H. R. 3734—241
‘‘(B) individual or household members to be residing
in the geographic location served by the distributing agency
at the time of applying for assistance.
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall encourage
each State receiving commodities under this Act to establish a
State advisory board consisting of representatives of all entities
in the State, both public and private, interested in the distribution
of commodities received under this Act.’’.
(c) AUTHORIZATION
OF APPROPRIATIONS
FOR ADMINISTRATIVE
FUNDS.—Section 204(a)(1) of the Emergency Food Assistance Act
of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended—
(1) in the first sentence, by striking ‘‘for State and local’’
and all that follows through ‘‘under this title’’ and inserting
‘‘to pay for the direct and indirect administrative costs of the
States related to the processing, transporting, and distributing
to eligible recipient agencies of commodities provided by the
Secretary under this Act and commodities secured from other
sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note)
is amended—
(1) by striking subsections (a) through (e) and (j);
(2) by redesignating subsections (f) through (i) as sub-
sections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph (2)—
(A) in the first sentence, by striking ‘‘subsection (f)
or subsection (j) if applicable,’’ and inserting ‘‘subsection
(a),’’; and
(B) in the second sentence, by striking ‘‘subsection
(f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated by paragraph
(2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made available for each
fiscal year under this section shall be delivered at reasonable
intervals to States based on the grants calculated under sub-
section (a), or reallocated under subsection (b), before December
31 of the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be entitled to receive
the value of additional commodities determined under sub-
section (a).’’; and
(5) in subsection (d), as redesignated by paragraph (2),
by striking ‘‘or reduce’’ and all that follows through ‘‘each
fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Emergency Food Assistance
Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended—
(1) in the first sentence of section 203B(a), by striking
‘‘203 and 203A of this Act’’ and inserting ‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each place it appears
and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by striking
‘‘(except as otherwise provided for in section 214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food Security Act
of 1985 (Public Law 99–198; 7 U.S.C. 612c note) is repealed.
H. R. 3734—242
(g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP
PROGRAM.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by section 854(a), is amended by adding at the end
the following:
‘‘SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts made avail-
able to carry out this Act, for each of fiscal years 1997 through
2002, the Secretary shall purchase $100,000,000 of a variety of
nutritious and useful commodities of the types that the Secretary
has the authority to acquire through the Commodity Credit Corpora-
tion or under section 32 of the Act entitled ‘An Act to amend
the Agricultural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the commodities
to States for distribution in accordance with section 214 of the
Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note).
‘‘(b) 
BASIS
FOR
COMMODITY
PURCHASES.—In 
purchasing
commodities under subsection (a), the Secretary shall, to the extent
practicable and appropriate, make purchases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and distributing
agencies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by subsection
(d) shall become effective on October 1, 1996.
SEC. 872. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food Bank Act
of 1987 (Public Law 100–232; 7 U.S.C. 612c note) is repealed.
SEC. 873. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law 100–435; 7
U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING.
Section 1773 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 7 U.S.C. 612c note) is amended
by striking subsection (f).
Subtitle C—Electronic Benefit Transfer
Systems
SEC. 
891. 
PROVISIONS 
TO 
ENCOURAGE 
ELECTRONIC 
BENEFIT
TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C.
1693b) is amended—
(1) by striking ‘‘(d) In the event that’’ and inserting ‘‘(d)
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN
FINANCIAL INSTITUTIONS.—
‘‘(1) IN GENERAL.—If’’; and
(2) by adding at the end the following:
H. R. 3734—243
‘‘(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT
TRANSFER SYSTEMS.—
‘‘(A) DEFINITION
OF
ELECTRONIC
BENEFIT
TRANSFER
SYSTEM.—In this paragraph, the term ‘electronic benefit
transfer system’—
‘‘(i) means a system under which a government
agency distributes needs-tested benefits by establishing
accounts that may be accessed by recipients electroni-
cally, such as through automated teller machines or
point-of-sale terminals; and
‘‘(ii) does not include employment-related pay-
ments, including salaries and pension, retirement, or
unemployment benefits established by a Federal, State,
or local government agency.
‘‘(B) EXEMPTION GENERALLY.—The disclosures, protec-
tions, responsibilities, and remedies established under this
title, and any regulation prescribed or order issued by
the Board in accordance with this title, shall not apply
to any electronic benefit transfer system established under
State or local law or administered by a State or local
government.
