In the Senate of the United States,

September 19 (legislative day, September 5), 1995.

Resolved, That the bill from the House of Representatives (H.R. 4) entitled ‘‘An Act to restore the American family, reduce illegitimacy, control welfare spending and reduce

welfare dependence’’, do pass with the following

AMENDMENTS:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Work Opportunity Act of 1995’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of this

2 Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES

Sec. 100. References to Social Security Act.

Sec. 101. Block grants to States.

Sec. 102. Services provided by charitable, religious, or private organizations.

Sec. 103. Limitations on use of funds for certain purposes.

Sec. 104. Continued application of current standards under medicaid program.

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

Sec. 105A. Development of prototype of counterfeit-resistant social security card

required.

Sec. 106. Conforming amendments to the Social Security Act.

Sec. 107. Conforming amendments to the Food Stamp Act of 1977 and related

provisions.

Sec. 108. Conforming amendments to other laws.

Sec. 109. Study of effect of welfare reform on grandparents as primary caregivers.

Sec. 110. Disclosure of receipt of Federal funds.

Sec. 110A. Modifications to the job opportunities for certain low-income individuals program.

Sec. 110B. Demonstration projects for school utilization.

Sec. 110C. Corrective compliance plan.

Sec. 110D. Parental responsibility contracts.

Sec. 110E. Corrective action plan.

Sec. 111. Secretarial submission of legislative proposal for technical and conforming amendments.

Sec. 112. Effective date; transition rule.

TITLE II—SUPPLEMENTAL SECURITY INCOME

Subtitle A—Eligibility Restrictions

Sec. 201. Denial of supplemental security income benefits by reason of disability

to drug addicts and alcoholics.

Sec. 202. Limited eligibility of noncitizens for SSI benefits.

Sec. 203. 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. 204. Denial of SSI benefits for fugitive felons and probation and parole violators.

Sec. 205. Effective dates; application to current recipients.

Subtitle B—Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.

Sec. 212. Eligibility redeterminations and continuing disability reviews.

Sec. 213. Additional accountability requirements.

Subtitle C—Studies Regarding Supplemental Security Income Program

Sec. 221. Annual report on the supplemental security income program.
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Sec. 222. Improvements to disability evaluation.

Sec. 223. Study of disability determination process.

Sec. 224. Study by General Accounting Office.

Subtitle D—National Commission on the Future of Disability

Sec. 231. Establishment.

Sec. 232. Duties of the Commission.

Sec. 233. Membership.

Sec. 234. Staff and support services.

Sec. 235. Powers of Commission.

Sec. 236. Reports.

Sec. 237. Termination.

Subtitle E—State Supplementation Programs

Sec. 241. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Subtitle F—Retirement Age Eligibility

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

TITLE III—FOOD STAMP PROGRAM

Subtitle A—Food Stamp Reform

Sec. 301. Declaration of policy.

Sec. 301A. Certification period.

Sec. 302. Treatment of children living at home.

Sec. 303. Optional additional criteria for separate household determinations.

Sec. 304. Adjustment of thrifty food plan.

Sec. 305. Definition of homeless individual.

Sec. 306. State options in regulations.

Sec. 307. Earnings of students.

Sec. 308. Energy assistance.

Sec. 309. Deductions from income.

Sec. 310. Amount of vehicle asset limitation.

Sec. 311. Benefits for aliens.

Sec. 312. Disqualification.

Sec. 313. Caretaker exemption.

Sec. 314. Employment and training.

Sec. 315. Comparable treatment for disqualification.

Sec. 316. Cooperation with child support agencies.

Sec. 317. Disqualification for child support arrears.

Sec. 318. Permanent disqualification for participating in 2 or more States.

Sec. 319. Work requirement.

Sec. 319A. Disqualification of fleeing felons.

Sec. 320. Electronic benefit transfers.

Sec. 321. Minimum benefit.

Sec. 322. Benefits on recertification.

Sec. 323. Optional combined allotment for expedited households.

Sec. 324. Failure to comply with other welfare and public assistance programs.

Sec. 325. Allotments for households residing in institutions.

Sec. 326. Operation of food stamp offices.

Sec. 327. State employee and training standards.
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Sec. 328. Exchange of law enforcement information.

Sec. 329. Expedited coupon service.

Sec. 330. Fair hearings.

Sec. 331. Income and eligibility verification system.

Sec. 332. Collection of overissuances.

Sec. 333. Termination of Federal match for optional information activities.

Sec. 334. Standards for administration.

Sec. 335. Work supplementation or support program.

Sec. 336. Waiver authority.

Sec. 337. Authorization of pilot projects.

Sec. 338. Response to waivers.

Sec. 339. Private sector employment initiatives.

Sec. 340. Reauthorization of appropriations.

Sec. 341. Reauthorization of Puerto Rico nutrition assistance program.

Sec. 342. Simplified food stamp program.

Sec. 343. Optional State food assistance block grant.

Sec. 344. Effective date.

Subtitle B—Anti-Fraud and Trafficking

Sec. 351. Expanded definition of coupon.

Sec. 352. Doubled penalties for violating food stamp program requirements.

Sec. 353. Authority to establish authorization periods.

Sec. 354. Specific period for prohibiting participation of stores based on lack of

business integrity.

Sec. 355. Information for verifying eligibility for authorization.

Sec. 356. Waiting period for stores that initially fail to meet authorization criteria.

Sec. 357. Bases for suspensions and disqualifications.

Sec. 358. Disqualification of stores pending judicial and administrative review.

Sec. 359. Disqualification of retailers who are disqualified under the WIC program.

Sec. 360. Permanent debarment of retailers who intentionally submit falsified applications.

Sec. 361. Expanded criminal forfeiture for violations.

Sec. 362. Effective date.

TITLE IV—CHILD NUTRITION PROGRAMS

Subtitle A—Reimbursement Rates

Sec. 401. Termination of additional payment for lunches served in high free and

reduced price participation schools.

Sec. 402. Value of food assistance.

Sec. 403. Lunches, breakfasts, and supplements.

Sec. 404. Summer food service program for children.

Sec. 405. Special milk program.

Sec. 406. Free and reduced price breakfasts.

Sec. 407. Conforming reimbursement for paid breakfasts and lunches.

Subtitle B—Grant Programs

Sec. 411. School breakfast startup grants.

Sec. 412. Nutrition education and training programs.

Sec. 413. Effective date.
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Subtitle C—Other Amendments

Sec. 421. Free and reduced price policy statement.

Sec. 422. Summer food service program for children.

Sec. 423. Child and adult care food program.

Sec. 424. Reducing required reports to State agencies and schools.

Subtitle D—Reauthorization

Sec. 431. Commodity distribution program; commodity supplemental food program.

Sec. 432. Emergency food assistance program.

Sec. 433. Soup kitchens program.

Sec. 434. National commodity processing.

Sec. 435. Commodity supplemental food program.

TITLE V—NONCITIZENS

Sec. 501. State option to prohibit assistance for certain aliens.

Sec. 502. Deemed income requirement for Federal and federally funded programs.

Sec. 503. Requirements for sponsor’s affidavit of support.

Sec. 504. Limited eligibility of noncitizens for SSI benefits.

Sec. 505. Treatment of noncitizens.

Sec. 506. Information reporting.

Sec. 507. Prohibition on payment of Federal benefits to certain persons.

TITLE VI—CHILD CARE

Sec. 601. Short title.

Sec. 602. Amendments to the Child Care and Development Block Grant Act of

1990.

Sec. 603. Repeals and technical and conforming amendments.

TITLE VII—PROTECTION OF BATTERED INDIVIDUALS

Sec. 701. Exemption of battered individuals from certain requirements.

TITLE VIII—ADOPTION EXPENSES

Sec. 801. Refundable credit for adoption expenses.

Sec. 802. Exclusion of adoption assistance.

Sec. 803. Withdrawal from IRA for adoption expenses.

TITLE IX—CHILD SUPPORT

Sec. 900. Reference to Social Security Act.

Subtitle A—Eligibility for Services; Distribution of Payments

Sec. 901. State obligation to provide child support enforcement services.

Sec. 902. Distribution of child support collections.

Sec. 903. Rights to notification and hearings.

Sec. 904. Privacy safeguards.

Subtitle B—Locate and Case Tracking

Sec. 911. State case registry.

Sec. 912. Collection and disbursement of support payments.

Sec. 913. State directory of new hires.
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Sec. 914. Amendments concerning income withholding.

Sec. 915. Locator information from interstate networks.

Sec. 916. Expansion of the Federal parent locator service.

Sec. 917. Collection and use of social security numbers for use in child support

enforcement.

Subtitle C—Streamlining and Uniformity of Procedures

Sec. 921. Adoption of uniform State laws.

Sec. 922. Improvements to full faith and credit for child support orders.

Sec. 923. Administrative enforcement in interstate cases.

Sec. 924. Use of forms in interstate enforcement.

Sec. 925. State laws providing expedited procedures.

Subtitle D—Paternity Establishment

Sec. 931. State laws concerning paternity establishment.

Sec. 932. Outreach for voluntary paternity establishment.

Sec. 933. Cooperation by applicants for and recipients of temporary family assistance.

Subtitle E—Program Administration and Funding

Sec. 941. Performance-based incentives and penalties.

Sec. 942. Federal and State reviews and audits.

Sec. 943. Required reporting procedures.

Sec. 944. Automated data processing requirements.

Sec. 945. Technical assistance.

Sec. 946. Reports and data collection by the Secretary.

Subtitle F—Establishment and Modification of Support Orders

Sec. 951. National Child Support Guidelines Commission.

Sec. 952. Simplified process for review and adjustment of child support orders.

Sec. 953. Furnishing consumer reports for certain purposes relating to child support.

Sec. 954. Nonliability for depository institutions providing financial records to

State child support enforcement agencies in child support cases.

Subtitle G—Enforcement of Support Orders

Sec. 961. Internal Revenue Service collection of arrearages.

Sec. 962. Authority to collect support from Federal employees.

Sec. 963. Enforcement of child support obligations of members of the armed

forces.

Sec. 964. Voiding of fraudulent transfers.

Sec. 965. Work requirement for persons owing child support.

Sec. 966. Definition of support order.

Sec. 967. Reporting arrearages to credit bureaus.

Sec. 968. Liens.

Sec. 969. State law authorizing suspension of licenses.

Sec. 970. Denial of passports for nonpayment of child support.

Sec. 971. International child support enforcement.

Sec. 972. Denial of means-tested Federal benefits to noncustodial parents who are

delinquent in paying child support.

Sec. 973. Child support enforcement for Indian tribes.

Sec. 974. Financial institution data matches.
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Subtitle H—Medical Support

Sec. 975. Technical correction to ERISA definition of medical child support

order.

Sec. 976. Enforcement of orders for health care coverage.

Sec. 977. Enforcement of orders against paternal grandparents in cases of minor

parents.

Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential

Parents

Sec. 981. Grants to States for access and visitation programs.

Subtitle J—Effect of Enactment

Sec. 991. Effective dates.

TITLE X—REFORM OF PUBLIC HOUSING

Sec. 1001. Ceiling rents.

Sec. 1002. Definition of adjusted income for public housing.

Sec. 1003. Failure to comply with other welfare and public assistance programs.

Sec. 1004. Applicability to Indian housing.

Sec. 1005. Implementation.

Sec. 1006. Demonstration project for elimination of take-one-take-all requirement.

Sec. 1007. Fraud under means-tested welfare and public assistance programs.

Sec. 1008. Effective date.

TITLE XI—CHILD ABUSE PREVENTION AND TREATMENT

Sec. 1101. Short title.

Subtitle A—General Program

Sec. 1111. Reference.

Sec. 1112. Findings.

Sec. 1113. Office of Child Abuse and Neglect.

Sec. 1114. Advisory Board on Child Abuse and Neglect.

Sec. 1115. Repeal of interagency task force.

Sec. 1116. National Clearinghouse for Information Relating to Child Abuse.

Sec. 1117. Research, evaluation and assistance activities.

Sec. 1118. Grants for demonstration programs.

Sec. 1119. State grants for prevention and treatment programs.

Sec. 1120. Repeal.

Sec. 1121. Miscellaneous requirements.

Sec. 1122. Definitions.

Sec. 1123. Authorization of appropriations.

Sec. 1124. Rule of construction.

Sec. 1125. Technical amendment.

Subtitle B—Community-Based Child Abuse and Neglect Prevention Grants

Sec. 1131. Establishment of program.

Sec. 1132. Repeals.

Subtitle C—Family Violence Prevention and Services

Sec. 1141. Reference.

Sec. 1142. State demonstration grants.
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Sec. 1143. Allotments.

Sec. 1144. Authorization of appropriations.

Subtitle D—Adoption Opportunities

Sec. 1151. Reference.

Sec. 1152. Findings and purpose.

Sec. 1153. Information and services.

Sec. 1154. Authorization of appropriations.

Subtitle E—Abandoned Infants Assistance Act of 1986

Sec. 1161. Reauthorization.

Subtitle F—Reauthorization of Various Programs

Sec. 1171. Missing Children’s Assistance Act.

Sec. 1172. Victims of Child Abuse Act of 1990.

TITLE XII—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 1201. Reductions.

Sec. 1202. Reductions in Federal bureaucracy.

Sec. 1203. Reducing personnel in Washington, DC, area.

TITLE XIII—MISCELLANEOUS PROVISIONS

Sec. 1301. Expenditure of Federal funds in accordance with laws and procedures

applicable to expenditure of State funds.

Sec. 1302. Elimination of housing assistance with respect to fugitive felons and

probation and parole violators.

Sec. 1303. Sense of the Senate regarding Enterprise Zones.

Sec. 1304. Sense of the Senate regarding the inability of the non-custodial parent

to pay child support.

Sec. 1305. Food stamp eligibility.

Sec. 1306. Sense of the Senate on legislative accountability for unfunded mandates in welfare reform legislation.

Sec. 1307. Sense of the Senate regarding competitive bidding for infant formula.

Sec. 1308. Establishing national goals to prevent teenage pregnancies.

Sec. 1309. Sense of the Senate regarding enforcement of statutory rape laws.

Sec. 1310. Sanctioning for testing positive for controlled substances.

Sec. 1311. Abstinence education.

1 TITLE I—BLOCK GRANTS FOR

2 TEMPORARY ASSISTANCE FOR

3 NEEDY FAMILIES

4 SEC. 100. REFERENCES TO SOCIAL SECURITY ACT.

5 Except as otherwise specifically provided, wherever in

6 this title an amendment is expressed in terms of an amend7 ment to or repeal of a section or other provision, the ref-
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1 erence shall be considered to be made to that section or other

2 provision of the Social Security Act.

3 SEC. 101. BLOCK GRANTS TO STATES.

4 (a) REPEALS.—

5 (1) IN GENERAL.—Parts A and F of title IV (42

6 U.S.C. 601 et seq. and 682 et seq.) are hereby re7 pealed.

8 (2) RULES AND REGULATIONS.—The Secretary of

9 Health and Human Services shall ensure that any

10 rules and regulations relating to the provisions of law

11 repealed in paragraph (1) shall cease to have effect on

12 and after the date of the repeal of such provisions.

13 (b) BLOCK GRANTS TO STATES FOR TEMPORARY AS14 SISTANCE FOR NEEDY FAMILIES WITH MINOR CHIL15 DREN.—Title IV (42 U.S.C. 601 et seq.) is amended by in16 serting before part B the following:

17 ‘‘PART A—BLOCK GRANTS TO STATES FOR TEM18 PORARY ASSISTANCE FOR NEEDY FAMILIES

19 WITH MINOR CHILDREN

20 ‘‘SEC. 400. NO INDIVIDUAL ENTITLEMENT.

21 ‘‘Notwithstanding any other provision of law, no indi22 vidual is entitled to any assistance under this part.

23 ‘‘SEC. 401. PURPOSE.

24 ‘‘The purpose of this part is to increase the flexibility

25 of States in operating a program designed to—
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1 ‘‘(1) provide assistance to needy families with

2 minor children;

3 ‘‘(2) provide job preparation and opportunities

4 for such families; and

5 ‘‘(3) prevent and reduce the incidence of out-of6 wedlock pregnancies, with a special emphasis on teen7 age pregnancies, and establish annual goals for pre8 venting and reducing such pregnancies with respect to

9 fiscal years 1996 through 2000.

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

11 ‘‘(a) IN GENERAL.—As used in this part, the term ‘eli12 gible State’ means, with respect to a fiscal year, a State

13 that has submitted to the Secretary a plan that includes

14 the following:

15 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO16 GRAM.—A written document that outlines how the

17 State intends to do the following:

18 ‘‘(A) Conduct a program designed to serve

19 all political subdivisions in the State to—

20 ‘‘(i) provide assistance to needy fami21 lies with not less than 1 minor child (or

22 any expectant family); and

23 ‘‘(ii) provide a parent or caretaker in

24 such families with work experience, assist25 ance in finding employment, and other
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1 work preparation activities and support

2 services that the State considers appropriate

3 to enable such families to leave the program

4 and become self-sufficient.

5 ‘‘(B) Require a parent or caretaker receiv6 ing assistance under the program to engage in

7 work (as defined by the State) when the State de8 termines the parent or caretaker is ready to en9 gage in work, or after 24 months (whether or not

10 consecutive) of receiving assistance under the

11 program, whichever is earlier.

12 ‘‘(C) Satisfy the minimum participation

13 rates specified in section 404.

14 ‘‘(D) Treat—

15 ‘‘(i) families with minor children mov16 ing into the State from another State; and

17 ‘‘(ii) noncitizens of the United States.

18 ‘‘(E) Safeguard and restrict the use and

19 disclosure of information about individuals and

20 families receiving assistance under the program.

21 ‘‘(F) Establish goals and take action to pre22 vent and reduce the incidence of out-of-wedlock

23 pregnancies, with special emphasis on teenage

24 pregnancies.
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1 ‘‘(G) COMMUNITY SERVICE.—Not later than

2 2 years after the date of the enactment of this

3 Act, consistent with the exception provided in

4 section 404(d), require participation by, and

5 offer to, unless the State opts out of this provi6 sion by notifying the Secretary, a parent or

7 caretaker receiving assistance under the pro8 gram, after receiving such assistance for 3

9 months—

10 ‘‘(i) is not exempt from work require11 ments; and

12 ‘‘(ii) is not engaged in work as deter13 mined under section 404(c),

14 in community service employment, with mini15 mum hours per week and tasks to be determined

16 by the State.

17 ‘‘(2) FAMILY ASSISTANCE PROGRAM STRATEGIC

18 PLAN.—

19 ‘‘(A) IN GENERAL.—A single comprehensive

20 State Family Assistance Program Strategic Plan

21 (hereafter referred to in this section as the ‘State

22 Plan’) describing a 3-year strategic plan for the

23 statewide program designed to meet the State

24 goals and reach the State benchmarks for pro25 gram activities of the family assistance program.
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1 ‘‘(B) CONTENTS OF THE STATE PLAN.—The

2 State plan shall include:

3 ‘‘(i) STATE GOALS.—A description of

4 the goals of the 3-year plan, including out5 come related goals of and benchmarks for

6 program activities of the family assistance

7 program.

8 ‘‘(ii) CURRENT YEAR PLAN.—A de9 scription of how the goals and benchmarks

10 described in clause (i) will be achieved, or

11 how progress toward the goals and bench12 marks will be achieved, during the fiscal

13 year in which the plan has been submitted.

14 ‘‘(iii) PERFORMANCE INDICATORS.—A

15 description of performance indicators to be

16 used in measuring or assessing the relevant

17 output service levels and outcomes of rel18 evant program activities.

19 ‘‘(iv) EXTERNAL FACTORS.—Informa20 tion on those key factors external to the pro21 gram and beyond the control of the State

22 that could significantly affect the attain23 ment of the goals and benchmarks.

24 ‘‘(v) EVALUATION MECHANISMS.—In25 formation on a mechanism for conducting
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1 program evaluation, to be used to compare

2 actual results with the goals and bench3 marks and designate the results on a scale

4 ranging from highly successful to failing to

5 reach the goals and benchmarks of the pro6 gram.

7 ‘‘(vi) MINIMUM PARTICIPATION

8 RATES.—Information on how the minimum

9 participation rates specified in section 404

10 will be satisfied.

11 ‘‘(vii) ESTIMATE OF EXPENDITURES.—

12 An estimate of the total amount of State or

13 local expenditures under the program for

14 the fiscal year in which the plan is submit15 ted.

16 ‘‘(3) CERTIFICATION THAT THE STATE WILL OP17 ERATE A CHILD SUPPORT ENFORCEMENT PROGRAM.—

18 A certification by the chief executive officer of the

19 State that, during the fiscal year, the State will oper20 ate a child support enforcement program under the

21 State plan approved under part D.

22 ‘‘(4) CERTIFICATION THAT THE STATE WILL OP23 ERATE A CHILD PROTECTION PROGRAM.—A certifi24 cation by the chief executive officer of the State that,

25 during the fiscal year, the State will operate a child
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1 protection program under the State plan approved

2 under part B.

3 ‘‘(5) CERTIFICATION THAT THE STATE WILL OP4 ERATE A FOSTER CARE AND ADOPTION ASSISTANCE

5 PROGRAM.—A certification by the chief executive offi6 cer of the State that, during the fiscal year, the State

7 will operate a foster care and adoption assistance

8 program under the State plan approved under part

9 E.

10 ‘‘(6) CERTIFICATION THAT THE STATE WILL PAR11 TICIPATE IN THE INCOME AND ELIGIBILITY VERIFICA12 TION SYSTEM.—A certification by the chief executive

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

14 State will participate in the income and eligibility

15 verification system required by section 1137.

16 ‘‘(7) CERTIFICATION OF THE ADMINISTRATION

17 OF THE PROGRAM.—A certification by the chief execu18 tive officer of the State specifying which State agency

19 or agencies are responsible for the administration and

20 supervision of the State program for the fiscal year

21 and ensuring that local governments and private sec22 tor organizations have been consulted regarding the

23 plan and design of welfare services in the State so

24 that services are provided in a manner appropriate

25 to local populations.
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1 ‘‘(8) CERTIFICATION THAT REQUIRED REPORTS

2 WILL BE SUBMITTED.—A certification by the chief ex3 ecutive officer of the State that the State shall provide

4 the Secretary with any reports required under this

5 part.

6 ‘‘(9) ESTIMATE OF FISCAL YEAR STATE AND

7 LOCAL EXPENDITURES.—An estimate of the total

8 amount of State and local expenditures under the

9 State program for the fiscal year.

10 ‘‘(b) CERTIFICATION THAT THE STATE WILL PROVIDE

11 ACCESS TO INDIANS.—

12 ‘‘(1) IN GENERAL.—In recognition of the Federal

13 Government’s trust responsibility to, and government14 to-government relationship with, Indian tribes, the

15 Secretary shall ensure that Indians receive at least

16 their equitable share of services under the State pro17 gram, by requiring a certification by the chief execu18 tive officer of each State described in paragraph (2)

19 that, during the fiscal year, the State shall provide

20 Indians in each Indian tribe that does not have a

21 tribal family assistance plan approved under section

22 414 for a fiscal year with equitable access to assist23 ance under the State program funded under this part.

24 ‘‘(2) STATE DESCRIBED.—For purposes of para25 graph (1), a State described in this paragraph is a
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1 State in which there is an Indian tribe that does not

2 have a tribal family assistance plan approved under

3 section 414 for a fiscal year.

4 ‘‘(c) DISTRIBUTION OF STATE PLAN.—

5 ‘‘(1) PUBLIC AVAILABILITY OF SUMMARY.—The

6 State shall make available to the public a summary

7 of the State plan submitted under this section.

8 ‘‘(2) COPY TO AUDITOR.—The State shall provide

9 the approved entity conducting the audit under sec10 tion 408 with a copy of the State plan submitted

11 under this section.

12 ‘‘(d) DEFINITIONS.—For purposes of this part, the fol13 lowing definitions shall apply:

14 ‘‘(1) ADULT.—The term ‘adult’ means an indi15 vidual who is not a minor child.

16 ‘‘(2) MINOR CHILD.—The term ‘minor child’

17 means an individual—

18 ‘‘(A) who—

19 ‘‘(i) has not attained 18 years of age;

20 or

21 ‘‘(ii) has not attained 19 years of age

22 and is a full-time student in a secondary

23 school (or in the equivalent level of voca24 tional or technical training); and
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1 ‘‘(B) who resides with such individual’s cus2 todial parent or other caretaker relative.

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

4 means any 12-month period ending on September 30

5 of a calendar year.

6 ‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI7 ZATION.—

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

9 subparagraph (B), the terms ‘Indian’, ‘Indian

10 tribe’, and ‘tribal organization’ have the mean11 ing given such terms by section 4 of the Indian

12 Self-Determination and Education Assistance

13 Act (25 U.S.C. 450b).

14 ‘‘(B) IN ALASKA.—For purposes of making

15 tribal family assistance grants under section 414

16 on behalf of Indians in Alaska, the term ‘Indian

17 tribe’ shall mean only the following Alaska Na18 tive regional nonprofit corporations:

19 ‘‘(i) Arctic Slope Native Association.

20 ‘‘(ii) Kawerak, Inc.

21 ‘‘(iii) Maniilaq Association.

22 ‘‘(iv) Association of Village Council

23 Presidents.

24 ‘‘(v) Tanana Chiefs Conference.

25 ‘‘(vi) Cook Inlet Tribal Council.
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1 ‘‘(vii) Bristol Bay Native Association.

2 ‘‘(viii) Aleutian and Pribilof Island

3 Association.

4 ‘‘(ix) Chugachmuit.

5 ‘‘(x) Tlingit Haida Central Council.

6 ‘‘(xi) Kodiak Area Native Association.

7 ‘‘(xii) Copper River Native Associa8 tion.

9 ‘‘(5) STATE.—Except as otherwise specifically

10 provided, the term ‘State’ includes the several States,

11 the District of Columbia, the Commonwealth of Puer12 to Rico, the United States Virgin Islands, Guam, and

13 American Samoa.

14 ‘‘SEC. 403. PAYMENTS TO STATES AND INDIAN TRIBES.

15 ‘‘(a) GRANT AMOUNT.—

16 ‘‘(1) IN GENERAL.—Subject to the provisions of

17 paragraphs (3) and (5), section 407 (relating to pen18 alties), and section 414(g), for each of fiscal years

19 1996, 1997, 1998, 1999, and 2000, the Secretary shall

20 pay—

21 ‘‘(A) each eligible State a grant in an

22 amount equal to the State family assistance

23 grant for the fiscal year, for each of fiscal years

24 1998 and 1999, the amount of the State’s job

25 placement performance bonus determined under
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1 subsection (f)(1) for the fiscal year, and for fiscal

2 year 2000, the amount of the State’s share of the

3 performance bonus and high performance bonus

4 determined under section 418 for such fiscal

5 year; and

6 ‘‘(B) each Indian tribe with an approved

7 tribal family assistance plan a tribal family as8 sistance grant in accordance with section 414.

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

10 ‘‘(A) IN GENERAL.—For purposes of para11 graph (1)(A), a State family assistance grant for

12 any State for a fiscal year is an amount equal

13 to the sum of—

14 ‘‘(i) the total amount of the Federal

15 payments to the State under section 403

16 (other than Federal payments to the State

17 described in subparagraphs (A), (B) and

18 (C) of section 419(a)(2)) for fiscal year

19 1994 (as such section 403 was in effect dur20 ing such fiscal year), plus

21 ‘‘(ii) the total amount of the Federal

22 payments to the State under subparagraphs

23 (A), (B) and (C) of section 419(a)(2),

24 as such payments were reported by the State on

25 February 14, 1995, reduced by the amount, if
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1 any, determined under subparagraph (B), and

2 for fiscal year 2000, reduced by the percent spec3 ified under section 418(a)(3), and increased by

4 an amount, if any, determined under paragraph

5 (2)(D).

6 ‘‘(B) AMOUNT ATTRIBUTABLE TO CERTAIN

7 INDIAN FAMILIES SERVED BY INDIAN TRIBES.—

8 ‘‘(i) IN GENERAL.—For purposes of

9 subparagraph (A), the amount determined

10 under this subparagraph is an amount

11 equal to the Federal payments to the State

12 under section 403 for fiscal year 1994 (as

13 in effect during such fiscal year) attrib14 utable to expenditures by the State under

15 parts A and F of this title (as so in effect)

16 for Indian families described in clause (ii).

17 ‘‘(ii) INDIAN FAMILIES DESCRIBED.—

18 For purposes of clause (i), Indian families

19 described in this clause are Indian families

20 who reside in a service area or areas of an

21 Indian tribe receiving a tribal family as22 sistance grant under section 414.

23 ‘‘(C) NOTIFICATION.—Not later than 3

24 months prior to the payment of each quarterly

25 installment of a State grant under subsection
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1 (a)(1), the Secretary shall notify the State of the

2 amount of the reduction determined under sub3 paragraph (B) with respect to the State.

4 ‘‘(D) AMOUNT ATTRIBUTABLE TO STATE

5 PLAN AMENDMENTS.—

6 ‘‘(i) IN GENERAL.—For purposes of

7 subparagraph (A) and subject to the limita8 tion in clause (ii), the amount determined

9 under this subparagraph is an amount

10 equal to the Federal payment under section

11 403(a)(5) to the State for emergency assist12 ance in fiscal year 1995 under any State

13 plan amendment made under section 402

14 during fiscal year 1994 (as such sections

15 were in effect before the date of the enact16 ment of the Work Opportunity Act of 1995).

17 ‘‘(ii) LIMITATION.—Amounts made

18 available under clause (i) to all States shall

19 not exceed $800,000,000 for the 5-fiscal year

20 period beginning in fiscal year 1996. If

21 amounts available under this subparagraph

22 are less than the total amount of emergency

23 assistance payments referred to in clause

24 (i), the amount payable to a State shall be

25 equal to an amount which bears the same
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1 relationship to the total amount available

2 under this clause as the State emergency as3 sistance payment bears to the total amount

4 of such payments.

5 ‘‘(iii) BUDGET SCORING.—Notwith6 standing section 257(b)(2) of the Balanced

7 Budget and Emergency Deficit Control Act

8 of 1985, the baseline shall assume that no

9 grant shall be made under this subpara10 graph after fiscal year 2000.

11 ‘‘(3) SUPPLEMENTAL GRANT AMOUNT FOR POPU12 LATION INCREASES IN CERTAIN STATES.—

13 ‘‘(A) IN GENERAL.—The amount of the

14 grant payable under paragraph (1) to a qualify15 ing State for each of fiscal years 1997, 1998,

16 1999, and 2000 shall be increased by an amount

17 equal to 2.5 percent of the amount that the State

18 received under this section in the preceding fiscal

19 year.

20 ‘‘(B) INCREASE TO REMAIN IN EFFECT EVEN

21 IF STATE FAILS TO QUALIFY IN LATER YEARS.—

22 Subject to section 407, in no event shall the

23 amount of a grant payable under paragraph (1)

24 to a State for any fiscal year be less than the
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1 amount the State received under this section for

2 the preceding fiscal year.

3 ‘‘(C) QUALIFYING STATE.—

4 ‘‘(i) IN GENERAL.—For purposes of

5 this paragraph, the term ‘qualifying State’,

6 with respect to any fiscal year, means a

7 State that—

8 ‘‘(I) had an average level of State

9 welfare spending per poor person in

10 the preceding fiscal year that was less

11 than the national average level of State

12 welfare spending per poor person in

13 the preceding fiscal year; and

14 ‘‘(II) had an estimated rate of

15 State population growth as determined

16 by the Bureau of the Census for the

17 most recent fiscal year for which infor18 mation is available that was greater

19 than the average rate of population

20 growth for all States as determined by

21 the Bureau of the Census for such fiscal

22 year.

23 ‘‘(ii) CERTAIN STATES DEEMED

24 QUALIFYING STATES.—For purposes of this

25 paragraph, a State shall be deemed to be a
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1 qualifying State for fiscal years 1997, 1998,

2 1999, and 2000 if—

3 ‘‘(I) the level of State welfare

4 spending per poor person in fiscal year

5 1996 was less than 35 percent of the

6 national average level of State welfare

7 spending per poor person in fiscal year

8 1996; or

9 ‘‘(II) a State has extremely high

10 population growth (which for purposes

11 of this clause shall be defined as a

12 greater than ten percent increase in

13 population from April 1, 1990 to July

14 1, 1994, as determined by the Bureau

15 of the Census).

16 ‘‘(iii) STATE MUST QUALIFY IN FISCAL

17 YEAR 1997.—A State shall not be eligible to

18 be a qualifying State under clause (i) for

19 fiscal years after 1997 if the State was not

20 a qualifying State under clause (i) in fiscal

21 year 1997.

22 ‘‘(D) DEFINITIONS.—For purposes of this

23 paragraph:

24 ‘‘(i) LEVEL OF STATE WELFARE

25 SPENDING PER POOR PERSON.—The term
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1 ‘level of State welfare spending per poor

2 person’ means, with respect to a State for

3 any fiscal year—

4 ‘‘(I) the amount of the grant re5 ceived by the State under this section

6 (prior to the application of section

7 407); divided by

8 ‘‘(II) the number of the individ9 uals in the State who had an income

10 below the poverty line according to the

11 1990 decennial census.

12 ‘‘(ii) NATIONAL AVERAGE LEVEL OF

13 STATE WELFARE SPENDING PER POOR PER14 SON.—The term ‘national average level of

15 State welfare spending per poor person’

16 means an amount equal to—

17 ‘‘(I) the amount paid in grants

18 under this section (prior to the appli19 cation of section 407); divided by

20 ‘‘(II) the number of individuals in

21 all States with an income below the

22 poverty line according to the 1990 de23 cennial census.

24 ‘‘(iii) POVERTY LINE.—The term ‘pov25 erty line’ has the same meaning given such
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1 term in section 673(2) of the Community

2 Services Block Grant Act (42 U.S.C.

3 9902(2)).

4 ‘‘(iv) STATE.—The term ‘State’ means

5 each of the 50 States of the United States.

6 ‘‘(4) APPROPRIATION.—

7 ‘‘(A) STATES.—There are authorized to be

8 appropriated and there are appropriated

9 $16,803,769,000 for each fiscal year described in

10 paragraph (1) for the purpose of paying—

11 ‘‘(i) grants to States under paragraph

12 (1)(A); and

13 ‘‘(ii) tribal family assistance grants

14 under paragraph (1)(B).

15 ‘‘(B) ADJUSTMENT FOR QUALIFYING

16 STATES.—For the purpose of increasing the

17 amount of the grant payable to a State under

18 paragraph (1) in accordance with paragraph

19 (3), there are authorized to be appropriated and

20 there are appropriated—

21 ‘‘(i) for fiscal year 1997, $85,860,000;

22 ‘‘(ii) for fiscal year 1998,

23 $173,276,000;

24 ‘‘(iii) for fiscal year 1999,

25 $263,468,000; and
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1 ‘‘(iv) for fiscal year 2000,

2 $355,310,000.

3 ‘‘(5) WELFARE PARTNERSHIP.—

4 ‘‘(A) IN GENERAL.—The amount of the

5 grant otherwise determined under paragraph (1)

6 for fiscal year 1997, 1998, 1999, or 2000 shall

7 be reduced by the amount by which State ex8 penditures under the State program funded

9 under this part for the preceding fiscal year is

10 less than 80 percent of historic State expendi11 tures.

12 ‘‘(B) HISTORIC STATE EXPENDITURES.—

13 For purposes of this paragraph—

14 ‘‘(i) IN GENERAL.—The term ‘historic

15 State expenditures’ means expenditures by a

16 State under parts A and F of title IV for

17 fiscal year 1994, as in effect during such

18 fiscal year.

19 ‘‘(ii) HOLD HARMLESS.—In no event

20 shall the historic State expenditures appli21 cable to any fiscal year exceed the amount

22 which bears the same ratio to the amount

23 determined under clause (i) as—

24 ‘‘(I) the grant amount otherwise

25 determined under paragraph (1) for
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1 the preceding fiscal year (without re2 gard to section 407), bears to

3 ‘‘(II) the total amount of Federal

4 payments to the State under section

5 403 for fiscal year 1994 (as in effect

6 during such fiscal year).

7 ‘‘(C) DETERMINATION OF STATE EXPENDI8 TURES FOR PRECEDING FISCAL YEAR.—

9 ‘‘(i) IN GENERAL.—For purposes of

10 this paragraph, the expenditures of a State

11 under the State program funded under this

12 part for a preceding fiscal year shall be

13 equal to the sum of the State’s expenditures

14 under the program in the preceding fiscal

15 year for—

16 ‘‘(I) cash assistance;

17 ‘‘(II) child care assistance;

18 ‘‘(III) education, job training,

19 and work;

20 ‘‘(IV) administrative costs; and

21 ‘‘(V) any other use of funds allow22 able under section 403(b)(1).

23 ‘‘(ii) TRANSFERS FROM OTHER STATE

24 AND LOCAL PROGRAMS.—In determining

25 State expenditures under clause (i), such ex-
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1 penditures shall not include funding sup2 planted by transfers from other State and

3 local programs.

4 ‘‘(D) EXCLUSION OF FEDERAL AMOUNTS.—

5 For purposes of this paragraph, State expendi6 tures shall not include any expenditures from

7 amounts made available by the Federal Govern8 ment, State funds expended for the medicaid pro9 gram under title XIX of this Act or any succes10 sor to such program, and any State funds which

11 are used to match Federal funds or are expended

12 as a condition of receiving Federal funds under

13 Federal programs other than under title I of this

14 Act.

15 ‘‘(b) USE OF GRANT.—

16 ‘‘(1) IN GENERAL.—Subject to this part, a State

17 to which a grant is made under this section may use

18 the grant—

19 ‘‘(A) in any manner that is reasonably cal20 culated to accomplish the purpose of this part; or

21 ‘‘(B) in any manner that such State used

22 amounts received under part A or F of this title,

23 as such parts were in effect before October 1,

24 1995;
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1 except that not more than 15 percent of the grant

2 may be used for administrative purposes.

3 ‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI4 GRANTS UNDER RULES OF FORMER STATE.—A State

5 to which a grant is made under this section may

6 apply to a family some or all of the rules (including

7 benefit amounts) of the program operated under this

8 part of another State if the family has moved to the

9 State from the other State and has resided in the

10 State for less than 12 months.

11 ‘‘(3) AUTHORITY TO RESERVE CERTAIN AMOUNTS

12 FOR ASSISTANCE.—A State may reserve amounts

13 paid to the State under this part for any fiscal year

14 for the purpose of providing, without fiscal year limi15 tation, assistance under the State program operated

16 under this part. In the case of amounts paid to the

17 State that are set aside in accordance with section

18 419(a), the State may reserve such amounts for any

19 fiscal year only for the purpose of providing without

20 fiscal year limitation child care assistance under this

21 part.

22 ‘‘(4) AUTHORITY TO OPERATE EMPLOYMENT

23 PLACEMENT PROGRAM.—A State to which a grant is

24 made under this section may use a portion of the

25 grant to make payments (or provide job placement
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1 vouchers) to State-approved public and private job

2 placement agencies that provide employment place3 ment services to individuals who receive assistance

4 under the State program funded under this part.

5 ‘‘(5) TRANSFERABILITY OF GRANT AMOUNTS.—A

6 State may use up to 30 percent of amounts received

7 from a grant under this part for a fiscal year to

8 carry out State activities under the Child Care and

9 Development Block Grant Act of 1990 (42 U.S.C.

10 9858 et seq.) (relating to child care block grants).

11 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall pay

12 each grant payable to a State under this section in quar13 terly installments.

14 ‘‘(d) FEDERAL LOAN FUND FOR STATE WELFARE

15 PROGRAMS.—

16 ‘‘(1) ESTABLISHMENT.—There is hereby estab17 lished in the Treasury of the United States a revolv18 ing loan fund which shall be known as the ‘Federal

19 Loan Fund for State Welfare Programs’ (hereafter for

20 purposes of this section referred to as the ‘fund’).

21 ‘‘(2) DEPOSITS INTO FUND.—

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

23 in the Treasury of the United States not other24 wise appropriated, $1,700,000,000 are hereby
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1 appropriated for fiscal year 1996 for payment to

2 the fund.

3 ‘‘(B) LOAN REPAYMENTS.—The Secretary

4 shall deposit into the fund any principal or in5 terest payment received with respect to a loan

6 made under this subsection.

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

8 authorized to remain available without fiscal year

9 limitation for the purpose of making loans and re10 ceiving payments of principal and interest on such

11 loans, in accordance with this subsection.

12 ‘‘(4) USE OF FUND.—

13 ‘‘(A) LOANS TO STATES.—The Secretary

14 shall make loans from the fund to any loan-eligi15 ble State, as defined in subparagraph (D), for a

16 period to maturity of not more than 3 years.

17 ‘‘(B) RATE OF INTEREST.—The Secretary

18 shall charge and collect interest on any loan

19 made under subparagraph (A) at a rate equal to

20 the current average market yield on outstanding

21 marketable obligations of the United States with

22 remaining periods to maturity comparable to the

23 period to maturity of the loan.

24 ‘‘(C) MAXIMUM LOAN.—The cumulative

25 amount of any loans made to a State under sub-
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1 paragraph (A) during fiscal years 1996 through

2 2000 shall not exceed 10 percent of the State

3 family assistance grant under subsection (a)(2)

4 for a fiscal year.

5 ‘‘(D) LOAN-ELIGIBLE STATE.—For purposes

6 of subparagraph (A), a loan-eligible State is a

7 State which has not had a penalty described in

8 section 407(a)(1) imposed against it at any time

9 prior to the loan being made.

10 ‘‘(5) LIMITATION ON USE OF LOAN.—A State

11 shall use a loan received under this subsection only

12 for any purpose for which grant amounts received by

13 the State under subsection (a) may be used includ14 ing—

15 ‘‘(A) welfare anti-fraud activities; and

16 ‘‘(B) the provision of assistance under the

17 State program to Indian families that have

18 moved from the service area of an Indian tribe

19 with a tribal family assistance plan approved

20 under section 414.

21 ‘‘(e) SPECIAL RULE FOR INDIAN TRIBES THAT RE22 CEIVED JOBS FUNDS.—

23 ‘‘(1) IN GENERAL.—The Secretary shall pay to

24 each eligible Indian tribe for each of fiscal years

25 1996, 1997, 1998, 1999, and 2000 a grant in an
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1 amount equal to the amount received by such Indian

2 tribe in fiscal year 1995 under section 482(i) (as in

3 effect during such fiscal year) for the purpose of oper4 ating a program to make work activities available to

5 members of the Indian tribe.

6 ‘‘(2) ELIGIBLE INDIAN TRIBE.—For purposes of

7 paragraph (1), the term ‘eligible Indian tribe’ means

8 an Indian tribe or Alaska Native organization that

9 conducted a job opportunities and basic skills train10 ing program in fiscal year 1995 under section 482(i)

11 (as in effect during such fiscal year).

12 ‘‘(3) APPROPRIATION.—There are authorized to

13 be appropriated and there are hereby appropriated

14 $7,638,474 for each fiscal year described in para15 graph (1) for the purpose of paying grants in accord16 ance with such paragraph.

17 ‘‘(f) JOB PLACEMENT PERFORMANCE BONUS.—

18 ‘‘(1) IN GENERAL.—The job placement perform19 ance bonus determined with respect to a State and a

20 fiscal year is an amount equal to the amount of the

21 State’s allocation of the job placement performance

22 fund determined in accordance with the formula de23 veloped under paragraph (2).

24 ‘‘(2) ALLOCATION FORMULA; BONUS FUND.—

25 ‘‘(A) ALLOCATION FORMULA.—
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1 ‘‘(i) IN GENERAL.—Not later than Sep2 tember 30, 1996, the Secretary of Health

3 and Human Services shall develop and pub4 lish in the Federal Register a formula for

5 allocating amounts in the job placement

6 performance bonus fund to States based on

7 the number of families that received assist8 ance under a State program funded under

9 this part in the preceding fiscal year that

10 became ineligible for assistance under the

11 State program as a result of unsubsidized

12 employment during such year.

13 ‘‘(ii) FACTORS TO CONSIDER.—In de14 veloping the allocation formula under clause

15 (i), the Secretary shall—

16 ‘‘(I) provide a greater financial

17 bonus for individuals in families de18 scribed in clause (i) who remain em19 ployed for greater periods of time or

20 are at greater risk of long-term welfare

21 dependency; and

22 ‘‘(II) take into account the unem23 ployment conditions of each State or

24 geographic area.
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1 ‘‘(B) JOB PLACEMENT PERFORMANCE

2 BONUS FUND.—

3 ‘‘(i) IN GENERAL.—The amount in the

4 job placement performance bonus fund for a

5 fiscal year shall be an amount equal to the

6 applicable percentage of the amount appro7 priated under section 403(a)(2)(A) for such

8 fiscal year.

9 ‘‘(ii) APPLICABLE PERCENTAGE.—For

10 purposes of clause (i)(I), the applicable per11 centage shall be determined in accordance

12 with the following table:

The applicable

‘‘For fiscal year: percentage is:

1998 ................................................................................................ 3

1999 ................................................................................................ 4 .

13 ‘‘(g) ADDITIONAL AMOUNT FOR STUDIES AND DEM14 ONSTRATIONS.—

15 ‘‘(1) IN GENERAL.—There are authorized to be

16 appropriated and there are appropriated for each fis17 cal year described in subsection (a)(1) an additional

18 $20,000,000 for the purpose of paying—

19 ‘‘(A) the Federal share of any State-initi20 ated study approved under section 410(g);

21 ‘‘(B) an amount determined by the Sec22 retary to be necessary to operate and evaluate

23 demonstration projects, relating to part A of title
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1 IV of this Act, that are in effect or approved

2 under section 1115 as of October 1, 1995, and

3 are continued after such date;

4 ‘‘(C) the cost of conducting the research de5 scribed in section 410(a); and

6 ‘‘(D) the cost of developing and evaluating

7 innovative approaches for reducing welfare de8 pendency and increasing the well-being of minor

9 children under section 410(b).

10 ‘‘(2) ALLOCATION.—Of the amount appropriated

11 under paragraph (1) for a fiscal year—

12 ‘‘(A) 50 percent shall be allocated for the

13 purposes described in subparagraphs (A) and

14 (B) of paragraph (1), and

15 ‘‘(B) 50 percent shall be allocated for the

16 purposes described in subparagraphs (C) and

17 (D) of paragraph (1).

18 ‘‘(h) SECRETARY.—For purposes of this section, the

19 term ‘Secretary’ means the Secretary of the Treasury.

20 ‘‘(i) CONTINGENCY FUND.—

21 ‘‘(1) ESTABLISHMENT.—There is hereby estab22 lished in the Treasury of the United States a fund

23 which shall be known as the ‘Contingency Fund for

24 State Welfare Programs’ (hereafter in this section re25 ferred to as the ‘Fund’).
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1 ‘‘(2) DEPOSITS INTO FUND.—Out of any money

2 in the Treasury of the United States not otherwise

3 appropriated, there are hereby appropriated for fiscal

4 years 1996, 1997, 1998, 1999, 2000, 2001, and 2002

5 such sums as are necessary for payment to the Fund

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

7 ‘‘(3) COMPUTATION OF GRANT.—

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graph (B), the Secretary of the Treasury shall

10 pay to each eligible State in a fiscal year an

11 amount equal to the Federal medical assistance

12 percentage for such State for such fiscal year (as

13 defined in section 1905(b)) of so much of the ex14 penditures by the State in such year under the

15 State program funded under this part as exceed

16 the historic State expenditures for such State.

17 ‘‘(B) LIMITATION.—The total amount paid

18 to a State under subparagraph (A) for any fiscal

19 year shall not exceed an amount equal to 20 per20 cent of the annual amount determined for such

21 State under the State program funded under this

22 part (without regard to this subsection) for such

23 fiscal year.

24 ‘‘(C) METHOD OF COMPUTATION, PAYMENT,

25 AND RECONCILIATION.—
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1 ‘‘(i) METHOD OF COMPUTATION.—The

2 method of computing and paying such

3 amounts shall be as follows:

4 ‘‘(I) The Secretary of Health and

5 Human Services shall estimate the

6 amount to be paid to the State for each

7 quarter under the provisions of sub8 paragraph (A), such estimate to be

9 based on a report filed by the State

10 containing its estimate of the total sum

11 to be expended in such quarter and

12 such other information as the Sec13 retary may find necessary.

14 ‘‘(II) The Secretary of Health and

15 Human Services shall then certify to

16 the Secretary of the Treasury the

17 amount so estimated by the Secretary

18 of Health and Human Services.

19 ‘‘(ii) METHOD OF PAYMENT.—The Sec20 retary of the Treasury shall thereupon,

21 through the Fiscal Service of the Depart22 ment of the Treasury and prior to audit or

23 settlement by the General Accounting Office,

24 pay to the State, at the time or times fixed
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1 by the Secretary of Health and Human

2 Services, the amount so certified.

3 ‘‘(iii) METHOD OF RECONCILIATION.—

4 If at the end of each fiscal year, the Sec5 retary of Health and Human Services finds

6 that a State which received amounts from

7 the Fund in such fiscal year did not meet

8 the maintenance of effort requirement under

9 paragraph (5)(B) for such fiscal year, the

10 Secretary shall reduce the State family as11 sistance grant for such State for the succeed12 ing fiscal year by such amounts.

13 ‘‘(4) USE OF GRANT.—

14 ‘‘(A) IN GENERAL.—An eligible State may

15 use the grant—

16 ‘‘(i) in any manner that is reasonably

17 calculated to accomplish the purpose of this

18 part; or

19 ‘‘(ii) in any manner that such State

20 used amounts received under part A or F of

21 this title, as such parts were in effect before

22 October 1, 1995.

23 ‘‘(B) REFUND OF UNUSED PORTION.—Any

24 amount of a grant under this subsection not used
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1 during the fiscal year shall be returned to the

2 Fund.

3 ‘‘(5) ELIGIBLE STATE.—

4 ‘‘(A) IN GENERAL.—For purposes of this

5 subsection, a State is an eligible State with re6 spect to a fiscal year, if—

7 ‘‘(i)(I) the average rate of total unem8 ployment in such State (seasonally ad9 justed) for the period consisting of the most

10 recent 3 months for which data for all

11 States are published equals or exceeds 6.5

12 percent, and

13 ‘‘(II) the average rate of total unem14 ployment in such State (seasonally ad15 justed) for the 3-month period equals or ex16 ceeds 110 percent of such average rate for

17 either (or both) of the corresponding 3-

18 month periods ending in the 2 preceding

19 calendar years; and

20 ‘‘(ii) has met the maintenance of effort

21 requirement under subparagraph (B) for the

22 State program funded under this part for

23 the fiscal year.

24 ‘‘(B) MAINTENANCE OF EFFORT.—The

25 maintenance of effort requirement for any State
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1 under this subparagraph for any fiscal year is

2 the expenditure of an amount at least equal to

3 100 percent of the level of historic State expendi4 tures for such State (as determined under sub5 section (a)(5)).

6 ‘‘(6) ANNUAL REPORTS.—The Secretary of the

7 Treasury shall annually report to the Congress on the

8 status of the Fund.

9 ‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.

10 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A State

11 to which a grant is made under section 403 for a fiscal

12 year shall achieve the minimum participation rate specified

13 in the following tables for the fiscal year with respect to—

14 ‘‘(1) all families receiving assistance under the

15 State program funded under this part:

The minimum

participation

‘‘If the fiscal year is: rate for all families is:

1996 .................................................................... 25

1997 .................................................................... 30

1998 .................................................................... 35

1999 .................................................................... 40

2000 or thereafter .............................................. 50; and

16 ‘‘(2) with respect to 2-parent families receiving

17 such assistance:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 .................................................................... 60

1997 or 1998 ...................................................... 75

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

18 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—
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1 ‘‘(1) FOR ALL FAMILIES.—

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

4 for all families of a State for a fiscal year is the

5 average of the participation rates for all families

6 of the State for each month in the fiscal year.

7 ‘‘(B) MONTHLY PARTICIPATION RATES.—

8 The participation rate of a State for all families

9 of the State for a month, expressed as a percent10 age, is—

11 ‘‘(i) the sum of—

12 ‘‘(I) the number of all families re13 ceiving assistance under the State pro14 gram funded under this part that in15 clude an adult who is engaged in work

16 for the month;

17 ‘‘(II) the number of all families

18 receiving assistance under the State

19 program funded under this part that

20 are subject in such month to a penalty

21 described in paragraph (1)(A) or

22 (2)(A) of subsection (d) but have not

23 been subject to such penalty for more

24 than 3 months within the preceding
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1 12-month period (whether or not con2 secutive); and

3 ‘‘(III) the number of all families

4 that received assistance under the State

5 program under this part during the

6 previous 6-month period that have be7 come ineligible to receive assistance

8 during such period because of employ9 ment and which include an adult who

10 is employed for the month; divided by

11 ‘‘(ii) the total number of all families

12 receiving assistance under the State pro13 gram funded under this part during the

14 month that include an adult receiving as15 sistance.

16 ‘‘(2) 2-PARENT FAMILIES.—

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

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

20 is the average of the participation rates for 2-

21 parent families of the State for each month in

22 the fiscal year.

23 ‘‘(B) MONTHLY PARTICIPATION RATES.—

24 The participation rate of a State for 2-parent
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1 families of the State for a month, expressed as a

2 percentage, is—

3 ‘‘(i) the total number of 2-parent fami4 lies described in paragraph (1)(B)(i); di5 vided by

6 ‘‘(ii) the total number of 2-parent fam7 ilies receiving assistance under the State

8 program funded under this part during the

9 month that include an adult.

10 ‘‘(3) PRO RATA REDUCTION OF PARTICIPATION

11 RATE DUE TO CASELOAD REDUCTIONS NOT RE12 QUIRED BY FEDERAL LAW.—

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

14 prescribe regulations for reducing the minimum

15 participation rate otherwise required by this sec16 tion for a fiscal year by the number of percent17 age points equal to the number of percentage

18 points (if any) by which—

19 ‘‘(i) the number of families receiving

20 assistance during the fiscal year under the

21 State program funded under this part is

22 less than

23 ‘‘(ii) the number of families that re24 ceived aid under the State plan approved

25 under part A of this title (as in effect before
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1 October 1, 1995) during the fiscal year im2 mediately preceding such effective date.

3 The minimum participation rate shall not be re4 duced to the extent that the Secretary determines

5 that the reduction in the number of families re6 ceiving such assistance is required by Federal

7 law.

8 ‘‘(B) ELIGIBILITY CHANGES NOT COUNT9 ED.—The regulations described in subparagraph

10 (A) shall not take into account families that are

11 diverted from a State program funded under this

12 part as a result of differences in eligibility cri13 teria under a State program funded under this

14 part and eligibility criteria under such State’s

15 plan under the aid to families with dependent

16 children program, as such plan was in effect on

17 the day before the date of the enactment of the

18 Work Opportunity Act of 1995.

19 ‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS

20 RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY AS21 SISTANCE PLAN.—For purposes of paragraphs (1)(B)

22 and (2)(B), a State may, at its option, include fami23 lies receiving assistance under a tribal family assist24 ance plan approved under section 414. For purposes

25 of the previous sentence, an individual who receives
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1 assistance under a tribal family assistance plan ap2 proved under section 414 shall be treated as being en3 gaged in work if the individual is participating in

4 work under standards that are comparable to State

5 standards for being engaged in work.

6 ‘‘(5) STATE OPTION FOR PARTICIPATION RE7 QUIREMENT EXEMPTIONS.—For any fiscal year, a

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

9 who is the parent or caretaker relative of a minor

10 child who is less than 12 months of age to engage in

11 work and may exclude such an individual from the

12 determination of the minimum participation rate

13 specified for such fiscal year in subsection (a).

14 ‘‘(c) ENGAGED IN WORK.—

15 ‘‘(1) ALL FAMILIES.—For purposes of subsection

16 (b)(1)(B)(i)(I), an adult is engaged in work for a

17 month in a fiscal year if the adult is participating

18 in work for at least the minimum average number of

19 hours per week specified in the following table during

20 the month, not fewer than 20 hours per week of which

21 are attributable to a work activity:

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

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

1 ‘‘(2) 2-PARENT FAMILIES.—For purposes of sub2 section (b)(2)(A), an adult is engaged in work for a

3 month in a fiscal year if the adult is participating

4 in work for at least 35 hours per week during the

5 month, not fewer than 30 hours per week of which are

6 attributable to work activities described in paragraph

7 (3).

8 ‘‘(3) DEFINITION OF WORK ACTIVITIES.—For

9 purposes of this subsection, the term ‘work activities’

10 means—

11 ‘‘(A) unsubsidized employment;

12 ‘‘(B) subsidized employment;

13 ‘‘(C) on-the-job training;

14 ‘‘(D) community service programs;

15 ‘‘(E) job search (only for the first 4 weeks

16 in which an individual is required to participate

17 in work activities under this section); and

18 ‘‘(F) vocational educational training (not to

19 exceed 12 months with respect to any individ20 ual).

21 ‘‘(4) LIMITATION ON VOCATIONAL EDUCATION AC22 TIVITIES COUNTED AS WORK.—For purposes of deter23 mining monthly participation rates under para24 graphs (1)(B)(i)(I) and (2)(B)(i) of subsection (b),
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1 not more than 25 percent of adults in all families and

2 in 2-parent families determined to be engaged in

3 work in the State for a month may meet the work ac4 tivity requirement through participation in voca5 tional educational training.

6 ‘‘(d) PENALTIES AGAINST INDIVIDUALS.—

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (2), if an adult in a family receiving assistance

9 under the State program funded under this part re10 fuses to engage in work required under subsection

11 (c)(1) or (c)(2), a State to which a grant is made

12 under section 403 shall—

13 ‘‘(A) reduce the amount of assistance other14 wise payable to the family pro rata (or more, at

15 the option of the State) with respect to any pe16 riod during a month in which the adult so re17 fuses; or

18 ‘‘(B) terminate such assistance,

19 subject to such good cause and other exceptions as the

20 State may establish.

21 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

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

23 under the State program based on a refusal of an

24 adult to work if such adult is a single custodial par25 ent caring for a child age 5 or under and has a dem-
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1 onstrated inability (as determined by the State) to ob2 tain needed child care, for one or more of the follow3 ing reasons:

4 ‘‘(A) Unavailability of appropriate child

5 care within a reasonable distance of the individ6 ual’s home or work site.

7 ‘‘(B) Unavailability or unsuitability of in8 formal child care by a relative or under other ar9 rangements.

10 ‘‘(C) Unavailability of appropriate and af11 fordable formal child care arrangements.

12 ‘‘(e) NONDISPLACEMENT IN WORK ACTIVITIES.—

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

14 adult in a family receiving assistance under this part

15 may fill a vacant employment position in order to

16 engage in a work activity described in subsection

17 (c)(3).

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

19 adult in a work activity described in subsection (c)(3)

20 shall be employed or assigned—

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

22 from the same or any substantially equivalent

23 job; or

24 ‘‘(B) when the employer has terminated the

25 employment of any regular employee or other-
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1 wise caused an involuntary reduction of its

2 workforce in order to fill the vacancy so created

3 with an adult described in paragraph (1).

4 ‘‘(3) NO PREEMPTION.—Nothing in this sub5 section shall preempt or supersede any provision of

6 State or local law that provides greater protection for

7 employees from displacement.

8 ‘‘(f) SENSE OF THE CONGRESS.—It is the sense of the

9 Congress that in complying with this section, each State

10 that operates a program funded under this part is encour11 aged to assign the highest priority to requiring adults in

12 2-parent families and adults in single-parent families that

13 include older preschool or school-age children to be engaged

14 in work activities.

15 ‘‘(g) DELIVERY THROUGH STATEWIDE SYSTEM.—

16 ‘‘(1) IN GENERAL.—Each work program carried

17 out by the State to provide work activities in order

18 to comply with this section shall be delivered through

19 the statewide workforce development system estab20 lished in section 711 of the Work Opportunity Act of

21 1995 unless a required work activity is not available

22 locally through the statewide workforce development

23 system.

24 ‘‘(2) EFFECTIVE DATE.—The provisions of para25 graph (1) shall take effect—
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1 ‘‘(A) in a State described in section

2 815(b)(1) of the Work Opportunity Act of 1995;

3 and

4 ‘‘(B) in any other State, on July 1, 1998.

5 ‘‘(h) ENCOURAGEMENT TO PROVIDE CHILD CARE

6 SERVICES.—An individual participating in a State com7 munity service program may be treated as being engaged

8 in work under subsection (c) if such individual provides

9 child care services to other individuals participating in the

10 community service program in the manner, and for the pe11 riod of time each week, determined appropriate by the

12 State.

13 ‘‘SEC. 405. REQUIREMENTS AND LIMITATIONS.

14 ‘‘(a) STATE REQUIRED TO ENTER INTO A PERSONAL

15 RESPONSIBILITY CONTRACT WITH EACH FAMILY RECEIV16 ING ASSISTANCE.—

17 ‘‘(1) IN GENERAL.—Each State to which a grant

18 is made under section 403 shall require each family

19 receiving assistance under the State program funded

20 under this part to enter into—

21 ‘‘(A) a personal responsibility contract (as

22 developed by the State) with the State; or

23 ‘‘(B) a limited benefit plan.

24 ‘‘(2) PERSONAL RESPONSIBILITY CONTRACT.—

25 For purposes of this subsection, the term ‘personal re-
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1 sponsibility contract’ means a binding contract be2 tween the State and each family receiving assistance

3 under the State program funded under this part

4 that—

5 ‘‘(A) outlines the steps each family and the

6 State will take to get the family off of welfare

7 and to become self-sufficient;

8 ‘‘(B) specifies a negotiated time-limited pe9 riod of eligibility for receipt of assistance that is

10 consistent with unique family circumstances and

11 is based on a reasonable plan to facilitate the

12 transition of the family to self-sufficiency;

13 ‘‘(C) provides that the family will auto14 matically enter into a limited benefit plan if the

15 family is out of compliance with the personal re16 sponsibility contract; and

17 ‘‘(D) provides that the contract shall be in18 valid if the State agency fails to comply with the

19 contract.

20 ‘‘(3) LIMITED BENEFIT PLAN.—For purposes of

21 this subsection, the term ‘limited benefit plan’ means

22 a plan which provides for a reduced level of assistance

23 and later termination of assistance to a family that

24 has entered into the plan in accordance with a sched25 ule to be determined by the State.
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1 ‘‘(4) ASSESSMENT.—The State agency shall pro2 vide, through a case manager, an initial and thor3 ough assessment of the skills, prior work experience,

4 and employability of each parent for use in develop5 ing and negotiating a personal responsibility con6 tract.

7 ‘‘(5) DISPUTE RESOLUTION.—The State agency

8 described in section 402(a)(6) shall establish a dispute

9 resolution procedure for disputes related to participa10 tion in the personal responsibility contract that pro11 vides the opportunity for a hearing.

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

13 ‘‘(1) IN GENERAL.—Except as provided under

14 paragraphs (2) and (3), a State to which a grant is

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

16 grant to provide assistance to a family that includes

17 an adult who has received assistance under the pro18 gram operated under this part for the lesser of—

19 ‘‘(A) the period of time established at the

20 option of the State; or

21 ‘‘(B) 60 months (whether or not consecutive)

22 after September 30, 1995.

23 ‘‘(2) MINOR CHILD EXCEPTION.—If an individ24 ual received assistance under the State program oper25 ated under this part as a minor child in a needy
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1 family, any period during which such individual’s

2 family received assistance shall not be counted for

3 purposes of applying the limitation described in

4 paragraph (1) to an application for assistance under

5 such program by such individual as the head of a

6 household of a needy family with minor children.

7 ‘‘(3) HARDSHIP EXCEPTION.—

8 ‘‘(A) IN GENERAL.—The State may exempt

9 a family from the application of paragraph (1)

10 by reason of hardship.

11 ‘‘(B) LIMITATION.—The number of families

12 with respect to which an exemption made by a

13 State under subparagraph (A) is in effect for a

14 fiscal year shall not exceed 20 percent of the av15 erage monthly number of families to which the

16 State is providing assistance under the program

17 operated under this part.

18 ‘‘(c) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PER19 SON FOUND TO HAVE FRAUDULENTLY MISREPRESENTED

20 RESIDENCE IN ORDER TO OBTAIN ASSISTANCE IN 2 OR

21 MORE STATES.—An individual shall not be considered an

22 eligible individual for the purposes of this part during the

23 10-year period that begins on the date the individual is con24 victed in Federal or State court of having made a fraudu25 lent statement or representation with respect to the place
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1 of residence of the individual in order to receive assistance

2 simultaneously from 2 or more States under programs that

3 are funded under this title, title XIX, or the Food Stamp

4 Act of 1977, or benefits in 2 or more States under the sup5 plemental security income program under title XVI.

6 ‘‘(d) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS

7 AND PROBATION AND PAROLE VIOLATORS.—

8 ‘‘(1) IN GENERAL.—An individual shall not be

9 considered an eligible individual for the purposes of

10 this part if such individual is—

11 ‘‘(A) fleeing to avoid prosecution, or custody

12 or confinement after conviction, under the laws

13 of the place from which the individual flees, for

14 a crime, or an attempt to commit a crime, which

15 is a felony under the laws of the place from

16 which the individual flees, or which, in the case

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

19 ‘‘(B) violating a condition of probation or

20 parole imposed under Federal or State law.

21 ‘‘(2) EXCHANGE OF INFORMATION WITH LAW EN22 FORCEMENT AGENCIES.—Notwithstanding any other

23 provision of law, a State shall furnish any Federal,

24 State, or local law enforcement officer, upon the re25 quest of the officer, with the current address, Social
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1 Security number, and photograph (if applicable) of

2 any recipient of assistance under this part, if the offi3 cer furnishes the agency with the name of the recipi4 ent and notifies the agency that—

5 ‘‘(A) such recipient—

6 ‘‘(i) is described in subparagraph (A)

7 or (B) of paragraph (1); or

8 ‘‘(ii) has information that is necessary

9 for the officer to conduct the officer’s official

10 duties; and

11 ‘‘(B) the location or apprehension of the re12 cipient is within such officer’s official duties.

13 ‘‘(e) STATE OPTION TO REQUIRE ASSIGNMENT OF

14 SUPPORT.—At the option of the State, a State to which a

15 grant is made under section 403 may provide that an indi16 vidual applying for or receiving assistance under the State

17 program funded under this part shall be required to assign

18 to the State any rights to support from any other person

19 the individual may have in such individual’s own behalf

20 or in behalf of any other family member for whom the indi21 vidual is applying for or receiving assistance.

22 ‘‘(f) DENIAL OF ASSISTANCE FOR ABSENT CHILD.—

23 Each State to which a grant is made under section 403—

24 ‘‘(1) may not use any part of the grant to pro25 vide assistance to a family with respect to any minor
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1 child who has been, or is expected by the caretaker rel2 ative in the family to be, absent from the home for

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

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

5 more than 90 consecutive days as the State may pro6 vide for in the State plan;

7 ‘‘(2) at the option of the State, may establish

8 such good cause exceptions to paragraph (1) as the

9 State considers appropriate if such exceptions are

10 provided for in the State plan; and

11 ‘‘(3) shall provide that a caretaker relative shall

12 not be considered an eligible individual for purposes

13 of this part if the caretaker relative fails to notify the

14 State agency of an absence of a minor child from the

15 home for the period specified in or provided for under

16 paragraph (1), by the end of the 5-day period that be17 gins on the date that it becomes clear to the caretaker

18 relative that the minor child will be absent for the pe19 riod so specified or provided for in paragraph (1).

20 ‘‘SEC. 406. PROMOTING RESPONSIBLE PARENTING.

21 ‘‘(a) FINDINGS.—The Congress makes the following

22 findings:

23 ‘‘(1) Marriage is the foundation of a successful

24 society.
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1 ‘‘(2) Marriage is an essential institution of a

2 successful society which promotes the interests of chil3 dren.

4 ‘‘(3) Promotion of responsible fatherhood and

5 motherhood is integral to successful child rearing and

6 the wellbeing of children.

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

8 families with children had a child support order es9 tablished and, of that 54 percent, only about one half

10 received the full amount due. Of the cases enforced

11 through the public child support enforcement system,

12 only 18 percent of the caseload has a collection.

13 ‘‘(5) The number of individuals receiving aid to

14 families with dependent children (hereafter in this

15 subsection referred to as ‘AFDC’) has more than tri16 pled since 1965. More than two-thirds of these recipi17 ents are children. Eighty-nine percent of children re18 ceiving AFDC benefits now live in homes in which no

19 father is present.

20 ‘‘(A)(i) The average monthly number of

21 children receiving AFDC benefits—

22 ‘‘(I) was 3,300,000 in 1965;

23 ‘‘(II) was 6,200,000 in 1970;

24 ‘‘(III) was 7,400,000 in 1980; and

25 ‘‘(IV) was 9,300,000 in 1992.
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1 ‘‘(ii) While the number of children receiving

2 AFDC benefits increased nearly threefold between

3 1965 and 1992, the total number of children in

4 the United States aged 0 to 18 has declined by

5 5.5 percent.

6 ‘‘(B) The Department of Health and

7 Human Services has estimated that 12,000,000

8 children will receive AFDC benefits within 10

9 years.

10 ‘‘(C) The increase in the number of children

11 receiving public assistance is closely related to

12 the increase in births to unmarried women. Be13 tween 1970 and 1991, the percentage of live

14 births to unmarried women increased nearly

15 threefold, from 10.7 percent to 29.5 percent.

16 ‘‘(6) The increase of out-of-wedlock pregnancies

17 and births is well documented as follows:

18 ‘‘(A) It is estimated that the rate of

19 nonmarital teen pregnancy rose 23 percent from

20 54 pregnancies per 1,000 unmarried teenagers in

21 1976 to 66.7 pregnancies in 1991. The overall

22 rate of nonmarital pregnancy rose 14 percent

23 from 90.8 pregnancies per 1,000 unmarried

24 women in 1980 to 103 in both 1991 and 1992.

25 In contrast, the overall pregnancy rate for mar-
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1 ried couples decreased 7.3 percent between 1980

2 and 1991, from 126.9 pregnancies per 1,000

3 married women in 1980 to 117.6 pregnancies in

4 1991.

5 ‘‘(B) The total of all out-of-wedlock births

6 between 1970 and 1991 has risen from 10.7 per7 cent to 29.5 percent and if the current trend con8 tinues, 50 percent of all births by the year 2015

9 will be out-of-wedlock.

10 ‘‘(7) The negative consequences of an out-of-wed11 lock birth on the mother, the child, the family, and so12 ciety are well documented as follows:

13 ‘‘(A) Young women 17 and under who give

14 birth outside of marriage are more likely to go

15 on public assistance and to spend more years on

16 welfare once enrolled. These combined effects of

17 ‘younger and longer’ increase total AFDC costs

18 per household by 25 percent to 30 percent for 17-

19 year olds.

20 ‘‘(B) Children born out-of-wedlock have a

21 substantially higher risk of being born at a very

22 low or moderately low birth weight.

23 ‘‘(C) Children born out-of-wedlock are more

24 likely to experience low verbal cognitive attain25 ment, as well as more child abuse, and neglect.
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1 ‘‘(D) Children born out-of-wedlock were

2 more likely to have lower cognitive scores, lower

3 educational aspirations, and a greater likelihood

4 of becoming teenage parents themselves.

5 ‘‘(E) Being born out-of-wedlock signifi6 cantly reduces the chances of the child growing

7 up to have an intact marriage.

8 ‘‘(F) Children born out-of-wedlock are 3

9 more times likely to be on welfare when they

10 grow up.

11 ‘‘(8) Currently 35 percent of children in single12 parent homes were born out-of-wedlock, nearly the

13 same percentage as that of children in single-parent

14 homes whose parents are divorced (37 percent). While

15 many parents find themselves, through divorce or

16 tragic circumstances beyond their control, facing the

17 difficult task of raising children alone, nevertheless,

18 the negative consequences of raising children in sin19 gle-parent homes are well documented as follows:

20 ‘‘(A) Only 9 percent of married-couple fam21 ilies with children under 18 years of age have

22 income below the national poverty level. In con23 trast, 46 percent of female-headed households

24 with children under 18 years of age are below

25 the national poverty level.
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1 ‘‘(B) Among single-parent families, nearly

1 2 ⁄2 of the mothers who never married received

AFDC while only 1 3 ⁄5 of divorced mothers received

4 AFDC.

5 ‘‘(C) Children born into families receiving

6 welfare assistance are 3 times more likely to be

7 on welfare when they reach adulthood than chil8 dren not born into families receiving welfare.

9 ‘‘(D) Mothers under 20 years of age are at

10 the greatest risk of bearing low birth-weight ba11 bies.

12 ‘‘(E) The younger the single parent mother,

13 the less likely she is to finish high school.

14 ‘‘(F) Young women who have children before

15 finishing high school are more likely to receive

16 welfare assistance for a longer period of time.

17 ‘‘(G) Between 1985 and 1990, the public

18 cost of births to teenage mothers under the aid to

19 families with dependent children program, the

20 food stamp program, and the medicaid program

21 has been estimated at $120,000,000,000.

22 ‘‘(H) The absence of a father in the life of

23 a child has a negative effect on school perform24 ance and peer adjustment.
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1 ‘‘(I) Children of teenage single parents have

2 lower cognitive scores, lower educational aspira3 tions, and a greater likelihood of becoming teen4 age parents themselves.

5 ‘‘(J) Children of single-parent homes are 3

6 times more likely to fail and repeat a year in

7 grade school than are children from intact two8 parent families.

9 ‘‘(K) Children from single-parent homes are

10 almost 4 times more likely to be expelled or sus11 pended from school.

12 ‘‘(L) Neighborhoods with larger percentages

13 of youth aged 12 through 20 and areas with

14 higher percentages of single-parent households

15 have higher rates of violent crime.

16 ‘‘(M) Of those youth held for criminal of17 fenses within the State juvenile justice system,

18 only 29.8 percent lived primarily in a home

19 with both parents. In contrast to these incarcer20 ated youth, 73.9 percent of the 62,800,000 chil21 dren in the Nation’s resident population were

22 living with both parents.

23 ‘‘(9) Therefore, in light of this demonstration of

24 the crisis in our Nation, it is the sense of the Congress

25 that prevention of out-of-wedlock pregnancy and re-
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1 duction in out-of-wedlock birth are very important

2 Government interests and the policy contained in pro3 visions of this title is intended to address the crisis.

4 ‘‘(b) STATE OPTION TO DENY ASSISTANCE FOR OUT5 OF-WEDLOCK BIRTHS TO MINORS.—At the option of the

6 State, a State to which a grant is made under section 403

7 may provide that the grant shall not be used to provide

8 assistance for a child born out-of-wedlock to an individual

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

10 until the individual attains such age.

11 ‘‘(c) STATE OPTION TO DENY ASSISTANCE FOR CHIL12 DREN BORN TO FAMILIES RECEIVING ASSISTANCE.—At the

13 option of the State, a State to which a grant is made under

14 section 403 may provide that the grant shall not be used

15 to provide assistance for a minor child who is born to—

16 ‘‘(1) a recipient of assistance under the program

17 funded under this part; or

18 ‘‘(2) an individual who received such benefits at

19 any time during the 10-month period ending with the

20 birth of the child.

21 ‘‘(d) REQUIREMENT THAT TEENAGE PARENTS LIVE IN

22 ADULT-SUPERVISED SETTINGS.—

23 ‘‘(1) IN GENERAL.—

24 ‘‘(A) REQUIREMENT.—Except as provided

25 in paragraph (2), if a State provides assistance
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1 under the State program funded under this part

2 to an individual described in subparagraph (B),

3 such individual may only receive assistance

4 under the program if such individual and the

5 child of the individual reside in a place of resi6 dence maintained by a parent, legal guardian,

7 or other adult relative of such individual as such

8 parent’s, guardian’s, or adult relative’s own

9 home.

10 ‘‘(B) INDIVIDUAL DESCRIBED.— For pur11 poses of subparagraph (A), an individual de12 scribed in this subparagraph is an individual

13 who is—

14 ‘‘(i) under the age of 18; and

15 ‘‘(ii) not married and has a minor

16 child in his or her care.

17 ‘‘(2) EXCEPTION.—

18 ‘‘(A) PROVISION OF, OR ASSISTANCE IN LO19 CATING, ADULT-SUPERVISED LIVING ARRANGE20 MENT.—In the case of an individual who is de21 scribed in subparagraph (B), the State agency

22 shall provide, or assist such individual in locat23 ing, a second chance home, maternity home, or

24 other appropriate adult-supervised supportive

25 living arrangement, taking into consideration
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1 the needs and concerns of the such individual,

2 unless the State agency determines that the indi3 vidual’s current living arrangement is appro4 priate, and thereafter shall require that such

5 parent and the child of such parent reside in

6 such living arrangement as a condition of the

7 continued receipt of assistance under the plan

8 (or in an alternative appropriate arrangement,

9 should circumstances change and the current ar10 rangement cease to be appropriate).

11 ‘‘(B) INDIVIDUAL DESCRIBED.—For pur12 poses of subparagraph (A), an individual is de13 scribed in this subparagraph if the individual is

14 described in paragraph (1)(B) and—

15 ‘‘(ii) such individual has no parent,

16 legal guardian or other appropriate adult

17 relative as described in (iii) of his or her

18 own who is living or whose whereabouts are

19 known;

20 ‘‘(iii) no living parent, legal guardian,

21 or other appropriate adult relative who

22 would otherwise meet applicable State cri23 teria to act as such individual’s legal

24 guardian, of such individual allows the in-
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1 dividual to live in the home of such parent,

2 guardian, or relative;

3 ‘‘(iv) the State agency determines

4 that—

5 ‘‘(I) the individual or the individ6 ual’s custodial minor child is being or

7 has been subjected to serious physical

8 or emotional harm, sexual abuse, or ex9 ploitation in the residence of such indi10 vidual’s own parent or legal guardian;

11 or

12 ‘‘(II) substantial evidence exists of

13 an act or failure to act that presents

14 an imminent or serious harm if such

15 individual and such individual’s

16 minor child lived in the same residence

17 with such individual’s own parent or

18 legal guardian; or

19 ‘‘(v) the State agency otherwise deter20 mines that it is in the best interest of the

21 minor child to waive the requirement of

22 paragraph (1) with respect to such individ23 ual or minor child.

24 ‘‘(C) SECOND-CHANCE HOME.—For pur25 poses of this paragraph, the term ‘second-chance
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1 home’ means an entity that provides individuals

2 described in subparagraph (B) with a supportive

3 and supervised living arrangement in which

4 such individuals are required to learn parenting

5 skills, including child development, family budg6 eting, health and nutrition, and other skills to

7 promote their long-term economic independence

8 and the well-being of their children.

9 ‘‘(3) ASSISTANCE TO STATES IN PROVIDING OR

10 LOCATING ADULT-SUPERVISED SUPPORTIVE LIVING

11 ARRANGEMENTS FOR UNMARRIED TEENAGE PAR12 ENTS.—

13 ‘‘(A) IN GENERAL.—For each of fiscal years

14 1996 through 2002, each State that provides as15 sistance under the State program to individuals

16 described in paragraph (1)(B) shall be entitled to

17 receive a grant in an amount determined under

18 subparagraph (B) for the purpose of providing

19 or locating adult-supervised supportive living ar20 rangements for individuals described in para21 graph (1)(B) in accordance with this subsection.

22 ‘‘(B) AMOUNT DETERMINED.—

23 ‘‘(i) IN GENERAL.—The amount deter24 mined under this subparagraph is an

25 amount that bears the same ratio to the
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1 amount specified under clause (ii) as the

2 amount of the State family assistance grant

3 for the State for such fiscal year (described

4 in section 403(a)(2)) bears to the amount

5 appropriated for such fiscal year in accord6 ance with section 403(a)(4)(A).

7 ‘‘(ii) AMOUNT SPECIFIED.—The

8 amount specified in this subparagraph is—

9 ‘‘(I) for fiscal year 1996,

10 $25,000,000;

11 ‘‘(II) for fiscal year 1997,

12 $25,000,000; and

13 ‘‘(III) for each of fiscal years

14 1998, 1999, 2000, 2001, and 2002,

15 $20,000,000.

16 ‘‘(C) ASSISTANCE TO STATES IN PROVIDING

17 OR LOCATING ADULT-SUPERVISED SUPPORTIVE

18 LIVING ARRANGEMENTS FOR UNMARRIED TEEN19 AGE PARENTS.—There are authorized to be ap20 propriated and there are appropriated for fiscal

21 years 1996, 1997, 1998, 1999, 2000, 2001, and

22 2002 such sums specified in subparagraph

23 (B)(ii) for the purpose of paying grants to States

24 in accordance with the provisions of this para25 graph.
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1 ‘‘(e) REQUIREMENT THAT TEENAGE PARENTS ATTEND

2 HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PRO3 GRAM.—If a State provides assistance under the State pro4 gram funded under this part to an individual described in

5 subsection (d)(1)(B) who has not successfully completed a

6 high-school education (or its equivalent) and whose minor

7 child is at least 12 weeks of age, the State shall not provide

8 such individual with assistance under the program (or, at

9 the option of the State, shall provide a reduced level of such

10 assistance) if the individual does not participate in—

11 ‘‘(1) educational activities directed toward the

12 attainment of a high school diploma or its equivalent;

13 or

14 ‘‘(2) an alternative educational or training pro15 gram that has been approved by the State.

16 ‘‘(f) GRANT INCREASED TO REWARD STATES THAT

17 REDUCE OUT-OF-WEDLOCK BIRTHS.—

18 ‘‘(1) IN GENERAL.—The amount of the grant

19 payable to a State under section 403(a)(1)(A) for fis20 cal years 1998, 1999, and 2000 shall be increased

21 by—

22 ‘‘(A) an amount equal the product of $25

23 multiplied by the number of children in the

24 State in families with incomes below the poverty
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1 line, according to the most recently available

2 census data, if—

3 ‘‘(i) the illegitimacy ratio of the State

4 for the most recent fiscal year for which

5 such information is available is at least 1

6 percentage point lower than the illegitimacy

7 ratio of the State for fiscal year 1995 (or,

8 if such information is not available, the

9 first available year after 1995 for which

10 such data is available); and

11 ‘‘(ii) the rate of induced pregnancy ter12 minations for the same most recent fiscal

13 year in the State is not higher than the rate

14 of induced pregnancy terminations in the

15 State for fiscal year 1995 (or, the same first

16 available year); or

17 ‘‘(B) an amount equal the product of $50

18 multiplied by the number of children in the

19 State in families with incomes below the poverty

20 line, according to the most recently available

21 census data, if—

22 ‘‘(i) the illegitimacy ratio of the State

23 for the most recent fiscal year for which in24 formation is available is at least 2 percent25 age points lower than the illegitimacy ratio
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1 of the State for fiscal year 1995 (or, if such

2 information is not available, the first avail3 able year after 1995 for which such data is

4 available); and

5 ‘‘(ii) the rate of induced pregnancy ter6 minations in the State for the same most

7 recent fiscal year is not higher than the rate

8 of induced pregnancy terminations in the

9 State for fiscal year 1995 (or, the same first

10 available fiscal year).

11 ‘‘(2) DETERMINATION OF THE SECRETARY.—The

12 Secretary shall not increase the grant amount under

13 paragraph (1) if the Secretary determines that the

14 relevant difference between the illegitimacy ratio of a

15 State for an applicable fiscal year and the illegit16 imacy ratio of such State for fiscal year 1995 or,

17 where appropriate, the first available year after 1995

18 for which such data is available, is the result of a

19 change in State methods of reporting data used to cal20 culate the illegitimacy ratio or if the Secretary deter21 mines that the relevant non-increase in the rate of in22 duced pregnancy terminations for an applicable fiscal

23 year as compared to fiscal year 1995 or, the appro24 priate fiscal year, is the result of a change in State
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1 methods of reporting data used to calculate the rate

2 of induced pregnancy terminations.

3 ‘‘(3) ILLEGITIMACY RATIO.—For purposes of this

4 subsection, the term ‘illegitimacy ratio’ means, with

5 respect to a State and a fiscal year—

6 ‘‘(A) the number of out-of-wedlock births

7 that occurred in the State during the most recent

8 fiscal year for which such information is avail9 able; divided by

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

11 the State during the most recent fiscal year for

12 which such information is available.

13 ‘‘(4) POVERTY LINE.—For purposes of this sub14 section, the term ‘poverty line’ has the meaning given

15 such term in section 403(a)(3)(D)(iii).

16 ‘‘(5) AVAILABILITY OF AMOUNTS.—There are au17 thorized to be appropriated and there are appro18 priated such sums as may be necessary for fiscal

19 years 1998, 1999, and 2000 for the purpose of in20 creasing the amount of the grant payable to a State

21 under section 403(a)(1) in accordance with this sub22 section.

23 ‘‘(g) STATE OPTION TO DENY ASSISTANCE IN CERTAIN

24 SITUATIONS.—Nothing in this subsection shall be construed

25 to restrict the authority of a State to exercise its option
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1 to limit assistance under this part to individuals if such

2 limitation is not inconsistent with the provisions of this

3 part.

4 ‘‘SEC. 407. STATE PENALTIES.

5 ‘‘(a) IN GENERAL.—Subject to the provisions of sub6 section (b), the Secretary shall deduct from the grant other7 wise payable under section 403 the following penalties:

8 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS

9 PART.—If an audit conducted under section 408 finds

10 that an amount paid to a State under section 403 for

11 a fiscal year has been used in violation of this part,

12 then the Secretary shall reduce the amount of the

13 grant otherwise payable to the State under such sec14 tion for the immediately succeeding fiscal year quar15 ter by the amount so used. If the State does not prove

16 to the satisfaction of the Secretary that such unlawful

17 expenditure was not made by the State in intentional

18 violation of the requirements of this part, then the

19 Secretary shall impose an additional penalty of 5

20 percent of such grant (determined without regard to

21 this section).

22 ‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE23 PORT.—

24 ‘‘(A) IN GENERAL.—If the Secretary deter25 mines that a State has not, within 6 months
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1 after the end of a fiscal year, submitted the re2 port required by section 409 for the fiscal year,

3 the Secretary shall reduce by 5 percent the

4 amount of the grant that would (in the absence

5 of this section) be payable to the State under sec6 tion 403 for the immediately succeeding fiscal

7 year.

8 ‘‘(B) RESCISSION OF PENALTY.—The Sec9 retary shall rescind a penalty imposed on a

10 State under subparagraph (A) with respect to a

11 report for a fiscal year if the State submits the

12 report before the end of the immediately succeed13 ing fiscal year.

