I

104TH CONGRESS

1ST SESSION H. R. 819

To amend title IV of the Social Security Act to provide welfare families

with the education, training, job search, and work experience needed

to prepare them to leave welfare within 2 years, to increase the rate

of paternity establishment for children receiving welfare benefits, to provide States with greater flexibility in providing welfare, and to authorize

States to conduct demonstration projects to test the effectiveness of

policies designed to help people leave welfare and increase their financial

security.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1995

Mrs. JOHNSON of Connecticut introduced the following bill; which was referred

to the Committee on Ways and Means and, in addition, to the Committee

on 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 title IV of the Social Security Act to provide

welfare families with the education, training, job search,

and work experience needed to prepare them to leave

welfare within 2 years, to increase the rate of paternity

establishment for children receiving welfare benefits, to

provide States with greater flexibility in providing welfare, and to authorize States to conduct demonstration

projects to test the effectiveness of policies designed to

help people leave welfare and increase their financial

security.
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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 ‘‘Welfare to Work Act

5 of 1995’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—AFDC TRANSITION AND WORK PROGRAM

Sec. 101. AFDC transition and work program.

Sec. 102. Community work experience program amendments.

Sec. 103. Work supplementation program amendments.

Sec. 104. Work requirement for noncustodial parents with child support arrearages.

Sec. 105. Requirement that minor noncustodial parents who fail to provide

child or spousal support participate in work, job training,

money management and parenting classes, and career counseling.

Sec. 106. Effective date; regulations.

TITLE II—PATERNITY ESTABLISHMENT

Sec. 201. Cooperation requirement and good cause exception.

Sec. 202. Teens receiving AFDC required to live at home.

Sec. 203. Increase in paternity establishment percentage.

Sec. 204. Effective date.

TITLE III—EXPANSION OF STATUTORY FLEXIBILITY OF STATES

Sec. 301. Option to convert AFDC into a block grant program.

Sec. 302. Option to deny AFDC to minor unmarried parents.

Sec. 303. Option to treat interstate immigrants under rules of former State.

Sec. 304. Option to impose penalty for failure to attend school.

Sec. 305. Option to deny AFDC for additional children.

Sec. 306. Option to modify certain AFDC income disregard rules.

Sec. 307. Option to provide married couple transition benefit.

Sec. 308. Option to disregard income and resources designated for education,

training, and employability, or related to self-employment.

Sec. 309. Option to require attendance at parenting and money managment

classes, and prior approval of any action that would result in

a change of school for a dependent child.

Sec. 310. Effective date.

TITLE IV—EXPANSION OF STATE AND LOCAL FLEXIBILITY

Sec. 401. Interagency Waiver Request Board.
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Sec. 402. Application to implement assistance plans.

Sec. 403. Review and approval of applications; waivers.

Sec. 404. Implementation of assistance plans; evaluations.

Sec. 405. Public-Private Partnership Committees.

Sec. 406. Definitions.

Sec. 407. Reports.

Sec. 408. Sunset.

TITLE V—MISCELLANEOUS

Sec. 501. AFDC recipients required to undergo necessary substance abuse

treatment as a condition of receiving AFDC.

Sec. 502. Evaluation of education and training programs.

Sec. 503. Job search required while AFDC application is pending.

Sec. 504. Fraud and administrative efficiency.

Sec. 505. Required immunizations for children.

1 TITLE I—AFDC TRANSITION AND

2 WORK PROGRAM

3 SEC. 101. AFDC TRANSITION AND WORK PROGRAM.

4 (a) PURPOSE.—Section 481(a) of the Social Security

5 Act (42 U.S.C. 681(a)) is amended by striking all that

6 follows ‘‘and’’ and inserting ‘‘work experience needed to

7 prepare them for a life without welfare.’’.

8 (b) ESTABLISHMENT AND OPERATION OF PRO9 GRAM.—

10 (1) TRANSITION AND WORK COMPONENTS.—

11 Section 482 of such Act (42 U.S.C. 682) is amended

12 by adding at the end the following:

13 ‘‘(j) The program under this part must include—

14 ‘‘(1) a transition component that—

15 ‘‘(A) must include the job search program

16 established by the State under subsection (g);

17 and
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1 ‘‘(B) may include any other service, activ2 ity, or program of the State that is referred to

3 in subsection (d)(1); and

4 ‘‘(2) a work component that may include—

5 ‘‘(A) a work supplementation program op6 erated by the State under subsection (e);

7 ‘‘(B) a community work experience pro8 gram established by the State under subsection

9 (f); or

10 ‘‘(C) any other work program of the State

11 that is approved by the Secretary.’’.

12 (2) PARTICIPATION REQUIREMENTS.—Section

13 402(a)(19) of such Act (42 U.S.C. 602(a)(19)) is

14 amended by adding at the end the following:

15 ‘‘(I)(i) as used in this subparagraph, the

16 term ‘qualified individual’ means—

17 ‘‘(I) all individuals eligible for aid

18 under the plan who applied for such aid on

19 or after October 1, 1996, and are not de20 scribed in subparagraph (C); and

21 ‘‘(II) on and after October 1, 2000,

22 all individuals eligible for aid under the

23 plan who are not described in subpara24 graph (C);
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1 ‘‘(ii)(I) each qualified individual must par2 ticipate in the transition component of the pro3 gram of the State under part F, except that—

4 ‘‘(aa) a qualified individual may not

5 be required (but may be allowed) to par6 ticipate in the transition component if, on

7 the basis of demographic criteria, the State

8 finds that it is unlikely that the individual

9 will be a recipient of aid under the plan

10 during a significant length of time;

11 ‘‘(bb) a qualified individual may not

12 participate in the transition component if

13 the individual has elected to participate in

14 the work component; and

15 ‘‘(cc) a qualified individual may not

16 participate in the transition component

17 after the first 24 months (or, at the option

18 of the State with respect to some or all

19 qualified individuals based on their desire

20 to work or on their readiness for employ21 ment, any period of lesser duration) for

22 which the individual is a qualified individ23 ual; and

24 ‘‘(dd) the State may, at its option, ex25 empt a qualified individual, during 12 of
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1 the first 24 months for which an individual

2 is a qualified individual, from any require3 ment to participate in the transition com4 ponent if the individual is described in

5 paragraph (35)(A) and is in compliance

6 with paragraph (35)(A);

7 ‘‘(II)(aa) each qualified individual partici8 pating in the transition component must par9 ticipate in activities under such component for

10 an average of not fewer than 10 hours per week

11 during the first 24 months of such participa12 tion;

13 ‘‘(bb) the State, in consultation with the

14 Secretary, must establish guidelines by which

15 determinations under item (aa) will be made,

16 and which, in the case of educational activities,

17 must provide that an individual who is enrolled

18 full-time in a program of study at an edu19 cational institution (including a vocational or

20 technical training school), as determined by the

21 institution, and is making satisfactory progress

22 in the program of study, as determined by the

23 institution, is to be regarded as participating in

24 the transition component, in accordance with

25 such rules as the Secretary may prescribe (in-
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1 cluding rules governing how time spent in such

2 a program of study is to be converted into

3 hours of participation in the transition compo4 nent);

5 ‘‘(iii)(I) if a qualified individual (other

6 than a qualified individual who is a member of

7 a family receiving aid under the plan by reason

8 of section 407) is not participating in the tran9 sition component of the program, the State

10 must require the qualified individual to partici11 pate in the work component of the program for

12 35 hours per week (or 30 hours per week, if the

13 State requires the participant to engage in a

14 job search program established by the State

15 under section 482(g));

16 ‘‘(II) in the case of a family which has re17 ceived aid under the plan by reason of section

18 407, the State must require at least 1 parent

19 in the family to participate in the work compo20 nent by engaging in work activities for 32 hours

21 per week and by engaging in job search activi22 ties for 8 hours per week;

23 ‘‘(III) any qualified individual participating

24 in the work component, may, with the approval

25 of the State, discontinue participation in the
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1 work component and begin or resume participa2 tion in the transition component, subject to

3 clause (ii)(I)(cc);

4 ‘‘(iv) each qualified individual must cooper5 ate with the State in developing a plan which—

6 ‘‘(I) describes the respective respon7 sibilities of the State and of the individual

8 under the program with the goal of prepar9 ing the individual for work; and

10 ‘‘(II) includes a written statement in11 forming the individual that, upon comple12 tion of the transition component of the

13 program, aid under the State plan under

14 this part will be discontinued unless the in15 dividual finds gainful employment or is

16 participating in the work component of the

17 program;

18 ‘‘(v) if the State determines that a quali19 fied individual has failed to comply with any re20 quirement imposed under this subparagraph—

21 ‘‘(I) in the case of the 1st such fail22 ure, the State shall reduce the amount of

23 aid otherwise payable under this part to

24 the family of the individual by an amount

25 equal to 25 percent of the sum of such
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1 otherwise payable amount and any food

2 stamp benefits payable under the Food

3 Stamp Act of 1977 to a household that in4 cludes a member of the family, and shall

5 apply such reduction until the failure to

6 comply ceases;

7 ‘‘(II) in the case of the 2nd such fail8 ure or a 1st such failure that continues for

9 more than 1 calendar month, the State

10 shall reduce the amount of aid otherwise

11 payable under this part to the family of

12 the individual by an amount equal to 25

13 percent of the sum of such otherwise pay14 able amount and any food stamp benefits

15 payable under the Food Stamp Act of

16 1977 to a household that includes a mem17 ber of the family, and shall apply such re18 duction until the failure to comply ceases;

19 ‘‘(III) in the case of the 3rd such fail20 ure, the family of the individual shall not

21 be eligible for aid under the State plan

22 under this part, notwithstanding any other

23 provision of this part; and

24 ‘‘(IV) any 1st such failure that contin25 ues for more than 1 calendar month shall
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1 be considered the 2nd such failure, and

2 any 2nd such failure that continues for

3 more than 3 calendar months shall be con4 sidered the 3rd such failure;

5 ‘‘(vi) at the option of the State, the State

6 may impose a rule under which the family of an

7 individual shall not be eligible for aid under the

8 State plan under this part, notwithstanding any

9 other provision of this part, after the individual

10 has received such aid for 60 months (whether

11 or not consecutive); and

12 ‘‘(vii) if a family becomes ineligible for aid

13 under the State plan under this part by reason

14 of clause (v)(II) or (vi), the family shall, for

15 purposes of medical assistance under the State

16 plan under title XIX, be deemed to be a recipi17 ent of aid under the State plan under this part

18 for so long as the family is otherwise eligible for

19 aid under the State plan under this part.’’.