‘‘(C) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT’S
ACCOUNT.—Subparagraph (B) shall not apply with respect
to any electronic funds transfer under an electronic benefit
transfer system for a deposit directly into a consumer
account held by the recipient of the benefit.
‘‘(D) RULE
OF
CONSTRUCTION.—No provision of this
paragraph—
‘‘(i) affects or alters the protections otherwise
applicable with respect to benefits established by any
other provision Federal, State, or local law; or
‘‘(ii) otherwise supersedes the application of any
State or local law.’’.
TITLE IX—MISCELLANEOUS
SEC. 901. APPROPRIATION BY STATE LEGISLATURES.
(a) IN GENERAL.—Any funds received by a State under the
provisions of law specified in subsection (b) shall be subject to
appropriation by the State legislature, consistent with the terms
and conditions required under such provisions of law.
(b) PROVISIONS OF LAW.—The provisions of law specified in
this subsection are the following:
(1) Part A of title IV of the Social Security Act (relating
to block grants for temporary assistance for needy families).
(2) The Child Care and Development Block Grant Act of
1990 (relating to block grants for child care).
SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED
SUBSTANCES.
Notwithstanding any other provision of law, States shall not
be prohibited by the Federal Government from testing welfare
recipients for use of controlled substances nor from sanctioning
welfare recipients who test positive for use of controlled substances.
H. R. 3734—244
SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO
FUGITIVE 
FELONS 
AND 
PROBATION 
AND 
PAROLE
VIOLATORS.
(a) ELIGIBILITY FOR ASSISTANCE.—The United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) is amended—
(1) in section 6(l)—
(A) in paragraph (5), by striking ‘‘and’’ at the end;
(B) in paragraph (6), by striking the period at the
end and inserting ‘‘; and’’; and
(C) by inserting immediately after paragraph (6) the
following new paragraph:
‘‘(7) provide that it shall be cause for immediate termination
of the tenancy of a public housing tenant if such tenant—
‘‘(A) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the place
from which the individual flees, for a crime, or attempt
to commit a crime, which is a felony under the laws of
the 
place 
from 
which 
the 
individual
flees, or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such State; or
‘‘(2) is violating a condition of probation or parole imposed
under Federal or State law.’’; and
(2) in section 8(d)(1)(B)—
(A) in clause (iii), by striking ‘‘and’’ at the end;
(B) in clause (iv), by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding after clause (iv) the following new clause:
‘‘(v) it shall be cause for termination of the tenancy
of a tenant if such tenant—
‘‘(I) is fleeing to avoid prosecution, or custody
or confinement after conviction, under the laws
of the place from which the individual flees, for
a crime, or attempt to commit a crime, which
is a felony under the laws of the place from which
the individual flees, or which, in the case of the
State of New Jersey, is a high misdemeanor under
the laws of such State; or
‘‘(II) is violating a condition of probation or
parole imposed under Federal or State law;’’.
(b) PROVISION OF INFORMATION TO LAW ENFORCEMENT AGEN-
CIES.—Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is amended by adding at the end the following:
‘‘SEC. 27. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT
AGENCIES.
‘‘Notwithstanding any other provision of law, each public hous-
ing agency that enters into a contract for assistance under section
6 or 8 of this Act with the Secretary shall furnish any Federal,
State, or local law enforcement officer, upon the request of the
officer, with the current address, Social Security number, and photo-
graph (if applicable) of any recipient of assistance under this Act,
if the officer—
‘‘(1) furnishes the public housing agency with the name
of the recipient; and
‘‘(2) notifies the agency that—
‘‘(A) such recipient—
H. R. 3734—245
‘‘(i) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime,
or attempt to commit a crime, which is a felony under
the laws of the place from which the individual flees,
or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such State;
or
‘‘(ii) is violating a condition of probation or parole
imposed under Federal or State law; or
‘‘(iii) has information that is necessary for the offi-
cer to conduct the officer’s official duties;
‘‘(B) the location or apprehension of the recipient is
within such officer’s official duties; and
‘‘(C) the request is made in the proper exercise of
the officer’s official duties.’’.
