencies, including— ‘‘(I) vital statistics (including records of mar- riage, birth, and divorce); ‘‘(II) State and local tax and revenue records

(including information on residence address,

employer, income and assets);

‘‘(III) records concerning real and titled personal property;

‘‘(IV) records of occupational and professional

licenses, and records concerning the ownership and

control of corporations, partnerships, and other

business entities;

‘‘(V) employment security records;

‘‘(VI) records of agencies administering public

assistance programs;

‘‘(VII) records of the motor vehicle department;

and
H. R. 4—107

‘‘(VIII) corrections records.

‘‘(ii) Certain records held by private entities,

including—

‘‘(I) customer records of public utilities and

cable television companies; and

‘‘(II) information (including information on

assets and liabilities) on individuals who owe or

are owed support (or against or with respect to

whom a support obligation is sought) held by financial institutions (subject to limitations on liability

of such entities arising from affording such access),

as provided pursuant to agreements described in

subsection (a)(18).

‘‘(E) CHANGE IN PAYEE.—In cases in which support

is subject to an assignment in order to comply with a

requirement imposed pursuant to part A or section 1912,

or to a requirement to pay through the State disbursement

unit established pursuant to section 454B, upon providing

notice to obligor and obligee, to direct the obligor or other

payor to change the payee to the appropriate government

entity.

‘‘(F) INCOME WITHHOLDING.—To order income withholding in accordance with subsections (a)(1) and (b) of section

466.

‘‘(G) SECURING ASSETS.—In cases in which there is

a support arrearage, to secure assets to satisfy the arrearage by—

‘‘(i) intercepting or seizing periodic or lump-sum

payments from—

‘‘(I) a State or local agency, including

unemployment compensation, workers’ compensation, and other benefits; and

‘‘(II) judgments, settlements, and lotteries;

‘‘(ii) attaching and seizing assets of the obligor

held in financial institutions;

‘‘(iii) attaching public and private retirement funds;

and

‘‘(iv) imposing liens in accordance with subsection

(a)(4) and, in appropriate cases, to force sale of property

and distribution of proceeds.

‘‘(H) INCREASE MONTHLY PAYMENTS.—For the purpose

of securing overdue support, to increase the amount of

monthly support payments to include amounts for arrearages, subject to such conditions or limitations as the State

may provide.

Such procedures shall be subject to due process safeguards,

including (as appropriate) requirements for notice, opportunity

to contest the action, and opportunity for an appeal on the

record to an independent administrative or judicial tribunal.

‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—The expedited

procedures required under subsection (a)(2) shall include the

following rules and authority, applicable with respect to all

proceedings to establish paternity or to establish, modify, or

enforce support orders:

‘‘(A) LOCATOR INFORMATION; PRESUMPTIONS CONCERNING NOTICE.—Procedures under which—
H. R. 4—108

‘‘(i) each party to any paternity or child support

proceeding is required (subject to privacy safeguards)

to file with the tribunal and the State case registry

upon entry of an order, and to update as appropriate,

information on location and identity of the party,

including social security number, residential and mailing addresses, telephone number, driver’s license number, and name, address, and name and telephone

number of employer; and

‘‘(ii) in any subsequent child support enforcement

action between the parties, upon sufficient showing

that diligent effort has been made to ascertain the

location of such a party, the tribunal may deem State

due process requirements for notice and service of process to be met with respect to the party, upon delivery

of written notice to the most recent residential or employer address filed with the tribunal pursuant to

clause (i).

‘‘(B) STATEWIDE JURISDICTION.—Procedures under

which—

‘‘(i) the State agency and any administrative or

judicial tribunal with authority to hear child support

and paternity cases exerts statewide jurisdiction over

the parties; and

‘‘(ii) in a State in which orders are issued by courts

or administrative tribunals, a case may be transferred

between local jurisdictions in the State without need

for any additional filing by the petitioner, or service

of process upon the respondent, to retain jurisdiction

over the parties.

‘‘(3) COORDINATION WITH ERISA.—Notwithstanding subsection (d) of section 514 of the Employee Retirement Income

Security Act of 1974 (relating to effect on other laws), nothing

in this subsection shall be construed to alter, amend, modify,

invalidate, impair, or supersede subsections (a), (b), and (c)

of such section 514 as it applies with respect to any procedure

referred to in paragraph (1) and any expedited procedure

referred to in paragraph (2), except to the extent that such

procedure would be consistent with the requirements of section

206(d)(3) of such Act (relating to qualified domestic relations

orders) or the requirements of section 609(a) of such Act (relating to qualified medical child support orders) if the reference

in such section 206(d)(3) to a domestic relations order and

the reference in such section 609(a) to a medical child support

order were a reference to a support order referred to in paragraphs (1) and (2) relating to the same matters, respectively.’’.

(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—Section 454A,

as added by section 344(a)(2) and as amended by sections 311

and 312(c) of this Act, is amended by adding at the end the following

new subsection:

‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—The automated

system required by this section shall be used, to the maximum

extent feasible, to implement the expedited administrative procedures required by section 466(c).’’.
H. R. 4—109

Subtitle D—Paternity Establishment

SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

(a) STATE LAWS REQUIRED.—Section 466(a)(5) (42 U.S.C.

666(a)(5)) is amended to read as follows:

‘‘(5) PROCEDURES CONCERNING PATERNITY ESTABLISHMENT.—

‘‘(A) ESTABLISHMENT PROCESS AVAILABLE FROM BIRTH

UNTIL AGE 18.—

‘‘(i) Procedures which permit the establishment of

the paternity of a child at any time before the child

attains 18 years of age.

‘‘(ii) As of August 16, 1984, clause (i) shall also

apply to a child for whom paternity has not been

established or for whom a paternity action was brought

but dismissed because a statute of limitations of less

than 18 years was then in effect in the State.

‘‘(B) PROCEDURES CONCERNING GENETIC TESTING.—

‘‘(i) GENETIC TESTING REQUIRED IN CERTAIN CONTESTED CASES.—Procedures under which the State is

required, in a contested paternity case (unless otherwise barred by State law) to require the child and

all other parties (other than individuals found under

section 454(29) to have good cause for refusing to

cooperate) to submit to genetic tests upon the request

of any such party, if the request is supported by a

sworn statement by the party— ‘‘(I) alleging paternity, and setting forth facts

establishing a reasonable possibility of the requisite sexual contact between the parties; or

‘‘(II) denying paternity, and setting forth facts

establishing a reasonable possibility of the

nonexistence of sexual contact between the parties.

‘‘(ii) OTHER REQUIREMENTS.—Procedures which

require the State agency, in any case in which the

agency orders genetic testing— ‘‘(I) to pay costs of such tests, subject to recoupment (if the State so elects) from the alleged

father if paternity is established; and ‘‘(II) to obtain additional testing in any case

if an original test result is contested, upon request

and advance payment by the contestant. ‘‘(C) VOLUNTARY PATERNITY ACKNOWLEDGMENT.— ‘‘(i) SIMPLE CIVIL PROCESS.—Procedures for a simple civil process for voluntarily acknowledging paternity under which the State must provide that, before

a mother and a putative father can sign an acknowledgment of paternity, the mother and the putative father

must be given notice, orally and in writing, of the

alternatives to, the legal consequences of, and the

rights (including, if 1 parent is a minor, any rights

afforded due to minority status) and responsibilities

that arise from, signing the acknowledgment.

‘‘(ii) HOSPITAL-BASED PROGRAM.—Such procedures

must include a hospital-based program for the voluntary acknowledgment of paternity focusing on the
H. R. 4—110

period immediately before or after the birth of a child,

subject to such good cause exceptions, taking into

account the best interests of the child, as the State

may establish.

‘‘(iii) PATERNITY ESTABLISHMENT SERVICES.—

‘‘(I) STATE-OFFERED SERVICES.—Such procedures must require the State agency responsible

for maintaining birth records to offer voluntary

paternity establishment services.

‘‘(II) REGULATIONS.—

‘‘(aa) SERVICES OFFERED BY HOSPITALS AND

BIRTH RECORD AGENCIES.—The Secretary shall

prescribe regulations governing voluntary

paternity establishment services offered by

hospitals and birth record agencies.

‘‘(bb) SERVICES OFFERED BY OTHER ENTITIES.—The Secretary shall prescribe regulations specifying the types of other entities that

may offer voluntary paternity establishment

services, and governing the provision of such

services, which shall include a requirement

that such an entity must use the same notice

provisions used by, use the same materials

used by, provide the personnel providing such

services with the same training provided by,

and evaluate the provision of such services

in the same manner as the provision of such

services is evaluated by, voluntary paternity

establishment programs of hospitals and birth

record agencies.

‘‘(iv) USE OF PATERNITY ACKNOWLEDGMENT AFFIDAVIT.—Such procedures must require the State to

develop and use an affidavit for the voluntary acknowledgment of paternity which includes the minimum

requirements of the affidavit developed by the Secretary under section 452(a)(7) for the voluntary

acknowledgment of paternity, and to give full faith

and credit to such an affidavit signed in any other

State according to its procedures.

‘‘(D) STATUS OF SIGNED PATERNITY ACKNOWLEDGMENT.—

‘‘(i) INCLUSION IN BIRTH RECORDS.—Procedures

under which the name of the father shall be included

on the record of birth of the child of unmarried parents

only if—

‘‘(I) the father and mother have signed a voluntary acknowledgment of paternity; or

‘‘(II) a court or an administrative agency of

competent jurisdiction has issued an adjudication

of paternity.

Nothing in this clause shall preclude a State agency

from obtaining an admission of paternity from the

father for submission in a judicial or administrative

proceeding, or prohibit the issuance of an order in

a judicial or administrative proceeding which bases

a legal finding of paternity on an admission of paternity
H. R. 4—111

by the father and any other additional showing

required by State law.

‘‘(ii) LEGAL FINDING OF PATERNITY.—Procedures

under which a signed voluntary acknowledgment of

paternity is considered a legal finding of paternity,

subject to the right of any signatory to rescind the

acknowledgment within the earlier of—

‘‘(I) 60 days; or

‘‘(II) the date of an administrative or judicial

proceeding relating to the child (including a

proceeding to establish a support order) in which

the signatory is a party.

‘‘(iii) CONTEST.—Procedures under which, after the

60-day period referred to in clause (ii), a signed voluntary acknowledgment of paternity may be challenged

in court only on the basis of fraud, duress, or material

mistake of fact, with the burden of proof upon the

challenger, and under which the legal responsibilities

(including child support obligations) of any signatory

arising from the acknowledgment may not be suspended during the challenge, except for good cause

shown.

‘‘(E) BAR ON ACKNOWLEDGMENT RATIFICATION PROCEEDINGS.—Procedures under which judicial or administrative

proceedings are not required or permitted to ratify an

unchallenged acknowledgment of paternity.

‘‘(F) ADMISSIBILITY OF GENETIC TESTING RESULTS.—

Procedures—

‘‘(i) requiring the admission into evidence, for purposes of establishing paternity, of the results of any

genetic test that is—

‘‘(I) of a type generally acknowledged as reliable by accreditation bodies designated by the Secretary; and

‘‘(II) performed by a laboratory approved by

such an accreditation body;

‘‘(ii) requiring an objection to genetic testing

results to be made in writing not later than a specified

number of days before any hearing at which the results

may be introduced into evidence (or, at State option,

not later than a specified number of days after receipt

of the results); and

‘‘(iii) making the test results admissible as evidence of paternity without the need for foundation

testimony or other proof of authenticity or accuracy,

unless objection is made.

‘‘(G) PRESUMPTION OF PATERNITY IN CERTAIN CASES.—

Procedures which create a rebuttable or, at the option

of the State, conclusive presumption of paternity upon

genetic testing results indicating a threshold probability

that the alleged father is the father of the child.

‘‘(H) DEFAULT ORDERS.—Procedures requiring a default

order to be entered in a paternity case upon a showing

of service of process on the defendant and any additional

showing required by State law.
H. R. 4—112

‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures providing that the parties to an action to establish paternity are

not entitled to a trial by jury. ‘‘(J) TEMPORARY SUPPORT ORDER BASED ON PROBABLE

PATERNITY IN CONTESTED CASES.—Procedures which require

that a temporary order be issued, upon motion by a party,

requiring the provision of child support pending an

administrative or judicial determination of parentage, if

there is clear and convincing evidence of paternity (on

the basis of genetic tests or other evidence). ‘‘(K) PROOF OF CERTAIN SUPPORT AND PATERNITY

ESTABLISHMENT COSTS.—Procedures under which bills for

pregnancy, childbirth, and genetic testing are admissible

as evidence without requiring third-party foundation testimony, and shall constitute prima facie evidence of amounts

incurred for such services or for testing on behalf of the

child.

‘‘(L) STANDING OF PUTATIVE FATHERS.—Procedures

ensuring that the putative father has a reasonable opportunity to initiate a paternity action. ‘‘(M) FILING OF ACKNOWLEDGMENTS AND ADJUDICATIONS

IN STATE REGISTRY OF BIRTH RECORDS.—Procedures under

which voluntary acknowledgments and adjudications of

paternity by judicial or administrative processes are filed

with the State registry of birth records for comparison

with information in the State case registry.’’. (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ‘‘, and

develop an affidavit to be used for the voluntary acknowledgment

of paternity which shall include the social security number of each

parent and, after consultation with the States, other common elements as determined by such designee’’ before the semicolon. (c) CONFORMING AMENDMENT.—Section 468 (42 U.S.C. 668) is

amended by striking ‘‘a simple civil process for voluntarily acknowledging paternity and’’.

SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

Section 454(23) (42 U.S.C. 654(23)) is amended by inserting ‘‘and will publicize the availability and encourage the use of procedures for voluntary establishment of paternity and child support

by means the State deems appropriate’’ before the semicolon.

SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF

TEMPORARY FAMILY ASSISTANCE.

Section 454 (42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(a), and 313(a) of this Act, is amended—

(1) by striking ‘‘and’’ at the end of paragraph (27);

(2) by striking the period at the end of paragraph (28) and inserting ‘‘; and’’; and (3) by inserting after paragraph (28) the following new

paragraph:

‘‘(29) provide that the State agency responsible for administering the State plan— ‘‘(A) shall make the determination (and redetermination at appropriate intervals) as to whether an individual

who has applied for or is receiving assistance under the

State program funded under part A or the State program

under title XIX is cooperating in good faith with the State
H. R. 4—113

in establishing the paternity of, or in establishing, modifying, or enforcing a support order for, any child of the

individual by providing the State agency with the name

of, and such other information as the State agency may

require with respect to, the noncustodial parent of the

child, subject to such good cause exceptions, taking into

account the best interests of the child, as the State may

establish through the State agency, or at the option of

the State, through the State agencies administering the

State programs funded under part A and title XIX; ‘‘(B) shall require the individual to supply additional necessary information and appear at interviews, hearings,

and legal proceedings; ‘‘(C) shall require the individual and the child to submit

to genetic tests pursuant to judicial or administrative order; ‘‘(D) may request that the individual sign a voluntary acknowledgment of paternity, after notice of the rights

and consequences of such an acknowledgment, but may

not require the individual to sign an acknowledgment or

otherwise relinquish the right to genetic tests as a condition

of cooperation and eligibility for assistance under the State

program funded under part A or the State program under

title XIX; and

‘‘(E) shall promptly notify the individual and the State agency administering the State program funded under part

A and the State agency administering the State program

under title XIX of each such determination, and if

noncooperation is determined, the basis therefore.’’.

Subtitle E—Program Administration and

Funding

SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary of Health and Human Services, in consultation with State directors of programs under part D of title IV of the Social Security Act, shall

develop a new incentive system to replace, in a revenue neutral

manner, the system under section 458 of such Act. The new system

shall provide additional payments to any State based on such

State’s performance under such a program. Not later than June

1, 1996, the Secretary shall report on the new system to the

Committee on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate.

(b) CONFORMING AMENDMENTS TO PRESENT SYSTEM.—Section

458 (42 U.S.C. 658) is amended—

(1) in subsection (a), by striking ‘‘aid to families with dependent children under a State plan approved under part

A of this title’’ and inserting ‘‘assistance under a program

funded under part A’’;

(2) in subsection (b)(1)(A), by striking ‘‘section 402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’; (3) in subsections (b) and (c)—

(A) by striking ‘‘AFDC collections’’ each place it appears

and inserting ‘‘title IV–A collections’’, and

(B) by striking ‘‘non-AFDC collections’’ each place it

appears and inserting ‘‘non-title IV–A collections’’; and
H. R. 4—114

(4) in subsection (c), by striking ‘‘combined AFDC/nonAFDC administrative costs’’ both places it appears and inserting

‘‘combined title IV–A/non-title IV–A administrative costs’’.

(c) CALCULATION OF IV–D PATERNITY ESTABLISHMENT PERCENTAGE.—

(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended

by striking ‘‘75’’ and inserting ‘‘90’’.

(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended by

redesignating subparagraphs (B) through (E) as subparagraphs

(C) through (F), respectively, and by inserting after subparagraph (A) the following new subparagraph:

‘‘(B) for a State with a paternity establishment percentage of not less than 75 percent but less than 90 percent

for such fiscal year, the paternity establishment percentage

of the State for the immediately preceding fiscal year plus

2 percentage points;’’.

(3) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended

in the matter preceding clause (i)—

(A) by striking ‘‘paternity establishment percentage’’

and inserting ‘‘IV–D paternity establishment percentage’’;

and

(B) by striking ‘‘(or all States, as the case may be)’’.

(4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended by

adding at the end the following new sentence: ‘‘In meeting

the 90 percent paternity establishment requirement, a State

may calculate either the paternity establishment rate of cases

in the program funded under this part or the paternity

establishment rate of all out-of-wedlock births in the State.’’.

(5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended—

(A) by striking subparagraph (A) and redesignating

subparagraphs (B) and (C) as subparagraphs (A) and (B),

respectively;

(B) in subparagraph (A) (as so redesignated), by striking ‘‘the percentage of children born out-of-wedlock in a

State’’ and inserting ‘‘the percentage of children in a State

who are born out of wedlock or for whom support has

not been established’’; and

(C) in subparagraph (B) (as so redesignated) by inserting ‘‘and securing support’’ before the period.

(d) EFFECTIVE DATES.—

(1) INCENTIVE ADJUSTMENTS.—

(A) IN GENERAL.—The system developed under subsection

(a) and the amendments made by subsection (b) shall become

effective on October 1, 1997, except to the extent provided

in subparagraph (B).

(B) APPLICATION OF SECTION 458.—Section 458 of the Social

Security Act, as in effect on the day before the date of the

enactment of this section, shall be effective for purposes of

incentive payments to States for fiscal years before fiscal year

1999.

(2) PENALTY REDUCTIONS.—The amendments made by subsection (c) shall become effective with respect to calendar quarters beginning on or after the date of the enactment of this

Act.
H. R. 4—115

SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

(a) STATE AGENCY ACTIVITIES.—Section 454 (42 U.S.C. 654)

is amended—

(1) in paragraph (14), by striking ‘‘(14)’’ and inserting ‘‘(14)(A)’’;

(2) by redesignating paragraph (15) as subparagraph (B) of paragraph (14); and (3) by inserting after paragraph (14) the following new paragraph: ‘‘(15) provide for— ‘‘(A) a process for annual reviews of and reports to

the Secretary on the State program operated under the

State plan approved under this part, including such

information as may be necessary to measure State compliance with Federal requirements for expedited procedures,

using such standards and procedures as are required by

the Secretary, under which the State agency will determine

the extent to which the program is operated in compliance

with this part; and ‘‘(B) a process of extracting from the automated data processing system required by paragraph (16) and

transmitting to the Secretary data and calculations

concerning the levels of accomplishment (and rates of

improvement) with respect to applicable performance

indicators (including IV–D paternity establishment percentages to the extent necessary for purposes of sections 452(g)

and 458.’’.

(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42 U.S.C. 652(a)(4))

is amended to read as follows:

‘‘(4)(A) review data and calculations transmitted by State agencies pursuant to section 454(15)(B) on State program

accomplishments with respect to performance indicators for

purposes of subsection (g) of this section and section 458; ‘‘(B) review annual reports submitted pursuant to section

454(15)(A) and, as appropriate, provide to the State comments,

recommendations for additional or alternative corrective

actions, and technical assistance; and

‘‘(C) conduct audits, in accordance with the Government

auditing standards of the Comptroller General of the United

States—

‘‘(i) at least once every 3 years (or more frequently,

in the case of a State which fails to meet the requirements

of this part concerning performance standards and reliability of program data) to assess the completeness, reliability,

and security of the data, and the accuracy of the reporting

systems, used in calculating performance indicators under

subsection (g) of this section and section 458;

‘‘(ii) of the adequacy of financial management of the

State program operated under the State plan approved

under this part, including assessments of—

‘‘(I) whether Federal and other funds made available to carry out the State program are being appropriately expended, and are properly and fully

accounted for; and

‘‘(II) whether collections and disbursements of support payments are carried out correctly and are fully

accounted for; and
H. R. 4—116

‘‘(iii) for such other purposes as the Secretary may

find necessary;’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall be effective with respect to calendar quarters beginning 12

months or more after the date of the enactment of this Act.

SEC. 343. REQUIRED REPORTING PROCEDURES.

(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C. 652(a)(5)) is

amended by inserting ‘‘, and establish procedures to be followed

by States for collecting and reporting information required to be

provided under this part, and establish uniform definitions (including those necessary to enable the measurement of State compliance

with the requirements of this part relating to expedited processes)

to be applied in following such procedures’’ before the semicolon.

(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),

as amended by sections 301(b), 303(a), 312(a), 313(a), and 333

of this Act, is amended—

(1) by striking ‘‘and’’ at the end of paragraph (28);

(2) by striking the period at the end of paragraph (29)

and inserting ‘‘; and’’; and

(3) by adding after paragraph (29) the following new

paragraph:

‘‘(30) provide that the State shall use the definitions established under section 452(a)(5) in collecting and reporting

information as required under this part.’’.

SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

(a) REVISED REQUIREMENTS.— (1) IN GENERAL.—Section 454(16) (42 U.S.C. 654(16)) is

amended—

(A) by striking ‘‘, at the option of the State,’’;

(B) by inserting ‘‘and operation by the State agency’’

after ‘‘for the establishment’’;

(C) by inserting ‘‘meeting the requirements of section

454A’’ after ‘‘information retrieval system’’; (D) by striking ‘‘in the State and localities thereof, so as (A)’’ and inserting ‘‘so as’’; (E) by striking ‘‘(i)’’; and

(F) by striking ‘‘(including’’ and all that follows and

inserting a semicolon.

(2) AUTOMATED DATA PROCESSING.—Part D of title IV (42

U.S.C. 651–669) is amended by inserting after section 454

the following new section:

‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

‘‘(a) IN GENERAL.—In order for a State to meet the requirements

of this section, the State agency administering the State program

under this part shall have in operation a single statewide automated

data processing and information retrieval system which has the

capability to perform the tasks specified in this section with the

frequency and in the manner required by or under this part.

‘‘(b) PROGRAM MANAGEMENT.—The automated system required

by this section shall perform such functions as the Secretary may

specify relating to management of the State program under this

part, including—

‘‘(1) controlling and accounting for use of Federal, State,

and local funds in carrying out the program; and
H. R. 4—117

‘‘(2) maintaining the data necessary to meet Federal reporting requirements under this part on a timely basis.

‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—In order to

enable the Secretary to determine the incentive payments and

penalty adjustments required by sections 452(g) and 458, the State

agency shall—

‘‘(1) use the automated system—

‘‘(A) to maintain the requisite data on State performance with respect to paternity establishment and child

support enforcement in the State; and

‘‘(B) to calculate the IV–D paternity establishment

percentage for the State for each fiscal year; and

‘‘(2) have in place systems controls to ensure the completeness and reliability of, and ready access to, the data described

in paragraph (1)(A), and the accuracy of the calculations

described in paragraph (1)(B).

‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The State agency

shall have in effect safeguards on the integrity, accuracy, and

completeness of, access to, and use of data in the automated system

required by this section, which shall include the following (in addition to such other safeguards as the Secretary may specify in

regulations):

‘‘(1) POLICIES RESTRICTING ACCESS.—Written policies

concerning access to data by State agency personnel, and sharing of data with other persons, which—

‘‘(A) permit access to and use of data only to the

extent necessary to carry out the State program under

this part; and

‘‘(B) specify the data which may be used for particular

program purposes, and the personnel permitted access to

such data.

‘‘(2) SYSTEMS CONTROLS.—Systems controls (such as pass- words or blocking of fields) to ensure strict adherence to the

policies described in paragraph (1). ‘‘(3) MONITORING OF ACCESS.—Routine monitoring of access

to and use of the automated system, through methods such

as audit trails and feedback mechanisms, to guard against

and promptly identify unauthorized access or use. ‘‘(4) TRAINING AND INFORMATION.—Procedures to ensure

that all personnel (including State and local agency staff and

contractors) who may have access to or be required to use

confidential program data are informed of applicable requirements and penalties (including those in section 6103 of the

Internal Revenue Code of 1986), and are adequately trained

in security procedures.

‘‘(5) PENALTIES.—Administrative penalties (up to and

including dismissal from employment) for unauthorized access

to, or disclosure or use of, confidential data.’’.

(3) REGULATIONS.—The Secretary of Health and Human

Services shall prescribe final regulations for implementation

of section 454A of the Social Security Act not later than 2

years after the date of the enactment of this Act.

(4) IMPLEMENTATION TIMETABLE.—Section 454(24) (42

U.S.C. 654(24)), as amended by section 303(a)(1) of this Act,

is amended to read as follows:

‘‘(24) provide that the State will have in effect an automated

data processing and information retrieval system—
H. R. 4—118

‘‘(A) by October 1, 1997, which meets all requirements

of this part which were enacted on or before the date

of enactment of the Family Support Act of 1988, and

‘‘(B) by October 1, 1999, which meets all requirements

of this part enacted on or before the date of the enactment

of the Personal Responsibility and Work Opportunity Act

of 1995, except that such deadline shall be extended by

1 day for each day (if any) by which the Secretary fails

to meet the deadline imposed by section 344(a)(3) of the

Personal Responsibility and Work Opportunity Act of

1995;’’.

(b) SPECIAL FEDERAL MATCHING RATE FOR DEVELOPMENT COSTS

OF AUTOMATED SYSTEMS.—

(1) IN GENERAL.—Section 455(a) (42 U.S.C. 655(a)) is

amended—

(A) in paragraph (1)(B)—

(i) by striking ‘‘90 percent’’ and inserting ‘‘the percent specified in paragraph (3)’’;

(ii) by striking ‘‘so much of’’; and

(iii) by striking ‘‘which the Secretary’’ and all that

follows and inserting ‘‘, and’’; and

(B) by adding at the end the following new paragraph:

‘‘(3)(A) The Secretary shall pay to each State, for each quarter

in fiscal years 1996 and 1997, 90 percent of so much of the State

expenditures described in paragraph (1)(B) as the Secretary finds

are for a system meeting the requirements specified in section

454(16) (as in effect on September 30, 1995) but limited to the

amount approved for States in the advance planning documents

of such States submitted on or before May 1, 1995.

‘‘(B)(i) The Secretary shall pay to each State, for each quarter

in fiscal years 1996 through 2001, the percentage specified in clause

(ii) of so much of the State expenditures described in paragraph

(1)(B) as the Secretary finds are for a system meeting the requirements of sections 454(16) and 454A.

‘‘(ii) The percentage specified in this clause is 80 percent.’’.

(2) TEMPORARY LIMITATION ON PAYMENTS UNDER SPECIAL

FEDERAL MATCHING RATE.—

(A) IN GENERAL.—The Secretary of Health and Human

Services may not pay more than $400,000,000 in the aggregate under section 455(a)(3)(B) of the Social Security Act

for fiscal years 1996 through 2001.

(B) ALLOCATION OF LIMITATION AMONG STATES.—The

total amount payable to a State under section 455(a)(3)(B)

of such Act for fiscal years 1996 through 2001 shall not

exceed the limitation determined for the State by the Secretary of Health and Human Services in regulations.

(C) ALLOCATION FORMULA.—The regulations referred

to in subparagraph (B) shall prescribe a formula for allocating the amount specified in subparagraph (A) among States

with plans approved under part D of title IV of the Social

Security Act, which shall take into account—

(i) the relative size of State caseloads under such

part; and

(ii) the level of automation needed to meet the

automated data processing requirements of such part.
H. R. 4—119

(c) CONFORMING AMENDMENT.—Section 123(c) of the Family

Support Act of 1988 (102 Stat. 2352; Public Law 100–485) is

repealed.

SEC. 345. TECHNICAL ASSISTANCE.

(a) FOR TRAINING OF FEDERAL AND STATE STAFF, RESEARCH

AND DEMONSTRATION PROGRAMS, AND SPECIAL PROJECTS OF

REGIONAL OR NATIONAL SIGNIFICANCE.—Section 452 (42 U.S.C. 652)

is amended by adding at the end the following new subsection:

‘‘(j) Out of any money in the Treasury of the United States

not otherwise appropriated, there is hereby appropriated to the

Secretary for each fiscal year an amount equal to 1 percent of

the total amount paid to the Federal Government pursuant to

section 457(a) during the immediately preceding fiscal year (as

determined on the basis of the most recent reliable data available

to the Secretary as of the end of the 3rd calendar quarter following

the end of such preceding fiscal year), to cover costs incurred

by the Secretary for—

‘‘(1) information dissemination and technical assistance to

States, training of State and Federal staff, staffing studies,

and related activities needed to improve programs under this

part (including technical assistance concerning State automated

systems required by this part); and

‘‘(2) research, demonstration, and special projects of

regional or national significance relating to the operation of

State programs under this part.

The amount appropriated under this subsection shall remain available until expended.’’.

(b) OPERATION OF FEDERAL PARENT LOCATOR SERVICE.—Section

453 (42 U.S.C. 653), as amended by section 316 of this Act, is

amended by adding at the end the following new subsection: ‘‘(o) RECOVERY OF COSTS.—Out of any money in the Treasury

of the United States not otherwise appropriated, there is hereby

appropriated to the Secretary for each fiscal year an amount equal

to 2 percent of the total amount paid to the Federal Government

pursuant to section 457(a) during the immediately preceding fiscal

year (as determined on the basis of the most recent reliable data

available to the Secretary as of the end of the 3rd calendar quarter

following the end of such preceding fiscal year), to cover costs

incurred by the Secretary for operation of the Federal Parent

Locator Service under this section, to the extent such costs are

not recovered through user fees.’’.

SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.

(a) ANNUAL REPORT TO CONGRESS.—

(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is

amended—

(A) by striking ‘‘this part;’’ and inserting ‘‘this part,

including—’’; and

(B) by adding at the end the following new clauses:

‘‘(i) the total amount of child support payments

collected as a result of services furnished during the

fiscal year to individuals receiving services under this

part;

‘‘(ii) the cost to the States and to the Federal

Government of so furnishing the services; and

‘‘(iii) the number of cases involving families—
H. R. 4—120

‘‘(I) who became ineligible for assistance under State programs funded under part A during a

month in the fiscal year; and ‘‘(II) with respect to whom a child support

payment was received in the month;’’. (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is

amended—

(A) in the matter preceding clause (i)— (i) by striking ‘‘with the data required under each clause being separately stated for cases’’ and inserting

‘‘separately stated for (1) cases’’; (ii) by striking ‘‘cases where the child was formerly receiving’’ and inserting ‘‘or formerly received’’; (iii) by inserting ‘‘or 1912’’ after ‘‘471(a)(17)’’; and

(iv) by inserting ‘‘(2)’’ before ‘‘all other’’; (B) in each of clauses (i) and (ii), by striking ‘‘, and the total amount of such obligations’’; (C) in clause (iii), by striking ‘‘described in’’ and all that follows and inserting ‘‘in which support was collected

during the fiscal year;’’; (D) by striking clause (iv); and

(E) by redesignating clause (v) as clause (vii), and inserting after clause (iii) the following new clauses: ‘‘(iv) the total amount of support collected during such fiscal year and distributed as current support; ‘‘(v) the total amount of support collected during such fiscal year and distributed as arrearages; ‘‘(vi) the total amount of support due and unpaid

for all fiscal years; and’’. (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is

amended by striking ‘‘on the use of Federal courts and’’. (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended—

(A) in subparagraph (H), by striking ‘‘and’’;

(B) in subparagraph (I), by striking the period and inserting ‘‘; and’’; and (C) by inserting after subparagraph (I) the following new subparagraph: ‘‘(J) compliance, by State, with the standards estab- lished pursuant to subsections (h) and (i).’’.

(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended

by striking all that follows subparagraph (J), as added by

paragraph (4).

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall be effective with respect to fiscal year 1996 and succeeding

fiscal years.

Subtitle F—Establishment and

Modification of Support Orders

SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF

CHILD SUPPORT ORDERS.

Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read

as follows:

‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON

REQUEST.—Procedures under which the State shall review and

adjust each support order being enforced under this part upon
H. R. 4—121

the request of either parent or the State if there is an assignment. Such procedures shall provide the following:

‘‘(A) IN GENERAL.—

‘‘(i) 3-YEAR CYCLE.—Except as provided in subparagraphs (B) and (C), the State shall review and, as

appropriate, adjust the support order every 3 years,

taking into account the best interests of the child

involved.

‘‘(ii) METHODS OF ADJUSTMENT.—The State may

elect to review and, if appropriate, adjust an order

pursuant to clause (i) by—

‘‘(I) reviewing and, if appropriate, adjusting

the order in accordance with the guidelines established pursuant to section 467(a) if the amount

of the child support award under the order differs

from the amount that would be awarded in accordance with the guidelines; or

‘‘(II) applying a cost-of-living adjustment to

the order in accordance with a formula developed

by the State and permit either party to contest

the adjustment, within 30 days after the date of

the notice of the adjustment, by making a request

for review and, if appropriate, adjustment of the

order in accordance with the child support guidelines established pursuant to section 467(a).

‘‘(iii) NO PROOF OF CHANGE IN CIRCUMSTANCES NECESSARY.—Any adjustment under this subparagraph (A)

shall be made without a requirement for proof or showing of a change in circumstances.

‘‘(B) AUTOMATED METHOD.—The State may use auto- mated methods (including automated comparisons with

wage or State income tax data) to identify orders eligible

for review, conduct the review, identify orders eligible for

adjustment, and apply the appropriate adjustment to the

orders eligible for adjustment under the threshold established by the State. ‘‘(C) REQUEST UPON SUBSTANTIAL CHANGE IN CIR- CUMSTANCES.—The State shall, at the request of either

parent subject to such an order or of any State child support

enforcement agency, review and, if appropriate, adjust the

order in accordance with the guidelines established pursuant to section 467(a) based upon a substantial change

in the circumstances of either parent.

‘‘(D) NOTICE OF RIGHT TO REVIEW.—The State shall

provide notice not less than once every 3 years to the

parents subject to such an order informing them of their

right to request the State to review and, if appropriate,

adjust the order pursuant to this paragraph. The notice

may be included in the order.’’.

SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES

RELATING TO CHILD SUPPORT.

Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b)

is amended by adding at the end the following new paragraphs:

‘‘(4) In response to a request by the head of a State or

local child support enforcement agency (or a State or local

government official authorized by the head of such an agency),
H. R. 4—122

if the person making the request certifies to the consumer

reporting agency that—

‘‘(A) the consumer report is needed for the purpose

of establishing an individual’s capacity to make child support payments or determining the appropriate level of such

payments;

‘‘(B) the paternity of the consumer for the child to

which the obligation relates has been established or

acknowledged by the consumer in accordance with State

laws under which the obligation arises (if required by those

laws);

‘‘(C) the person has provided at least 10 days’ prior

notice to the consumer whose report is requested, by certified or registered mail to the last known address of the

consumer, that the report will be requested; and

‘‘(D) the consumer report will be kept confidential,

will be used solely for a purpose described in subparagraph

(A), and will not be used in connection with any other

civil, administrative, or criminal proceeding, or for any

other purpose.

‘‘(5) To an agency administering a State plan under section

454 of the Social Security Act (42 U.S.C. 654) for use to set

an initial or modified child support award.’’.

SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING

FINANCIAL RECORDS TO STATE CHILD SUPPORT

ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

(a) IN GENERAL.—Notwithstanding any other provision of Federal or State law, a financial institution shall not be liable under

any Federal or State law to any person for disclosing any financial

record of an individual to a State child support enforcement agency

attempting to establish, modify, or enforce a child support obligation

of such individual.

(b) PROHIBITION OF DISCLOSURE OF FINANCIAL RECORD

OBTAINED BY STATE CHILD SUPPORT ENFORCEMENT AGENCY.—A

State child support enforcement agency which obtains a financial

record of an individual from a financial institution pursuant to

subsection (a) may disclose such financial record only for the purpose of, and to the extent necessary in, establishing, modifying,

or enforcing a child support obligation of such individual.

(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE.—

(1) DISCLOSURE BY STATE OFFICER OR EMPLOYEE.—If any

person knowingly, or by reason of negligence, discloses a financial record of an individual in violation of subsection (b), such

individual may bring a civil action for damages against such

person in a district court of the United States.

(2) NO LIABILITY FOR GOOD FAITH BUT ERRONEOUS

INTERPRETATION.—No liability shall arise under this subsection

with respect to any disclosure which results from a good faith,

but erroneous, interpretation of subsection (b).

(3) DAMAGES.—In any action brought under paragraph (1),

upon a finding of liability on the part of the defendant, the

defendant shall be liable to the plaintiff in an amount equal

to the sum of—

(A) the greater of—
H. R. 4—123

(i) $1,000 for each act of unauthorized disclosure

of a financial record with respect to which such defendant is found liable; or

(ii) the sum of—

(I) the actual damages sustained by the plaintiff as a result of such unauthorized disclosure;

plus

(II) in the case of a willful disclosure or a

disclosure which is the result of gross negligence,

punitive damages; plus

(B) the costs (including attorney’s fees) of the action.

(d) DEFINITIONS.—For purposes of this section—

(1) FINANCIAL INSTITUTION.—The term ‘‘financial institution’’ means—

(A) a depository institution, as defined in section 3(c)

of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));

(B) an institution-affiliated party, as defined in section

3(u) of such Act (12 U.S.C. 1813(v));

(C) any Federal credit union or State credit union,

as defined in section 101 of the Federal Credit Union

Act (12 U.S.C. 1752), including an institution-affiliated

party of such a credit union, as defined in section 206(r)

of such Act (12 U.S.C. 1786(r)); and

(D) any benefit association, insurance company, safe

deposit company, money-market mutual fund, or similar

entity authorized to do business in the State.

(2) FINANCIAL RECORD.—The term ‘‘financial record’’ has

the meaning given such term in section 1101 of the Right

to Financial Privacy Act of 1978 (12 U.S.C. 3401).

(3) STATE CHILD SUPPORT ENFORCEMENT AGENCY.—The

term ‘‘State child support enforcement agency’’ means a State

agency which administers a State program for establishing

and enforcing child support obligations.

Subtitle G—Enforcement of Support

Orders

SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

(a) COLLECTION OF FEES.—Section 6305(a) of the Internal Revenue Code of 1986 (relating to collection of certain liability) is

amended—

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

(2) by striking the period at the end of paragraph (4)

and inserting ‘‘, and’’;

(3) by adding at the end the following new paragraph:

‘‘(5) no additional fee may be assessed for adjustments

to an amount previously certified pursuant to such section

452(b) with respect to the same obligor.’’; and

(4) by striking ‘‘Secretary of Health, Education, and Welfare’’ each place it appears and inserting ‘‘Secretary of Health

and Human Services’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall become effective October 1, 1997.
H. R. 4—124

SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

(a) CONSOLIDATION AND STREAMLINING OF AUTHORITIES.—Section 459 (42 U.S.C. 659) is amended to read as follows:

‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, GARNISHMENT, AND SIMILAR PROCEEDINGS FOR

ENFORCEMENT OF CHILD SUPPORT AND ALIMONY

OBLIGATIONS.

‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Notwithstanding

any other provision of law (including section 207 of this Act and

section 5301 of title 38, United States Code), effective January

1, 1975, moneys (the entitlement to which is based upon remuneration for employment) due from, or payable by, the United States

or the District of Columbia (including any agency, subdivision,

or instrumentality thereof) to any individual, including members

of the Armed Forces of the United States, shall be subject, in

like manner and to the same extent as if the United States or

the District of Columbia were a private person, to withholding

in accordance with State law enacted pursuant to subsections (a)(1)

and (b) of section 466 and regulations of the Secretary under such

subsections, and to any other legal process brought, by a State

agency administering a program under a State plan approved under

this part or by an individual obligee, to enforce the legal obligation

of the individual to provide child support or alimony.

‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO PRIVATE PERSON.—With respect to notice to withhold income pursuant to subsection (a)(1) or (b) of section 466, or any other order or process

to enforce support obligations against an individual (if the order

or process contains or is accompanied by sufficient data to permit

prompt identification of the individual and the moneys involved),

each governmental entity specified in subsection (a) shall be subject

to the same requirements as would apply if the entity were a

private person, except as otherwise provided in this section.

‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE OR

PROCESS—

‘‘(1) DESIGNATION OF AGENT.—The head of each agency

subject to this section shall—

‘‘(A) designate an agent or agents to receive orders

and accept service of process in matters relating to child

support or alimony; and

‘‘(B) annually publish in the Federal Register the designation of the agent or agents, identified by title or position, mailing address, and telephone number.

‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an agent designated pursuant to paragraph (1) of this subsection receives

notice pursuant to State procedures in effect pursuant to subsection (a)(1) or (b) of section 466, or is effectively served

with any order, process, or interrogatory, with respect to an

individual’s child support or alimony payment obligations, the

agent shall—

‘‘(A) as soon as possible (but not later than 15 days)

thereafter, send written notice of the notice or service

(together with a copy of the notice or service) to the individual at the duty station or last-known home address of

the individual;
H. R. 4—125

‘‘(B) within 30 days (or such longer period as may

be prescribed by applicable State law) after receipt of a

notice pursuant to such State procedures, comply with all

applicable provisions of section 466; and

‘‘(C) within 30 days (or such longer period as may

be prescribed by applicable State law) after effective service

of any other such order, process, or interrogatory, respond

to the order, process, or interrogatory.

‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity specified

in subsection (a) receives notice or is served with process, as provided in this section, concerning amounts owed by an individual

to more than 1 person—

‘‘(1) support collection under section 466(b) must be given

priority over any other process, as provided in section 466(b)(7);

‘‘(2) allocation of moneys due or payable to an individual

among claimants under section 466(b) shall be governed by

section 466(b) and the regulations prescribed under such section; and

‘‘(3) such moneys as remain after compliance with paragraphs (1) and (2) shall be available to satisfy any other such

processes on a first-come, first-served basis, with any such

process being satisfied out of such moneys as remain after

the satisfaction of all such processes which have been previously

served.

‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A governmental

entity that is affected by legal process served for the enforcement

of an individual’s child support or alimony payment obligations

shall not be required to vary its normal pay and disbursement

cycle in order to comply with the legal process.

‘‘(f) RELIEF FROM LIABILITY.—

‘‘(1) Neither the United States, nor the government of the

District of Columbia, nor any disbursing officer shall be liable

with respect to any payment made from moneys due or payable

from the United States to any individual pursuant to legal

process regular on its face, if the payment is made in accordance

with this section and the regulations issued to carry out this

section.

‘‘(2) No Federal employee whose duties include taking

actions necessary to comply with the requirements of subsection

(a) with regard to any individual shall be subject under any

law to any disciplinary action or civil or criminal liability or

penalty for, or on account of, any disclosure of information

made by the employee in connection with the carrying out

of such actions.

‘‘(g) REGULATIONS.—Authority to promulgate regulations for the

implementation of this section shall, insofar as this section applies

to moneys due from (or payable by)—

‘‘(1) the United States (other than the legislative or judicial

branches of the Federal Government) or the government of

the District of Columbia, be vested in the President (or the

designee of the President);

‘‘(2) the legislative branch of the Federal Government, be

vested jointly in the President pro tempore of the Senate and

the Speaker of the House of Representatives (or their designees), and
H. R. 4—126

‘‘(3) the judicial branch of the Federal Government, be

vested in the Chief Justice of the United States (or the designee

of the Chief Justice).

‘‘(h) MONEYS SUBJECT TO PROCESS.—

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

or payable to an individual which are considered to be based

upon remuneration for employment, for purposes of this

section—

‘‘(A) consist of—

‘‘(i) compensation paid or payable for personal services of the individual, whether the compensation is

denominated as wages, salary, commission, bonus, pay,

allowances, or otherwise (including severance pay, sick

pay, and incentive pay);

‘‘(ii) periodic benefits (including a periodic benefit

as defined in section 228(h)(3)) or other payments—

‘‘(I) under the insurance system established

by title II;

‘‘(II) under any other system or fund established by the United States which provides for

the payment of pensions, retirement or retired pay,

annuities, dependents’ or survivors’ benefits, or

similar amounts payable on account of personal

services performed by the individual or any other

individual;

‘‘(III) as compensation for death under any

Federal program;

‘‘(IV) under any Federal program established

to provide ‘black lung’ benefits; or ‘‘(V) by the Secretary of Veterans Affairs as

compensation for a service-connected disability

paid by the Secretary to a former member of the

Armed Forces who is in receipt of retired or

retainer pay if the former member has waived

a portion of the retired or retainer pay in order

to receive such compensation; and

‘‘(iii) worker’s compensation benefits paid under

Federal or State law but

‘‘(B) do not include any payment— ‘‘(i) by way of reimbursement or otherwise, to

defray expenses incurred by the individual in carrying

out duties associated with the employment of the

individual; or

‘‘(ii) as allowances for members of the uniformed

services payable pursuant to chapter 7 of title 37,

United States Code, as prescribed by the Secretaries

concerned (defined by section 101(5) of such title) as

necessary for the efficient performance of duty.

‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In determining the

amount of any moneys due from, or payable by, the United

States to any individual, there shall be excluded amounts

which—

‘‘(A) are owed by the individual to the United States;

‘‘(B) are required by law to be, and are, deducted

from the remuneration or other payment involved, including Federal employment taxes, and fines and forfeitures

ordered by court-martial;
H. R. 4—127

‘‘(C) are properly withheld for Federal, State, or local

income tax purposes, if the withholding of the amounts

is authorized or required by law and if amounts withheld

are not greater than would be the case if the individual

claimed all dependents to which he was entitled (the

withholding of additional amounts pursuant to section

3402(i) of the Internal Revenue Code of 1986 may be permitted only when the individual presents evidence of a

tax obligation which supports the additional withholding);

‘‘(D) are deducted as health insurance premiums;

‘‘(E) are deducted as normal retirement contributions

(not including amounts deducted for supplementary coverage); or

‘‘(F) are deducted as normal life insurance premiums

from salary or other remuneration for employment (not

including amounts deducted for supplementary coverage).

‘‘(i) DEFINITIONS.—For purposes of this section—

‘‘(1) UNITED STATES.—The term ‘United States’ includes

any department, agency, or instrumentality of the legislative,

judicial, or executive branch of the Federal Government, the

United States Postal Service, the Postal Rate Commission, any

Federal corporation created by an Act of Congress that is wholly

owned by the Federal Government, and the governments of

the territories and possessions of the United States.

‘‘(2) CHILD SUPPORT.—The term ‘child support’, when used

in reference to the legal obligations of an individual to provide

such support, means amounts required to be paid under a

judgment, decree, or order, whether temporary, final, or subject

to modification, issued by a court or an administrative agency

of competent jurisdiction, for the support and maintenance

of a child, including a child who has attained the age of majority

under the law of the issuing State, or a child and the parent

with whom the child is living, which provides for monetary

support, health care, arrearages or reimbursement, and which

may include other related costs and fees, interest and penalties,

income withholding, attorney’s fees, and other relief. ‘‘(3) ALIMONY.— ‘‘(A) IN GENERAL.—The term ‘alimony’, when used in

reference to the legal obligations of an individual to provide

the same, means periodic payments of funds for the support

and maintenance of the spouse (or former spouse) of the

individual, and (subject to and in accordance with State

law) includes separate maintenance, alimony pendente lite,

maintenance, and spousal support, and includes attorney’s

fees, interest, and court costs when and to the extent

that the same are expressly made recoverable as such

pursuant to a decree, order, or judgment issued in accordance with applicable State law by a court of competent

jurisdiction.

‘‘(B) EXCEPTIONS.—Such term does not include—

‘‘(i) any child support; or

‘‘(ii) any payment or transfer of property or its

value by an individual to the spouse or a former spouse

of the individual in compliance with any community

property settlement, equitable distribution of property,

or other division of property between spouses or former

spouses.
H. R. 4—128

‘‘(4) PRIVATE PERSON.—The term ‘private person’ means

a person who does not have sovereign or other special immunity

or privilege which causes the person not to be subject to legal

process.

‘‘(5) LEGAL PROCESS.—The term ‘legal process’ means any

writ, order, summons, or other similar process in the nature

of garnishment—

‘‘(A) which is issued by—

‘‘(i) a court or an administrative agency of competent jurisdiction in any State, territory, or possession

of the United States;

‘‘(ii) a court or an administrative agency of competent jurisdiction in any foreign country with which

the United States has entered into an agreement which

requires the United States to honor the process; or

‘‘(iii) an authorized official pursuant to an order

of such a court or an administrative agency of competent jurisdiction or pursuant to State or local law;

and

‘‘(B) which is directed to, and the purpose of which

is to compel, a governmental entity which holds moneys

which are otherwise payable to an individual to make

a payment from the moneys to another party in order

to satisfy a legal obligation of the individual to provide

child support or make alimony payments.’’.

(b) CONFORMING AMENDMENTS.—

(1) TO PART D OF TITLE IV.—Sections 461 and 462 (42

U.S.C. 661 and 662) are repealed.

(2) TO TITLE 5, UNITED STATES CODE.—Section 5520a of

title 5, United States Code, is amended, in subsections (h)(2)

and (i), by striking ‘‘sections 459, 461, and 462 of the Social

Security Act (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘section 459 of the Social Security Act (42 U.S.C. 659)’’.

(c) MILITARY RETIRED AND RETAINER PAY.—

(1) DEFINITION OF COURT.—Section 1408(a)(1) of title 10,

United States Code, is amended—

(A) by striking ‘‘and’’ at the end of subparagraph (B);

(B) by striking the period at the end of subparagraph

(C) and inserting ‘‘; and’’; and

(C) by adding after subparagraph (C) the following:

new subparagraph:

‘‘(D) any administrative or judicial tribunal of a State

competent to enter orders for support or maintenance

(including a State agency administering a program under

a State plan approved under part D of title IV of the

Social Security Act), and, for purposes of this subparagraph,

the term ‘State’ includes the District of Columbia, the

Commonwealth of Puerto Rico, the Virgin Islands, Guam,

and American Samoa.’’.

(2) DEFINITION OF COURT ORDER.—Section 1408(a)(2) of

such title is amended—

(A) by inserting ‘‘or a support order, as defined in

section 453(p) of the Social Security Act (42 U.S.C. 653(p)),’’

before ‘‘which—’’;

(B) in subparagraph (B)(i), by striking ‘‘(as defined

in section 462(b) of the Social Security Act (42 U.S.C.
H. R. 4—129

662(b)))’’ and inserting ‘‘(as defined in section 459(i)(2) of

the Social Security Act (42 U.S.C. 662(i)(2)))’’; and

(C) in subparagraph (B)(ii), by striking ‘‘(as defined

in section 462(c) of the Social Security Act (42 U.S.C.

662(c)))’’ and inserting ‘‘(as defined in section 459(i)(3) of

the Social Security Act (42 U.S.C. 662(i)(3)))’’.

(3) PUBLIC PAYEE.—Section 1408(d) of such title is

amended—

(A) in the heading, by inserting ‘‘(OR FOR BENEFIT

OF)’’ before ‘‘SPOUSE OR’’; and

(B) in paragraph (1), in the 1st sentence, by inserting

‘‘(or for the benefit of such spouse or former spouse to

a State disbursement unit established pursuant to section

454B of the Social Security Act or other public payee designated by a State, in accordance with part D of title

IV of the Social Security Act, as directed by court order,

or as otherwise directed in accordance with such part D)’’

before ‘‘in an amount sufficient’’.

(4) RELATIONSHIP TO PART D OF TITLE IV.—Section 1408

of such title is amended by adding at the end the following

new subsection:

‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case involving an

order providing for payment of child support (as defined in section

459(i)(2) of the Social Security Act) by a member who has never

been married to the other parent of the child, the provisions of

this section shall not apply, and the case shall be subject to the

provisions of section 459 of such Act.’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall become effective 6 months after the date of the enactment

of this Act.

SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE ARMED FORCES.

(a) AVAILABILITY OF LOCATOR INFORMATION.— (1) MAINTENANCE OF ADDRESS INFORMATION.—The Secretary of Defense shall establish a centralized personnel locator

service that includes the address of each member of the Armed

Forces under the jurisdiction of the Secretary. Upon request

of the Secretary of Transportation, addresses for members of

the Coast Guard shall be included in the centralized personnel

locator service.

(2) TYPE OF ADDRESS.— (A) RESIDENTIAL ADDRESS.—Except as provided in

subparagraph (B), the address for a member of the Armed

Forces shown in the locator service shall be the residential

address of that member.

(B) DUTY ADDRESS.—The address for a member of the

Armed Forces shown in the locator service shall be the

duty address of that member in the case of a member—

(i) who is permanently assigned overseas, to a

vessel, or to a routinely deployable unit; or

(ii) with respect to whom the Secretary concerned

makes a determination that the member’s residential

address should not be disclosed due to national security

or safety concerns.

