I

104TH CONGRESS

1ST SESSION H. R. 865

To amend part A of title IV of the Social Security Act to offer States

the option of replacing the Job Opportunities and Basic Skills Training

(JOBS) program with a program that would assist all recipients of

aid to families with dependent children in achieving self-sufficiency, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 8, 1995

Mr. ORTON introduced the following bill; which was referred to the Committee

on Ways and Means and, in addition, to the Committees on Agriculture,

Commerce, and Economic and Educational Opportunities, 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 amend part A of title IV of the Social Security Act

to offer States the option of replacing the Job Opportunities and Basic Skills Training (JOBS) program with

a program that would assist all recipients of aid to

families with dependent children in achieving self-sufficiency, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•HR 865 IH

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Self-Sufficiency Act

3 of 1995’’.

4 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—SELF-SUFFICIENCY PROGRAM

Sec. 101. Establishment and operation of program.

Sec. 102. Child care guaranteed to participants in State self-sufficiency

programs.

Sec. 103. Increased Federal matching rates for child care provided by States

with self-sufficiency programs.

Sec. 104. Elimination of requirement that families in States with self-sufficiency programs have received AFDC for a minimum period

before becoming eligible for transitional medicaid benefits or

transitional child care benefits.

Sec. 105. Eligibility for transitional medicaid benefits and transitional child

care benefits in States with self-sufficiency programs without

regard to type of income that would otherwise result in ineligibility for benefits.

Sec. 106. Elimination of certain exceptions from requirement that minor parents and pregnant minors without children live with responsible

adult in States with self-sufficiency programs.

TITLE II—OTHER PROVISIONS

Sec. 201. Disregard of persons who become family members after initial receipt

of AFDC.

Sec. 202. Enhanced payments for participants in the self-sufficiency program.

Sec. 203. Diversion payments.

Sec. 204. Aid to families without regard to the number of parents in the home.

Sec. 205. 2-parent families ineligible for AFDC until 30 days after loss of employment.

Sec. 206. Increase in earned income disregard and elimination of time limitation on earned income disregard.

Sec. 207. Increase in asset limitations.

Sec. 208. Amendments to the Food Stamp Act of 1977.

Sec. 209. Option to impose penalty for failure to attend school.

TITLE III—RELATED AMENDMENTS

Sec. 301. Denial of welfare benefits to aliens.

Sec. 302. Inclusion in consumer credit reports of information on overdue child

support obligations of the consumer.

Sec. 303. Quarterly payments of earned income credit.

TITLE IV—EFFECTIVE DATE
3

•HR 865 IH

Sec. 401. Effective date.

1 TITLE I—SELF-SUFFICIENCY

2 PROGRAM

3 SEC. 101. ESTABLISHMENT AND OPERATION OF PROGRAM.

4 (a) STATE PLAN REQUIREMENT.—Section

5 402(a)(29) of the Social Security Act is amended to read

6 as follows:

7 ‘‘(29) at the option of the State, in lieu of the

8 requirements of paragraph (19) and part F, provide

9 that—

10 ‘‘(A) the State has in effect and operation

11 a self-sufficiency program which meets the re12 quirements of part G;

13 ‘‘(B)(i) not later than the end of the 3-

14 year period that begins on the date the Sec15 retary first approves the State plan under part

16 G, the State shall require not less than 30 per17 cent of the recipients of aid under the State

18 plan (selected by the State in accordance with

19 such criteria as the State establishes in regula20 tions) to participate in the program;

21 ‘‘(ii) not later than the end of the 5-year

22 period that begins on the date the Secretary

23 first approves the State plan under part G, the

24 State shall require not less than 50 percent of

25 the recipients of aid under the State plan (se-
4

•HR 865 IH

1 lected by the State in accordance with such cri2 teria as the State establishes in regulations) to

3 participate in the program;

4 ‘‘(iii) not later than the end of the 8-year

5 period that begins on the date the Secretary

6 first approves the State plan under part G, the

7 State shall require not less than 75 percent of

8 the recipients of aid under the State plan (se9 lected by the State in accordance with such cri10 teria as the State establishes in regulations) to

11 participate in the program; and

12 ‘‘(iv) not later than the end of the 10-year

13 period that begins on the date the Secretary

14 first approves the State plan under part G, the

15 State shall, except as provided in subparagraph

16 (C), require each recipient of aid under the

17 State plan to participate in the program;

18 ‘‘(C) the State may not require an individ19 ual to participate in the program—

20 ‘‘(i) during a period described in

21 clause (i), (ii), or (iii) of subparagraph (B),

22 if the individual resides in an area of the

23 State where the program is not available;

24 or
5

•HR 865 IH

1 ‘‘(ii) if the individual is unable to

2 meaningfully participate in the program

3 due to a physical or psychological condi4 tion; and

5 ‘‘(D) the amount of aid otherwise payable

6 under the State plan to a family that includes

7 an individual who fails without good cause to

8 participate in the program, comply with any

9 term or condition of the self-sufficiency plan de10 veloped for the individual, or accept a bona fide

11 offer of employment shall be reduced by—

12 ‘‘(i) 25 percent for the 1st month of

13 such failure; and

14 ‘‘(ii) such equal increments for each of

15 the next 24 months of such failure as will

16 result in no benefit at the end of such 24-

17 month period;’’.

18 (b) ESTABLISHMENT AND OPERATION OF PRO19 GRAM.—Title IV of such Act (42 U.S.C. 601–687) is

20 amended by adding at the end the following:

21 ‘‘PART G—SELF-SUFFICIENCY PROGRAM

22 ‘‘SEC. 491. PURPOSE AND DEFINITIONS.

23 ‘‘(a) PURPOSE.—The purpose of this part is to assist

24 needy families with children in becoming self-sufficient.
6

•HR 865 IH

1 ‘‘(b) DEFINITIONS.—Except to the extent otherwise

2 provided, each term used in this part shall have the same

3 meaning given the term in or under part A.