14 ‘‘(3) FOR FAILURE TO SATISFY MINIMUM PAR15 TICIPATION RATES.—

16 ‘‘(A) IN GENERAL.—If the Secretary deter17 mines that a State has failed to satisfy the mini18 mum participation rates specified in section

19 404(a) for a fiscal year, the Secretary shall re20 duce the amount of the grant that would (in the

21 absence of this section) be payable to the State

22 under section 403 for the immediately succeeding

23 fiscal year by—
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1 ‘‘(i) in the first year in which the

2 State fails to satisfy such rates, 5 percent;

3 and

4 ‘‘(ii) in subsequent years in which the

5 State fails to satisfy such rates, the percent

6 reduction determined under this subpara7 graph (if any) in the preceding year, in8 creased by 5 percent.

9 ‘‘(B) PENALTY BASED ON SEVERITY OF

10 FAILURE.—The Secretary shall impose reduc11 tions under subparagraph (A) on the basis of the

12 degree of noncompliance.

13 ‘‘(4) FOR FAILURE TO PARTICIPATE IN THE IN14 COME AND ELIGIBILITY VERIFICATION SYSTEM.—If

15 the Secretary determines that a State program funded

16 under this part is not participating during a fiscal

17 year in the income and eligibility verification system

18 required by section 1137, the Secretary shall reduce

19 by not more than 5 percent the amount of the grant

20 that would (in the absence of this section) be payable

21 to the State under section 403 for the immediately

22 succeeding fiscal year.

23 ‘‘(5) FOR FAILURE TO COMPLY WITH PATERNITY

24 ESTABLISHMENT AND CHILD SUPPORT ENFORCEMENT

25 REQUIREMENTS UNDER PART D.—Notwithstanding
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1 any other provision of this Act, if the Secretary deter2 mines that the State agency that administers a pro3 gram funded under this part does not enforce the pen4 alties requested by the agency administering part D

5 against recipients of assistance under the State pro6 gram who fail to cooperate in establishing paternity

7 in accordance with such part, the Secretary shall re8 duce by not more than 5 percent the amount of the

9 grant that would (in the absence of this section) be

10 payable to the State under section 403 for the imme11 diately succeeding fiscal year.

12 ‘‘(6) FOR FAILURE TO TIMELY REPAY A FEDERAL

13 LOAN FUND FOR STATE WELFARE PROGRAMS.—If the

14 Secretary determines that a State has failed to repay

15 any amount borrowed from the Federal Loan Fund

16 for State Welfare Programs established under section

17 403(d) within the period of maturity applicable to

18 such loan, plus any interest owed on such loan, then

19 the Secretary shall reduce the amount of the grant

20 otherwise payable to the State under section 403 for

21 the immediately succeeding fiscal year quarter by the

22 outstanding loan amount, plus the interest owed on

23 such outstanding amount. The Secretary may not for24 give any outstanding loan amount nor interest owed

25 thereon.
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1 ‘‘(b) REQUIREMENTS.—

2 ‘‘(1) LIMITATION ON AMOUNT OF PENALTY.—

3 ‘‘(A) IN GENERAL.—In imposing the pen4 alties described in subsection (a), the Secretary

5 shall not reduce any quarterly payment to a

6 State by more than 25 percent.

7 ‘‘(B) CARRYFORWARD OF UNRECOVERED

8 PENALTIES.—To the extent that subparagraph

9 (A) prevents the Secretary from recovering dur10 ing a fiscal year the full amount of all penalties

11 imposed on a State under subsection (a) for a

12 prior fiscal year, the Secretary shall apply any

13 remaining amount of such penalties to the grant

14 otherwise payable to the State under section 403

15 for the immediately succeeding fiscal year.

16 ‘‘(2) STATE FUNDS TO REPLACE REDUCTIONS IN

17 GRANT.—A State which has a penalty imposed

18 against it under subsection (a) shall expend addi19 tional State funds in an amount equal to the amount

20 of the penalty for the purpose of providing assistance

21 under the State program under this part.

22 ‘‘(3) REASONABLE CAUSE FOR NONCOMPLI23 ANCE.—The Secretary may not impose a penalty on

24 a State under subsection (a) if the Secretary deter25 mines that the State has reasonable cause for failing
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1 to comply with a requirement for which a penalty is

2 imposed under such subsection.

3 ‘‘(c) CERTIFICATION OF AMOUNT OF PENALTIES.—If

4 the Secretary is required to reduce the amount of any grant

5 under this section, the Secretary shall certify the amount

6 of such reduction to the Secretary of the Treasury and the

7 Secretary of the Treasury shall reduce the amount paid to

8 the State under section 403 by such amount.

9 ‘‘(d) EFFECTIVE DATES.—

10 ‘‘(1) IN GENERAL.—The penalties described in

11 paragraphs (2) through (6) of subsection (a) shall

12 apply—

13 ‘‘(A) with respect to periods beginning 6

14 months after the Secretary issues final rules with

15 respect to such penalties; or

16 ‘‘(B) with respect to fiscal years beginning

17 on or after October 1, 1996;

18 whichever is later.

19 ‘‘(2) MISUSE OF FUNDS.—The penalties de20 scribed in subsection (a)(1) shall apply with respect

21 to fiscal years beginning on or after October 1, 1995.

22 ‘‘SEC. 408. AUDITS.

23 ‘‘(a) IN GENERAL.—Each State shall, not less than an24 nually, audit the State expenditures from amounts received

25 under this part. Such audit shall—
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1 ‘‘(1) determine the extent to which such expendi2 tures were or were not expended in accordance with

3 this part; and

4 ‘‘(2) be conducted by an approved entity (as de5 fined in subsection (b)) in accordance with generally

6 accepted auditing principles.

7 ‘‘(b) APPROVED ENTITY.—For purposes of subsection

8 (a), the term ‘approved entity’ means an entity that—

9 ‘‘(1) is approved by the Secretary of the Treas10 ury;

11 ‘‘(2) is approved by the chief executive officer of

12 the State; and

13 ‘‘(3) is independent of any agency administering

14 activities funded under this part.

15 ‘‘(c) AUDIT REPORT.—Not later than 30 days follow16 ing the completion of an audit under this subsection, a

17 State shall submit a copy of the audit to the State legisla18 ture, the Secretary of the Treasury, and the Secretary of

19 Health and Human Services.

20 ‘‘(d) ADDITIONAL ACCOUNTING REQUIREMENTS.—The

21 provisions of chapter 75 of title 31, United States Code,

22 shall apply to the audit requirements of this section.

23 ‘‘SEC. 409. DATA COLLECTION AND REPORTING.

24 ‘‘(a) IN GENERAL.—The Secretary, in consultation

25 with State and local government officials and other inter-
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1 ested persons, shall develop a quality assurance system of

2 data collection and reporting that promotes accountability

3 and ensures the improvement and integrity of programs

4 funded under this part.

5 ‘‘(b) STATE SUBMISSIONS.—

6 ‘‘(1) IN GENERAL.—Not later than the 15th day

7 of the first month of each calendar quarter, each State

8 to which a grant is made under section 403(f) shall

9 submit to the Secretary the data described in para10 graphs (2) and (3) with respect to families described

11 in paragraph (4).

12 ‘‘(2) DISAGGREGATED DATA DESCRIBED.—The

13 data described in this paragraph with respect to fam14 ilies described in paragraph (4) is a sample of month15 ly disaggregated case record data containing the fol16 lowing:

17 ‘‘(A) The age of the adults and children (in18 cluding pregnant women) in each family.

19 ‘‘(B) The marital and familial status of

20 each member of the family (including whether

21 the family is a 2-parent family and whether a

22 child is living with an adult relative other than

23 a parent).

24 ‘‘(C) The gender, educational level, work ex25 perience, and race of the head of each family.
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1 ‘‘(D) The health status of each member of

2 the family (including whether any member of the

3 family is seriously ill, disabled, or incapacitated

4 and is being cared for by another member of the

5 family).

6 ‘‘(E) The type and amount of any benefit or

7 assistance received by the family, including—

8 ‘‘(i) the amount of and reason for any

9 reduction in assistance, and

10 ‘‘(ii) if assistance is terminated, wheth11 er termination is due to employment, sanc12 tion, or time limit.

13 ‘‘(F) Any benefit or assistance received by a

14 member of the family with respect to housing,

15 food stamps, job training, or the Head Start pro16 gram.

17 ‘‘(G) The number of months since the family

18 filed the most recent application for assistance

19 under the program and if assistance was denied,

20 the reason for the denial.

21 ‘‘(H) The number of times a family has ap22 plied for and received assistance under the State

23 program and the number of months assistance

24 has been received each time assistance has been

25 provided to the family.
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1 ‘‘(I) The employment status of the adults in

2 the family (including the number of hours

3 worked and the amount earned).

4 ‘‘(J) The date on which an adult in the

5 family began to engage in work, the number of

6 hours the adult engaged in work, the work activ7 ity in which the adult participated, and the

8 amount of child care assistance provided to the

9 adult (if any).

10 ‘‘(K) The number of individuals in each

11 family receiving assistance and the number of

12 individuals in each family not receiving assist13 ance, and the relationship of each individual to

14 the youngest child in the family.

15 ‘‘(L) The citizenship status of each member

16 of the family.

17 ‘‘(M) The housing arrangement of each

18 member of the family.

19 ‘‘(N) The amount of unearned income, child

20 support, assets, and other financial factors con21 sidered in determining eligibility for assistance

22 under the State program.

23 ‘‘(O) The location in the State of each fam24 ily receiving assistance.
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1 ‘‘(P) Any other data that the Secretary de2 termines is necessary to ensure efficient and ef3 fective program administration.

4 ‘‘(3) AGGREGATED MONTHLY DATA.—The data

5 described in this paragraph is the following aggre6 gated monthly data with respect to the families de7 scribed in paragraph (4):

8 ‘‘(A) The number of families.

9 ‘‘(B) The number of adults in each family.

10 ‘‘(C) The number of children in each fam11 ily.

12 ‘‘(D) The number of families for which as13 sistance has been terminated because of employ14 ment, sanctions, or time limits.

15 ‘‘(4) FAMILIES DESCRIBED.—The families de16 scribed in this paragraph are—

17 ‘‘(A) families receiving assistance under a

18 State program funded under this part for each

19 month in the calendar quarter preceding the cal20 endar quarter in which the data is submitted;

21 ‘‘(B) families applying for such assistance

22 during such preceding calendar quarter; and

23 ‘‘(C) families that became ineligible to re24 ceive such assistance during such preceding cal25 endar quarter.
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1 ‘‘(5) APPROPRIATE SUBSETS OF DATA COL2 LECTED.—The Secretary shall determine appropriate

3 subsets of the data described in paragraphs (2) and

4 (3) that a State is required to submit under para5 graph (1) with respect to families described in sub6 paragraphs (B) and (C) of paragraph (4).

7 ‘‘(6) SAMPLING AND OTHER METHODS.—The

8 Secretary shall provide the States with such case sam9 pling plans and data collection procedures as the Sec10 retary deems necessary to produce statistically valid

11 estimates of each State’s program performance. The

12 Secretary is authorized to develop and implement

13 procedures for verifying the quality of data submitted

14 by the States.

15 ‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO COVER

16 ADMINISTRATIVE COSTS AND OVERHEAD.—The report re17 quired by subsection (a) for a fiscal year shall include a

18 statement of—

19 ‘‘(1) the total amount and percentage of the Fed20 eral funds paid to the State under this part for the

21 fiscal year that are used to cover administrative costs

22 or overhead; and

23 ‘‘(2) the total amount of State funds that are

24 used to cover such costs or overhead.
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1 ‘‘(d) REPORT ON STATE EXPENDITURES ON PRO2 GRAMS FOR NEEDY FAMILIES.—The report required by sub3 section (a) for a fiscal year shall include a statement of

4 the total amount expended by the State during the fiscal

5 year on the program under this part and the purposes for

6 which such amount was spent.

7 ‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI8 PATING IN WORK ACTIVITIES.—The report required by sub9 section (a) for a fiscal year shall include the number of

10 noncustodial parents in the State who participated in work

11 activities during the fiscal year.

12 ‘‘(f) REPORT ON CHILD SUPPORT COLLECTED.—The

13 report required by subsection (a) for a fiscal year shall in14 clude the total amount of child support collected by the

15 State agency administering the State program under part

16 D on behalf of a family receiving assistance under this part.

17 ‘‘(g) REPORT ON CHILD CARE.—The report required

18 by subsection (a) for a fiscal year shall include the total

19 amount expended by the State for child care under the pro20 gram under this part, along with a description of the types

21 of child care provided, including child care provided in the

22 case of a family that—

23 ‘‘(1) has ceased to receive assistance under this

24 part because of employment; or
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1 ‘‘(2) is not receiving assistance under this part

2 but would be at risk of becoming eligible for such as3 sistance if child care was not provided.

4 ‘‘(h) REPORT ON TRANSITIONAL SERVICES.—The re5 port required by subsection (a) for a fiscal year shall in6 clude the total amount expended by the State for providing

7 transitional services to a family that has ceased to receive

8 assistance under this part because of employment, along

9 with a description of such services.

10 ‘‘(i) SECRETARY’S REPORT ON DATA PROCESSING.—

11 ‘‘(1) IN GENERAL.—Not later than 6 months

12 after the date of the enactment of the Work Oppor13 tunity Act of 1995, the Secretary shall prepare and

14 submit to the Congress a report on—

15 ‘‘(A) the status of the automated data proc16 essing systems operated by the States to assist

17 management in the administration of State pro18 grams under this part (whether in effect before or

19 after October 1, 1995); and

20 ‘‘(B) what would be required to establish a

21 system capable of—

22 ‘‘(i) tracking participants in public

23 programs over time; and

24 ‘‘(ii) checking case records of the States

25 to determine whether individuals are par-
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1 ticipating in public programs in 2 or more

2 States.

3 ‘‘(2) PREFERRED CONTENTS.—The report re4 quired by paragraph (1) should include—

5 ‘‘(A) a plan for building on the automated

6 data processing systems of the States to establish

7 a system with the capabilities described in para8 graph (1)(B); and

9 ‘‘(B) an estimate of the amount of time re10 quired to establish such a system and of the cost

11 of establishing such a system.

12 ‘‘(j) REPORT TO CONGRESS.—Not later than 6 months

13 after the end of fiscal year 1997, and each fiscal year there14 after, the Secretary shall transmit to the Congress a report

15 describing—

16 ‘‘(1) whether the States are meeting—

17 ‘‘(A) the participation rates described in

18 section 404(a); and

19 ‘‘(B) the objectives of—

20 ‘‘(i) increasing employment and earn21 ings of needy families, and child support

22 collections; and

23 ‘‘(ii) decreasing out-of-wedlock preg24 nancies and child poverty;
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1 ‘‘(3) the demographic and financial characteris2 tics of families applying for assistance, families re3 ceiving assistance, and families that become ineligible

4 to receive assistance;

5 ‘‘(4) the characteristics of each State program

6 funded under this part; and

7 ‘‘(5) the trends in employment and earnings of

8 needy families with minor children.

9 ‘‘SEC. 410. RESEARCH, EVALUATIONS, AND NATIONAL STUD10 IES.

11 ‘‘(a) RESEARCH.—The Secretary shall conduct re12 search on the benefits, effects, and costs of operating dif13 ferent State programs funded under this part, including

14 time limits relating to eligibility for assistance. The re15 search shall include studies on the effects of different pro16 grams and the operation of such programs on welfare de17 pendency, illegitimacy, teen pregnancy, employment rates,

18 child well-being, and any other area the Secretary deems

19 appropriate.

20 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE

21 APPROACHES TO REDUCING WELFARE DEPENDENCY AND

22 INCREASING CHILD WELL-BEING.—

23 ‘‘(1) IN GENERAL.—The Secretary may assist

24 States in developing, and shall evaluate, innovative

25 approaches for reducing welfare dependency and in-
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1 creasing the well-being of minor children with respect

2 to recipients of assistance under programs funded

3 under this part. The Secretary may provide funds for

4 training and technical assistance to carry out the ap5 proaches developed pursuant to this paragraph.

6 ‘‘(2) EVALUATIONS.—In performing the evalua7 tions under paragraph (1), the Secretary shall, to the

8 maximum extent feasible, use random assignment as

9 an evaluation methodology.

10 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec11 retary shall develop innovative methods of disseminating

12 information on any research, evaluations, and studies con13 ducted under this section, including the facilitation of the

14 sharing of information and best practices among States and

15 localities through the use of computers and other tech16 nologies.

17 ‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF

18 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

19 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec20 retary shall rank annually the States to which grants

21 are paid under section 403 in the order of their suc22 cess in placing recipients of assistance under the

23 State program funded under this part into long-term

24 private sector jobs, reducing the overall welfare case25 load, and, when a practicable method for calculating
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1 this information becomes available, diverting individ2 uals from formally applying to the State program

3 and receiving assistance. In ranking States under this

4 subsection, the Secretary shall take into account the

5 average number of minor children in families in the

6 State that have incomes below the poverty line and

7 the amount of funding provided each State for such

8 families.

9 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUC10 CESSFUL WORK PROGRAMS.—The Secretary shall re11 view the programs of the 3 States most recently

12 ranked highest under paragraph (1) and the 3 States

13 most recently ranked lowest under paragraph (1) that

14 provide parents with work experience, assistance in

15 finding employment, and other work preparation ac16 tivities and support services to enable the families of

17 such parents to leave the program and become self-suf18 ficient.

19 ‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF IS20 SUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—

21 ‘‘(1) ANNUAL RANKING OF STATES.—

22 ‘‘(A) IN GENERAL.—The Secretary shall an23 nually rank States to which grants are paid

24 under section 403 based on the following ranking
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1 factors (developed with information reported by

2 the State under section 409(a)(13)):

3 ‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA4 TIOS.—The ratio represented by—

5 ‘‘(I) the total number of out-of6 wedlock births in families receiving as7 sistance under the State program

8 under this part in the State for the

9 most recent fiscal year for which infor10 mation is available; over

11 ‘‘(II) the total number of births in

12 families receiving assistance under the

13 State program under this part in the

14 State for such year.

15 ‘‘(ii) NET CHANGES IN THE OUT-OF16 WEDLOCK RATIO.—The difference between

17 the ratio described in subparagraph (A)(i)

18 for the most recent fiscal year for which in19 formation is available and such State’s

20 ratio determined for the preceding year.

21 ‘‘(2) ANNUAL REVIEW.—The Secretary shall re22 view the programs of the 5 States most recently

23 ranked highest under paragraph (1) and the 5 States

24 most recently ranked the lowest under paragraph (1).
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1 ‘‘(f) STUDY ON ALTERNATIVE OUTCOMES MEAS2 URES.—

3 ‘‘(1) STUDY.—The Secretary shall, in coopera4 tion with the States, study and analyze outcomes

5 measures for evaluating the success of a State in mov6 ing individuals out of the welfare system through em7 ployment as an alternative to the minimum partici8 pation rates described in section 404. The study shall

9 include a determination as to whether such alter10 native outcomes measures should be applied on a na11 tional or a State-by-State basis and a preliminary

12 assessment of the job placement performance bonus es13 tablished under section 403(f).

14 ‘‘(2) REPORT.—Not later than September 30,

15 1998, the Secretary shall submit to the Committee on

16 Finance of the Senate and the Committee on Ways

17 and Means of the House of Representatives a report

18 containing the findings of the study described in

19 paragraph (1).

20 ‘‘(g) STATE-INITIATED STUDIES.—A State shall be eli21 gible to receive funding to evaluate the State’s family assist22 ance program funded under this part if—

23 ‘‘(1) the State submits a proposal to the Sec24 retary for such evaluation,
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1 ‘‘(2) the Secretary determines that the design

2 and approach of the evaluation is rigorous and is

3 likely to yield information that is credible and will

4 be useful to other States, and

5 ‘‘(3) unless otherwise waived by the Secretary,

6 the State provides a non-Federal share of at least 10

7 percent of the cost of such study.

8 ‘‘SEC. 411. STUDY BY THE CENSUS BUREAU.

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

10 expand the Survey of Income and Program Participation

11 as necessary to obtain such information as will enable in12 terested persons to evaluate the impact of the amendments

13 made by title I of the Work Opportunity Act of 1995 on

14 a random national sample of recipients of assistance under

15 State programs funded under this part and (as appro16 priate) other low-income families, and in doing so, shall

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

18 births, welfare dependency, the beginning and end of welfare

19 spells, and the causes of repeat welfare spells.

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

21 Treasury of the United States not otherwise appropriated,

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

23 the Census $10,000,000 for each of fiscal years 1996, 1997,

24 1998, 1999, and 2000 to carry out subsection (a).
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1 ‘‘SEC. 412. WAIVERS.

2 ‘‘(a) CONTINUATION OF WAIVERS.—

3 ‘‘(1) IN GENERAL.—Except as provided in para4 graph (2), if any waiver granted to a State under sec5 tion 1115 or otherwise which relates to the provision

6 of assistance under a State plan under this part is

7 in effect or approved by the Secretary as of October

8 1, 1995, the amendments made by the Work Oppor9 tunity Act of 1995 shall not apply with respect to the

10 State before the expiration (determined without re11 gard to any extensions) of the waiver to the extent

12 such amendments are inconsistent with the terms of

13 the waiver.

14 ‘‘(2) FINANCING LIMITATION.—Notwithstanding

15 any other provision of law, beginning with fiscal year

16 1996, a State operating under a waiver described in

17 paragraph (1) shall receive the payment described for

18 such State for such fiscal year under section 403, in

19 lieu of any other payment provided for in the waiver.

20 ‘‘(b) STATE OPTION TO TERMINATE WAIVER.—

21 ‘‘(1) IN GENERAL.—A State may terminate a

22 waiver described in subsection (a) before the expira23 tion of the waiver.

24 ‘‘(2) REPORT.—A State which terminates a

25 waiver under paragraph (1) shall submit a report to

26 the Secretary summarizing the waiver and any avail-
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1 able information concerning the result or effect of

2 such waiver.

3 ‘‘(3) HOLD HARMLESS PROVISION.—

4 ‘‘(A) IN GENERAL.—Notwithstanding any

5 other provision of law, a State that, not later

6 than the date described in subparagraph (B),

7 submits a written request to terminate a waiver

8 described in subsection (a) shall be held harmless

9 for accrued cost neutrality liabilities incurred

10 under the terms and conditions of such waiver.

11 ‘‘(B) DATE DESCRIBED.—The date described

12 in this subparagraph is the later of—

13 ‘‘(i) January 1, 1996; or

14 ‘‘(ii) 90 days following the adjourn15 ment of the first regular session of the State

16 legislature that begins after the date of the

17 enactment of the Work Opportunity Act of

18 1995.

19 ‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT

20 WAIVERS.—The Secretary shall encourage any State oper21 ating a waiver described in subsection (a) to continue such

22 waiver and to evaluate, using random sampling and other

23 characteristics of accepted scientific evaluations, the result

24 or effect of such waiver.
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1 ‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A

2 State may elect to continue one or more individual waivers

3 described in subsection (a)(1).

4 ‘‘SEC. 413. STATE AND COUNTY DEMONSTRATION PRO5 GRAMS.

6 ‘‘(a) NO LIMITATION OF STATE DEMONSTRATION

7 PROJECTS.—Nothing in this part shall be construed as lim8 iting a State’s ability to conduct demonstration projects for

9 the purpose of identifying innovative or effective program

10 designs in 1 or more political subdivisions of the State: Pro11 vided, That such State contains more than one county with

12 a population of greater than 500,000.

13 ‘‘(b) COUNTY WELFARE DEMONSTRATION PROJECT.—

14 ‘‘(1) IN GENERAL.—The Secretary of Health and

15 Human Services and the Secretary of Agriculture

16 shall jointly enter into negotiations with all counties

17 having a population greater than 500,000 desiring to

18 conduct a demonstration project described in para19 graph (2) for the purpose of establishing appropriate

20 rules to govern the establishment and operation of

21 such project.

22 ‘‘(2) DEMONSTRATION PROJECT DESCRIBED.—

23 The demonstration project described in this para24 graph shall provide that—
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1 ‘‘(A) a county participating in the dem2 onstration project shall have the authority and

3 duty to administer the operation of the program

4 described under this part as if the county were

5 considered a State for the purpose of this part;

6 ‘‘(B) the State in which the county partici7 pating in the demonstration project is located

8 shall pass through directly to the county the por9 tion of the grant received by the State under sec10 tion 403 which the State determines is attrib11 utable to the residents of such county; and

12 ‘‘(C) the duration of the project shall be for

13 5 years.

14 ‘‘(3) COMMENCEMENT OF PROJECT.—After the

15 conclusion of the negotiations described in paragraph

16 (2), the Secretary of Health and Human Services and

17 the Secretary of Agriculture may authorize a county

18 to conduct the demonstration project described in

19 paragraph (2) in accordance with the rules estab20 lished during the negotiations.

21 ‘‘(4) REPORT.—Not later then 6 months after the

22 termination of a demonstration project operated

23 under this subsection, the Secretary of Health and

24 Human Services and the Secretary of Agriculture

25 shall submit to the Congress a report that includes—
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1 ‘‘(A) a description of the demonstration

2 project;

3 ‘‘(B) the rules negotiated with respect to the

4 project; and

5 ‘‘(C) the innovations (if any) that the coun6 ty was able to initiate under the project.

7 ‘‘(5) ELIGIBLE COUNTY.—A county may partici8 pate in a demonstration project under this subsection

9 if the county is—

10 ‘‘(A) a county that is already administering

11 the welfare program under this part;

12 ‘‘(B) represents less than 25 percent of the

13 State’s total welfare caseload.

14 ‘‘SEC. 414. DIRECT FUNDING AND ADMINISTRATION BY IN15 DIAN TRIBES.

16 ‘‘(a) PURPOSE.—The purpose of this section is—

17 ‘‘(1) to strengthen and enhance the control and

18 flexibility of local governments over local programs;

19 and

20 ‘‘(2) in recognition of the principles contained in

21 the Indian Self-Determination and Education Assist22 ance Act (25 U.S.C. 450 et seq.)—

23 ‘‘(A) to provide direct Federal funding to

24 Indian tribes for the tribal administration of the

25 program funded under this part; or
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1 ‘‘(B) to enable Indian tribes to enter into

2 agreements, contracts, or compacts with inter3 tribal consortia, States, or other entities for the

4 administration of such program on behalf of the

5 Indian tribe.

6 ‘‘(b) GRANT AMOUNTS FOR INDIAN TRIBES.—

7 ‘‘(1) IN GENERAL.—For each of fiscal years

8 1996, 1997, 1998, 1999, and 2000, the Secretary shall

9 pay to each Indian tribe that has an approved tribal

10 family assistance plan a tribal family assistance

11 grant for the fiscal year in an amount equal to the

12 amount determined under paragraph (2).

13 ‘‘(2) AMOUNT DETERMINED.—

14 ‘‘(A) IN GENERAL.—The amount determined

15 under this paragraph is an amount equal to the

16 total amount of the Federal payments to a State

17 or States under section 403 for fiscal year 1994

18 (as in effect during such fiscal year) attributable

19 to expenditures by the State or States under part

20 A and part F of this title (as so in effect) in such

21 year for Indian families residing in the service

22 area or areas identified by the Indian tribe in

23 subsection (c)(1)(C).

24 ‘‘(B) USE OF STATE SUBMITTED DATA.—
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1 ‘‘(i) IN GENERAL.—The Secretary shall

2 use State submitted data to make each de3 termination under subparagraph (A).

4 ‘‘(ii) DISAGREEMENT WITH DETER5 MINATION.—If an Indian tribe or tribal or6 ganization disagrees with State submitted

7 data described under clause (i), the Indian

8 tribe or tribal organization may submit to

9 the Secretary such additional information

10 as may be relevant to making the deter11 mination under subparagraph (A) and the

12 Secretary may consider such information

13 before making such determination.

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

15 ‘‘(1) IN GENERAL.—Any Indian tribe that de16 sires to receive a tribal family assistance grant shall

17 submit to the Secretary a 3-year tribal family assist18 ance plan that—

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

20 providing welfare-related services for the 3-year

21 period, consistent with the purposes of this sec22 tion;

23 ‘‘(B) specifies whether the welfare-related

24 services provided under the plan will be provided

25 by the Indian tribe or through agreements, con-
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1 tracts, or compacts with intertribal consortia,

2 States, or other entities;

3 ‘‘(C) identifies the population and service

4 area or areas to be served by such plan;

5 ‘‘(D) provides that a family receiving as6 sistance under the plan may not receive duplica7 tive assistance from other State or tribal pro8 grams funded under this part;

9 ‘‘(E) identifies the employment opportuni10 ties in or near the service area or areas of the

11 Indian tribe and the manner in which the In12 dian tribe will cooperate and participate in en13 hancing such opportunities for recipients of as14 sistance under the plan consistent with any ap15 plicable State standards; and

16 ‘‘(F) applies the fiscal accountability provi17 sions of section 5(f)(1) of the Indian Self-Deter18 mination and Education Assistance Act (25

19 U.S.C. 450c(f)(1)), relating to the submission of

20 a single-agency audit report required by chapter

21 75 of title 31, United States Code.

22 ‘‘(2) APPROVAL.—The Secretary shall approve

23 each tribal family assistance plan submitted in ac24 cordance with paragraph (1).
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1 ‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this

2 section shall preclude the development and submission

3 of a single plan by the participating Indian tribes of

4 an intertribal consortium.

5 ‘‘(d) MINIMUM WORK PARTICIPATION REQUIREMENTS

6 AND TIME LIMITS.—The Secretary, with the participation

7 of Indian tribes, shall establish for each Indian tribe receiv8 ing a grant under this section minimum work participa9 tion requirements, appropriate time limits for receipt of

10 welfare-related services under such grant, and penalties

11 against individuals—

12 ‘‘(1) consistent with the purposes of this section;

13 ‘‘(2) consistent with the economic conditions and

14 resources available to each tribe; and

15 ‘‘(3) similar to comparable provisions in section

16 404(d).

17 ‘‘(e) EMERGENCY ASSISTANCE.—Nothing in this sec18 tion shall preclude an Indian tribe from seeking emergency

19 assistance from any Federal loan program or emergency

20 fund.

21 ‘‘(f) ACCOUNTABILITY.—Nothing in this section shall

22 be construed to limit the ability of the Secretary to main23 tain program funding accountability consistent with—

24 ‘‘(1) generally accepted accounting principles;

25 and
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1 ‘‘(2) the requirements of the Indian Self-Deter2 mination and Education Assistance Act (25 U.S.C.

3 450 et seq.).

4 ‘‘(g) TRIBAL PENALTIES.—For the purpose of ensuring

5 the proper use of tribal family assistance grants, the follow6 ing provisions shall apply to an Indian tribe with an ap7 proved tribal assistance plan:

8 ‘‘(1) The provisions of subsections (a)(1), (a)(6),

9 and (b) of section 407, in the same manner as such

10 subsections apply to a State.

11 ‘‘(2) The provisions of section 407(a)(3), except

12 that such subsection shall be applied by substituting

13 ‘the minimum requirements established under sub14 section (d) of section 414’ for ‘the minimum partici15 pation rates specified in section 404’.

16 ‘‘(h) DATA COLLECTION AND REPORTING.—For the

17 purpose of ensuring uniformity in data collection, section

18 409 shall apply to an Indian tribe with an approved tribal

19 family assistance plan.

20 ‘‘(i) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—

21 ‘‘(1) IN GENERAL.—Notwithstanding any other

22 provision of this section, and except as provided in

23 paragraph (2), an Indian tribe in the State of Alaska

24 that receives a tribal family assistance grant under

25 this section shall use such grant to operate a program
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1 in accordance with the requirements applicable to the

2 program of the State of Alaska funded under this

3 part.

4 ‘‘(2) WAIVER.—An Indian tribe described in

5 paragraph (1) may apply to the appropriate State

6 authority to receive a waiver of the requirement of

7 paragraph (1).

8 ‘‘SEC. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

9 ‘‘The programs under this part and part D of this title

10 shall be administered by an Assistant Secretary for Family

11 Support within the Department of Health and Human

12 Services, who shall be appointed by the President, by and

13 with the advice and consent of the Senate, and who shall

14 be in addition to any other Assistant Secretary of Health

15 and Human Services provided for by law.

16 ‘‘SEC. 416. LIMITATION ON FEDERAL AUTHORITY.

17 ‘‘The Secretary of Health and Human Services and

18 the Secretary of the Treasury may not regulate the conduct

19 of States under this part or enforce any provision of this

20 part, except to the extent expressly provided in this part.

21 ‘‘SEC. 417. APPEAL OF ADVERSE DECISION.

22 ‘‘(a) IN GENERAL.—The Secretary shall notify the

23 chief executive officer of a State of any adverse decision or

24 action under this part, including any decision with respect
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1 to the State’s plan or the imposition of a penalty under

2 section 407.

3 ‘‘(b) ADMINISTRATIVE REVIEW OF ADVERSE DECI4 SION.—

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

6 date a State receives notice of an adverse decision

7 under this section, the State may appeal the decision,

8 in whole or in part, to the Departmental Appeals

9 Board established in the Department of Health and

10 Human Services (hereafter referred to in this section

11 as the ‘Board’) by filing an appeal with the Board.

12 ‘‘(2) PROCEDURAL RULES.—The Board shall

13 consider a State’s appeal on the basis of such docu14 mentation as the State may submit and as the Board

15 may require to support the final decision of the

16 Board. In deciding whether to uphold an adverse de17 cision or any portion thereof, the Board shall conduct

18 a thorough review of the issues and take into account

19 all relevant evidence. The Board shall make a final

20 determination with respect to an appeal filed under

21 this paragraph not less than 60 days after the date

22 the appeal is filed.

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

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

25 date of a final decision by the Board with respect to
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1 an adverse decision regarding a State under this sec2 tion, the State may obtain judicial review of the final

3 decision (and the findings incorporated into the final

4 decision) by filing an action in—

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

6 for the judicial district in which the principal or

7 headquarters office of the State agency is located;

8 or

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

10 the District of Columbia.

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

12 which an action is filed shall review the final decision

13 of the Board on the record established in the adminis14 trative proceeding, in accordance with the standards

15 of review prescribed by subparagraphs (A) through

16 (E) of section 706(2) of title 5, United States Code.

17 The review shall be on the basis of the documents and

18 supporting data submitted to the Board.

19 ‘‘SEC. 418. PERFORMANCE BONUS AND HIGH PERFORM20 ANCE BONUS.

21 ‘‘(a) IN GENERAL.—

22 ‘‘(1) PERFORMANCE BONUS.—In addition to the

23 State family assistance grant, for fiscal year 2000,

24 the Secretary shall pay to each qualified State an
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1 amount equal to the State’s share of the performance

2 bonus fund described in paragraph (3).

3 ‘‘(2) QUALIFIED STATE.—For purposes of this

4 subsection, the term ‘qualified State’ means a State

5 that during the measurement period—

6 ‘‘(A) exceeds the overall average perform7 ance achieved by all States with respect to a

8 measurement category, or

9 ‘‘(B) improves the State’s performance in a

10 measurement category by at least 15 percent over

11 the State’s baseline period.

12 ‘‘(3) BONUS FUND.—The amount of the bonus

13 fund for fiscal year 2000 shall be an amount equal

14 to 5 percent of the amount appropriated under sec15 tion 403(a)(2)(A) for such fiscal year.

16 ‘‘(b) HIGH PERFORMANCE BONUS.—

17 ‘‘(1) IN GENERAL.—In addition to the amount

18 provided under subsection (a), each of the 10 high

19 performance States in each measurement category

20 shall be entitled to receive a share of the high per21 formance bonus fund described in paragraph (3).

22 ‘‘(2) HIGH PERFORMANCE STATES.—For pur23 poses of this subsection, the term ‘high performance

24 States’ means with respect to each measurement cat25 egory during the measurement period—
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1 ‘‘(A) the 5 States that have the highest per2 centage of improvement with respect to the

3 State’s performance in the measurement category

4 over the State’s baseline period; and

5 ‘‘(B) the 5 States that have the highest over6 all average performance with respect to the meas7 urement category.

8 ‘‘(3) HIGH PERFORMANCE BONUS FUND.—There

9 are authorized to be appropriated and there are ap10 propriated the amount of the high performance bonus

11 fund for fiscal year 2000 equal to the amount of the

12 reduction in State family assistance grants for all

13 States for fiscal years 1996, 1997, 1998, and 1999 re14 sulting from the application of section 407.

15 ‘‘(c) DEFINITIONS AND SPECIAL RULES.— For pur16 poses of this section:

17 ‘‘(1) MEASUREMENT CATEGORY.—A measure18 ment category means any of the following categories:

19 ‘‘(A) A reduction in the average length of

20 time families in the State receive assistance dur21 ing a fiscal year under the State program fund22 ed under this part.

23 ‘‘(B) An increase in the percentage of fami24 lies receiving such assistance under this part
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1 that receive child support payments under part

2 D.

3 ‘‘(C) An increase in the number of families

4 that received assistance under a State program

5 funded under this part in the preceding fiscal

6 year that became ineligible for assistance under

7 the State program as a result of unsubsidized

8 employment during such year.

9 ‘‘(D) An increase in the amount earned by

10 families that receive assistance under this part.

11 ‘‘(E) A reduction in the percentage of fami12 lies that become eligible for assistance under this

13 part within 18 months after becoming ineligible

14 for such assistance.

15 ‘‘(2) MEASUREMENT PERIOD; BASELINE PE16 RIOD.—

17 ‘‘(A) MEASUREMENT PERIOD.—The term

18 ‘measurement period’ means the period begin19 ning not later than 6 months after the date of

20 the enactment of the Work Opportunity Act of

21 1995 and ending on September 30, 1999.

22 ‘‘(B) BASELINE PERIOD.—The term ‘base23 line period’ means fiscal year 1994.

24 ‘‘(3) ALLOCATION FORMULA.—For purposes of

25 determining a State’s share of the performance bonus
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1 fund under subsection (a)(1), and the State’s share of

2 the high performance bonus fund under subsection

3 (b)(1), the Secretary shall, not later than June 30,

4 1999, develop and publish in the Federal Register a

5 formula for allocating amounts in the performance

6 bonus fund to qualified States and a formula for allo7 cating amounts in the high performance bonus fund

8 to high performance States. Such formulas shall be

9 based on each State’s proportional share of the total

10 amount appropriated under section 403(a)(2)(A) for

11 fiscal year 2000.

12 ‘‘SEC. 419. AMOUNTS FOR CHILD CARE.

13 ‘‘(a) CHILD CARE ALLOCATION.—

14 ‘‘(1) IN GENERAL.—From the amount appro15 priated under section 403(a)(4)(A) for a fiscal year,

16 the Secretary shall set aside an amount equal to the

17 total amount of the Federal payments for fiscal year

18 1994 to States under section—

19 ‘‘(A) 402(g)(3)(A) of this Act (as such sec20 tion was in effect before October 1, 1995) for

21 amounts expended for child care pursuant to

22 paragraph (1) of such section;

23 ‘‘(B) 403(l)(1)(A) of this Act (as so in ef24 fect) for amounts expended for child care pursu25 ant to section 402(g)(1)(A) of this Act, in the
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1 case of a State with respect to which section

2 1108 of this Act applies; and

3 ‘‘(C) 403(n) of this Act (as so in effect) for

4 child care services pursuant to section 402(i) of

5 this Act.

6 ‘‘(2) DISTRIBUTION.—From amounts set aside

7 for a fiscal year under paragraph (1), the Secretary

8 shall pay to a State an amount equal to the total

9 amounts of Federal payments for fiscal year 1994 to

10 the State under section—

11 ‘‘(A) 402(g)(3)(A) of this Act (as such sec12 tion was in effect before October 1, 1995) for

13 amounts expended for child care pursuant to

14 paragraph (1) of such section;

15 ‘‘(B) 403(l)(1)(A) of this Act (as so in ef16 fect) for amounts expended for child care pursu17 ant to section 402(g)(1)(A) of this Act, in the

18 case of a State with respect to which section

19 1108 of this Act applies; and

20 ‘‘(C) 403(n) of this Act (as so in effect) for

21 child care services pursuant to section 402(i) of

22 this Act.

23 ‘‘(3) USE OF FUNDS.—Amounts received by a

24 State under paragraph (2) shall only be used to pro25 vide child care assistance under this part.
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1 ‘‘(4) FEDERAL PAYMENTS.—For purposes of

2 paragraphs (1) and (2), Federal payments for fiscal

3 year 1994 means such payments as reported by the

4 State on February 14, 1995.

5 ‘‘(b) ADDITIONAL APPROPRIATION.—

6 ‘‘(1) IN GENERAL.—There are authorized to be

7 appropriated and there are appropriated,

8 $3,000,000,000 to be distributed to the States during

9 the 5-fiscal year period beginning in fiscal year 1996

10 for the provision of child care assistance.

11 ‘‘(2) DISTRIBUTION.—

12 ‘‘(A) IN GENERAL.—The Secretary shall use

13 amounts made available under paragraph (1) to

14 make grants to States. The total amount of

15 grants awarded to a State under this paragraph

16 shall be based on the formula used for determin17 ing the amount of Federal payments to the State

18 for fiscal year 1994 under section 403(n) (as

19 such section was in effect before October 1, 1995)

20 for child care services pursuant to section 402(i)

21 as such amount relates to the total amount of

22 such Federal payments to all States for such fis23 cal year.

24 ‘‘(B) FISCAL YEAR 2000.—With respect to

25 the last quarter of fiscal year 2000, if the Sec-
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1 retary determines that any allotment to a State

2 under this subsection will not be used by such

3 State for carrying out the purpose for which the

4 allotment is available, the Secretary shall make

5 such allotment available for carrying out such

6 purpose to 1 or more other States which apply

7 for such funds to the extent the Secretary deter8 mines that such other States will be able to use

9 such additional allotments for carrying out such

10 purpose. Such available allotments shall be re11 allocated to a State pursuant to section 402(i)

12 (as such section was in effect before October 1,

13 1995) by substituting ‘the number of children re14 siding in all States applying for such funds’ for

15 ‘the number of children residing in the United

16 States in the second preceding fiscal year’. Any

17 amount made available to a State from an ap18 propriation for a fiscal year in accordance with

19 the preceding sentence shall, for purposes of this

20 part, be regarded as part of such State’s pay21 ment (as determined under this subsection) for

22 such year.

23 ‘‘(3) AMOUNT OF FUNDS.—The Secretary shall

24 pay to each eligible State in a fiscal year an amount

25 equal to the Federal medical assistance percentage for
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1 such State for such fiscal year (as defined in section

2 1905(b)) of so much of the expenditures by the State

3 for child care in such year as exceed the State set4 aside for such State under subsection (a) for such

5 year and the amount of State expenditures in fiscal

6 year 1994 that equal the non-Federal share for the

7 programs described in subparagraphs (A), (B) and

8 (C) of subsection (a)(1).

9 ‘‘(4) BUDGET SCORING.—Notwithstanding sec10 tion 257(b)(2) of the Balanced Budget and Emer11 gency Deficit Control Act of 1985, the baseline shall

12 assume that no grant shall be made under this sub13 section after fiscal year 2000.

14 ‘‘(c) ADMINISTRATIVE PROVISIONS.—

15 ‘‘(1) STATE OPTION.—For purposes of section

16 402(a)(1)(B), a State may, at its option, not require

17 a single parent with a child under the age of 6 to

18 participate in work for more than an average of 20

19 hours per week during a month and may count such

20 parent as being engaged in work for a month for pur21 poses, of section 404(c)(1) if such parent participates

22 in work for an average of 20 hours per week during

23 such month.
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1 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in this

2 section shall be construed to provide an entitlement to

3 child care services to any child.

4 ‘‘SEC. 420. ELIGIBILITY FOR CHILD CARE ASSISTANCE.

5 Notwithstanding section 658T of the Child Care and

6 Development Block Grant Act of 1990, the State agency

7 specified in section 402(a)(6) shall determine eligibility for

8 child care assistance provided under this part in accordance

9 with criteria determined by the State.

10 ‘‘SEC. 421. COLLECTION OF OVERPAYMENTS FROM FED11 ERAL TAX REFUNDS.

12 ‘‘(a) IN GENERAL.—Upon receiving notice from the

13 Secretary of Health and Human Services that a State agen14 cy administering a plan approved under this part has noti15 fied the Secretary that a named individual has been over16 paid under the State plan approved under this part, the

17 Secretary of the Treasury shall determine whether any

18 amounts as refunds of Federal taxes paid are payable to

19 such individual, regardless of whether such individual filed

20 a tax return as a married or unmarried individual. If the

21 Secretary of the Treasury finds that any such amount is

22 payable, the Secretary shall withhold from such refunds an

23 amount equal to the overpayment sought to be collected by

24 the State and pay such amount to the State agency.
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1 ‘‘(b) REGULATIONS.—The Secretary of the Treasury

2 shall issue regulations, after review by the Secretary of

3 Health and Human Services, that provide—

4 ‘‘(1) that a State may only submit under sub5 section (a) requests for collection of overpayments

6 with respect to individuals—

7 ‘‘(A) who are no longer receiving assistance

8 under the State plan approved under this part,

9 ‘‘(B) with respect to whom the State has al10 ready taken appropriate action under State law

11 against the income or resources of the individ12 uals or families involved to collect the past-due

13 legally enforceable debt; and

14 ‘‘(C) to whom the State agency has given

15 notice of its intent to request withholding by the

16 Secretary of the Treasury from the income tax

17 refunds of such individuals;

18 ‘‘(2) that the Secretary of the Treasury will give

19 a timely and appropriate notice to any other person

20 filing a joint return with the individual whose refund

21 is subject to withholding under subsection (a); and

22 ‘‘(3) the procedures that the State and the Sec23 retary of the Treasury will follow in carrying out this

24 section which, to the maximum extent feasible and

25 consistent with the specific provisions of this section,
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1 will be the same as those issued pursuant to section

2 464(b) applicable to collection of past-due child sup3 port.’’.

4 (c) CONFORMING AMENDMENTS RELATING TO COL5 LECTION OF OVERPAYMENTS.—

6 (1) Section 6402 of the Internal Revenue Code of

7 1986 (relating to authority to make credits or re8 funds) is amended—

9 (A) in subsection (a), by striking ‘‘(c) and

10 (d)’’ and inserting ‘‘(c), (d), and (e)’’;

11 (B) by redesignating subsections (e) through

12 (i) as subsections (f) through (j), respectively;

13 and

14 (C) by inserting after subsection (d) the fol15 lowing:

16 ‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE

17 IV–A OF THE SOCIAL SECURITY ACT.—The amount of any

18 overpayment to be refunded to the person making the over19 payment shall be reduced (after reductions pursuant to sub20 sections (c) and (d), but before a credit against future liabil21 ity for an internal revenue tax) in accordance with section

22 421 of the Social Security Act (concerning recovery of over23 payments to individuals under State plans approved under

24 part A of title IV of such Act).’’.
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1 (2) Paragraph (10) of section 6103(l) of such

2 Code is amended—

3 (A) by striking ‘‘(c) or (d)’’ each place it

4 appears and inserting ‘‘(c), (d), or (e)’’; and

5 (B) by adding at the end of subparagraph

6 (B) the following new sentence: ‘‘Any return in7 formation disclosed with respect to section

8 6402(e) shall only be disclosed to officers and em9 ployees of the State agency requesting such infor10 mation.’’.

11 (3) The matter preceding subparagraph (A) of

12 section 6103(p)(4) of such Code is amended—

13 (A) by striking ‘‘(5), (10)’’ and inserting

14 ‘‘(5)’’; and

15 (B) by striking ‘‘(9), or (12)’’ and inserting

16 ‘‘(9), (10), or (12)’’.

17 (4) Section 552a(a)(8)(B)(iv)(III) of title 5,

18 United States Code, is amended by striking ‘‘section

19 464 or 1137 of the Social Security Act’’ and inserting

20 ‘‘section 421, 464, or 1137 of the Social Security

21 Act.’’.

22 SEC. 102. SERVICES PROVIDED BY CHARITABLE, RELI23 GIOUS, OR PRIVATE ORGANIZATIONS.

24 (a) IN GENERAL.—
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1 (1) STATE OPTIONS.—Notwithstanding any other

2 provision of law, a State may—

3 (A) administer and provide services under

4 the programs described in subparagraphs (A)

5 and (B)(i) of paragraph (2) through contracts

6 with charitable, religious, or private organiza7 tions; and

8 (B) provide beneficiaries of assistance under

9 the programs described in subparagraphs (A)

10 and (B)(ii) of paragraph (2) with certificates,

11 vouchers, or other forms of disbursement which

12 are redeemable with such organizations.

13 (2) PROGRAMS DESCRIBED.—The programs de14 scribed in this paragraph are the following programs:

15 (A) A State program funded under part A

16 of title IV of the Social Security Act (as amend17 ed by section 101).

18 (B) Any other program that is established

19 or modified under titles I, II, or X that—

20 (i) permits contracts with organiza21 tions; or

22 (ii) permits certificates, vouchers, or

23 other forms of disbursement to be provided

24 to beneficiaries, as a means of providing as25 sistance.
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1 (b) RELIGIOUS ORGANIZATIONS.—The purpose of this

2 section is to allow religious organizations to contract, or

3 to accept certificates, vouchers, or other forms of disburse4 ment under any program described in subsection (a)(2), on

5 the same basis as any other provider without impairing the

6 religious character of such organizations, and without di7 minishing the religious freedom of beneficiaries of assist8 ance funded under such program.

9 (c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANI10 ZATIONS.—Religious organizations are eligible, on the same

11 basis as any other private organization, as contractors to

12 provide assistance, or to accept certificates, vouchers, or

13 other forms of disbursement, under any program described

14 in subsection (a)(2) so long as the programs are imple15 mented consistent with the Establishment Clause of the

16 United States Constitution. Neither the Federal Govern17 ment nor a State receiving funds under such programs shall

18 discriminate against an organization which is or applies

19 to be a contractor to provide assistance, or which accepts

20 certificates, vouchers, or other forms of disbursement, on the

21 basis that the organization has a religious character.

22 (d) RELIGIOUS CHARACTER AND FREEDOM.—

23 (1) RELIGIOUS ORGANIZATIONS.—Notwithstand24 ing any other provision of law, any religious organi25 zation with a contract described in subsection
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1 (a)(1)(A), or which accepts certificates, vouchers, or

2 other forms of disbursement under subsection

3 (a)(1)(B), shall retain its independence from Federal,

4 State, and local governments, including such organi5 zation’s control over the definition, development,

6 practice, and expression of its religious beliefs.

7 (2) ADDITIONAL SAFEGUARDS.—Neither the Fed8 eral Government nor a State shall require a religious

9 organization to—

10 (A) alter its form of internal governance; or

11 (B) remove religious art, icons, scripture, or

12 other symbols;

13 in order to be eligible to contract to provide assist14 ance, or to accept certificates, vouchers, or other forms

15 of disbursement, funded under a program described in

16 subsection (a)(2).

17 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—

18 (1) IN GENERAL.—If an individual described in

19 paragraph (2) has an objection to the religious char20 acter of the organization or institution from which

21 the individual receives, or would receive, assistance

22 funded under any program described in subsection

23 (a)(2), the State in which the individual resides shall

24 provide such individual (if otherwise eligible for such

25 assistance) with assistance from an alternative pro-
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1 vider the value of which is not less than the value of

2 the assistance which the individual would have re3 ceived from such organization.

4 (2) INDIVIDUAL DESCRIBED.—An individual de5 scribed in this paragraph is an individual who re6 ceives, applies for, or requests to apply for, assistance

7 under a program described in subsection (a)(2).

8 (f) NONDISCRIMINATION IN EMPLOYMENT.—

9 (1) IN GENERAL.—Except as provided in para10 graph (2), nothing in this section shall be construed

11 to modify or affect the provisions of any other Federal

12 or State law or regulation that relates to discrimina13 tion in employment on the basis of religion.

14 (2) EXCEPTION.—A religious organization with

15 a contract described in subsection (a)(1)(A), or which

16 accepts certificates, vouchers, or other forms of dis17 bursement under subsection (a)(1)(B), may require

18 that an employee rendering service pursuant to such

19 contract, or pursuant to the organization’s acceptance

20 of certificates, vouchers, or other forms of disburse21 ment adhere to—

22 (A) the religious tenets and teachings of

23 such organization; and

24 (B) any rules of the organization regarding

25 the use of drugs or alcohol.
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1 (g) NONDISCRIMINATION AGAINST BENEFICIARIES.—

2 Except as otherwise provided in law, a religious organiza3 tion shall not discriminate against an individual in regard

4 to rendering assistance funded under any program de5 scribed in subsection (a)(2) on the basis of religion, a reli6 gious belief, or refusal to actively participate in a religious

7 practice.

8 (h) FISCAL ACCOUNTABILITY.—

9 (1) IN GENERAL.—Except as provided in para10 graph (2), any religious organization contracting to

11 provide assistance funded under any program de12 scribed in subsection (a)(2) shall be subject to the

13 same regulations as other contractors to account in

14 accord with generally accepted auditing principles for

15 the use of such funds provided under such programs.

16 (2) LIMITED AUDIT.—If such organization seg17 regates Federal funds provided under such programs

18 into separate accounts, then only the financial assist19 ance provided with such funds shall be subject to

20 audit.

21 (i) COMPLIANCE.—A religious organization which has

22 its rights under this section violated may enforce its claim

23 exclusively by asserting a civil action for such relief as may

24 be appropriate, including injunctive relief or damages, in
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1 an appropriate State court against the entity or agency

2 that allegedly commits such violation.

3 SEC. 103. LIMITATIONS ON USE OF FUNDS FOR CERTAIN

4 PURPOSES.

5 No funds provided directly to institutions or organiza6 tions to provide services and administer programs described

7 in section 102(a)(2) and programs established or modified

8 under this Act shall be expended for sectarian worship or

9 instruction. This section shall not apply to financial assist10 ance provided to or on behalf of beneficiaries of assistance

11 in the form of certificates, vouchers, or other forms of dis12 bursement, if such beneficiary may choose where such assist13 ance shall be redeemed.

14 SEC. 104. CONTINUED APPLICATION OF CURRENT STAND15 ARDS UNDER MEDICAID PROGRAM.

16 (a) IN GENERAL.—Title XIX (42 U.S.C. 1396 et seq.)

17 is amended—

18 (1) in section 1931, by inserting ‘‘subject to sec19 tion 1931(a),’’ after ‘‘under this title,’’ and by redes20 ignating such section as section 1932; and

21 (2) by inserting after section 1930 the following

22 new section:

23 ‘‘CONTINUED APPLICATION OF AFDC STANDARDS

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

25 and after October 1, 1995, with respect to a State—
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1 ‘‘(1) except as provided in paragraph (2), any

2 reference in this title (or other provision of law in re3 lation to the operation of this title) to a provision of

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

5 such part, shall be considered a reference to such pro6 vision or plan as in effect as of June 1, 1995, with

7 respect to the State and eligibility for medical assist8 ance under this title shall be determined as if such

9 provision or plan (as in effect as of such date) had

10 remained in effect on and after October 1, 1995; and

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

12 1902(a)(55) to a State plan approved under part A

13 of title IV shall be deemed a reference to a State pro14 gram funded under such part (as in effect on and

15 after October 1, 1995).

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

17 A of title IV in effect with respect to a State as of June

18 1, 1995, if the waiver affects eligibility of individuals for

19 medical assistance under this title, such waiver may, at the

20 option of the State, continue to be applied in relation to

21 this title after the date the waiver would otherwise expire.’’.

22 (b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.

23 1396a(a)) is amended—

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

25 (61);
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1 (2) by striking the period at the end of para2 graph (62) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (62) the follow4 ing new paragraph:

5 ‘‘(63) provide for continuing to administer eligi6 bility standards with respect to individuals who are

7 (or seek to be) eligible for medical assistance based on

8 the application of section 1931.’’.

9 (c) CONFORMING AMENDMENTS.—(1) Section 1902(c)

10 (42 U.S.C. 1396a(c)) is amended by striking ‘‘if—’’ and

11 all that follows and inserting the following: ‘‘if the State

12 requires individuals described in subsection (l)(1) to apply

13 for assistance under the State program funded under part

14 A of title IV as a condition of applying for or receiving

15 medical assistance under this title.’’.

16 (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended

17 by striking paragraph (9).

18 (d) EFFECTIVE DATE.—The amendments made by this

19 section shall apply to medical assistance furnished for cal20 endar quarters beginning on or after October 1, 1995.

21 SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY

22 CAREGIVERS FOR THEIR GRANDCHILDREN.

23 (a) IN GENERAL.—Not later than 90 days after the

24 date of the enactment of this Act, the Secretary of Commerce

25 (hereafter in this section referred to as the ‘‘Secretary’’), in
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1 carrying out the provisions of section 141 of title 13, United

2 States Code, shall expand the data collection efforts of the

3 Bureau of the Census (hereafter in this section referred to

4 as the ‘‘Bureau’’) to enable the Bureau to collect statis5 tically significant data, in connection with its decennial

6 census and its mid-decade census, concerning the growing

7 trend of grandparents who are the primary caregivers for

8 their grandchildren.

9 (b) EXPANDED CENSUS QUESTION.—In carrying out

10 the provisions of subsection (a), the Secretary shall expand

11 the Bureau’s census question that details households which

12 include both grandparents and their grandchildren. The ex13 panded question shall be formulated to distinguish between

14 the following households:

15 (1) A household in which a grandparent tempo16 rarily provides a home for a grandchild for a period

17 of weeks or months during periods of parental dis18 tress.

19 (2) A household in which a grandparent provides

20 a home for a grandchild and serves as the primary

21 caregiver for the grandchild.

22 SEC. 105A. DEVELOPMENT OF PROTOTYPE OF COUNTER23 FEIT-RESISTANT SOCIAL SECURITY CARD RE24 QUIRED.

25 (a) DEVELOPMENT.—
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1 (1) IN GENERAL.—The Commissioner of Social

2 Security (hereafter in this section referred to as the

3 ‘‘Commissioner’’) shall in accordance with the provi4 sions of this section develop a prototype of a counter5 feit-resistant social security card. Such prototype card

6 shall—

7 (A) be made of a durable, tamper-resistant

8 material such as plastic or polyester,

9 (B) employ technologies that provide secu10 rity features, such as magnetic stripes,

11 holograms, and integrated circuits, and

12 (C) be developed so as to provide individ13 uals with reliable proof of citizenship or legal

14 resident alien status.

15 (2) ASSISTANCE BY ATTORNEY GENERAL.—The

16 Attorney General of the United States shall provide

17 such information and assistance as the Commissioner

18 deems necessary to achieve the purposes of this sec19 tion.

20 (b) STUDY AND REPORT.—

21 (1) IN GENERAL.—The Commissioner shall con22 duct a study and issue a report to Congress which ex23 amines different methods of improving the social secu24 rity card application process.
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1 (2) ELEMENTS OF STUDY.—The study shall in2 clude an evaluation of the cost and work load impli3 cations of issuing a counterfeit-resistant social secu4 rity card for all individuals over a 3, 5, and 10 year

5 period. The study shall also evaluate the feasibility

6 and cost implications of imposing a user fee for re7 placement cards and cards issued to individuals who

8 apply for such a card prior to the scheduled 3, 5, and

9 10 year phase-in options.

10 (3) DISTRIBUTION OF REPORT.—Copies of the re11 port described in this subsection along with a fac12 simile of the prototype card as described in subsection

13 (a) shall be submitted to the Committees on Ways and

14 Means and Judiciary of the House of Representatives

15 and the Committees on Finance and Judiciary of the

16 Senate within l year of the date of the enactment of

17 this Act.

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

19 authorized to be appropriated and are appropriated from

20 the Federal Old-Age and Survivors Insurance Trust Fund

21 such sums as may be necessary to carry out the purposes

22 of this section.

23 SEC. 106. CONFORMING AMENDMENTS TO THE SOCIAL SE24 CURITY ACT.

25 (a) AMENDMENTS TO TITLE II.—
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1 (1) Section 205(c)(2)(C)(vi) (42 U.S.C.

2 405(c)(2)(C)(vi)), as so redesignated by section

3 321(a)(9)(B) of the Social Security Independence and

4 Program Improvements Act of 1994, is amended—

5 (A) by inserting ‘‘an agency administering

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

7 before ‘‘an agency operating’’; and

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

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

10 (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is

11 amended by inserting ‘‘under a State program funded

12 under’’ before ‘‘part A of title IV’’.

13 (b) AMENDMENT TO PART B OF TITLE IV.—Section

14 422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking

15 ‘‘under the State plan approved’’ and inserting ‘‘under the

16 State program funded.’’.

17 (c) AMENDMENTS TO PART D OF TITLE IV.—

18 (1) Section 451 (42 U.S.C. 651) is amended by

19 striking ‘‘aid’’ and inserting ‘‘assistance under a

20 State program funded’’.

21 (2) Section 452(a)(10)(C) (42 U.S.C.

22 652(a)(10)(C)) is amended—

23 (A) by striking ‘‘aid to families with de24 pendent children’’ and inserting ‘‘assistance

25 under a State program funded under part A’’;
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1 (B) by striking ‘‘such aid’’ and inserting

2 ‘‘such assistance’’; and

3 (C) by striking ‘‘402(a)(26) or’’.

4 (3) Section 452(a)(10)(F) (42 U.S.C.

5 652(a)(10)(F)) is amended—

6 (A) by striking ‘‘aid under a State plan ap7 proved’’ and inserting ‘‘assistance under a State

8 program funded’’; and

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

10 standards referred to in section

11 402(a)(26)(B)(ii)’’ and inserting ‘‘by the State’’.

12 (4) Section 452(b) (42 U.S.C. 652(b)) is amend13 ed in the first sentence by striking ‘‘aid under the

14 State plan approved under part A’’ and inserting

15 ‘‘assistance under a State program funded under part

16 A’’.

17 (5) Section 452(d)(3)(B)(i) (42 U.S.C.

18 652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’

19 and inserting ‘‘1115(b)’’.

20 (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.

21 652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is

22 being paid under the State’s plan approved under

23 part A or E’’ and inserting ‘‘assistance is being pro24 vided under the State program funded under part A
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1 or aid is being paid under the State’s plan approved

2 under part E’’.

3 (7) Section 452(g)(2)(A) (42 U.S.C.

4 652(g)(2)(A)) is amended in the matter following

5 clause (iii) by striking ‘‘aid was being paid under the

6 State’s plan approved under part A or E’’ and insert7 ing ‘‘assistance was being provided under the State

8 program funded under part A or aid was being paid

9 under the State’s plan approved under part E’’.

10 (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

11 amended in the matter following subparagraph (B)—

12 (A) by striking ‘‘who is a dependent child’’

13 and inserting ‘‘with respect to whom assistance

14 is being provided under the State program fund15 ed under part A’’;

16 (B) by inserting ‘‘by the State agency ad17 ministering the State plan approved under this

18 part’’ after ‘‘found’’; and

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

20 and inserting ‘‘with the State in establishing pa21 ternity’’.

22 (9) Section 452(h) (42 U.S.C. 652(h)) is amend23 ed by striking ‘‘under section 402(a)(26)’’.
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1 (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is

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

3 under a State program funded’’.

4 (11) Section 454 (42 U.S.C. 654)) is amended—

5 (A) in paragraph (5)(A)—

6 (i) by striking ‘‘under section

7 402(a)(26)’’; and

8 (ii) by striking ‘‘except that this para9 graph shall not apply to such payments for

10 any month following the first month in

11 which the amount collected is sufficient to

12 make such family ineligible for assistance

13 under the State plan approved under part

14 A;’’; and

15 (B) in paragraph (6)(D), by striking ‘‘aid

16 under a State plan approved’’ and inserting ‘‘as17 sistance under a State program funded’’.

18 (12) Section 456 (42 U.S.C. 656) is amended—

19 (A) in subsection (a)(1), by striking ‘‘under

20 section 402(a)(26)’’; and

21 (B) by striking subsection (b) and inserting

22 the following:

23 ‘‘(b) A debt which is a support obligation enforceable

24 under this title is not released by a discharge in bankruptcy

25 under title 11, United States Code.’’.
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1 (13) Section 466(a)(3)(B) (42 U.S.C.

2 666(a)(3)(B)) is amended by striking ‘‘402(a)(26)

3 or’’.

4 (14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is

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

6 under a State program funded’’.

7 (15) Section 469(a) (42 U.S.C. 669(a)) is

8 amended—

9 (A) by striking ‘‘aid under plans approved’’

10 and inserting ‘‘assistance under State programs

11 funded’’; and

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

13 ‘‘such assistance’’.

14 (d) AMENDMENTS TO PART E OF TITLE IV.—

15 (1) Section 470 (42 U.S.C. 670) is amended—

16 (A) by striking ‘‘would be’’ and inserting

17 ‘‘would have been’’; and

18 (B) by inserting ‘‘(as such plan was in ef19 fect on June 1, 1995)’’ after ‘‘part A’’.

20 (2) Section 471(17) (42 U.S.C. 671(17)) is

21 amended by striking ‘‘plans approved under parts A

22 and D’’ and inserting ‘‘program funded under part A

23 and plan approved under part D’’.

24 (3) Section 472(a) (42 U.S.C. 672(a)) is amend25 ed—
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1 (A) in the matter preceding paragraph

2 (1)—

3 (i) by striking ‘‘would meet’’ and in4 serting ‘‘would have met’’;

5 (ii) by inserting ‘‘(as such sections

6 were in effect on June 1, 1995)’’ after

7 ‘‘407’’; and

8 (iii) by inserting ‘‘(as so in effect)’’

9 after ‘‘406(a)’’; and

10 (B) in paragraph (4)—

11 (i) in subparagraph (A)—

12 (I) by inserting ‘‘would have’’

13 after ‘‘(A)’’; and

14 (II) by inserting ‘‘(as in effect on

15 June 1, 1995)’’ after ‘‘section 402’’;

16 and

17 (ii) in subparagraph (B)(ii), by insert18 ing ‘‘(as in effect on June 1, 1995)’’ after

19 ‘‘406(a)’’.

20 (4) Section 472(h) (42 U.S.C. 672(h)) is amend21 ed to read as follows:

22 ‘‘(h)(1) For purposes of title XIX, any child with re23 spect to whom foster care maintenance payments are made

24 under this section shall be deemed to be a dependent child

25 as defined in section 406 (as in effect as of June 1, 1995)
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1 and shall be deemed to be a recipient of aid to families

2 with dependent children under part A of this title (as so

3 in effect). For purposes of title XX, any child with respect

4 to whom foster care maintenance payments are made under

5 this section shall be deemed to be a minor child in a needy

6 family under a State program funded under part A and

7 shall be deemed to be a recipient of assistance under such

8 part.

9 ‘‘(2) For purposes of paragraph (1), a child whose costs

10 in a foster family home or child care institution are covered

11 by the foster care maintenance payments being made with

12 respect to the child’s minor parent, as provided in section

13 475(4)(B), shall be considered a child with respect to whom

14 foster care maintenance payments are made under this sec15 tion.’’.

16 (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is

17 amended—

18 (A) in subparagraph (A)(i)—

19 (i) by inserting ‘‘(as such sections were

20 in effect on June 1, 1995)’’ after ‘‘407’’;

21 (ii) by inserting ‘‘(as so in effect)’’

22 after ‘‘specified in section 406(a)’’; and

23 (iii) by inserting ‘‘(as such section was

24 in effect on June 1, 1995)’’ after ‘‘403’’;

25 (B) in subparagraph (B)(i)—
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1 (i) by inserting ‘‘would have’’ after

2 ‘‘(B)(i)’’; and

3 (ii) by inserting ‘‘(as in effect on June

4 1, 1995)’’ after ‘‘section 402’’; and

5 (C) in subparagraph (B)(ii)(II), by insert6 ing ‘‘(as in effect on June 1, 1995)’’ after

7 ‘‘406(a)’’.

8 (6) Section 473(b) (42 U.S.C. 673(b)) is amend9 ed to read as follows:

10 ‘‘(b)(1) For purposes of title XIX, any child who is

11 described in paragraph (3) shall be deemed to be a depend12 ent child as defined in section 406 (as in effect as of June

13 1, 1995) and shall be deemed to be a recipient of aid to

14 families with dependent children under part A of this title

15 (as so in effect) in the State where such child resides.

16 ‘‘(2) For purposes of title XX, any child who is de17 scribed in paragraph (3) shall be deemed to be a minor

18 child in a needy family under a State program funded

19 under part A and shall be deemed to be a recipient of assist20 ance under such part.

21 ‘‘(3) A child described in this paragraph is any

22 child—

23 ‘‘(A)(i) who is a child described in subsection

24 (a)(2), and
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1 ‘‘(ii) with respect to whom an adoption assist2 ance agreement is in effect under this section (whether

3 or nor adoption assistance payments are provided

4 under the agreement or are being made under this

5 section), including any such child who has been

6 placed for adoption in accordance with applicable

7 State and local law (whether or not an interlocutory

8 or other judicial decree of adoption has been issued),

9 or

10 ‘‘(B) with respect to whom foster care mainte11 nance payments are being made under section 472.

12 ‘‘(4) For purposes of paragraphs (1) and (2), a child

13 whose costs in a foster family home or child-care institution

14 are covered by the foster care maintenance payments being

15 made with respect to the child’s minor parent, as provided

16 in section 475(4)(B), shall be considered a child with re17 spect to whom foster care maintenance payments are being

18 made under section 472.’’.

19 (e) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42

20 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to families

21 with dependent children under the State plan approved

22 under section 402 of this Act’’ and inserting ‘‘assistance

23 under a State program funded under part A of title IV’’.

24 (f) AMENDMENTS TO TITLE XI.—
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1 (1) Section 1109 (42 U.S.C. 1309) is amended

2 by striking ‘‘or part A of title IV,’’.

3 (2) Section 1115 (42 U.S.C. 1315) is amended—

4 (A) in subsection (a)(2)—

5 (i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

6 (ii) by striking ‘‘403,’’;

7 (iii) by striking the period at the end

8 and inserting ‘‘, and’’; and

9 (iv) by adding at the end the following

10 new subparagraph:

11 ‘‘(B) costs of such project which would not other12 wise be a permissible use of funds under part A of

13 title IV and which are not included as part of the

14 costs of projects under section 1110, shall to the extent

15 and for the period prescribed by the Secretary, be re16 garded as a permissible use of funds under such

17 part.’’; and

18 (B) in subsection (c)(3), by striking ‘‘under

19 the program of aid to families with dependent

20 children’’ and inserting ‘‘part A of such title’’.

21 (3) Section 1116 (42 U.S.C. 1316) is amended—

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

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

24 (B) in subsection (a)(3), by striking ‘‘404,’’.

25 (4) Section 1118 (42 U.S.C. 1318) is amended—
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1 (A) by striking ‘‘403(a),’’;

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

3 and

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

5 American Samoa, mean 75 per centum with re6 spect to part A of title IV’’.

7 (5) Section 1119 (42 U.S.C. 1319) is amended—

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

9 (B) by striking ‘‘403(a),’’.

10 (6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is

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

12 (7) Section 1136 (42 U.S.C. 1320b–6) is re13 pealed.

14 (8) Section 1137 (42 U.S.C. 1320b–7) is amend15 ed—

16 (A) in subsection (b), by striking paragraph

17 (1) and inserting the following:

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

19 title IV of this Act;’’; and

20 (B) in subsection (d)(1)(B)—

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

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

23 inserting ‘‘In this subsection, in’’;
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1 (ii) by redesignating subclauses (I),

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

3 and

4 (iii) by moving such redesignated ma5 terial 2 ems to the left.

6 (9) Section 1108 (42 U.S.C. 1308) is amended—

7 (A) in subsection (a)—

8 (i) in the matter preceding paragraph

9 (1)—

10 (I) by inserting ‘‘(or paid, in the

11 case of part A of title IV)’’ after ‘‘cer12 tified’’; and

13 (II) by striking ‘‘or, in the case

14 of’’ and all that follows through ‘‘sec15 tion 403(k)’’;

16 (ii) in paragraph (1)—

17 (I) in subparagraph (F), by strik18 ing ‘‘or’’;

19 (II) in subparagraph (G), by

20 striking ‘‘the fiscal year 1989 and each

21 fiscal year thereafter;’’ and inserting

22 ‘‘each of the fiscal years 1989 through

23 1995, or’’; and
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1 (III) by inserting after subpara2 graph (G), the following new subpara3 graph:

4 ‘‘(H) $100,039,000 with respect to fiscal

5 year 1996 and each fiscal year thereafter;’’;

6 (iii) in paragraph (2)—

7 (I) in subparagraph (F), by strik8 ing ‘‘or’’;

9 (II) in subparagraph (G), by

10 striking ‘‘the fiscal year 1989 and each

11 fiscal year thereafter;’’ and inserting

12 ‘‘each of the fiscal years 1989 through

13 1995, or’’; and

14 (III) by inserting after subpara15 graph (G), the following new subpara16 graph:

17 ‘‘(H) $3,489,000 with respect to fiscal year

18 1996 and each fiscal year thereafter;’’; and

19 (iv) in paragraph (3)—

20 (I) in subparagraph (F), by strik21 ing ‘‘or’’;

22 (II) in subparagraph (G), by

23 striking ‘‘the fiscal year 1989 and each

24 fiscal year thereafter.’’ and inserting
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1 ‘‘each of the fiscal years 1989 through

2 1995, or’’; and

3 (III) by inserting after subpara4 graph (G), the following new subpara5 graph:

6 ‘‘(H) $4,593,000 with respect to fiscal year

7 1996 and each fiscal year thereafter.’’; and

8 (B) in subsection (d), by striking ‘‘(exclu9 sive of any amounts’’ and all that follows

10 through ‘‘section 403(k) applies)’’.

11 (g) AMENDMENT TO TITLE XIV.—Section 1402(a)(7)

12 (42 U.S.C. 1352(a)(7)) is amended by striking ‘‘aid to fam13 ilies with dependent children under the State plan approved

14 under section 402 of this Act’’ and inserting ‘‘assistance

15 under a State program funded under part A of title IV’’.

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

17 RESPECT TO THE TERRITORIES.—Section 1602(a)(11), as

18 in effect without regard to the amendment made by section

19 301 of the Social Security Amendments of 1972 (42 U.S.C.

20 1382 note), is amended by striking ‘‘aid under the State

21 plan approved’’ and inserting ‘‘assistance under a State

22 program funded’’.

23 (i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

24 RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42
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1 U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)

2 a State program funded under part A of title IV,’’.

3 SEC. 107. CONFORMING AMENDMENTS TO THE FOOD STAMP

4 ACT OF 1977 AND RELATED PROVISIONS.

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

6 2014) is amended—

7 (1) in the second sentence of subsection (a), by

8 striking ‘‘plan approved’’ and all that follows through

9 ‘‘title IV of the Social Security Act’’ and inserting

10 ‘‘program funded under part A of title IV of the So11 cial Security Act (42 U.S.C. 601 et seq.) that the Sec12 retary determines complies with standards established

13 by the Secretary that ensure that the standards under

14 the State program are comparable to or more restric15 tive than those in effect on June 1, 1995’’;

16 (2) in subsection (d)(5)—

17 (A) by striking ‘‘assistance to families with

18 dependent children’’ and inserting ‘‘assistance

19 under a State program funded’’; and

20 (B) by striking paragraph (13) and redesig21 nating paragraphs (14), (15), and (16) as para22 graphs (13), (14), and (15), respectively;

23 (3) in subsection (j), by striking ‘‘plan approved

24 under part A of title IV of such Act (42 U.S.C. 601

25 et seq.)’’ and inserting ‘‘program funded under part
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1 A of title IV of the Act (42 U.S.C. 601 et seq.) that

2 the Secretary determines complies with standards es3 tablished by the Secretary that ensure that the stand4 ards under the State program are comparable to or

5 more restrictive than those in effect on June 1, 1995’’.

6 (b) Section 6 of such Act (7 U.S.C. 2015) is amend7 ed—

8 (1) in subsection (c)(5), by striking ‘‘the State

9 plan approved’’ and inserting ‘‘the State program

10 funded’’;

11 (2) in subsection (e)—

12 (A) by striking ‘‘aid to families with de13 pendent children’’ and inserting ‘‘benefits under

14 a State program funded’’; and

15 (B) by inserting before the semicolon the fol16 lowing: ‘‘that the Secretary determines complies

17 with standards established by the Secretary that

18 ensure that the standards under the State pro19 gram are comparable to or more restrictive than

20 those in effect on June 1, 1995’’; and

21 (3) by adding at the end the following new sub22 section:

23 ‘‘(i) Notwithstanding any other provision of this Act,

24 a household may not receive benefits under this Act as a

25 result of the household’s eligibility under a State program
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1 funded under part A of title IV of the Social Security Act

2 (42 U.S.C. 601 et seq.), unless the Secretary determines that

3 any household with income above 130 percent of the poverty

4 guidelines is not eligible for the program.’’.

5 (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4))

6 is amended by striking ‘‘State plans under the Aid to Fami7 lies with Dependent Children Program under’’ and insert8 ing ‘‘State programs funded under part A of’’.

9 (d) Section 17 of such Act (7 U.S.C. 2026) is amend10 ed—

11 (1) in the first sentence of subsection (b)(1)(A),

12 by striking ‘‘to aid to families with dependent chil13 dren under part A of title IV of the Social Security

14 Act’’ and inserting ‘‘or are receiving assistance under

15 a State program funded under part A of title IV of

16 the Social Security Act (42 U.S.C. 601 et seq.)’’; and

17 (2) in subsection (b)(3), by adding at the end the

18 following new subparagraph:

19 ‘‘(I) The Secretary may not grant a waiver

20 under this paragraph on or after October 1, 1995.

21 Any reference in this paragraph to a provision of title

22 IV of the Social Security Act shall be deemed to be

23 a reference to such provision as in effect on September

24 30, 1995.’’;
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1 (e) Section 20 of such Act (7 U.S.C. 2029) is amend2 ed—

3 (1) in subsection (a)(2)(B) by striking ‘‘operat4 ing—’’ and all that follows through ‘‘(ii) any other’’

5 and inserting ‘‘operating any’’; and

6 (2) in subsection (b)—

7 (A) in paragraph (1)—

8 (i) by striking ‘‘(b)(1) A household’’

9 and inserting ‘‘(b) A household’’; and

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

11 ‘‘training program’’ and inserting ‘‘activ12 ity’’;

13 (B) by striking paragraph (2); and

14 (C) by redesignating subparagraphs (A)

15 through (F) as paragraphs (1) through (6), re16 spectively.

17 (f) Section 5(h)(1) of the Agriculture and Consumer

18 Protection Act of 1973 (Public Law 93–186; 7 U.S.C. 612c

19 note) is amended by striking ‘‘the program for aid to fami20 lies with dependent children’’ and inserting ‘‘the State pro21 gram funded’’.

22 (g) Section 9 of the National School Lunch Act (42

23 U.S.C. 1758) is amended—

24 (1) in subsection (b)—

25 (A) in paragraph (2)(C)(ii)(II)—
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1 (i) by striking ‘‘program for aid to

2 families with dependent children’’ and in3 serting ‘‘State program funded’’; and

4 (ii) by inserting before the period at

5 the end the following: ‘‘that the Secretary

6 determines complies with standards estab7 lished by the Secretary that ensure that the

8 standards under the State program are

9 comparable to or more restrictive than those

10 in effect on June 1, 1995’’; and

11 (B) in paragraph (6)—

12 (i) in subparagraph (A)(ii)—

13 (I) by striking ‘‘an AFDC assist14 ance unit (under the aid to families

15 with dependent children program au16 thorized’’ and inserting ‘‘a family

17 (under the State program funded’’; and

18 (II) by striking ‘‘, in a State’’

19 and all that follows through

20 ‘‘9902(2)))’’ and inserting ‘‘that the

21 Secretary determines complies with

22 standards established by the Secretary

23 that ensure that the standards under

24 the State program are comparable to
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1 or more restrictive than those in effect

2 on June 1, 1995’’; and

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

4 ‘‘aid to families with dependent children’’

5 and inserting ‘‘assistance under the State

6 program funded under part A of title IV of

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

8 seq.) that the Secretary determines complies

9 with standards established by the Secretary

10 that ensure that the standards under the

11 State program are comparable to or more

12 restrictive than those in effect on June 1,

13 1995’’; and

14 (2) in subsection (d)(2)(C)—

15 (A) by striking ‘‘program for aid to families

16 with dependent children’’ and inserting ‘‘State

17 program funded’’; and

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

19 the following: ‘‘that the Secretary determines

20 complies with standards established by the Sec21 retary that ensure that the standards under the

22 State program are comparable to or more re23 strictive than those in effect on June 1, 1995’’.

24 (h) Section 17 of the Child Nutrition Act of 1966 (42

25 U.S.C. 1786) is amended—
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1 (1) in subsection (d)(2)(A)(ii)(II)—

2 (A) by striking ‘‘program for aid to families

3 with dependent children established’’ and insert4 ing ‘‘State program funded’’; and

5 (B) by inserting before the semicolon the fol6 lowing: ‘‘that the Secretary determines complies

7 with standards established by the Secretary that

8 ensure that the standards under the State pro9 gram are comparable to or more restrictive than

10 those in effect on June 1, 1995’’;

11 (2) in subsection (e)(4)(A), by striking ‘‘program

12 for aid to families with dependent children’’ and in13 serting ‘‘State program funded’’; and

14 (3) in subsection (f)(1)(C)(iii), by striking ‘‘aid

15 to families with dependent children,’’ and inserting

16 ‘‘State program funded under part A of title IV of the

17 Social Security Act (42 U.S.C. 601 et seq.) and with

18 the’’.

19 SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.

20 (a) Subsection (b) of section 508 of the Unemployment

21 Compensation Amendments of 1976 (Public Law 94–566;

22 90 Stat. 2689) is amended to read as follows:

23 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX24 PENSES.—For purposes of section 455 of the Social Security
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1 Act, expenses incurred to reimburse State employment of2 fices for furnishing information requested of such offices—

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

4 3(a) of the Act entitled ‘An Act to provide for the es5 tablishment of a national employment system and for

6 cooperation with the States in the promotion of such

7 system, and for other purposes’, approved June 6,

8 1933 (29 U.S.C. 49b(a)), or

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

10 duty of carrying a State plan for child support ap11 proved under part D of title IV of the Social Security

12 Act,

13 shall be considered to constitute expenses incurred in the

14 administration of such State plan.’’.

15 (b) Section 9121 of the Omnibus Budget Reconcili16 ation Act of 1987 (42 U.S.C. 602 note) is repealed.

17 (c) Section 9122 of the Omnibus Budget Reconciliation

18 Act of 1987 (42 U.S.C. 602 note) is repealed.

19 (d) Section 221 of the Housing and Urban-Rural Re20 covery Act of 1983 (42 U.S.C. 602 note), relating to treat21 ment under AFDC of certain rental payments for federally

22 assisted housing, is repealed.

23 (e) Section 159 of the Tax Equity and Fiscal Respon24 sibility Act of 1982 (42 U.S.C. 602 note) is repealed.
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1 (f) Section 202(d) of the Social Security Amendments

2 of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

3 (g) Section 903 of the Stewart B. McKinney Homeless

4 Assistance Amendments Act of 1988 (42 U.S.C. 11381 note),

5 relating to demonstration projects to reduce number of

6 AFDC families in welfare hotels, is amended—

7 (1) in subsection (a), by striking ‘‘aid to families

8 with dependent children under a State plan ap9 proved’’ and inserting ‘‘assistance under a State pro10 gram funded’’; and

11 (2) in subsection (c), by striking ‘‘aid to families

12 with dependent children in the State under a State

13 plan approved’’ and inserting ‘‘assistance in the State

14 under a State program funded’’.

15 (h) The Higher Education Act of 1965 (20 U.S.C. 1001

16 et seq.) is amended—

17 (1) in section 404C(c)(3) (20 U.S.C. 1070a–

18 23(c)(3)), by striking ‘‘(Aid to Families with Depend19 ent Children)’’; and

20 (2) in section 480(b)(2) (20 U.S.C.

21 1087vv(b)(2)), by striking ‘‘aid to families with de22 pendent children under a State plan approved’’ and

23 inserting ‘‘assistance under a State program funded’’.
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1 (i) The Carl D. Perkins Vocational and Applied Tech2 nology Education Act (20 U.S.C. 2301 et seq.) is amend3 ed—

4 (1) in section 231(d)(3)(A)(ii) (20 U.S.C.

5 2341(d)(3)(A)(ii)), by striking ‘‘the program for aid

6 to dependent children’’ and inserting ‘‘the State pro7 gram funded’’;

8 (2) in section 232(b)(2)(B) (20 U.S.C.

9 2341a(b)(2)(B)), by striking ‘‘the program for aid to

10 families with dependent children’’ and inserting ‘‘the

11 State program funded’’; and

12 (3) in section 521(14)(B)(iii) (20 U.S.C.

13 2471(14)(B)(iii)), by striking ‘‘the program for aid to

14 families with dependent children’’ and inserting ‘‘the

15 State program funded’’.

16 (j) The Elementary and Secondary Education Act of

17 1965 (20 U.S.C. 2701 et seq.) is amended—

18 (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)),

19 by striking ‘‘Aid to Families with Dependent Chil20 dren Program’’ and inserting ‘‘State program funded

21 under part A of title IV of the Social Security Act’’;

22 (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)),

23 by striking ‘‘the program of aid to families with de24 pendent children under a State plan approved under’’
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1 and inserting ‘‘a State program funded under part A

2 of’’; and

3 (3) in section 5203(b)(2) (20 U.S.C.

4 7233(b)(2))—

5 (A) in subparagraph (A)(xi), by striking

6 ‘‘Aid to Families with Dependent Children bene7 fits’’ and inserting ‘‘assistance under a State

8 program funded under part A of title IV of the

9 Social Security Act’’; and

10 (B) in subparagraph (B)(viii), by striking

11 ‘‘Aid to Families with Dependent Children’’ and

12 inserting ‘‘assistance under the State program

13 funded under part A of title IV of the Social Se14 curity Act’’.

15 (k) Chapter VII of title I of Public Law 99–88 (25

16 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided fur17 ther, That general assistance payments made by the Bureau

18 of Indian Affairs shall be made—

19 ‘‘(1) after April 29, 1985, and before October 1,

20 1995, on the basis of Aid to Families with Dependent

21 Children (AFDC) standards of need; and

22 ‘‘(2) on and after October 1, 1995, on the basis

23 of standards of need established under the State pro24 gram funded under part A of title IV of the Social

25 Security Act,
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1 except that where a State ratably reduces its AFDC or State

2 program payments, the Bureau shall reduce general assist3 ance payments in such State by the same percentage as the

4 State has reduced the AFDC or State program payment.’’.

5 (l) The Internal Revenue Code of 1986 (26 U.S.C. 1

6 et seq.) is amended—

7 (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by

8 striking all that follows ‘‘agency as’’ and inserting

9 ‘‘being eligible for financial assistance under part A

10 of title IV of the Social Security Act and as having

11 continually received such financial assistance during

12 the 90-day period which immediately precedes the

13 date on which such individual is hired by the em14 ployer.’’;

15 (2) in section 3304(a)(16) (26 U.S.C.