(3) UPDATING OF LOCATOR INFORMATION.—Within 30 days

after a member listed in the locator service establishes a new
H. R. 4—130

residential address (or a new duty address, in the case of

a member covered by paragraph (2)(B)), the Secretary concerned

shall update the locator service to indicate the new address

of the member.

(4) AVAILABILITY OF INFORMATION.—The Secretary of

Defense shall make information regarding the address of a

member of the Armed Forces listed in the locator service available, on request, to the Federal Parent Locator Service established under section 453 of the Social Security Act.

(b) FACILITATING GRANTING OF LEAVE FOR ATTENDANCE AT

HEARINGS.—

(1) REGULATIONS.—The Secretary of each military department, and the Secretary of Transportation with respect to the

Coast Guard when it is not operating as a service in the

Navy, shall prescribe regulations to facilitate the granting of

leave to a member of the Armed Forces under the jurisdiction

of that Secretary in a case in which—

(A) the leave is needed for the member to attend a

hearing described in paragraph (2);

(B) the member is not serving in or with a unit

deployed in a contingency operation (as defined in section

101 of title 10, United States Code); and

(C) the exigencies of military service (as determined

by the Secretary concerned) do not otherwise require that

such leave not be granted.

(2) COVERED HEARINGS.—Paragraph (1) applies to a hearing

that is conducted by a court or pursuant to an administrative

process established under State law, in connection with a civil

action—

(A) to determine whether a member of the Armed

Forces is a natural parent of a child; or

(B) to determine an obligation of a member of the

Armed Forces to provide child support.

(3) DEFINITIONS.—For purposes of this subsection—

(A) The term ‘‘court’’ has the meaning given that term in section 1408(a) of title 10, United States Code.

(B) The term ‘‘child support’’ has the meaning given such term in section 459(i) of the Social Security Act (42

U.S.C. 659(i)).

(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLIANCE WITH

CHILD SUPPORT ORDERS.— (1) DATE OF CERTIFICATION OF COURT ORDER.—Section 1408

of title 10, United States Code, as amended by section 362(c)(4)

of this Act, is amended—

(A) by redesignating subsections (i) and (j) as subsections (j) and (k), respectively; and

(B) by inserting after subsection (h) the following new

subsection:

‘‘(i) CERTIFICATION DATE.—It is not necessary that the date

of a certification of the authenticity or completeness of a copy

of a court order for child support received by the Secretary concerned for the purposes of this section be recent in relation to

the date of receipt by the Secretary.’’.

(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS OF RIGHTS

TO STATES.—Section 1408(d)(1) of such title is amended by

inserting after the 1st sentence the following new sentence:

‘‘In the case of a spouse or former spouse who, pursuant to
H. R. 4—131

section 408(a)(4) of the Social Security Act (42 U.S.C. 607(a)(4)),

assigns to a State the rights of the spouse or former spouse

to receive support, the Secretary concerned may make the

child support payments referred to in the preceding sentence

to that State in amounts consistent with that assignment of

rights.’’. (3) ARREARAGES OWED BY MEMBERS OF THE UNIFORMED

SERVICES.—Section 1408(d) of such title is amended by adding at the end the following new paragraph:

‘‘(6) In the case of a court order for which effective service

is made on the Secretary concerned on or after the date of the

enactment of this paragraph and which provides for payments

from the disposable retired pay of a member to satisfy the amount

of child support set forth in the order, the authority provided

in paragraph (1) to make payments from the disposable retired

pay of a member to satisfy the amount of child support set forth

in a court order shall apply to payment of any amount of child

support arrearages set forth in that order as well as to amounts

of child support that currently become due.’’. (4) PAYROLL DEDUCTIONS.—The Secretary of Defense shall begin payroll deductions within 30 days after receiving notice

of withholding, or for the 1st pay period that begins after

such 30-day period.

SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

Section 466 (42 U.S.C. 666), as amended by section 321 of this Act, is amended by adding at the end the following new

subsection:

‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In order to satisfy section 454(20)(A), each State must have in effect— ‘‘(1)(A) the Uniform Fraudulent Conveyance Act of 1981; ‘‘(B) the Uniform Fraudulent Transfer Act of 1984;

or

‘‘(C) another law, specifying indicia of fraud which create a prima facie case that a debtor transferred income

or property to avoid payment to a child support creditor,

which the Secretary finds affords comparable rights to

child support creditors; and

‘‘(2) procedures under which, in any case in which the State knows of a transfer by a child support debtor with respect

to which such a prima facie case is established, the State

must—

‘‘(A) seek to void such transfer; or

‘‘(B) obtain a settlement in the best interests of the

child support creditor.’’.

SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE

CHILD SUPPORT.

(a) IN GENERAL.—Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as amended by sections 315, 317(a), and 323

of this Act, is amended by adding at the end the following new

paragraph: ‘‘(15) PROCEDURES TO ENSURE THAT PERSONS OWING PASTDUE SUPPORT WORK OR HAVE A PLAN FOR PAYMENT OF SUCH

SUPPORT.—

‘‘(A) IN GENERAL.—Procedures under which the State

has the authority, in any case in which an individual

owes past-due support with respect to a child receiving
H. R. 4—132

assistance under a State program funded under part A,

to seek a court order that requires the individual to— ‘‘(i) pay such support in accordance with a plan approved by the court, or, at the option of the State,

a plan approved by the State agency administering

the State program under this part; or ‘‘(ii) if the individual is subject to such a plan and is not incapacitated, participate in such work

activities (as defined in section 407(d)) as the court,

or, at the option of the State, the State agency administering the State program under this part, deems

appropriate.

‘‘(B) PAST-DUE SUPPORT DEFINED.—For purposes of subparagraph (A), the term ‘past-due support’ means the

amount of a delinquency, determined under a court order,

or an order of an administrative process established under

State law, for support and maintenance of a child, or of

a child and the parent with whom the child is living.’’. (b) CONFORMING AMENDMENT.—The flush paragraph at the end of section 466(a) (42 U.S.C.666(a)) is amended by striking ‘‘and

(7)’’ and inserting ‘‘(7), and (15)’’.

SEC. 366. DEFINITION OF SUPPORT ORDER.

Section 453 (42 U.S.C. 653) as amended by sections 316 and 345(b) of this Act, is amended by adding at the end the following

new subsection:

‘‘(p) SUPPORT ORDER DEFINED.—As used in this part, the term

‘support order’ means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or an

administrative agency of competent jurisdiction, for the support

and maintenance of a child, including a child who has attained

the age of majority under the law of the issuing State, or a child

and the parent with whom the child is living, which provides

for monetary support, health care, arrearages, or reimbursement,

and which may include related costs and fees, interest and penalties,

income withholding, attorneys’ fees, and other relief.’’.

SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as

follows:

‘‘(7) REPORTING ARREARAGES TO CREDIT BUREAUS.— ‘‘(A) IN GENERAL.—Procedures (subject to safeguards pursuant to subparagraph (B)) requiring the State to report

periodically to consumer reporting agencies (as defined in

section 603(f) of the Fair Credit Reporting Act (15 U.S.C.

1681a(f)) the name of any noncustodial parent who is delinquent in the payment of support, and the amount of overdue support owed by such parent. ‘‘(B) SAFEGUARDS.—Procedures ensuring that, in carry- ing out subparagraph (A), information with respect to a

noncustodial parent is reported—

‘‘(i) only after such parent has been afforded all

due process required under State law, including notice

and a reasonable opportunity to contest the accuracy

of such information; and

‘‘(ii) only to an entity that has furnished evidence

satisfactory to the State that the entity is a consumer

reporting agency (as so defined).’’.
H. R. 4—133

SEC. 368. LIENS.

Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as

follows:

‘‘(4) LIENS.—Procedures under which—

‘‘(A) liens arise by operation of law against real and

personal property for amounts of overdue support owed

by a noncustodial parent who resides or owns property

in the State; and

‘‘(B) the State accords full faith and credit to liens

described in subparagraph (A) arising in another State,

without registration of the underlying order.’’.

SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,

317(a), 323, and 365 of this Act, is amended by adding at the

end the following:

‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND LICENSES.—

Procedures under which the State has (and uses in appropriate

cases) authority to withhold or suspend, or to restrict the use

of driver’s licenses, professional and occupational licenses, and

recreational licenses of individuals owing overdue support or

failing, after receiving appropriate notice, to comply with

subpoenas or warrants relating to paternity or child support

proceedings.’’.

SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD

SUPPORT.

(a) HHS CERTIFICATION PROCEDURE.— (1) SECRETARIAL RESPONSIBILITY.—Section 452 (42 U.S.C.

652), as amended by section 345 of this Act, is amended by

adding at the end the following new subsection:

‘‘(k)(1) If the Secretary receives a certification by a State agency in accordance with the requirements of section 454(31) that an

individual owes arrearages of child support in an amount exceeding

$5,000, the Secretary shall transmit such certification to the Secretary of State for action (with respect to denial, revocation, or

limitation of passports) pursuant to section 370(b) of the Personal

Responsibility and Work Opportunity Act of 1995. ‘‘(2) The Secretary shall not be liable to an individual for

any action with respect to a certification by a State agency under

this section.’’.

(2) STATE CASE AGENCY RESPONSIBILITY.—Section 454 (42

U.S.C. 654), as amended by sections 301(b), 303(a), 312(b),

313(a), 333, and 343(b) of this Act, is amended—

(A) by striking ‘‘and’’ at the end of paragraph (29);

(B) by striking the period at the end of paragraph

(30) and inserting ‘‘; and’’; and

(C) by adding after paragraph (30) the following new

paragraph:

‘‘(31) provide that the State agency will have in effect

a procedure for certifying to the Secretary, for purposes of

the procedure under section 452(k), determinations that individuals owe arrearages of child support in an amount exceeding

$5,000, under which procedure—

‘‘(A) each individual concerned is afforded notice of

such determination and the consequences thereof, and an

opportunity to contest the determination; and
H. R. 4—134

‘‘(B) the certification by the State agency is furnished

to the Secretary in such format, and accompanied by such

supporting documentation, as the Secretary may require.’’.

(b) STATE DEPARTMENT PROCEDURE FOR DENIAL OF

PASSPORTS.—

(1) IN GENERAL.—The Secretary of State shall, upon certification by the Secretary of Health and Human Services

transmitted under section 452(k) of the Social Security Act,

refuse to issue a passport to such individual, and may revoke,

restrict, or limit a passport issued previously to such individual.

(2) LIMIT ON LIABILITY.—The Secretary of State shall not

be liable to an individual for any action with respect to a

certification by a State agency under this section.

(c) EFFECTIVE DATE.—This section and the amendments made

by this section shall become effective October 1, 1996.

SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

(a) AUTHORITY FOR INTERNATIONAL AGREEMENTS.—Part D of

title IV, as amended by section 362(a) of this Act, is amended

by adding after section 459 the following new section:

‘‘SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

‘‘(a) AUTHORITY FOR DECLARATIONS.—

‘‘(1) DECLARATION.—The Secretary of State, with the

concurrence of the Secretary of Health and Human Services,

is authorized to declare any foreign country (or a political

subdivision thereof) to be a foreign reciprocating country if

the foreign country has established, or undertakes to establish,

procedures for the establishment and enforcement of duties

of support owed to obligees who are residents of the United

States, and such procedures are substantially in conformity

with the standards prescribed under subsection (b).

‘‘(2) REVOCATION.—A declaration with respect to a foreign country made pursuant to paragraph (1) may be revoked if

the Secretaries of State and Health and Human Services determine that—

‘‘(A) the procedures established by the foreign nation

regarding the establishment and enforcement of duties of

support have been so changed, or the foreign nation’s

implementation of such procedures is so unsatisfactory,

that such procedures do not meet the criteria for such

a declaration; or

‘‘(B) continued operation of the declaration is not

consistent with the purposes of this part.

‘‘(3) FORM OF DECLARATION.—A declaration under paragraph (1) may be made in the form of an international agreement, in connection with an international agreement or corresponding foreign declaration, or on a unilateral basis.

‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCEMENT PROCEDURES.—

‘‘(1) MANDATORY ELEMENTS.—Child support enforcement

procedures of a foreign country which may be the subject of

a declaration pursuant to subsection (a)(1) shall include the

following elements:

‘‘(A) The foreign country (or political subdivision

thereof) has in effect procedures, available to residents

of the United States—
H. R. 4—135

‘‘(i) for establishment of paternity, and for

establishment of orders of support for children and

custodial parents; and

‘‘(ii) for enforcement of orders to provide support

to children and custodial parents, including procedures

for collection and appropriate distribution of support

payments under such orders.

‘‘(B) The procedures described in subparagraph (A),

including legal and administrative assistance, are provided

to residents of the United States at no cost.

‘‘(C) An agency of the foreign country is designated

as a Central Authority responsible for—

‘‘(i) facilitating child support enforcement in cases involving

residents of the foreign nation and residents of the United

States; and

‘‘(ii) ensuring compliance with the standards established

pursuant to this subsection.

‘‘(2) ADDITIONAL ELEMENTS.—The Secretary of Health and

Human Services and the Secretary of State, in consultation

with the States, may establish such additional standards as

may be considered necessary to further the purposes of this

section.

‘‘(c) DESIGNATION OF UNITED STATES CENTRAL AUTHORITY.—

It shall be the responsibility of the Secretary of Health and Human

Services to facilitate child support enforcement in cases involving

residents of the United States and residents of foreign nations

that are the subject of a declaration under this section, by activities

including—

‘‘(1) development of uniform forms and procedures for use

in such cases;

‘‘(2) notification of foreign reciprocating countries of the

State of residence of individuals sought for support enforcement

purposes, on the basis of information provided by the Federal

Parent Locator Service; and

‘‘(3) such other oversight, assistance, and coordination

activities as the Secretary may find necessary and appropriate.

‘‘(d) EFFECT ON OTHER LAWS.—States may enter into reciprocal

arrangements for the establishment and enforcement of child support obligations with foreign countries that are not the subject

of a declaration pursuant to subsection (a), to the extent consistent

with Federal law.’’.

(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),

as amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b),

and 370(a)(2) of this Act, is amended—

(1) by striking ‘‘and’’ at the end of paragraph (30);

(2) by striking the period at the end of paragraph (31)

and inserting ‘‘; and’’; and

(3) by adding after paragraph (31) the following new paragraph:

‘‘(32)(A) provide that any request for services under this

part by a foreign reciprocating country or a foreign country

with which the State has an arrangement described in section

459A(d)(2) shall be treated as a request by a State;

‘‘(B) provide, at State option, notwithstanding paragraph

(4) or any other provision of this part, for services under the

plan for enforcement of a spousal support order not described
H. R. 4—136

in paragraph (4)(B) entered by such a country (or subdivision);

and

‘‘(C) provide that no applications will be required from,

and no costs will be assessed for such services against, the

foreign reciprocating country or foreign obligee (but costs may

at State option be assessed against the obligor).’’.

SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,

317(a), 323, 365, and 369 of this Act, is amended by adding at

the end the following new paragraph:

‘‘(17) FINANCIAL INSTITUTION DATA MATCHES.—

‘‘(A) IN GENERAL.—Procedures under which the State

agency shall enter into agreements with financial institutions doing business in the State—

‘‘(i) to develop and operate, in coordination with

such financial institutions, a data match system, using

automated data exchanges to the maximum extent feasible, in which each such financial institution is

required to provide for each calendar quarter the name,

record address, social security number or other taxpayer identification number, and other identifying

information for each noncustodial parent who maintains an account at such institution and who owes

past-due support, as identified by the State by name

and social security number or other taxpayer identification number; and

‘‘(ii) in response to a notice of lien or levy, encumber or surrender, as the case may be, assets held

by such institution on behalf of any noncustodial parent

who is subject to a child support lien pursuant to

paragraph (4).

‘‘(B) REASONABLE FEES.—The State agency may pay

a reasonable fee to a financial institution for conducting

the data match provided for in subparagraph (A)(i), not

to exceed the actual costs incurred by such financial institution.

‘‘(C) LIABILITY.—A financial institution shall not be

liable under any Federal or State law to any person— ‘‘(i) for any disclosure of information to the State agency under subparagraph (A)(i); ‘‘(ii) for encumbering or surrendering any assets

held by such financial institution in response to a

notice of lien or levy issued by the State agency as

provided for in subparagraph (A)(ii); or

‘‘(iii) for any other action taken in good faith to

comply with the requirements of subparagraph (A).

‘‘(D) DEFINITIONS.—For purposes of this paragraph—

‘‘(i) FINANCIAL INSTITUTION.—The term ‘financial

institution’ means any Federal or State commercial

savings bank, including savings association or cooperative bank, Federal- or State-chartered credit union,

benefit association, insurance company, safe deposit

company, money-market mutual fund, or any similar

entity authorized to do business in the State; and

‘‘(ii) ACCOUNT.—The term ‘account’ means a

demand deposit account, checking or negotiable with-
H. R. 4—137

drawal order account, savings account, time deposit

account, or money-market mutual fund account.’’.

SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL GRANDPARENTS IN CASES OF MINOR PARENTS.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 317(a), 323, 365, 369, and 372 of this Act, is amended by adding

at the end the following new paragraph: ‘‘(18) ENFORCEMENT OF ORDERS AGAINST PATERNAL OR

MATERNAL GRANDPARENTS.—Procedures under which, at the

State’s option, any child support order enforced under this

part with respect to a child of minor parents, if the custodial

parents of such child is receiving assistance under the State

program under part A, shall be enforceable, jointly and severally, against the parents of the noncustodial parents of such

child.’’.

SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN

DEBTS FOR THE SUPPORT OF A CHILD.

(a) AMENDMENT TO TITLE 11 OF THE UNITED STATES CODE.— Section 523(a) of title 11, United States Code, is amended—

(1) in paragraph (16) by striking the period at the end and inserting ‘‘; or’’, (2) by adding at the end the following:

‘‘(17) to a State or municipality for assistance provided by such State or municipality under a State program funded

under section 403 of the Social Security Act to the extent

that such assistance is provided for the support of a child

of the debtor.’’, and

(3) in paragraph (5), by inserting ‘‘ or section 408’’ after ‘‘section 402(a)(26).

(b) AMENDMENT TO THE SOCIAL SECURITY ACT.—Section 456(b)

of the Social Security Act (42 U.S.C. 656(b)) is amended to read

as follows:

‘‘(b) NONDISCHARGEABILITY.—A debt (as defined in section 101

of title 11 of the United States Code) to a State (as defined in

such section) or municipality (as defined in such section) for assistance provided by such State or municipality under a State program

funded under section 403 is not dischargeable under section 727,

1141, 1228(a), 1228(b), or 1328(b) of title 11 of the United States

Code to the extent that such assistance is provided for the support

of a child of the debtor (as defined in such section).’’.

(c) APPLICATION OF AMENDMENTS.—The amendments made by

this section shall apply only with respect to cases commenced under

title 11 of the United States Code after the effective date of this

section.

Subtitle H—Medical Support

SEC. 376. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD

SUPPORT ORDER.

(a) IN GENERAL.—Section 609(a)(2)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is

amended—

(1) by striking ‘‘issued by a court of competent jurisdiction’’;

(2) by striking the period at the end of clause (ii) and

inserting a comma; and
H. R. 4—138

(3) by adding, after and below clause (ii), the following:

‘‘if such judgment, decree, or order (I) is issued by a court

of competent jurisdiction or (II) is issued through an

administrative process established under State law and

has the force and effect of law under applicable State

law.’’.

(b) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section

shall take effect on the date of the enactment of this Act.

(2) PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1,

1996.—Any amendment to a plan required to be made by an

amendment made by this section shall not be required to be

made before the 1st plan year beginning on or after January

1, 1996, if—

(A) during the period after the date before the date

of the enactment of this Act and before such 1st plan

year, the plan is operated in accordance with the requirements of the amendments made by this section; and

(B) such plan amendment applies retroactively to the

period after the date before the date of the enactment

of this Act and before such 1st plan year.

A plan shall not be treated as failing to be operated in accordance with the provisions of the plan merely because it operates

in accordance with this paragraph.

SEC. 377. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,

317(a), 323, 365, 369, 372, and 373 of this Act, is amended by

adding at the end the following new paragraph: ‘‘(19) HEALTH CARE COVERAGE.—Procedures under which

all child support orders enforced pursuant to this part shall

include a provision for the health care coverage of the child,

and in the case in which a noncustodial parent provides such

coverage and changes employment, and the new employer provides health care coverage, the State agency shall transfer

notice of the provision to the employer, which notice shall

operate to enroll the child in the noncustodial parent’s health

plan, unless the noncustodial parent contests the notice.’’.

Subtitle I—Enhancing Responsibility and

Opportunity for Non-Residential Parents

SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITATION

PROGRAMS.

Part D of title IV (42 U.S.C. 651–669) is amended by adding

at the end the following:

‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION

PROGRAMS.

‘‘(a) IN GENERAL.—The Administration for Children and Families shall make grants under this section to enable States to establish and administer programs to support and facilitate noncustodial

parents’ access to and visitation of their children, by means of

activities including mediation (both voluntary and mandatory),

counseling, education, development of parenting plans, visitation

enforcement (including monitoring, supervision and neutral drop-
H. R. 4—139

off and pickup), and development of guidelines for visitation and

alternative custody arrangements.

‘‘(b) AMOUNT OF GRANT.—The amount of the grant to be made

to a State under this section for a fiscal year shall be an amount

equal to the lesser of—

‘‘(1) 90 percent of State expenditures during the fiscal

year for activities described in subsection (a); or

‘‘(2) the allotment of the State under subsection (c) for

the fiscal year.

‘‘(c) ALLOTMENTS TO STATES.—

‘‘(1) IN GENERAL.—The allotment of a State for a fiscal

year is the amount that bears the same ratio to the amount

appropriated for grants under this section for the fiscal year

as the number of children in the State living with only 1

biological parent bears to the total number of such children

in all States.

‘‘(2) MINIMUM ALLOTMENT.—The Administration for Children and Families shall adjust allotments to States under paragraph (1) as necessary to ensure that no State is allotted

less than—

‘‘(A) $50,000 for fiscal year 1996 or 1997; or

‘‘(B) $100,000 for any succeeding fiscal year.

‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES FOR SIMILAR

ACTIVITIES.—A State to which a grant is made under this section

may not use the grant to supplant expenditures by the State for

activities specified in subsection (a), but shall use the grant to

supplement such expenditures at a level at least equal to the

level of such expenditures for fiscal year 1995. ‘‘(e) STATE ADMINISTRATION.—Each State to which a grant is

made under this section—

‘‘(1) may administer State programs funded with the grant,

directly or through grants to or contracts with courts, local

public agencies, or non-profit private entities; ‘‘(2) shall not be required to operate such programs on

a statewide basis; and

‘‘(3) shall monitor, evaluate, and report on such programs

in accordance with regulations prescribed by the Secretary.’’.

Subtitle J—Effect of Enactment

SEC. 391. EFFECTIVE DATES.

(a) IN GENERAL.—Except as otherwise specifically provided (but subject to subsections (b) and (c))— (1) the provisions of this title requiring the enactment

or amendment of State laws under section 466 of the Social

Security Act, or revision of State plans under section 454 of

such Act, shall be effective with respect to periods beginning

on and after October 1, 1996; and

(2) all other provisions of this title shall become effective

upon the date of the enactment of this Act.

(b) GRACE PERIOD FOR STATE LAW CHANGES.—The provisions

of this title shall become effective with respect to a State on the

later of—

(1) the date specified in this title, or

(2) the effective date of laws enacted by the legislature

of such State implementing such provisions,
H. R. 4—140

but in no event later than the 1st day of the 1st calendar quarter

beginning after the close of the 1st regular session of the State

legislature that begins after the date of the enactment of this

Act. For purposes of the previous sentence, in the case of a State

that has a 2-year legislative session, each year of such session

shall be deemed to be a separate regular session of the State

legislature.

(c) GRACE PERIOD FOR STATE CONSTITUTIONAL AMENDMENT.—

A State shall not be found out of compliance with any requirement

enacted by this title if the State is unable to so comply without

amending the State constitution until the earlier of—

(1) 1 year after the effective date of the necessary State

constitutional amendment; or

(2) 5 years after the date of the enactment of this Act.

TITLE IV—RESTRICTING WELFARE AND

PUBLIC BENEFITS FOR ALIENS

SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE

AND IMMIGRATION.

The Congress makes the following statements concerning

national policy with respect to welfare and immigration:

(1) Self-sufficiency has been a basic principle of United

States immigration law since this country’s earliest immigration statutes.

(2) It continues to be the immigration policy of the United

States that—

(A) aliens within the nation’s borders not depend on

public resources to meet their needs, but rather rely on

their own capabilities and the resources of their families,

their sponsors, and private organizations, and (B) the availability of public benefits not constitute

an incentive for immigration to the United States.

(3) Despite the principle of self-sufficiency, aliens have

been applying for and receiving public benefits from Federal,

State, and local governments at increasing rates. (4) Current eligibility rules for public assistance and

unenforceable financial support agreements have proved wholly

incapable of assuring that individual aliens not burden the

public benefits system. (5) It is a compelling government interest to enact new

rules for eligibility and sponsorship agreements in order to

assure that aliens be self-reliant in accordance with national

immigration policy.

(6) It is a compelling government interest to remove the

incentive for illegal immigration provided by the availability

of public benefits.

(7) With respect to the State authority to make determinations concerning the eligibility of qualified aliens for public

benefits in this title, a State that chooses to follow the Federal

classification in determining the eligibility of such aliens for

public assistance shall be considered to have chosen the least

restrictive means available for achieving the compelling governmental interest of assuring that aliens be self-reliant in accordance with national immigration policy.
H. R. 4—141

Subtitle A—Eligibility for Federal Benefits

SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR

FEDERAL PUBLIC BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law

and except as provided in subsection (b), an alien who is not

a qualified alien (as defined section 431) is not eligible for any

Federal public benefit (as defined in subsection (c)).

(b) EXCEPTIONS.—

(1) Subsection (a) shall not apply with respect to the following Federal public benefits:

(A) Emergency medical services under title XIX or

XXI of the Social Security Act.

(B) Short-term, non-cash, in-kind emergency disaster

relief.

(C)(i) Public health assistance for immunizations.

(ii) Public health assistance for testing and treatment of a serious communicable disease if the Secretary of Health and Human Services determines that

it is necessary to prevent the spread of such disease.

(D) Programs, services, or assistance (such as soup

kitchens, crisis counseling and intervention, and short-term

shelter) specified by the Attorney General, in the Attorney

General’s sole and unreviewable discretion after consultation with appropriate Federal agencies and departments,

which (i) deliver in-kind services at the community level,

including through public or private nonprofit agencies; (ii)

do not condition the provision of assistance, the amount

of assistance provided, or the cost of assistance provided

on the individual recipient’s income or resources; and (iii)

are necessary for the protection of life or safety. (E) Programs for housing or community development

assistance or financial assistance administered by the Secretary of Housing and Urban Development, any program

under title V of the Housing Act of 1949, or any assistance

under section 306C of the Consolidated Farm and Rural

Development Act, to the extent that the alien is receiving

such a benefit on the date of the enactment of this Act.

(2) Subsection (a) shall not apply to any benefit payable

under title II of the Social Security Act to an alien who is

lawfully present in the United States as determined by the

Attorney General, to any benefit if nonpayment of such benefit

would contravene an international agreement described in section 233 of the Social Security Act, to any benefit if nonpayment

would be contrary to section 202(t) of the Social Security Act,

or to any benefit payable under title II of the Social Security

Act to which entitlement is based on an application filed in

or before the month in which this Act becomes law.

(c) FEDERAL PUBLIC BENEFIT DEFINED.—

(1) Except as provided in paragraph (2), for purposes of

this title the term ‘‘Federal public benefit’’ means—

(A) any grant, contract, loan, professional license, or

commercial license provided by an agency of the United

States or by appropriated funds of the United States; and

(B) any retirement, welfare, health, disability, public

or assisted housing, post-secondary education, food assist-
H. R. 4—142

ance, unemployment benefit, or any other similar benefit

for which payments or assistance are provided to an

individual, household, or family eligibility unit by an

agency of the United States or by appropriated funds of

the United States.

(2) Such term shall not apply—

(A) to any contract, professional license, or commercial

license for a nonimmigrant whose visa for entry is related

to such employment in the United States; or

(B) with respect to benefits for an alien who as a

work authorized nonimmigrant or as an alien lawfully

admitted for permanent residence under the Immigration

and Nationality Act qualified for such benefits and for

whom the United States under reciprocal treaty agreements is required to pay benefits, as determined by the

Attorney General, after consultation with the Secretary

of State.

SEC. 402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED ALIENS FOR

CERTAIN FEDERAL PROGRAMS.

(a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL PROGRAMS.—

(1) IN GENERAL.—Notwithstanding any other provision of

law and except as provided in paragraph (2), an alien who

is a qualified alien (as defined in section 431) is not eligible

for any specified Federal program (as defined in paragraph

(3)).

(2) EXCEPTIONS.—

(A) TIME-LIMITED EXCEPTION FOR REFUGEES AND

ASYLEES.—Paragraph (1) shall not apply to an alien until

5 years after the date— (i) an alien is admitted to the United States as

a refugee under section 207 of the Immigration and

Nationality Act; (ii) an alien is granted asylum under section 208

of such Act; or

(iii) an alien’s deportation is withheld under section 243(h) of such Act.

(B) CERTAIN PERMANENT RESIDENT ALIENS.—Paragraph (1) shall not apply to an alien who— (i) is lawfully admitted to the United States for

permanent residence under the Immigration and

Nationality Act; and (ii)(I) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security

Act or can be credited with such qualifying quarters

as provided under section 436, and (II) did not receive

any Federal means-tested public benefit (as defined

in section 403(c)) during any such quarter.

(C) VETERAN AND ACTIVE DUTY EXCEPTION.—Paragraph

(1) shall not apply to an alien who is lawfully residing

in any State and is—

(i) a veteran (as defined in section 101 of title

38, United States Code) with a discharge characterized

as an honorable discharge and not on account of

alienage,

(ii) on active duty (other than active duty for training) in the Armed Forces of the United States, or
H. R. 4—143

(iii) the spouse or unmarried dependent child of

an individual described in clause (i) or (ii).

(D) TRANSITION FOR ALIENS CURRENTLY RECEIVING

BENEFITS.—Paragraph (1) shall apply to the eligibility of

an alien for a program for months beginning on or after

January 1, 1997, if, on the date of the enactment of this

Act, the alien is lawfully residing in any State and is

receiving benefits under such program on the date of the

enactment of this Act.

(3) SPECIFIED FEDERAL PROGRAM DEFINED.—For purposes

of this title, the term ‘‘specified Federal program’’ means any

of the following:

(A) SSI.—The supplemental security income program

under title XVI of the Social Security Act.

(B) FOOD STAMPS.—The food stamp program as defined

in section 3(h) of the Food Stamp Act of 1977.

(b) LIMITED ELIGIBILITY FOR DESIGNATED FEDERAL PROGRAMS.—

(1) IN GENERAL.—Notwithstanding any other provision of

law and except as provided in section 403 and paragraph (2),

a State is authorized to determine the eligibility of an alien

who is a qualified alien (as defined in section 431) for any

designated Federal program (as defined in paragraph (3)).

(2) EXCEPTIONS.—Qualified aliens under this paragraph

shall be eligible for any designated Federal program.

(A) TIME-LIMITED EXCEPTION FOR REFUGEES AND

ASYLEES.—

(i) An alien who is admitted to the United States

as a refugee under section 207 of the Immigration

and Nationality Act until 5 years after the date of

an alien’s entry into the United States.

(ii) An alien who is granted asylum under section

208 of such Act until 5 years after the date of such

grant of asylum.

(iii) An alien whose deportation is being withheld

under section 243(h) of such Act until 5 years after

such withholding.

(B) CERTAIN PERMANENT RESIDENT ALIENS.—An alien

who—

(i) is lawfully admitted to the United States for

permanent residence under the Immigration and

Nationality Act; and

(ii)(I) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security

Act or can be credited with such qualifying quarters

as provided under section 436, and (II) did not receive

any Federal means-tested public benefit (as defined

in section 403(c)) during any such quarter.

(C) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien

who is lawfully residing in any State and is—

(i) a veteran (as defined in section 101 of title

38, United States Code) with a discharge characterized

as an honorable discharge and not on account of

alienage,

(ii) on active duty (other than active duty for training) in the Armed Forces of the United States, or
H. R. 4—144

(iii) the spouse or unmarried dependent child of

an individual described in clause (i) or (ii).

(D) TRANSITION FOR THOSE CURRENTLY RECEIVING

BENEFITS.—An alien who on the date of the enactment

of this Act is lawfully residing in any State and is receiving

benefits under such program on the date of the enactment

of this Act shall continue to be eligible to receive such

benefits until January 1, 1997.

(3) DESIGNATED FEDERAL PROGRAM DEFINED.—For purposes

of this title, the term ‘‘designated Federal program’’ means

any of the following:

(A) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES.—The

program of block grants to States for temporary assistance

for needy families under part A of title IV of the Social

Security Act.

(B) SOCIAL SERVICES BLOCK GRANT.—The program of

block grants to States for social services under title XX

of the Social Security Act.

(C) MEDICAID AND MEDIGRANT.—The program of medical assistance under title XIX and XXI of the Social Security

Act.

SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR

FEDERAL MEANS-TESTED PUBLIC BENEFIT.

(a) IN GENERAL.—Notwithstanding any other provision of law

and except as provided in subsection (b), an alien who is a qualified

alien (as defined in section 431) and who enters the United States

on or after the date of the enactment of this Act is not eligible

for any Federal means-tested public benefit (as defined in subsection

(c)) for a period of five years beginning on the date of the alien’s

entry into the United States with a status within the meaning

of the term ‘‘qualified alien’’.

(b) EXCEPTIONS.—The limitation under subsection (a) shall not

apply to the following aliens: (1) EXCEPTION FOR REFUGEES AND ASYLEES.— (A) An alien who is admitted to the United States

as a refugee under section 207 of the Immigration and

Nationality Act. (B) An alien who is granted asylum under section

208 of such Act.

(C) An alien whose deportation is being withheld under section 243(h) of such Act.

(2) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien who

is lawfully residing in any State and is— (A) a veteran (as defined in section 101 of title 38,

United States Code) with a discharge characterized as an

honorable discharge and not on account of alienage,

(B) on active duty (other than active duty for training)

in the Armed Forces of the United States, or

(C) the spouse or unmarried dependent child of an

individual described in subparagraph (A) or (B).

(c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DEFINED.—

(1) Except as provided in paragraph (2), for purposes of

this title, the term ‘‘Federal means-tested public benefit’’ means

a public benefit (including cash, medical, housing, and food

assistance and social services) of the Federal Government in

which the eligibility of an individual, household, or family eligi-
H. R. 4—145

bility unit for benefits, or the amount of such benefits, or

both are determined on the basis of income, resources, or financial need of the individual, household, or unit.

(2) Such term does not include the following:

(A) Emergency medical services under title XIX or

XXI of the Social Security Act.

(B) Short-term, non-cash, in-kind emergency disaster

relief.

(C) Assistance or benefits under the National School

Lunch Act.

(D) Assistance or benefits under the Child Nutrition

Act of 1966.

(E)(i) Public health assistance for immunizations.

(ii) Public health assistance for testing and treatment of a serious communicable disease if the Secretary of Health and Human Services determines that

it is necessary to prevent the spread of such disease.

(F) Payments for foster care and adoption assistance

under part B of title IV of the Social Security Act for

a child who would, in the absence of subsection (a), be

eligible to have such payments made on the child’s behalf

under such part, but only if the foster or adoptive parent

or parents of such child are not described under subsection

(a).

(G) Programs, services, or assistance (such as soup

kitchens, crisis counseling and intervention, and short-term

shelter) specified by the Attorney General, in the Attorney

General’s sole and unreviewable discretion after consultation with appropriate Federal agencies and departments,

which (i) deliver in-kind services at the community level,

including through public or private nonprofit agencies; (ii)

do not condition the provision of assistance, the amount

of assistance provided, or the cost of assistance provided

on the individual recipient’s income or resources; and (iii)

are necessary for the protection of life or safety. (H) Programs of student assistance under titles IV,

V, IX, and X of the Higher Education Act of 1965. (I) Means-tested programs under the Elementary and

Secondary Education Act of 1965.

SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

(a) NOTIFICATION.—Each Federal agency that administers a

program to which section 401, 402, or 403 applies shall, directly

or through the States, post information and provide general notification to the public and to program recipients of the changes regarding

eligibility for any such program pursuant to this title.

(b) INFORMATION REPORTING UNDER TITLE IV OF THE SOCIAL

SECURITY ACT.—Part A of title IV of the Social Security Act is

amended by inserting the following new section after section 411:

‘‘SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.

‘‘Each State to which a grant is made under section 403 of

title IV of the Social Security Act (as amended by section 103

of the Personal Responsibility and Work Opportunity Act of 1995)

shall, at least 4 times annually and upon request of the Immigration

and Naturalization Service, furnish the Immigration and Naturalization Service with the name and address of, and other identify-
H. R. 4—146

ing information on, any individual who the State knows is

unlawfully in the United States.’’. (c) SSI.—Section 1631(e) of such Act (42 U.S.C. 1383(e)) is

amended—

(1) by redesignating paragraphs (6) and (7) inserted by sections 206(d)(2) and 206(f)(1) of the Social Security Independence and Programs Improvement Act of 1994 (Public Law 103–

296; 108 Stat. 1514, 1515) as paragraphs (7) and (8), respectively; and (2) by adding at the end the following new paragraph:

‘‘(9) Notwithstanding any other provision of law, the Commissioner shall, at least 4 times annually and upon request

of the Immigration and Naturalization Service (hereafter in

this paragraph referred to as the ‘Service’), furnish the Service

with the name and address of, and other identifying information

on, any individual who the Commissioner knows is unlawfully

in the United States, and shall ensure that each agreement

entered into under section 1616(a) with a State provides that

the State shall furnish such information at such times with

respect to any individual who the State knows is unlawfully

in the United States.’’.

(d) INFORMATION REPORTING FOR HOUSING PROGRAMS.—Title

I of the United States Housing Act of 1937 (42 U.S.C. 1437 et

seq.), as amended by this Act, is further amended by adding at

the end the following new section:

‘‘SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND

OTHER AGENCIES.

‘‘Notwithstanding any other provision of law, the Secretary

shall, at least 4 times annually and upon request of the Immigration

and Naturalization Service (hereafter in this section referred to

as the ‘Service’), furnish the Service with the name and address

of, and other identifying information on, any individual who the

Secretary knows is unlawfully in the United States, and shall

ensure that each contract for assistance entered into under section

6 or 8 of this Act with a public housing agency provides that

the public housing agency shall furnish such information at such

times with respect to any individual who the public housing agency

knows is unlawfully in the United States.’’.

Subtitle B—Eligibility for State and Local

Public Benefits Programs

SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR

NONIMMIGRANTS INELIGIBLE FOR STATE AND LOCAL

PUBLIC BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law

and except as provided in subsections (b) and (d), an alien who

is not—

(1) a qualified alien (as defined in section 431),

(2) a nonimmigrant under the Immigration and Nationality

Act, or

(3) an alien who is paroled into the United States under

section 212(d)(5) of such Act for less than one year,

is not eligible for any State or local public benefit (as defined

in subsection (c)).
H. R. 4—147

(b) EXCEPTIONS.—Subsection (a) shall not apply with respect

to the following State or local public benefits:

(1) Emergency medical services under title XIX or XXI

of the Social Security Act.

(2) Short-term, non-cash, in-kind emergency disaster relief.

(3)(A) Public health assistance for immunizations.

(B) Public health assistance for testing and treatment

of a serious communicable disease if the Secretary of Health

and Human Services determines that it is necessary to

prevent the spread of such disease.

(4) Programs, services, or assistance (such as soup kitchens,

crisis counseling and intervention, and short-term shelter)

specified by the Attorney General, in the Attorney General’s

sole and unreviewable discretion after consultation with appropriate Federal agencies and departments, which (A) deliver

in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the

cost of assistance provided on the individual recipient’s income

or resources; and (C) are necessary for the protection of life

or safety.

(c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.—

(1) Except as provided in paragraph (2), for purposes of

this subtitle the term ‘‘State or local public benefit’’ means—

(A) any grant, contract, loan, professional license, or

commercial license provided by an agency of a State or

local government or by appropriated funds of a State or

local government; and

(B) any retirement, welfare, health, disability, public

or assisted housing, post-secondary education, food assistance, unemployment benefit, or any other similar benefit

for which payments or assistance are provided to an

individual, household, or family eligibility unit by an

agency of a State or local government or by appropriated

funds of a State or local government.

(2) Such term shall not apply—

(A) to any contract, professional license, or commercial

license for a nonimmigrant whose visa for entry is related

to such employment in the United States; or

(B) with respect to benefits for an alien who as a

work authorized nonimmigrant or as an alien lawfully

admitted for permanent residence under the Immigration

and Nationality Act qualified for such benefits and for

whom the United States under reciprocal treaty agreements is required to pay benefits, as determined by the

Secretary of State, after consultation with the Attorney

General.

(d) STATE AUTHORITY TO PROVIDE FOR ELIGIBILITY OF ILLEGAL

ALIENS FOR STATE AND LOCAL PUBLIC BENEFITS.—A State may

provide that an alien who is not lawfully present in the United

States is eligible for any State or local public benefit for which

such alien would otherwise be ineligible under subsection (a) only

through the enactment of a State law after the date of the enactment of this Act which affirmatively provides for such eligibility.
H. R. 4—148

SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED

ALIENS FOR STATE PUBLIC BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law

and except as provided in subsection (b), a State is authorized

to determine the eligibility for any State public benefits (as defined

in subsection (c) of an alien who is a qualified alien (as defined

in section 431), a nonimmigrant under the Immigration and

Nationality Act, or an alien who is paroled into the United States

under section 212(d)(5) of such Act for less than one year.

(b) EXCEPTIONS.—Qualified aliens under this subsection shall

be eligible for any State public benefits.

(1) TIME-LIMITED EXCEPTION FOR REFUGEES AND ASYLEES.—

(A) An alien who is admitted to the United States

as a refugee under section 207 of the Immigration and

Nationality Act until 5 years after the date of an alien’s

entry into the United States.

(B) An alien who is granted asylum under section

208 of such Act until 5 years after the date of such grant

of asylum.

(C) An alien whose deportation is being withheld under

section 243(h) of such Act until 5 years after such withholding.

(2) CERTAIN PERMANENT RESIDENT ALIENS.—An alien who—

(A) is lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act;

and

(B)(i) has worked 40 qualifying quarters of coverage

as defined under title II of the Social Security Act or

can be credited with such qualifying quarters as provided

under section 436, and (ii) did not receive any Federal

means-tested public benefit (as defined in section 403(c))

during any such quarter.

(3) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien who

is lawfully residing in any State and is—

(A) a veteran (as defined in section 101 of title 38,

United States Code) with a discharge characterized as an

honorable discharge and not on account of alienage,

(B) on active duty (other than active duty for training)

in the Armed Forces of the United States, or

(C) the spouse or unmarried dependent child of an

individual described in subparagraph (A) or (B).

(4) TRANSITION FOR THOSE CURRENTLY RECEIVING BENEFITS.—An alien who on the date of the enactment of this Act

is lawfully residing in any State and is receiving benefits on

the date of the enactment of this Act shall continue to be

eligible to receive such benefits until January 1, 1997.

(c) STATE PUBLIC BENEFITS DEFINED.—The term ‘‘State public

benefits’’ means any means-tested public benefit of a State or political subdivision of a State under which the State or political subdivision specifies the standards for eligibility, and does not include

any Federal public benefit.
H. R. 4—149

Subtitle C—Attribution of Income and

Affidavits of Support

SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR’S INCOME AND

RESOURCES TO ALIEN.

(a) IN GENERAL.—Notwithstanding any other provision of law, in determining the eligibility and the amount of benefits of an

alien for any Federal means-tested public benefits program (as

defined in section 403(c)), the income and resources of the alien

shall be deemed to include the following: (1) The income and resources of any person who executed an affidavit of support pursuant to section 213A of the Immigration and Nationality Act (as added by section 423) on behalf

of such alien.

(2) The income and resources of the spouse (if any) of the person.

(b) APPLICATION.—Subsection (a) shall apply with respect to an alien until such time as the alien—

(1) achieves United States citizenship through naturaliza- tion pursuant to chapter 2 of title III of the Immigration and

Nationality Act; or (2)(A) has worked 40 qualifying quarters of coverage as defined under title II of the Social Security Act or can be

credited with such qualifying quarters as provided under section

436, and (B) did not receive any Federal means-tested public

benefit (as defined in section 403(c)) during any such quarter.

(c) REVIEW OF INCOME AND RESOURCES OF ALIEN UPON

REAPPLICATION.—Whenever an alien is required to reapply for benefits under any Federal means-tested public benefits program, the

applicable agency shall review the income and resources attributed

to the alien under subsection (a).

(d) APPLICATION.—

(1) If on the date of the enactment of this Act, a Federal

means-tested public benefits program attributes a sponsor’s

income and resources to an alien in determining the alien’s

eligibility and the amount of benefits for an alien, this section

shall apply to any such determination beginning on the day

after the date of the enactment of this Act.

(2) If on the date of the enactment of this Act, a Federal

means-tested public benefits program does not attribute a sponsor’s income and resources to an alien in determining the

alien’s eligibility and the amount of benefits for an alien, this

section shall apply to any such determination beginning 180

days after the date of the enactment of this Act.

SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION

OF SPONSOR’S INCOME AND RESOURCES TO THE ALIEN

WITH RESPECT TO STATE PROGRAMS.

(a) OPTIONAL APPLICATION TO STATE PROGRAMS.—Except as

provided in subsection (b), in determining the eligibility and the

amount of benefits of an alien for any State public benefits (as

defined in section 412(c)), the State or political subdivision that

offers the benefits is authorized to provide that the income and

resources of the alien shall be deemed to include—

(1) the income and resources of any individual who executed

an affidavit of support pursuant to section 213A of the Immigra-
H. R. 4—150

tion and Nationality Act (as added by section 423) on behalf

of such alien, and

(2) the income and resources of the spouse (if any) of the individual.

(b) EXCEPTIONS.—Subsection (a) shall not apply with respect to the following State public benefits: (1) Emergency medical services.

(2) Short-term, non-cash, in-kind emergency disaster relief.

(3) Programs comparable to assistance or benefits under the National School Lunch Act.

(4) Programs comparable to assistance or benefits under the Child Nutrition Act of 1966.

(5)(A) Public health assistance for immunizations.

(B) Public health assistance for testing and treatment of a serious communicable disease if the appropriate chief State

health official determines that it is necessary to prevent the

spread of such disease. (6) Payments for foster care and adoption assistance.

(7) Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter)

specified by the Attorney General of a State, after consultation

with appropriate agencies and departments, which (A) deliver

in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the

cost of assistance provided on the individual recipient’s income

or resources; and (C) are necessary for the protection of life

or safety.

SEC. 423. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT.

(a) IN GENERAL.—Title II of the Immigration and Nationality

Act is amended by inserting after section 213 the following new

section:

‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit of support

may be accepted by the Attorney General or by any consular officer

to establish that an alien is not excludable as a public charge

under section 212(a)(4) unless such affidavit is executed as a

contract—

‘‘(A) which is legally enforceable against the sponsor by

the sponsored alien, the Federal Government, and by any State

(or any political subdivision of such State) which provides any

means-tested public benefits program, but not later than 10

years after the alien last receives any such benefit; ‘‘(B) in which the sponsor agrees to financially support

the alien, so that the alien will not become a public charge;

and

‘‘(C) in which the sponsor agrees to submit to the jurisdiction of any Federal or State court for the purpose of actions

brought under subsection (e)(2).

‘‘(2) A contract under paragraph (1) shall be enforceable with

respect to benefits provided to the alien until such time as the

alien achieves United States citizenship through naturalization

pursuant to chapter 2 of title III.

‘‘(b) FORMS.—Not later than 90 days after the date of enactment

of this section, the Attorney General, in consultation with the
H. R. 4—151

Secretary of State and the Secretary of Health and Human Services,

shall formulate an affidavit of support consistent with the provisions

of this section.

‘‘(c) REMEDIES.—Remedies available to enforce an affidavit of

support under this section include any or all of the remedies

described in section 3201, 3203, 3204, or 3205 of title 28, United

States Code, as well as an order for specific performance and

payment of legal fees and other costs of collection, and include

corresponding remedies available under State law. A Federal agency

may seek to collect amounts owed under this section in accordance

with the provisions of subchapter II of chapter 37 of title 31,

United States Code.

‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—

‘‘(1) IN GENERAL.—The sponsor shall notify the Attorney

General and the State in which the sponsored alien is currently

resident within 30 days of any change of address of the sponsor

during the period specified in subsection (a)(2).

‘‘(2) PENALTY.—Any person subject to the requirement of

paragraph (1) who fails to satisfy such requirement shall be

subject to a civil penalty of—

‘‘(A) not less than $250 or more than $2,000, or

‘‘(B) if such failure occurs with knowledge that the

alien has received any means-tested public benefit, not

less than $2,000 or more than $5,000.

‘‘(e) REIMBURSEMENT OF GOVERNMENT EXPENSES.—(1)(A) Upon

notification that a sponsored alien has received any benefit under

any means-tested public benefits program, the appropriate Federal,

State, or local official shall request reimbursement by the sponsor

in the amount of such assistance.

‘‘(B) The Attorney General, in consultation with the Secretary

of Health and Human Services, shall prescribe such regulations

as may be necessary to carry out subparagraph (A).

‘‘(2) If within 45 days after requesting reimbursement, the

appropriate Federal, State, or local agency has not received a

response from the sponsor indicating a willingness to commence

payments, an action may be brought against the sponsor pursuant

to the affidavit of support.

‘‘(3) If the sponsor fails to abide by the repayment terms established by such agency, the agency may, within 60 days of such

failure, bring an action against the sponsor pursuant to the affidavit

of support.

‘‘(4) No cause of action may be brought under this subsection

later than 10 years after the alien last received any benefit under

any means-tested public benefits program.

‘‘(5) If, pursuant to the terms of this subsection, a Federal,

State, or local agency requests reimbursement from the sponsor

in the amount of assistance provided, or brings an action against

the sponsor pursuant to the affidavit of support, the appropriate

agency may appoint or hire an individual or other person to act

on behalf of such agency acting under the authority of law for

purposes of collecting any moneys owed. Nothing in this subsection

shall preclude any appropriate Federal, State, or local agency from

directly requesting reimbursement from a sponsor for the amount

of assistance provided, or from bringing an action against a sponsor

pursuant to an affidavit of support.

‘‘(f) DEFINITIONS.—For the purposes of this section—
H. R. 4—152

‘‘(1) SPONSOR.—The term ‘sponsor’ means an individual

who—

‘‘(A) is a citizen or national of the United States or

an alien who is lawfully admitted to the United States

for permanent residence;

‘‘(B) is 18 years of age or over;

‘‘(C) is domiciled in any of the 50 States or the District

of Columbia; and

‘‘(D) is the person petitioning for the admission of

the alien under section 204.

‘‘(2) MEANS-TESTED PUBLIC BENEFITS PROGRAM.—The term

‘means-tested public benefits program’ means a program of

public benefits (including cash, medical, housing, and food

assistance and social services) of the Federal Government or

of a State or political subdivision of a State in which the

eligibility of an individual, household, or family eligibility unit

for benefits under the program, or the amount of such benefits,

or both are determined on the basis of income, resources, or

financial need of the individual, household, or unit.’’.

(b) CLERICAL AMENDMENT.—The table of contents of such Act

is amended by inserting after the item relating to section 213

the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

(c) EFFECTIVE DATE.—Subsection (a) of section 213A of the

Immigration and Nationality Act, as inserted by subsection (a)

of this section, shall apply to affidavits of support executed on

or after a date specified by the Attorney General, which date

shall be not earlier than 60 days (and not later than 90 days)

after the date the Attorney General formulates the form for such

affidavits under subsection (b) of such section.

(d) BENEFITS NOT SUBJECT TO REIMBURSEMENT.—Requirements

for reimbursement by a sponsor for benefits provided to a sponsored

alien pursuant to an affidavit of support under section 213A of

the Immigration and Nationality Act shall not apply with respect

to the following: (1) Emergency medical services under title XIX or XXI

of the Social Security Act. (2) Short-term, non-cash, in-kind emergency disaster relief.

(3) Assistance or benefits under the National School Lunch

Act.

(4) Assistance or benefits under the Child Nutrition Act

of 1966.

(5)(A) Public health assistance for immunizations.

(B) Public health assistance for testing and treatment of

a serious communicable disease if the Secretary of Health and

Human Services determines that it is necessary to prevent

the spread of such disease.

(6) Payments for foster care and adoption assistance under

part B of title IV of the Social Security Act for a child, but

only if the foster or adoptive parent or parents of such child

are not otherwise ineligible pursuant to section 403 of this

Act.

(7) Programs, services, or assistance (such as soup kitchens,

crisis counseling and intervention, and short-term shelter)

specified by the Attorney General, in the Attorney General’s

sole and unreviewable discretion after consultation with appro-
H. R. 4—153

priate Federal agencies and departments, which (A) deliver

in-kind services at the community level, including through public or private nonprofit agencies; (B) do not condition the provision of assistance, the amount of assistance provided, or the

cost of assistance provided on the individual recipient’s income

or resources; and (C) are necessary for the protection of life

or safety.

(8) Programs of student assistance under titles IV, V, IX,

and X of the Higher Education Act of 1965.

SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

Section 484(b) of the Higher Education Act of 1965 (20 U.S.C.