20 (3) PERSONS EXEMPTED FROM PARTICIPA21 TION.—Section 402(a)(19)(C) of such Act (42

22 U.S.C. 602(a)(19)(C)) is amended by striking all

23 that follows ‘‘—’’ and inserting the following:

24 ‘‘(C) that an individual may not be re25 quired to participate in the program—
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1 ‘‘(i) if the individual is incapacitated;

2 ‘‘(ii) if the individual works 30 or

3 more hours per week;

4 ‘‘(iii) if the individual attends, full5 time, an elementary, secondary, or voca6 tional (or technical) school;

7 ‘‘(iv) if the individual is the parent of

8 a child who was returned to the home of

9 the individual during the preceding 2

10 months after having been removed from

11 the home;

12 ‘‘(v) if the individual is providing full13 time care for a disabled dependent of the

14 individual;

15 ‘‘(vi) at the option of the State, if the

16 individual is making progress in a sub17 stance abuse treatment program, unless

18 this clause has been applied to the individ19 ual for 12 months;

20 ‘‘(vii) during such 6-month period as

21 the individual may select, in which the in22 dividual gives birth to the first child born

23 to the individual after becoming eligible for

24 aid under this part; or
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1 ‘‘(viii) during such 4-month period as

2 the individual may select, in which the in3 dividual gives birth to the second or subse4 quent child born to the individual after be5 coming eligible for aid under this part;’’.

6 (4) EXTENSION TO ALL STATES OF OPTION TO

7 LIMIT AFDC–UP.—Section 407(b)(2)(B) of such Act

8 (42 U.S.C. 607(b)(2)(B)) is amended by striking

9 clause (iii).

10 (5) INCREASE IN REQUIRED JOBS PARTICIPA11 TION RATES.—Section 403(l)(3) of such Act (42

12 U.S.C. 603(l)(3)) is amended—

13 (A) in subparagraph (A)—

14 (i) by striking all that follows ‘‘—’’

15 and inserting the following:

16 ‘‘(i) with respect to all individuals eligible for

17 aid under the State plan who applied for such aid

18 before October 1, 1996, and are not described in

19 section 402(a)(19)(C)—

20 ‘‘(I) 15 percent if such year is 1996;

21 ‘‘(II) 20 percent if such year is 1997;

22 ‘‘(III) 20 percent if such year is 1998;

23 ‘‘(IV) 20 percent if such year is 1999; and

24 ‘‘(V) 20 percent if such year is 2000;
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1 ‘‘(ii) with respect to all individuals eligible for

2 aid under the State plan who applied for such aid

3 on or after October 1, 1996, and are not described

4 in section 402(a)(19)(C)—

5 ‘‘(I) 30 percent if such year is 1998;

6 ‘‘(II) 40 percent if such year is 1999; and

7 ‘‘(III) 50 percent if such year is 2000; and

8 ‘‘(iii) with respect to all individuals eligible for

9 aid under the State plan who are not described in

10 section 402(a)(19)(C)—

11 ‘‘(I) 60 percent if such year is 2001;

12 ‘‘(II) 70 percent if such year is 2002;

13 ‘‘(III) 80 percent if such year is 2003; and

14 ‘‘(IV) 90 percent if such year is 2004.’’;

15 and

16 (B) in subparagraph (B)(ii)(IV), by strik17 ing ‘‘and 1995’’ and inserting ‘‘through 2004’’.

18 (6) INCREASE IN REQUIRED WORK PROGRAM

19 PARTICIPATION RATES OF UNEMPLOYED PAR20 ENTS.—Section 403(l)(4)(B) of such Act (42 U.S.C.

21 603(l)(4)(B)) is amended—

22 (A) in clause (iii), by striking ‘‘and’’;

23 (B) in clause (iv), by striking ‘‘and 1998’’

24 and inserting ‘‘, 1998, 1999, and 2000’’.
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1 (c) PAYMENTS TO STATES.—Section 403 of such Act

2 (42 U.S.C. 603) is amended by adding at the end the fol3 lowing:

4 ‘‘(o)(1) Each State which has been paid under sub5 section (l) of this section for any fiscal year an amount

6 equal to the limitation determined under subsection (k)(2)

7 of this section for the fiscal year shall be entitled to pay8 ments under paragraph (4) of this subsection for the fiscal

9 year in an amount equal to the lesser of—

10 ‘‘(A) the sum of the applicable percentages

11 (specified in such paragraph (4)) of its expenditures

12 to carry out the program of the State under part F

13 (subject to limitations prescribed by or pursuant to

14 such part or such paragraph (4) on expenditures

15 that may be included for purposes of determining

16 payment under such paragraph (4)); or

17 ‘‘(B) the limitation determined under paragraph

18 (2) of this subsection with respect to the State for

19 the fiscal year.

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

21 with respect to a State for any fiscal year is the amount

22 that bears the same ratio to the amount specified in para23 graph (3) of this subsection for the fiscal year as the aver24 age monthly number of adult recipients (as defined in sub25 section (k)(4)) in the State in the preceding fiscal year
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1 bears to the average monthly number of such recipients

2 in all the States for such preceding year.

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

4 ‘‘(A) $300,000,000 for fiscal year 1998;

5 ‘‘(B) $1,000,000,000 for fiscal year 1999; and

6 ‘‘(C) $1,900,000,000 for fiscal year 2000.

7 ‘‘(4) Each State which has been paid under sub8 section (l) of this section for a fiscal year an amount equal

9 to the limitation determined under subsection (k)(2) of

10 this section for the fiscal year shall, in addition to any

11 payment under subsection (a) or (l) of this section, be en12 titled to payment from the Secretary of an amount equal

13 to—

14 ‘‘(A) 50 percent of the expenditures of the

15 State for administrative costs incurred in operating

16 the program under part F during the fiscal year

17 (other than personnel costs for staff employed in the

18 operation of the program) with respect to which pay19 ment has not been made under subsection (l); and

20 ‘‘(B) the greater of 70 percent or the Federal

21 medical assistance percentage (as defined in section

22 1118 in the case of a State to which section 1108

23 applies, or as defined in section 1905(b) in the case

24 of any other State) of the other expenditures of the

25 State incurred in operating the program during the
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1 fiscal year with respect to which payment has not

2 been made under subsection (l).

3 ‘‘(5)(A) Notwithstanding paragraph (4) of this sub4 section, the Secretary shall pay to a State an amount

5 equal to 50 percent of the expenditures of the State in6 curred in operating the program under part F during a

7 fiscal year and with respect to which payment has not

8 been made under subsection (l) if the State’s participation

9 rate (determined under subparagraph (B) of this para10 graph) for the immediately preceding fiscal year is less

11 than—

12 ‘‘(i) 15 percent if the preceding fiscal year is

13 1996;

14 ‘‘(ii) 20 percent if such year is 1997;

15 ‘‘(iii) 30 percent if such year is 1998;

16 ‘‘(iv) 40 percent if such year is 1999;

17 ‘‘(v) 50 percent if such year is 2000;

18 ‘‘(vi) 60 percent if such year is 2001;

19 ‘‘(vii) 70 percent if such year is 2002;

20 ‘‘(viii) 80 percent if such year is 2003; and

21 ‘‘(ix) 90 percent if such year is 2004.

22 ‘‘(B)(i) The State’s participation rate for a fiscal year

23 shall be the number, expressed as a percentage, equal to—
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1 ‘‘(I) the number of individuals who participated

2 in the State’s program under part F in the year; di3 vided by

4 ‘‘(II) the number of individuals required to par5 ticipate in the program in the year (including indi6 viduals with respect to whom the State has exercised

7 its option to require their participation).

8 ‘‘(ii) For purposes of this subparagraph, an individ9 ual shall not be considered to have satisfactorily partici10 pated in the program under part F solely by reason of

11 the individual being registered to participate in the pro12 gram.

13 ‘‘(C) For purposes of this paragraph, an individual

14 shall be considered to have participated in the program

15 under part F if the individual has participated in accord16 ance with such requirements, consistent with regulations

17 of the Secretary, as the State shall establish.

18 ‘‘(D)(i) If the Secretary determines that a State has

19 failed to achieve the participation rate for any fiscal year

20 specified in subparagraph (A) of this paragraph, then,

21 subject to clause (ii), the Secretary may waive, in whole

22 or in part, the reduction in the payment rate otherwise

23 required by such subparagraph (A) if the Secretary finds

24 that the State—
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1 ‘‘(I) is in conformity with section 402(a)(19)

2 and part F;

3 ‘‘(II) has made a good faith effort to achieve

4 the participation rate; and

5 ‘‘(III) has submitted a proposal which is likely

6 to achieve the applicable participation rates for the

7 current fiscal year and any succeeding fiscal year so

8 specified.

9 ‘‘(ii) The Secretary may not grant a waiver to any

10 State under clause (i) for more than 12 months (whether

11 or not consecutive) in any 48-month period.’’.

12 (d) CONFORMING AMENDMENT.—Section

13 403(l)(3)(D) of such Act (42 U.S.C. 603(l)(3)(D)) is

14 amended—

15 (1) by inserting ‘‘(i)’’ after (D)’’;

16 (2) by inserting ‘‘who is eligible for aid under

17 the State plan, who applied for such aid on or after

18 October 1, 1996, and who is not described in section

19 402(a)(19)(C)’’ after ‘‘an individual’’; and

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

21 ‘‘(ii) For purposes of this paragraph, an individual

22 who is eligible for aid under the State plan, who applied

23 for such aid before October 1, 1996, and is not described

24 in section 402(a)(19)(C) shall not be determined to have

25 participated in the program under part F for a week, if
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1 such individual has participated in such program for less

2 than 10 hours during the week.’’.

3 SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM

4 AMENDMENTS.

5 Section 482(f)(1)(B) of the Social Security Act (42

6 U.S.C. 682(f)(1)(B)) is amended—

7 (1) in clause (i)—

8 (A) by inserting ‘‘(I)’’ after ‘‘(B)(i)’’; and

9 (B) by striking ‘‘(as determined by the

10 State)’’ and inserting ‘‘in the transition compo11 nent of the program under this part who is re12 quired to participate in the program established

13 under this subsection’’; and

14 (C) by adding at the end the following:

15 ‘‘(II) Each participant in the work component of the

16 program under this part who is required to participate in

17 the program established under this subsection must be re18 quired to work for 35 hours per week (or 30 hours per

19 week, if the State requires the participant to engage in

20 a job search program established by the State under sub21 section (g)).’’; and

22 (2) in clause (ii), by inserting ‘‘who is a partici23 pant in the transition component of the program

24 under this part’’ after ‘‘an individual’’.
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1 SEC. 103. WORK SUPPLEMENTATION PROGRAM AMEND2 MENTS.