4 ‘‘SEC. 492. ESTABLISHMENT AND OPERATION OF STATE

5 PROGRAMS.

6 ‘‘(a) GENERAL REQUIREMENTS.—

7 ‘‘(1) STATE PLAN REQUIRED.—

8 ‘‘(A) IN GENERAL.—Each State that is not

9 operating a program under part F may estab10 lish and operate a self-sufficiency program (in

11 this part referred to as the ‘program’) under a

12 plan approved by the Secretary as meeting the

13 requirements of this part and section

14 402(a)(29).

15 ‘‘(B) CONTENTS.—The plan referred to in

16 subparagraph (A) for the program shall—

17 ‘‘(i) describe how the State intends to

18 implement the program during the period

19 covered by the plan;

20 ‘‘(ii) indicate, through cross-references

21 to the appropriate provisions of this part

22 and part A, that the program will be oper23 ated in accordance with such provisions of

24 law;
7

•HR 865 IH

1 ‘‘(iii) contain an estimate of the num2 ber of persons to be served by the pro3 gram;

4 ‘‘(iv) describe the services to be pro5 vided within the State and the political

6 subdivisions thereof, the needs to be ad7 dressed through the provision of such serv8 ices, the extent to which such services are

9 expected to be made available by other

10 agencies on a nonreimbursable basis, the

11 extent to which such services are to be pro12 vided or funded by the program, and the

13 way in which caseworkers are to be re14 trained to aid in the development of self15 sufficiency plans for participants in the

16 program; and

17 ‘‘(v) contain such additional informa18 tion as the Secretary may require by regu19 lation to enable the Secretary to determine

20 that the State program will meet the re21 quirements of this part and part A.

22 ‘‘(C) UPDATES.—Not less frequently than

23 every 2 years after the Secretary first approves

24 a State plan under this part, the State shall re25 view and update the plan in accordance with
8

•HR 865 IH

1 regulations prescribed by the Secretary, and

2 submit to the Secretary the updated plan for

3 approval.

4 ‘‘(2) NO SUPPLANTATION OF NON-FEDERAL

5 FUNDS.—Federal funds made available to a State

6 for purposes of the program shall not be used to

7 supplant non-Federal funds for existing services and

8 activities which promote the purpose of this part.

9 ‘‘(3) REPORTS.—Each State that establishes a

10 self-sufficiency program under this part shall submit

11 to the Secretary on a biannual basis, a report on—

12 ‘‘(A) the number of participants in the

13 program;

14 ‘‘(B) the number of such participants who

15 are employed on a full-time basis;

16 ‘‘(C) the number of such participants who

17 are employed on a part-time basis; and

18 ‘‘(D) the number of participants in the

19 program who have become ineligible for aid to

20 families with dependent children during the pre21 ceding year by reason of excessive earnings.

22 ‘‘(b) CONSULTATION.—The Secretary shall consult

23 with the Secretary of Labor on general plan requirements

24 and on criteria to be used in approving State plans under

25 this section.
9

•HR 865 IH

1 ‘‘SEC. 493. ASSESSMENT AND REVIEW OF NEEDS AND

2 SKILLS OF PARTICIPANTS; SELF-SUFFI3 CIENCY PLANS.

4 ‘‘(a) ASSESSMENT.—The State agency must make an

5 initial assessment of the educational, child care, and other

6 supportive services needs as well as the skills, prior work

7 experience, and employability of each participant in the

8 program under this part, including a review of the family

9 circumstances and the needs of any child of the partici10 pant.

11 ‘‘(b) SELF-SUFFICIENCY PLAN.—On the basis of the

12 assessment made with respect to a participant under sub13 section (a), the State agency, in consultation with the par14 ticipant, shall develop a self-sufficiency plan for the partic15 ipant, which—

16 ‘‘(1) explains the services (including child care

17 and other supportive services) that will be provided

18 by the State agency and the activities in which the

19 participant will take part under the program;

20 ‘‘(2) shall not require the participant to be en21 gaged in such activities for an unreasonable amount

22 of time each week;

23 ‘‘(3) sets forth an employment goal for the par24 ticipant, that, to the maximum extent possible and

25 consistent with this section, reflects the preferences

26 of the participant;
10

•HR 865 IH

1 ‘‘(4) takes into account the participant’s sup2 portive services needs, available program resources,

3 and local employment opportunities; and

4 ‘‘(5) shall not be considered a contract.

5 ‘‘(c) AGREEMENT TO SELF-SUFFICIENCY PLAN.—

6 After a self-sufficiency plan has been developed under sub7 section (b) with respect to a participant, the State agency

8 shall—

9 ‘‘(1) require the participant (or the adult care10 taker in the family of which the participant is a

11 member) to negotiate and enter into an agreement

12 with the State agency that specifies such matters as

13 the participant’s obligations under the program, the

14 duration of participation in the program, and the ac15 tivities to be conducted and the services to be pro16 vided in the course of such participation; and

17 ‘‘(2) give the participant such assistance as the

18 participant may require in reviewing and under19 standing the agreement.

20 ‘‘(d) AUTHORITY TO ASSIGN CASE MANAGERS.—The

21 State agency may assign to each participant in the pro22 gram and the participant’s family a case manager who is

23 responsible for assisting the family to obtain any services

24 which may be needed to assure effective participation in

25 the program.
11

•HR 865 IH

1 ‘‘SEC. 494. PROVISION OF PROGRAM AND EMPLOYMENT

2 INFORMATION.

3 ‘‘(a) The State agency shall ensure that all applicants

4 for and recipients of aid to families with dependent chil5 dren are encouraged, assisted, and required to fulfill their

6 responsibilities to support their children by preparing for,

7 accepting, and retaining such employment as they are ca8 pable of performing.

9 ‘‘(b) The State agency shall inform all applicants for

10 and recipients of aid to families with dependent children

11 of the education, employment, and training opportunities,

12 and the support services (including child care and health

13 coverage transition options), for which they are eligible,

14 the obligations of the State agency, and the rights, respon15 sibilities, and obligations of participants in the program.