1091(b)) is amended by adding at the end the following new

paragraph:

‘‘(6) Notwithstanding sections 427(a)(2)(A), 428B(a),

428C(b)(4)(A), and 464(c)(1)(E), or any other provision of this

title, a student who is an alien lawfully admitted for permanent

residence under the Immigration and Nationality Act shall

not be eligible for a loan under this title unless the loan

is endorsed and cosigned by the alien’s sponsor under section

213A of the Immigration and Nationality Act or by another

creditworthy individual who is a United States citizen.’’.

Subtitle D—General Provisions

SEC. 431. DEFINITIONS.

(a) IN GENERAL.—Except as otherwise provided in this title,

the terms used in this title have the same meaning given such

terms in section 101(a) of the Immigration and Nationality Act.

(b) QUALIFIED ALIEN.—For purposes of this title, the term

‘‘qualified alien’’ means an alien who, at the time the alien applies

for, receives, or attempts to receive a Federal public benefit, is—

(1) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act,

(2) an alien who is granted asylum under section 208

of such Act,

(3) a refugee who is admitted to the United States under

section 207 of such Act,

(4) an alien who is paroled into the United States under

section 212(d)(5) of such Act for a period of at least 1 year,

(5) an alien whose deportation is being withheld under

section 243(h) of such Act, or

(6) an alien who is granted conditional entry pursuant

to section 203(a)(7) of such Act as in effect prior to April

1, 1980.

SEC. 432. REAPPLICATION FOR SSI BENEFITS.

(a) APPLICATION AND NOTICE.—Notwithstanding any other

provision of law, in the case of an individual who is receiving

supplemental security income benefits under title XVI of the Social

Security Act as of the date of the enactment of this Act and

whose eligibility for such benefits would terminate by reason of

the application of section 402(a)(D), the Commissioner of Social

Security shall so notify the individual not later than 90 days after

the date of the enactment of this Act.

(b) REAPPLICATION.—
H. R. 4—154

(1) IN GENERAL.—Not later than 120 days after the date

of the enactment of this Act, each individual notified pursuant

to subsection (a) who desires to reapply for benefits under

title XVI of the Social Security Act shall reapply to the Commissioner of Social Security.

(2) DETERMINATION OF ELIGIBILITY.—Not later than 1 year

after the date of the enactment of this Act, the Commissioner

of Social Security shall determine the eligibility of each individual who reapplies for benefits under paragraph (1) pursuant

to the procedures of such title XVI.

SEC. 433. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC BENEFITS.

(a) IN GENERAL.—Not later than 18 months after the date

of the enactment of this Act, the Attorney General of the United

States, after consultation with the Secretary of Health and Human

Services, shall promulgate regulations requiring verification that

a person applying for a Federal public benefit (as defined in section

401(c)), to which the limitation under section 401 applies, is a

qualified alien and is eligible to receive such benefit. Such regulations shall, to the extent feasible, require that information requested

and exchanged be similar in form and manner to information

requested and exchanged under section 1137 of the Social Security

Act.

(b) STATE COMPLIANCE.—Not later than 24 months after the

date the regulations described in subsection (a) are adopted, a

State that administers a program that provides a Federal public

benefit shall have in effect a verification system that complies

with the regulations.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to carry out

the purpose of this section.

SEC. 434. STATUTORY CONSTRUCTION.

(a) LIMITATION.—

(1) Nothing in this title may be construed as an entitlement

or a determination of an individual’s eligibility or fulfillment

of the requisite requirements for any Federal, State, or local

governmental program, assistance, or benefits. For purposes

of this title, eligibility relates only to the general issue of

eligibility or ineligibility on the basis of alienage.

(2) Nothing in this title may be construed as addressing

alien eligibility for a basic public education as determined by

the Supreme Court of the United States under Plyler v. Doe

(457 U.S. 202)(1982).

(b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—This title does

not apply to any Federal, State, or local governmental program,

assistance, or benefits provided to an alien under any program

of foreign assistance as determined by the Secretary of State in

consultation with the Attorney General.

(c) SEVERABILITY.—If any provision of this title or the application of such provision to any person or circumstance is held to

be unconstitutional, the remainder of this title and the application

of the provisions of such to any person or circumstance shall not

be affected thereby.
H. R. 4—155

SEC. 435. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT AGENCIES AND THE IMMIGRATION AND NATURALIZATION SERVICE.

Notwithstanding any other provision of Federal, State, or local

law, no State or local government entity may be prohibited, or

in any way restricted, from sending to or receiving from the

Immigration and Naturalization Service information regarding the

immigration status, lawful or unlawful, of an alien in the United

States.

SEC. 436. QUALIFYING QUARTERS.

For purposes of this title, in determining the number of qualifying quarters of coverage under title II of the Social Security Act

an alien shall be credited with—

(1) all of the qualifying quarters of coverage as defined

under title II of the Social Security Act worked by a parent

of such alien while the alien was under age 18 if the parent

did not receive any Federal means-tested public benefit (as

defined in section 403(c)) during any such quarter, and

(2) all of the qualifying quarters worked by a spouse of

such alien during their marriage if the spouse did not receive

any Federal means-tested public benefit (as defined in section

403(c)) during any such quarter and the alien remains married

to such spouse or such spouse is deceased.

Subtitle E—Conforming Amendments

SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

(a) LIMITATIONS ON ASSISTANCE.—Section 214 of the Housing and Community Development Act of 1980 (42 U.S.C. 1436a) is

amended—

(1) by striking ‘‘Secretary of Housing and Urban Development’’ each place it appears and inserting ‘‘applicable Secretary’’; (2) in subsection (b), by inserting after ‘‘National Housing

Act,’’ the following: ‘‘the direct loan program under section

502 of the Housing Act of 1949 or section 502(c)(5)(D), 504,

521(a)(2)(A), or 542 of such Act, subtitle A of title III of the

Cranston-Gonzalez National Affordable Housing Act,’’; (3) in paragraphs (2) through (6) of subsection (d), by

striking ‘‘Secretary’’ each place it appears and inserting

‘‘applicable Secretary’’;

(4) in subsection (d), in the matter following paragraph

(6), by striking ‘‘the term ‘Secretary’ ’’ and inserting ‘‘the term

‘applicable Secretary’ ’’; and

(5) by adding at the end the following new subsection:

‘‘(h) For purposes of this section, the term ‘applicable Secretary’

means—

‘‘(1) the Secretary of Housing and Urban Development,

with respect to financial assistance administered by such Secretary and financial assistance under subtitle A of title III

of the Cranston-Gonzalez National Affordable Housing Act; and

‘‘(2) the Secretary of Agriculture, with respect to financial

assistance administered by such Secretary.’’.
H. R. 4—156

(b) CONFORMING AMENDMENTS.—Section 501(h) of the Housing Act of 1949 (42 U.S.C. 1471(h)) is amended—

(1) by striking ‘‘(1)’’;

(2) by striking ‘‘by the Secretary of Housing and Urban Development’’; and (3) by striking paragraph (2).

TITLE V—REDUCTIONS IN FEDERAL

GOVERNMENT POSITIONS

SEC. 501. REDUCTIONS.

(a) DEFINITIONS.—As used in this section:

(1) APPROPRIATE EFFECTIVE DATE.—The term ‘‘appropriate

effective date’’, used with respect to a Department referred

to in this section, means the date on which all provisions

of this Act (other than title II) that the Department is required

to carry out, and amendments and repeals made by such Act

to provisions of Federal law that the Department is required

to carry out, are effective. (2) COVERED ACTIVITY.—The term ‘‘covered activity’’, used with respect to a Department referred to in this section, means

an activity that the Department is required to carry out under— (A) a provision of this Act (other than title II); or

(B) a provision of Federal law that is amended or repealed by this Act (other than title II). (b) REPORTS.— (1) CONTENTS.—Not later than December 31, 1995, each

Secretary referred to in paragraph (2) shall prepare and submit

to the relevant committees described in paragraph (3) a report

containing—(A) the determinations described in subsection (c);

(B) appropriate documentation in support of such determinations; and

(C) a description of the methodology used in making such determinations.

(2) SECRETARY.—The Secretaries referred to in this paragraph are—(A) the Secretary of Agriculture;

(B) the Secretary of Education;

(C) the Secretary of Labor;

(D) the Secretary of Housing and Urban Development; and

(E) the Secretary of Health and Human Services. (3) RELEVANT COMMITTEES.—The relevant Committees

described in this paragraph are the following: (A) With respect to each Secretary described in para- graph (2), the Committee on Government Reform and Oversight of the House of Representatives and the Committee

on Governmental Affairs of the Senate.

(B) With respect to the Secretary of Agriculture, the

Committee on Agriculture and the Committee on Economic

and Educational Opportunities of the House of Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate.

(C) With respect to the Secretary of Education, the

Committee on Economic and Educational Opportunities of
H. R. 4—157

the House of Representatives and the Committee on Labor

and Human Resources of the Senate.

(D) With respect to the Secretary of Labor, the Committee on Economic and Educational Opportunities of the

House of Representatives and the Committee on Labor

and Human Resources of the Senate.

(E) With respect to the Secretary of Housing and Urban

Development, the Committee on Banking and Financial

Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(F) With respect to the Secretary of Health and Human

Services, the Committee on Economic and Educational

Opportunities of the House of Representatives, the Committee on Labor and Human Resources of the Senate, the

Committee on Ways and Means of the House of Representatives, and the Committee on Finance of the Senate.

(4) REPORT ON CHANGES.—Not later than December 31,

1996, and each December 31 thereafter, each Secretary referred

to in paragraph (2) shall prepare and submit to the relevant

Committees described in paragraph (3), a report concerning

any changes with respect to the determinations made under

subsection (c) for the year in which the report is being

submitted.

(c) DETERMINATIONS.—Not later than December 31, 1995, each

Secretary referred to in subsection (b)(2) shall determine—

(1) the number of full-time equivalent positions required

by the Department headed by such Secretary to carry out

the covered activities of the Department, as of the day before

the date of enactment of this Act;

(2) the number of such positions required by the Department to carry out the activities, as of the appropriate effective

date for the Department; and

(3) the difference obtained by subtracting the number referred to in paragraph (2) from the number referred to in

paragraph (1).

(d) ACTIONS.—Each Secretary referred to in subsection (b)(2)

shall take such actions as may be necessary, including reduction

in force actions, consistent with sections 3502 and 3595 of title

5, United States Code, to reduce the number of positions of personnel of the Department—

(1) not later than 30 days after the appropriate effective

date for the Department involved, by at least 50 percent of

the difference referred to in subsection (c)(3); and

(2) not later than 13 months after such appropriate effective

date, by at least the remainder of such difference (after the

application of paragraph (1)).

(e) CONSISTENCY.—

(1) EDUCATION.—The Secretary of Education shall carry

out this section in a manner that enables the Secretary to

meet the requirements of this section.

(2) LABOR.—The Secretary of Labor shall carry out this

section in a manner that enables the Secretary to meet the

requirements of this section.

(3) HEALTH AND HUMAN SERVICES.—The Secretary of Health

and Human Services shall carry out this section in a manner

that enables the Secretary to meet the requirements of this

section and sections 502 and 503.
H. R. 4—158

(f) CALCULATION.—In determining, under subsection (c), the

number of full-time equivalent positions required by a Department

to carry out a covered activity, a Secretary referred to in subsection

(b)(2) shall include the number of such positions occupied by personnel carrying out program functions or other functions (including

budgetary, legislative, administrative, planning, evaluation, and

legal functions) related to the activity.

(g) GENERAL ACCOUNTING OFFICE REPORT.—Not later than July

1, 1996, the Comptroller General of the United States shall prepare

and submit to the committees described in subsection (b)(3), a

report concerning the determinations made by each Secretary under

subsection (c). Such report shall contain an analysis of the determinations made by each Secretary under subsection (c) and a determination as to whether further reductions in full-time equivalent

positions are appropriate.

SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

(a) IN GENERAL.—The Secretary of Health and Human Services

shall reduce the Federal workforce within the Department of Health

and Human Services by an amount equal to the sum of—

(1) 75 percent of the full-time equivalent positions at such

Department that relate to any direct spending program, or

any program funded through discretionary spending, that has

been converted into a block grant program under this Act

and the amendments made by this Act; and

(2) an amount equal to 75 percent of that portion of the

total full-time equivalent departmental management positions

at such Department that bears the same relationship to the

amount appropriated for the programs referred to in paragraph

(1) as such amount relates to the total amount appropriated

for use by such Department.

(b) REDUCTIONS IN THE DEPARTMENT OF HEALTH AND HUMAN

SERVICES.—Notwithstanding any other provision of this Act, the

Secretary of Health and Human Services shall take such actions

as may be necessary, including reductions in force actions, consistent with sections 3502 and 3595 of title 5, United States Code,

to reduce the full-time equivalent positions within the Department

of Health and Human Services—

(1) by 245 full-time equivalent positions related to the

program converted into a block grant under the amendment

made by section 103; and

(2) by 60 full-time equivalent managerial positions in the

Department.

SEC. 503. REDUCING PERSONNEL IN WASHINGTON, D.C. AREA.

In making reductions in full-time equivalent positions, the Secretary of Health and Human Services is encouraged to reduce

personnel in the Washington, D.C., area office (agency headquarters) before reducing field personnel.
H. R. 4—159

TITLE VI—REFORM OF PUBLIC

HOUSING

SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC

ASSISTANCE PROGRAMS.

Title I of the United States Housing Act of 1937 (42 U.S.C.

1437 et seq.) is amended by adding at the end the following new

section:

‘‘SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC

ASSISTANCE PROGRAMS.

‘‘(a) IN GENERAL.—If the benefits of a family are reduced under

a Federal, State, or local law relating to welfare or a public assistance program for the failure of any member of the family to perform

an action required under the law or program, the family may

not, for the duration of the reduction, receive any increased assistance under this Act as the result of a decrease in the income

of the family to the extent that the decrease in income is the

result of the benefits reduction.

‘‘(b) EXCEPTION.—Subsection (a) shall not apply in any case

in which the benefits of a family are reduced because the welfare

or public assistance program to which the Federal, State, or local

law relates limits the period during which benefits may be provided

under the program.’’.

SEC. 602. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC

ASSISTANCE PROGRAMS.

(a) IN GENERAL.—If an individual’s benefits under a Federal,

State, or local law relating to a means-tested welfare or a public

assistance program are reduced because of an act of fraud by

the individual under the law or program, the individual may not,

for the duration of the reduction, receive an increased benefit under

any other means-tested welfare or public assistance program for

which Federal funds are appropriated as a result of a decrease

in the income of the individual (determined under the applicable

program) attributable to such reduction.

(b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR WHICH

FEDERAL FUNDS ARE APPROPRIATED.—For purposes of subsection

(a), the term ‘‘means-tested welfare or public assistance program

for which Federal funds are appropriated’’ includes the food stamp

program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et

seq.), any program of public or assisted housing under title I of

the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.),

and State programs funded under part A of title IV of the Social

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

SEC. 603. EFFECTIVE DATE.

This title and the amendment made by this title shall become

effective on the date of enactment of this Act.
H. R. 4—160

TITLE VII—CHILD PROTECTION BLOCK

GRANT PROGRAM AND FOSTER CARE

AND ADOPTION ASSISTANCE

Subtitle A—Block Grants to States for the

Protection of Children and Matching

Payments for Foster Care and Adoption

Assistance

SEC. 701. ESTABLISHMENT OF PROGRAM.

Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended by striking part B and inserting the following:

‘‘PART B—BLOCK GRANTS TO STATES FOR THE

PROTECTION OF CHILDREN AND MATCHING

PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE

‘‘SEC. 421. PURPOSE.

‘‘The purpose of this part is to enable eligible States to carry out a child protection program to— ‘‘(1) identify and assist families at risk of abusing or neglecting their children; ‘‘(2) operate a system for receiving reports of abuse or neglect of children; ‘‘(3) improve the intake, assessment, screening, and inves- tigation of reports of abuse and neglect; ‘‘(4) enhance the general child protective system by improv- ing risk and safety assessment tools and protocols;

‘‘(5) improve legal preparation and representation, including procedures for appealing and responding to appeals of

substantiated reports of abuse and neglect;

‘‘(6) provide support, treatment, and family preservation

services to families which are, or are at risk of, abusing or

neglecting their children;

‘‘(7) support children who must be removed from or who

cannot live with their families;

‘‘(8) make timely decisions about permanent living arrangements for children who must be removed from or who cannot

live with their families;

‘‘(9) provide for continuing evaluation and improvement

of child protection laws, regulations, and services; ‘‘(10) develop and facilitate training protocols for individuals mandated to report child abuse or neglect; and ‘‘(11) develop and enhance the capacity of community-based

programs to integrate shared leadership strategies between

parents and professionals to prevent and treat child abuse

and neglect at the neighborhood level.

‘‘SEC. 422. ELIGIBLE STATES.

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

means a State that has submitted to the Secretary, not later than
H. R. 4—161

October 1, 1996, and every 3 years thereafter, a plan which has

been signed by the chief executive officer of the State and that

includes the following:

‘‘(1) OUTLINE OF CHILD PROTECTION PROGRAM.—A written

document that outlines the activities the State intends to conduct to achieve the purpose of this part, including the procedures to be used for—

‘‘(A) receiving and assessing reports of child abuse

or neglect;

‘‘(B) investigating such reports;

‘‘(C) with respect to families in which abuse or neglect

has been confirmed, providing services or referral for services for families and children where the State makes a

determination that the child may safely remain with the

family;

‘‘(D) protecting children by removing them from dangerous settings and ensuring their placement in a safe

environment;

‘‘(E) providing training for individuals mandated to

report suspected cases of child abuse or neglect;

‘‘(F) protecting children in foster care;

‘‘(G) promoting timely adoptions;

‘‘(H) protecting the rights of families, using adult relatives as the preferred placement for children separated

from their parents where such relatives meet the relevant

State child protection standards;

‘‘(I) providing services to individuals, families, or

communities, either directly or through referral, that are

aimed at preventing the occurrence of child abuse and

neglect; and ‘‘(J) establishing and responding to citizen review panels under section 426.

‘‘(2) CERTIFICATION OF STATE LAW REQUIRING THE REPORT- ING OF CHILD ABUSE AND NEGLECT.—A certification that the

State has in effect laws that require public officials and other

professionals to report, in good faith, actual or suspected

instances of child abuse or neglect. ‘‘(3) CERTIFICATION OF PROCEDURES FOR SCREENING, SAFETY

ASSESSMENT, AND PROMPT INVESTIGATION.—A certification that

the State has in effect procedures for receiving and responding

to reports of child abuse or neglect, including the reports

described in paragraph (2), and for the immediate screening,

safety assessment, and prompt investigation of such reports. ‘‘(4) CERTIFICATION OF STATE PROCEDURES FOR REMOVAL

AND PLACEMENT OF ABUSED OR NEGLECTED CHILDREN.—A certification that the State has in effect procedures for the removal

from families and placement of abused or neglected children

and of any other child in the same household who may also

be in danger of abuse or neglect.

‘‘(5) CERTIFICATION OF PROVISIONS FOR IMMUNITY FROM

PROSECUTION.—A certification that the State has in effect laws

requiring immunity from prosecution under State and local

laws and regulations for individuals making good faith reports

of suspected or known instances of child abuse or neglect.

‘‘(6) CERTIFICATION OF PROVISIONS AND PROCEDURES FOR

EXPUNGEMENT OF CERTAIN RECORDS.—A certification that the

State has in effect laws and procedures requiring the facilita-
H. R. 4—162

tion of the prompt expungement of any records that are accessible to the general public or are used for purposes of employment or other background checks in cases determined to be

unsubstantiated or false.

‘‘(7) CERTIFICATION OF PROVISIONS AND PROCEDURES RELATING TO APPEALS.—A certification that not later then 2 years

after the date of the enactment of this part, the State shall

have laws and procedures in effect affording individuals an

opportunity to appeal an official finding of abuse or neglect.

‘‘(8) CERTIFICATION OF STATE PROCEDURES FOR DEVELOPING

AND REVIEWING WRITTEN PLANS FOR PERMANENT PLACEMENT

OF REMOVED CHILDREN.—A certification that the State has in

effect procedures for ensuring that a written plan is prepared

for children who have been removed from their families. Such

plan shall specify the goals for achieving a permanent placement for the child in a timely fashion, for ensuring that the

written plan is reviewed every 6 months (until such placement

is achieved), and for ensuring that information about such

children is collected regularly and recorded in case records,

and include a description of such procedures.

‘‘(9) CERTIFICATION OF STATE PROGRAM TO PROVIDE

INDEPENDENT LIVING SERVICES.—A certification that the State

has in effect a program to provide independent living services,

for assistance in making the transition to self-sufficient adulthood, to individuals in the child protection program of the

State who are 16, but who are not 20 (or, at the option of

the State, 22), years of age, and who do not have a family

to which to be returned.

‘‘(10) CERTIFICATION OF STATE PROCEDURES TO RESPOND

TO REPORTING OF MEDICAL NEGLECT OF DISABLED INFANTS.— ‘‘(A) IN GENERAL.—A certification that the State has

in place for the purpose of responding to the reporting

of medical neglect of infants (including instances of

withholding of medically indicated treatment from disabled

infants with life-threatening conditions), procedures or programs, or both (within the State child protective services

system), to provide for— ‘‘(i) coordination and consultation with individuals

designated by and within appropriate health-care

facilities;

‘‘(ii) prompt notification by individuals designated

by and within appropriate health-care facilities of cases

of suspected medical neglect (including instances of

withholding of medically indicated treatment from disabled infants with life-threatening conditions); and

‘‘(iii) authority, under State law, for the State child

protective service to pursue any legal remedies, including the authority to initiate legal proceedings in a

court of competent jurisdiction, as may be necessary

to prevent the withholding of medically indicated treatment from disabled infants with life-threatening conditions.

‘‘(B) WITHHOLDING OF MEDICALLY INDICATED TREATMENT.—As used in subparagraph (A), the term ‘withholding

of medically indicated treatment’ means the failure to

respond to the infant’s life-threatening conditions by

providing treatment (including appropriate nutrition,
H. R. 4—163

hydration, and medication) which, in the treating physician’s or physicians’ reasonable medical judgment, will be

most likely to be effective in ameliorating or correcting

all such conditions, except that such term does not include

the failure to provide treatment (other than appropriate

nutrition, hydration, or medication) to an infant when,

in the treating physician’s or physicians’ reasonable medical judgment—

‘‘(i) the infant is chronically and irreversibly comatose;

‘‘(ii) the provision of such treatment would—

‘‘(I) merely prolong dying;

‘‘(II) not be effective in ameliorating or correcting all of the infant’s life-threatening conditions;

or

‘‘(III) otherwise be futile in terms of the survival of the infant; or

‘‘(iii) the provision of such treatment would be

virtually futile in terms of the survival of the infant

and the treatment itself under such circumstances

would be inhumane.

‘‘(11) IDENTIFICATION OF CHILD PROTECTION GOALS.—The

quantitative goals of the State child protection program.

‘‘(12) CERTIFICATION OF CHILD PROTECTION STANDARDS.—

With respect to fiscal years beginning on or after April 1,

1996, a certification that the State—

‘‘(A) has completed an inventory of all children who,

before the inventory, had been in foster care under the

responsibility of the State for 6 months or more, which

determined—

‘‘(i) the appropriateness of, and necessity for, the

foster care placement;

‘‘(ii) whether the child could or should be returned

to the parents of the child or should be freed for

adoption or other permanent placement; and

‘‘(iii) the services necessary to facilitate the return

of the child or the placement of the child for adoption

or legal guardianship;

‘‘(B) is operating, to the satisfaction of the Secretary—

‘‘(i) a statewide information system from which

can be readily determined the status, demographic

characteristics, location, and goals for the placement

of every child who is (or, within the immediately

preceding 12 months, has been) in foster care;

‘‘(ii) a case review system for each child receiving

foster care under the supervision of the State;

‘‘(iii) a service program designed to help children—

‘‘(I) where appropriate, return to families from

which they have been removed; or

‘‘(II) be placed for adoption, with a legal guardian, or if adoption or legal guardianship is determined not to be appropriate for a child, in some

other planned, permanent living arrangement; and

‘‘(iv) a preplacement preventive services program

designed to help children at risk for foster care placement remain with their families; and
H. R. 4—164

‘‘(C)(i) has reviewed (or not later than October 1, 1997,

will review) State policies and administrative and judicial

procedures in effect for children abandoned at or shortly

after birth (including policies and procedures providing for

legal representation of such children); and

‘‘(ii) is implementing (or not later than October 1, 1997,

will implement) such policies and procedures as the State

determines, on the basis of the review described in clause

(i), to be necessary to enable permanent decisions to be

made expeditiously with respect to the placement of such

children.

‘‘(13) CERTIFICATION OF REASONABLE EFFORTS BEFORE

PLACEMENT OF CHILDREN IN FOSTER CARE.—A certification that

the State in each case will—

‘‘(A) make reasonable efforts prior to the placement

of a child in foster care, to prevent or eliminate the need

for removal of the child from the child’s home, and to

make it possible for the child to return home; and

‘‘(B) with respect to families in which abuse or neglect

has been confirmed, provide services or referral for services

for families and children where the State makes a determination that the child may safely remain with the family.

‘‘(14) CERTIFICATION OF COOPERATIVE EFFORTS.—A certification by the State, where appropriate, that all steps will

be taken, including cooperative efforts with the State agencies

administering the plans approved under parts A and D, to

secure an assignment to the State of any rights to support

on behalf of each child receiving foster care maintenance payments under this part.

‘‘(15) CERTIFICATION OF CONFIDENTIALITY AND REQUIREMENTS FOR INFORMATION DISCLOSURE.—

‘‘(A) IN GENERAL.—A certification that the State has

in effect and operational—

‘‘(i) requirements ensuring that reports and records

made and maintained pursuant to the purposes of

this part shall only be made available to—

‘‘(I) individuals who are the subject of the

report;

‘‘(II) Federal, State, or local government entities having a need for such information in order

to carry out their responsibilities under law to

protect children from abuse and neglect;

‘‘(III) child abuse citizen review panels;

‘‘(IV) child fatality review panels;

‘‘(V) a grand jury or court, upon a finding

that information in the record is necessary for

the determination of an issue before the court or

grand jury; and

‘‘(VI) other entities or classes of individuals

statutorily authorized by the State to receive such

information pursuant to a legitimate State purpose; and

‘‘(ii) provisions that allow for public disclosure of

the findings or information about cases of child abuse

or neglect that have resulted in a child fatality or

near fatality.
H. R. 4—165

‘‘(B) LIMITATION.—Disclosures made pursuant to clause

(i) or (ii) shall not include the identifying information

concerning the individual initiating a report or complaint

alleging suspected instances of child abuse or neglect.

‘‘(C) DEFINITION.—For purposes of this paragraph, the

term ‘near fatality’ means an act that, as certified by a

physician, places the child in serious or critical condition.

‘‘(b) DETERMINATIONS.—The Secretary shall determine whether

a plan submitted pursuant to subsection (a) contains the material

required by subsection (a), other than the material described in

paragraph (10) of such subsection. The Secretary may not require

a State to include in such a plan any material not described in

subsection (a).

‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION AND PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE.

‘‘(a) FUNDING OF BLOCK GRANTS.—

‘‘(1) ENTITLEMENT COMPONENT.—Each eligible State shall

be entitled to receive from the Secretary for each fiscal year

specified in subsection (c)(1) a grant in an amount equal to

the State share of the child protection amount for the fiscal

year.

‘‘(2) AUTHORIZATION COMPONENT.—

‘‘(A) IN GENERAL.—For each eligible State for each fiscal

year specified in subsection (c)(1), the Secretary shall

supplement the grant under paragraph (1) of this subsection by an amount equal to the State share of the

amount (if any) appropriated pursuant to subparagraph

(B) of this paragraph for the fiscal year. ‘‘(B) LIMITATION ON AUTHORIZATION OF APPROPRIA- TIONS.—For grants under subparagraph (A), there are

authorized to be appropriated to the Secretary an amount

not to exceed $325,000,000 for each fiscal year specified

in subsection (c)(1).

‘‘(b) MAINTENANCE PAYMENTS.— ‘‘(1) IN GENERAL.—In addition to the grants described in subsection (a), each eligible State shall be entitled to receive

from the Secretary for each quarter of each fiscal year specified

in subsection (c)(1) an amount equal to the sum of—

‘‘(A) an amount equal to the Federal medical assistance

percentage (as defined in section 1905(b) of this Act as

in effect on the day before the date of enactment of this

part) of the total amount expended during such quarter

as foster care maintenance payments under the child

protection program under this part for children in foster

family homes or child-care institutions; plus

‘‘(B) an amount equal to the Federal medical assistance

percentage (as defined in section 1905(b) of this Act (as

so in effect)) of the total amount expended during such

quarter as adoption assistance payments under the child

protection program under this part pursuant to adoption

assistance agreements.

‘‘(2) ESTIMATES BY THE SECRETARY.—

‘‘(A) IN GENERAL.—The Secretary shall, prior to the

beginning of each quarter, estimate the amount to which

a State will be entitled to receive under paragraph (1)

for such quarter, such estimates to be based on—
H. R. 4—166

‘‘(i) a report filed by the State containing its estimate of the total sum to be expended in such quarter

in accordance with paragraph (1), and stating the

amount appropriated or made available by the State

and its political subdivisions for such expenditures in

such quarter, and if such amount is less than the

State’s proportionate share of the total sum of such

estimated expenditures, the source or sources from

which the difference is expected to be derived;

‘‘(ii) records showing the number of children in

the State receiving assistance under this part; and

‘‘(iii) such other information as the Secretary may

find necessary.

‘‘(B) PAYMENTS.—The Secretary shall pay to the States

the amounts so estimated under subparagraph (A), reduced

or increased to the extent of any overpayment or

underpayment which the Secretary determines was made

under this subsection to such State for any prior quarter

and with respect to which adjustment has not already

been made under this paragraph.

‘‘(C) PRO RATA SHARE.— The pro rata share to which

the United States is equitably entitled, as determined by

the Secretary, of the net amount recovered during any

quarter by the State or any political subdivision thereof

with respect to foster care and adoption assistance furnished under this part shall be considered an overpayment

to be adjusted under this paragraph.

‘‘(3) ALLOWANCE OR DISALLOWANCE OF CLAIM.— ‘‘(A) IN GENERAL.—Within 60 days after receipt of a State claim for expenditures pursuant to paragraph (2)(A),

the Secretary shall allow, disallow, or defer such claim. ‘‘(B) NOTICE.—Within 15 days after a decision to defer

a State claim, the Secretary shall notify the State of the

reasons for the deferral and of the additional information

necessary to determine the allowability of the claim. ‘‘(C) DECISION.—Within 90 days after receiving such necessary information (in readily reviewable form), the Secretary shall— ‘‘(i) disallow the claim, if able to complete the

review and determine that the claim is not allowable;

or

‘‘(ii) in any other case, allow the claim, subject to disallowance (as necessary)— ‘‘(I) upon completion of the review, if it is

determined that the claim is not allowable; or

‘‘(II) on the basis of findings of an audit or

financial management review.

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

‘‘(1) CHILD PROTECTION AMOUNT.—The term ‘child protection amount’ means—

‘‘(A) $2,047,000,000 for fiscal year 1997;

‘‘(B) $2,200,000,000 for fiscal year 1998;

‘‘(C) $2,342,000,000 for fiscal year 1999;

‘‘(D) $2,487,000,000 for fiscal year 2000;

‘‘(E) $2,592,000,000 for fiscal year 2001; and

‘‘(F) $2,766,000,000 for fiscal year 2002;

‘‘(2) STATE SHARE.—
H. R. 4—167

‘‘(A) IN GENERAL.—The term ‘State share’ means the

qualified child protection expenses of the State divided

by the sum of the qualified child protection expenses of

all of the States.

‘‘(B) QUALIFIED CHILD PROTECTION EXPENSES.—The

term ‘qualified child protection expenses’ means, with

respect to a State the greater of—

‘‘(i) the total amount of—

‘‘(I) one-third of the Federal grant amounts

to the State under the provisions of law specified

in clauses (i), (ii), and (iii) of subparagraph (C)

for fiscal years 1992, 1993, and 1994; and

‘‘(II) one-third of the Federal share of expenditures (without regard to disputed expenditures)

with respect to administration, training, and statewide mechanized data collection and information

systems under the provision of law specified in

subparagraph (C)(iv) as reported by the State on

ACF Form IV-E-12 for fiscal years 1992, 1993,

and 1994; or

‘‘(ii) the total amount of—

‘‘(I) the Federal grant amounts to the State

under the provisions of law specified in clauses

(i), (ii), and (iii) of subparagraph (C) for fiscal

year 1994; and

‘‘(II) the Federal share of expenditures (without regard to disputed expenditures) with respect

to administration, training, and statewide mechanized data collection and information systems

under the provision of law specified in subparagraph (C)(iv) as reported by the State on ACF

Form IV-E-12 for fiscal year 1994. ‘‘(C) PROVISIONS OF LAW.—The provisions of law specified in this subparagraph are the following (as in effect

with respect to each of the fiscal years referred to in

subparagraph (B)): ‘‘(i) Section 423 of this Act.

‘‘(ii) Section 434 of this Act.

‘‘(iii) Section 474(a)(4) of this Act.

‘‘(iv) Section 474(a)(3) of this Act.

‘‘(D) DETERMINATION OF INFORMATION.—In determining

amounts for fiscal years 1992, 1993, and 1994 under

subclause (I) of clauses (i) and (ii) of subparagraph (B),

the Secretary shall use information listed as actual

amounts in the Justification for Estimates for Appropriation Committees of the Administration for Children and

Families for fiscal years 1994, 1995, and 1996, respectively.

In determining amounts for fiscal years 1992, 1993, and

1994 under subclause (II) of clauses (i) and (ii) of subparagraph (B), the Secretary shall use information available

as of February 22, 1995.

‘‘(d) USE OF GRANT.—

‘‘(1) IN GENERAL.—A State to which a grant is made under

this section may use the grant in any manner that the State

deems appropriate to accomplish the purpose of this part.

‘‘(2) TIMING OF EXPENDITURES.—A State to which a grant

is made under this section for a fiscal year shall expend the
H. R. 4—168

total amount of the grant not later than the end of the immediately succeeding fiscal year.

‘‘(3) RULE OF INTERPRETATION.—This part shall not be interpreted to prohibit short- and long-term foster care facilities

operated for profit from receiving funds provided under this

part.

‘‘(e) TIMING OF PAYMENTS.—The Secretary shall pay each

eligible State the amount of the grant payable to the State under

this section in quarterly installments.

‘‘(f) PENALTIES.—

‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS PART.—If

an audit conducted pursuant to chapter 75 of title 31, United

States Code, finds that an amount paid to a State under this

section for a fiscal year has been used in violation of this

part, then the Secretary shall reduce the amount of the grant

that would (in the absence of this paragraph) be payable to

the State under this section for the immediately succeeding

fiscal year by the amount so used, plus 5 percent of the grant

paid under this section to the State for such fiscal year.

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

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

chapter 75 of title 31, United States Code, finds that the

amount expended by a State (other than from amounts

provided by the Federal Government) during the fiscal

years specified in subparagraph (B), to carry out the State

program funded under this part is less than the applicable

percentage specified in such subparagraph of the total

amount expended by the State (other than from amounts

provided by the Federal Government) during fiscal year

1994 under parts B and E of this title (as in effect on

the day before the date of the enactment of this part),

then the Secretary shall reduce the amount of the grant

that would (in the absence of this paragraph) be payable

to the State under this section for the immediately succeeding fiscal year by the amount of the difference, plus 5

percent of the grant paid under this section to the State

for such fiscal year. ‘‘(B) SPECIFICATION OF FISCAL YEARS AND APPLICABLE

PERCENTAGES.—The fiscal years and applicable percentages

specified in this subparagraph are as follows: ‘‘(i) For fiscal years 1997 and 1998, 100 percent.

‘‘(ii) For fiscal years 1999 through 2002, 75 percent. ‘‘(3) FOR FAILURE TO SUBMIT REQUIRED REPORT.— ‘‘(A) IN GENERAL.—The Secretary shall reduce by 3 percent the amount of the grant that would (in the absence

of this paragraph) be payable to a State under this section

for a fiscal year if the Secretary determines that the State

has not submitted the report required by section 427(b)

for the immediately preceding fiscal year, within 6 months

after the end of the immediately preceding fiscal year.

‘‘(B) RESCISSION OF PENALTY.—The Secretary shall

rescind a penalty imposed on a State under subparagraph

(A) with respect to a report for a fiscal year if the State

submits the report before the end of the immediately

succeeding fiscal year.

‘‘(4) FOR FAILURE TO COMPLY WITH SAMPLING METHODS

REQUIREMENTS.—The Secretary may reduce by not more than
H. R. 4—169

1 percent the amount of the grant that would (in the absence

of this paragraph) be payable to a State under this section

for a succeeding fiscal year if the Secretary determines that

the State has not complied with the Secretary’s sampling methods requirements under section 427(c)(2) during the prior fiscal

year.

‘‘(5) STATE FUNDS TO REPLACE REDUCTIONS IN GRANT.—

A State which has a penalty imposed against it under this

subsection for a fiscal year shall expend additional State funds

in an amount equal to the amount of the penalty for the

purpose of carrying out the State program under this part

during the immediately succeeding fiscal year.

‘‘(6) REASONABLE CAUSE EXCEPTION.—Except in the case

of the penalty described in paragraph (2), the Secretary may

not impose a penalty on a State under this subsection with

respect to a requirement if the Secretary determines that the

State has reasonable cause for failing to comply with the

requirement.

‘‘(7) CORRECTIVE COMPLIANCE PLAN.—

‘‘(A) IN GENERAL.—

‘‘(i) NOTIFICATION OF VIOLATION.—Before imposing

a penalty against a State under this subsection with

respect to a violation of this part, the Secretary shall

notify the State of the violation and allow the State

the opportunity to enter into a corrective compliance

plan in accordance with this paragraph which outlines

how the State will correct the violation and how the

State will insure continuing compliance with this part. ‘‘(ii) 60-DAY PERIOD TO PROPOSE A CORRECTIVE

COMPLIANCE PLAN.—During the 60-day period that

begins on the date the State receives a notice provided

under clause (i) with respect to a violation, the State

may submit to the Federal Government a corrective

compliance plan to correct the violation.

‘‘(iii) CONSULTATION ABOUT MODIFICATIONS.—During the 60-day period that begins with the date the

Secretary receives a corrective compliance plan submitted by a State in accordance with clause (ii), the Secretary may consult with the State on modifications

to the plan.

‘‘(iv) ACCEPTANCE OF PLAN.— A corrective compliance plan submitted by a State in accordance with

clause (ii) is deemed to be accepted by the Secretary

if the Secretary does not accept or reject the plan

during the 60-day period that begins on the date the

plan is submitted.

‘‘(B) EFFECT OF CORRECTING VIOLATION.—The Secretary

may not impose any penalty under this subsection with

respect to any violation covered by a State corrective

compliance plan accepted by the Secretary if the State

corrects the violation pursuant to the plan.

‘‘(C) EFFECT OF FAILING TO CORRECT VIOLATION.—The

Secretary shall assess some or all of a penalty imposed

on a State under this subsection with respect to a violation

if the State does not, in a timely manner, correct the

violation pursuant to a State corrective compliance plan

accepted by the Secretary.
H. R. 4—170

‘‘(8) LIMITATION ON AMOUNT OF PENALTY.—

‘‘(A) IN GENERAL.—In imposing the penalties described

in this subsection, the Secretary shall not reduce any quarterly payment to a State by more than 25 percent.

‘‘(B) CARRYFORWARD OF UNRECOVERED PENALTIES.—To

the extent that subparagraph (A) prevents the Secretary

from recovering during a fiscal year the full amount of

all penalties imposed on a State under this subsection

for a prior fiscal year, the Secretary shall apply any remaining amount of such penalties to the grant payable to the

State under section 423(a) for the immediately succeeding

fiscal year.

‘‘(g) TREATMENT OF TERRITORIES.—

‘‘(1) IN GENERAL.—A territory, as defined in section

1108(b)(1), shall carry out a child protection program in accordance with the provisions of this part.

‘‘(2) PAYMENTS.—Subject to the mandatory ceiling amounts

specified in section 1108, each territory, as so defined, shall

be entitled to receive from the Secretary for any fiscal year

an amount equal to the total obligations to the territory under

section 434 (as in effect on the day before the date of the

enactment of this part) for fiscal year 1995.

‘‘(h) LIMITATION ON FEDERAL AUTHORITY.—Except as expressly

provided in this Act, the Secretary may not regulate the conduct

of States under this part or enforce any provision of this part.

‘‘SEC. 424. REQUIREMENTS FOR FOSTER CARE MAINTENANCE PAYMENTS.

‘‘(a) IN GENERAL.—Each State operating a program under this

part shall make foster care maintenance payments under section

423(b) with respect to a child who would meet the requirements

of section 406(a) or of section 407 (as in effect on the day before

the date of the enactment of this part) but for the removal of

the child from the home of a relative (specified in section 406(a)(as

so in effect)), if—

‘‘(1) the removal from the home occurred pursuant to a

voluntary placement agreement entered into by the child’s parent or legal guardian, or was the result of a judicial determination to the effect that continuation therein would be contrary

to the welfare of such child and that reasonable efforts of

the type described in section 422(a)(13) have been made; ‘‘(2) such child’s placement and care are the responsibility

of—

‘‘(A) the State; or

‘‘(B) any other public agency with whom the State

has made an agreement for the administration of the State

program under this part which is still in effect;

‘‘(3) such child has been placed in a foster family home

or child-care institution as a result of the voluntary placement

agreement or judicial determination referred to in paragraph

(1); and

‘‘(4) such child—

‘‘(A) would have been eligible to receive aid under

the eligibility standards under the State plan approved

under section 402 (as in effect on the day before the date

of the enactment of this part and adjusted for inflation,

in accordance with regulations issued by the Secretary)
H. R. 4—171

in or for the month in which such agreement was entered

into or court proceedings leading to the removal of such

child from the home were initiated; or

‘‘(B) would have received such aid in or for such month

if application had been made therefore, or the child had

been living with a relative specified in section 406(a) (as

so in effect) within 6 months prior to the month in which

such agreement was entered into or such proceedings were

initiated, and would have received such aid in or for such

month if in such month such child had been living with

such a relative and application therefore had been made.

‘‘(b) LIMITATION ON FOSTER CARE PAYMENTS.—Foster care

maintenance payments may be made under this part only on behalf

of a child described in subsection (a) of this section who is—

‘‘(1) in the foster family home of an individual, whether

the payments therefore are made to such individual or to a

public or private child-placement or child-care agency; or

‘‘(2) in a child-care institution, whether the payments therefore are made to such institution or to a public or private

child-placement or child-care agency, which payments shall

be limited so as to include in such payments only those items

which are included in the term ‘foster care maintenance payments’ (as defined in section 429(6)).

‘‘(c) VOLUNTARY PLACEMENTS.—

‘‘(1) SATISFACTION OF CHILD PROTECTION STANDARDS.—Notwithstanding any other provision of this section, Federal payments may be made under this part with respect to amounts

expended by any State as foster care maintenance payments

under this part, in the case of children removed from their

homes pursuant to voluntary placement agreements as

described in subsection (a), only if (at the time such amounts

were expended) the State has fulfilled all of the requirements

of section 422(a)(12).

‘‘(2) REMOVAL IN EXCESS OF 180 DAYS.—No Federal payment

may be made under this part with respect to amounts expended

by any State as foster care maintenance payments, in the

case of any child who was removed from such child’s home

pursuant to a voluntary placement agreement as described

in subsection (a) and has remained in voluntary placement

for a period in excess of 180 days, unless there has been

a judicial determination by a court of competent jurisdiction

(within the first 180 days of such placement) to the effect

that such placement is in the best interests of the child.

‘‘(3) DEEMED REVOCATION OF AGREEMENTS.—In any case

where—

‘‘(A) the placement of a minor child in foster care

occurred pursuant to a voluntary placement agreement

entered into by the parents or guardians of such child

as provided in subsection (a); and

‘‘(B) such parents or guardians request (in such manner

and form as the Secretary may prescribe) that the child

be returned to their home or to the home of a relative,

the voluntary placement agreement shall be deemed to be

revoked unless the State opposes such request and obtains

a judicial determination, by a court of competent jurisdiction,

that the return of the child to such home would be contrary

to the child’s best interests.
H. R. 4—172

‘‘SEC. 425. REQUIREMENTS FOR ADOPTION ASSISTANCE PAYMENTS.

‘‘(a) IN GENERAL.—A State operating a program under this part shall enter into adoption assistance agreements with the adoptive parents of children with special needs. ‘‘(b) PAYMENTS UNDER AGREEMENTS.—Under any adoption assistance agreement entered into by a State with parents who

adopt a child with special needs who meets the requirements of

subsection (c), the State may make adoption assistance payments

to such parents or through another public or nonprofit private

agency, in amounts determined under subsection (d). ‘‘(c) CHILDREN WITH SPECIAL NEEDS.—For purposes of sub- section (b), a child meets the requirements of this subsection if

such child—

‘‘(1)(A) at the time adoption proceedings were initiated, met the requirements of section 406(a) or section 407 (as in

effect on the day before the date of the enactment of this

part) or would have met such requirements except for such

child’s removal from the home of a relative (specified in section

406(a) (as so in effect)), either pursuant to a voluntary placement agreement with respect to which Federal payments are

provided under section 423(b) (or 403 (as so in effect)) or as

a result of a judicial determination to the effect that continuation therein would be contrary to the welfare of such child;

‘‘(B) meets all of the requirements of title XVI with respect

to eligibility for supplemental security income benefits; or

‘‘(C) is a child whose costs in a foster family home or

child-care institution are covered by the foster care maintenance

payments being made with respect to his or her minor parent;

‘‘(2)(A) would have received aid under the eligibility standards under the State plan approved under section 402 (as

in effect on the day before the date of the enactment of this

part, adjusted for inflation, in accordance with regulations

issued by the Secretary) in or for the month in which such

agreement was entered into or court proceedings leading to

the removal of such child from the home were initiated;

‘‘(B) would have received such aid in or for such month

if application had been made therefor, or had been living with

a relative specified in section 406(a) (as so in effect) within

6 months prior to the month in which such agreement was

entered into or such proceedings were initiated, and would

have received such aid in or for such month if in such month

such child had been living with such a relative and application

therefor had been made; or

‘‘(C) is a child described in subparagraph (A) or (B); and

‘‘(3) has been determined by the State, pursuant to sub- section (g) of this section, to be a child with special needs.

‘‘(d) DETERMINATION OF PAYMENTS.—The amount of the payments to be made in any case under subsection (b) shall be determined through agreement between the adoptive parents and the

State or a public or nonprofit private agency administering the

program under this part, which shall take into consideration the

circumstances of the adopting parents and the needs of the child

being adopted, and may be readjusted periodically, with the concurrence of the adopting parents (which may be specified in the adoption assistance agreement), depending upon changes in such

circumstances. However, in no case may the amount of the adoption

assistance payment exceed the foster care maintenance payment
H. R. 4—173

which would have been paid during the period if the child with

respect to whom the adoption assistance payment is made had

been in a foster family home.

‘‘(e) PAYMENT EXCEPTION.—Notwithstanding subsection (d), no

payment may be made to parents with respect to any child who

has attained the age of 18 (or, where the State determines that

the child has a mental or physical disability which warrants the

continuation of assistance, the age of 21), and no payment may

be made to parents with respect to any child if the State determines

that the parents are no longer legally responsible for the support

of the child or if the State determines that the child is no longer

receiving any support from such parents. Parents who have been

receiving adoption assistance payments under this part shall keep

the State or public or nonprofit private agency administering the

program under this part informed of circumstances which would,

pursuant to this section, make them ineligible for such assistance

payments, or eligible for assistance payments in a different amount.

‘‘(f) PRE-ADOPTION PAYMENTS.—For purposes of this part,

individuals with whom a child who has been determined by the

State, pursuant to subsection (g), to be a child with special needs

is placed for adoption in accordance with applicable State and

local law shall be eligible for adoption assistance payments during

the period of the placement, on the same terms and subject to

the same conditions as if such individuals had adopted such child.

‘‘(g) DETERMINATION OF CHILD WITH SPECIAL NEEDS.—For purposes of this section, a child shall not be considered a child with

special needs unless—

‘‘(1) the State has determined that the child cannot or

should not be returned to the home of the child’s parents;

and

‘‘(2) the State had first determined—

‘‘(A) that there exists with respect to the child a specific

factor or condition such as the child’s ethnic background,

age, or membership in a minority or sibling group, or

the presence of factors such as medical conditions or physical, mental, or emotional handicaps because of which it

is reasonable to conclude that such child cannot be placed

with adoptive parents without providing adoption assistance under this part or medical assistance under title

XIX or XXI; and

‘‘(B) that, except where it would be against the best

interests of the child because of such factors as the existence of significant emotional ties with prospective adoptive

parents while in the care of such parents as a foster child,

a reasonable, but unsuccessful, effort has been made to

place the child with appropriate adoptive parents without

providing adoption assistance under this section or medical

assistance under title XIX or XXI.

‘‘SEC. 426. CITIZEN REVIEW PANELS.

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

under section 423 shall establish at least 3 citizen review panels.

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

(a) shall be broadly representative of the community from which

drawn.

‘‘(c) FREQUENCY OF MEETINGS.—Each panel established under

subsection (a) shall meet not less frequently than quarterly.
H. R. 4—174

‘‘(d) DUTIES.—

‘‘(1) IN GENERAL.—Each panel established under subsection

(a) shall, by examining specific cases, determine the extent

to which the State and local agencies responsible for carrying

out activities under this part are doing so in accordance with

the State plan, with the child protection standards set forth

in section 422(a)(12), and with any other criteria that the

panel considers important to ensure the protection of children.

‘‘(2) CONFIDENTIALITY.—The members and staff of any

panel established under subsection (a) shall not disclose to

any person or government any information about any specific

child protection case with respect to which the panel is provided

information.

‘‘(e) STATE ASSISTANCE.—Each State that establishes a panel

under subsection (a) shall afford the panel access to any information

on any case that the panel desires to review, and shall provide

the panel with staff assistance in performing its duties.

‘‘(f) REPORTS.—Each panel established under subsection (a)

shall make a public report of its activities after each meeting.

‘‘SEC. 427. DATA COLLECTION AND REPORTING.

‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE GOALS.—On

the date that is 3 years after the effective date of this part and

annually thereafter, each State to which a grant is made under

section 423 shall submit to the Secretary a report that contains

quantitative information on the extent to which the State is making

progress toward achieving the goals of the State child protection

program. ‘‘(b) STATE DATA REPORTS.— ‘‘(1) BIANNUAL REPORTS.—Each State to which a grant is

made under section 423 shall biannually submit to the Secretary a report that includes the following disaggregated case

record information with respect to each child within the State

receiving publicly-supported child welfare services under the

State program funded under this part: ‘‘(A) Whether the child received services under the

program funded under this part. ‘‘(B) The age, race, gender, and family income of the

parents and child.

‘‘(C) The county of residence of the child.

‘‘(D) Whether the child was removed from the family.

‘‘(E) Whether the child entered foster care under the

responsibility of the State. ‘‘(F) The type of out-of-home care in which the child was placed (including institutional care, group home care,

family foster care, or relative placement).

‘‘(G) The child’s permanency planning goal, such as

family reunification, kinship care, adoption, or independent

living.

‘‘(H) Whether the child was released for adoption.

‘‘(I) Whether the child exited from foster care, and,

if so, the reason for the exit, such as return to family,

placement with relatives, adoption, independent living, or

death.

‘‘(J) Other information as required by the Secretary

and agreed to by a majority of the States, including

information necessary to ensure that there is a smooth
H. R. 4—175

transition of data from the Adoption and Foster Care

Analysis and Reporting Systems and the National Center

on Abuse and Neglect Data System to the data reporting

system required under this section.

‘‘(2) ANNUAL REPORTS.—Each State to which a grant is

made under section 423 shall annually submit to the Secretary

a report that includes the following information:

‘‘(A) The number of children reported to the State

during the year as alleged victims of abuse or neglect.

‘‘(B) The number of children for whom an investigation

of alleged maltreatment resulted in a determination of

substantiated abuse or neglect, the number for whom a

report of maltreatment was unsubstantiated, and the number for whom a report of maltreatment was determined

to be false.

‘‘(C) The number of families that received preventive

services.

‘‘(D) The number of infants abandoned during the year,

the number of such infants who were adopted, and the

length of time between abandonment and adoption.

‘‘(E) The number of deaths of children resulting from

child abuse or neglect.

‘‘(F) The number of deaths occurring while children

were in the custody of the State.

‘‘(G) The number of children served by the State

independent living program.

‘‘(H) Quantitative measurements demonstrating

whether the State is making progress toward the child

protection goals identified by the State. ‘‘(I) The types of maltreatment suffered by victims

of child abuse and neglect. ‘‘(J) The number of abused and neglected children

receiving services. ‘‘(K) The average length of stay of children in outof-home care.

‘‘(L) The response of the State to the findings and

recommendations of the citizen review panels established

under section 426.

‘‘(M) Other information as required by the Secretary

and agreed to by a majority of the States, including

information necessary to ensure that there is a smooth

transition of data from the Adoption and Foster Care

Analysis and Reporting Systems and the National Center

on Abuse and Neglect Data System to the data reporting

system required under this section.

‘‘(3) REGULATORY AUTHORITY.—The Secretary shall define

by regulation the information required to be included in the

reports submitted under paragraphs (1) and (2).

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

‘‘(1) IN GENERAL.—A State may comply with a requirement

to provide precise numerical information described in subsection

(b) by submitting an estimate which is obtained through the

use of scientifically acceptable sampling methods.