16 3304(a)(16)), by striking ‘‘eligibility for aid or serv17 ices,’’ and all that follows through ‘‘children ap18 proved’’ and inserting ‘‘eligibility for assistance, or

19 the amount of such assistance, under a State program

20 funded’’;

21 (3) in section 6103(l)(7)(D)(i) (26 U.S.C.

22 6103(l)(7)(D)(i)), by striking ‘‘aid to families with

23 dependent children provided under a State plan ap24 proved’’ and inserting ‘‘a State program funded’’;
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1 (4) in section 6334(a)(11)(A) (26 U.S.C.

2 6334(a)(11)(A)), by striking ‘‘(relating to aid to fam3 ilies with dependent children)’’; and

4 (5) in section 7523(b)(3)(C) (26 U.S.C.

5 7523(b)(3)(C)), by striking ‘‘aid to families with de6 pendent children’’ and inserting ‘‘assistance under a

7 State program funded under part A of title IV of the

8 Social Security Act’’.

9 (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C.

10 49b(b)) is amended by striking ‘‘State plan approved under

11 part A of title IV’’ and inserting ‘‘State program funded

12 under part A of title IV’’.

13 (n) The Job Training Partnership Act (29 U.S.C. 1501

14 et seq.) is amended—

15 (1) in section 4(29)(A)(i) (29 U.S.C.

16 1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et seq.)’’;

17 (2) in section 106(b)(6)(C) (29 U.S.C.

18 1516(b)(6)(C)), by striking ‘‘State aid to families

19 with dependent children records,’’ and inserting

20 ‘‘records collected under the State program funded

21 under part A of title IV of the Social Security Act,’’;

22 (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—

23 (A) by striking ‘‘the JOBS program’’ and

24 inserting ‘‘the work activities required under

25 title IV of the Social Security Act’’; and
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1 (B) by striking the second sentence;

2 (4) in section 123(c) (29 U.S.C. 1533(c))—

3 (A) in paragraph (1)(E), by repealing

4 clause (vi); and

5 (B) in paragraph (2)(D), by repealing

6 clause (v);

7 (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)),

8 by striking ‘‘, including recipients under the JOBS

9 program’’;

10 (6) in subparagraphs (A) and (B) of section

11 204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by

12 striking ‘‘(such as the JOBS program)’’ each place it

13 appears;

14 (7) in section 205(a) (29 U.S.C. 1605(a)), by

15 striking paragraph (4) and inserting the following:

16 ‘‘(4) the portions of title IV of the Social Secu17 rity Act relating to work activities;’’;

18 (8) in section 253 (29 U.S.C. 1632)—

19 (A) in subsection (b)(2), by repealing sub20 paragraph (C); and

21 (B) in paragraphs (1)(B) and (2)(B) of

22 subsection (c), by striking ‘‘the JOBS program

23 or’’ each place it appears;

24 (9) in section 264 (29 U.S.C. 1644)—
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1 (A) in subparagraphs (A) and (B) of sub2 section (b)(1), by striking ‘‘(such as the JOBS

3 program)’’ each place it appears; and

4 (B) in subparagraphs (A) and (B) of sub5 section (d)(3), by striking ‘‘and the JOBS pro6 gram’’ each place it appears;

7 (10) in section 265(b) (29 U.S.C. 1645(b)), by

8 striking paragraph (6) and inserting the following:

9 ‘‘(6) the portion of title IV of the Social Security

10 Act relating to work activities;’’;

11 (11) in the second sentence of section 429(e) (29

12 U.S.C. 1699(e)), by striking ‘‘and shall be in an

13 amount that does not exceed the maximum amount

14 that may be provided by the State pursuant to section

15 402(g)(1)(C) of the Social Security Act (42 U.S.C.

16 602(g)(1)(C))’’;

17 (12) in section 454(c) (29 U.S.C. 1734(c)), by

18 striking ‘‘JOBS and’’;

19 (13) in section 455(b) (29 U.S.C. 1735(b)), by

20 striking ‘‘the JOBS program,’’;

21 (14) in section 501(1) (29 U.S.C. 1791(1)), by

22 striking ‘‘aid to families with dependent children

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

24 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance under
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1 the State program funded under part A of title IV of

2 the Social Security Act’’;

3 (15) in section 506(1)(A) (29 U.S.C.

4 1791e(1)(A)), by striking ‘‘aid to families with de5 pendent children’’ and inserting ‘‘assistance under the

6 State program funded’’;

7 (16) in section 508(a)(2)(A) (29 U.S.C.

8 1791g(a)(2)(A)), by striking ‘‘aid to families with de9 pendent children’’ and inserting ‘‘assistance under the

10 State program funded’’; and

11 (17) in section 701(b)(2)(A) (29 U.S.C.

12 1792(b)(2)(A))—

13 (A) in clause (v), by striking the semicolon

14 and inserting ‘‘; and’’; and

15 (B) by striking clause (vi).

16 (o) Section 3803(c)(2)(C)(iv) of title 31, United States

17 Code, is amended to read as follows:

18 ‘‘(iv) assistance under a State program

19 funded under part A of title IV of the Social

20 Security Act’’.

21 (p) Section 2605(b)(2)(A)(i) of the Low-Income Home

22 Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i))

23 is amended to read as follows:
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1 ‘‘(i) assistance under the State pro2 gram funded under part A of title IV of the

3 Social Security Act;’’.

4 (q) Section 303(f)(2) of the Family Support Act of

5 1988 (42 U.S.C. 602 note) is amended—

6 (1) by striking ‘‘(A)’’; and

7 (2) by striking subparagraphs (B) and (C).

8 (r) The Balanced Budget and Emergency Deficit Con9 trol Act of 1985 (2 U.S.C. 900 et seq.)) is amended—

10 (1) in section 255(h) (2 U.S.C. 905(h), by strik11 ing ‘‘Aid to families with dependent children (75–

12 0412–0–1–609);’’ and inserting ‘‘Block grants to

13 States for temporary assistance for needy families;’’;

14 and

15 (2) in section 256 (2 U.S.C. 906)—

16 (A) by striking subsection (k); and

17 (B) by redesignating subsection (l) as sub18 section (k).

19 (s) The Immigration and Nationality Act (8 U.S.C.

20 1101 et seq.) is amended—

21 (1) in section 210(f) (8 U.S.C. 1160(f)), by strik22 ing ‘‘aid under a State plan approved under’’ each

23 place it appears and inserting ‘‘assistance under a

24 State program funded under’’;

25 (2) in section 245A(h) (8 U.S.C. 1255a(h))—
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1 (A) in paragraph (1)(A)(i), by striking

2 ‘‘program of aid to families with dependent chil3 dren’’ and inserting ‘‘State program of assist4 ance’’; and

5 (B) in paragraph (2)(B), by striking ‘‘aid

6 to families with dependent children’’ and insert7 ing ‘‘assistance under a State program funded

8 under part A of title IV of the Social Security

9 Act’’; and

10 (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by

11 striking ‘‘State plan approved’’ and inserting ‘‘State

12 program funded’’.

13 (t) Section 640(a)(4)(B)(i) of the Head Start Act (42

14 U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘program

15 of aid to families with dependent children under a State

16 plan approved’’ and inserting ‘‘State program of assistance

17 funded’’.

18 (u) Section 9 of the Act of April 19, 1950 (64 Stat.

19 47, chapter 92; 25 U.S.C. 639) is repealed.

20 (v) Subparagraph (E) of section 213(d)(6) of the

21 School-To-Work Opportunities Act of 1994 (20 U.S.C.

22 6143(d)(6)) is amended to read as follows:

23 ‘‘(E) part A of title IV of the Social Secu24 rity Act (42 U.S.C. 601 et seq.) relating to work

25 activities;’’.
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1 SEC. 109. STUDY OF EFFECT OF WELFARE REFORM ON

2 GRANDPARENTS AS PRIMARY CAREGIVERS.

3 (a) IN GENERAL.—The Secretary of Health and

4 Human Services (hereafter in this section referred to as the

5 ‘‘Secretary’’) shall conduct a study evaluating the impact

6 of amendments made by this Act on grandparents who have

7 assumed the responsibility of providing care to their grand8 children. In such study, the Secretary shall identify barriers

9 to participation in public programs including inconsistent

10 policies, standards, and definitions used by programs and

11 agencies in the administration of medicaid, assistance

12 under a State program funded under part A of title IV of

13 the Social Security Act, child support enforcement, and fos14 ter care programs on grandparents who have assumed the

15 care-giving role for children whose natural parents are un16 able to provide care.

17 (b) REPORT.—Not later than December 31, 1997, the

18 Secretary shall submit a report setting forth the findings

19 of the study described in subsection (a) to the Committee

20 on Ways and Means and the Committee on Economic and

21 Educational Opportunities of the House of Representatives

22 and the Committee on Finance, the Committee on Labor

23 and Human Resources, and the Special Committee on

24 Aging of the Senate. The report shall include such rec25 ommendations for administrative or legislative changes as

26 the Secretary considers appropriate.
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1 SEC. 110. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

2 (a) IN GENERAL.—Whenever an organization that ac3 cepts Federal funds under this Act or the amendments made

4 by this Act makes any communication that in any way

5 intends to promote public support or opposition to any pol6 icy of a Federal, State, or local government through any

7 broadcasting station, newspaper, magazine, outdoor adver8 tising facility, direct mailing, or any other type of general

9 public advertising, such communication shall state the fol10 lowing: ‘‘This was prepared and paid for by an organiza11 tion that accepts taxpayer dollars.’’.

12 (b) FAILURE TO COMPLY.—If an organization makes

13 any communication described in subsection (a) and fails

14 to provide the statement required by that subsection, such

15 organization shall be ineligible to receive Federal funds

16 under this Act or the amendments made by this Act.

17 (c) DEFINITION.—For purposes of this section, the

18 term ‘‘organization’’ means an organization described in

19 section 501(c) of the Internal Revenue Code of 1986.

20 (d) EFFECTIVE DATES.—This section shall take ef21 fect—

22 (1) with respect to printed communications 1

23 year after the date of enactment of this Act; and

24 (2) with respect to any other communication on

25 the date of enactment of this Act.
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1 SEC. 110A. MODIFICATIONS TO THE JOB OPPORTUNITIES

2 FOR CERTAIN LOW-INCOME INDIVIDUALS

3 PROGRAM.

4 Section 505 of the Family Support Act of 1988 (42

5 U.S.C. 1315 note) is amended—

6 (1) in the heading, by striking ‘‘DEMONSTRA7 TION’’;

8 (2) by striking ‘‘demonstration’’ each place it

9 appears;

10 (3) in subsection (a), by striking ‘‘in each of fis11 cal years’’ and all that follows through ‘‘10’’ and in12 serting ‘‘shall enter into agreements with’’;

13 (4) in subsection (b)(3), by striking ‘‘aid to fam14 ilies with dependent children under part A of title IV

15 of the Social Security Act’’ and inserting ‘‘assistance

16 under the State program funded part A of title IV of

17 the Social Security Act in the State in which the in18 dividual resides’’;

19 (5) in subsection (c)—

20 (A) in paragraph (1)(C), by striking ‘‘aid

21 to families with dependent children under part A

22 of title IV of the Social Security Act’’ and insert23 ing ‘‘assistance under the State program funded

24 part A of title IV of the Social Security Act’’;

25 (B) in paragraph (2), by striking ‘‘aid to

26 families with dependent children under title IV
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1 of such Act’’ and inserting ‘‘assistance under the

2 State program funded part A of title IV of the

3 Social Security Act’’;

4 (6) in subsection (d), by striking ‘‘job opportuni5 ties and basic skills training program (as provided

6 for under title IV of the Social Security Act’’ and in7 serting ‘‘the State program funded under part A of

8 title IV of the Social Security Act’’; and

9 (7) by striking subsections (e) through (g) and

10 inserting the following:

11 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the

12 purpose of conducting projects under this section, there is

13 authorized to be appropriated an amount not to exceed

14 $25,000,000 for any fiscal year.’’.

15 SEC. 110B. DEMONSTRATION PROJECTS FOR SCHOOL UTI16 LIZATION.

17 (a) FINDINGS.—It is the goal of the United States that

18 children grow to be self-sufficient citizens, that parents

19 equip themselves to provide the best parental care and guid20 ance to their children, and that welfare dependency, crime,

21 and the deterioration of neighborhoods be eliminated. It will

22 contribute to these goals to increase the level of parents’ in23 volvement in their children’s school and other activities, to

24 increase the amount of time parents spend with or in close

25 proximity to their children, to increase the portion of the
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1 day and night when children are in a safe and healthy envi2 ronment and not exposed to unfavorable influences, to in3 crease the opportunities for children to participate in safe,

4 healthy, and enjoyable extra-curricular and organized de5 velopmental and recreational activities, and to make more

6 accessible the opportunities for parents, especially those de7 pendent on public assistance, to increase and enhance their

8 parenting and living skills. All of these contributions can

9 be facilitated by establishing the neighborhood public school

10 as a focal point for such activities and by extending the

11 hours of the day in which its facilities are available for

12 such activities.

13 (b) GRANTS.—The Secretary of Education (hereafter

14 in this section referred to as the ‘‘Secretary’’) shall make

15 demonstration grants as provided in subsection (c) to States

16 to enable them to increase the number of hours during each

17 day when existing public school facilities are available for

18 use for the purposes set forth in subsection (d).

19 (c) SELECTION OF STATES.—The Secretary shall make

20 grants to not more than 5 States for demonstration projects

21 in accordance with this section. Each State shall select the

22 number and location of schools based on the amount of

23 funds it deems necessary for a school properly to achieve

24 the goals of this program. The schools selected must have

25 a significant percentage of students receiving benefits under
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1 part A of title IV of the Social Security Act. No more than

2 2 percent of the grant to any State shall be used for admin3 istrative expenses of any kind by any entity (except that

4 none of the activities set forth in paragraphs (1) and (2)

5 of subsection (d) shall be considered an administrative ac6 tivity the expenses for which are limited by this subsection).

7 (d) USE OF FUNDS.—The grants made under sub8 section (b), in order that school facilities can be more fully

9 utilized, shall be used to provide funding for, among other

10 things—

11 (1) extending the length of the school day, ex12 panding the scope of student programs offered before

13 and after pre-existing school hours, enabling volun14 teers and parents or professionals paid from other

15 sources to teach, tutor, coach, organize, advise, or

16 monitor students before and after pre-existing school

17 hours, and providing security, supplies, utilities, and

18 janitorial services before and after pre-existing school

19 hours for these programs,

20 (2) making the school facilities available for

21 community and neighborhood clubs, civic associations

22 and organizations, Boy and Girl Scouts and similar

23 organizations, adult education classes, organized

24 sports, parental education classes, and other edu25 cational, recreational, and social activities.
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1 None of the funds provided under this section can be used

2 to supplant funds already provided to a school facility for

3 services, equipment, personnel, or utilities nor can funds

4 be used to pay costs associated with operating school facili5 ties during hours those facilities are already available for

6 student or community use.

7 (e) APPLICATIONS.—

8 (1) IN GENERAL.—The Governor of each State

9 desiring to conduct a demonstration project under

10 this section shall prepare and submit to the Secretary

11 an application in such manner and containing such

12 information as the Secretary may require. The Sec13 retary shall actively encourage States to submit such

14 applications.

15 (2) APPROVAL.—The Secretary shall consider all

16 applications received from States desiring to conduct

17 demonstration projects under this section and shall

18 approve such applications in a number of States to

19 be determined by the Secretary (not to exceed 5), tak20 ing into account the overall funding levels available

21 under this section.

22 (f) DURATION.—A demonstration project under this

23 section shall be conducted for not more than 4 years plus

24 an additional time period of up to 12 months for final eval25 uation and reporting. The Secretary may terminate a
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1 project if the Secretary determines that the State conducting

2 the project is not in substantial compliance with the terms

3 of the application approved by the Secretary under this sec4 tion.

5 (g) EVALUATION PLAN.—

6 (1) STANDARDS.—Not later than 3 months after

7 the date of the enactment of this section, the Secretary

8 shall develop standards for evaluating the effectiveness

9 of each demonstration project in contributing toward

10 meeting the objectives set forth in subsection (a),

11 which shall include the requirement that an inde12 pendent expert entity selected by the Secretary pro13 vide an evaluation of all demonstration projects,

14 which evaluations shall be included in the appro15 priate State’s annual and final reports to the Sec16 retary under subsection (h)(1).

17 (2) SUBMISSION OF PLAN.—Each State conduct18 ing a demonstration project under this section shall

19 submit an evaluation plan (meeting the standards de20 veloped by the Secretary under paragraph (1)) to the

21 Secretary not later than 90 days after the State is no22 tified of the Secretary’s approval for such project. A

23 State shall not receive any Federal funds for the oper24 ation of the demonstration project until the Secretary

25 approves such evaluation plan.
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1 (h) REPORTS.—

2 (1) STATE.—A State that conducts a demonstra3 tion project under this section shall prepare and sub4 mit to the Secretary annual and final reports in ac5 cordance with the State’s evaluation plan under sub6 section (g)(2) for such demonstration project.

7 (2) SECRETARY.—The Secretary shall prepare

8 and submit to the Congress annual reports concerning

9 each demonstration project under this Act.

10 (i) AUTHORIZATIONS.—

11 (1) GRANTS.—There are authorized to be appro12 priated for grants under subsection (b) for each of fis13 cal years 1996, 1997, 1998, 1999, and 2000,

14 $10,000,000.

15 (2) ADMINISTRATION.—There are authorized to

16 be appropriated $1,000,000 for each of fiscal years

17 1996, 1997, 1998, 1999, and 2000 for the administra18 tion of this section by the Secretary, including devel19 opment of standards and evaluation of all demonstra20 tion projects by an independent expert entity under

21 subsection (g)(1).

22 SEC. 110C. CORRECTIVE COMPLIANCE PLAN.

23 (a) IN GENERAL.—

24 (1) NOTIFICATION OF VIOLATION.—Notwith25 standing any other provision of law, the Federal Gov-
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1 ernment shall, prior to assessing a penalty against a

2 State under any program established or modified

3 under this Act, notify the State of the violation of law

4 for which such penalty would be assessed and allow

5 the State the opportunity to enter into a corrective

6 compliance plan in accordance with this section

7 which outlines how the State will correct any viola8 tions for which such penalty would be assessed and

9 how the State will insure continuing compliance with

10 the requirements of such program.

11 (2) 60-DAY PERIOD TO PROPOSE A CORRECTIVE

12 COMPLIANCE PLAN.—Any State notified under para13 graph (1) shall have 60 days in which to submit to

14 the Federal Government a corrective compliance plan

15 to correct any violations described in such paragraph.

16 (3) ACCEPTANCE OF PLAN.—The Federal Govern17 ment shall have 60 days to accept or reject the State’s

18 corrective compliance plan and may consult with the

19 State during this period to modify the plan. If the

20 Federal Government does not accept or reject the cor21 rective compliance plan during the period, the correc22 tive compliance plan shall be deemed to be accepted.

23 (b) FAILURE TO CORRECT.—If a corrective compliance

24 plan is accepted by the Federal Government, no penalty

25 shall be imposed with respect to a violation described in
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1 subsection (a) if the State corrects the violation pursuant

2 to the plan. If a State has not corrected the violation in

3 a timely manner under the plan, some or all of the penalty

4 shall be assessed.

5 SEC. 110D. PARENTAL RESPONSIBILITY CONTRACTS.

6 (a) ASSESSMENT.—Notwithstanding any other provision

7 of, or amendment made by, this title, each State to which

8 a grant is made under section 403 of the Social Security

9 Act shall provide that the State agency, through a case

10 manager, shall make an initial assessment of the education

11 level, parenting skills, and history of parenting activities

12 and involvement of each parent who is applying for finan13 cial assistance under the plan.

14 (b) PARENTAL RESPONSIBILITY CONTRACTS.—On the

15 basis of the assessment made under subsection (a) with re16 spect to each parent applicant, the case manager, in con17 sultation with the parent applicant (hereafter in this sub18 section referred to as the ‘‘client’’) and, if possible, the cli19 ent’s spouse if one is present, shall develop a parental re20 sponsibility contract for the client, which meets the follow21 ing requirements:

22 (1) Sets forth the obligations of the client, including

23 all of the following the case manager believes are

24 within the ability and capacity of the client, are not

25 incompatible with the employment or school activities
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1 of the client, and are not inconsistent with each other

2 in the client’s case or with the well being of the cli3 ent’s children:

4 (A) Attend school, if necessary, and maintain

5 certain grades and attendance.

6 (B) Keep school-age children of the client in

7 school.

8 (C) Immunize children of the client.

9 (D) Attend parenting and money management

10 classes.

11 (E) Participate in parent and teacher associa12 tions and other activities intended to involve

13 parents in their children’s school activities and

14 in the affairs of their children’s school.

15 (F) Attend school activities with their children

16 where attendance or participation by both chil17 dren and parents is appropriate.

18 (G) Undergo appropriate substance abuse

19 treatment counseling.

20 (H) Any other appropriate activity, at the op21 tion of the State.

22 (2) Provides that the client shall accept any bona

23 fide offer of unsubsidized full-time employment, unless

24 the client has good cause for not doing so.
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1 (c) PENALTIES FOR NONCOMPLIANCE WITH PARENTAL

2 RESPONSIBILITY CONTRACT.—

3 (1) IN GENERAL.—Except as provided in para4 graph (2), the following penalties shall apply:

5 (A) PROGRESSIVE REDUCTIONS IN ASSISTANCE

6 FOR 1ST AND 2ND ACTS OF NON-COMPLIANCE.—

7 The State plan shall provide that the amount of

8 assistance otherwise payable under this part to a

9 family that includes a client who, with respect to

10 a parental responsibility contract signed by the

11 client, commits an act of noncompliance without

12 good cause, shall be reduced by—

13 (i) 33 percent for the 1st such act of non14 compliance; or

15 (ii) 66 percent for the 2nd such act of

16 noncompliance.

17 (B) DENIAL OF ASSISTANCE FOR 3RD AND

18 SUBSEQUENT ACTS OF NONCOMPLIANCE.—The

19 State shall provide that in the case of the 3rd or

20 subsequent such act of noncompliance, the family

21 of which the client is a member shall not there22 after be eligible for assistance under this part.

23 (C) LENGTH OF PENALTIES.—The penalty for

24 an act of noncompliance shall not exceed the

25 greater of—
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1 (i) in the case of—

2 (I) the 1st act of noncompliance, 1

3 month,

4 (II) the 2nd act of noncompliance, 3

5 months, or

6 (III) the 3rd or subsequent act of

7 noncompliance, 6 months; or

8 (ii) the period ending with the cessation

9 of such act of noncompliance.

10 (D) DENIAL OF ASSISTANCE TO ADULTS RE11 FUSING TO ACCEPT A BONA FIDE OFFER OF EM12 PLOYMENT.—The State plan shall provide that if

13 an unemployed individual who has attained 18

14 years of age refuses to accept a bona fide offer of

15 employment without good cause, such act of non16 compliance shall be considered a 3rd or subse17 quent act of noncompliance.

18 (2) STATE FLEXIBILITY.—The State plan may pro19 vide for different penalties than those specified in

20 paragraph (1).

21 SEC. 110E. CORRECTIVE ACTION PLAN.

22 (a) IN GENERAL.—

23 (1) NOTIFICATION OF VIOLATION.—Notwith24 standing any other provision of law, the Federal Gov25 ernment shall, prior to assessing a penalty against a
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1 State under any program established or modified

2 under this Act, notify the State of the violation of law

3 for which such penalty would be assessed and allow

4 the State the opportunity to enter into a corrective

5 action plan in accordance with this section.

6 (2) 60-DAY PERIOD TO PROPOSE A CORRECTIVE

7 ACTION PLAN.—Any State notified under paragraph

8 (1) shall have 60 days in which to submit to the Fed9 eral Government a corrective action plan to correct

10 any violations described in such paragraph.

11 (3) ACCEPTANCE OF PLAN.—The Federal Govern12 ment shall have 60 days to accept or reject the State’s

13 corrective action plan and may consult with the State

14 during this period to modify the plan. If the Federal

15 Government does not accept or reject the corrective ac16 tion plan during the period, the corrective action

17 plan shall be deemed to be accepted.

18 (b) 90-DAY GRACE PERIOD.—If a corrective action

19 plan is accepted by the Federal Govenment, no penalty shall

20 be imposed with respect to a violation described in sub21 section (a) if the State corrects the violation pursuant to

22 the plan within 90 days after the date on which the plan

23 is accepted (or within such other period specified in the

24 plan).
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1 SEC. 111. SECRETARIAL SUBMISSION OF LEGISLATIVE PRO2 POSAL FOR TECHNICAL AND CONFORMING

3 AMENDMENTS.

4 Not later than 90 days after the date of the enactment

5 of this Act, the Secretary of Health and Human Services,

6 in consultation, as appropriate, with the heads of other Fed7 eral agencies, shall submit to the appropriate committees

8 of Congress a legislative proposal providing for such tech9 nical and conforming amendments in the law as are re10 quired by the provisions of this Act.

11 SEC. 112. EFFECTIVE DATE; TRANSITION RULE.

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

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

14 shall take effect on October 1, 1995.

15 (b) TRANSITION RULE.—

16 (1) STATE OPTION TO CONTINUE AFDC PRO17 GRAM.—

18 (A) 9-MONTH EXTENSION.—A State may

19 continue a State program under parts A and F

20 of title IV of the Social Security Act, as in effect

21 on September 30, 1995 (for purposes of this

22 paragraph, the ‘‘State AFDC program’’) until

23 June 30, 1996.

24 (B) REDUCTION OF FISCAL YEAR 1996

25 GRANT.—In the case of any State opting to con26 tinue the State AFDC program pursuant to sub-
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1 paragraph (A), the State family assistance grant

2 paid to such State under section 403(a) of the

3 Social Security Act (as added by section 101

4 and as in effect on and after October 1, 1995) for

5 fiscal year 1996 (after the termination of the

6 State AFDC program) shall be reduced by an

7 amount equal to the total Federal payment to

8 such State under section 403 of the Social Secu9 rity Act (as in effect on September 30, 1995) for

10 such fiscal year.

11 (2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The

12 amendments made by this title shall not apply with

13 respect to—

14 (A) powers, duties, functions, rights, claims,

15 penalties, or obligations applicable to aid, assist16 ance, or services provided before the effective date

17 of this title under the provisions amended; and

18 (B) administrative actions and proceedings

19 commenced before such date, or authorized before

20 such date to be commenced, under such provi21 sions.

22 (3) CLOSING OUT ACCOUNT FOR THOSE PRO23 GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED BY

24 THIS TITLE.—In closing out accounts, Federal and

25 State officials may use scientifically acceptable statis-
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1 tical sampling techniques. Claims made under pro2 grams which are repealed or substantially amended

3 in this title and which involve State expenditures in

4 cases where assistance or services were provided dur5 ing a prior fiscal year, shall be treated as expendi6 tures during fiscal year 1995 for purposes of reim7 bursement even if payment was made by a State on

8 or after October 1, 1995. States shall complete the fil9 ing of all claims no later than September 30, 1997.

10 Federal department heads shall—

11 (A) use the single audit procedure to review

12 and resolve any claims in connection with the

13 close out of programs, and

14 (B) reimburse States for any payments

15 made for assistance or services provided during

16 a prior fiscal year from funds for fiscal year

17 1995, rather than the funds authorized by this

18 title.

19 (c) SUNSET.—The amendment made by section 101(b)

20 shall be effective only during the 5-year period beginning

21 on October 1, 1995.
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1 TITLE II—SUPPLEMENTAL

2 SECURITY INCOME

3 Subtitle A—Eligibility Restrictions

4 SEC. 201. DENIAL OF SUPPLEMENTAL SECURITY INCOME

5 BENEFITS BY REASON OF DISABILITY TO

6 DRUG ADDICTS AND ALCOHOLICS.

7 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

8 1382c(a)(3)) is amended by adding at the end the following:

9 ‘‘(I) Notwithstanding subparagraph (A), an individ10 ual shall not be considered to be disabled for purposes of

11 this title if alcoholism or drug addiction would (but for this

12 subparagraph) be a contributing factor material to the

13 Commissioner’s determination that the individual is dis14 abled.’’.

15 (b) REPRESENTATIVE PAYEE REQUIREMENTS.—

16 (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C.

17 1383(a)(2)(A)(ii)(II)) is amended to read as follows:

18 ‘‘(II) In the case of an individual eligible for benefits

19 under this title by reason of disability, if such individual

20 also has an alcoholism or drug addiction condition (as de21 termined by the Commissioner of Social Security), the pay22 ment of such benefits to a representative payee shall be

23 deemed to serve the interest of the individual. In any case

24 in which such payment is so deemed under this subclause

25 to serve the interest of an individual, the Commissioner
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1 shall include, in the individual’s notification of such eligi2 bility, a notice that such alcoholism or drug addiction con3 dition accompanies the disability upon which such eligi4 bility is based and that the Commissioner is therefore re5 quired to pay the individual’s benefits to a representative

6 payee.’’.

7 (2) Section 1631(a)(2)(B)(vii) (42 U.S.C.

8 1383(a)(2)(B)(vii)) is amended by striking ‘‘eligible

9 for benefits’’ and all that follows through ‘‘is disabled’’

10 and inserting ‘‘described in subparagraph

11 (A)(ii)(II)’’.

12 (3) Section 1631(a)(2)(B)(ix)(II) (42 U.S.C.

13 1383(a)(2)(B)(ix)(II)) is amended by striking all that

14 follows ‘‘15 years, or’’ and inserting ‘‘described in

15 subparagraph (A)(ii)(II)’’.

16 (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.

17 1383(a)(2)(D)(i)(II)) is amended by striking ‘‘eligible

18 for benefits’’ and all that follows through ‘‘is disabled’’

19 and inserting ‘‘described in subparagraph

20 (A)(ii)(II)’’.

21 (c) TREATMENT SERVICES FOR INDIVIDUALS WITH A

22 SUBSTANCE ABUSE CONDITION.—

23 (1) IN GENERAL.—Title XVI (42 U.S.C. 1381 et

24 seq.) is amended by adding at the end the following

25 new section:
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1 ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A

2 SUBSTANCE ABUSE CONDITION

3 ‘‘SEC. 1636. (a) In the case of any individual eligible

4 for benefits under this title by reason of disability who is

5 identified as having a substance abuse condition, the Com6 missioner of Social Security shall make provision for refer7 ral of such individual to the appropriate State agency ad8 ministering the State plan for substance abuse treatment

9 services approved under subpart II of part B of title XIX

10 of the Public Health Service Act (42 U.S.C. 300x–21 et

11 seq.).

12 ‘‘(b) No individual described in subsection (a) shall be

13 an eligible individual or eligible spouse for purposes of this

14 title if such individual refuses without good cause to accept

15 the referred services described under subsection (a).

16 (2) CONFORMING AMENDMENT.—Section

17 1614(a)(4) (42 U.S.C. 1382c(a)(4)) is amended by in18 serting after the second sentence the following new

19 sentence: ‘‘For purposes of the preceding sentence, any

20 individual identified by the Commissioner as having

21 a substance abuse condition shall seek and complete

22 appropriate treatment as needed.’’.

23 (d) CONFORMING AMENDMENTS.—

24 (1) Section 1611(e) (42 U.S.C. 1382(e)) is

25 amended by striking paragraph (3).
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1 (2) Section 1634 (42 U.S.C. 1383c) is amended

2 by striking subsection (e).

3 (3) Section 201(c)(1) of the Social Security Inde4 pendence and Program Improvements Act of 1994 (42

5 U.S.C. 425 note) is amended—

6 (A) by striking ‘‘—’’ and all that follows

7 through ‘‘(A)’’ the 1st place it appears;

8 (B) by striking ‘‘and’’ the 3rd place it ap9 pears;

10 (C) by striking subparagraph (B);

11 (D) by striking ‘‘either subparagraph (A) or

12 subparagraph (B)’’ and inserting ‘‘the preceding

13 sentence’’; and

14 (E) by striking ‘‘subparagraph (A) or (B)’’

15 and inserting ‘‘the preceding sentence’’.

16 (e) SUPPLEMENTAL FUNDING FOR ALCOHOL AND SUB17 STANCE ABUSE TREATMENT PROGRAMS.—

18 (1) IN GENERAL.—Out of any money in the

19 Treasury not otherwise appropriated, there are hereby

20 appropriated to supplement State and Tribal pro21 grams funded under section 1933 of the Public Health

22 Service Act (42 U.S.C. 300x–33), $50,000,000 for

23 each of the fiscal years 1997 and 1998.

24 (2) ADDITIONAL FUNDS.—Amounts appropriated

25 under paragraph (1) shall be in addition to any
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1 funds otherwise appropriated for allotments under

2 section 1933 of the Public Health Service Act (42

3 U.S.C. 300x–33) and shall be allocated pursuant to

4 such section 1933.

5 (3) USE OF FUNDS.—A State or Tribal govern6 ment receiving an allotment under this subsection

7 shall consider as priorities, for purposes of expending

8 funds allotted under this subsection, activities relating

9 to the treatment of the abuse of alcohol and other

10 drugs.

11 SEC. 202. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI

12 BENEFITS.

13 Paragraph (1) of section 1614(a) (42 U.S.C. 1382c(a))

14 is amended—

15 (1) in subparagraph (B)(i), by striking ‘‘either’’

16 and all that follows through ‘‘, or’’ and inserting ‘‘(I)

17 a citizen; (II) a noncitizen who is granted asylum

18 under section 208 of the Immigration and National19 ity Act or whose deportation has been withheld under

20 section 243(h) of such Act for a period of not more

21 than 5 years after the date of arrival into the United

22 States; (III) a noncitizen who is admitted to the

23 United States as a refugee under section 207 of such

24 Act for not more than such 5-year period; (IV) a

25 noncitizen, lawfully present in any State (or any ter-
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1 ritory or possession of the United States), who is a

2 veteran (as defined in section 101 of title 38, United

3 States Code) with a discharge characterized as an

4 honorable discharge and not on account of alienage or

5 who is the spouse or unmarried dependent child of

6 such veteran; or (V) a noncitizen who has worked suf7 ficient calendar quarters of coverage to be a fully in8 sured individual for benefits under title II, or’’; and

9 (2) by adding at the end the following new flush

10 sentence:

11 ‘‘For purposes of subparagraph (B)(i)(IV), the determina12 tion of whether a noncitizen is lawfully present in the

13 United States shall be made in accordance with regulations

14 of the Attorney General. A noncitizen shall not be consid15 ered to be lawfully present in the United States for purposes

16 of this title merely because the noncitizen may be considered

17 to be permanently residing in the United States under color

18 of law for purposes of any particular program.’’.

19 SEC. 203. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI20 VIDUALS FOUND TO HAVE FRAUDULENTLY

21 MISREPRESENTED RESIDENCE IN ORDER TO

22 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

23 MORE STATES.

24 Section 1614(a) (42 U.S.C. 1382c(a)) is amended by

25 adding at the end the following new paragraph:
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1 ‘‘(5) An individual shall not be considered an eligible

2 individual for purposes of this title during the 10-year pe3 riod beginning on the date the individual is convicted in

4 Federal or State court of having made a fraudulent state5 ment or representation with respect to the place of residence

6 of the individual in order to receive assistance simulta7 neously from 2 or more States under programs that are

8 funded under part A of title IV, title XIX, or the Food

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

10 the supplemental security income program under title

11 XVI.’’.

12 SEC. 204. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS

13 AND PROBATION AND PAROLE VIOLATORS.

14 (a) IN GENERAL.—Section 1611(e) (42 U.S.C.

15 1382(e)), as amended by section 201(c)(1), is amended by

16 inserting after paragraph (2) the following new paragraph:

17 ‘‘(3) A person shall not be an eligible individual or

18 eligible spouse for purposes of this title with respect to any

19 month if during such month the person is—

20 ‘‘(A) fleeing to avoid prosecution, or custody or

21 confinement after conviction, under the laws of the

22 place from which the person flees, for a crime, or an

23 attempt to commit a crime, which is a felony under

24 the laws of the place from which the person flees, or
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1 which, in the case of the State of New Jersey, is a

2 high misdemeanor under the laws of such State; or

3 ‘‘(B) violating a condition of probation or parole

4 imposed under Federal or State law.’’.

5 (b) EXCHANGE OF INFORMATION WITH LAW ENFORCE6 MENT AGENCIES.—Section 1631(e) (42 U.S.C. 1383(e)) is

7 amended by inserting after paragraph (3) the following new

8 paragraph:

9 ‘‘(4) Notwithstanding any other provision of law, the

10 Commissioner shall furnish any Federal, State, or local law

11 enforcement officer, upon the request of the officer, with the

12 current address, Social Security number, and photograph

13 (if applicable) of any recipient of benefits under this title,

14 if the officer furnishes the agency with the name of the re15 cipient and notifies the agency that—

16 ‘‘(A) the recipient—

17 ‘‘(i) is fleeing to avoid prosecution, or cus18 tody or confinement after conviction, under the

19 laws of the place from which the person flees, for

20 a crime, or an attempt to commit a crime, which

21 is a felony under the laws of the place from

22 which the person flees, or which, in the case of

23 the State of New Jersey, is a high misdemeanor

24 under the laws of such State;
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1 ‘‘(ii) is violating a condition of probation

2 or parole imposed under Federal or State law; or

3 ‘‘(iii) has information that is necessary for

4 the officer to conduct the officer’s official duties;

5 and

6 ‘‘(B) the location or apprehension of the recipi7 ent is within the officer’s official duties.’’.

8 SEC. 205. EFFECTIVE DATES; APPLICATION TO CURRENT

9 RECIPIENTS.

10 (a) SECTIONS 201 AND 202.—

11 (1) IN GENERAL.—Except as provided in para12 graphs (2) and (3), the amendments made by sections

13 201 and 202 shall apply to applicants for benefits for

14 months beginning on or after the date of the enact15 ment of this Act, without regard to whether regula16 tions have been issued to implement such amend17 ments.

18 (2) APPLICATION TO CURRENT RECIPIENTS.—

19 (A) APPLICATION AND NOTICE.—Notwith20 standing any other provision of law, in the case

21 of an individual who is receiving supplemental

22 security income benefits under title XVI of the

23 Social Security Act as of the date of the enact24 ment of this Act and whose eligibility for such

25 benefits would terminate by reason of the amend-
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1 ments made by section 201 or 202, such amend2 ments shall apply with respect to the benefits of

3 such individual, including such individual’s

4 treatment (if any) provided pursuant to such

5 title as in effect on the day before the date of

6 such enactment, for months beginning on or after

7 January 1, 1997, and the Commissioner of So8 cial Security shall so notify the individual not

9 later than 90 days after the date of the enact10 ment of this Act.

11 (B) REAPPLICATION.—

12 (i) IN GENERAL.—Not later than 120

13 days after the date of the enactment of this

14 Act, each individual notified pursuant to

15 subparagraph (A) who desires to reapply

16 for benefits under title XVI of the Social Se17 curity Act, as amended by this title, shall

18 reapply to the Commissioner of Social Secu19 rity.

20 (ii) DETERMINATION OF ELIGI21 BILITY.—Not later than 1 year after the

22 date of the enactment of this Act, the Com23 missioner of Social Security shall determine

24 the eligibility of each individual who
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1 reapplies for benefits under clause (i) pur2 suant to the procedures of such title.

3 (3) ADDITIONAL APPLICATION OF PAYEE REP4 RESENTATIVE REQUIREMENTS.—The amendments

5 made by section 201(b) shall also apply—

6 (A) in the case of any individual who is re7 ceiving supplemental security income benefits

8 under title XVI of the Social Security Act as of

9 the date of the enactment of this Act, on and

10 after the date of such individual’s first continu11 ing disability review occurring after such date of

12 enactment, and

13 (B) in the case of any individual who re14 ceives supplemental security income benefits

15 under title XVI of the Social Security Act and

16 has attained age 65, in such manner as deter17 mined appropriate by the Commissioner of So18 cial Security.

19 (b) OTHER AMENDMENTS.—The amendments made by

20 sections 203 and 204 shall take effect on the date of the

21 enactment of this Act.
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1 Subtitle B—Benefits for Disabled

2 Children

3 SEC. 211. DEFINITION AND ELIGIBILITY RULES.

4 (a) DEFINITION OF CHILDHOOD DISABILITY.—Section

5 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by section

6 201(a), is amended—

7 (1) in subparagraph (A), by striking ‘‘An indi8 vidual’’ and inserting ‘‘Except as provided in sub9 paragraph (C), an individual’’;

10 (2) in subparagraph (A), by striking ‘‘(or, in the

11 case of an individual under the age of 18, if he suffers

12 from any medically determinable physical or mental

13 impairment of comparable severity)’’;

14 (3) by redesignating subparagraphs (C) through

15 (I) as subparagraphs (D) through (J), respectively;

16 (4) by inserting after subparagraph (B) the fol17 lowing new subparagraph:

18 ‘‘(C) An individual under the age of 18 shall be consid19 ered disabled for the purposes of this title if that individual

20 has a medically determinable physical or mental impair21 ment, which results in marked and severe functional limita22 tions, and which can be expected to result in death or which

23 has lasted or can be expected to last for a continuous period

24 of not less than 12 months.’’; and
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1 (5) in subparagraph (F), as redesignated by

2 paragraph (3), by striking ‘‘(D)’’ and inserting

3 ‘‘(E)’’.

4 (b) CHANGES TO CHILDHOOD SSI REGULATIONS.—

5 (1) MODIFICATION TO MEDICAL CRITERIA FOR

6 EVALUATION OF MENTAL AND EMOTIONAL DIS7 ORDERS.—The Commissioner of Social Security shall

8 modify sections 112.00C.2. and 112.02B.2.c.(2) of ap9 pendix 1 to subpart P of part 404 of title 20, Code

10 of Federal Regulations, to eliminate references to

11 maladaptive behavior in the domain of personal/

12 behavorial function.

13 (2) DISCONTINUANCE OF INDIVIDUALIZED FUNC14 TIONAL ASSESSMENT.—The Commissioner of Social

15 Security shall discontinue the individualized func16 tional assessment for children set forth in sections

17 416.924d and 416.924e of title 20, Code of Federal

18 Regulations.

19 (c) EFFECTIVE DATE; REGULATIONS; APPLICATION TO

20 CURRENT RECIPIENTS.—

21 (1) IN GENERAL.—The amendments made by

22 subsections (a) and (b) shall apply to applicants for

23 benefits for months beginning on or after the date of

24 the enactment of this Act, without regard to whether
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1 regulations have been issued to implement such

2 amendments.

3 (2) REGULATIONS.—The Commissioner of Social

4 Security shall issue such regulations as the Commis5 sioner determines to be necessary to implement the

6 amendments made by subsections (a) and (b) not

7 later than 60 days after the date of the enactment of

8 this Act.

9 (3) APPLICATION TO CURRENT RECIPIENTS.—

10 (A) ELIGIBILITY DETERMINATIONS.—Not

11 later than 1 year after the date of the enactment

12 of this Act, the Commissioner of Social Security

13 shall redetermine the eligibility of any individ14 ual under age 18 who is receiving supplemental

15 security income benefits based on a disability

16 under title XVI of the Social Security Act as of

17 the date of the enactment of this Act and whose

18 eligibility for such benefits may terminate by

19 reason of the amendments made by subsection

20 (a) or (b). With respect to any redetermination

21 under this subparagraph—

22 (i) section 1614(a)(4) of the Social Se23 curity Act (42 U.S.C. 1382c(a)(4)) shall not

24 apply;
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1 (ii) the Commissioner of Social Secu2 rity shall apply the eligibility criteria for

3 new applicants for benefits under title XVI

4 of such Act;

5 (iii) the Commissioner shall give such

6 redetermination priority over all continuing

7 eligibility reviews and other reviews under

8 such title; and

9 (iv) such redetermination shall be

10 counted as a review or redetermination oth11 erwise required to be made under section

12 208 of the Social Security Independence

13 and Program Improvements Act of 1994 or

14 any other provision of title XVI of the So15 cial Security Act.

16 (B) GRANDFATHER PROVISION.—The

17 amendments made by subsections (a) and (b),

18 and the redetermination under subparagraph

19 (A), shall only apply with respect to the benefits

20 of an individual described in subparagraph (A)

21 for months beginning on or after January 1,

22 1997.

23 (C) NOTICE.—Not later than 90 days after

24 the date of the enactment of this Act, the Com25 missioner of Social Security shall notify an in-
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1 dividual described in subparagraph (A) of the

2 provisions of this paragraph.

3 SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU4 ING DISABILITY REVIEWS.

5 (a) CONTINUING DISABILITY REVIEWS RELATING TO

6 CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.

7 1382c(a)(3)(H)), as redesignated by section 211(a)(3), is

8 amended—

9 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

10 (2) by adding at the end the following new

11 clause:

12 ‘‘(ii)(I) Not less frequently than once every 3 years,

13 the Commissioner shall review in accordance with para14 graph (4) the continued eligibility for benefits under this

15 title of each individual who has not attained 18 years of

16 age and is eligible for such benefits by reason of an impair17 ment (or combination of impairments) which may improve

18 (or, which is unlikely to improve, at the option of the Com19 missioner).

20 ‘‘(II) A parent or guardian of a recipient whose case

21 is reviewed under this clause shall present, at the time of

22 review, evidence demonstrating that the recipient is, and

23 has been, receiving treatment, to the extent considered medi24 cally necessary and available, of the condition which was

25 the basis for providing benefits under this title.’’.
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1 (b) DISABILITY ELIGIBILITY REDETERMINATIONS RE2 QUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS OF

3 AGE.—

4 (1) IN GENERAL.—Section 1614(a)(3)(H) (42

5 U.S.C. 1382c(a)(3)(H)), as amended by subsection

6 (a), is amended by adding at the end the following

7 new clause:

8 ‘‘(iii) If an individual is eligible for benefits under this

9 title by reason of disability for the month preceding the

10 month in which the individual attains the age of 18 years,

11 the Commissioner shall redetermine such eligibility—

12 ‘‘(I) during the 1-year period beginning on the

13 individual’s 18th birthday; and

14 ‘‘(II) by applying the criteria used in determin15 ing the initial eligibility for applicants who have at16 tained the age of 18 years.

17 With respect to a redetermination under this clause, para18 graph (4) shall not apply and such redetermination shall

19 be considered a substitute for a review or redetermination

20 otherwise required under any other provision of this sub21 paragraph during that 1-year period.’’.

22 (2) CONFORMING REPEAL.—Section 207 of the

23 Social Security Independence and Program Improve24 ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.

25 1516) is hereby repealed.
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1 (c) CONTINUING DISABILITY REVIEW REQUIRED FOR

2 LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H) (42

3 U.S.C. 1382c(a)(3)(H)), as amended by subsections (a) and

4 (b), is amended by adding at the end the following new

5 clause:

6 ‘‘(iv)(I) Not later than 12 months after the birth of

7 an individual, the Commissioner shall review in accordance

8 with paragraph (4) the continuing eligibility for benefits

9 under this title by reason of disability of such individual

10 whose low birth weight is a contributing factor material

11 to the Commissioner’s determination that the individual is

12 disabled.

13 ‘‘(II) A review under subclause (I) shall be considered

14 a substitute for a review otherwise required under any other

15 provision of this subparagraph during that 12-month pe16 riod.

17 ‘‘(III) A parent or guardian of a recipient whose case

18 is reviewed under this clause shall present, at the time of

19 review, evidence demonstrating that the recipient is, and

20 has been, receiving treatment, to the extent considered medi21 cally necessary and available, of the condition which was

22 the basis for providing benefits under this title.’’.

23 (d) EFFECTIVE DATE.—The amendments made by this

24 section shall apply to benefits for months beginning on or

25 after the date of the enactment of this Act, without regard
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1 to whether regulations have been issued to implement such

2 amendments.

3 SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

4 (a) TIGHTENING OF REPRESENTATIVE PAYEE RE5 QUIREMENTS.—

6 (1) CLARIFICATION OF ROLE.—Section

7 1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is

8 amended by striking ‘‘and’’ at the end of subclause

9 (II), by striking the period at the end of subclause

10 (IV) and inserting ‘‘; and’’, and by adding after

11 subclause (IV) the following new subclause:

12 ‘‘(V) advise such person through the notice of

13 award of benefits, and at such other times as the

14 Commissioner of Social Security deems appropriate,

15 of specific examples of appropriate expenditures of

16 benefits under this title and the proper role of a rep17 resentative payee.’’.

18 (2) DOCUMENTATION OF EXPENDITURES RE19 QUIRED.—

20 (A) IN GENERAL.—Subparagraph (C)(i) of

21 section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is

22 amended to read as follows:

23 ‘‘(C)(i) In any case where payment is made to a rep24 resentative payee of an individual or spouse, the Commis25 sioner of Social Security shall—
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1 ‘‘(I) require such representative payee to docu2 ment expenditures and keep contemporaneous records

3 of transactions made using such payment; and

4 ‘‘(II) implement statistically valid procedures for

5 reviewing a sample of such contemporaneous records

6 in order to identify instances in which such represent7 ative payee is not properly using such payment.’’.

8 (B) CONFORMING AMENDMENT WITH RE9 SPECT TO PARENT PAYEES.—Clause (ii) of sec10 tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C)) is

11 amended by striking ‘‘Clause (i)’’ and inserting

12 ‘‘Subclauses (II) and (III) of clause (i)’’.

13 (3) EFFECTIVE DATE.—The amendments made

14 by this subsection shall apply to benefits paid after

15 the date of the enactment of this Act.

16 (b) DEDICATED SAVINGS ACCOUNTS.—

17 (1) IN GENERAL.—Section 1631(a)(2)(B) (42

18 U.S.C. 1383(a)(2)(B)) is amended by adding at the

19 end the following new clause:

20 ‘‘(xiv) Notwithstanding clause (x), the Commissioner

21 of Social Security may, at the request of the representative

22 payee, pay any lump sum payment for the benefit of a child

23 into a dedicated savings account that could only be used

24 to purchase for such child—

25 ‘‘(I) education and job skills training;
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1 ‘‘(II) special equipment or housing modifications

2 or both specifically related to, and required by the na3 ture of, the child’s disability; and

4 ‘‘(III) appropriate therapy and rehabilitation.’’.

5 (2) DISREGARD OF TRUST FUNDS.—Section

6 1613(a) (42 U.S.C. 1382b) is amended—

7 (A) by striking ‘‘and’’ at the end of para8 graph (9),

9 (B) by striking the period at the end of

10 paragraph (10) the first place it appears and in11 serting a semicolon,

12 (C) by redesignating paragraph (10) the

13 second place it appears as paragraph (11) and

14 striking the period at the end of such paragraph

15 and inserting ‘‘; and’’, and

16 (D) by inserting after paragraph (11), as so

17 redesignated, the following new paragraph:

18 ‘‘(12) all amounts deposited in, or interest cred19 ited to, a dedicated savings account described in sec20 tion 1631(a)(2)(B)(xiv).’’.

21 (3) EFFECTIVE DATE.—The amendments made

22 by this subsection shall apply to payments made after

23 the date of the enactment of this Act.
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1 Subtitle C—Studies Regarding Sup2 plemental Security Income Pro3 gram

4 SEC. 221. ANNUAL REPORT ON THE SUPPLEMENTAL SECU5 RITY INCOME PROGRAM.

6 Title XVI is amended by adding at the end the follow7 ing new section:

8 ‘‘SEC. 1636. ANNUAL REPORT ON PROGRAM.

9 ‘‘(a) DESCRIPTION OF REPORT.—Not later than May

10 30 of each year, the Commissioner of Social Security shall

11 prepare and deliver a report annually to the President and

12 the Congress regarding the program under this title, includ13 ing—

14 ‘‘(1) a comprehensive description of the program;

15 ‘‘(2) historical and current data on allowances

16 and denials, including number of applications and

17 allowance rates at initial determinations, reconsider18 ations, administrative law judge hearings, council of

19 appeals hearings, and Federal court appeal hearings;

20 ‘‘(3) historical and current data on characteris21 tics of recipients and program costs, by recipient

22 group (aged, blind, work disabled adults, and chil23 dren);

24 ‘‘(4) projections of future number of recipients

25 and program costs, through at least 25 years;
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1 ‘‘(5) number of redeterminations and continuing

2 disability reviews, and the outcomes of such

3 redeterminations and reviews;

4 ‘‘(6) data on the utilization of work incentives;

5 ‘‘(7) detailed information on administrative and

6 other program operation costs;

7 ‘‘(8) summaries of relevant research undertaken

8 by the Social Security Administration, or by other re9 searchers;

10 ‘‘(9) State supplementation program operations;

11 ‘‘(10) a historical summary of statutory changes

12 to this title; and

13 ‘‘(11) such other information as the Commis14 sioner deems useful.

15 ‘‘(b) VIEWS OF MEMBERS OF THE SOCIAL SECURITY

16 ADVISORY COUNCIL.—Each member of the Social Security

17 Advisory Council shall be permitted to provide an individ18 ual report, or a joint report if agreed, of views of the pro19 gram under this title, to be included in the annual report

20 under this section.’’.

21 SEC. 222. IMPROVEMENTS TO DISABILITY EVALUATION.

22 (a) REQUEST FOR COMMENTS.—

23 (1) IN GENERAL.—Not later than 60 days after

24 the date of the enactment of this Act, the Commis25 sioner of Social Security shall issue a request for com-
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1 ments in the Federal Register regarding improve2 ments to the disability evaluation and determination

3 procedures for individuals under age 18 to ensure the

4 comprehensive assessment of such individuals, includ5 ing—

6 (A) additions to conditions which should be

7 presumptively disabling at birth or ages 0

8 through 3 years;

9 (B) specific changes in individual listings

10 in the Listing of Impairments set forth in ap11 pendix 1 of subpart P of part 404 of title 20,

12 Code of Federal Regulations;

13 (C) improvements in regulations regarding

14 determinations based on regulations providing

15 for medical and functional equivalence to such

16 Listing of Impairments, and consideration of

17 multiple impairments; and

18 (D) any other changes to the disability de19 termination procedures.

20 (2) REVIEW AND REGULATORY ACTION.—The

21 Commissioner of Social Security shall promptly re22 view such comments and issue any regulations imple23 menting any necessary changes not later than 18

24 months after the date of the enactment of this Act.
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1 SEC. 223. STUDY OF DISABILITY DETERMINATION PROCESS.

2 (a) IN GENERAL.—Not later than 90 days after the

3 date of the enactment of this Act, and from funds otherwise

4 appropriated, the Commissioner of Social Security shall

5 make arrangements with the National Academy of Sciences,

6 or other independent entity, to conduct a study of the dis7 ability determination process under titles II and XVI of the

8 Social Security Act. This study shall be undertaken in con9 sultation with professionals representing appropriate dis10 ciplines.

11 (b) STUDY COMPONENTS.—The study described in sub12 section (a) shall include—

13 (1) an initial phase examining the appropriate14 ness of, and making recommendations regarding—

15 (A) the definitions of disability in effect on

16 the date of the enactment of this Act and the ad17 vantages and disadvantages of alternative defini18 tions; and

19 (B) the operation of the disability deter20 mination process, including the appropriate

21 method of performing comprehensive assessments

22 of individuals under age 18 with physical and

23 mental impairments;

24 (2) a second phase, which may be concurrent

25 with the initial phase, examining the validity, reli26 ability, and consistency with current scientific knowl-
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1 edge of the standards and individual listings in the

2 Listing of Impairments set forth in appendix 1 of

3 subpart P of part 404 of title 20, Code of Federal

4 Regulations, and of related evaluation procedures as

5 promulgated by the Commissioner of Social Security;

6 and

7 (3) such other issues as the applicable entity con8 siders appropriate.

9 (c) REPORTS AND REGULATIONS.—

10 (1) REPORTS.—The Commissioner of Social Se11 curity shall request the applicable entity, to submit

12 an interim report and a final report of the findings

13 and recommendations resulting from the study de14 scribed in this section to the President and the Con15 gress not later than 18 months and 24 months, respec16 tively, from the date of the contract for such study,

17 and such additional reports as the Commissioner

18 deems appropriate after consultation with the appli19 cable entity.

20 (2) REGULATIONS.—The Commissioner of Social

21 Security shall review both the interim and final re22 ports, and shall issue regulations implementing any

23 necessary changes following each report.
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1 SEC. 224. STUDY BY GENERAL ACCOUNTING OFFICE.

2 Not later than January 1, 1998, the Comptroller Gen3 eral of the United States shall study and report on the im4 pact of the amendments made by, and the provisions of,

5 this title on the supplemental security income program

6 under title XVI of the Social Security Act.

7 Subtitle D—National Commission

8 on the Future of Disability

9 SEC. 231. ESTABLISHMENT.

10 There is established a commission to be known as the

11 National Commission on the Future of Disability (referred

12 to in this subtitle as the ‘‘Commission’’), the expenses of

13 which shall be paid from funds otherwise appropriated for

14 the Social Security Administration.

15 SEC. 232. DUTIES OF THE COMMISSION.

16 (a) IN GENERAL.—The Commission shall develop and

17 carry out a comprehensive study of all matters related to

18 the nature, purpose, and adequacy of all Federal programs

19 serving individuals with disabilities. In particular, the

20 Commission shall study the disability insurance program

21 under title II of the Social Security Act and the supple22 mental security income program under title XVI of such

23 Act.

24 (b) MATTERS STUDIED.—The Commission shall pre25 pare an inventory of Federal programs serving individuals

26 with disabilities, and shall examine—
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1 (1) trends and projections regarding the size and

2 characteristics of the population of individuals with

3 disabilities, and the implications of such analyses for

4 program planning;

5 (2) the feasibility and design of performance

6 standards for the Nation’s disability programs;

7 (3) the adequacy of Federal efforts in rehabilita8 tion research and training, and opportunities to im9 prove the lives of individuals with disabilities through

10 all manners of scientific and engineering research;

11 and

12 (4) the adequacy of policy research available to

13 the Federal Government, and what actions might be

14 undertaken to improve the quality and scope of such

15 research.

16 (c) RECOMMENDATIONS.—The Commission shall sub17 mit to the appropriate committees of the Congress and to

18 the President recommendations and, as appropriate, pro19 posals for legislation, regarding—

20 (1) which (if any) Federal disability programs

21 should be eliminated or augmented;

22 (2) what new Federal disability programs (if

23 any) should be established;
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1 (3) the suitability of the organization and loca2 tion of disability programs within the Federal Gov3 ernment;

4 (4) other actions the Federal Government should

5 take to prevent disabilities and disadvantages associ6 ated with disabilities; and

7 (5) such other matters as the Commission consid8 ers appropriate.

9 SEC. 233. MEMBERSHIP.

10 (a) NUMBER AND APPOINTMENT.—

11 (1) IN GENERAL.—The Commission shall be com12 posed of 15 members, of whom—

13 (A) five shall be appointed by the President,

14 of whom not more than 3 shall be of the same

15 major political party;

16 (B) three shall be appointed by the Majority

17 Leader of the Senate;

18 (C) two shall be appointed by the Minority

19 Leader of the Senate;

20 (D) three shall be appointed by the Speaker

21 of the House of Representatives; and

22 (E) two shall be appointed by the Minority

23 Leader of the House of Representatives.

24 (2) REPRESENTATION.—The Commission mem25 bers shall be chosen based on their education, train-
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1 ing, or experience. In appointing individuals as

2 members of the Commission, the President and the

3 Majority and Minority Leaders of the Senate and the

4 Speaker and Minority Leader of the House of Rep5 resentatives shall seek to ensure that the membership

6 of the Commission reflects the diversity of individuals

7 with disabilities in the United States.

8 (b) COMPTROLLER GENERAL.—The Comptroller Gen9 eral shall serve on the Commission as an ex officio member

10 of the Commission to advise and oversee the methodology

11 and approach of the study of the Commission.

12 (c) PROHIBITION AGAINST OFFICER OR EMPLOYEE.—

13 No officer or employee of any government shall be appointed

14 under subsection (a).

15 (d) DEADLINE FOR APPOINTMENT; TERM OF APPOINT16 MENT.—Members of the Commission shall be appointed not

17 later than 60 days after the date of the enactment of this

18 Act. The members shall serve on the Commission for the

19 life of the Commission.

20 (e) MEETINGS.—The Commission shall locate its head21 quarters in the District of Columbia, and shall meet at the

22 call of the Chairperson, but not less than 4 times each year

23 during the life of the Commission.
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1 (f) QUORUM.—Ten members of the Commission shall

2 constitute a quorum, but a lesser number may hold hear3 ings.

4 (g) CHAIRPERSON AND VICE CHAIRPERSON.—Not

5 later than 15 days after the members of the Commission

6 are appointed, such members shall designate a Chairperson

7 and Vice Chairperson from among the members of the Com8 mission.

9 (h) CONTINUATION OF MEMBERSHIP.—If a member of

10 the Commission becomes an officer or employee of any gov11 ernment after appointment to the Commission, the individ12 ual may continue as a member until a successor member

13 is appointed.

14 (i) VACANCIES.—A vacancy on the Commission shall

15 be filled in the manner in which the original appointment

16 was made not later than 30 days after the Commission is

17 given notice of the vacancy.

18 (j) COMPENSATION.—Members of the Commission shall

19 receive no additional pay, allowances, or benefits by reason

20 of their service on the Commission.

21 (k) TRAVEL EXPENSES.—Each member of the Com22 mission shall receive travel expenses, including per diem in

23 lieu of subsistence, in accordance with sections 5702 and

24 5703 of title 5, United States Code.
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1 SEC. 234. STAFF AND SUPPORT SERVICES.

2 (a) DIRECTOR.—

3 (1) APPOINTMENT.—Upon consultation with the

4 members of the Commission, the Chairperson shall

5 appoint a Director of the Commission.

6 (2) COMPENSATION.—The Director shall be paid

7 the rate of basic pay for level V of the Executive

8 Schedule.

9 (b) STAFF.—With the approval of the Commission, the

10 Director may appoint such personnel as the Director con11 siders appropriate.

12 (c) APPLICABILITY OF CIVIL SERVICE LAWS.—The

13 staff of the Commission shall be appointed without regard

14 to the provisions of title 5, United States Code, governing

15 appointments in the competitive service, and shall be paid

16 without regard to the provisions of chapter 51 and sub17 chapter III of chapter 53 of such title relating to classifica18 tion and General Schedule pay rates.

19 (d) EXPERTS AND CONSULTANTS.—With the approval

20 of the Commission, the Director may procure temporary

21 and intermittent services under section 3109(b) of title 5,

22 United States Code.

23 (e) STAFF OF FEDERAL AGENCIES.—Upon the request

24 of the Commission, the head of any Federal agency may

25 detail, on a reimbursable basis, any of the personnel of such
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1 agency to the Commission to assist in carrying out the du2 ties of the Commission under this subtitle.

3 (f) OTHER RESOURCES.—The Commission shall have

4 reasonable access to materials, resources, statistical data,

5 and other information from the Library of Congress and

6 agencies and elected representatives of the executive and leg7 islative branches of the Federal Government. The Chair8 person of the Commission shall make requests for such ac9 cess in writing when necessary.

10 (g) PHYSICAL FACILITIES.—The Administrator of the

11 General Services Administration shall locate suitable office

12 space for the operation of the Commission. The facilities

13 shall serve as the headquarters of the Commission and shall

14 include all necessary equipment and incidentals required

15 for proper functioning of the Commission.

16 SEC. 235. POWERS OF COMMISSION.

17 (a) HEARINGS.—The Commission may conduct public

18 hearings or forums at the discretion of the Commission, at

19 any time and place the Commission is able to secure facili20 ties and witnesses, for the purpose of carrying out the duties

21 of the Commission under this subtitle.

22 (b) DELEGATION OF AUTHORITY.—Any member or

23 agent of the Commission may, if authorized by the Commis24 sion, take any action the Commission is authorized to take

25 by this section.
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1 (c) INFORMATION.—The Commission may secure di2 rectly from any Federal agency information necessary to

3 enable the Commission to carry out its duties under this

4 subtitle. Upon request of the Chairperson or Vice Chair5 person of the Commission, the head of a Federal agency

6 shall furnish the information to the Commission to the ex7 tent permitted by law.

8 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis9 sion may accept, use, and dispose of gifts, bequests, or de10 vises of services or property, both real and personal, for the

11 purpose of aiding or facilitating the work of the Commis12 sion. Gifts, bequests, or devises of money and proceeds from

13 sales of other property received as gifts, bequests, or devises

14 shall be deposited in the Treasury and shall be available

15 for disbursement upon order of the Commission.

16 (e) MAILS.—The Commission may use the United

17 States mails in the same manner and under the same condi18 tions as other Federal agencies.

19 SEC. 236. REPORTS.

20 (a) INTERIM REPORT.—Not later than 1 year prior

21 to the date on which the Commission terminates pursuant

22 to section 237, the Commission shall submit an interim re23 port to the President and to the Congress. The interim re24 port shall contain a detailed statement of the findings and

25 conclusions of the Commission, together with the Commis-
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1 sion’s recommendations for legislative and administrative

2 action, based on the activities of the Commission.

3 (b) FINAL REPORT.—Not later than the date on which

4 the Commission terminates, the Commission shall submit

5 to the Congress and to the President a final report contain6 ing—

7 (1) a detailed statement of final findings, conclu8 sions, and recommendations; and

9 (2) an assessment of the extent to which rec10 ommendations of the Commission included in the in11 terim report under subsection (a) have been imple12 mented.

13 (c) PRINTING AND PUBLIC DISTRIBUTION.—Upon re14 ceipt of each report of the Commission under this section,

15 the President shall—

16 (1) order the report to be printed; and

17 (2) make the report available to the public upon

18 request.

19 SEC. 237. TERMINATION.

20 The Commission shall terminate on the date that is

21 2 years after the date on which the members of the Commis22 sion have met and designated a Chairperson and Vice

23 Chairperson.
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1 Subtitle E—State Supplementation

2 Programs

3 SEC. 241. REPEAL OF MAINTENANCE OF EFFORT REQUIRE4 MENTS APPLICABLE TO OPTIONAL STATE

5 PROGRAMS FOR SUPPLEMENTATION OF SSI

6 BENEFITS.

7 (a) IN GENERAL.—Section 1618 (42 U.S.C. 1382g) is

8 repealed.

9 (b) EFFECTIVE DATE.—The repeal made by subsection

10 (a) shall apply with respect to calendar quarters beginning

11 after September 30, 1995.

12 Subtitle F—Retirement Age

13 Eligibility

14 SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY IN15 COME BENEFITS BASED ON SOCIAL SECURITY

16 RETIREMENT AGE.

17 (a) IN GENERAL.—Section 1614(a)(1)(A) (42 U.S.C.

18 1382C(a)(1)(A)) is amended by striking ‘‘is 65 years of age

19 or older,’’ and inserting ‘‘has attained retirement age.’’.

20 (b) RETIREMENT AGE DEFINED.—Section 1614 (42

21 U.S.C. 1382c) is amended by adding at the end the follow22 ing new subsection:
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1 ‘‘Retirement Age

2 ‘‘(g) For purposes of this title, the term ‘‘retirement

3 age’’ has the meaning given such term by section

4 216(l)(1).’’.

5 (c) CONFORMING AMENDMENTS.—Sections 1601,

6 1612(b)(4), 1615(a)(1), and 1620(b)(2) (42 U.S.C. 1381,

7 1382a(b)(4), 1382d(a)(1), and 1382i(b)(2)) are amended by

8 striking ‘‘age 65’’ each place it appears and inserting ‘‘re9 tirement age’’.

10 (d) EFFECTIVE DATE.—The amendments made by this

11 section shall apply to applicants for benefits for months be12 ginning after September 30, 1995.

13 TITLE III—FOOD STAMP

14 PROGRAM

15 Subtitle A—Food Stamp Reform

16 SEC. 301. DECLARATION OF POLICY.

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

18 2011) is amended by adding at the end the following: ‘‘Con19 gress intends that the food stamp program support the em20 ployment focus and family strengthening mission of public

21 welfare and welfare replacement programs by—

22 ‘‘(1) facilitating the transition of low-income

23 families and households from economic dependency to

24 economic self-sufficiency through work;
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1 ‘‘(2) promoting employment as the primary

2 means of income support for economically dependent

3 families and households and reducing the barriers to

4 employment of economically dependent families and

5 households; and

6 ‘‘(3) maintaining and strengthening healthy

7 family functioning and family life.’’.

8 SEC. 301A. CERTIFICATION PERIOD.

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

10 2012(c)) is amended by striking ‘‘Except as provided’’ and

11 all that follows and inserting the following: ‘‘The certifi12 cation period shall not exceed 12 months, except that the

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

14 household members are elderly, disabled, or primarily self15 employed. A State agency shall have at least 1 personal con16 tact with each certified household every 12 months.’’.

17 SEC. 302. TREATMENT OF CHILDREN LIVING AT HOME.

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

19 Act of 1977 (7 U.S.C. 2012(i)) is amended by striking

20 ‘‘(who are not themselves parents living with their children

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

22 SEC. 303. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE

23 HOUSEHOLD DETERMINATIONS.

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

25 of 1977 (7 U.S.C. 2012(i)) is amended by inserting after
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1 the third sentence the following: ‘‘Notwithstanding the pre2 ceding sentences, a State may establish criteria that pre3 scribe when individuals who live together, and who would

4 be allowed to participate as separate households under the

5 preceding sentences, shall be considered a single household,

6 without regard to the common purchase of food and prepa7 ration of meals.’’.

8 (b) CONFORMING AMENDMENT.—The second sentence

9 of section 5(a) of the Act (7 U.S.C. 2014(a)) is amended

10 by striking ‘‘the third sentence of section 3(i)’’ and inserting

11 ‘‘the fourth sentence of section 3(i)’’.

12 SEC. 304. ADJUSTMENT OF THRIFTY FOOD PLAN.

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

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

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

16 the following: ‘‘shall—

17 ‘‘(1) make’’;

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

19 ‘‘scale;

20 ‘‘(2) make’’;

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

22 the following: ‘‘Alaska;

23 ‘‘(3) make’’; and
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1 (4) by striking ‘‘Columbia, (4) through’’ and all

2 that follows through the end of the subsection and in3 serting the following: ‘‘Columbia; and

4 ‘‘(4) on October 1, 1995, and each October 1

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

6 of the diet, in the preceding June, and round the re7 sult to the nearest lower dollar increment for each

8 household size, except that on October 1, 1995, the

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

10 on September 30, 1995.’’.

11 SEC. 305. DEFINITION OF HOMELESS INDIVIDUAL.

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

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

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

15 SEC. 306. STATE OPTIONS IN REGULATIONS.

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

17 2014(d)) is amended by striking ‘‘(b) The Secretary’’ and

18 inserting the following:

19 ‘‘(b) UNIFORM STANDARDS.—Except as otherwise pro20 vided in this Act, the Secretary’’.

21 SEC. 307. EARNINGS OF STUDENTS.

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

23 U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and insert24 ing ‘‘19’’.
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1 SEC. 308. ENERGY ASSISTANCE.

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

3 of 1977 (7 U.S.C. 2014(d)) is amended by striking para4 graph (11) and inserting the following: ‘‘(11) a one-time

5 payment or allowance made under a Federal or State law

6 for the costs of weatherization or emergency repair or re7 placement of an unsafe or inoperative furnace or other heat8 ing or cooling device,’’.

9 (b) CONFORMING AMENDMENTS.—

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

11 amended—

12 (A) in paragraph (1)—

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

14 ‘‘plan for aid to families with dependent

15 children approved’’ and inserting ‘‘program

16 funded’’; and

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

18 ‘‘, not including energy or utility-cost as19 sistance,’’; and

20 (B) in paragraph (2), by striking subpara21 graph (C) and inserting the following:

22 ‘‘(C) a payment or allowance described in sub23 section (d)(11);’’;

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

25 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY26 MENTS.—
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1 ‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For

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

3 under a Federal or State law to provide energy

4 assistance to a household shall be considered

5 money payable directly to the household.

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

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

8 behalf of a household under a Federal or State

9 law to provide energy assistance shall be consid10 ered an out-of-pocket expense incurred and paid

11 by the household.’’.

12 (2) Section 2605(f) of the Low-Income Home En13 ergy Assistance Act of 1981 (42 U.S.C. 8624(f)) is

14 amended—

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

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

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

18 stamps,’’; and

19 (C) by striking paragraph (2).

20 SEC. 309. DEDUCTIONS FROM INCOME.

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

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

23 (e) and inserting the following:

24 ‘‘(e) DEDUCTIONS FROM INCOME.—

25 ‘‘(1) STANDARD DEDUCTION.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall

2 allow a standard deduction for each household in

3 the 48 contiguous States and the District of Co4 lumbia, Alaska, Hawaii, Guam, and the Virgin

5 Islands of the United States of—

6 ‘‘(i) for fiscal year 1995, $134, $229,

7 $189, $269, and $118, respectively;

8 ‘‘(ii) for fiscal year 1996, $132, $225,

9 $186, $265, and $116, respectively; and

10 ‘‘(iii) for fiscal years 1997 through

11 2002, $124, $211, $174, $248 and $109, re12 spectively.

13 ‘‘(B) ADJUSTMENT FOR INFLATION.—On

14 October 1, 2002, and each October 1 thereafter,

15 the Secretary shall adjust the standard deduction

16 to the nearest lower dollar increment to reflect

17 changes in the Consumer Price Index for all

18 urban consumers published by the Bureau of

19 Labor Statistics, for items other than food, for

20 the 12-month period ending the preceding June

21 30.

22 ‘‘(2) EARNED INCOME DEDUCTION.—

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

24 subparagraph (B), a household with earned in25 come shall be allowed a deduction of 20 percent
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1 of all earned income (other than income excluded

2 by subsection (d)), to compensate for taxes, other

3 mandatory deductions from salary, and work ex4 penses.

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

6 in subparagraph (A) shall not be allowed with

7 respect to determining an overissuance due to the

8 failure of a household to report earned income in

9 a timely manner.

10 ‘‘(3) DEPENDENT CARE DEDUCTION.—

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

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

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

16 be $200 per month for each dependent child

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

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

20 care enables a household member to accept or

21 continue employment, or training or education

22 that is preparatory for employment.

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

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

2 household by a third party;

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

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

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

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

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

14 the household member is legally obligated to

15 make the payments.

16 ‘‘(B) METHODS FOR DETERMINING

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

19 retrospective basis, that a State agency shall use

20 to determine the amount of the deduction for

21 child support payments.

22 ‘‘(5) HOMELESS SHELTER DEDUCTION.—A State

23 agency may develop a standard homeless shelter de24 duction, which shall not exceed $139 per month, for

25 such expenses as may reasonably be expected to be in-
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1 curred by households in which all members are home2 less individuals but are not receiving free shelter

3 throughout the month. A State agency that develops

4 the deduction may use the deduction in determining

5 eligibility and allotments for the households, except

6 that the State agency may prohibit the use of the de7 duction for households with extremely low shelter

8 costs.

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

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

11 an elderly or disabled member shall be entitled,

12 with respect to expenses other than expenses paid

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

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

18 per month.

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

20 ‘‘(i) IN GENERAL.—A State agency

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

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

3 ‘‘(ii) METHOD.—The method described

4 in clause (i) shall—

5 ‘‘(I) be designed to minimize the

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

9 the member pursuant to the method;

10 ‘‘(II) rely on reasonable estimates

11 of the expected medical expenses of the

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

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

16 the member, public or private medical

17 insurance coverage, and the current

18 verified medical expenses incurred by

19 the member); and

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

23 anticipated for the certification period.

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

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

4 party, to an excess shelter expense deduction to

5 the extent that the monthly amount expended by

6 a household for shelter exceeds an amount equal

7 to 50 percent of monthly household income after

8 all other applicable deductions have been al9 lowed.

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

11 ‘‘(i) PRIOR TO SEPTEMBER 30, 1995.—

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

15 30, 1995, the excess shelter expense deduc16 tion shall not exceed—

17 ‘‘(I) in the 48 contiguous States

18 and the District of Columbia, $231 per

19 month; and

20 ‘‘(II) in Alaska, Hawaii, Guam,

21 and the Virgin Islands of the United

22 States, $402, $330, $280, and $171 per

23 month, respectively.

24 ‘‘(ii) AFTER SEPTEMBER 30, 1995.—In

25 the case of a household that does not contain
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1 an elderly or disabled individual, during

2 the 15-month period ending December 31,

3 1996, the excess shelter expense deduction

4 shall not exceed—

5 ‘‘(I) in the 48 contiguous States

6 and the District of Columbia, $247 per

7 month; and

8 ‘‘(II) in Alaska, Hawaii, Guam,

9 and the Virgin Islands of the United

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

11 month, respectively.

12 ‘‘(C) STANDARD UTILITY ALLOWANCE.—

13 ‘‘(i) IN GENERAL.—In computing the

14 excess shelter expense deduction, a State

15 agency may use a standard utility allow16 ance in accordance with regulations pro17 mulgated by the Secretary, except that a

18 State agency may use an allowance that

19 does not fluctuate within a year to reflect

20 seasonal variations.

21 ‘‘(ii) RESTRICTIONS ON HEATING AND

22 COOLING EXPENSES.—An allowance for a

23 heating or cooling expense may not be used

24 in the case of a household that—
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1 ‘‘(I) does not incur a heating or

2 cooling expense, as the case may be;

3 ‘‘(II) does incur a heating or cool4 ing expense but is located in a public

5 housing unit that has central utility

6 meters and charges households, with re7 gard to the expense, only for excess

8 utility costs; or

9 ‘‘(III) shares the expense with,

10 and lives with, another individual not

11 participating in the food stamp pro12 gram, another household participating

13 in the food stamp program, or both,

14 unless the allowance is prorated be15 tween the household and the other indi16 vidual, household, or both.

17 ‘‘(iii) MANDATORY ALLOWANCE.—

18 ‘‘(I) IN GENERAL.—A State agen19 cy may make the use of a standard

20 utility allowance mandatory for all

21 households with qualifying utility costs

22 if—

23 ‘‘(aa) the State agency has

24 developed 1 or more standards

25 that include the cost of heating
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1 and cooling and 1 or more stand2 ards that do not include the cost

3 of heating and cooling; and

4 ‘‘(bb) the Secretary finds that

5 the standards will not result in

6 an increased cost to the Secretary.

7 ‘‘(II) HOUSEHOLD ELECTION.—A

8 State agency that has not made the use

9 of a standard utility allowance man10 datory under subclause (I) shall allow

11 a household to switch, at the end of a

12 certification period, between the stand13 ard utility allowance and a deduction

14 based on the actual utility costs of the

15 household.

16 ‘‘(iv) AVAILABILITY OF ALLOWANCE TO

17 RECIPIENTS OF ENERGY ASSISTANCE.—

18 ‘‘(I) IN GENERAL.—Subject to

19 subclause (II), if a State agency elects

20 to use a standard utility allowance

21 that reflects heating or cooling costs,

22 the standard utility allowance shall be

23 made available to households receiving

24 a payment, or on behalf of which a

25 payment is made, under the Low-In-
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1 come Home Energy Assistance Act of

2 1981 (42 U.S.C. 8621 et seq.) or other

3 similar energy assistance program, if

4 the household still incurs out-of-pocket

5 heating or cooling expenses in excess of

6 any assistance paid on behalf of the

7 household to an energy provider.

8 ‘‘(II) SEPARATE ALLOWANCE.—A

9 State agency may use a separate

10 standard utility allowance for house11 holds on behalf of which a payment de12 scribed in subclause (I) is made, but

13 may not be required to do so.

14 ‘‘(III) STATES NOT ELECTING TO

15 USE SEPARATE ALLOWANCE.—A State

16 agency that does not elect to use a sep17 arate allowance but makes a single

18 standard utility allowance available to

19 households incurring heating or cooling

20 expenses (other than a household de21 scribed in subclause (I) or (II) of sub22 paragraph (C)(ii)) may not be re23 quired to reduce the allowance due to

24 the provision (directly or indirectly) of

25 assistance under the Low-Income
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1 Home Energy Assistance Act of 1981

2 (42 U.S.C. 8621 et seq.).

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

5 stamp program, assistance provided

6 under the Low-Income Home Energy

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

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

10 season for which the assistance was

11 provided.’’.

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

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

14 Under rules prescribed’’ and all that follows through ‘‘veri15 fies higher expenses’’.

16 SEC. 310. AMOUNT OF VEHICLE ASSET LIMITATION.

17 The first sentence of section 5(g)(2) of the Food Stamp

18 Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by striking

19 ‘‘through September 30, 1995’’ and all that follows through

20 ‘‘such date and on’’ and inserting ‘‘and shall be adjusted

21 on October 1, 1996, and’’.

22 SEC. 311. BENEFITS FOR ALIENS.

23 Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.

24 2014(i)) is amended—

25 (1) in the first sentence of paragraph (1)—
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1 (A) by inserting ‘‘or who executed such an

2 affidavit or similar agreement to enable the indi3 vidual to lawfully remain in the United States,’’

4 after ‘‘respect to such individual,’’; and

5 (B) by striking ‘‘for a period’’ and all that

6 follows through the period at the end and insert7 ing ‘‘until the end of the period ending on the

8 later of the date agreed to in the affidavit or

9 agreement or the date that is 5 years after the

10 date on which the individual was first lawfully

11 admitted into the United States following the

12 execution of the affidavit or agreement.’’; and

13 (2) in paragraph (2)—

14 (A) in subparagraph (C)(i), by striking ‘‘of

15 three years after entry into the United States’’

16 and inserting ‘‘determined under paragraph

17 (1)’’; and

18 (B) in subparagraph (D), by striking ‘‘of

19 three years after such alien’s entry into the Unit20 ed States’’ and inserting ‘‘determined under

21 paragraph (1)’’.

22 SEC. 312. DISQUALIFICATION.

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

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

25 Unless otherwise exempted by the provisions’’ and all that
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1 follows through the end of paragraph (1) and inserting the

2 following:

3 ‘‘(d) CONDITIONS OF PARTICIPATION.—

4 ‘‘(1) WORK REQUIREMENTS.—

5 ‘‘(A) IN GENERAL.—No physically and

6 mentally fit individual over the age of 15 and

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

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

11 and every 12 months thereafter, to register

12 for employment in a manner prescribed by

13 the Secretary;

14 ‘‘(ii) refuses without good cause to par15 ticipate in an employment and training

16 program under paragraph (4), to the extent

17 required by the State agency;

18 ‘‘(iii) refuses without good cause to ac19 cept an offer of employment, at a site or

20 plant not subject to a strike or lockout at

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

22 than the higher of—

23 ‘‘(I) the applicable Federal or

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

2 would have governed had the minimum

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

4 Fair Labor Standards Act of 1938 (29

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

6 the offer of employment;

7 ‘‘(iv) refuses without good cause to pro8 vide a State agency with sufficient informa9 tion to allow the State agency to determine

10 the employment status or the job availabil11 ity of the individual;

12 ‘‘(v) voluntarily and without good

13 cause—

14 ‘‘(I) quits a job; or

15 ‘‘(II) reduces work effort and,

16 after the reduction, the individual is

17 working less than 30 hours per week;

18 or

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

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

21 individual who is the head of a household be22 comes ineligible to participate in the food stamp

23 program under subparagraph (A), the household

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

25 ineligible to participate in the food stamp pro-
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1 gram for a period, determined by the State agen2 cy, that does not exceed the lesser of—

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

4 the individual determined under subpara5 graph (C); or

6 ‘‘(ii) 180 days.

7 ‘‘(C) DURATION OF INELIGIBILITY.—

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

9 that an individual becomes ineligible to

10 participate in the food stamp program

11 under subparagraph (A), the individual

12 shall remain ineligible until the later of—

13 ‘‘(I) the date the individual be14 comes eligible under subparagraph (A);

15 ‘‘(II) the date that is 1 month

16 after the date the individual became

17 ineligible; or

18 ‘‘(III) a date determined by the

19 State agency that is not later than 3

20 months after the date the individual

21 became ineligible.

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

23 time that an individual becomes ineligible

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

2 shall remain ineligible until the later of—

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

5 ‘‘(II) the date that is 3 months

6 after the date the individual became

7 ineligible; or

8 ‘‘(III) a date determined by the

9 State agency that is not later than 6

10 months after the date the individual

11 became ineligible.

12 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA13 TION.—The third or subsequent time that

14 an individual becomes ineligible to partici15 pate in the food stamp program under sub16 paragraph (A), the individual shall remain

17 ineligible until the later of—

18 ‘‘(I) the date the individual be19 comes eligible under subparagraph (A);

20 ‘‘(II) the date that is 6 months

21 after the date the individual became

22 ineligible;

23 ‘‘(III) a date determined by the

24 State agency; or
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1 ‘‘(IV) at the option of the State

2 agency, permanently.

3 ‘‘(D) ADMINISTRATION.—

4 ‘‘(i) GOOD CAUSE.—The Secretary

5 shall determine the meaning of good cause

6 for the purpose of this paragraph.

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

8 shall determine the meaning of voluntarily

9 quitting and reducing work effort for the

10 purpose of this paragraph.

11 ‘‘(iii) DETERMINATION BY STATE

12 AGENCY.—

13 ‘‘(I) IN GENERAL.—Subject to

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

15 a State agency shall determine—

16 ‘‘(aa) the meaning of any

17 term in subparagraph (A);

18 ‘‘(bb) the procedures for de19 termining whether an individual

20 is in compliance with a require21 ment under subparagraph (A);

22 and

23 ‘‘(cc) whether an individual

24 is in compliance with a require25 ment under subparagraph (A).
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1 ‘‘(II) NOT LESS RESTRICTIVE.—A

2 State agency may not determine a

3 meaning, procedure, or determination

4 under subclause (I) to be less restrictive

5 than a comparable meaning, proce6 dure, or determination under a State

7 program funded under part A of title

8 IV of the Social Security Act (42

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

10 ‘‘(iv) STRIKE AGAINST THE GOVERN11 MENT.—For the purpose of subparagraph

12 (A)(v), an employee of the Federal Govern13 ment, a State, or a political subdivision of

14 a State, who is dismissed for participating

15 in a strike against the Federal Government,

16 the State, or the political subdivision of the

17 State shall be considered to have voluntarily

18 quit without good cause.

