I

104TH CONGRESS

1ST SESSION H. R. 759

To improve the effectiveness of Federal welfare efforts and increase citizen

participation in fighting poverty.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 31, 1995

Mr. KNOLLENBERG (for himself, Mr. KOLBE, Mr. SMITH of Texas, and Mr.

ISTOOK) introduced the following bill; which was referred to the Committee on Ways and Means and, in addition, to the Committees on Agriculture, Commerce, Economic and Educational Opportunities, Banking

and Financial Services, the Judiciary, Resources, and Rules, for a period

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee

concerned

A BILL

To improve the effectiveness of Federal welfare efforts and

increase citizen participation in fighting poverty.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Common Sense

5 Welfare Reform Act of 1995’’.
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1 TITLE I—CAPPING THE AGGRE2 GATE GROWTH OF WELFARE

3 SPENDING

4 SEC. 101. CAP ON GROWTH OF FEDERAL SPENDING ON

5 CERTAIN WELFARE PROGRAMS.

6 (a) RESTRICTIONS ON SPENDING.—The total amount

7 of Federal spending for a fiscal year for the programs list8 ed in subsection (b) shall not exceed—

9 (1) in fiscal year 1996, an amount equal to the

10 sum of—

11 (A) the total Federal spending for fiscal

12 year 1995 on the programs listed in section

13 103;

14 (B) the total Federal spending for fiscal

15 year 1995 on the Head Start programs carried

16 out under the Head Start Act;

17 (C) the total Federal spending for fiscal

18 year 1995 on cash, medical, and social services

19 assistance furnished to refugees and entrants

20 under title IV of the Immigration and National21 ity Act and section 501 of the Refugee Edu22 cation Assistance Act of 1980; and

23 (D) the total Federal spending for fiscal

24 year 1995 on the special supplemental food pro25 gram for women, infants, and children carried
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1 out under section 17 of the Child Nutrition Act

2 of 1966; and

3 (2) in fiscal year 1997 and succeeding fiscal

4 years, an amount equal to the sum of—

5 (A) the total Federal spending permitted

6 under this subsection for the preceding fiscal

7 year; and

8 (B) an adjustment for inflation.

9 The inflator used in the preceding sentence shall be

10 the percent by which the average of the estimated

11 gross national product fixed-weight price index for

12 that fiscal year differs from the average of such esti13 mated index for the preceding fiscal year.

14 (b) PROGRAMS SUBJECT TO SPENDING LIMIT.—The

15 programs listed in this subsection are the following:

16 (1) The welfare block grant program estab17 lished under section 102.

18 (2) The Head Start programs carried out under

19 the Head Start Act.

20 (3) The cash, medical, and social services as21 sistance programs for refugees and entrants under

22 title IV of the Immigration and Nationality Act and

23 section 501 of the Refugee Education Assistance Act

24 of 1980.
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1 (4) The special supplemental food program for

2 women, infants, and children carried out under sec3 tion 17 of the Child Nutrition Act of 1966.

4 (5) The programs providing general assistance

5 to Indians under the Act of November 12, 1921 (25

6 U.S.C. 13; commonly known as the ‘‘Snyder Act’’).

7 (6) The programs providing Indian health serv8 ices under the Indian Health Care Improvement Act

9 (25 U.S.C. 1601 et seq.).

10 (7) The programs providing Indian housing im11 provement grants.

12 (8) The programs providing Indian and Native

13 American employment training.

14 (c) RECONCILIATION OF GROWTH LIMITS.—

15 (1) ALLOCATIONS.—The joint explanatory

16 statement accompanying a conference report on a

17 concurrent resolution on the budget described in sec18 tion 301 of the Congressional Budget Act of 1974

19 for a fiscal year shall include allocations to each

20 committee based on the spending cap imposed by

21 subsection (a) for such fiscal year.

22 (2) RECONCILIATION DIRECTIVES.—The rec23 onciliation directives described in section 310 of the

24 Congressional Budget Act of 1974 shall specify re25 ductions for each committee necessary to comply
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1 with the spending caps imposed by subsection (a) for

2 such fiscal year.

3 (3) CONSULTATION WITH COMMITTEES.—In

4 conducting any activities required under paragraphs

5 (1) and (2), the Committees on the Budget of the

6 House of Representatives and the Senate shall con7 sult with the following committees of Congress:

8 (A) The Committee on Ways and Means of

9 the House of Representatives.

10 (B) The Committee on Finance of the

11 Senate.

12 (C) The Committee on Agriculture of the

13 House of Representatives.

14 (D) The Committee on Agriculture, Nutri15 tion, and Forestry of the Senate.

16 (E) The Committee on Economic Oppor17 tunity of the House of Representatives.

18 (F) The Committee on Labor and Human

19 Resources of the Senate.

20 (G) The Committee on Banking and Fi21 nancial Services of the House of Representa22 tives.

23 (H) The Committee on Banking, Housing,

24 and Urban Affairs of the Senate.
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1 (I) The Committee on Commerce of the

2 House of Representatives.

3 (J) The Committee on Resources of the

4 House of Representatives.

5 SEC. 102. WELFARE BLOCK GRANT PROGRAM.

6 (a) ENTITLEMENT.—Each State shall be entitled to

7 receive from the Secretary of the Treasury for each fiscal

8 year an amount equal to the welfare block grant amount

9 payable to the State for the fiscal year.

10 (b) DEFINITIONS.—As used in subsection (a):

11 (1) WELFARE BLOCK GRANT AMOUNT.—The

12 term ‘‘welfare block grant amount’’ means, with re13 spect to a State and a fiscal year, an amount equal

14 to the amount described by subparagraph (A) multi15 plied by the amount described by subparagraph (B).

16 (A) WELFARE FUNDS AVAILABLE TO THE

17 STATE.—The amount described by this sub18 paragraph is the amount described in clause (i)

19 reduced by the amount described by clause (ii).

20 (i) STATE SHARE OF FEDERAL WEL21 FARE EXPENDITURES DURING FISCAL

22 YEAR 1995.—The amount described by this

23 clause is the amount described by

24 subclause (I) multiplied by the amount de25 scribed by subclause (II).
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1 (I) FEDERAL WELFARE EXPEND2 ITURES DURING FISCAL YEAR 1995.—

3 The amount described by this

4 subclause is the aggregate of the

5 amounts expended during fiscal year

6 1995 under the provisions of law re7 pealed by section 103 and the pro8 grams eliminated by the amendments

9 made by subsections (c)(4) and (h)(8)

10 of section 103, as such provisions of

11 law and programs are in effect on

12 September 30, 1995.

13 (II) STATE SHARE.—The amount

14 described by this subclause is the ag15 gregate of the amounts paid to the

16 State during fiscal year 1995 under

17 such provisions of law and programs,

18 divided by the aggregate of the

19 amounts paid to all States during fis20 cal year 1995 under such provisions

21 of law and programs.

22 (ii) REDUCTION IN FEDERAL REVE23 NUES DUE TO CHARITABLE CONTRIBU24 TIONS TAX CREDITS ALLOWED TO CERTAIN

25 INDIVIDUALS DOMICILED IN THE STATE.—
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1 The amount described by this clause is the

2 amount (if any) by which Federal revenues

3 are reduced for the fiscal year as a result

4 of credits allowed by section 23 of the In5 ternal Revenue Code of 1986 to individuals

6 who were domiciled in the State at the

7 time the charitable contribution in respect

8 of which the credit is allowed was made.

9 (B) INFLATION ADJUSTMENT.—The

10 amount described by this subparagraph is the

11 sum of 1 and the percentage (if any) by

12 which—

13 (i) the average of the Consumer Price

14 Index (as defined in section 1(f)(5) of the

15 Internal Revenue Code of 1986) for the

16 most recent 12-month period for which

17 such Index is available; exceeds

18 (ii) the average of such Index for the

19 corresponding 12-month period that ended

20 the applicable number of years earlier.

21 (2) APPLICABLE NUMBER OF YEARS.—The

22 term ‘‘applicable number of years’’ means the num23 ber of whole fiscal years that have elapsed since the

24 end of fiscal year 1995.
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1 (3) STATE.—The term ‘‘State’’ includes the

2 District of Columbia, the Commonwealth of Puerto

3 Rico, the Commonwealth of the Northern Mariana

4 Islands, the United States Virgin Islands, Guam,

5 American Samoa, and the Trust Territory of the

6 Pacific Islands.

7 (c) AMOUNT AND TIMING OF GRANT PAYMENTS.—

8 The Secretary of the Treasury shall make the payments

9 required by subsection (a) at such times and in such man10 ner as the Secretary deems appropriate from the revolving

11 fund established under subsection (f).