16 ‘‘(c) The State agency shall—

17 ‘‘(1) provide (directly or through arrangements

18 with others) information on the types and locations

19 of child care services reasonably accessible to partici20 pants in the program;

21 ‘‘(2) inform participants that assistance is

22 available to help them select appropriate child care

23 services; and

24 ‘‘(3) on request, provide assistance to partici25 pants in obtaining child care services.
12

•HR 865 IH

1 ‘‘(d) The State agency must inform applicants for

2 and recipients of aid to families with dependent children

3 of the grounds for exemption from participation in the

4 program and the consequences of refusal to participate if

5 not exempt, and provide other appropriate information

6 with respect to such participation.

7 ‘‘(e) Within 1 month after the State agency gives a

8 recipient of aid to families with dependent children the in9 formation described in the preceding provisions of this

10 subsection, the State agency must notify the recipient of

11 the opportunity to indicate a desire to participate in the

12 program, including a clear description of how to enter the

13 program.

14 ‘‘SEC. 495. SERVICES AND ACTIVITIES UNDER THE PRO15 GRAM.

16 ‘‘(a) IN GENERAL.—In carrying out the program,

17 each State may make available the services and activities

18 authorized to be made available under part F, family

19 counseling services, mental health treatment services, and

20 such other services and activities as the State deems ap21 propriate.

22 ‘‘(b) AUTHORITY TO USE AMOUNTS THAT WOULD

23 OTHERWISE BE EXPENDED FOR FOOD STAMP BENEFITS

24 TO PROVIDE JOBS FOR, SUBSIDIZED WAGES OF, OR

25 MAKE CASH PAYMENTS TO PARTICIPANTS.—
13

•HR 865 IH

1 ‘‘(1) IN GENERAL.—Any State may, upon mu2 tual agreement with any participant in the pro3 gram—

4 ‘‘(A) inform the Secretary of Agriculture

5 that the participant consents to have the State

6 receive an amount equal to the value of the food

7 stamp benefits that would be received, but for

8 the operation of this part, under the food stamp

9 program (as defined in section 3(h) of the Food

10 Stamp Act of 1977) by the household (as de11 fined in section 3(i) of the Food Stamp Act of

12 1977) of which the participant is a member;

13 ‘‘(B) if such amount is received under sec14 tion 16(l) of the Food Stamp Act of 1977, re15 serve part or all of such amount; and

16 ‘‘(C) use the amount reserved under sub17 paragraph (B) for the purpose of providing a

18 job for, subsidizing in accordance with para19 graph (2) the wages of, or paying cash to the

20 participant.

21 ‘‘(2) WAGE SUBSIDY AGREEMENTS.—The State

22 may enter into an agreement with an employer who

23 agrees to provide the participant with a subsidized

24 job, under which—
14

•HR 865 IH

1 ‘‘(A) the State is required to pay the em2 ployer an amount specified in the agreement as

3 the subsidized portion of the wages of the par4 ticipant; and

5 ‘‘(B) the employer is required to pay the

6 participant wages of not less than an amount

7 specified in the agreement.

8 ‘‘(3) USE OF UNRESERVED AMOUNTS.—A State

9 may use for the purpose of this part any amount re10 ceived as a result of requests submitted under para11 graph (1)(A) that is not used in accordance with

12 paragraph (1)(C).

13 ‘‘SEC. 496. DISPUTE RESOLUTION PROCEDURES.

14 ‘‘Each State shall establish a conciliation procedure

15 for the resolution of disputes involving an individual’s par16 ticipation in the program and (if the dispute involved is

17 not resolved through conciliation) shall provide an oppor18 tunity for a hearing with respect to the dispute, which

19 hearing may be provided through a hearing process estab20 lished for purposes of resolving disputes with respect to

21 the program or through the provision of a hearing pursu22 ant to section 402(a)(4). The State may not suspend, re23 duce, discontinue, or terminate aid to families with de24 pendent children as a result of a dispute involving an indi25 vidual’s participation in the program until the individual
15

•HR 865 IH

1 has an opportunity for a hearing that meets the standards

2 set forth by the United States Supreme Court in Goldberg

3 v. Kelly, 397 U.S. 254 (1970).

4 ‘‘SEC. 497. PERFORMANCE STANDARDS.

5 ‘‘(a) Not later than 3 years after the effective date

6 of title I of the Self-Sufficiency Act of 1995, the Secretary

7 shall—

8 ‘‘(1) in consultation with the Secretary of

9 Labor, representatives of organizations representing

10 Governors, State and local program administrators,

11 educators, State job training coordinating councils,

12 community-based organizations, recipients, and

13 other interested persons, develop performance stand14 ards with respect to the programs established pursu15 ant to this part; and

16 ‘‘(2) submit to the appropriate committees of

17 jurisdiction of the Congress the recommendations of

18 the Secretary for performance standards developed

19 under paragraph (1), which recommendations shall

20 be made with respect to specific measurements of

21 outcomes and be based on the degree of success

22 which may reasonably be expected of particular

23 States in helping individuals to increase earnings,

24 achieve self-sufficiency, and reduce welfare depend-
16

•HR 865 IH

1 ency, and shall not be measured solely by levels of

2 activity or participation.

3 Performance standards developed under this subsection

4 shall be reviewed periodically by the Secretary and modi5 fied to the extent necessary.

6 ‘‘(b) The Secretary may collect information from the

7 States to assist in the development of performance stand8 ards under subsection (a), and shall include in the regula9 tions issued pursuant to section 102 of the Self-Suffi10 ciency Act of 1995 provisions establishing uniform report11 ing requirements under which States must furnish periodi12 cally information and data, including information and

13 data (for each program activity) on the average monthly

14 number of families assisted, the types of such families, the

15 amounts spent per family, the length of their participa16 tion, and such other matters as the Secretary may deter17 mine.

18 ‘‘(c) The Secretary shall develop and transmit to the

19 Congress, for appropriate legislative action, a proposal for

20 measuring State progress, providing technical assistance

21 to enable States to meet performance standards, and

22 modifying the Federal matching rate to reflect the relative

23 effectiveness of the various States in carrying out the pro24 gram.
17

•HR 865 IH

1 ‘‘SEC. 498. COORDINATION REQUIREMENTS.

2 ‘‘(a)(1) The Governor of each State shall assure that

3 program activities under this part are coordinated in that

4 State with programs operated under the Job Training

5 Partnership Act and with any other relevant employment,

6 training, and education programs available in that State.