‘‘(2) SECRETARIAL REVIEW OF SAMPLING METHODS.—The Secretary shall periodically review the sampling methods used

by a State to comply with a requirement to provide information

described in subsection (b). The Secretary may require a State
H. R. 4—176

to revise the sampling methods so used if such methods do

not meet scientific standards and shall impose the penalty

described in section 423(f)(4) upon a State if a State has not

complied with such requirements.

‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within 6 months

after the end of each fiscal year, the Secretary shall prepare a

report based on information provided by the States for the fiscal

year pursuant to subsection (b), and shall make the report and

such information available to the Congress and the public.

‘‘(e) SCOPE OF STATE PROGRAM FUNDED UNDER THIS PART.—

As used in subsection (b), the term ‘State program funded under

this part’ includes any equivalent State program.

‘‘SEC. 428. FUNDING FOR STUDIES OF CHILD WELFARE.

‘‘(a) NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.—

There are authorized to be appropriated and there are appropriated

to the Secretary for each of fiscal years 1996 through 2002—

‘‘(1) $6,000,000 to conduct a national study based on random samples of children who are at risk of child abuse or

neglect, or are determined by States to have been abused or

neglected under section 208 of the Child and Family Services

Block Grant Act of 1995; and

‘‘(2) $10,000,000 for such other research as may be necessary under such section.

‘‘(b) STATE COURTS ASSESSMENT AND IMPROVEMENT OF HANDLING OF PROCEEDINGS RELATING TO FOSTER CARE AND ADOPTION.—There are authorized to be appropriated and there are

appropriated to the Secretary for each of fiscal years 1996 through

1998 $10,000,000 for the purpose of carrying out section 13712

of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 670

note). All funds appropriated under this subsection shall be

expended not later than September 30, 1999.

‘‘SEC. 429. DEFINITIONS.

‘‘For purposes of this part, the following definitions shall apply: ‘‘(1) ADMINISTRATIVE REVIEW.—The term ‘administrative

review’ means a review open to the participation of the parents

of the child, conducted by a panel of appropriate persons at

least one of whom is not responsible for the case management

of, or the delivery of services to, either the child or the parents

who are the subject of the review. ‘‘(2) ADOPTION ASSISTANCE AGREEMENT.—The term ‘adoption assistance agreement’ means a written agreement, binding

on the parties to the agreement, between the State, other

relevant agencies, and the prospective adoptive parents of a

minor child which at a minimum—

‘‘(A) specifies the nature and amount of any payments,

services, and assistance to be provided under such agreement; and

‘‘(B) stipulates that the agreement shall remain in

effect regardless of the State of which the adoptive parents

are residents at any given time.

The agreement shall contain provisions for the protection

(under an interstate compact approved by the Secretary or

otherwise) of the interests of the child in cases where the

adoptive parents and child move to another State while the

agreement is effective.
H. R. 4—177

‘‘(3) CASE PLAN.—The term ‘case plan’ means a written

document which includes at least the following:

‘‘(A) A description of the type of home or institution

in which a child is to be placed, including a discussion

of the appropriateness of the placement and how the agency

which is responsible for the child plans to carry out the

voluntary placement agreement entered into or judicial

determination made with respect to the child in accordance

with section 424(a)(1).

‘‘(B) A plan for assuring that the child receives proper

care and that services are provided to the parents, child,

and foster parents in order to improve the conditions in

the parents’ home, facilitate return of the child to his

or her own home or the permanent placement of the child,

and address the needs of the child while in foster care,

including a discussion of the appropriateness of the services

that have been provided to the child under the plan.

‘‘(C) To the extent available and accessible, the health

and education records of the child, including—

‘‘(i) the names and addresses of the child’s health

and educational providers;

‘‘(ii) the child’s grade level performance;

‘‘(iii) the child’s school record;

‘‘(iv) assurances that the child’s placement in foster

care takes into account proximity to the school in which

the child is enrolled at the time of placement;

‘‘(v) a record of the child’s immunizations;

‘‘(vi) the child’s known medical problems;

‘‘(vii) the child’s medications; and

‘‘(viii) any other relevant health and education

information concerning the child determined to be

appropriate by the State.

Where appropriate, for a child age 16 or over, the case

plan must also include a written description of the programs and services which will help such child prepare

for the transition from foster care to independent living.

‘‘(4) CASE REVIEW SYSTEM.—The term ‘case review system’

means a procedure for assuring that— ‘‘(A) each child has a case plan designed to achieve placement in the least restrictive (most family like) and

most appropriate setting available and in close proximity

to the parents’ home, consistent with the best interest

and special needs of the child, which—

‘‘(i) if the child has been placed in a foster family

home or child-care institution a substantial distance

from the home of the parents of the child, or in a

State different from the State in which such home

is located, sets forth the reasons why such placement

is in the best interests of the child; and

‘‘(ii) if the child has been placed in foster care

outside the State in which the home of the parents

of the child is located, requires that, periodically, but

not less frequently than every 12 months, a caseworker

on the staff of the State in which the home of the

parents of the child is located, or of the State in which

the child has been placed, visit such child in such

home or institution and submit a report on such visit
H. R. 4—178

to the State in which the home of the parents of

the child is located;

‘‘(B) the status of each child is reviewed periodically

but no less frequently than once every six months by either

a court or by administrative review (as defined in paragraph (1)) in order to determine the continuing necessity

for and appropriateness of the placement, the extent of

compliance with the case plan, and the extent of progress

which has been made toward alleviating or mitigating the

causes necessitating placement in foster care, and to project

a likely date by which the child may be returned to the

home or placed for adoption or legal guardianship;

‘‘(C) with respect to each such child, procedural safeguards will be applied, among other things, to assure each

child in foster care under the supervision of the State

of a dispositional hearing to be held, in a family or juvenile

court or another court (including a tribal court) of competent jurisdiction, or by an administrative body appointed

or approved by the court, no later than 18 months after

the original placement (and not less frequently than every

12 months thereafter during the continuation of foster

care), which hearing shall determine the future status of

the child (including whether the child should be returned

to the parent, should be continued in foster care for a

specified period, should be placed for adoption, or should

(because of the child’s special needs or circumstances) be

continued in foster care on a permanent or long-term basis)

and, in the case of a child described in subparagraph (A)(ii),

whether the out-of-State placement continues to be appropriate and in the best interests of the child, and, in the

case of a child who has attained age 16, the services needed

to assist the child to make the transition from foster care

to independent living; and procedural safeguards shall also

be applied with respect to parental rights pertaining to

the removal of the child from the home of his parents,

to a change in the child’s placement, and to any determination affecting visitation privileges of parents; and ‘‘(D) a child’s health and education record (as described

in paragraph (3)(C)) is reviewed and updated, and supplied

to the foster parent or foster care provider with whom

the child is placed, at the time of each placement of the

child in foster care.

‘‘(5) CHILD-CARE INSTITUTION.—The term ‘child-care institution’ means a private child-care institution, or a public childcare institution which accommodates no more than 25 children,

which is licensed by the State in which it is situated or has

been approved, by the agency of such State responsible for

licensing or approval of institutions of this type, as meeting

the standards established for such licensing, but the term shall

not include detention facilities, forestry camps, training schools,

or any other facility operated primarily for the detention of

children who are determined to be delinquent.

‘‘(6) FOSTER CARE MAINTENANCE PAYMENTS.—

‘‘(A) IN GENERAL.—The term ‘foster care maintenance

payments’ means payments to cover the cost of (and the

cost of providing) food, clothing, shelter, daily supervision,

school supplies, a child’s personal incidentals, liability
H. R. 4—179

insurance with respect to a child, and reasonable travel

to the child’s home for visitation. In the case of institutional

care, such term shall include the reasonable costs of

administration and operation of such institution as are

necessarily required to provide the items described in the

preceding sentence.

‘‘(B) SPECIAL RULE.—In cases where—

‘‘(i) a child placed in a foster family home or childcare institution is the parent of a son or daughter

who is in the same home or institution; and

‘‘(ii) payments described in subparagraph (A) are

being made under this part with respect to such child,

the foster care maintenance payments made with respect

to such child as otherwise determined under subparagraph

(A) shall also include such amounts as may be necessary

to cover the cost of the items described in that subparagraph with respect to such son or daughter.

‘‘(7) FOSTER FAMILY HOME.—The term ‘foster family home’

means a foster family home for children which is licensed

by the State in which it is situated or has been approved,

by the agency of such State having responsibility for licensing

homes of this type, as meeting the standards established for

such licensing.

‘‘(8) STATE.—The term ‘State’ means the 50 States and

the District of Columbia.

‘‘(9) VOLUNTARY PLACEMENT.—The term ‘voluntary placement’ means an out-of-home placement of a minor, by or with

participation of the State, after the parents or guardians of

the minor have requested the assistance of the State and signed

a voluntary placement agreement.

‘‘(10) VOLUNTARY PLACEMENT AGREEMENT.—The term ‘voluntary placement agreement’ means a written agreement, binding on the parties to the agreement, between the State, any

other agency acting on its behalf, and the parents or guardians

of a minor child which specifies, at a minimum, the legal

status of the child and the rights and obligations of the parents

or guardians, the child, and the agency while the child is

in placement.’’.

SEC. 702. CONFORMING AMENDMENTS.

(a) SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR

TECHNICAL AND CONFORMING AMENDMENTS.—Not later than 90

days after the date of the enactment of this subtitle, the Secretary

of Health and Human Services, in consultation, as appropriate,

with the heads of other Federal agencies, shall submit to the

appropriate committees of Congress a legislative proposal providing

for such technical and conforming amendments in the law as are

required by the provisions of this subtitle.

(b) AMENDMENTS TO PART D OF TITLE IV OF THE SOCIAL SECURITY ACT.—

(1) Section 452(a)(10)(C) of the Social Security Act (42

U.S.C. 652(a)(10)(C)), as amended by section 108(b)(2) of this

Act, is amended—

(A) by striking ‘‘under part E’’ and inserting ‘‘under

section 423(b)(1)(A)’’; and

(B) by striking ‘‘or under section 471(a)(17)’’.
H. R. 4—180

(2) Section 452(g)(2)(A) of such Act (42 U.S.C. 652(g)(2)(A)),

as amended by paragraphs (6) and (7) of section 108(b), is

amended—

(A) by inserting ‘‘or benefits or services were being

provided under the State child protection program funded

under part B’’ after ‘‘part A’’ each place it appears; and

(B) in the matter following subparagraph (B), by striking ‘‘agency administering the plan under part E’’ and

inserting ‘‘under the child protection program funded under

part B’’.

(3) Section 466(a)(3)(B) of such Act (42 U.S.C. 666(a)(3)(B)),

as amended by section 108(b)(14), is amended by striking ‘‘or

471(a)(17)’’.

(c) AMENDMENT TO TITLE XVI OF THE SOCIAL SECURITY ACT

AS IN EFFECT WITH RESPECT TO THE STATES.—Section 1611(c)(5)(B)

of such Act (42 U.S.C. 1382(c)(5)(B)) is amended to read as follows:

‘‘(B) section 423(b)(1)(A) of this Act (relating to foster care maintenance payments),’’.

(d) REPEAL OF PART E OF TITLE IV OF THE SOCIAL SECURITY

ACT.—Part E of title IV of the Social Security Act (42 U.S.C.

671–679) is hereby repealed.

(e) AMENDMENT TO SECTION 9442 OF THE OMNIBUS BUDGET

RECONCILIATION ACT OF 1986.—Section 9442(4) of the Omnibus

Budget Reconciliation Act of 1986 (42 U.S.C. 679a(4)) is amended

by inserting ‘‘(as in effect before October 1, 1995)’’ after ‘‘Act’’.

(f) REDESIGNATION AND AMENDMENTS OF SECTION 1123.—

(1) REDESIGNATION.—The Social Security Act is amended

by redesignating section 1123, the second place it appears (42

U.S.C. 1320a–1a), as section 1123A.

(2) AMENDMENTS.—Section 1123A of such Act, as so

redesignated, is amended—

(A) in subsection (a)—

(i) by striking ‘‘The Secretary’’ and inserting ‘‘Notwithstanding section 423(h), the Secretary’’;

(ii) in the matter preceding paragraph (1), and

in paragraph (1), by striking ‘‘parts B and E’’ and

inserting ‘‘part B’’; and

(iii) in paragraph (2), by inserting ‘‘under this section’’ after ‘‘promulgated’’;

(B) in subsection (b)—

(i) in paragraph (3), by striking ‘‘matching’’; and

(ii) in paragraph (4)(C), by striking ‘‘matching’’;

and

(C) in subsection (c)(1)(B), by striking ‘‘matching’’.

SEC. 703. EFFECTIVE DATE; TRANSITION RULES.

(a) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), this

subtitle and the amendments made by this subtitle shall take

effect on October 1, 1996.

(2) EXCEPTION.—Section 428 of part B of title IV of the

Social Security Act, as added by section 701, and section 702(a)

shall take effect on the date of the enactment of this subtitle.

(3) TEMPORARY REDESIGNATION OF SECTION 428.—During

the period beginning on the date of the enactment of this

subtitle and ending on October 1, 1996, section 428 of part
H. R. 4—181

B of title IV of the Social Security Act, as added by section

701, shall be redesignated as section 428A.

(b) TRANSITION RULES.—

(1) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments

made by this subtitle shall not apply with respect to—

(A) powers, duties, functions, rights, claims, penalties,

or obligations applicable to aid, assistance, or services provided before the effective date of this subtitle under the

provisions amended; and

(B) administrative actions and proceedings commenced

before such date, or authorized before such date to be

commenced, under such provisions.

(2) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMINATED OR SUBSTANTIALLY MODIFIED BY THIS SUBTITLE.—In

closing out accounts, Federal and State officials may use scientifically acceptable statistical sampling techniques. Claims

made under programs which are repealed or substantially

amended in this subtitle and which involve State expenditures

in cases where assistance or services were provided during

a prior fiscal year, shall be treated as expenditures during

fiscal year 1995 for purposes of reimbursement even if payment

was made by a State on or after October 1, 1995. States

shall complete the filing of all claims no later than September

30, 1997. Federal department heads shall—

(A) use the single audit procedure to review and resolve

any claims in connection with the close out of programs;

and

(B) reimburse States for any payments made for assistance or services provided during a prior fiscal year from

funds for fiscal year 1995, rather than the funds authorized

by this subtitle.

SEC. 704. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION

OF CHILDREN.

It is the sense of the Congress that— (1) too many children who wish to be adopted are spending

inordinate amounts of time in foster care;

(2) there is an urgent need for States to increase the

number of waiting children being adopted in a timely and

lawful manner;

(3) studies have shown that States spend an excess of

$15,000 each year on each special needs child in foster care,

and would save significant amounts of money if they offered

incentives to families to adopt special needs children;

(4) States should allocate sufficient funds under this title

for adoption assistance and medical assistance to encourage

more families to adopt children who otherwise would languish

in the foster care system for a period that many experts consider

detrimental to their development;

(5) States should offer incentives for families that adopt

special needs children to make adoption more affordable for

middle-class families;

(6) when it is necessary for a State to remove a child

from the home of the child’s biological parents, the State should

strive—

(A) to provide the child with a single foster care placement and a single coordinated case team; and
H. R. 4—182

(B) to conclude an adoption of the child, when adoption

is the goal of the child and the State, within one year

of the child’s placement in foster care; and

(7) States should participate in local, regional, or national

programs to enable maximum visibility of waiting children

to potential parents. Such programs should include a nationwide, interactive computer network to disseminate information

on children eligible for adoption to help match them with families around the country.

Subtitle B—Child and Family Services

Block Grant

SEC. 751. CHILD AND FAMILY SERVICES BLOCK GRANT.

The Child Abuse Prevention and Treatment Act (42 U.S.C.

5101 et seq.) is amended to read as follows:

‘‘SECTION. 1. SHORT TITLE.

‘‘This Act may be cited as the ‘Child and Family Services

Block Grant Act of 1995’.

‘‘SEC. 2. FINDINGS.

‘‘The Congress finds the following:

‘‘(1) Each year, close to 1,000,000 American children are

victims of abuse and neglect.

‘‘(2) Many of these children and their families fail to receive

adequate protection or treatment.

‘‘(3) The problem of child abuse and neglect requires a

comprehensive approach that—

‘‘(A) integrates the work of social service, legal, health,

mental health, education, and substance abuse agencies

and organizations; ‘‘(B) strengthens coordination among all levels of

government, and with private agencies, civic, religious, and

professional organizations, and individual volunteers; ‘‘(C) emphasizes the need for abuse and neglect prevention, assessment, investigation, and treatment at the

neighborhood level; ‘‘(D) ensures properly trained and support staff with

specialized knowledge, to carry out their child protection

duties; and

‘‘(E) is sensitive to ethnic and cultural diversity. ‘‘(4) The child protection system should be comprehensive,

child-centered, family-focused, and community-based, should

incorporate all appropriate measures to prevent the occurrence

or recurrence of child abuse and neglect, and should promote

physical and psychological recovery and social re-integration

in an environment that fosters the health, safety, self-respect,

and dignity of the child.

‘‘(5) The Federal government should provide leadership

and assist communities in their child and family protection

efforts by—

‘‘(A) generating and sharing knowledge relevant to

child and family protection, including the development of

models for service delivery;
H. R. 4—183

‘‘(B) strengthening the capacity of States to assist

communities;

‘‘(C) helping communities to carry out their child and

family protection plans by promoting the competence of

professional, paraprofessional, and volunteer resources; and

‘‘(D) providing leadership to end the abuse and neglect

of the nation’s children and youth.

‘‘SEC. 3. PURPOSES.

‘‘The purposes of this Act are the following:

‘‘(1) To assist each State in improving the child protective

service systems of such State by—

‘‘(A) improving risk and safety assessment tools and

protocols;

‘‘(B) developing, strengthening, and facilitating training

opportunities for individuals who are mandated to report

child abuse or neglect or otherwise overseeing, investigating, prosecuting, or providing services to children and families who are at risk of abusing or neglecting their children;

and

‘‘(C) developing, implementing, or operating information, education, training, or other programs designed to

assist and provide services for families of disabled infants

with life-threatening conditions.

‘‘(2) To support State efforts to develop, operate, expand

and enhance a network of community-based, preventionfocused, family resource and support programs that are culturally competent and that coordinate resources among existing

education, vocational rehabilitation, disability, respite, health,

mental health, job readiness, self-sufficiency, child and family

development, community action, Head Start, child care, child

abuse and neglect prevention, juvenile justice, domestic violence

prevention and intervention, housing, and other human service

organizations within the State.

‘‘(3) To facilitate the elimination of barriers to adoption

and to provide permanent and loving home environments for

children who would benefit from adoption, particularly children

with special needs, including disabled infants with life-threatening conditions, by—

‘‘(A) promoting model adoption legislation and procedures in the States and territories of the United States

in order to eliminate jurisdictional and legal obstacles to

adoption;

‘‘(B) providing a mechanism for the Department of

Health and Human Services to—

‘‘(i) promote quality standards for adoption services, pre-placement, post-placement, and post-legal

adoption counseling, and standards to protect the

rights of children in need of adoption;

‘‘(ii) maintain a national adoption information

exchange system to bring together children who would

benefit from adoption and qualified prospective adoptive parents who are seeking such children, and conduct national recruitment efforts in order to reach

prospective parents for children awaiting adoption; and
H. R. 4—184

‘‘(iii) demonstrate expeditious ways to free children

for adoption for whom it has been determined that

adoption is the appropriate plan; and

‘‘(C) facilitating the identification and recruitment of

foster and adoptive families that can meet children’s needs.

‘‘(4) To respond to the needs of children, in particular

those who are drug exposed or inflicted with Acquired Immune

Deficiency Syndrome (AIDS), by supporting activities aimed

at preventing the abandonment of children, providing support

to children and their families, and facilitating the recruitment

and training of health and social service personnel.

‘‘(5) To carry out any other activities as the Secretary

determines are consistent with this Act.

‘‘SEC. 4. DEFINITIONS.

‘‘As used in this Act:

‘‘(1) CHILD.—The term ‘child’ means a person who has

not attained the lesser of—

‘‘(A) the age of 18; or

‘‘(B) except in the case of sexual abuse, the age specified

by the child protection law of the State in which the child

resides;

‘‘(2) CHILD ABUSE AND NEGLECT.—The term ‘child abuse

and neglect’ means, at a minimum, any recent act or failure

to act on the part of a parent or caretaker, which results

in death, serious physical or emotional harm, sexual abuse

or exploitation, or an act or failure to act which presents

an imminent risk of serious harm.

‘‘(3) FAMILY RESOURCE AND SUPPORT PROGRAMS.—The term

‘family resource and support program’ means a communitybased, prevention-focused entity that—

‘‘(A) provides, through direct service, the core services

required under this Act, including—

‘‘(i) parent education, support and leadership services, together with services characterized by relationships between parents and professionals that are based

on equality and respect, and designed to assist parents

in acquiring parenting skills, learning about child

development, and responding appropriately to the

behavior of their children;

‘‘(ii) services to facilitate the ability of parents

to serve as resources to one another (such as through

mutual support and parent self-help groups);

‘‘(iii) early developmental screening of children to

assess any needs of children, and to identify types

of support that may be provided;

‘‘(iv) outreach services provided through voluntary

home visits and other methods to assist parents in

becoming aware of and able to participate in family

resources and support program activities;

‘‘(v) community and social services to assist families in obtaining community resources; and

‘‘(vi) follow-up services;

‘‘(B) provides, or arranges for the provision of, other

core services through contracts or agreements with other

local agencies; and
H. R. 4—185

‘‘(C) provides access to optional services, directly or

by contract, purchase of service, or interagency agreement,

including—

‘‘(i) child care, early childhood development and

early intervention services;

‘‘(ii) self-sufficiency and life management skills

training;

‘‘(iii) education services, such as scholastic tutoring, literacy training, and General Educational Degree

services;

‘‘(iv) job readiness skills;

‘‘(v) child abuse and neglect prevention activities;

‘‘(vi) services that families with children with

disabilities or special needs may require;

‘‘(vii) community and social service referral;

‘‘(viii) peer counseling;

‘‘(ix) referral for substance abuse counseling and

treatment; and

‘‘(x) help line services.

‘‘(4) INDIAN TRIBE AND TRIBAL ORGANIZATION.—The terms

‘Indian tribe’ and ‘tribal organization’ shall have the same

meanings given such terms in subsections (e) and (l), respectively, of section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e) and (l)).

‘‘(5) RESPITE SERVICES.—The term ‘respite services’ means

short term care services provided in the temporary absence

of the regular caregiver (parent, other relative, foster parent,

adoptive parent, or guardian) to children who— ‘‘(A) are in danger of abuse or neglect;

‘‘(B) have experienced abuse or neglect; or

‘‘(C) have disabilities, chronic, or terminal illnesses.

Such services shall be provided within or outside the home

of the child, be short-term care (ranging from a few hours

to a few weeks of time, per year), and be intended to enable

the family to stay together and to keep the child living in

the home and community of the child. ‘‘(6) SECRETARY.—The term ‘Secretary’ means the Secretary

of Health and Human Services.

‘‘(7) SEXUAL ABUSE.—The term ‘sexual abuse’ includes—

‘‘(A) the employment, use, persuasion, inducement,

enticement, or coercion of any child to engage in, or assist

any other person to engage in, any sexually explicit conduct

or simulation of such conduct for the purpose of producing

a visual depiction of such conduct; or

‘‘(B) the rape, molestation, prostitution, or other form

of sexual exploitation of children, or incest with children;

‘‘(8) STATE.—The term ‘State’ means each of the several

States, the District of Columbia, the Commonwealth of Puerto

Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

‘‘(9) WITHHOLDING OF MEDICALLY INDICATED TREATMENT.—

The term ‘withholding of medically indicated treatment’ means

the failure to respond to the infant’s life-threatening conditions

by providing treatment (including appropriate nutrition, hydration, and medication) which, in the treating physician’s or physicians’ reasonable medical judgment, will be most likely to be
H. R. 4—186

effective in ameliorating or correcting all such conditions, except

that the term does not include the failure to provide treatment

(other than appropriate nutrition, hydration, or medication)

to an infant when, in the treating physician’s or physicians’

reasonable medical judgment—

‘‘(A) the infant is chronically and irreversibly comatose;

‘‘(B) the provision of such treatment would—

‘‘(i) merely prolong dying;

‘‘(ii) not be effective in ameliorating or correcting

all of the infant’s life-threatening conditions; or

‘‘(iii) otherwise be futile in terms of the survival

of the infant; or

‘‘(C) the provision of such treatment would be virtually

futile in terms of the survival of the infant and the treatment itself under such circumstances would be inhumane.

‘‘TITLE I—GENERAL BLOCK GRANT

‘‘SEC. 101. CHILD AND FAMILY SERVICES BLOCK GRANTS.

‘‘(a) ELIGIBILITY.—The Secretary shall award grants to eligible

States that file a State plan that is approved under section 102

and that otherwise meet the eligibility requirements for grants

under this title.

‘‘(b) AMOUNT OF GRANT.—The amount of a grant made to each

State under subsection (a) for a fiscal year shall be based on

the population of children under the age of 18 residing in each

State that applies for a grant under this section. ‘‘(c) USE OF AMOUNTS.—Amounts received by a State under a grant awarded under subsection (a) shall be used to carry out

the purposes described in section 3.

‘‘SEC. 102. ELIGIBLE STATES.

‘‘(a) IN GENERAL.—As used in this title, the term ‘eligible State’

means a State that has submitted to the Secretary, not later than

October 1, 1996, and every 3 years thereafter, a plan which has

been signed by the chief executive officer of the State and that

includes the following: ‘‘(1) OUTLINE OF CHILD PROTECTION PROGRAM.—A written

document that outlines the activities the State intends to conduct to achieve the purpose of this title, including the procedures to be used for—

‘‘(A) receiving and assessing reports of child abuse

or neglect; ‘‘(B) investigating such reports;

‘‘(C) with respect to families in which abuse or neglect

has been confirmed, providing services or referral for services for families and children where the State makes a

determination that the child may safely remain with the

family;

‘‘(D) protecting children by removing them from dangerous settings and ensuring their placement in a safe

environment;

‘‘(E) providing training for individuals mandated to

report suspected cases of child abuse or neglect;

‘‘(F) protecting children in foster care;

‘‘(G) promoting timely adoptions;
H. R. 4—187

‘‘(H) protecting the rights of families, using adult relatives as the preferred placement for children separated

from their parents where such relatives meet the relevant

State child protection standards; and

‘‘(I) providing services to individuals, families, or

communities, either directly or through referral, that are

aimed at preventing the occurrence of child abuse and

neglect.

‘‘(2) CERTIFICATION OF STATE LAW REQUIRING THE REPORTING OF CHILD ABUSE AND NEGLECT.—A certification that the

State has in effect laws that require public officials and other

professionals to report, in good faith, actual or suspected

instances of child abuse or neglect.

‘‘(3) CERTIFICATION OF PROCEDURES FOR SCREENING, SAFETY

ASSESSMENT, AND PROMPT INVESTIGATION.—A certification that

the State has in effect procedures for receiving and responding

to reports of child abuse or neglect, including the reports

described in paragraph (2), and for the immediate screening,

safety assessment, and prompt investigation of such reports.

‘‘(4) CERTIFICATION OF STATE PROCEDURES FOR REMOVAL

AND PLACEMENT OF ABUSED OR NEGLECTED CHILDREN.—A certification that the State has in effect procedures for the removal

from families and placement of abused or neglected children

and of any other child in the same household who may also

be in danger of abuse or neglect.

‘‘(5) CERTIFICATION OF PROVISIONS FOR IMMUNITY FROM

PROSECUTION.—A certification that the State has in effect laws

requiring immunity from prosecution under State and local

laws and regulations for individuals making good faith reports

of suspected or known instances of child abuse or neglect. ‘‘(6) CERTIFICATION OF PROVISIONS AND PROCEDURES FOR

EXPUNGEMENT OF CERTAIN RECORDS.—A certification that the

State has in effect laws and procedures requiring the facilitation of the prompt expungement of any records that are accessible to the general public or are used for purposes of employment or other background checks in cases determined to be

unsubstantiated or false.

‘‘(7) CERTIFICATION OF PROVISIONS AND PROCEDURES RELAT- ING TO APPEALS.—A certification that not later then 2 years

after the date of the enactment of this Act, the State shall

have laws and procedures in effect affording individuals an

opportunity to appeal an official finding of abuse or neglect. ‘‘(8) CERTIFICATION OF STATE PROCEDURES FOR DEVELOPING

AND REVIEWING WRITTEN PLANS FOR PERMANENT PLACEMENT

OF REMOVED CHILDREN.—A certification that the State has in

effect procedures for ensuring that a written plan is prepared

for children who have been removed from their families. Such

plan shall specify the goals for achieving a permanent placement for the child in a timely fashion, for ensuring that the

written plan is reviewed every 6 months (until such placement

is achieved), and for ensuring that information about such

children is collected regularly and recorded in case records,

and include a description of such procedures.

‘‘(9) CERTIFICATION OF STATE PROGRAM TO PROVIDE

INDEPENDENT LIVING SERVICES.—A certification that the State

has in effect a program to provide independent living services,

for assistance in making the transition to self-sufficient adult-
H. R. 4—188

hood, to individuals in the child protection program of the

State who are 16, but who are not 20 (or, at the option of

the State, 22), years of age, and who do not have a family

to which to be returned.

‘‘(10) CERTIFICATION OF STATE PROCEDURES TO RESPOND

TO REPORTING OF MEDICAL NEGLECT OF DISABLED INFANTS.—

A certification that the State has in place for the purpose

of responding to the reporting of medical neglect of infants

(including instances of withholding of medically indicated treatment from disabled infants with life-threatening conditions),

procedures or programs, or both (within the State child protective services system), to provide for—

‘‘(A) coordination and consultation with individuals designated by and within appropriate health-care facilities;

‘‘(B) prompt notification by individuals designated by

and within appropriate health-care facilities of cases of

suspected medical neglect (including instances of withholding of medically indicated treatment from disabled infants

with life-threatening conditions); and

‘‘(C) authority, under State law, for the State child

protective service to pursue any legal remedies, including

the authority to initiate legal proceedings in a court of

competent jurisdiction, as may be necessary to prevent

the withholding of medically indicated treatment from disabled infants with life-threatening conditions.

‘‘(11) IDENTIFICATION OF CHILD PROTECTION GOALS.—The

quantitative goals of the State child protection program.

‘‘(12) CERTIFICATION OF CHILD PROTECTION STANDARDS.— With respect to fiscal years beginning on or after April 1,

1996, a certification that the State—

‘‘(A) has completed an inventory of all children who,

before the inventory, had been in foster care under the

responsibility of the State for 6 months or more, which

determined—

‘‘(i) the appropriateness of, and necessity for, the

foster care placement;

‘‘(ii) whether the child could or should be returned

to the parents of the child or should be freed for

adoption or other permanent placement; and

‘‘(iii) the services necessary to facilitate the return

of the child or the placement of the child for adoption

or legal guardianship;

‘‘(B) is operating, to the satisfaction of the Secretary— ‘‘(i) a statewide information system from which

can be readily determined the status, demographic

characteristics, location, and goals for the placement

of every child who is (or, within the immediately

preceding 12 months, has been) in foster care;

‘‘(ii) a case review system for each child receiving

foster care under the supervision of the State;

‘‘(iii) a service program designed to help children—

‘‘(I) where appropriate, return to families from

which they have been removed; or

‘‘(II) be placed for adoption, with a legal guardian, or if adoption or legal guardianship is determined not to be appropriate for a child, in some

other planned, permanent living arrangement; and
H. R. 4—189

‘‘(iv) a preplacement preventive services program

designed to help children at risk for foster care placement remain with their families; and

‘‘(C)(i) has reviewed (or not later than October 1, 1997,

will review) State policies and administrative and judicial

procedures in effect for children abandoned at or shortly

after birth (including policies and procedures providing for

legal representation of such children); and

‘‘(ii) is implementing (or not later than October 1, 1997,

will implement) such policies and procedures as the State

determines, on the basis of the review described in clause

(i), to be necessary to enable permanent decisions to be

made expeditiously with respect to the placement of such

children.

‘‘(13) CERTIFICATION OF REASONABLE EFFORTS BEFORE

PLACEMENT OF CHILDREN IN FOSTER CARE.—A certification that

the State in each case will—

‘‘(A) make reasonable efforts prior to the placement

of a child in foster care, to prevent or eliminate the need

for removal of the child from the child’s home, and to

make it possible for the child to return home; and

‘‘(B) with respect to families in which abuse or neglect

has been confirmed, provide services or referral for services

for families and children where the State makes a determination that the child may safely remain with the family.

‘‘(14) CERTIFICATION OF INFORMATION DISCLOSURE PROVISIONS.—A certification that the State has in effect and operational—

‘‘(A) requirements for the prompt disclosure of all relevant information to any Federal, State, or local government entity, citizens review panel, child fatality review

panel, or any agent of such government entity determined

by the State to have a need for such information in order

to carry out its responsibilities under law to protect children from abuse or neglect; and ‘‘(B) provisions that allow for the public disclosure of

the findings of information about a case of child abuse

or neglect which has resulted in a child fatality or nearfatality, except that the public disclosure of such information shall be made in a manner that protects the privacy

rights of individuals involved in the case, unless such

individuals have waived such rights or criminal court

proceedings have been initiated. ‘‘(b) DETERMINATIONS.—The Secretary shall determine whether a plan submitted pursuant to subsection (a) contains the material

required by subsection (a), other than the material described in

paragraph (10) of such subsection. The Secretary may not require

a State to include in such a plan any material not described in

subsection (a).

‘‘SEC. 103. DATA COLLECTION AND REPORTING.

‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE GOALS.—On

the date that is 3 years after the date of enactment of this Act

and annually thereafter, each State to which a grant is made

under section 101 shall submit to the Secretary a report that

contains quantitative information on the extent to which the State

is making progress toward achieving the purposes of this Act.
H. R. 4—190

‘‘(b) STATE DATA REPORTS.—

‘‘(1) BIANNUAL REPORTS.—Each State to which a grant is

made under section 101 shall biannually submit to the Secretary a report that includes the following disaggregated case

record information with respect to each child within the State

receiving publicly-supported child welfare services under the

State program funded under this Act:

‘‘(A) Whether the child received services under the

program funded under this Act.

‘‘(B) The age, race, gender, and family income of the

parents and child.

‘‘(C) The county of residence of the child.

‘‘(D) Whether the child was removed from the family.

‘‘(E) Whether the child entered foster care under the

responsibility of the State.

‘‘(F) The type of out-of-home care in which the child

was placed (including institutional care, group home care,

family foster care, or relative placement).

‘‘(G) The child’s permanency planning goal, such as

family reunification, kinship care, adoption, or independent

living.

‘‘(H) Whether the child was released for adoption.

‘‘(I) Whether the child exited from foster care, and,

if so, the reason for the exit, such as return to family,

placement with relatives, adoption, independent living, or

death.

‘‘(J) Other information as required by the Secretary

and agreed to by a majority of the States, including

information necessary to ensure that there is a smooth

transition of data from the Adoption and Foster Care

Analysis and Reporting Systems and the National Center

on Abuse and Neglect Data System to the data reporting

system required under this section.

‘‘(2) ANNUAL REPORTS.—Each State to which a grant is

made under section 101 shall annually submit to the Secretary

a report that includes the following information:

‘‘(A) The number of children reported to the State

during the year as alleged victims of abuse or neglect.

‘‘(B) The number of children for whom an investigation

of alleged maltreatment resulted in a determination of

substantiated abuse or neglect, the number for whom a

report of maltreatment was unsubstantiated, and the number for whom a report of maltreatment was determined

to be false.

‘‘(C) The number of families that received preventive

services.

‘‘(D) The number of infants abandoned during the year,

the number of such infants who were adopted, and the

length of time between abandonment and adoption.

‘‘(E) The number of deaths of children resulting from

child abuse or neglect.

‘‘(F) The number of deaths occurring while children

were in the custody of the State.

‘‘(G) The number of children served by the State

independent living program.
H. R. 4—191

‘‘(H) Quantitative measurements demonstrating whether the State is making progress toward the child

protection goals identified by the State. ‘‘(I) The types of maltreatment suffered by victims of child abuse and neglect. ‘‘(J) The number of abused and neglected children

receiving services. ‘‘(K) The average length of stay of children in outof-home care.

‘‘(L) Other information as required by the Secretary

and agreed to by a majority of the States, including

information necessary to ensure that there is a smooth

transition of data from the Adoption and Foster Care

Analysis and Reporting Systems and the National Center

on Abuse and Neglect Data System to the data reporting

system required under this section.

‘‘(3) REGULATORY AUTHORITY.—The Secretary shall define

by regulation the information required to be included in the

reports submitted under paragraphs (1) and (2).

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

‘‘(1) IN GENERAL.—A State may comply with a requirement

to provide precise numerical information described in subsection

(b) by submitting an estimate which is obtained through the

use of scientifically acceptable sampling methods.

‘‘(2) SECRETARIAL REVIEW OF SAMPLING METHODS.—The Secretary shall periodically review the sampling methods used

by a State to comply with a requirement to provide information

described in subsection (b). The Secretary may require a State

to revise the sampling methods so used if such methods do

not meet scientific standards.

‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within 6 months

after the end of each fiscal year, the Secretary shall prepare a

report based on information provided by the States for the fiscal

year pursuant to subsection (b), and shall make the report and

such information available to the Congress and the public.

‘‘(e) SCOPE OF STATE PROGRAM FUNDED UNDER THIS ACT.—

As used in subsection (b), the term ‘State program funded under

this Act’ includes any equivalent State program.

‘‘TITLE II—RESEARCH, DEMONSTRATIONS, TRAINING, AND TECHNICAL

ASSISTANCE

‘‘SEC. 201. RESEARCH GRANTS.

‘‘(a) IN GENERAL.—The Secretary, in consultation with appropriate Federal officials and recognized experts in the field, shall

award grants or contracts for the conduct of research in accordance

with subsection (b).

‘‘(b) RESEARCH.—Research projects to be conducted using

amounts received under this section—

‘‘(1) shall be designed to provide information to better protect children from abuse or neglect and to improve the well

being of abused or neglected children, with at least a portion

of any such research conducted under a project being field

initiated;
H. R. 4—192

‘‘(2) shall at a minimum, focus on—

‘‘(A) the nature and scope of child abuse and neglect;

‘‘(B) the causes, prevention, assessment, identification,

treatment, cultural and socio-economic distinctions, and

the consequences of child abuse and neglect;

‘‘(C) appropriate, effective and culturally sensitive

investigative, administrative, and judicial procedures with

respect to cases of child abuse; and

‘‘(D) the national incidence of child abuse and neglect,

including—

‘‘(i) the extent to which incidents of child abuse

are increasing or decreasing in number and severity;

‘‘(ii) the incidence of substantiated and unsubstantiated reported child abuse cases;

‘‘(iii) the number of substantiated cases that result

in a judicial finding of child abuse or neglect or related

criminal court convictions;

‘‘(iv) the extent to which the number of unsubstantiated, unfounded and false reported cases of child

abuse or neglect have contributed to the inability of

a State to respond effectively to serious cases of child

abuse or neglect;

‘‘(v) the extent to which the lack of adequate

resources and the lack of adequate training of reporters

have contributed to the inability of a State to respond

effectively to serious cases of child abuse and neglect;

‘‘(vi) the number of unsubstantiated, false, or

unfounded reports that have resulted in a child being

placed in substitute care, and the duration of such

placement;

‘‘(vii) the extent to which unsubstantiated reports

return as more serious cases of child abuse or neglect;

‘‘(viii) the incidence and prevalence of physical,

sexual, and emotional abuse and physical and emotional neglect in substitute care;

‘‘(ix) the incidence and outcomes of abuse allegations reported within the context of divorce, custody,

or other family court proceedings, and the interaction

between this venue and the child protective services

system; and

‘‘(x) the cases of children reunited with their families or receiving family preservation services that result

in subsequent substantiated reports of child abuse and

neglect, including the death of the child; and

‘‘(3) may include the appointment of an advisory board

to—

‘‘(A) provide recommendations on coordinating Federal,

State, and local child abuse and neglect activities at the

State level with similar activities at the State and local

level pertaining to family violence prevention;

‘‘(B) consider specific modifications needed in State

laws and programs to reduce the number of unfounded

or unsubstantiated reports of child abuse or neglect while

enhancing the ability to identify and substantiate legitimate cases of abuse or neglect which place a child in

danger; and
H. R. 4—193

‘‘(C) provide recommendations for modifications needed

to facilitate coordinated national and Statewide data collection with respect to child protection and child welfare.

‘‘SEC. 202. NATIONAL CLEARINGHOUSE FOR INFORMATION RELATING

TO CHILD ABUSE.

‘‘(a) ESTABLISHMENT.—The Secretary shall, through the Depart- ment of Health and Human Services, or by one or more contracts

of not less than 3 years duration provided through a competition,

establish a national clearinghouse for information relating to child

abuse.

‘‘(b) FUNCTIONS.—The Secretary shall, through the clearing- house established by subsection (a)— ‘‘(1) maintain, coordinate, and disseminate information on

all programs, including private programs, that show promise

of success with respect to the prevention, assessment, identification, and treatment of child abuse and neglect; ‘‘(2) maintain and disseminate information relating to— ‘‘(A) the incidence of cases of child abuse and neglect in the United States;

‘‘(B) the incidence of such cases in populations deter- mined by the Secretary under section 105(a)(1) of the Child

Abuse Prevention, Adoption, and Family Services Act of

1988 (as such section was in effect on the day before

the date of enactment of this Act); and

‘‘(C) the incidence of any such cases related to alcohol or drug abuse;

‘‘(3) disseminate information related to data collected and

reported by States pursuant to section 103; ‘‘(4) compile, analyze, and publish a summary of the research conducted under section 201; and

‘‘(5) solicit public comment on the components of such

clearinghouse.

‘‘SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

‘‘(a) AWARDING OF GENERAL GRANTS.—The Secretary may make grants to, and enter into contracts with, public and nonprofit private

agencies or organizations (or combinations of such agencies or

organizations) for the purpose of developing, implementing, and

operating time limited, demonstration programs and projects for

the following purposes: ‘‘(1) INNOVATIVE PROGRAMS AND PROJECTS.—The Secretary may award grants to public agencies that demonstrate innovation in responding to reports of child abuse and neglect including programs of collaborative partnerships between the State

child protective service agency, community social service agencies and family support programs, schools, churches and synagogues, and other community agencies to allow for the

establishment of a triage system that— ‘‘(A) accepts, screens and assesses reports received to

determine which such reports require an intensive intervention and which require voluntary referral to another

agency, program or project; ‘‘(B) provides, either directly or through referral, a

variety of community-linked services to assist families in

preventing child abuse and neglect; and

‘‘(C) provides further investigation and intensive intervention where the child’s safety is in jeopardy.
H. R. 4—194

‘‘(2) KINSHIP CARE PROGRAMS AND PROJECTS.—The Secretary may award grants to public entities to assist such entities in developing or implementing procedures using adult

relatives as the preferred placement for children removed from

their home, where such relatives are determined to be capable

of providing a safe nurturing environment for the child and

where, to the maximum extent practicable, such relatives comply with relevant State child protection standards.

‘‘(3) ADOPTION OPPORTUNITIES.—The Secretary may award

grants to public entities to assist such entities in developing

or implementing programs to expand opportunities for the adoption of children with special needs.

‘‘(4) FAMILY RESOURCE CENTERS.—The Secretary may award

grants to public or nonprofit private entities to provide for

the establishment of family resource programs and support

services that—

‘‘(A) develop, expand, and enhance Statewide networks

of community-based, prevention-focused centers, programs,

or services that provide comprehensive support for families;

‘‘(B) promote the development of parental competencies

and capacities in order to increase family stability;

‘‘(C) support the additional needs of families with children with disabilities;

‘‘(D) foster the development of a continuum of preventive services for children and families through State and

community-based collaborations and partnerships (both

public and private); and

‘‘(E) maximize funding for the financing, planning,

community mobilization, collaboration, assessment,

information and referral, start-up, training and technical

assistance, information management, reporting, and

evaluation costs for establishing, operating, or expanding

a Statewide network of community-based, preventionfocused family resource and support services.

‘‘(5) OTHER INNOVATIVE PROGRAMS.—The Secretary may

award grants to public or private nonprofit organizations to

assist such entities in developing or implementing innovative

programs and projects that show promise of preventing and

treating cases of child abuse and neglect (such as Parents

Anonymous).

‘‘(b) GRANTS FOR ABANDONED INFANT PROGRAMS.—The Secretary may award grants to public and nonprofit private entities

to assist such entities in developing or implementing procedures— ‘‘(1) to prevent the abandonment of infants and young

children, including the provision of services to members of

the natural family for any condition that increases the probability of abandonment of an infant or young child;

‘‘(2) to identify and address the needs of abandoned infants

and young children;

‘‘(3) to assist abandoned infants and young children to

reside with their natural families or in foster care, as appropriate;

‘‘(4) to recruit, train, and retain foster families for abandoned infants and young children;

‘‘(5) to carry out residential care programs for abandoned

infants and young children who are unable to reside with

their families or to be placed in foster care;
H. R. 4—195

‘‘(6) to carry out programs of respite care for families and foster families of infants and young children; and ‘‘(7) to recruit and train health and social services personnel

to work with families, foster care families, and residential care

programs for abandoned infants and young children.

‘‘(c) EVALUATION.—In making grants for demonstration projects under this section, the Secretary shall require all such projects

to be evaluated for their effectiveness. Funding for such evaluations

shall be provided either as a stated percentage of a demonstration

grant or as a separate grant entered into by the Secretary for

the purpose of evaluating a particular demonstration project or

group of projects.

‘‘SEC. 204. TECHNICAL ASSISTANCE.

‘‘(a) CHILD ABUSE AND NEGLECT.— ‘‘(1) IN GENERAL.—The Secretary shall provide technical assistance under this title to States to assist such States in

planning, improving, developing, and carrying out programs

and activities relating to the prevention, assessment identification, and treatment of child abuse and neglect. ‘‘(2) EVALUATION.—Technical assistance provided under paragraph (1) may include an evaluation or identification of— ‘‘(A) various methods and procedures for the investiga- tion, assessment, and prosecution of child physical and

sexual abuse cases;

‘‘(B) ways to mitigate psychological trauma to the child victim; and

‘‘(C) effective programs carried out by the States under this Act.

‘‘(b) ADOPTION OPPORTUNITIES.—The Secretary shall provide, directly or by grant to or contract with public or private nonprofit

agencies or organizations— ‘‘(1) technical assistance and resource and referral information to assist State or local governments with termination of

parental rights issues, in recruiting and retaining adoptive

families, in the successful placement of children with special

needs, and in the provision of pre- and post-placement services,

including post-legal adoption services; and ‘‘(2) other assistance to help State and local governments replicate successful adoption-related projects from other areas

in the United States.

‘‘SEC. 205. TRAINING RESOURCES.

‘‘(a) TRAINING PROGRAMS.—The Secretary may award grants to public or private non-profit organizations— ‘‘(1) for the training of professional and paraprofessional personnel in the fields of medicine, law, education, law enforcement, social work, and other relevant fields who are engaged

in, or intend to work in, the field of prevention, identification,

and treatment of child abuse and neglect, including the links

between domestic violence and child abuse;

‘‘(2) to provide culturally specific instruction in methods

of protecting children from child abuse and neglect to children

and to persons responsible for the welfare of children, including

parents of and persons who work with children with disabilities;

and

‘‘(3) to improve the recruitment, selection, and training

of volunteers serving in private and public nonprofit children,
H. R. 4—196

youth and family service organizations in order to prevent

child abuse and neglect through collaborative analysis of current recruitment, selection, and training programs and development of model programs for dissemination and replication

nationally.

‘‘(b) DISSEMINATION OF INFORMATION.—The Secretary may pro- vide for and disseminate information relating to various training

resources available at the State and local level to—

‘‘(1) individuals who are engaged, or who intend to engage, in the prevention, identification, assessment, and treatment

of child abuse and neglect; and ‘‘(2) appropriate State and local officials, including prosecu- tors, to assist in training law enforcement, legal, judicial, medical, mental health, education, and child welfare personnel in

appropriate methods of interacting during investigative,

administrative, and judicial proceedings with children who have

been subjected to abuse.

‘‘SEC. 206. APPLICATIONS AND AMOUNTS OF GRANTS.

‘‘(a) REQUIREMENT OF APPLICATION.—The Secretary may not make a grant to a State or other entity under this title unless— ‘‘(1) an application for the grant is submitted to the Secretary; ‘‘(2) with respect to carrying out the purpose for which the grant is to be made, the application provides assurances

of compliance satisfactory to the Secretary; and ‘‘(3) the application otherwise is in such form, is made

in such manner, and contains such agreements, assurances,

and information as the Secretary determines to be necessary

to carry out this title.

‘‘(b) AMOUNT OF GRANT.—The Secretary shall determine the amount of a grant to be awarded under this title.

‘‘SEC. 207. PEER REVIEW FOR GRANTS.

‘‘(a) ESTABLISHMENT OF PEER REVIEW PROCESS.— ‘‘(1) IN GENERAL.—The Secretary shall, in consultation with experts in the field and other Federal agencies, establish a

formal, rigorous, and meritorious peer review process for purposes of evaluating and reviewing applications for grants under

this title and determining the relative merits of the projects

for which such assistance is requested. The purpose of this

process is to enhance the quality and usefulness of research

in the field of child abuse and neglect. ‘‘(2) REQUIREMENTS FOR MEMBERS.—In establishing the process required by paragraph (1), the Secretary shall appoint

to the peer review panels only members who are experts in

the field of child abuse and neglect or related disciplines, with

appropriate expertise in the application to be reviewed, and

who are not individuals who are officers or employees of the

Administration for Children and Families. The panels shall

meet as often as is necessary to facilitate the expeditious review

of applications for grants and contracts under this title, but

may not meet less than once a year. The Secretary shall ensure

that the peer review panel utilizes scientifically valid review

criteria and scoring guidelines for review committees.

‘‘(b) REVIEW OF APPLICATIONS FOR ASSISTANCE.—Each peer

review panel established under subsection (a)(1) that reviews any

application for a grant shall—
H. R. 4—197

‘‘(1) determine and evaluate the merit of each project

described in such application;

‘‘(2) rank such application with respect to all other applications it reviews in the same priority area for the fiscal year

involved, according to the relative merit of all of the projects

that are described in such application and for which financial

assistance is requested; and

‘‘(3) make recommendations to the Secretary concerning

whether the application for the project shall be approved.

The Secretary shall award grants under this title on the basis

of competitive review.

‘‘(c) NOTICE OF APPROVAL.—

‘‘(1) IN GENERAL.—The Secretary shall provide grants under

this title from among the projects which the peer review panels

established under subsection (a)(1) have determined to have

merit.

‘‘(2) REQUIREMENT OF EXPLANATION.—In the instance in

which the Secretary approves an application for a program

under this title without having approved all applications ranked

above such application, the Secretary shall append to the

approved application a detailed explanation of the reasons

relied on for approving the application and for failing to approve

each pending application that is superior in merit.

‘‘SEC. 208. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

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

based on random samples of children who are at risk of child

abuse or neglect, or are determined by States to have been abused

or neglected, and such other research as may be necessary.

‘‘(b) REQUIREMENTS.—The study required by subsection (a)

shall—

‘‘(1) have a longitudinal component; and

‘‘(2) yield data reliable at the State level for as many

States as the Secretary determines is feasible.

‘‘(c) PREFERRED CONTENTS.—In conducting the study required

by subsection (a), the Secretary should—

‘‘(1) collect data on the child protection programs of different small States or (different groups of such States) in different years to yield an occasional picture of the child protection

programs of such States;

‘‘(2) carefully consider selecting the sample from cases of

confirmed abuse or neglect; and

‘‘(3) follow each case for several years while obtaining

information on, among other things—

‘‘(A) the type of abuse or neglect involved;

‘‘(B) the frequency of contact with State or local agencies;

‘‘(C) whether the child involved has been separated

from the family, and, if so, under what circumstances;

‘‘(D) the number, type, and characteristics of out-ofhome placements of the child; and

‘‘(E) the average duration of each placement.

‘‘(d) REPORTS.—

‘‘(1) IN GENERAL.—From time to time, the Secretary shall

prepare reports summarizing the results of the study required

by subsection (a).
H. R. 4—198

‘‘(2) AVAILABILITY.—The Secretary shall make available to

the public any report prepared under paragraph (1), in writing

or in the form of an electronic data tape.

‘‘(3) AUTHORITY TO CHARGE FEE.—The Secretary may charge

and collect a fee for the furnishing of reports under paragraph

(2).

‘‘(4) FUNDING.—The Secretary shall carry out this section

using amounts made available under section 428 of the Social

Security Act.

‘‘TITLE III—GENERAL PROVISIONS

‘‘SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) TITLE I.—There are authorized to be appropriated to carry

out title I, $230,000,000 for fiscal year 1996, and such sums as

may be necessary for each of the fiscal years 1997 through 2002.

‘‘(b) TITLE II.—

‘‘(1) IN GENERAL.—Of the amount appropriated under subsection (a) for a fiscal year, the Secretary shall make available

12 percent of such amount to carry out title II (except for

sections 203 and 208).

‘‘(2) GRANTS FOR DEMONSTRATION PROJECTS.—Of the

amount made available under paragraph (1) for a fiscal year,

the Secretary shall make available not less than 40 percent

of such amount to carry out section 203.