12 (d) USE OF FUNDS.—Each State to which funds are

13 provided under this section shall use such funds to provide

14 assistance to individuals and families whose incomes do

15 not exceed 150 percent of the income official poverty line

16 (as defined by the Office of Management and Budget, and

17 revised annually in accordance with section 673(2) of the

18 Omnibus Budget Reconciliation Act of 1981) applicable

19 to a family of the size involved.

20 (e) COMPLIANCE WITH CIVIL RIGHTS LAWS RE21 QUIRED.—Each State to which funds are provided under

22 this section shall not violate any requirement established

23 by statute or regulation under the following Acts in pro24 viding aid using funds provided under this section:

25 (1) Title VI of the Civil Rights Act of 1965.
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1 (2) Section 504 of the Rehabilitation Act of

2 1973.

3 (3) Title IX of the Education Amendments of

4 1972.

5 (4) The Age Discrimination Act of 1975.

6 (5) The Americans with Disabilities Act of

7 1990.

8 (f) REVOLVING FUND.—

9 (1) CREATION.—There is hereby established in

10 the Treasury of the United States a revolving fund

11 which shall be known as the ‘‘Welfare Revolving

12 Fund’’, consisting of such amounts as may be appro13 priated to the revolving fund.

14 (2) LIMITATIONS ON AUTHORIZATION OF AP15 PROPRIATIONS.—There are authorized to be appro16 priated to the revolving fund for each fiscal year an

17 amount equal to the amount described by subsection

18 (b)(1)(A)(i)(I) for the fiscal year, multiplied by the

19 amount described by subsection (b)(1)(B) for the

20 fiscal year.

21 (3) PAYMENT OF COST OF CREDIT FOR CHARI22 TABLE CONTRIBUTIONS TO CERTAIN PRIVATE CHAR23 ITIES PROVIDING ASSISTANCE TO THE POOR.—On

24 July 15 of each fiscal year, the Secretary of the

25 Treasury shall make a payment to the Treasury of
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1 the United States from the revolving fund of an

2 amount equal to the amount (if any) by which Fed3 eral revenues are reduced for the fiscal year as a re4 sult of the amendments made by section 201(a).

5 (4) PAYMENT OF WELFARE BLOCK GRANT.—

6 Except as provided in paragraph (3), amounts in the

7 revolving fund shall be available, as provided in ap8 propriation Acts, only for the payment of grants

9 under subsection (a).

10 (g) SUNSET.—This section shall have no force or ef11 fect at the end of the 5-year period that begins with the

12 effective date of this title.

13 SEC. 103. ELIMINATION OF CERTAIN WELFARE PROGRAMS.

14 (a) CASH AID.—

15 (1) AFDC.—Part A of title IV of the Social Se16 curity Act, except sections 403(h) and 417, (42

17 U.S.C. 601–617) is repealed.

18 (2) SSI.—Title XVI of the Social Security Act,

19 as in effect pursuant to the amendment made by

20 section 301 of the Social Security Amendments of

21 1972, (42 U.S.C. 1381–1383d) is repealed.

22 (3) FOSTER CARE AND ADOPTION ASSISTANCE

23 PROGRAMS.—Part E of title IV of the Social Secu24 rity Act (42 U.S.C. 470–479) is repealed.
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1 (4) GRANTS TO TERRITORIES FOR AID TO THE

2 AGED.—Title I of the Social Security Act (42 U.S.C.

3 301–306) is repealed.

4 (5) GRANTS TO TERRITORIES FOR AID TO THE

5 BLIND.—Title X of the Social Security Act (42

6 U.S.C. 1201–1206) is repealed.

7 (6) GRANTS TO TERRITORIES FOR AID TO THE

8 TOTALLY DISABLED.—Title XIV of the Social Secu9 rity Act (42 U.S.C. 1351–1355) is repealed.

10 (7) GRANTS TO TERRITORIES FOR AID TO THE

11 AGED, BLIND, OR DISABLED.—Title XVI of the So12 cial Security Act, as in effect without regard to the

13 amendment made by section 301 of the Social Secu14 rity Amendments of 1972, (42 U.S.C. 1381 note,

15 1382 note, and 1383 note, 1384 note, and 1385

16 note) is repealed.

17 (b) MEDICAL AID.—

18 (1) MATERNAL AND CHILD HEALTH SERVICES

19 BLOCK GRANT PROGRAM.—Title V of the Social Se20 curity Act (42 U.S.C. 701–709) is repealed.

21 (2) COMMUNITY HEALTH CENTERS.—Section

22 330 of the Public Health Service Act (42 U.S.C.

23 254c) is repealed.
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1 (3) MIGRANT HEALTH CENTERS.—Section 329

2 of the Public Health Service Act (42 U.S.C. 254b)

3 is repealed.

4 (c) FOOD AID.—

5 (1) FOOD STAMP PROGRAM.—The Food Stamp

6 Act of 1977 (7 U.S.C. 2011 et seq.) is repealed.

7 (2) SCHOOL LUNCH PROGRAM.—Sections 4, 6,

8 and 11 of the National School Lunch Act (42 U.S.C.

9 1753, 1755, and 1759a) are repealed.

10 (3) EMERGENCY FOOD ASSISTANCE PRO11 GRAM.—The Emergency Food Assistance Act of

12 1983 (7 U.S.C. 612c note) is repealed.

13 (4) NUTRITION PROGRAMS FOR THE ELDER14 LY.—The Older Americans Act of 1965 (42 U.S.C.

15 3001 et seq.) is amended—

16 (A) in section 205(a)—

17 (i) by striking paragraph (2), and

18 (ii) in paragraph (1)—

19 (I) by striking ‘‘(1)’’, and

20 (II) by redesignating subpara21 graphs (A), (B), and (C) as para22 graphs (1), (2), and (3), respectively,

23 and

24 (B) in section 303 by striking subsections

25 (b) and (c),
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1 (C) in section 304—

2 (i) in subsection (b) by striking ‘‘or

3 C’’, and

4 (ii) in subsection (d)(1)(D) by striking

5 ‘‘, senior centers, and nutrition services’’

6 and inserting ‘‘and senior centers’’,

7 (D) in section 306(a)(1) by striking ‘‘, nu8 trition services,’’ each place it appears,

9 (E) in section 307(a) by striking para10 graph (13),

11 (F) in section 308—

12 (i) in subsection (b) by striking para13 graphs (4), (5), (6), and (7), and

14 (ii) by striking subsection (c),

15 (G) in title III by striking part C,

16 (H) in section 422(10)(ii) by striking sub17 paragraph (IV),

18 (I) in section 429B(d) by striking para19 graph (1), and

20 (J) in section 614(a) by striking paragraph

21 (8).

22 (5) SCHOOL BREAKFAST PROGRAM.—Section 4

23 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)

24 is repealed.
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1 (6) CHILD AND ADULT CARE FOOD PROGRAM.—

2 Section 17 of the National School Lunch Act (42

3 U.S.C. 1766) is repealed.

4 (7) SUMMER FOOD SERVICE PROGRAM FOR

5 CHILDREN.—Section 13 of the National School

6 Lunch Act (42 U.S.C. 1761) is repealed.

7 (8) COMMODITY SUPPLEMENTAL FOOD PRO8 GRAM FOR CHILDREN AND THE ELDERLY.—Sections

9 4 and 5 of the Agriculture and Consumer Protection

10 Act of 1973 (7 U.S.C. 612c note) are repealed.

11 (9) SPECIAL MILK PROGRAM.—Section 3 of the

12 Child Nutrition Act of 1966 (42 U.S.C. 1772) is re13 pealed.

14 (d) HOUSING AID.—

15 (1) SECTION 8 RENTAL ASSISTANCE AND PUB16 LIC HOUSING.—Title I of the United States Housing

17 Act of 1937 (42 U.S.C. 1437 et seq.) is repealed.

18 (2) RURAL SINGLE FAMILY HOUSING LOANS.—

19 Section 502 of the Housing Act of 1949 (42 U.S.C.

20 1472) is repealed.

21 (3) SECTION 236 INTEREST REDUCTION ASSIST22 ANCE.—Section 236 of the National Housing Act

23 (12 U.S.C. 1715z–1) is repealed.
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1 (4) RURAL RENTAL HOUSING ASSISTANCE.—

2 Section 515 of the Housing Act of 1949 (42 U.S.C.

3 1485) is repealed.