7 Appropriate components of the State’s plan developed

8 under section 492(a)(1) which relate to job training and

9 work preparation shall be consistent with the coordination

10 criteria specified in the Governor’s coordination and spe11 cial services plan required under section 121 of the Job

12 Training Partnership Act.

13 ‘‘(2) The State plan so developed shall be submitted

14 to the State job training coordinating council not less than

15 60 days before its submission to the Secretary, for the

16 purpose of review and comment by the council. Concurrent

17 with submission of the plan to the State job training co18 ordinating council, the proposed State plan shall be pub19 lished and made reasonably available to the general public

20 through local news facilities and public announcements, in

21 order to provide the opportunity for review and comment.

22 ‘‘(3) The comments and recommendations of the

23 State job training coordinating council under paragraph

24 (2) shall be transmitted to the Governor of the State.

25 ‘‘(b) The Secretary of Health and Human Services

26 shall consult with the Secretaries of Education and of
18

•HR 865 IH

1 Labor on a continuing basis for the purpose of assuring

2 the maximum coordination of education and training serv3 ices in the development and implementation of the pro4 gram under this part.

5 ‘‘(c) The State agency responsible for administering

6 or supervising the administration of the State plan ap7 proved under part A shall consult with the State education

8 agency and the agency responsible for administering job

9 training programs in the State in order to promote coordi10 nation of the planning and delivery of services under the

11 program with programs operated under the Job Training

12 Partnership Act and with education programs available in

13 the State (including any program under the Adult Edu14 cation Act or Carl D. Perkins Vocational Education

15 Act).’’.

16 (c) FUNDING.—Section 403 of such Act (42 U.S.C.

17 603) is amended by adding at the end the following:

18 ‘‘(o)(1) Each State with a plan approved under part

19 G shall be entitled to payments under paragraph (6) for

20 any fiscal year in an amount equal to the sum of the appli21 cable percentages (specified in paragraph (6)) of its ex22 penditures to carry out the program under part G during

23 the fiscal year (subject to limitations prescribed by or pur24 suant to such part or this section on expenditures that

25 may be included for purposes of determining payment
19

•HR 865 IH

1 under paragraph (6)), but such payments with respect to

2 the State for the fiscal year may not exceed the limitation

3 determined under paragraph (2) with respect to the State

4 for the fiscal year.

5 ‘‘(2) The limitation determined under this paragraph

6 with respect to a State for any fiscal year is—

7 ‘‘(A) the amount allotted to the State for fiscal

8 year 1987 under part C as then in effect, plus

9 ‘‘(B) the amount that bears the same ratio to

10 the amount specified in paragraph (3) for the fiscal

11 year as the average monthly number of adult recipi12 ents (as defined in paragraph (4)) in the State in

13 the immediately preceding fiscal year bears to the

14 average monthly number of such recipients in all of

15 the States for the immediately preceding fiscal year.

16 ‘‘(3) The amount specified in this paragraph is

17 $1,300,000,000, reduced by the aggregate amount allotted

18 to all the States for fiscal year 1987 pursuant to part C

19 as then in effect.

20 ‘‘(4) For purposes of this subsection, the term ‘adult

21 recipient’ means, with respect to a State, an individual

22 other than a dependent child (unless the child is the custo23 dial parent of another dependent child) whose needs are

24 met (in whole or in part) with payments of aid to families
20

•HR 865 IH

1 with dependent children under the State plan approved

2 under this part.

3 ‘‘(5) None of the funds available to a State for pur4 poses of the programs or activities conducted under part

5 G shall be used for construction.

6 ‘‘(6)(A) In lieu of any payment under subsection (a)

7 or (l), the Secretary shall pay to each State with a plan

8 approved under part G with respect to expenditures by

9 the State to carry out a program under part G, an amount

10 equal to—

11 ‘‘(i) with respect to so much of such expendi12 tures in a fiscal year as do not exceed the State’s

13 expenditures in the fiscal year 1987 with respect to

14 which payments were made to the State from its al15 lotment for such fiscal year pursuant to part C as

16 then in effect, 90 percent; and

17 ‘‘(ii) with respect to so much of such expendi18 tures in a fiscal year as exceed the amount described

19 in clause (i)—

20 ‘‘(I) 50 percent, in the case of expenditures

21 for administrative costs made by a State in op22 erating such a program for such fiscal year

23 (other than the personnel costs for staff em24 ployed full-time in the operation of such pro25 gram) and the costs of transportation and other
21

•HR 865 IH

1 work-related supportive services under section

2 402(g)(2), and

3 ‘‘(II) the greater of 60 percent or the Fed4 eral medical assistance percentage (as defined

5 in section 1118 in the case of any State to

6 which section 1108 applies, or as defined in sec7 tion 1905(b) in the case of any other State), in

8 the case of expenditures made by a State in op9 erating such a program for such fiscal year

10 (other than for costs described in subclause

11 (I)).

12 ‘‘(B) With respect to the amount for which payment

13 is made to a State under subparagraph (A)(i), the State’s

14 expenditures for the costs of operating a program estab15 lished under part G may be in cash or in kind, fairly evalu16 ated.’’.

17 (d) STATES OPERATING SELF-SUFFICIENCY PLANS

18 ENTITLED TO HALF OF RESULTING SAVINGS.—Section

19 403 of such Act (42 U.S.C. 603), as amended by sub20 section (c) of this section, is amended by adding at the

21 end the following:

22 ‘‘(p)(1) In addition to any other payment under this

23 part, each State with a plan approved under part G for

24 a fiscal year shall be entitled to receive from the Secretary
22

•HR 865 IH

1 during the immediately succeeding fiscal year an amount

equal to 1 2 ⁄2 of the amount (if any) by which—

3 ‘‘(A) the total amount paid to the State under

4 this part for the immediately preceding fiscal year,

5 adjusted in accordance with paragraph (2); exceeds

6 ‘‘(B) the total amount paid to the State under

7 this part for the fiscal year.