SEC. 904. SENSE OF THE SENATE REGARDING THE INABILITY OF THE
NONCUSTODIAL PARENT TO PAY CHILD SUPPORT.
It is the sense of the Senate that—
(a) States should diligently continue their efforts to enforce
child support payments by the non-custodial parent to the
custodial parent, regardless of the employment status or loca-
tion of the non-custodial parent; and
(b) States are encouraged to pursue pilot programs in which
the parents of a non-adult, non-custodial parent who refuses
to or is unable to pay child support must—
(1) pay or contribute to the child support owed by
the non-custodial parent; or
(2) otherwise fulfill all financial obligations and meet
all conditions imposed on the non-custodial parent, such
as participation in a work program or other related activity.
SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE
PREGNANCIES.
(a) IN GENERAL.—Not later than January 1, 1997, the Secretary
of Health and Human Services shall establish and implement a
strategy for—
(1) preventing out-of-wedlock teenage pregnancies, and
(2) assuring that at least 25 percent of the communities
in the United States have teenage pregnancy prevention pro-
grams in place.
(b) REPORT.—Not later than June 30, 1998, and annually there-
after, the Secretary shall report to the Congress with respect to
the progress that has been made in meeting the goals described
in paragraphs (1) and (2) of subsection (a).
SEC. 906. SENSE OF THE SENATE REGARDING ENFORCEMENT OF
STATUTORY RAPE LAWS.
(a) SENSE OF THE SENATE.—It is the sense of the Senate that
States and local jurisdictions should aggressively enforce statutory
rape laws.
(b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY RAPE.—Not
later than January 1, 1997, the Attorney General shall establish
and implement a program that—
(1) studies the linkage between statutory rape and teenage
pregnancy, particularly by predatory older men committing
repeat offenses; and
H. R. 3734—246
(2) educates State and local criminal law enforcement offi-
cials on the prevention and prosecution of statutory rape, focus-
ing in particular on the commission of statutory rape by preda-
tory older men committing repeat offenses, and any links to
teenage pregnancy.
(c) VIOLENCE
AGAINST
WOMEN
INITIATIVE.—The Attorney
General shall ensure that the Department of Justice’s Violence
Against Women initiative addresses the issue of statutory rape,
particularly the commission of statutory rape by predatory older
men committing repeat offenses.
SEC. 
907. 
PROVISIONS 
TO 
ENCOURAGE 
ELECTRONIC 
BENEFIT
TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C.
1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting ‘‘(d)
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN
FINANCIAL INSTITUTIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT
TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION GENERALLY.—The disclosures, protec-
tions, responsibilities, and remedies established under this
title, and any regulation prescribed or order issued by
the Board in accordance with this title, shall not apply
to any electronic benefit transfer program established
under State or local law or administered by a State or
local government.
‘‘(B) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT’S
ACCOUNT.—Subparagraph (A) shall not apply with respect
to any electronic funds transfer under an electronic benefit
transfer program for deposits directly into a consumer
account held by the recipient of the benefit.
‘‘(C) RULE
OF
CONSTRUCTION.—No provision of this
paragraph may be construed as—
‘‘(i) affecting or altering the protections otherwise
applicable with respect to benefits established by Fed-
eral, State, or local law; or
‘‘(ii) otherwise superseding the application of any
State or local law.
‘‘(D) 
ELECTRONIC
BENEFIT
TRANSFER
PROGRAM
DEFINED.—For purposes of this paragraph, the term ‘elec-
tronic benefit transfer program’—
‘‘(i) means a program under which a government
agency distributes needs-tested benefits by establishing
accounts to be accessed by recipients electronically,
such as through automated teller machines, or point-
of-sale terminals; and
‘‘(ii) does not include employment-related pay-
ments, including salaries and pension, retirement, or
unemployment benefits established by Federal, State,
or local governments.’’.
SEC. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL
SERVICES; USE OF VOUCHERS.