4 (5) RURAL RENTAL ASSISTANCE PAYMENTS.—

5 Paragraph (2) of section 521(a) of the Housing Act

6 of 1949 (42 U.S.C. 1490a(a)(2)) is repealed.

7 (6) SECTION 235 HOMEOWNERSHIP ASSIST8 ANCE.—Section 235 of the National Housing Act

9 (12 U.S.C. 1715z) is repealed.

10 (7) RENT SUPPLEMENT ASSISTANCE.—Section

11 101 of the Housing and Urban Development Act of

12 1968 (12 U.S.C. 1701s) is repealed.

13 (8) RURAL HOUSING REPAIR ASSISTANCE.—

14 Section 504 of the Housing Act of 1949 (42 U.S.C.

15 1474) is repealed.

16 (9) FARM LABOR HOUSING LOANS.—Section

17 514 of the Housing Act of 1949 (42 U.S.C. 1483)

18 is repealed.

19 (10) RURAL HOUSING SELF-HELP TECHNICAL

20 ASSISTANCE.—Section 523 of the Housing Act of

21 1949 (42 U.S.C. 1490c) is repealed.

22 (11) FARM LABOR HOUSING GRANTS.—Section

23 516 of the Housing Act of 1949 (42 U.S.C. 1486)

24 is repealed.
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1 (12) RURAL HOUSING PRESERVATION

2 GRANTS.—Section 533 of the Housing Act of 1949

3 (42 U.S.C. 1490m) is repealed.

4 (e) ENERGY AID.—

5 (1) LOW-INCOME HOME ENERGY ASSISTANCE

6 PROGRAMS.—The Low-Income Home Energy Assist7 ance Act of 1981 (42 U.S.C. 8621–8629) is re8 pealed.

9 (2) WEATHERIZATION ASSISTANCE PROGRAM.—

10 Part A of title IV of the Energy Conservation and

11 Production Act (42 U.S.C. 6861–6872), and the

12 items relating thereto in the table of contents of

13 such Act, are repealed.

14 (f) EDUCATION AID.—

15 (1) Subpart 1 of part A of title IV of the High16 er Education Act of 1965 (20 U.S.C. 1070a), relat17 ing to Pell grants, is repealed.

18 (2) Subpart 1 of part A of title I of the Ele19 mentary and Secondary Education Act of 1965 (20

20 U.S.C. 6311 et seq.) is repealed.

21 (3) Subpart 3 of part A of title IV of the High22 er Education Act of 1965 (20 U.S.C. 1070b–1 et

23 seq.), relating to Federal supplemental educational

24 opportunity grants, is repealed.
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1 (4) Part C of title I of the Elementary and Sec2 ondary Education Act of 1965 (20 U.S.C. 6391 et

3 seq.) is repealed.

4 (5) Chapter 1 of subpart 2 of part A of title IV

5 of the Higher Education Act of 1965 (20 U.S.C.

6 1070a–11 to 1070a–18), relating to Federal TRIO

7 programs, is repealed.

8 (6) Subpart 4 of part A of title IV of the High9 er Education Act of 1965 (20 U.S.C. 1070c et seq.),

10 relating to grants to States for State student incen11 tives, is repealed.

12 (7) Part A of title IX of the Higher Education

13 Act of 1965 (20 U.S.C. 1134a et seq.), relating to

14 grants to institutions and consortia to encourage

15 women and minority participation in graduate edu16 cation, is repealed.

17 (g) JOBS AND TRAINING AID.—

18 (1) ADULT TRAINING PROGRAM.—Part A of

19 title II of the Job Training Partnership Act (29

20 U.S.C. 1601 et seq.) is repealed.

21 (2) SUMMER YOUTH EMPLOYMENT AND TRAIN22 ING PROGRAM.—Part B of title II of the Job Train23 ing Partnership Act (29 U.S.C. 1630 et seq.) is re24 pealed.
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1 (3) JOB CORPS.—Part B of title IV of the Job

2 Training Partnership Act (29 U.S.C. 1691 et seq.)

3 is repealed.

4 (4) OLDER AMERICAN COMMUNITY SERVICE EM5 PLOYMENT PROGRAM.—Title V of the Older Ameri6 cans Act of 1965 (42 U.S.C. 501–511) is repealed.

7 (5) JOBS PROGRAM.—Part F of title IV of the

8 Social Security Act (42 U.S.C. 681–687) is repealed.

9 (6) NATIVE AMERICANS AND MIGRANT AND

10 SEASONAL FARMWORKERS PROGRAMS.—Sections

11 401 and 402 of the Job Training Partnership Act

12 (29 U.S.C. 1671 and 1672) are repealed.

13 (h) SOCIAL SERVICES.—

14 (1) BLOCK GRANTS TO STATES FOR SOCIAL

15 SERVICES.—Title XX of the Social Security Act (42

16 U.S.C. 1397–1397f) is repealed.

17 (2) COMMUNITY SERVICES BLOCK GRANT PRO18 GRAM.—The Community Services Block Grant Act

19 (42 U.S.C. 9901), other than sections 671 and 673

20 of such Act, is repealed.

21 (3) LEGAL SERVICES.—The Legal Services Cor22 poration Act of 1974 (42 U.S.C. 2996 et seq.) is

23 repealed.

24 (4) FEMA EMERGENCY FOOD AND SHELTER

25 PROGRAM.—Title III of the Stewart B. McKinney
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1 Homeless Assistance Act (42 U.S.C. 11331 et seq.)

2 is repealed.

3 (5) RESEARCH REGARDING FAMILY PLANNING

4 AND POPULATION ISSUES.—Section 1004 of the

5 Public Health Service Act (42 U.S.C. 300a–2) is

6 repealed.

7 (6) VOLUNTARY FAMILY PLANNING

8 PROJECTS.—Section 1001 of the Public Health

9 Service Act (42 U.S.C. 300) is repealed.

10 (7) DOMESTIC VOLUNTEER SERVICE ACT.—The

11 Domestic Volunteer Service Act of 1973 (42 U.S.C.

12 4950 et seq.) is repealed.

13 (8) SUPPORTIVE SERVICES FOR OLDER INDI14 VIDUALS.—The Older Americans Act of 1965 (42

15 U.S.C. 3301 et seq.) is amended—

16 (A) in section 102(44) by striking ‘‘means

17 a service described in section 321(a)’’ and in18 serting the following:

19 ‘‘means—

20 ‘‘(A) a health (including mental health),

21 education and training, welfare, informational,

22 recreational, homemaker, counseling, or referral

23 service;
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1 ‘‘(B) a transportation service to facilitate

2 access to a supportive services or a nutrition

3 service, or both;

4 ‘‘(C) a service designed to encourage and

5 assist older individuals to use the facilities and

6 services (including an information and assist7 ance service) available to them, including a lan8 guage translation service to assist older individ9 uals with limited-English speaking ability to ob10 tain a service under this title;

11 ‘‘(D) a service designed (i) to assist older

12 individuals to obtain adequate housing, includ13 ing residential repair and renovation projects

14 designed to enable older individuals to maintain

15 their homes in conformity with minimum hous16 ing standards; (ii) to adapt homes to meet the

17 needs of older individuals who have physical

18 disabilities; (iii) to prevent unlawful entry into

19 residences of older individuals, through the in20 stallation of security devices and through struc21 tural modifications or alterations of such resi22 dences; or (iv) to receive applications from older

23 individuals for housing under section 202 of the

24 Housing Act of 1959 (12 U.S.C. 1701Q);
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1 ‘‘(E) a service designed to assist older indi2 viduals in avoiding institutionalization and to

3 assist individuals in long-term care institutions

4 who are able to return to their communities, in5 cluding client assessment through case manage6 ment and integration and coordination of com7 munity services such as preinstitution evalua8 tion and screening and home health services,

9 homemaker services, shopping services, escort

10 services, reader services, and letter writing serv11 ices, through resource development and man12 agement to assist such individuals to live inde13 pendently in a home environment;

14 ‘‘(F) a service designed to provide to older

15 individuals legal assistance and another coun16 seling service or assistance, including—

17 ‘‘(i) tax counseling and assistance, fi18 nancial counseling, and counseling regard19 ing appropriate health and life insurance

20 coverage;

21 ‘‘(ii) representation—

22 ‘‘(I) of individuals who are wards

23 (or are allegedly incapacitated); or

24 ‘‘(II) in guardianship proceedings

25 of older individuals who seek to be-
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1 come guardians, if other adequate

2 representation is unavailable in the

3 proceedings; or

4 ‘‘(iii) provision, to older individuals

5 who provide uncompensated care to their

6 adult children with disabilities, of counsel7 ing to assist such older individuals with