8 ‘‘(2) The Director of the Office of Management and

9 Budget shall adjust the amount described in paragraph

10 (1)(A) for a State with respect to a fiscal year, in direct

11 proportion to—

12 ‘‘(A) the net change (if any) during the fiscal

13 year in the Consumer Price Index for All Urban

14 Consumers; and

15 ‘‘(B) the net change (if any) during the fiscal

16 year in the number of individuals eligible for aid

17 under the State plan approved under this part, with18 out regard to whether such individuals have applied

19 for such aid.

20 ‘‘(3) Each State to which funds are paid under this

21 subsection may not use such funds for any purpose other

22 than the purposes for which funds may be used under this

23 part.’’.

24 (e) REGULATIONS.—
23

•HR 865 IH

1 (1) IN GENERAL.—The Secretary, in consulta2 tion with the Secretary of Labor and with the re3 sponsible State agencies described in section

4 492(a)(2) of the Social Security Act, shall prescribe

5 such regulations as may be necessary to implement

6 the amendments made by this section, including reg7 ulations establishing uniform data collection require8 ments.

9 (2) DEADLINE FOR ISSUANCE OF PROPOSED

10 REGULATIONS.—Not later than 3 months after the

11 date of the enactment of this Act, the Secretary of

12 Health and Human Services shall issue proposed

13 regulations pursuant to paragraph (1).

14 (3) DEADLINE FOR ISSUANCE OF FINAL REGU15 LATIONS.—Not later than 9 months after the date

16 of the enactment of this Act, the Secretary shall

17 issue final regulations pursuant to paragraph (1).

18 SEC. 102. CHILD CARE GUARANTEED TO PARTICIPANTS IN

19 STATE SELF-SUFFICIENCY PROGRAMS.

20 Section 402(g)(1)(A)(i) of the Social Security Act (42

21 U.S.C. 602(g)(1)(A)(i)) is amended—

22 (1) by striking ‘‘and’’ at the end of subclause

23 (I);

24 (2) by striking the period at the end and insert25 ing ‘‘; and’’; and
24

•HR 865 IH

1 (3) by adding after and below the end the fol2 lowing:

3 ‘‘(III) for each individual who is participating

4 in the State program established under part G in ac5 cordance with the self-sufficiency plan established

6 for the individual under section 492.’’.

7 SEC. 103. INCREASED FEDERAL MATCHING RATES FOR

8 CHILD CARE PROVIDED BY STATES WITH

9 SELF-SUFFICIENCY PROGRAMS.

10 (a) AFDC AND TRANSITIONAL CHILD CARE.—Sec11 tion 402(g)(3)(A) of such Act (42 U.S.C. 602(g)(3)(A))

12 is amended by adding at the end the following:

13 ‘‘(iii) In the case of a State with a plan approved

14 under part G for the fiscal year, the applicable rate for

15 purposes of section 403(a) shall be the rate otherwise de16 termined under this subparagraph, increased by 10 per17 centage points.’’.

18 (b) AT-RISK CHILD CARE.—Section 403(n)(1)(A) of

19 such Act (42 U.S.C. 603(n)(1)(A)) is amended by insert20 ing ‘‘(increased by 10 percentage points, in the case of

21 a State with a plan approved under part G)’’ before ‘‘of

22 the expenditures’’.
25

•HR 865 IH

1 SEC. 104. ELIMINATION OF REQUIREMENT THAT FAMILIES

2 IN STATES WITH SELF-SUFFICIENCY PRO3 GRAMS HAVE RECEIVED AFDC FOR A MINI4 MUM PERIOD BEFORE BECOMING ELIGIBLE

5 FOR TRANSITIONAL MEDICAID BENEFITS OR

6 TRANSITIONAL CHILD CARE BENEFITS.

7 (a) MEDICAID.—Section 1925(a)(1) of the Social Se8 curity Act (42 U.S.C. 1396r–6(a)(1)) is amended by in9 serting ‘‘(or, in a State with an approved plan under part

10 G of title IV, during any of the 6 months)’’ after ‘‘6

11 months’’.

12 (b) TRANSITIONAL CHILD CARE.—Section

13 402(g)(1)(A)(iv) of such Act (42 U.S.C. 602(g)(1)(A)(iv))

14 is amended by inserting ‘‘in a State that does not have

15 a plan approved under part G’’ after ‘‘A family’’.

16 SEC. 105. ELIGIBILITY FOR TRANSITIONAL MEDICAID BEN17 EFITS AND TRANSITIONAL CHILD CARE BEN18 EFITS IN STATES WITH SELF-SUFFICIENCY

19 PROGRAMS WITHOUT REGARD TO TYPE OF

20 INCOME THAT WOULD OTHERWISE RESULT

21 IN INELIGIBILITY FOR BENEFITS.

22 (a) MEDICAID.—Section 1925(a)(1) of the Social Se23 curity Act (42 U.S.C. 1396r–6(a)(1)) is amended by in24 serting ‘‘, the receipt of any income of the caretaker rel25 ative (in the case of a State with an approved plan under

26 part G of title IV),’’ after ‘‘subsection (e))’’.
26

•HR 865 IH

1 (b) TRANSITIONAL CHILD CARE.—Section

2 402(g)(1)(A)(ii) of such Act (42 U.S.C. 602(g)(1)(A)(ii))

3 is amended by striking ‘‘, or increased income from, such

4 employment or by reason of subsection (a)(8)(B)(ii)(II)’’

5 and inserting ‘‘such employment, by reason of subsection

6 (a)(8)(B)(ii)(II), increased income from such employment

7 if the State does not have a plan approved under part G,

8 or excessive income if the State has such a plan’’.

9 SEC. 106. ELIMINATION OF CERTAIN EXCEPTIONS FROM

10 REQUIREMENT THAT MINOR PARENTS AND

11 PREGNANT MINORS WITHOUT CHILDREN

12 LIVE WITH RESPONSIBLE ADULT IN STATES

13 WITH SELF-SUFFICIENCY PROGRAMS.

14 Clauses (iv) and (v) of section 402(a)(43)(B) of the

15 Social Security Act (42 U.S.C. 602(a)(43)(B) (iv) and (v))

16 are each amended by inserting ‘‘, and the State does not

17 have a plan approved under part G’’ before the semicolon.