19 ‘‘(v) SELECTING A HEAD OF HOUSE20 HOLD.—

21 ‘‘(I) IN GENERAL.—For the pur22 pose of this paragraph, the State agen23 cy shall allow the household to select

24 any adult parent of a child in the

25 household as the head of the household
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1 if all adult household members making

2 application under the food stamp pro3 gram agree to the selection.

4 ‘‘(II) TIME FOR MAKING DESIGNA5 TION.—A household may designate the

6 head of the household under subclause

7 (I) each time the household is certified

8 for participation in the food stamp

9 program, but may not change the des10 ignation during a certification period

11 unless there is a change in the com12 position of the household.

13 ‘‘(vi) CHANGE IN HEAD OF HOUSE14 HOLD.—If the head of a household leaves the

15 household during a period in which the

16 household is ineligible to participate in the

17 food stamp program under subparagraph

18 (B)—

19 ‘‘(I) the household shall, if other20 wise eligible, become eligible to partici21 pate in the food stamp program; and

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

23 becomes the head of another household,

24 the household that becomes headed by

25 the individual shall become ineligible
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1 to participate in the food stamp pro2 gram for the remaining period of ineli3 gibility.’’.

4 (b) CONFORMING AMENDMENT.—

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

6 Act (7 U.S.C. 2026(b)(2)) is amended by striking

7 ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.

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

9 amended by striking subsection (f) and inserting the

10 following:

11 ‘‘(f) DISQUALIFICATION.—An individual or a house12 hold may become ineligible under section 6(d)(1) to partici13 pate in the food stamp program for failing to comply with

14 this section.’’.

15 SEC. 313. CARETAKER EXEMPTION.

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

17 U.S.C. 2015(d)(2)) is amended by striking subparagraph

18 (B) and inserting the following: ‘‘(B) a parent or other

19 member of a household with responsibility for the care of

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

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

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

23 SEC. 314. EMPLOYMENT AND TRAINING.

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

25 Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—
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1 (1) in subparagraph (A)—

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

3 1987, each’’ and inserting ‘‘Each’’;

4 (B) by inserting ‘‘work,’’ after ‘‘skills, train5 ing,’’; and

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

7 ‘‘Each component of an employment and train8 ing program carried out under this paragraph

9 shall be delivered through the statewide workforce

10 development system established in section 711 of

11 the Work Opportunity Act of 1995, unless the

12 component is not available locally through the

13 statewide workforce development system.’’;

14 (2) in subparagraph (B)—

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

16 striking the colon at the end and inserting the

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

18 retain the option to apply employment require19 ments prescribed under this subparagraph to a

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

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

22 and conditions’’ and all that follows through

23 ‘‘time of application’’; and

24 (C) in clause (iv)—
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1 (i) by striking subclauses (I) and (II);

2 and

3 (ii) by redesignating subclauses (III)

4 and (IV) as subclauses (I) and (II), respec5 tively;

6 (3) in subparagraph (D)—

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

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

9 days or less’’;

10 (B) in clause (ii), by striking ‘‘but with re11 spect’’ and all that follows through ‘‘child care’’;

12 and

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

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

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

16 be valid’’;

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

18 sentence;

19 (5) in subparagraph (G)—

20 (A) by striking ‘‘(G)(i) The State’’ and in21 serting ‘‘(G) The State’’; and

22 (B) by striking clause (ii);

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

24 The Secretary’’ and all that follows through ‘‘(ii) Fed25 eral funds’’ and inserting ‘‘(H) Federal funds’’;
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1 (7) in subparagraph (I)(i)(II), by striking ‘‘, or

2 was in operation,’’ and all that follows through ‘‘So3 cial Security Act’’ and inserting the following: ‘‘), ex4 cept that no such payment or reimbursement shall ex5 ceed the applicable local market rate’’;

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

7 and inserting the following:

8 ‘‘(K) LIMITATION ON FUNDING.—Notwith9 standing any other provision of this paragraph,

10 the amount of funds a State agency uses to carry

11 out this paragraph (including under subpara12 graph (I)) for participants who are receiving

13 benefits under a State program funded under

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

15 U.S.C. 601 et seq.) shall not exceed the amount

16 of funds the State agency used in fiscal year

17 1995 to carry out this paragraph for partici18 pants who were receiving benefits in fiscal year

19 1995 under a State program funded under part

20 A of title IV of the Act (42 U.S.C. 601 et seq.).’’;

21 and

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

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

24 (9) in subparagraph (L) (as redesignated by

25 paragraph (8)(B))—
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1 (A) by striking ‘‘(L)(i) The Secretary’’ and

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

3 (B) by striking clause (ii).

4 (b) EFFECTIVE DATE.—The amendment made by sub5 section (a)(1)(C) shall take effect—

6 (1) in a State described in section 815(b)(1), on

7 July 1, 1997; and

8 (2) in any other State, on July 1, 1998.

9 (c) FUNDING.—Section 16(h) of the Act (7 U.S.C.

10 2025(h)) is amended by striking ‘‘(h)(1)(A) The Secretary’’

11 and all that follows through the end of paragraph (1) and

12 inserting the following:

13 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PRO14 GRAMS.—

15 ‘‘(1) IN GENERAL.—

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

17 and training programs, the Secretary shall re18 serve for allocation to State agencies from funds

19 made available for each fiscal year under section

20 18(a)(1) the amount of—

21 ‘‘(i) for fiscal year 1996, $77,000,000;

22 ‘‘(ii) for fiscal year 1997, $80,000,000;

23 ‘‘(iii) for fiscal year 1998, $83,000,000;

24 ‘‘(iv) for fiscal year 1999, $86,000,000;

25 ‘‘(v) for fiscal year 2000, $89,000,000;
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1 ‘‘(vi) for fiscal year 2001, $92,000,000;

2 and

3 ‘‘(vii) for fiscal year 2002,

4 $95,000,000.

5 ‘‘(B) ALLOCATION.—The Secretary shall al6 locate the amounts reserved under subparagraph

7 (A) among the State agencies using a reasonable

8 formula (as determined by the Secretary) that

9 gives consideration to the population in each

10 State affected by section 6(n).

11 ‘‘(C) REALLOCATION.—

12 ‘‘(i) NOTIFICATION.—A State agency

13 shall promptly notify the Secretary if the

14 State agency determines that the State

15 agency will not expend all of the funds allo16 cated to the State agency under subpara17 graph (B).

18 ‘‘(ii) REALLOCATION.—On notification

19 under clause (i), the Secretary shall reallo20 cate the funds that the State agency will not

21 expend as the Secretary considers appro22 priate and equitable.

23 ‘‘(D) MINIMUM ALLOCATION.—Notwith24 standing subparagraphs (A) through (C), the

25 Secretary shall ensure that each State agency op-
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1 erating an employment and training program

2 shall receive not less than $50,000 in each fiscal

3 year.’’.

4 (d) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2)

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

6 before the period at the end the following: ‘‘, including the

7 costs for case management and casework to facilitate the

8 transition from economic dependency to self-sufficiency

9 through work’’.

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

11 2025(h)) is amended—

12 (1) in paragraph (5)—

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

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

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

16 (2) by striking paragraph (6).

17 SEC. 315. COMPARABLE TREATMENT FOR DISQUALIFICA18 TION.

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

20 of 1977 (7 U.S.C. 2015) is amended—

21 (1) by redesignating subsection (i) (as added by

22 section 106) as subsection (o); and

23 (2) by inserting after subsection (h) the follow24 ing:
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1 ‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA2 TION.—

3 ‘‘(1) IN GENERAL.—If a disqualification is im4 posed on a member of a household for a failure of the

5 member to perform an action required under a Fed6 eral, State, or local law relating to a welfare or pub7 lic assistance program, the State agency may impose

8 the same disqualification on the member of the house9 hold under the food stamp program.

10 ‘‘(2) RULES AND PROCEDURES.—If a disquali11 fication is imposed under paragraph (1) for a failure

12 of an individual to perform an action required under

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

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

15 rules and procedures that apply under part A of title

16 IV of the Act to impose the same disqualification

17 under the food stamp program.

18 ‘‘(3) APPLICATION AFTER DISQUALIFICATION PE19 RIOD.—A member of a household disqualified under

20 paragraph (1) may, after the disqualification period

21 has expired, apply for benefits under this Act and

22 shall be treated as a new applicant, except that a

23 prior disqualification under subsection (d) shall be

24 considered in determining eligibility.’’.
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1 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

2 Act (7 U.S.C. 2020(e)) is amended—

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

4 end; and

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

6 ‘‘(26) the guidelines the State agency uses in car7 rying out section 6(i);’’.

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

9 the Act (7 U.S.C. 2015(d)(2)(A)) is amended by striking

10 ‘‘that is comparable to a requirement of paragraph (1)’’.

11 SEC. 316. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

13 2015) (as amended by section 315) is further amended by

14 inserting after subsection (i) the following:

15 ‘‘(j) CUSTODIAL PARENT’S COOPERATION WITH CHILD

16 SUPPORT AGENCIES.—

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

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

19 or adoptive parent or other individual (collectively re20 ferred to in this subsection as ‘the individual’) who is

21 living with and exercising parental control over a

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

23 shall be eligible to participate in the food stamp pro24 gram unless the individual cooperates with the State

25 agency administering the program established under
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1 part D of title IV of the Social Security Act (42

2 U.S.C. 651 et seq.)—

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

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

5 ‘‘(B) in obtaining support for—

6 ‘‘(i) the child; or

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

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

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

10 good cause is found for refusing to cooperate, as deter11 mined by the State agency in accordance with stand12 ards prescribed by the Secretary in consultation with

13 the Secretary of Health and Human Services. The

14 standards shall take into consideration circumstances

15 under which cooperation may be against the best in16 terests of the child.

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

18 payment of a fee or other cost for services provided

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

20 (42 U.S.C. 651 et seq.).

21 ‘‘(k) NON-CUSTODIAL PARENT’S COOPERATION WITH

22 CHILD SUPPORT AGENCIES.—

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

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

25 or identified non-custodial parent of a child under the
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1 age of 18 (referred to in this subsection as ‘the indi2 vidual’) shall not be eligible to participate in the food

3 stamp program if the individual refuses to cooperate

4 with the State agency administering the program es5 tablished under part D of title IV of the Social Secu6 rity Act (42 U.S.C. 651 et seq.)—

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

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

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

10 ‘‘(2) REFUSAL TO COOPERATE.—

11 ‘‘(A) GUIDELINES.—The Secretary, in con12 sultation with the Secretary of Health and

13 Human Services, shall develop guidelines on

14 what constitutes a refusal to cooperate under

15 paragraph (1).

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

17 develop procedures, using guidelines developed

18 under subparagraph (A), for determining wheth19 er an individual is refusing to cooperate under

20 paragraph (1).

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

22 payment of a fee or other cost for services provided

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

24 (42 U.S.C. 651 et seq.).
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1 ‘‘(4) PRIVACY.—The State agency shall provide

2 safeguards to restrict the use of information collected

3 by a State agency administering the program estab4 lished under part D of title IV of the Social Security

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

6 information is collected.’’.

7 SEC. 317. DISQUALIFICATION FOR CHILD SUPPORT AR8 REARS.

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

10 2015) (as amended by section 316) is further amended by

11 inserting after subsection (k) the following:

12 ‘‘(l) DISQUALIFICATION FOR CHILD SUPPORT AR13 REARS.—

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

15 agency, except as provided in paragraph (2), no indi16 vidual shall be eligible to participate in the food

17 stamp program as a member of any household during

18 any month that the individual is delinquent in any

19 payment due under a court order for the support of

20 a child of the individual.

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

22 apply if—

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

24 delay payment; or
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1 ‘‘(B) the individual is complying with a

2 payment plan approved by a court or the State

3 agency designated under part D of title IV of the

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

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

6 SEC. 318. PERMANENT DISQUALIFICATION FOR PARTICI7 PATING IN 2 OR MORE STATES.

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

9 2015) (as amended by section 317) is further amended by

10 inserting after subsection (l) the following:

11 ‘‘(m) PERMANENT DISQUALIFICATION FOR PARTICI12 PATING IN 2 OR MORE STATES.—An individual shall be

13 permanently ineligible to participate in the food stamp pro14 gram as a member of any household if the individual is

15 found by a State agency to have made, or is convicted in

16 Federal or State court of having made, a fraudulent state17 ment or representation with respect to the place of residence

18 of the individual in order to receive benefits simultaneously

19 from 2 or more States under the food stamp program.’’.

20 SEC. 319. WORK REQUIREMENT.

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

22 of 1977 (7 U.S.C. 2015) (as amended by section 318) is

23 further amended by inserting after subsection (m) the fol24 lowing:

25 ‘‘(n) WORK REQUIREMENT.—
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1 ‘‘(1) DEFINITION OF WORK PROGRAM.—In this

2 subsection, the term ‘work program’ means—

3 ‘‘(A) a program under the Job Training

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

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

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

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

8 operated or supervised by a State or political

9 subdivision of a State that meets standards ap10 proved by the Governor of the State, including a

11 program under section 6(d)(4) other than a job

12 search program or a job search training program

13 under clause (i) or (ii) of section 6(d)(4)(B).

14 ‘‘(2) WORK REQUIREMENT.—No individual shall

15 be eligible to participate in the food stamp program

16 as a member of any household if, during the preced17 ing 12-month period, the individual received food

18 stamp benefits for not less than 6 months during

19 which the individual did not—

20 ‘‘(A) work 20 hours or more per week, aver21 aged monthly; or

22 ‘‘(B) participate in and comply with the re23 quirements of a work program for 20 hours or

24 more per week, as determined by the State agen25 cy.
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1 ‘‘(3) EXCEPTION.—Paragraph (2) shall not

2 apply to an individual if the individual is—

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

4 ‘‘(B) medically certified as physically or

5 mentally unfit for employment;

6 ‘‘(C) a parent or other member of a house7 hold with responsibility for a dependent child; or

8 ‘‘(D) otherwise exempt under section

9 6(d)(2).

10 ‘‘(4) WAIVER.—

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

12 State agency, the Secretary may waive the ap13 plicability of paragraph (2) to any group of in14 dividuals in the State if the Secretary makes a

15 determination that the area in which the indi16 viduals reside—

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

18 8 percent; or

19 ‘‘(ii) does not have a sufficient number

20 of jobs to provide employment for the indi21 viduals.

22 ‘‘(B) REPORT.—The Secretary shall report

23 the basis for a waiver under subparagraph (A)

24 to the Committee on Agriculture of the House of
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1 Representatives and the Committee on Agri2 culture, Nutrition, and Forestry of the Senate.’’.

3 (b) TRANSITION PROVISION.—Prior to October 1,

4 1996, the term ‘‘preceding 12-month period’’ in section

5 6(n)(2) of the Food Stamp Act of 1977 (as amended by sub6 section (a)) means the preceding period that begins on Octo7 ber 1, 1995.

8 SEC. 319A. DISQUALIFICATION OF FLEEING FELONS.

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

10 2015), as amended by section 319(a), is further amended

11 by adding at the end the following new subsection:

12 ‘‘(o) No member of a household who is otherwise eligi13 ble to participate in the food stamp program shall be eligi14 ble to participate in the program as a member of that or

15 any other household during any period during which the

16 individual is—

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

18 confinement after conviction, under the laws of the

19 place from which the individual flees, for a crime, or

20 attempt to commit a crime, which is a felony under

21 the laws of the place from which the individual flees,

22 or which, in the case of the State of New Jersey, is

23 a high misdemeanor under the laws of such State; or

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

25 imposed under Federal or State law.’’.
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1 SEC. 320. ELECTRONIC BENEFIT TRANSFERS.

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

3 of 1977 (7 U.S.C. 2016) is amended by adding at the end

4 the following:

5 ‘‘(j) ELECTRONIC BENEFIT TRANSFERS.—

6 ‘‘(1) APPLICABLE LAW.—

7 ‘‘(A) IN GENERAL.—Disclosures, protections,

8 responsibilities, and remedies established by the

9 Federal Reserve Board under section 904 of the

10 Electronic Fund Transfer Act (15 U.S.C. 1693b)

11 shall not apply to benefits under this Act deliv12 ered through any electronic benefit transfer sys13 tem.

14 ‘‘(B) DEFINITION OF ELECTRONIC BENEFIT

15 TRANSFER SYSTEM.—In this paragraph, the

16 term ‘electronic benefit transfer system’ means a

17 system under which a governmental entity dis18 tributes benefits under this Act or other benefits

19 or payments by establishing accounts to be

20 accessed by recipients of the benefits electroni21 cally, including through the use of an automated

22 teller machine, a point-of-sale terminal, or an

23 intelligent benefit card.

24 ‘‘(2) CHARGING FOR ELECTRONIC BENEFIT

25 TRANSFER CARD REPLACEMENT.—
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1 ‘‘(A) IN GENERAL.—A State agency may

2 charge an individual for the cost of replacing a

3 lost or stolen electronic benefit transfer card.

4 ‘‘(B) REDUCING ALLOTMENT.—A State

5 agency may collect a charge imposed under sub6 paragraph (A) by reducing the monthly allot7 ment of the household of which the individual is

8 a member.

9 ‘‘(3) OPTIONAL PHOTOGRAPHIC IDENTIFICA10 TION.—

11 ‘‘(A) IN GENERAL.—A State agency may re12 quire that an electronic benefit card contain a

13 photograph of 1 or more members of a household.

14 ‘‘(B) OTHER AUTHORIZED USERS.—If a

15 State agency requires a photograph on an elec16 tronic benefit card under subparagraph (A), the

17 State agency shall establish procedures to ensure

18 that any other appropriate member of the house19 hold or any authorized representative of the

20 household may utilize the card.

21 ‘‘(4) STATE ELECTRONIC BENEFITS TRANSFER

22 OPTIONS IN GENERAL.—States may implement elec23 tronic benefit transfer systems under the authorities

24 and conditions set forth in section 7(i) and related
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1 provisions, or the authorities and conditions set forth

2 in paragraph (5).

3 ‘‘(5) ELECTRONIC BENEFITS TRANSFER CARD

4 SYSTEMS ASSISTANCE OPTION.—If a State notifies the

5 Secretary of its intention to convert to a state-wide

6 electronic benefits transfer card system, or a multiple7 State regional electronic benefits transfer card system

8 with other state-wide systems, within three years of

9 the date of enactment of this paragraph, the Secretary

10 shall allow the establishment of an electronic benefits

11 transfer card system within the State under the fol12 lowing terms—

13 ‘‘(A) COORDINATION AND LAW ENFORCE14 MENT.—

15 ‘‘(i) CONVERSION.—The Secretary shall

16 coordinate with, and assist, the State or

17 States in a regional system in eliminating

18 the use of food stamp coupons and the full

19 conversion to an electronic benefits transfer

20 card system within three years after the de21 cision of the State to convert to the system

22 set forth in this paragraph.

23 ‘‘(ii) OPERATIONS.—States shall take

24 into account generally accepted standard
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1 operating rules for carrying out this para2 graph, based on—

3 ‘‘(I) commercial electronic funds

4 transfer technology;

5 ‘‘(II) the need to permit interstate

6 operation and law enforcement mon7 itoring; and

8 ‘‘(III) the need to permit monitor9 ing and investigations by authorized

10 law enforcement agencies.

11 ‘‘(iii) LAW ENFORCEMENT.—The Sec12 retary, in consultation with the Inspector

13 General of the United States Department of

14 Agriculture and the United States Secret

15 Service, shall inform the State of proper se16 curity features, good management tech17 niques, and methods of deterring counter18 feiting.

19 ‘‘(B) PAPER AND OTHER ALTERNATIVE BEN20 EFIT TRANSFER SYSTEMS.—Beginning on the

21 date of the implementation of the electronic bene22 fits transfer card system in a State under au23 thority of this paragraph, the Secretary shall

24 also permit the use of paper-based and other ben25 efit transfer approaches for providing benefits to
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1 food stamp households in the case of special-need

2 retail food stores.

3 ‘‘(C) STATE-PROVIDED EQUIPMENT.—

4 ‘‘(i) ELECTRONIC BENEFITS TRANSFER

5 CARD SYSTEM.—

6 ‘‘(I) IN GENERAL.—A retail food

7 store that does not have point-of-sale

8 electronic benefits transfer equipment,

9 and does not intend to obtain point-of10 sale electronic benefits transfer equip11 ment in the near future, shall be pro12 vided by a State agency with, or reim13 bursed for, the costs of purchasing and

14 installing single-function, point-of-sale

15 equipment, and related telephone

16 equipment, which shall be used only for

17 Federal and State assistance programs.

18 ‘‘(II) EQUIPMENT REQUIRE19 MENTS.—Equipment provided under

20 this subparagraph shall be capable of

21 interstate operations and based on gen22 erally accepted commercial electronic

23 benefits transfer operating principles

24 that permit interstate law enforcement

25 monitoring and shall be capable of
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1 providing a recipient with access to

2 multiple Federal and State benefit pro3 grams.

4 ‘‘(ii) PAPER AND OTHER ALTERNATIVE

5 BENEFIT SYSTEMS.—A special-need retail

6 store that does not obtain, and does not in7 tend to obtain in the near future, point-of8 sale paper-based or other alternative bene9 fits transfer equipment shall be provided by

10 the State agency or compensated for the

11 costs of purchasing such equipment which

12 shall be used only for Federal and State as13 sistance programs. Such paper systems in14 cludes using the electronic benefit transfer

15 card to make an impression on a point-of16 sale paper document.

17 ‘‘(iii) RETURN OF ELECTRONIC BENE18 FITS TRANSFER EQUIPMENT.—A retail food

19 store may at any time return the equipment

20 to the State and obtain equipment with

21 funds of the store.

22 ‘‘(iv) COST TO STORES.—The cost of

23 documents or systems that may be required

24 pursuant to this paragraph may not be im-
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1 posed upon a retail food store participating

2 in the program.

3 ‘‘(D) CHARGING FOR ELECTRONIC BENEFITS

4 TRANSFER CARD REPLACEMENT.—

5 ‘‘(i) IN GENERAL.—Under this para6 graph, the Secretary shall reimburse State

7 agencies for the costs of purchasing and is8 suing electronic benefits transfer cards; and

9 ‘‘(ii) REPLACEMENT CARDS.—Under

10 this paragraph, the Secretary may charge a

11 household through allotment reduction or

12 otherwise for the cost of replacing a lost or

13 stolen electronic benefit transfer card, unless

14 the card was stolen by force or threat of

15 force.

16 ‘‘(E) TRANSITION FUND.—At the beginning

17 of each fiscal year during the 10-year period be18 ginning with the first full fiscal year following

19 the date of enactment of this paragraph, the Sec20 retary shall place the amount of the funds gen21 erated by the transaction fees provided in sub22 paragraph (F) into an account, to be known as

23 the Transition Conversion Account, to remain

24 available until expended.

25 ‘‘(F) TRANSACTION FEE.—
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1 (i) During the 10-year period begin2 ning on the date of enactment of this para3 graph, the Secretary shall, to the extent nec4 essary to not increase costs to the Secretary

5 under this paragraph, impose a transaction

6 fee of not more than 2 cents for each trans7 action made at a retail food store using an

8 electronic benefits transfer card authorized

9 by this paragraph, to be taken from the ben10 efits of the household using the card, except

11 that no household shall be assessed more

12 than 16 cents under this paragraph per

13 month. The Secretary may reduce the fee on

14 a household receiving the maximum benefits

15 available under the program.

16 ‘‘(ii) FEES LIMITED TO USES.—A fee

17 imposed under clause (i) shall be in an

18 amount not greater than is necessary to

19 carry out the uses of the Transition Conver20 sion Account in subparagraph (G).

21 ‘‘(G)(i)DUTY OF SECRETARY.—Out of funds

22 in the Transition Conversion Account, and, only

23 to the extent necessary, out of funds provided to

24 carry out this Act, the Secretary shall provide

25 funds to provide transition assistance and funds
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1 to States participating under this paragraph

2 for—

3 ‘‘(I) the reasonable cost of purchasing

4 and installing, or for the cost of reimburs5 ing a retail food store for the cost of pur6 chasing and installing single-function,

7 point-of-sale equipment described in sub8 paragraph (C), to be used only for Federal

9 and State assistance programs;

10 ‘‘(II) the reasonable start-up cost of

11 purchasing and installing telephone equip12 ment or connections for single-function,

13 point-of-sale equipment, to be used only for

14 Federal and State assistance programs; and

15 ‘‘(III) assistance to modify an elec16 tronic benefits transfer system implemented

17 by a State prior to the date of enactment of

18 this paragraph to the extent necessary to

19 operate statewide or multi-statewide under

20 this paragraph.

21 ‘‘(ii) USE OF ACCOUNT.—The Secretary

22 shall use funds in the Transition Conversion Ac23 count in implementing this paragraph and to—
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1 ‘‘(I) provide start-up training for State

2 agencies, employees and recipients based on

3 a plan approved by Secretary;

4 ‘‘(II) pay for other one-time reasonable

5 costs of converting to an electronic benefits

6 transfer system that is capable of interstate

7 functions and is capable of being monitored

8 by law enforcement agencies;

9 ‘‘(III) pay for liabilities assumed by

10 the Secretary under subparagraph (I);

11 ‘‘(IV) pay other liabilities related to

12 the electronic benefits transfer system estab13 lished under this paragraph that are in14 curred by the Secretary; and

15 ‘‘(V) expand and implement a nation16 wide program to monitor compliance with

17 program rules related to retail food stores

18 and the electronic delivery of benefits under

19 this Act.

20 ‘‘(H) COMPETITIVE BIDDING.—In purchas21 ing point-of-sale equipment described in sub22 paragraph (C), electronic benefits transfer cards,

23 and telephone equipment or connections referred

24 to in subparagraph (G), States shall use com25 petitive bidding systems to ensure that they ob-
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1 tain the lowest prices for the equipment and

2 cards that meet specifications. States shall not

3 enter into purchase agreements which condition

4 the purchase of additional services or equipment

5 from suppliers of equipment or cards under this

6 paragraph. The Secretary shall monitor the sale

7 prices for such equipment and cards and the In8 spector General shall investigate possible wrong9 doing or fraud as appropriate.

10 ‘‘(I) LIABILITY OR REPLACEMENT BENEFITS

11 FOR UNAUTHORIZED USE OF EBT CARDS.—

12 ‘‘(i) IN GENERAL.—The Secretary shall

13 require State agencies that choose to imple14 ment an electronic benefits transfer system

15 under this paragraph to advise any house16 hold participating in the food stamp pro17 gram how to promptly report a lost, de18 stroyed, damaged, improperly manufac19 tured, dysfunctional, or stolen electronic

20 benefits transfer card.

21 ‘‘(ii) REGULATIONS.—Under this para22 graph, the Secretary shall issue regulations

23 providing that—

24 ‘‘(I) a household shall not receive

25 any replacement for benefits lost due to
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1 the unauthorized use of an electronic

2 benefits transfer card; and

3 ‘‘(II) a household shall not be lia4 ble for any amounts in excess of the

5 benefits available to the household at

6 the time of the unauthorized use.

7 ‘‘(iii) SPECIAL LOSSES.—Notwith8 standing clause (ii), under this paragraph a

9 household shall receive a replacement for

10 any benefits lost if the loss was caused by—

11 ‘‘(I) force or the threat of force;

12 ‘‘(II) unauthorized use of the card

13 after the State agency receives notice

14 that the card was lost or stolen; or

15 ‘‘(III) a system error or malfunc16 tion, fraud, abuse, negligence, or mis17 take by the service provider, the card

18 issuing agency, or the State agency, or

19 an inaccurate execution of a trans20 action by the service provider:

21 Provided, That with respect to losses described in

22 subclause (II) and (III), the State shall reimburse the

23 Secretary. Nothing in subclause (III) shall prevent a

24 State from obtaining reimbursement from the service

25 provider or the card issuing agency for system error
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1 or malfunction, fraud, abuse, negligence, or mistake

2 by such service provider or card issuing agency.

3 ‘‘(J) ELIMINATION OF FOOD STAMP COU4 PONS.—

5 ‘‘(i) IN GENERAL.—Except as provided

6 in clauses (ii) and (iii) and notwithstand7 ing any other provision of this Act, effective

8 beginning on the date 3 years after the date

9 a chief executive officer of a State informs

10 the Secretary that the State intends to im11 plement an electronic benefits transfer sys12 tem authorized by this paragraph, the Sec13 retary shall not provide any food stamp

14 coupons to the State.

15 ‘‘(ii) EXCEPTIONS.—

16 ‘‘(I) EXTENSION.—Clause (i) shall

17 not apply to the extent that the chief

18 executive officer of a State determines

19 that an extension is necessary and so

20 notifies the Secretary in writing, ex21 cept that the extension shall not extend

22 beyond 5 years after the date that a

23 chief executive officer of a State in24 forms the secretary of the decision to
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1 implement an electronic benefits trans2 fer system under this paragraph.

3 ‘‘(II) WAIVER.—In addition to

4 any extension under subclause (I), the

5 Secretary may grant a waiver to a

6 State to phase-in or delay, implemen7 tation of electronic benefits transfer for

8 good cause shown by the State, except

9 that the waiver shall not extend for

10 more than 6 months.

11 ‘‘(iii) DISASTER RELIEF.—The Sec12 retary may provide food stamp coupons for

13 disaster relief under section 5(h).

14 ‘‘(K) SPECIAL RULE.—A State agency may

15 require a household to explain the circumstances

16 regarding each occasion that—

17 ‘‘(i) the household reports a lost or sto18 len electronic benefits transfer card; and

19 ‘‘(ii) the card was used for an unau20 thorized transaction.

21 In the appropriate circumstances, the State

22 agency shall investigate and ensure that appro23 priate cases are acted upon either through ad24 ministrative disqualification or referral to courts
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1 of appropriate jurisdiction, or referral for pros2 ecution.

3 ‘‘(L) ESTABLISHMENT.—In carrying out

4 this paragraph, the States shall—

5 ‘‘(i) take into account the needs of law

6 enforcement personnel and the need to per7 mit and encourage further technological de8 velopments and scientific advances;

9 ‘‘(ii) ensure that security is protected

10 by appropriate means such as requiring

11 that a personal identification number be is12 sued with each electronic benefits transfer

13 card to help protect the integrity of the pro14 gram;

15 ‘‘(iii) provide for—

16 ‘‘(I) recipient protection regard17 ing privacy, ease of use, and access to

18 and service in retail food stores;

19 ‘‘(II) financial accountability and

20 the capability of the system to handle

21 interstate operations and interstate

22 monitoring by law enforcement agen23 cies including the Inspector General of

24 the Department of Agriculture;
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1 ‘‘(III) rules prohibiting store par2 ticipation unless any appropriate

3 equipment necessary to permit house4 holds to purchase food with the benefits

5 issued under the Food Stamp Act of

6 1977 is operational and reasonably

7 available; and

8 ‘‘(IV) rules providing for monitor9 ing and investigation by an authorized

10 law enforcement agency including the

11 Inspector General of the Department of

12 Agriculture.

13 ‘‘(M) ADDITIONAL EMPLOYEES.—The Sec14 retary shall assign additional employees to in15 vestigate and adequately monitor compliance

16 with program rules related to electronic benefits

17 transfer systems and retail food store participa18 tion.

19 ‘‘(N) REQUEST FOR STATEMENTS.—Under

20 this paragraph on the request of a household, the

21 State, through a person issuing benefits to the

22 household, shall provide once per month a state23 ment of benefit transfers and balances for such

24 household for the month preceding the request.

25 ‘‘(O) ERRORS.—Under this paragraph:
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1 ‘‘(i) IN GENERAL.—States shall design

2 systems to timely resolve disputes over al3 leged errors.

4 ‘‘(ii) CORRECTED ERRORS.—House5 holds able to obtain corrections of errors

6 under this subparagraph shall not be enti7 tled to a fair hearing regarding the resolved

8 dispute.

9 ‘‘(P) APPLICABLE LAW.—For purposes of

10 this Act, fraud and related activities related to

11 electronic benefits transfer shall be governed by

12 section 15 of this Act (U.S.C. 2024) and section

13 1029 of title 18, United States Code, in addition

14 to any other applicable law.

15 ‘‘(Q) DEFINITIONS.—For the purpose of this

16 paragraph:

17 ‘‘(i) ELECTRONIC BENEFITS TRANSFER

18 CARD SYSTEM.—The term ‘electronic bene19 fits transfer card system’ means a system to

20 support transactions conducted with elec21 tronic benefits transfer cards, paper, or

22 other alternative benefits transfer systems

23 approved by the Secretary for the provision

24 of program benefits in accordance with this

25 paragraph.
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1 ‘‘(ii) RETAIL FOOD STORE.—The term

2 ‘retail food store’ means a retail food store,

3 a farmer’s market, or a house-to-house trade

4 route authorized to participate in the food

5 stamp program.

6 ‘‘(iii) SPECIAL-NEED RETAIL FOOD

7 STORE.—The term ‘special-need retail food

8 store’ means—

9 ‘‘(I) a retail food store located in

10 a very rural area;

11 ‘‘(II) a retail food store without

12 access to dependable electricity or regu13 lar telephone service; or

14 ‘‘(III) a farmers’ market or house15 to-house trade route that is authorized

16 to participate in the food stamp pro17 gram.

18 ‘‘(R) LEAD ROLE OF INDUSTRY AND

19 STATES.—The Secretary shall consult with the

20 Secretary of the Treasury, the Secretary of

21 Health and Human Services, the Inspector Gen22 eral of the United States Department of Agri23 culture, the United States Secret Service, the Na24 tional Governor’s Association, the Food Market25 ing Institute, the National Association of Con-
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1 venience Stores, the American Public Welfare As2 sociation, the National Conference of State Legis3 latures, the American Bankers Association, the

4 financial services community, State agencies,

5 and food advocates to obtain information helpful

6 to retail stores, the financial services industry,

7 and States in the conversion to electronic benefits

8 transfer, including information regarding—

9 ‘‘(i) the degree to which an electronic

10 benefits transfer system could be easily inte11 grated with commercial networks;

12 ‘‘(ii) the usefulness of appropriate elec13 tronic benefits transfer security features and

14 local management controls, including fea15 tures in an electronic benefits transfer card

16 to deter counterfeiting of the card;

17 ‘‘(iii) the use of laser scanner tech18 nology with electronic benefits transfer tech19 nology so that only eligible food items can

20 be purchased by food stamp participants in

21 stores that use scanners;

22 ‘‘(iv) how to maximize technology that

23 uses data available from an electronic bene24 fits transfer system to identify fraud and

25 allow law enforcement personnel to quickly
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1 identify or target a suspected or actual pro2 gram violator;

3 ‘‘(v) means of ensuring the confiden4 tiality of personal information in electronic

5 benefits transfer systems and the applicabil6 ity of section 552a of title 5, United States

7 Code, to electronic benefits transfer systems;

8 ‘‘(vi) the best approaches for maximiz9 ing the use of then current point-of-sale ter10 minals and systems to reduce costs; and

11 ‘‘(vii) the best approaches for maximiz12 ing the use of electronic benefits transfer

13 systems for multiple Federal and State ben14 efit programs so as to achieve the highest

15 cost savings possible through the implemen16 tation of electronic benefits transfer sys17 tems.’’.

18 (b) CONFORMING AMENDMENTS.—

19 (1) Section 3 of the Food Stamp Act of 1977 (42

20 U.S.C. 2012) is amended—

21 (A) in subsection (a), by striking ‘‘coupons’’

22 and inserting ‘‘benefits’’;

23 (B) in the first sentence of subsection (c), by

24 striking ‘‘authorization cards’’ and inserting ‘‘al25 lotments’’;
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1 (C) in subsection (d), by striking ‘‘the pro2 visions of this Act’’ and inserting ‘‘sections 5(h)

3 and 7’’;

4 (D) in subsection (e)—

5 (i) by striking ‘‘Coupon issuer’’ and

6 inserting ‘‘Benefit issuer’’; and

7 (ii) by striking ‘‘coupons’’ and insert8 ing ‘‘benefits’’;

9 (E) in the last sentence of subsection (i), by

10 striking ‘‘coupons’’ and inserting ‘‘allotments’’;

11 and

12 (F) by adding at the end the following new

13 subsection:

14 ‘‘(v) ‘Electronic benefits transfer card’

15 means a card issued to a household partici16 pating in the program that is used to pur17 chase food.

18 (2) Section 4(a) of such Act (7 U.S.C. 2013(a))

19 is amended—

20 (A) in the first sentence by inserting ‘‘and

21 to funds made available under section 7’’ after

22 ‘‘this Act’’.

23 (B) in the first and second sentences, by

24 striking ‘‘coupons’’ each place it appears and in-
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1 serting ‘‘electronic benefits transfer cards or cou2 pons’’; and

3 (C) by striking the third sentence and in4 serting the following new sentence: ‘‘The Sec5 retary, through the facilities of the Treasury of

6 the United States, shall reimburse the stores for

7 food purchases made with electronic benefits

8 transfer cards or coupons provided under this

9 Act.’’.

10 (3) The first sentence of section 6(b)(1) of such

11 Act (7 U.S.C. 2015(b)(1)) is amended—

12 (A) by striking ‘‘coupons or authorization

13 cards’’ and inserting ‘‘electronic benefits transfer

14 cards, coupons, or authorization cards’’; and

15 (B) in clauses (ii) and (iii), by inserting

16 ‘‘or electronic benefits transfer cards’’ after ‘‘cou17 pons’’ each place it appears.

18 (4) Section 7 of such Act (7 U.S.C. 2016) is

19 amended—

20 (A) by striking the section heading and in21 serting the following new section heading: ‘‘IS22 SUANCE AND USE OF ELECTRONIC BENE23 FITS TRANSFER CARDS OR COUPONS’’;

24 (B) in subsection (a), by striking ‘‘Cou25 pons’’ and all that follows through ‘‘necessary,
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1 and’’ and inserting ‘‘Electronic benefits transfer

2 cards or coupons’’;

3 (C) in subsection (b), by striking ‘‘Coupons’’

4 and inserting ‘‘Electronic benefits transfer cards

5 or coupons’’;

6 (D) in subsection (e), by striking ‘‘coupons

7 to coupon issuers’’ and replace with ‘‘benefits to

8 benefits issuers’’; and by striking ‘‘by coupon is9 suers’’ and inserting ‘‘by benefits issuers’’.

10 (E) in subsection (f)—

11 (i) by striking ‘‘issuance of coupons’’

12 and inserting ‘‘issuance of electronic bene13 fits transfer cards or coupons’’;

14 (ii) by striking ‘‘coupon issuer’’ and

15 inserting ‘‘electronic benefits transfer or

16 coupon issuer’’; and

17 (iii) by striking ‘‘coupons and allot18 ments’’ and inserting ‘‘electronic benefits

19 transfer cards, coupons, and allotments’’;

20 (F) by deleting ‘‘(1) The’’ in subsections (g)

21 and (h) and inserting the following: ‘‘(1) Except

22 with respect to electronic benefit transfer care

23 systems operated under section 7(j)(5), the’’; and
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1 (G) by striking subparagraph (i)(2)(A); and

2 by relettering (B) through (H) as (A) through

3 (G).

4 (5) Section 8(b) of such Act (7 U.S.C. 2017(b))

5 is amended by striking ‘‘coupons’’ and inserting

6 ‘‘electronic benefits transfer cards or coupons’’.

7 (6) Section 9 of such Act (7 U.S.C. 2018) is

8 amended—

9 (A) in subsections (a) and (b), by striking

10 ‘‘coupons’’ each place it appears and inserting

11 ‘‘coupons, or accept electronic benefits transfer

12 cards,’’; and

13 (B) in subsection (a)(1)(B), by striking

14 ‘‘coupon business’’ and inserting ‘‘electronic ben15 efits transfer cards and coupon business’’.

16 (7) Section 10 of such Act (7 U.S.C. 2019) is

17 amended—

18 (A) by striking the section heading and in19 serting the following: ‘‘REDEMPTION OF COU20 PONS OR ELECTRONIC BENEFITS TRANS21 FER CARDS’’; and

22 (B) in the first sentence—

23 (i) by inserting after ‘‘provide for’’ the

24 following: ‘‘reimbursing stores for program

25 benefits provided and for’’;
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1 (ii) by inserting after ‘‘food coupons’’

2 the following: ‘‘or use their members’ elec3 tronic benefits transfer cards’’; and

4 (iii) by striking the period at the end

5 and inserting the following: ‘‘, unless the

6 center, organization, institution, shelter,

7 group living arrangement, or establishment

8 is equipped with a point-of-sale device for

9 the purpose of participating in the elec10 tronic benefits transfer system.’’.

11 (8) Section 11 of such Act (7 U.S.C. 2020) is

12 amended—

13 (A) in the first sentence of subsection (a), by

14 striking ‘‘coupons’’ and inserting ‘‘electronic ben15 efits transfer cards or coupons,’’;

16 (B) in subsection (e)—

17 (i) in paragraph (2)—

18 (I) by striking ‘‘a coupon allot19 ment’’ and inserting ‘‘an allotment’’;

20 and

21 (II) by striking ‘‘issuing coupons’’

22 and inserting ‘‘issuing electronic bene23 fits transfer cards or coupons’’;
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1 (ii) in paragraph (7), by striking

2 ‘‘coupon issuance’’ and inserting ‘‘electronic

3 benefits transfer card or coupon issuance’’;

4 (iii) in paragraph (8)(C), by striking

5 ‘‘coupons’’ and inserting ‘‘benefits’’;

6 (iv) in paragraph (9), by striking

7 ‘‘coupons’’ each place it appears and insert8 ing ‘‘electronic benefits transfer cards or

9 coupons’’;

10 (v) in paragraph (11), by striking ‘‘in

11 the form of coupons’’;

12 (vi) in paragraph (16), by striking

13 ‘‘coupons’’ and inserting ‘‘electronic benefits

14 transfer card or coupons’’;

15 (vii) in paragraph (17), by striking

16 ‘‘food stamps’’ and replacing with ‘‘bene17 fits’’;

18 (viii) in paragraph (21), by striking

19 ‘‘coupons’’ and inserting ‘‘electronic benefits

20 transfer cards or coupons’’;

21 (ix) in paragraph (24), by striking

22 ‘‘coupons’’ and inserting ‘‘benefits’’; and

23 (x) in paragraph (25), by striking

24 ‘‘coupons’’ each place it appears and insert-
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1 ing ‘‘electronic benefits transfer cards or

2 coupons’’; and

3 (C) in subsection (h), by striking ‘‘face

4 value of any coupon or coupons’’ and inserting

5 ‘‘value of any benefits’’; and

6 (D) in subsection (n)—

7 (i) by striking ‘‘both coupons’’ each

8 place it appears and inserting ‘‘benefits

9 under this Act’’; and

10 (ii) by striking ‘‘of coupons’’ and in11 serting ‘‘of benefits’’.

12 (9) Section 12 of such Act (7 U.S.C. 2021) is

13 amended—

14 (A) in subsection (b)(3), by striking ‘‘cou15 pons’’ each place it appears and inserting ‘‘elec16 tronic benefits transfer cards or coupons’’;

17 (B) in subsection (d)—

18 (i) in the first sentence—

19 (I) by inserting after ‘‘redeem

20 coupons’’ the following: ‘‘and to accept

21 electronic benefits transfer cards’’; and

22 (II) by striking ‘‘value of cou23 pons’’ and inserting ‘‘value of benefits

24 and coupons’’; and
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1 (ii) in the third sentence, by striking

2 ‘‘coupons’’ each place it appears and insert3 ing ‘‘benefits’’; and

4 (C) in the first sentence of subsection (f)—

5 (i) by inserting after ‘‘to accept and

6 redeem food coupons’’ the following: ‘‘elec7 tronic benefits transfer cards, or to accept

8 and redeem food coupons,’’; and

9 (ii) by inserting before the period at

10 the end the following: ‘‘or program bene11 fits’’.

12 (10) Section 13 of such Act (7 U.S.C. 2022) is

13 amended by striking ‘‘coupons’’ each place it appears

14 and inserting ‘‘benefits’’.

15 (11) Section 15 of such Act (7 U.S.C. 2024) is

16 amended—

17 (A) in subsection (a), by striking ‘‘issuance

18 or presentment for redemption’’ and inserting

19 ‘‘issuance, presentment for redemption, or use of

20 electronic benefits transfer cards or’’;

21 (B) in the first sentence of subsection

22 (b)(1)—

23 (i) by inserting after ‘‘coupons, author24 ization cards,’’ each place it appears the fol-
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1 lowing: ‘‘electronic benefits transfer cards,’’;

2 and

3 (ii) by striking ‘‘coupons or authoriza4 tion cards’’ each place it appears and in5 serting the following: ‘‘coupons, authoriza6 tion cards, or electronic benefits transfer

7 cards’’;

8 (C) in the first sentence of subsection (c)—

9 (i) by striking ‘‘coupons’’ and inserting

10 ‘‘a coupon or electronic benefits transfer

11 card’’; and

12 (ii) strike ‘‘such coupons are’’ and in13 serting ‘‘the payment or redemption is’’;

14 (D) in subsection (d) striking ‘‘coupons’’

15 and replacing with ‘‘Benefits’’;

16 (E) in subsection (e) after ‘‘coupons’’ insert17 ing ‘‘or electronic benefits transfer cards’’;

18 (F) in subsection (f) after ‘‘coupon’’ insert19 ing ‘‘or electronic benefits transfer card’’; and

20 (G) in the first sentence of subsection (g), by

21 inserting after ‘‘coupons, authorization cards,’’

22 the following: ‘‘electronic benefits transfer

23 cards,’’.

24 (12) Section 16 (7 U.S.C. 2025) is amended—

25 (A) in subsection (a)—
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1 (i) in paragraph (2) after ‘‘coupons’’

2 by inserting ‘‘electronic benefits transfer

3 cards’’;

4 (ii) in paragraph (3) by inserting after

5 ‘‘households’’ the following: ‘‘, including the

6 cost of providing equipment necessary for

7 retail food stores to participate in an elec8 tronic benefits transfer system’’;

9 (B) by deleting subsection (d);

10 (C) by redesignating subsections (e) through

11 (j) as subsections (d) through (i), respectively;

12 (D) in subsection (g)(5) (as redesignated by

13 paragraph (3))—

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

15 ‘‘(A)’’; and

16 (ii) by striking subparagraph (B);

17 (E) in subsection (h) (as redesignated by

18 paragraph (3)), by striking paragraph (3); and

19 (F) by striking subsection (i) (as redesig20 nated by paragraph (3)).

21 (13) Section 17 of such Act (7 U.S.C. 2026) is

22 amended—

23 (A) in the last sentence of subsection (a)(2),

24 by striking ‘‘coupon’’ and inserting ‘‘benefit’’;
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1 (B) by deleting the last sentence of para2 graph (b)(2);

3 (C) by deleting the last sentence of sub4 section (c);

5 (D) in subsection (d)(1)(B), by striking

6 ‘‘coupons’’ each place it appears and inserting

7 ‘‘benefits’’;

8 (E) by deleting the last sentence of sub9 section (e);

10 (F) by striking subsection (f); and

11 (G) by redesignating subsections (g) through

12 (k) as subsections (f) through (j), respectively.

13 (14) Section 21 of such Act (7 U.S.C. 2030) is

14 amended—

15 (A) by striking ‘‘coupons’’ each place it ap16 pears (other than in subsections (b)(2)(A)(ii)

17 and (d)) and inserting ‘‘benefits’’;

18 (B) in subsection (b)(2)(A)(ii), by striking

19 ‘‘coupons’’ and inserting ‘‘electronic benefits

20 transfer cards or coupons’’; and

21 (C) in subsection (d)—

22 (i) in paragraph (2), by striking ‘‘Cou23 pons’’ and inserting ‘‘Benefits’’; and

24 (ii) in paragraph (3), by striking ‘‘in

25 food coupons’’.
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1 (15) Section 22 of such Act (7 U.S.C. 2031) is

2 amended—

3 (A) in subsection (b)—

4 (i) in paragraph (3)(D)—

5 (I) in clause (ii), by striking

6 ‘‘coupons’’ and inserting ‘‘benefits’’;

7 and

8 (II) in clause (iii), by striking

9 ‘‘coupons’’ and inserting ‘‘electronic

10 benefits transfer benefits’’;

11 (ii) in paragraph (9), by striking

12 ‘‘coupons’’ and inserting ‘‘benefits’’;

13 (iii) in paragraph (10)(B)—

14 (I) in the second sentence of clause

15 (I), by striking ‘‘Food coupons’’ and

16 inserting ‘‘Program benefits’’; and

17 (II) in clause (ii)—

18 (aa) in the second sentence,

19 by striking ‘‘Food coupons’’ and

20 inserting ‘‘Benefits’’; and

21 (bb) in the third sentence, by

22 striking ‘‘food coupons’’ each place

23 it appears and inserting ‘‘bene24 fits’’;
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1 (B) in subsection (d), by striking ‘‘coupons’’

2 each place it appears and inserting ‘‘benefits’’;

3 (C) in subsection (g)(l)(A), by striking

4 ‘‘coupon’’; and

5 (D) in subsection (h), by striking ‘‘food cou6 pons’’ and inserting ‘‘benefits’’.

7 (16) Section 1956(c)(7)(D) of title 18, United

8 States Code, is amended by inserting ‘‘electronic bene9 fits transfer cards or’’ before ‘‘coupons having’’.

10 SEC. 321. MINIMUM BENEFIT.

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

12 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall

13 be adjusted’’ and all that follows through ‘‘$5’’.

14 SEC. 322. BENEFITS ON RECERTIFICATION.

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

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

17 one month’’.

18 SEC. 323. OPTIONAL COMBINED ALLOTMENT FOR EXPE19 DITED HOUSEHOLDS.

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

21 2017(c)) is amended by striking paragraph (3) and insert22 ing the following:

23 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR EX24 PEDITED HOUSEHOLDS.—A State agency may pro25 vide to an eligible household applying after the 15th
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1 day of a month, in lieu of the initial allotment of the

2 household and the regular allotment of the household

3 for the following month, an allotment that is the ag4 gregate of the initial allotment and the first regular

5 allotment, which shall be provided in accordance with

6 section 11(e)(3) in the case of a household that is not

7 entitled to expedited service or in accordance with

8 paragraphs (3) and (9) of section 11(e) in the case of

9 a household that is entitled to expedited service.’’.

10 SEC. 324. FAILURE TO COMPLY WITH OTHER WELFARE AND

11 PUBLIC ASSISTANCE PROGRAMS.

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

13 2017) is amended by striking subsection (d) and inserting

14 the following:

15 ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENE16 FITS.—

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

18 are reduced under a Federal, State, or local law relat19 ing to a welfare or public assistance program for the

20 failure to perform an action required under the law

21 or program, for the duration of the reduction—

22 ‘‘(A) the household may not receive an in23 creased allotment as the result of a decrease in

24 the income of the household to the extent that the

25 decrease is the result of the reduction; and
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1 ‘‘(B) the State agency may reduce the allot2 ment of the household by not more than 25 per3 cent.

4 ‘‘(2) OPTIONAL METHOD.—In carrying out para5 graph (1), a State agency may consider, for the dura6 tion of a reduction referred to under paragraph (1),

7 the benefits of the household under a welfare or public

8 assistance program before the reduction as income of

9 the household after the reduction.

10 ‘‘(3) RULES AND PROCEDURES.—If the allotment

11 of a household is reduced under this subsection for a

12 failure to perform an action required under part A

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

14 et seq.), the State agency may use the rules and proce15 dures that apply under part A of title IV of the Act

16 to reduce the allotment under the food stamp pro17 gram.’’.

18 SEC. 325. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN IN19 STITUTIONS.

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

21 2017) is amended by adding at the end the following:

22 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN IN23 STITUTIONS.—

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

25 who resides in a homeless shelter, or in an institution
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1 or center for the purpose of a drug or alcoholic treat2 ment program, described in the last sentence of sec3 tion 3(i), a State agency may provide an allotment

4 for the individual to—

5 ‘‘(A) the institution as an authorized rep6 resentative for the individual for a period that is

7 less than 1 month; and

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

9 the institution.

10 ‘‘(2) DIRECT PAYMENT.—A State agency may re11 quire an individual referred to in paragraph (1) to

12 designate the shelter, institution, or center in which

13 the individual resides as the authorized representative

14 of the individual for the purpose of receiving an allot15 ment.’’.

16 SEC. 326. OPERATION OF FOOD STAMP OFFICES.

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

18 2020) is amended—

19 (1) in subsection (e)—

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

21 the following:

22 ‘‘(2)(A) that the State agency shall establish pro23 cedures governing the operation of food stamp offices

24 that the State agency determines best serve households

25 in the State, including households with special needs,
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1 such as households with elderly or disabled members,

2 households in rural areas with low-income members,

3 homeless individuals, households residing on reserva4 tions, and households in which a substantial number

5 of members speak a language other than English.

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

7 agency—

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

9 service to applicants for, and participants in,

10 the food stamp program;

11 ‘‘(ii) shall permit an applicant household to

12 apply to participate in the program on the same

13 day that the household first contacts a food

14 stamp office in person during office hours;

15 ‘‘(iii) shall consider an application filed on

16 the date the applicant submits an application

17 that contains the name, address, and signature

18 of the applicant; and

19 ‘‘(iv) may establish operating procedures

20 that vary for local food stamp offices to reflect

21 regional and local differences within the State;’’;

22 (B) in paragraph (3) (as amended by sec23 tion 309(b))—
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1 (i) by striking ‘‘shall—’’ and all that

2 follows through ‘‘provide each’’ and insert3 ing ‘‘shall provide each’’; and

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

5 that follows through ‘‘representative of the

6 State agency;’’;

7 (C) by striking paragraph (14) and insert8 ing the following:

9 ‘‘(14) the standards and procedures used by the

10 State agency under section 6(d)(1)(D) to determine

11 whether an individual is eligible to participate under

12 section 6(d)(1)(A);’’; and

13 (D) by striking paragraph (25) and insert14 ing the following:

15 ‘‘(25) a description of the work supplementation

16 or support program, if any, carried out by the State

17 agency under section 16(b);’’; and

18 (2) in subsection (i)—

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

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

21 following:

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

23 ‘‘(1) APPLICATION PROCEDURES.—Notwithstand24 ing any other provision of law,’’; and
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1 (B) by striking ‘‘; (3) households’’ and all

2 that follows through ‘‘title IV of the Social Secu3 rity Act. No’’ and inserting a period and the fol4 lowing:

5 ‘‘(2) DENIAL AND TERMINATION.—Other than in

6 a case of disqualification as a penalty for failure to

7 comply with a public assistance program rule or reg8 ulation, no’’.

9 SEC. 327. STATE EMPLOYEE AND TRAINING STANDARDS.

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

11 U.S.C. 2020(e)(6)) is amended—

12 (1) by striking ‘‘(A)’’; and

13 (2) by striking subparagraphs (B) through (E).

14 SEC. 328. EXCHANGE OF LAW ENFORCEMENT INFORMA15 TION.

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

17 2020(e)) (as amended by section 315(b)) is further amend18 ed—

19 (1) in paragraph (8)—

20 (A) by striking ‘‘that (A) such’’ and insert21 ing the following: ‘‘that—

22 ‘‘(A) the’’;

23 (B) by striking ‘‘law, (B) notwithstanding’’

24 and inserting the following: ‘‘law;

25 ‘‘(B) notwithstanding’’;
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1 (C) by striking ‘‘Act, and (C) such’’ and in2 serting the following: ‘‘Act;

3 ‘‘(C) the’’; and

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

5 ‘‘(D) notwithstanding any other provision

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

7 when available, photograph of any member of a

8 household shall be made available, on request, to

9 any Federal, State, or local law enforcement offi10 cer if the officer furnishes the State agency with

11 the name of the member and notifies the agency

12 that—

13 ‘‘(i) the member—

14 ‘‘(I) is fleeing to avoid prosecu15 tion, or custody or confinement after

16 conviction, for a crime (or attempt to

17 commit a crime) that, under the law of

18 the place the member is fleeing, is a

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

20 a high misdemeanor), or is violating a

21 condition of probation or parole im22 posed under Federal or State law; or

23 ‘‘(II) has information that is nec24 essary for the officer to conduct the of25 ficial duties of the officer;
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1 ‘‘(ii) the location or apprehension of

2 the member is an official duty of the officer;

3 and

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

5 proper exercise of the official duties of the

6 officer; and

7 ‘‘(E) the safeguards shall not prevent com8 pliance with paragraph (27);’’; and

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

10 ‘‘(27) that the State agency shall furnish the Im11 migration and Naturalization Service with the name

12 of, address of, and identifying information on any in13 dividual the State agency knows is unlawfully in the

14 United States; and’’.

15 SEC. 329. EXPEDITED COUPON SERVICE.

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

17 U.S.C. 2020(e)(9)) is amended—

18 (1) in subparagraph (A)—

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

20 ‘‘7 business days’’; and

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

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

23 (3) by redesignating subparagraph (D) as sub24 paragraph (B); and
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1 (4) in subparagraph (B) (as redesignated by

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

3 SEC. 330. FAIR HEARINGS.

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

5 2020) is amended by adding at the end the following:

6 ‘‘(p) WITHDRAWING FAIR HEARING REQUESTS.—A

7 household may withdraw, orally or in writing, a request

8 by the household for a fair hearing under subsection (e)(10).

9 If the withdrawal request is an oral request, the State agen10 cy shall provide a written notice to the household confirm11 ing the request and providing the household with an oppor12 tunity to request a hearing.’’.

13 SEC. 331. INCOME AND ELIGIBILITY VERIFICATION SYSTEM.

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

15 2020) (as amended by section 330) is further amended by

16 adding at the end the following:

17 ‘‘(q) STATE VERIFICATION OPTION.—Notwithstanding

18 any other provision of law, a State agency shall not be re19 quired to use an income and eligibility verification system

20 established under section 1137 of the Social Security Act

21 (42 U.S.C. 1320b–7).’’.

22 SEC. 332. COLLECTION OF OVERISSUANCES.

23 (a) IN GENERAL.—Section 13 of the Food Stamp Act

24 of 1977 (7 U.S.C. 2022) is amended—
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1 (1) by striking subsection (b) and inserting the

2 following:

3 ‘‘(b) COLLECTION OF OVERISSUANCES.—

4 ‘‘(1) IN GENERAL.—Except as otherwise provided

5 in this subsection, a State agency shall collect any

6 overissuance of coupons issued to a household by—

7 ‘‘(A) reducing the allotment of the house8 hold;

9 ‘‘(B) withholding unemployment compensa10 tion from a member of the household under sub11 section (c);

12 ‘‘(C) recovering from Federal pay or a Fed13 eral income tax refund under subsection (d); or

14 ‘‘(D) any other means.

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

16 shall not apply if the State agency demonstrates to

17 the satisfaction of the Secretary that all of the means

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

19 ‘‘(3) HARDSHIPS.—A State agency may not use

20 an allotment reduction under paragraph (1)(A) as a

21 means of collecting an overissuance from a household

22 if the allotment reduction would cause a hardship on

23 the household, as determined by the State agency.

24 ‘‘(4) MAXIMUM REDUCTION ABSENT FRAUD.—If

25 a household received an overissuance of coupons with-
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1 out any member of the household being found ineli2 gible to participate in the program under section

3 6(b)(1) and a State agency elects to reduce the allot4 ment of the household under paragraph (1)(A), the

5 State agency shall reduce the monthly allotment of the

6 household under paragraph (1)(A) by the greater of—

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

8 the household; or

9 ‘‘(B) $10.

10 ‘‘(5) PROCEDURES.—A State agency shall collect

11 an overissuance of coupons issued to a household

12 under paragraph (1) in accordance with requirements

13 established by the State agency for providing notice,

14 electing a means of payment, and establishing a time

15 schedule for payment.’’; and

16 (2) in subsection (d)—

17 (A) by striking ‘‘as determined under sub18 section (b) and except for claims arising from an

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

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

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

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

23 authorized by section 3720A of title 31, United

24 States Code’’.
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1 (b) CONFORMING AMENDMENT.—Section 11(e)(8) of

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

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

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

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

6 the following: ‘‘or a Federal income tax refund as au7 thorized by section 3720A of title 31, United States

8 Code’’.

9 SEC. 333. TERMINATION OF FEDERAL MATCH FOR OP10 TIONAL INFORMATION ACTIVITIES.

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

12 Act of 1977 (7 U.S.C. 2025(a)) is amended—

13 (1) by striking paragraph (4); and

14 (2) by redesignating paragraphs (5) through (8)

15 as paragraphs (4) through (7), respectively.

16 (b) CONFORMING AMENDMENT.—Section 16(g) of the

17 Act (7 U.S.C. 2025(g)) is amended by striking ‘‘an amount

18 equal to’’ and all that follows through ‘‘1991, of’’ and insert19 ing ‘‘the amount provided under subsection (a)(5) for’’.

20 SEC. 334. STANDARDS FOR ADMINISTRATION.

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

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

23 (b).

24 (b) CONFORMING AMENDMENTS.—
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1 (1) The first sentence of section 11(g) of the Act

2 (7 U.S.C. 2020(g)) is amended by striking ‘‘the Sec3 retary’s standards for the efficient and effective ad4 ministration of the program established under section

5 16(b)(1) or’’.

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

7 2025(c)(1)(B)) is amended by striking ‘‘pursuant to

8 subsection (b)’’.

9 SEC. 335. WORK SUPPLEMENTATION OR SUPPORT PRO10 GRAM.

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

12 2025) (as amended by section 334(a)) is further amended

13 by inserting after subsection (a) the following:

14 ‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO15 GRAM.—

16 ‘‘(1) DEFINITION.—In this subsection, the term

17 ‘work supplementation or support program’ means a

18 program in which, as determined by the Secretary,

19 public assistance (including any benefits provided

20 under a program established by the State and the food

21 stamp program) is provided to an employer to be

22 used for hiring and employing a new employee who

23 is a public assistance recipient.

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

25 use amounts equal to the allotment that would other-
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1 wise be allotted to a household under the food stamp

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

3 the purpose of subsidizing or supporting jobs under a

4 work supplementation or support program established

5 by the State.

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

7 election under paragraph (2) and identifies each

8 household that participates in the food stamp pro9 gram that contains an individual who is participat10 ing in the work supplementation or support pro11 gram—

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

13 agency an amount equal to the value of the allot14 ment that the household would be eligible to re15 ceive but for the operation of this subsection;

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

17 amount paid under subparagraph (A) in accord18 ance with the work supplementation or support

19 program in lieu of providing the allotment that

20 the household would receive but for the operation

21 of this subsection;

22 ‘‘(C) for purposes of—

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

24 received under this subsection shall be ex-
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1 cluded from household income and resources;

2 and

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

4 under this subsection shall be considered to

5 be the value of an allotment provided to the

6 household; and

7 ‘‘(D) the household shall not receive an al8 lotment from the State agency for the period

9 during which the member continues to partici10 pate in the work supplementation or support

11 program.

12 ‘‘(4) OTHER WORK REQUIREMENTS.—No indi13 vidual shall be excused, by reason of the fact that a

14 State has a work supplementation or support pro15 gram, from any work requirement under section 6(d),

16 except during the periods in which the individual is

17 employed under the work supplementation or support

18 program.

19 ‘‘(5) MAXIMUM LENGTH OF PARTICIPATION.—A

20 work supplementation or support program may not

21 allow the participation of any individual for longer

22 than 1 year, unless the Secretary approves a longer

23 period.’’.
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1 SEC. 336. WAIVER AUTHORITY.

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

3 U.S.C. 2026(b)(1)(A)) is amended—

4 (1) by striking ‘‘benefits to eligible households,

5 including’’ and inserting the following: ‘‘benefits to el6 igible households. The Secretary may waive the re7 quirements of this Act to the extent necessary to con8 duct a pilot or experimental project, including a

9 project designed to test innovative welfare reform,

10 promote work, and allow conformity with other Fed11 eral, State, and local government assistance pro12 grams, except that a project involving the payment of

13 benefits in the form of cash shall maintain the aver14 age value of allotments for affected households as a

15 group. Pilot or experimental projects may include’’;

16 and

17 (2) by striking ‘‘The Secretary may waive’’ and

18 all that follows through ‘‘sections 5 and 8 of this

19 Act.’’.

20 SEC. 337. AUTHORIZATION OF PILOT PROJECTS.

21 The last sentence of section 17(b)(1)(A) of the Food

22 Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended

23 by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 SEC. 338. RESPONSE TO WAIVERS.

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

3 U.S.C. 2026(b)(1)) is amended by adding at the end the

4 following:

5 ‘‘(C) RESPONSE TO WAIVERS.—

6 ‘‘(i) RESPONSE.—Not later than 60

7 days after the date of receiving a request for

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

10 ‘‘(I) approves the waiver request;

11 ‘‘(II) denies the waiver request

12 and explains any modification needed

13 for approval of the waiver request;

14 ‘‘(III) denies the waiver request

15 and explains the grounds for the de16 nial; or

17 ‘‘(IV) requests clarification of the

18 waiver request.

19 ‘‘(ii) FAILURE TO RESPOND.—If the

20 Secretary does not provide a response under

21 clause (i) not later than 60 days after re22 ceiving a request for a waiver, the waiver

23 shall be considered approved.

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

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

26 Secretary shall provide a copy of the waiver
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1 request and the grounds for the denial to the

2 Committee on Agriculture of the House of

3 Representatives and the Committee on Agri4 culture, Nutrition, and Forestry of the Sen5 ate.’’.

6 SEC. 339. PRIVATE SECTOR EMPLOYMENT INITIATIVES.

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

8 2026) is amended by adding at the end the following:

9 ‘‘(m) PRIVATE SECTOR EMPLOYMENT INITIATIVES.—

10 ‘‘(1) ELECTION TO PARTICIPATE.—

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

12 provisions of this subsection, a State may elect

13 to carry out a private sector employment initia14 tive program under this subsection.

15 ‘‘(B) REQUIREMENT.—A State shall be eli16 gible to carry out a private sector employment

17 initiative under this subsection only if not less

18 than 50 percent of the households that received

19 food stamp benefits during the summer of 1993

20 also received benefits under a State program

21 funded under part A of title IV of the Social Se22 curity Act (42 U.S.C. 601 et seq.) during the

23 summer of 1993.

24 ‘‘(2) PROCEDURE.—A State that has elected to

25 carry out a private sector employment initiative
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1 under paragraph (1) may use amounts equal to the

2 food stamp allotments that would otherwise be allotted

3 to a household under the food stamp program, but for

4 the operation of this subsection, to provide cash bene5 fits in lieu of the food stamp allotments to the house6 hold if the household is eligible under paragraph (3).

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

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

9 adult member of the household—

10 ‘‘(A) has worked in unsubsidized employ11 ment in the private sector for not less than the

12 preceding 90 days;

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

14 month from the employment referred to in sub15 paragraph (A) for not less than the preceding 90

16 days;

17 ‘‘(C)(i) is eligible to receive benefits under a

18 State program funded under part A of title IV

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

20 seq.); or

21 ‘‘(ii) was eligible to receive benefits under a

22 State program funded under part A of title IV

23 of the Social Security Act (42 U.S.C. 601 et seq.)

24 at the time the member first received cash bene25 fits under this subsection and is no longer eligi-
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1 ble for the State program because of earned in2 come;

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

4 $350 per month from the employment referred to

5 in subparagraph (A); and

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

7 food stamp benefits under this subsection.

8 ‘‘(4) EVALUATION.—A State that operates a pro9 gram under this subsection for 2 years shall provide

10 to the Secretary a written evaluation of the impact of

11 cash assistance under this subsection. The State agen12 cy shall determine the content of the evaluation.’’.

13 SEC. 340. REAUTHORIZATION OF APPROPRIATIONS.

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

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

16 striking ‘‘1995’’ and inserting ‘‘2002’’.

17 SEC. 341. REAUTHORIZATION OF PUERTO RICO NUTRITION

18 ASSISTANCE PROGRAM.

19 The first sentence of section 19(a)(1)(A) of the Food

20 Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended

21 by striking ‘‘$974,000,000’’ and all that follows through

22 ‘‘fiscal year 1995’’ and inserting the following:

23 ‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,

24 $1,182,000,000 for fiscal year 1997, $1,223,000,000 for fis25 cal year 1998, $1,266,000,000 for fiscal year 1999,
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1 $1,310,000,000 for fiscal year 2000, $1,343,000,000 for fis2 cal year 2001, and $1,376,000,000 for fiscal year 2002’’

3 SEC. 342. SIMPLIFIED FOOD STAMP PROGRAM.

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

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

6 following:

7 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

8 ‘‘(a) ELECTION.—Subject to subsection (c), a State

9 agency may elect to carry out a Simplified Food Stamp

10 Program (referred to in this section as a ‘Program’) under

11 this section.

12 ‘‘(b) OPERATION OF PROGRAM.—

13 ‘‘(1) IN GENERAL.—If a State agency elects to

14 carry out a Program, within the State or a political

15 subdivision of the State—

16 ‘‘(A) a household in which all members re17 ceive assistance under a State program funded

18 under part A of title IV of the Social Security

19 Act (42 U.S.C. 601 et seq.) shall automatically

20 be eligible to participate in the Program; and

21 ‘‘(B) subject to subsection (e), benefits under

22 the Program shall be determined under rules and

23 procedures established by the State under—
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1 ‘‘(i) a State program funded under

2 part A of title IV of the Social Security Act

3 (42 U.S.C. 601 et seq.);

4 ‘‘(ii) the food stamp program (other

5 than section 25); or

6 ‘‘(iii) a combination of a State pro7 gram funded under part A of title IV of the

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

9 and the food stamp program.

10 ‘‘(2) SHELTER STANDARD.—The State agency

11 may elect to apply 1 shelter standard to a household

12 that receives a housing subsidy and another shelter

13 standard to a household that does not receive the sub14 sidy.

15 ‘‘(c) APPROVAL OF PROGRAM.—

16 ‘‘(1) STATE PLAN.—A State agency may not op17 erate a Program unless the Secretary approves a

18 State plan for the operation of the Program under

19 paragraph (2).

20 ‘‘(2) APPROVAL OF PLAN.—

21 ‘‘(A) IN GENERAL.—The Secretary shall ap22 prove any State plan to carry out a Program if

23 the Secretary determines that the plan—

24 ‘‘(i) complies with this section; and
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1 ‘‘(ii) would not increase Federal costs

2 incurred under this Act.

3 ‘‘(B) DEFINITION OF FEDERAL COSTS.—In

4 this section, the term ‘Federal costs’ does not in5 clude any Federal costs incurred under section

6 17.

7 ‘‘(d) INCREASED FEDERAL COSTS.—

8 ‘‘(1) DETERMINATION.—

9 ‘‘(A) IN GENERAL.—The Secretary shall de10 termine whether a Program being carried out by

11 a State agency is increasing Federal costs under

12 this Act.

13 ‘‘(B) NO EXCLUDED HOUSEHOLDS.—In

14 making a determination under subparagraph

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

16 agency to collect or report any information on

17 households not included in the Program.

18 ‘‘(C) ALTERNATIVE ACCOUNTING PERI19 ODS.—The Secretary may approve the request of

20 a State agency to apply alternative accounting

21 periods to determine if Federal costs do not ex22 ceed the Federal costs had the State agency not

23 elected to carry out the Program.

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

25 that the Program has increased Federal costs under
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1 this Act for any fiscal year, the Secretary shall notify

2 the State agency not later than January 1 of the im3 mediately succeeding fiscal year.

4 ‘‘(3) RETURN OF FUNDS.—

5 ‘‘(A) IN GENERAL.—If the Secretary deter6 mines that the Program has increased Federal

7 costs under this Act for a 2-year period, includ8 ing a fiscal year for which notice was given

9 under paragraph (2) and an immediately suc10 ceeding fiscal year, the State agency shall pay to

11 the Treasury of the United States the amount of

12 the increased costs.

13 ‘‘(B) ENFORCEMENT.—If the State agency

14 does not pay an amount due under subpara15 graph (A) on a date that is not later than 90

16 days after the date of the determination, the Sec17 retary shall reduce amounts otherwise due to the

18 State agency for administrative costs under sec19 tion 16(a).

20 ‘‘(e) RULES AND PROCEDURES.—

21 ‘‘(1) IN GENERAL.—Except as provided by para22 graph (2), a State may apply—

23 ‘‘(A) the rules and procedures established by

24 the State under—
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1 ‘‘(i) the State program funded under

2 part A of title IV of the Social Security Act

3 (42 U.S.C. 601 et seq.); or

4 ‘‘(ii) the food stamp program; or

5 ‘‘(B) the rules and procedures of 1 of the

6 programs to certain matters and the rules and

7 procedures of the other program to all remaining

8 matters.

9 ‘‘(2) STANDARDIZED DEDUCTIONS.—The State

10 may standardize the deductions provided under sec11 tion 5(e). In developing the standardized deduction,

12 the State shall give consideration to the work ex13 penses, dependent care costs, and shelter costs of par14 ticipating households.

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

16 the State shall comply with—

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

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

19 a household may be determined under a State

20 program funded under part A of title IV of the

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

22 ‘‘(C) subsections (b) and (d) of section 8;

23 ‘‘(D) subsections (a), (c), (d), and (n) of sec24 tion 11;
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1 ‘‘(E) paragraph (3) of section 11(e), to the

2 extent that the paragraph requires that an eligi3 ble household be certified and receive an allot4 ment for the period of application not later than

5 30 days after filing an application;

6 ‘‘(F) paragraphs (8), (9), (12), (17), (19),

7 (21), and (27) of section 11(e);

8 ‘‘(G) section 11(e)(10) or a comparable re9 quirement established by the State under a State

10 program funded under part A of title IV of the

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

12 ‘‘(H) section 16.’’.

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

14 Act (7 U.S.C. 2020(e)) (as amended by sections 315(b) and

15 328) is further amended by adding at the end the following:

16 ‘‘(28) the plans of the State agency for operating,

17 at the election of the State, a program under section

18 24, including—

19 ‘‘(A) the rules and procedures to be followed

20 by the State to determine food stamp benefits;

21 ‘‘(B) how the State will address the needs of

22 households that experience high shelter costs in

23 relation to the incomes of the households; and
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1 ‘‘(C) a description of the method by which

2 the State will carry out a quality control system

3 under section 16(c).’’.

4 (c) CONFORMING AMENDMENTS.—

5 (1) Section 8 of the Act (7 U.S.C. 2017) (as

6 amended by section 325) is further amended—

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

8 (B) by redesignating subsection (f) as sub9 section (e).

10 (2) Section 17 of the Act (7 U.S.C. 2026) (as

11 amended by section 339) is further amended—

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

13 (B) by redesignating subsections (j) through

14 (m) as subsections (i) through (l), respectively.

15 SEC. 343. OPTIONAL STATE FOOD ASSISTANCE BLOCK

16 GRANT.

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

18 U.S.C. 2011 et seq.) (as amended by section 342) is further

19 amended by adding at the end the following:

20 ‘‘SEC. 25. OPTIONAL STATE FOOD ASSISTANCE BLOCK

21 GRANT.

22 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

23 a program to make grants to States in accordance with this

24 section to provide—
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1 ‘‘(1) food assistance to needy individuals and

2 families residing in the State;

3 ‘‘(2) at the option of a State, wage subsidies and

4 payments in return for work for needy individuals

5 under the program;

6 ‘‘(3) funds to operate an employment and train7 ing program under section (g)(2) for needy individ8 uals under the program; and

9 ‘‘(4) funds for administrative costs incurred in

10 providing the assistance.

11 ‘‘(b) ELECTION.—

12 ‘‘(1) IN GENERAL.—A State may elect to partici13 pate in the program established under subsection (a).

14 ‘‘(2) ELECTION REVOCABLE.—A State that elects

15 to participate in the program established under sub16 section (a) may subsequently reverse its election only

17 once thereafter. Following such reversal, the State

18 shall only be eligible to participate in the food stamp

19 program in accordance with the other sections of this

20 Act and shall not receive a block grant under this sec21 tion.

22 ‘‘(3) PROGRAM EXCLUSIVE.—A State that is par23 ticipating in the program established under sub24 section (a) shall not be subject to, or receive any bene25 fit under, this Act except as provided in this section.
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1 ‘‘(4) SUNSET OF ELECTION UPON INCREASE IN

2 NUMBER OF HUNGRY CHILDREN.—

3 ‘‘(A) FINDINGS.—The Congress finds that—

4 ‘‘(i) on March 29, 1995 the Senate

5 adopted a resolution stating that Congress

6 should not enact or adopt any legislation

7 that will increase the number of children

8 who are hungry;

9 ‘‘(ii) it is not the intent of this bill to

10 cause more children to be hungry;

11 ‘‘(iii) the Food Stamp Program serves

12 to prevent child hunger; and

13 ‘‘(iv) a State’s election to participate

14 in the optional State food assistance block

15 grant program should not serve to increase

16 the number of hungry children in that

17 State.

18 ‘‘(B) SUNSET.—If the Secretary of Health

19 and Human Services makes two successive find20 ings that the hunger rate among children in a

21 State is significantly higher in a State that has

22 elected to participate in a program established

23 under subsection (a) than it would have been had

24 there been no such election, 180 days after the

25 second such finding such election shall be perma-
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1 nently and irreversibly revoked and the provi2 sions of paragraphs (1) and (2) shall not be ap3 plicable to that State.

4 ‘‘(C) PROCEDURE FOR FINDING BY SEC5 RETARY.—In making the finding described in

6 subparagraph (B), the Secretary shall adhere to

7 the following procedure:

8 ‘‘(i) Every three years, the Secretary

9 shall develop data and report to Congress

10 with respect to each State that has elected

11 to participate in a program established

12 under subsection (a) whether the child hun13 ger rate in such State is significantly high14 er than it would have been had the State

15 not made such election.

16 ‘‘(ii) The Secretary shall provide the

17 report required under clause (i) to all

18 States that have elected to participate in a

19 program established under subsection (a),

20 and the Secretary shall provide each State

21 for which the Secretary determined that the

22 child hunger rate is significantly higher

23 than it would have been had the State not

24 made such election with an opportunity to

25 respond to such determination.
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1 ‘‘(iii) If the response by a State under

2 clause (ii) does not result in the Secretary

3 reversing the determination that the child

4 hunger rate in that State is significantly

5 higher than it would have been had the

6 State not made such election, then the Sec7 retary shall publish a finding as described

8 in subparagraph (B).

9 ‘‘(c) LEAD AGENCY.—

10 ‘‘(1) DESIGNATION.—A State desiring to receive

11 a grant under this section shall designate, in an ap12 plication submitted to the Secretary under subsection

13 (d)(1), an appropriate State agency that complies

14 with paragraph (2) to act as the lead agency for the

15 State.

16 ‘‘(2) DUTIES.—

17 ‘‘(A) IN GENERAL.—The lead agency

18 shall—

19 ‘‘(i) administer, either directly,

20 through other State agencies, or through

21 local agencies, the assistance received under

22 this section by the State;

23 ‘‘(ii) develop the State plan to be sub24 mitted to the Secretary under subsection

25 (d)(1);
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1 ‘‘(iii) in conjunction with the develop2 ment of the State plan, hold at least 1 hear3 ing in the State to provide to the public an

4 opportunity to comment on the program

5 under the State plan; and

6 ‘‘(iv) coordinate the provision of food

7 assistance under this section with other

8 Federal, State, and local programs.

9 ‘‘(B) DEVELOPMENT OF PLAN.—In the de10 velopment of the State plan described in sub11 paragraph (A)(ii), the lead agency shall consult

12 with local governments and private sector orga13 nizations regarding the plan and design of the

14 State plan so that services are provided in a

15 manner appropriate to local populations.

16 ‘‘(d) APPLICATION AND PLAN.—

17 ‘‘(1) APPLICATION.—To be eligible to receive as18 sistance under this section, a State shall prepare and

19 submit to the Secretary an application at such time,

20 in such manner, and containing such information as

21 the Secretary shall by regulation require, including—

22 ‘‘(A) an assurance that the State will com23 ply with the requirements of this section;

24 ‘‘(B) a State plan that meets the require25 ments of paragraph (3); and
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1 ‘‘(C) an assurance that the State will com2 ply with the requirements of the State plan

3 under paragraph (3).

4 ‘‘(2) ANNUAL PLAN.—The State plan contained

5 in the application under paragraph (1) shall be sub6 mitted for approval annually.

7 ‘‘(3) REQUIREMENTS OF PLAN.—

8 ‘‘(A) LEAD AGENCY.—The State plan shall

9 identify the lead agency.

10 ‘‘(B) USE OF BLOCK GRANT FUNDS.—The

11 State plan shall provide that the State shall use

12 the amounts provided to the State for each fiscal

13 year under this section—

14 ‘‘(i) to provide food assistance to needy

15 individuals and families residing in the

16 State, other than residents of institutions

17 who are ineligible for food stamps under

18 section 3(i);

19 ‘‘(ii) at the option of a State, to pro20 vide wage subsidies and workfare under sec21 tion 20(a) (except that any reference in sec22 tion 20(a) to an allotment shall be consid23 ered a reference to the food assistance or

24 benefits in lieu of food assistance received

25 by an individual or family during a month
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1 under this section) for needy individuals

2 and families participating in the program;

3 ‘‘(iii) to administer an employment

4 and training program under section (g)(2)

5 for needy individuals under the program

6 and to provide reimbursements to needy in7 dividuals and families as would be allowed

8 under section 16(h)(3); and

9 ‘‘(iv) to pay administrative costs in10 curred in providing the assistance.

11 ‘‘(C) GROUPS SERVED.—The State plan

12 shall describe how the program will serve specific

13 groups of individuals and families and how the

14 treatment will differ from treatment under the

15 food stamp program under the other sections of

16 this Act of the individuals and families, includ17 ing—

18 ‘‘(i) elderly individuals and families;

19 ‘‘(ii) migrants or seasonal farm20 workers;

21 ‘‘(iii) homeless individuals and fami22 lies;

23 ‘‘(iv) individuals and families who live

24 under the supervision of institutions (other

25 than incarcerated individuals);
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1 ‘‘(v) individuals and families with

2 earnings; and

3 ‘‘(vi) members of Indian tribes or trib4 al organizations.

5 ‘‘(D) ASSISTANCE FOR ENTIRE STATE.—The

6 State plan shall provide that benefits under this

7 section shall be available throughout the entire

8 State.

9 ‘‘(E) NOTICE AND HEARINGS.—The State

10 plan shall provide that an individual or family

11 who applies for, or receives, assistance under this

12 section shall be provided with notice of, and an

13 opportunity for a hearing on, any action under

14 this section that adversely affects the individual

15 or family.

16 ‘‘(F) OTHER ASSISTANCE.—

17 ‘‘(i) COORDINATION.—The State plan

18 may coordinate assistance received under

19 this section with assistance provided under

20 the State program funded under part A of

21 title IV of the Social Security Act (42

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

23 ‘‘(ii) PENALTIES.—If an individual or

24 family is penalized for violating part A of

25 title IV of the Act, the State plan may re-
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1 duce the amount of assistance provided

2 under this section or otherwise penalize the

3 individual or family.

4 ‘‘(G) ASSESSMENT OF NEEDS.—The State

5 plan shall assess the food and nutrition needs of

6 needy persons residing in the State.

7 ‘‘(H) ELIGIBILITY LIMITATIONS.—The State

8 plan shall describe the income and resource eligi9 bility limitations that are established for the re10 ceipt of assistance under this section.

11 ‘‘(I) RECEIVING BENEFITS IN MORE THAN 1

12 JURISDICTION.—The State plan shall establish a

13 system to verify and otherwise ensure that no in14 dividual or family shall receive benefits under

15 this section in more than 1 jurisdiction within

16 the State.

17 ‘‘(J) PRIVACY.—The State plan shall pro18 vide for safeguarding and restricting the use and

19 disclosure of information about any individual

20 or family receiving assistance under this section.

21 ‘‘(K) OTHER INFORMATION.—The State

22 plan shall contain such other information as

23 may be required by the Secretary.
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1 ‘‘(4) APPROVAL OF APPLICATION AND PLAN.—

2 The Secretary shall approve an application and State

3 plan that satisfies the requirements of this section.

4 ‘‘(e) LIMITATIONS ON STATE ALLOTMENTS.—

5 ‘‘(1) NO INDIVIDUAL OR FAMILY ENTITLEMENT

6 TO ASSISTANCE.—Nothing in this section—

7 ‘‘(A) entitles any individual or family to

8 assistance under this section; or

9 ‘‘(B) limits the right of a State to impose

10 additional limitations or conditions on assist11 ance under this section.

12 ‘‘(2) CONSTRUCTION OF FACILITIES.—No funds

13 made available under this section shall be expended

14 for the purchase or improvement of land, or for the

15 purchase, construction, or permanent improvement of

16 any building or facility.

17 ‘‘(f) BENEFITS FOR ALIENS.—

18 ‘‘(1) ELIGIBILITY.—No individual shall be eligi19 ble to receive benefits under a State plan approved

20 under subsection (d)(4) if the individual is not eligi21 ble to participate in the food stamp program under

22 section 6(f).

23 ‘‘(2) INCOME.—The State plan shall provide that

24 the income of an alien shall be determined in accord25 ance with section 5(i).
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1 ‘‘(g) EMPLOYMENT AND TRAINING.—

2 ‘‘(1) WORK REQUIREMENTS.—No individual or

3 member of a family shall be eligible to receive benefits

4 under a State plan funded under this section if the

5 individual is not eligible to participate in the food

6 stamp program under subsection (d) or (n) of section

7 6.

8 ‘‘(2) WORK PROGRAMS.—Each State shall imple9 ment an employment and training program under

10 section 6(d)(4) for needy individuals under the pro11 gram.

12 ‘‘(h) ENFORCEMENT.—

13 ‘‘(1) REVIEW OF COMPLIANCE WITH STATE

14 PLAN.—The Secretary shall review and monitor State

15 compliance with this section and the State plan ap16 proved under subsection (d)(4).

17 ‘‘(2) NONCOMPLIANCE.—

18 ‘‘(A) IN GENERAL.—If the Secretary, after

19 reasonable notice to a State and opportunity for

20 a hearing, finds that—

21 ‘‘(i) there has been a failure by the

22 State to comply substantially with any pro23 vision or requirement set forth in the State

24 plan approved under subsection (d)(4); or
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1 ‘‘(ii) in the operation of any program

2 or activity for which assistance is provided

3 under this section, there is a failure by the

4 State to comply substantially with any pro5 vision of this section;

6 the Secretary shall notify the State of the finding

7 and that no further payments will be made to

8 the State under this section (or, in the case of

9 noncompliance in the operation of a program or

10 activity, that no further payments to the State

11 will be made with respect to the program or ac12 tivity) until the Secretary is satisfied that there

13 is no longer any failure to comply or that the

14 noncompliance will be promptly corrected.