8 permanency planning for such children;

9 ‘‘(G) a service designed to enable older in10 dividuals to attain and maintain physical and

11 mental well-being through programs of regular

12 physical activity, exercise, music therapy, art

13 therapy, and dance-movement therapy;

14 ‘‘(H) a service designed to provide health

15 screening to detect or prevent illnesses, or both,

16 that occur most frequently in older individuals;

17 ‘‘(I) a service designed to provide, for older

18 individuals, preretirement counseling and assist19 ance in planning for and assessing future post20 retirement needs with regard to public and pri21 vate insurance, public benefits, lifestyle

22 changes, relocation, legal matters, leisure time,

23 and other appropriate matters;

24 ‘‘(J) a service of an ombudsman at the

25 State level to receive, investigate, and act on
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1 complaints by older individuals who are resi2 dents of long-term care facilities and to advo3 cate for the well-being of such individuals;

4 ‘‘(K) a service designed to meet the unique

5 needs of older individuals who are disabled, and

6 of older individuals who provide uncompensated

7 care to their adult children with disabilities;

8 ‘‘(L) a service to encourage the employ9 ment of older workers, including job and second

10 career counseling and, where appropriate, job

11 development, referral, and placement;

12 ‘‘(M) a crime prevention service or a victim

13 assistance program for older individuals;

14 ‘‘(N) a program, to be known as ‘Senior

15 Opportunities and Services’, designed to iden16 tify and meet the needs of low-income older in17 dividuals in one or more of the following areas:

18 (A) development and provision of new volunteer

19 services; (B) effective referral to existing health,

20 employment, housing, legal, consumer, trans21 portation, and other services; (C) stimulation

22 and creation of additional services and pro23 grams to remedy gaps and deficiencies in pres24 ently existing services and programs; and (D)

25 such other services as the Assistant Secretary
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1 may determine are necessary or especially ap2 propriate to meet the needs of low-income older

3 individuals and to assure them greater self4 sufficiency;

5 ‘‘(O) a service for the prevention of abuse

6 of older individuals in accordance with chapter

7 3 of subtitle A of title VII and section

8 307(a)(16);

9 ‘‘(P) inservice training and State leader10 ship for legal assistance activities;

11 ‘‘(Q) a health and nutrition education serv12 ice, including information concerning preven13 tion, diagnosis, treatment, and rehabilitation of

14 age-related diseases and chronic disabling con15 ditions;

16 ‘‘(R) a service designed to enable mentally

17 impaired older individuals to attain and main18 tain emotional well-being and independent living

19 through a coordinated system of support serv20 ices;

21 ‘‘(S) a service designed to support family

22 members and other persons providing voluntary

23 care to older individuals that need long-term

24 care services;
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1 ‘‘(T) a service designed to provide informa2 tion and training for individuals who are or

3 may become guardians or representative payees

4 of older individuals, including information on

5 the powers and duties of guardians and rep6 resentative payees and on alternatives to

7 guardianships;

8 ‘‘(U) a service to encourage and facilitate

9 regular interaction between school-age children

10 and older individuals, including visits in long11 term care facilities, multipurpose senior centers,

12 and other settings; or

13 ‘‘(V) any other service;

14 if such service meets standards prescribed by the As15 sistant Secretary and are necessary for the general

16 welfare of older individuals. For purposes of sub17 paragraph (E), the term ‘client assessment through

18 case management’ includes providing information re19 lating to assistive technology.’’,

20 (B) in section 207(c)(4) by striking ‘‘sup21 portive services and’’,

22 (C) in section 301(a)(1) by striking ‘‘, and

23 for the provision of,’’,

24 (D) by striking section 303(a)—

25 (E) in section 304—
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1 (i) by striking subsection (b), and

2 (ii) in subsection (d)(1)—

3 (I) by striking subparagraph (C),

4 and

5 (II) by striking subparagraph

6 (D),

7 (F) in section 306(a)—

8 (i) by striking paragraphs (1) and (2),

9 and

10 (ii) in paragraph (6) by striking sub11 paragraphs (L) and (M),

12 (G) in section 307(a)—

13 (i) in paragraph (10) by striking

14 ‘‘supportive services,’’, and

15 (ii) by striking paragraphs (14) and

16 (22),

17 (H) in title III by striking part B,

18 (I) in section 422(b)(11)(A)(ii)(V) by

19 striking ‘‘section 321(a)(21)’’ and inserting

20 ‘‘section 102(44)(U)’’,

21 (J) in section 429D(b)(1) by striking

22 ‘‘under part B of title III,’’, and

23 (K) in section 429(H)(a) by striking para24 graph (3).

25 (i) COMMUNITY AID.—
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1 (1) COMMUNITY DEVELOPMENT BLOCK GRANTS

2 AND URBAN DEVELOPMENT ACTION GRANTS.—Title

3 I of the Housing and Community Development Act

4 of 1974 (42 U.S.C. 5301 et seq.) is repealed.

5 (2) APPALACHIAN REGIONAL DEVELOPMENT

6 PROGRAM.—The Appalachian Regional Development

7 Commission is terminated and the Appalachian Re8 gional Development Act of 1965 (40 U.S.C. App. 1

9 et seq.) is repealed.

10 SEC. 104. SAVINGS FROM WELFARE SPENDING LIMITS TO

11 BE USED FOR DEFICIT REDUCTION.

12 (a) DEFICIT REDUCTION.—All savings to the Federal

13 Government resulting from the spending cap imposed

14 under section 101 shall be used for deficit reduction. Such

15 savings shall not be used to fund increased spending under

16 any programs that are not subject to the spending cap.

17 (b) TREATMENT ON THE PAYGO SCORECARD.—None

18 of the budgetary effects resulting from the enactment of

19 this title shall be counted for purposes of section 252 of

20 the Balanced Budgetary and Emergency Deficit Control

21 Act of 1985.

22 SEC. 105. TRANSFER OF CERTAIN PROVISIONS.

23 (a) PENALTIES FOR SUBSTANTIAL NONCOMPLIANCE

24 WITH STATE PLAN FOR CHILD AND SPOUSAL SUP25 PORT.—
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1 (1) IN GENERAL.—Section 403(h) of such Act

2 (42 U.S.C. 603(h)) is hereby transferred to section

3 455 of such Act, inserted after subsection (b) of

4 such section 455, and redesignated as subsection (c).

5 (2) CONFORMING AMENDMENTS.—

6 (A) Section 455(c) of such Act (42 U.S.C.

7 655(c)), as added by paragraph (1) of this sub8 section, is amended—

9 (i) in paragraph (1)—

10 (I) by striking ‘‘Act’’ and insert11 ing ‘‘part’’;

12 (II) by striking ‘‘part D’’ and in13 serting ‘‘this part’’; and

14 (III) by striking ‘‘such part’’ and

15 inserting ‘‘this part’’; and

16 (ii) by striking paragraph (3).

17 (B) Section 452(a)(4) of such Act (42

18 U.S.C. 652(a)(4)) is amended—

19 (i) by striking ‘‘403(h)(1)’’ and insert20 ing ‘‘455(c)(1)’’; and

21 (ii) by striking ‘‘403(h)(2)’’ and in22 serting ‘‘455(c)(2)’’.

23 (C) Section 452 of such Act (42 U.S.C.

24 652) is amended, in each of subsections (a)(4),
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1 (d)(3)(A), (g)(1), and (g)(3)(A), by striking

2 ‘‘403(h)’’ and inserting ‘‘455(c)’’.

3 (b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—

4 (1) IN GENERAL.—Section 417 of such Act (42

5 U.S.C. 617) is hereby transferred to section 452 of

6 such Act, added at the end of such section 452, and

7 redesignated as subsection (j).

8 (2) CONFORMING AMENDMENT.—Section 452(j)

9 of such Act (42 U.S.C. 652(j)), as added by para10 graph (1) of this subsection, is amended—

11 (A) by striking ‘‘ASSISTANT SECRETARY

12 FOR FAMILY SUPPORT’’; and

13 (B) by striking ‘‘programs under this part,

14 part D, and part F’’ and inserting ‘‘program

15 under this part’’.