18 TITLE II—OTHER PROVISIONS

19 SEC. 201. DISREGARD OF PERSONS WHO BECOME FAMILY

20 MEMBERS AFTER INITIAL RECEIPT OF AFDC.

21 Section 402(a) of the Social Security Act (42 U.S.C.

22 602(a)) is amended—

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

24 (44);
27

•HR 865 IH

1 (2) by striking the period at the end of para2 graph (45) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (45) the fol4 lowing:

5 ‘‘(46) if the State has a plan approved under

6 part G, at the option of the State, provide that, in

7 determining the amount of aid payable under the

8 State plan to a family—

9 ‘‘(A) except as provided in subparagraph

10 (B), the family shall not be regarded as having

11 more members than the number of such mem12 bers at the time the family first becomes a re13 cipient of aid under the State plan; and

14 ‘‘(B) if the State has exercised the option

15 provided under section 406(b) with respect to

16 aid for pregnant women, a 1-parent or 2-parent

17 family that includes a pregnant woman and no

18 children shall not be regarded as having more

19 members than the number of such members im20 mediately after the end of the pregnancy.’’.

21 SEC. 202. ENHANCED PAYMENTS FOR PARTICIPANTS IN

22 THE SELF-SUFFICIENCY PROGRAM.

23 Section 402(a) of the Social Security Act (42 U.S.C.

24 602(a)), as amended by section 201 of this Act, is amend25 ed—
28

•HR 865 IH

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

2 (45);

3 (2) by striking the period at the end of para4 graph (46) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (46) the fol6 lowing:

7 ‘‘(47) if the State has a plan approved under

8 part G, at the option of the State, provide that the

9 amount of aid otherwise payable on a monthly basis

10 to a family under the State plan shall be increased

11 by not more than $50 if each member of the family

12 who is required to participate in a self-sufficiency

13 program established by the State under part G does

14 so on a full-time basis.’’.

15 SEC. 203. DIVERSION PAYMENTS.

16 (a) IN GENERAL.—Section 402(a) of the Social Secu17 rity Act (42 U.S.C. 602(a)), as amended by sections 201

18 and 202 of this Act, is amended—

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

20 (46);

21 (2) by striking the period at the end of para22 graph (47) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (47) the fol24 lowing:
29

•HR 865 IH

1 ‘‘(48) if the State has a plan approved under

2 part G, at the option of the State, provide that, if

3 the caseworker for a family who is eligible for, but

4 not receiving, aid under the State plan determines

5 that the caretaker relative in the family will be em6 ployed by the end of the 3-month period that begins

7 with the date the family will become a recipient of

8 such aid and that, upon such employment, the fam9 ily will not need further assistance, then the State

10 shall, in lieu of the first 3 monthly payments of such

11 aid to the family, pay to the family, in a lump sum,

12 an amount equal 3 times the amount of the first

13 such monthly payment, on the date the first such

14 monthly payment would otherwise be made, and sub15 sequent payments (if any) of such aid to the family

16 shall be reduced (but not below zero) by an amount

17 sufficient to recover the amount of the lump-sum

18 payment.’’.

19 (b) 3 MONTHS OF CHILD CARE FOR FAMILIES

20 RECEIVING A DIVERSION PAYMENT.—Section

21 402(g)(1)(A)(i) of such Act (42 U.S.C. 602(g)(1)(A)(i)),

22 as amended by section 102 of this Act, is amended—

23 (1) by striking ‘‘and’’ at the end of subclause

24 (II);
30

•HR 865 IH

1 (2) by striking the period at the end and insert2 ing ‘‘; and’’; and

3 (3) by adding after and below the end the fol4 lowing:

5 ‘‘(IV) for 3 months, for each family with a de6 pendent child requiring such care if the family re7 ceives a diversion payment under subsection

8 (a)(48).’’.

9 (c) MEDICAID FOR FAMILIES RECEIVING A DIVER10 SION PAYMENT.—Section 1902(a)(10)(A)(i)(I) of such

11 Act (42 U.S.C. 1396a(a)(10)(A)(i)(I)) is amended by in12 serting ‘‘, and including individuals receiving assistance

13 under section 402(a)(48)’’ after ‘‘482(e)(6)’’.

14 SEC. 204. AID TO FAMILIES WITHOUT REGARD TO THE

15 NUMBER OF PARENTS IN THE HOME.

16 (a) IN GENERAL.—

17 (1) Section 402(a)(41) of the Social Security

18 Act (42 U.S.C. 602(a)(41)) is amended by inserting

19 ‘‘if the State does not have a plan approved under

20 part G (otherwise, at the option of the State),’’ after

21 ‘‘(41)’’.

22 (2) Section 407(a) of such Act (42 U.S.C.

23 607(a)) is amended by inserting ‘‘if the State does

24 not have a plan approved under part G (otherwise,

25 at the option of the State),’’ after ‘‘shall,’’.
31

•HR 865 IH

1 (b) CONFORMING AMENDMENTS.—

2 (1) Section 402(a)(38)(B) of such Act (42

3 U.S.C. 602(a)(38)(B)) is amended by inserting ‘‘, if

4 the State exercises the option provided under para5 graph (41),’’ after ‘‘406(a) or’’.

6 (2) Section 406(a)(1) of such Act (42 U.S.C.

7 606(a)(1)) is amended by inserting ‘‘, if a resident

8 of a State that has exercised the option provided

9 under section 402(a)(41),’’ after ‘‘(1) who’’.

10 (3) Section 406(b)(1) of such Act (42 U.S.C.

11 606(b)(1)) is amended by inserting ‘‘, in the case of

12 a State that has exercised the option provided under

13 section 402(a)(41),’’ after ‘‘mental incapacity of a

14 parent or’’.

15 (4) Section 472(a) of such Act (42 U.S.C.

16 672(a)) is amended by inserting ‘‘, in the case of a

17 State that has exercised the option provided under

18 section 402(a)(41),’’ after ‘‘406(a) or’’.