3 (a) AUTHORITY OF STATES TO ASSIGN PARTICI4 PANTS TO UNFILLED JOBS.—Section 484(c) of the Social

5 Security Act (42 U.S.C. 684(c)) is amended by striking

6 the last sentence.

7 (b) AUTHORITY OF STATES TO USE SUMS THAT

8 WOULD OTHERWISE BE EXPENDED FOR FOOD STAMP

9 BENEFITS TO PROVIDE SUBSIDIZED JOBS FOR PARTICI10 PANTS.—

11 (1) IN GENERAL.—Section 482(e)(1) of such

12 Act (42 U.S.C. 682(e)(1)) is amended—

13 (A) by inserting ‘‘, and the sums that

14 would otherwise be used to provide participants

15 in the program under this subsection with food

16 stamp benefits under the Food Stamp Act of

17 1977,’’ before ‘‘and use’’; and

18 (B) by inserting ‘‘and the food stamp ben19 efits that would otherwise be so provided to

20 them’’ before the period.

21 (2) SUBSIDIES PROVIDED TO EMPLOYERS AND

22 INCLUDED IN WAGES OF PARTICIPANTS; MINIMUM

23 EMPLOYER CONTRIBUTION.—Section 482(e)(3) of

24 such Act (42 U.S.C. 682(e)(3)) is amended by add25 ing at the end the following:
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1 ‘‘(E) Each State operating a work supplementation

2 program under this subsection shall enter into an agree3 ment with the employer who is to provide an eligible indi4 vidual with a supplemented job under the program, under

5 which—

6 ‘‘(i) the State is required to pay the employer

7 an amount specified in the agreement as the sub8 sidized portion of the wages of the eligible individ9 ual; and

10 ‘‘(ii) the employer is required to pay the eligible

11 individual wages which, when added to an amount

12 that will be payable as aid to families with depend13 ent children to the individual if the individual is paid

14 such wages, are not less than 100 percent of the

15 sum of—

16 ‘‘(I) the amount that would otherwise be

17 payable as aid to families with dependent chil18 dren to the eligible individual if the State did

19 not have a work supplementation program

20 under this subsection in effect; and

21 ‘‘(II) if the State elects to subsidize jobs

22 for participants in the program through the res23 ervation of sums that would otherwise be used

24 to provide such participants with food stamp

25 benefits under the Food Stamp Act of 1977,
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1 the amount paid to the State by the Secretary

2 of Agriculture that represents the cash value of

3 the food stamp benefits for which the household

4 of the eligible individual is a member is eligible

5 under such Act.

6 ‘‘(F) For purposes of computing the amount of the

7 Federal payment to a State under paragraph (1) or (2)

8 of section 403(a), for expenditures incurred in making

9 payments to individuals and employers under the State’s

10 work supplementation program under this section, the

11 State may claim as such expenditures the maximum

12 amount payable to the State under paragraph (4) of this

13 subsection.

14 ‘‘(G) Notwithstanding paragraph (1), a State may

15 use for any purpose the sums reserved under paragraph

16 (1) which are not used to subsidize jobs under this sub17 section attributable to savings achieved by operation of

18 subparagraph (E).’’.

19 (3) CONFORMING AMENDMENT.—Section

20 482(e)(3)(A) of such Act (42 U.S.C. 682(e)(3)(A))

21 is amended by striking the 2nd sentence.

22 (4) EMPLOYMENT CASHOUT OF FOOD STAMP

23 BENEFITS.—Section 16 of the Food Stamp Act of

24 1977 (7 U.S.C. 2025) is amended by adding at the

25 end the following:
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1 ‘‘(l) If a State agency of a State that makes the elec2 tion described in section 482(e)(3)(E)(ii)(II) of the Social

3 Security Act informs the Secretary that an individual who

4 is participating in the work supplementation program car5 ried out under section 482(e) of such Act is a member

6 of a household that participates in the food stamp pro7 gram and all the members of the household receive bene8 fits under a State plan approved under part A of title IV

9 of such Act—

10 ‘‘(1) the Secretary shall pay to the State an

11 amount equal to the value of the food stamp benefits

12 the household is eligible to receive under this Act;

13 ‘‘(2) the State shall expend the amount in ac14 cordance with section 482(e)(3) of the Social Secu15 rity Act to make a payment to the individual in lieu

16 of food stamp benefits the household would receive

17 but for the operation of this subsection;

18 ‘‘(3) for purposes of—

19 ‘‘(A) sections 5 and 8(a) of this Act, the

20 amount shall be excluded from household in21 come and resources; and

22 ‘‘(B) section 8(b) of this Act, the amount

23 shall be considered as the value of an allotment

24 provided to the household; and
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1 ‘‘(4) the household shall not receive food stamp

2 benefits from the State agency for the period during

3 which the member continues to participate in the

4 work supplementation program.’’.

5 SEC. 104. WORK REQUIREMENT FOR NONCUSTODIAL PAR6 ENTS WITH CHILD SUPPORT ARREARAGES.

7 Section 466(a) of the Social Security Act (42 U.S.C.

8 666(a)) is amended by inserting after paragraph (11) the

9 following:

10 ‘‘(12) Procedures requiring that—

11 ‘‘(A) upon a determination by the State

12 agency referred to in section 402(a)(3) that the

13 noncustodial parent of any child who is apply14 ing for or receiving aid under the State plan ap15 proved under part A owes child support (as de16 fined in section 462(b)) with respect to the

17 child, is in arrears in the payment of such sup18 port in an amount that is not less than twice

19 the amount of the monthly child support obliga20 tion, is not incapacitated, and is not subject to

21 a court-approved plan for payment of such ar22 rearage, the State agency referred to in section

23 402(a)(3) send to the noncustodial parent a let24 ter notifying the noncustodial parent that the

25 noncustodial parent—
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1 ‘‘(i) is required to pay child support

2 with respect to the child; and

3 ‘‘(ii) is subject to fines and other pen4 alties for failure to pay the full amount of

5 such support in a timely manner; and

6 ‘‘(B) if, by the end of the 30-day period

7 that begins with the date the letter is sent pur8 suant to subparagraph (A), the amount of the

9 arrearage has not decreased by at least a per10 centage amount specified by the State agency,

11 the State seek a court order requiring the

12 noncustodial parent—

13 ‘‘(i) to participate in a job search pro14 gram established by the State, for not less

15 than 2 weeks and not more than 4 weeks;

16 and

17 ‘‘(ii) if, by the end of the 30-day pe18 riod beginning on the date the order is en19 tered, the amount of the arrearage has not

20 decreased by at least a percentage amount

21 specified by the State agency, to partici22 pate in a work program established by the

23 State, for not less than 35 hours per week

24 (or, if the program also requires job
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1 search, for not less than 30 hours per

2 week).’’.

3 SEC. 105. REQUIREMENT THAT MINOR NONCUSTODIAL

4 PARENTS WHO FAIL TO PROVIDE CHILD OR

5 SPOUSAL SUPPORT PARTICIPATE IN WORK,

6 JOB TRAINING, MONEY MANAGEMENT AND

7 PARENTING CLASSES, AND CAREER COUN8 SELING.

9 Section 466(a) of the Social Security Act (42 U.S.C.

10 666(a)), as amended by section 104 of this Act, is amend11 ed by inserting after paragraph (12) the following:

12 ‘‘(13) Procedures which require that an order

13 issued on or after the effective date of this para14 graph by a court or an administrative process estab15 lished under State law, which establishes or modifies

16 a support obligation of an individual who has not at17 tained 18 years of age, shall require the individual

18 to participate in good faith in a State program that

19 includes work, job training, parenting and money

20 management classes, and career counseling during

21 any period before the individual attains 18 years of

22 age for which the individual fails to provide such

23 support.’’.

24 SEC. 106. EFFECTIVE DATE; REGULATIONS.

25 (a) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this title shall

3 take effect on October 1, 1996.

4 (2) STATE OPTION FOR EARLY APPLICABIL5 ITY.—If a State formally notifies the Secretary of

6 Health and Human Services of its desire to operate

7 a program under section 402(a)(19) and part F of

8 title IV of the Social Security Act (as amended by

9 this title), during any period which begins after the

10 date of the enactment of this Act and ends on Sep11 tember 30, 1996, with respect to 1 or more groups

12 of individuals selected by the State who are eligible

13 for aid under the State plan approved under section

14 402 of the Social Security Act, and makes such

15 changes in the plan as are required in order to so

16 operate the program (except that, in lieu of the defi17 nition contained in section 402(a)(19)(I)(i) of the

18 Social Security Act, there is substituted a definition

19 which describes such group or groups) then—

20 (A) section 402(a)(19)(I) of the Social Se21 curity Act (with such substituted definition)

22 shall apply to the State during the period; and

23 (B) section 403(o)(4)(B) of the Social Se24 curity Act shall be applied to the State for the

25 first 12 months of such period by substituting
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1 ‘‘85 percent’’ for ‘‘the greater of 70 percent or

2 the Federal medical assistance percentage (as

3 defined in section 1118 in the case of a State

4 to which section 1108 applies, or as defined in

5 section 1905(b) in the case of any other

6 State)’’.

7 (b) REGULATIONS.—Not later than 1 year after the

8 date of the enactment of this Act, the Secretary of Health

9 and Human Services shall prescribe such regulations as

10 may be necessary to enable States to establish and operate

11 programs pursuant to the amendments made by this title.

12 TITLE II—PATERNITY

13 ESTABLISHMENT

14 SEC. 201. COOPERATION REQUIREMENT AND GOOD CAUSE

15 EXCEPTION.

16 (a) CHILD SUPPORT ENFORCEMENT REQUIRE17 MENTS.—Section 454 of the Social Security Act (42

18 U.S.C. 654) is amended—

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

20 (23);

21 (2) by striking the period at the end of para22 graph (24) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (24) the fol24 lowing:
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1 ‘‘(25) provide that the State agency administer2 ing the plan under this part—

3 ‘‘(A) will make the determination specified

4 under paragraph (4), as to whether an individ5 ual is cooperating with efforts to establish pa6 ternity and secure support (or has good cause

7 not to cooperate with such efforts) for purposes

8 of the requirements of sections 402(a)(26) and

9 1912;

10 ‘‘(B) with respect to any child born on or

11 after the date that is 10 months after the date

12 of the enactment of this paragraph, will not de13 termine (or redetermine) the mother (or other

14 custodial relative) of such child to be cooperat15 ing with efforts to establish paternity unless

16 such individual furnishes—

17 ‘‘(i) the name of the putative father

18 (or fathers); and

19 ‘‘(ii) sufficient additional information

20 to enable the State agency, if reasonable

21 efforts were made, to verify the identity of

22 the person named as the putative father

23 (including such information as the putative

24 father’s present address, telephone num25 ber, date of birth, past or present place of
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1 employment, school previously or currently

2 attended, and names and addresses of par3 ents, friends, or relatives able to provide

4 location information, or other information

5 that could enable service of process on

6 such person), and

7 ‘‘(C)(i) (where a custodial parent who was

8 initially determined not to be cooperating (or to

9 have good cause not to cooperate) is later deter10 mined to be cooperating or to have good cause

11 not to cooperate) will immediately notify the

12 State agency administering the program under

13 part A and the State agency administering the

14 program under title XIX that this eligibility

15 condition has been met; and

16 ‘‘(ii) (where a custodial parent was initially

17 determined to be cooperating (or to have good

18 cause not to cooperate)) will not later determine

19 such individual not to be cooperating (or not to

20 have good cause not to cooperate) until such in21 dividual has been afforded an opportunity for a

22 hearing.’’.