16 SEC. 106. EFFECTIVE DATE.

17 This title and the amendments and repeals made by

18 this title shall take effect on the 1st day of the 1st fiscal

19 year that begins on or after the date of the enactment

20 of this Act.
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1 TITLE II—EMPOWERING TAX2 PAYERS TO PARTICIPATE IN

3 POVERTY RELIEF EFFORTS

4 SEC. 201. CREDIT FOR CHARITABLE CONTRIBUTIONS TO

5 CERTAIN PRIVATE CHARITIES PROVIDING

6 ASSISTANCE TO THE POOR.

7 (a) IN GENERAL.—Subpart A of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of

9 1986 (relating to nonrefundable personal credits) is

10 amended by inserting after section 22 the following new

11 section:

12 ‘‘SEC. 23. CREDIT FOR CERTAIN CHARITABLE CONTRIBU13 TIONS.

14 ‘‘(a) IN GENERAL.—In the case of an individual,

15 there shall be allowed as a credit against the tax imposed

16 by this chapter for the taxable year an amount equal to

17 the qualified charitable contributions which are paid by

18 the taxpayer during the taxable year.

19 ‘‘(b) LIMITATION.—

20 ‘‘(1) IN GENERAL.—The credit allowed by sub21 section (a) for the taxable year shall not exceed the

22 lesser of—

23 ‘‘(A) the applicable percentage of the tax24 payer’s net regular tax for the taxable year, or
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1 ‘‘(B) the applicable amount for such tax2 able year.

3 ‘‘(2) APPLICABLE PERCENTAGE; APPLICABLE

4 AMOUNT.—For purposes of paragraph (1), the term

5 ‘applicable percentage’ means the percentage deter6 mined in accordance with the following table:

In the case of taxable years

beginning in calendar year:

The applicable percentage is:The applicable amount

is:

1996 ..................................... 2 percent $ 500

1997 ..................................... 4 percent 1,000

1998 ..................................... 6 percent 1,500

1999 ..................................... 8 percent 2,000

2000 ..................................... 10 percent 2,500.

7 ‘‘(3) NET REGULAR TAX.—For purposes of

8 paragraph (1), the term ‘net regular tax’ means reg9 ular tax liability (as defined in section 26(b), re10 duced by the credits allowable under this subpart

11 (other than this section), subpart B, and subpart D.

12 ‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For

13 purposes of this section, the term ‘qualified charitable con14 tribution’ means any charitable contribution (as defined

15 in section 170(c)) made in cash to a qualified charity but

16 only if the amount of each such contribution, and the re17 cipient thereof, are identified on the return for the taxable

18 year during which such contribution is made.

19 ‘‘(d) QUALIFIED CHARITY.—

20 ‘‘(1) IN GENERAL.—For purposes of this sec21 tion, the term ‘qualified charity’ means, with respect
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1 to the taxpayer, any organization described in sec2 tion 501(c)(3) and exempt from tax under section

3 501(a)—

4 ‘‘(A) which is certified by the Secretary as

5 meeting the requirements of paragraphs (2)

6 and (3), and

7 ‘‘(B) which is organized under the laws of

8 the State in which the taxpayer is domiciled at

9 the time the contribution is made and is exempt

10 from income taxation (if any) by such State.

11 ‘‘(2) CHARITY MUST PRIMARILY ASSIST THE

12 POOR.—An organization meets the requirements of

13 this paragraph only if the predominant activity of

14 such organization is the provision of services to indi15 viduals whose annual incomes do not exceed 150

16 percent of the official poverty line (as defined by the

17 Office of Management and Budget).

18 ‘‘(3) MINIMUM EXPENDITURE REQUIREMENT.—

19 ‘‘(A) IN GENERAL.—An organization meets

20 the requirements of this paragraph only if the

21 Secretary reasonably expects that the annual

22 exempt purpose expenditures of such organiza23 tion will not be less than 70 percent of the an24 nual aggregate expenditures of such organiza25 tion.
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1 ‘‘(B) EXEMPT PURPOSE EXPENDITURE.—

2 For purposes of subparagraph (A)—

3 ‘‘(i) IN GENERAL.—The term ‘exempt

4 purpose expenditure’ means any expendi5 ture to carry out the activity referred to in

6 paragraph (2).

7 ‘‘(ii) EXCEPTIONS.—Such term shall

8 not include—

9 ‘‘(I) any administrative expense,

10 ‘‘(II) any expense for the purpose

11 of influencing legislation (as defined

12 in section 4911(d)),

13 ‘‘(III) any expense primarily for

14 the purpose of fundraising, and

15 ‘‘(IV) any expense for a legal

16 service provided on behalf of any indi17 vidual referred to in paragraph (2).

18 ‘‘(e) DONOR MAY NOT HAVE FINANCIAL INTEREST

19 IN CHARITY.—

20 ‘‘(1) IN GENERAL.—No credit shall be allowed

21 under this section for any contribution made to an

22 organization if the donor or any member of the do23 nor’s family is an officer or employee of such organi24 zation.
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1 ‘‘(2) SELF-DEALING.—To the extent provided

2 by the Secretary by regulation, no credit shall be al3 lowed under this section for any contribution made

4 to an organization if—

5 ‘‘(A) the donor,

6 ‘‘(B) any member of the family of the

7 donor, or

8 ‘‘(C) any 35-percent controlled entity of

9 persons described in subparagraph (A) or (B),

10 engages in significant activities with respect to such

11 organization which are a type described in section

12 4941(d) (relating to self-dealing).

13 ‘‘(3) 35-PERCENT CONTROLLED ENTITY.—

14 ‘‘(A) IN GENERAL.—For purposes of para15 graph (2), the term ‘35-percent controlled en16 tity’ means—

17 ‘‘(i) a corporation in which persons

18 described in subparagraph (A) or (B) of

19 paragraph (2) own more than 35 percent

20 of the combined voting power,

21 ‘‘(ii) a partnership in which such per22 sons own more than 35 percent of the

23 profits interest, and
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1 ‘‘(iii) a trust or estate in which such

2 persons own more than 35 percent of the

3 beneficial interest.

4 ‘‘(B) CONSTRUCTIVE OWNERSHIP

5 RULES.—Rules similar to the rules of para6 graphs (3) and (4) of section 4946(a) shall

7 apply for purposes of this paragraph.

8 ‘‘(4) MEMBER OF THE FAMILY.—For purposes

9 of this subsection, the members of an individual’s

10 family shall be determined under section 4946(d).

11 ‘‘(f) COORDINATION WITH DEDUCTION FOR CHARI12 TABLE CONTRIBUTIONS.—

13 ‘‘(1) CREDIT IN LIEU OF DEDUCTION.—The

14 credit provided by subsection (a) for any qualified

15 charitable contribution shall be in lieu of any deduc16 tion otherwise allowable under this chapter for such

17 contribution.

18 ‘‘(2) ELECTION TO HAVE SECTION NOT

19 APPLY.—A taxpayer may elect for any taxable year

20 to have this section not apply.’’

21 (b) QUALIFIED CHARITIES REQUIRED TO PROVIDE

22 COPIES OF ANNUAL RETURN.—Subsection (e) of section

23 6104 of such Code (relating to public inspection of certain

24 annual returns and applications for exemption) is amend25 ed by adding at the end the following new paragraph:
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1 ‘‘(3) CHARITIES RECEIVING CREDITABLE CON2 TRIBUTIONS REQUIRED TO PROVIDE COPIES OF AN3 NUAL RETURN.—

4 ‘‘(A) IN GENERAL.—Every qualified char5 ity (as defined in section 23(d)) shall, upon re6 quest of an individual made at an office where

7 such organization’s annual return filed under

8 section 6033 is required under paragraph (1) to

9 be available for inspection, shall provide a copy

10 of such return to such individual without charge

11 other than a reasonable fee for any reproduc12 tion and mailing costs. If the request is made

13 in person, such copies shall be provided imme14 diately and, if made other than in person, shall

15 be provided within 30 days.

16 ‘‘(B) PERIOD OF AVAILABILITY.—Subpara17 graph (A) shall apply only during the 3-year pe18 riod beginning on the filing date (as defined in

19 paragraph (1)(D) of the return requested).’’

20 (c) CLERICAL AMENDMENT.—The table of sections

21 for subpart A of part IV of subchapter A of chapter 1

22 of such Code is amended by inserting after the item relat23 ing to section 22 the following new item:

‘‘Sec. 23. Credit for certain charitable contributions.’’

24 (d) EFFECTIVE DATE.—The amendments made by

25 this section shall apply to contributions made after the
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1 90th day after the date of the enactment of this Act in

2 taxable years ending after such date.