15 ‘‘(B) OTHER SANCTIONS.—In the case of a

16 finding of noncompliance made pursuant to sub17 paragraph (A), the Secretary may, in addition

18 to, or in lieu of, imposing the sanctions described

19 in subparagraph (A), impose other appropriate

20 sanctions, including recoupment of money im21 properly expended for purposes prohibited or not

22 authorized by this section and disqualification

23 from the receipt of financial assistance under

24 this section.
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1 ‘‘(C) NOTICE.—The notice required under

2 subparagraph (A) shall include a specific identi3 fication of any additional sanction being im4 posed under subparagraph (B).

5 ‘‘(3) ISSUANCE OF REGULATIONS.—The Sec6 retary shall establish by regulation procedures for—

7 ‘‘(A) receiving, processing, and determining

8 the validity of complaints concerning any failure

9 of a State to comply with the State plan or any

10 requirement of this section; and

11 ‘‘(B) imposing sanctions under this section.

12 ‘‘(4) INCOME AND ELIGIBILITY VERIFICATION

13 SYSTEM.—The Secretary may withhold not more than

14 5 percent of the amount allotted to a State under sub15 section (l)(2) if the State does not use an income and

16 eligibility verification system established under sec17 tion 1137 of the Social Security Act (42 U.S.C.

18 1320b–7).

19 ‘‘(i) PAYMENTS.—

20 ‘‘(1) IN GENERAL.—For each fiscal year, the Sec21 retary shall pay to a State that has an application

22 approved by the Secretary under subsection (d)(4) an

23 amount that is equal to the allotment of the State

24 under subsection (l)(2) for the fiscal year.
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1 ‘‘(2) METHOD OF PAYMENT.—The Secretary shall

2 make payments to a State for a fiscal year under this

3 section by issuing 1 or more letters of credit for the

4 fiscal year, with necessary adjustments on account of

5 overpayments or underpayments, as determined by

6 the Secretary.

7 ‘‘(3) SPENDING OF FUNDS BY STATE.—

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

9 subparagraph (B), payments to a State from an

10 allotment under subsection (l)(2) for a fiscal

11 year may be expended by the State only in the

12 fiscal year.

13 ‘‘(B) CARRYOVER.—The State may reserve

14 up to 10 percent of an allotment under sub15 section (l)(2) for a fiscal year to provide assist16 ance under this section in subsequent fiscal

17 years, except that the reserved funds may not ex18 ceed 30 percent of the total allotment received

19 under this section for a fiscal year.

20 ‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE

21 EXPENDITURES.—In each fiscal year, of the Federal

22 funds expended by a State under this section—

23 ‘‘(A) not less than 80 percent shall be for

24 food assistance; and
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1 ‘‘(B) not more than 6 percent shall be for

2 administrative expenses.

3 ‘‘(5) PROVISION OF FOOD ASSISTANCE.—A State

4 may provide food assistance under this section in any

5 manner determined appropriate by the State to pro6 vide food assistance to needy individuals and families

7 in the State, such as electronic benefits transfer lim8 ited to food purchases, coupons limited to food pur9 chases, or direct provision of commodities.

10 ‘‘(6) DEFINITION OF FOOD ASSISTANCE.—In this

11 section, the term ‘food assistance’ means assistance

12 that may be used only to obtain food, as defined in

13 section 3(g).

14 ‘‘(j) AUDITS.—

15 ‘‘(1) REQUIREMENT.—After the close of each fis16 cal year, a State shall arrange for an audit of the ex17 penditures of the State during the program period

18 from amounts received under this section.

19 ‘‘(2) INDEPENDENT AUDITOR.—An audit under

20 this section shall be conducted by an entity that is

21 independent of any agency administering activities

22 that receive assistance under this section and be in

23 accordance with generally accepted auditing prin24 ciples.
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1 ‘‘(3) PAYMENT ACCURACY.—Each annual audit

2 under this section shall include an audit of payment

3 accuracy under this section that shall be based on a

4 statistically valid sample of the caseload in the State.

5 ‘‘(4) SUBMISSION.—Not later than 30 days after

6 the completion of an audit under this section, the

7 State shall submit a copy of the audit to the legisla8 ture of the State and to the Secretary.

9 ‘‘(5) REPAYMENT OF AMOUNTS.—Each State

10 shall repay to the United States any amounts deter11 mined through an audit under this section to have

12 not been expended in accordance with this section or

13 to have not been expended in accordance with the

14 State plan, or the Secretary may offset the amounts

15 against any other amount paid to the State under

16 this section.

17 ‘‘(k) NONDISCRIMINATION.—

18 ‘‘(1) IN GENERAL.—The Secretary shall not pro19 vide financial assistance for any program, project, or

20 activity under this section if any person with respon21 sibilities for the operation of the program, project, or

22 activity discriminates with respect to the program,

23 project, or activity because of race, religion, color, na24 tional origin, sex, or disability.
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1 ‘‘(2) ENFORCEMENT.—The powers, remedies, and

2 procedures set forth in title VI of the Civil Rights Act

3 of 1964 (42 U.S.C. 2000d et seq.) may be used by the

4 Secretary to enforce paragraph (1).

5 ‘‘(l) ALLOTMENTS.—

6 ‘‘(1) DEFINITION OF STATE.—In this section, the

7 term ‘State’ means each of the 50 States, the District

8 of Columbia, Guam, and the Virgin Islands of the

9 United States.

10 ‘‘(2) STATE ALLOTMENT.—

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

12 subparagraph (B), from the amounts made

13 available under section 18 of this Act for each

14 fiscal year, the Secretary shall allot to each State

15 participating in the program established under

16 this section an amount that is equal to the sum

17 of—

18 ‘‘(i) the greater of, as determined by

19 the Secretary—

20 ‘‘(I) the total dollar value of all

21 benefits issued under the food stamp

22 program established under this Act by

23 the State during fiscal year 1994; or

24 ‘‘(II) the average per fiscal year of

25 the total dollar value of all benefits is-
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1 sued under the food stamp program by

2 the State during each of fiscal years

3 1992 through 1994; and

4 ‘‘(ii) the greater of, as determined by

5 the Secretary—

6 ‘‘(I) the total amount received by

7 the State for administrative costs and

8 the employment and training program

9 under subsections (a) and (h), respec10 tively, of section 16 of this Act for fis11 cal year 1994; or

12 ‘‘(II) the average per fiscal year of

13 the total amount received by the State

14 for administrative costs and the em15 ployment and training program under

16 subsections (a) and (h), respectively, of

17 section 16 of this Act for each of fiscal

18 years 1992 through 1994.

19 ‘‘(B) INSUFFICIENT FUNDS.—If the Sec20 retary finds that the total amount of allotments

21 to which States would otherwise be entitled for a

22 fiscal year under subparagraph (A) will exceed

23 the amount of funds that will be made available

24 to provide the allotments for the fiscal year, the

25 Secretary shall reduce the allotments made to
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1 States under this subsection, on a pro rata basis,

2 to the extent necessary to allot under this sub3 section a total amount that is equal to the funds

4 that will be made available.’’.

5 (b) RESEARCH ON OPTIONAL STATE FOOD ASSIST6 ANCE BLOCK GRANT.—Section 17 of the Food Stamp Act

7 of 1977 (7 U.S.C. 2026) (as amended by section 339 and

8 342(c)(2)) is further amended by adding at the end the fol9 lowing:

10 ‘‘(m) RESEARCH ON OPTIONAL STATE FOOD ASSIST11 ANCE BLOCK GRANT.—The Secretary may conduct research

12 on the effects and costs of a State program carried out

13 under section 25.’’.

14 SEC. 344. EFFECTIVE DATE.

15 Except as otherwise provided in this subtitle, this sub16 title and the amendments made by this subtitle shall become

17 effective on October 1, 1995.

18 Subtitle B—Anti-Fraud and

19 Trafficking

20 SEC. 351. EXPANDED DEFINITION OF COUPON.

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

22 2012(d)) is amended by striking ‘‘or type of certificate’’ and

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

24 check issued as a coupon, or access device, including an elec-
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1 tronic benefits transfer card or a personal identification

2 number,’’.

3 SEC. 352. DOUBLED PENALTIES FOR VIOLATING FOOD

4 STAMP PROGRAM REQUIREMENTS.

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

6 U.S.C. 2015(b)(1)) is amended—

7 (1) in clause (i), by striking ‘‘six months upon’’

8 and inserting ‘‘1 year on’’; and

9 (2) in clause (ii), by striking ‘‘1 year upon’’ and

10 inserting ‘‘2 years on’’.

11 SEC. 353. AUTHORITY TO ESTABLISH AUTHORIZATION PE12 RIODS.

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

14 2018(a)) is amended by adding at the end the following:

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

16 is authorized to issue regulations establishing specific

17 time periods during which authorization to accept

18 and redeem coupons under the food stamp program

19 shall be valid.’’.

20 SEC. 354. SPECIFIC PERIOD FOR PROHIBITING PARTICIPA21 TION OF STORES BASED ON LACK OF BUSI22 NESS INTEGRITY.

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

24 2018(a)) (as amended by section 353) is further amended

25 by adding at the end the following:
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1 ‘‘(4) PERIODS FOR PARTICIPATION OF STORES

2 AND CONCERNS.—The Secretary may issue regula3 tions establishing specific time periods during which

4 a retail food store or wholesale food concern that has

5 an application for approval to accept and redeem

6 coupons denied, or that has an approval withdrawn,

7 on the basis of business integrity and reputation can8 not submit a new application for approval. The peri9 ods shall reflect the severity of business integrity in10 fractions that are the basis of the denials or with11 drawals.’’.

12 SEC. 355. INFORMATION FOR VERIFYING ELIGIBILITY FOR

13 AUTHORIZATION.

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

15 2018(c)) is amended—

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

17 may include relevant income and sales tax filing doc18 uments,’’ after ‘‘submit information’’ ; and

19 (2) by inserting after the first sentence the fol20 lowing: ‘‘The regulations may require retail food

21 stores and wholesale food concerns to provide written

22 authorization for the Secretary to verify all relevant

23 tax filings with appropriate agencies and to obtain

24 corroborating documentation from other sources so
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1 that the accuracy of information provided by the

2 stores and concerns may be verified.’’.

3 SEC. 356. WAITING PERIOD FOR STORES THAT INITIALLY

4 FAIL TO MEET AUTHORIZATION CRITERIA.

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

6 2018(d)) is amended by adding at the end the following:

7 ‘‘A retail food store or wholesale food concern that has an

8 application for approval to accept and redeem coupons de9 nied because the store or concern does not meet criteria for

10 approval established by the Secretary by regulation may

11 not submit a new application for 6 months after the date

12 of the denial.’’.

13 SEC. 357. BASES FOR SUSPENSIONS AND DISQUALIFICA14 TIONS.

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

16 2021) is amended—

17 (1) by striking the section heading;

18 (2) by striking ‘‘SEC. 12 (a) Any’’ and inserting

19 the following:

20 ‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION

21 OF RETAIL FOOD STORES AND WHOLESALE

22 FOOD CONCERNS.

23 ‘‘(a) DISQUALIFICATION.—

24 ‘‘(1) IN GENERAL.—Any’’; and
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1 (3) in subsection (a), by adding at the end the

2 following:

3 ‘‘(2) BASIS.—Regulations issued pursuant to

4 this Act shall provide criteria for the finding of a vio5 lation, and the suspension or disqualification of a re6 tail food store or wholesale food concern, on the basis

7 of evidence that may include facts established through

8 on-site investigations, inconsistent redemption data,

9 or evidence obtained through transaction reports

10 under electronic benefits transfer systems.’’.

11 SEC. 358. DISQUALIFICATION OF STORES PENDING JUDI12 CIAL AND ADMINISTRATIVE REVIEW.

13 (a) AUTHORITY.—Section 12(a) of the Food Stamp Act

14 of 1977 (7 U.S.C. 2021(a)) (as amended by section 357)

15 is further amended by adding at the end the following:

16 ‘‘(3) DISQUALIFICATION PENDING REVIEW.—The

17 regulations may establish criteria under which the

18 authorization of a retail food store or wholesale food

19 concern to accept and redeem coupons may be sus20 pended at the time the store or concern is initially

21 found to have committed a violation of a requirement

22 of the food stamp program that would result in a per23 manent disqualification. The suspension may coincide

24 with the period of a review under section 14. The Sec-
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1 retary shall not be liable for the value of any sales

2 lost during a suspension or disqualification period.’’.

3 (b) REVIEW.—Section 14(a) of the Act (7 U.S.C.

4 2023(a)) is amended—

5 (1) in the first sentence, by striking ‘‘disqualified

6 or subjected’’ and inserting ‘‘suspended, disqualified,

7 or subjected’’;

8 (2) in the fifth sentence, by inserting before the

9 period at the end the following: ‘‘, except that, in the

10 case of the suspension of a retail food store or whole11 sale food concern under section 12(a)(3), the suspen12 sion shall remain in effect pending any judicial or

13 administrative review of the proposed disqualification

14 action, and the period of suspension shall be consid15 ered a part of any period of disqualification that is

16 imposed’’; and

17 (3) by striking the last sentence.

18 SEC. 359. DISQUALIFICATION OF RETAILERS WHO ARE DIS19 QUALIFIED UNDER THE WIC PROGRAM.

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

21 2021) is amended by adding at the end the following:

22 ‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE

23 DISQUALIFIED UNDER THE WIC PROGRAM.—

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

25 regulations providing criteria for the disqualification
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1 of an approved retail food store and a wholesale food

2 concern that is disqualified from accepting benefits

3 under the special supplemental nutrition program for

4 women, infants, and children established under sec5 tion 17 of the Child Nutrition Act of 1966 (7 U.S.C.

6 1786).

7 ‘‘(2) TERMS.—A disqualification under para8 graph (1)—

9 ‘‘(A) shall be for the same period as the dis10 qualification from the program referred to in

11 paragraph (1);

12 ‘‘(B) may begin at a later date than the dis13 qualification from the program referred to in

14 paragraph (1); and

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

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

17 SEC. 360. PERMANENT DEBARMENT OF RETAILERS WHO IN18 TENTIONALLY SUBMIT FALSIFIED APPLICA19 TIONS.

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

21 2021) (as amended by section 359) is further amended by

22 adding at the end the following:

23 ‘‘(h) FALSIFIED APPLICATIONS.—

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

25 regulations providing for the permanent disqualifica-
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1 tion of a retail food store, or wholesale food concern,

2 that knowingly submits an application for approval

3 to accept and redeem coupons that contains false in4 formation about a substantive matter that was, or

5 could have been, a basis for approving the applica6 tion.

7 ‘‘(2) REVIEW.—A disqualification under para8 graph (1) shall be subject to judicial and administra9 tive review under section 14, except that the disquali10 fication shall remain in effect pending the review.’’.

11 SEC. 361. EXPANDED CRIMINAL FORFEITURE FOR VIOLA12 TIONS.

13 (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD

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

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

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

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

18 U.S.C. 2024)) is amended by adding at the end the follow19 ing:

20 ‘‘(h) CRIMINAL FORFEITURE.—

21 ‘‘(A) IN GENERAL.—Any person convicted of

22 violating subsection (b) or (c) involving food

23 stamp benefits having an aggregate value of not

24 less than $5,000, shall forfeit to the United

25 States—
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1 ‘‘(i) any food stamp benefits and any

2 property constituting, or derived from, or

3 traceable to any proceeds the person ob4 tained directly or indirectly as a result of

5 the violation; and

6 ‘‘(ii) any food stamp benefits and any

7 property of the person used, or intended to

8 be used, in any manner or part, to commit,

9 or to facilitate the commission of the viola10 tion.

11 ‘‘(B) SENTENCE.—In imposing a sentence

12 on a person under subparagraph (A), a court

13 shall order that the person forfeit to the United

14 States all property described in this subsection.

15 ‘‘(C) PROCEDURES.—Any food stamp bene16 fits or property subject to forfeiture under this

17 subsection, any seizure or disposition of the bene18 fits or property, and any administrative or judi19 cial proceeding relating to the benefits or prop20 erty, shall be governed by subsections (b), (c), (e),

21 and (g) through (p) of section 413 of the Com22 prehensive Drug Abuse Prevention and Control

23 Act of 1970 (21 U.S.C. 853), if not inconsistent

24 with this subsection.
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1 ‘‘(3) EXCLUDED PROPERTY.—This subsection

2 shall not apply to property referred to in subsection

3 (g).’’.

4 SEC. 362. EFFECTIVE DATE.

5 This subtitle and the amendments made by this sub6 title shall become effective on October 1, 1995.

7 TITLE IV—CHILD NUTRITION

8 PROGRAMS

9 Subtitle A—Reimbursement Rates

10 SEC. 401. TERMINATION OF ADDITIONAL PAYMENT FOR

11 LUNCHES SERVED IN HIGH FREE AND RE12 DUCED PRICE PARTICIPATION SCHOOLS.

13 (a) IN GENERAL.—Section 4(b)(2) of the National

14 School Lunch Act (42 U.S.C. 1753(b)(2)) is amended by

15 striking ‘‘except that’’ and all that follows through ‘‘2 cents

16 more’’.

17 (b) EFFECTIVE DATE.—The amendment made by sub18 section (a) shall become effective on July 1, 1996.

19 SEC. 402. VALUE OF FOOD ASSISTANCE.

20 (a) IN GENERAL.—Section 6(e)(1) of the National

21 School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by

22 striking subparagraph (B) and inserting the following:

23 ‘‘(B) ADJUSTMENTS.—

24 ‘‘(i) IN GENERAL.—The value of food

25 assistance for each meal shall be adjusted
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1 each July 1 by the annual percentage

2 change in a 3-month average value of the

3 Price Index for Foods Used in Schools and

4 Institutions for March, April, and May

5 each year.

6 ‘‘(ii) ADJUSTMENTS.—Except as other7 wise provided in this subparagraph, in the

8 case of each school year, the Secretary

9 shall—

10 ‘‘(I) base the adjustment made

11 under clause (i) on the amount of the

12 unrounded adjustment for the preced13 ing school year;

14 ‘‘(II) adjust the resulting amount

15 in accordance with clause (i); and

16 ‘‘(III) round the result to the

17 nearest lower cent increment.

18 ‘‘(iii) ADJUSTMENT ON JANUARY 1,

19 1996.—On January 1, 1996, the Secretary

20 shall adjust the value of food assistance for

21 the remainder of the school year by round22 ing the previously established value of food

23 assistance to the nearest lower cent incre24 ment.
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1 ‘‘(iv) ADJUSTMENT FOR 1996–97

2 SCHOOL YEAR.—In the case of the school

3 year beginning July 1, 1996, the value of

4 food assistance shall be the same as the

5 value of food assistance in effect on June 30,

6 1996.

7 ‘‘(v) ADJUSTMENT FOR 1997–98 SCHOOL

8 YEAR.—In the case of the school year begin9 ning July 1, 1997, the Secretary shall—

10 ‘‘(I) base the adjustment made

11 under clause (i) on the amount of the

12 unrounded adjustment for the value of

13 food assistance for the school year be14 ginning July 1, 1995;

15 ‘‘(II) adjust the resulting amount

16 to reflect the annual percentage change

17 in a 3-month average value of the

18 Price Index for Foods Used in Schools

19 and Institutions for March, April, and

20 May for the most recent 12-month pe21 riod for which the data are available;

22 and

23 ‘‘(III) round the result to the

24 nearest lower cent increment.’’.
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1 (b) EFFECTIVE DATE.—The amendments made by sub2 section (a) shall become effective on January 1, 1996.

3 SEC. 403. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.

4 (a) IN GENERAL.—Section 11(a)(3)(B) of the National

5 School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amend6 ed—

7 (1) by designating the second and third sentences

8 as subparagraphs (C) and (D), respectively; and

9 (2) by striking subparagraph (D) (as so des10 ignated) and inserting the following:

11 ‘‘(D) ROUNDING.—Except as otherwise pro12 vided in this paragraph, in the case of each

13 school year, the Secretary shall—

14 ‘‘(i) base the adjustment made under

15 this paragraph on the amount of the

16 unrounded adjustment for the preceding

17 school year;

18 ‘‘(ii) adjust the resulting amount in

19 accordance with subparagraphs (B) and

20 (C); and

21 ‘‘(iii) round the result to the nearest

22 lower cent increment.

23 ‘‘(E) ADJUSTMENT ON JANUARY 1, 1996.—

24 On January 1, 1996, the Secretary shall adjust

25 the rates and factor for the remainder of the
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1 school year by rounding the previously estab2 lished rates and factor to the nearest lower cent

3 increment.

4 ‘‘(F) ADJUSTMENT FOR 24-MONTH PERIOD

5 BEGINNING JULY 1, 1996.—In the case of the 24-

6 month period beginning July 1, 1996, the na7 tional average payment rates for paid lunches,

8 paid breakfasts, and paid supplements shall be

9 the same as the national average payment rate

10 for paid lunches, paid breakfasts, and paid sup11 plements, respectively, for the school year begin12 ning July 1, 1995, rounded to the nearest lower

13 cent increment.

14 ‘‘(G) ADJUSTMENT FOR SCHOOL YEAR BE15 GINNING JULY 1, 1998.—In the case of the school

16 year beginning July 1, 1998, the Secretary

17 shall—

18 ‘‘(i) base the adjustments made under

19 this paragraph for—

20 ‘‘(I) paid lunches and paid break21 fasts on the amount of the unrounded

22 adjustment for paid lunches for the

23 school year beginning July 1, 1995;

24 and
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1 ‘‘(II) paid supplements on the

2 amount of the unrounded adjustment

3 for paid supplements for the school

4 year beginning July 1, 1995;

5 ‘‘(ii) adjust each resulting amount in

6 accordance with subparagraph (C); and

7 ‘‘(iii) round each result to the nearest

8 lower cent increment.’’.

9 (b) EFFECTIVE DATE.—The amendments made by sub10 section (a) shall become effective on January 1, 1996.

11 SEC. 404. SUMMER FOOD SERVICE PROGRAM FOR CHIL12 DREN.

13 (a) IN GENERAL.—Section 13(b) of the National

14 School Lunch Act (42 U.S.C. 1761(b)) is amended—

15 (1) by striking ‘‘(b)(1)’’ and all that follows

16 through the end of paragraph (1) and inserting the

17 following:

18 ‘‘(b) SERVICE INSTITUTIONS.—

19 ‘‘(1) PAYMENTS.—

20 ‘‘(A) IN GENERAL.—Except as otherwise

21 provided in this paragraph, payments to service

22 institutions shall equal the full cost of food serv23 ice operations (which cost shall include the costs

24 of obtaining, preparing, and serving food, but

25 shall not include administrative costs).
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1 ‘‘(B) MAXIMUM AMOUNTS.—Subject to sub2 paragraph (C), payments to any institution

3 under subparagraph (A) shall not exceed—

4 ‘‘(i) $2 for each lunch and supper

5 served;

6 ‘‘(ii) $1.20 for each breakfast served;

7 and

8 ‘‘(iii) 50 cents for each meal supple9 ment served.

10 ‘‘(C) ADJUSTMENTS.—Amounts specified in

11 subparagraph (B) shall be adjusted each Janu12 ary 1 to the nearest lower cent increment in ac13 cordance with the changes for the 12-month pe14 riod ending the preceding November 30 in the se15 ries for food away from home of the Consumer

16 Price Index for All Urban Consumers published

17 by the Bureau of Labor Statistics of the Depart18 ment of Labor. Each adjustment shall be based

19 on the unrounded adjustment for the prior 12-

20 month period.’’;

21 (2) in the second sentence of paragraph (3), by

22 striking ‘‘levels determined’’ and all that follows

23 through ‘‘this subsection’’ and inserting ‘‘level deter24 mined by the Secretary’’; and

25 (3) by striking paragraph (4).
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1 (b) EFFECTIVE DATE.—The amendments made by sub2 section (a) shall become effective on January 1, 1996.

3 SEC. 405. SPECIAL MILK PROGRAM.

4 (a) IN GENERAL.—Section 3(a) of the Child Nutrition

5 Act of 1966 (42 U.S.C. 1772(a)) is amended by striking

6 paragraph (8) and inserting the following:

7 ‘‘(8) ADJUSTMENTS.—

8 ‘‘(A) IN GENERAL.—Except as otherwise

9 provided in this paragraph, in the case of each

10 school year, the Secretary shall—

11 ‘‘(i) base the adjustment made under

12 paragraph (7) on the amount of the

13 unrounded adjustment for the preceding

14 school year;

15 ‘‘(ii) adjust the resulting amount in

16 accordance with paragraph (7); and

17 ‘‘(iii) round the result to the nearest

18 lower cent increment.

19 ‘‘(B) ADJUSTMENT ON JANUARY 1, 1996.—

20 On January 1, 1996, the Secretary shall adjust

21 the minimum rate for the remainder of the

22 school year by rounding the previously estab23 lished minimum rate to the nearest lower cent

24 increment.
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1 ‘‘(C) ADJUSTMENT FOR 1996–97 SCHOOL

2 YEAR.—In the case of the school year beginning

3 July 1, 1996, the minimum rate shall be the

4 same as the minimum rate in effect on June 30,

5 1996.

6 ‘‘(D) ADJUSTMENT FOR 1997–98 SCHOOL

7 YEAR.—In the case of the school year beginning

8 July 1, 1997, the Secretary shall—

9 ‘‘(i) base the adjustment made under

10 paragraph (7) on the amount of the

11 unrounded adjustment for the minimum

12 rate for the school year beginning July 1,

13 1995;

14 ‘‘(ii) adjust the resulting amount to re15 flect changes in the Producer Price Index

16 for Fresh Processed Milk published by the

17 Bureau of Labor Statistics of the Depart18 ment of Labor for the most recent 12-month

19 period for which the data are available; and

20 ‘‘(iii) round the result to the nearest

21 lower cent increment.’’.

22 (b) EFFECTIVE DATE.—The amendment made by sub23 section (a) shall become effective on January 1, 1996.
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1 SEC. 406. FREE AND REDUCED PRICE BREAKFASTS.

2 (a) IN GENERAL.—Section 4(b) of the Child Nutrition

3 Act of 1966 (42 U.S.C. 1773(b)) is amended—

4 (1) in the second sentence of paragraph (1)(B),

5 by striking ‘‘, adjusted to the nearest one-fourth cent’’

6 and inserting ‘‘(as adjusted pursuant to section 11(a)

7 of the National School Lunch Act (42 U.S.C.

8 1759a(a))’’; and

9 (2) in paragraph (2)(B)(ii)—

10 (A) by striking ‘‘nearest one-fourth cent’’

11 and inserting ‘‘nearest lower cent increment for

12 the applicable school year’’; and

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

14 the following: ‘‘, and the adjustment required by

15 this clause shall be based on the unrounded ad16 justment for the preceding school year’’.

17 (b) EFFECTIVE DATE.—The amendments made by sub18 section (a) shall become effective on July 1, 1996.

19 SEC. 407. CONFORMING REIMBURSEMENT FOR PAID BREAK20 FASTS AND LUNCHES.

21 (a) IN GENERAL.—The last sentence of section

22 4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C.

23 1773(b)(1)(B)) is amended by striking ‘‘8.25 cents’’ and all

24 that follows through ‘‘Act)’’ and inserting ‘‘the same as the

25 national average lunch payment for paid meals established
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1 under section 4(b) of the National School Lunch Act (42

2 U.S.C. 1753(b))’’.

3 (b) EFFECTIVE DATE.—The amendment made by sub4 section (a) shall become effective on January 1, 1996.

5 Subtitle B—Grant Programs

6 SEC. 411. SCHOOL BREAKFAST STARTUP GRANTS.

7 Section 4 of the Child Nutrition Act of 1966 (42 U.S.C.

8 1773) is amended by striking subsection (g).

9 SEC. 412. NUTRITION EDUCATION AND TRAINING PRO10 GRAMS.

11 Section 19(i)(2)(A) of the Child Nutrition Act of 1966

12 (42 U.S.C. 1788(i)(2)(A)) is amended by striking

13 ‘‘$10,000,000’’ and inserting ‘‘$7,000,000’’.

14 SEC. 413. EFFECTIVE DATE.

15 The amendments made by this subtitle shall become

16 effective on October 1, 1996.

17 Subtitle C—Other Amendments

18 SEC. 421. FREE AND REDUCED PRICE POLICY STATEMENT.

19 (a) SCHOOL LUNCH PROGRAM.—Section 9(b)(2) of the

20 National School Lunch Act (42 U.S.C. 1758(b)(2)) is

21 amended by adding at the end the following:

22 ‘‘(D) FREE AND REDUCED PRICE POLICY

23 STATEMENT.—After the initial submission, a

24 school shall not be required to submit a free and

25 reduced price policy statement to a State edu-
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1 cational agency under this Act unless there is a

2 substantive change in the free and reduced price

3 policy of the school. A routine change in the pol4 icy of a school, such as an annual adjustment of

5 the income eligibility guidelines for free and re6 duced price meals, shall not be sufficient cause

7 for requiring the school to submit a policy state8 ment.’’.

9 (b) SCHOOL BREAKFAST PROGRAM.—Section 4(b)(1)

10 of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1))

11 is amended by adding at the end the following:

12 ‘‘(E) FREE AND REDUCED PRICE POLICY

13 STATEMENT.—After the initial submission, a

14 school shall not be required to submit a free and

15 reduced price policy statement to a State edu16 cational agency under this Act unless there is a

17 substantive change in the free and reduced price

18 policy of the school. A routine change in the pol19 icy of a school, such as an annual adjustment of

20 the income eligibility guidelines for free and re21 duced price meals, shall not be sufficient cause

22 for requiring the school to submit a policy state23 ment.’’.
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1 SEC. 422. SUMMER FOOD SERVICE PROGRAM FOR CHIL2 DREN.

3 (a) PERMITTING OFFER VERSUS SERVE.—Section

4 13(f) of the National School Lunch Act (42 U.S.C. 1761(f))

5 is amended—

6 (1) by striking ‘‘(f) Service’’ and inserting the

7 following:

8 ‘‘(f) NUTRITIONAL STANDARDS.—

9 ‘‘(1) IN GENERAL.—Service’’; and

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

11 ‘‘(2) OFFER VERSUS SERVE.—A school food au12 thority participating as a service institution may

13 permit a child attending a site on school premises op14 erated directly by the authority to refuse not more

15 than 1 item of a meal that the child does not intend

16 to consume. A refusal of an offered food item shall not

17 affect the amount of payments made under this sec18 tion to a school for the meal.’’.

19 (b) REMOVING MANDATORY NOTICE TO INSTITU20 TIONS.—Section 13(n)(2) of the Act is amended by striking

21 ‘‘and its plans and schedule’’ and inserting ‘‘except that

22 the Secretary may not require a State to submit a plan

23 or schedule’’.
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1 SEC. 423. CHILD AND ADULT CARE FOOD PROGRAM.

2 (a) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph

3 (2) of the last sentence of section 17(a) of the National

4 School Lunch Act (42 U.S.C. 1766(a)) is amended—

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (B);

7 (2) by striking the period at the end of subpara8 graph (C) and inserting ‘‘; and’’; and

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

10 ‘‘(D) in the case of a family or group day

11 care home sponsoring organization that employs

12 more than 1 employee, the organization does not

13 base payments to an employee of the organiza14 tion on the number of family or group day care

15 homes recruited, managed, or monitored.’’.

16 (b) IMPROVED TARGETING OF DAY CARE HOME REIM17 BURSEMENTS.—

18 (1) RESTRUCTURED DAY CARE HOME REIM19 BURSEMENTS.—Section 17(f)(3) of the Act is amend20 ed by striking ‘‘(3)(A) Institutions’’ and all that fol21 lows through the end of subparagraph (A) and insert22 ing the following:

23 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY

24 CARE HOME SPONSORING ORGANIZATIONS.—

25 ‘‘(A) REIMBURSEMENT FACTOR.—
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1 ‘‘(i) IN GENERAL.—An institution that

2 participates in the program under this sec3 tion as a family or group day care home

4 sponsoring organization shall be provided,

5 for payment to a home sponsored by the or6 ganization, reimbursement factors in ac7 cordance with this subparagraph for the

8 cost of obtaining and preparing food and

9 prescribed labor costs involved in providing

10 meals under this section.

11 ‘‘(ii) TIER I FAMILY OR GROUP DAY

12 CARE HOMES.—

13 ‘‘(I) DEFINITION.—In this para14 graph, the term ‘tier I family or group

15 day care home’ means—

16 ‘‘(aa) a family or group day

17 care home that is located in a geo18 graphic area, as defined by the

19 Secretary based on census data, in

20 which at least 50 percent of the

21 children residing in the area are

22 members of households whose in23 comes meet the income eligibility

24 guidelines for free or reduced price

25 meals under section 9;
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1 ‘‘(bb) a family or group day

2 care home that is located in an

3 area served by a school enrolling

4 elementary students in which at

5 least 50 percent of the total num6 ber of children enrolled are cer7 tified eligible to receive free or re8 duced price school meals under

9 this Act or the Child Nutrition

10 Act of 1966 (42 U.S.C. 1771 et

11 seq.); or

12 ‘‘(cc) a family or group day

13 care home that is operated by a

14 provider whose household meets

15 the income eligibility guidelines

16 for free or reduced price meals

17 under section 9 and whose income

18 is verified by the sponsoring orga19 nization of the home under regu20 lations established by the Sec21 retary.

22 ‘‘(II) REIMBURSEMENT.—Except

23 as provided in subclause (III), a tier I

24 family or group day care home shall be

25 provided reimbursement factors under
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1 this clause without a requirement for

2 documentation of the costs described in

3 clause (i), except that reimbursement

4 shall not be provided under this

5 subclause for meals or supplements

6 served to the children of a person act7 ing as a family or group day care

8 home provider unless the children meet

9 the income eligibility guidelines for

10 free or reduced price meals under sec11 tion 9.

12 ‘‘(III) FACTORS.—Except as pro13 vided in subclause (IV), the reimburse14 ment factors applied to a home referred

15 to in subclause (II) shall be the factors

16 in effect on the date of enactment of

17 this subclause.

18 ‘‘(IV) ADJUSTMENTS.—The reim19 bursement factors under this subpara20 graph shall be adjusted on August 1,

21 1996, July 1, 1997, and each July 1

22 thereafter, to reflect changes in the

23 Consumer Price Index for food at home

24 for the most recent 12-month period for

25 which the data are available. The re-
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1 imbursement factors under this sub2 paragraph shall be rounded to the

3 nearest lower cent increment and based

4 on the unrounded adjustment in effect

5 on June 30 of the preceding school

6 year.

7 ‘‘(iii) TIER II FAMILY OR GROUP DAY

8 CARE HOMES.—

9 ‘‘(I) IN GENERAL.—

10 ‘‘(aa) FACTORS.—Except as

11 provided in subclause (II), with

12 respect to meals or supplements

13 served under this clause by a fam14 ily or group day care home that

15 does not meet the criteria set forth

16 in clause (ii)(I), the reimburse17 ment factors shall be $1 for

18 lunches and suppers, 30 cents for

19 breakfasts, and 15 cents for sup20 plements.

21 ‘‘(bb) ADJUSTMENTS.—The

22 factors shall be adjusted on July

23 1, 1997, and each July 1 there24 after, to reflect changes in the

25 Consumer Price Index for food at
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1 home for the most recent 12-month

2 period for which the data are

3 available. The reimbursement fac4 tors under this item shall be

5 rounded down to the nearest lower

6 cent increment and based on the

7 unrounded adjustment for the pre8 ceding 12-month period.

9 ‘‘(cc) REIMBURSEMENT.—A

10 family or group day care home

11 shall be provided reimbursement

12 factors under this subclause with13 out a requirement for documenta14 tion of the costs described in

15 clause (i), except that reimburse16 ment shall not be provided under

17 this subclause for meals or supple18 ments served to the children of a

19 person acting as a family or

20 group day care home provider un21 less the children meet the income

22 eligibility guidelines for free or re23 duced price meals under section 9.

24 ‘‘(II) OTHER FACTORS.—A family

25 or group day care home that does not
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1 meet the criteria set forth in clause

2 (ii)(I) may elect to be provided reim3 bursement factors determined in ac4 cordance with the following require5 ments:

6 ‘‘(aa) CHILDREN ELIGIBLE

7 FOR FREE OR REDUCED PRICE

8 MEALS.—In the case of meals or

9 supplements served under this

10 subsection to children who are

11 members of households whose in12 comes meet the income eligibility

13 guidelines for free or reduced price

14 meals under section 9, the family

15 or group day care home shall be

16 provided reimbursement factors

17 set by the Secretary in accordance

18 with clause (ii)(III).

19 ‘‘(bb) INELIGIBLE CHIL20 DREN.—In the case of meals or

21 supplements served under this

22 subsection to children who are

23 members of households whose in24 comes do not meet the income eli25 gibility guidelines, the family or
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1 group day care home shall be pro2 vided reimbursement factors in

3 accordance with subclause (I).

4 ‘‘(III) INFORMATION AND DETER5 MINATIONS.—

6 ‘‘(aa) IN GENERAL.—If a

7 family or group day care home

8 elects to claim the factors de9 scribed in subclause (II), the fam10 ily or group day care home spon11 soring organization serving the

12 home shall collect the necessary

13 income information, as deter14 mined by the Secretary, from any

15 parent or other caretaker to make

16 the determinations specified in

17 subclause (II) and shall make the

18 determinations in accordance

19 with rules prescribed by the Sec20 retary.

21 ‘‘(bb) CATEGORICAL ELIGI22 BILITY.—In making a determina23 tion under item (aa), a family or

24 group day care home sponsoring

25 organization may consider a child
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1 participating in or subsidized

2 under, or a child with a parent

3 participating in or subsidized

4 under, a federally or State sup5 ported child care or other benefit

6 program with an income eligi7 bility limit that does not exceed

8 the eligibility standard for free or

9 reduced price meals under section

10 9 to be a child who is a member

11 of a household whose income meets

12 the income eligibility guidelines

13 under section 9.

14 ‘‘(cc) FACTORS FOR CHIL15 DREN ONLY.—A family or group

16 day care home may elect to re17 ceive the reimbursement factors

18 prescribed under clause (ii)(III)

19 solely for the children participat20 ing in a program referred to in

21 item (bb) if the home elects not to

22 have income statements collected

23 from parents or other caretakers.

24 ‘‘(IV) SIMPLIFIED MEAL COUNT25 ING AND REPORTING PROCEDURES.—
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1 The Secretary shall prescribe sim2 plified meal counting and reporting

3 procedures for use by a family or

4 group day care home that elects to

5 claim the factors under subclause (II)

6 and by a family or group day care

7 home sponsoring organization that

8 sponsors the home. The procedures the

9 Secretary prescribes may include 1 or

10 more of the following:

11 ‘‘(aa) Setting an annual per12 centage for each home of the num13 ber of meals served that are to be

14 reimbursed in accordance with the

15 reimbursement factors prescribed

16 under clause (ii)(III) and an an17 nual percentage of the number of

18 meals served that are to be reim19 bursed in accordance with the re20 imbursement factors prescribed

21 under subclause (I), based on the

22 family income of children enrolled

23 in the home in a specified month

24 or other period.
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1 ‘‘(bb) Placing a home into 1

2 of 2 or more reimbursement cat3 egories annually based on the per4 centage of children in the home

5 whose households have incomes

6 that meet the income eligibility

7 guidelines under section 9, with

8 each such reimbursement category

9 carrying a set of reimbursement

10 factors such as the factors pre11 scribed under clause (ii)(III) or

12 subclause (I) or factors established

13 within the range of factors pre14 scribed under clause (ii)(III) and

15 subclause (I).

16 ‘‘(cc) Such other simplified

17 procedures as the Secretary may

18 prescribe.

19 ‘‘(V) MINIMUM VERIFICATION RE20 QUIREMENTS.—The Secretary may es21 tablish any necessary minimum ver22 ification requirements.’’.

23 (2) GRANTS TO STATES TO PROVIDE ASSISTANCE

24 TO FAMILY OR GROUP DAY CARE HOMES.—Section
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1 17(f)(3) of the Act is amended by adding at the end

2 the following:

3 ‘‘(D) GRANTS TO STATES TO PROVIDE AS4 SISTANCE TO FAMILY OR GROUP DAY CARE

5 HOMES.—

6 ‘‘(i) IN GENERAL.—

7 ‘‘(I) RESERVATION.—From

8 amounts made available to carry out

9 this section, the Secretary shall reserve

10 $5,000,000 of the amount made avail11 able for fiscal year 1996.

12 ‘‘(II) PURPOSE.—The Secretary

13 shall use the funds made available

14 under subclause (I) to provide grants

15 to States for the purpose of provid16 ing—

17 ‘‘(aa) assistance, including

18 grants, to family and day care

19 home sponsoring organizations

20 and other appropriate organiza21 tions, in securing and providing

22 training, materials, automated

23 data processing assistance, and

24 other assistance for the staff of the

25 sponsoring organizations; and
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1 ‘‘(bb) training and other as2 sistance to family and group day

3 care homes in the implementation

4 of the amendments to subpara5 graph (A) made by section

6 423(b)(1) of the Work Oppor7 tunity Act of 1995.

8 ‘‘(ii) ALLOCATION.—The Secretary

9 shall allocate from the funds reserved under

10 clause (i)(I)—

11 ‘‘(I) $30,000 in base funding to

12 each State; and

13 ‘‘(II) any remaining amount

14 among the States, based on the number

15 of family day care homes participating

16 in the program in a State during fis17 cal year 1994 as a percentage of the

18 number of all family day care homes

19 participating in the program during

20 fiscal year 1994.

21 ‘‘(iii) RETENTION OF FUNDS.—Of the

22 amount of funds made available to a State

23 for fiscal year 1996 under clause (i), the

24 State may retain not to exceed 30 percent
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1 of the amount to carry out this subpara2 graph.

3 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

4 payments received under this subparagraph

5 shall be in addition to payments that a

6 State receives under subparagraph (A) (as

7 amended by section 423(b)(1) of the Work

8 Opportunity Act of 1995).’’.

9 (3) PROVISION OF DATA.—Section 17(f)(3) of the

10 Act (as amended by paragraph (2)) is further amend11 ed by adding at the end the following:

12 ‘‘(E) PROVISION OF DATA TO FAMILY OR

13 GROUP DAY CARE HOME SPONSORING ORGANIZA14 TIONS.—

15 ‘‘(i) CENSUS DATA.—The Secretary

16 shall provide to each State agency admin17 istering a child and adult care food pro18 gram under this section data from the most

19 recent decennial census survey or other ap20 propriate census survey for which the data

21 are available showing which areas in the

22 State meet the requirements of subpara23 graph (A)(ii)(I)(aa). The State agency shall

24 provide the data to family or group day
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1 care home sponsoring organizations located

2 in the State.

3 ‘‘(ii) SCHOOL DATA.—

4 ‘‘(I) IN GENERAL.—A State agen5 cy administering the school lunch pro6 gram under this Act or the school

7 breakfast program under the Child Nu8 trition Act of 1966 (42 U.S.C. 1771 et

9 seq.) shall provide to approved family

10 or group day care home sponsoring or11 ganizations a list of schools serving ele12 mentary school children in the State in

which not less than 1 13 ⁄2 of the children

14 enrolled are certified to receive free or

15 reduced price meals. The State agency

16 shall collect the data necessary to cre17 ate the list annually and provide the

18 list on a timely basis to any approved

19 family or group day care home spon20 soring organization that requests the

21 list.

22 ‘‘(II) USE OF DATA FROM PRE23 CEDING SCHOOL YEAR.—In determin24 ing for a fiscal year or other annual

25 period whether a home qualifies as a
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1 tier I family or group day care home

2 under subparagraph (A)(ii)(I), the

3 State agency administering the pro4 gram under this section, and a family

5 or group day care home sponsoring or6 ganization, shall use the most current

7 available data at the time of the deter8 mination.

9 ‘‘(iii) DURATION OF DETERMINA10 TION.—For purposes of this section, a deter11 mination that a family or group day care

12 home is located in an area that qualifies the

13 home as a tier I family or group day care

14 home (as the term is defined in subpara15 graph (A)(ii)(I)), shall be in effect for 3

16 years (unless the determination is made on

17 the basis of census data, in which case the

18 determination shall remain in effect until

19 more recent census data are available) un20 less the State agency determines that the

21 area in which the home is located no longer

22 qualifies the home as a tier I family or

23 group day care home.’’.

24 (4) CONFORMING AMENDMENTS.—Section 17(c)

25 of the Act is amended by inserting ‘‘except as pro-
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1 vided in subsection (f)(3),’’ after ‘‘For purposes of this

2 section,’’ each place it appears in paragraphs (1), (2),

3 and (3).

4 (c) DISALLOWING MEAL CLAIMS.—The fourth sentence

5 of section 17(f)(4) of the Act is amended by inserting ‘‘(in6 cluding institutions that are not family or group day care

7 home sponsoring organizations)’’ after ‘‘institutions’’.

8 (d) ELIMINATION OF STATE PAPERWORK AND OUT9 REACH BURDEN.—Section 17 of the Act is amended by

10 striking subsection (k) and inserting the following:

11 ‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A

12 State participating in the program established under this

13 section shall provide sufficient training, technical assist14 ance, and monitoring to facilitate effective operation of the

15 program. The Secretary shall assist the State in developing

16 plans to fulfill the requirements of this subsection.’’.

17 (e) EFFECTIVE DATE.—

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section shall

20 become effective on the date of enactment of this Act.

21 (2) IMPROVED TARGETING OF DAY CARE HOME

22 REIMBURSEMENTS.—The amendments made by para23 graphs (1), (3), and (4) of subsection (b) shall become

24 effective on August 1, 1996.

25 (3) REGULATIONS.—
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1 (A) INTERIM REGULATIONS.—Not later than

2 February 1, 1996, the Secretary shall issue in3 terim regulations to implement—

4 (i) the amendments made by para5 graphs (1), (3), and (4) of subsection (b);

6 and

7 (ii) section 17(f)(3)(C) of the National

8 School Lunch Act (42 U.S.C.

9 1766(f)(3)(C)).

10 (B) FINAL REGULATIONS.—Not later than

11 August 1, 1996, the Secretary shall issue final

12 regulations to implement the provisions of law

13 referred to in subparagraph (A).

14 (f) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM

15 PARTICIPATION AND FAMILY DAY CARE LICENSING.—

16 (1) IN GENERAL.—The Secretary of Agriculture,

17 in conjunction with the Secretary of Health and

18 Human Services, shall study the impact of the

19 amendments made by this section on—

20 (A) the number of family day care homes

21 participating in the child and adult care food

22 program established under section 17 of the Na23 tional School Lunch Act (42 U.S.C. 1766);

24 (B) the number of day care home sponsor25 ing organizations participating in the program;
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1 (C) the number of day care homes that are

2 licensed, certified, registered, or approved by

3 each State in accordance with regulations issued

4 by the Secretary;

5 (D) the rate of growth of the numbers re6 ferred to in subparagraphs (A) through (C);

7 (E) the nutritional adequacy and quality of

8 meals served in family day care homes that—

9 (i) received reimbursement under the

10 program prior to the amendments made by

11 this section but do not receive reimburse12 ment after the amendments made by this

13 section; or

14 (ii) received full reimbursement under

15 the program prior to the amendments made

16 by this section but do not receive full reim17 bursement after the amendments made by

18 this section; and

19 (F) the proportion of low-income children

20 participating in the program prior to the

21 amendments made by this section and the pro22 portion of low-income children participating in

23 the program after the amendments made by this

24 section.
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1 (2) REQUIRED DATA.—Each State agency par2 ticipating in the child and adult care food program

3 under section 17 of the National School Lunch Act

4 (42 U.S.C. 1766) shall submit to the Secretary data

5 on—

6 (A) the number of family day care homes

7 participating in the program on July 31, 1996,

8 and July 31, 1997;

9 (B) the number of family day care homes li10 censed, certified, registered, or approved for serv11 ice on July 31, 1996, and July 31, 1997; and

12 (C) such other data as the Secretary may

13 require to carry out this subsection.

14 (3) SUBMISSION OF REPORT.—Not later than 2

15 years after the effective date of section 423 of this Act,

16 the Secretary shall submit the study required under

17 this subsection to the Committee on Economic and

18 Educational Opportunities of the House of Represent19 atives and the Committee on Agriculture, Nutrition,

20 and Forestry of the Senate.

21 SEC. 424. REDUCING REQUIRED REPORTS TO STATE AGEN22 CIES AND SCHOOLS.

23 Section 19 of the National School Lunch Act (42

24 U.S.C. 1769a) is amended by striking subsection (c) and

25 inserting the following:
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1 ‘‘(c) REPORT.—Not later than 1 year after the date

2 of enactment of the Work Opportunity Act of 1995, the Sec3 retary shall—

4 ‘‘(1) review all reporting requirements under this

5 Act and the Child Nutrition Act of 1966 (42 U.S.C.

6 1771 et seq.) that are in effect, as of the date of enact7 ment of the Work Opportunity Act of 1995, for agen8 cies and schools referred to in subsection (a); and

9 ‘‘(2) provide a report to the Committee on Eco10 nomic and Educational Opportunities of the House of

11 Representatives and the Committee on Agriculture,

12 Nutrition, and Forestry of the Senate that—

13 ‘‘(A) describes the reporting requirements

14 described in paragraph (1) that are required by

15 law;

16 ‘‘(B) makes recommendations concerning

17 the elimination of any requirement described in

18 subparagraph (A) because the contribution of the

19 requirement to program effectiveness is not suffi20 cient to warrant the paperwork burden that is

21 placed on agencies and schools referred to in sub22 section (a); and

23 ‘‘(C) provides a justification for reporting

24 requirements described in paragraph (1) that are

25 required solely by regulation.’’.
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1 Subtitle D—Reauthorization

2 SEC. 431. COMMODITY DISTRIBUTION PROGRAM; COMMOD3 ITY SUPPLEMENTAL FOOD PROGRAM.

4 (a) REAUTHORIZATION.—The first sentence of section

5 4(a) of the Agriculture and Consumer Protection Act of

6 1973 (Public Law 93–86; 7 U.S.C. 612c note) is amended

7 by striking ‘‘1995’’ and inserting ‘‘2002’’.

8 (b) ADMINISTRATIVE FUNDING.—Section 5(a)(2) of the

9 Act (Public Law 93–86; 7 U.S.C. 612c note) is amended

10 by striking ‘‘1995’’ and inserting ‘‘2002’’.

11 SEC. 432. EMERGENCY FOOD ASSISTANCE PROGRAM.

12 (a) REAUTHORIZATION.—The first sentence of section

13 204(a)(1) of the Emergency Food Assistance Act of 1983

14 (Public Law 98–8; 7 U.S.C. 612c note) is amended by strik15 ing ‘‘1995’’ and inserting ‘‘2002’’.

16 (b) PROGRAM TERMINATION.—Section 212 of the Act

17 (Public Law 98–8; 7 U.S.C. 612c note) is amended by strik18 ing ‘‘1995’’ and inserting ‘‘2002’’.

19 (c) REQUIRED PURCHASES OF COMMODITIES.—Sec20 tion 214 of the Act (Public Law 98–8; 7 U.S.C. 612c note)

21 is amended—

22 (1) in the first sentence of subsection (a), by

23 striking ‘‘1995’’ and inserting ‘‘2002’’; and

24 (2) in subsection (e), by striking ‘‘1995’’ each

25 place it appears and inserting ‘‘2002’’.
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1 (d) EXTENSION.—Section 13962 of the Omnibus Budg2 et Reconciliation Act of 1993 (Public Law 103–66; 107

3 Stat. 680) is amended by striking ‘‘1994, 1995, and 1996’’

4 each place it appears and inserting ‘‘1994 through 2002’’.

5 SEC. 433. SOUP KITCHENS PROGRAM.

6 Section 110 of the Hunger Prevention Act of 1988

7 (Public Law 100–435; 7 U.S.C. 612c note) is amended—

8 (1) in the first sentence of subsection (a), by

9 striking ‘‘1995’’ and inserting ‘‘2002’’; and

10 (2) in subsection (c)(2)—

11 (A) in the paragraph heading, by striking

12 ‘‘1995’’ and inserting ‘‘2002’’; and

13 (B) by striking ‘‘1995’’ each place it ap14 pears and inserting ‘‘2002’’.

15 SEC. 434. NATIONAL COMMODITY PROCESSING.

16 The first sentence of section 1114(a)(2)(A) of the Agri17 culture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is

18 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

19 SEC. 435. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

20 Section 5(d)(2) of the Agriculture and Consumer

21 Protection Act of 1973 (Public Law 93–86; 7 U.S.C.

22 612c note) is amended by striking ‘‘1995’’ and insert23 ing ‘‘2002’’.
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1 TITLE V—NONCITIZENS

2 SEC. 501. STATE OPTION TO PROHIBIT ASSISTANCE FOR

3 CERTAIN ALIENS.

4 (a) IN GENERAL.—A State may, at its option, prohibit

5 the use of any Federal funds received for the provision of

6 assistance under any means-tested public assistance pro7 gram for any individual who is a noncitizen of the United

8 States.

9 (b) EXCEPTIONS.—Subsection (a) shall not apply to—

10 (1) any individual who is described in subclause

11 (II), (III), or (IV) of section 1614(a)(1)(B)(i) of the

12 Social Security Act (42 U.S.C. 1382c(a)(1)(B)(i));

13 and

14 (2) any program described in section 502(f)(2).

15 SEC. 502. DEEMED INCOME REQUIREMENT FOR FEDERAL

16 AND FEDERALLY FUNDED PROGRAMS.

17 (a) DEEMING REQUIREMENT FOR FEDERAL AND FED18 ERALLY FUNDED PROGRAMS.—Subject to subsection (d), for

19 purposes of determining the eligibility of an individual

20 (whether a citizen or national of the United States or an

21 alien) for assistance and the amount of assistance, under

22 any Federal program of assistance provided or funded, in

23 whole or in part, by the Federal Government for which eli24 gibility is based on need, the income and resources described

25 in subsection (b) shall, notwithstanding any other provision
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1 of law, be deemed to be the income and resources of such

2 individual.

3 (b) DEEMED INCOME AND RESOURCES.—The income

4 and resources described in this subsection include the follow5 ing:

6 (1) The income and resources of any person who,

7 as a sponsor of such individual’s entry into the Unit8 ed States, or in order to enable such individual law9 fully to remain in the United States, executed an affi10 davit of support or similar agreement with respect to

11 such individual.

12 (2) The income and resources of the sponsor’s

13 spouse.

14 (c) LENGTH OF DEEMING PERIOD.—The requirement

15 of subsection (a) shall apply for the period for which the

16 sponsor has agreed, in such affidavit or agreement, to pro17 vide support for such individual, or for a period of 5 years

18 beginning on the date such individual was first lawfully

19 in the United States after the execution of such affidavit

20 or agreement, whichever period is longer.

21 (d) LIMITATION ON MEASUREMENT OF DEEMED IN22 COME AND RESOURCES.—

23 (1) IN GENERAL.—If a determination described

24 in paragraph (2) is made, the amount of income and

25 resources of the sponsor or the sponsor’s spouse which
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1 shall be attributed to the sponsored individual shall

2 not exceed the amount actually provided, for a period

3 beginning on the date of such determination and last4 ing 12 months or, if the address of the sponsor is un5 known to the sponsored individual on the date of such

6 determination, for 12 months after the address be7 comes known to the sponsored individual or to the

8 agency (which shall inform such individual within 7

9 days).

10 (2) DETERMINATION.—The determination de11 scribed in this paragraph is a determination by an

12 agency that a sponsored individual would, in the ab13 sence of the assistance provided by the agency, be un14 able to obtain food and shelter, taking into account

15 the individual’s own income, plus any cash, food,

16 housing, or other assistance provided by other indi17 viduals, including the sponsor.

18 (e) DEEMING AUTHORITY TO STATE AND LOCAL AGEN19 CIES.—

20 (1) IN GENERAL.—Notwithstanding any other

21 provision of law, but subject to an exception equiva22 lent to that in subsection (d), the State or local gov23 ernment may, for purposes of determining the eligi24 bility of an individual (whether a citizen or national

25 of the United States or an alien) for assistance, and
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1 the amount of assistance, under any State or local

2 program of assistance for which eligibility is based on

3 need, or any need-based program of assistance admin4 istered by a State or local government other than a

5 program described in subsection (a), require that the

6 income and resources described in paragraph (2) be

7 deemed to be the income and resources of such indi8 vidual.

9 (2) DEEMED INCOME AND RESOURCES.—The in10 come and resources described in this paragraph in11 clude the following:

12 (A) The income and resources of any person

13 who, as a sponsor of such individual’s entry into

14 the United States, or in order to enable such in15 dividual lawfully to remain in the United

16 States, executed an affidavit of support or simi17 lar agreement with respect to such individual.

18 (B) The income and resources of the spon19 sor’s spouse.

20 (3) LENGTH OF DEEMED INCOME PERIOD.—Sub21 ject to an exception equivalent to subsection (d), a

22 State or local government may impose a requirement

23 described in paragraph (1) for the period for which

24 the sponsor has agreed, in such affidavit or agree25 ment, to provide support for such individual, or for
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1 a period of 5 years beginning on the date such indi2 vidual was first lawfully in the United States after

3 the execution of such affidavit or agreement, which4 ever period is longer.

5 (f) APPLICABILITY OF SECTION.—

6 (1) INDIVIDUALS.—The provisions of this section

7 shall not apply to the eligibility of any individual

8 who is described in subclause (II), (III), or (IV) of

9 section 1614(a)(1)(B)(i) of the Social Security Act

10 (42 U.S.C. 1382c(a)(1)(B)(i)).

11 (2) PROGRAMS.—The provisions of this section

12 shall not apply to eligibility for—

13 (A) emergency medical services under title

14 XIX of the Social Security Act (42 U.S.C. 1396

15 et seq.);

16 (B) short-term emergency disaster relief;

17 (C) assistance or benefits under the Na18 tional School Lunch Act;

19 (D) assistance or benefits under the Child

20 Nutrition Act of 1966;

21 (E) public health assistance for immuniza22 tions with respect to immunizable diseases and

23 for testing and treatment for communicable dis24 eases if the Secretary of Health and Human
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1 Services determines that such testing and treat2 ment is necessary;

3 (F) the Head Start program (42 U.S.C.

4 9801); and

5 (G) programs specified by the Attorney

6 General, in the Attorney General’s sole and

7 unreviewable discretion after consultation with

8 appropriate Federal agencies and departments,

9 which (i) deliver services at the community level,

10 including through public or private nonprofit

11 agencies; (ii) do not condition the provision of

12 assistance, the amount of assistance provided, or

13 the cost of assistance provided on the individual

14 recipient’s income or resources; and (iii) are nec15 essary for the protection of life, safety, or public

16 health.

17 (g) CONFORMING AMENDMENTS.—

18 (1) Section 1621 of the Social Security Act (42

19 U.S.C. 1382j) is repealed.

20 (2) Section 1614(f)(3) of such Act (42 U.S.C.

21 1382c(f)(3)) is amended by striking ‘‘section 1621’’

22 and inserting ‘‘section 502 of the Work Opportunity

23 Act of 1995’’.
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1 SEC. 503. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

2 SUPPORT.

3 (a) ENFORCEABILITY.—No affidavit of support may be

4 relied upon by the Attorney General or by any consular

5 officer to establish that an alien is not excludable as a pub6 lic charge under section 212(a)(4) of the Immigration and

7 Nationality Act unless such affidavit is executed as a con8 tract—

9 (1) which is legally enforceable against the spon10 sor by the sponsored individual, by the Federal Gov11 ernment, and by any State, district, territory, or pos12 session of the United States (or any subdivision of

13 such State, district, territory, or possession of the

14 United States) which provides any benefit under a

15 program described in subsection (d)(2), but not later

16 than 10 years after the sponsored individual last re17 ceives any such benefit;

18 (2) in which the sponsor agrees to financially

19 support the sponsored individual, so that he or she

20 will not become a public charge, until the sponsored

21 individual has worked in the United States for 40

22 qualifying quarters; and

23 (3) in which the sponsor agrees to submit to the

24 jurisdiction of any Federal or State court for the pur25 pose of actions brought under subsection (d)(4).
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1 (b) FORMS.—Not later than 90 days after the date of

2 the enactment of this Act, the Secretary of State, the Attor3 ney General, and the Secretary of Health and Human Serv4 ices shall jointly formulate the affidavit of support described

5 in this section.

6 (c) NOTIFICATION OF CHANGE OF ADDRESS.—

7 (1) IN GENERAL.—The sponsor shall notify the

8 Attorney General and the State, district, territory, or

9 possession in which the sponsored individual is cur10 rently resident within 30 days of any change of ad11 dress of the sponsor during the period specified in

12 subsection (a)(1).

13 (2) PENALTY.—Any person subject to the re14 quirement of paragraph (1) who fails to satisfy such

15 requirement shall be subject to a civil penalty of—

16 (A) not less than $250 or more than $2,000,

17 or

18 (B) if such failure occurs with knowledge

19 that the sponsored individual has received any

20 benefit described in section 241(a)(5)(C) of the

21 Immigration and Nationality Act, not less than

22 $2,000 or more than $5,000.

23 (d) REIMBURSEMENT OF GOVERNMENT EXPENSES.—

24 (1) IN GENERAL.—Upon notification that a

25 sponsored individual has received any benefit under
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1 a program described in paragraph (2), the appro2 priate Federal, State, or local official shall request re3 imbursement by the sponsor in the amount of such as4 sistance.

5 (2) PROGRAMS DESCRIBED.—The programs de6 scribed in this paragraph include the following:

7 (A) Assistance under a State program fund8 ed under part A of title IV of the Social Security

9 Act.

10 (B) The medicaid program under title XIX

11 of the Social Security Act.

12 (C) The food stamp program under the

13 Food Stamp Act of 1977.

14 (D) The supplemental security income pro15 gram under title XVI of the Social Security Act.

16 (E) Any State general assistance program.

17 (F) Any other program of assistance funded,

18 in whole or in part, by the Federal Government

19 or any State or local government entity, for

20 which eligibility for benefits is based on need, ex21 cept the programs specified in section 502(f)(2).

22 (3) REGULATIONS.—The Commissioner of Social

23 Security shall prescribe such regulations as may be

24 necessary to carry out paragraph (1). Such regula-
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1 tions shall provide for notification to the sponsor by

2 certified mail to the sponsor’s last known address.

3 (4) REIMBURSEMENT.—If within 45 days after

4 requesting reimbursement, the appropriate Federal,

5 State, or local agency has not received a response

6 from the sponsor indicating a willingness to com7 mence payments, an action may be brought against

8 the sponsor pursuant to the affidavit of support.

9 (5) ACTION IN CASE OF FAILURE.—If the sponsor

10 fails to abide by the repayment terms established by

11 such agency, the agency may, within 60 days of such

12 failure, bring an action against the sponsor pursuant

13 to the affidavit of support.

14 (6) STATUTE OF LIMITATIONS.—No cause of ac15 tion may be brought under this subsection later than

16 10 years after the sponsored individual last received

17 any benefit under a program described in paragraph

18 (2).

19 (e) JURISDICTION.—For purposes of this section, no

20 State court shall decline for lack of jurisdiction to hear any

21 action brought against a sponsor for reimbursement of the

22 cost of any benefit under a program described in subsection

23 (d)(2) if the sponsored individual received public assistance

24 while residing in the State.

25 (f) DEFINITIONS.—For the purposes of this section—
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1 (1) the term ‘‘sponsor’’ means an individual

2 who—

3 (A) is a United States citizen or national

4 or an alien who is lawfully admitted to the

5 United States for permanent residence;

6 (B) is 18 years of age or over;

7 (C) is domiciled in any of the several States

8 of the United States, the District of Columbia, or

9 any territory or possession of the United States;

10 and

11 (D) demonstrates the means to maintain an

12 annual income equal to at least 200 percent of

13 the poverty line for the individual and the indi14 vidual’s family (including the sponsored individ15 ual), through evidence that shall include a copy

16 of the individual’s Federal income tax returns

17 for his or her most recent two taxable years and

18 a written statement, executed under oath or as

19 permitted under penalty of perjury under section

20 1746 of title 28, United States Code, that the

21 copies are true copies of such returns;

22 (2) the term ‘‘poverty line’’ has the same mean23 ing given such term in section 673(2) of the Commu24 nity Services Block Grant Act (42 U.S.C. 9902(2));

25 and
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1 (3) the term ‘‘qualifying quarter’’ means a three2 month period in which the sponsored individual

3 has—

4 (A) earned at least the minimum necessary

5 for the period to count as one of the 40 calendar

6 quarters required to qualify for social security

7 retirement benefits;

8 (B) not received need-based public assist9 ance; and

10 (C) had income tax liability for the tax

11 year of which the period was part.

12 SEC. 504. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI

13 BENEFITS.

14 (a) IN GENERAL.—Paragraph (1) of section 1614(a)

15 of the Social Security Act (42 U.S.C. 1382c(a)) is amend16 ed—

17 (1) in subparagraph (B)(i), by striking ‘‘either’’

18 and all that follows through ‘‘, or’’ and inserting ‘‘(I)

19 a citizen; (II) a noncitizen who is granted asylum

20 under section 208 of the Immigration and National21 ity Act or whose deportation has been withheld under

22 section 243(h) of such Act for a period of not more

23 than 5 years after the date of arrival into the United

24 States; (III) a noncitizen who is admitted to the

25 United States as a refugee under section 207 of such
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1 Act for not more than such 5-year period; (IV) a

2 noncitizen, lawfully present in any State (or any ter3 ritory or possession of the United States), who is a

4 veteran (as defined in section 101 of title 38, United

5 States Code) with a discharge characterized as an

6 honorable discharge and not on account of alienage or

7 who is the spouse or unmarried dependent child of

8 such veteran; or (V) a noncitizen who has worked suf9 ficient calendar quarters of coverage to be a fully in10 sured individual for benefits under title II, or’’; and

11 (2) by adding at the end the following new flush

12 sentence:

13 ‘‘For purposes of subparagraph (B)(i)(IV), the determina14 tion of whether a noncitizen is lawfully present in the Unit15 ed States shall be made in accordance with regulations of

16 the Attorney General. A noncitizen shall not be considered

17 to be lawfully present in the United States for purposes of

18 this title merely because the noncitizen may be considered

19 to be permanently residing in the United States under color

20 of law for purposes of any particular program.’’.

21 (b) EFFECTIVE DATE.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by subsection (a)

24 shall apply to applicants for benefits for months be25 ginning on or after the date of the enactment of this
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1 Act, without regard to whether regulations have been

2 issued to implement such amendments.

3 (2) APPLICATION TO CURRENT RECIPIENTS.—

4 (A) APPLICATION AND NOTICE.—Notwith5 standing any other provision of law, in the case

6 of an individual who is receiving supplemental

7 security income benefits under title XVI of the

8 Social Security Act as of the date of the enact9 ment of this Act and whose eligibility for such

10 benefits would terminate by reason of the amend11 ments made by subsection (a), such amendments

12 shall apply with respect to the benefits of such

13 individual for months beginning on or after Jan14 uary 1, 1997, and the Commissioner of Social

15 Security shall so notify the individual not later

16 than 90 days after the date of the enactment of

17 this Act.

18 (B) REAPPLICATION.—

19 (i) IN GENERAL.—Not later than 120

20 days after the date of the enactment of this

21 Act, each individual notified pursuant to

22 subparagraph (A) who desires to reapply

23 for benefits under title XVI of the Social Se24 curity Act shall reapply to the Commis25 sioner of Social Security.
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1 (ii) DETERMINATION OF ELIGI2 BILITY.—Not later than 1 year after the

3 date of the enactment of this Act, the Com4 missioner of Social Security shall determine

5 the eligibility of each individual who

6 reapplies for benefits under clause (i) pur7 suant to the procedures of such title XVI.

8 SEC. 505. TREATMENT OF NONCITIZENS.

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, a noncitizen who has entered into the United

11 States on or after the date of the enactment of this Act shall

12 not, during the 5-year period beginning on the date of such

13 noncitizen’s entry into the United States, be eligible to re14 ceive any benefits under any program of assistance pro15 vided, or funded, in whole or in part, by the Federal Gov16 ernment, for which eligibility for benefits is based on need.

17 (b) EXCEPTIONS.—Subsection (a) shall not apply to—

18 (1) any individual who is described in subclause

19 (II), (III), (IV), or (V) of section 1614(a)(1)(B)(i) of

20 the Social Security Act (42 U.S.C. 1382c(a)(1)(B)(i));

21 and

22 (2) any program described in section 502(f)(2);

23 and

24 (3) payments for foster care and adoption assist25 ance under part E of title IV of the Social Security
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1 Act for a child who would, in the absence of this sec2 tion, be eligible to have such payments made on the

3 child’s behalf under such part, but only if the foster

4 or adoptive parent or parents of such child are not

5 noncitizens described in subsection (a).

6 SEC. 506. INFORMATION REPORTING.

7 (a) TITLE IV OF THE SOCIAL SECURITY ACT.—Sec8 tion 405 of the Social Security Act, as added by section

9 101(b), is amended by adding at the end the following new

10 subsection:

11 ‘‘(g) STATE REQUIRED TO PROVIDE CERTAIN INFOR12 MATION.—Each State to which a grant is made under sec13 tion 403 shall, at least 4 times annually and upon request

14 of the Immigration and Naturalization Service, furnish the

15 Immigration and Naturalization Service with the name

16 and address of, and other identifying information on, any

17 individual who the State knows is unlawfully in the United

18 States.’’.

19 (b) SSI.—Section 1631(e) of such Act (42 U.S.C.

20 1383(e)) is amended—

21 (1) by redesignating the paragraphs (6) and (7)

22 inserted by sections 206(d)(2) and 206(f)(1) of the So23 cial Security Independence and Programs Improve24 ment Act of 1994 (Public Law 103–296; 108 Stat.
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1 1514, 1515) as paragraphs (7) and (8), respectively;

2 and

3 (2) by adding at the end the following new para4 graph:

5 ‘‘(9) Notwithstanding any other provision of law,

6 the Commissioner shall, at least 4 times annually and

7 upon request of the Immigration and Naturalization

8 Service (hereafter in this paragraph referred to as the

9 ‘Service’), furnish the Service with the name and ad10 dress of, and other identifying information on, any

11 individual who the Commissioner knows is unlaw12 fully in the United States, and shall ensure that each

13 agreement entered into under section 1616(a) with a

14 State provides that the State shall furnish such infor15 mation at such times with respect to any individual

16 who the State knows is unlawfully in the United

17 States.’’.

18 (c) HOUSING PROGRAMS.—Title I of the United States

19 Housing Act of 1937 (42 U.S.C. 1437 et seq.), as amended

20 by section 1003, is further amended by adding at the end

21 the following new section:

22 ‘‘SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCE23 MENT AND OTHER AGENCIES.

24 ‘‘(a) NOTICE TO IMMIGRATION AND NATURALIZATION

25 SERVICE OF ILLEGAL ALIENS.—Notwithstanding any other
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1 provision of law, the Secretary shall, at least 4 times annu2 ally and upon request of the Immigration and Naturaliza3 tion Service (hereafter in this subsection referred to as the

4 ‘Service’), furnish the Service with the name and address

5 of, and other identifying information on, any individual

6 who the Secretary knows is unlawfully in the United States,

7 and shall ensure that each contract for assistance entered

8 into under section 6 or 8 of this Act with a public housing

9 agency provides that the public housing agency shall fur10 nish such information at such times with respect to any

11 individual who the public housing agency knows is unlaw12 fully in the United States.’’.

13 SEC. 507. PROHIBITION ON PAYMENT OF FEDERAL BENE14 FITS TO CERTAIN PERSONS.

15 (a) IN GENERAL.—Notwithstanding any other provi16 sion of law and except as provided in subsection (b), Fed17 eral benefits shall not be paid or provided to any person

18 who is not a person lawfully present within the United

19 States.

20 (b) EXCEPTIONS.—Subsection (a) shall not apply with

21 respect to the following benefits:

22 (1) Emergency medical services under title XIX

23 of the Social Security Act.

24 (2) Short-term emergency disaster relief.
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1 (3) Assistance or benefits under the National

2 School Lunch Act.

3 (4) Assistance or benefits under the Child Nutri4 tion Act of 1966.

5 (5) Public health assistance for immunizations

6 and, if the Secretary of Health and Human Services

7 determines that it is necessary to prevent the spread

8 of a serious communicable disease, for testing and

9 treatment of such disease.

10 (c) DEFINITIONS.—For purposes of this section:

11 (1) FEDERAL BENEFIT.—The term ‘‘Federal ben12 efit’’ means—

13 (A) the issuance of any grant, contract,

14 loan, professional license, or commercial license

15 provided by an agency of the United States or

16 by appropriated funds of the United States; and

17 (B) any retirement, welfare, Social Secu18 rity, health, disability, public housing, post-sec19 ondary education, food stamps, unemployment

20 benefit, or any other similar benefit for which

21 payments or assistance are provided by an agen22 cy of the United States or by appropriated funds

23 of the United States.

24 (2) PERSON LAWFULLY PRESENT WITHIN THE

25 UNITED STATES.—The term ‘‘person lawfully present
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1 within the United States’’ means a person who, at the

2 time the person applies for, receives, or attempts to

3 receive a Federal benefit, is a United States citizen,

4 a permanent resident alien, an alien whose deporta5 tion has been withheld under section 243(h) of the Im6 migration and Nationality Act (8 U.S.C. 1253(h)),

7 an asylee, a refugee, a parolee who has been paroled

8 for a period of at least 1 year, a national, or a na9 tional of the United States for purposes of the immi10 gration laws of the United States (as defined in sec11 tion 101(a)(17) of the Immigration and Nationality

12 Act (8 U.S.C. 1101(a)(17)).

13 (d) STATE OBLIGATION.—Notwithstanding any other

14 provision of law, a State that administers a program that

15 provides a Federal benefit (described in section 507(c)(1))

16 or provides State benefits pursuant to such a program shall

17 not be required to provide such benefit to a person who is

18 not a person lawfully present within the United States (as

19 defined in section 507(c)(2)) through a State agency or with

20 appropriated funds of such State.

21 (e) VERIFICATION OF ELIGIBILITY.—(1) IN GEN22 ERAL.—Not later than 18 months after the date of the enact23 ment of this Act, the Attorney General of the United States,

24 after consultation with the Secretary of Health and Human

25 Services, shall promulgate regulations requiring verifica-
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1 tion that a person applying for a Federal benefit, including

2 a benefit described in section 507(b), is a person lawfully

3 present within the United States and is eligible to receive

4 such benefit. Such regulations shall, to the extent feasible,

5 require that information requested and exchanged be simi6 lar in form and manner to information requested and ex7 changed under section 1137 of the Social Security Act.

8 (2) STATE COMPLIANCE.—Not later than 24 months

9 after the date the regulations described in paragraph (1)

10 are adopted, a State that administers a program that pro11 vides a Federal benefit described in such paragraph shall

12 have in effect a verification system that complies with the

13 regulations.

14 (3) AUTHORIZATION OF APPROPRIATIONS.—There are

15 authorized to be appropriated such sums as may be nec16 essary to carry out the purpose of this section.

17 (f) SEVERABILITY.—If any provision of this title or

18 the application of such provision to any person or cir19 cumstance is held to be unconstitutional, the remainder of

20 this title and the application of the provisions of such to

21 any person or circumstance shall not be affected thereby.

22 TITLE VI—CHILD CARE

23 SEC. 601. SHORT TITLE.

24 This title may be cited as the ‘‘Child Care and Devel25 opment Block Grant Amendments Act of 1995’’.
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1 SEC. 602. AMENDMENTS TO THE CHILD CARE AND DEVEL2 OPMENT BLOCK GRANT ACT OF 1990.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

4 658B of the Child Care and Development Block Grant Act

5 of 1990 (42 U.S.C. 9858) is amended to read as follows:

6 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘There are authorized to be appropriated to carry out

8 this subchapter $1,000,000,000 for fiscal year 1996, and

9 such sums as may be necessary for each of the fiscal years

10 1997 through 2000.’’.

11 (b) LEAD AGENCY.—Section 658D(b) of the Child Care

12 and Development Block Grant Act of 1990 (42 U.S.C.

13 9858b(b)) is amended—

14 (1) in paragraph (1)—

15 (A) in subparagraph (A), by striking

16 ‘‘State’’ and inserting ‘‘governmental or non17 governmental’’; and

18 (B) in subparagraph (C), by inserting

19 ‘‘with sufficient time and Statewide distribution

20 of the notice of such hearing,’’ after ‘‘hearing in

21 the State’’; and

22 (2) in paragraph (2), by striking the second sen23 tence.

24 (c) APPLICATION AND PLAN.—Section 658E of the

25 Child Care and Development Block Grant Act of 1990 (42

26 U.S.C. 9858c) is amended—
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1 (1) in subsection (b), by striking ‘‘imple2 mented—’’ and all that follows through ‘‘plans.’’ and

3 inserting ‘‘implemented during a 2-year period.’’; and

4 (2) in subsection (c)—

5 (A) in paragraph (2)—

6 (i) in subparagraph (A)—

7 (I) in clause (iii) by striking the

8 semicolon and inserting a period; and

9 (II) by striking ‘‘except’’ and all

10 that follows through ‘‘1992.’’; and

11 (ii) in subparagraph (E)—

12 (I) by striking clause (ii) and in13 serting the following new clause:

14 ‘‘(ii) the State will implement mecha15 nisms to ensure that appropriate payment

16 mechanisms exist so that proper payments

17 under this subchapter will be made to pro18 viders within the State and to permit the

19 State to furnish information to such provid20 ers.’’; and

21 (II) by adding at the end thereof

22 the following new sentence: ‘‘In lieu of

23 any licensing and regulatory require24 ments applicable under State and local

25 law, the Secretary, in consultation
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1 with Indian tribes and tribal organiza2 tions, shall develop minimum child

3 care standards (that appropriately re4 flect tribal needs and available re5 sources) that shall be applicable to In6 dian tribes and tribal organization re7 ceiving assistance under this sub8 chapter.’’; and

9 (iii) by striking subparagraphs (H)

10 and (I);

11 (B) in paragraph (3)—

12 (i) in subparagraph (C)—

13 (I) in the subparagraph heading,

14 by striking ‘‘AND TO INCREASE’’ and

15 all that follows through ‘‘CARE SERV16 ICES’’;

17 (II) by striking ‘‘25 percent’’ and

18 inserting ‘‘15 percent’’; and

19 (III) by striking ‘‘and to provide

20 before-’’ and all that follows through

21 ‘‘658H)’’; and

22 (ii) by adding at the end thereof the

23 following new subparagraph:

24 ‘‘(D) LIMITATION ON ADMINISTRATIVE

25 COSTS.—Not more than 5 percent of the aggre-
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1 gate amount of payments received under this

2 subchapter by a State in each fiscal year may be

3 expended for administrative costs, not including

4 direct service costs, incurred by such State to

5 carry out all its functions and duties under this

6 subchapter.’’; and

7 (C) by adding at the end thereof the follow8 ing new paragraph:

9 ‘‘(6) SERVICES FOR THE WORKING POOR.—The

10 State plan shall described the manner in which serv11 ices will be provided to the working poor.’’.

12 (d) CLARIFICATION OF ELIGIBLE CHILD.—Section

13 658P(4)(B) of the Child care and Development Block Grant

14 Act of 1990 (42 U.S.C. 9858n(4)(B)) is amended by striking

15 ‘‘75 percent’’ and inserting ‘‘100 percent’’.

16 (e) QUALITY.—Section 658G of the Child Care and De17 velopment Block Grant Act of 1990 (42 U.S.C. 9858e) is

18 amended—

19 (1) in the matter preceding paragraph (1)—

20 (A) by striking ‘‘A State’’ and inserting

21 ‘‘(a) IN GENERAL.—A State’’;

22 (B) by striking ‘‘not less than 20 percent

23 of’’; and

24 (C) by striking ‘‘one or more of the follow25 ing’’ and inserting ‘‘carrying out the resource
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1 and referral activities described in subsection (b),

2 and for one or more of the activities described in

3 subsection (c).’’;

4 (2) in paragraph (1), by inserting before the pe5 riod the following: ‘‘, including providing comprehen6 sive consumer education to parents and the public, re7 ferrals that honor parental choice, and activities de8 signed to improve the quality and availability of

9 child care’’;

10 (3) by striking ‘‘(1) RESOURCE AND REFERRAL

11 PROGRAMS.—Operating’’ and inserting the following:

12 ‘‘(b) RESOURCE AND REFERRAL PROGRAMS.—The ac13 tivities described in this subsection are operating’’;

14 (4) by redesignating paragraphs (2) through (5)

15 as paragraphs (1) through (4), respectively;

16 (5) by inserting before paragraph (1) (as so re17 designated) the following:

18 ‘‘(c) OTHER ACTIVITIES.—The activities described in

19 this section are the following:’’; and

20 (6) by adding at the end thereof the following:

21 ‘‘(5) BEFORE- AND AFTER-SCHOOL ACTIVITIES.—

22 Increasing the availability of before- and after-school

23 care.

24 ‘‘(6) INFANT CARE.—Increasing the availability

25 of child care for infants under the age of 18 months.
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1 ‘‘(7) NONTRADITIONAL WORK HOURS.—Increas2 ing the availability of child care between the hours of

3 5:00 p.m. and 8:00 a.m.

4 ‘‘(d) NONDISCRIMINATION.—With respect to child care

5 providers that comply with applicable State law but which

6 are otherwise not required to be licensed by the State, the

7 State, in carrying out this section, may not discriminate

8 against such a provider if such provider desires to partici9 pate in resource and referral activities carried out under

10 subsection (b).’’.

11 (f) REPEAL.—Section 658H of the Child Care and De12 velopment Block Grant Act of 1990 (42 U.S.C. 9858f) is

13 repealed.

14 (g) ENFORCEMENT.—Section 658I(b)(2) of the Child

15 Care and Development Block Grant Act of 1990 (42 U.S.C.

16 9858g(b)(2)) is amended—

17 (1) in the matter following clause (ii) of sub18 paragraph (A), by striking ‘‘finding and that’’ and

19 all that follows through the period and inserting

20 ‘‘finding and may impose additional program re21 quirements on the State, including a requirement that

22 the State reimburse the Secretary for any funds that

23 were improperly expended for purposes prohibited or

24 not authorized by this subchapter, that the Secretary

25 deduct from the administrative portion of the State
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1 allotment for the following fiscal year an amount that

2 is less than or equal to any improperly expended

3 funds, or a combination of such options.’’; and

4 (2) by striking subparagraphs (B) and (C).

5 (h) REPORTS.—Section 658K of the Child Care and

6 Development Block Grant Act of 1990 (42 U.S.C. 9858i)

7 is amended—

8 (1) in the section heading, by striking ‘‘AN9 NUAL REPORT’’ and inserting ‘‘REPORTS’’; and

10 (2) in subsection (a)—

11 (A) in the subsection heading, by striking

12 ‘‘ANNUAL REPORT’’ and inserting ‘‘REPORTS’’;

13 (B) by striking ‘‘December 31, 1992, and

14 annually thereafter’’ and inserting ‘‘December

15 31, 1996, and every 2 years thereafter’’;

16 (C) in paragraph (2)—

17 (i) in subparagraph (A), by inserting

18 before the semicolon ‘‘and the types of child

19 care programs under which such assistance

20 is provided’’;

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

22 (iii) by redesignating subparagraphs

23 (C) and (D) as subparagraphs (B) and (C),

24 respectively;

25 (D) by striking paragraph (4);
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1 (E) by redesignating paragraphs (5) and

2 (6) as paragraphs (4) and (5), respectively;

3 (F) in paragraph (4), as so redesignated, by

4 striking ‘‘and’’ at the end thereof;

5 (G) in paragraph (5), as so redesignated, by

6 adding ‘‘and’’ at the end thereof; and

7 (H) by inserting after paragraph (5), as so

8 redesignated, the following new paragraph:

9 ‘‘(6) describing the extent and manner to which

10 the resource and referral activities are being carried

11 out by the State;’’.

12 (i) REPORT BY SECRETARY.—Section 658L of the

13 Child Care and Development Block Grant Act of 1990 (42

14 U.S.C. 9858j) is amended—

15 (1) by striking ‘‘1993’’ and inserting ‘‘1997’’;

16 (2) by striking ‘‘annually’’ and inserting ‘‘bi-an17 nually’’; and

18 (3) by striking ‘‘Education and Labor’’ and in19 serting ‘‘Economic and Educational Opportunities’’.

20 (j) ALLOTMENTS.—Section 658O of the Child Care and

21 Development Block Grant Act of 1990 (42 U.S.C. 9858m)

22 is amended—

23 (1) in subsection (c), by adding at the end there24 of the following new paragraph:
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1 ‘‘(6) CONSTRUCTION OR RENOVATION OF FACILI2 TIES.—

3 ‘‘(A) REQUEST FOR USE OF FUNDS.—An

4 Indian tribe or tribal organization may submit

5 to the Secretary a request to use amounts pro6 vided under this subsection for construction or

7 renovation purposes.

8 ‘‘(B) DETERMINATION.—With respect to a

9 request submitted under subparagraph (A), and

10 except as provided in subparagraph (C), upon a

11 determination by the Secretary that adequate fa12 cilities are not otherwise available to an Indian

13 tribe or tribal organization to enable such tribe

14 or organization to carry out child care programs

15 in accordance with this subchapter, and that the

16 lack of such facilities will inhibit the operation

17 of such programs in the future, the Secretary

18 may permit the tribe or organization to use as19 sistance provided under this subsection to make

20 payments for the construction or renovation of

21 facilities that will be used to carry out such pro22 grams.

23 ‘‘(C) LIMITATION.—The Secretary may not

24 permit an Indian tribe or tribal organization to

25 use amounts provided under this subsection for
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1 construction or renovation if such use will result

2 in a decrease in the level of child care services

3 provided by the tribe or organization as com4 pared to the level of such services provided by the

5 tribe or organization in the fiscal year preceding

6 the year for which the determination under sub7 paragraph (A) is being made.

8 ‘‘(D) UNIFORM PROCEDURES.—The Sec9 retary shall develop and implement uniform pro10 cedures for the solicitation and consideration of

11 requests under this paragraph.’’; and

12 (2) in subsection (e)—

13 (A) in paragraph (1), by striking ‘‘Any’’

14 and inserting ‘‘Except as provided in paragraph

15 (4), any’’; and

16 (B) by adding at the end thereof the follow17 ing new paragraph:

18 ‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZA19 TIONS.—Any portion of a grant or contract made to

20 an Indian tribe or tribal organization under sub21 section (c) that the Secretary determines is not being

22 used in a manner consistent with the provision of this

23 subchapter in the period for with the grant or con24 tract is made available, shall be reallocated by the

25 Secretary to other tribes or organization that have
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1 submitted applications under subsection (c) in pro2 portion to the original allocations to such tribes or or3 ganization.’’.