23 (b) AFDC AMENDMENTS.—
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1 (1) Section 402(a)(11) of such Act (42 U.S.C.

2 602(a)(11)) is amended by striking ‘‘furnishing of’’

3 and inserting ‘‘application for’’.

4 (2) Section 402(a)(26) of such Act (42 U.S.C.

5 602(a)(26)) is amended to read as follows:

6 ‘‘(26) provide—

7 ‘‘(A) that, as a condition of eligibility for

8 aid under the State plan, each applicant or re9 cipient will be required (subject to subpara10 graph (C))—

11 ‘‘(i) to assign to the State any rights

12 to support from any other person the ap13 plicant may have—

14 ‘‘(I) in behalf of the applicant or

15 of any other family member for whom

16 the applicant is applying for or receiv17 ing such aid; and

18 ‘‘(II) which, at the time the as19 signment is executed, have accrued

20 with respect to support owed for any

21 period for which such aid is provided;

22 ‘‘(ii) to cooperate with the State—

23 ‘‘(I) in establishing the paternity

24 of a child born out of wedlock with re-
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1 spect to whom such aid is claimed;

2 and

3 ‘‘(II) in obtaining support pay4 ments for the applicant and for a

5 child with respect to whom such aid is

6 claimed;

7 ‘‘(iii) to cooperate with the State in

8 obtaining any other payments or property

9 due the applicant or the child; and

10 ‘‘(iv) to cooperate with the State in

11 identifying, and providing information to

12 assist the State in pursuing, any third

13 party who may be liable to pay for care

14 and services available under the State plan

15 for medical assistance under title XIX; but

16 the State shall not be subject to any finan17 cial penalty in the administration or en18 forcement of this clause as a result of any

19 monitoring, quality control, or auditing re20 quirements;

21 ‘‘(B) that the State agency will imme22 diately refer to the State agency administering

23 the State program operated under part D any

24 applicant for such aid who requires paternity

25 establishment services;
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1 ‘‘(C) that an individual will not be required

2 to cooperate with the State, as provided in sub3 paragraph (A), if the individual is found to

4 have good cause for refusing to cooperate, as

5 determined in accordance with standards pre6 scribed by the Secretary, which standards shall

7 take into consideration the best interests of the

8 child on whose behalf such aid is claimed—

9 ‘‘(i) to the satisfaction of the State

10 agency administering the program under

11 part D, as determined in accordance with

12 section 454(25), with respect to the re13 quirements under clauses (i) and (ii) of

14 subparagraph (A) of this paragraph; and

15 ‘‘(ii) to the satisfaction of the State

16 agency administering the program under

17 this part, with respect to the requirements

18 under clauses (iii) and (iv) of subpara19 graph (A) of this paragraph;

20 ‘‘(D) that (except as provided in subpara21 graph (E)) an applicant requiring paternity es22 tablishment services (other than an individual

23 eligible for emergency assistance as defined in

24 section 406(e)) shall not be eligible for such aid

25 until—
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1 ‘‘(i) the applicant has furnished to the

2 agency administering the State plan oper3 ated under part D the information speci4 fied in section 454(25)(E); or

5 ‘‘(ii) the agency referred to in clause

6 (i) determines that the applicant has good

7 cause not to cooperate;

8 ‘‘(E) that subparagraph (D) shall not

9 apply—

10 ‘‘(i) until the individual has received

11 the notification required by section

12 454(25)(D)(iii); and

13 ‘‘(ii) if the individual appeals a deter14 mination that the individual lacks good

15 cause for noncooperation, until after the

16 determination is affirmed after notice and

17 opportunity for a hearing; and

18 ‘‘(F) that, if the relative with whom a child

19 is living is found to be ineligible for such aid

20 because of failure to comply with subparagraph

21 (A) with respect to the child, the child shall be

22 ineligible for such aid;’’.

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

24 this section shall be effective with respect to applications

25 for aid under part A of title IV of the Social Security Act
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1 filed in or after the first calendar quarter beginning 10

2 months or more after the date of the enactment of this

3 Act (or such earlier quarter as the State may select).

4 SEC. 202. TEENS RECEIVING AFDC REQUIRED TO LIVE AT

5 HOME.

6 Section 402(a)(43) of the Social Security Act (42

7 U.S.C. 602(a)(43)) is amended by striking ‘‘at the option

8 of the State,’’.

9 SEC. 204. INCREASE IN PATERNITY ESTABLISHMENT PER10 CENTAGE.

11 Section 452(g)(1) of the Social Security Act (42

12 U.S.C. 652(g)(1)) is amended by striking all that follows

13 ‘‘—’’ and inserting the following:

14 ‘‘(A) 90 percent;

15 ‘‘(B) for a State with a paternity establishment

16 percentage of not less than 50 percent but less than

17 90 percent for such fiscal year, the paternity estab18 lishment percentage of the State for the immediately

19 preceding fiscal year plus 6 percentage points; or

20 ‘‘(C) for a State with a paternity establishment

21 percentage of less than 50 percent for such fiscal

22 year, the paternity establishment percentage of the

23 State for the immediately preceding fiscal year plus

24 10 percentage points.’’.
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1 SEC. 205. EFFECTIVE DATE.

2 Except as provided in section 201, the amendments

3 made by this title shall take effect on October 1, 1996,

4 and shall apply to payments under part A of title IV of

5 the Social Security Act for calendar quarters ending be6 ginning on or after such date.

7 TITLE III—EXPANSION OF STAT8 UTORY FLEXIBILITY OF

9 STATES

10 SEC. 301. OPTION TO CONVERT AFDC INTO A BLOCK GRANT

11 PROGRAM.

12 Section 403 of the Social Security Act (42 U.S.C.

13 603) is amended by inserting after subsection (b) the fol14 lowing:

15 ‘‘(c)(1) Any State may elect to receive payments

16 under this subsection in lieu of receiving payments under

17 the other subsections of this section.

18 ‘‘(2) If a State makes an election under paragraph

19 (1), then, in lieu of any payment under any other sub20 section of this section, the Secretary shall make payments

21 to the State under this subsection for each fiscal year in

22 an amount equal to 103 percent of the total amount to

23 which the State was entitled under this section for fiscal

24 year 1995, subject to paragraph (5).

25 ‘‘(3) Each State to which an amount is paid under

26 paragraph (2) for a fiscal year shall expend the amount
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1 to carry out any program established by the State to pro2 vide benefits to needy families with dependent children.

3 ‘‘(4) Within 3 months after the end of each fiscal

4 year, each State that has made an election under para5 graph (1) shall submit to the Secretary a report that ac6 counts for all expenditures of amounts paid to the State

7 under this subsection for the fiscal year.

8 ‘‘(5) The Secretary shall reduce by 20 percent the

9 amount that would otherwise be payable to a State under

10 this subsection for a fiscal year if the Secretary finds that

11 the State has expended any amount provided under this

12 subsection for any purpose other than to carry out a pro13 gram of cash benefits to needy families with children.

14 ‘‘(6) The regulations issued with respect to State

15 plans and the operation of State programs under this part

16 (other than under this subsection) shall not apply to any

17 State that makes an election under paragraph (1).’’.

18 SEC. 302. OPTION TO DENY AFDC TO MINOR UNMARRIED

19 PARENTS.

20 (a) IN GENERAL.—Section 402(a) of the Social Secu21 rity Act (42 U.S.C. 602(a)), as amended by section

22 201(a)(1) of this Act, is amended—

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

24 (45);
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1 (2) by striking the period at the end of para2 graph (46) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (46) the fol4 lowing:

5 ‘‘(47) unless the State has enacted a law ex6 empting itself from the application of this para7 graph, provide that aid under the plan shall not be

8 payable with respect to an individual who is an un9 married minor (as defined by the State) parent of a

10 dependent child.’’.

11 (b) AVAILABILITY OF AFDC–UP BENEFITS.—Sec12 tion 407(b)(1)(A) of such Act (42 U.S.C. 607(b)(1)(A))

13 is amended by inserting ‘‘, notwithstanding section

14 402(a)(50),’’ before ‘‘when—’’.

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

16 this section shall take effect on October 1, 1995, and shall

17 apply with respect to applications for aid under a State

18 plan approved under part A of title IV of the Social Secu19 rity Act that are made on or after such date.

20 SEC. 303. OPTION TO TREAT INTERSTATE IMMIGRANTS

21 UNDER RULES OF FORMER STATE.

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

23 602(a)), as amended by sections 201(a)(1) and 302 of this

24 Act, is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (46);

3 (2) by striking the period at the end of para4 graph (47) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (47) the fol6 lowing:

7 ‘‘(48) at the option of the State, in the case of

8 a family applying for aid under the State plan that

9 has moved to the State from another jurisdiction of

10 the United States with a State plan approved under

11 this part, and has resided in the State for less than

12 12 months consecutively, apply the rules that would

13 have been applied by such other jurisdiction if the

14 family had not moved from such other jurisdiction,

15 in determining the eligibility of the family for bene16 fits, and the amount of benefits payable to the fam17 ily, under the State plan.’’.

18 SEC. 304. OPTION TO IMPOSE PENALTY FOR FAILURE TO

19 ATTEND SCHOOL.

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

21 602(a)), as amended by sections 201(a)(1), 302, and 303

22 of this Act, is amended—

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

24 (47);
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1 (2) by striking the period at the end of para2 graph (48) and inserting ‘‘; and’’; and

3 (3) by inserting after paragraph (48) the fol4 lowing:

5 ‘‘(49) at the option of the State, provide that

6 the aid otherwise payable under the plan to a family

7 may be reduced by not more than $75 per month for

8 each parent under 21 years of age who has not com9 pleted secondary school (or the equivalent) and each

10 dependent child in the family who, during the imme11 diately preceding month, has failed, without good

12 cause (as defined by the State in consultation with

13 the Secretary), to maintain minimum attendance (as

14 defined by the State in consultation with the Sec15 retary) at an educational institution.’’.