3 TITLE III—PROMOTING STRONG

4 FAMILIES AND PARENTAL RE5 SPONSIBILITY

6 SEC. 301. ADDITIONAL EARNED INCOME CREDIT FOR MAR7 RIED INDIVIDUALS.

8 (a) IN GENERAL.—Paragraph (1) of section 32(a) of

9 the Internal Revenue Code of 1986 (relating to earned in10 come credit) is amended to read as follows:

11 ‘‘(1) IN GENERAL.—There shall be allowed as a

12 credit against the tax imposed by this subtitle for

13 the taxable year an amount equal to the sum of—

14 ‘‘(A) in the case of an eligible individual,

15 an amount equal to the credit percentage of so

16 much of the taxpayer’s earned income for the

17 taxable year as does not exceed the earned in18 come amount, and

19 ‘‘(B) in the case of an eligible married in20 dividual, the applicable percentage of $1,000.’’.

21 (b) APPLICABLE PERCENTAGE.—Section 32(b) of the

22 Internal Revenue Code of 1986 (relating to percentages

23 and amounts) is amended by adding at the end the follow24 ing new paragraph:
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1 ‘‘(3) APPLICABLE PERCENTAGE.—The applica2 ble percentage for any taxable year is equal to 100

3 percent reduced (but not below 0 percent) by 10 per4 centage points for each $1,000 (or fraction thereof)

5 by which the taxpayer’s earned income for such tax6 able year exceeds $16,000.’’.

7 (c) ELIGIBLE MARRIED INDIVIDUALS.—Section

8 32(c) of the Internal Revenue Code of 1986 (relating to

9 definitions and special rules) is amended by adding at the

10 end the following new paragraph:

11 ‘‘(4) ELIGIBLE MARRIED INDIVIDUALS.—The

12 term ‘eligible married individual’ means an eligible

13 individual (determined without regard to paragraph

14 (1)(A)(ii))—

15 ‘‘(A) who is married (as defined in section

16 7703) and who has lived together with the indi17 vidual’s spouse at all times during such mar18 riage during the taxable year, and

19 ‘‘(B) has earned income for the taxable

20 year of at least $8,500.’’.

21 (d) CONFORMING AMENDMENTS.—

22 (1) Section 32(a)(2) of the Internal Revenue

23 Code of 1986 is amended by striking ‘‘paragraph

24 (1)’’ and inserting ‘‘paragraph (1)(A)’’.
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1 (2) Section 32(i) of such Code is amended to

2 read as follows:

3 ‘‘(i) INFLATION ADJUSTMENTS.—

4 ‘‘(1) IN GENERAL.—In the case of any taxable

5 year beginning after the applicable calendar year,

6 each dollar amount referred to in paragraph (2)(B)

7 shall be increased by an amount equal to—

8 ‘‘(A) such dollar amount, multiplied by

9 ‘‘(B) the cost-of-living adjustment deter10 mined under section 1(f)(3), for the calendar

11 year in which the taxable year begins, by sub12 stituting for ‘calendar year 1992’ in subpara13 graph (B) thereof—

14 ‘‘(i) ‘calendar year 1993’ in the case

15 of the dollar amounts referred to in para16 graph (2)(B)(i), and

17 ‘‘(ii) ‘calendar year 1994’ in the case

18 of the dollar amounts referred to in para19 graph (2)(B)(ii).

20 ‘‘(2) DEFINITIONS, ETC.—For purposes of

21 paragraph (1)—

22 ‘‘(A) APPLICABLE CALENDAR YEAR.—The

23 term ‘applicable calendar year’ means—
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1 ‘‘(i) 1994 in the case of the dollar

2 amounts referred to in paragraph

3 (2)(B)(i), and

4 ‘‘(ii) 1995 in the case of the dollar

5 amounts referred to in paragraph

6 (2)(B)(ii).

7 ‘‘(B) DOLLAR AMOUNTS.—The dollar

8 amounts referred to in this subparagraph are—

9 ‘‘(i) each dollar amount contained in

10 subsection (b)(2)(A), and

11 ‘‘(ii) the $16,000 amount contained in

12 subsection (b)(3) and the dollar amount

13 contained in subsection (c)(4)(B).

14 ‘‘(3) ROUNDING.—If any dollar amount after

15 being increased under paragraph (1) is not a mul16 tiple of $10, such dollar amount shall be rounded to

17 the nearest multiple of $10 (or, if such dollar

18 amount is a multiple of $5, such dollar amount shall

19 be increased to the next higher multiple of $10).’’.

20 (e) EFFECTIVE DATE.—The amendments made by

21 this section shall apply to taxable years beginning after

22 December 31, 1994.
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1 SEC. 302. NATIONAL REPORTING OF INFORMATION RELAT2 ING TO CHILD SUPPORT WITH RESPECT TO

3 CERTAIN EMPLOYEES.

4 (a) MODIFIED W–4 REPORTING.—

5 (1) ESTABLISHMENT OF REPORTING SYSTEM.—

6 The Secretary of the Treasury, in consultation with

7 the Secretary of Labor, shall establish a system for

8 the reporting of information relating to child support

9 obligations of employees, that meets the require10 ments of this subsection.

11 (2) EMPLOYEE OBLIGATIONS.—

12 (A) EMPLOYEES SUBJECT TO CHILD SUP13 PORT WAGE WITHHOLDING.—The system shall

14 require each employee who owes a qualified

15 child support obligation to indicate, at the time

16 such obligation first arises or is modified, on a

17 W–4 form that the employee is otherwise re18 quired to file with the employer—

19 (i) the existence of the obligation;

20 (ii) the amount of the obligation;

21 (iii) the name and address of the per22 son to whom the obligation is owed; and

23 (iv) whether health care insurance is

24 available through the employer to the fam25 ily of the employee.
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1 (B) EMPLOYEES IN DESIGNATED INDUS2 TRIES.—The system shall require each em3 ployee, who is employed in a State in an indus4 try that the State has designated pursuant to

5 section 466(a)(12)(A) of the Social Security Act

6 as one with respect to which universal employ7 ment reporting would improve child support en8 forcement in a cost-effective manner, to annu9 ally file with the employer a W–4 form indicat10 ing—

11 (i) whether the employee owes a quali12 fied child support obligation; and

13 (ii) if so—

14 (I) the amount of the obligation;

15 (II) the name and address of the

16 person to whom the obligation is

17 owed; and

18 (III) whether health care insur19 ance is available through the employer

20 to the family of the employee.

21 (C) ONE-TIME UPDATING OF W–4 INFOR22 MATION OF ALL EMPLOYEES.—The system shall

23 require each employee to file with the employer,

24 during a period that the State in which the em25 ployee is employed has prescribed pursuant to
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1 section 466(a)(12)(B) of the Social Security

2 Act, a W–4 form indicating—

3 (i) whether the employee owes a quali4 fied child support obligation; and

5 (ii) if so—

6 (I) the amount of each such obli7 gation;

8 (II) the name and address of

9 each person to whom the obligation is

10 owed; and

11 (III) whether health care insur12 ance is available through the employer

13 to the family of the employee.

14 (D) QUALIFIED CHILD SUPPORT OBLIGA15 TION.—As used in this subsection, the term

16 ‘‘qualified child support obligation’’ means a

17 legal obligation to provide child support (as de18 fined in section 462(b) of the Social Security

19 Act) which is to be collected, in whole or in

20 part, through wage withholding pursuant to an

21 order issued by a court of any State or an order

22 of an administrative process established under

23 the law of any State.
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1 (3) EMPLOYER OBLIGATIONS.—Each employer

2 who receives information from an employee pursuant

3 to paragraph (2) of this subsection shall—

4 (A) within 10 days after such receipt, for5 ward the information to the agency, designated

6 pursuant to section 466(a)(11)(A) of the Social

7 Security Act, of the State in which the em8 ployee is employed by the employer; and

9 (B) withhold from the income of the em10 ployee the amount indicated on the W–4 form

11 (or, if the employer has received from the State

12 a notice that the amount is incorrect, such

13 other amount as the State indicates is to be so

14 withheld), in the manner described in section

15 466(b)(6)(A)(i) of such Act.

16 (4) NEW HIRES IN CERTAIN STATES EX17 CEPTED.—This subsection shall not apply with re18 spect to the employment in a State of any employee

19 not described in paragraph (2)(B) if the Secretary

20 of Health and Human Services determines that the

21 State—

22 (A) requires all employers in the State to

23 report to the State all basic employment infor24 mation on new hires;
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1 (B) requires such information to be com2 pared with information in the State registry of

3 child support orders established pursuant to

4 section 466(a)(13) of the Social Security Act

5 and with requests from other States for infor6 mation on the location of noncustodial parents;

7 (C) maintains updated employment infor8 mation on all individuals employed in the State

9 in a manner that enables the State to effec10 tively respond to such requests; and

11 (D) requires all employers in the State, on

12 receipt of a notice from the State that an em13 ployee owes a qualified child support obligation,

14 to begin withholding from the income of the

15 employee the amount of the obligation, in the

16 manner described in section 466(b)(6)(A)(i) of

17 the Social Security Act.