4 (k) DEFINITIONS.—Section 658P of the Child Care

5 and Development Block Grant Act of 1990 (42 U.S.C.

6 9858n) is amended—

7 (1) in paragraph (2), in the first sentence by in8 serting ‘‘or as a deposit for child care services if such

9 a deposit is required of other children being cared for

10 by the provider’’ after ‘‘child care services’’; and

11 (2) in paragraph (5)(B)—

12 (A) by inserting ‘‘great grandchild, sibling

13 (if the provider lives in a separate residence),’’

14 after ‘‘grandchild,’’;

15 (B) by striking ‘‘is registered and’’; and

16 (C) by striking ‘‘State’’ and inserting ‘‘ap17 plicable’’.

18 (l) APPLICATION OF SUBCHAPTER.—The Child Care

19 and Development Block Grant Act of 1990 (42 U.S.C. 9858

20 et seq.) is amended by adding at the end thereof the follow21 ing new section:

22 ‘‘SEC. 658T. APPLICATION TO OTHER PROGRAMS.

23 ‘‘Notwithstanding any other provision of law, a State

24 that uses funding for child care services under any Federal

25 program shall ensure that activities carried out using such
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1 funds meet the requirements, standards, and criteria of this

2 subchapter, except for the quality set-aside provisions of sec3 tion 658G, and the regulations promulgated under this sub4 chapter. Such sums shall be administered through a uni5 form State plan. To the maximum extent practicable,

6 amounts provided to a State under such programs shall be

7 transferred to the lead agency and integrated into the pro8 gram established under this subchapter by the State.’’.

9 SEC. 603. REPEALS AND TECHNICAL AND CONFORMING

10 AMENDMENTS.

11 (a) STATE DEPENDENT CARE DEVELOPMENT GRANTS

12 ACT.—The State Dependent Care Development Grants Act

13 (42 U.S.C. 9871 et seq.) is repealed.

14 (b) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

15 ASSISTANCE ACT OF 1985.—The Child Development Associ16 ate Scholarship Assistance Act of 1985 (42 U.S.C. 10901

17 et seq.) is repealed.

18 (c) ADDITIONAL CONFORMING AMENDMENTS.—

19 (1) RECOMMENDED LEGISLATION.—After con20 sultation with the appropriate committees of the Con21 gress and the Director of the Office of Management

22 and Budget, the Secretary of Health and Human

23 Services shall prepare and submit to the Congress a

24 legislative proposal in the form of an implementing

25 bill containing technical and conforming amendments
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1 to reflect the amendments and repeals made by this

2 title.

3 (2) SUBMISSION TO CONGRESS.—Not later than

4 6 months after the date of enactment of this title, the

5 Secretary of Health and Human Services shall sub6 mit the implementing bill referred to under para7 graph (1).

8 TITLE VII—PROTECTION OF

9 BATTERED INDIVIDUALS

10 SEC. 701. EXEMPTION OF BATTERED INDIVIDUALS FROM

11 CERTAIN REQUIREMENTS.

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of, or amendment made by, this Act, the applicable

14 administering authority of any specified provision may ex15 empt from (or modify) the application of such provision

16 to any individual who was battered or subjected to extreme

17 cruelty if the physical, mental, or emotional well-being of

18 the individual would be endangered by the application of

19 such provision to such individual. The applicable admin20 istering authority may take into consideration the family

21 circumstances and the counseling and other supportive serv22 ice needs of the individual.

23 (b) SPECIFIED PROVISIONS.—For purposes of this sec24 tion, the term ‘‘specified provision’’ means any require25 ment, limitation, or penalty under any of the following:
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1 (1) Sections 404, 405 (a) and (b), 406 (b), (c),

2 and (d), 414(d), 453(c), 469A, and 1614(a)(1) of the

3 Social Security Act.

4 (2) Sections 5(i) and 6 (d), (j), and (n) of the

5 Food Stamp Act of 1977.

6 (3) Sections 501(a) and 502 of this Act.

7 (c) DEFINITIONS AND SPECIAL RULES.—For purposes

8 of this section—

9 (1) BATTERED OR SUBJECTED TO EXTREME

10 CRUELTY.—The term ‘‘battered or subjected to extreme

11 cruelty’’ includes, but is not limited to—

12 (A) physical acts resulting in, or threaten13 ing to result in, physical injury;

14 (B) sexual abuse, sexual activity involving

15 a dependent child, forcing the caretaker relative

16 of a dependent child to engage in nonconsensual

17 sexual acts or activities, or threats of or attempts

18 at physical or sexual abuse;

19 (C) mental abuse; and

20 (D) neglect or deprivation of medical care.

21 (2) CALCULATION OF PARTICIPATION RATES.—

22 An individual exempted from the work requirements

23 under section 404 of the Social Security Act by rea24 son of subsection (a) shall not be included for pur-
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1 poses of calculating the State’s participation rate

2 under such section.

3 TITLE VIII—ADOPTION

4 EXPENSES

5 SEC. 801. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

6 (a) IN GENERAL.—Subpart C of part IV of subchapter

7 A of chapter 1 of the Internal Revenue Code of 1986 (relat8 ing to refundable credits) is amended by redesignating sec9 tion 35 as section 36 and by inserting after section 34 the

10 following new section:

11 ‘‘SEC. 35. ADOPTION EXPENSES.

12 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi13 vidual, there shall be allowed as a credit against the tax

14 imposed by this subtitle for the taxable year the amount

15 of the qualified adoption expenses paid or incurred by the

16 taxpayer during such taxable year.

17 ‘‘(b) LIMITATIONS.—

18 ‘‘(1) DOLLAR LIMITATION.—The aggregate

19 amount of qualified adoption expenses which may be

20 taken into account under subsection (a) with respect

21 to the adoption of a child shall not exceed $5,000.

22 ‘‘(2) INCOME LIMITATION.—The amount allow23 able as a credit under subsection (a) for any taxable

24 year shall be reduced (but not below zero) by an

25 amount which bears the same ratio to the amount so
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1 allowable (determined without regard to this para2 graph but with regard to paragraph (1)) as—

3 ‘‘(A) the amount (if any) by which the tax4 payer’s adjusted gross income exceeds $60,000,

5 bears to

6 ‘‘(B) $40,000.

7 ‘‘(3) DENIAL OF DOUBLE BENEFIT.—

8 ‘‘(A) IN GENERAL.—No credit shall be al9 lowed under subsection (a) for any expense for

10 which a deduction or credit is allowable under

11 any other provision of this chapter.

12 ‘‘(B) GRANTS.—No credit shall be allowed

13 under subsection (a) for any expense to the ex14 tent that funds for such expense are received

15 under any Federal, State, or local program.

16 ‘‘(c) QUALIFIED ADOPTION EXPENSES.—For purposes

17 of this section, the term ‘qualified adoption expenses’ means

18 reasonable and necessary adoption fees, court costs, attorney

19 fees, and other expenses which are directly related to the

20 legal and finalized adoption of a child by the taxpayer and

21 which are not incurred in violation of State or Federal law

22 or in carrying out any surrogate parenting arrangement.

23 The term ‘qualified adoption expenses’ shall not include any

24 expenses in connection with the adoption by an individual

25 of a child who is the child of such individual’s spouse.
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1 ‘‘(d) MARRIED COUPLES MUST FILE JOINT RE2 TURNS.—Rules similar to the rules of paragraphs (2), (3),

3 and (4) of section 21(e) shall apply for purposes of this sec4 tion.’’

5 (b) CONFORMING AMENDMENTS.—

6 (1) Paragraph (2) of section 1324(b) of title 31,

7 United States Code, is amended by inserting before

8 the period ‘‘, or from section 35 of such Code’’.

9 (2) The table of sections for subpart C of part IV

10 of subchapter A of chapter 1 of the Internal Revenue

11 Code of 1986 is amended by striking the last item and

12 inserting the following:

‘‘Sec. 35. Adoption expenses.

‘‘Sec. 36. Overpayments of tax.’’.

13 (c) EFFECTIVE DATE.—The amendments made by this

14 section shall apply to taxable years beginning after Decem15 ber 31, 1995.

16 SEC. 802. EXCLUSION OF ADOPTION ASSISTANCE.

17 (a) IN GENERAL.—Part III of subchapter B of chapter

18 1 of the Internal Revenue Code of 1986 is amended by redes19 ignating section 137 as section 138 and by inserting after

20 section 136 the following new section:

21 ‘‘SEC. 137. ADOPTION ASSISTANCE.

22 ‘‘(a) IN GENERAL.—Gross income of an employee does

23 not include employee adoption assistance benefits, or mili-
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1 tary adoption assistance benefits, received by the employee

2 with respect to the employee’s adoption of a child.

3 ‘‘(b) DEFINITIONS.—For purposes of this section—

4 ‘‘(1) EMPLOYEE ADOPTION ASSISTANCE BENE5 FITS.—The term ‘employee adoption assistance bene6 fits’ means payment by an employer of qualified

7 adoption expenses with respect to an employee’s adop8 tion of a child, or reimbursement by the employer of

9 such qualified adoption expenses paid or incurred by

10 the employee in the taxable year.

11 ‘‘(2) EMPLOYER AND EMPLOYEE.—The terms

12 ‘employer’ and ‘employee’ have the respective mean13 ings given such terms by section 127(c).

14 ‘‘(3) MILITARY ADOPTION ASSISTANCE BENE15 FITS.—The term ‘military adoption assistance bene16 fits’ means benefits provided under section 1052 of

17 title 10, United States Code, or section 514 of title 14,

18 United States Code.

19 ‘‘(4) QUALIFIED ADOPTION EXPENSES.—

20 ‘‘(A) IN GENERAL.—The term ‘qualified

21 adoption expenses’ means reasonable and nec22 essary adoption fees, court costs, attorney fees,

23 and other expenses—

24 ‘‘(i) which are directly related to, and

25 the principal purpose of which is for, the
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1 legal and finalized adoption of an eligible

2 child by the taxpayer, and

3 ‘‘(ii) which are not incurred in viola4 tion of State or Federal law or in carrying

5 out any surrogate parenting arrangement.

6 ‘‘(B) ELIGIBLE CHILD.—The term ‘eligible

7 child’ means any individual—

8 ‘‘(i) who has not attained age 18 as of

9 the time of the adoption, or

10 ‘‘(ii) who is physically or mentally in11 capable of caring for himself.

12 ‘‘(c) COORDINATION WITH OTHER PROVISIONS.—The

13 Secretary shall issue regulations to coordinate the applica14 tion of this section with the application of any other provi15 sion of this title which allows a credit or deduction with

16 respect to qualified adoption expenses.’’

17 (b) CLERICAL AMENDMENT.—The table of sections for

18 part III of subchapter B of chapter 1 of such Code is amend19 ed by striking the item relating to section 137 and inserting

20 the following new items:

‘‘Sec. 137. Adoption assistance.

‘‘Sec. 138. Cross references to other Acts.’’

21 (c) EFFECTIVE DATE.—The amendments made this

22 section shall apply to taxable years beginning after Decem23 ber 31, 1995.
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1 SEC. 803. WITHDRAWAL FROM IRA FOR ADOPTION EX2 PENSES.

3 (a) IN GENERAL.—Subsection (d) of section 408 of the

4 Internal Revenue Code of 1986 is amended by adding at

5 the end the following new paragraph:

6 ‘‘(8) QUALIFIED ADOPTION EXPENSES.—

7 ‘‘(A) IN GENERAL.—Any amount which is

8 paid or distributed out of an individual retire9 ment plan of the taxpayer, and which would (but

10 for this paragraph) be includible in gross in11 come, shall be excluded from gross income to the

12 extent that—

13 ‘‘(i) such amount exceeds the sum of—

14 ‘‘(I) the amount excludable under

15 section 137, and

16 ‘‘(II) any amount allowable as a

17 credit under this title with respect to

18 qualified adoption expenses; and

19 ‘‘(ii) such amount does not exceed the

20 qualified adoption expenses paid or in21 curred by the taxpayer during the taxable

22 year.

23 ‘‘(B) QUALIFIED ADOPTION EXPENSES.—

24 For purposes of this paragraph, the term ‘quali25 fied adoption expenses’ has the meaning given

26 such term by section 137, except that such term
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1 shall not include any expense in connection with

2 the adoption by an individual of a child who is

3 the child of such individual’s spouse.’’

4 (b) EFFECTIVE DATE.—The amendment made by this

5 section shall apply to taxable years beginning after Decem6 ber 31, 1995.

7 TITLE IX—CHILD SUPPORT

8 SEC. 900. REFERENCE TO SOCIAL SECURITY ACT.

9 Except as otherwise specifically provided, whenever in

10 this title an amendment is expressed in terms of an amend11 ment to or repeal of a section or other provision, the ref12 erence shall be considered to be made to that section or other

13 provision of the Social Security Act.

14 Subtitle A—Eligibility for Services;

15 Distribution of Payments

16 SEC. 901. STATE OBLIGATION TO PROVIDE CHILD SUPPORT

17 ENFORCEMENT SERVICES.

18 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

19 U.S.C. 654) is amended—

20 (1) by striking paragraph (4) and inserting the

21 following new paragraph:

22 ‘‘(4) provide that the State will—

23 ‘‘(A) provide services relating to the estab24 lishment of paternity or the establishment, modi25 fication, or enforcement of child support obliga-
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1 tions, as appropriate, under the plan with re2 spect to—

3 ‘‘(i) each child for whom (I) assistance

4 is provided under the State program funded

5 under part A of this title, (II) benefits or

6 services are provided under the State pro7 gram funded under part E of this title, or

8 (III) medical assistance is provided under

9 the State plan approved under title XIX,

10 unless the State agency administering the

11 plan determines (in accordance with para12 graph (29)) that it is against the best inter13 ests of the child to do so; and

14 ‘‘(ii) any other child, if an individual

15 applies for such services with respect to the

16 child; and

17 ‘‘(B) enforce any support obligation estab18 lished with respect to—

19 ‘‘(i) a child with respect to whom the

20 State provides services under the plan; or

21 ‘‘(ii) the custodial parent of such a

22 child.’’; and

23 (2) in paragraph (6)—

24 (A) by striking ‘‘provide that’’ and insert25 ing ‘‘provide that—’’;
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1 (B) by striking subparagraph (A) and in2 serting the following new subparagraph:

3 ‘‘(A) services under the plan shall be made

4 available to nonresidents on the same terms as to

5 residents;’’;

6 (C) in subparagraph (B), by inserting ‘‘on

7 individuals not receiving assistance under any

8 State program funded under part A’’ after ‘‘such

9 services shall be imposed’’;

10 (D) in each of subparagraphs (B), (C), (D),

11 and (E)—

12 (i) by indenting the subparagraph in

13 the same manner as, and aligning the left

14 margin of the subparagraph with the left

15 margin of, the matter inserted by subpara16 graph (B) of this paragraph; and

17 (ii) by striking the final comma and

18 inserting a semicolon; and

19 (E) in subparagraph (E), by indenting each

20 of clauses (i) and (ii) 2 additional ems.

21 (b) CONTINUATION OF SERVICES FOR FAMILIES CEAS22 ING TO RECEIVE ASSISTANCE UNDER THE STATE PRO23 GRAM FUNDED UNDER PART A.—Section 454 (42 U.S.C.

24 654) is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (23);

3 (2) by striking the period at the end of para4 graph (24) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (24) the following

6 new paragraph:

7 ‘‘(25) provide that when a family with respect to

8 which services are provided under the plan ceases to

9 receive assistance under the State program funded

10 under part A, the State shall provide appropriate no11 tice to the family and continue to provide such serv12 ices, subject to the same conditions and on the same

13 basis as in the case of individuals to whom services

14 are furnished under this section, except that an appli15 cation or other request to continue services shall not

16 be required of such a family and paragraph (6)(B)

17 shall not apply to the family.’’.

18 (c) CONFORMING AMENDMENTS.—

19 (1) Section 452(b) (42 U.S.C. 652(b)) is amend20 ed by striking ‘‘454(6)’’ and inserting ‘‘454(4)’’.

21 (2) Section 452(g)(2)(A) (42 U.S.C.

22 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

23 place it appears and inserting ‘‘454(4)(A)(ii)’’.

24 (3) Section 466(a)(3)(B) (42 U.S.C.

25 666(a)(3)(B)) is amended by striking ‘‘in the case of
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1 overdue support which a State has agreed to collect

2 under section 454(6)’’ and inserting ‘‘in any other

3 case’’.

4 (4) Section 466(e) (42 U.S.C. 666(e)) is amended

5 by striking ‘‘paragraph (4) or (6) of section 454’’ and

6 inserting ‘‘section 454(4)’’.

7 SEC. 902. DISTRIBUTION OF CHILD SUPPORT COLLEC8 TIONS.

9 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

10 amended to read as follows:

11 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

12 ‘‘(a) IN GENERAL.—An amount collected on behalf of

13 a family as support by a State pursuant to a plan approved

14 under this part shall be distributed as follows:

15 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

16 case of a family receiving assistance from the State,

17 the State shall—

18 ‘‘(A) retain, or distribute to the family, the

19 State share of the amount so collected; and

20 ‘‘(B) pay to the Federal Government the

21 Federal share of the amount so collected.

22 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS23 SISTANCE.—In the case of a family that formerly re24 ceived assistance from the State:
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1 ‘‘(A) CURRENT SUPPORT PAYMENTS.—The

2 State shall, with regard to amounts collected

3 which represent amounts owed for the current

4 month, distribute the amounts so collected to the

5 family.

6 ‘‘(B) PAYMENT OF ARREARAGES.—The

7 State shall, with regard to amounts collected

8 which exceed amounts owed for the current

9 month, distribute the amounts so collected as fol10 lows:

11 ‘‘(i) DISTRIBUTION TO THE FAMILY TO

12 SATISFY ARREARAGES THAT ACCRUED

13 AFTER THE FAMILY RECEIVED ASSIST14 ANCE.—The State shall distribute the

15 amount so collected to the family to the ex16 tent necessary to satisfy any support ar17 rearages with respect to the family that ac18 crued after the family stopped receiving as19 sistance from the State.

20 ‘‘(ii) DISTRIBUTION TO THE FAMILY TO

21 SATISFY ARREARAGES THAT ACCRUED BE22 FORE OR WHILE THE FAMILY RECEIVED AS23 SISTANCE TO THE EXTENT PAYMENTS EX24 CEED ASSISTANCE RECEIVED.—In the case

25 of arrearages of support obligations with re-
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1 spect to the family that were assigned to the

2 State making or receiving the collection, as

3 a condition of receiving assistance from the

4 State, and which accrued before or while the

5 family received such assistance, the State

6 may retain all or a part of the State share

7 and if the State does so retain, shall retain

8 and pay to the Federal Government the

9 Federal share of amounts so collected, to the

10 extent the amount so retained does not ex11 ceed the amount of assistance provided to

12 the family by the State.

13 ‘‘(iii) DISTRIBUTION OF THE REMAIN14 DER TO THE FAMILY.—To the extent that

15 neither clause (i) nor clause (ii) applies to

16 the amount so collected, the State shall dis17 tribute the amount to the family.

18 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST19 ANCE.—In the case of any other family, the State

20 shall distribute the amount so collected to the family.

21 ‘‘(4) FAMILIES UNDER CERTAIN AGREEMENTS.—

22 In the case of a family receiving assistance from an

23 Indian tribe, distribute the amount so collected pursu24 ant to an agreement entered into pursuant to a State

25 plan under section 454(32).
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1 ‘‘(b) TRANSITION RULE.—Any rights to support obli2 gations which were assigned to a State as a condition of

3 receiving assistance from the State under part A before the

4 effective date of the Work Opportunity Act of 1995 shall

5 remain assigned after such date.

6 ‘‘(c) DEFINITIONS.—As used in subsection (a):

7 ‘‘(1) ASSISTANCE.—The term ‘assistance from

8 the State’ means—

9 ‘‘(A) assistance under the State program

10 funded under part A or under the State plan ap11 proved under part A of this title (as in effect be12 fore October 1, 1995); or

13 ‘‘(B) benefits under the State plan approved

14 under part E of this title.

15 ‘‘(2) FEDERAL SHARE.—The term ‘Federal share’

16 means, with respect to an amount collected by the

17 State to satisfy a support obligation owed to a family

18 for a time period—

19 ‘‘(A) the greatest Federal medical assistance

20 percentage in effect for the State for fiscal year

21 1995 or any succeeding fiscal year; or

22 ‘‘(B) if support is not owed to the family

23 for any month for which the family received aid

24 to families with dependent children under the

25 State plan approved under part A of this title
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1 (as in effect before October 1, 1995), the Federal

2 reimbursement percentage for the fiscal year in

3 which the time period occurs.

4 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT5 AGE.—The term ‘Federal medical assistance percent6 age’ means—

7 ‘‘(A) the Federal medical assistance percent8 age (as defined in section 1905(b)) in the case of

9 any State for which subparagraph (B) does not

10 apply; or

11 ‘‘(B) the Federal medical assistance percent12 age (as defined in section 1118), in the case of

13 Puerto Rico, the Virgin Islands, Guam, and

14 American Samoa.

15 ‘‘(4) FEDERAL REIMBURSEMENT PERCENTAGE.—

16 The term ‘Federal reimbursement percentage’ means,

17 with respect to a fiscal year—

18 ‘‘(A) the total amount paid to the State

19 under section 403 for the fiscal year; divided by

20 ‘‘(B) the total amount expended by the

21 State to carry out the State program under part

22 A during the fiscal year.

23 ‘‘(5) STATE SHARE.—The term ‘State share’

24 means 100 percent minus the Federal share.’’.
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1 (b) CONFORMING AMENDMENT.—Section 464(a)(1) (42

2 U.S.C. 664(a)(1)) is amended by striking ‘‘section 457(b)(4)

3 or (d)(3)’’ and inserting ‘‘section 457’’.

4 (c) CLERICAL AMENDMENTS.—Section 454 (42 U.S.C.

5 654) is amended—

6 (1) in paragraph (11)—

7 (A) by striking ‘‘(11)’’ and inserting

8 ‘‘(11)(A)’’; and

9 (B) by inserting after the semicolon ‘‘and’’;

10 and

11 (2) by redesignating paragraph (12) as subpara12 graph (B) of paragraph (11).

13 (d) EFFECTIVE DATE.—

14 (1) GENERAL RULE.—Except as provided in

15 paragraphs (2) and (3), the amendment made by sub16 section (a) shall become effective on October 1, 1999.

17 (2) EARLIER EFFECTIVE DATE FOR RULES RE18 LATING TO DISTRIBUTION OF SUPPORT COLLECTED

19 FOR FAMILIES RECEIVING ASSISTANCE.—Section

20 457(a)(1) of the Social Security Act, as added by the

21 amendment made by subsection (a), shall become ef22 fective on October 1, 1995.

23 (3) SPECIAL RULE.—A State may elect to have

24 the amendment made by subsection (a) become effec25 tive on a date earlier than October 1, 1999, which
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1 date shall coincide with the operation of the single

2 statewide automated data processing and information

3 retrieval system required by section 454A of the So4 cial Security Act (as added by section 944(a)(2)) and

5 the State disbursement unit required by section 454B

6 of the Social Security Act (as added by section

7 912(b)), and the existence of State requirements for

8 assignment of support as a condition of eligibility for

9 assistance under part A of the Social Security Act (as

10 added by title I).

11 (4) CLERICAL AMENDMENTS.—The amendments

12 made by subsection (b) shall become effective on Octo13 ber 1, 1995.

14 SEC. 903. RIGHTS TO NOTIFICATION AND HEARINGS.

15 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

16 amended by section 902(b), is amended by inserting after

17 paragraph (11) the following new paragraph:

18 ‘‘(12) establish procedures to provide that—

19 ‘‘(A) individuals who are applying for or

20 receiving services under this part, or are parties

21 to cases in which services are being provided

22 under this part—

23 ‘‘(i) receive notice of all proceedings in

24 which support obligations might be estab25 lished or modified; and
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1 ‘‘(ii) receive a copy of any order estab2 lishing or modifying a child support obliga3 tion, or (in the case of a petition for modi4 fication) a notice of determination that

5 there should be no change in the amount of

6 the child support award, within 14 days

7 after issuance of such order or determina8 tion; and

9 ‘‘(B) individuals applying for or receiving

10 services under this part have access to a fair

11 hearing or other formal complaint procedure that

12 meets standards established by the Secretary and

13 ensures prompt consideration and resolution of

14 complaints (but the resort to such procedure shall

15 not stay the enforcement of any support order);’’.

16 (b) EFFECTIVE DATE.—The amendment made by sub17 section (a) shall become effective on October 1, 1997.

18 SEC. 904. PRIVACY SAFEGUARDS.

19 (a) STATE PLAN REQUIREMENT.—Section 454 (42

20 U.S.C. 654), as amended by section 901(b), is amended—

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

22 (24);

23 (2) by striking the period at the end of para24 graph (25) and inserting ‘‘; and’’; and
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1 (3) by adding after paragraph (25) the following

2 new paragraph:

3 ‘‘(26) will have in effect safeguards, applicable to

4 all confidential information handled by the State

5 agency, that are designed to protect the privacy rights

6 of the parties, including—

7 ‘‘(A) safeguards against unauthorized use or

8 disclosure of information relating to proceedings

9 or actions to establish paternity, or to establish

10 or enforce support;

11 ‘‘(B) prohibitions against the release of in12 formation on the whereabouts of 1 party to an13 other party against whom a protective order

14 with respect to the former party has been en15 tered; and

16 ‘‘(C) prohibitions against the release of in17 formation on the whereabouts of 1 party to an18 other party if the State has reason to believe that

19 the release of the information may result in

20 physical or emotional harm to the former

21 party.’’.

22 (b) EFFECTIVE DATE.—The amendment made by sub23 section (a) shall become effective on October 1, 1997.
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1 Subtitle B—Locate and Case

2 Tracking

3 SEC. 911. STATE CASE REGISTRY.

4 Section 454A, as added by section 944(a)(2), is amend5 ed by adding at the end the following new subsections:

6 ‘‘(e) STATE CASE REGISTRY.—

7 ‘‘(1) CONTENTS.—The automated system re8 quired by this section shall include a registry (which

9 shall be known as the ‘State case registry’) that con10 tains records with respect to—

11 ‘‘(A) each case in which services are being

12 provided by the State agency under the State

13 plan approved under this part; and

14 ‘‘(B) each support order established or

15 modified in the State on or after October 1,

16 1998.

17 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The State

18 case registry may be established by linking local case

19 registries of support orders through an automated in20 formation network, subject to this section.

21 ‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—

22 Such records shall use standardized data elements for

23 both parents (such as names, social security numbers

24 and other uniform identification numbers, dates of

25 birth, and case identification numbers), and contain
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1 such other information (such as on-case status) as the

2 Secretary may require.

3 ‘‘(4) PAYMENT RECORDS.—Each case record in

4 the State case registry with respect to which services

5 are being provided under the State plan approved

6 under this part and with respect to which a support

7 order has been established shall include a record of—

8 ‘‘(A) the amount of monthly (or other peri9 odic) support owed under the order, and other

10 amounts (including arrearages, interest or late

11 payment penalties, and fees) due or overdue

12 under the order;

13 ‘‘(B) any amount described in subpara14 graph (A) that has been collected;

15 ‘‘(C) the distribution of such collected

16 amounts;

17 ‘‘(D) the birth date of any child for whom

18 the order requires the provision of support; and

19 ‘‘(E) the amount of any lien imposed with

20 respect to the order pursuant to section

21 466(a)(4).

22 ‘‘(5) UPDATING AND MONITORING.—The State

23 agency operating the automated system required by

24 this section shall promptly establish and maintain,

25 and regularly monitor, case records in the State case
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1 registry with respect to which services are being pro2 vided under the State plan approved under this part,

3 on the basis of—

4 ‘‘(A) information on administrative actions

5 and administrative and judicial proceedings and

6 orders relating to paternity and support;

7 ‘‘(B) information obtained from comparison

8 with Federal, State, or local sources of informa9 tion;

10 ‘‘(C) information on support collections and

11 distributions; and

12 ‘‘(D) any other relevant information.

13 ‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLO14 SURES OF INFORMATION.—The State shall use the auto15 mated system required by this section to extract informa16 tion from (at such times, and in such standardized format

17 or formats, as may be required by the Secretary), to share

18 and compare information with, and to receive information

19 from, other data bases and information comparison serv20 ices, in order to obtain (or provide) information necessary

21 to enable the State agency (or the Secretary or other State

22 or Federal agencies) to carry out this part, subject to section

23 6103 of the Internal Revenue Code of 1986. Such informa24 tion comparison activities shall include the following:
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1 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP2 PORT ORDERS.—Furnishing to the Federal Case Reg3 istry of Child Support Orders established under sec4 tion 453(h) (and update as necessary, with informa5 tion including notice of expiration of orders) the min6 imum amount of information on child support cases

7 recorded in the State case registry that is necessary

8 to operate the registry (as specified by the Secretary

9 in regulations).

10 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—Ex11 changing information with the Federal Parent Loca12 tor Service for the purposes specified in section 453.

13 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MED14 ICAID AGENCIES.—Exchanging information with

15 State agencies (of the State and of other States) ad16 ministering programs funded under part A, programs

17 operated under State plans under title XIX, and other

18 programs designated by the Secretary, as necessary to

19 perform State agency responsibilities under this part

20 and under such programs.

21 ‘‘(4) INTRASTATE AND INTERSTATE INFORMATION

22 COMPARISONS.—Exchanging information with other

23 agencies of the State, agencies of other States, and

24 interstate information networks, as necessary and ap-
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1 propriate to carry out (or assist other States to carry

2 out) the purposes of this part.’’.

3 SEC. 912. COLLECTION AND DISBURSEMENT OF SUPPORT

4 PAYMENTS.

5 (a) STATE PLAN REQUIREMENT.—Section 454 (42

6 U.S.C. 654), as amended by sections 901(b) and 904(a), is

7 amended—

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

9 (25);

10 (2) by striking the period at the end of para11 graph (26) and inserting ‘‘; and’’; and

12 (3) by adding after paragraph (26) the following

13 new paragraph:

14 ‘‘(27) provide that, on and after October 1, 1998,

15 the State agency will—

16 ‘‘(A) operate a State disbursement unit in

17 accordance with section 454B; and

18 ‘‘(B) have sufficient State staff (consisting

19 of State employees), and (at State option) pri20 vate or governmental contractors reporting di21 rectly to the State agency, to—

22 ‘‘(i) provide automated monitoring

23 and enforcement of support collections

24 through the unit (including carrying out
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1 the automated data processing responsibil2 ities described in section 454A(g)); and

3 ‘‘(ii) take the actions described in sec4 tion 466(c)(1) in appropriate cases.’’.

5 (b) ESTABLISHMENT OF STATE DISBURSEMENT

6 UNIT.—Part D of title IV (42 U.S.C. 651–669), as amended

7 by section 944(a)(2), is amended by inserting after section

8 454A the following new section:

9 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT

10 PAYMENTS.

11 ‘‘(a) STATE DISBURSEMENT UNIT.—

12 ‘‘(1) IN GENERAL.—In order for a State to meet

13 the requirements of this section, the State agency

14 must establish and operate a unit (which shall be

15 known as the ‘State disbursement unit’) for the collec16 tion and disbursement of payments under support or17 ders in all cases being enforced by the State pursuant

18 to section 454(4).

19 ‘‘(2) OPERATION.—The State disbursement unit

20 shall be operated—

21 ‘‘(A) directly by the State agency (or 2 or

22 more State agencies under a regional cooperative

23 agreement), or (to the extent appropriate) by a

24 contractor responsible directly to the State agen25 cy; and
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1 ‘‘(B) in coordination with the automated

2 system established by the State pursuant to sec3 tion 454A.

4 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

5 UNITS.—The State disbursement unit may be estab6 lished by linking local disbursement units through an

7 automated information network, subject to this sec8 tion. The Secretary must agree that the system will

9 not cost more nor take more time to establish or oper10 ate than a centralized system. In addition, employers

11 shall be given 1 location to which income withholding

12 is sent.

13 ‘‘(b) REQUIRED PROCEDURES.—The State disburse14 ment unit shall use automated procedures, electronic proc15 esses, and computer-driven technology to the maximum ex16 tent feasible, efficient, and economical, for the collection and

17 disbursement of support payments, including procedures—

18 ‘‘(1) for receipt of payments from parents, em19 ployers, and other States, and for disbursements to

20 custodial parents and other obligees, the State agency,

21 and the agencies of other States;

22 ‘‘(2) for accurate identification of payments;

23 ‘‘(3) to ensure prompt disbursement of the custo24 dial parent’s share of any payment; and
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1 ‘‘(4) to furnish to any parent, upon request,

2 timely information on the current status of support

3 payments under an order requiring payments to be

4 made by or to the parent.

5 ‘‘(c) TIMING OF DISBURSEMENTS.—

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), the State disbursement unit shall distribute

8 all amounts payable under section 457(a) within 2

9 business days after receipt from the employer or other

10 source of periodic income, if sufficient information

11 identifying the payee is provided.

12 ‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—

13 The State disbursement unit may delay the distribu14 tion of collections toward arrearages until the resolu15 tion of any timely appeal with respect to such arrear16 ages.

17 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec18 tion, the term ‘business day’ means a day on which State

19 offices are open for regular business.’’.

20 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

21 added by section 944(a)(2) and as amended by section 911,

22 is amended by adding at the end the following new sub23 section:

24 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

25 PAYMENTS.—
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1 ‘‘(1) IN GENERAL.—The State shall use the auto2 mated system required by this section, to the maxi3 mum extent feasible, to assist and facilitate the collec4 tion and disbursement of support payments through

5 the State disbursement unit operated under section

6 454B, through the performance of functions, includ7 ing, at a minimum—

8 ‘‘(A) transmission of orders and notices to

9 employers (and other debtors) for the withholding

10 of wages and other income—

11 ‘‘(i) within 2 business days after re12 ceipt from a court, another State, an em13 ployer, the Federal Parent Locator Service,

14 or another source recognized by the State of

15 notice of, and the income source subject to,

16 such withholding; and

17 ‘‘(ii) using uniform formats prescribed

18 by the Secretary;

19 ‘‘(B) ongoing monitoring to promptly iden20 tify failures to make timely payment of support;

21 and

22 ‘‘(C) automatic use of enforcement proce23 dures (including procedures authorized pursuant

24 to section 466(c)) where payments are not timely

25 made.
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1 ‘‘(2) BUSINESS DAY DEFINED.—As used in para2 graph (1), the term ‘business day’ means a day on

3 which State offices are open for regular business.’’.

4 (d) EFFECTIVE DATE.—The amendments made by this

5 section shall become effective on October 1, 1998.

6 SEC. 913. STATE DIRECTORY OF NEW HIRES.

7 (a) STATE PLAN REQUIREMENT.—Section 454 (42

8 U.S.C. 654), as amended by sections 901(b), 904(a) and

9 912(a), is amended—

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

11 (26);

12 (2) by striking the period at the end of para13 graph (27) and inserting ‘‘; and’’; and

14 (3) by adding after paragraph (27) the following

15 new paragraph:

16 ‘‘(28) provide that, on and after October 1, 1997,

17 the State will operate a State Directory of New Hires

18 in accordance with section 453A.’’.

19 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

20 title IV (42 U.S.C. 651–669) is amended by inserting after

21 section 453 the following new section:

22 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

23 ‘‘(a) ESTABLISHMENT.—

24 ‘‘(1) IN GENERAL.—Not later than October 1,

25 1997, each State shall establish an automated direc-
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1 tory (to be known as the ‘State Directory of New

2 Hires’) which shall contain information supplied in

3 accordance with subsection (b) by employers on each

4 newly hired employee.

5 ‘‘(2) DEFINITIONS.—As used in this section:

6 ‘‘(A) EMPLOYEE.—The term ‘employee’—

7 ‘‘(i) means an individual who is an

8 employee within the meaning of chapter 24

9 of the Internal Revenue Code of 1986; and

10 ‘‘(ii) does not include an employee of a

11 Federal or State agency performing intel12 ligence or counterintelligence functions, if

13 the head of such agency has determined that

14 reporting pursuant to paragraph (1) with

15 respect to the employee could endanger the

16 safety of the employee or compromise an on17 going investigation or intelligence mission.

18 ‘‘(B) EMPLOYER.—The term ‘employer’ in19 cludes—

20 ‘‘(i) any governmental entity, and

21 ‘‘(ii) any labor organization.

22 ‘‘(C) LABOR ORGANIZATION.—The term

23 ‘labor organization’ shall have the meaning given

24 such term in section 2(5) of the National Labor

25 Relations Act, and includes any entity (also
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1 known as a ‘hiring hall’) which is used by the

2 organization and an employer to carry out re3 quirements described in section 8(f)(3) of such

4 Act of an agreement between the organization

5 and the employer.

6 ‘‘(b) EMPLOYER INFORMATION.—

7 ‘‘(1) REPORTING REQUIREMENT.—

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

9 subparagraphs (B) and (C), each employer shall

10 furnish to the Directory of New Hires of the

11 State in which a newly hired employee works, a

12 report that contains the name, address, and so13 cial security number of the employee, and the

14 name of, and identifying number assigned under

15 section 6109 of the Internal Revenue Code of

16 1986 to, the employer.

17 ‘‘(B) MULTISTATE EMPLOYERS.—An em18 ployer that has employees who are employed in

19 2 or more States and that transmits reports

20 magnetically or electronically may comply with

21 subparagraph (A) by designating 1 State in

22 which such employer has employees to which it

23 will transmit the report described in subpara24 graph (A), and transmitting such report to such

25 State. Any employer that transmits reports pur-
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1 suant to this subparagraph shall notify the Sec2 retary in writing as to which State such em3 ployer designates for the purpose of sending re4 ports.

5 ‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—

6 Any department, agency, or instrumentality of

7 the United States shall comply with subpara8 graph (A) by transmitting the report described

9 in subparagraph (A) to the National Directory

10 of New Hires established pursuant to section

11 453.

12 ‘‘(2) TIMING OF REPORT.—The report required

13 by paragraph (1) with respect to an employee shall

14 be made not later than the later of—

15 ‘‘(A) 30 days after the date the employer

16 hires the employee; or

17 ‘‘(B) in the case of an employer that reports

18 by magnetic or electronic means, the 1st business

19 day of the week following the date on which the

20 employee 1st receives wages or other compensa21 tion from the employer.

22 ‘‘(c) REPORTING FORMAT AND METHOD.—Each report

23 required by subsection (b) shall be made on a

24 W–4 form and may be transmitted by 1st class mail, mag25 netically, or electronically.
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1 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EM2 PLOYERS.—The State shall have the option to set a State

3 civil money penalty which shall be less than—

4 ‘‘(1) $25; or

5 ‘‘(2) $500 if, under State law, the failure is the

6 result of a conspiracy between the employer and the

7 employee to not supply the required report or to sup8 ply a false or incomplete report.

9 ‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Informa10 tion shall be entered into the data base maintained by the

11 State Directory of New Hires within 5 business days of re12 ceipt from an employer pursuant to subsection (b).

13 ‘‘(f) INFORMATION COMPARISONS.—

14 ‘‘(1) IN GENERAL.—Not later than October 1,

15 1998, an agency designated by the State shall, di16 rectly or by contract, conduct automated comparisons

17 of the social security numbers reported by employers

18 pursuant to subsection (b) and the social security

19 numbers appearing in the records of the State case

20 registry for cases being enforced under the State plan.

21 ‘‘(2) NOTICE OF MATCH.—When an information

22 comparison conducted under paragraph (1) reveals a

23 match with respect to the social security number of an

24 individual required to provide support under a sup25 port order, the State Directory of New Hires shall
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1 provide the agency administering the State plan ap2 proved under this part of the appropriate State with

3 the name, address, and social security number of the

4 employee to whom the social security number is as5 signed, and the name of, and identifying number as6 signed under section 6109 of the Internal Revenue

7 Code of 1986 to, the employer.

8 ‘‘(g) TRANSMISSION OF INFORMATION.—

9 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NO10 TICES TO EMPLOYERS.—Within 2 business days after

11 the date information regarding a newly hired em12 ployee is entered into the State Directory of New

13 Hires, the State agency enforcing the employee’s child

14 support obligation shall transmit a notice to the em15 ployer of the employee directing the employer to with16 hold from the wages of the employee an amount equal

17 to the monthly (or other periodic) child support obli18 gation of the employee, unless the employee’s wages

19 are not subject to withholding pursuant to section

20 466(b)(3).

21 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC22 TORY OF NEW HIRES.—

23 ‘‘(A) NEW HIRE INFORMATION.—Within 2

24 business days after the date information regard25 ing a newly hired employee is entered into the
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1 State Directory of New Hires, the State Direc2 tory of New Hires shall furnish the information

3 to the National Directory of New Hires.

4 ‘‘(B) WAGE AND UNEMPLOYMENT COM5 PENSATION INFORMATION.—The State Directory

6 of New Hires shall, on a quarterly basis, furnish

7 to the National Directory of New Hires extracts

8 of the reports required under section 303(a)(6) to

9 be made to the Secretary of Labor concerning the

10 wages and unemployment compensation paid to

11 individuals, by such dates, in such format, and

12 containing such information as the Secretary of

13 Health and Human Services shall specify in reg14 ulations.

15 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

16 subsection, the term ‘business day’ means a day on

17 which State offices are open for regular business.

18 ‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—

19 ‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—

20 The agency administering the State plan approved

21 under this part shall use information received pursu22 ant to subsection (f)(2) to locate individuals for pur23 poses of establishing paternity and establishing, modi24 fying, and enforcing child support obligations.
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1 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN

2 PROGRAMS.—A State agency responsible for admin3 istering a program specified in section 1137(b) shall

4 have access to information reported by employers pur5 suant to subsection (b) of this section for purposes of

6 verifying eligibility for the program.

7 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU8 RITY AND WORKERS’ COMPENSATION.—State agencies

9 operating employment security and workers’ com10 pensation programs shall have access to information

11 reported by employers pursuant to subsection (b) for

12 the purposes of administering such programs.’’.

13 (c) QUARTERLY WAGE REPORTING.—Section

14 1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—

15 (1) by inserting ‘‘(including State and local gov16 ernmental entities)’’ after ‘‘employers’’; and

17 (2) by inserting ‘‘, and except that no report

18 shall be filed with respect to an employee of a State

19 agency performing intelligence or counterintelligence

20 functions, if the head of such agency has determined

21 that filing such a report could endanger the safety of

22 the employee or compromise an ongoing investigation

23 or intelligence mission’’ after ‘‘paragraph (2)’’.
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1 SEC. 914. AMENDMENTS CONCERNING INCOME WITHHOLD2 ING.

3 (a) MANDATORY INCOME WITHHOLDING.—

4 (1) IN GENERAL.—Section 466(a)(1) (42 U.S.C.

5 666(a)(1)) is amended to read as follows:

6 ‘‘(1)(A) Procedures described in subsection (b)

7 for the withholding from income of amounts payable

8 as support in cases subject to enforcement under the

9 State plan.

10 ‘‘(B) Procedures under which the wages of a per11 son with a support obligation imposed by a support

12 order issued (or modified) in the State before October

13 1, 1996, if not otherwise subject to withholding under

14 subsection (b), shall become subject to withholding as

15 provided in subsection (b) if arrearages occur, without

16 the need for a judicial or administrative hearing.’’.

17 (2) CONFORMING AMENDMENTS.—

18 (A) Section 466(b) (42 U.S.C. 666(b)) is

19 amended in the matter preceding paragraph (1),

20 by striking ‘‘subsection (a)(1)’’ and inserting

21 ‘‘subsection (a)(1)(A)’’.

22 (B) Section 466(b)(4) (42 U.S.C. 666(b)(4))

23 is amended to read as follows:

24 ‘‘(4)(A) Such withholding must be carried out in

25 full compliance with all procedural due process re26 quirements of the State, and the State must send no-
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1 tice to each absent parent to whom paragraph (1) ap2 plies—

3 ‘‘(i) that the withholding has commenced;

4 and

5 ‘‘(ii) of the procedures to follow if the absent

6 parent desires to contest such withholding on the

7 grounds that the withholding or the amount

8 withheld is improper due to a mistake of fact.

9 ‘‘(B) The notice under subparagraph (A) shall

10 include the information provided to the employer

11 under paragraph (6)(A).’’.

12 (C) Section 466(b)(5) (42 U.S.C. 666(b)(5))

13 is amended by striking all that follows ‘‘adminis14 tered by’’ and inserting ‘‘the State through the

15 State disbursement unit established pursuant to

16 section 454B, in accordance with the require17 ments of section 454B.’’.

18 (D) Section 466(b)(6)(A) (42 U.S.C.

19 666(b)(6)(A)) is amended—

20 (i) in clause (i), by striking ‘‘to the ap21 propriate agency’’ and all that follows and

22 inserting ‘‘to the State disbursement unit

23 within 2 business days after the date the

24 amount would (but for this subsection) have
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1 been paid or credited to the employee, for

2 distribution in accordance with this part.’’;

3 (ii) in clause (ii), by inserting ‘‘be in

4 a standard format prescribed by the Sec5 retary, and’’ after ‘‘shall’’; and

6 (iii) by adding at the end the following

7 new clause:

8 ‘‘(iii) As used in this subparagraph, the term

9 ‘business day’ means a day on which State offices are

10 open for regular business.’’.

11 (E) Section 466(b)(6)(D) (42 U.S.C.

12 666(b)(6)(D)) is amended by striking ‘‘any em13 ployer’’ and all that follows and inserting ‘‘any

14 employer who—

15 ‘‘(i) discharges from employment, refuses to

16 employ, or takes disciplinary action against any

17 absent parent subject to wage withholding re18 quired by this subsection because of the existence

19 of such withholding and the obligations or addi20 tional obligations which it imposes upon the em21 ployer; or

22 ‘‘(ii) fails to withhold support from wages,

23 or to pay such amounts to the State disburse24 ment unit in accordance with this subsection.’’.
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1 (F) Section 466(b) (42 U.S.C. 666(b)) is

2 amended by adding at the end the following new

3 paragraph:

4 ‘‘(11) Procedures under which the agency admin5 istering the State plan approved under this part may

6 execute a withholding order through electronic means

7 and without advance notice to the obligor.’’.

8 (b) CONFORMING AMENDMENT.—Section 466(c) (42

9 U.S.C. 666(c)) is repealed.

10 SEC. 915. LOCATOR INFORMATION FROM INTERSTATE NET11 WORKS.

12 Section 466(a) (42 U.S.C. 666(a)) is amended by add13 ing at the end the following new paragraph:

14 ‘‘(12) Procedures to ensure that all Federal and

15 State agencies conducting activities under this part

16 have access to any system used by the State to locate

17 an individual for purposes relating to motor vehicles

18 or law enforcement.’’.

19 SEC. 916. EXPANSION OF THE FEDERAL PARENT LOCATOR

20 SERVICE.

21 (a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS

22 AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—

23 (1) in subsection (a), by striking all that follows

24 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

25 establishing parentage, establishing, setting the
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1 amount of, modifying, or enforcing child support obli2 gations, or enforcing child visitation orders—

3 ‘‘(1) information on, or facilitating the discovery

4 of, the location of any individual—

5 ‘‘(A) who is under an obligation to pay

6 child support or provide child visitation rights;

7 ‘‘(B) against whom such an obligation is

8 sought;

9 ‘‘(C) to whom such an obligation is owed,

10 including the individual’s social security number (or

11 numbers), most recent address, and the name, address,

12 and employer identification number of the individ13 ual’s employer;

14 ‘‘(2) information on the individual’s wages (or

15 other income) from, and benefits of, employment (in16 cluding rights to or enrollment in group health care

17 coverage); and

18 ‘‘(3) information on the type, status, location,

19 and amount of any assets of, or debts owed by or to,

20 any such individual.’’; and

21 (2) in subsection (b), in the matter preceding

22 paragraph (1), by striking ‘‘social security’’ and all

23 that follows through ‘‘absent parent’’ and inserting

24 ‘‘information described in subsection (a)’’.
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1 (b) AUTHORIZED PERSON FOR INFORMATION REGARD2 ING VISITATION RIGHTS.—Section 453(c) (42 U.S.C.

3 653(c)) is amended—

4 (1) in paragraph (1), by striking ‘‘support’’ and

5 inserting ‘‘support or to seek to enforce orders provid6 ing child visitation rights’’;

7 (2) in paragraph (2), by striking ‘‘, or any agent

8 of such court; and’’ and inserting ‘‘or to issue an

9 order against a resident parent for visitation rights,

10 or any agent of such court;’’;

11 (3) by striking the period at the end of para12 graph (3) and inserting ‘‘; and’’; and

13 (4) by adding at the end the following new para14 graph:

15 ‘‘(4) the absent parent, only with regard to a

16 court order against a resident parent for child visita17 tion rights.’’.

18 (c) REIMBURSEMENT FOR INFORMATION FROM FED19 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2))

20 is amended in the 4th sentence by inserting ‘‘in an amount

21 which the Secretary determines to be reasonable payment

22 for the information exchange (which amount shall not in23 clude payment for the costs of obtaining, compiling, or

24 maintaining the information)’’ before the period.
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1 (d) REIMBURSEMENT FOR REPORTS BY STATE AGEN2 CIES.—Section 453 (42 U.S.C. 653) is amended by adding

3 at the end the following new subsection:

4 ‘‘(g) The Secretary may reimburse Federal and State

5 agencies for the costs incurred by such entities in furnishing

6 information requested by the Secretary under this section

7 in an amount which the Secretary determines to be reason8 able payment for the information exchange (which amount

9 shall not include payment for the costs of obtaining, compil10 ing, or maintaining the information).’’.

11 (e) TECHNICAL AMENDMENTS.—

12 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

13 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

14 653(b), 663(a), 663(e), and 663(f)) are each amended

15 by inserting ‘‘Federal’’ before ‘‘Parent’’ each place

16 such term appears.

17 (2) Section 453 (42 U.S.C. 653) is amended in

18 the heading by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.

19 (f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653),

20 as amended by subsection (d) of this section, is amended

21 by adding at the end the following new subsection:

22 ‘‘(h)(1) Not later than October 1, 1998, in order to as23 sist States in administering programs under State plans

24 approved under this part and programs funded under part

25 A, and for the other purposes specified in this section, the
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1 Secretary shall establish and maintain in the Federal Par2 ent Locator Service an automated registry (which shall be

3 known as the ‘Federal Case Registry of Child Support Or4 ders’), which shall contain abstracts of support orders and

5 other information described in paragraph (2) with respect

6 to each case in each State case registry maintained pursu7 ant to section 454A(e), as furnished (and regularly up8 dated), pursuant to section 454A(f), by State agencies ad9 ministering programs under this part.

10 ‘‘(2) The information referred to in paragraph (1)

11 with respect to a case shall be such information as the Sec12 retary may specify in regulations (including the names, so13 cial security numbers or other uniform identification num14 bers, and State case identification numbers) to identify the

15 individuals who owe or are owed support (or with respect

16 to or on behalf of whom support obligations are sought to

17 be established), and the State or States which have the case.

18 ‘‘(i)(1) In order to assist States in administering pro19 grams under State plans approved under this part and pro20 grams funded under part A, and for the other purposes spec21 ified in this section, the Secretary shall, not later than Octo22 ber 1, 1996, establish and maintain in the Federal Parent

23 Locator Service an automated directory to be known as the

24 National Directory of New Hires, which shall contain the

25 information supplied pursuant to section 453A(g)(2).
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1 ‘‘(2) Information shall be entered into the data base

2 maintained by the National Directory of New Hires within

3 2 business days of receipt pursuant to section 453A(g)(2).

4 ‘‘(3) The Secretary of the Treasury shall have access

5 to the information in the National Directory of New Hires

6 for purposes of administering section 32 of the Internal

7 Revenue Code of 1986, or the advance payment of the

8 earned income tax credit under section 3507 of such Code,

9 and verifying a claim with respect to employment in a tax

10 return.

11 ‘‘(4) The Secretary shall maintain within the National

12 Directory of New Hires a list of multistate employers that

13 report information regarding newly hired employees pursu14 ant to section 453A(b)(1)(B), and the State which each such

15 employer has designated to receive such information.

16 ‘‘(j)(1)(A) The Secretary shall transmit information

17 on individuals and employers maintained under this sec18 tion to the Social Security Administration to the extent nec19 essary for verification in accordance with subparagraph

20 (B).

21 ‘‘(B) The Social Security Administration shall verify

22 the accuracy of, correct, or supply to the extent possible,

23 and report to the Secretary, the following information sup24 plied by the Secretary pursuant to subparagraph (A):
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1 ‘‘(i) The name, social security number, and birth

2 date of each such individual.

3 ‘‘(ii) The employer identification number of each

4 such employer.

5 ‘‘(2) For the purpose of locating individuals in a pa6 ternity establishment case or a case involving the establish7 ment, modification, or enforcement of a support order, the

8 Secretary shall—

9 ‘‘(A) compare information in the National Di10 rectory of New Hires against information in the sup11 port case abstracts in the Federal Case Registry of

12 Child Support Orders not less often than every 2

13 business days; and

14 ‘‘(B) within 2 such days after such a comparison

15 reveals a match with respect to an individual, report

16 the information to the State agency responsible for the

17 case.

18 ‘‘(3) To the extent and with the frequency that the Sec19 retary determines to be effective in assisting States to carry

20 out their responsibilities under programs operated under

21 this part and programs funded under part A, the Secretary

22 shall—

23 ‘‘(A) compare the information in each compo24 nent of the Federal Parent Locator Service main25 tained under this section against the information in
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1 each other such component (other than the compari2 son required by paragraph (2)), and report instances

3 in which such a comparison reveals a match with re4 spect to an individual to State agencies operating

5 such programs; and

6 ‘‘(B) disclose information in such registries to

7 such State agencies.

8 ‘‘(4) The National Directory of New Hires shall pro9 vide the Commissioner of Social Security with all informa10 tion in the National Directory, which shall be used to deter11 mine the accuracy of payments under the supplemental se12 curity income program under title XVI and in connection

13 with benefits under title II.

14 ‘‘(5) The Secretary may provide access to information

15 reported by employers pursuant to section 453A(b) for re16 search purposes found by the Secretary to be likely to con17 tribute to achieving the purposes of part A or this part,

18 but without personal identifiers.

19 ‘‘(k)(1) The Secretary shall reimburse the Commis20 sioner of Social Security, at a rate negotiated between the

21 Secretary and the Commissioner, for the costs incurred by

22 the Commissioner in performing the verification services de23 scribed in subsection (j).

24 ‘‘(2) The Secretary shall reimburse costs incurred by

25 State directories of new hires in furnishing information as
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1 required by subsection (j)(3), at rates which the Secretary

2 determines to be reasonable (which rates shall not include

3 payment for the costs of obtaining, compiling, or maintain4 ing such information).

5 ‘‘(3) A State or Federal agency that receives informa6 tion from the Secretary pursuant to this section shall reim7 burse the Secretary for costs incurred by the Secretary in

8 furnishing the information, at rates which the Secretary de9 termines to be reasonable (which rates shall include pay10 ment for the costs of obtaining, verifying, maintaining, and

11 comparing the information).

12 ‘‘(l) Information in the Federal Parent Locator Serv13 ice, and information resulting from comparisons using such

14 information, shall not be used or disclosed except as ex15 pressly provided in this section, subject to section 6103 of

16 the Internal Revenue Code of 1986.

17 ‘‘(m) The Secretary shall establish and implement safe18 guards with respect to the entities established under this

19 section designed to—

20 ‘‘(1) ensure the accuracy and completeness of in21 formation in the Federal Parent Locator Service; and

22 ‘‘(2) restrict access to confidential information in

23 the Federal Parent Locator Service to authorized per24 sons, and restrict use of such information to author25 ized purposes.
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1 ‘‘(n) Each department, agency, and instrumentality of

2 the United States shall on a quarterly basis report to the

3 Federal Parent Locator Service the name and social secu4 rity number of each employee and the wages paid to the

5 employee during the previous quarter, except that no report

6 shall be filed with respect to an employee of a department,

7 agency, or instrumentality performing intelligence or coun8 terintelligence functions, if the head of such department,

9 agency, or instrumentality has determined that filing such

10 a report could endanger the safety of the employee or com11 promise an ongoing investigation or intelligence mission.’’.

12 (f) CONFORMING AMENDMENTS.—

13 (1) TO PART D OF TITLE IV OF THE SOCIAL SE14 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

15 654(8)(B)) is amended to read as follows:

16 ‘‘(B) the Federal Parent Locator Service es17 tablished under section 453;’’.

18 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

19 Section 3304(a)(16) of the Internal Revenue Code of

20 1986 is amended—

21 (A) by striking ‘‘Secretary of Health, Edu22 cation, and Welfare’’ each place such term ap23 pears and inserting ‘‘Secretary of Health and

24 Human Services’’;
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1 (B) in subparagraph (B), by striking ‘‘such

2 information’’ and all that follows and inserting

3 ‘‘information furnished under subparagraph (A)

4 or (B) is used only for the purposes authorized

5 under such subparagraph;’’;

6 (C) by striking ‘‘and’’ at the end of sub7 paragraph (A);

8 (D) by redesignating subparagraph (B) as

9 subparagraph (C); and

10 (E) by inserting after subparagraph (A) the

11 following new subparagraph:

12 ‘‘(B) wage and unemployment compensa13 tion information contained in the records of such

14 agency shall be furnished to the Secretary of

15 Health and Human Services (in accordance with

16 regulations promulgated by such Secretary) as

17 necessary for the purposes of the National Direc18 tory of New Hires established under section

19 453(i) of the Social Security Act, and’’.

20 (3) TO STATE GRANT PROGRAM UNDER TITLE III

21 OF THE SOCIAL SECURITY ACT.—Subsection (h) of sec22 tion 303 (42 U.S.C. 503) is amended to read as fol23 lows:

24 ‘‘(h)(1) The State agency charged with the administra25 tion of the State law shall, on a reimbursable basis—
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1 ‘‘(A) disclose quarterly, to the Secretary of

2 Health and Human Services wage and claim infor3 mation, as required pursuant to section 453(i)(1),

4 contained in the records of such agency;

5 ‘‘(B) ensure that information provided pursuant

6 to subparagraph (A) meets such standards relating to

7 correctness and verification as the Secretary of Health

8 and Human Services, with the concurrence of the Sec9 retary of Labor, may find necessary; and

10 ‘‘(C) establish such safeguards as the Secretary of

11 Labor determines are necessary to insure that infor12 mation disclosed under subparagraph (A) is used only

13 for purposes of section 453(i)(1) in carrying out the

14 child support enforcement program under title IV.

15 ‘‘(2) Whenever the Secretary of Labor, after reasonable

16 notice and opportunity for hearing to the State agency

17 charged with the administration of the State law, finds that

18 there is a failure to comply substantially with the require19 ments of paragraph (1), the Secretary of Labor shall notify

20 such State agency that further payments will not be made

21 to the State until the Secretary of Labor is satisfied that

22 there is no longer any such failure. Until the Secretary of

23 Labor is so satisfied, the Secretary shall make no future

24 certification to the Secretary of the Treasury with respect

25 to the State.
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1 ‘‘(3) For purposes of this subsection—

2 ‘‘(A) the term ‘wage information’ means infor3 mation regarding wages paid to an individual, the

4 social security account number of such individual,

5 and the name, address, State, and the Federal em6 ployer identification number of the employer paying

7 such wages to such individual; and

8 ‘‘(B) the term ‘claim information’ means infor9 mation regarding whether an individual is receiving,

10 has received, or has made application for, unemploy11 ment compensation, the amount of any such com12 pensation being received (or to be received by such in13 dividual), and the individual’s current (or most re14 cent) home address.’’.

15 SEC. 917. COLLECTION AND USE OF SOCIAL SECURITY NUM16 BERS FOR USE IN CHILD SUPPORT ENFORCE17 MENT.

18 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

19 U.S.C. 666(a)), as amended by section 915, is amended by

20 adding at the end the following new paragraph:

21 ‘‘(13) Procedures requiring that the social secu22 rity number of—

23 ‘‘(A) any applicant for a professional li24 cense, commercial driver’s license, occupational
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1 license, or marriage license be recorded on the

2 application;

3 ‘‘(B) any individual who is subject to a di4 vorce decree, support order, or paternity deter5 mination or acknowledgment be placed in the

6 records relating to the matter; and

7 ‘‘(C) any individual who has died be placed

8 in the records relating to the death and be re9 corded on the death certificate.

10 For purposes of subparagraph (A), if a State allows

11 the use of a number other than the social security

12 number, the State shall so advise any applicants.’’.

13 (b) CONFORMING AMENDMENTS.—Section

14 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by sec15 tion 321(a)(9) of the Social Security Independence and

16 Program Improvements Act of 1994, is amended—

17 (1) in clause (i), by striking ‘‘may require’’ and

18 inserting ‘‘shall require’’;

19 (2) in clause (ii), by inserting after the 1st sen20 tence the following: ‘‘In the administration of any

21 law involving the issuance of a marriage certificate or

22 license, each State shall require each party named in

23 the certificate or license to furnish to the State (or po24 litical subdivision thereof), or any State agency hav-
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1 ing administrative responsibility for the law involved,

2 the social security number of the party.’’;

3 (3) in clause (ii), by inserting ‘‘or marriage cer4 tificate’’ after ‘‘Such numbers shall not be recorded on

5 the birth certificate’’.

6 (4) in clause (vi), by striking ‘‘may’’ and insert7 ing ‘‘shall’’; and

8 (5) by adding at the end the following new

9 clauses:

10 ‘‘(x) An agency of a State (or a politi11 cal subdivision thereof) charged with the ad12 ministration of any law concerning the is13 suance or renewal of a license, certificate,

14 permit, or other authorization to engage in

15 a profession, an occupation, or a commer16 cial activity shall require all applicants for

17 issuance or renewal of the license, certifi18 cate, permit, or other authorization to pro19 vide the applicant’s social security number

20 to the agency for the purpose of administer21 ing such laws, and for the purpose of re22 sponding to requests for information from

23 an agency operating pursuant to part D of

24 title IV.
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1 ‘‘(xi) All divorce decrees, support or2 ders, and paternity determinations issued,

3 and all paternity acknowledgments made,

4 in each State shall include the social secu5 rity number of each party to the decree,

6 order, determination, or acknowledgement

7 in the records relating to the matter, for the

8 purpose of responding to requests for infor9 mation from an agency operating pursuant

10 to part D of title IV.’’.

11 Subtitle C—Streamlining and

12 Uniformity of Procedures

13 SEC. 921. ADOPTION OF UNIFORM STATE LAWS.

14 Section 466 (42 U.S.C. 666) is amended by adding

15 at the end the following new subsection:

16 ‘‘(f)(1) In order to satisfy section 454(20)(A) on or

17 after January 1, 1997, each State must have in effect the

18 Uniform Interstate Family Support Act, as approved by

19 the National Conference of Commissioners on Uniform

20 State Laws in August 1992 (with the modifications and

21 additions specified in this subsection), and the procedures

22 required to implement such Act.

23 ‘‘(2) The State law enacted pursuant to paragraph (1)

24 may be applied to any case involving an order which is
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1 established or modified in a State and which is sought to

2 be modified or enforced in another State.

3 ‘‘(3) The State law enacted pursuant to paragraph (1)

4 of this subsection shall contain the following provision in

5 lieu of section 611(a)(1) of the Uniform Interstate Family

6 Support Act:

7 ‘‘ ‘(1) the following requirements are met:

8 ‘‘ ‘(i) the child, the individual obligee, and

9 the obligor—

10 ‘‘ ‘(I) do not reside in the issuing State;

11 and

12 ‘‘ ‘(II) either reside in this State or are

13 subject to the jurisdiction of this State pur14 suant to section 201; and

15 ‘‘ ‘(ii) in any case where another State is

16 exercising or seeks to exercise jurisdiction to

17 modify the order, the conditions of section 204

18 are met to the same extent as required for pro19 ceedings to establish orders; or’.

20 ‘‘(4) The State law enacted pursuant to paragraph (1)

21 shall provide that, in any proceeding subject to the law,

22 process may be served (and proved) upon persons in the

23 State by any means acceptable in any State which is the

24 initiating or responding State in the proceeding.’’.
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1 SEC. 922. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR

2 CHILD SUPPORT ORDERS.

3 Section 1738B of title 28, United States Code, is

4 amended—

5 (1) in subsection (a)(2), by striking ‘‘subsection

6 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

7 (2) in subsection (b), by inserting after the 2nd

8 undesignated paragraph the following:

9 ‘‘ ‘child’s home State’ means the State in which

10 a child lived with a parent or a person acting as par11 ent for at least 6 consecutive months immediately pre12 ceding the time of filing of a petition or comparable

13 pleading for support and, if a child is less than 6

14 months old, the State in which the child lived from

15 birth with any of them. A period of temporary ab16 sence of any of them is counted as part of the 6-month

17 period.’’;

18 (3) in subsection (c), by inserting ‘‘by a court of

19 a State’’ before ‘‘is made’’;

20 (4) in subsection (c)(1), by inserting ‘‘and sub21 sections (e), (f), and (g)’’ after ‘‘located’’;

22 (5) in subsection (d)—

23 (A) by inserting ‘‘individual’’ before ‘‘con24 testant’’; and

25 (B) by striking ‘‘subsection (e)’’ and insert26 ing ‘‘subsections (e) and (f)’’;
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1 (6) in subsection (e), by striking ‘‘make a modi2 fication of a child support order with respect to a

3 child that is made’’ and inserting ‘‘modify a child

4 support order issued’’;

5 (7) in subsection (e)(1), by inserting ‘‘pursuant

6 to subsection (i)’’ before the semicolon;

7 (8) in subsection (e)(2)—

8 (A) by inserting ‘‘individual’’ before ‘‘con9 testant’’ each place such term appears; and

10 (B) by striking ‘‘to that court’s making the

11 modification and assuming’’ and inserting ‘‘with

12 the State of continuing, exclusive jurisdiction for

13 a court of another State to modify the order and

14 assume’’;

15 (9) by redesignating subsections (f) and (g) as

16 subsections (g) and (h), respectively;

17 (10) by inserting after subsection (e) the follow18 ing new subsection:

19 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If

20 1 or more child support orders have been issued in this or

21 another State with regard to an obligor and a child, a court

22 shall apply the following rules in determining which order

23 to recognize for purposes of continuing, exclusive jurisdic24 tion and enforcement:
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1 ‘‘(1) If only 1 court has issued a child support

2 order, the order of that court must be recognized.

3 ‘‘(2) If 2 or more courts have issued child sup4 port orders for the same obligor and child, and only

5 1 of the courts would have continuing, exclusive juris6 diction under this section, the order of that court

7 must be recognized.

8 ‘‘(3) If 2 or more courts have issued child sup9 port orders for the same obligor and child, and more

10 than 1 of the courts would have continuing, exclusive

11 jurisdiction under this section, an order issued by a

12 court in the current home State of the child must be

13 recognized, but if an order has not been issued in the

14 current home State of the child, the order most re15 cently issued must be recognized.

16 ‘‘(4) If 2 or more courts have issued child sup17 port orders for the same obligor and child, and none

18 of the courts would have continuing, exclusive juris19 diction under this section, a court may issue a child

20 support order, which must be recognized.

21 ‘‘(5) The court that has issued an order recog22 nized under this subsection is the court having con23 tinuing, exclusive jurisdiction.’’;

24 (11) in subsection (g) (as so redesignated)—
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1 (A) by striking ‘‘PRIOR’’ and inserting

2 ‘‘MODIFIED’’; and

3 (B) by striking ‘‘subsection (e)’’ and insert4 ing ‘‘subsections (e) and (f)’’;

5 (12) in subsection (h) (as so redesignated)—

6 (A) in paragraph (2), by inserting ‘‘includ7 ing the duration of current payments and other

8 obligations of support’’ before the comma; and

9 (B) in paragraph (3), by inserting ‘‘arrears

10 under’’ after ‘‘enforce’’; and

11 (13) by adding at the end the following new sub12 section:

13 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

14 no individual contestant or child residing in the issuing

15 State, the party or support enforcement agency seeking to

16 modify, or to modify and enforce, a child support order is17 sued in another State shall register that order in a State

18 with jurisdiction over the nonmovant for the purpose of

19 modification.’’.

20 SEC. 923. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE

21 CASES.

22 Section 466(a) (42 U.S.C. 666(a)), as amended by sec23 tions 915 and 917(a), is amended by adding at the end

24 the following new paragraph:

25 ‘‘(14) Procedures under which—
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1 ‘‘(A)(i) the State shall respond within 5

2 business days to a request made by another State

3 to enforce a support order; and

4 ‘‘(ii) the term ‘business day’ means a day

5 on which State offices are open for regular busi6 ness;

7 ‘‘(B) the State may, by electronic or other

8 means, transmit to another State a request for

9 assistance in a case involving the enforcement of

10 a support order, which request—

11 ‘‘(i) shall include such information as

12 will enable the State to which the request is

13 transmitted to compare the information

14 about the case to the information in the

15 data bases of the State; and

16 ‘‘(ii) shall constitute a certification by

17 the requesting State—

18 ‘‘(I) of the amount of support

19 under the order the payment of which

20 is in arrears; and

21 ‘‘(II) that the requesting State has

22 complied with all procedural due proc23 ess requirements applicable to the case;

24 ‘‘(C) if the State provides assistance to an25 other State pursuant to this paragraph with re-
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1 spect to a case, neither State shall consider the

2 case to be transferred to the caseload of such

3 other State; and

4 ‘‘(D) the State shall maintain records of—

5 ‘‘(i) the number of such requests for as6 sistance received by the State;

7 ‘‘(ii) the number of cases for which the

8 State collected support in response to such

9 a request; and

10 ‘‘(iii) the amount of such collected sup11 port.’’.

12 SEC. 924. USE OF FORMS IN INTERSTATE ENFORCEMENT.

13 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

14 652(a)) is amended—

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

16 (9);

17 (2) by striking the period at the end of para18 graph (10) and inserting ‘‘; and’’; and

19 (3) by adding at the end the following new para20 graph:

21 ‘‘(11) not later than 60 days after the date of the

22 enactment of the Work Opportunity Act of 1995, es23 tablish an advisory committee, which shall include

24 State directors of programs under this part, and not

25 later than June 30, 1996, after consultation with the
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1 advisory committee, promulgate forms to be used by

2 States in interstate cases for—

3 ‘‘(A) collection of child support through in4 come withholding;

5 ‘‘(B) imposition of liens; and

6 ‘‘(C) administrative subpoenas.’’.

7 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

8 654(9)) is amended—

9 (1) by striking ‘‘and’’ at the end of subpara10 graph (C);

11 (2) by inserting ‘‘and’’ at the end of subpara12 graph (D); and

13 (3) by adding at the end the following new sub14 paragraph:

15 ‘‘(E) no later than October 1, 1996, in

16 using the forms promulgated pursuant to section

17 452(a)(11) for income withholding, imposition of

18 liens, and issuance of administrative subpoenas

19 in interstate child support cases;’’.

20 SEC. 925. STATE LAWS PROVIDING EXPEDITED PROCE21 DURES.

22 (a) STATE LAW REQUIREMENTS.—Section 466 (42

23 U.S.C. 666), as amended by section 914, is amended—

24 (1) in subsection (a)(2), by striking the 1st sen25 tence and inserting the following: ‘‘Expedited admin-
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1 istrative and judicial procedures (including the proce2 dures specified in subsection (c)) for establishing pa3 ternity and for establishing, modifying, and enforcing

4 support obligations.’’; and

5 (2) by inserting after subsection (b) the following

6 new subsection:

7 ‘‘(c) The procedures specified in this subsection are the

8 following:

9 ‘‘(1) Procedures which give the State agency the

10 authority to take the following actions relating to es11 tablishment or enforcement of support orders, without

12 the necessity of obtaining an order from any other ju13 dicial or administrative tribunal, and to recognize

14 and enforce the authority of State agencies of other

15 States) to take the following actions:

16 ‘‘(A) To order genetic testing for the pur17 pose of paternity establishment as provided in

18 section 466(a)(5).

19 ‘‘(B) To subpoena any financial or other

20 information needed to establish, modify, or en21 force a support order, and to impose penalties

22 for failure to respond to such a subpoena.

23 ‘‘(C) To require all entities in the State (in24 cluding for-profit, nonprofit, and governmental

25 employers) to provide promptly, in response to a
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1 request by the State agency of that or any other

2 State administering a program under this part,

3 information on the employment, compensation,

4 and benefits of any individual employed by such

5 entity as an employee or contractor, and to sanc6 tion failure to respond to any such request.

7 ‘‘(D) To obtain access, subject to safeguards

8 on privacy and information security, to the fol9 lowing records (including automated access, in

10 the case of records maintained in automated

11 data bases):

12 ‘‘(i) Records of other State and local

13 government agencies, including—

14 ‘‘(I) vital statistics (including

15 records of marriage, birth, and di16 vorce);

17 ‘‘(II) State and local tax and rev18 enue records (including information on

19 residence address, employer, income

20 and assets);

21 ‘‘(III) records concerning real and

22 titled personal property;

23 ‘‘(IV) records of occupational and

24 professional licenses, and records con25 cerning the ownership and control of
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1 corporations, partnerships, and other

2 business entities;

3 ‘‘(V) employment security records;

4 ‘‘(VI) records of agencies admin5 istering public assistance programs;

6 ‘‘(VII) records of the motor vehicle

7 department; and

8 ‘‘(VIII) corrections records.

9 ‘‘(ii) Certain records held by private

10 entities, including—

11 ‘‘(I) customer records of public

12 utilities and cable television compa13 nies; and

14 ‘‘(II) information (including in15 formation on assets and liabilities) on

16 individuals who owe or are owed sup17 port (or against or with respect to

18 whom a support obligation is sought)

19 held by financial institutions (subject

20 to limitations on liability of such enti21 ties arising from affording such ac22 cess), as provided pursuant to agree23 ments described in subsection (a)(18).

24 ‘‘(E) In cases where support is subject to an

25 assignment in order to comply with a require-
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1 ment imposed pursuant to part A or section

2 1912, or to a requirement to pay through the

3 State disbursement unit established pursuant to

4 section 454B, upon providing notice to obligor

5 and obligee, to direct the obligor or other payor

6 to change the payee to the appropriate govern7 ment entity.

8 ‘‘(F) To order income withholding in ac9 cordance with subsections (a)(1) and (b) of sec10 tion 466.

11 ‘‘(G) In cases in which there is a support

12 arrearage, to secure assets to satisfy the arrear13 age by—

14 ‘‘(i) intercepting or seizing periodic or

15 lump-sum payments from—

16 ‘‘(I) a State or local agency, in17 cluding unemployment compensation,

18 workers’ compensation, and other bene19 fits; and

20 ‘‘(II) judgments, settlements, and

21 lotteries;

22 ‘‘(ii) attaching and seizing assets of the

23 obligor held in financial institutions;

24 ‘‘(iii) attaching public and private re25 tirement funds; and
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1 ‘‘(iv) imposing liens in accordance

2 with subsection (a)(4) and, in appropriate

3 cases, to force sale of property and distribu4 tion of proceeds.

5 ‘‘(H) For the purpose of securing overdue

6 support, to increase the amount of monthly sup7 port payments to include amounts for arrear8 ages, subject to such conditions or limitations as

9 the State may provide.

10 Such procedures shall be subject to due process safe11 guards, including (as appropriate) requirements for

12 notice, opportunity to contest the action, and oppor13 tunity for an appeal on the record to an independent

14 administrative or judicial tribunal.

15 ‘‘(2) The expedited procedures required under

16 subsection (a)(2) shall include the following rules and

17 authority, applicable with respect to all proceedings

18 to establish paternity or to establish, modify, or en19 force support orders:

20 ‘‘(A) Procedures under which—

21 ‘‘(i) each party to any paternity or

22 child support proceeding is required (subject

23 to privacy safeguards) to file with the tribu24 nal and the State case registry upon entry

25 of an order, and to update as appropriate,
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1 information on location and identity of the

2 party, including social security number,

3 residential and mailing addresses, telephone

4 number, driver’s license number, and name,

5 address, and name and telephone number of

6 employer; and

7 ‘‘(ii) in any subsequent child support

8 enforcement action between the parties,

9 upon sufficient showing that diligent effort

10 has been made to ascertain the location of

11 such a party, the tribunal may deem State

12 due process requirements for notice and

13 service of process to be met with respect to

14 the party, upon delivery of written notice to

15 the most recent residential or employer ad16 dress filed with the tribunal pursuant to

17 clause (i).

18 ‘‘(B) Procedures under which—

19 ‘‘(i) the State agency and any admin20 istrative or judicial tribunal with authority

21 to hear child support and paternity cases

22 exerts statewide jurisdiction over the par23 ties; and

24 ‘‘(ii) in a State in which orders are is25 sued by courts or administrative tribunals,
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1 a case may be transferred between local ju2 risdictions in the State without need for

3 any additional filing by the petitioner, or

4 service of process upon the respondent, to re5 tain jurisdiction over the parties.’’.

6 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

7 Section 454A, as added by section 944(a)(2) and as amend8 ed by sections 911 and 912(c), is amended by adding at

9 the end the following new subsection:

10 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

11 The automated system required by this section shall be used,

12 to the maximum extent feasible, to implement the expedited

13 administrative procedures required by section 466(c).’’.

14 Subtitle D—Paternity

15 Establishment

16 SEC. 931. STATE LAWS CONCERNING PATERNITY ESTAB17 LISHMENT.

18 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

19 U.S.C. 666(a)(5)) is amended to read as follows:

20 ‘‘(5)(A)(i) Procedures which permit the establish21 ment of the paternity of a child at any time before

22 the child attains 21 years of age.

23 ‘‘(ii) As of August 16, 1984, clause (i) shall also

24 apply to a child for whom paternity has not been es25 tablished or for whom a paternity action was brought
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1 but dismissed because a statute of limitations of less

2 than 21 years was then in effect in the State.

3 ‘‘(B)(i) Procedures under which the State is re4 quired, in a contested paternity case, unless otherwise

5 barred by State law, to require the child and all other

6 parties (other than individuals found under section

7 454(29) to have good cause for refusing to cooperate)

8 to submit to genetic tests upon the request of any such

9 party if the request is supported by a sworn statement

10 by the party—

11 ‘‘(I) alleging paternity, and setting forth

12 facts establishing a reasonable possibility of the

13 requisite sexual contact between the parties; or

14 ‘‘(II) denying paternity, and setting forth

15 facts establishing a reasonable possibility of the

16 nonexistence of sexual contact between the par17 ties.

18 ‘‘(ii) Procedures which require the State agency

19 in any case in which the agency orders genetic test20 ing—

21 ‘‘(I) to pay costs of such tests, subject to

22 recoupment (where the State so elects) from the

23 alleged father if paternity is established; and

24 ‘‘(II) to obtain additional testing in any

25 case where an original test result is contested,
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1 upon request and advance payment by the con2 testant.

3 ‘‘(C)(i) Procedures for a simple civil process for

4 voluntarily acknowledging paternity under which the

5 State must provide that, before a mother and a puta6 tive father can sign an acknowledgment of paternity,

7 the mother and the putative father must be given no8 tice, orally and in writing, of the alternatives to, the

9 legal consequences of, and the rights (including, if 1

10 parent is a minor, any rights afforded due to minor11 ity status) and responsibilities that arise from, sign12 ing the acknowledgment.

13 ‘‘(ii) Such procedures must include a hospital14 based program for the voluntary acknowledgment of

15 paternity focusing on the period immediately before

16 or after the birth of a child, subject to such good cause

17 and other exceptions as the State shall establish and

18 taking into account the best interests of the child.

19 ‘‘(iii)(I) Such procedures must require the State

20 agency responsible for maintaining birth records to

21 offer voluntary paternity establishment services.

22 ‘‘(II)(aa) The Secretary shall prescribe regula23 tions governing voluntary paternity establishment

24 services offered by hospitals and birth record agencies.
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1 ‘‘(bb) The Secretary shall prescribe regulations

2 specifying the types of other entities that may offer

3 voluntary paternity establishment services, and gov4 erning the provision of such services, which shall in5 clude a requirement that such an entity must use the

6 same notice provisions used by, use the same mate7 rials used by, provide the personnel providing such

8 services with the same training provided by, and

9 evaluate the provision of such services in the same

10 manner as the provision of such services is evaluated

11 by, voluntary paternity establishment programs of

12 hospitals and birth record agencies.

13 ‘‘(iv) Such procedures must require the State to

14 develop and use an affidavit for the voluntary ac15 knowledgment of paternity which includes the mini16 mum requirements of the affidavit developed by the

17 Secretary under section 452(a)(7) for the voluntary

18 acknowledgment of paternity, and to give full faith

19 and credit to such an affidavit signed in any other

20 State according to its procedures.

21 ‘‘(D)(i) Procedures under which the name of the

22 father shall be included on the record of birth of the

23 child only—

24 ‘‘(I) if the father and mother have signed a

25 voluntary acknowledgment of paternity; or
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1 ‘‘(II) pursuant to an order issued in a judi2 cial or administrative proceeding.

3 Nothing in this clause shall preclude a State agency

4 from obtaining an admission of paternity from the

5 father for submission in a judicial or administrative

6 proceeding, or prohibit an order issued in a judicial

7 or administrative proceeding which bases a legal find8 ing of paternity on an admission of paternity by the

9 father and any other additional showing required by

10 State law.

11 ‘‘(ii) Procedures under which—

12 ‘‘(I) a voluntary acknowledgment of pater13 nity is considered a legal finding of paternity,

14 subject to the right of any signatory to rescind

15 the acknowledgment within 60 days;

16 ‘‘(II) after the 60-day period referred to in

17 subclause (I), a signed voluntary acknowledg18 ment of paternity may be challenged in court

19 only on the basis of fraud, duress, or material

20 mistake of fact, with the burden of proof upon

21 the challenger, and under which the legal respon22 sibilities (including child support obligations) of

23 any signatory arising from the acknowledgment

24 may not be suspended during the challenge, ex25 cept for good cause shown; and
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1 ‘‘(III) judicial or administrative proceed2 ings are not required or permitted to ratify an

3 unchallenged acknowledgment of paternity.

4 ‘‘(E) Procedures under which judicial or admin5 istrative proceedings are not required or permitted to

6 ratify an unchallenged acknowledgment of paternity.

7 ‘‘(F) Procedures—

8 ‘‘(i) requiring the admission into evidence,

9 for purposes of establishing paternity, of the re10 sults of any genetic test that is—

11 ‘‘(I) of a type generally acknowledged

12 as reliable by accreditation bodies des13 ignated by the Secretary; and

14 ‘‘(II) performed by a laboratory ap15 proved by such an accreditation body;

16 ‘‘(ii) requiring an objection to genetic test17 ing results to be made in writing not later than

18 a specified number of days before any hearing at

19 which the results may be introduced into evi20 dence (or, at State option, not later than a speci21 fied number of days after receipt of the results);

22 and

23 ‘‘(iii) making the test results admissible as

24 evidence of paternity without the need for foun-
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1 dation testimony or other proof of authenticity

2 or accuracy, unless objection is made.

3 ‘‘(G) Procedures which create a rebuttable or, at

4 the option of the State, conclusive presumption of pa5 ternity upon genetic testing results indicating a

6 threshold probability that the alleged father is the fa7 ther of the child.

8 ‘‘(H) Procedures requiring a default order to be

9 entered in a paternity case upon a showing of service

10 of process on the defendant and any additional show11 ing required by State law.

12 ‘‘(I) Procedures providing that the parties to an

13 action to establish paternity are not entitled to a trial

14 by jury.

15 ‘‘(J) Procedures which require that a temporary

16 order be issued, upon motion by a party, requiring

17 the provision of child support pending an adminis18 trative or judicial determination of parentage, where

19 there is clear and convincing evidence of paternity

20 (on the basis of genetic tests or other evidence).

21 ‘‘(K) Procedures under which bills for preg22 nancy, childbirth, and genetic testing are admissible

23 as evidence without requiring third-party foundation

24 testimony, and shall constitute prima facie evidence
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1 of amounts incurred for such services or for testing on

2 behalf of the child.

3 ‘‘(L) Procedures ensuring that the putative fa4 ther has a reasonable opportunity to initiate a pater5 nity action.

6 ‘‘(M) Procedures under which voluntary ac7 knowledgments and adjudications of paternity by ju8 dicial or administrative processes are filed with the

9 State registry of birth records for comparison with in10 formation in the State case registry.’’.

11 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDA12 VIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended

13 by inserting ‘‘, and develop an affidavit to be used for the

14 voluntary acknowledgment of paternity which shall include

15 the social security number of each parent’’ before the semi16 colon.

17 (c) TECHNICAL AMENDMENT.—Section 468 (42 U.S.C.

18 668) is amended by striking ‘‘a simple civil process for vol19 untarily acknowledging paternity and’’.

20 SEC. 932. OUTREACH FOR VOLUNTARY PATERNITY ESTAB21 LISHMENT.

22 Section 454(23) (42 U.S.C. 654(23)) is amended by

23 inserting ‘‘and will publicize the availability and encourage

24 the use of procedures for voluntary establishment of pater-
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1 nity and child support by means the State deems appro2 priate’’ before the semicolon.

3 SEC. 933. COOPERATION BY APPLICANTS FOR AND RECIPI4 ENTS OF TEMPORARY FAMILY ASSISTANCE.

5 Section 454 (42 U.S.C. 654), as amended by sections

6 901(b), 904(a), 912(a), and 913(a), is amended—

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

8 (27);

9 (2) by striking the period at the end of para10 graph (28) and inserting ‘‘; and’’; and

11 (3) by inserting after paragraph (28) the follow12 ing new paragraph:

13 ‘‘(29) provide that the State agency responsible

14 for administering the State plan—

15 ‘‘(A) shall make the determination (and re16 determination at appropriate intervals) as to

17 whether an individual who has applied for or is

18 receiving assistance under the State program

19 funded under part A or the State program under

20 title XIX is cooperating in good faith with the

21 State in establishing the paternity of, or in es22 tablishing, modifying, or enforcing a support

23 order for, any child of the individual by provid24 ing the State agency with the name of, and such

25 other information as the State agency may re-
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1 quire with respect to, the noncustodial parent of

2 the child, subject to such good cause and other

3 exceptions as the State shall establish and taking

4 into account the best interests of the child;

5 ‘‘(B) shall require the individual to supply

6 additional necessary information and appear at

7 interviews, hearings, and legal proceedings;

8 ‘‘(C) shall require the individual and the

9 child to submit to genetic tests pursuant to judi10 cial or administrative order; and

11 ‘‘(D) shall promptly notify the individual

12 and the State agency administering the State

13 program funded under part A and the State

14 agency administering the State program under

15 title XIX of each such determination, and if

16 noncooperation is determined, the basis there17 fore.’’.