16 SEC. 305. OPTION TO DENY AFDC FOR ADDITIONAL CHIL17 DREN.

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

19 602(a)), as amended by sections 201(a)(1), 302, 303,

20 and 304 of this Act, is amended—

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

22 (48);

23 (2) by striking the period at the end of para24 graph (49) and inserting ‘‘; and’’; and
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1 (3) by inserting after paragraph (49) the fol2 lowing:

3 ‘‘(50) unless the State has enacted a law ex4 empting itself from the application of this para5 graph, provide that aid under the plan shall not be

6 payable with respect to a child born to—

7 ‘‘(A) a recipient of aid under the plan; or

8 ‘‘(B) an individual who received such aid

9 at any time during the 10-month period ending

10 with the birth of the child.’’.

11 SEC. 306. OPTION TO MODIFY CERTAIN AFDC INCOME DIS12 REGARD RULES.

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

14 U.S.C. 602(a)(8)(B)) is amended—

15 (1) by striking ‘‘and’’ at the end of clause (i);

16 and

17 (2) by adding at the end the following:

18 ‘‘(iii) notwithstanding clauses (ii) and (iv)

19 of subparagraph (A) and clause (ii) of this sub20 paragraph, may disregard earned income of any

21 child or relative receiving aid to families with

22 dependent children, or of any other individual

23 (living in the same home as such relative and

24 child) whose needs as taken into account in

25 making the determination under paragraph (7),
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1 in accordance with any combination of rules

2 which (as determined by the State in accord3 ance with regulations prescribed by the Sec4 retary) is at least as favorable to the recipient

5 of such aid as the combination of rules con6 tained in such clauses, but not more favorable

7 to the recipient than a rule providing for the

8 disregard of the first $200 of the total of such

earned income for such month plus 1 9 ⁄2 of the

10 remainder thereof; and’’.

11 SEC. 307. OPTION TO PROVIDE MARRIED COUPLE TRANSI12 TION BENEFIT.

13 (a) IN GENERAL.—Section 402(a) of the Social Secu14 rity Act (42 U.S.C. 602(a)), as amended by sections

15 201(a)(1), 302, 303, 304, and 305 of this Act, is amend16 ed—

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

18 (49);

19 (2) by striking the period at the end of para20 graph (50) and inserting ‘‘; and’’; and

21 (3) by inserting after paragraph (50) the fol22 lowing:

23 ‘‘(51) at the option of the State, provide that—

24 ‘‘(A) if a recipient of aid under the plan

25 marries an individual who is not a parent of a
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1 child of the recipient and (but for this para2 graph) the resulting family would have become

3 ineligible for such aid by reason of the mar4 riage, then the family shall remain eligible for

5 aid under the plan, in an amount equal to 50

6 percent of the aid payable to the recipient im7 mediately before the marriage, for a period

8 (specified by the State) of not more than 12

9 months, but only for so long as the income of

10 the family is less than 150 percent of the in11 come official poverty line (as defined by the Of12 fice of Management and Budget, and revised

13 annually in accordance with section 673(2) of

14 the Omnibus Budget Reconciliation Act of

15 1981) applicable to a family of the size in16 volved; and

17 ‘‘(B) if a recipient of aid under the plan

18 marries an individual who is not a parent of a

19 child of the recipient and the resulting family

20 would (in the absence of this subparagraph) be

21 eligible for such aid by reason of section 407,

22 then the State may provide aid to the family in

23 accordance with section 407 or subparagraph

24 (A) of this paragraph, but not both.’’.
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1 (b) APPLICABILITY.—The amendments made by sub2 section (a) shall apply only with respect to individuals who

3 first become recipients of aid under State plans approved

4 under part A of title IV of the Social Security Act on or

5 after October 1, 1995.

6 SEC. 308. OPTION TO DISREGARD INCOME AND RESOURCES

7 DESIGNATED FOR EDUCATION, TRAINING,

8 AND EMPLOYABILITY, OR RELATED TO SELF9 EMPLOYMENT.

10 (a) RESOURCE DISREGARDS.—Section 402(a)(7)(B)

11 of the Social Security Act (42 U.S.C. 602(a)(7)(B)) is

12 amended—

13 (1) by striking ‘‘or’’ before ‘‘(iv)’’; and

14 (2) by inserting ‘‘(v) at the option of the State,

15 in the case of a family receiving aid under the State

16 plan (and a family not receiving such aid but which

17 received such aid in at least 1 of the preceding 4

18 months or became ineligible for such aid during the

19 preceding 12 months because of excessive earnings),

20 any amount (determined by the State) not to exceed

21 $10,000 in a qualified asset account (as defined in

22 section 406(i)) of the family, or (vi) at the option of

23 the State, the first $10,000 of the net worth (assets

24 reduced by liabilities with respect thereto) of all

25 microenterprises (as defined in section 406(j)(1))
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1 owned, in whole or in part, by such child, relative,

2 or other individual, for a period not to exceed 2

3 years’’ before ‘‘; and’’.

4 (b) DISREGARD OF INCOME FROM QUALIFIED ASSET

5 ACCOUNTS.—Section 402(a)(8)(A) of such Act (42 U.S.C.

6 602(a)(8)(A)) is amended—

7 (1) by striking ‘‘and’’ at the end of clause (vii);

8 and

9 (2) by inserting after clause (viii) the following

10 new clause:

11 ‘‘(ix) at the option of the State, may

12 disregard any interest or income earned on

13 a qualified asset account (as defined in

14 section 406(i)), and any qualified distribu15 tion (as defined in section 406(i)(2)) from

16 a qualified asset account (as defined in

17 section 406(i)(1)); and’’.

18 (c) NONRECURRING LUMP SUM EXEMPT FROM

19 LUMP SUM RULE.—Section 402(a)(17) of such Act (42

20 U.S.C. 602(a)(17)) is amended by adding at the end the

21 following: ‘‘; and, at the option of the State, that this para22 graph shall not apply to earned or unearned income re23 ceived in a month on a nonrecurring basis to the extent

24 that such income is placed in a qualified asset account
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1 (as defined in section 406(i)) the total amounts in which,

2 after such placement, does not exceed $10,000;’’.

3 (d) ONLY NET PROFITS OF MICROENTERPRISE

4 TREATED AS INCOME.—Section 402(a)(7) of such Act (42

5 U.S.C. 602(a)(7)), as amended by subsection (a) of this

6 section, is amended—

7 (1) by striking ‘‘and’’ at the end of subpara8 graph (B);

9 (2) by striking the semicolon at the end of sub10 paragraph (C) and inserting ‘‘; and’’; and

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

12 ‘‘(D) at the option of the State, may take

13 into consideration as earned income of the fam14 ily of which the child is a member, only the net

15 profits (as defined in section 406(j)(2)) of

16 microenterprises (as defined in section

17 406(j)(1)) owned, in whole or in part, by such

18 child, relative, or other individual, for a period

19 not to exceed 2 years.’’.

20 (e) DEFINITIONS.—Section 406 of such Act (42

21 U.S.C. 606) is amended by adding at the end the follow22 ing:

23 ‘‘(i)(1) The term ‘qualified asset account’ means a

24 mechanism approved by the State (such as individual re25 tirement accounts, escrow accounts, or savings bonds) that
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1 allows savings of a family receiving aid to families with

2 dependent children to be used for qualified distributions.

3 ‘‘(2) The term ‘qualified distribution’ means a dis4 tribution from a qualified asset account for expenses di5 rectly related to 1 or more of the following purposes:

6 ‘‘(A) The attendance of a member of the family

7 at any education or training program.

8 ‘‘(B) The improvement of the employability (in9 cluding self-employment) of a member of the family

10 (such as through the purchase of an automobile).

11 ‘‘(C) The purchase of a home for the family.

12 ‘‘(D) A change of the family residence.

13 ‘‘(j)(1) The term ‘microenterprise’ means a commer14 cial enterprise which has 5 or fewer employees, 1 or more

15 of whom owns the enterprise.

16 ‘‘(2) The term ‘net profits’ means, with respect to

17 a microenterprise, the gross receipts of the business,

18 minus—

19 ‘‘(A) payments of principal or interest on a loan

20 to the microenterprise;

21 ‘‘(B) transportation expenses;

22 ‘‘(C) inventory costs;

23 ‘‘(D) expenditures to purchase capital equip24 ment;
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1 ‘‘(E) cash retained by the microenterprise for

2 future use by the business;

3 ‘‘(F) taxes paid by reason of the business;

4 ‘‘(G) if the business is covered under a policy

5 of insurance against loss—

6 ‘‘(i) the premiums paid for such insurance;

7 and

8 ‘‘(ii) the losses incurred by the business

9 that are not reimbursed by the insurer solely by

10 reason of the existence of a deductible with re11 spect to the insurance policy;

12 ‘‘(H) the reasonable costs of obtaining 1 motor

13 vehicle necessary for the conduct of the business;

14 and

15 ‘‘(I) the other expenses of the business.’’.

16 SEC. 309. OPTION TO REQUIRE ATTENDANCE AT

17 PARENTING AND MONEY MANAGEMENT

18 CLASSES, AND PRIOR APPROVAL OF ANY AC19 TION THAT WOULD RESULT IN A CHANGE OF

20 SCHOOL FOR A DEPENDENT CHILD.

21 (a) IN GENERAL.—Section 402(a) of the Social Secu22 rity Act (42 U.S.C. 602(a)), as amended by sections

23 201(a)(1), 302, 303, 304, 305, and 307 of this Act, is

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

2 (50);

3 (2) by striking the period at the end of para4 graph (51) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (51) the fol6 lowing:

7 ‘‘(52) at the option of the State, provide that,

8 as a condition of receiving aid under the State plan,

9 the recipient must attend parenting and money man10 agement classes, and must receive the permission of

11 the State agency before taking any action that would

12 require a change in the educational institution at13 tended by a dependent child of the recipient.’’.

14 SEC. 310. EFFECTIVE DATE.

15 The amendments made by this title shall take effect

16 on October 1, 1995, and shall apply to payments under

17 part A of title IV of the Social Security Act for calendar

18 quarters beginning on or after such date.

19 TITLE IV—EXPANSION OF STATE

20 AND LOCAL FLEXIBILITY

21 SEC. 401. INTERAGENCY WAIVER REQUEST BOARD.

22 (a) ESTABLISHMENT AND PURPOSE.—In order to

23 provide a focal point within the Federal Government for

24 the development and coordination of waiver requests de25 signed to improve opportunities for low-income individuals
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1 and families, there is established an Interagency Waiver

2 Request Board.

3 (b) MEMBERSHIP.—

4 (1) PERMANENT MEMBERS.—The Board shall

5 consist of 9 permanent members, as follows:

6 (A) The Secretary of Agriculture (or the

7 designee of the Secretary).