‘‘(c) INDIAN TRIBES.—Of the amount appropriated under subsection (a) for a fiscal year, the Secretary shall make available

1 percent of such amount to provide grants and contracts to Indian

tribes and Tribal Organizations. ‘‘(d) AVAILABILITY OF APPROPRIATIONS.—Amounts appropriated

under subsection (a) shall remain available until expended.

‘‘SEC. 302. GRANTS TO STATES FOR PROGRAMS RELATING TO THE

INVESTIGATION AND PROSECUTION OF CHILD ABUSE

AND NEGLECT CASES.

‘‘(a) GRANTS TO STATES.—The Secretary, in consultation with

the Attorney General, is authorized to make grants to the States

for the purpose of assisting States in developing, establishing, and

operating programs designed to improve— ‘‘(1) the handling of child abuse and neglect cases, particularly cases of child sexual abuse and exploitation, in a manner

which limits additional trauma to the child victim;

‘‘(2) the handling of cases of suspected child abuse or neglect

related fatalities; and

‘‘(3) the investigation and prosecution of cases of child

abuse and neglect, particularly child sexual abuse and exploitation.

‘‘(b) ELIGIBILITY REQUIREMENTS.—In order for a State to qualify

for assistance under this section, such State shall—

‘‘(1) be an eligible State under section 102;

‘‘(2) establish a task force as provided in subsection (c);

‘‘(3) fulfill the requirements of subsection (d);

‘‘(4) submit annually an application to the Secretary at

such time and containing such information and assurances

as the Secretary considers necessary, including an assurance

that the State will—
H. R. 4—199

‘‘(A) make such reports to the Secretary as may reasonably be required; and

‘‘(B) maintain and provide access to records relating

to activities under subsection (a); and

‘‘(5) submit annually to the Secretary a report on the manner in which assistance received under this program was

expended throughout the State, with particular attention

focused on the areas described in paragraphs (1) through (3)

of subsection (a).

‘‘(c) STATE TASK FORCES.—

‘‘(1) GENERAL RULE.—Except as provided in paragraph (2),

a State requesting assistance under this section shall establish

or designate, and maintain, a State multidisciplinary task force

on children’s justice (hereafter in this section referred to as

‘State task force’) composed of professionals with knowledge

and experience relating to the criminal justice system and

issues of child physical abuse, child neglect, child sexual abuse

and exploitation, and child maltreatment related fatalities. The

State task force shall include—

‘‘(A) individuals representing the law enforcement

community;

‘‘(B) judges and attorneys involved in both civil and

criminal court proceedings related to child abuse and

neglect (including individuals involved with the defense

as well as the prosecution of such cases);

‘‘(C) child advocates, including both attorneys for children and, where such programs are in operation, court

appointed special advocates;

‘‘(D) health and mental health professionals;

‘‘(E) individuals representing child protective service

agencies; ‘‘(F) individuals experienced in working with children

with disabilities;

‘‘(G) parents; and

‘‘(H) representatives of parents’ groups. ‘‘(2) EXISTING TASK FORCE.—As determined by the Secretary, a State commission or task force established after January 1, 1983, with substantially comparable membership and

functions, may be considered the State task force for purposes

of this subsection.

‘‘(d) STATE TASK FORCE STUDY.—Before a State receives assistance under this section, and at 3 year intervals thereafter, the

State task force shall comprehensively— ‘‘(1) review and evaluate State investigative, administrative

and both civil and criminal judicial handling of cases of child

abuse and neglect, particularly child sexual abuse and exploitation, as well as cases involving suspected child maltreatment

related fatalities and cases involving a potential combination

of jurisdictions, such as interstate, Federal-State, and StateTribal; and

‘‘(2) make policy and training recommendations in each

of the categories described in subsection (e).

The task force may make such other comments and recommendations as are considered relevant and useful.

‘‘(e) ADOPTION OF STATE TASK FORCE RECOMMENDATIONS.—

‘‘(1) GENERAL RULE.—Subject to the provisions of paragraph

(2), before a State receives assistance under this section, a
H. R. 4—200

State shall adopt recommendations of the State task force in

each of the following categories—

‘‘(A) investigative, administrative, and judicial handling of cases of child abuse and neglect, particularly child

sexual abuse and exploitation, as well as cases involving

suspected child maltreatment related fatalities and cases

involving a potential combination of jurisdictions, such as

interstate, Federal-State, and State-Tribal, in a manner

which reduces the additional trauma to the child victim

and the victim’s family and which also ensures procedural

fairness to the accused;

‘‘(B) experimental, model and demonstration programs

for testing innovative approaches and techniques which

may improve the prompt and successful resolution of civil

and criminal court proceedings or enhance the effectiveness

of judicial and administrative action in child abuse and

neglect cases, particularly child sexual abuse and exploitation cases, including the enhancement of performance

of court-appointed attorneys and guardians ad litem for

children; and

‘‘(C) reform of State laws, ordinances, regulations,

protocols and procedures to provide comprehensive protection for children from abuse, particularly child sexual abuse

and exploitation, while ensuring fairness to all affected

persons.

‘‘(2) EXEMPTION.—As determined by the Secretary, a State

shall be considered to be in fulfillment of the requirements

of this subsection if—

‘‘(A) the State adopts an alternative to the recommendations of the State task force, which carries out

the purpose of this section, in each of the categories under

paragraph (1) for which the State task force’s recommendations are not adopted; or

‘‘(B) the State is making substantial progress toward

adopting recommendations of the State task force or a

comparable alternative to such recommendations.

‘‘(f) FUNDS AVAILABLE.—For grants under this section, the Secretary shall use the amount authorized by section 1404A of the

Victims of Crime Act of 1984.

‘‘SEC. 303. TRANSITIONAL PROVISION.

‘‘A State or other entity that has a grant, contract, or cooperative agreement in effect, on the date of enactment of this Act,

under the Family Resource and Support Program, the CommunityBased Family Resource Program, the Family Support Center Program, the Emergency Child Abuse Prevention Grant Program, or

the Temporary Child Care for Children with Disabilities and Crisis

Nurseries Programs shall continue to receive funds under such

grant, contract, or cooperative agreement, subject to the original

terms under which such funds were provided, through the end

of the applicable grant, contract, or agreement cycle.

‘‘SEC. 304. RULE OF CONSTRUCTION.

‘‘(a) IN GENERAL.—Nothing in this Act, or in part B of title

IV of the Social Security Act, shall be construed—

‘‘(1) as establishing a Federal requirement that a parent

or legal guardian provide a child any medical service or treat-
H. R. 4—201

ment against the religious beliefs of the parent or legal guardian; and

‘‘(2) to require that a State find, or to prohibit a State

from finding, abuse or neglect in cases in which a parent

or legal guardian relies solely or partially upon spiritual means

rather than medical treatment, in accordance with the religious

beliefs of the parent or legal guardian.

‘‘(b) STATE REQUIREMENT.—Notwithstanding subsection (a), a

State shall have in place authority under State law to permit

the child protective service system of the State to pursue any

legal remedies, including the authority to initiate legal proceedings

in a court of competent jurisdiction, to provide medical care or

treatment for a child when such care or treatment is necessary

to prevent or remedy serious harm to the child, or to prevent

the withholding of medically indicated treatment from children

with life threatening conditions. Except with respect to the

withholding of medically indicated treatments from disabled infants

with life threatening conditions, case by case determinations

concerning the exercise of the authority of this subsection shall

be within the sole discretion of the State.

‘‘SEC. 305. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.

‘‘(a) PURPOSE.—The purpose of this section is to decrease the

length of time that children wait to be adopted and to prevent

discrimination in the placement of children on the basis of race,

color, or national origin.

‘‘(b) MULTIETHNIC PLACEMENTS.—

‘‘(1) PROHIBITION.—A State or other entity that receives

funds from the Federal Government and is involved in adoption

or foster care placements may not—

‘‘(A) deny to any person the opportunity to become

an adoptive or a foster parent, on the basis of the race,

color, or national origin of the person, or of the child,

involved; or

‘‘(B) delay or deny the placement of a child for adoption

or into foster care, or otherwise discriminate in making

a placement decision, on the basis of the race, color, or

national origin of the adoptive or foster parent, or the

child, involved.

‘‘(2) PENALTIES.—

‘‘(A) STATE VIOLATORS.—

‘‘(i) IN GENERAL.—If the Secretary determines that

a State is in violation of paragraph (1), the Secretary

shall notify the State of such violation. The State shall

have 90 days from the date on which such notice

is received to correct such violation. During such 90-

day period, the Secretary shall provide technical assistance to the State to assist such State in complying

with the requirements of paragraph (1).

‘‘(ii) FAILURE TO COMPLY.—If after the expiration

of the 90-day period described in clause (i) the Secretary determines that the State continues to be in

violation of paragraph (1), the Secretary shall reduce

the amount due to the State for the succeeding fiscal

year under the block grant program under part B

of title IV of the Social Security Act by 10 percent.
H. R. 4—202

‘‘(B) PRIVATE VIOLATORS.—Any other entity that violates paragraph (1) during a period shall remit to the

Secretary all funds that were paid to the entity during

the period by a State from funds provided under this part.

‘‘(3) PRIVATE CAUSE OF ACTION.—

‘‘(A) IN GENERAL.—Any individual who is aggrieved

by a violation of paragraph (1) by a State or other entity

may bring an action seeking relief in any United States

district court.

‘‘(B) STATUTE OF LIMITATIONS.—An action under this

paragraph may not be brought more than 2 years after

the date the alleged violation occurred.’’.

SEC. 752. REAUTHORIZATIONS.

(a) MISSING CHILDREN’S ASSISTANCE ACT.—Section 408 of the

Missing Children’s Assistance Act (42 U.S.C. 5777) is amended—

(1) by striking ‘‘To’’ and inserting ‘‘(a) IN GENERAL.—’’

(2) by striking ‘‘and 1996’’ and inserting ‘‘1996, and 1997’’;

and

(3) by adding at the end thereof the following new subsection:

‘‘(b) EVALUATION.—The Administrator shall use not more than

5 percent of the amount appropriated for a fiscal year under subsection (a) to conduct an evaluation of the effectiveness of the

programs and activities established and operated under this title.’’.

(b) VICTIMS OF CHILD ABUSE ACT OF 1990.—Section 214B of

the Victims of Child Abuse Act of 1990 (42 U.S.C. 13004) is

amended—

(1) in subsection (a)(2), by striking ‘‘and 1996’’ and inserting

‘‘1996, and 1997’’; and

(2) in subsection (b)(2), by striking ‘‘and 1996’’ and inserting

‘‘1996 and 1997’’.

SEC. 753. REPEALS.

(a) IN GENERAL.—The following provisions of law are repealed: (1) Title II of the Child Abuse Prevention and Treatment

and Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.).

(2) The Abandoned Infants Assistance Act of 1988 (42

U.S.C. 670 note).

(3) The Temporary Child Care for Children with Disabilities and Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.).

(4) Section 553 of the Howard M. Metzenbaum Multiethnic

Placement Act of 1994 (42 U.S.C. 5115a).

(5) Subtitle F of title VII of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11481 et seq.).

(b) CONFORMING AMENDMENTS.—

(1) RECOMMENDED LEGISLATION.—After consultation with

the appropriate committees of the Congress and the Director

of the Office of Management and Budget, the Secretary of

Health and Human Services shall prepare and submit to the

Congress a legislative proposal in the form of an implementing

bill containing technical and conforming amendments to reflect

the repeals made by this section.

(2) SUBMISSION TO CONGRESS.—Not later than 6 months

after the date of enactment of this chapter, the Secretary of

Health and Human Services shall submit the implementing

bill referred to under paragraph (1).
H. R. 4—203

TITLE VIII—CHILD CARE

SEC. 801. SHORT TITLE AND REFERENCES.

(a) SHORT TITLE.—This title may be cited as the ‘‘Child Care

and Development Block Grant Amendments of 1995’’.

(b) REFERENCES.—Except as otherwise expressly provided,

whenever in this title an amendment or repeal is expressed in

terms of an amendment to, or repeal of, a section or other provision,

the reference shall be considered to be made to a section or other

provision of the Child Care and Development Block Grant Act

of 1990 (42 U.S.C. 9858 et seq.).

SEC. 802. GOALS.

(a) GOALS.—Section 658A (42 U.S.C. 9801 note) is amended—

(1) in the section heading by inserting ‘‘AND GOALS’’ after

‘‘TITLE’’;

(2) by inserting ‘‘(a) SHORT TITLE.—’’ before ‘‘This’’; and

(3) by adding at the end the following:

‘‘(b) GOALS.—The goals of this subchapter are—

‘‘(1) to allow each State maximum flexibility in developing

child care programs and policies that best suit the needs of

children and parents within such State;

‘‘(2) to promote parental choice to empower working parents

to make their own decisions on the child care that best suits

their family’s needs;

‘‘(3) to encourage States to provide consumer education

information to help parents make informed choices about child

care;

‘‘(4) to assist States to provide child care to parents trying

to achieve independence from public assistance; and

‘‘(5) to assist States in implementing the health, safety,

licensing, and registration standards established in State

regulations.’’.

SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT

AUTHORITY.

(a) IN GENERAL.—Section 658B (42 U.S.C. 9858) is amended

to read as follows:

‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

‘‘There is authorized to be appropriated to carry out this subchapter $1,000,000,000 for each of the fiscal years 1996 through

2002.’’.

(b) SOCIAL SECURITY ACT.—Part A of title IV of the Social

Security Act (as amended by section 103) is amended—

(1) by redesignating section 418 as section 419; and

(2) by inserting after section 417, the following new section:

‘‘SEC. 418. FUNDING FOR CHILD CARE.

‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—

‘‘(1) GENERAL ENTITLEMENT.—Subject to the amount appropriated under paragraph (3), each State shall, for the purpose

of providing child care assistance, be entitled to payments

under a grant under this subsection for a fiscal year in an

amount equal to—

‘‘(A) the sum of the total amount required to be paid

to the State under former section 403 for fiscal year 1994
H. R. 4—204

with respect to amounts expended for child care under

section—

‘‘(i) 402(g) of this Act (as such section was in effect

before October 1, 1995); and

‘‘(ii) 403(i) of this Act (as so in effect); or

‘‘(B) the average of the total amounts required to be

paid to the State for fiscal years 1992 through 1994 under

the sections referred to in subparagraph (A);

whichever is greater.

‘‘(2) REMAINDER.—

‘‘(A) GRANTS.—The Secretary shall use any amounts

appropriated for a fiscal year under paragraph (3), and

remaining after the reservation described in paragraph

(5) and after grants are awarded under paragraph (1),

to make grants to States under this paragraph.

‘‘(B) AMOUNT.—Subject to subparagraph (C), the

amount of a grant awarded to a State for a fiscal year

under this paragraph shall be based on the formula used

for determining the amount of Federal payments to the

State under section 403(n) (as such section was in effect

before October 1, 1995).

‘‘(C) MATCHING REQUIREMENT.—The Secretary shall

pay to each eligible State in a fiscal year an amount,

under a grant under subparagraph (A), equal to the Federal

medical assistance percentage for such State for fiscal year

1994 (as defined in section 1905(b)) of so much of the

expenditures by the State for child care in such year as

exceed the State set-aside for such State under subparagraph (A) for such year and the amount of State expenditures in fiscal year 1994 that equal the non-Federal share

for the programs described in subparagraphs (A), (B) and

(C) of paragraph (1).

‘‘(3) APPROPRIATION.—There are authorized to be appropriated, and there are appropriated, to carry out this section— ‘‘(A) $1,300,000,000 for fiscal year 1997;

‘‘(B) $1,400,000,000 for fiscal year 1998;

‘‘(C) $1,500,000,000 for fiscal year 1999;

‘‘(D) $1,700,000,000 for fiscal year 2000;

‘‘(E) $1,900,000,000 for fiscal year 2001; and

‘‘(F) $2,050,000,000 for fiscal year 2002. ‘‘(4) REDISTRIBUTION.—With respect to any fiscal year, if

the Secretary determines that amounts under any grant

awarded to a State under this subsection for such fiscal year

will not be used by such State for carrying out the purpose

for which the grant is made, the Secretary shall make such

amounts available for carrying out such purpose to 1 or more

other States which apply for such funds to the extent the

Secretary determines that such other States will be able to

use such additional amounts for carrying out such purpose.

Such available amounts shall be redistributed to a State pursuant to section 402(i) (as such section was in effect before October

1, 1995) by substituting ‘the number of children residing in

all States applying for such funds’ for ‘the number of children

residing in the United States in the second preceding fiscal

year’. Any amount made available to a State from an appropriation for a fiscal year in accordance with the preceding sentence

shall, for purposes of this part, be regarded as part of such
H. R. 4—205

State’s payment (as determined under this subsection) for such

year.‘‘(5) INDIAN TRIBES.—The Secretary shall reserve not more than 1 percent of the aggregate amount appropriated to carry

out this section in each fiscal year for payments to Indian

tribes and tribal organizations.

‘‘(b) USE OF FUNDS.— ‘‘(1) IN GENERAL.—Amounts received by a State under this section shall only be used to provide child care assistance. ‘‘(2) USE FOR CERTAIN POPULATIONS.—A State shall ensure

that not less than 70 percent of the total amount of funds

received by the State in a fiscal year under this section are

used to provide child care assistance to families who are receiving assistance under a State program under this part, families

who are attempting through work activities to transition off

of such assistance program, and families who are at risk of

becoming dependent on such assistance program.

‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK

GRANT ACT of 1990.—Notwithstanding any other provision of law, amounts provided to a State under this section shall be transferred

to the lead agency under the Child Care and Development Block

Grant Act of 1990, integrated by the State into the programs

established by the State under such Act, and be subject to requirements and limitations of such Act.

‘‘(d) DEFINITION.—As used in this section, the term ‘State’

means each of the 50 States or the District of Columbia.’’.

SEC. 804. LEAD AGENCY.

Section 658D(b) (42 U.S.C. 9858b(b)) is amended—

(1) in paragraph (1)— (A) in subparagraph (A), by striking ‘‘State’’ the first place that such appears and inserting ‘‘governmental or

nongovernmental’’; and (B) in subparagraph (C), by inserting ‘‘with sufficient time and Statewide distribution of the notice of such hearing,’’ after ‘‘hearing in the State’’; and

(2) in paragraph (2), by striking the second sentence.

SEC. 805. APPLICATION AND PLAN.

Section 658E (42 U.S.C. 9858c) is amended—

(1) in subsection (b)—

(A) by striking ‘‘implemented—’’ and all that follows through ‘‘(2)’’ and inserting ‘‘implemented’’; and (B) by striking ‘‘for subsequent State plans’’; (2) in subsection (c)—

(A) in paragraph (2)— (i) in subparagraph (A)— (I) in clause (i) by striking ‘‘, other than through assistance provided under paragraph

(3)(C),’’; and

(II) by striking ‘‘except’’ and all that follows

through ‘‘1992’’, and inserting ‘‘and provide a

detailed description of the procedures the State

will implement to carry out the requirements of

this subparagraph’’;

(ii) in subparagraph (B)—

(I) by striking ‘‘Provide assurances’’ and inserting ‘‘Certify’’; and
H. R. 4—206

(II) by inserting before the period at the end

‘‘and provide a detailed description of such procedures’’;

(iii) in subparagraph (C)—

(I) by striking ‘‘Provide assurances’’ and inserting ‘‘Certify’’; and

(II) by inserting before the period at the end

‘‘and provide a detailed description of how such

record is maintained and is made available’’;

(iv) by amending subparagraph (D) to read as

follows:

‘‘(D) CONSUMER EDUCATION INFORMATION.—Certify that

the State will collect and disseminate to parents of eligible

children and the general public, consumer education

information that will promote informed child care choices.’’;

(v) in subparagraph (E), to read as follows:

‘‘(E) COMPLIANCE WITH STATE LICENSING REQUIREMENTS.—

‘‘(i) IN GENERAL.—Certify that the State has in

effect licensing requirements applicable to child care

services provided within the State, and provide a

detailed description of such requirements and of how

such requirements are effectively enforced. Nothing

in the preceding sentence shall be construed to require

that licensing requirements be applied to specific types

of providers of child care services.

‘‘(ii) INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—

In lieu of any licensing and regulatory requirements

applicable under State and local law, the Secretary,

in consultation with Indian tribes and tribal organizations, shall develop minimum child care standards

(that appropriately reflect tribal needs and available

resources) that shall be applicable to Indian tribes

and tribal organization receiving assistance under this

subchapter.’’;

(vi) by striking subparagraph (F);

(vii) in subparagraph (G)— (I) by redesignating such subparagraph as subparagraph (F); (II) by striking ‘‘Provide assurances’’ and

inserting ‘‘Certify’’; and (III) by striking ‘‘as described in subparagraph (F)’’; and

(viii) by striking subparagraphs (H), (I), and (J)

and inserting the following:

‘‘(G) MEETING THE NEEDS OF CERTAIN POPULATIONS.—

Demonstrate the manner in which the State will meet

the specific child care needs of families who are receiving

assistance under a State program under part A of title

IV of the Social Security Act, families who are attempting

through work activities to transition off of such assistance

program, and families who are at risk of becoming dependent on such assistance program.’’;

(B) in paragraph (3)—

(i) in subparagraph (A), by striking ‘‘(B) and (C)’’

and inserting ‘‘(B) through (D)’’;

(ii) in subparagraph (B)—
H. R. 4—207

(I) by striking ‘‘.—Subject to the reservation contained in subparagraph (C), the’’ and inserting

‘‘AND RELATED ACTIVITIES.—The’’;

(II) in clause (i) by striking ‘‘; and’’ at the end and inserting a period; (III) by striking ‘‘for—’’ and all that follows through ‘‘section 658E(c)(2)(A)’’ and inserting ‘‘for

child care services on sliding fee scale basis, activities that improve the quality or availability of

such services, and any other activity that the State

deems appropriate to realize any of the goals specified in paragraphs (2) through (5) of section

658A(b)’’; and

(IV) by striking clause (ii); (iii) by amending subparagraph (C) to read as follows:

‘‘(C) LIMITATION ON ADMINISTRATIVE COSTS.—Not more

than 3 percent of the aggregate amount of funds available

to the State to carry out this subchapter by a State in

each fiscal year may be expended for administrative costs

incurred by such State to carry out all of its functions

and duties under this subchapter. As used in the preceding

sentence, the term ‘administrative costs’ shall not include

the costs of providing direct services.’’; and (iv) by adding at the end thereof the following: ‘‘(D) ASSISTANCE FOR CERTAIN FAMILIES.—A State shall

ensure that a substantial portion of the amounts available

(after the State has complied with the requirement of section 418(b)(2) of the Social Security Act with respect to

each of the fiscal years 1997 through 2002) to the State

to carry out activities this subchapter in each fiscal year

is used to provide assistance to low-income working families

other than families described in paragraph (2)(F).’’; and (C) in paragraph (4)(A)— (i) by striking ‘‘provide assurances’’ and inserting

‘‘certify’’; (ii) in the first sentence by inserting ‘‘and shall

provide a summary of the facts relied on by the State

to determine that such rates are sufficient to ensure

such access’’ before the period; and

(iii) by striking the last sentence.

SEC. 806. LIMITATION ON STATE ALLOTMENTS.

Section 658F(b) (42 U.S.C. 9858d(b)) is amended—

(1) in paragraph (1), by striking ‘‘No’’ and inserting ‘‘Except

as provided for in section 658O(c)(6), no’’; and

(2) in paragraph (2), by striking ‘‘referred to in section

658E(c)(2)(F)’’.

SEC. 807. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

Section 658G (42 U.S.C. 9858e) is amended to read as follows:

‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

‘‘A State that receives funds to carry out this subchapter for

a fiscal year, shall use not less than 3 percent of the amount

of such funds for activities that are designed to provide comprehensive consumer education to parents and the public, activities that

increase parental choice, and activities designed to improve the
H. R. 4—208

quality and availability of child care (such as resource and referral

services).’’.

SEC. 808. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND

BEFORE- AND AFTER-SCHOOL CARE REQUIREMENT.

Section 658H (42 U.S.C. 9858f) is repealed.

SEC. 809. ADMINISTRATION AND ENFORCEMENT.

Section 658I(b) (42 U.S.C. 9858g(b)) is amended—

(1) in paragraph (1), by striking ‘‘, and shall have’’ and

all that follows through ‘‘(2)’’; and

(2) in the matter following clause (ii) of paragraph (2)(A),

by striking ‘‘finding and that’’ and all that follows through

the period and inserting ‘‘finding and shall require that the

State reimburse the Secretary for any funds that were improperly expended for purposes prohibited or not authorized by

this subchapter, that the Secretary deduct from the administrative portion of the State allotment for the following fiscal year

an amount that is less than or equal to any improperly

expended funds, or a combination of such options.’’.

SEC. 810. PAYMENTS.

Section 658J(c) (42 U.S.C. 9858h(c)) is amended by striking

‘‘expended’’ and inserting ‘‘obligated’’.

SEC. 811. ANNUAL REPORT AND AUDITS.

Section 658K (42 U.S.C. 9858i) is amended—

(1) in the section heading by striking ‘‘ANNUAL REPORT’’

and inserting ‘‘REPORTS’’;

(2) in subsection (a), to read as follows:

‘‘(a) REPORTS.— ‘‘(1) COLLECTION OF INFORMATION BY STATES.— ‘‘(A) IN GENERAL.—A State that receives funds to carry

out this subchapter shall collect the information described

in subparagraph (B) on a monthly basis. ‘‘(B) REQUIRED INFORMATION.—The information

required under this subparagraph shall include, with

respect to a family unit receiving assistance under this

subchapter information concerning— ‘‘(i) family income;

‘‘(ii) county of residence;

‘‘(iii) the gender, race, and age of children receiving

such assistance;

‘‘(iv) whether the family includes only 1 parent;

‘‘(v) the sources of family income, including the amount obtained from (and separately identified)—

‘‘(I) employment, including self-employment;

‘‘(II) cash or other assistance under part A

of title IV of the Social Security Act;

‘‘(III) housing assistance;

‘‘(IV) assistance under the Food Stamp Act

of 1977; and

‘‘(V) other assistance programs;

‘‘(vi) the number of months the family has received

benefits;

‘‘(vii) the type of child care in which the child

was enrolled (such as family child care, home care,

or center-based child care);
H. R. 4—209

‘‘(viii) whether the child care provider involved

was a relative;

‘‘(ix) the cost of child care for such families; and

‘‘(x) the average hours per week of such care; during the period for which such information is required

to be submitted.

‘‘(C) SUBMISSION TO SECRETARY.—A State described in

subparagraph (A) shall, on a quarterly basis, submit the

information required to be collected under subparagraph

(B) to the Secretary. ‘‘(D) SAMPLING.—The Secretary may disapprove the information collected by a State under this paragraph if

the State uses sampling methods to collect such information.

‘‘(2) BIANNUAL REPORTS.—Not later than December 31,

1997, and every 6 months thereafter, a State described in

paragraph (1)(A) shall prepare and submit to the Secretary

a report that includes aggregate data concerning— ‘‘(A) the number of child care providers that received

funding under this subchapter as separately identified

based on the types of providers listed in section 658P(5); ‘‘(B) the monthly cost of child care services, and the portion of such cost that is paid for with assistance provided

under this subchapter, listed by the type of child care

services provided; ‘‘(C) the number of payments made by the State through vouchers, contracts, cash, and disregards under

public benefit programs, listed by the type of child care

services provided; ‘‘(D) the manner in which consumer education information was provided to parents and the number of parents

to whom such information was provided; and ‘‘(E) the total number (without duplication) of children

and families served under this subchapter;

during the period for which such report is required to be submitted.’’; and

(2) in subsection (b)—

(A) in paragraph (1) by striking ‘‘a application’’ and inserting ‘‘an application’’; (B) in paragraph (2) by striking ‘‘any agency admin- istering activities that receive’’ and inserting ‘‘the State

that receives’’; and

(C) in paragraph (4) by striking ‘‘entitles’’ and inserting ‘‘entitled’’.

SEC. 812. REPORT BY THE SECRETARY.

Section 658L (42 U.S.C. 9858j) is amended— (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;

(2) by striking ‘‘annually’’ and inserting ‘‘biennially’’; and

(3) by striking ‘‘Education and Labor’’ and inserting ‘‘Economic and Educational Opportunities’’.

SEC. 813. ALLOTMENTS.

Section 658O (42 U.S.C. 9858m) is amended—

(1) in subsection (a)—

(A) in paragraph (1)

(i) by striking ‘‘POSSESSIONS’’ and inserting

‘‘POSSESSIONS’’;
H. R. 4—210

(ii) by inserting ‘‘and’’ after ‘‘States,’’; and

(iii) by striking ‘‘, and the Trust Territory of the

Pacific Islands’’; and

(B) in paragraph (2), by striking ‘‘3 percent’’ and inserting ‘‘1 percent’’;

(2) in subsection (c)—

(A) in paragraph (5) by striking ‘‘our’’ and inserting

‘‘out’’; and

(B) by adding at the end thereof the following new

paragraph:

‘‘(6) CONSTRUCTION OR RENOVATION OF FACILITIES.—

‘‘(A) REQUEST FOR USE OF FUNDS.—An Indian tribe

or tribal organization may submit to the Secretary a

request to use amounts provided under this subsection

for construction or renovation purposes.

‘‘(B) DETERMINATION.—With respect to a request

submitted under subparagraph (A), and except as provided

in subparagraph (C), upon a determination by the Secretary

that adequate facilities are not otherwise available to an

Indian tribe or tribal organization to enable such tribe

or organization to carry out child care programs in accordance with this subchapter, and that the lack of such facilities will inhibit the operation of such programs in the

future, the Secretary may permit the tribe or organization

to use assistance provided under this subsection to make

payments for the construction or renovation of facilities

that will be used to carry out such programs.

‘‘(C) LIMITATION.—The Secretary may not permit an

Indian tribe or tribal organization to use amounts provided

under this subsection for construction or renovation if such

use will result in a decrease in the level of child care

services provided by the tribe or organization as compared

to the level of such services provided by the tribe or

organization in the fiscal year preceding the year for which

the determination under subparagraph (A) is being made. ‘‘(D) UNIFORM PROCEDURES.—The Secretary shall

develop and implement uniform procedures for the solicitation and consideration of requests under this paragraph.’’;

and

(3) in subsection (e), by adding at the end thereof the

following new paragraph: ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZATIONS.—Any portion

of a grant or contract made to an Indian tribe or tribal organization under subsection (c) that the Secretary determines is not

being used in a manner consistent with the provision of this

subchapter in the period for which the grant or contract is

made available, shall be allotted by the Secretary to other

tribes or organizations that have submitted applications under

subsection (c) in accordance with their respective needs.’’.

SEC. 814. DEFINITIONS.

Section 658P (42 U.S.C. 9858n) is amended—

(1) in paragraph (2), in the first sentence by inserting

‘‘or as a deposit for child care services if such a deposit is

required of other children being cared for by the provider’’

after ‘‘child care services’’; and

(2) by striking paragraph (3);
H. R. 4—211

(3) in paragraph (4)(B), by striking ‘‘75 percent’’ and inserting ‘‘85 percent’’;

(4) in paragraph (5)(B)—

(A) by inserting ‘‘great grandchild, sibling (if such provider lives in a separate residence),’’ after ‘‘grandchild,’’;

(B) by striking ‘‘is registered and’’; and

(C) by striking ‘‘State’’ and inserting ‘‘applicable’’.

(5) by striking paragraph (10);

(6) in paragraph (13)—

(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and

(B) by striking ‘‘, and the Trust Territory of the Pacific

Islands’’;

(7) in paragraph (14)—

(A) by striking ‘‘The term’’ and inserting the following:

‘‘(A) IN GENERAL.—The term’’; and

(B) by adding at the end thereof the following new

subparagraph:

‘‘(B) OTHER ORGANIZATIONS.—Such term includes a

Native Hawaiian Organization, as defined in section

4009(4) of the Augustus F. Hawkins-Robert T. Stafford

Elementary and Secondary School Improvement Amendments of 1988 (20 U.S.C. 4909(4)) and a private nonprofit

organization established for the purpose of serving youth

who are Indians or Native Hawaiians.’’.

SEC. 815. REPEALS.

(a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP ASSISTANCE

ACT OF 1985.—Title VI of the Human Services Reauthorization

Act of 1986 (42 U.S.C. 10901–10905) is repealed.

(b) STATE DEPENDENT CARE DEVELOPMENT GRANTS ACT.—Subchapter E of chapter 8 of subtitle A of title VI of the Omnibus

Budget Reconciliation Act of 1981 (42 U.S.C. 9871–9877) is repealed.

(c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title X of the

Elementary and Secondary Education Act of 1965, as amended

by Public Law 103–382 (108 Stat. 3809 et seq.), is amended—

(1) in section 10413(a) by striking paragraph (4),

(2) in section 10963(b)(2) by striking subparagraph (G),

and

(3) in section 10974(a)(6) by striking subparagraph (G).

(d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.—

Section 9205 of the Native Hawaiian Education Act (Public Law

103–382; 108 Stat. 3794) is repealed.

SEC. 816. EFFECTIVE DATE.

(a) IN GENERAL.—Except as provided in subsection (b), this

title and the amendments made by this title shall take effect

on October 1, 1996.

(b) EXCEPTION.—The amendment made by section 803(a) shall

take effect on the date of enactment of this Act.
H. R. 4—212

TITLE IX—CHILD NUTRITION

PROGRAMS

Subtitle A—National School Lunch Act

SEC. 901. STATE DISBURSEMENT TO SCHOOLS.

(a) IN GENERAL.—Section 8 of the National School Lunch Act

(42 U.S.C. 1757) is amended—

(1) in the third sentence, by striking ‘‘Nothing’’ and all

that follows through ‘‘educational agency to’’ and inserting ‘‘The

State educational agency may’’;

(2) by striking the fourth, fifth, and eighth sentences;

(3) by redesignating the first through sixth sentences, as

amended by paragraph (1), as subsections (a) through (f),

respectively;

(4) in subsection (b), as redesignated by paragraph (3),

by striking ‘‘the preceding sentence’’ and inserting ‘‘subsection

(a)’’; and

(5) in subsection (d), as redesignated by paragraph (3),

by striking ‘‘Such food costs’’ and inserting ‘‘Use of funds paid

to States’’.

(b) DEFINITION OF CHILD.—Section 12(d) of the Act (42 U.S.C.

1760(d)) is amended by adding at the end the following:

‘‘(9) ‘child’ includes an individual, regardless of age, who—

‘‘(A) is determined by a State educational agency, in

accordance with regulations prescribed by the Secretary,

to have 1 or more mental or physical disabilities; and

‘‘(B) is attending any institution, as defined in section

17(a), or any nonresidential public or nonprofit private

school of high school grade or under, for the purpose of

participating in a school program established for individuals with mental or physical disabilities.

No institution that is not otherwise eligible to participate in

the program under section 17 shall be considered eligible

because of this paragraph.’’.

SEC. 902. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

(a) NUTRITIONAL STANDARDS.—Section 9(a) of the National

School Lunch Act (42 U.S.C. 1758(a)) is amended—

(1) in paragraph (2)—

(A) by striking ‘‘(2)(A) Lunches’’ and inserting ‘‘(2)

Lunches’’;

(B) by striking subparagraph (B); and

(C) by redesignating clauses (i) and (ii) as subpara- graphs (A) and (B), respectively;

(2) by striking paragraph (3); and

(3) by redesignating paragraph (4) as paragraph (3). (b) ELIGIBILITY GUIDELINES.—Section 9(b) of the Act is

amended—

(1) in paragraph (2)—

(A) by striking subparagraph (A); and

(B) by redesignating subparagraphs (B) and (C) as

subparagraphs (A) and (B), respectively;

(2) in paragraph (5), by striking the third sentence; and
H. R. 4—213

(3) in paragraph (6), by striking ‘‘paragraph (2)(C)’’ and

inserting ‘‘paragraph (2)(B)’’.

(c) UTILIZATION OF AGRICULTURAL COMMODITIES.—Section 9(c)

of the Act is amended by striking the second, fourth, and sixth

sentences.

(d) CONFORMING AMENDMENT.—The last sentence of section

9(d)(1) of the Act is amended by striking ‘‘subsection (b)(2)(C)’’

and inserting ‘‘subsection (b)(2)(B)’’.

(e) NUTRITIONAL INFORMATION.—Section 9(f) of the Act is

amended—

(1) by striking paragraph (1);

(2) by striking ‘‘(2)’’;

(3) by redesignating subparagraphs (A) through (D) as

paragraphs (1) through (4), respectively;

(4) by striking paragraph (1), as redesignated by paragraph

(3), and inserting the following:

‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as provided in

paragraph (2), not later than the first day of the 1996–1997

school year, schools that are participating in the school lunch

or school breakfast program shall serve lunches and breakfasts

under the program that—

‘‘(A) are consistent with the goals of the most recent

Dietary Guidelines for Americans published under section

301 of the National Nutrition Monitoring and Related

Research Act of 1990 (7 U.S.C. 5341); and

‘‘(B) provide, on the average over each week, at least—

‘‘(i) with respect to school lunches, 1⁄3 of the daily

recommended dietary allowance established by the

Food and Nutrition Board of the National Research

Council of the National Academy of Sciences; and ‘‘(ii) with respect to school breakfasts, 1⁄4 of the

daily recommended dietary allowance established by

the Food and Nutrition Board of the National Research

Council of the National Academy of Sciences.’’; (5) in paragraph (3), as redesignated by paragraph (3)— (A) by redesignating clauses (i) and (ii) as subpara- graphs (A) and (B), respectively; and (B) in subparagraph (A), as so redesignated, by redesignating subclauses (I) and (II) as clauses (i) and

(ii), respectively; and

(6) in paragraph (4), as redesignated by paragraph (3),

by striking the first sentence and inserting the following:

‘‘Schools may use any reasonable approach to meet the requirements of this paragraph, including any approach described

in paragraph (3).’’.

(f) USE OF RESOURCES.—Section 9 of the Act is amended by

striking subsection (h).

SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.

Section 9(b)(2) of the National School Lunch Act (42 U.S.C.

1758(b)(2)), as amended by section 902(b)(1), is further amended

by adding at the end the following:

‘‘(C) FREE AND REDUCED PRICE POLICY STATEMENT.—

After the initial submission, a school shall not be required

to submit a free and reduced price policy statement to

a State educational agency under this Act unless there

is a substantive change in the free and reduced price policy
H. R. 4—214

of the school. A routine change in the policy of a school,

such as an annual adjustment of the income eligibility

guidelines for free and reduced price meals, shall not be

sufficient cause for requiring the school to submit a policy

statement.’’.

SEC. 904. SPECIAL ASSISTANCE.

(a) FINANCING BASED ON NEED.—Section 11(b) of the National

School Lunch Act (42 U.S.C. 1759a(b)) is amended—

(1) in the second sentence, by striking ‘‘, within’’ and all that follows through ‘‘all States,’’; and (2) by striking the third sentence. (b) APPLICABILITY OF OTHER PROVISIONS.—Section 11 of the

Act is amended—

(1) by striking subsection (d);

(2) in subsection (e)(2)—

(A) by striking ‘‘The’’ and inserting ‘‘On request of the Secretary, the’’; and (B) by striking ‘‘each month’’; and (3) by redesignating subsections (e) and (f), as so amended, as subsections (d) and (e), respectively.

SEC. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

(a) ACCOUNTS AND RECORDS.—Section 12(a) of the National

School Lunch Act (42 U.S.C. 1760(a)) is amended by striking ‘‘at

all times be available’’ and inserting ‘‘be available at any reasonable

time’’.

(b) RESTRICTION ON REQUIREMENTS.—Section 12(c) of the Act

is amended by striking ‘‘neither the Secretary nor the State shall’’

and inserting ‘‘the Secretary shall not’’. (c) DEFINITIONS.—Section 12(d) of the Act, as amended by sec- tion 901(b), is further amended—

(1) in paragraph (1), by striking ‘‘the Trust Territory of the Pacific Islands’’ and inserting ‘‘the Commonwealth of the

Northern Mariana Islands’’;

(2) by striking paragraphs (3) and (4); and

(3) by redesignating paragraphs (1), (2), and (5) through (9) as paragraphs (6), (7), (3), (4), (2), (5), and (1), respectively,

and rearranging the paragraphs so as to appear in numerical

order.

(d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT RATES.— Section 12(f) of the Act is amended by striking ‘‘the Trust Territory

of the Pacific Islands,’’.

(e) EXPEDITED RULEMAKING.—Section 12(k) of the Act is

amended—

(1) by striking paragraphs (1), (2), and (5); and

(2) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively.

(f) WAIVER.—Section 12(l) of the Act is amended—

(1) in paragraph (2)— (A) by striking ‘‘(A)’’;

(B) in clause (iii), by adding ‘‘and’’ at the end;

(C) in clause (iv), by striking the semicolon at the

end and inserting a period;

(D) by striking clauses (v) through (vii);

(E) by striking subparagraph (B); and

(F) by redesignating clauses (i) through (iv), as so

amended, as subparagraphs (A) through (D), respectively;
H. R. 4—215

(2) in paragraph (3)—

(A) by striking ‘‘(A)’’; and

(B) by striking subparagraphs (B) through (D);

(3) in paragraph (4)—

(A) in the matter preceding subparagraph (A), by striking ‘‘of any requirement relating’’ and inserting ‘‘that

increases Federal costs or that relates’’;

(B) by striking subparagraphs (B), (D), (F), (H), (J),

(K), and (L);

(C) by redesignating subparagraphs (C), (E), (G), (I),

(M), and (N) as subparagraphs (B) through (G), respectively; and

(D) in subparagraph (F), as redesignated by subparagraph (C), by striking ‘‘and’’ at the end and inserting ‘‘or’’;

and

(4) in paragraph (6)—

(A) by striking ‘‘(A)(i)’’ and all that follows through

‘‘(B)’’; and

(B) by redesignating clauses (i) through (iv) as subparagraphs (A) through (D), respectively.

(g) FOOD AND NUTRITION PROJECTS.—Section 12 of the Act

is amended by striking subsection (m).

SEC. 906. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

(a) ESTABLISHMENT OF PROGRAM.—Section 13(a) of the National

School Lunch Act (42 U.S.C. 1761(a)) is amended—

(1) in paragraph (1)—

(A) in the first sentence, by striking ‘‘initiate, maintain,

and expand’’ and insert ‘‘initiate and maintain’’; and

(B) in subparagraph (E) of the second sentence, by

striking ‘‘the Trust Territory of the Pacific Islands,’’; and

(2) in paragraph (7)(A), by striking ‘‘Except as provided

in subparagraph (C), private’’ and inserting ‘‘Private’’.

(b) SERVICE INSTITUTIONS.—Section 13(b) of the Act is amended

by striking ‘‘(b)(1)’’ and all that follows through the end of paragraph

(1) and inserting the following:

‘‘(b) SERVICE INSTITUTIONS.—

‘‘(1) PAYMENTS.—

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

this paragraph, payments to service institutions shall equal

the full cost of food service operations (which cost shall

include the costs of obtaining, preparing, and serving food,

but shall not include administrative costs).

‘‘(B) MAXIMUM AMOUNTS.—Subject to subparagraph (C),

payments to any institution under subparagraph (A) shall

not exceed—

‘‘(i) $1.82 for each lunch and supper served;

‘‘(ii) $1.13 for each breakfast served; and

‘‘(iii) 46 cents for each meal supplement served.

‘‘(C) ADJUSTMENTS.—Amounts specified in subparagraph (B) shall be adjusted each January 1 to the nearest

lower cent increment in accordance with the changes for

the 12-month period ending the preceding November 30

in the series for food away from home of the Consumer

Price Index for All Urban Consumers published by the

Bureau of Labor Statistics of the Department of Labor.
H. R. 4—216

Each adjustment shall be based on the unrounded adjustment for the prior 12-month period.’’.

(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—Section 13(b)(2)

of the Act is amended—

(1) in the first sentence, by striking ‘‘four meals’’ and inserting ‘‘3 meals, or 2 meals and 1 supplement,’’; and

(2) by striking the second sentence.

(d) REIMBURSEMENTS.—Section 13(c)(2) of the Act is amended—

(1) by striking subparagraph (A);

(2) in subparagraph (B)—

(A) in the first sentence—

(i) by striking ‘‘, and such higher education institutions,’’; and

(ii) by striking ‘‘without application’’ and inserting

‘‘upon showing residence in areas in which poor economic conditions exist or on the basis of income eligibility statements for children enrolled in the program’’;

and

(B) by adding at the end the following: ‘‘The higher

education institutions referred to in the preceding sentence

shall be eligible to participate in the program under this

paragraph without application.’’;

(3) in subparagraph (C)(ii), by striking ‘‘severe need’’; and

(4) by redesignating subparagraphs (B) through (E), as

so amended, as subparagraphs (A) through (D), respectively.

(e) ADVANCE PROGRAM PAYMENTS.—Section 13(e)(1) of the Act

is amended—

(1) by striking ‘‘institution: Provided, That (A) the’’ and

inserting ‘‘institution. The’’; (2) by inserting ‘‘(excluding a school)’’ after ‘‘any service

institution’’; and

(3) by striking ‘‘responsibilities, and (B) no’’ and inserting

‘‘responsibilities. No’’.

(f) FOOD REQUIREMENTS.—Section 13(f) of the Act is amended—

(1) by redesignating the first through seventh sentences as paragraphs (1) through (7), respectively; (2) by striking paragraph (3), as redesignated by paragraph (1);

(3) in paragraph (4), as redesignated by paragraph (1), by striking ‘‘the first sentence’’ and inserting ‘‘paragraph (1)’’; (4) in paragraph (6), as redesignated by paragraph (1),

by striking ‘‘that bacteria levels’’ and all that follows through

the period at the end and inserting ‘‘conformance with standards set by local health authorities.’’; and (5) by redesignating paragraphs (4) through (7), as redesignated by paragraph (1), as paragraphs (3) through (6),

respectively.

(g) PERMITTING OFFER VERSUS SERVE.—Section 13(f) of the

Act, as amended by subsection (f), is further amended by adding

at the end the following:

‘‘(7) OFFER VERSUS SERVE.—A school food authority participating as a service institution may permit a child attending

a site on school premises operated directly by the authority

to refuse not more than 1 item of a meal that the child does

not intend to consume. A refusal of an offered food item shall

not affect the amount of payments made under this section

to a school for the meal.’’.
H. R. 4—217

(h) HEALTH DEPARTMENT INSPECTIONS.—Section 13(k) of the

Act is amended by striking paragraph (3).

(i) FOOD SERVICE MANAGEMENT COMPANIES.—Section 13(l) of

the Act is amended—

(1) by striking paragraph (4);

(2) in paragraph (5), by striking the first sentence; and

(3) by redesignating paragraph (5), as so amended, as paragraph (4).

(j) RECORDS.—The second sentence of section 13(m) of the Act

is amended by striking ‘‘at all times be available’’ and inserting

‘‘be available at any reasonable time’’.

(k) REMOVING MANDATORY NOTICE TO INSTITUTIONS.—Section

13(n)(2) of the Act is amended by striking ‘‘, and its plans and

schedule for informing service institutions of the availability of

the program’’.

(l) PLAN.—Section 13(n) of the Act is amended—

(1) in paragraph (2), by striking ‘‘including the State’s

methods of assessing need’’;

(2) by striking paragraph (3);

(3) in paragraph (4), by striking ‘‘and schedule’’; and

(4) by redesignating paragraphs (4) through (7), as so

amended, as paragraphs (3) through (6), respectively.

(m) MONITORING AND TRAINING.—Section 13(q) of the Act is

amended—

(1) by striking paragraphs (2) and (4);

(2) in paragraph (3), by striking ‘‘paragraphs (1) and (2)

of this subsection’’ and inserting ‘‘paragraph (1)’’; and

(3) by redesignating paragraph (3), as so amended, as para- graph (2).

(n) EXPIRED PROGRAM.—Section 13 of the Act is amended—

(1) by striking subsection (p); and

(2) by redesignating subsections (q) and (r), as so amended, as subsections (p) and (q), respectively.

(o) EFFECTIVE DATE.—The amendments made by subsection (b) shall become effective on January 1, 1996.

SEC. 907. COMMODITY DISTRIBUTION.

(a) CEREAL AND SHORTENING IN COMMODITY DONATIONS.—Section 14(b) of the National School Lunch Act (42 U.S.C. 1762a(b))

is amended—

(1) by striking paragraph (1); and

(2) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.

(b) IMPACT STUDY AND PURCHASING PROCEDURES.—Section

14(d) of the Act is amended by striking the second and third

sentences.

(c) CASH COMPENSATION FOR PILOT PROJECT SCHOOLS.—Section

14(g) of the Act is amended by striking paragraph (3).

(d) STATE ADVISORY COUNCIL.—Section 14 is amended—

(1) by striking subsection (e); and

(2) by redesignating subsections (f) and (g), as so amended,

as subsections (e) and (f), respectively.

SEC. 908. CHILD CARE FOOD PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the National

School Lunch Act (42 U.S.C. 1766) is amended—

(1) in the section heading, by striking ‘‘AND ADULT’’; and
H. R. 4—218

(2) in the first sentence of subsection (a), by striking ‘‘initiate, maintain, and expand’’ and inserting ‘‘initiate and

maintain’’.

(b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph (2) of the

last sentence of section 17(a) of the Act (42 U.S.C. 1766(a)) is

amended—

(1) by striking ‘‘and’’ at the end of subparagraph (B);

(2) by striking the period at the end of subparagraph (C)

and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(D) in the case of a family or group day care home

sponsoring organization that employs more than 1

employee, the organization does not base payments to an

employee of the organization on the number of family or

group day care homes recruited.’’.

(c) TECHNICAL ASSISTANCE.—The last sentence of section

17(d)(1) of the Act is amended by striking ‘‘, and shall provide

technical assistance’’ and all that follows through ‘‘its application’’.

(d) REIMBURSEMENT OF CHILD CARE INSTITUTIONS.—Section

17(f)(2)(B) of the Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking

‘‘two meals and two supplements or three meals and one supplement’’ and inserting ‘‘two meals and one supplement’’.

(e) IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS.—

(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS.—Section 17(f)(3) of the Act is amended by striking ‘‘(3)(A) Institutions’’ and all that follows through the end of subparagraph

(A) and inserting the following:

‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME

SPONSORING ORGANIZATIONS.—

‘‘(A) REIMBURSEMENT FACTOR.—

‘‘(i) IN GENERAL.—An institution that participates

in the program under this section as a family or group

day care home sponsoring organization shall be provided, for payment to a home sponsored by the

organization, reimbursement factors in accordance with

this subparagraph for the cost of obtaining and preparing food and prescribed labor costs involved in providing meals under this section.

‘‘(ii) TIER I FAMILY OR GROUP DAY CARE HOMES.—

‘‘(I) DEFINITION.—In this paragraph, the term

‘tier I family or group day care home’ means—

‘‘(aa) a family or group day care home

that is located in a geographic area, as defined

by the Secretary based on census data, in

which at least 50 percent of the children residing in the area are members of households

whose incomes meet the income eligibility

guidelines for free or reduced price meals

under section 9;

‘‘(bb) a family or group day care home

that is located in an area served by a school

enrolling elementary students in which at

least 50 percent of the total number of children

enrolled are certified eligible to receive free

or reduced price school meals under this Act
H. R. 4—219

or the Child Nutrition Act of 1966 (42 U.S.C.

1771 et seq.); or

‘‘(cc) a family or group day care home

that is operated by a provider whose household

meets the income eligibility guidelines for free

or reduced price meals under section 9 and

whose income is verified by the sponsoring

or organization of the home under regulations

established by the Secretary.

‘‘(II) REIMBURSEMENT.—Except as provided in

subclause (III), a tier I family or group day care

home shall be provided reimbursement factors

under this clause without a requirement for documentation of the costs described in clause (i),

except that reimbursement shall not be provided

under this subclause for meals or supplements

served to the children of a person acting as a

family or group day care home provider unless

the children meet the income eligibility guidelines

for free or reduced price meals under section 9.

‘‘(III) FACTORS.—Except as provided in

subclause (IV), the reimbursement factors applied

to a home referred to in subclause (II) shall be

the factors in effect on the date of enactment of

this subclause.

‘‘(IV) ADJUSTMENTS.—The reimbursement factors under this subparagraph shall be adjusted

on August 1, 1996, July 1, 1997, and each July

1 thereafter, to reflect changes in the Consumer

Price Index for food at home for the most recent

12-month period for which the data are available.

The reimbursement factors under this subparagraph shall be rounded to the nearest lower cent

increment and based on the unrounded adjustment

in effect on June 30 of the preceding school year.

‘‘(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.— ‘‘(I) IN GENERAL.— ‘‘(aa) FACTORS.—Except as provided in

subclause (II), with respect to meals or supplements served under this clause by a family

or group day care home that does not meet

the criteria set forth in clause (ii)(I), the

reimbursement factors shall be 90 cents for

lunches and suppers, 25 cents for breakfasts,

and 10 cents for supplements.

‘‘(bb) ADJUSTMENTS.—The factors shall be

adjusted on July 1, 1997, and each July 1

thereafter, to reflect changes in the Consumer

Price Index for food at home for the most

recent 12-month period for which the data

are available. The reimbursement factors

under this item shall be rounded down to the

nearest lower cent increment and based on

the unrounded adjustment for the preceding

12-month period.

‘‘(cc) REIMBURSEMENT.—A family or group

day care home shall be provided reimburse-
H. R. 4—220

ment factors under this subclause without a

requirement for documentation of the costs

described in clause (i), except that reimbursement shall not be provided under this

subclause for meals or supplements served to

the children of a person acting as a family

or group day care home provider unless the

children meet the income eligibility guidelines

for free or reduced price meals under section

9.