19 (5) Section 473(a)(2)(A)(i) of such Act (42

20 U.S.C. 672(a)(2)(A)(i)) is amended by inserting ‘‘,

21 in the case of a State that has exercised the option

22 provided under section 402(a)(41),’’ after ‘‘406(a)

23 or’’.
32

•HR 865 IH

1 SEC. 205. 2-PARENT FAMILIES INELIGIBLE FOR AFDC UNTIL

2 30 DAYS AFTER LOSS OF EMPLOYMENT.

3 Section 402(a)(10) of the Social Security Act (42

4 U.S.C. 602(a)(10)) is amended—

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (A);

7 (2) by adding ‘‘and’’ at the end of subpara8 graph (B); and

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

10 ‘‘(C) notwithstanding subparagraph (B), if the

11 State has a plan approved under part G, at the op12 tion of the State, provide that an application for aid

13 under the plan that is submitted on behalf of a fam14 ily that includes 2 unemployed parents shall not be

15 effective until the end of the 30-day period that be16 gins with the most recent date of employment of ei17 ther such parent;’’.

18 SEC. 206. INCREASE IN EARNED INCOME DISREGARD AND

19 ELIMINATION OF TIME LIMITATION ON

20 EARNED INCOME DISREGARD.

21 Section 402(a)(8) of the Social Security Act (42

22 U.S.C. 602(a)(8)) is amended—

23 (1) by striking ‘‘one-third of the remainder

24 thereof’’ and inserting ‘‘(aa) in the case of a State

25 which does not have a plan approved under part G,

1 26 ⁄3 of the remainder thereof, or, (bb) in the case of
33

•HR 865 IH

1 a State which has such a plan, whichever of the fol2 lowing (but not both) as the State shall elect to disregard: (1) not more than 1 3 ⁄2 of the remainder there4 of, or (2) all earned income of the caretaker relative

5 (if the caretaker relative has not attained 20 years

6 of age) which is derived from a summer youth em7 ployment and training program carried out under

8 part B of title II of the Job Training Partnership

9 Act (29 U.S.C. 1630 et seq.)’’; and

10 (2) in subparagraph (B)(ii), by striking

11 ‘‘(ii)(I)’’ and inserting ‘‘(ii) at the option of the

12 State (I)’’.

13 SEC. 207. INCREASE IN ASSET LIMITATIONS.

14 Section 402(a)(7)(B) of the Social Security Act (42

15 U.S.C. 602(a)(7)(B)) is amended—

16 (1) by inserting ‘‘(or, in the case of a State

17 which has a plan approved under part G, $2,000)’’

18 after ‘‘$1,000’’; and

19 (2) in clause (i)—

20 (A) by striking ‘‘so much of’’; and

21 (B) by striking ‘‘as does not exceed such

22 amount as the Secretary may prescribe’’.
34

•HR 865 IH

1 SEC. 208. AMENDMENTS TO THE FOOD STAMP ACT OF 1977.

2 (a) EXCLUSION FROM INCOME.—Section 5(d) of the

3 Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amend4 ed—

5 (1) by striking ‘‘and (16)’’ and inserting

6 ‘‘(16)’’, and

7 (2) by inserting before the period at the end the

8 following:

9 ‘‘, and (17) at the option of the State agency, not more

10 than $90 per month during the 1-year period beginning

11 on the date a household member completes participation

12 in the program established by a State under part G of

13 title IV of the Social Security Act’’.

14 (b) DEDUCTION.—Section 5(e) of the Food Stamp

15 Act of 1977 (7 U.S.C. 2014(e)) is amended by adding at

16 the end the following:

17 ‘‘All households that include a member who is a full-time

18 participant in the program established by a State under

19 part G of title IV of the Social Security Act shall be al20 lowed a deduction of $100 in each month of participation

21 in such program.’’.

22 (c) EMPLOYMENT CASH OUT OF FOOD STAMP BENE23 FITS.—Section 16 of the Food Stamp Act of 1977 (7

24 U.S.C. 2025) is amended by adding at the end the follow25 ing:
35

•HR 865 IH

1 ‘‘(l)(1) If a State that has a plan approved under part

2 G of title IV of the Social Security Act informs the Sec3 retary that an individual who—

4 ‘‘(A) is engaged on a full-time basis in activities

5 under the self-sufficiency plan in effect under part

6 G of title IV of the Social Security Act;

7 ‘‘(B) is a member of household all of whose

8 members receive benefits under a State plan ap9 proved under part A of title IV of the Social Secu10 rity Act; and

11 ‘‘(C) consents to have the State receive an

12 amount equal to the value of the food stamp benefits

13 that would be received under the food stamp pro14 gram by such household but for the operation of this

15 subsection, then paragraph (2) shall apply with re16 spect to such amount, such State, and such house17 hold.

18 ‘‘(2)(A) The Secretary shall pay such amount to the

19 State.

20 ‘‘(B) The State shall expend such amount with re21 spect to such individual in accordance with subsection (b)

22 of section 495 of the Social Security Act.

23 ‘‘(C) For purposes of—
36

•HR 865 IH

1 ‘‘(i) sections 5 and 8(a) of this Act, such

2 amount shall be excluded from household income

3 and resources; and

4 ‘‘(ii) section 8(b) of this Act, such amount shall

5 be considered as the value of an allotment provided

6 to the household.

7 ‘‘(D) Such household shall not receive food stamp

8 benefits from the State agency for the period during which

9 the member continues to be employed in a job provided,

10 to receive such wages subsidized, or to receive such cash

11 payments made under such section.’’.

12 (d) EFFECTIVE DATE AND APPLICATION OF AMEND13 MENTS.—The amendments made by this section shall not

14 apply with respect to certification periods beginning before

15 the effective date of this Act.

16 SEC. 209. OPTION TO IMPOSE PENALTY FOR FAILURE TO

17 ATTEND SCHOOL.

18 Section 402(a) of the Social Security Act (42 U.S.C.

19 602(a)), as amended by sections 201, 202, and 203(a) of

20 this Act, is amended—

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

22 (47);

23 (2) by striking the period at the end of para24 graph (48) and inserting ‘‘; and’’; and
37

•HR 865 IH

1 (3) by inserting after paragraph (48) the fol2 lowing:

3 ‘‘(49) if the State has a plan approved under

4 part G, provide that if a member of a family receiv5 ing aid under the State plan approved under this

6 part who is required by State law to attend school

7 fails without good cause (as determined by the

8 State) to maintain satisfactory school attendance (as

9 defined by the State), the State may disregard part

10 or all of the needs of the family member in making

11 the determination with respect to the family under

12 paragraph (7).’’.