18 Subtitle E—Program

19 Administration and Funding

20 SEC. 941. PERFORMANCE-BASED INCENTIVES AND PEN21 ALTIES.

22 (a) INCENTIVE PAYMENTS.—

23 (1) IN GENERAL.—Section 458 (42 U.S.C. 658)

24 is amended—
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1 (A) in subsection (a), by striking ‘‘aid to

2 families’’ and all through the end period, and in3 serting ‘‘assistance under a program funded

4 under part A, and regardless of the economic cir5 cumstances of their parents, the Secretary shall,

6 from the support collected which would otherwise

7 represent the reimbursement to the Federal gov8 ernment under section 457, pay to each State for

9 each fiscal year, on a quarterly basis (as de10 scribed in subsection (e)) beginning with the

11 quarter commencing October 1, 1999, an incen12 tive payment in an amount determined under

13 subsections (b) and (c).’’;

14 (B) by striking subsections (b) and (c) and

15 inserting the following:

16 ‘‘(b)(1) Not later than 60 days after the date of the

17 enactment of the Work Opportunity Act of 1995, the Sec18 retary shall establish a committee which shall include State

19 directors of programs under this part and which shall de20 velop for the Secretary’s approval a formula for the dis21 tribution of incentive payments to the States.

22 ‘‘(2) The formula developed and approved under para23 graph (1)—

24 ‘‘(A) shall result in a percentage of the collec25 tions described in subsection (a) being distributed to
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1 each State based on the State’s comparative perform2 ance in the following areas and any other areas ap3 proved by the Secretary under this subsection:

4 ‘‘(i) The IV-D paternity establishment per5 centage, as defined in section 452(g)(2).

6 ‘‘(ii) The percentage of cases with a support

7 order with respect to which services are being

8 provided under the State plan approved under

9 this part.

10 ‘‘(iii) The percentage of cases with a sup11 port order in which child support is paid with

12 respect to which services are being so provided.

13 ‘‘(iv) In cases receiving services under the

14 State plan approved under this part, the amount

15 of child support collected compared to the

16 amount of outstanding child support owed.

17 ‘‘(v) The cost-effectiveness of the State pro18 gram;

19 ‘‘(B) shall take into consideration—

20 ‘‘(i) the impact that incentives can have on

21 reducing the need to provide public assistance

22 and on permanently removing families from

23 public assistance;
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1 ‘‘(ii) the need to balance accuracy and fair2 ness with simplicity of understanding and data

3 gathering;

4 ‘‘(iii) the need to reward performance which

5 improves short- and long-term program out6 comes, especially establishing paternity and sup7 port orders and encouraging the timely payment

8 of support;

9 ‘‘(iv) the Statewide paternity establishment

10 percentage;

11 ‘‘(v) baseline data on current performance

12 and projected costs of performance increases to

13 assure that top performing States can actually

14 achieve the top incentive levels with a reasonable

15 resource investment;

16 ‘‘(vi) performance outcomes which would

17 warrant an increase in the total incentive pay18 ments made to the States; and

19 ‘‘(vii) the use or distribution of any portion

20 of the total incentive payments in excess of the

21 total of the payments which may be distributed

22 under subsection (c);

23 ‘‘(C) shall be determined so as to distribute to the

24 States total incentive payments equal to the total in25 centive payments for all States in fiscal year 1994,
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1 plus a portion of any increase in the reimbursement

2 to the Federal Government under section 457 from fis3 cal year 1999 or any other increase based on other

4 performance outcomes approved by the Secretary

5 under this subsection;

6 ‘‘(D) shall use a definition of the term ‘State’

7 which does not include any area within the jurisdic8 tion of an Indian tribal government; and

9 ‘‘(E) shall use a definition of the term ‘Statewide

10 paternity establishment percentage’ to mean with re11 spect to a State and a fiscal year—

12 ‘‘(i) the total number of children in the

13 State who were born out of wedlock, who have

14 not attained 1 year of age and for whom pater15 nity is established or acknowledged during the

16 fiscal year; divided by

17 ‘‘(ii) the total number of children born out

18 of wedlock in the State during the fiscal year.

19 ‘‘(c) The total amount of the incentives payment made

20 by the Secretary to a State in a fiscal year shall not exceed

21 90 percent of the total amounts expended by such State dur22 ing such year for the operation of the plan approved under

23 section 454, less payments to the State pursuant to section

24 455 for such year.’’;
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1 (2) in subsection (d), by striking ‘‘, and any

2 amounts’’ through ‘‘shall be excluded’’.

3 (b) PAYMENTS TO POLITICAL SUBDIVISIONS.—Section

4 454(22) (42 U.S.C. 654(22)) is amended by inserting before

5 the semicolon the following: ‘‘, but a political subdivision

6 shall not be entitled to receive, and the State may retain,

7 any amount in excess of the amount the political subdivi8 sion expends on the State program under this part, less the

9 amount equal to the percentage of that expenditure paid

10 by the Secretary under section 455’’.

11 (c) CALCULATION OF IV–D PATERNITY ESTABLISH12 MENT PERCENTAGE.—

13 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

14 amended—

15 (A) in the matter preceding subparagraph

16 (A) by inserting ‘‘its overall performance in

17 child support enforcement is satisfactory (as de18 fined in section 458(b) and regulations of the

19 Secretary), and’’ after ‘‘1994,’’; and

20 (B) in each of subparagraphs (A) and (B),

21 by striking ‘‘75’’ and inserting ‘‘90’’.

22 (2) Section 452(g)(2)(A) (42 U.S.C.

23 652(g)(2)(A)) is amended in the matter preceding

24 clause (i)—
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1 (A) by striking ‘‘paternity establishment

2 percentage’’ and inserting ‘‘IV–D paternity es3 tablishment percentage’’; and

4 (B) by striking ‘‘(or all States, as the case

5 may be)’’.

6 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

7 amended—

8 (A) by striking subparagraph (A) and re9 designating subparagraphs (B) and (C) as sub10 paragraphs (A) and (B), respectively;

11 (B) in subparagraph (A) (as so redesig12 nated), by striking ‘‘the percentage of children

13 born out-of-wedlock in a State’’ and inserting

14 ‘‘the percentage of children in a State who are

15 born out of wedlock or for whom support has not

16 been established’’; and

17 (C) in subparagraph (B) (as so redesig18 nated)—

19 (i) by inserting ‘‘and overall perform20 ance in child support enforcement’’ after

21 ‘‘paternity establishment percentages’’; and

22 (ii) by inserting ‘‘and securing sup23 port’’ before the period.

24 (d) EFFECTIVE DATES.—

25 (1) INCENTIVE ADJUSTMENTS.—
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1 (A) IN GENERAL.—The amendments made

2 by subsections (a) and (b) shall become effective

3 on the date of the enactment of this Act, except

4 to the extent provided in subparagraph (B).

5 (B) EXCEPTION.—Section 458 of the Social

6 Security Act, as in effect before the date of the

7 enactment of this section, shall be effective for

8 purposes of incentive payments to States for fis9 cal years before fiscal year 2000.

10 (2) PENALTY REDUCTIONS.—The amendments

11 made by subsection (c) shall become effective with re12 spect to calendar quarters beginning on and after the

13 date of the enactment of this Act.

14 SEC. 942. FEDERAL AND STATE REVIEWS AND AUDITS.

15 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

16 U.S.C. 654) is amended—

17 (1) in paragraph (14), by striking ‘‘(14)’’ and

18 inserting ‘‘(14)(A)’’;

19 (2) by redesignating paragraph (15) as subpara20 graph (B) of paragraph (14); and

21 (3) by inserting after paragraph (14) the follow22 ing new paragraph:

23 ‘‘(15) provide for—

24 ‘‘(A) a process for annual reviews of and re25 ports to the Secretary on the State program op-
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1 erated under the State plan approved under this

2 part, including such information as may be nec3 essary to measure State compliance with Federal

4 requirements for expedited procedures, using

5 such standards and procedures as are required

6 by the Secretary, under which the State agency

7 will determine the extent to which the program

8 is operated in compliance with this part; and

9 ‘‘(B) a process of extracting from the auto10 mated data processing system required by para11 graph (16) and transmitting to the Secretary

12 data and calculations concerning the levels of ac13 complishment (and rates of improvement) with

14 respect to applicable performance indicators (in15 cluding IV–D paternity establishment percent16 ages and overall performance in child support

17 enforcement) to the extent necessary for purposes

18 of sections 452(g) and 458.’’.

19 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

20 U.S.C. 652(a)(4)) is amended to read as follows:

21 ‘‘(4)(A) review data and calculations transmitted

22 by State agencies pursuant to section 454(15)(B) on

23 State program accomplishments with respect to per24 formance indicators for purposes of subsection (g) of

25 this section and section 458;
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1 ‘‘(B) review annual reports submitted pursuant

2 to section 454(15)(A) and, as appropriate, provide to

3 the State comments, recommendations for additional

4 or alternative corrective actions, and technical assist5 ance; and

6 ‘‘(C) conduct audits, in accordance with the Gov7 ernment auditing standards of the Comptroller Gen8 eral of the United States—

9 ‘‘(i) at least once every 3 years (or more fre10 quently, in the case of a State which fails to

11 meet the requirements of this part concerning

12 performance standards and reliability of pro13 gram data) to assess the completeness, reliability,

14 and security of the data, and the accuracy of the

15 reporting systems, used in calculating perform16 ance indicators under subsection (g) of this sec17 tion and section 458;

18 ‘‘(ii) of the adequacy of financial manage19 ment of the State program operated under the

20 State plan approved under this part, including

21 assessments of—

22 ‘‘(I) whether Federal and other funds

23 made available to carry out the State pro24 gram are being appropriately expended,
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1 and are properly and fully accounted for;

2 and

3 ‘‘(II) whether collections and disburse4 ments of support payments are carried out

5 correctly and are fully accounted for; and

6 ‘‘(iii) for such other purposes as the Sec7 retary may find necessary;’’.

8 (c) EFFECTIVE DATE.—The amendments made by this

9 section shall be effective with respect to calendar quarters

10 beginning 12 months or more after the date of the enactment

11 of this Act.

12 SEC. 943. REQUIRED REPORTING PROCEDURES.

13 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

14 652(a)(5)) is amended by inserting ‘‘, and establish proce15 dures to be followed by States for collecting and reporting

16 information required to be provided under this part, and

17 establish uniform definitions (including those necessary to

18 enable the measurement of State compliance with the re19 quirements of this part relating to expedited processes) to

20 be applied in following such procedures’’ before the semi21 colon.

22 (b) STATE PLAN REQUIREMENT.—Section 454 (42

23 U.S.C. 654), as amended by sections 901(b), 904(a), 912(a),

24 913(a), and 933, is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (28);

3 (2) by striking the period at the end of para4 graph (29) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (29) the following

6 new paragraph:

7 ‘‘(30) provide that the State shall use the defini8 tions established under section 452(a)(5) in collecting

9 and reporting information as required under this

10 part.’’.

11 SEC. 944. AUTOMATED DATA PROCESSING REQUIREMENTS.

12 (a) REVISED REQUIREMENTS.—

13 (1) IN GENERAL.—Section 454(16) (42 U.S.C.

14 654(16)) is amended—

15 (A) by striking ‘‘, at the option of the

16 State,’’;

17 (B) by inserting ‘‘and operation by the

18 State agency’’ after ‘‘for the establishment’’;

19 (C) by inserting ‘‘meeting the requirements

20 of section 454A’’ after ‘‘information retrieval sys21 tem’’;

22 (D) by striking ‘‘in the State and localities

23 thereof, so as (A)’’ and inserting ‘‘so as’’;

24 (E) by striking ‘‘(i)’’; and
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1 (F) by striking ‘‘(including’’ and all that

2 follows and inserting a semicolon.

3 (2) AUTOMATED DATA PROCESSING.—Part D of

4 title IV (42 U.S.C. 651–669) is amended by inserting

5 after section 454 the following new section:

6 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

7 ‘‘(a) IN GENERAL.—In order for a State to meet the

8 requirements of this section, the State agency administering

9 the State program under this part shall have in operation

10 a single statewide automated data processing and informa11 tion retrieval system which has the capability to perform

12 the tasks specified in this section with the frequency and

13 in the manner required by or under this part.

14 ‘‘(b) PROGRAM MANAGEMENT.—The automated system

15 required by this section shall perform such functions as the

16 Secretary may specify relating to management of the State

17 program under this part, including—

18 ‘‘(1) controlling and accounting for use of Fed19 eral, State, and local funds in carrying out the pro20 gram; and

21 ‘‘(2) maintaining the data necessary to meet

22 Federal reporting requirements under this part on a

23 timely basis.

24 ‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—

25 In order to enable the Secretary to determine the incentive
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1 and penalty adjustments required by sections 452(g) and

2 458, the State agency shall—

3 ‘‘(1) use the automated system—

4 ‘‘(A) to maintain the requisite data on

5 State performance with respect to paternity es6 tablishment and child support enforcement in the

7 State; and

8 ‘‘(B) to calculate the IV–D paternity estab9 lishment percentage and overall performance in

10 child support enforcement for the State for each

11 fiscal year; and

12 ‘‘(2) have in place systems controls to ensure the

13 completeness and reliability of, and ready access to,

14 the data described in paragraph (1)(A), and the accu15 racy of the calculations described in paragraph

16 (1)(B).

17 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

18 State agency shall have in effect safeguards on the integrity,

19 accuracy, and completeness of, access to, and use of data

20 in the automated system required by this section, which

21 shall include the following (in addition to such other safe22 guards as the Secretary may specify in regulations):

23 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

24 policies concerning access to data by State agency
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1 personnel, and sharing of data with other persons,

2 which—

3 ‘‘(A) permit access to and use of data only

4 to the extent necessary to carry out the State

5 program under this part; and

6 ‘‘(B) specify the data which may be used for

7 particular program purposes, and the personnel

8 permitted access to such data.

9 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

10 (such as passwords or blocking of fields) to ensure

11 strict adherence to the policies described in paragraph

12 (1).

13 ‘‘(3) MONITORING OF ACCESS.—Routine mon14 itoring of access to and use of the automated system,

15 through methods such as audit trails and feedback

16 mechanisms, to guard against and promptly identify

17 unauthorized access or use.

18 ‘‘(4) TRAINING AND INFORMATION.—Procedures

19 to ensure that all personnel (including State and local

20 agency staff and contractors) who may have access to

21 or be required to use confidential program data are

22 informed of applicable requirements and penalties

23 (including those in section 6103 of the Internal Reve24 nue Code of 1986), and are adequately trained in se25 curity procedures.
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1 ‘‘(5) PENALTIES.—Administrative penalties (up

2 to and including dismissal from employment) for un3 authorized access to, or disclosure or use of, confiden4 tial data.’’.

5 (3) REGULATIONS.—The Secretary of Health and

6 Human Services shall prescribe final regulations for

7 implementation of section 454A of the Social Security

8 Act not later than 2 years after the date of the enact9 ment of this Act.

10 (4) IMPLEMENTATION TIMETABLE.—Section

11 454(24) (42 U.S.C. 654(24)), as amended by sections

12 904(a)(2) and 912(a)(1), is amended to read as fol13 lows:

14 ‘‘(24) provide that the State will have in effect

15 an automated data processing and information re16 trieval system—

17 ‘‘(A) by October 1, 1997, which meets all re18 quirements of this part which were enacted on or

19 before the date of enactment of the Family Sup20 port Act of 1988; and

21 ‘‘(B) by October 1, 1999, which meets all re22 quirements of this part enacted on or before the

23 date of the enactment of the Work Opportunity

24 Act of 1995, except that such deadline shall be

25 extended by 1 day for each day (if any) by
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1 which the Secretary fails to meet the deadline

2 imposed by section 944(a)(3) of the Work Oppor3 tunity Act of 1995.’’.

4 (b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL5 OPMENT COSTS OF AUTOMATED SYSTEMS.—

6 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

7 655(a)) is amended—

8 (A) in paragraph (1)(B)—

9 (i) by striking ‘‘90 percent’’ and in10 serting ‘‘the percent specified in paragraph

11 (3)’’;

12 (ii) by striking ‘‘so much of’’; and

13 (iii) by striking ‘‘which the Secretary’’

14 and all that follows and inserting ‘‘, and’’;

15 and

16 (B) by adding at the end the following new

17 paragraph:

18 ‘‘(3)(A) The Secretary shall pay to each State, for each

19 quarter in fiscal years 1996 and 1997, 90 percent of so

20 much of the State expenditures described in paragraph

21 (1)(B) as the Secretary finds are for a system meeting the

22 requirements specified in section 454(16) (as in effect on

23 the day before the date of the enactment of the Work Oppor24 tunity Act of 1995), but limited to the amount approved
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1 for States in the advance planning documents of such States

2 submitted on or before May 1, 1995.

3 ‘‘(B)(i) The Secretary shall pay to each State, for each

4 quarter in fiscal years 1997 through 2001, the percentage

5 specified in clause (ii) of so much of the State expenditures

6 described in paragraph (1)(B) as the Secretary finds are

7 for a system meeting the requirements of sections 454(16)

8 and 454A.

9 ‘‘(ii) The percentage specified in this clause is the

10 greater of—

11 ‘‘(I) 80 percent; or

12 ‘‘(II) the percentage otherwise applicable to Fed13 eral payments to the State under subparagraph (A)

14 (as adjusted pursuant to section 458).’’.

15 (2) TEMPORARY LIMITATION ON PAYMENTS

16 UNDER SPECIAL FEDERAL MATCHING RATE.—

17 (A) IN GENERAL.—The Secretary of Health

18 and Human Services may not pay more than

19 $260,000,000 in the aggregate under section

20 455(a)(3) of the Social Security Act for fiscal

21 years 1996, 1997, 1998, 1999, and 2000.

22 (B) ALLOCATION OF LIMITATION AMONG

23 STATES.—The total amount payable to a State

24 under section 455(a)(3) of such Act for fiscal

25 years 1996, 1997, 1998, 1999, and 2000 shall
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1 not exceed the limitation determined for the

2 State by the Secretary of Health and Human

3 Services in regulations.

4 (C) ALLOCATION FORMULA.—The regula5 tions referred to in subparagraph (B) shall pre6 scribe a formula for allocating the amount speci7 fied in subparagraph (A) among States with

8 plans approved under part D of title IV of the

9 Social Security Act, which shall take into ac10 count—

11 (i) the relative size of State caseloads

12 under such part; and

13 (ii) the level of automation needed to

14 meet the automated data processing require15 ments of such part.

16 (c) CONFORMING AMENDMENT.—Section 123(c) of the

17 Family Support Act of 1988 (102 Stat. 2352; Public Law

18 100–485) is repealed.

19 SEC. 945. TECHNICAL ASSISTANCE.

20 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

21 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPECIAL

22 PROJECTS OF REGIONAL OR NATIONAL SIGNIFICANCE.—

23 Section 452 (42 U.S.C. 652) is amended by adding at the

24 end the following new subsection:
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1 ‘‘(j) Out of any money in the Treasury of the United

2 States not otherwise appropriated, there is hereby appro3 priated to the Secretary for each fiscal year an amount

4 equal to 1 percent of the total amount paid to the Federal

5 Government pursuant to section 457(a) during the imme6 diately preceding fiscal year (as determined on the basis

7 of the most recent reliable data available to the Secretary

8 as of the end of the 3rd calendar quarter following the end

9 of such preceding fiscal year), to cover costs incurred by

10 the Secretary for—

11 ‘‘(1) information dissemination and technical as12 sistance to States, training of State and Federal staff,

13 staffing studies, and related activities needed to im14 prove programs under this part (including technical

15 assistance concerning State automated systems re16 quired by this part); and

17 ‘‘(2) research, demonstration, and special

18 projects of regional or national significance relating

19 to the operation of State programs under this part.’’.

20 (b) OPERATION OF FEDERAL PARENT LOCATOR SERV21 ICE.—Section 453 (42 U.S.C. 653), as amended by section

22 916(f), is amended by adding at the end the following new

23 subsection:

24 ‘‘(n) Out of any money in the Treasury of the United

25 States not otherwise appropriated, there is hereby appro-
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1 priated to the Secretary for each fiscal year an amount

2 equal to 2 percent of the total amount paid to the Federal

3 Government pursuant to section 457(a) during the imme4 diately preceding fiscal year (as determined on the basis

5 of the most recent reliable data available to the Secretary

6 as of the end of the 3rd calendar quarter following the end

7 of such preceding fiscal year), to cover costs incurred by

8 the Secretary for operation of the Federal Parent Locator

9 Service under this section, to the extent such costs are not

10 recovered through user fees.’’.

11 SEC. 946. REPORTS AND DATA COLLECTION BY THE SEC12 RETARY.

13 (a) ANNUAL REPORT TO CONGRESS.—

14 (1) Section 452(a)(10)(A) (42 U.S.C.

15 652(a)(10)(A)) is amended—

16 (A) by striking ‘‘this part;’’ and inserting

17 ‘‘this part, including—’’; and

18 (B) by adding at the end the following new

19 clauses:

20 ‘‘(i) the total amount of child support

21 payments collected as a result of services

22 furnished during the fiscal year to individ23 uals receiving services under this part;
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1 ‘‘(ii) the cost to the States and to the

2 Federal Government of so furnishing the

3 services; and

4 ‘‘(iii) the number of cases involving

5 families—

6 ‘‘(I) who became ineligible for as7 sistance under State programs funded

8 under part A during a month in the

9 fiscal year; and

10 ‘‘(II) with respect to whom a child

11 support payment was received in the

12 month;’’.

13 (2) Section 452(a)(10)(C) (42 U.S.C.

14 652(a)(10)(C)) is amended—

15 (A) in the matter preceding clause (i)—

16 (i) by striking ‘‘with the data required

17 under each clause being separately stated

18 for cases’’ and inserting ‘‘separately stated

19 for (1) cases’’;

20 (ii) by striking ‘‘cases where the child

21 was formerly receiving’’ and inserting ‘‘or

22 formerly received’’;

23 (iii) by inserting ‘‘or 1912’’ after

24 ‘‘471(a)(17)’’; and
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1 (iv) by inserting ‘‘(2)’’ before ‘‘all

2 other’’;

3 (B) in each of clauses (i) and (ii), by strik4 ing ‘‘, and the total amount of such obligations’’;

5 (C) in clause (iii), by striking ‘‘described

6 in’’ and all that follows and inserting ‘‘in which

7 support was collected during the fiscal year;’’;

8 (D) by striking clause (iv); and

9 (E) by redesignating clause (v) as clause

10 (vii), and inserting after clause (iii) the follow11 ing new clauses:

12 ‘‘(iv) the total amount of support col13 lected during such fiscal year and distrib14 uted as current support;

15 ‘‘(v) the total amount of support col16 lected during such fiscal year and distrib17 uted as arrearages;

18 ‘‘(vi) the total amount of support due

19 and unpaid for all fiscal years; and’’.

20 (3) Section 452(a)(10)(G) (42 U.S.C.

21 652(a)(10)(G)) is amended by striking ‘‘on the use of

22 Federal courts and’’.

23 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

24 amended—
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1 (A) in subparagraph (H), by striking

2 ‘‘and’’;

3 (B) in subparagraph (I), by striking the pe4 riod and inserting ‘‘; and’’; and

5 (C) by inserting after subparagraph (I) the

6 following new subparagraph:

7 ‘‘(J) compliance, by State, with the stand8 ards established pursuant to subsections (h) and

9 (i).’’.

10 (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

11 amended by striking all that follows subparagraph

12 (J), as added by paragraph (4).

13 (b) EFFECTIVE DATE.—The amendments made by sub14 section (a) shall be effective with respect to fiscal year 1996

15 and succeeding fiscal years.

16 Subtitle F—Establishment and

17 Modification of Support Orders

18 SEC. 951. NATIONAL CHILD SUPPORT GUIDELINES COMMIS19 SION.

20 (a) ESTABLISHMENT.—There is hereby established a

21 commission to be known as the National Child Support

22 Guidelines Commission (in this section referred to as the

23 ‘‘Commission’’).

24 (b) GENERAL DUTIES.—
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1 (1) IN GENERAL.—The Commission shall deter2 mine—

3 (A) whether it is appropriate to develop a

4 national child support guideline for consider5 ation by the Congress or for adoption by individ6 ual States; or

7 (B) based on a study of various guideline

8 models, the benefits and deficiencies of such mod9 els, and any needed improvements.

10 (2) DEVELOPMENT OF MODELS.—If the Commis11 sion determines under paragraph (1)(A) that a na12 tional child support guideline is needed or under

13 paragraph (1)(B) that improvements to guideline

14 models are needed, the Commission shall develop such

15 national guideline or improvements.

16 (c) MATTERS FOR CONSIDERATION BY THE COMMIS17 SION.—In making the recommendations concerning guide18 lines required under subsection (b), the Commission shall

19 consider—

20 (1) the adequacy of State child support guide21 lines established pursuant to section 467;

22 (2) matters generally applicable to all support

23 orders, including—

24 (A) the feasibility of adopting uniform

25 terms in all child support orders;
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1 (B) how to define income and under what

2 circumstances income should be imputed; and

3 (C) tax treatment of child support pay4 ments;

5 (3) the appropriate treatment of cases in which

6 either or both parents have financial obligations to

7 more than 1 family, including the effect (if any) to

8 be given to—

9 (A) the income of either parent’s spouse;

10 and

11 (B) the financial responsibilities of either

12 parent for other children or stepchildren;

13 (4) the appropriate treatment of expenses for

14 child care (including care of the children of either

15 parent, and work-related or job-training-related child

16 care);

17 (5) the appropriate treatment of expenses for

18 health care (including uninsured health care) and

19 other extraordinary expenses for children with special

20 needs;

21 (6) the appropriate duration of support by 1 or

22 both parents, including—

23 (A) support (including shared support) for

24 postsecondary or vocational education; and

25 (B) support for disabled adult children;
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1 (7) procedures to automatically adjust child sup2 port orders periodically to address changed economic

3 circumstances, including changes in the Consumer

4 Price Index or either parent’s income and expenses in

5 particular cases;

6 (8) procedures to help noncustodial parents ad7 dress grievances regarding visitation and custody or8 ders to prevent such parents from withholding child

9 support payments until such grievances are resolved;

10 and

11 (9) whether, or to what extent, support levels

12 should be adjusted in cases in which custody is shared

13 or in which the noncustodial parent has extended vis14 itation rights.

15 (d) MEMBERSHIP.—

16 (1) NUMBER; APPOINTMENT.—

17 (A) IN GENERAL.—The Commission shall be

18 composed of 12 individuals appointed not later

19 than January 15, 1997, of which—

20 (i) 2 shall be appointed by the Chair21 man of the Committee on Finance of the

22 Senate, and 1 shall be appointed by the

23 ranking minority member of the Committee;

24 (ii) 2 shall be appointed by the Chair25 man of the Committee on Ways and Means
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1 of the House of Representatives, and 1 shall

2 be appointed by the ranking minority mem3 ber of the Committee; and

4 (iii) 6 shall be appointed by the Sec5 retary of Health and Human Services.

6 (B) QUALIFICATIONS OF MEMBERS.—Mem7 bers of the Commission shall have expertise and

8 experience in the evaluation and development of

9 child support guidelines. At least 1 member shall

10 represent advocacy groups for custodial parents,

11 at least 1 member shall represent advocacy

12 groups for noncustodial parents, and at least 1

13 member shall be the director of a State program

14 under part D of title IV of the Social Security

15 Act.

16 (2) TERMS OF OFFICE.—Each member shall be

17 appointed for a term of 2 years. A vacancy in the

18 Commission shall be filled in the manner in which

19 the original appointment was made.

20 (e) COMMISSION POWERS, COMPENSATION, ACCESS TO

21 INFORMATION, AND SUPERVISION.—The 1st sentence of sub22 paragraph (C), the 1st and 3rd sentences of subparagraph

23 (D), subparagraph (F) (except with respect to the conduct

24 of medical studies), clauses (ii) and (iii) of subparagraph

25 (G), and subparagraph (H) of section 1886(e)(6) of the So-
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1 cial Security Act shall apply to the Commission in the same

2 manner in which such provisions apply to the Prospective

3 Payment Assessment Commission.

4 (f) REPORT.—Not later than 2 years after the appoint5 ment of members, the Commission shall submit to the Presi6 dent, the Committee on Ways and Means of the House of

7 Representatives, and the Committee on Finance of the Sen8 ate, a recommended national child support guideline and

9 a final assessment of issues relating to such a proposed na10 tional child support guideline.

11 (g) TERMINATION.—The Commission shall terminate

12 6 months after the submission of the report described in sub13 section (e).

14 SEC. 952. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST15 MENT OF CHILD SUPPORT ORDERS.

16 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended

17 to read as follows:

18 ‘‘(10) Procedures under which the State shall re19 view and adjust each support order being enforced

20 under this part upon the request of either parent or

21 the State if there is an assignment. Such procedures

22 shall provide the following:

23 ‘‘(A) The State shall review and, as appro24 priate, adjust the support order every 3 years,
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1 taking into account the best interests of the child

2 involved.

3 ‘‘(B)(i) The State may elect to review and,

4 if appropriate, adjust an order pursuant to sub5 paragraph (A) by—

6 ‘‘(I) reviewing and, if appropriate, ad7 justing the order in accordance with the

8 guidelines established pursuant to section

9 467(a) if the amount of the child support

10 award under the order differs from the

11 amount that would be awarded in accord12 ance with the guidelines; or

13 ‘‘(II) applying a cost-of-living adjust14 ment to the order in accordance with a for15 mula developed by the State and permit ei16 ther party to contest the adjustment, within

17 30 days after the date of the notice of the

18 adjustment, by making a request for review

19 and, if appropriate, adjustment of the order

20 in accordance with the child support guide21 lines established pursuant to section 467(a).

22 ‘‘(ii) Any adjustment under clause (i) shall

23 be made without a requirement for proof or

24 showing of a change in circumstances.
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1 ‘‘(C) The State may use automated methods

2 (including automated comparisons with wage or

3 State income tax data) to identify orders eligible

4 for review, conduct the review, identify orders el5 igible for adjustment, and apply the appropriate

6 adjustment to the orders eligible for adjustment

7 under the threshold established by the State.

8 ‘‘(D)(i) The State shall, at the request of ei9 ther parent subject to such an order or of any

10 State child support enforcement agency, review

11 and, if appropriate, adjust the order in accord12 ance with the guidelines established pursuant to

13 section 467(a) based upon a substantial change

14 in the circumstances of either parent.

15 ‘‘(ii) The State shall provide notice to the

16 parents subject to such an order informing them

17 of their right to request the State to review and,

18 if appropriate, adjust the order pursuant to

19 clause (i). The notice may be included in the

20 order.’’.

21 SEC. 953. FURNISHING CONSUMER REPORTS FOR CERTAIN

22 PURPOSES RELATING TO CHILD SUPPORT.

23 Section 604 of the Fair Credit Reporting Act (15

24 U.S.C. 1681b) is amended by adding at the end the follow25 ing new paragraphs:
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1 ‘‘(4) In response to a request by the head of a

2 State or local child support enforcement agency (or a

3 State or local government official authorized by the

4 head of such an agency), if the person making the re5 quest certifies to the consumer reporting agency

6 that—

7 ‘‘(A) the consumer report is needed for the

8 purpose of establishing an individual’s capacity

9 to make child support payments or determining

10 the appropriate level of such payments;

11 ‘‘(B) the paternity of the consumer for the

12 child to which the obligation relates has been es13 tablished or acknowledged by the consumer in ac14 cordance with State laws under which the obliga15 tion arises (if required by those laws);

16 ‘‘(C) the person has provided at least 10

17 days’ prior notice to the consumer whose report

18 is requested, by certified or registered mail to the

19 last known address of the consumer, that the re20 port will be requested; and

21 ‘‘(D) the consumer report will be kept con22 fidential, will be used solely for a purpose de23 scribed in subparagraph (A), and will not be

24 used in connection with any other civil, admin-
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1 istrative, or criminal proceeding, or for any

2 other purpose.

3 ‘‘(5) To an agency administering a State plan

4 under section 454 of the Social Security Act (42

5 U.S.C. 654) for use to set an initial or modified child

6 support award.’’.

7 SEC. 954. NONLIABILITY FOR DEPOSITORY INSTITUTIONS

8 PROVIDING FINANCIAL RECORDS TO STATE

9 CHILD SUPPORT ENFORCEMENT AGENCIES

10 IN CHILD SUPPORT CASES.

11 (a) IN GENERAL.—Notwithstanding any other provi12 sion of Federal or State law, a depository institution shall

13 not be liable under any Federal or State law to any person

14 for disclosing any financial record of an individual to a

15 State child support enforcement agency attempting to estab16 lish, modify, or enforce a child support obligation of such

17 individual.

18 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

19 RECORD OBTAINED BY STATE CHILD SUPPORT ENFORCE20 MENT AGENCY.—A State child support enforcement agency

21 which obtains a financial record of an individual from a

22 financial institution pursuant to subsection (a) may dis23 close such financial record only for the purpose of, and to

24 the extent necessary in, establishing, modifying, or enforc25 ing a child support obligation of such individual.
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1 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO2 SURE.—

3 (1) DISCLOSURE BY STATE OFFICER OR EM4 PLOYEE.—If any person knowingly, or by reason of

5 negligence, discloses a financial record of an individ6 ual in violation of subsection (b), such individual

7 may bring a civil action for damages against such

8 person in a district court of the United States.

9 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO10 NEOUS INTERPRETATION.—No liability shall arise

11 under this subsection with respect to any disclosure

12 which results from a good faith, but erroneous, inter13 pretation of subsection (b).

14 (3) DAMAGES.—In any action brought under

15 paragraph (1), upon a finding of liability on the part

16 of the defendant, the defendant shall be liable to the

17 plaintiff in an amount equal to the sum of—

18 (A) the greater of—

19 (i) $1,000 for each act of unauthorized

20 disclosure of a financial record with respect

21 to which such defendant is found liable; or

22 (ii) the sum of—

23 (I) the actual damages sustained

24 by the plaintiff as a result of such un25 authorized disclosure; plus
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1 (II) in the case of a willful disclo2 sure or a disclosure which is the result

3 of gross negligence, punitive damages;

4 plus

5 (B) the costs (including attorney’s fees) of

6 the action.

7 (d) DEFINITIONS.—For purposes of this section:

8 (1) The term ‘‘depository institution’’ means—

9 (A) a depository institution, as defined in

10 section 3(c) of the Federal Deposit Insurance Act

11 (12 U.S.C. 1813(c));

12 (B) an institution-affiliated party, as de13 fined in section 3(u) of such Act (12 U.S.C.

14 1813(v)); and

15 (C) any Federal credit union or State credit

16 union, as defined in section 101 of the Federal

17 Credit Union Act (12 U.S.C. 1752), including

18 an institution-affiliated party of such a credit

19 union, as defined in section 206(r) of such Act

20 (12 U.S.C. 1786(r)).

21 (2) The term ‘‘financial record’’ has the meaning

22 given such term in section 1101 of the Right to Fi23 nancial Privacy Act of 1978 (12 U.S.C. 3401).

24 (3) The term ‘‘State child support enforcement

25 agency’’ means a State agency which administers a
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1 State program for establishing and enforcing child

2 support obligations.

3 Subtitle G—Enforcement of Support

4 Orders

5 SEC. 961. INTERNAL REVENUE SERVICE COLLECTION OF

6 ARREARAGES.

7 (a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec8 tion 6305(a) of the Internal Revenue Code of 1986 (relating

9 to collection of certain liability) is amended—

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

11 (3);

12 (2) by striking the period at the end of para13 graph (4) and inserting ‘‘, and’’;

14 (3) by adding at the end the following new para15 graph:

16 ‘‘(5) no additional fee may be assessed for adjust17 ments to an amount previously certified pursuant to

18 such section 452(b) with respect to the same obligor.’’;

19 and

20 (4) by striking ‘‘Secretary of Health, Education,

21 and Welfare’’ each place it appears and inserting

22 ‘‘Secretary of Health and Human Services’’.

23 (b) EFFECTIVE DATE.—The amendments made by this

24 section shall become effective October 1, 1997.
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1 SEC. 962. AUTHORITY TO COLLECT SUPPORT FROM FED2 ERAL EMPLOYEES.

3 (a) CONSOLIDATION AND STREAMLINING OF AUTHORI4 TIES.—Section 459 (42 U.S.C. 659) is amended to read as

5 follows:

6 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

7 WITHHOLDING, GARNISHMENT, AND SIMILAR

8 PROCEEDINGS FOR ENFORCEMENT OF CHILD

9 SUPPORT AND ALIMONY OBLIGATIONS.

10 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not11 withstanding any other provision of law (including section

12 207 of this Act and section 5301 of title 38, United States

13 Code), effective January 1, 1975, moneys (the entitlement

14 to which is based upon remuneration for employment) due

15 from, or payable by, the United States or the District of

16 Columbia (including any agency, subdivision, or instru17 mentality thereof) to any individual, including members of

18 the Armed Forces of the United States, shall be subject, in

19 like manner and to the same extent as if the United States

20 or the District of Columbia were a private person, to with21 holding in accordance with State law enacted pursuant to

22 subsections (a)(1) and (b) of section 466 and regulations

23 of the Secretary under such subsections, and to any other

24 legal process brought, by a State agency administering a

25 program under a State plan approved under this part or
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1 by an individual obligee, to enforce the legal obligation of

2 the individual to provide child support or alimony.

3 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

4 PRIVATE PERSON.—With respect to notice to withhold in5 come pursuant to subsection (a)(1) or (b) of section 466,

6 or any other order or process to enforce support obligations

7 against an individual (if the order or process contains or

8 is accompanied by sufficient data to permit prompt identi9 fication of the individual and the moneys involved), each

10 governmental entity specified in subsection (a) shall be sub11 ject to the same requirements as would apply if the entity

12 were a private person, except as otherwise provided in this

13 section.

14 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

15 OR PROCESS—

16 ‘‘(1) DESIGNATION OF AGENT.—The head of each

17 agency subject to this section shall—

18 ‘‘(A) designate an agent or agents to receive

19 orders and accept service of process in matters

20 relating to child support or alimony; and

21 ‘‘(B) annually publish in the Federal Reg22 ister the designation of the agent or agents, iden23 tified by title or position, mailing address, and

24 telephone number.
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1 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

2 agent designated pursuant to paragraph (1) of this

3 subsection receives notice pursuant to State proce4 dures in effect pursuant to subsection (a)(1) or (b) of

5 section 466, or is effectively served with any order,

6 process, or interrogatory, with respect to an individ7 ual’s child support or alimony payment obligations,

8 the agent shall—

9 ‘‘(A) as soon as possible (but not later than

10 15 days) thereafter, send written notice of the no11 tice or service (together with a copy of the notice

12 or service) to the individual at the duty station

13 or last-known home address of the individual;

14 ‘‘(B) within 30 days (or such longer period

15 as may be prescribed by applicable State law)

16 after receipt of a notice pursuant to such State

17 procedures, comply with all applicable provi18 sions of section 466; and

19 ‘‘(C) within 30 days (or such longer period

20 as may be prescribed by applicable State law)

21 after effective service of any other such order,

22 process, or interrogatory, respond to the order,

23 process, or interrogatory.

24 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

25 specified in subsection (a) receives notice or is served with
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1 process, as provided in this section, concerning amounts

2 owed by an individual to more than 1 person—

3 ‘‘(1) support collection under section 466(b) must

4 be given priority over any other process, as provided

5 in section 466(b)(7);

6 ‘‘(2) allocation of moneys due or payable to an

7 individual among claimants under section 466(b)

8 shall be governed by section 466(b) and the regula9 tions prescribed under such section; and

10 ‘‘(3) such moneys as remain after compliance

11 with paragraphs (1) and (2) shall be available to sat12 isfy any other such processes on a 1st-come, 1st-served

13 basis, with any such process being satisfied out of

14 such moneys as remain after the satisfaction of all

15 such processes which have been previously served.

16 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

17 governmental entity that is affected by legal process served

18 for the enforcement of an individual’s child support or ali19 mony payment obligations shall not be required to vary its

20 normal pay and disbursement cycle in order to comply with

21 the legal process.

22 ‘‘(f) RELIEF FROM LIABILITY.—

23 ‘‘(1) Neither the United States, nor the govern24 ment of the District of Columbia, nor any disbursing

25 officer shall be liable with respect to any payment
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1 made from moneys due or payable from the United

2 States to any individual pursuant to legal process

3 regular on its face, if the payment is made in accord4 ance with this section and the regulations issued to

5 carry out this section.

6 ‘‘(2) No Federal employee whose duties include

7 taking actions necessary to comply with the require8 ments of subsection (a) with regard to any individual

9 shall be subject under any law to any disciplinary ac10 tion or civil or criminal liability or penalty for, or

11 on account of, any disclosure of information made by

12 the employee in connection with the carrying out of

13 such actions.

14 ‘‘(g) REGULATIONS.—Authority to promulgate regula15 tions for the implementation of this section shall, insofar

16 as this section applies to moneys due from (or payable

17 by)—

18 ‘‘(1) the United States (other than the legislative

19 or judicial branches of the Federal Government) or

20 the government of the District of Columbia, be vested

21 in the President (or the designee of the President);

22 ‘‘(2) the legislative branch of the Federal Govern23 ment, be vested jointly in the President pro tempore

24 of the Senate and the Speaker of the House of Rep25 resentatives (or their designees), and
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1 ‘‘(3) the judicial branch of the Federal Govern2 ment, be vested in the Chief Justice of the United

3 States (or the designee of the Chief Justice).

4 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

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

6 moneys paid or payable to an individual which are

7 considered to be based upon remuneration for employ8 ment, for purposes of this section—

9 ‘‘(A) consist of—

10 ‘‘(i) compensation paid or payable for

11 personal services of the individual, whether

12 the compensation is denominated as wages,

13 salary, commission, bonus, pay, allowances,

14 or otherwise (including severance pay, sick

15 pay, and incentive pay);

16 ‘‘(ii) periodic benefits (including a

17 periodic benefit as defined in section

18 228(h)(3)) or other payments—

19 ‘‘(I) under the insurance system

20 established by title II;

21 ‘‘(II) under any other system or

22 fund established by the United States

23 which provides for the payment of pen24 sions, retirement or retired pay, annu25 ities, dependents’ or survivors’ benefits,
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1 or similar amounts payable on account

2 of personal services performed by the

3 individual or any other individual;

4 ‘‘(III) as compensation for death

5 under any Federal program;

6 ‘‘(IV) under any Federal program

7 established to provide ‘black lung’ bene8 fits; or

9 ‘‘(V) by the Secretary of Veterans

10 Affairs as pension, or as compensation

11 for a service-connected disability or

12 death (except any compensation paid

13 by the Secretary to a member of the

14 Armed Forces who is in receipt of re15 tired or retainer pay if the member has

16 waived a portion of the retired pay of

17 the member in order to receive the com18 pensation); and

19 ‘‘(iii) workers’ compensation benefits

20 paid under Federal or State law; but

21 ‘‘(B) do not include any payment—

22 ‘‘(i) by way of reimbursement or other23 wise, to defray expenses incurred by the in24 dividual in carrying out duties associated

25 with the employment of the individual; or
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1 ‘‘(ii) as allowances for members of the

2 uniformed services payable pursuant to

3 chapter 7 of title 37, United States Code, as

4 prescribed by the Secretaries concerned (de5 fined by section 101(5) of such title) as nec6 essary for the efficient performance of duty.

7 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter8 mining the amount of any moneys due from, or pay9 able by, the United States to any individual, there

10 shall be excluded amounts which—

11 ‘‘(A) are owed by the individual to the

12 United States;

13 ‘‘(B) are required by law to be, and are, de14 ducted from the remuneration or other payment

15 involved, including Federal employment taxes,

16 and fines and forfeitures ordered by court-mar17 tial;

18 ‘‘(C) are properly withheld for Federal,

19 State, or local income tax purposes, if the with20 holding of the amounts is authorized or required

21 by law and if amounts withheld are not greater

22 than would be the case if the individual claimed

23 all dependents to which he was entitled (the

24 withholding of additional amounts pursuant to

25 section 3402(i) of the Internal Revenue Code of
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1 1986 may be permitted only when the individual

2 presents evidence of a tax obligation which sup3 ports the additional withholding);

4 ‘‘(D) are deducted as health insurance pre5 miums;

6 ‘‘(E) are deducted as normal retirement

7 contributions (not including amounts deducted

8 for supplementary coverage); or

9 ‘‘(F) are deducted as normal life insurance

10 premiums from salary or other remuneration for

11 employment (not including amounts deducted for

12 supplementary coverage).

13 ‘‘(i) DEFINITIONS.—As used in this section:

14 ‘‘(1) UNITED STATES.—The term ‘United States’

15 includes any department, agency, or instrumentality

16 of the legislative, judicial, or executive branch of the

17 Federal Government, the United States Postal Serv18 ice, the Postal Rate Commission, any Federal cor19 poration created by an Act of Congress that is wholly

20 owned by the Federal Government, and the govern21 ments of the territories and possessions of the United

22 States.

23 ‘‘(2) CHILD SUPPORT.—The term ‘child support’,

24 when used in reference to the legal obligations of an

25 individual to provide such support, means periodic
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1 payments of funds for the support and maintenance

2 of a child or children with respect to which the indi3 vidual has such an obligation, and (subject to and in

4 accordance with State law) includes payments to pro5 vide for health care, education, recreation, clothing, or

6 to meet other specific needs of such a child or chil7 dren, and includes attorney’s fees, interest, and court

8 costs, when and to the extent that the same are ex9 pressly made recoverable as such pursuant to a decree,

10 order, or judgment issued in accordance with applica11 ble State law by a court of competent jurisdiction.

12 ‘‘(3) ALIMONY.—The term ‘alimony’, when used

13 in reference to the legal obligations of an individual

14 to provide the same, means periodic payments of

15 funds for the support and maintenance of the spouse

16 (or former spouse) of the individual, and (subject to

17 and in accordance with State law) includes separate

18 maintenance, alimony pendente lite, maintenance,

19 and spousal support, and includes attorney’s fees, in20 terest, and court costs when and to the extent that the

21 same are expressly made recoverable as such pursuant

22 to a decree, order, or judgment issued in accordance

23 with applicable State law by a court of competent ju24 risdiction. Such term does not include any payment

25 or transfer of property or its value by an individual
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1 to the spouse or a former spouse of the individual in

2 compliance with any community property settlement,

3 equitable distribution of property, or other division of

4 property between spouses or former spouses.

5 ‘‘(4) PRIVATE PERSON.—The term ‘private per6 son’ means a person who does not have sovereign or

7 other special immunity or privilege which causes the

8 person not to be subject to legal process.

9 ‘‘(5) LEGAL PROCESS.—The term ‘legal process’

10 means any writ, order, summons, or other similar

11 process in the nature of garnishment—

12 ‘‘(A) which is issued by—

13 ‘‘(i) a court of competent jurisdiction

14 in any State, territory, or possession of the

15 United States;

16 ‘‘(ii) a court of competent jurisdiction

17 in any foreign country with which the

18 United States has entered into an agree19 ment which requires the United States to

20 honor the process; or

21 ‘‘(iii) an authorized official pursuant

22 to an order of such a court of competent ju23 risdiction or pursuant to State or local law;

24 and
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1 ‘‘(B) which is directed to, and the purpose

2 of which is to compel, a governmental entity

3 which holds moneys which are otherwise payable

4 to an individual to make a payment from the

5 moneys to another party in order to satisfy a

6 legal obligation of the individual to provide child

7 support or make alimony payments.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) TO PART D OF TITLE IV.—Sections 461 and

10 462 (42 U.S.C. 661 and 662) are repealed.

11 (2) TO TITLE 5, UNITED STATES CODE.—Section

12 5520a of title 5, United States Code, is amended, in

13 subsections (h)(2) and (i), by striking ‘‘sections 459,

14 461, and 462 of the Social Security Act (42 U.S.C.

15 659, 661, and 662)’’ and inserting ‘‘section 459 of the

16 Social Security Act (42 U.S.C. 659)’’.

17 (c) MILITARY RETIRED AND RETAINER PAY.—

18 (1) DEFINITION OF COURT.—Section 1408(a)(1)

19 of title 10, United States Code, is amended—

20 (A) by striking ‘‘and’’ at the end of sub21 paragraph (B);

22 (B) by striking the period at the end of sub23 paragraph (C) and inserting ‘‘; and’’; and

24 (C) by adding after subparagraph (C) the

25 following new subparagraph:
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1 ‘‘(D) any administrative or judicial tribu2 nal of a State competent to enter orders for sup3 port or maintenance (including a State agency

4 administering a program under a State plan ap5 proved under part D of title IV of the Social Se6 curity Act), and, for purposes of this subpara7 graph, the term ‘State’ includes the District of

8 Columbia, the Commonwealth of Puerto Rico, the

9 Virgin Islands, Guam, and American Samoa.’’.

10 (2) DEFINITION OF COURT ORDER.—Section

11 1408(a)(2) of such title is amended by inserting ‘‘or

12 a court order for the payment of child support not in13 cluded in or accompanied by such a decree or settle14 ment,’’ before ‘‘which—’’.

15 (3) PUBLIC PAYEE.—Section 1408(d) of such

16 title is amended—

17 (A) in the heading, by inserting ‘‘(OR FOR

18 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

19 (B) in paragraph (1), in the 1st sentence,

20 by inserting ‘‘(or for the benefit of such spouse

21 or former spouse to a State disbursement unit es22 tablished pursuant to section 454B of the Social

23 Security Act or other public payee designated by

24 a State, in accordance with part D of title IV of

25 the Social Security Act, as directed by court
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1 order, or as otherwise directed in accordance

2 with such part D)’’ before ‘‘in an amount suffi3 cient’’.

4 (4) RELATIONSHIP TO PART D OF TITLE IV.—

5 Section 1408 of such title is amended by adding at

6 the end the following new subsection:

7 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

8 involving an order providing for payment of child support

9 (as defined in section 459(i)(2) of the Social Security Act)

10 by a member who has never been married to the other par11 ent of the child, the provisions of this section shall not

12 apply, and the case shall be subject to the provisions of sec13 tion 459 of such Act.’’.

14 (d) EFFECTIVE DATE.—The amendments made by this

15 section shall become effective 6 months after the date of the

16 enactment of this Act.

17 SEC. 963. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS

18 OF MEMBERS OF THE ARMED FORCES.

19 (a) AVAILABILITY OF LOCATOR INFORMATION.—

20 (1) MAINTENANCE OF ADDRESS INFORMATION.—

21 The Secretary of Defense shall establish a centralized

22 personnel locator service that includes the address of

23 each member of the Armed Forces under the jurisdic24 tion of the Secretary. Upon request of the Secretary

25 of Transportation, addresses for members of the Coast
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1 Guard shall be included in the centralized personnel

2 locator service.

3 (2) TYPE OF ADDRESS.—

4 (A) RESIDENTIAL ADDRESS.—Except as

5 provided in subparagraph (B), the address for a

6 member of the Armed Forces shown in the loca7 tor service shall be the residential address of that

8 member.

9 (B) DUTY ADDRESS.—The address for a

10 member of the Armed Forces shown in the loca11 tor service shall be the duty address of that mem12 ber in the case of a member—

13 (i) who is permanently assigned over14 seas, to a vessel, or to a routinely deployable

15 unit; or

16 (ii) with respect to whom the Secretary

17 concerned makes a determination that the

18 member’s residential address should not be

19 disclosed due to national security or safety

20 concerns.

21 (3) UPDATING OF LOCATOR INFORMATION.—

22 Within 30 days after a member listed in the locator

23 service establishes a new residential address (or a new

24 duty address, in the case of a member covered by

25 paragraph (2)(B)), the Secretary concerned shall up-
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1 date the locator service to indicate the new address of

2 the member.

3 (4) AVAILABILITY OF INFORMATION.—The Sec4 retary of Defense shall make information regarding

5 the address of a member of the Armed Forces listed

6 in the locator service available, on request, to the Fed7 eral Parent Locator Service established under section

8 453 of the Social Security Act.

9 (b) FACILITATING GRANTING OF LEAVE FOR ATTEND10 ANCE AT HEARINGS.—

11 (1) REGULATIONS.—The Secretary of each mili12 tary department, and the Secretary of Transportation

13 with respect to the Coast Guard when it is not operat14 ing as a service in the Navy, shall prescribe regula15 tions to facilitate the granting of leave to a member

16 of the Armed Forces under the jurisdiction of that

17 Secretary in a case in which—

18 (A) the leave is needed for the member to at19 tend a hearing described in paragraph (2);

20 (B) the member is not serving in or with a

21 unit deployed in a contingency operation (as de22 fined in section 101 of title 10, United States

23 Code); and
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1 (C) the exigencies of military service (as de2 termined by the Secretary concerned) do not oth3 erwise require that such leave not be granted.

4 (2) COVERED HEARINGS.—Paragraph (1) ap5 plies to a hearing that is conducted by a court or

6 pursuant to an administrative process established

7 under State law, in connection with a civil action—

8 (A) to determine whether a member of the

9 Armed Forces is a natural parent of a child; or

10 (B) to determine an obligation of a member

11 of the Armed Forces to provide child support.

12 (3) DEFINITIONS.—For purposes of this sub13 section:

14 (A) The term ‘‘court’’ has the meaning

15 given that term in section 1408(a) of title 10,

16 United States Code.

17 (B) The term ‘‘child support’’ has the mean18 ing given such term in section 459(i) of the So19 cial Security Act (42 U.S.C. 659(i)).

20 (c) PAYMENT OF MILITARY RETIRED PAY IN COMPLI21 ANCE WITH CHILD SUPPORT ORDERS.—

22 (1) DATE OF CERTIFICATION OF COURT

23 ORDER.—Section 1408 of title 10, United States Code,

24 as amended by section 962(c)(4), is amended—
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1 (A) by redesignating subsections (i) and (j)

2 as subsections (j) and (k), respectively; and

3 (B) by inserting after subsection (h) the fol4 lowing new subsection:

5 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

6 the date of a certification of the authenticity or completeness

7 of a copy of a court order for child support received by the

8 Secretary concerned for the purposes of this section be recent

9 in relation to the date of receipt by the Secretary.’’.

10 (2) PAYMENTS CONSISTENT WITH ASSIGNMENTS

11 OF RIGHTS TO STATES.—Section 1408(d)(1) of such

12 title is amended by inserting after the 1st sentence the

13 following: ‘‘In the case of a spouse or former spouse

14 who assigns to a State the rights of the spouse or

15 former spouse to receive support, the Secretary con16 cerned may make the child support payments referred

17 to in the preceding sentence to that State in amounts

18 consistent with that assignment of rights.’’.

19 (3) ARREARAGES OWED BY MEMBERS OF THE

20 UNIFORMED SERVICES.—Section 1408(d) of such title

21 is amended by adding at the end the following new

22 paragraph:

23 ‘‘(6) In the case of a court order for which effective

24 service is made on the Secretary concerned on or after the

25 date of the enactment of this paragraph and which provides
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1 for payments from the disposable retired pay of a member

2 to satisfy the amount of child support set forth in the order,

3 the authority provided in paragraph (1) to make payments

4 from the disposable retired pay of a member to satisfy the

5 amount of child support set forth in a court order shall

6 apply to payment of any amount of child support arrear7 ages set forth in that order as well as to amounts of child

8 support that currently become due.’’.

9 (4) PAYROLL DEDUCTIONS.—The Secretary of

10 Defense shall begin payroll deductions within 30 days

11 after receiving notice of withholding, or for the 1st

12 pay period that begins after such 30-day period.

13 SEC. 964. VOIDING OF FRAUDULENT TRANSFERS.

14 Section 466 (42 U.S.C. 666), as amended by section

15 921, is amended by adding at the end the following new

16 subsection:

17 ‘‘(g) In order to satisfy section 454(20)(A), each State

18 must have in effect—

19 ‘‘(1)(A) the Uniform Fraudulent Conveyance Act

20 of 1981;

21 ‘‘(B) the Uniform Fraudulent Transfer Act of

22 1984; or

23 ‘‘(C) another law, specifying indicia of fraud

24 which create a prima facie case that a debtor trans25 ferred income or property to avoid payment to a child
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1 support creditor, which the Secretary finds affords

2 comparable rights to child support creditors; and

3 ‘‘(2) procedures under which, in any case in

4 which the State knows of a transfer by a child sup5 port debtor with respect to which such a prima facie

6 case is established, the State must—

7 ‘‘(A) seek to void such transfer; or

8 ‘‘(B) obtain a settlement in the best inter9 ests of the child support creditor.’’.

10 SEC. 965. WORK REQUIREMENT FOR PERSONS OWING

11 CHILD SUPPORT.

12 Section 466(a) (42 U.S.C. 666(a)), as amended by sec13 tions 901(a), 915, 917(a), and 923, is amended by adding

14 at the end the following new paragraph:

15 ‘‘(15) Procedures requiring the State, in any

16 case in which an individual owes support with re17 spect to a child receiving services under this part, to

18 seek a court order or administrative order that re19 quires the individual to—

20 ‘‘(A) pay such support in accordance with

21 a plan approved by the court; or

22 ‘‘(B) if the individual is not working and

23 is not incapacitated, participate in work activi24 ties (including, at State option, work activities
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1 as defined in section 482) as the court deems ap2 propriate.’’.

3 SEC. 966. DEFINITION OF SUPPORT ORDER.

4 Section 453 (42 U.S.C. 653) as amended by sections

5 916 and 945(b), is amended by adding at the end the follow6 ing new subsection:

7 ‘‘(o) As used in this part, the term ‘support order’

8 means a judgment, decree, or order, whether temporary,

9 final, or subject to modification, issued by a court or an

10 administrative agency of competent jurisdiction, for the

11 support and maintenance of a child, including a child who

12 has attained the age of majority under the law of the issuing

13 State, or a child and the parent with whom the child is

14 living, which provides for monetary support, health care,

15 arrearages, or reimbursement, and which may include re16 lated costs and fees, interest and penalties, income withhold17 ing, attorneys’ fees, and other relief.’’.

18 SEC. 967. REPORTING ARREARAGES TO CREDIT BUREAUS.

19 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

20 to read as follows:

21 ‘‘(7)(A) Procedures (subject to safeguards pursu22 ant to subparagraph (B)) requiring the State to re23 port periodically to consumer reporting agencies (as

24 defined in section 603(f) of the Fair Credit Reporting

25 Act (15 U.S.C. 1681a(f)) the name of any absent par-
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1 ent who is delinquent in the payment of support, and

2 the amount of overdue support owed by such parent.

3 ‘‘(B) Procedures ensuring that, in carrying out

4 subparagraph (A), information with respect to an ab5 sent parent is reported—

6 ‘‘(i) only after such parent has been af7 forded all due process required under State law,

8 including notice and a reasonable opportunity to

9 contest the accuracy of such information; and

10 ‘‘(ii) only to an entity that has furnished

11 evidence satisfactory to the State that the entity

12 is a consumer reporting agency.’’.

13 SEC. 968. LIENS.

14 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

15 to read as follows:

16 ‘‘(4) Procedures under which—

17 ‘‘(A) liens arise by operation of law against

18 real and personal property for amounts of over19 due support owed by an absent parent who re20 sides or owns property in the State; and

21 ‘‘(B) the State accords full faith and credit

22 to liens described in subparagraph (A) arising in

23 another State, without registration of the under24 lying order.’’.
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1 SEC. 969. STATE LAW AUTHORIZING SUSPENSION OF LI2 CENSES.

3 Section 466(a) (42 U.S.C. 666(a)), as amended by sec4 tions 915, 917(a), 923, and 965, is amended by adding at

5 the end the following new paragraph:

6 ‘‘(16) Procedures under which the State has (and

7 uses in appropriate cases) authority to withhold or

8 suspend, or to restrict the use of, driver’s licenses, pro9 fessional and occupational licenses, and recreational

10 licenses of individuals owing overdue support or fail11 ing, after receiving appropriate notice, to comply

12 with subpoenas or warrants relating to paternity or

13 child support proceedings.’’.

14 SEC. 970. DENIAL OF PASSPORTS FOR NONPAYMENT OF

15 CHILD SUPPORT.

16 (a) HHS CERTIFICATION PROCEDURE.—

17 (1) SECRETARIAL RESPONSIBILITY.—Section 452

18 (42 U.S.C. 652), as amended by section 945, is

19 amended by adding at the end the following new sub20 section:

21 ‘‘(k)(1) If the Secretary receives a certification by a

22 State agency in accordance with the requirements of section

23 454(31) that an individual owes arrearages of child support

24 in an amount exceeding $5,000, the Secretary shall trans25 mit such certification to the Secretary of State for action

26 (with respect to denial, revocation, or limitation of pass-
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1 ports) pursuant to section 470(b) of the Work Opportunity

2 Act of 1995.

3 ‘‘(2) The Secretary shall not be liable to an individual

4 for any action with respect to a certification by a State

5 agency under this section.’’.

6 (2) STATE CSE AGENCY RESPONSIBILITY.—Sec7 tion 454 (42 U.S.C. 654), as amended by sections

8 901(b), 904(a), 912(b), 913(a), 933, and 943(a), is

9 amended—

10 (A) by striking ‘‘and’’ at the end of para11 graph (29);

12 (B) by striking the period at the end of

13 paragraph (30) and inserting ‘‘; and’’; and

14 (C) by adding after paragraph (30) the fol15 lowing new paragraph:

16 ‘‘(31) provide that the State agency will have in

17 effect a procedure (which may be combined with the

18 procedure for tax refund offset under section 464) for

19 certifying to the Secretary, for purposes of the proce20 dure under section 452(k) (concerning denial of pass21 ports), determinations that individuals owe arrear22 ages of child support in an amount exceeding $5,000,

23 under which procedure—

24 ‘‘(A) each individual concerned is afforded

25 notice of such determination and the con-
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1 sequences thereof, and an opportunity to contest

2 the determination; and

3 ‘‘(B) the certification by the State agency is

4 furnished to the Secretary in such format, and

5 accompanied by such supporting documentation,

6 as the Secretary may require.’’.

7 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL OF

8 PASSPORTS.—

9 (1) IN GENERAL.—The Secretary of State shall,

10 upon certification by the Secretary of Health and

11 Human Services transmitted under section 452(k) of

12 the Social Security Act, refuse to issue a passport to

13 such individual, and may revoke, restrict, or limit a

14 passport issued previously to such individual.

15 (2) LIMIT ON LIABILITY.—The Secretary of State

16 shall not be liable to an individual for any action

17 with respect to a certification by a State agency

18 under this section.

19 (c) EFFECTIVE DATE.—This section and the amend20 ments made by this section shall become effective October

21 1, 1996.

22 SEC. 971. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

23 The Secretary of State is authorized to negotiate recip24 rocal agreements with foreign nations on behalf of the

25 States, territories, and possessions of the United States re-
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1 garding the international enforcement of child support obli2 gations and designating the Department of Health and

3 Human Services as the central authority for such enforce4 ment.

5 SEC. 972. DENIAL OF MEANS-TESTED FEDERAL BENEFITS

6 TO NONCUSTODIAL PARENTS WHO ARE DE7 LINQUENT IN PAYING CHILD SUPPORT.

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, a non-custodial parent who is more then 2

10 months delinquent in paying child support shall not be eli11 gible to receive any means-tested Federal benefits.

12 (b) EXCEPTION.—

13 (1) IN GENERAL.—Subsection (a) shall not apply

14 to an unemployed non-custodial parent who is more

15 then 2 months delinquent in paying child support if

16 such parent—

17 (A) enters into a schedule of repayment for

18 past due child support with the entity that is19 sued the underlying child support order; and

20 (B) meets all of the terms of repayment

21 specified in the schedule of repayment as en22 forced by the appropriate disbursing entity.

23 (2) 2-YEAR EXCLUSION.—(A) A non-custodial

24 parent who becomes delinquent in child support a sec25 ond time or any subsequent time shall not be eligible
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1 to receive any means-tested Federal benefits for a 2-

2 year period beginning on the date that such parent

3 failed to meet such terms.

4 (B) At the end of that two-year period, para5 graph (A) shall once again apply to that individual.

6 (c) MEANS-TESTED FEDERAL BENEFITS.— For pur7 poses of this section, the term ‘‘means-tested Federal bene8 fits’’ means benefits under any program of assistance, fund9 ed in whole or in part, by the Federal Government, for

10 which eligibility for benefits is based on need.

11 SEC. 973. CHILD SUPPORT ENFORCEMENT FOR INDIAN

12 TRIBES.

13 (a) CHILD SUPPORT ENFORCEMENT AGREEMENTS.—

14 Section 454 (42 U.S.C. 654), as amended by sections

15 901(b), 904(a), 912(b), 913(a), 933, 943(a), and 970(a)(2)

16 is amended—

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

18 (30);

19 (2) by striking the period at the end of para20 graph (31) and inserting ‘‘; and’’; and

21 (3) by adding after paragraph (31) the following

22 new paragraph:

23 ‘‘(32) provide that a State that receives funding

24 pursuant to section 429 and that has within its bor25 ders Indian country (as defined in section 1151 of
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1 title 18, United States Code) shall, through the State

2 administering agency, make reasonable efforts to enter

3 into cooperative agreements with an Indian tribe or

4 tribal organization (as defined in paragraphs (1) and

5 (2) of section 428(c)), if the Indian tribe or tribal or6 ganization demonstrates that such tribe or organiza7 tion has an established tribal court system or a Court

8 of Indian Offenses with the authority to establish pa9 ternity, establish and enforce support orders, and to

10 enter support orders in accordance with child support

11 guidelines established by such tribe or organization,

12 under which the State and tribe or organization shall

13 provide for the cooperative delivery of child support

14 enforcement services in Indian country and for the

15 forwarding of all funding collected pursuant to the

16 functions performed by the tribe or organization to

17 the State agency, or conversely, by the State agency

18 to the tribe or organization, which shall distribute

19 such funding in accordance with such agreement.’’.

20 (b) DIRECT FEDERAL FUNDING TO INDIAN TRIBES

21 AND TRIBAL ORGANIZATIONS.—Section 455 (42 U.S.C.

22 655) is amended by adding at the end the following new

23 subsection:

24 ‘‘(b) The Secretary may, in appropriate cases, make

25 direct payments under this part to an Indian tribe or tribal
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1 organization which has an approved child support enforce2 ment plan under this title. In determining whether such

3 payments are appropriate, the Secretary shall, at a mini4 mum, consider whether services are being provided to eligi5 ble Indian recipients by the State agency through an agree6 ment entered into pursuant to section 454(32). The Sec7 retary shall provide for an appropriate adjustment to the

8 State allotment under this section to take into account any

9 payments made under this subsection to Indian tribes or

10 tribal organizations located within such State.

11 (c) COOPERATIVE ENFORCEMENT AGREEMENTS.—

12 Paragraph (7) of section 454 (42 U.S.C. 654) is amended

13 by inserting ‘‘and Indian tribes or tribal organizations (as

14 defined in section 450(b) of title 25, United States Code)’’

15 after ‘‘law enforcement officials’’.

16 SEC. 974. FINANCIAL INSTITUTION DATA MATCHES.

17 Section 466(a) (42 U.S.C. 666(a)), as amended by sec18 tions 915, 917(a), 923, 965, 969, and 976 is amended by

19 adding at the end the following new paragraph:

20 ‘‘(18) Procedures under which the State agency

21 shall enter into agreements with financial institutions

22 doing business within the State to develop and oper23 ate a data match system, using automated data ex24 changes to the maximum extent feasible, in which

25 such financial institutions are required to provide for
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1 each calendar quarter the name, record address, social

2 security number, and other identifying information

3 for each absent parent identified by the State who

4 maintains an account at such institution and, in re5 sponse to a notice of lien or levy, to encumber or sur6 render, as the case may be, assets held by such insti7 tution on behalf of any absent parent who is subject

8 to a child support lien pursuant to paragraph (4).

9 For purposes of this paragraph, the term ‘financial

10 institution’ means Federal and State commercial sav11 ings banks, including savings and loan associations

12 and cooperative banks, Federal and State chartered

13 credit unions, benefit associations, insurance compa14 nies, safe deposit companies, money-market mutual

15 funds, and any similar entity authorized to do busi16 ness in the State, and the term ‘account’ means a de17 mand deposit account, checking or negotiable with18 drawal order account, savings account, time deposit

19 account, or money-market mutual fund account.

20 Subtitle H—Medical Support

21 SEC. 975. TECHNICAL CORRECTION TO ERISA DEFINITION

22 OF MEDICAL CHILD SUPPORT ORDER.

23 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em24 ployee Retirement Income Security Act of 1974 (29 U.S.C.

25 1169(a)(2)(B)) is amended—
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1 (1) by striking ‘‘issued by a court of competent

2 jurisdiction’’;

3 (2) by striking the period at the end of clause

4 (ii) and inserting a comma; and

5 (3) by adding, after and below clause (ii), the

6 following:

7 ‘‘if such judgment, decree, or order (I) is issued

8 by a court of competent jurisdiction or (II) is is9 sued through an administrative process estab10 lished under State law and has the force and ef11 fect of law under applicable State law.’’.

12 (b) EFFECTIVE DATE.—

13 (1) IN GENERAL.—The amendments made by

14 this section shall take effect on the date of the enact15 ment of this Act.

16 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

17 JANUARY 1, 1996.—Any amendment to a plan required

18 to be made by an amendment made by this section

19 shall not be required to be made before the 1st plan

20 year beginning on or after January 1, 1996, if—

21 (A) during the period after the date before

22 the date of the enactment of this Act and before

23 such 1st plan year, the plan is operated in ac24 cordance with the requirements of the amend25 ments made by this section; and
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1 (B) such plan amendment applies retro2 actively to the period after the date before the

3 date of the enactment of this Act and before such

4 1st plan year.

5 A plan shall not be treated as failing to be operated

6 in accordance with the provisions of the plan merely

7 because it operates in accordance with this para8 graph.

9 SEC. 976. ENFORCEMENT OF ORDERS FOR HEALTH CARE

10 COVERAGE.

11 Section 466(a) (42 U.S.C. 666(a)), as amended by sec12 tions 915, 917(a), 923, 965, and 969, is amended by adding

13 at the end the following new paragraph:

14 ‘‘(17) Procedures under which all child support

15 orders enforced under this part shall include a provi16 sion for the health care coverage of the child, and in

17 the case in which an absent parent provides such cov18 erage and changes employment, and the new employer

19 provides health care coverage, the State agency shall

20 transfer notice of the provision to the employer, which

21 notice shall operate to enroll the child in the absent

22 parent’s health plan, unless the absent parent contests

23 the notice.’’.
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1 SEC. 977. ENFORCEMENT OF ORDERS AGAINST PATERNAL

2 GRANDPARENTS IN CASES OF MINOR PAR3 ENTS.

4 Section 466(a) (42 U.S.C. 666(a)), as amended by sec5 tions 915, 917(a), 923, 965, 969, and 976, is amended by

6 adding at the end the following new paragraph:

7 ‘‘(17) Procedures under which any child support

8 order enforced under this part with respect to a child

9 of minor parents, if the mother of such child is receiv10 ing assistance under the State grant under part A,

11 shall be enforceable, jointly and severally, against the

12 paternal grandparents of such child.’’.

13 Subtitle I—Enhancing Responsibil14 ity and Opportunity for

15 Nonresidential Parents

16 SEC. 981. GRANTS TO STATES FOR ACCESS AND VISITATION

17 PROGRAMS.

18 Part D of title IV (42 U.S.C. 651–669) is amended

19 by adding at the end the following new section:

20 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA21 TION PROGRAMS.

22 ‘‘(a) IN GENERAL.—The Administration for Children

23 and Families shall make grants under this section to enable

24 States to establish and administer programs to support and

25 facilitate absent parents’ access to and visitation of their

26 children, by means of activities including mediation (both
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1 voluntary and mandatory), counseling, education, develop2 ment of parenting plans, visitation enforcement (including

3 monitoring, supervision and neutral drop-off and pickup),

4 and development of guidelines for visitation and alternative

5 custody arrangements.

6 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

7 to be made to a State under this section for a fiscal year

8 shall be an amount equal to the lesser of—

9 ‘‘(1) 90 percent of State expenditures during the

10 fiscal year for activities described in subsection (a); or

11 ‘‘(2) the allotment of the State under subsection

12 (c) for the fiscal year.

13 ‘‘(c) ALLOTMENTS TO STATES.—

14 ‘‘(1) IN GENERAL.—The allotment of a State for

15 a fiscal year is the amount that bears the same ratio

16 to the amount appropriated for grants under this sec17 tion for the fiscal year as the number of children in

18 the State living with only 1 biological parent bears

19 to the total number of such children in all States.

20 ‘‘(2) MINIMUM ALLOTMENT.—The Administra21 tion for Children and Families shall adjust allotments

22 to States under paragraph (1) as necessary to ensure

23 that no State is allotted less than—

24 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

25 or
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1 ‘‘(B) $100,000 for any succeeding fiscal

2 year.

3 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

4 FOR SIMILAR ACTIVITIES.—A State to which a grant is

5 made under this section may not use the grant to supplant

6 expenditures by the State for activities specified in sub7 section (a), but shall use the grant to supplement such ex8 penditures at a level at least equal to the level of such ex9 penditures for fiscal year 1995.

10 ‘‘(e) STATE ADMINISTRATION.—Each State to which a

11 grant is made under this section—

12 ‘‘(1) may administer State programs funded

13 with the grant, directly or through grants to or con14 tracts with courts, local public agencies, or nonprofit

15 private entities;

16 ‘‘(2) shall not be required to operate such pro17 grams on a statewide basis; and

18 ‘‘(3) shall monitor, evaluate, and report on such

19 programs in accordance with regulations prescribed

20 by the Secretary.’’.

21 Subtitle J—Effect of Enactment

22 SEC. 991. EFFECTIVE DATES.

23 (a) IN GENERAL.—Except as otherwise specifically

24 provided (but subject to subsections (b) and (c))—
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1 (1) the provisions of this title requiring the en2 actment or amendment of State laws under section

3 466 of the Social Security Act, or revision of State

4 plans under section 454 of such Act, shall be effective

5 with respect to periods beginning on and after Octo6 ber 1, 1996; and

7 (2) all other provisions of this title shall become

8 effective upon the date of the enactment of this Act.

9 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

10 provisions of this title shall become effective with respect

11 to a State on the later of—

12 (1) the date specified in this title, or

13 (2) the effective date of laws enacted by the legis14 lature of such State implementing such provisions,

15 but in no event later than the 1st day of the 1st calendar

16 quarter beginning after the close of the 1st regular session

17 of the State legislature that begins after the date of the en18 actment of this Act. For purposes of the previous sentence,

19 in the case of a State that has a 2-year legislative session,

20 each year of such session shall be deemed to be a separate

21 regular session of the State legislature.

22 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

23 AMENDMENT.—A State shall not be found out of compliance

24 with any requirement enacted by this title if the State is
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1 unable to so comply without amending the State constitu2 tion until the earlier of—

3 (1) 1 year after the effective date of the necessary

4 State constitutional amendment; or

5 (2) 5 years after the date of the enactment of this

6 title.

7 TITLE X—REFORM OF PUBLIC

8 HOUSING

9 SEC. 1001. CEILING RENTS.

10 Section 3(a)(2) of the United States Housing Act of

11 1937 (42 U.S.C. 1437a(a)(2)) is amended to read as follows:

12 ‘‘(2) ESTABLISHMENT OF CEILING RENTS.—

13 ‘‘(A) IN GENERAL.—A public housing agency

14 may provide that each family residing in a public

15 housing project shall pay monthly rent in an amount

16 established by such agency in accordance with this

17 paragraph.

18 ‘‘(B) LIMITATIONS ON AMOUNT.—The rental

19 amount established under subparagraph (A)—

20 ‘‘(i) shall reflect the reasonable rental value

21 of the dwelling unit in which the family resides,

22 as compared with similar types and sizes of

23 dwelling units in the market area in which the

24 public housing project is located;
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1 ‘‘(ii) shall be greater than or equal to the

2 monthly cost to operate the housing (including

3 any replacement reserves at the discretion of the

4 public housing agency); and

5 ‘‘(iii) shall not exceed the amount payable

6 as rent by such family under paragraph (1).’’.

7 SEC. 1002. DEFINITION OF ADJUSTED INCOME FOR PUBLIC

8 HOUSING.

9 (a) DEFINITION OF ADJUSTED INCOME.—Section

10 3(b)(5) of the United States Housing Act of 1937 (42 U.S.C.

11 1437a(b)(5)) is amended to read as follows:

12 ‘‘(5) The term ‘adjusted income’ means the in13 come that remains after excluding—

14 ‘‘(A) $480 for each member of the family re15 siding in the household (other than the head of

16 the household or spouse)—

17 ‘‘(i) who is under 18 years of age; or

18 ‘‘(ii) who is—

19 ‘‘(I) 18 years of age or older; and

20 ‘‘(II) a person with disabilities or

21 a full-time student;

22 ‘‘(B) $400 for an elderly or disabled family;

23 ‘‘(C) the amount by which the aggregate

24 of—
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1 ‘‘(i) medical expenses for an elderly or

2 disabled family; and

3 ‘‘(ii) reasonable attendant care and

4 auxiliary apparatus expenses for each fam5 ily member who is a person with disabil6 ities, to the extent necessary to enable any

7 member of the family (including a member

8 who is a person with disabilities) to be em9 ployed;

10 exceeds 3 percent of the annual income of the

11 family;

12 ‘‘(D) child care expenses, to the extent nec13 essary to enable another member of the family to

14 be employed or to further his or her education;

15 ‘‘(E) excessive travel expenses, not to exceed

16 $25 per family per week, for employment- or

17 education-related travel, except that this sub18 paragraph shall apply only to a family assisted

19 by an Indian housing authority; and

20 ‘‘(F) subject to the requirements of sub21 section (e), for public housing, adjustments to

22 earned income established by the public housing

23 agency, not to exceed 20 percent of the earned in24 come of the family.’’.
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1 (b) ADJUSTMENTS TO DEFINITION OF EARNED IN2 COME.—Section 3 of the United States Housing Act of 1937

3 (42 U.S.C. 1437a) is amended—

4 (1) in the first undesignated paragraph imme5 diately following subsection (c)(3) (as added by sec6 tion 515(b) of the Cranston-Gonzalez National Afford7 able Housing Act), by striking ‘‘The earnings of’’ and

8 inserting the following:

9 ‘‘(d) EXCLUSION OF CERTAIN EARNINGS.—The earn10 ings of’’; and

11 (2) by adding at the end the following new sub12 section:

13 ‘‘(e) ADJUSTMENTS TO EARNED INCOME.—If a public

14 housing agency establishes any adjustment to income pursu15 ant to subsection (b)(5)(F), the Secretary—

16 ‘‘(1) shall not take into account any reduction of

17 the per dwelling unit rental income of the public

18 housing agency resulting from that adjustment in cal19 culating the contributions under section 9 for the pub20 lic housing agency for the operation of the public

21 housing; and

22 ‘‘(2) shall not reduce the level of operating sub23 sidies payable to the public housing agency due to an

24 increase in per dwelling unit rental income that re25 sults from a higher level of income earned by any
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1 residents whose adjusted incomes are calculated tak2 ing into account that adjustment to income, until the

3 public housing agency has recovered a sum equal to

4 the cumulative difference between—

5 ‘‘(A) the operating subsidies actually re6 ceived by the agency; and

7 ‘‘(B) the operating subsidies that the public

8 housing agency would have received if paragraph

9 (1) was not applied.’’.

10 (c) REPORT.—Not later than 3 years after the date of

11 enactment of this Act, the Comptroller General of the United

12 States shall submit a report to the Congress describing the

13 fiscal and societal impact of the amendment made by sub14 section (b)(2).

15 (d) REPEAL OF CERTAIN PROVISIONS.—

16 (1) MAXIMUM ANNUAL LIMITATION ON RENT IN17 CREASES RESULTING FROM EMPLOYMENT.—Section

18 957 of the Cranston-Gonzalez National Affordable

19 Housing Act (42 U.S.C. 12714) is repealed effective

20 November 28, 1990.

21 (2) ECONOMIC INDEPENDENCE.—Section 923 of

22 the Housing and Community Development Act of

23 1992 (42 U.S.C. 12714 note) is repealed effective Oc24 tober 28, 1992.
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1 SEC. 1003. FAILURE TO COMPLY WITH OTHER WELFARE

2 AND PUBLIC ASSISTANCE PROGRAMS.

3 Title I of the United States Housing Act of 1937 (42

4 U.S.C. 1437 et seq.) is amended by adding at the end the

5 following new section:

6 ‘‘SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE AND

7 PUBLIC ASSISTANCE PROGRAMS.

8 ‘‘(a) IN GENERAL.—If the benefits of a family are re9 duced under a Federal, State, or local law relating to wel10 fare or a public assistance program for the failure of any

11 member of the family to perform an action required under

12 the law or program, the family may not, for the duration

13 of the reduction, receive any increased assistance under this

14 Act as the result of a decrease in the income of the family

15 to the extent that the decrease in income is the result of

16 the benefits reduction.

17 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply in

18 any case in which the benefits of a family are reduced be19 cause the welfare or public assistance program to which the

20 Federal, State, or local law relates limits the period during

21 which benefits may be provided under the program.’’.

22 SEC. 1004. APPLICABILITY TO INDIAN HOUSING.

23 (a) IN GENERAL.—In accordance with section

24 201(b)(2) of the United States Housing Act of 1937, the

25 amendments made by this title shall apply to public hous-
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1 ing developed or operated pursuant to a contract between

2 the Secretary and an Indian housing authority.

3 (b) DEFINITIONS.—For purposes of this section—

4 (1) the term ‘‘Indian housing authority’’ has the

5 same meaning as in section 3(b) of the United States

6 Housing Act of 1937;

7 (2) the term ‘‘public housing’’ has the same

8 meaning as in section 3(b) of the United States Hous9 ing Act of 1937; and

10 (3) the term ‘‘Secretary’’ means the Secretary of

11 Housing and Urban Development.

12 SEC. 1005. IMPLEMENTATION.

13 The Secretary shall issue such regulations as may be

14 necessary to carry out this title and the amendments made

15 by this title.

16 SEC. 1006. DEMONSTRATION PROJECT FOR ELIMINATION

17 OF TAKE-ONE-TAKE-ALL REQUIREMENT.

18 In order to demonstrate the effects of eliminating the

19 requirement under section 8(t) of the United States Housing

20 Act of 1937, notwithstanding any other provision of law,

21 beginning on the date of enactment of this Act, section 8(t)

22 of the United States Housing Act of 1937 shall not apply

23 with respect to the multifamily housing project (as such

24 term is defined in section 8(t)(2) of the United States Hous-
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1 ing Act of 1937) consisting of the dwelling units located

2 at 2401–2479 Sommerset Circle, in Madison, Wisconsin.

3 SEC. 1007. FRAUD UNDER MEANS-TESTED WELFARE AND

4 PUBLIC ASSISTANCE PROGRAMS.

5 (a) IN GENERAL.—If an individual’s benefits under a

6 Federal, State, or local law relating to a means-tested wel7 fare or a public assistance program are reduced because of

8 an act of fraud by the individual under the law or program,

9 the individual may not, for the duration of the reduction,

10 receive an increased benefit under any other means-tested

11 welfare or public assistance program for which Federal

12 funds are appropriated as a result of a decrease in the in13 come of the individual (determined under the applicable

14 program) attributable to such reduction.

15 (b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR

16 WHICH FEDERAL FUNDS ARE APPROPRIATED.—For pur17 poses of subsection (a), the term ‘‘means-tested welfare or

18 public assistance program for which Federal funds are ap19 propriated’’ shall include the food stamp program under the

20 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any pro21 gram of public or assisted housing under title I of the Unit22 ed States Housing Act of 1937 (42 U.S.C. 1437 et seq.),

23 and State programs funded under part A of title IV of the

24 Social Security Act (42 U.S.C. 601 et seq.).
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1 SEC. 1008. EFFECTIVE DATE.

2 This title and the amendments made by this title shall

3 take effect on the date of enactment of this Act.

4 TITLE XI—CHILD ABUSE

5 PREVENTION AND TREATMENT

6 SEC. 1101. SHORT TITLE.

7 This title may be cited as the ‘‘Child Abuse Prevention

8 and Treatment Act Amendments of 1995’’.

9 Subtitle A—General Program

10 SEC. 1111. REFERENCE.

11 Except as otherwise expressly provided, whenever in

12 this subtitle an amendment or repeal is expressed in terms

13 of an amendment to, or repeal of, a section or other provi14 sion, the reference shall be considered to be made to a section

15 or other provision of the Child Abuse Prevention and Treat16 ment Act (42 U.S.C. 5101 et seq.).

17 SEC. 1112. FINDINGS.

18 Section 2 (42 U.S.C. 5101 note) is amended—

19 (1) in paragraph (1), the read as follows:

20 ‘‘(1) each year, close to 1,000,000 American chil21 dren are victims of abuse and neglect;’’;

22 (2) in paragraph (3)(C), by inserting ‘‘assess23 ment,’’ after ‘‘prevention,’’;

24 (3) in paragraph (4)—

25 (A) by striking ‘‘tens of’’; and
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1 (B) by striking ‘‘direct’’ and all that follows

2 through the semicolon and inserting ‘‘tangible ex3 penditures, as well as significant intangible

4 costs;’’;

5 (4) in paragraph (7), by striking ‘‘remedy the

6 causes of’’ and inserting ‘‘prevent’’;

7 (5) in paragraph (8), by inserting ‘‘safety,’’ after

8 ‘‘fosters the health,’’;

9 (6) in paragraph (10)—

10 (A) by striking ‘‘ensure that every commu11 nity in the United States has’’ and inserting

12 ‘‘assist States and communities with’’; and

13 (B) by inserting ‘‘and family’’ after ‘‘com14 prehensive child’’; and

15 (7) in paragraph (11)—

16 (A) by striking ‘‘child protection’’ each

17 place that such appears and inserting ‘‘child and

18 family protection’’; and

19 (B) in subparagraph (D), by striking ‘‘suf20 ficient’’.

21 SEC. 1113. OFFICE OF CHILD ABUSE AND NEGLECT.

22 Section 101 (42 U.S.C.5101) is amended to read as

23 follows:
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1 ‘‘SEC. 101. OFFICE OF CHILD ABUSE AND NEGLECT.

2 ‘‘(a) ESTABLISHMENT.—The Secretary of Health and

3 Human Services may establish an office to be known as

4 the Office on Child Abuse and Neglect.