‘‘(II) OTHER FACTORS.—A family or group day

care home that does not meet the criteria set forth

in clause (ii)(I) may elect to be provided reimbursement factors determined in accordance with the

following requirements:

‘‘(aa) CHILDREN ELIGIBLE FOR FREE OR

REDUCED PRICE MEALS.—In the case of meals

or supplements served under this subsection

to children who are members of households

whose incomes meet the income eligibility

guidelines for free or reduced price meals

under section 9, the family or group day care

home shall be provided reimbursement factors

set by the Secretary in accordance with clause

(ii)(III).

‘‘(bb) INELIGIBLE CHILDREN.—In the case

of meals or supplements served under this

subsection to children who are members of

households whose incomes do not meet the

income eligibility guidelines, the family or

group day care home shall be provided

reimbursement factors in accordance with

subclause (I).

‘‘(III) INFORMATION AND DETERMINATIONS.— ‘‘(aa) IN GENERAL.—If a family or group

day care home elects to claim the factors

described in subclause (II), the family or group

day care home sponsoring organization serving

the home shall collect the necessary income

information, as determined by the Secretary,

from any parent or other caretaker to make

the determinations specified in subclause (II)

and shall make the determinations in accordance with rules prescribed by the Secretary. ‘‘(bb) CATEGORICAL ELIGIBILITY.—In making a determination under item (aa), a family

or group day care home sponsoring organization may consider a child participating in or

subsidized under, or a child with a parent

participating in or subsidized under, a federally or State supported child care or other

benefit program with an income eligibility

limit that does not exceed the eligibility standard for free or reduced price meals under section 9 to be a child who is a member of a

household whose income meets the income

eligibility guidelines under section 9.
H. R. 4—221

‘‘(cc) FACTORS FOR CHILDREN ONLY.—A

family or group day care home may elect to

receive the reimbursement factors prescribed

under clause (ii)(III) solely for the children

participating in a program referred to in item

(bb) if the home elects not to have income

statements collected from parents or other

caretakers.

‘‘(IV) SIMPLIFIED MEAL COUNTING AND REPORTING PROCEDURES.—The Secretary shall prescribe

simplified meal counting and reporting procedures

for use by a family or group day care home that

elects to claim the factors under subclause (II)

and by a family or group day care home sponsoring

organization that sponsors the home. The procedures the Secretary prescribes may include 1 or

more of the following:

‘‘(aa) Setting an annual percentage for

each home of the number of meals served that

are to be reimbursed in accordance with the

reimbursement factors prescribed under clause

(ii)(III) and an annual percentage of the number of meals served that are to be reimbursed

in accordance with the reimbursement factors

prescribed under subclause (I), based on the

family income of children enrolled in the home

in a specified month or other period.

‘‘(bb) Placing a home into 1 of 2 or more

reimbursement categories annually based on

the percentage of children in the home whose

households have incomes that meet the income

eligibility guidelines under section 9, with each

such reimbursement category carrying a set

of reimbursement factors such as the factors

prescribed under clause (ii)(III) or subclause

(I) or factors established within the range of

factors prescribed under clause (ii)(III) and

subclause (I).

‘‘(cc) Such other simplified procedures as

the Secretary may prescribe.

‘‘(V) MINIMUM VERIFICATION REQUIREMENTS.—

The Secretary may establish any necessary minimum verification requirements.’’.

(2) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY

OR GROUP DAY CARE HOMES.—Section 17(f)(3) of the Act is

amended by adding at the end the following:

‘‘(D) GRANTS TO STATES TO PROVIDE ASSISTANCE TO

FAMILY OR GROUP DAY CARE HOMES.—

‘‘(i) IN GENERAL.—

‘‘(I) RESERVATION.—From amounts made available to carry out this section, the Secretary shall

reserve $5,000,000 of the amount made available

for fiscal year 1996.

‘‘(II) PURPOSE.—The Secretary shall use the

funds made available under subclause (I) to provide grants to States for the purpose of providing—
H. R. 4—222

‘‘(aa) assistance, including grants, to family and day care home sponsoring organizations and other appropriate organizations, in

securing and providing training, materials,

automated data processing assistance, and

other assistance for the staff of the sponsoring

organizations; and

‘‘(bb) training and other assistance to family and group day care homes in the

implementation of the amendment to subparagraph (A) made by section 913(e)(1) of the

Personal Responsibility and Work Opportunity

Act of 1995.

‘‘(ii) ALLOCATION.—The Secretary shall allocate

from the funds reserved under clause (i)(I)—

‘‘(I) $30,000 in base funding to each State;

and

‘‘(II) any remaining amount among the States,

based on the number of family day care homes

participating in the program in a State during

fiscal year 1994 as a percentage of the number

of all family day care homes participating in the

program during fiscal year 1994.

‘‘(iii) RETENTION OF FUNDS.—Of the amount of

funds made available to a State for fiscal year 1996

under clause (i), the State may retain not to exceed

30 percent of the amount to carry out this subparagraph. ‘‘(iv) ADDITIONAL PAYMENTS.—Any payments

received under this subparagraph shall be in addition

to payments that a State receives under subparagraph

(A).’’.

(3) PROVISION OF DATA.—Section 17(f)(3) of the Act, as

amended by paragraph (2), is further amended by adding at

the end the following: ‘‘(E) PROVISION OF DATA TO FAMILY OR GROUP DAY

CARE HOME SPONSORING ORGANIZATIONS.— ‘‘(i) CENSUS DATA.—The Secretary shall provide

to each State agency administering a child care food

program under this section data from the most recent

decennial census survey or other appropriate census

survey for which the data are available showing which

areas in the State meet the requirements of subparagraph (A)(ii)(I)(aa). The State agency shall provide the

data to family or group day care home sponsoring

organizations located in the State.

‘‘(ii) SCHOOL DATA.—

‘‘(I) IN GENERAL.—A State agency administering the school lunch program under this Act or

the school breakfast program under the Child

Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)

shall provide to approved family or group day care

home sponsoring organizations a list of schools

serving elementary school children in the State

in which not less than 1⁄2 of the children enrolled

are certified to receive free or reduced price meals.

The State agency shall collect the data necessary
H. R. 4—223

to create the list annually and provide the list

on a timely basis to any approved family or group

day care home sponsoring organization that

requests the list.

‘‘(II) USE OF DATA FROM PRECEDING SCHOOL

YEAR.—In determining for a fiscal year or other

annual period whether a home qualifies as a tier

I family or group day care home under subparagraph (A)(ii)(I), the State agency administering the

program under this section, and a family or group

day care home sponsoring organization, shall use

the most current available data at the time of

the determination.

‘‘(iii) DURATION OF DETERMINATION.—For purposes

of this section, a determination that a family or group

day care home is located in an area that qualifies

the home as a tier I family or group day care home

(as the term is defined in subparagraph (A)(ii)(I)), shall

be in effect for 3 years (unless the determination is

made on the basis of census data, in which case the

determination shall remain in effect until more recent

census data are available) unless the State agency

determines that the area in which the home is located

no longer qualifies the home as a tier I family or

group day care home.’’.

(4) CONFORMING AMENDMENTS.—Section 17(c) of the Act

is amended by inserting ‘‘except as provided in subsection (f)(3),’’

after ‘‘For purposes of this section,’’ each place it appears in

paragraphs (1), (2), and (3).

(f) REIMBURSEMENT.—Section 17(f) of the Act is amended—

(1) in paragraph (3)—

(A) in subparagraph (B), by striking the third and

fourth sentences; and

(B) in subparagraph (C)—

(i) in clause (i)—

(I) by striking ‘‘(i)’’;

(II) in the first sentence, by striking ‘‘and

expansion funds’’ and all that follows through

‘‘rural areas’’;

(III) by striking the second sentence; and

(IV) by striking ‘‘and expansion funds’’ each

place it appears; and

(ii) by striking clause (ii); and

(2) by striking paragraph (4).

(g) NUTRITIONAL REQUIREMENTS.—Section 17(g)(1) of the Act

is amended—

(1) in subparagraph (A), by striking the second sentence;

and

(2) in subparagraph (B), by striking the second sentence.

(h) ELIMINATION OF STATE PAPERWORK AND OUTREACH BURDEN.—Section 17 of the Act is amended by striking subsection

(k) and inserting the following:

‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participating in the program established under this section shall provide

sufficient training, technical assistance, and monitoring to facilitate

effective operation of the program. The Secretary shall assist the
H. R. 4—224

State in developing plans to fulfill the requirements of this subsection.’’.

(i) RECORDS.—The second sentence of section 17(m) of the Act

is amended by striking ‘‘at all times’’ and inserting ‘‘at any reasonable time’’.

(j) MODIFICATION OF ADULT CARE FOOD PROGRAM.—Section

17(o) of the Act is amended—

(1) in the first sentence of paragraph (1)—

(A) by striking ‘‘adult day care centers’’ and inserting

‘‘day care centers for chronically impaired disabled persons’’; and

(B) by striking ‘‘to persons 60 years of age or older

or’’; and

(2) in paragraph (2)—

(A) in subparagraph (A)—

(i) by striking ‘‘adult day care center’’ and inserting

‘‘day care center for chronically impaired disabled persons’’; and

(ii) in clause (i)—

(I) by striking ‘‘adult’’;

(II) by striking ‘‘adults’’ and inserting ‘‘persons’’; and

(III) by striking ‘‘or persons 60 years of age

or older’’; and

(B) in subparagraph (B), by striking ‘‘adult day care

services’’ and inserting ‘‘day care services for chronically

impaired disabled persons’’.

(k) UNNEEDED PROVISION.—Section 17 of the Act is amended

by striking subsection (q). (l) CONFORMING AMENDMENTS.— (1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is

amended—

(A) in the subsection heading, by striking ‘‘AND ADULT’’;

and

(B) in paragraph (1), by striking ‘‘and adult’’. (2) Section 18(e)(3)(B) of the Act (42 U.S.C. 1769(e)(3)(B))

is amended by striking ‘‘and adult’’. (3) Section 25(b)(1)(C) of the Act (42 U.S.C. 1769f(b)(1)(C))

is amended by striking ‘‘and adult’’. (4) Section 3(1) of the Healthy Meals for Healthy Americans Act of 1994 (Public Law 103–448) is amended by striking ‘‘and

adult’’.

(m) EFFECTIVE DATE.— (1) IN GENERAL.—Except as provided in paragraph (2), the

amendments made by this section shall become effective on

the date of enactment of this Act.

(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS.—The amendments made by paragraphs (1), (3), and

(4) of subsection (e) shall become effective on August 1, 1996.

(3) REGULATIONS.—

(A) INTERIM REGULATIONS.—Not later than February

1, 1996, the Secretary shall issue interim regulations to

implement—

(i) the amendments made by paragraphs (1), (3),

and (4) of subsection (e); and

(ii) section 17(f)(3)(C) of the National School Lunch

Act (42 U.S.C. 1766(f)(3)(C)).
H. R. 4—225

(B) FINAL REGULATIONS.—Not later than August 1,

1996, the Secretary shall issue final regulations to implement the provisions of law referred to in subparagraph

(A).

(n) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM PARTICIPATION AND FAMILY DAY CARE LICENSING.—

(1) IN GENERAL.—The Secretary of Agriculture, in conjunction with the Secretary of Health and Human Services, shall

study the impact of the amendments made by this section

on—

(A) the number of family day care homes participating

in the child care food program established under section

17 of the National School Lunch Act (42 U.S.C. 1766);

(B) the number of day care home sponsoring organizations participating in the program;

(C) the number of day care homes that are licensed,

certified, registered, or approved by each State in accordance with regulations issued by the Secretary;

(D) the rate of growth of the numbers referred to

in subparagraphs (A) through (C);

(E) the nutritional adequacy and quality of meals

served in family day care homes that—

(i) received reimbursement under the program

prior to the amendments made by this section but

do not receive reimbursement after the amendments

made by this section; or

(ii) received full reimbursement under the program

prior to the amendments made by this section but

do not receive full reimbursement after the amendments made by this section; and

(F) the proportion of low-income children participating

in the program prior to the amendments made by this

section and the proportion of low-income children participating in the program after the amendments made by

this section.

(2) REQUIRED DATA.—Each State agency participating in

the child care food program under section 17 of the National

School Lunch Act (42 U.S.C. 1766) shall submit to the Secretary

data on—

(A) the number of family day care homes participating

in the program on July 31, 1996, and July 31, 1997; (B) the number of family day care homes licensed,

certified, registered, or approved for service on July 31,

1996, and July 31, 1997; and (C) such other data as the Secretary may require to

carry out this subsection.

(3) SUBMISSION OF REPORT.—Not later than 2 years after

the effective date of this section, the Secretary shall submit

the study required under this subsection to the Committee

on Economic and Educational Opportunities of the House of

Representatives and the Committee on Agriculture, Nutrition,

and Forestry of the Senate.

SEC. 909. PILOT PROJECTS.

(a) UNIVERSAL FREE PILOT.—Section 18(d) of the National

School Lunch Act (42 U.S.C. 1769(d)) is amended—

(1) by striking paragraph (3); and
H. R. 4—226

(2) by redesignating paragraphs (4) and (5) as paragraphs

(3) and (4), respectively.

(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Section 18(e) of

the Act is amended—

(1) in paragraph (1)—

(A) in subparagraph (A)—

(i) by striking ‘‘(A)’’; and

(ii) by striking ‘‘shall’’ and inserting ‘‘may’’; and

(B) by striking subparagraph (B); and

(2) by striking paragraph (5) and inserting the following:

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—There are

authorized to be appropriated to carry out this subsection such

sums as are necessary for each of fiscal years 1997 and 1998.’’.

(c) ELIMINATING PROJECTS.—Section 18 of the Act is amended—

(1) by striking subsections (a) and (g) through (i); and

(2) by redesignating subsections (b) through (f), as so

amended, as subsections (a) through (e), respectively.

(d) CONFORMING AMENDMENT.—Section 17B(d)(1)(A) of the Act

(42 U.S.C. 1766b(d)(1)(A)) is amended by striking ‘‘18(c)’’ and inserting ‘‘18(b)’’.

SEC. 910. REDUCTION OF PAPERWORK.

Section 19 of the National School Lunch Act (42 U.S.C. 1769a)

is repealed.

SEC. 911. INFORMATION ON INCOME ELIGIBILITY.

Section 23 of the National School Lunch Act (42 U.S.C. 1769d)

is repealed.

SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

Section 24 of the National School Lunch Act (42 U.S.C. 1769e)

is repealed.

SEC. 913. INFORMATION CLEARINGHOUSE.

Section 26 of the National School Lunch Act (42 U.S.C. 1769g)

is repealed.

SEC. 914. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRATION PROGRAM.

(a) IN GENERAL.—The National School Lunch Act is amended

by inserting after section 4 (42 U.S.C. 1753) the following:

‘‘SEC. 5. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRATION PROGRAM.

‘‘(a) DEFINITIONS.—In this section:

‘‘(1) BLOCK GRANT DEMONSTRATION PROGRAM.—The term

‘block grant demonstration program’ means the block grant

program demonstration program established under subsection

(b).

‘‘(2) DEPARTMENT OF DEFENSE DOMESTIC DEPENDENTS’

SCHOOL.—The term ‘Department of Defense domestic dependents’ school’ means an elementary or secondary school established under section 2164 of title 10, United States Code.

‘‘(3) LOW-INCOME STUDENT.—The term ‘low-income student’

means a student who is a member of a family whose income

is less than 130 percent of the poverty line.

‘‘(4) NEEDY STUDENT.—The term ‘needy student’ means a

student who is a member of a family whose income is not
H. R. 4—227

less than 130 percent, and not more than 185 percent, of

the poverty line.

‘‘(5) POVERTY LINE.—The term ‘poverty line’ has the meaning provided in section 673(2) of the Community Services Block

Grant Act (42 U.S.C. 9902(2)).

‘‘(6) STATE PLAN.—The term ‘State plan’ means a State

plan submitted to and approved by the Secretary under subsection (d).

‘‘(b) ESTABLISHMENT.—The Secretary shall establish an optional

block grant demonstration program in not more than 1 State in

each of the 7 Food and Consumer Service regions of the United

States Department of Agriculture to make grants to States to carry

out a school lunch and breakfast program for all schoolchildren

that—

‘‘(1) safeguards the health and well-being of children

through the provision of nutritious, well-balanced meals in

schools;

‘‘(2) provides children who are low-income students access

to nutritious free meals;

‘‘(3) provides children who are needy students access to

nutritious low-cost meals;

‘‘(4) ensures that children are receiving the nutrition

required to take advantage of educational opportunities;

‘‘(5) emphasizes foods that are naturally good sources of

vitamins and minerals over foods that have been enriched

with vitamins and minerals and are high in fat or sodium

content;

‘‘(6) provides a comprehensive school nutrition program

for children, which may include offering free meals to all children at a school;

‘‘(7) minimizes paperwork burdens and administrative

expenses for participating schools; and

‘‘(8) at the option of the State, provides meal supplements

to children in afterschool care.

‘‘(c) ELECTION BY THE STATE.—

‘‘(1) IN GENERAL.—A State with respect to which an application submitted under subsection (d)(1) is approved may participate in the block grant demonstration program.

‘‘(2) ELECTION IRREVOCABLE.—A State with respect to which

an application under paragraph (1) is approved may not subsequently reverse the decision of the State to participate in the

block grant demonstration program until the termination of

the program under subsection (n).

‘‘(3) BLOCK GRANT DEMONSTRATION PROGRAM EXCLUSIVE.—

Except as otherwise provided in this section, a State that

is participating in the block grant demonstration program shall

not be subject to, or receive any benefit under—

‘‘(A) the school lunch program established under this

Act;

‘‘(B) the school breakfast program established under

section 4 of the Child Nutrition Act of 1966 (42 U.S.C.

1773); or

‘‘(C) the commodity distribution programs established

under sections 6 and 14.

‘‘(4) MAINTENANCE OF SERVICE TO LOW-INCOME AND NEEDY

STUDENTS.—
H. R. 4—228

‘‘(A) PROPORTIONS OF STUDENTS SERVED.—A State shall

ensure that, during each year in which the State is participating in the block grant demonstration program, the

proportions of school lunches and school breakfasts served

to low-income students and needy students under the block

grant demonstration program are not less than the proportions of school lunches and school breakfasts, respectively,

served to low-income students and needy students in the

last year of participation by the State in the school lunch

program established under the other sections of this Act

or the school breakfast program established under section

4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),

respectively.

‘‘(B) PROPORTIONS OF FUNDS USED TO PROVIDE SERVICE.—A State shall ensure that, during each year in which

the State is participating in the block grant demonstration

program, the proportions of funds used by the State to

provide school lunches and school breakfasts for low-income

students and needy students under the block grant demonstration program are not less than the proportions of

State funds used to provide school lunches and school

breakfasts, respectively, for low-income students and needy

students in the last year of participation by the State

in the school lunch program established under the other

sections of this Act or the school breakfast program established under section 4 of the Child Nutrition Act of 1966

(42 U.S.C. 1773), respectively.

‘‘(d) APPLICATION AND STATE PLAN.— ‘‘(1) APPLICATION.—To be eligible to receive assistance

under the block grant demonstration program, a State shall

prepare and submit to the Secretary an application at such

time, in such manner, and containing such information as

the Secretary shall by regulation reasonably require, including— ‘‘(A) an assurance that the State will comply with

the requirements of this section;

‘‘(B) a State plan that meets the requirements of paragraph (2); ‘‘(C) an assurance that the State will comply with the requirements of the State plan under paragraph (2);

and

‘‘(D) an assurance that the State will submit an annual

report in accordance with paragraph (4).

‘‘(2) REQUIREMENTS OF STATE PLAN.— ‘‘(A) USE OF BLOCK GRANT DEMONSTRATION PROGRAM

FUNDS.—

‘‘(i) IN GENERAL.—Subject to clause (ii), the State

plan shall provide that the State shall use the amounts

provided to the State for each fiscal year under the

block grant demonstration program to provide assistance to schools to provide lunches and breakfasts,

including—

‘‘(I) free lunches and breakfasts in accordance

with subparagraph (E) to low-income students at

the schools;

‘‘(II) low-cost lunches and breakfasts to needy

students at the schools;
H. R. 4—229

‘‘(III) at the option of the State, lunches and

breakfasts to all students; and

‘‘(IV) at the option of the State, meal supplements.

‘‘(ii) ADMINISTRATIVE EXPENSES.—A State may not

use the amounts described in clause (i) for the payment

of State administrative expenses incurred in carrying

out the block grant demonstration program.

‘‘(iii) NONPROFIT OPERATION.—The school lunch

and school breakfast program under the block grant

demonstration program shall be operated on a nonprofit basis.

‘‘(iv) MAINTENANCE OF STATE EFFORT.—For each

fiscal year for which the State participates in the block

grant demonstration program, the amount of the State

revenues (excluding State revenues derived from the

operation of the program) appropriated or used specifically for block grant demonstration program purposes

(other than any State revenues expended for salaries

and administrative expenses of the program at the

State level) shall be not less than the amount of such

State revenues made available for the preceding fiscal

year under this section or for the school lunch program

under the other sections of this Act and the school

breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), as appropriate.

‘‘(B) NUTRITIONAL REQUIREMENTS.—

‘‘(i) PROHIBITION ON ADDITIONAL REQUIREMENTS.— The Secretary may not impose any additional nutritional requirement beyond the requirements specified

in this subparagraph. ‘‘(ii) REQUIREMENTS.—The State plan shall provide

for the establishment and implementation of minimum

nutritional requirements for meals provided under the

block grant demonstration program based on the most

recent tested nutritional research available, except that

the requirements shall not prohibit the substitution

of foods to accommodate the medical or other special

dietary needs of individual students. ‘‘(iii) DIETARY GUIDELINES.—The nutritional

requirements established under clause (ii) shall be

consistent with the goals of the most recent Dietary

Guidelines for Americans published under section 301

of the National Nutrition Monitoring and Related

Research Act of 1990 (7 U.S.C. 5341).

‘‘(iv) RECOMMENDED DIETARY ALLOWANCES.—The

nutritional requirements established under clause (ii)

shall require that meals provided under the block grant

demonstration program provide, on the average over

each week, at least—

‘‘(I) with respect to school lunches, one-third

of the daily recommended dietary allowance established by the Food and Nutrition Board of the

National Research Council of the National Academy of Sciences; and

‘‘(II) with respect to school breakfasts, onequarter of the daily recommended dietary allow-
H. R. 4—230

ance established by the Food and Nutrition Board

of the National Research Council of the National

Academy of Sciences.

‘‘(C) REVIEW OF MEAL OPERATIONS.—The State plan

shall provide that the State shall review the meal operations of each school food authority participating in the

block grant demonstration program not later than 2 years,

and not later than 4 years, after the implementation of

the block grant demonstration program in the State.

‘‘(D) GROUPS SERVED.—Subject to subsection (c)(4), the

State plan shall describe how the block grant demonstration program will serve specific groups of students in the

State.

‘‘(E) ELIGIBILITY LIMITATIONS.—

‘‘(i) IN GENERAL.—Subject to clauses (ii) and (iii),

the State plan shall describe the income eligibility

limitations established for the receipt of free meals

and low-cost meals under the block grant demonstration program.

‘‘(ii) ELIGIBILITY FOR FREE MEALS.—

‘‘(I) LOW-INCOME STUDENTS.—A low-income

student who attends a school participating in the

block grant demonstration program shall be

eligible to receive free school lunches and school

breakfasts under the block grant demonstration

program.

‘‘(II) OTHER STUDENTS.—The State plan may

provide that a student who is a member of a

family whose income is equal to or more than

130 percent of the poverty line and who attends

a school participating in the block grant demonstration program shall be eligible to receive free

school lunches and school breakfasts under the

block grant demonstration program.

‘‘(iii) ELIGIBILITY FOR LOW-COST MEALS.— ‘‘(I) IN GENERAL.—The State plan shall provide

that a needy student who attends a school participating in the block grant demonstration program

shall be eligible to receive a low-cost meal under

the block grant demonstration program. ‘‘(II) PRICE.—A low-cost meal under subclause

(I) shall be offered to a needy student at a price

that is less than the price charged to a student

who is a member of a family whose income is

more than 185 percent of the poverty line.

‘‘(III) GROUP ELIGIBILITY CRITERIA.—Subject to

the other provisions of this subparagraph and to

subsection (c)(4), each State may develop group

eligibility criteria based on census or other

accurate data that measures the income of families

with school-aged children in a school district or

based on prior year participation.

‘‘(F) OPPORTUNITY FOR CONTINUED PARTICIPATION.—

The State plan shall provide that each school participating

in the school lunch program under the other sections of

this Act or the school breakfast program under section

4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),
H. R. 4—231

or both, on the day before the effective date of this subparagraph shall be provided the opportunity to participate in

the block grant demonstration program. Such continued

participation shall include the opportunity for the school

to provide the meal or combination of meals offered prior

to the effective date of this subparagraph.

‘‘(G) PROVISION OF COMMODITIES TO CASH/CLOC

SCHOOLS.—

‘‘(i) IN GENERAL.—A State plan may not require

a school district, nonprofit private school, or Department of Defense domestic dependents’ school described

in clause (ii), except on request of the school district,

private school, or domestic dependents’ school, as the

case may be, to accept commodities for use in the

school lunch or school breakfast program of the school

district, private school, or domestic dependents’ school

in accordance with this section. The school district,

private school, or domestic dependents’ school may continue to receive commodity assistance in the form that

the school received the assistance as of January 1,

1987.

‘‘(ii) SCHOOLS.—Clause (i) applies to a school district, nonprofit private school, or Department of

Defense domestic dependents’ school, as the case may

be, that as of January 1, 1987, was receiving all cash

payments or all commodity letters of credit in lieu

of entitlement commodities for the school lunch program of the school district, private school, or domestic

dependents’ school under section 18(b).

‘‘(H) PRIVACY.—

‘‘(i) IN GENERAL.—The State plan shall provide

for safeguarding and restricting the use and disclosure

of information about any student receiving assistance

under the block grant demonstration program.

‘‘(ii) RECIPIENTS OF FREE OR LOW-COST MEALS.—

In providing assistance to schools to serve meals under

the block grant demonstration program, the State shall

ensure that the schools do not—

‘‘(I) physically segregate students eligible to

receive free or low-cost meals on the basis of the

eligibility;

‘‘(II) provide for the overt identification of the

students by special tokens or tickets, announced

or published list of names, or other means; or

‘‘(III) otherwise discriminate against the students.

‘‘(I) OTHER INFORMATION.—The State plan shall contain

such other information as may be reasonably required by

the Secretary.

‘‘(3) APPROVAL OF APPLICATION AND STATE PLAN.—The Secretary shall approve an application and State plan that meet

the requirements of this section.

‘‘(4) REPORT.—The Secretary may provide a grant under

the block grant demonstration program to a State for a fiscal

year only if the State agrees that the State will submit, for

the fiscal year, a report to the Secretary describing—
H. R. 4—232

‘‘(A) the number of students receiving assistance under

the block grant demonstration program;

‘‘(B) the different types of assistance provided to the

students;

‘‘(C) the extent to which the assistance was effective

in achieving the goals described in subsection (b);

‘‘(D) the total number of meals served to students

under the block grant demonstration program, including

the percentage of the meals served to low-income students

and needy students;

‘‘(E) the standards and methods that the State is using

to ensure the nutritional quality of the meals served under

the block grant demonstration program; and

‘‘(F) any other information that may be reasonably

required by the Secretary.

‘‘(e) USE OF FUNDS.—Funds made available under this section

may be expended only for—

‘‘(1) school lunches, school breakfasts, and meal supplements; and

‘‘(2) the purchase of equipment needed to improve school

food services under the block grant demonstration program.

‘‘(f) ENFORCEMENT.—

‘‘(1) REVIEW OF COMPLIANCE WITH STATE PLAN.—The Secretary shall review and monitor State compliance with this

section and the State plan.

‘‘(2) NONCOMPLIANCE.—

‘‘(A) IN GENERAL.—If the Secretary, after providing

reasonable notice to a State and opportunity for a hearing,

finds that—

‘‘(i) there has been a failure by the State to comply

substantially with any provision or requirement set

forth in the State plan; or

‘‘(ii) in the operation of any program or activity

for which assistance is provided under the block grant

demonstration program, there is a failure by the State

to comply substantially with any provision of this

section;

the Secretary shall notify the State of the finding and

that no further payments will be made to the State under

the block grant demonstration program, or, in the case

of noncompliance in the operation of a program or activity,

that no further payments to the State will be made with

respect to the program or activity, until the Secretary

determines that there is no longer any failure to comply

or that the noncompliance will be promptly corrected.

‘‘(B) OTHER SANCTIONS.—In the case of a finding of

noncompliance made under subparagraph (A), the Secretary may, in addition to, or in lieu of, imposing the

sanctions described in subparagraph (A), impose other

appropriate sanctions, including recoupment of money

improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt

of financial assistance under this section.

‘‘(C) NOTICE.—The notice required under subparagraph

(A) shall include a specific identification of any additional

sanction being imposed under subparagraph (B).
H. R. 4—233

‘‘(3) ISSUANCE OF REGULATIONS.—The Secretary shall establish by regulation procedures for—

‘‘(A) receiving, processing, and determining the validity

of complaints concerning any failure of a State to comply

with the State plan or any requirement of this section;

and

‘‘(B) imposing sanctions under this section.

‘‘(g) PAYMENTS.—

‘‘(1) IN GENERAL.—For each fiscal year, the Secretary shall

pay to a State that has an application approved by the Secretary

under subsection (d)(3) and that complies with paragraph (3)

an amount that is equal to the allotment of the State under

subsection (i) for the fiscal year.

‘‘(2) METHODS OF PAYMENT.—The Secretary shall make payments to a State for a fiscal year under this section on a

quarterly basis—

‘‘(A) by issuing letters of credit for the fiscal year,

with necessary adjustments on account of overpayments

or underpayments, as determined by the Secretary; and

‘‘(B) by providing not less than 8 percent but not more

than 10 percent of the amount of the allotment to the

State in the form of commodities.

‘‘(3) EXPENDITURE OF FUNDS BY STATES.—Payments to a

State from an allotment under subsection (i) for a fiscal year

may be expended by the State only in the fiscal year or in

the succeeding fiscal year.

‘‘(4) PROVISION OF SCHOOL LUNCHES AND BREAKFASTS.—

Subject to the other provisions of this section, a State may

provide school lunches and school breakfasts under the block

grant demonstration program in any manner determined appropriate by the State.

‘‘(h) AUDITS.— ‘‘(1) REQUIREMENT.—After the close of each fiscal year,

the Secretary shall carry out an audit of the expenditures

from amounts received under this section by each State participating in the block grant demonstration program during the

fiscal year. ‘‘(2) RECORDS.—Each State described in paragraph (1) shall

maintain such records as the Secretary may reasonably require

to carry out an audit under this subsection. ‘‘(3) REPAYMENT OF AMOUNTS.—Each State shall repay to

the United States any amounts determined through an audit

under this subsection to have not been expended in accordance

with this section or to have not been expended in accordance

with the State plan, or the Secretary may offset the amounts

against any other amount paid to the State under this section.

‘‘(i) ALLOTMENTS.—

‘‘(1) FIRST FISCAL YEAR.—

‘‘(A) IN GENERAL.—For the first fiscal year in which

the State participates in the block grant demonstration

program, the Secretary shall allot to the State, from

amounts made available under section 3 of this Act and

the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),

an amount that is equal to the amount that the Secretary

projects would be made available to the State to carry

out the school lunch program under the other sections

of this Act and the school breakfast program under section
H. R. 4—234

4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)

(including the value of commodities made available under

the commodity distribution programs established under sections 6 and 14) for the fiscal year.

‘‘(B) BASIS FOR PROJECTIONS.—In making a projection

under subparagraph (A), the Secretary shall take into

account—

‘‘(i) participation trends in the State; and

‘‘(ii) projected changes in reimbursement rates

under the school lunch program under the other sections of this Act, and the school breakfast program

under section 4 of the Child Nutrition Act of 1966

(42 U.S.C. 1773).

‘‘(C) PUBLICATION IN THE FEDERAL REGISTER.—The Secretary shall publish in the Federal Register—

‘‘(i) not later than February 1, 1996, and each

February 1 thereafter, the amount that the Secretary

projects will be made available to each State that,

as of the date of publication, is not participating in

the block grant demonstration program to carry out

the school lunch program under the other sections

of this Act and the school breakfast program under

section 4 of the Child Nutrition Act of 1966 (42 U.S.C.

1773) for the first fiscal year that begins after the

date of publication; and

‘‘(ii) not later than February 1, 1998, and each

February 1 thereafter, with respect to each State for

which a projection was made under clause (i)—

‘‘(I) the amount that the Secretary projected

would be made available to the State for the fiscal

year that ended the preceding September 30; and

‘‘(II) the amount that actually was made available to the State for the fiscal year that ended

the preceding September 30.

‘‘(2) LATER FISCAL YEARS.—For each fiscal year after the

first fiscal year referred to in paragraph (1), the Secretary

shall allot to the State, from amounts made available under

section 3 of this Act and the Child Nutrition Act of 1966

(42 U.S.C. 1771 et seq.), an amount that is equal to the sum

of—

‘‘(A) the amount allotted under paragraph (1); and

‘‘(B) the product of—

‘‘(i) the amount allotted under paragraph (1); and

‘‘(ii) a factor consisting of the sum of—

‘‘(I) one-half of the percentage change in the

series for food away from home of the Consumer

Price Index for All Urban Consumers published

by the Bureau of Labor Statistics of the Department of Labor for the most recent 12-month period

for which such data are available; and

‘‘(II) one-half of the percentage change in the

number of children projected to be enrolled in

school in the State in the current school year (as

of the first day of the fiscal year) as compared

to the number of children enrolled in school in

the State in the preceding school year.
H. R. 4—235

‘‘(j) RELATIONSHIP TO OTHER LAWS.—The value of assistance

provided to students under the block grant demonstration program

shall not be considered to be income or resources for any purpose

under any Federal or State law, including any law relating to

taxation and welfare and public assistance programs.

‘‘(k) ALTERNATIVE ASSISTANCE TO CERTAIN STUDENTS.—

‘‘(1) ASSISTANCE.—If, by reason of any other provision of

law, a State participating in the block grant demonstration

program is prohibited from providing assistance from amounts

received from a grant under the block grant demonstration

program to a nonprofit private school or Department of Defense

domestic dependents’ school for a fiscal year to carry out the

block grant demonstration program, or the Secretary determines that a State has substantially failed or is unwilling

to provide the assistance to a nonprofit private school, Department of Defense domestic dependents’ school, or public school,

for the fiscal year, the Secretary shall, after consultation with

appropriate representatives of the State and affected school,

arrange for the provision of the assistance to the school for

the fiscal year in accordance with the other sections of this

Act.

‘‘(2) REDUCTION IN AMOUNT OF STATE GRANT.—If the Secretary arranges for the provision of assistance to a nonprofit

private school, Department of Defense domestic dependents’

school, or public school in a State for a fiscal year under

paragraph (1), the amount of the grant to the State for the

fiscal year shall be reduced by the amount of the assistance

provided to the school.

‘‘(l) TRANSITION PROVISIONS.— ‘‘(1) TRANSITION INTO BLOCK GRANT DEMONSTRATION PRO- GRAM.—A State for which an application and State plan are

approved under subsection (d)(3) shall be eligible to use a

portion (as determined by the Secretary) of the funds and

commodities made available to the State for the preceding

fiscal year under the school lunch program under the other

sections of this Act, and the school breakfast program under

section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),

to make a transition into the block grant demonstration

program. ‘‘(2) TRANSITION UPON TERMINATION OF BLOCK GRANT DEM- ONSTRATION PROGRAM.—Upon termination of the block grant

demonstration program, a State that participated in the block

grant demonstration program shall be eligible to use a portion

(as determined by the Secretary) of the funds and commodities

made available to the State for the preceding fiscal year under

the block grant demonstration program to make a transition

back to the operation of the school lunch program under the

other sections of this Act and the school breakfast program

under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.

1773).

‘‘(m) EVALUATIONS BY THE SECRETARY.—

‘‘(1) IN GENERAL.—Not later than 3 years after the

establishment of the block grant demonstration program and

not later than 180 days prior to the termination date specified

in subsection (n), the Secretary shall conduct an evaluation,

and submit a report on the evaluation to Congress (including

the comments of the Comptroller General of the United States
H. R. 4—236

under paragraph (3)), concerning the block grant demonstration

program.

‘‘(2) CONTENTS.—In carrying out paragraph (1), the Secretary shall evaluate, using, to the extent practicable, data

required to be reported by the States under this section—

‘‘(A) the effects of the block grant demonstration program on the nutritional quality of the meals offered;

‘‘(B) the degree to which children, especially children

who are low-income students and children who are needy

students, participated in the block grant demonstration

program during each fiscal year covered by the evaluation

as compared to the participation of the children in the

block grant demonstration program, or in the school lunch

program under the other sections of this Act and the school

breakfast program under section 4 of the Child Nutrition

Act of 1966 (42 U.S.C. 1773), during the prior fiscal year;

‘‘(C) the income distribution of the children served

and the amount of Federal assistance the children received

under the block grant demonstration program for each

fiscal year;

‘‘(D) the schools participating in, and the types of meals

offered under, the block grant demonstration program during each fiscal year covered by the evaluation as compared

to the schools participating in, and the types of meals

offered under, the block grant demonstration program, or

the school lunch program under the other sections of this

Act and the school breakfast program under section 4 of

the Child Nutrition Act of 1966 (42 U.S.C. 1773), during

the prior fiscal year;

‘‘(E) how the implementation of the block grant demonstration program differs from the implementation of the

school lunch program under the other sections of this Act

and the school breakfast program under section 4 of the

Child Nutrition Act of 1966 (42 U.S.C. 1773);

‘‘(F) the effect of the block grant demonstration program on the administrative costs paid by States and schools

to carry out school lunch and school breakfast programs;

‘‘(G) the effect of the block grant demonstration program on the paperwork required to be completed by schools

and parents under school lunch and school breakfast programs; and

‘‘(H) such other issues concerning the block grant demonstration program as the Secretary considers appropriate.

‘‘(3) COMMENTS BY THE COMPTROLLER GENERAL.—The

Comptroller General of the United States shall—

‘‘(A) comment on the evaluation conducted under paragraph (1), including the methodology used by the Secretary

in conducting the evaluation; and

‘‘(B) submit the comments to the Secretary for inclusion

in the evaluation.

‘‘(n) TERMINATION OF AUTHORITY.—The authority to carry out

the block grant demonstration program shall terminate on September 30, 2000.’’.

(b) STATE ADMINISTRATIVE EXPENSES.—The first sentence of

section 7(a)(1) of the Child Nutrition Act of 1966 (42 U.S.C.

1776(a)(1)) is amended by inserting ‘‘5,’’ after ‘‘4,’’.
H. R. 4—237

(c) PROHIBITION ON WAIVERS.—Section 12(l)(4) of the National

School Lunch Act (42 U.S.C. 1760(l)(4)) is amended—

(1) in subparagraph (M), by striking ‘‘and’’ at the end;

(2) in subparagraph (N), by striking the period at the

end and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(O) the school nutrition optional block grant demonstration program established under section 5.’’.

Subtitle B—Child Nutrition Act of 1966

SEC. 921. SPECIAL MILK PROGRAM.

Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C.

1772(a)(3)) is amended by striking ‘‘the Trust Territory of the Pacific

Islands’’ and inserting ‘‘the Commonwealth of the Northern Mariana

Islands’’.

SEC. 922. FREE AND REDUCED PRICE POLICY STATEMENT.

Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C.

1773(b)(1)) is amended by adding at the end the following:

‘‘(E) FREE AND REDUCED PRICE POLICY STATEMENT.—

After the initial submission, a school shall not be required

to submit a free and reduced price policy statement to

a State educational agency under this Act unless there

is a substantive change in the free and reduced price policy

of the school. A routine change in the policy of a school,

such as an annual adjustment of the income eligibility

guidelines for free and reduced price meals, shall not be

sufficient cause for requiring the school to submit a policy

statement.’’.

SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD PREPARA- TION.—Section 4(e)(1) of the Child Nutrition Act of 1966 (42 U.S.C.

1773(e)(1)) is amended—

(1) in subparagraph (A), by striking ‘‘(A)’’; and

(2) by striking subparagraph (B). (b) EXPANSION OF PROGRAM; STARTUP AND EXPANSION COSTS.—

(1) IN GENERAL.—Section 4 of the Act is amended by striking subsections (f) and (g).

(2) EFFECTIVE DATE.—The amendments made by paragraph

(1) shall become effective on October 1, 1996.

SEC. 924. STATE ADMINISTRATIVE EXPENSES.

(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION ADMINISTRATION; STUDIES.—Section 7 of the Child Nutrition Act of 1966 (42

U.S.C. 1776) is amended—

(1) by striking subsections (e) and (h); and

(2) by redesignating subsections (f), (g), and (i) as subsections (e), (f), and (g), respectively.

(b) APPROVAL OF CHANGES.—Section 7(e) of the Act, as so

redesignated, is amended—

(1) by striking ‘‘each year an annual plan’’ and inserting

‘‘the initial fiscal year a plan’’; and

(2) by adding at the end the following: ‘‘After submitting

the initial plan, a State shall only be required to submit to

the Secretary for approval a substantive change in the plan.’’.
H. R. 4—238

SEC. 925. REGULATIONS.

Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779)

is amended—

(1) in subsection (b)—

(A) in paragraph (1), by striking ‘‘(1)’’; and

(B) by striking paragraphs (2) through (4); and (2) in subsection (c), by striking ‘‘may’’ and inserting ‘‘shall’’.

SEC. 926. PROHIBITIONS.

Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C.

1780(a)) is amended by striking ‘‘neither the Secretary nor the

State shall’’ and inserting ‘‘the Secretary shall not’’.

SEC. 927. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784)

is amended—

(1) in paragraph (1), by striking ‘‘the Trust Territory of

the Pacific Islands’’ and inserting ‘‘the Commonwealth of the

Northern Mariana Islands’’; and

(2) in the first sentence of paragraph (3)—

(A) in subparagraph (A), by inserting ‘‘and’’ at the

end; and

(B) by striking ‘‘, and (C)’’ and all that follows through

‘‘Governor of Puerto Rico’’.

SEC. 928. ACCOUNTS AND RECORDS.

The second sentence of section 16(a) of the Child Nutrition

Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ‘‘at all

times be available’’ and inserting ‘‘be available at any reasonable

time’’.

SEC. 929. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

WOMEN, INFANTS, AND CHILDREN.

(a) DEFINITIONS.—Section 17(b) of the Child Nutrition Act of

1966 (42 U.S.C. 1786(b)) is amended—

(1) in paragraph (15)(B)(iii), by inserting ‘‘of not more than

90 days’’ after ‘‘accommodation’’; and (2) in paragraph (16)— (A) in subparagraph (A), by adding ‘‘and’’ at the end;

and

(B) in subparagraph (B), by striking ‘‘; and’’ and inserting a period; and (C) by striking subparagraph (C). (b) SECRETARY’S PROMOTION OF WIC.—Section 17(c) of the Act

is amended by striking paragraph (5). (c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the Act is amended

by striking paragraph (4).

(d) NUTRITION EDUCATION AND DRUG ABUSE EDUCATION.—Section 17(e) of the Act is amended—

(1) in the first sentence of paragraph (1), by striking ‘‘shall

ensure’’ and all that follows through ‘‘is provided’’ and inserting

‘‘shall provide nutrition education and may provide drug abuse

education’’;

(2) in paragraph (2), by striking the third sentence;

(3) by striking paragraph (4) and inserting the following:

‘‘(4) INFORMATION.—The State agency may provide a local

agency with materials describing other programs for which

participants in the program may be eligible.’’;
H. R. 4—239

(4) in paragraph (5), by striking ‘‘The State’’ and all that

follows through ‘‘local agency shall’’ and inserting ‘‘A local

agency may’’; and

(5) by striking paragraph (6).

(e) STATE PLAN.—Section 17(f) of the Act is amended—

(1) in paragraph (1)—

(A) in subparagraph (A)—

(i) by striking ‘‘annually to the Secretary, by a

date specified by the Secretary, a’’ and inserting ‘‘to

the Secretary, by a date specified by the Secretary,

an initial’’; and

(ii) by adding at the end the following: ‘‘After

submitting the initial plan, a State shall only be

required to submit to the Secretary for approval a

substantive change in the plan.’’;

(B) in subparagraph (C)—

(i) by striking clause (iii) and inserting the following:

‘‘(iii) a plan to coordinate operations under the program

with other services or programs that may benefit participants

in, and applicants for, the program;’’;

(ii) in clause (vi), by inserting after ‘‘in the State’’

the following: ‘‘(including a plan to improve access

to the program for participants and prospective

applicants who are employed, or who reside in rural

areas)’’;

(iii) by striking clauses (vii), (ix), (x), and (xii);

(iv) in clause (xiii), by striking ‘‘may require’’ and

inserting ‘‘may reasonably require’’; and (v) by redesignating clauses (viii), (xi), and (xiii), as so amended, as clauses (vii), (viii), and (ix), respectively;

(C) by striking subparagraph (D); and

(D) by redesignating subparagraph (E) as subpara- graph (D);

(2) by striking paragraphs (2), (6), (8), (20), (22), and (24);

(3) in the second sentence of paragraph (5), by striking

‘‘at all times be available’’ and inserting ‘‘be available at any

reasonable time’’;

(4) in paragraph (9)(B), by striking the second sentence;

(5) in the first sentence of paragraph (11), by striking

‘‘, including standards that will ensure sufficient State agency

staff’’;

(6) in paragraph (12), by striking the third sentence;

(7) in paragraph (14), by striking ‘‘shall’’ and inserting

‘‘may’’;

(8) in paragraph (17), by striking ‘‘and to accommodate’’

and all that follows through ‘‘facilities’’;

(9) in paragraph (19), by striking ‘‘shall’’ and inserting

‘‘may’’; and

(10) by redesignating paragraphs (3), (4), (5), (7), (9)

through (19), (21), and (23), as so amended, as paragraphs

(2), (3), (4), (5), (6) through (16), (17), and (18), respectively.

(f) INFORMATION.—Section 17(g) of the Act is amended—

(1) in paragraph (5), by striking ‘‘the report required under

subsection (d)(4)’’ and inserting ‘‘reports on program participant

characteristics’’; and
H. R. 4—240

(2) by striking paragraph (6).

(g) PROCUREMENT OF INFANT FORMULA.—

(1) IN GENERAL.—Section 17(h) of the Act is amended—

(A) in paragraph (4)(E), by striking ‘‘and, on’’ and all

that follows through ‘‘(d)(4)’’;

(B) in paragraph (8)—

(i) by striking subparagraphs (A), (C), and (M);

(ii) in subparagraph (G)—

(I) in clause (i), by striking ‘‘(i)’’; and

(II) by striking clauses (ii) through (ix);

(iii) in subparagraph (I), by striking ‘‘Secretary—’’ and all that follows through ‘‘(v) may’’ and

inserting ‘‘Secretary may’’;

(iv) by redesignating subparagraphs (B) and (D)

through (L) as subparagraphs (A) and (B) through

(J), respectively;

(v) in subparagraph (A)(i), as so redesignated, by

striking ‘‘subparagraphs (C), (D), and (E)(iii), in carrying out subparagraph (A),’’ and inserting ‘‘subparagraphs (B) and (C)(iii),’’;

(vi) in subparagraph (B)(i), as so redesignated, by

striking ‘‘subparagraph (B)’’ each place it appears and

inserting ‘‘subparagraph (A)’’; and

(vii) in subparagraph (C)(iii), as so redesignated,

by striking ‘‘subparagraph (B)’’ and inserting ‘‘subparagraph (A)’’; and

(C) in paragraph (10)(A), by striking ‘‘shall’’ and inserting ‘‘may’’.

(2) APPLICATION.—The amendments made by paragraph

(1) shall not apply to a contract for the procurement of infant

formula under section 17(h)(8) of the Act that is in effect

on the effective date of this subsection.

(h) NATIONAL ADVISORY COUNCIL ON MATERNAL, INFANT, AND

FETAL NUTRITION.—Section 17(k)(3) of the Act is amended by striking ‘‘Secretary shall designate’’ and inserting ‘‘Council shall elect’’.

(i) COMPLETED STUDY; COMMUNITY COLLEGE DEMONSTRATION;

GRANTS FOR INFORMATION AND DATA SYSTEM.—Section 17 of the

Act is amended by striking subsections (n), (o), and (p).

(j) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED

UNDER THE FOOD STAMP PROGRAM.—Section 17 of the Act, as

so amended, is further amended by adding at the end the following:

‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED

UNDER THE FOOD STAMP PROGRAM.—

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

providing criteria for the disqualification under this section

of an approved vendor that is disqualified from accepting benefits under the food stamp program established under the Food

Stamp Act of 1977 (7 U.S.C. 2011 et seq.).

‘‘(2) TERMS.—A disqualification under paragraph (1)—

‘‘(A) shall be for the same period as the disqualification

from the program referred to in paragraph (1);

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

from the program referred to in paragraph (1); and

‘‘(C) shall not be subject to judicial or administrative

review.’’.
H. R. 4—241

SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.

Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787)

is repealed.

SEC. 931. NUTRITION EDUCATION AND TRAINING.

(a) FINDINGS.—Section 19 of the Child Nutrition Act of 1966

(42 U.S.C. 1788) is amended—

(1) in subsection (a), by striking ‘‘that—’’ and all that

follows through the period at the end and inserting ‘‘that effective dissemination of scientifically valid information to children

participating or eligible to participate in the school lunch and

related child nutrition programs should be encouraged.’’; and

(2) in subsection (b), by striking ‘‘encourage’’ and all that

follows through ‘‘establishing’’ and inserting ‘‘establish’’.

(b) USE OF FUNDS.—Section 19(f) of the Act is amended—

(1) in paragraph (1)—

(A) by striking subparagraph (B); and

(B) in subparagraph (A)—

(i) by striking ‘‘(A)’’;

(ii) by striking clauses (ix) through (xix);

(iii) by redesignating clauses (i) through (viii) and

(xx) as subparagraphs (A) through (H) and (I), respectively; and

(iv) in subparagraph (H), as so redesignated, by

inserting ‘‘and’’ at the end;

(2) by striking paragraphs (2) and (4); and

(3) by redesignating paragraph (3) as paragraph (2).

(c) ACCOUNTS, RECORDS, AND REPORTS.—The second sentence

of section 19(g)(1) of the Act is amended by striking ‘‘at all times

be available’’ and inserting ‘‘be available at any reasonable time’’.

(d) STATE COORDINATORS FOR NUTRITION; STATE PLAN.—Section

19(h) of the Act is amended—

(1) in the second sentence of paragraph (1)—

(A) by striking ‘‘as provided in paragraph (2) of this

subsection’’; and

(B) by striking ‘‘as provided in paragraph (3) of this

subsection’’;

(2) in paragraph (2), by striking the second and third

sentences; and

(3) by striking paragraph (3).

(e) AUTHORIZATION OF APPROPRIATIONS.—Section 19(i) of the

Act is amended—

(1) in the first sentence of paragraph (2)(A), by striking

‘‘and each succeeding fiscal year’’;

(2) by redesignating paragraphs (3) and (4) as paragraphs

(4) and (5), respectively; and

(3) by inserting after paragraph (2) the following:

‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—

‘‘(A) IN GENERAL.—There are authorized to be appropriated to carry out this section $10,000,000 for each of

fiscal years 1997 through 2002.

‘‘(B) GRANTS.—

‘‘(i) IN GENERAL.—Grants to each State from the

amounts made available under subparagraph (A) shall

be based on a rate of 50 cents for each child enrolled

in schools or institutions within the State, except that
H. R. 4—242

no State shall receive an amount less than $75,000

per fiscal year. ‘‘(ii) INSUFFICIENT FUNDS.—If the amount made

available for any fiscal year is insufficient to pay the

amount to which each State is entitled under clause

(i), the amount of each grant shall be ratably reduced.’’. (f) ASSESSMENT.—Section 19 of the Act is amended by striking subsection (j). (g) EFFECTIVE DATE.—The amendments made by subsection (e) shall become effective on October 1, 1996.

SEC. 932. BREASTFEEDING PROMOTION PROGRAM.

Section 21 of the Child Nutrition Act of 1966 (42 U.S.C. 1790)

is repealed.

TITLE X—FOOD STAMPS AND

COMMODITY DISTRIBUTION

SEC. 1001. SHORT TITLE.

This title may be cited as the ‘‘Food Stamp Reform and Commodity Distribution Act of 1995’’.

Subtitle A—Food Stamp Program

SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c))

is amended by striking ‘‘Except as provided’’ and all that follows

and inserting the following: ‘‘The certification period shall not

exceed 12 months, except that the certification period may be up

to 24 months if all adult household members are elderly or disabled.

A State agency shall have at least 1 contact with each certified

household every 12 months.’’.

SEC. 1012. DEFINITION OF COUPON.

Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d))

is amended by striking ‘‘or type of certificate’’ and inserting ‘‘type

of certificate, authorization card, cash or check issued in lieu of

a coupon, or an access device, including an electronic benefit transfer card or personal identification number,’’.

SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

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

of 1977 (7 U.S.C. 2012(i)) is amended by striking ‘‘(who are not

themselves parents living with their children or married and living

with their spouses)’’.

SEC. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD DETERMINATIONS.

Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i))

is amended by inserting after the third sentence the following:

‘‘Notwithstanding the preceding sentences, a State may establish

criteria that prescribe when individuals who live together, and

who would be allowed to participate as separate households under

the preceding sentences, shall be considered a single household,

without regard to the common purchase of food and preparation

of meals.’’.
H. R. 4—243

SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

The second sentence of section 3(o) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—

(1) by striking ‘‘shall (1) make’’ and inserting the following: ‘‘shall—

‘‘(1) make’’;

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

‘‘(2) make’’;

(3) by striking ‘‘Alaska, (3) make’’ and inserting the following: ‘‘Alaska;

‘‘(3) make’’; and

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

through the end of the subsection and inserting the following:

‘‘Columbia; and

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

adjust the cost of the diet to reflect the cost of the diet, in

the preceding June, and round the result to the nearest lower

dollar increment for each household size, except that on October

1, 1996, the Secretary may not reduce the cost of the diet

in effect on September 30, 1996.’’.

SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

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

2012(s)(2)(C)) is amended by inserting ‘‘for not more than 90 days’’

after ‘‘temporary accommodation’’.

SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d))

is amended by striking ‘‘(b) The Secretary’’ and inserting the

following:

‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise provided in

this Act, the Secretary’’.

SEC. 1018. EARNINGS OF STUDENTS.

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

2014(d)(7)) is amended by striking ‘‘21’’ and inserting ‘‘19’’.

SEC. 1019. ENERGY ASSISTANCE.

(a) IN GENERAL.—Section 5(d) of the Food Stamp Act of 1977

(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting the following: ‘‘(11) a 1-time payment or allowance made under

a Federal or State law for the costs of weatherization or emergency

repair or replacement of an unsafe or inoperative furnace or other

heating or cooling device,’’. (b) CONFORMING AMENDMENTS.— (1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is amended—

(A) in paragraph (1)—

(i) in subparagraph (A), by striking ‘‘plan for aid

to families with dependent children approved’’ and

inserting ‘‘program funded’’; and

(ii) in subparagraph (B), by striking ‘‘, not including energy or utility-cost assistance,’’;

(B) in paragraph (2), by striking subparagraph (C)

and inserting the following:

‘‘(C) a payment or allowance described in subsection

(d)(11);’’; and

(C) by adding at the end the following:

‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS.—
H. R. 4—244

‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of

subsection (d)(1), a payment made under a Federal or State

law to provide energy assistance to a household shall be

considered money payable directly to the household.

‘‘(B) ENERGY ASSISTANCE EXPENSES.—For purposes of

subsection (e)(7), an expense paid on behalf of a household

under a Federal or State law to provide energy assistance

shall be considered an out-of-pocket expense incurred and

paid by the household.’’.

(2) Section 2605(f) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended—

(A) by striking ‘‘(f)(1) Notwithstanding’’ and inserting

‘‘(f) Notwithstanding’’;

(B) in paragraph (1), by striking ‘‘food stamps,’’; and

(C) by striking paragraph (2).

SEC. 1020. DEDUCTIONS FROM INCOME.

(a) IN GENERAL.—Section 5 of the Food Stamp Act of 1977

(7 U.S.C. 2014) is amended by striking subsection (e) and inserting

the following:

‘‘(e) DEDUCTIONS FROM INCOME.—

‘‘(1) STANDARD DEDUCTION.—The Secretary shall allow a

standard deduction for each household in the 48 contiguous

States and the District of Columbia, Alaska, Hawaii, Guam,

and the Virgin Islands of the United States of $134, $229,

$189, $269, and $118, respectively.

‘‘(2) EARNED INCOME DEDUCTION.—

‘‘(A) DEFINITION OF EARNED INCOME.—In this paragraph, the term ‘earned income’ does not include income

excluded by subsection (d) or any portion of income earned

under a work supplementation or support program, as

defined under section 16(b), that is attributable to public

assistance.

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

(C), a household with earned income shall be allowed a

deduction of 20 percent of all earned income (other than

income excluded by subsection (d)) to compensate for taxes,

other mandatory deductions from salary, and work

expenses.

‘‘(C) EXCEPTION.—The deduction described in subparagraph (B) shall not be allowed with respect to determining

an overissuance due to the failure of a household to report

earned income in a timely manner.

‘‘(3) DEPENDENT CARE DEDUCTION.—

‘‘(A) IN GENERAL.—A household shall be entitled, with

respect to expenses (other than excluded expenses described

in subparagraph (B)) for dependent care, to a dependent

care deduction, the maximum allowable level of which shall

be $200 per month for each dependent child under 2 years

of age and $175 per month for each other dependent, for

the actual cost of payments necessary for the care of a

dependent if the care enables a household member to accept

or continue employment, or training or education that is

preparatory for employment.

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

referred to in subparagraph (A) are—
H. R. 4—245

‘‘(i) expenses paid on behalf of the household by

a third party;

‘‘(ii) amounts made available and excluded for the

expenses referred to in subparagraph (A) under subsection (d)(3); and

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

‘‘(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.—

‘‘(A) IN GENERAL.—A household shall be entitled to

a deduction for child support payments made by a household member to or for an individual who is not a member

of the household if the household member is legally obligated to make the payments.

‘‘(B) METHODS FOR DETERMINING AMOUNT.—The Secretary may prescribe by regulation the methods, including

calculation on a retrospective basis, that a State agency

shall use to determine the amount of the deduction for

child support payments.

‘‘(5) HOMELESS SHELTER ALLOWANCE.—A State agency may

develop a standard homeless shelter allowance, which shall

not exceed $139 per month, for such expenses as may reasonably be expected to be incurred by households in which all

members are homeless individuals but are not receiving free

shelter throughout the month. A State agency that develops

the allowance may use the allowance in determining eligibility

and allotments for the households, except that the State agency

may prohibit the use of the allowance for households with

extremely low shelter costs.

‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—

‘‘(A) IN GENERAL.—A household containing an elderly

or disabled member shall be entitled, with respect to

expenses other than expenses paid on behalf of the household by a third party, to an excess medical expense deduction for the portion of the actual costs of allowable medical

expenses, incurred by the elderly or disabled member,

exclusive of special diets, that exceeds $35 per month.

‘‘(B) METHOD OF CLAIMING DEDUCTION.—

‘‘(i) IN GENERAL.—A State agency shall offer an

eligible household under subparagraph (A) a method

of claiming a deduction for recurring medical expenses

that are initially verified under the excess medical

expense deduction in lieu of submitting information

or verification on actual expenses on a monthly basis.

‘‘(ii) METHOD.—The method described in clause (i)

shall—

‘‘(I) be designed to minimize the burden for

the eligible elderly or disabled household member

choosing to deduct the recurrent medical expenses

of the member pursuant to the method;

‘‘(II) rely on reasonable estimates of the

expected medical expenses of the member for the

certification period (including changes that can be

reasonably anticipated based on available information about the medical condition of the member,

public or private medical insurance coverage, and

the current verified medical expenses incurred by

the member); and
H. R. 4—246

‘‘(III) not require further reporting or verification of a change in medical expenses if such a

change has been anticipated for the certification

period.

‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—

‘‘(A) IN GENERAL.—A household shall be entitled, with

respect to expenses other than expenses paid on behalf

of the household by a third party, to an excess shelter

expense deduction to the extent that the monthly amount

expended by a household for shelter exceeds an amount

equal to 50 percent of monthly household income after

all other applicable deductions have been allowed.

‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—In the case

of a household that does not contain an elderly or disabled

individual, the excess shelter expense deduction shall not

exceed—

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

of Columbia, $247 per month; and

‘‘(ii) in Alaska, Hawaii, Guam, and the Virgin

Islands of the United States, $429, $353, $300, and

$182 per month, respectively.

‘‘(C) STANDARD UTILITY ALLOWANCE.—

‘‘(i) IN GENERAL.—In computing the excess shelter

expense deduction, a State agency may use a standard

utility allowance in accordance with regulations

promulgated by the Secretary, except that a State

agency may use an allowance that does not fluctuate

within a year to reflect seasonal variations. ‘‘(ii) RESTRICTIONS ON HEATING AND COOLING

EXPENSES.—An allowance for a heating or cooling

expense may not be used in the case of a household

that—

‘‘(I) does not incur a heating or cooling

expense, as the case may be; ‘‘(II) does incur a heating or cooling expense

but is located in a public housing unit that has

central utility meters and charges households, with

regard to the expense, only for excess utility costs;

or

‘‘(III) shares the expense with, and lives with,

another individual not participating in the food

stamp program, another household participating

in the food stamp program, or both, unless the

allowance is prorated between the household and

the other individual, household, or both.

‘‘(iii) MANDATORY ALLOWANCE.—

‘‘(I) IN GENERAL.—A State agency may make

the use of a standard utility allowance mandatory

for all households with qualifying utility costs if—

‘‘(aa) the State agency has developed 1

or more standards that include the cost of

heating and cooling and 1 or more standards

that do not include the cost of heating and

cooling; and

‘‘(bb) the Secretary finds that the standards will not result in an increased cost to

the Secretary.
H. R. 4—247

‘‘(II) HOUSEHOLD ELECTION.—A State agency

that has not made the use of a standard utility

allowance mandatory under subclause (I) shall

allow a household to switch, at the end of a certification period, between the standard utility allowance and a deduction based on the actual utility

costs of the household.

‘‘(iv) AVAILABILITY OF ALLOWANCE TO RECIPIENTS

OF ENERGY ASSISTANCE.—

‘‘(I) IN GENERAL.—Subject to subclause (II),

if a State agency elects to use a standard utility

allowance that reflects heating or cooling costs,

the standard utility allowance shall be made available to households receiving a payment, or on

behalf of which a payment is made, under the

Low-Income Home Energy Assistance Act of 1981

(42 U.S.C. 8621 et seq.) or other similar energy

assistance program, if the household still incurs

out-of-pocket heating or cooling expenses in excess

of any assistance paid on behalf of the household

to an energy provider.

‘‘(II) SEPARATE ALLOWANCE.—A State agency

may use a separate standard utility allowance for

households on behalf of which a payment described

in subclause (I) is made, but may not be required

to do so.

‘‘(III) STATES NOT ELECTING TO USE SEPARATE

ALLOWANCE.—A State agency that does not elect

to use a separate allowance but makes a single

standard utility allowance available to households

incurring heating or cooling expenses (other than

a household described in subclause (I) or (II) of

subparagraph (C)(ii)) may not be required to

reduce the allowance due to the provision (directly

or indirectly) of assistance under the Low-Income

Home Energy Assistance Act of 1981 (42 U.S.C.

8621 et seq.).

‘‘(IV) PRORATION OF ASSISTANCE.—For the

purpose of the food stamp program, assistance provided under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall

be considered to be prorated over the entire heating or cooling season for which the assistance was

provided.’’.

(b) CONFORMING AMENDMENT.—Section 11(e)(3) of the Act (7

U.S.C. 2020(e)(3)) is amended by striking ‘‘. Under rules prescribed’’

and all that follows through ‘‘verifies higher expenses’’.

SEC. 1021. VEHICLE ALLOWANCE.

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g))

is amended by striking paragraph (2) and inserting the following:

‘‘(2) INCLUDED ASSETS.—

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

this paragraph, the Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow

the regulations in force as of June 1, 1982 (other than
H. R. 4—248

those relating to licensed vehicles and inaccessible

resources).

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

shall include in financial resources—

‘‘(i) any boat, snowmobile, or airplane used for

recreational purposes;

‘‘(ii) any vacation home;

‘‘(iii) any mobile home used primarily for vacation

purposes;

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

vehicle that is used for household transportation or

to obtain or continue employment to the extent that

the fair market value of the vehicle exceeds $4,600;

and

‘‘(v) any savings or retirement account (including

an individual account), regardless of whether there

is a penalty for early withdrawal.

‘‘(C) EXCLUDED VEHICLES.—A vehicle (and any other

property, real or personal, to the extent the property is

directly related to the maintenance or use of the vehicle)

shall not be included in financial resources under this

paragraph if the vehicle is—

‘‘(i) used to produce earned income;

‘‘(ii) necessary for the transportation of a physically

disabled household member; or

‘‘(iii) depended on by a household to carry fuel

for heating or water for home use and provides the

primary source of fuel or water, respectively, for the

household.’’.

SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING

COUNTED AS INCOME.

Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C.

2014(k)(2)) is amended—

(1) by striking subparagraph (F); and

(2) by redesignating subparagraphs (G) and (H) as subpara- graphs (F) and (G), respectively.

SEC 1023. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM REQUIREMENTS.

Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.

2015(b)(1)) is amended—

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

‘‘1 year’’; and (2) in clause (ii), by striking ‘‘1 year’’ and inserting ‘‘2

years’’.

SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C.

2015(b)(1)(iii)) is amended—

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

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

and inserting ‘‘; or’’; and

(3) by inserting after subclause (III) the following:

‘‘(IV) a conviction of an offense under subsection (b)

or (c) of section 15 involving an item covered by subsection

(b) or (c) of section 15 having a value of $500 or more.’’.
H. R. 4—249

SEC. 1025. DISQUALIFICATION.

(a) IN GENERAL.—Section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1) Unless otherwise

exempted by the provisions’’ and all that follows through the end

of paragraph (1) and inserting the following: ‘‘(d) CONDITIONS OF PARTICIPATION.— ‘‘(1) WORK REQUIREMENTS.— ‘‘(A) IN GENERAL.—No physically and mentally fit individual over the age of 15 and under the age of 60

shall be eligible to participate in the food stamp program

if the individual—

‘‘(i) refuses, at the time of application and every 12 months thereafter, to register for employment in

a manner prescribed by the Secretary; ‘‘(ii) refuses without good cause to participate in an employment and training program under paragraph

(4), to the extent required by the State agency; ‘‘(iii) refuses without good cause to accept an offer of employment, at a site or plant not subject to a

strike or lockout at the time of the refusal, at a wage

not less than the higher of—

‘‘(I) the applicable Federal or State minimum

wage; or

‘‘(II) 80 percent of the wage that would have

governed had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of

1938 (29 U.S.C. 206(a)(1)) been applicable to the

offer of employment;

‘‘(iv) refuses without good cause to provide a State

agency with sufficient information to allow the State

agency to determine the employment status or the

job availability of the individual;

‘‘(v) voluntarily and without good cause—

‘‘(I) quits a job; or

‘‘(II) reduces work effort and, after the reduction, the individual is working less than 30 hours

per week; or

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

‘‘(B) HOUSEHOLD INELIGIBILITY.—If an individual who

is the head of a household becomes ineligible to participate

in the food stamp program under subparagraph (A), the

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

ineligible to participate in the food stamp program for

a period, determined by the State agency, that does not

exceed the lesser of—

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

determined under subparagraph (C); or

‘‘(ii) 180 days.

‘‘(C) DURATION OF INELIGIBILITY.—

‘‘(i) FIRST VIOLATION.—The first time that an

individual becomes ineligible to participate in the food

stamp program under subparagraph (A), the individual

shall remain ineligible until the later of—

‘‘(I) the date the individual becomes eligible

under subparagraph (A);

‘‘(II) the date that is 1 month after the date

the individual became ineligible; or
H. R. 4—250

‘‘(III) a date determined by the State agency

that is not later than 3 months after the date

the individual became ineligible.

‘‘(ii) SECOND VIOLATION.—The second time that an

individual becomes ineligible to participate in the food

stamp program under subparagraph (A), the individual

shall remain ineligible until the later of—

‘‘(I) the date the individual becomes eligible

under subparagraph (A);

‘‘(II) the date that is 3 months after the date

the individual became ineligible; or

‘‘(III) a date determined by the State agency

that is not later than 6 months after the date

the individual became ineligible.

‘‘(iii) THIRD OR SUBSEQUENT VIOLATION.—The third

or subsequent time that an individual becomes ineligible to participate in the food stamp program under

subparagraph (A), the individual shall remain ineligible until the later of—

‘‘(I) the date the individual becomes eligible

under subparagraph (A);

‘‘(II) the date that is 6 months after the date

the individual became ineligible;

‘‘(III) a date determined by the State agency;

or

‘‘(IV) at the option of the State agency, permanently.

‘‘(D) ADMINISTRATION.— ‘‘(i) GOOD CAUSE.—The Secretary shall determine

the meaning of good cause for the purpose of this

paragraph. ‘‘(ii) VOLUNTARY QUIT.—The Secretary shall determine the meaning of voluntarily quitting and reducing

work effort for the purpose of this paragraph. ‘‘(iii) DETERMINATION BY STATE AGENCY.— ‘‘(I) IN GENERAL.—Subject to subclause (II) and clauses (i) and (ii), a State agency shall determine—

‘‘(aa) the meaning of any term in subpara- graph (A); ‘‘(bb) the procedures for determining

whether an individual is in compliance with

a requirement under subparagraph (A); and ‘‘(cc) whether an individual is in compliance with a requirement under subparagraph

(A).

‘‘(II) NOT LESS RESTRICTIVE.—A State agency

may not determine a meaning, procedure, or determination under subclause (I) to be less restrictive

than a comparable meaning, procedure, or determination under a State program funded under part

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

601 et seq.).

‘‘(iv) STRIKE AGAINST THE GOVERNMENT.—For the

purpose of subparagraph (A)(v), an employee of the

Federal Government, a State, or a political subdivision

of a State, who is dismissed for participating in a
H. R. 4—251

strike against the Federal Government, the State, or

the political subdivision of the State shall be considered

to have voluntarily quit without good cause. ‘‘(v) SELECTING A HEAD OF HOUSEHOLD.— ‘‘(I) IN GENERAL.—For the purpose of this paragraph, the State agency shall allow the household

to select any adult parent of a child in the household as the head of the household if all adult

household members making application under the

food stamp program agree to the selection. ‘‘(II) TIME FOR MAKING DESIGNATION.—A

household may designate the head of the household

under subclause (I) each time the household is

certified for participation in the food stamp program, but may not change the designation during

a certification period unless there is a change in

the composition of the household.

‘‘(vi) CHANGE IN HEAD OF HOUSEHOLD.—If the head

of a household leaves the household during a period

in which the household is ineligible to participate in

the food stamp program under subparagraph (B)— ‘‘(I) the household shall, if otherwise eligible, become eligible to participate in the food stamp

program; and ‘‘(II) if the head of the household becomes the

head of another household, the household that

becomes headed by the individual shall become

ineligible to participate in the food stamp program

for the remaining period of ineligibility.’’. (b) CONFORMING AMENDMENT.— (1) The second sentence of section 17(b)(2) of the Act (7

U.S.C. 2026(b)(2)) is amended by striking ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’. (2) Section 20 of the Act (7 U.S.C. 2029) is amended by striking subsection (f) and inserting the following:

‘‘(f) DISQUALIFICATION.—An individual or a household may become ineligible under section 6(d)(1) to participate in the food

stamp program for failing to comply with this section.’’.

SEC. 1026. CARETAKER EXEMPTION.

Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)) is amended by striking subparagraph (B) and inserting

the following: ‘‘(B) a parent or other member of a household with

responsibility for the care of (i) a dependent child under the age

of 6 or any lower age designated by the State agency that is

not under the age of 1, or (ii) an incapacitated person;’’.

SEC. 1027. EMPLOYMENT AND TRAINING.

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

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

(1) in subparagraph (A)— (A) by striking ‘‘Not later than April 1, 1987, each’’

and inserting ‘‘Each’’; (B) by inserting ‘‘work,’’ after ‘‘skills, training,’’; and

(C) by adding at the end the following: ‘‘Each component of an employment and training program carried out

under this paragraph shall be delivered through a statewide workforce development system, unless the component
H. R. 4—252

is not available locally through the statewide workforce

development system.’’;

(2) in subparagraph (B)—

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

colon at the end and inserting the following: ‘‘, except

that the State agency shall retain the option to apply

employment requirements prescribed under this subparagraph to a program applicant at the time of application:’’;

(B) in clause (i), by striking ‘‘with terms and conditions’’

and all that follows through ‘‘time of application’’; and

(C) in clause (iv)—

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

(ii) by redesignating subclauses (III) and (IV) as

subclauses (I) and (II), respectively;

(3) in subparagraph (D)—

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

and all that follows through ‘‘30 days or less’’;

(B) in clause (ii), by striking ‘‘but with respect’’ and

all that follows through ‘‘child care’’; and

(C) in clause (iii), by striking ‘‘, on the basis of’’ and

all that follows through ‘‘clause (ii)’’ and inserting ‘‘the

exemption continues to be valid’’;

(4) in subparagraph (E), by striking the third sentence;

(5) in subparagraph (G)—

(A) by striking ‘‘(G)(i) The State’’ and inserting ‘‘(G)

The State’’; and

(B) by striking clause (ii);

(6) in subparagraph (H), by striking ‘‘(H)(i) The Secretary’’ and all that follows through ‘‘(ii) Federal funds’’ and inserting

‘‘(H) Federal funds’’;

(7) in subparagraph (I)(i)(II), by striking ‘‘, or was in operation,’’ and all that follows through ‘‘Social Security Act’’ and

inserting the following: ‘‘), except that no such payment or

reimbursement shall exceed the applicable local market rate’’;

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

the following: ‘‘(K) LIMITATION ON FUNDING.—Notwithstanding any

other provision of this paragraph, the amount of funds

a State agency uses to carry out this paragraph (including

under subparagraph (I)) for participants who are receiving

benefits under a State program funded under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.)

shall not exceed the amount of funds the State agency

used in fiscal year 1995 to carry out this paragraph for

participants who were receiving benefits in fiscal year 1995

under a State program funded under part A of title IV

of the Act (42 U.S.C. 601 et seq.).’’; and

(B) by redesignating subparagraphs (M) and (N) as subparagraphs (L) and (M), respectively; and

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

(8)(B)—

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

‘‘(L) The Secretary’’; and

(B) by striking clause (ii).

(b) FUNDING.—Section 16(h) of the Act (7 U.S.C. 2025(h)) is

amended by striking ‘‘(h)(1)(A) The Secretary’’ and all that follows

through the end of paragraph (1) and inserting the following:
H. R. 4—253

‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.—

‘‘(1) IN GENERAL.—

‘‘(A) AMOUNTS.—To carry out employment and training

programs, the Secretary shall reserve for allocation to State

agencies from funds made available for each fiscal year

under section 18(a)(1) the amount of—

‘‘(i) for fiscal year 1996, $77,000,000;

‘‘(ii) for fiscal year 1997, $79,000,000;

‘‘(iii) for fiscal year 1998, $81,000,000;

‘‘(iv) for fiscal year 1999, $84,000,000;

‘‘(v) for fiscal year 2000, $86,000,000;

‘‘(vi) for fiscal year 2001, $88,000,000; and

‘‘(vii) for fiscal year 2002, $90,000,000.

‘‘(B) ALLOCATION.—The Secretary shall allocate the

amounts reserved under subparagraph (A) among the State

agencies using a reasonable formula (as determined by

the Secretary) that gives consideration to the population

in each State affected by section 6(o).

‘‘(C) REALLOCATION.—

‘‘(i) NOTIFICATION.—A State agency shall promptly

notify the Secretary if the State agency determines

that the State agency will not expend all of the funds

allocated to the State agency under subparagraph (B).

‘‘(ii) REALLOCATION.—On notification under clause

(i), the Secretary shall reallocate the funds that the

State agency will not expend as the Secretary considers

appropriate and equitable.

‘‘(D) MINIMUM ALLOCATION.—Notwithstanding subparagraphs (A) through (C), the Secretary shall ensure

that each State agency operating an employment and training program shall receive not less than $50,000 in each

fiscal year.’’.

(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2) of the Act

(7 U.S.C. 2025(h)(2)) is amended by inserting before the period

at the end the following: ‘‘, including the costs for case management

and casework to facilitate the transition from economic dependency

to self-sufficiency through work’’.

(d) REPORTS.—Section 16(h) of the Act (7 U.S.C. 2025(h)) is

amended—

(1) in paragraph (5)—

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

‘‘(5) The Secretary’’; and

(B) by striking subparagraph (B); and

(2) by striking paragraph (6).

SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977

(7 U.S.C. 2015) is amended—

(1) by redesignating subsection (i), as added by section

107, as subsection (p); and

(2) by inserting after subsection (h) the following:

‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICATION.—

‘‘(1) IN GENERAL.—If a disqualification is imposed on a

member of a household for a failure of the member to perform

an action required under a Federal, State, or local law relating

to a means-tested public assistance program, the State agency
H. R. 4—254

may impose the same disqualification on the member of the

household under the food stamp program. ‘‘(2) RULES AND PROCEDURES.—If a disqualification is imposed under paragraph (1) for a failure of an individual

to perform an action required under part A of title IV of

the Social Security Act (42 U.S.C. 601 et seq.), the State agency

may use the rules and procedures that apply under part A

of title IV of the Act to impose the same disqualification under

the food stamp program. ‘‘(3) APPLICATION AFTER DISQUALIFICATION PERIOD.—A

member of a household disqualified under paragraph (1) may,

after the disqualification period has expired, apply for benefits

under this Act and shall be treated as a new applicant, except

that a prior disqualification under subsection (d) shall be considered in determining eligibility.’’.

(b) STATE PLAN PROVISIONS.—Section 11(e) of the Act (7 U.S.C.

2020(e)) is amended—

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

(2) in paragraph (25), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following:

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

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

(7 U.S.C. 2015(d)(2)(A)) is amended by striking ‘‘that is comparable

to a requirement of paragraph (1)’’.

SEC. 1029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD

STAMP BENEFITS.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),

as amended by section 1028, is further amended by inserting after

subsection (i) the following: ‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP

BENEFITS.—An individual shall be ineligible to participate in the food stamp program as a member of any household for a 10-

year period if the individual is found by a State agency to have

made, or is convicted in a Federal or State court of having made,

a fraudulent statement or representation with respect to the identity or place of residence of the individual in order to receive

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

SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),

as amended by section 1029, is further amended by inserting after

subsection (j) the following: ‘‘(k) DISQUALIFICATION OF FLEEING FELONS.—No member of

a household who is otherwise eligible to participate in the food

stamp program shall be eligible to participate in the program as

a member of that or any other household during any period during

which the individual is—

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

after conviction, under the law of the place from which the

individual is fleeing, for a crime, or attempt to commit a crime,

that is a felony under the law of the place from which the

individual is fleeing or that, in the case of New Jersey, is

a high misdemeanor under the law of New Jersey; or

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

under a Federal or State law.’’.
H. R. 4—255

SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),

as amended by section 1030, is further amended by inserting after

subsection (k) the following:

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

AGENCIES.—

‘‘(1) IN GENERAL.—At the option of a State agency, subject

to paragraphs (2) and (3), no natural or adoptive parent or

other individual (collectively referred to in this subsection as

‘the individual’) who is living with and exercising parental

control over a child under the age of 18 who has an absent

parent shall be eligible to participate in the food stamp program

unless the individual cooperates with the State agency administering the program established under part D of title IV of

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

‘‘(A) in establishing the paternity of the child (if the

child is born out of wedlock); and

‘‘(B) in obtaining support for—

‘‘(i) the child; or

‘‘(ii) the individual and the child.

‘‘(2) GOOD CAUSE FOR NONCOOPERATION.—Paragraph (1)

shall not apply to the individual if good cause is found for

refusing to cooperate, as determined by the State agency in

accordance with standards prescribed by the Secretary in consultation with the Secretary of Health and Human Services.

The standards shall take into consideration circumstances

under which cooperation may be against the best interests

of the child.

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

of a fee or other cost for services provided under part D of

title IV of the Social Security Act (42 U.S.C. 651 et seq.).

‘‘(m) NON-CUSTODIAL PARENT’S COOPERATION WITH CHILD SUPPORT AGENCIES.—

‘‘(1) IN GENERAL.—At the option of a State agency, subject

to paragraphs (2) and (3), a putative or identified non-custodial

parent of a child under the age of 18 (referred to in this

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

in the food stamp program if the individual refuses to cooperate

with the State agency administering the program established

under part D of title IV of the Social Security Act (42 U.S.C.

651 et seq.)—

‘‘(A) in establishing the paternity of the child (if the

child is born out of wedlock); and

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

‘‘(2) REFUSAL TO COOPERATE.—

‘‘(A) GUIDELINES.—The Secretary, in consultation with

the Secretary of Health and Human Services, shall develop

guidelines on what constitutes a refusal to cooperate under

paragraph (1).

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

procedures, using guidelines developed under subparagraph

(A), for determining whether an individual is refusing to

cooperate under paragraph (1).

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

of a fee or other cost for services provided under part D of

title IV of the Social Security Act (42 U.S.C. 651 et seq.).
H. R. 4—256

‘‘(4) PRIVACY.—The State agency shall provide safeguards to restrict the use of information collected by a State agency

administering the program established under part D of title

IV of the Social Security Act (42 U.S.C. 651 et seq.) to purposes

for which the information is collected.’’.

SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUPPORT

ARREARS.

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),

as amended by section 1031, is further amended by inserting after

subsection (m) the following: ‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.— ‘‘(1) IN GENERAL.—No individual shall be eligible to partici- pate in the food stamp program as a member of any household

during any month that the individual is delinquent in any

payment due under a court order for the support of a child

of the individual.

‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply if— ‘‘(A) a court is allowing the individual to delay payment; or

‘‘(B) the individual is complying with a payment plan approved by a court or the State agency designated under

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

651 et seq.) to provide support for the child of the individual.’’.

SEC. 1033. WORK REQUIREMENT.

(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 1032, is further amended

by inserting after subsection (n) the following: ‘‘(o) WORK REQUIREMENT.— ‘‘(1) DEFINITION OF WORK PROGRAM.—In this subsection,

the term ‘work program’ means— ‘‘(A) a program under the Job Training Partnership Act (29 U.S.C. 1501 et seq.); ‘‘(B) a program under section 236 of the Trade Act of 1974 (19 U.S.C. 2296); or

‘‘(C) a program of employment or training operated or supervised by a State or political subdivision of a State

that meets standards approved by the Governor of the

State, including a program under section 6(d)(4), other

than a job search program or a job search training program.

‘‘(2) WORK REQUIREMENT.—Subject to the other provisions of this subsection, no individual shall be eligible to participate

in the food stamp program as a member of any household

if, during the preceding 12-month period, the individual

received food stamp benefits for not less than 4 months during

which the individual did not—

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

monthly; or ‘‘(B) participate in and comply with the requirements

of a work program for 20 hours or more per week, as

determined by the State agency; or ‘‘(C) participate in a program under section 20 or a

comparable program established by a State or political

subdivision of a State.

‘‘(3) EXCEPTION.—Paragraph (2) shall not apply to an

individual if the individual is—
H. R. 4—257

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

‘‘(B) medically certified as physically or mentally unfit

for employment;

‘‘(C) a parent or other member of a household with

responsibility for a dependent child;

‘‘(D) otherwise exempt under section 6(d)(2); or

‘‘(E) a pregnant woman.

‘‘(4) WAIVER.—

‘‘(A) IN GENERAL.—On the request of a State agency,

the Secretary may waive the applicability of paragraph

(2) to any group of individuals in the State if the Secretary

makes a determination that the area in which the individuals reside—

‘‘(i) has an unemployment rate of over 10 percent;

or

‘‘(ii) does not have a sufficient number of jobs

to provide employment for the individuals.

‘‘(B) REPORT.—The Secretary shall report the basis for

a waiver under subparagraph (A) to the Committee on

Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of the

Senate.

‘‘(5) SUBSEQUENT ELIGIBILITY.—

‘‘(A) IN GENERAL.—Paragraph (2) shall cease to apply

to an individual if, during a 30-day period, the individual—

‘‘(i) works 80 or more hours;

‘‘(ii) participates in and complies with the requirements of a work program for 80 or more hours, as

determined by a State agency; or ‘‘(iii) participates in a program under section 20

or a comparable program established by a State or

political subdivision of a State.

‘‘(B) LIMITATION.—During the subsequent 12-month

period, the individual shall be eligible to participate in

the food stamp program for not more than 4 months during

which the individual does not—

‘‘(i) work 20 hours or more per week, averaged

monthly; ‘‘(ii) participate in and comply with the requirements of a work program for 20 hours or more per

week, as determined by the State agency; or ‘‘(iii) participate in a program under section 20

or a comparable program established by a State or

political subdivision of a State.’’.

(b) TRANSITION PROVISION.—Prior to 1 year after the date of

enactment of this Act, the term ‘‘preceding 12-month period’’ in

section 6(o) of the Food Stamp Act of 1977, as amended by subsection (a), means the preceding period that begins on the date

of enactment of this Act.

SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

(a) IN GENERAL.—Section 7(i) of the Food Stamp Act of 1977

(7 U.S.C. 2016(i)) is amended—

(1) by striking paragraph (1) and inserting the following:

‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—

‘‘(A) IMPLEMENTATION.—Each State agency shall implement an electronic benefit transfer system in which house-
H. R. 4—258

hold benefits determined under section 8(a) or 24 are issued

from and stored in a central databank before October 1,

2002, unless the Secretary provides a waiver for a State

agency that faces unusual barriers to implementing an

electronic benefit transfer system.

‘‘(B) TIMELY IMPLEMENTATION.—State agencies are

encouraged to implement an electronic benefit transfer system under subparagraph (A) as soon as practicable.

‘‘(C) STATE FLEXIBILITY.—Subject to paragraph (2), a

State agency may procure and implement an electronic

benefit transfer system under the terms, conditions, and

design that the State agency considers appropriate.

‘‘(D) OPERATION.—An electronic benefit transfer system

should take into account generally accepted standard

operating rules based on—

‘‘(i) commercial electronic funds transfer technology;

‘‘(ii) the need to permit interstate operation and

law enforcement monitoring; and

‘‘(iii) the need to permit monitoring and investigations by authorized law enforcement agencies.’’;

(2) in paragraph (2)—

(A) by striking ‘‘effective no later than April 1, 1992,’’;

(B) in subparagraph (A)—

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

(ii) by striking ‘‘on-line’’;

(C) by striking subparagraph (D) and inserting the

following:

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

using the most recent technology available that the State

agency considers appropriate and cost effective and which

may include personal identification numbers, photographic

identification on electronic benefit transfer cards, and other

measures to protect against fraud and abuse; and

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

date of this clause, to the extent practicable, measures

that permit a system to differentiate items of food that

may be acquired with an allotment from items of food

that may not be acquired with an allotment.’’;

(D) in subparagraph (G), by striking ‘‘and’’ at the end;

(E) in subparagraph (H), by striking the period at

the end and inserting ‘‘; and’’; and

(F) by adding at the end the following:

‘‘(I) procurement standards.’’; and

(3) by adding at the end the following:

‘‘(7) REPLACEMENT OF BENEFITS.—Regulations issued by

the Secretary regarding the replacement of benefits and liability

for replacement of benefits under an electronic benefit transfer

system shall be similar to the regulations in effect for a paper

food stamp issuance system.

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

a charge for replacement of an electronic benefit transfer card

by reducing the monthly allotment of the household receiving

the replacement card.

‘‘(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION.—
H. R. 4—259

‘‘(A) IN GENERAL.—A State agency may require that

an electronic benefit card contain a photograph of 1 or

more members of a household.

‘‘(B) OTHER AUTHORIZED USERS.—If a State agency

requires a photograph on an electronic benefit card under

subparagraph (A), the State agency shall establish procedures to ensure that any other appropriate member of

the household or any authorized representative of the

household may utilize the card.’’.

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

a State that operates an electronic benefit transfer system under

the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate

the system in a manner that is compatible with electronic benefit

transfer systems operated by other States.

SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

The proviso in section 8(a) of the Food Stamp Act of 1977

(7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall be adjusted’’

and all that follows through ‘‘$5’’.

SEC. 1036. BENEFITS ON RECERTIFICATION.

Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.

2017(c)(2)(B)) is amended by striking ‘‘of more than one month’’.

SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED

HOUSEHOLDS.

Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c))

is amended by striking paragraph (3) and inserting the following:

‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED

HOUSEHOLDS.—A State agency may provide to an eligible household applying after the 15th day of a month, in lieu of the

initial allotment of the household and the regular allotment

of the household for the following month, an allotment that

is equal to the total amount of the initial allotment and the

first regular allotment. The allotment shall be provided in

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

that is not entitled to expedited service and in accordance

with paragraphs (3) and (9) of section 11(e) in the case of

a household that is entitled to expedited service.’’.

SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC

ASSISTANCE PROGRAMS.

Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)

is amended by striking subsection (d) and inserting the following: ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS.— ‘‘(1) IN GENERAL.—If the benefits of a household are reduced

under a Federal, State, or local law relating to a means-tested

public assistance program for the failure of a member of the

household to perform an action required under the law or

program, for the duration of the reduction—

‘‘(A) the household may not receive an increased allotment as the result of a decrease in the income of the

household to the extent that the decrease is the result

of the reduction; and

‘‘(B) the State agency may reduce the allotment of

the household by not more than 25 percent.

‘‘(2) RULES AND PROCEDURES.—If the allotment of a household is reduced under this subsection for a failure to perform
H. R. 4—260

an action required under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.), the State agency may use the

rules and procedures that apply under part A of title IV of

the Act to reduce the allotment under the food stamp program.’’.

SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)

is amended by adding at the end the following:

‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.—

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

in a center for the purpose of a drug or alcoholic treatment

program described in the last sentence of section 3(i), a State

agency may provide an allotment for the individual to—

‘‘(A) the center as an authorized representative of the

individual for a period that is less than 1 month; and

‘‘(B) the individual, if the individual leaves the center.

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

individual referred to in paragraph (1) to designate the center

in which the individual resides as the authorized representative

of the individual for the purpose of receiving an allotment.’’.

SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD

STORES AND WHOLESALE FOOD CONCERNS.

Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.

2018(a)(1)) is amended by adding at the end the following: ‘‘No

retail food store or wholesale food concern of a type determined

by the Secretary, based on factors that include size, location, and

type of items sold, shall be approved to be authorized or reauthorized for participation in the food stamp program unless an authorized employee of the Department of Agriculture, a designee of

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

government designated by the Secretary has visited the store or

concern for the purpose of determining whether the store or concern

should be approved or reauthorized, as appropriate.’’.

SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a))

is amended by adding at the end the following: ‘‘(3) AUTHORIZATION PERIODS.—The Secretary shall establish specific time periods during which authorization to accept

and redeem coupons, or to redeem benefits through an electronic benefit transfer system, shall be valid under the food

stamp program.’’.

SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR

AUTHORIZATION.

Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c))

is amended—

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

relevant income and sales tax filing documents,’’ after ‘‘submit

information’’; and

(2) by inserting after the first sentence the following: ‘‘The

regulations may require retail food stores and wholesale food

concerns to provide written authorization for the Secretary

to verify all relevant tax filings with appropriate agencies and

to obtain corroborating documentation from other sources so

that the accuracy of information provided by the stores and

concerns may be verified.’’.
H. R. 4—261

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

AUTHORIZATION CRITERIA.

Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d))

is amended by adding at the end the following: ‘‘A retail food

store or wholesale food concern that is denied approval to accept

and redeem coupons because the store or concern does not meet

criteria for approval established by the Secretary may not, for

at least 6 months, submit a new application to participate in the

program. The Secretary may establish a longer time period under

the preceding sentence, including permanent disqualification, that

reflects the severity of the basis of the denial.’’.

SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020),

as amended by section 1020(b), is further amended—

(1) in subsection (e)—

(A) by striking paragraph (2) and inserting the following:

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

governing the operation of food stamp offices that the State

agency determines best serve households in the State, including

households with special needs, such as households with elderly

or disabled members, households in rural areas with low-income

members, homeless individuals, households residing on reservations, and households in areas in which a substantial number

of members of low-income households speak a language other

than English.

‘‘(B) In carrying out subparagraph (A), a State agency— ‘‘(i) shall provide timely, accurate, and fair service to

applicants for, and participants in, the food stamp program; ‘‘(ii) shall develop an application containing the

information necessary to comply with this Act; ‘‘(iii) shall permit an applicant household to apply to

participate in the program on the same day that the household first contacts a food stamp office in person during

office hours;

‘‘(iv) shall consider an application that contains the

name, address, and signature of the applicant to be filed

on the date the applicant submits the application;

‘‘(v) shall require that an adult representative of each

applicant household certify in writing, under penalty of

perjury, that— ‘‘(I) the information contained in the application

is true; and

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

or are aliens eligible to receive food stamps under

section 6(f);

‘‘(vi) shall provide a method of certifying and issuing

coupons to eligible homeless individuals, to ensure that

participation in the food stamp program is limited to

eligible households; and

‘‘(vii) may establish operating procedures that vary

for local food stamp offices to reflect regional and local

differences within the State.

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

provided and maintained electronically, storage of records using

automated retrieval systems only, or any other feature of a
H. R. 4—262

State agency’s application system that does not rely exclusively

on the collection and retention of paper applications or other

records.

‘‘(D) The signature of any adult under this paragraph shall be considered sufficient to comply with any provision of Federal

law requiring a household member to sign an application or

statement.’’;

(B) in paragraph (3)— (i) by striking ‘‘shall—’’ and all that follows through ‘‘provide each’’ and inserting ‘‘shall provide each’’; and (ii) by striking ‘‘(B) assist’’ and all that follows through ‘‘representative of the State agency;’’;

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

(D)(i) by redesignating paragraphs (15) through (24) as paragraphs (14) through (23), respectively; and (ii) by redesignating paragraph (26) as paragraph (24); and

(2) in subsection (i)—

(A) by striking ‘‘(i) Notwithstanding’’ and all that fol- lows through ‘‘(2)’’ and inserting the following: ‘‘(i) APPLICATION AND DENIAL PROCEDURES.— ‘‘(1) APPLICATION PROCEDURES.—Notwithstanding any other provision of law,’’; and (B) by striking ‘‘; (3) households’’ and all that follows through ‘‘title IV of the Social Security Act. No’’ and inserting a period and the following:

‘‘(2) DENIAL AND TERMINATION.—Other than in a case of

disqualification as a penalty for failure to comply with a public

assistance program rule or regulation, no’’.

SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(6)) is amended—

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

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

(3) in subparagraph (B), by striking ‘‘United States Civil Service Commission’’ and inserting ‘‘Office of Personnel

Management’’; and (4) by striking subparagraphs (C) through (E).

SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)) is amended—

(1) by striking ‘‘that (A) such’’ and inserting the following: ‘‘that—

‘‘(A) the’’;

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

the following: ‘‘law; ‘‘(B) notwithstanding’’; (3) by striking ‘‘Act, and (C) such’’ and inserting the following: ‘‘Act;‘‘(C) the’’; and

(4) by adding at the end the following:

‘‘(D) notwithstanding any other provision of law, the

address, social security number, and, if available, photograph of any member of a household shall be made avail-
H. R. 4—263

able, on request, to any Federal, State, or local law enforcement officer if the officer furnishes the State agency with

the name of the member and notifies the agency that—

‘‘(i) the member—

‘‘(I) is fleeing to avoid prosecution, or custody

or confinement after conviction, for a crime (or

attempt to commit a crime) that, under the law

of the place the member is fleeing, is a felony

(or, in the case of New Jersey, a high misdemeanor), or is violating a condition of probation

or parole imposed under Federal or State law;

or

‘‘(II) has information that is necessary for the

officer to conduct an official duty related to

subclause (I);

‘‘(ii) locating or apprehending the member is an

official duty; and

‘‘(iii) the request is being made in the proper exercise of an official duty; and

‘‘(E) the safeguards shall not prevent compliance with

paragraph (16);’’.

SEC. 1047. EXPEDITED COUPON SERVICE.

Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.

2020(e)(9)) is amended—

(1) in subparagraph (A)—

(A) by striking ‘‘five days’’ and inserting ‘‘7 days’’; and

(B) by inserting ‘‘and’’ at the end; (2) by striking subparagraphs (B) and (C);

(3) by redesignating subparagraph (D) as subparagraph (B); and

(4) in subparagraph (B), as redesignated by paragraph (3), by striking ‘‘, (B), or (C)’’.

SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C.

2020(e)(10)) is amended by inserting before the semicolon at the

end a period and the following: ‘‘At the option of a State, at any

time prior to a fair hearing determination under this paragraph,

a household may withdraw, orally or in writing, a request by

the household for the fair hearing. If the withdrawal request is

an oral request, the State agency shall provide a written notice

to the household confirming the withdrawal request and providing

the household with an opportunity to request a hearing’’.

SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION SYSTEMS.

Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020)

is amended—

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

1044(1)(D)—

(A) by striking ‘‘that information is’’ and inserting ‘‘at

the option of the State agency, that information may be’’;

and

(B) by striking ‘‘shall be requested’’ and inserting ‘‘may

be requested’’; and

(2) by adding at the end the following:
H. R. 4—264

‘‘(p) STATE VERIFICATION OPTION.—Notwithstanding any other

provision of law, in carrying out the food stamp program, a State

agency shall not be required to use an income and eligibility or

an immigration status verification system established under section

1137 of the Social Security Act (42 U.S.C. 1320b–7).’’.

SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY

SUBMIT FALSIFIED APPLICATIONS.

Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b))

is amended—

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

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

and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(4) for a reasonable period of time to be determined by

the Secretary, including permanent disqualification, on the

knowing submission of an application for the approval or

reauthorization to accept and redeem coupons that contains

false information about a substantive matter that was a part

of the application.’’.

SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE WIC PROGRAM.

Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021)

is amended by adding at the end the following:

‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED

UNDER THE WIC PROGRAM.—

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

providing criteria for the disqualification under this Act of

an approved retail food store and a wholesale food concern

that is disqualified from accepting benefits under the special

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

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

‘‘(2) TERMS.—A disqualification under paragraph (1)— ‘‘(A) shall be for the same length of time as the disquali- fication from the program referred to in paragraph (1); ‘‘(B) may begin at a later date than the disqualification from the program referred to in paragraph (1); and ‘‘(C) notwithstanding section 14, shall not be subject

to judicial or administrative review.’’.

SEC. 1052. COLLECTION OF OVERISSUANCES.

(a) COLLECTION OF OVERISSUANCES.—Section 13 of the Food

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

(1) by striking subsection (b) and inserting the following:

‘‘(b) COLLECTION OF OVERISSUANCES.—

‘‘(1) IN GENERAL.—Except as otherwise provided in this

subsection, a State agency shall collect any overissuance of

coupons issued to a household by—

‘‘(A) reducing the allotment of the household;

‘‘(B) withholding amounts from unemployment compensation from a member of the household under subsection (c);

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

tax refund under subsection (d); or

‘‘(D) any other means.
H. R. 4—265

‘‘(2) COST EFFECTIVENESS.—Paragraph (1) shall not apply

if the State agency demonstrates to the satisfaction of the

Secretary that all of the means referred to in paragraph (1)

are not cost effective.

‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—If a household

received an overissuance of coupons without any member of

the household being found ineligible to participate in the program under section 6(b)(1) and a State agency elects to reduce

the allotment of the household under paragraph (1)(A), the

State agency shall not reduce the monthly allotment of the

household under paragraph (1)(A) by an amount in excess

of the greater of—

‘‘(A) 10 percent of the monthly allotment of the household; or

‘‘(B) $10.

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

overissuance of coupons issued to a household under paragraph

(1) in accordance with the requirements established by the

State agency for providing notice, electing a means of payment,

and establishing a time schedule for payment.’’; and

(2) in subsection (d)—

(A) by striking ‘‘as determined under subsection (b)

and except for claims arising from an error of the State

agency,’’ and inserting ‘‘, as determined under subsection

(b)(1),’’; and

(B) by inserting before the period at the end the following: ‘‘or a Federal income tax refund as authorized by

section 3720A of title 31, United States Code’’.

(b) CONFORMING AMENDMENTS.—Section 11(e)(8) of the Act (7

U.S.C. 2020(e)(8)) is amended—

(1) by striking ‘‘and excluding claims’’ and all that follows

through ‘‘such section’’; and

(2) by inserting before the semicolon at the end the following: ‘‘or a Federal income tax refund as authorized by section

3720A of title 31, United States Code’’.

(c) RETENTION RATE.—Section 16(a) of the Act (7 U.S.C. 2025(a))

is amended by striking ‘‘25 percent during the period beginning

October 1, 1990’’ and all that follows through ‘‘error of a State

agency’’ and inserting the following: ‘‘25 percent of the overissuances

collected by the State agency under section 13, except those

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

SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM

REQUIREMENTS PENDING ADMINISTRATIVE AND

JUDICIAL REVIEW.

Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a))

is amended—

(1) by redesignating the first through seventeenth sentences as paragraphs (1) through (17), respectively; and

(2) by adding at the end the following:

‘‘(18) SUSPENSION OF STORES PENDING REVIEW.—Notwithstanding any other provision of this subsection, any permanent

disqualification of a retail food store or wholesale food concern

under paragraph (3) or (4) of section 12(b) shall be effective

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

the disqualification is reversed through administrative or
H. R. 4—266

judicial review, the Secretary shall not be liable for the value

of any sales lost during the disqualification period.’’.

SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD STAMP

TRAFFICKING.—The first sentence of section 15(g) of the Food Stamp

Act of 1977 (7 U.S.C. 2024(g)) is amended by striking ‘‘or intended

to be furnished’’.

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

2024) is amended by adding at the end the following:

‘‘(h) CRIMINAL FORFEITURE.—

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

convicted of an offense in violation of subsection (b) or (c),

a court shall order, in addition to any other sentence imposed

under this subsection, that the person forfeit to the United

States all property described in paragraph (2).

‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All property, real

and personal, used in a transaction or attempted transaction,

to commit, or to facilitate the commission of, a violation (other

than a misdemeanor) of subsection (b) or (c), or proceeds traceable to a violation of subsection (b) or (c), shall be subject

to forfeiture to the United States under paragraph (1).

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

be forfeited under this subsection as the result of any act

or omission established by the owner of the interest to have

been committed or omitted without the knowledge or consent

of the owner.

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

property and any monies forfeited under this subsection shall

be used—

‘‘(A) first, to reimburse the Department of Justice for

the costs incurred by the Department to initiate and complete the forfeiture proceeding; ‘‘(B) second, to reimburse the Department of Agriculture Office of Inspector General for any costs the Office

incurred in the law enforcement effort resulting in the

forfeiture;

‘‘(C) third, to reimburse any Federal or State law

enforcement agency for any costs incurred in the law

enforcement effort resulting in the forfeiture; and ‘‘(D) fourth, by the Secretary to carry out the approval,

reauthorization, and compliance investigations of retail

stores and wholesale food concerns under section 9.’’.

SEC. 1055. LIMITATION OF FEDERAL MATCH.

Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C.

2025(a)(4)) is amended by inserting after the comma at the end

the following: ‘‘but not including recruitment activities,’’.

SEC. 1056. STANDARDS FOR ADMINISTRATION.

(a) IN GENERAL.—Section 16 of the Food Stamp Act of 1977

(7 U.S.C. 2025) is amended by striking subsection (b).

(b) CONFORMING AMENDMENTS.—

(1) The first sentence of section 11(g) of the Act (7 U.S.C.

2020(g)) is amended by striking ‘‘the Secretary’s standards for

the efficient and effective administration of the program established under section 16(b)(1) or’’.
H. R. 4—267

(2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B))

is amended by striking ‘‘pursuant to subsection (b)’’.

SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025),

as amended by section 1056(a), is further amended by inserting

after subsection (a) the following:

‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM.—

‘‘(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT

PROGRAM.—In this subsection, the term ‘work supplementation

or support program’ means a program under which, as determined by the Secretary, public assistance (including any benefits provided under a program established by the State and

the food stamp program) is provided to an employer to be

used for hiring and employing a public assistance recipient

who was not employed by the employer at the time the public

assistance recipient entered the program.

‘‘(2) PROGRAM.—A State agency may elect to use an amount

equal to the allotment that would otherwise be issued to a

household under the food stamp program, but for the operation

of this subsection, for the purpose of subsidizing or supporting

a job under a work supplementation or support program established by the State.

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

under paragraph (2) and identifies each household that participates in the food stamp program that contains an individual

who is participating in the work supplementation or support

program—‘‘(A) the Secretary shall pay to the State agency an

amount equal to the value of the allotment that the household would be eligible to receive but for the operation

of this subsection;

‘‘(B) the State agency shall expend the amount received under subparagraph (A) in accordance with the work

supplementation or support program in lieu of providing

the allotment that the household would receive but for

the operation of this subsection;

‘‘(C) for purposes of—

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

this subsection shall be excluded from household

income and resources; and

‘‘(ii) section 8(b), the amount received under this

subsection shall be considered to be the value of an

allotment provided to the household; and

‘‘(D) the household shall not receive an allotment from

the State agency for the period during which the member

continues to participate in the work supplementation or

support program.

‘‘(4) OTHER WORK REQUIREMENTS.—No individual shall be

excused, by reason of the fact that a State has a work

supplementation or support program, from any work requirement under section 6(d), except during the periods in which

the individual is employed under the work supplementation

or support program.

‘‘(5) LENGTH OF PARTICIPATION.—A State agency shall provide a description of how the public assistance recipients in

the program shall, within a specific period of time, be moved
H. R. 4—268

from supplemented or supported employment to employment

that is not supplemented or supported.

‘‘(6) DISPLACEMENT.—A work supplementation or support

program shall not displace the employment of individuals who

are not supplemented or supported.’’.

SEC. 1058. WAIVER AUTHORITY.

Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.

2026(b)(1)) is amended—

(1) by redesignating subparagraph (B) as subparagraph

(C); and

(2) in subparagraph (A)—

(A) by striking the second sentence; and

(B) by striking ‘‘benefits to eligible households, including’’ and inserting the following: ‘‘benefits to eligible households, and may waive any requirement of this Act to the

extent necessary for the project to be conducted.

‘‘(B) PROJECT REQUIREMENTS.—

‘‘(i) PROGRAM GOAL.—The Secretary may not conduct a project under subparagraph (A) unless the

project is consistent with the goal of the food stamp

program of providing food assistance to raise levels

of nutrition among low-income individuals.