13 SEC. 210. OPTION TO IMPOSE PENALTY FOR FAILURE TO

14 HAVE CHILDREN IMMUNIZED.

15 Section 402(a) of the Social Security Act (42 U.S.C.

16 602(a)), as amended by sections 201, 202, 203(a), and

17 209 of this Act, is amended—

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

19 (48);

20 (2) by striking the period at the end of para21 graph (49) and inserting ‘‘; and’’; and

22 (3) by inserting after paragraph (49) the fol23 lowing:

24 ‘‘(50) if the State has a plan approved under

25 part G, provide that the State may impose such pen-
38

•HR 865 IH

1 alties as the State deems appropriate on a recipient

2 of aid under the State plan approved under this part

3 whose dependent child has not received immuniza4 tions in accordance with the then most recent rec5 ommendations of the public health department (or

6 equivalent) of the State.’’.

7 TITLE III—RELATED

8 AMENDMENTS

9 SEC. 301. DENIAL OF WELFARE BENEFITS TO ALIENS.

10 (a) WELFARE BENEFITS DENIED TO ILLEGAL

11 ALIENS.—An alien who is unlawfully present in the

12 United States shall not be eligible for benefits or services

13 under any Federal or federally assisted program which

14 provides benefits or services based, in whole or in part,

15 on need.

16 (b) STATE OPTION TO DENY WELFARE BENEFITS

17 TO OTHER ALIENS.—A State that is operating a federally

18 assisted program under which eligibility for benefits or

19 services is based, in whole or in part, on need may deny

20 benefits and services under the program to any alien who

21 is lawfully present in the United States.
39

•HR 865 IH

1 SEC. 302. INCLUSION IN CONSUMER CREDIT REPORTS OF

2 INFORMATION ON OVERDUE CHILD SUPPORT

3 OBLIGATIONS OF THE CONSUMER.

4 (a) PROVISION TO CONSUMER REPORTING AGENCIES

5 OF INFORMATION ON OVERDUE CHILD SUPPORT OBLIGA6 TIONS OF ABSENT PARENTS.—Section 466(a)(7) of the

7 Social Security Act (42 U.S.C. 666(a)(7)) is amended—

8 (1) by striking ‘‘will’’ and inserting ‘‘shall’’;

9 (2) by striking ‘‘upon the request of such agen10 cy’’;

11 (3) by inserting ‘‘and’’ before ‘‘(B)’’; and

12 (4) by striking ‘‘, and (C)’’ and all that follows

13 through ‘‘State’’.

14 (b) INCLUSION IN DEFINITION OF OVERDUE SUP15 PORT OF CHILD SUPPORT DELINQUENCIES OWED WITH

16 RESPECT TO ADULTS.—Section 466(e) of such Act (42

17 U.S.C. 666(e)) is amended by inserting ‘‘For purposes of

18 subsection (a)(7), overdue support includes support owed

19 to or on behalf of a child who is not a minor.’’ after the

20 1st sentence.

21 (c) EFFECTIVE DATE.—The amendments made by

22 this section shall take effect on the 1st day of the 1st cal23 endar quarter that begins 6 or more months after the date

24 of the enactment of this Act.
40

•HR 865 IH

1 SEC. 303. QUARTERLY PAYMENTS OF EARNED INCOME

2 CREDIT.

3 (a) IN GENERAL.—Chapter 77 of the Internal Reve4 nue Code of 1986 (relating to miscellaneous provisions)

5 is amended by adding at the end the following new section:

6 ‘‘SEC. 7524. QUARTERLY PAYMENTS BY DEPARTMENT OF

7 TREASURY OF EARNED INCOME CREDIT.

8 ‘‘(a) IN GENERAL.—The Secretary shall establish a

9 program under which eligible individuals receive, upon re10 quest, advance payments from the Secretary of the credit

11 under section 32 (relating to earned income tax credit).

12 ‘‘(b) PAYMENTS.—

13 ‘‘(1) FREQUENCY.—The payments under the

14 program established pursuant to subsection (a) shall

15 be made not less frequently than quarterly.

16 ‘‘(2) AMOUNT.—The amount paid to any indi17 vidual for any period during a calendar year shall be

18 such period’s proportionate share of the Secretary’s

19 estimate of the overpayment of tax by such individ20 ual (for the taxable year ending with or within such

21 calendar year) which is attributable to the credit re22 ferred to in subsection (a).

23 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this

24 section, the term ‘eligible individual’ means, with respect

25 to a calendar year, any individual if—
41

•HR 865 IH

1 ‘‘(1) the credit referred to in subsection (a) is

2 allowable to such individual for the taxable year end3 ing with or within such calendar year,

4 ‘‘(2) the liability for tax imposed by subtitle A

5 is reasonably expected to be less than the amount of

6 the credit which is reasonably expected to be allowed

7 for such taxable year, and

8 ‘‘(3) such individual provides the Secretary with

9 such information as the Secretary requires in order

10 to determine the amounts payable under this sec11 tion.’’.

12 (b) COORDINATION WITH CREDIT ON RETURN.—

13 Paragraph (1) of section 32(g) of such Code is amended

14 by inserting ‘‘or by the Secretary under section 7524’’

15 after ‘‘section 3507’’.

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

17 for such chapter 77 is amended by adding at the end the

18 following new item:

‘‘Sec. 7524. Quarterly payments of earned income credit.’’

19 (d) APPROPRIATION.—There are hereby appropriated

20 such sums as are necessary to make the payments under

21 section 7524 of the Internal Revenue Code of 1986, as

22 added by this section.
42

•HR 865 IH

1 TITLE IV—EFFECTIVE DATE

2 SEC. 401. EFFECTIVE DATE.

3 Except as otherwise provided in this Act, this Act and

4 the amendments made by this Act shall take effect 6

5 months after the date of the enactment of this Act.

Æ

HR 865 IH——2

HR 865 IH——3

HR 865 IH——4