5 ‘‘(b) PURPOSE.—The purpose of the Office established

6 under subsection (a) shall be to execute and coordinate the

7 functions and activities of this Act. In the event that such

8 functions and activities are performed by another entity or

9 entities within the Department of Health and Human Serv10 ices, the Secretary shall ensure that such functions and ac11 tivities are executed with the necessary expertise and in a

12 fully coordinated manner involving regular

13 intradepartmental and interdepartmental consultation

14 with all agencies involved in child abuse and neglect activi15 ties.’’.

16 SEC. 1114. ADVISORY BOARD ON CHILD ABUSE AND NE17 GLECT.

18 Section 102 (42 U.S.C.5102) is amended to read as

19 follows:

20 ‘‘SEC. 102. ADVISORY BOARD ON CHILD ABUSE AND NE21 GLECT.

22 ‘‘(a) APPOINTMENT.—The Secretary may appoint an

23 advisory board to make recommendations to the Secretary

24 and to the appropriate committees of Congress concerning

25 specific issues relating to child abuse and neglect.
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1 ‘‘(b) SOLICITATION OF NOMINATIONS.—The Secretary

2 shall publish a notice in the Federal Register soliciting

3 nominations for the appointment of members of the advi4 sory board under subsection (a).

5 ‘‘(c) COMPOSITION.—In establishing the board under

6 subsection (a), the Secretary shall appoint members from

7 the general public who are individuals knowledgeable in

8 child abuse and neglect prevention, intervention, treatment,

9 or research, and with due consideration to representation

10 of ethnic or racial minorities and diverse geographic areas,

11 and who represent—

12 ‘‘(1) law (including the judiciary);

13 ‘‘(2) psychology (including child development);

14 ‘‘(3) social services (including child protective

15 services);

16 ‘‘(4) medicine (including pediatrics);

17 ‘‘(5) State and local government;

18 ‘‘(6) organizations providing services to disabled

19 persons;

20 ‘‘(7) organizations providing services to adoles21 cents;

22 ‘‘(8) teachers;

23 ‘‘(9) parent self-help organizations;

24 ‘‘(10) parents’ groups;

25 ‘‘(11) voluntary groups;
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1 ‘‘(12) family rights groups; and

2 ‘‘(13) children’s rights advocates.

3 ‘‘(d) VACANCIES.—Any vacancy in the membership of

4 the board shall be filled in the same manner in which the

5 original appointment was made.

6 ‘‘(e) ELECTION OF OFFICERS.—The board shall elect

7 a chairperson and vice-chairperson at its first meeting from

8 among the members of the board.

9 ‘‘(f) DUTIES.—Not later than 1 year after the estab10 lishment of the board under subsection (a), the board shall

11 submit to the Secretary and the appropriate committees of

12 Congress a report, or interim report, containing—

13 ‘‘(1) recommendations on coordinating Federal,

14 State, and local child abuse and neglect activities

15 with similar activities at the Federal, State, and local

16 level pertaining to family violence prevention;

17 ‘‘(2) specific modifications needed in Federal

18 and State laws and programs to reduce the number

19 of unfounded or unsubstantiated reports of child

20 abuse or neglect while enhancing the ability to iden21 tify and substantiate legitimate cases of abuse or ne22 glect which place a child in danger; and

23 ‘‘(3) recommendations for modifications needed

24 to facilitate coordinated national data collection with

25 respect to child protection and child welfare.’’.
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1 SEC. 1115. REPEAL OF INTERAGENCY TASK FORCE.

2 Section 103 (42 U.S.C.5103) is repealed.

3 SEC. 1116. NATIONAL CLEARINGHOUSE FOR INFORMATION

4 RELATING TO CHILD ABUSE.

5 Section 104 (42 U.S.C.5104) is amended—

6 (1) in subsection (a), to read as follows:

7 ‘‘(a) ESTABLISHMENT.—The Secretary shall through

8 the Department, or by one or more contracts of not less than

9 3 years duration let through a competition, establish a na10 tional clearinghouse for information relating to child

11 abuse.’’;

12 (2) in subsection (b)—

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

14 by striking ‘‘Director’’ and inserting ‘‘Sec15 retary’’;

16 (B) in paragraph (1)—

17 (i) by inserting ‘‘assessment,’’ after

18 ‘‘prevention,’’; and

19 (ii) by striking ‘‘, including’’ and all

20 that follows through ‘‘105(b)’’ and inserting

21 ‘‘and’’;

22 (C) in paragraph (2)—

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

24 ‘‘general population’’ and inserting ‘‘United

25 States’’;
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1 (ii) in subparagraph (B), by adding

2 ‘‘and’’ at the end thereof;

3 (iii) in subparagraph (C), by striking

4 ‘‘; and’’ at the end thereof and inserting a

5 period; and

6 (iv) by striking subparagraph (D); and

7 (D) by striking paragraph (3); and

8 (3) in subsection (c)—

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

10 by striking ‘‘Director’’ and inserting ‘‘Sec11 retary’’;

12 (B) in paragraph (2), by striking ‘‘that is

13 represented on the task force’’ and inserting ‘‘in14 volved with child abuse and neglect and mecha15 nisms for the sharing of such information among

16 other Federal agencies and clearinghouses’’;

17 (C) in paragraph (3), by striking ‘‘State,

18 regional’’ and all that follows and inserting the

19 following: ‘‘Federal, State, regional, and local

20 child welfare data systems which shall include:

21 ‘‘(A) standardized data on false, unfounded,

22 unsubstantiated, and substantiated reports; and

23 ‘‘(B) information on the number of deaths

24 due to child abuse and neglect;’’;
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1 (D) by redesignating paragraph (4) as

2 paragraph (6); and

3 (E) by inserting after paragraph (3), the

4 following new paragraphs:

5 ‘‘(4) through a national data collection and

6 analysis program and in consultation with appro7 priate State and local agencies and experts in the

8 field, collect, compile, and make available State child

9 abuse and neglect reporting information which, to the

10 extent practical, shall be universal and case specific,

11 and integrated with other case-based foster care and

12 adoption data collected by the Secretary;

13 ‘‘(5) compile, analyze, and publish a summary of

14 the research conducted under section 105(a); and’’.

15 SEC. 1117. RESEARCH, EVALUATION AND ASSISTANCE AC16 TIVITIES.

17 (a) RESEARCH.—Section 105(a) (42 (42 U.S.C.

18 5105(a)) is amended—

19 (1) in the section heading, by striking ‘‘OF THE

20 NATIONAL CENTER ON CHILD ABUSE AND

21 NEGLECT’’;

22 (2) in paragraph (1)—

23 (A) in the matter preceding subparagraph

24 (A), by striking ‘‘, through the Center, conduct

25 research on’’ and inserting ‘‘, in consultation
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1 with other Federal agencies and recognized ex2 perts in the field, carry out a continuing inter3 disciplinary program of research that is designed

4 to provide information needed to better protect

5 children from abuse or neglect and to improve

6 the well-being of abused or neglected children,

7 with at least a portion of such research being

8 field initiated. Such research program may focus

9 on’’;

10 (B) by redesignating subparagraphs (A)

11 through (C) as subparagraph (B) through (D),

12 respectively;

13 (C) by inserting before subparagraph (B)

14 (as so redesignated) the following new subpara15 graph:

16 ‘‘(A) the nature and scope of child abuse

17 and neglect;’’;

18 (D) in subparagraph (B) (as so redesig19 nated), to read as follows:

20 ‘‘(B) causes, prevention, assessment, identi21 fication, treatment, cultural and socio-economic

22 distinctions, and the consequences of child abuse

23 and neglect;’’;

24 (E) in subparagraph (D) (as so redesig25 nated)—
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1 (i) by striking clause (ii); and

2 (ii) in clause (iii), to read as follows:

3 ‘‘(ii) the incidence of substantiated and

4 unsubstantiated reported child abuse cases;

5 ‘‘(iii) the number of substantiated cases

6 that result in a judicial finding of child

7 abuse or neglect or related criminal court

8 convictions;

9 ‘‘(iv) the extent to which the number of

10 unsubstantiated, unfounded and false re11 ported cases of child abuse or neglect have

12 contributed to the inability of a State to re13 spond effectively to serious cases of child

14 abuse or neglect;

15 ‘‘(v) the extent to which the lack of ade16 quate resources and the lack of adequate

17 training of reporters have contributed to the

18 inability of a State to respond effectively to

19 serious cases of child abuse and neglect;

20 ‘‘(vi) the number of unsubstantiated,

21 false, or unfounded reports that have re22 sulted in a child being placed in substitute

23 care, and the duration of such placement;
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1 ‘‘(vii) the extent to which unsubstan2 tiated reports return as more serious cases

3 of child abuse or neglect;

4 ‘‘(viii) the incidence and prevalence of

5 physical, sexual, and emotional abuse and

6 physical and emotional neglect in substitute

7 care; and

8 ‘‘(ix) the incidence and outcomes of

9 abuse allegations reported within the con10 text of divorce, custody, or other family

11 court proceedings, and the interaction be12 tween this venue and the child protective

13 services system.’’; and

14 (3) in paragraph (2)—

15 (A) in subparagraph (A)—

16 (i) by striking ‘‘and demonstrations’’;

17 and

18 (ii) by striking ‘‘paragraph (1)(A) and

19 activities under section 106’’ and inserting

20 ‘‘paragraph (1)’’; and

21 (B) in subparagraph (B), by striking ‘‘and

22 demonstration’’.

23 (b) REPEAL.—Subsection (b) of section 105 (42 U.S.C.

24 5105(b)) is repealed.
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1 (c) TECHNICAL ASSISTANCE.—Section 105(c) (42

2 U.S.C. 5105(c)) is amended—

3 (1) by striking ‘‘The Secretary’’ and inserting:

4 ‘‘(1) IN GENERAL.—The Secretary’’;

5 (2) by striking ‘‘, through the Center,’’;

6 (3) by inserting ‘‘State and local’’ before ‘‘public

7 and nonprofit’’;

8 (4) by inserting ‘‘assessment,’’ before ‘‘identifica9 tion’’; and

10 (5) by adding at the end thereof the following

11 new paragraphs:

12 ‘‘(2) EVALUATION.—Such technical assistance

13 may include an evaluation or identification of—

14 ‘‘(A) various methods and procedures for the

15 investigation, assessment, and prosecution of

16 child physical and sexual abuse cases;

17 ‘‘(B) ways to mitigate psychological trauma

18 to the child victim; and

19 ‘‘(C) effective programs carried out by the

20 States under titles I and II.

21 ‘‘(3) DISSEMINATION.—The Secretary may pro22 vide for and disseminate information relating to var23 ious training resources available at the State and

24 local level to—
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1 ‘‘(A) individuals who are engaged, or who

2 intend to engage, in the prevention, identifica3 tion, and treatment of child abuse and neglect;

4 and

5 ‘‘(B) appropriate State and local officials to

6 assist in training law enforcement, legal, judi7 cial, medical, mental health, education, and

8 child welfare personnel in appropriate methods

9 of interacting during investigative, administra10 tive, and judicial proceedings with children who

11 have been subjected to abuse.’’.

12 (d) GRANTS AND CONTRACTS.—Section 105(d)(2) (42

13 U.S.C. 5105(d)(2)) is amended by striking the second sen14 tence.

15 (e) PEER REVIEW.—Section 105(e) (42 U.S.C.

16 5105(e)) is amended—

17 (1) in paragraph (1)—

18 (A) in subparagraph (A)—

19 (i) by striking ‘‘establish a formal’’

20 and inserting ‘‘, in consultation with ex21 perts in the field and other federal agencies,

22 establish a formal, rigorous, and meritori23 ous’’;

24 (ii) by striking ‘‘and contracts’’; and
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1 (iii) by adding at the end thereof the

2 following new sentence: ‘‘The purpose of this

3 process is to enhance the quality and useful4 ness of research in the field of child abuse

5 and neglect.’’; and

6 (B) in subparagraph (B)—

7 (i) by striking ‘‘Office of Human De8 velopment’’ and inserting ‘‘Administration

9 for Children and Families’’; and

10 (ii) by adding at the end thereof the

11 following new sentence: ‘‘The Secretary shall

12 ensure that the peer review panel utilizes

13 scientifically valid review criteria and scor14 ing guidelines for review committees.’’; and

15 (2) in paragraph (2)—

16 (A) in the matter preceding subparagraph

17 (A), by striking ‘‘, contract, or other financial

18 assistance’’; and

19 (B) by adding at the end thereof the follow20 ing flush sentence:

21 ‘‘The Secretary shall award grants under this section

22 on the basis of competitive review.’’.

23 SEC. 1118. GRANTS FOR DEMONSTRATION PROGRAMS.

24 Section 106 (42 U.S.C. 5106) is amended—
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1 (1) in the section heading, by striking ‘‘OR

2 SERVICE’’;

3 (2) in subsection (a), to read as follows:

4 ‘‘(a) DEMONSTRATION PROGRAMS AND PROJECTS.—

5 The Secretary may make grants to, and enter into contracts

6 with, public agencies or nonprofit private agencies or orga7 nizations (or combinations of such agencies or organiza8 tions) for time limited, demonstration programs and

9 projects for the following purposes:

10 ‘‘(1) TRAINING PROGRAMS.—The Secretary may

11 award grants to public or private non-profit organi12 zations under this section—

13 ‘‘(A) for the training of professional and

14 paraprofessional personnel in the fields of medi15 cine, law, education, social work, and other rel16 evant fields who are engaged in, or intend to

17 work in, the field of prevention, identification,

18 and treatment of child abuse and neglect, includ19 ing the links between domestic violence and child

20 abuse;

21 ‘‘(B) to provide culturally specific instruc22 tion in methods of protecting children from child

23 abuse and neglect to children and to persons re24 sponsible for the welfare of children, including
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1 parents of and persons who work with children

2 with disabilities;

3 ‘‘(C) to improve the recruitment, selection,

4 and training of volunteers serving in private

5 and public nonprofit children, youth and family

6 service organizations in order to prevent child

7 abuse and neglect through collaborative analysis

8 of current recruitment, selection, and training

9 programs and development of model programs

10 for dissemination and replication nationally;

11 and

12 ‘‘(D) for the establishment of resource cen13 ters for the purpose of providing information

14 and training to professionals working in the

15 field of child abuse and neglect.

16 ‘‘(2) MUTUAL SUPPORT PROGRAMS.—The Sec17 retary may award grants to private non-profit orga18 nizations (such as Parents Anonymous) to establish

19 or maintain a national network of mutual support

20 and self-help programs as a means of strengthening

21 families in partnership with their communities.

22 ‘‘(3) OTHER INNOVATIVE PROGRAMS AND

23 PROJECTS.—

24 ‘‘(A) IN GENERAL.—The Secretary may

25 award grants to public agencies that demonstrate
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1 innovation in responding to reports of child

2 abuse and neglect including programs of collabo3 rative partnerships between the State child pro4 tective service agency, community social service

5 agencies and family support programs, schools,

6 churches and synagogues, and other community

7 agencies to allow for the establishment of a triage

8 system that—

9 ‘‘(i) accepts, screens and assesses re10 ports received to determine which such re11 ports require an intensive intervention and

12 which require voluntary referral to another

13 agency, program or project;

14 ‘‘(ii) provides, either directly or

15 through referral, a variety of community16 linked services to assist families in prevent17 ing child abuse and neglect; and

18 ‘‘(iii) provides further investigation

19 and intensive intervention where the child’s

20 safety is in jeopardy.

21 ‘‘(B) KINSHIP CARE.—The Secretary may

22 award grants to public entities to assist such en23 tities in developing or implementing procedures

24 using adult relatives as the preferred placement

25 for children removed from their home, where such
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1 relatives are determined to be capable of provid2 ing a safe nurturing environment for the child or

3 where such relatives comply with the State child

4 protection standards.

5 ‘‘(C) VISITATION CENTERS.—The Secretary

6 may award grants to public or private nonprofit

7 entities to assist such entities in the establish8 ment or operation of supervised visitation cen9 ters where there is documented, highly suspected,

10 or elevated risk of child sexual, physical, or emo11 tional abuse where, due to domestic violence,

12 there is an ongoing risk of harm to a parent or

13 child.’’;

14 (3) in subsection (c), by striking paragraphs (1)

15 and (2); and

16 (4) by adding at the end thereof the following

17 new subsection:

18 ‘‘(d) EVALUATION.—In making grants for demonstra19 tion projects under this section, the Secretary shall require

20 all such projects to be evaluated for their effectiveness.

21 Funding for such evaluations shall be provided either as

22 a stated percentage of a demonstration grant or as a sepa23 rate grant entered into by the Secretary for the purpose of

24 evaluating a particular demonstration project or group of

25 projects.’’.
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1 SEC. 1119. STATE GRANTS FOR PREVENTION AND TREAT2 MENT PROGRAMS.

3 Section 107 (42 U.S.C. 5106a) is amended to read as

4 follows:

5 ‘‘SEC. 107. GRANTS TO STATES FOR CHILD ABUSE AND NE6 GLECT PREVENTION AND TREATMENT PRO7 GRAMS.

8 ‘‘(a) DEVELOPMENT AND OPERATION GRANTS.—The

9 Secretary shall make grants to the States, based on the pop10 ulation of children under the age of 18 in each State that

11 applies for a grant under this section, for purposes of assist12 ing the States in improving the child protective service sys13 tem of each such State in—

14 ‘‘(1) the intake, assessment, screening, and inves15 tigation of reports of abuse and neglect;

16 ‘‘(2)(A) creating and improving the use of multi17 disciplinary teams and interagency protocols to en18 hance investigations; and

19 ‘‘(B) improving legal preparation and represen20 tation, including—

21 ‘‘(i) procedures for appealing and respond22 ing to appeals of substantiated reports of abuse

23 and neglect; and

24 ‘‘(ii) provisions for the appointment of a

25 guardian ad litem.
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1 ‘‘(3) case management and delivery of services

2 provided to children and their families;

3 ‘‘(4) enhancing the general child protective sys4 tem by improving risk and safety assessment tools

5 and protocols, automation systems that support the

6 program and track reports of child abuse and neglect

7 from intake through final disposition and informa8 tion referral systems;

9 ‘‘(5) developing, strengthening, and facilitating

10 training opportunities and requirements for individ11 uals overseeing and providing services to children and

12 their families through the child protection system;

13 ‘‘(6) developing and facilitating training proto14 cols for individuals mandated to report child abuse or

15 neglect;

16 ‘‘(7) developing, strengthening, and supporting

17 child abuse and neglect prevention, treatment, and re18 search programs in the public and private sectors;

19 ‘‘(8) developing, implementing, or operating—

20 ‘‘(A) information and education programs

21 or training programs designed to improve the

22 provision of services to disabled infants with life23 threatening conditions for—

24 ‘‘(i) professional and paraprofessional

25 personnel concerned with the welfare of dis-
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1 abled infants with life-threatening condi2 tions, including personnel employed in child

3 protective services programs and health-care

4 facilities; and

5 ‘‘(ii) the parents of such infants; and

6 ‘‘(B) programs to assist in obtaining or co7 ordinating necessary services for families of dis8 abled infants with life-threatening conditions,

9 including—

10 ‘‘(i) existing social and health services;

11 ‘‘(ii) financial assistance; and

12 ‘‘(iii) services necessary to facilitate

13 adoptive placement of any such infants who

14 have been relinquished for adoption; or

15 ‘‘(9) developing and enhancing the capacity of

16 community-based programs to integrate shared lead17 ership strategies between parents and professionals to

18 prevent and treat child abuse and neglect at the

19 neighborhood level.

20 ‘‘(b) ELIGIBILITY REQUIREMENTS.—In order for a

21 State to qualify for a grant under subsection (a), such State

22 shall provide an assurance or certification, signed by the

23 chief executive officer of the State, that the State—
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1 ‘‘(1) has in effect and operation a State law or

2 Statewide program relating to child abuse and neglect

3 which ensures—

4 ‘‘(A) provisions or procedures for the report5 ing of known and suspected instances of child

6 abuse and neglect;

7 ‘‘(B) procedures for the immediate screen8 ing, safety assessment, and prompt investigation

9 of such reports;

10 ‘‘(C) procedures for immediate steps to be

11 taken to ensure and protect the safety of the

12 abused or neglected child and of any other child

13 under the same care who may also be in danger

14 of abuse or neglect;

15 ‘‘(D) provisions for immunity from prosecu16 tion under State and local laws and regulations

17 for individuals making good faith reports of sus18 pected or known instances of child abuse or ne19 glect;

20 ‘‘(E) methods to preserve the confidentiality

21 of all records in order to protect the rights of the

22 child and of the child’s parents or guardians, in23 cluding methods to ensure that disclosure (and

24 redisclosure) of information concerning child

25 abuse or neglect involving specific individuals is
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1 made only to persons or entities that the State

2 determines have a need for such information di3 rectly related to the purposes of this Act;

4 ‘‘(F) requirements for the prompt disclosure

5 of all relevant information to any Federal, State,

6 or local governmental entity, or any agent of

7 such entity, with a need for such information in

8 order to carry out its responsibilities under law

9 to protect children from abuse and neglect;

10 ‘‘(G) the cooperation of State law enforce11 ment officials, court of competent jurisdiction,

12 and appropriate State agencies providing

13 human services;

14 ‘‘(H) provisions requiring, and procedures

15 in place that facilitate the prompt expungement

16 of any records that are accessible to the general

17 public or are used for purposes of employment or

18 other background checks in cases determined to

19 be unsubstantiated or false, except that nothing

20 in this section shall prevent State child protec21 tive service agencies from keeping information on

22 unsubstantiated reports in their casework files to

23 assist in future risk and safety assessment; and

24 ‘‘(I) provisions and procedures requiring

25 that in every case involving an abused or ne-
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1 glected child which results in a judicial proceed2 ing, a guardian ad litem shall be appointed to

3 represent the child in such proceedings; and

4 ‘‘(2) has in place procedures for responding to

5 the reporting of medical neglect (including instances

6 of withholding of medically indicated treatment from

7 disabled infants with life-threatening conditions),

8 procedures or programs, or both (within the State

9 child protective services system), to provide for—

10 ‘‘(A) coordination and consultation with in11 dividuals designated by and within appropriate

12 health-care facilities;

13 ‘‘(B) prompt notification by individuals

14 designated by and within appropriate health15 care facilities of cases of suspected medical ne16 glect (including instances of withholding of

17 medically indicated treatment from disabled in18 fants with life-threatening conditions); and

19 ‘‘(C) authority, under State law, for the

20 State child protective service system to pursue

21 any legal remedies, including the authority to

22 initiate legal proceedings in a court of competent

23 jurisdiction, as may be necessary to prevent the

24 withholding of medically indicated treatment
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1 from disabled infants with life threatening con2 ditions.

3 ‘‘(c) ADDITIONAL REQUIREMENT.—Not later than 2

4 years after the date of enactment of this section, the State

5 shall provide an assurance or certification that the State

6 has in place provisions, procedures, and mechanisms by

7 which individuals who disagree with an official finding of

8 abuse or neglect can appeal such finding.

9 ‘‘(d) STATE PROGRAM PLAN.—To be eligible to receive

10 a grant under this section, a State shall submit every 5

11 years a plan to the Secretary that specifies the child protec12 tive service system area or areas described in subsection (a)

13 that the State intends to address with funds received under

14 the grant. Such plan shall, to the maximum extent prac15 ticable, be coordinated with the plan of the State for child

16 welfare services and family preservation and family sup17 port services under part B of title IV of the Social Security

18 Act and shall contain an outline of the activities that the

19 State intends to carry out using amounts provided under

20 the grant to achieve the purposes of this Act, including the

21 procedures to be used for—

22 ‘‘(1) receiving and assessing reports of child

23 abuse or neglect;

24 ‘‘(2) investigating such reports;
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1 ‘‘(3) protecting children by removing them from

2 dangerous settings and ensuring their placement in a

3 safe environment;

4 ‘‘(4) providing services or referral for services for

5 families and children where the child is not in danger

6 of harm;

7 ‘‘(5) providing services to individuals, families,

8 or communities, either directly or through referral,

9 aimed at preventing the occurrence of child abuse and

10 neglect;

11 ‘‘(6) providing training to support direct line

12 and supervisory personnel in report-taking, screening,

13 assessment, decision-making, and referral for inves14 tigation; and

15 ‘‘(7) providing training for individuals man16 dated to report suspected cases of child abuse or ne17 glect.

18 ‘‘(e) RESTRICTIONS RELATING TO CHILD WELFARE

19 SERVICES.—Programs or projects relating to child abuse

20 and neglect assisted under part B of title IV of the Social

21 Security Act shall comply with the requirements set forth

22 in paragraphs (1) (A) and (B), and (2) of subsection (b).

23 ‘‘(f) ANNUAL STATE DATA REPORTS.—Each State to

24 which a grant is made under this part shall annually work
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1 with the Secretary to provide, to the maximum extent prac2 ticable, a report that includes the following:

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

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

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

6 paragraph (1), the number with respect to whom such

7 reports were—

8 ‘‘(A) substantiated;

9 ‘‘(B) unsubstantiated; and

10 ‘‘(C) determined to be false.

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

12 paragraph (2)—

13 ‘‘(A) the number that did not receive serv14 ices during the year under the State program

15 funded under this part or an equivalent State

16 program;

17 ‘‘(B) the number that received services dur18 ing the year under the State program funded

19 under this part or an equivalent State program;

20 and

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

22 their families during the year by disposition of

23 the case.

24 ‘‘(4) The number of families that received pre25 ventive services from the State during the year.
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1 ‘‘(5) The number of deaths in the State during

2 the year resulting from child abuse or neglect.

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

4 paragraph (5), the number of such children who were

5 in foster care.

6 ‘‘(7) The number of child protective service work7 ers responsible for the intake and screening of reports

8 filed in the previous year.

9 ‘‘(8) The agency response time with respect to

10 each such report with respect to initial investigation

11 of reports of child abuse or neglect.

12 ‘‘(9) The response time with respect to the provi13 sion of services to families and children where an al14 legation of abuse or neglect has been made.

15 ‘‘(10) The number of child protective service

16 workers responsible for intake, assessment, and inves17 tigation of child abuse and neglect reports relative to

18 the number of reports investigated in the previous

19 year.

20 ‘‘(g) ANNUAL REPORT BY THE SECRETARY.—Within

21 6 months after receiving the State reports under subsection

22 (f), the Secretary shall prepare a report based on informa23 tion provided by the States for the fiscal year under such

24 subsection and shall make the report and such information
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1 available to the Congress and the national clearinghouse for

2 information relating to child abuse.’’.

3 SEC. 1120. REPEAL.

4 Section 108 (42 U.S.C. 5106b) is repealed.

5 SEC. 1121. MISCELLANEOUS REQUIREMENTS.

6 Section 110 (42 U.S.C. 5106d) is amended by striking

7 subsection (c).

8 SEC. 1122. DEFINITIONS.

9 Section 113 (42 U.S.C. 5106h) is amended—

10 (1) by striking paragraphs (1) and (2);

11 (2) by redesignating paragraphs (3) through (10)

12 as paragraphs (1) through (8), respectively; and

13 (3) in paragraph (2) (as so redesignated), to

14 read as follows:

15 ‘‘(2) the term ‘child abuse and neglect’ means, at

16 a minimum, any recent act or failure to act on the

17 part of a parent or caretaker, which results in death,

18 serious physical or emotional harm, sexual abuse or

19 exploitation, or an act or failure to act which pre20 sents an imminent risk of serious harm;’’.

21 SEC. 1123. AUTHORIZATION OF APPROPRIATIONS.

22 Section 114(a) (42 U.S.C. 5106h(a)) is amended to

23 read as follows:

24 ‘‘(a) IN GENERAL.—
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1 ‘‘(1) GENERAL AUTHORIZATION.—There are au2 thorized to be appropriated to carry out this title,

3 $100,000,000 for fiscal year 1996, and such sums as

4 may be necessary for each of the fiscal years 1997

5 through 2000.

6 ‘‘(2) DISCRETIONARY ACTIVITIES.—

7 ‘‘(A) IN GENERAL.—Of the amounts appro8 priated for a fiscal year under paragraph (1),

the Secretary shall make available 331 9 ⁄3 percent

10 of such amounts to fund discretionary activities

11 under this title.

12 ‘‘(B) DEMONSTRATION PROJECTS.—Of the

13 amounts made available for a fiscal year under

14 subparagraph (A), the Secretary make available

15 not more than 40 percent of such amounts to

16 carry out section 106.’’.

17 SEC. 1124. RULE OF CONSTRUCTION.

18 Title I (42 U.S.C. 5101 et seq.) is amended by adding

19 at the end thereof the following new section:

20 ‘‘SEC. 115. RULE OF CONSTRUCTION.

21 ‘‘(a) IN GENERAL.—Nothing in this Act shall be con22 strued—

23 ‘‘(1) as establishing a Federal requirement that

24 a parent or legal guardian provide a child any medi-
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1 cal service or treatment against the religious beliefs of

2 the parent or legal guardian; and

3 ‘‘(2) to require that a State find, or to prohibit

4 a State from finding, abuse or neglect in cases in

5 which a parent or legal guardian relies solely or par6 tially upon spiritual means rather than medical

7 treatment, in accordance with the religious beliefs of

8 the parent or legal guardian.

9 ‘‘(b) STATE REQUIREMENT.—Notwithstanding sub10 section (a), a State shall, at a minimum, have in place

11 authority under State law to permit the child protective

12 service system of the State to pursue any legal remedies,

13 including the authority to initiate legal proceedings in a

14 court of competent jurisdiction, to provide medical care or

15 treatment for a child when such care or treatment is nec16 essary to prevent or remedy serious harm to the child, or

17 to prevent the withholding of medically indicated treatment

18 from children with life threatening conditions. Case by case

19 determinations concerning the exercise of the authority of

20 this subsection shall be within the sole discretion of the

21 State.’’.

22 SEC. 1125. TECHNICAL AMENDMENT.

23 Section 1404A of the Victims of Crime Act of 1984 (42

24 U.S.C. 10603a) is amended—
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1 (1) by striking ‘‘1402(d)(2)(D) and (d)(3)’’ and

2 inserting ‘‘1402(d)(2)’’; and

3 (2) by striking ‘‘section 4(d)’’ and inserting ‘‘sec4 tion 109’’.

5 Subtitle B—Community-Based

6 Child Abuse and Neglect Preven7 tion Grants

8 SEC. 1131. ESTABLISHMENT OF PROGRAM.

9 Title II of the Child Abuse Prevention and Treatment

10 Act (42 U.S.C. 5116 et seq) is amended to read as follows:

11 ‘‘TITLE II—COMMUNITY-BASED

12 FAMILY RESOURCE AND SUP13 PORT GRANTS

14 ‘‘SEC. 201. PURPOSE AND AUTHORITY.

15 ‘‘(a) PURPOSE.—It is the purpose of this Act to sup16 port State efforts to develop, operate, expand and enhance

17 a network of community-based, prevention-focused, family

18 resource and support programs that are culturally com19 petent and that coordinate resources among existing edu20 cation, vocational rehabilitation, disability, respite, health,

21 mental health, job readiness, self-sufficiency, child and fam22 ily development, community action, Head Start, child care,

23 child abuse and neglect prevention, juvenile justice, domes24 tic violence prevention and intervention, housing, and other

25 human service organizations within the State.
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1 ‘‘(b) AUTHORITY.—The Secretary shall make grants

2 under this title on a formula basis to the entity designated

3 by the State as the lead entity (hereafter referred to in this

4 title as the ‘lead entity’) for the purpose of—

5 ‘‘(1) developing, operating, expanding and en6 hancing Statewide networks of community-based, pre7 vention-focused, family resource and support pro8 grams that—

9 ‘‘(A) offer sustained assistance to families;

10 ‘‘(B) provide early, comprehensive, and ho11 listic support for all parents;

12 ‘‘(C) promote the development of parental

13 competencies and capacities, especially in young

14 parents and parents with very young children;

15 ‘‘(D) increase family stability;

16 ‘‘(E) improve family access to other formal

17 and informal resources and opportunities for as18 sistance available within communities;

19 ‘‘(F) support the additional needs of fami20 lies with children with disabilities; and

21 ‘‘(G) decrease the risk of homelessness;

22 ‘‘(2) fostering the development of a continuum of

23 preventive services for children and families through

24 State and community-based collaborations and part25 nerships both public and private;
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1 ‘‘(3) financing the start-up, maintenance, expan2 sion, or redesign of specific family resource and sup3 port program services (such as respite services, child

4 abuse and neglect prevention activities, disability

5 services, mental health services, housing services,

6 transportation, adult education, home visiting and

7 other similar services) identified by the inventory and

8 description of current services required under section

9 205(a)(3) as an unmet need, and integrated with the

10 network of community-based family resource and sup11 port program to the extent practicable given funding

12 levels and community priorities;

13 ‘‘(4) maximizing funding for the financing,

14 planning, community mobilization, collaboration, as15 sessment, information and referral, startup, training

16 and technical assistance, information management,

17 reporting and evaluation costs for establishing, oper18 ating, or expanding a Statewide network of commu19 nity-based, prevention-focused, family resource and

20 support program; and

21 ‘‘(5) financing public information activities that

22 focus on the healthy and positive development of par23 ents and children and the promotion of child abuse

24 and neglect prevention activities.
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1 ‘‘SEC. 202. ELIGIBILITY.

2 ‘‘A State shall be eligible for a grant under this title

3 for a fiscal year if—

4 ‘‘(1)(A) the chief executive officer of the State has

5 designated an entity to administer funds under this

6 title for the purposes identified under the authority of

7 this title, including to develop, implement, operate,

8 enhance or expand a Statewide network of commu9 nity-based, prevention-focused, family resource and

10 support programs, child abuse and neglect prevention

11 activities and access to respite services integrated

12 with the Statewide network;

13 ‘‘(B) in determining which entity to designate

14 under subparagraph (A), the chief executive officer

15 should give priority consideration to the trust fund

16 advisory board of the State or an existing entity that

17 leverages Federal, State, and private funds for a

18 broad range of child abuse and neglect prevention ac19 tivities and family resource programs, and that is di20 rected by an interdisciplinary, public-private struc21 ture, including participants from communities; and

22 ‘‘(C) such lead entity is an existing public,

23 quasi-public, or nonprofit private entity with a dem24 onstrated ability to work with other State and com25 munity-based agencies to provide training and tech26 nical assistance, and that has the capacity and com-
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1 mitment to ensure the meaningful involvement of par2 ents who are consumers and who can provide leader3 ship in the planning, implementation, and evaluation

4 of programs and policy decisions of the applicant

5 agency in accomplishing the desired outcomes for such

6 efforts;

7 ‘‘(2) the chief executive officer of the State pro8 vides assurances that the lead entity will provide or

9 will be responsible for providing—

10 ‘‘(A) a network of community-based family

11 resource and support programs composed of

12 local, collaborative, public-private partnerships

13 directed by interdisciplinary structures with bal14 anced representation from private and public

15 sector members, parents, and public and private

16 nonprofit service providers and individuals and

17 organizations experienced in working in partner18 ship with families with children with disabil19 ities;

20 ‘‘(B) direction to the network through an

21 interdisciplinary, collaborative, public-private

22 structure with balanced representation from pri23 vate and public sector members, parents, and

24 public sector and private nonprofit sector service

25 providers; and
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1 ‘‘(C) direction and oversight to the network

2 through identified goals and objectives, clear

3 lines of communication and accountability, the

4 provision of leveraged or combined funding from

5 Federal, State and private sources, centralized

6 assessment and planning activities, the provision

7 of training and technical assistance, and report8 ing and evaluation functions; and

9 ‘‘(3) the chief executive officer of the State pro10 vides assurances that the lead entity—

11 ‘‘(A) has a demonstrated commitment to pa12 rental participation in the development, oper13 ation, and oversight of the Statewide network of

14 community-based, prevention-focused, family re15 source and support programs;

16 ‘‘(B) has a demonstrated ability to work

17 with State and community-based public and pri18 vate nonprofit organizations to develop a contin19 uum of preventive, family centered, holistic serv20 ices for children and families through the State21 wide network of community-based, prevention-fo22 cused, family resource and support programs;

23 ‘‘(C) has the capacity to provide operational

24 support (both financial and programmatic) and

25 training and technical assistance, to the State-
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1 wide network of community-based, prevention-fo2 cused, family resource and support programs,

3 through innovative, interagency funding and

4 interdisciplinary service delivery mechanisms;

5 and

6 ‘‘(D) will integrate its efforts with individ7 uals and organizations experienced in working

8 in partnership with families with children with

9 disabilities and with the child abuse and neglect

10 prevention activities of the State, and dem11 onstrate a financial commitment to those activi12 ties.

13 ‘‘SEC. 203. AMOUNT OF GRANT.

14 ‘‘(a) RESERVATION.—The Secretary shall reserve 1

15 percent of the amount appropriated under section 210 for

16 a fiscal year to make allotments to Indian tribes and tribal

17 organizations and migrant programs.

18 ‘‘(b) ALLOTMENT.—

19 ‘‘(1) IN GENERAL.—Of the amounts appro20 priated for a fiscal year under section 210 and re21 maining after the reservation under subsection (a),

22 the Secretary shall allot to each State lead entity an

23 amount equal to—

24 ‘‘(A) the State minor child amount for such

25 State as determined under paragraph (2); and
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1 ‘‘(B) the State matchable amount for such

2 State as determined under paragraph (3).

3 ‘‘(2) STATE MINOR CHILD AMOUNT.—The

4 amount determined under this paragraph for a fiscal

5 year for a State shall be equal to an amount that

6 bears the same relationship to 50 percent of the

7 amounts appropriated and remaining under para8 graph (1) for such fiscal year as the number of chil9 dren under 18 residing in the State bears to the total

10 number of children under 18 residing in all States,

11 except that no State shall receive less than $250,000.

12 ‘‘(3) STATE MATCHABLE AMOUNT.—The amount

13 determined under this paragraph for a fiscal year for

14 a State shall be equal to—

15 ‘‘(A)(i) 50 percent of the amounts appro16 priated and remaining under paragraph (1) for

17 such fiscal year; divided by

18 ‘‘(ii) 50 percent of the total amount that all

19 States have directed through the respective lead

20 agencies to the purposes identified under the au21 thority of this title for the fiscal year, including

22 foundation, corporate, and other private funding,

23 State revenues, and Federal funds, as determined

24 by the Secretary; multiplied by
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1 ‘‘(B) 50 percent of the total amount that the

2 State has directed through the lead agency to the

3 purposes identified under the authority of this

4 title for such fiscal year, including foundation,

5 corporate, and other private funding, State reve6 nues, and Federal funds.

7 ‘‘(c) ALLOCATION.—Funds allotted to a State under

8 this section shall be awarded on a formula basis for a 3-

9 year period. Payment under such allotments shall be made

10 by the Secretary annually on the basis described in sub11 section (a).

12 ‘‘SEC. 204. EXISTING AND CONTINUATION GRANTS.

13 ‘‘(a) EXISTING GRANTS.—Notwithstanding the enact14 ment of this title, a State or entity that has a grant, con15 tract, or cooperative agreement in effect, on the date of en16 actment of this title, under the Family Resource and Sup17 port Program, the Community-Based Family Resource Pro18 gram, the Family Support Center Program, the Emergency

19 Child Abuse Prevention Grant Program, or the Temporary

20 Child Care for Children with Disabilities and Crisis Nurs21 eries Programs shall continue to receive funds under such

22 programs, subject to the original terms under which such

23 funds were granted, through the end of the applicable grant

24 cycle.
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1 ‘‘(b) CONTINUATION GRANTS.—The Secretary may

2 continue grants for Family Resource and Support Program

3 grantees, and those programs otherwise funded under this

4 Act, on a noncompetitive basis, subject to the availability

5 of appropriations, satisfactory performance by the grantee,

6 and receipt of reports required under this Act, until such

7 time as the grantee no longer meets the original purposes

8 of this Act.

9 ‘‘SEC. 205. APPLICATION.

10 ‘‘(a) IN GENERAL.—A grant may not be made to a

11 State under this title unless an application therefore is sub12 mitted by the State to the Secretary and such application

13 contains the types of information specified by the Secretary

14 as essential to carrying out the provisions of section 202,

15 including—

16 ‘‘(1) a description of the lead entity that will be

17 responsible for the administration of funds provided

18 under this title and the oversight of programs funded

19 through the Statewide network of community-based,

20 prevention-focused, family resource and support pro21 grams which meets the requirements of section 202;

22 ‘‘(2) a description of how the network of commu23 nity-based, prevention-focused, family resource and

24 support programs will operate and how family re25 source and support services provided by public and
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1 private, nonprofit organizations, including those

2 funded by programs consolidated under this Act, will

3 be integrated into a developing continuum of family

4 centered, holistic, preventive services for children and

5 families;

6 ‘‘(3) an assurance that an inventory of current

7 family resource programs, respite, child abuse and ne8 glect prevention activities, and other family resource

9 services operating in the State, and a description of

10 current unmet needs, will be provided;

11 ‘‘(4) a budget for the development, operation and

12 expansion of the State’s network of community-based,

13 prevention-focused, family resource and support pro14 grams that verifies that the State will expend an

15 amount equal to not less than 20 percent of the

16 amount received under this title (in cash, not in17 kind) for activities under this title;

18 ‘‘(5) an assurance that funds received under this

19 title will supplement, not supplant, other State and

20 local public funds designated for the Statewide net21 work of community-based, prevention-focused, family

22 resource and support programs;

23 ‘‘(6) an assurance that the State network of com24 munity-based, prevention-focused, family resource and

25 support programs will maintain cultural diversity,
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1 and be culturally competent and socially sensitive

2 and responsive to the needs of families with children

3 with disabilities;

4 ‘‘(7) an assurance that the State has the capac5 ity to ensure the meaningful involvement of parents

6 who are consumers and who can provide leadership in

7 the planning, implementation, and evaluation of the

8 programs and policy decisions of the applicant agen9 cy in accomplishing the desired outcomes for such ef10 forts;

11 ‘‘(8) a description of the criteria that the entity

12 will use to develop, or select and fund, individual

13 community-based, prevention-focused, family resource

14 and support programs as part of network develop15 ment, expansion or enhancement;

16 ‘‘(9) a description of outreach activities that the

17 entity and the community-based, prevention-focused,

18 family resource and support programs will undertake

19 to maximize the participation of racial and ethnic

20 minorities, new immigrant populations, children and

21 adults with disabilities, homeless families and those

22 at risk of homelessness, and members of other under23 served or underrepresented groups;

24 ‘‘(10) a plan for providing operational support,

25 training and technical assistance to community-
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1 based, prevention-focused, family resource and sup2 port programs for development, operation, expansion

3 and enhancement activities;

4 ‘‘(11) a description of how the applicant entity’s

5 activities and those of the network and its members

6 will be evaluated;

7 ‘‘(12) a description of that actions that the ap8 plicant entity will take to advocate changes in State

9 policies, practices, procedures and regulations to im10 prove the delivery of prevention-focused, family re11 source and support program services to all children

12 and families; and

13 ‘‘(13) an assurance that the applicant entity will

14 provide the Secretary with reports at such time and

15 containing such information as the Secretary may re16 quire.

17 ‘‘SEC. 206. LOCAL PROGRAM REQUIREMENTS.

18 ‘‘(a) IN GENERAL.—Grants made under this title shall

19 be used to develop, implement, operate, expand and enhance

20 community-based, prevention-focused, family resource and

21 support programs that—

22 ‘‘(1) assess community assets and needs through

23 a planning process that involves parents and local

24 public agencies, local nonprofit organizations, and

25 private sector representatives;
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1 ‘‘(2) develop a strategy to provide, over time, a

2 continuum of preventive, holistic, family centered

3 services to children and families, especially to young

4 parents and parents with young children, through

5 public-private partnerships;

6 ‘‘(3) provide—

7 ‘‘(A) core family resource and support serv8 ices such as—

9 ‘‘(i) parent education, mutual support

10 and self help, and leadership services;

11 ‘‘(ii) early developmental screening of

12 children;

13 ‘‘(iii) outreach services;

14 ‘‘(iv) community and social service re15 ferrals; and

16 ‘‘(v) follow-up services;

17 ‘‘(B) other core services, which must be pro18 vided or arranged for through contracts or agree19 ments with other local agencies, including all

20 forms of respite services to the extent practicable;

21 and

22 ‘‘(C) access to optional services, including—

23 ‘‘(i) child care, early childhood develop24 ment and intervention services;
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1 ‘‘(ii) services and supports to meet the

2 additional needs of families with children

3 with disabilities;

4 ‘‘(iii) job readiness services;

5 ‘‘(iv) educational services, such as scho6 lastic tutoring, literacy training, and Gen7 eral Educational Degree services;

8 ‘‘(v) self-sufficiency and life manage9 ment skills training;

10 ‘‘(vi) community referral services; and

11 ‘‘(vii) peer counseling;

12 ‘‘(4) develop leadership roles for the meaningful

13 involvement of parents in the development, operation,

14 evaluation, and oversight of the programs and serv15 ices;

16 ‘‘(5) provide leadership in mobilizing local pub17 lic and private resources to support the provision of

18 needed family resource and support program services;

19 and

20 ‘‘(6) participate with other community-based,

21 prevention-focused, family resource and support pro22 gram grantees in the development, operation and ex23 pansion of the Statewide network.

24 ‘‘(b) PRIORITY.—In awarding local grants under this

25 title, a lead entity shall give priority to community-based
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1 programs serving low income communities and those serv2 ing young parents or parents with young children, and to

3 community-based family resource and support programs

4 previously funded under the programs consolidated under

5 the Child Abuse Prevention and Treatment Act Amend6 ments of 1995, so long as such programs meet local program

7 requirements.

8 ‘‘SEC. 207. PERFORMANCE MEASURES.

9 ‘‘A State receiving a grant under this title, through

10 reports provided to the Secretary, shall—

11 ‘‘(1) demonstrate the effective development, oper12 ation and expansion of a Statewide network of com13 munity-based, prevention-focused, family resource and

14 support programs that meets the requirements of this

15 title;

16 ‘‘(2) supply an inventory and description of the

17 services provided to families by local programs that

18 meet identified community needs, including core and

19 optional services as described in section 202;

20 ‘‘(3) demonstrate the establishment of new respite

21 and other specific new family resources services, and

22 the expansion of existing services, to address unmet

23 needs identified by the inventory and description of

24 current services required under section 205(a)(3);
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1 ‘‘(4) describe the number of families served, in2 cluding families with children with disabilities, and

3 the involvement of a diverse representation of families

4 in the design, operation, and evaluation of the State5 wide network of community-based, prevention-focused,

6 family resource and support programs, and in the de7 sign, operation and evaluation of the individual com8 munity-based family resource and support programs

9 that are part of the Statewide network funded under

10 this title;

11 ‘‘(5) demonstrate a high level of satisfaction

12 among families who have used the services of the com13 munity-based, prevention-focused, family resource and

14 support programs;

15 ‘‘(6) demonstrate the establishment or mainte16 nance of innovative funding mechanisms, at the State

17 or community level, that blend Federal, State, local

18 and private funds, and innovative, interdisciplinary

19 service delivery mechanisms, for the development, op20 eration, expansion and enhancement of the Statewide

21 network of community-based, prevention-focused, fam22 ily resource and support programs;

23 ‘‘(7) describe the results of a peer review process

24 conducted under the State program; and
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1 ‘‘(8) demonstrate an implementation plan to en2 sure the continued leadership of parents in the on3 going planning, implementation, and evaluation of

4 such community based, prevention-focused, family re5 source and support programs.

6 ‘‘SEC. 208. NATIONAL NETWORK FOR COMMUNITY-BASED

7 FAMILY RESOURCE PROGRAMS.

8 ‘‘The Secretary may allocate such sums as may be nec9 essary from the amount provided under the State allotment

10 to support the activities of the lead entity in the State—

11 ‘‘(1) to create, operate and maintain a peer re12 view process;

13 ‘‘(2) to create, operate and maintain an infor14 mation clearinghouse;

15 ‘‘(3) to fund a yearly symposium on State sys16 tem change efforts that result from the operation of

17 the Statewide networks of community-based, preven18 tion-focused, family resource and support programs;

19 ‘‘(4) to create, operate and maintain a comput20 erized communication system between lead entities;

21 and

22 ‘‘(5) to fund State-to-State technical assistance

23 through bi-annual conferences.

24 ‘‘SEC. 209. DEFINITIONS.

25 ‘‘For purposes of this title:
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1 ‘‘(1) CHILDREN WITH DISABILITIES.—The term

2 ‘children with disabilities’ has the same meaning

3 given such term in section 602(a)(2) of the Individ4 uals with Disabilities Education Act.

5 ‘‘(2) COMMUNITY REFERRAL SERVICES.—The

6 term ‘community referral services’ means services pro7 vided under contract or through interagency agree8 ments to assist families in obtaining needed informa9 tion, mutual support and community resources, in10 cluding respite services, health and mental health

11 services, employability development and job training,

12 and other social services through help lines or other

13 methods.

14 ‘‘(3) CULTURALLY COMPETENT.—The term ‘cul15 turally competent’ means services, support, or other

16 assistance that is conducted or provided in a manner

17 that—

18 ‘‘(A) is responsive to the beliefs, inter19 personal styles, attitudes, languages, and behav20 iors of those individuals and families receiving

21 services; and

22 ‘‘(B) has the greatest likelihood of ensuring

23 maximum participation of such individuals and

24 families.
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1 ‘‘(4) FAMILY RESOURCE AND SUPPORT PRO2 GRAM.—The term ‘family resource and support pro3 gram’ means a community-based, prevention-focused

4 entity that—

5 ‘‘(A) provides, through direct service, the

6 core services required under this title, includ7 ing—

8 ‘‘(i) parent education, support and

9 leadership services, together with services

10 characterized by relationships between par11 ents and professionals that are based on

12 equality and respect, and designed to assist

13 parents in acquiring parenting skills, learn14 ing about child development, and respond15 ing appropriately to the behavior of their

16 children;

17 ‘‘(ii) services to facilitate the ability of

18 parents to serve as resources to one another

19 (such as through mutual support and par20 ent self-help groups);

21 ‘‘(iii) early developmental screening of

22 children to assess any needs of children, and

23 to identify types of support that may be

24 provided;
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1 ‘‘(iv) outreach services provided

2 through voluntary home visits and other

3 methods to assist parents in becoming

4 aware of and able to participate in family

5 resources and support program activities;

6 ‘‘(v) community and social services to

7 assist families in obtaining community re8 sources; and

9 ‘‘(vi) follow-up services;

10 ‘‘(B) provides, or arranges for the provision

11 of, other core services through contracts or agree12 ments with other local agencies, including all

13 forms of respite services; and

14 ‘‘(C) provides access to optional services, di15 rectly or by contract, purchase of service, or

16 interagency agreement, including—

17 ‘‘(i) child care, early childhood develop18 ment and early intervention services;

19 ‘‘(ii) self-sufficiency and life manage20 ment skills training;

21 ‘‘(iii) education services, such as scho22 lastic tutoring, literacy training, and Gen23 eral Educational Degree services;

24 ‘‘(iv) job readiness skills;
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1 ‘‘(v) child abuse and neglect prevention

2 activities;

3 ‘‘(vi) services that families with chil4 dren with disabilities or special needs may

5 require;

6 ‘‘(vii) community and social service re7 ferral;

8 ‘‘(viii) peer counseling;

9 ‘‘(ix) referral for substance abuse coun10 seling and treatment; and

11 ‘‘(x) help line services.

12 ‘‘(5) NATIONAL NETWORK FOR COMMUNITY13 BASED FAMILY RESOURCE PROGRAMS.—The term

14 ‘network for community-based family resource pro15 gram’ means the organization of State designated en16 tities who receive grants under this title, and includes

17 the entire membership of the Children’s Trust Fund

18 Alliance and the National Respite Network.

19 ‘‘(6) OUTREACH SERVICES.—The term ‘outreach

20 services’ means services provided to assist consumers,

21 through voluntary home visits or other methods, in

22 accessing and participating in family resource and

23 support program activities.

24 ‘‘(7) RESPITE SERVICES.—The term ‘respite

25 services’ means short term care services provided in
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1 the temporary absence of the regular caregiver (par2 ent, other relative, foster parent, adoptive parent, or

3 guardian) to children who—

4 ‘‘(A) are in danger of abuse or neglect;

5 ‘‘(B) have experienced abuse or neglect; or

6 ‘‘(C) have disabilities, chronic, or terminal

7 illnesses.

8 Such services shall be provided within or outside the

9 home of the child, be short-term care (ranging from

10 a few hours to a few weeks of time, per year), and

11 be intended to enable the family to stay together and

12 to keep the child living in the home and community

13 of the child.

14 ‘‘SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘There are authorized to be appropriated to carry out

16 this title, $108,000,000 for each of the fiscal years 1996

17 through 2000.’’.

18 SEC. 1132. REPEALS.

19 (a) TEMPORARY CHILD CARE FOR CHILDREN WITH

20 DISABILITIES AND CRISIS NURSERIES ACT.—The Tem21 porary Child Care for Children with Disabilities and Crisis

22 Nurseries Act of 1986 (42 U.S.C. 5117 et seq.) is repealed.

23 (b) FAMILY SUPPORT CENTERS.—Subtitle F of title

24 VII of the Stewart B. McKinney Homeless Assistance Act

25 (42 U.S.C. 11481 et seq.) is repealed.
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1 Subtitle C—Family Violence

2 Prevention and Services

3 SEC. 1141. REFERENCE.

4 Except as otherwise expressly provided, whenever in

5 this subtitle an amendment or repeal is expressed in terms

6 of an amendment to, or repeal of, a section or other provi7 sion, the reference shall be considered to be made to a section

8 or other provision of the Family Violence Prevention and

9 Services Act (42 U.S.C. 10401 et seq.).

10 SEC. 1142. STATE DEMONSTRATION GRANTS.

11 Section 303(e) (42 U.S.C. 10420(e)) is amended—

12 (1) by striking ‘‘following local share’’ and in13 serting ‘‘following non-Federal matching local share’’;

14 and

15 (2) by striking ‘‘20 percent’’ and all that follows

16 through ‘‘private sources.’’ and inserting ‘‘with re17 spect to an entity operating an existing program

18 under this title, not less than 20 percent, and with re19 spect to an entity intending to operate a new pro20 gram under this title, not less than 35 percent.’’.

21 SEC. 1143. ALLOTMENTS.

22 Section 304(a)(1) (42 U.S.C. 10403(a)(1)) is amended

23 by striking ‘‘$200,000’’ and inserting ‘‘$400,000’’.

24 SEC. 1144. AUTHORIZATION OF APPROPRIATIONS.

25 Section 310 (42 U.S.C. 10409) is amended—
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1 (1) in subsection (b), by striking ‘‘80’’ and in2 serting ‘‘70’’; and

3 (2) by adding at the end thereof the following

4 new subsections:

5 ‘‘(d) GRANTS FOR STATE COALITIONS.—Of the

6 amounts appropriated under subsection (a) for each fiscal

7 year, not less than 10 percent of such amounts shall be used

8 by the Secretary for making grants under section 311.

9 ‘‘(e) NON-SUPPLANTING REQUIREMENT.—Federal

10 funds made available to a State under this title shall be

11 used to supplement and not supplant other Federal, State,

12 and local public funds expended to provide services and ac13 tivities that promote the purposes of this title.’’.

14 Subtitle D—Adoption Opportunities

15 SEC. 1151. REFERENCE.

16 Except as otherwise expressly provided, whenever in

17 this subtitle an amendment or repeal is expressed in terms

18 of an amendment to, or repeal of, a section or other provi19 sion, the reference shall be considered to be made to a section

20 or other provision of the Child Abuse Prevention and Treat21 ment and Adoption Reform Act of 1978 (42 U.S.C. 5111

22 et seq.).

23 SEC. 1152. FINDINGS AND PURPOSE.

24 Section 201 (42 U.S.C. 5111) is amended—

25 (1) in subsection (a)—
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1 (A) in paragraph (1)—

2 (i) by striking ‘‘50 percent between

3 1985 and 1990’’ and inserting ‘‘61 percent

4 between 1986 and 1994’’; and

5 (ii) by striking ‘‘400,000 children at

6 the end of June, 1990’’ and inserting

7 ‘‘452,000 as of June, 1994’’; and

8 (B) in paragraph (5), by striking ‘‘local’’

9 and inserting ‘‘legal’’; and

10 (C) in paragraph (7), to read as follows:

11 ‘‘(7)(A) currently, 40,000 children are free for

12 adoption and awaiting placement;

13 ‘‘(B) such children are typically school aged, in

14 sibling groups, have experienced neglect or abuse, or

15 have a physical, mental, or emotional disability; and

16 ‘‘(C) while the children are of all races, children

17 of color and older children (over the age of 10) are

18 over represented in such group;’’; and

19 (2) in subsection (b)—

20 (A) by striking ‘‘conditions, by—’’ and all

21 that follows through ‘‘providing a mechanism’’

22 and inserting ‘‘conditions, by providing a mech23 anism’’; and

24 (B) by redesignating subparagraphs (A)

25 through (C), as paragraphs (1) through (3), re-
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1 spectively and by realigning the margins of such

2 paragraphs accordingly.

3 SEC. 1153. INFORMATION AND SERVICES.

4 Section 203 (42 U.S.C. 5113) is amended—

5 (1) in subsection (a), by striking the last sen6 tence;

7 (2) in subsection (b)—

8 (A) in paragraph (6), to read as follows:

9 ‘‘(6) study the nature, scope, and effects of the

10 placement of children in kinship care arrangements,

11 pre-adoptive, or adoptive homes;’’;

12 (B) by redesignating paragraphs (7)

13 through (9) as paragraphs (8) through (10), re14 spectively; and

15 (C) by inserting after paragraph (6), the

16 following new paragraph:

17 ‘‘(7) study the efficacy of States contracting with

18 public or private nonprofit agencies (including com19 munity-based and other organizations), or sectarian

20 institutions for the recruitment of potential adoptive

21 and foster families and to provide assistance in the

22 placement of children for adoption;’’; and

23 (3) in subsection (d)—

24 (A) in paragraph (2)—
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1 (i) by striking ‘‘Each’’ and inserting

2 ‘‘(A) Each’’;

3 (ii) by striking ‘‘for each fiscal year’’

4 and inserting ‘‘that describes the manner in

5 which the State will use funds during the 3-

6 fiscal years subsequent to the date of the ap7 plication to accomplish the purposes of this

8 section. Such application shall be’’; and

9 (iii) by adding at the end thereof the

10 following new subparagraph:

11 ‘‘(B) The Secretary shall provide, directly or by grant

12 to or contract with public or private nonprofit agencies or

13 organizations—

14 ‘‘(i) technical assistance and resource and refer15 ral information to assist State or local governments

16 with termination of parental rights issues, in recruit17 ing and retaining adoptive families, in the successful

18 placement of children with special needs, and in the

19 provision of pre- and post-placement services, includ20 ing post-legal adoption services; and

21 ‘‘(ii) other assistance to help State and local gov22 ernments replicate successful adoption-related projects

23 from other areas in the United States.’’.

24 SEC. 1154. AUTHORIZATION OF APPROPRIATIONS.

25 Section 205 (42 U.S.C. 5115) is amended—
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1 (1) in subsection (a), by striking ‘‘$10,000,000,’’

2 and all that follows through ‘‘203(c)(1)’’ and insert3 ing ‘‘$20,000,000 for fiscal year 1996, and such sums

4 as may be necessary for each of the fiscal years 1997

5 through 2000 to carry out programs and activities

6 authorized’’;

7 (2) by striking subsection (b); and

8 (3) by redesignating subsection (c) as subsection

9 (b).

10 Subtitle E—Abandoned Infants

11 Assistance Act of 1986

12 SEC. 1161. REAUTHORIZATION.

13 Section 104(a)(1) of the Abandoned Infants Assistance

14 Act of 1988 (42 U.S.C. 670 note) is amended by striking

15 ‘‘$20,000,000’’ and all that follows through the end thereof

16 and inserting ‘‘$35,000,000 for each of the fiscal years 1995

17 and 1996, and such sums as may be necessary for each of

18 the fiscal years 1997 through 2000’’.

19 Subtitle F—Reauthorization of

20 Various Programs

21 SEC. 1171. MISSING CHILDREN’S ASSISTANCE ACT.

22 Section 408 of the Missing Children’s Assistance Act

23 (42 U.S.C. 5777) is amended—

24 (1) by striking ‘‘To’’ and inserting ‘‘(a) IN GEN25 ERAL.—’’
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1 (2) by striking ‘‘and 1996’’ and inserting ‘‘1996,

2 and 1997’’; and

3 (3) by adding at the end thereof the following

4 new subsection:

5 ‘‘(b) EVALUATION.—The Administrator shall use not

6 more than 5 percent of the amount appropriated for a fiscal

7 year under subsection (a) to conduct an evaluation of the

8 effectiveness of the programs and activities established and

9 operated under this title.’’.

10 SEC. 1172. VICTIMS OF CHILD ABUSE ACT OF 1990.

11 Section 214B of the Victims of Child Abuse Act of 1990

12 (42 U.S.C. 13004) is amended—

13 (1) in subsection (a)(2), by striking ‘‘and 1996’’

14 and inserting ‘‘1996, and 1997’’; and

15 (2) in subsection (b)(2), by striking ‘‘and 1996’’

16 and inserting ‘‘1996 and 1997’’.

17 TITLE XII—REDUCTIONS IN FED18 ERAL GOVERNMENT POSI19 TIONS

20 SEC. 1201. REDUCTIONS.

21 (a) DEFINITIONS.—As used in this section:

22 (1) APPROPRIATE EFFECTIVE DATE.—The term

23 ‘‘appropriate effective date’’, used with respect to a

24 Department referred to in this section, means the date

25 on which all provisions of this Act that the Depart-
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1 ment is required to carry out, and amendments and

2 repeals made by this Act to provisions of Federal law

3 that the Department is required to carry out, are ef4 fective.

5 (2) COVERED ACTIVITY.—The term ‘‘covered ac6 tivity’’, used with respect to a Department referred to

7 in this section, means an activity that the Depart8 ment is required to carry out under—

9 (A) a provision of this Act; or

10 (B) a provision of Federal law that is

11 amended or repealed by this Act.

12 (b) REPORTS.—

13 (1) CONTENTS.—Not later than December 31,

14 1995, each Secretary referred to in paragraph (2)

15 shall prepare and submit to the relevant committees

16 described in paragraph (3) a report containing—

17 (A) the determinations described in sub18 section (c);

19 (B) appropriate documentation in support

20 of such determinations; and

21 (C) a description of the methodology used in

22 making such determinations.

23 (2) SECRETARY.—The Secretaries referred to in

24 this paragraph are—

25 (A) the Secretary of Agriculture;
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1 (B) the Secretary of Education;

2 (C) the Secretary of Labor;

3 (D) the Secretary of Housing and Urban

4 Development; and

5 (E) the Secretary of Health and Human

6 Services.

7 (3) RELEVANT COMMITTEES.—The relevant Com8 mittees described in this paragraph are the following:

9 (A) With respect to each Secretary described

10 in paragraph (2), the Committee on Government

11 Reform and Oversight of the House of Represent12 atives and the Committee on Governmental Af13 fairs of the Senate.

14 (B) With respect to the Secretary of Agri15 culture, the Committee on Agriculture and the

16 Committee on Economic and Educational Op17 portunities of the House of Representatives and

18 the Committee on Agriculture, Nutrition, and

19 Forestry of the Senate.

20 (C) With respect to the Secretary of Edu21 cation, the Committee on Economic and Edu22 cational Opportunities of the House of Rep23 resentatives and the Committee on Labor and

24 Human Resources of the Senate.
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1 (D) With respect to the Secretary of Labor,

2 the Committee on Economic and Educational

3 Opportunities of the House of Representatives

4 and the Committee on Labor and Human Re5 sources of the Senate.

6 (E) With respect to the Secretary of Hous7 ing and Urban Development, the Committee on

8 Banking and Financial Services of the House of

9 Representatives and the Committee on Banking,

10 Housing, and Urban Affairs of the Senate.

11 (F) With respect to the Secretary of Health

12 and Human Services, the Committee on Eco13 nomic and Educational Opportunities of the

14 House of Representatives, the Committee on

15 Labor and Human Resources of the Senate, the

16 Committee on Ways and Means of the House of

17 Representatives, and the Committee on Finance

18 of the Senate.

19 (4) REPORT ON CHANGES.—Not later than De20 cember 31, 1996, and each December 31 thereafter,

21 each Secretary referred to in paragraph (2) shall pre22 pare and submit to the relevant Committees described

23 in paragraph (3), a report concerning any changes

24 with respect to the determinations made under sub-
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1 section (c) for the year in which the report is being

2 submitted.

3 (c) DETERMINATIONS.—Not later than December 31,

4 1995, each Secretary referred to in subsection (b)(2) shall

5 determine—

6 (1) the number of full-time equivalent positions

7 required by the Department (or the Federal Partner8 ship established under section 771) headed by such

9 Secretary to carry out the covered activities of the De10 partment (or Federal Partnership), as of the day be11 fore the date of enactment of this Act;

12 (2) the number of such positions required by the

13 Department (or Federal Partnership) to carry out the

14 activities, as of the appropriate effective date for the

15 Department (or Federal Partnership); and

16 (3) the difference obtained by subtracting the

17 number referred to in paragraph (2) from the number

18 referred to in paragraph (1).

19 (d) ACTIONS.—Not later than 30 days after the appro20 priate effective date for the Department involved, each Sec21 retary referred to in subsection (b)(2) shall take such actions

22 as may be necessary, including reduction in force actions,

23 consistent with sections 3502 and 3595 of title 5, United

24 States Code, to reduce the number of positions of personnel
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1 of the Department by at least the difference referred to in

2 subsection (c)(3).

3 (e) CONSISTENCY.—

4 (1) EDUCATION.—The Secretary of Education

5 shall carry out this section in a manner that enables

6 the Secretary to meet the requirements of this section

7 and section 776(i)(2).

8 (2) LABOR.—The Secretary of Labor shall carry

9 out this section in a manner that enables the Sec10 retary to meet the requirements of this section and

11 section 776(i)(2).

12 (3) HEALTH AND HUMAN SERVICES.—The Sec13 retary of Health and Human Services shall carry out

14 this section in a manner that enables the Secretary

15 to meet the requirements of this section and section

16 1202.

17 (f) CALCULATION.—In determining, under subsection

18 (c), the number of full-time equivalent positions required

19 by a Department to carry out a covered activity, a Sec20 retary referred to in subsection (b)(2), shall include the

21 number of such positions occupied by personnel carrying

22 out program functions or other functions (including budg23 etary, legislative, administrative, planning, evaluation, and

24 legal functions) related to the activity.
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1 (g) GENERAL ACCOUNTING OFFICE REPORT.—Not

2 later than July 1, 1996, the Comptroller General of the

3 United States shall prepare and submit to the committees

4 described in subsection (b)(3), a report concerning the deter5 minations made by each Secretary under subsection (c).

6 Such report shall contain an analysis of the determinations

7 made by each Secretary under subsection (c) and a deter8 mination as to whether further reductions in full-time

9 equivalent positions are appropriate.

10 SEC. 1202. REDUCTIONS IN FEDERAL BUREAUCRACY.

11 (a) IN GENERAL.—The Secretary of Health and

12 Human Services shall reduce the Federal workforce within

13 the Department of Health and Human Services by an

14 amount equal to the sum of—

15 (1) 75 percent of the full-time equivalent posi16 tions at each such Department that relate to any di17 rect spending program, or any program funded

18 through discretionary spending, that has been con19 verted into a block grant program under this Act and

20 the amendments made by this Act; and

21 (2) an amount equal to 75 percent of that por22 tion of the total full-time equivalent departmental

23 management positions at each such Department that

24 bears the same relationship to the amount appro25 priated for the programs referred to in paragraph (1)
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1 as such amount relates to the total amount appro2 priated for use by each such Department.

3 (b) REDUCTIONS IN THE DEPARTMENT OF HEALTH

4 AND HUMAN SERVICES.—Notwithstanding any other provi5 sion of this Act, the Secretary of Health and Human Serv6 ices shall take such actions as may be necessary, including

7 reductions in force actions, consistent with sections 3502

8 and 3595 of title 5, United States Code, to reduce the full9 time equivalent positions within the Department of Health

10 and Human Services—

11 (1) by 245 full-time equivalent positions related

12 to the program converted into a block grant under the

13 amendment made by section 101(b); and

14 (2) by 60 full-time equivalent managerial posi15 tions in the Department.

16 SEC. 1203. REDUCING PERSONNEL IN WASHINGTON, DC,

17 AREA.

18 In making reductions in full-time equivalent positions,

19 the Secretary is encouraged to reduce personnel in the

20 Washington, DC, area office (agency headquarters) before

21 reducing field personnel.
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1 TITLE XIII—MISCELLANEOUS

2 PROVISIONS

3 SEC. 1301. EXPENDITURE OF FEDERAL FUNDS IN ACCORD4 ANCE WITH LAWS AND PROCEDURES APPLI5 CABLE TO EXPENDITURE OF STATE FUNDS.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, any funds received by a State under the provi8 sions of law specified in subsection (b) shall be expended

9 only in accordance with the laws and procedures applicable

10 to expenditures of the State’s own revenues, including ap11 propriation by the State legislature, consistent with the

12 terms and conditions required under such provisions of law.

13 (b) PROVISIONS OF LAW.—The provisions of law speci14 fied in this subsection are the following:

15 (1) Part A of title IV of the Social Security Act

16 (relating to block grants for temporary assistance to

17 needy families).

18 (2) Section 25 of the Food Stamp Act of 1977

19 (relating to the optional State food assistance block

20 grant).

21 (3) The Child Care and Development Block

22 Grant Act of 1990 (relating to block grants for child

23 care).
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1 SEC. 1302. ELIMINATION OF HOUSING ASSISTANCE WITH

2 RESPECT TO FUGITIVE FELONS AND PROBA3 TION AND PAROLE VIOLATORS.

4 (a) ELIGIBILITY FOR ASSISTANCE.—The United States

5 Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended—

6 (1) in section 6(l)—

7 (A) in paragraph (5), by striking ‘‘and’’ at

8 the end;

9 (B) in paragraph (6), by striking the period

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

11 (C) by inserting immediately after para12 graph (6) the following new paragraph:

13 ‘‘(7) provide that it shall be cause for immediate

14 termination of the tenancy of a public housing tenant

15 if such tenant—

16 ‘‘(A) is fleeing to avoid prosecution, or cus17 tody or confinement after conviction, under the

18 laws of the place from which the individual flees,

19 for a crime, or attempt to commit a crime,

20 which is a felony under the laws of the place

21 from which the individual flees, or which, in the

22 case of the State of New Jersey, is a high mis23 demeanor under the laws of such State; or

24 ‘‘(2) is violating a condition of probation or pa25 role imposed under Federal or State law.’’; and

26 (2) in section 8(d)(1)(B)—
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1 (A) in clause (iii), by striking ‘‘and’’ at the

2 end;

3 (B) in clause (iv), by striking the period at

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

5 (C) by adding after clause (iv) the following

6 new clause:

7 ‘‘(v) it shall be cause for termination of

8 the tenancy of a tenant if such tenant—

9 ‘‘(I) is fleeing to avoid prosecu10 tion, or custody or confinement after

11 conviction, under the laws of the place

12 from which the individual flees, for a

13 crime, or attempt to commit a crime,

14 which is a felony under the laws of the

15 place from which the individual flees,

16 or which, in the case of the State of

17 New Jersey, is a high misdemeanor

18 under the laws of such State; or

19 ‘‘(II) is violating a condition of

20 probation or parole imposed under

21 Federal or State law;’’.

22 (b) PROVISION OF INFORMATION TO LAW ENFORCE23 MENT AGENCIES.—Section 28 of the United States Housing

24 Act of 1937, as added by section 504(c) of this Act, is

25 amended by adding at the end the following new subsection:
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1 ‘‘(b) EXCHANGE OF INFORMATION WITH LAW EN2 FORCEMENT AGENCIES.—Notwithstanding any other provi3 sion of law, each public housing agency that enters into

4 a contract for assistance under section 6 or 8 of this Act

5 with the Secretary shall furnish any Federal, State, or local

6 law enforcement officer, upon the request of the officer, with

7 the current address, Social Security number, and photo8 graph (if applicable) of any recipient of assistance under

9 this Act, if the officer—

10 ‘‘(1) furnishes the public housing agency with the

11 name of the recipient; and

12 ‘‘(2) notifies the agency that—

13 ‘‘(A) such recipient—

14 ‘‘(i) is fleeing to avoid prosecution, or

15 custody or confinement after conviction,

16 under the laws of the place from which the

17 individual flees, for a crime, or attempt to

18 commit a crime, which is a felony under the

19 laws of the place from which the individual

20 flees, or which, in the case of the State of

21 New Jersey, is a high misdemeanor under

22 the laws of such State; or

23 ‘‘(ii) is violating a condition of proba24 tion or parole imposed under Federal or

25 State law; or
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1 ‘‘(iii) has information that is necessary

2 for the officer to conduct the officer’s official

3 duties;

4 ‘‘(B) the location or apprehension of the re5 cipient is within such officer’s official duties;

6 and

7 ‘‘(C) the request is made in the proper exer8 cise of the officer’s official duties.’’.

9 SEC. 1303. SENSE OF THE SENATE REGARDING ENTERPRISE

10 ZONES.

11 (a) FINDINGS.—The Senate finds that:

12 (1) Many of the Nation’s urban centers are

13 places with high levels of poverty, high rates of wel14 fare dependency, high crime rates, poor schools, and

15 joblessness;

16 (2) Federal tax incentives and regulatory re17 forms can encourage economic growth, job creation

18 and small business formation in many urban centers;

19 (3) Encouraging private sector investment in

20 America’s economically distressed urban and rural

21 areas is essential to breaking the cycle of poverty and

22 the related ills of crime, drug abuse, illiteracy, welfare

23 dependency, and unemployment;

24 (4) The empowerment zones enacted in 1993

25 should be enhanced by providing incentives to in-
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1 crease entrepreneurial growth, capital formation, job

2 creation, educational opportunities, and home owner3 ship in the designated communities and zones.

4 (b) SENSE OF THE SENATE.—Therefore, it is the Sense

5 of the Senate that the Congress should adopt enterprise zone

6 legislation in the One Hundred Fourth Congress, and that

7 such enterprise zone legislation provide the following incen8 tives and provisions:

9 (1) Federal tax incentives that expand access to

10 capital, increase the formation and expansion of

11 small businesses, and promote commercial revitaliza12 tion;

13 (2) Regulatory reforms that allow localities to

14 petition Federal agencies, subject to the relevant agen15 cies’ approval, for waivers or modifications of regula16 tions to improve job creation, small business forma17 tion and expansion, community development, or eco18 nomic revitalization objectives of the enterprise zones;

19 (3) Home ownership incentives and grants to en20 courage resident management of public housing and

21 home ownership of public housing;

22 (4) School reform pilot projects in certain des23 ignated enterprise zones to provide low-income par24 ents with new and expanded educational options for

25 their children’s elementary and secondary schooling.
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1 SEC. 1304. SENSE OF THE SENATE REGARDING THE INABIL2 ITY OF THE NON-CUSTODIAL PARENT TO PAY

3 CHILD SUPPORT.

4 It is the sense of the Senate that—

5 (a) States should diligently continue their efforts to en6 force child support payments by the non-custodial parent

7 to the custodial parent, regardless of the employment status

8 or location of the non-custodial parent; and

9 (b) States are encouraged to pursue pilot programs in

10 which the parents of a non-adult, non-custodial parent who

11 refuses to or is unable to pay child support must—

12 (1) pay or contribute to the child support owed

13 by the non-custodial parent; or

14 (2) otherwise fulfill all financial obligations and

15 meet all conditions imposed on the non-custodial par16 ent, such as participation in a work program or other

17 related activity.

18 SEC. 1305. FOOD STAMP ELIGIBILITY.

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

20 2015(f)) is amended by striking the third sentence and in21 serting the following:

22 ‘‘The State agency shall, at its option, consider either

23 all income and financial resources of the individual ren24 dered ineligible to participate in the food stamp program

25 under this subsection, or such income, less a pro rata share,

26 and the financial resources of the ineligible individual, to
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1 determine the eligibility and the value of the allotment of

2 the household of which such individual is a member.’’.

3 SEC. 1306. SENSE OF THE SENATE ON LEGISLATIVE AC4 COUNTABILITY FOR UNFUNDED MANDATES

5 IN WELFARE REFORM LEGISLATION.

6 (a) FINDINGS.—The Senate finds that the purposes of

7 the Unfunded Mandates Reform Act of 1995 are—

8 (1) to strengthen the partnership between the

9 Federal Government and State, local and tribal gov10 ernments;

11 (2) to end the imposition, in the absence of full

12 consideration by Congress, of Federal mandates on

13 State, local and tribal governments without adequate

14 Federal funding, in a manner that may displace

15 other essential State, local and tribal governmental

16 priorities;

17 (3) to assist Congress in its consideration of pro18 posed legislation establishing or revising Federal pro19 grams containing Federal mandates affecting State,

20 local and tribal governments, and the private sector

21 by—

22 (A) providing for the development of infor23 mation about the nature and size of mandates in

24 proposed legislation; and
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1 (B) establishing a mechanism to bring such

2 information to the attention of the Senate and

3 the House of Representatives before the Senate

4 and the House of Representatives vote on pro5 posed legislation;

6 (4) to promote informed and deliberate decisions

7 by Congress on the appropriateness of Federal man8 dates in any particular instance; and

9 (5) to require that Congress consider whether to

10 provide funding to assist State, local and tribal gov11 ernments in complying with Federal mandates.

12 (b) SENSE OF THE SENATE.—It is the sense of the Sen13 ate that prior to the Senate acting on the conference report

14 on either H.R. 4 or any other legislation including welfare

15 reform provisions, the Congressional Budget Office shall

16 prepare an analysis of the conference report to include—

17 (1) estimates, over each of the next 7 fiscal years,

18 by State and in total, of—

19 (A) the costs to States of meeting all work

20 requirements in the conference report, including

21 those for single-parent families, two-parent fami22 lies, and those who have received cash assistance

23 for 2 years;

24 (B) the resources available to the States to

25 meet these work requirements, defined as Federal
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1 appropriations authorized in the conference re2 port for this purpose in addition to what States

3 are projected to spend under current welfare law;

4 (C) the amount of any additional revenue

5 needed by the States to meet the work require6 ments in the conference report, beyond resources

7 available as defined under subparagraph

8 (b)(1)(B);

9 (2) an estimate, based on the analysis in para10 graph (b)(1), of how many States would opt to pay

11 any penalty provided for by the conference report

12 rather than raise the additional revenue needed to

13 meet the work requirements in the conference report;

14 and

15 (3) estimates, over each of the next 7 fiscal years,

16 of the costs to States of any other requirements im17 posed on them by such legislation.

18 SEC. 1307. SENSE OF THE SENATE REGARDING COMPETI19 TIVE BIDDING FOR INFANT FORMULA.

20 (a) IN GENERAL.—The Senate finds that—

21 (1) the Federal Supplemental Nutrition Program

22 for Women, Infants and Children (WIC) is a proven

23 success story, providing special nutrition and health

24 assistance to at-risk pregnant women, infants and

25 children;
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1 (2) WIC has been shown to reduce the incidence

2 of fetal death, low birthweight, infant mortality and

3 anemia, to increase the nutritional and health status

4 of pregnant women, infants and children and to im5 prove the cognitive development of infants and chil6 dren;

7 (3) research has shown that each dollar spent on

8 WIC for pregnant women results in savings of $1.92

9 to $4.21 in medicaid expenditures;

10 (4) because of funding limitations not all indi11 viduals eligible for WIC assistance are served by the

12 program;

13 (5) infant formula is a significant item in the

14 cost of WIC monthly food packages, amounting to ap15 proximately 26 percent of WIC food costs after sub16 tracting manufacturer’s rebates, but approximately

17 48 percent of food costs prior to applying rebates;

18 (6) rebates obtained through competitive bidding

19 for infant formula have reduced the cost of infant for20 mula for WIC participants by approximately

21 $4,100,000,000 through the end of fiscal year 1994,

22 allowing millions of additional pregnant women, in23 fants and children to be served by WIC with the lim24 ited funds available;
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1 (7) the Department of Agriculture has estimated

2 that in fiscal year 1995 rebates obtained through com3 petitive bidding for infant formula will total over

4 $1,000,000,000, which will enable WIC to serve ap5 proximately 1,600,000 additional women, infants and

6 children; and

7 (8) because of the very substantial cost savings

8 involved, Congress enacted in 1989 legislation requir9 ing that States administering the WIC program con10 duct competitive bidding for infant formula.

11 (b) SENSE OF THE SENATE.—It is the sense of the Sen12 ate that any legislation enacted by Congress should not

13 eliminate or in any way weaken the present competitive

14 bidding requirements for the purchase of infant formula

15 with respect to any program supported wholly or in part

16 by Federal funds.

17 SEC. 1308. ESTABLISHING NATIONAL GOALS TO PREVENT

18 TEENAGE PREGNANCIES.

19 (a) IN GENERAL.—Not later than January 1, 1997,

20 the Secretary of Health and Human Services shall establish

21 and implement a strategy for—

22 (1) preventing an additional 2 percent of out-of23 wedlock teenage pregnancies a year, and
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1 (2) assuring that at least 25 percent of the com2 munities in the United States have teenage pregnancy

3 prevention programs in place.

4 (b) REPORT.—Not later than June 30, 1998, and an5 nually thereafter, the Secretary shall report to the Congress

6 with respect to the progress that has been made in meeting

7 the goals described in paragraphs (1) and (2) of subsection

8 (a).

9 (c) OUT-OF-WEDLOCK AND TEENAGE PREGNANCY

10 PREVENTION PROGRAMS.—Section 2002 of the Social Secu11 rity Act (42 U.S.C. 1397a) is amended by adding at the

12 end the following new subsection:

13 ‘‘(2) The Secretary shall conduct a study with respect

14 to the State programs implemented under paragraph (1)

15 to determine the relative effectiveness of the different ap16 proaches for preventing out-of-wedlock and teenage preg17 nancy utilized in the programs conducted under this sub18 section and the approaches that can be best replicated by

19 other States.

20 ‘‘(3) Each State conducting a program under this sub21 section shall provide to the Secretary, in such form and

22 with such frequency as the Secretary requires, data from

23 the programs conducted under this subsection. The Sec24 retary shall report to the Congress annually on the progress

25 of the programs and shall, not later than June 30, 1998,
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1 submit to the Congress a report on the study required under

2 paragraph (2).’’.

3 SEC. 1309. SENSE OF THE SENATE REGARDING ENFORCE4 MENT OF STATUTORY RAPE LAWS.

5 It is the sense of the Senate that States and local juris6 dictions should aggressively enforce statutory rape laws.

7 SEC. 1310. SANCTIONING FOR TESTING POSITIVE FOR CON8 TROLLED SUBSTANCES.

9 Notwithstanding any other provision of law, States

10 shall not be prohibited by the Federal Government from

11 sanctioning welfare recipients who test positive for use of

12 controlled substances.

13 SEC. 1311. ABSTINENCE EDUCATION.

14 (a) INCREASES IN FUNDING.—Section 501(a) of the

15 Social Security Act (42 U.S.C. 701(a)) is amended in the

16 matter preceding paragraph (1) by striking ‘‘Fiscal year

17 1990 and each fiscal year thereafter’’ and inserting ‘‘Fiscal

18 years 1990 through 1995 and $761,000,000 for fiscal year

19 1996 and each fiscal year thereafter’’.

20 (b) ABSTINENCE EDUCATION.—Section 501(a)(1) of

21 such Act (42 U.S.C. 701(a)(1)) is amended—

22 (1) in subparagraph (C), by striking ‘‘and’’ at

23 the end;

24 (2) in subparagraph (D), by adding ‘‘and’’ at

25 the end; and
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1 (3) by adding at the end the following new sub2 paragraph:

3 ‘‘(E) to provide abstinence education, and

4 at the option of the State, where appropriate,

5 mentoring, counseling, and adult supervision to

6 promote abstinence from sexual activity, with a

7 focus on those groups which are most likely to

8 bear children out-of-wedlock.’’.

9 (c) ABSTINENCE EDUCATION DEFINED.—Section

10 501(b) of such Act (42 U.S.C. 701(b)) is amended by adding

11 at the end the following new paragraph:

12 ‘‘(5) ABSTINENCE EDUCATION.—For purposes of

13 this subsection, the term ‘abstinence education’ shall

14 mean an educational or motivational program

15 which—

16 ‘‘(A) has as its exclusive purpose, teaching

17 the social, psychological, and health gains to be

18 realized by abstaining from sexual activity;

19 ‘‘(B) teaches abstinence from sexual activity

20 outside marriage as the expected standard for all

21 school age children;

22 ‘‘(C) teaches that abstinence from sexual ac23 tivity is the only certain way to avoid out-of24 wedlock pregnancy, sexually transmitted dis25 eases, and other associated health problems;
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1 ‘‘(D) teaches that a mutually faithful

2 monogamous relationship in context of marriage

3 is the expected standard of human sexual activ4 ity;

5 ‘‘(E) teaches that sexual activity outside of

6 the context of marriage is likely to have harmful

7 psychological and physical effects;

8 ‘‘(F) teaches that bearing children out-of9 wedlock is likely to have harmful consequences

10 for the child, the child’s parents, and society;

11 ‘‘(G) teaches young people how to reject sex12 ual advances and how alcohol and drug use in13 creases vulnerability to sexual advances; and

14 ‘‘(H) teaches the importance of attaining

15 self-sufficiency before engaging in sexual activ16 ity.’’.

17 (d) SET-ASIDE.—

18 (1) IN GENERAL.—Section 502(c) of such Act (42

19 U.S.C. 702(c)) is amended in the matter preceding

20 paragraph (1) by striking ‘‘From’’ and inserting

21 ‘‘Except as provided in subsection (e), from’’.

22 (2) SET-ASIDE.—Section 502 of such Act (42

23 U.S.C. 702) is amended by adding at the end the fol24 lowing new subsection:
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1 ‘‘(e) Of the amounts appropriated under section 501(a)

2 for any fiscal year, the Secretary shall set aside $75,000,000

3 for abstinence education in accordance with section

4 501(a)(1)(E).

Amend the title so as to read: ‘‘An Act to enhance

support and work opportunities for families with children,

reduce welfare dependence, and control welfare spending.’’.

Attest:

Secretary.
104TH CONGRESS

1ST SESSION H. R. 4

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