‘‘(ii) PERMISSIBLE PROJECTS.—The Secretary may

conduct a project under subparagraph (A) to—

‘‘(I) improve program administration;

‘‘(II) increase the self-sufficiency of food stamp

recipients;

‘‘(III) test innovative welfare reform strategies;

and

‘‘(IV) allow greater conformity with the rules

of other programs than would be allowed but for

this paragraph.

‘‘(iii) IMPERMISSIBLE PROJECTS.—The Secretary may not conduct a project under subparagraph (A)

that—

‘‘(I) involves the payment of the value of an

allotment in the form of cash, unless the project

was approved prior to the date of enactment of

this subparagraph; ‘‘(II) substantially transfers funds made available under this Act to services or benefits provided

primarily through another public assistance program; or ‘‘(III) is not limited to a specific time period.

‘‘(iv) ADDITIONAL INCLUDED PROJECTS.—Pilot or

experimental projects may include’’.

SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.

Section 17(b)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C.

2026(b)(1)(B)), as amended by section 1058, is further amended—

(1) in clause (iv), by striking ‘‘coupons. Any pilot’’ and

inserting the following: ‘‘coupons.

‘‘(v) CASH PAYMENT PILOT PROJECTS.—Any pilot’’;

and

(2) in clause (v), as so amended, by striking ‘‘1995’’ and

inserting ‘‘2002’’.
H. R. 4—269

SEC. 1060. RESPONSE TO WAIVERS.

Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.

2026(b)(1)), as amended by section 1058, is further amended by

adding at the end the following:

‘‘(D) RESPONSE TO WAIVERS.—

‘‘(i) RESPONSE.—Not later than 60 days after the

date of receiving a request for a waiver under subparagraph (A), the Secretary shall provide a response that—

‘‘(I) approves the waiver request;

‘‘(II) denies the waiver request and explains

any modification needed for approval of the waiver

request;

‘‘(III) denies the waiver request and explains

the grounds for the denial; or

‘‘(IV) requests clarification of the waiver

request.

‘‘(ii) FAILURE TO RESPOND.—If the Secretary does

not provide a response in accordance with clause (i),

the waiver shall be considered approved, unless the

approval is specifically prohibited by this Act.

‘‘(iii) NOTICE OF DENIAL.—On denial of a waiver

request under clause (i)(III), the Secretary shall provide a copy of the waiver request and a description

of the reasons for the denial to the Committee on

Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of

the Senate.’’.

SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.

Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)

is amended by striking subsection (d) and inserting the following:

‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—

‘‘(1) ELECTION TO PARTICIPATE.—

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

this subsection, a State may elect to carry out an employment initiatives program under this subsection.

‘‘(B) REQUIREMENT.—A State shall be eligible to carry

out an employment initiatives program under this subsection only if not less than 50 percent of the households

that received food stamp benefits during the summer of

1993 also received benefits under a State program funded

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

U.S.C. 601 et seq.) during the summer of 1993.

‘‘(2) PROCEDURE.—

‘‘(A) IN GENERAL.—A State that has elected to carry

out an employment initiatives program under paragraph

(1) may use amounts equal to the food stamp allotments

that would otherwise be issued to a household under the

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

allotments to the household if the household is eligible

under paragraph (3).

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

that has elected to carry out an employment initiatives

program under paragraph (1) an amount equal to the value

of the allotment that each household would be eligible
H. R. 4—270

to receive under this Act but for the operation of this

subsection.

‘‘(C) OTHER PROVISIONS.—For purposes of the food

stamp program (other than this subsection)—

‘‘(i) cash assistance under this subsection shall

be considered to be an allotment; and

‘‘(ii) each household receiving cash benefits under

this subsection shall not receive any other food stamp

benefit for the period for which the cash assistance

is provided.

‘‘(D) ADDITIONAL PAYMENTS.—Each State that has

elected to carry out an employment initiatives program

under paragraph (1) shall—

‘‘(i) increase the cash benefits provided to each

household under this subsection to compensate for any

State or local sales tax that may be collected on purchases of food by any household receiving cash benefits

under this subsection, unless the Secretary determines

on the basis of information provided by the State that

the increase is unnecessary on the basis of the limited

nature of the items subject to the State or local sales

tax; and

‘‘(ii) pay the cost of any increase in cash benefits

required by clause (i).

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

cash benefits under paragraph (2) if an adult member of the

household—

‘‘(A) has worked in unsubsidized employment for not

less than the preceding 90 days; ‘‘(B) has earned not less than $350 per month from

the employment referred to in subparagraph (A) for not

less than the preceding 90 days; ‘‘(C)(i) is receiving benefits under a State program

funded under part A of title IV of the Social Security

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

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

funded under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.) at the time the member first

received cash benefits under this subsection and is no

longer eligible for the State program because of earned

income;

‘‘(D) is continuing to earn not less than $350 per month from the employment referred to in subparagraph (A); and ‘‘(E) elects to receive cash benefits in lieu of food stamp

benefits under this subsection.

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

this subsection for 2 years shall provide to the Secretary a

written evaluation of the impact of cash assistance under this

subsection. The State agency, with the concurrence of the Secretary, shall determine the content of the evaluation.’’.

SEC. 1062. ADJUSTABLE FOOD STAMP CAP.

Section 18 of the Food Stamp Act of 1977 (7 U.S.C. 2027)

is amended—

(1) in subsection (a)(1)—

(A) in the first sentence, by striking ‘‘1991 through

1995’’ and inserting ‘‘1996 through 2002’’; and
H. R. 4—271

(B) in the last sentence, by striking ‘‘In each monthly

report, the Secretary shall also state’’ and inserting the

following: ‘‘The Secretary shall file a report each February

15, April 15, and July 15, stating’’; and

(2) by striking subsection (b) and inserting the following:

‘‘(b) LIMITATION ON FOOD STAMP ALLOTMENTS.—

‘‘(1) OBLIGATIONS.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, except as provided in subparagraphs (B) and

(C), obligations to carry out this Act shall not exceed—

‘‘(i) $25,443,000,000 for fiscal year 1996;

‘‘(ii) $24,636,000,000 for fiscal year 1997;

‘‘(iii) $25,319,000,000 for fiscal year 1998;

‘‘(iv) $26,307,000,000 for fiscal year 1999;

‘‘(v) $27,568,000,000 for fiscal year 2000;

‘‘(vi) $28,602,000,000 for fiscal year 2001; and

‘‘(vii) $29,804,000,000 for fiscal year 2002.

‘‘(B) COST OF FOOD ADJUSTMENT.—On October 1 of

each fiscal year, the Secretary shall adjust the limit on

obligations under subparagraph (A) for the fiscal year to

reflect any change in the cost of the program due to any

increase or decrease in the cost of the thrifty food plan

compared to the cost of the thrifty food plan for the same

period projected by the Director of the Congressional

Budget Office prior to the date of enactment of this

subparagraph.

‘‘(C) CASELOAD ADJUSTMENT.—On May 15 of each fiscal

year, the Secretary shall adjust the limit on obligations

under subparagraph (A) for the fiscal year to reflect any

change in the cost of the program due to any increase

or decrease in participation as estimated by comparing

participation during the first 6 months of the fiscal year

to participation for the same period projected by the Director of the Congressional Budget Office prior to the date

of enactment of this subparagraph.

‘‘(2) REDUCTION.—Notwithstanding any other provision of

this Act, if the Secretary finds that for any fiscal year the

requirements of participating States will exceed the amount

of obligations specified in paragraph (1), the Secretary shall

direct State agencies to reduce the value of allotments to be

issued to households certified as eligible to participate in the

food stamp program to the extent necessary to comply with

paragraph (1). ‘‘(3) REPORT.—The Secretary shall report to the Committee

on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate

concerning the methodology and assumptions under, effects

of, and adjustments under, this subsection.’’.

SEC. 1063. REAUTHORIZATION OF PUERTO RICO NUTRITION ASSISTANCE PROGRAM.

The first sentence of section 19(a)(1)(A) of the Food Stamp

Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking

‘‘$974,000,000’’ and all that follows through ‘‘fiscal year 1995’’ and

inserting ‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,

$1,174,000,000 for fiscal year 1997, $1,204,000,000 for fiscal year

1998, $1,236,000,000 for fiscal year 1999, $1,268,000,000 for fiscal
H. R. 4—272

year 2000, $1,301,000,000 for fiscal year 2001, and $1,335,000,000

for fiscal year 2002’’.

SEC. 1064. SIMPLIFIED FOOD STAMP PROGRAM.

(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

‘‘(a) DEFINITION OF FEDERAL COSTS.—In this section, the term

‘Federal costs’ does not include any Federal costs incurred under

section 17.

‘‘(b) ELECTION.—Subject to subsection (d), a State may elect to carry out a Simplified Food Stamp Program (referred to in

this section as a ‘Program’), statewide or in a political subdivision

of the State, in accordance with this section.

‘‘(c) OPERATION OF PROGRAM.—If a State elects to carry out a Program, within the State or a political subdivision of the State— ‘‘(1) a household in which all members receive assistance

under a State program funded under part A of title IV of

the Social Security Act (42 U.S.C. 601 et seq.) shall automatically be eligible to participate in the Program; and ‘‘(2) subject to subsection (f), benefits under the Program shall be determined under rules and procedures established

by the State under— ‘‘(A) a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); ‘‘(B) the food stamp program (other than section 25);

or

‘‘(C) a combination of a State program funded under part A of title IV of the Social Security Act (42 U.S.C.

601 et seq.) and the food stamp program (other than section

25).

‘‘(d) APPROVAL OF PROGRAM.— ‘‘(1) STATE PLAN.—A State agency may not operate a Pro- gram unless the Secretary approves a State plan for the operation of the Program under paragraph (2). ‘‘(2) APPROVAL OF PLAN.—The Secretary shall approve any State plan to carry out a Program if the Secretary determines

that the plan— ‘‘(A) complies with this section; and

‘‘(B) contains sufficient documentation that the plan

will not increase Federal costs for any fiscal year. ‘‘(e) INCREASED FEDERAL COSTS.— ‘‘(1) DETERMINATION.—During each fiscal year and not later than 90 days after the end of each fiscal year, the Secretary

shall determine whether a Program being carried out by a

State agency is increasing Federal costs under this Act above

the Federal costs incurred under the food stamp program in

operation in the State or political subdivision of the State

for the fiscal year prior to the implementation of the Program,

adjusted for any changes in— ‘‘(A) participation;

‘‘(B) the income of participants in the food stamp program that is not attributable to public assistance; and

‘‘(C) the thrifty food plan under section 3(o).

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

Program has increased Federal costs under this Act for any

fiscal year or any portion of any fiscal year, the Secretary
H. R. 4—273

shall notify the State not later than 30 days after the Secretary

makes the determination under paragraph (1).

‘‘(3) ENFORCEMENT.—

‘‘(A) CORRECTIVE ACTION.—Not later than 90 days after

the date of a notification under paragraph (2), the State

shall submit a plan for approval by the Secretary for

prompt corrective action that is designed to prevent the

Program from increasing Federal costs under this Act.

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

plan under subparagraph (A) or carry out a plan approved

by the Secretary, the Secretary shall terminate the

approval of the State agency operating the Program and

the State agency shall be ineligible to operate a future

Program.

‘‘(f) RULES AND PROCEDURES.—

‘‘(1) IN GENERAL.—In operating a Program, a State or political subdivision of a State may follow the rules and procedures

established by the State or political subdivision under a State

program funded under part A of title IV of the Social Security

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

‘‘(2) STANDARDIZED DEDUCTIONS.—In operating a Program,

a State or political subdivision of a State may standardize

the deductions provided under section 5(e). In developing the

standardized deduction, the State shall consider the work

expenses, dependent care costs, and shelter costs of participating households.

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

political subdivision shall comply with the requirements of—

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

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

may be determined under a State program funded under

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

601 et seq.));

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

‘‘(D) subsections (a), (c), (d), and (n) of section 11;

‘‘(E) paragraphs (8), (12), (16), (18), (20), (24), and

(25) of section 11(e);

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

established by the State under a State program funded

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

U.S.C. 601 et seq.)); and

‘‘(G) section 16.

‘‘(4) LIMITATION ON ELIGIBILITY.—Notwithstanding any

other provision of this section, a household may not receive

benefits under this section as a result of the eligibility of

the household under a State program funded under part A

of title IV of the Social Security Act (42 U.S.C. 601 et seq.),

unless the Secretary determines that any household with

income above 130 percent of the poverty guidelines is not

eligible for the program.’’.

(b) STATE PLAN PROVISIONS.—Section 11(e) of the Act (7 U.S.C.

2020(e)), as amended by sections 1028(b) and 1044, is further

amended by adding at the end the following:

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

Program under section 24, the plans of the State agency for

operating the program, including—
H. R. 4—274

‘‘(A) the rules and procedures to be followed by the State agency to determine food stamp benefits; ‘‘(B) how the State agency will address the needs of households that experience high shelter costs in relation

to the incomes of the households; and

‘‘(C) a description of the method by which the State agency will carry out a quality control system under section

16(c).’’.

(c) CONFORMING AMENDMENTS.— (1) Section 8 of the Act (7 U.S.C. 2017), as amended by section 1039, is further amended—

(A) by striking subsection (e); and

(B) by redesignating subsection (f) as subsection (e). (2) Section 17 of the Act (7 U.S.C. 2026) is amended—

(A) by striking subsection (i); and

(B) by redesignating subsections (j) through (l) as sub- sections (i) through (k), respectively.

SEC. 1065. STATE FOOD ASSISTANCE BLOCK GRANT.

(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by section 1064, is further amended by adding

at the end the following:

‘‘SEC. 25. STATE FOOD ASSISTANCE BLOCK GRANT.

‘‘(a) DEFINITIONS.—In this section:

‘‘(1) FOOD ASSISTANCE.—The term ‘food assistance’ means

assistance that may be used only to obtain food, as defined

in section 3(g). ‘‘(2) STATE.—The term ‘State’ means each of the 50 States,

the District of Columbia, Guam, and the Virgin Islands of

the United States.

‘‘(b) ESTABLISHMENT.—The Secretary shall establish a program to make grants to States in accordance with this section to provide— ‘‘(1) food assistance to needy individuals and families resid- ing in the State; and ‘‘(2) funds for administrative costs incurred in providing the assistance.

‘‘(c) ELECTION.— ‘‘(1) IN GENERAL.—A State may annually elect to participate in the program established under subsection (b) if the State— ‘‘(A) has fully implemented an electronic benefit trans- fer system that operates in the entire State; ‘‘(B) has a payment error rate under section 16(c) that is not more than 6 percent as announced most recently

by the Secretary; or ‘‘(C) has a payment error rate in excess of 6 percent and agrees to contribute non-Federal funds for the fiscal

year of the grant, for benefits and administration of the

State’s food assistance program, the amount determined

under paragraph (2).

‘‘(2) STATE MANDATORY CONTRIBUTIONS.—

‘‘(A) IN GENERAL.—In the case of a State that elects

to participate in the program under paragraph (1)(C), the

State shall agree to contribute, for a fiscal year, an amount

equal to—

‘‘(A)(i) the benefits issued in the State; multiplied by

‘‘(ii) the payment error rate of the State; minus

‘‘(B)(i) the benefits issued in the State; multiplied by
H. R. 4—275

‘‘(ii) 6 percent.

‘‘(B) DETERMINATION.—Notwithstanding sections 13

and 14, the calculation of the contribution shall be based

solely on the determination of the Secretary of the payment

error rate.

‘‘(C) DATA.—For purposes of implementing subparagraph (A) for a fiscal year, the Secretary shall use the

data for the most recent fiscal year available.

‘‘(3) ELECTION LIMITATION.—

‘‘(A) RE-ENTERING FOOD STAMP PROGRAM.—A State that

elects to participate in the program under paragraph (1)

may in a subsequent year decline to elect to participate

in the program and instead participate in the food stamp

program in accordance with the other sections of this Act.

‘‘(B) LIMITATION.—Subsequent to re-entering the food

stamp program under subparagraph (A), the State shall

only be eligible to participate in the food stamp program

in accordance with the other sections of this Act and shall

not be eligible to elect to participate in the program established under subsection (b).

‘‘(4) PROGRAM EXCLUSIVE.—

‘‘(A) IN GENERAL.—A State that is participating in the

program established under subsection (b) shall not be subject to, or receive any benefit under, this Act except as

provided in this section.

‘‘(B) CONTRACT WITH FEDERAL GOVERNMENT.—Nothing

in this section shall prohibit a State from contracting with

the Federal Government for the provision of services or

materials necessary to carry out a program under this

section.

‘‘(d) LEAD AGENCY.—A State desiring to receive a grant under

this section shall designate, in an application submitted to the

Secretary under subsection (e)(1), an appropriate State agency

responsible for the administration of the program under this section

as the lead agency.

‘‘(e) APPLICATION AND PLAN.—

‘‘(1) APPLICATION.—To be eligible to receive assistance

under this section, a State shall prepare and submit to the

Secretary an application at such time, in such manner, and

containing such information as the Secretary shall by regulation

require, including—

‘‘(A) an assurance that the State will comply with

the requirements of this section;

‘‘(B) a State plan that meets the requirements of paragraph (3); and

‘‘(C) an assurance that the State will comply with

the requirements of the State plan under paragraph (3).

‘‘(2) ANNUAL PLAN.—The State plan contained in the

application under paragraph (1) shall be submitted for approval

annually.

‘‘(3) REQUIREMENTS OF PLAN.—

‘‘(A) LEAD AGENCY.—The State plan shall identify the

lead agency.

‘‘(B) USE OF BLOCK GRANT FUNDS.—The State plan

shall provide that the State shall use the amounts provided

to the State for each fiscal year under this section—
H. R. 4—276

‘‘(i) to provide food assistance to needy individuals

and families residing in the State, other than residents

of institutions who are ineligible for food stamps under

section 3(i); and

‘‘(ii) to pay administrative costs incurred in providing the assistance.

‘‘(C) GROUPS SERVED.—The State plan shall describe

how and to what extent the program will serve specific

groups of individuals and families and how the treatment

will differ from treatment under the food stamp program

under the other sections of this Act of the individuals

and families, including—

‘‘(i) elderly individuals and families;

‘‘(ii) migrants or seasonal farmworkers;

‘‘(iii) homeless individuals and families;

‘‘(iv) individuals and families who live in institutions eligible under section 3(i);

‘‘(v) individuals and families with earnings; and

‘‘(vi) members of Indian tribes or tribal organizations.

‘‘(D) ASSISTANCE FOR ENTIRE STATE.—The State plan

shall provide that benefits under this section shall be available throughout the entire State.

‘‘(E) NOTICE AND HEARINGS.—The State plan shall provide that an individual or family who applies for, or

receives, assistance under this section shall be provided

with notice of, and an opportunity for a hearing on, any

action under this section that adversely affects the individual or family.

‘‘(F) ASSESSMENT OF NEEDS.—The State plan shall

assess the food and nutrition needs of needy persons residing in the State.

‘‘(G) ELIGIBILITY STANDARDS.—The State plan shall

describe the income, resource, and other eligibility standards that are established for the receipt of assistance under

this section.

‘‘(H) DISQUALIFICATION OF FLEEING FELONS.—The State

plan shall provide for the disqualification of any individual

who would be disqualified from participating in the food

stamp program under section 6(k).

‘‘(I) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—

The State plan shall provide for the disqualification of

any individual who would be disqualified from participating

in the food stamp program under section 6(n).

‘‘(J) RECEIVING BENEFITS IN MORE THAN 1 JURISDICTION.—The State plan shall establish a system for the

exchange of information with other States to verify the

identity and receipt of benefits by recipients.

‘‘(K) PRIVACY.—The State plan shall provide for safeguarding and restricting the use and disclosure of information about any individual or family receiving assistance

under this section.

‘‘(L) OTHER INFORMATION.—The State plan shall contain such other information as may be required by the

Secretary.
H. R. 4—277

‘‘(4) APPROVAL OF APPLICATION AND PLAN.—The Secretary

shall approve an application and State plan that satisfies the

requirements of this section.

‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO ASSISTANCE.—

Nothing in this section—

‘‘(1) entitles any individual or family to assistance under

this section; or

‘‘(2) limits the right of a State to impose additional limitations or conditions on assistance under this section.

‘‘(g) BENEFITS FOR ALIENS.—

‘‘(1) ELIGIBILITY.—No individual who is an alien shall be

eligible to receive benefits under a State plan approved under

subsection (e)(4) if the individual is not eligible to participate

in the food stamp program due to the alien status of the

individual.

‘‘(2) INCOME.—The State plan shall provide that the income

of an alien shall be determined in accordance with section

5(i).

‘‘(h) EMPLOYMENT AND TRAINING.—

‘‘(1) WORK REQUIREMENTS.—No individual or household

shall be eligible to receive benefits under a State plan funded

under this section if the individual or household is not eligible

to participate in the food stamp program under subsection

(d) or (o) of section 6.

‘‘(2) WORK PROGRAMS.—Each State shall implement an

employment and training program in accordance with the terms

and conditions of section 6(d)(4) for individuals under the program and shall be eligible to receive funding under section

16(h).

‘‘(i) ENFORCEMENT.— ‘‘(1) REVIEW OF COMPLIANCE WITH STATE PLAN.—The Secretary shall review and monitor State compliance with this

section and the State plan approved under subsection (e)(4).

‘‘(2) NONCOMPLIANCE.— ‘‘(A) IN GENERAL.—If the Secretary, after reasonable

notice to a State and opportunity for a hearing, finds that— ‘‘(i) there has been a failure by the State to comply

substantially with any provision or requirement set

forth in the State plan approved under subsection

(e)(4); or

‘‘(ii) in the operation of any program or activity

for which assistance is provided under this section,

there is a failure by the State to comply substantially

with any provision of this section;

the Secretary shall notify the State of the finding and

that no further grants will be made to the State under

this section (or, in the case of noncompliance in the operation of a program or activity, that no further grants to

the State will be made with respect to the program or

activity) until the Secretary is satisfied that there is no

longer any failure to comply or that the noncompliance

will be promptly corrected.

‘‘(B) OTHER PENALTIES.—In the case of a finding of

noncompliance made pursuant to subparagraph (A), the

Secretary may, in addition to, or in lieu of, imposing the

penalties described in subparagraph (A), impose other

appropriate penalties, including recoupment of money
H. R. 4—278

improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt

of financial assistance under this section.

‘‘(C) NOTICE.—The notice required under subparagraph

(A) shall include a specific identification of any additional

penalty being imposed under subparagraph (B).

‘‘(3) ISSUANCE OF REGULATIONS.—The Secretary shall establish by regulation procedures for—

‘‘(A) receiving, processing, and determining the validity

of complaints made to the Secretary concerning any failure

of a State to comply with the State plan or any requirement

of this section; and

‘‘(B) imposing penalties under this section.

‘‘(j) GRANT.—

‘‘(1) IN GENERAL.—For each fiscal year, the Secretary shall

pay to a State that has an application approved by the Secretary

under subsection (e)(4) an amount that is equal to the grant

of the State under subsection (m) for the fiscal year.

‘‘(2) METHOD OF GRANT.—The Secretary shall make a grant

to a State for a fiscal year under this section by issuing 1

or more letters of credit for the fiscal year, with necessary

adjustments on account of overpayments or underpayments,

as determined by the Secretary.

‘‘(3) SPENDING OF GRANTS BY STATE.—

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

(B), a grant to a State determined under subsection (m)(1)

for a fiscal year may be expended by the State only in

the fiscal year.

‘‘(B) CARRYOVER.—The State may reserve up to 10

percent of a grant determined under subsection (m)(1) for

a fiscal year to provide assistance under this section in

subsequent fiscal years, except that the reserved funds

may not exceed 30 percent of the total grant received

under this section for a fiscal year.

‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE EXPENDITURES.—In each fiscal year, not more than 6 percent of the

Federal and State funds required to be expended by a State

under this section shall be used for administrative expenses.

‘‘(5) PROVISION OF FOOD ASSISTANCE.—A State may provide

food assistance under this section in any manner determined

appropriate by the State, such as electronic benefit transfer

limited to food purchases, coupons limited to food purchases,

or direct provision of commodities.

‘‘(k) QUALITY CONTROL.—Each State participating in the program established under this section shall maintain a system in

accordance with, and shall be subject to section 16(c), including

sanctions and eligibility for incentive payment under section 16(c),

adjusted for State specific characteristics under regulations issued

by the Secretary.

‘‘(l) NONDISCRIMINATION.—

‘‘(1) IN GENERAL.—The Secretary shall not provide financial

assistance for any program, project, or activity under this section if any person with responsibilities for the operation of

the program, project, or activity discriminates with respect

to the program, project, or activity because of race, religion,

color, national origin, sex, or disability.
H. R. 4—279

‘‘(2) ENFORCEMENT.—The powers, remedies, and procedures

set forth in title VI of the Civil Rights Act of 1964 (42 U.S.C.

2000d et seq.) may be used by the Secretary to enforce paragraph (1).

‘‘(m) GRANT CALCULATION.—

‘‘(1) STATE GRANT.—

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

(B), from the amounts made available under section 18

for each fiscal year, the Secretary shall provide a grant

to each State participating in the program established

under this section an amount that is equal to the sum

of—

‘‘(i) the greater of, as determined by the Secretary—

‘‘(I) the total dollar value of all benefits issued

under the food stamp program established under

this Act by the State during fiscal year 1994; or

‘‘(II) the average per fiscal year of the total

dollar value of all benefits issued under the food

stamp program by the State during each of fiscal

years 1992 through 1994; and

‘‘(ii) the greater of, as determined by the Secretary—

‘‘(I) the total amount received by the State

for administrative costs under section 16(a) (not

including any adjustment under section 16(c)) for

fiscal year 1994; or

‘‘(II) the average per fiscal year of the total

amount received by the State for administrative

costs under section 16(a) (not including any adjustment under section 16(c)) for each of fiscal years

1992 through 1994. ‘‘(B) INSUFFICIENT FUNDS.—If the Secretary finds that

the total amount of grants to which States would otherwise

be entitled for a fiscal year under subparagraph (A) will

exceed the amount of funds that will be made available

to provide the grants for the fiscal year, the Secretary

shall reduce the grants made to States under this subsection, on a pro rata basis, to the extent necessary.

‘‘(2) REDUCTION.—The Secretary shall reduce the grant of

a State by the amount a State has agreed to contribute under

subsection (c)(1)(C).’’.

(b) EMPLOYMENT AND TRAINING FUNDING.—Section 16(h) of the

Act (7 U.S.C. 2025(a)), as amended by section 1027(d)(2), is further

amended by adding at the end the following:

‘‘(6) BLOCK GRANT STATES.—Each State electing to operate

a program under section 25 shall—

‘‘(A) receive the greater of—

‘‘(i) the total dollar value of the funds received

under paragraph (1) by the State during fiscal year

1994; or

‘‘(ii) the average per fiscal year of the total dollar

value of all funds received under paragraph (1) by

the State during each of fiscal years 1992 through

1994; and

‘‘(B) be eligible to receive funds under paragraph (2),

within the limitations in section 6(d)(4)(K).’’.
H. R. 4—280

(c) RESEARCH ON OPTIONAL STATE FOOD ASSISTANCE BLOCK

GRANT.—Section 17 of the Act (7 U.S.C. 2026), as amended by

section 1064(c)(2), is further amended by adding at the end the

following:

‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSISTANCE BLOCK

GRANT.—The Secretary may conduct research on the effects and

costs of a State program carried out under section 25.’’.

SEC. 1066. AMERICAN SAMOA.

The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended

by section 1065, is further amended by adding at the end the

following:

‘‘SEC. 26. TERRITORY OF AMERICAN SAMOA.

‘‘From amounts made available to carry out this Act, the Secretary may pay to the Territory of American Samoa not more

than $5,300,000 for each of fiscal years 1996 through 2002 to

finance 100 percent of the expenditures for the fiscal year for

a nutrition assistance program extended under section 601(c) of

Public Law 96–597 (48 U.S.C. 1469d(c)).’’.

SEC. 1067. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended

by section 1066, is further amended by adding at the end the

following:

‘‘SEC. 27. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

‘‘(a) DEFINITION OF COMMUNITY FOOD PROJECTS.—In this section, the term ‘community food project’ means a community-based

project that requires a 1-time infusion of Federal assistance to

become self-sustaining and that is designed to— ‘‘(1) meet the food needs of low-income people;

‘‘(2) increase the self-reliance of communities in providing

for their own food needs; and

‘‘(3) promote comprehensive responses to local food, farm,

and nutrition issues.

‘‘(b) AUTHORITY TO PROVIDE ASSISTANCE.— ‘‘(1) IN GENERAL.—From amounts made available to carry

out this Act, the Secretary may make grants to assist eligible

private nonprofit entities to establish and carry out community

food projects. ‘‘(2) LIMITATION ON GRANTS.—The total amount of funds

provided as grants under this section for any fiscal year may

not exceed $2,500,000.

‘‘(c) ELIGIBLE ENTITIES.—To be eligible for a grant under subsection (b), a private nonprofit entity must—

‘‘(1) have experience in the area of—

‘‘(A) community food work, particularly concerning

small and medium-sized farms, including the provision of

food to people in low-income communities and the development of new markets in low-income communities for agricultural producers; or

‘‘(B) job training and business development activities

for food-related activities in low-income communities;

‘‘(2) demonstrate competency to implement a project, provide fiscal accountability, collect data, and prepare reports and

other necessary documentation; and
H. R. 4—281

‘‘(3) demonstrate a willingness to share information with

researchers, practitioners, and other interested parties.

‘‘(d) PREFERENCE FOR CERTAIN PROJECTS.—In selecting community food projects to receive assistance under subsection (b), the

Secretary shall give a preference to projects designed to—

‘‘(1) develop linkages between 2 or more sectors of the

food system;

‘‘(2) support the development of entrepreneurial projects;

‘‘(3) develop innovative linkages between the for-profit and

nonprofit food sectors; or

‘‘(4) encourage long-term planning activities and multi-system, interagency approaches.

‘‘(e) MATCHING FUNDS REQUIREMENTS.—

‘‘(1) REQUIREMENTS.—The Federal share of the cost of

establishing or carrying out a community food project that

receives assistance under subsection (b) may not exceed 50

percent of the cost of the project during the term of the grant.

‘‘(2) CALCULATION.—In providing for the non-Federal share

of the cost of carrying out a community food project, the entity

receiving the grant shall provide for the share through a payment in cash or in kind, fairly evaluated, including facilities,

equipment, or services.

‘‘(3) SOURCES.—An entity may provide for the non-Federal

share through State government, local government, or private

sources.

‘‘(f) TERM OF GRANT.—

‘‘(1) SINGLE GRANT.—A community food project may be

supported by only a single grant under subsection (b).

‘‘(2) TERM.—The term of a grant under subsection (b) may

not exceed 3 years.

‘‘(g) TECHNICAL ASSISTANCE AND RELATED INFORMATION.—

‘‘(1) TECHNICAL ASSISTANCE.—In carrying out this section,

the Secretary may provide technical assistance regarding

community food projects, processes, and development to an

entity seeking the assistance.

‘‘(2) SHARING INFORMATION.—

‘‘(A) IN GENERAL.—The Secretary may provide for the

sharing of information concerning community food projects

and issues among and between government, private forprofit and nonprofit groups, and the public through publications, conferences, and other appropriate forums.

‘‘(B) OTHER INTERESTED PARTIES.—The Secretary may

share information concerning community food projects with

researchers, practitioners, and other interested parties.

‘‘(h) EVALUATION.—

‘‘(1) IN GENERAL.—The Secretary shall provide for the

evaluation of the success of community food projects supported

using funds under this section.

‘‘(2) REPORT.—Not later than January 30, 2002, the Secretary shall submit a report to Congress regarding the results

of the evaluation.’’.
H. R. 4—282

Subtitle B—Commodity Distribution

Programs

SEC. 1071. COMMODITY DISTRIBUTION PROGRAM; COMMODITY

SUPPLEMENTAL FOOD PROGRAM.

(a) REAUTHORIZATION.—The first sentence of section 4(a) of

the Agriculture and Consumer Protection Act of 1973 (Public Law

93–86; 7 U.S.C. 612c note) is amended by striking ‘‘1995’’ and

inserting ‘‘2002’’.

(b) FUNDING.—Section 5 of the Act (Public Law 93–86; 7 U.S.C.

612c note) is amended—

(1) in subsection (a)(2), by striking ‘‘1995’’ and inserting

‘‘2002’’; and

(2) in subsection (d)(2), by striking ‘‘1995’’ and inserting

‘‘2002’’.

SEC. 1072. EMERGENCY FOOD ASSISTANCE PROGRAM.

(a) DEFINITIONS.—Section 201A of the Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended

to read as follows:

‘‘SEC. 201A. DEFINITIONS.

‘‘In this Act:

‘‘(1) ADDITIONAL COMMODITIES.—The term ‘additional

commodities’ means commodities made available under section

214 in addition to the commodities made available under sections 202 and 203D.

‘‘(2) AVERAGE MONTHLY NUMBER OF UNEMPLOYED PER- SONS.—The term ‘average monthly number of unemployed persons’ means the average monthly number of unemployed

persons in each State in the most recent fiscal year for which

information concerning the number of unemployed persons is

available, as determined by the Bureau of Labor Statistics

of the Department of Labor.

‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term ‘eligible recipient agency’ means a public or nonprofit organization— ‘‘(A) that administers—

‘‘(i) an emergency feeding organization;

‘‘(ii) a charitable institution (including a hospital

and a retirement home, but excluding a penal institution) to the extent that the institution serves needy

persons;

‘‘(iii) a summer camp for children, or a child nutrition program providing food service;

‘‘(iv) a nutrition project operating under the Older

Americans Act of 1965 (42 U.S.C. 3001 et seq.), including a project that operates a congregate nutrition site

and a project that provides home-delivered meals; or

‘‘(v) a disaster relief program;

‘‘(B) that has been designated by the appropriate State

agency, or by the Secretary; and

‘‘(C) that has been approved by the Secretary for

participation in the program established under this Act.

‘‘(4) EMERGENCY FEEDING ORGANIZATION.—The term ‘emergency feeding organization’ means a public or nonprofit

organization that administers activities and projects (including
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the activities and projects of a charitable institution, a food

bank, a food pantry, a hunger relief center, a soup kitchen,

or a similar public or private nonprofit eligible recipient agency)

providing nutrition assistance to relieve situations of emergency

and distress through the provision of food to needy persons,

including low-income and unemployed persons.

‘‘(5) FOOD BANK.—The term ‘food bank’ means a public

or charitable institution that maintains an established operation involving the provision of food or edible commodities,

or the products of food or edible commodities, to food pantries,

soup kitchens, hunger relief centers, or other food or feeding

centers that, as an integral part of their normal activities,

provide meals or food to feed needy persons on a regular basis.

‘‘(6) FOOD PANTRY.—The term ‘food pantry’ means a public

or private nonprofit organization that distributes food to lowincome and unemployed households, including food from sources

other than the Department of Agriculture, to relieve situations

of emergency and distress.

‘‘(7) POVERTY LINE.—The term ‘poverty line’ has the same

meaning given the term in section 673(2) of the Community

Services Block Grant Act (42 U.S.C. 9902(2)).

‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’ means a public or charitable institution that, as an integral part of the

normal activities of the institution, maintains an established

feeding operation to provide food to needy homeless persons

on a regular basis.

‘‘(9) TOTAL VALUE OF ADDITIONAL COMMODITIES.—The term

‘total value of additional commodities’ means the actual cost

of all additional commodities made available under section

214 that are paid by the Secretary (including the distribution

and processing costs incurred by the Secretary).

‘‘(10) VALUE OF ADDITIONAL COMMODITIES ALLOCATED TO

EACH STATE.—The term ‘value of additional commodities allocated to each State’ means the actual cost of additional commodities made available under section 214 and allocated to each

State that are paid by the Secretary (including the distribution

and processing costs incurred by the Secretary).’’.

(b) STATE PLAN.—Section 202A of the Act (7 U.S.C. 612c note)

is amended to read as follows:

‘‘SEC. 202A. STATE PLAN.

‘‘(a) IN GENERAL.—To receive commodities under this Act, a

State shall submit a plan of operation and administration every

4 years to the Secretary for approval. The plan may be amended

at any time, with the approval of the Secretary.

‘‘(b) REQUIREMENTS.—Each plan shall—

‘‘(1) designate the State agency responsible for distributing

the commodities received under this Act;

‘‘(2) set forth a plan of operation and administration to

expeditiously distribute commodities under this Act;

‘‘(3) set forth the standards of eligibility for recipient agencies; and

‘‘(4) set forth the standards of eligibility for individual

or household recipients of commodities, which shall require—

‘‘(A) individuals or households to be comprised of needy

persons; and
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‘‘(B) individual or household members to be residing

in the geographic location served by the distributing agency

at the time of applying for assistance.

‘‘(c) STATE ADVISORY BOARD.—The Secretary shall encourage

each State receiving commodities under this Act to establish a

State advisory board consisting of representatives of all interested

entities, both public and private, in the distribution of commodities

received under this Act in the State.’’.

(c) AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE

FUNDS.—Section 204(a)(1) of the Act (7 U.S.C. 612c note) is

amended—

(1) in the first sentence—

(A) by striking ‘‘1991 through 1995’’ and inserting

‘‘1996 through 2002’’; and

(B) by striking ‘‘for State and local’’ and all that follows

through ‘‘under this title’’ and inserting ‘‘to pay for the

direct and indirect administrative costs of the State related

to the processing, transporting, and distributing to eligible

recipient agencies of commodities provided by the Secretary

under this Act and commodities secured from other

sources’’; and

(2) by striking the fourth sentence.

(d) DELIVERY OF COMMODITIES.—Section 214 of the Act (7

U.S.C. 612c note) is amended—

(1) by striking subsections (a) through (e) and (j);

(2) by redesignating subsections (f) through (i) as subsections (a) through (d), respectively;

(3) in subsection (b), as redesignated by paragraph (2)—

(A) in the first sentence, by striking ‘‘subsection (f)

or subsection (j) if applicable,’’ and inserting ‘‘subsection

(a)’’; and

(B) in the second sentence, by striking ‘‘subsection

(f)’’ and inserting ‘‘subsection (a)’’;

(4) by striking subsection (c), as redesignated by paragraph

(2), and inserting the following:

‘‘(c) ADMINISTRATION.—

‘‘(1) IN GENERAL.—Commodities made available for each

fiscal year under this section shall be delivered at reasonable

intervals to States based on the grants calculated under subsection (a), or reallocated under subsection (b), before December

31 of the following fiscal year.

‘‘(2) ENTITLEMENT.—Each State shall be entitled to receive

the value of additional commodities determined under subsection (a).’’; and

(5) in subsection (d), as redesignated by paragraph (2),

by striking ‘‘or reduce’’ and all that follows through ‘‘each

fiscal year’’.

(e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C. 612c note)

is amended—

(1) in the first sentence of section 203B(a), by striking

‘‘203 and 203A of this Act’’ and inserting ‘‘203A’’;

(2) in section 204(a), by striking ‘‘title’’ each place it appears

and inserting ‘‘Act’’;

(3) in the first sentence of section 210(e), by striking

‘‘(except as otherwise provided for in section 214(j))’’; and

(4) by striking section 212.
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(f) REPORT ON EFAP.—Section 1571 of the Food Security Act

of 1985 (Public Law 99–198; 7 U.S.C. 612c note) is repealed.

(g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP

PROGRAM.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),

as amended by section 1067, is further amended by adding at

the end the following:

‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY

FOOD ASSISTANCE PROGRAM.

‘‘(a) PURCHASE OF COMMODITIES.—From amounts appropriated

under this Act, for each of fiscal years 1997 through 2002, the

Secretary shall purchase $300,000,000 of a variety of nutritious

and useful commodities of the types that the Secretary has the

authority to acquire through the Commodity Credit Corporation

or under section 32 of the Act entitled ‘An Act to amend the

Agricultural Adjustment Act, and for other purposes’, approved

August 24, 1935 (7 U.S.C. 612c), and distribute the commodities

to States for distribution in accordance with section 214 of the

Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.

612c note).

‘‘(b) BASIS FOR COMMODITY PURCHASES.—In purchasing

commodities under subsection (a), the Secretary shall, to the extent

practicable and appropriate, make purchases based on—

‘‘(1) agricultural market conditions;

‘‘(2) preferences and needs of States and distributing agencies; and

‘‘(3) preferences of recipients.’’.

(h) EFFECTIVE DATE.—The amendments made by subsection

(d) shall become effective on October 1, 1996.

SEC. 1073. FOOD BANK DEMONSTRATION PROJECT.

Section 3 of the Charitable Assistance and Food Bank Act

of 1987 (Public Law 100–232; 7 U.S.C. 612c note) is repealed.

SEC. 1074. HUNGER PREVENTION PROGRAMS.

The Hunger Prevention Act of 1988 (Public Law 100–435; 7

U.S.C. 612c note) is amended—

(1) by striking section 110;

(2) by striking subtitle C of title II; and

(3) by striking section 502.

SEC. 1075. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

Section 1773 of the Food, Agriculture, Conservation, and Trade

Act of 1990 (Public Law 101–624; 7 U.S.C. 612c note) is amended

by striking subsection (f).

SEC. 1076. NATIONAL COMMODITY PROCESSING.

The first sentence of section 1114(a)(2)(A) of the Agriculture

and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking

‘‘1995’’ and inserting ‘‘2002’’.
H. R. 4—286

TITLE XI—MISCELLANEOUS

SEC. 1101. EXPENDITURE OF FEDERAL FUNDS IN ACCORDANCE WITH

LAWS AND PROCEDURES APPLICABLE TO EXPENDITURE

OF STATE FUNDS.

(a) IN GENERAL.—Notwithstanding any other provision of law,

any funds received by a State under the provisions of law specified

in subsection (b) shall be expended only in accordance with the

laws and procedures applicable to expenditures of the State’s own

revenues, including appropriation by the State legislature, consistent with the terms and conditions required under such provisions

of law.

(b) PROVISIONS OF LAW.—The provisions of law specified in

this subsection are the following:

(1) Part A of title IV of the Social Security Act (relating

to block grants for temporary assistance for needy families).

(2) Section 25 of the Food Stamp Act of 1977 (relating

to the optional State food assistance block grant).

(3) The Child Care and Development Block Grant Act of

1990 (relating to block grants for child care).

SEC. 1102. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO

FUGITIVE FELONS AND PROBATION AND PAROLE VIOLATORS.

(a) ELIGIBILITY FOR ASSISTANCE.—The United States Housing

Act of 1937 (42 U.S.C. 1437 et seq.) is amended—

(1) in section 6(l)—

(A) in paragraph (5), by striking ‘‘and’’ at the end;

(B) in paragraph (6), by striking the period at the

end and inserting ‘‘; and’’; and (C) by inserting immediately after paragraph (6) the

following new paragraph:

‘‘(7) provide that it shall be cause for immediate termination

of the tenancy of a public housing tenant if such tenant— ‘‘(A) is fleeing to avoid prosecution, or custody or

confinement after conviction, under the laws of the place

from which the individual flees, for a crime, or attempt

to commit a crime, which is a felony under the laws of

the place from which the individual flees, or which, in

the case of the State of New Jersey, is a high misdemeanor

under the laws of such State; or

‘‘(2) is violating a condition of probation or parole imposed

under Federal or State law.’’; and

(2) in section 8(d)(1)(B)—

(A) in clause (iii), by striking ‘‘and’’ at the end;

(B) in clause (iv), by striking the period at the end

and inserting ‘‘; and’’; and

(C) by adding after clause (iv) the following new clause:

‘‘(v) it shall be cause for termination of the tenancy

of a tenant if such tenant—

‘‘(I) is fleeing to avoid prosecution, or custody

or confinement after conviction, under the laws

of the place from which the individual flees, for

a crime, or attempt to commit a crime, which

is a felony under the laws of the place from which

the individual flees, or which, in the case of the
H. R. 4—287

State of New Jersey, is a high misdemeanor under

the laws of such State; or

‘‘(II) is violating a condition of probation or parole imposed under Federal or State law;’’. (b) PROVISION OF INFORMATION TO LAW ENFORCEMENT AGEN- CIES.—Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), as amended by section 601 of this Act, is amended

by adding at the end the following:

‘‘SEC. 28. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT

AGENCIES.

‘‘Notwithstanding any other provision of law, each public hous- ing agency that enters into a contract for assistance under section

6 or 8 of this Act with the Secretary shall furnish any Federal,

State, or local law enforcement officer, upon the request of the

officer, with the current address, Social Security number, and photograph (if applicable) of any recipient of assistance under this Act,

if the officer—

‘‘(1) furnishes the public housing agency with the name of the recipient; and ‘‘(2) notifies the agency that— ‘‘(A) such recipient— ‘‘(i) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the

place from which the individual flees, for a crime,

or attempt to commit a crime, which is a felony under

the laws of the place from which the individual flees,

or which, in the case of the State of New Jersey,

is a high misdemeanor under the laws of such State;

or

‘‘(ii) is violating a condition of probation or parole imposed under Federal or State law; or ‘‘(iii) has information that is necessary for the offi- cer to conduct the officer’s official duties;

‘‘(B) the location or apprehension of the recipient is

within such officer’s official duties; and

‘‘(C) the request is made in the proper exercise of

the officer’s official duties.’’.

SEC. 1103. SENSE OF THE SENATE REGARDING ENTERPRISE ZONES.

(a) FINDINGS.—The Senate finds that:

(1) Many of the Nation’s urban centers are places with high levels of poverty, high rates of welfare dependency, high

crime rates, poor schools, and joblessness; (2) Federal tax incentives and regulatory reforms can encourage economic growth, job creation and small business

formation in many urban centers; (3) Encouraging private sector investment in America’s economically distressed urban and rural areas is essential to

breaking the cycle of poverty and the related ills of crime,

drug abuse, illiteracy, welfare dependency, and unemployment;

(4) The empowerment zones enacted in 1993 should be

enhanced by providing incentives to increase entrepreneurial

growth, capital formation, job creation, educational opportunities, and home ownership in the designated communities and

zones.

(b) SENSE OF THE SENATE.—Therefore, it is the Sense of the

Senate that the Congress should adopt enterprise zone legislation
H. R. 4—288

in the One Hundred Fourth Congress, and that such enterprise

zone legislation provide the following incentives and provisions: (1) Federal tax incentives that expand access to capital,

increase the formation and expansion of small businesses, and

promote commercial revitalization; (2) Regulatory reforms that allow localities to petition Fed- eral agencies, subject to the relevant agencies’ approval, for

waivers or modifications of regulations to improve job creation,

small business formation and expansion, community development, or economic revitalization objectives of the enterprise

zones;

(3) Home ownership incentives and grants to encourage resident management of public housing and home ownership

of public housing; (4) School reform pilot projects in certain designated enter- prise zones to provide low-income parents with new and

expanded educational options for their children’s elementary

and secondary schooling.

SEC. 1104. SENSE OF THE SENATE REGARDING THE INABILITY OF THE

NON-CUSTODIAL PARENT TO PAY CHILD SUPPORT.

It is the sense of the Senate that—

(a) States should diligently continue their efforts to enforce

child support payments by the non-custodial parent to the custodial

parent, regardless of the employment status or location of the

non-custodial parent; and

(b) States are encouraged to pursue pilot programs in which

the parents of a non-adult, non-custodial parent who refuses to

or is unable to pay child support must—

(1) pay or contribute to the child support owed by the

non-custodial parent; or

(2) otherwise fulfill all financial obligations and meet all

conditions imposed on the non-custodial parent, such as participation in a work program or other related activity.

SEC. 1105. FOOD STAMP ELIGIBILITY.

Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 2015(f))

is amended by striking the third sentence and inserting the

following:

‘‘The State agency shall, at its option, consider either all income

and financial resources of the individual rendered ineligible to

participate in the food stamp program under this subsection, or

such income, less a pro rata share, and the financial resources

of the ineligible individual, to determine the eligibility and the

value of the allotment of the household of which such individual

is a member.’’.

SEC. 1106. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE

PREGNANCIES.

(a) IN GENERAL.—Not later than January 1, 1997, the Secretary

of Health and Human Services shall establish and implement a

strategy for—

(1) preventing out-of-wedlock teenage pregnancies, and

(2) assuring that at least 25 percent of the communities

in the United States have teenage pregnancy prevention programs in place.

(b) REPORT.—Not later than June 30, 1998, and annually thereafter, the Secretary shall report to the Congress with respect to
H. R. 4—289

the progress that has been made in meeting the goals described

in paragraphs (1) and (2) of subsection (a).

SEC. 1107. SENSE OF THE SENATE REGARDING ENFORCEMENT OF

STATUTORY RAPE LAWS.

It is the sense of the Senate that States and local jurisdictions should aggressively enforce statutory rape laws.

SEC. 1108. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED

SUBSTANCES.

Notwithstanding any other provision of law, States shall not be prohibited by the Federal Government from sanctioning welfare

recipients who test positive for use of controlled substances.

SEC. 1109. ABSTINENCE EDUCATION.

(a) INCREASES IN FUNDING.—Section 501(a) of the Social Security Act (42 U.S.C. 701(a)) is amended in the matter preceding

paragraph (1) by striking ‘‘Fiscal year 1990 and each fiscal year

thereafter’’ and inserting ‘‘Fiscal years 1990 through 1995 and

$761,000,000 for fiscal year 1996 and each fiscal year thereafter’’. (b) ABSTINENCE EDUCATION.—Section 501(a)(1) of such Act (42

U.S.C. 701(a)(1)) is amended—

(1) in subparagraph (C), by striking ‘‘and’’ at the end;

(2) in subparagraph (D), by adding ‘‘and’’ at the end; and

(3) by adding at the end the following new subparagraph:

‘‘(E) to provide abstinence education, and at the option

of the State, where appropriate, mentoring, counseling,

and adult supervision to promote abstinence from sexual

activity, with a focus on those groups which are most

likely to bear children out-of-wedlock.’’. (c) ABSTINENCE EDUCATION DEFINED.—Section 501(b) of such

Act (42 U.S.C. 701(b)) is amended by adding at the end the following

new paragraph: ‘‘(5) ABSTINENCE EDUCATION.—For purposes of this subsection, the term ‘abstinence education’ means an educational

or motivational program which— ‘‘(A) has as its exclusive purpose, teaching the social,

psychological, and health gains to be realized by abstaining

from sexual activity; ‘‘(B) teaches abstinence from sexual activity outside

marriage as the expected standard for all school age children;

‘‘(C) teaches that abstinence from sexual activity is

the only certain way to avoid out-of-wedlock pregnancy,

sexually transmitted diseases, and other associated health

problems;

‘‘(D) teaches that a mutually faithful monogamous relationship in context of marriage is the expected standard

of human sexual activity;

‘‘(E) teaches that sexual activity outside of the context

of marriage is likely to have harmful psychological and

physical effects;

‘‘(F) teaches that bearing children out-of-wedlock is

likely to have harmful consequences for the child, the

child’s parents, and society;

‘‘(G) teaches young people how to reject sexual

advances and how alcohol and drug use increases vulnerability to sexual advances; and
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‘‘(H) teaches the importance of attaining self-sufficiency

before engaging in sexual activity.’’.

(d) SET-ASIDE.—

(1) IN GENERAL.—Section 502(c) of such Act (42 U.S.C.

702(c)) is amended in the matter preceding paragraph (1) by

striking ‘‘From’’ and inserting ‘‘Except as provided in subsection

(e), from’’.

(2) SET-ASIDE.—Section 502 of such Act (42 U.S.C. 702)

is amended by adding at the end the following new subsection:

‘‘(e) Of the amounts appropriated under section 501(a) for any

fiscal year, the Secretary shall set aside $75,000,000 for abstinence

education in accordance with section 501(a)(1)(E).’’.

SEC. 1110. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT

TRANSFER SYSTEMS.

Section 904 of the Electronic Fund Transfer Act (15 U.S.C.

1693b) is amended—

(1) by striking ‘‘(d) In the event’’ and inserting ‘‘(d)

APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN

FINANCIAL INSTITUTIONS.—

‘‘(1) IN GENERAL.—In the event’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT

TRANSFER PROGRAMS.—

‘‘(A) EXEMPTION GENERALLY.—The disclosures, protections, responsibilities, and remedies established under this

title, and any regulation prescribed or order issued by

the Board in accordance with this title, shall not apply

to any electronic benefit transfer program established

under State or local law or administered by a State or

local government.

‘‘(B) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT’S

ACCOUNT.—Subparagraph (A) shall not apply with respect

to any electronic funds transfer under an electronic benefit

transfer program for deposits directly into a consumer

account held by the recipient of the benefit.

‘‘(C) RULE OF CONSTRUCTION.—No provision of this

paragraph may be construed as—

‘‘(i) affecting or altering the protections otherwise

applicable with respect to benefits established by Federal, State, or local law; or

‘‘(ii) otherwise superseding the application of any

State or local law.

‘‘(D) ELECTRONIC BENEFIT TRANSFER PROGRAM

DEFINED.—For purposes of this paragraph, the term ‘electronic benefit transfer program’—

‘‘(i) means a program under which a government

agency distributes needs-tested benefits by establishing

accounts to be accessed by recipients electronically,

such as through automated teller machines, or pointof-sale terminals; and

‘‘(ii) does not include employment-related payments, including salaries and pension, retirement, or

unemployment benefits established by Federal, State,

or local governments.’’.
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SEC. 1111. REDUCTION IN BLOCK GRANTS TO STATES FOR SOCIAL

SERVICES.

Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c))

is amended—

(1) by striking ‘‘and’’ at the end of paragraph (4); and

(2) by striking paragraph (5) and inserting the following:

‘‘(5) $2,800,000,000 for each of the fiscal years 1990 through

1996 and for each fiscal year after fiscal year 2002; and ‘‘(6) $2,520,000,000 for each of the fiscal years 1997 through

2002.’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.