8 (B) The Secretary of Health and Human

9 Services (or the designee of the Secretary).

10 (C) The Secretary of Housing and Urban

11 Development (or the designee of the Secretary).

12 (D) The Secretary of Labor (or the des13 ignee of the Secretary).

14 (E) The Secretary of Education (or the

15 designee of the Secretary).

16 (F) The Attorney General of the United

17 States (or the designee of the Attorney Gen18 eral).

19 (G) The Secretary of the Interior (or the

20 designee of the Secretary).

21 (H) The Director of the Office of Manage22 ment and Budget (or the designee of the Direc23 tor).

24 (I) 1 individual appointed by the Presi25 dent.
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1 (2) LIMITED PURPOSE MEMBERS.—

2 (A) IN GENERAL.—With respect to an ap3 plication submitted under this title, the Board

4 shall include the head of each department or

5 agency (or the designee of the head) having re6 sponsibility for the administration of a program

7 included in the assistance plan contained in the

8 application.

9 (B) BOARD OF DIRECTORS OF THE LEGAL

10 SERVICES CORPORATION.—The Board of Direc11 tors of the Legal Services Corporation is

12 deemed to be the head of the department or

13 agency having responsibility for the administra14 tion of the program of legal assistance to eligi15 ble clients and other programs under the Legal

16 Services Corporation Act (42 U.S.C. 2996

17 et seq.).

18 (c) CHAIRPERSON.—The member of the Board ap19 pointed under subsection (b)(1)(I) shall serve as Chair20 person of the Board.

21 (d) VACANCIES.—A vacancy in the position of Chair22 man shall be filled in the manner in which the original

23 appointment was made.
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1 (e) NO ADDITIONAL COMPENSATION.—The members

2 of the Board may not be provided additional pay, allow3 ances, or benefits by reason of their service on the Board.

4 (f) POWERS.—

5 (1) ASSISTANCE OF OTHER FEDERAL ENTI6 TIES.—A member of the Board shall detail to the

7 Chairperson, on a nonreimbursable basis, such offi8 cers and employees of the department or agency

9 headed by the member, and shall make available to

10 the Chairperson such assistance, as the Chairperson

11 may require to carry out the activities of the Chair12 person.

13 (2) USE OF UNITED STATES MAILS.—The

14 Chairperson may use the United States mails in the

15 same manner and under the same conditions as

16 other departments and agencies of the United

17 States.

18 (3) ACCEPTANCE OF GIFTS, BEQUESTS, AND

19 DEVISES.—The Chairperson may accept, use, and

20 dispose of gifts, bequests, or devises of services or

21 property, both real and personal, for the purpose of

22 aiding or facilitating the work of the Chairperson.

23 Gifts, bequests, or devises of money and proceeds

24 from sales of other property received as gifts, be25 quests, or devises shall be deposited in the Treasury
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1 and shall be available for disbursement upon order

2 of the Chairperson.

3 (g) PROCEDURE.—

4 (1) MEETINGS.—The Board shall meet not less

5 than twice annually at the call of the Chairperson,

6 or of at least 3 permanent members.

7 (2) NOTICE OF DECISIONS.—The Chairperson

8 shall provide the Board with advance notice of any

9 action that the Chairperson intends to take under

10 this title.

11 (3) POWER OF BOARD MAJORITY TO OVERRULE

12 CHAIRPERSON.—Notwithstanding any other provi13 sion of this title, a majority of the members of the

14 Board with respect to a matter may overrule any de15 cision or nullify any action of the Chairperson under

16 this title with respect to the matter.

17 (h) ANNUAL REPORTS.—The Chairperson shall

18 transmit annually to the Congress a report containing a

19 detailed statement of the activities of the Board during

20 the year covered by the report.

21 SEC. 402. APPLICATION TO IMPLEMENT ASSISTANCE

22 PLANS.

23 (a) IN GENERAL.—Any entity that is receiving or is

24 eligible to receive funds or other assistance under an eligi25 ble Federal program and desires to reform any number
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1 of such programs may submit to the Chairperson an appli2 cation that contains the following:

3 (1) ASSISTANCE PLAN.—An assistance plan

4 that sets forth the following:

5 (A) GEOGRAPHIC AREA.—The geographic

6 area to which the plan applies and the rationale

7 for so defining the area.

8 (B) RECIPIENTS.—The particular groups

9 of individuals, by age, service needs, economic

10 circumstances, or other defining factors, who

11 are to receive services and benefits under the

12 plan.

13 (C) OBJECTIVES AND PERFORMANCE CRI14 TERIA.—Specific objectives and criteria for

15 measuring levels of performance, a description

16 of how such objectives and levels of perform17 ance are expected to be achieved, a description

18 of how such criteria are to be used to measure

19 performance, and a system for the comprehen20 sive evaluation of the impact of the plan on par21 ticipants, the community, and program costs.

22 (D) COVERED PROGRAMS.—The eligible

23 Federal programs through which assistance is

24 to be improved in accordance with the plan, and

25 the specific benefits that are to be provided
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1 under the plan pursuant to the program or pro2 grams, including criteria for determining eligi3 bility for benefits under the plan, the services

4 available, the amounts and form (such as cash,

5 in-kind contributions, or financial instruments)

6 of non-service benefits.

7 (E) SOURCES OF NON-FEDERAL FUNDS.—

8 A description of the sources of all non-Federal

9 funds that are to be used to carry out the pro10 gram or programs referred to in subparagraph

11 (D).

12 (F) FISCAL CONTROL AND ACCOUNTABIL13 ITY.—Fiscal control and related accountability

14 procedures that are to apply under the plan.

15 (G) CONSENT OF QUALIFIED ORGANIZA16 TIONS.—Written consent from each qualified

17 organization for which consent is required

18 under section 403(e)(2)(B).

19 (H) APPROVAL OF AFFECTED STATE AND

20 LOCAL PUBLIC ENTITIES.—A written statement,

21 from each State or local public entity to which

22 the Federal funds or assistance would otherwise

23 be provided under the program or programs,

24 that the entity approves of the proposal and will
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1 cooperate in the implementation of the proposal

2 by the applicant.

3 (2) ASSURANCES.—

4 (A) PROVISION OF PLAN TO AFFECTED OR5 GANS OF GOVERNMENT IN THE STATE.—Assur6 ances that a copy of the plan has been provided

7 to all affected organs of government in the geo8 graphic area referred to in paragraph (1)(A).

9 (B) CONSULTATION WITH PUBLIC-PRIVATE

10 PARTNERSHIP COMMITTEE.—Assurances that a

11 committee established under section 405 has

12 participated in the development of the plan.

13 (3) REQUEST FOR AUTHORITY TO IMPLEMENT

14 PLAN.—A request that the Chairperson authorize

15 the applicant to implement the plan, and waive the

16 application of any Federal statutory or regulatory

17 requirement to the extent necessary to enable such

18 implementation.

19 (4) OTHER INFORMATION.—Any other informa20 tion the Chairperson may require to approve the ap21 plication.

22 (b) OPTION TO SUBMIT STREAMLINED APPLICATION

23 TO IMPLEMENT ASSISTANCE PLAN REFORMING 3 OR

24 FEWER PROGRAMS.—Any entity that is receiving or is eli25 gible to receive funds or other assistance under an eligible
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1 Federal program and desires to reform 3 or fewer such

2 programs may submit to the Chairperson an application

3 that contains the following:

4 (1) ASSISTANCE PLAN.—An assistance plan

5 that sets forth the eligible Federal programs through

6 which assistance is to be improved in accordance

7 with the plan.

8 (2) APPROVAL OF AFFECTED ENTITIES.—A

9 written statement, from each non-Federal officer or

10 entity to which the Federal funds or assistance

11 would otherwise be provided (either directly or

12 through intervening levels of grantees or other re13 cipients) under the program or programs, that such

14 other officer or entity approves of the plan and will

15 cooperate in the implementation of the plan by the

16 entity.

17 (3) PROVISIONS OF LAW TO BE WAIVED.—A list

18 of the provisions of law or regulation which prevent

19 the entity from implementing the plan.

20 (4) REQUEST FOR AUTHORITY TO IMPLEMENT

21 PLAN.—A request that the Chairperson authorize

22 the applicant to implement the plan, and waive the

23 application of any Federal statutory or regulatory

24 requirement to the extent necessary to enable such

25 implementation.
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1 SEC. 403. REVIEW AND APPROVAL OF APPLICATIONS; WAIV2 ERS.

3 (a) REVIEW.—Upon receipt of an application submit4 ted in accordance with section 402, the Chairperson

5 shall—

6 (1) approve or disapprove the application within

7 90 days after such receipt;

8 (2) notify the applicant in writing of such ap9 proval or disapproval; and

10 (3) if the application is disapproved, include in

11 the notice of disapproval a written justification of

12 the reasons therefor.

13 (b) CONDITIONAL APPROVAL.—The Chairperson may

14 condition approval of such an application on the accept15 ance by the applicant, and by any parties whose consent

16 or approval is required under section 402, of specified

17 modifications to the application.

18 (c) APPROVAL.—

19 (1) REQUIREMENTS.—The Chairperson may

20 approve such an application, subject to paragraph

21 (2), if the Chairperson determines that—

22 (A) the implementation of the assistance

23 plan contained in the application will improve

24 the effectiveness and efficiency of providing

25 benefits under the covered program or pro26 grams included in the plan, by reducing admin-
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•HR 819 IH

1 istrative rigidity, duplication, and unnecessary

2 expenditures;

3 (B) the applicant has adequately consid4 ered, and the application appropriately address5 es, the effects that the administration of each

6 covered program included in the plan will have

7 on the administration of any other such pro8 gram;

9 (C) the applicant has or is developing data

10 bases, planning, and evaluation processes that

11 are adequate for implementing the plan;

12 (D) implementation of the plan will ade13 quately achieve the purposes of this title and of

14 such covered program or programs; and

15 (E) the plan is adequate to ensure that in16 dividuals and families that receive benefits

17 under the covered program or programs in18 cluded in the plan will continue to receive bene19 fits that meet the needs intended to be met

20 under the program or programs.

21 (2) LIMITATIONS.—The Chairperson may not

22 approve such an application if—

23 (A) implementation of the assistance plan

24 contained in the application would result in an

25 increase in the total amount of obligations or
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1 outlays of discretionary appropriations or direct

2 spending under the covered program or pro3 grams included in the plan, over the amounts

4 of such obligations and outlays that would

5 occur under the program or programs without

6 implementation of the plan; or

7 (B) if the plan applies to assistance to a

8 qualified organization under an eligible Federal

9 program, the qualified organization does not

10 consent in writing to the receipt of such assist11 ance in accordance with the plan.