18 (5) EFFECTIVE DATE.—This subsection shall

19 take effect on the 1st day of the 1st fiscal year that

20 begins on or after the date of the enactment of this

21 Act.

22 (b) STATE ROLE.—Section 466(a) of the Social Secu23 rity Act (42 U.S.C. 666(a)) is amended by inserting after

24 paragraph (10) the following:
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1 ‘‘(11) Procedures under which the State shall

2 designate a public agency to—

3 ‘‘(A) maintain the information provided by

4 employers pursuant to section 302(a)(3) of the

5 Common Sense Welfare Reform Act of 1995 in

6 accordance with regulations prescribed by the

7 Secretary which allow other States easy access

8 to the information through the Interstate Lo9 cate Network established under section 453(g)

10 of this Act; and

11 ‘‘(B) determine whether or not the infor12 mation described in subparagraph (A) of this

13 paragraph provided by an employer with respect

14 to an employee is accurate by comparing the in15 formation with the information on file in the

16 State registry of child support orders estab17 lished pursuant to section 466(a)(13) of this

18 Act, and—

19 ‘‘(i) if the information is confirmed by

20 the information on file in the registry, no21 tify any individual (or such individual’s

22 designee) who resides in the State and to

23 whom the employee has a legal obligation

24 to provide child support, of such informa25 tion;
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1 ‘‘(ii) if the information is not so con2 firmed due to a discrepancy between the

3 information and a copy of a child support

4 order in the registry, notify the employer

5 of the discrepancy and the correct informa6 tion using the order developed under sec7 tion 452(a)(12) of this Act; or

8 ‘‘(iii) if the information is not so con9 firmed because the registry does not con10 tain a copy of an order that imposes a

11 child support obligation on the employee,

12 search the child support order registries

13 established pursuant to section 466(a)(13)

14 of this Act of the States in which the obli15 gation is most likely to have been imposed.

16 ‘‘(12) Procedures under which the State shall—

17 ‘‘(A) designate at least 1 industry, for pur18 poses of section 302(a)(2)(B) of the Common

19 Sense Welfare Reform Act of 1995, as an in20 dustry with respect to which universal employ21 ment reporting would improve child support en22 forcement in a cost-effective manner;

23 ‘‘(B) prescribe the period during which

24 individuals employed in the State are to be

25 required to file with their employers updated
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1 W–4 forms as required by section 302(a)(2)(C)

2 of such Act; and

3 ‘‘(C) impose a fine—

4 ‘‘(i) against any individual employed

5 in the State who is required by section

6 302(a)(2) of such Act to file a W–4 form

7 with any employer of the individual and

8 fails to do so; and

9 ‘‘(ii) in an amount equal to the aver10 age cost of noncompliance (as determined

11 by the State) or $25, whichever is the less12 er, on any employer who fails to comply

13 with section 302(a)(3) of such Act for any

14 month.’’.

15 SEC. 303. STATE INFORMATION SYSTEMS.

16 (a) STATE REGISTRIES OF CHILD SUPPORT OR17 DERS.—Section 466(a) of the Social Security Act (42

18 U.S.C. 666(a)), as amended by section 302(b) of this Act,

19 is amended by inserting after paragraph (12) the follow20 ing:

21 ‘‘(13) Procedures requiring the State agency

22 designated pursuant to paragraph (16) to maintain

23 a child support order registry, which must include—

24 ‘‘(A) a copy of each child support order

25 being enforced under the State plan; and
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1 ‘‘(B) at the request of an individual who

2 has or is owed a legal obligation to provide child

3 support (within the meaning of section 462(b)),

4 a copy of the order that imposes the obliga5 tion.’’.

6 (b) ACCESSIBILITY OF STATE INFORMATION RELAT7 ED TO CHILD SUPPORT.—

8 (1) TO OTHER STATES.—Section 466(a) of such

9 Act (42 U.S.C. 666(a)), as amended by section

10 302(b)(1) of this Act and subsection (a) of this sec11 tion, is amended by inserting after paragraph (13)

12 the following:

13 ‘‘(14)(A) Procedures requiring all records of the

14 State to which the agency administering the plan

15 has access and determines may be useful in locating

16 noncustodial parents or collecting child support to be

17 made accessible to any agency of any State for such

18 purpose, through the Interstate Locate Network es19 tablished under section 453(g), in accordance with

20 safeguards established to prevent release of informa21 tion if the release might jeopardize the safety of any

22 individual.

23 ‘‘(B) The State may impose reasonable fees for

24 access to State records provided pursuant to sub25 paragraph (A).’’.
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1 (2) TO PRIVATE PARTIES.—Section 466(a) of

2 such Act (42 U.S.C. 666(a)), as amended by section

3 302(b)(1) of this Act, subsection (a) of this section,

4 and paragraph (1) of this subsection, is amended by

5 inserting after paragraph (14) the following:

6 ‘‘(15) Procedures under which—

7 ‘‘(A) noncustodial parents (and their des8 ignees) must be given access to State parent lo9 cator services to aid in the establishment or en10 forcement of visitation rights, in accordance

11 with safeguards established to prevent release

12 of information if the release might jeopardize

13 the safety of any individual; and

14 ‘‘(B) custodial parents (and their des15 ignees) must be given access to State parent lo16 cator services to aid in the establishment and

17 enforcement of child support obligations against

18 noncustodial parents.’’.

19 SEC. 304. NATIONAL INFORMATION SYSTEMS.

20 (a) EXPANSION OF PARENT LOCATOR SERVICE.—

21 Section 453 of the Social Security Act (42 U.S.C. 653)

22 is amended—

23 (1) in subsection (a)—

24 (A) by inserting ‘‘(1)’’ after ‘‘transmit’’;

25 and
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1 (B) by striking ‘‘enforcing support obliga2 tions against such parent’’ and inserting ‘‘es3 tablishing parentage, establishing, modifying,

4 and enforcing child support obligations, and (2)

5 to any noncustodial parent (or the designee of

6 the noncustodial parent) information as to the

7 whereabouts of the custodial parent when such

8 information is to be used to locate such parent

9 for the purpose of enforcing child visitation

10 rights and obligations’’;

11 (2) in subsection (b), by inserting after the 2nd

12 sentence the following: ‘‘Information shall not be

13 disclosed to a custodial parent or a noncustodial par14 ent if the disclosure would jeopardize the safety of

15 the child or either of such parents.’’;

16 (3) in subsection (d), by inserting ‘‘and such

17 reasonable fees’’ after ‘‘such documents’’; and

18 (4) by striking ‘‘absent parent’’ each place such

19 term appears and inserting ‘‘noncustodial parent’’.

20 (b) ESTABLISHMENT OF INTERSTATE LOCATE NET21 WORK.—Section 453 of such Act (42 U.S.C. 653) is

22 amended by adding at the end the following:

23 ‘‘(g) The Secretary shall establish an Interstate Lo24 cate Network linking the Parent Locator Service and all
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1 State databases relating to child support enforcement,

2 which—

3 ‘‘(1) any State may use to—

4 ‘‘(A) locate any noncustodial parent who

5 has a legal obligation to provide child support

6 (as defined in section 462(b)), with respect to

7 whom such an obligation is being sought, or

8 against whom visitation rights are being en9 forced, by accessing the records of any Federal,

10 State, or other source of locate or child support

11 information, directly from one computer system

12 to another; or

13 ‘‘(B) direct a locate request to another

14 State or a Federal agency, or, if the source of

15 locate information is unknown, broadcast such

16 a request to selected States or to all States;

17 ‘‘(2) allows on-line and batch processing of lo18 cate requests, with on-line access restricted to cases

19 in which the information is needed immediately

20 (such as for court appearances), and batch process21 ing used to ‘troll’ databases to locate individuals or

22 update information periodically; and

23 ‘‘(3) enables courts to access information on the

24 Interstate Locate Network through a computer ter25 minal located in the court.’’.
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1 (c) INFORMATION SHARING REGULATIONS.—Section

2 452(a) of such Act (42 U.S.C. 652(a)) is amended—

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

4 (9);

5 (2) by striking the period at the end of the 2nd

6 sentence of paragraph (10) and inserting ‘‘; and’’;

7 and

8 (3) by inserting after paragraph (10) the fol9 lowing:

10 ‘‘(11) prescribe regulations governing informa11 tion sharing among States, within States, and be12 tween the States and the Parent Locator Service—

13 ‘‘(A) to ensure that a State may broadcast

14 a request for information for the purpose of lo15 cating a noncustodial parent or collecting child

16 support, and receive a response to the request

17 in not more than 48 hours; and

18 ‘‘(B) to require a State that is attempting

19 to locate a noncustodial parent—

20 ‘‘(i) to compare all outstanding cases

21 with information in the employment

22 records of the State; and

23 ‘‘(ii) if, after complying with clause

24 (i), the State is unable to locate the

25 noncustodial parent, then—
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1 ‘‘(I) if the State has reason to

2 believe that the noncustodial parent is

3 in another particular State or States,

4 to request such State or States for in5 formation on the noncustodial parent;

6 and

7 ‘‘(II) if not, to broadcast to all

8 States a request for such informa9 tion.’’.

10 SEC. 305. INCOME WITHHOLDING.

11 (a) STATE ROLE.—Section 466(a) of the Social Secu12 rity Act (42 U.S.C. 666(a)), as amended by sections

13 302(b)(1) and 303 of this Act, is amended by inserting

14 after paragraph (15) the following:

15 ‘‘(16) Procedures under which the State shall

16 designate a public agency to—

17 ‘‘(A) collect child support pursuant to the

18 State plan; and

19 ‘‘(B) distribute, in accordance with section

20 457 and with all due deliberate speed, the

21 amounts collected as child support.

22 ‘‘(17) Procedures under which the State shall

23 require any court of the State that establishes or

24 modifies a child support order to transmit a copy of

25 the order to the State agency designated pursuant to
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1 paragraph (18), unless the order does not provide

2 for income withholding, and the noncustodial parent

3 and the custodial parent object.

4 ‘‘(18) Procedures under which the State shall

5 designate a State agency to use the uniform income

6 withholding order developed under section

7 452(a)(12) to notify the agency administering the

8 State plan, any employer of an individual required to

9 pay child support through income withholding pursu10 ant to an order issued or modified in the State, and

11 the agency designated pursuant to paragraph (16) of

12 this subsection of each State in which such an em13 ployer is located, of—

14 ‘‘(A) the identity of the individual;

15 ‘‘(B) the amount to be withheld; and

16 ‘‘(C) the State agency to which the with17 held amount is to be paid.’’.

18 (b) UNIFORM WITHHOLDING ORDER.—Section

19 452(a) of such Act (42 U.S.C. 652(a)), as amended by

20 section 304(c) of this Act, is amended—

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

22 (10);

23 (2) by striking the period at the end of para24 graph (11) and inserting ‘‘; and’’; and
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1 (3) by inserting after paragraph (11) the fol2 lowing:

3 ‘‘(12) develop a uniform order to be used in all

4 cases in which income is to be withheld for the pay5 ment of child support, which shall—

6 ‘‘(A) contain the name of the individual

7 whose income is to be withheld, the number of

8 children covered by the order, and the individ9 ual or State to whom the withheld income is to

10 be paid, and

11 ‘‘(B) be in the form necessary to allow for

12 the service of the order on all sources of in13 come.’’.

14 (c) STATES REQUIRED TO HAVE LAWS REQUIRING

15 EMPLOYERS TO WITHHOLD CHILD SUPPORT PURSUANT

16 TO UNIFORM INCOME WITHHOLDING ORDERS.—Section

17 466(b) of such Act (42 U.S.C. 666(b)) is amended—

18 (1) in paragraph (1), by inserting ‘‘and in the

19 case of each individual employed in the State,’’ be20 fore ‘‘so much’’;

21 (2) in paragraph (6)(C), by inserting ‘‘of this

22 paragraph and paragraph (9)(B) of this subsection’’

23 after ‘‘(A)’’; and

24 (3) in paragraph (9)—

25 (A) by inserting ‘‘(A)’’ after ‘‘(9)’’; and
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1 (B) by adding at the end the following:

2 ‘‘(B)(i) As a condition of doing business in the

3 State, any individual or entity engaged in commerce

4 in the State shall, upon receipt of a valid income

5 withholding order for any of its employees—

6 ‘‘(I) immediately provide a copy of the

7 order to the employee subject to the order; and

8 ‘‘(II) notwithstanding paragraph (4) of

9 this subsection, withhold, within 10 days after

10 receipt of the order, income from the employee

11 in the manner described in paragraph (6)(A)(i)

12 of this subsection.

13 ‘‘(ii) A valid income withholding order may be

14 served on the individual or entity directly or by first15 class mail.

16 ‘‘(iii) Any individual or entity who complies

17 with a valid income withholding order may not be

18 held liable for wrongful withholding of income from

19 the employee subject to the order.

20 ‘‘(iv) The State shall impose a civil fine in an

21 amount equal to the average cost of noncompliance

22 (as determined by the State) or $25, whichever is

23 the lesser, on any such individual or entity who re24 ceives a valid income withholding order with respect

25 to an employee of the individual or entity, and who,
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1 due to negligence, fails to comply with the order

2 within 10 days after receipt.

3 ‘‘(v) Any individual or entity who imposes a fee

4 for the administration of child support income with5 holding and related reporting of information shall

6 not collect more than the average cost of such ad7 ministration, as determined by the State.

8 ‘‘(vi) For purposes of this subparagraph, a valid

9 income withholding order is a withholding order de10 veloped under section 452(a)(12) that has been is11 sued by a court or agency of a State and is regular

12 on its face.’’.

13 SEC. 306. UNIFORM TERMS IN ORDERS.

14 Section 452(a) of the Social Security Act (42 U.S.C.

15 652(a)), as amended by sections 304(c) and 305(b) of this

16 Act, is amended—

17 (1) in paragraph (11), by striking ‘‘and’’ after

18 the semicolon;

19 (2) in paragraph (12), by striking the period at

20 the end of the 2nd sentence and inserting ‘‘; and’’;

21 and

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

23 ‘‘(13) develop, in conjunction with State execu24 tive and judicial organizations, a uniform abstract of

25 a child support order, for use by all State courts to
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1 record, with respect to each child support order in

2 the child support order registry established under

3 section 466(a)(12)—

4 ‘‘(A) the date support payments are to

5 begin under the order;

6 ‘‘(B) the circumstances upon which sup7 port payments are to end under the order;

8 ‘‘(C) the amount of child support payable

9 pursuant to the order expressed as a sum cer10 tain to be paid on a monthly basis, arrearages

11 expressed as a sum certain as of a certain date,

12 and any payback schedule for the arrearages;

13 ‘‘(D) whether the order awards support in

14 a lump sum (nonallocated) or per child;

15 ‘‘(E) if the award is in a lump sum, the

16 event causing a change in the support award

17 and the amount of any change;

18 ‘‘(F) other expenses covered by the order;

19 ‘‘(G) the names of the parents subject to

20 the order;

21 ‘‘(H) the social security account numbers

22 of the parents;

23 ‘‘(I) the name, date of birth, and social se24 curity account number (if any) of each child

25 covered by the order;
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1 ‘‘(J) the identification (FIPS code, name,

2 and address) of the court that issued the order;

3 ‘‘(K) any information on health care sup4 port required by the order; and

5 ‘‘(L) the party to contact if additional in6 formation is obtained.’’.

7 SEC. 307. EFFECTIVE DATE.

8 (a) IN GENERAL.—Except as provided in subsection

9 (b), the amendments made by this title shall take effect

10 on the 1st day of the 1st fiscal year that begins on or

11 after the date of the enactment of this Act, and shall apply

12 to payments under part D of title IV of the Social Security

13 Act for calendar quarters beginning on or after such 1st

14 day, without regard to whether regulations to implement

15 such amendments are promulgated by such 1st day.

16 (b) DELAY PERMITTED IF STATE LEGISLATION RE17 QUIRED.—In the case of a State plan approved under part

18 D of title IV of the Social Security Act which the Sec19 retary of Health and Human Services determines requires

20 State legislation (other than legislation appropriating

21 funds) in order for the plan to meet the additional require22 ments imposed by the amendments made by this title, the

23 State plan shall not be regarded as failing to comply with

24 the requirements of such part solely on the basis of the

25 failure of the plan to meet such additional requirements
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1 before the 1st day of the 1st calendar quarter beginning

2 after the close of the 1st regular session of the State legis3 lature that begins after the effective date of this title. For

4 purposes of the previous sentence, in the case of a State

5 that has a 2-year legislative session, each year of such ses6 sion shall be deemed to be a separate regular session of

7 the State legislature.

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