12 (3) IMPLEMENTATION PERIOD.—In approving

13 such an application, the Chairperson shall specify

14 the period during which the assistance plan con15 tained in the application may be implemented.

16 (d) WAIVERS.—

17 (1) IN GENERAL.—Subject to this subsection,

18 the Chairperson may waive any requirement applica19 ble under Federal law to the administration of, or

20 provision of benefits under, any covered program in21 cluded in an application approved under this title, if

22 the waiver is reasonably necessary for the implemen23 tation of the assistance plan contained in the ap24 proved application.
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1 (2) FUNDING LIMITATION.—This subsection

2 shall not be construed to authorize the Chairperson

3 to waive the application to any entity of a provision

4 of law or regulation applicable to a program if the

5 waiver would result in net payments by the Federal

6 Government to the entity under the program for a

7 fiscal year in excess of the net payments which

8 would otherwise be so made to the entity.

9 (3) CIVIL RIGHTS LAWS EXCEPTED.—This sub10 section shall not be construed to authorize the

11 Chairperson to waive any requirement established by

12 statute or regulation under—

13 (A) title VI of the Civil Rights Act of 1964

14 (42 U.S.C. 2000d et seq.);

15 (B) section 504 of the Rehabilitation Act

16 of 1973 (29 U.S.C. 701 et seq.);

17 (C) title IX of the Education Amendments

18 of 1972 (86 Stat. 373 et seq.);

19 (D) the Age Discrimination Act of 1975

20 (42 U.S.C. 6101 et seq.); or

21 (E) the Americans With Disabilities Act of

22 1990.
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1 SEC. 404. IMPLEMENTATION OF ASSISTANCE PLANS; EVAL2 UATIONS.

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, benefits under any covered program included

5 in an application approved under this title shall be paid

6 and administered in the manner specified in the approved

7 application.

8 (b) EVALUATIONS.—

9 (1) IN GENERAL.—Any entity whose application

10 is approved under this title shall, in accordance with

11 regulations issued by the Chairperson—

12 (A) submit such reports on, and cooperate

13 in such audits of, the implementation of the as14 sistance plan contained in the application; and

15 (B) periodically evaluate the effects that

16 implementation of the plan has had on—

17 (i) individuals who receive benefits

18 under a covered program included in the

19 plan;

20 (ii) communities where such individ21 uals live; and

22 (iii) costs of administering the covered

23 program or programs included in the plan.

24 (2) ANNUAL REPORTS.—Not later than 90 days

25 after the end of the 1-year period beginning on the

26 date the application of an entity is approved under
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1 this title, and annually thereafter, the entity shall

2 submit to the Chairperson a report on the principal

3 activities and achievements under the assistance

4 plan contained in the application, during the period

5 covered by the report, and, if the application was

6 submitted under section 402(a), the report shall

7 compare those achievements to the objectives and

8 performance criteria included in the plan pursuant

9 to section 402(a)(1)(C).

10 (c) FINAL REPORT.—Not later than 45 days after

11 the end of the period for which the Chairperson has ini12 tially authorized an entity to implement an assistance

13 plan, or at any time that the entity determines that the

14 plan has demonstrated its worth and proven to be a supe15 rior way to provide benefits under the covered program

16 or programs included in the plan, the entity shall submit

17 to the Chairperson a final report on such implementation,

18 including a full evaluation of the successes and short19 comings of the plan and the effects of such implementa20 tion on individuals who receive benefits under such pro21 gram or programs.

22 (d) EXTENSION OF PLANS.—The Chairperson may

23 extend, for such period as may be appropriate, the period

24 for which an entity may implement an approved assistance
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•HR 819 IH

1 plan, based on the report of the entity under subsection

2 (c).

3 (e) SUSPENSION AND TERMINATION.—

4 (1) IN GENERAL.—The Chairperson may re5 quire an entity to suspend or terminate implementa6 tion of part or all of an assistance plan under—

7 (A) any approved application under this

8 title if the Chairperson finds that the applicant

9 has failed to carry out a covered program in ac10 cordance with any applicable provision of law or

11 regulation; or

12 (B) an approved application that was sub13 mitted under section 402(a), if, after consulta14 tion with the head of each Federal agency re15 sponsible for administering a covered program

16 included in the approved application, the Chair17 person determines that the objectives and per18 formance criteria included in the plan pursuant

19 to section 402(a)(1)(C) have not been met.

20 (2) TIMING.—In requiring the implementation

21 of an assistance plan to be terminated under para22 graph (1), the Chairperson shall allow a reasonable

23 period of time for appropriate Federal, State, and

24 local agencies, and qualified organizations to resume
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1 administration of the covered program or programs

2 included in the application that contains the plan.

3 SEC. 405. PUBLIC-PRIVATE PARTNERSHIP COMMITTEES.

4 (a) ESTABLISHMENT.—An entity desiring to submit

5 an application under section 402(a) shall establish a Pub6 lic-Private Partnership Committee in accordance with this

7 section.

8 (b) FUNCTIONS.—A Public-Private Partnership Com9 mittee shall advise an entity in the development and imple10 mentation of an assistance plan, including with respect

11 to—

12 (1) conducting public hearings;

13 (2) representing the interest of low-income indi14 viduals and families; and

15 (3) reviewing and commenting on all commu16 nity policies, programs, and actions under the plan

17 which affect low-income individuals and families,

18 with the purpose of assuring maximum coordination

19 and responsiveness of the plan in providing benefits

20 under the plan to those individuals and families.

21 (c) MEMBERSHIP.—The membership of a Public-Pri22 vate Partnership Committee shall—

23 (1) consist of—

24 (A) low-income individuals, who shall—
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(i) comprise at least 1 1 ⁄3 of the mem2 bership; and

3 (ii) include minority individuals who

4 are participants or who qualify to partici5 pate in eligible Federal programs;

6 (B) representatives of low-income individ7 uals and families;

8 (C) persons with leadership experience in

9 the private and voluntary sectors;

10 (D) local elected officials; and

11 (E) the general public; and

12 (2) include individuals and representatives of

13 community and business organizations who will help

14 to enhance the leadership role of the entity in devel15 oping an assistance plan.

16 SEC. 406. DEFINITIONS.

17 As used in this title:

18 (1) ASSISTANCE PLAN.—The term ‘‘assistance

19 plan’’ means a plan for improving the provision of

20 assistance under 1 or more eligible Federal pro21 grams.

22 (2) BOARD.—The term ‘‘Board’’ means the

23 Interagency Waiver Request Board established by

24 section 401.
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1 (3) CHAIRPERSON.—The term ‘‘Chairperson’’

2 means the Chairperson of the Board.

3 (4) COVERED PROGRAM.—The term ‘‘covered

4 program’’ means, with respect to an assistance plan,

5 the eligible Federal programs included in the plan.

6 (5) ELIGIBLE FEDERAL PROGRAM.—The term

7 ‘‘eligible Federal program’’ means any Federal pro8 gram which, directly or indirectly, provides cash as9 sistance to individuals, or under which assistance is

10 available for—

11 (A) education;

12 (B) employment training;

13 (C) health;

14 (D) housing;

15 (E) nutrition; or

16 (F) other social services.

17 (6) QUALIFIED ORGANIZATION.—The term

18 ‘‘qualified organization’’ means any private, not-for19 profit organization that is exempt from taxation

20 under section 501(c)(3) of the Internal Revenue

21 Code of 1986 (26 U.S.C. 501(c)(3)).

22 (7) STATE.—

23 (A) IN GENERAL.—The term ‘‘State’’

24 means the 50 States, the District of Columbia,
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1 Puerto Rico, American Samoa, Guam, and the

2 Virgin Islands.

3 (B) INDIAN TRIBES.—In the case of an eli4 gible Federal program under which assistance

5 is provided with respect to an Indian tribe, the

6 Indian tribal organization is deemed to be a

7 State.

8 SEC. 407. REPORTS.

9 (a) IN GENERAL.—The Comptroller General of the

10 United States shall submit to the Congress 2 reports

11 that—

12 (1) describe the extent to which assistance

13 plans have been implemented in accordance with this

14 title;

15 (2) evaluate the effectiveness of covered Federal

16 assistance programs included in such plans; and

17 (3) include recommendations with respect to

18 whether to continue activities under this title.

19 (b) TIMING.—The Comptroller General shall submit

20 a report under subsection (a) not later than 3 years after

21 the date of the enactment of this Act, and another such

22 report not later than 6 years after such date of enactment.

23 SEC. 408. SUNSET.

24 Any authority provided under this title shall expire

25 7 years after the date of the enactment of this Act.
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1 TITLE V—MISCELLANEOUS

2 SEC. 501. AFDC RECIPIENTS REQUIRED TO UNDERGO NEC3 ESSARY SUBSTANCE ABUSE TREATMENT AS A

4 CONDITION OF RECEIVING AFDC.

5 (a) IN GENERAL.—Section 402(a) of the Social Secu6 rity Act (42 U.S.C. 602(a)) is amended by inserting after

7 paragraph (34) the following:

8 ‘‘(35) provide that—

9 ‘‘(A) as a condition of eligibility for aid

10 under the State plan, each applicant or recipi11 ent who the State determines is addicted to al12 cohol or drugs must be required to agree to

13 participate, and must maintain satisfactory par14 ticipation (as determined by the State), in an

15 appropriate addiction treatment program (if

16 available), and must be required to agree to

17 submit to tests for the presence of alcohol or

18 drugs, without advance notice, during and after

19 such participation; and

20 ‘‘(B) each applicant or recipient who fails

21 to comply with any requirement imposed pursu22 ant to subparagraph (A) shall not be eligible for

23 such aid during the 2-year period that begins

24 with such failure to comply, but shall be consid25 ered to be receiving such aid for purposes of eli-
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1 gibility for medical assistance under the State

2 plan approved under title XIX.’’.

3 (b) EFFECTIVE DATE.—

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendment made by subsection (a)

6 shall take effect on the date of the enactment of this

7 Act, and shall apply to payments under part A of

8 title IV of the Social Security Act for calendar quar9 ters ending after such date.

10 (2) DELAY PERMITTED IF STATE LEGISLATION

11 REQUIRED.—In the case of a State plan approved

12 under section 402(a) of the Social Security Act

13 which the Secretary of Health and Human Services

14 determines requires State legislation (other than leg15 islation appropriating funds) in order for the plan to

16 meet the additional requirement imposed by the

17 amendment made by subsection (a) of this section,

18 the State plan shall not be regarded as failing to

19 comply with the requirements of such section 402(a)

20 solely on the basis of the failure of the plan to meet

21 such additional requirement before the end of the 2-

22 year period that begins with the date of the enact23 ment of this Act.
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1 SEC. 502. EVALUATION OF EDUCATION AND TRAINING PRO2 GRAMS.

3 (a) IN GENERAL.—The Secretary of Health and

4 Human Services shall conduct research projects to exam5 ine the impact of education and training programs on the

6 ability of individuals to end participation in the program

7 of aid to families with dependent children under part A

8 of title IV of the Social Security Act, expenditures under

9 such program, wage rates, employment histories, and the

10 resumption of participation in such program of individuals

11 who had ended such participation. The Secretary shall col12 lect information with respect to any individual during a

13 period of not less than 5 years.

14 (b) SPECIAL RULE.—At least 1 research project con15 ducted under subsection (a) shall involve the random as16 signment of adult recipients of aid to families with depend17 ent children under part A of title IV of the Social Security

18 Act among—

19 (1) a group that is not required to participate

20 in any special activity;

21 (2) a group that is required to participate in

22 education or job training programs; and

23 (3) a group that is required to participate in a

24 job search program, or in a job search and a work

25 program.
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1 SEC. 503. JOB SEARCH REQUIRED WHILE AFDC APPLICA2 TION IS PENDING.

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

4 602(a)), as amended by sections 201(a)(1), 302, 303, 304,

5 305, 307, and 309(a) of this Act, is amended—

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

7 (51);

8 (2) by striking the period at the end of para9 graph (52) and inserting ‘‘; and’’; and

10 (3) by inserting after paragraph (52) the fol11 lowing:

12 ‘‘(53) unless the State has enacted a law ex13 empting itself from the application of this para14 graph, provide that—

15 ‘‘(A) each applicant for aid under the

16 State plan must participate in job search activi17 ties while the application is pending; and

18 ‘‘(B) the State agency must reimburse the

19 applicant for necessary transportation and child

20 care expenses incurred as a result of such par21 ticipation.’’.

22 SEC. 504. FRAUD AND ADMINISTRATIVE EFFICIENCY.

23 (a) DEMONSTRATION PROJECTS.—

24 (1) IN GENERAL.—The Secretary of Health and

25 Human Services may conduct demonstration

26 projects in several States to determine whether pro-
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1 viding benefits based on need through the use of

2 electronic cards and automatic teller machines would

3 reduce administrative costs and fraud.

4 (2) REPORT TO THE CONGRESS.—Within 5

5 years after the date of the enactment of this Act, the

6 Secretary shall submit to the Congress a report

7 that—

8 (A) summarizes the results of the projects;

9 and

10 (B) makes recommendations with respect

11 to whether and how more States might be re12 quired or encouraged to use electronic funds

13 transfer in providing benefits based on need.

14 (b) COMMISSION.—

15 (1) IN GENERAL.—The Secretary of Health and

16 Human Services (in this subsection referred to as

17 the ‘‘Secretary’’) shall establish a commission (in

18 this subsection referred to as the ‘‘Commission’’)

19 composed of heads of executive departments, expert

20 private individuals, and State administrators, to de21 termine the cost and feasibility of creating an inter22 state system to compare the social security account

23 numbers of all recipients of aid to families with de24 pendent children under State plans approved under

25 part A of title IV of the Social Security Act, so as
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1 to identify any such recipients who are receiving

2 such aid from 2 or more States.

3 (2) BASIC PAY.—

4 (A) RATES OF PAY.—Except as provided

5 in paragraph (2), members of the Commission

6 shall each be paid at a rate not to exceed $200

7 for each day (including travel time) during

8 which they are engaged in the actual perform9 ance of duties of the Commission.

10 (B) PROHIBITION OF COMPENSATION OF

11 FEDERAL EMPLOYEES.—Each member of the

12 Commission who is a full-time officer or em13 ployee of the United States may not receive ad14 ditional pay, allowances, or benefits by reason

15 of their service on the Commission.

16 (3) TRAVEL EXPENSES.—Each member of the

17 Commission shall receive travel expenses, including

18 per diem in lieu of subsistence, in accordance with

19 sections 5702 and 5703 of title 5, United States

20 Code.

21 (4) STAFF OF FEDERAL AGENCIES.—Upon re22 quest of the Secretary, the head of any Federal de23 partment or agency may detail, on a reimbursable

24 basis, any of the personnel of that department or
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1 agency to the Commission to assist it in carrying out

2 its duties under this subsection.

3 (5) OBTAINING OFFICIAL DATA.—The Commis4 sion may secure directly from any department or

5 agency of the United States information necessary

6 to enable it to carry out this subsection. Upon re7 quest of the Secretary, the head of that department

8 or agency shall furnish that information to the Com9 mission.

10 (6) MAILS.—The Commission may use the

11 United States mails in the same manner and under

12 the same conditions as other departments and agen13 cies of the United States.

14 (7) ADMINISTRATIVE SUPPORT SERVICES.—

15 Upon request of the Secretary, the Administrator of

16 General Services shall provide to the Commission, on

17 a reimbursable basis, the administrative support

18 services necessary for the Commission to carry out

19 its responsibilities under this subsection.

20 (8) REPORT.—Within 2 years after the date of

21 the enactment of this Act, the Secretary shall submit

22 to the Congress a report that contains the findings

23 of the Commission.
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1 (9) TERMINATION OF COMMISSION.—The Com2 mission shall terminate upon submission of the re3 port required by paragraph (8).

4 SEC. 505. REQUIRED IMMUNIZATIONS FOR CHILDREN.

5 (a) AFDC BENEFITS DENIED FOR CHILDREN WHO

6 HAVE NOT RECEIVED PREVENTIVE HEALTH CARE OR

7 IMMUNIZATIONS.—

8 (1) IN GENERAL.—Section 402(a) of the Social

9 Security Act (42 U.S.C. 602(a)), as amended by sec10 tions 201(a)(1), 302, 303, 304, 305, 307, 309(a),

11 and 503 of this Act, is amended—

12 (A) by striking ‘‘and’’ at the end of para13 graph (52);

14 (B) by striking the period at the end of

15 paragraph (53) and inserting ‘‘; and’’; and

16 (C) by inserting after paragraph (53) the

17 following:

18 ‘‘(54) provide that—

19 ‘‘(A) aid under the plan shall not be pay20 able with respect to any child who has not at21 tained the age of 6 years, unless the State

22 agency has received from 1 or more physicians

23 written verification (on a form prescribed by the

24 State)—
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1 ‘‘(i) that the child has been examined

2 by a physician not less frequently than—

3 ‘‘(I) in the case of a child who

4 has not attained the age of 19

5 months, every 6 months since the

6 child was born; and

7 ‘‘(II) in the case of any other

8 child, every 6 months until the child

9 attained the age of 19 months, and

10 every year thereafter;

11 ‘‘(ii) that the child has been immu12 nized in accordance with recommendations

13 issued by the Surgeon General of the Pub14 lic Health Service; and

15 ‘‘(iii) of any contraindication which

16 exempts the child from receiving an immu17 nization;

18 ‘‘(B) the State will conduct appropriate

19 education and outreach activities designed to—

20 ‘‘(i) increase public awareness of the

21 importance of preventive health care and

22 immunizations for pre-school children; and

23 ‘‘(ii) inform the public about—
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1 ‘‘(I) the availability of preventive

2 health care and immunization services

3 for pre-school children;

4 ‘‘(II) any transportation, child

5 care, or other support services that

6 may be available to assist parents in

7 obtaining such services for their chil8 dren; and

9 ‘‘(III) the clinics at which any

10 child may receive immunizations free

11 or at a reduced charge.’’.

12 (2) APPLICABILITY.—The amendments made

13 by paragraph (1) shall apply to—

14 (A) payments to individuals under State

15 plan approved under part A of title IV of the

16 Social Security Act, for months beginning on or

17 after October 1, 1997; and

18 (B) payments to States under such part

19 for calendar quarters beginning on or after Oc20 tober 1, 1997.

21 (b) AMENDMENTS TO THE CHILD CARE AND DEVEL22 OPMENT BLOCK GRANT.—

23 (1) IN GENERAL.—Section 658E(2) of the

24 Child Care and Development Block Grant Act (42

25 U.S.C. 9858c(2)) is amended—
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1 (A) in subparagraph (F)—

2 (i) in clause (ii) by striking ‘‘and’’ at

3 the end;

4 (ii) in clause (iii) by striking the pe5 riod at the end and inserting ‘‘; and’’;

6 (iii) by inserting after subclause (III),

7 as so redesignated, the following:

8 ‘‘(iv) a requirement that such provid9 ers require with respect to each child who

10 receives child care services from any of

11 such providers that certificates signed by a

12 physician who verifies that such child has

13 been immunized in accordance with rec14 ommendations issued by the Surgeon Gen15 eral of the Public Health Service be sub16 mitted, at required intervals and in accord17 ance with rules issued by the Secretary, to

18 the child care provider involved.’’; and

19 (iv) by striking the last sentence; and

20 (B) in subparagraph (G)—

21 (i) by inserting ‘‘(i)’’ before ‘‘Pro22 vide’’; and

23 (ii) by adding at the end the follow24 ing:
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1 ‘‘(ii) For the purpose of enforcing the re2 quirement described in subparagraph (F)(iv),

3 such procedures shall ensure that each of such

4 providers gives to parents of each child who re5 ceives child care services from the provider in6 volved written notice of—

7 ‘‘(I) each immunization requirement

8 applicable to such child;

9 ‘‘(II) an opportunity of not less than

10 30 days, and not more than 45 days, to

11 correct the failure to satisfy such require12 ment; and

13 ‘‘(III) the fact that child care services

14 for such child will be terminated for failure

15 to satisfy such requirement before the expi16 ration of the 45-day period beginning on

17 the date such notice is received.’’.

18 (2) APPLICABILITY.—The amendments made

19 by paragraph (1) shall not apply with respect to fis20 cal years beginning before October 1, 1997.

21 (c) ISSUANCE OF IMMUNIZATION RECOMMENDA22 TIONS BY THE SURGEON GENERAL OF THE PUBLIC

23 HEALTH SERVICE.—After taking into consideration the

24 then most recent report of the Committee on Infectious

25 Diseases of the American Academy of Pediatrics, the Sur-
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1 geon General of the Public Health Service shall issue, and

2 revise from time to time, recommendations for the immu3 nization of children under 6 years of age. With respect

4 to each recommended immunization, such recommenda5 tion shall include—

6 (1) contraindications (if any) that should be

7 identified to exempt a child from receiving such im8 munization, and

9 (2) remedial action that may be taken to mini10 mize the adverse effect of failure to administer such

11 immunization to a child at the recommended age.

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