(a) REDUCTION OF GRANTS.—Section 2003(c) of the Social Secu-
rity Act (42 U.S.C. 1397b(c)) is amended—
H. R. 3734—247
(1) by striking ‘‘and’’ at the end of paragraph (4); and
(2) by striking paragraph (5) and inserting the following:
‘‘(5) $2,800,000,000 for each of the fiscal years 1990 through
1995;
‘‘(6) $2,381,000,000 for the fiscal year 1996;
‘‘(7) $2,380,000,000 for each of the fiscal years 1997 through
2002; and
‘‘(8) $2,800,000,000 for the fiscal year 2003 and each
succeeding fiscal year.’’.
(b) AUTHORITY TO USE VOUCHERS.—Section 2002 of such Act
(42 U.S.C. 1937a) is amended by adding at the end the following:
‘‘(f) A State may use funds provided under this title to provide
vouchers, for services directed at the goals set forth in section
2001, to families, including—
‘‘(1) families who have become ineligible for assistance
under a State program funded under part A of title IV
by reason of a durational limit on the provision of such assist-
ance; and
‘‘(2) families denied cash assistance under the State pro-
gram funded under part A of title IV for a child who is born
to a member of the family who is—
‘‘(A) a recipient of assistance under the program; or
‘‘(B) a person who received such assistance at any
time during the 10-month period ending with the birth
of the child.’’.
SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT
ON BASIS OF DISQUALIFIED INCOME.
(a) REDUCTION IN DISQUALIFIED INCOME THRESHOLD.—
(1) IN
GENERAL.—Paragraph (1) of section 32(i) of the
Internal Revenue Code of 1986 (relating to denial of credit
for individuals having excessive investment income) is amended
by striking ‘‘$2,350’’ and inserting ‘‘$2,200’’.
(2) ADJUSTMENT FOR INFLATION.—Subsection (j) of section
32 of such Code is amended to read as follows:
‘‘(j) INFLATION ADJUSTMENTS.—
‘‘(1) IN GENERAL.—In the case of any taxable year beginning
after 1996, each of the dollar amounts in subsections (b)(2)
and (i)(1) shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ‘calendar year
1995’ for ‘calendar year 1992’ in subparagraph (B) thereof.
‘‘(2) ROUNDING.—
‘‘(A) IN GENERAL.—If any dollar amount in subsection
(b)(2), after being increased under paragraph (1), is not
a multiple of $10, such dollar amount shall be rounded
to the nearest multiple of $10.
‘‘(B) DISQUALIFIED INCOME THRESHOLD AMOUNT.—If the
dollar amount in subsection (i)(1), after being increased
under paragraph (1), is not a multiple of $50, such amount
shall be rounded to the next lowest multiple of $50.’’.
(3) CONFORMING
AMENDMENT.—Paragraph (2) of section
32(b) of such Code is amended to read as follows:
H. R. 3734—248
‘‘(2) AMOUNTS.—The earned income amount and the phase-
out amount shall be determined as follows:
In the case of an eligi-
ble individual with:
The earned income
amount is:
The phaseout
amount is:
1 qualifying child .......
$6,330
$11,610
2 or more qualifying
children.
$8,890
$11,610
No qualifying children
$4,220
$ 5,280’’.
(b) DEFINITION
OF DISQUALIFIED INCOME.—Paragraph (2) of
section 32(i) of such Code (defining disqualified income) is amended
by striking ‘‘and’’ at the end of subparagraph (B), by striking the
period at the end of subparagraph (C) and inserting a comma,
and by adding at the end the following new subparagraphs:
‘‘(D) the capital gain net income (as defined in section
1222) of the taxpayer for such taxable year, and
‘‘(E) the excess (if any) of—
‘‘(i) the aggregate income from all passive activities
for the taxable year (determined without regard to
any amount included in earned income under sub-
section (c)(2) or described in a preceding subpara-
graph), over
‘‘(ii) the aggregate losses from all passive activities
for the taxable year (as so determined).
For purposes of subparagraph (E), the term ‘passive activity’
has the meaning given such term by section 469.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS.—In the case of any
individual who on or before June 26, 1996, has in effect an
earned income eligibility certificate for the individual’s taxable
year beginning in 1996, the amendments made by this section
shall apply to taxable years beginning after December 31, 1996.
SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION
FOR EARNED INCOME CREDIT.
(a) IN GENERAL.—Subsections (a)(2)(B), (c)(1)(C), and (f)(2)(B)
of section 32 of the Internal Revenue Code of 1986 are each amended
by striking ‘‘adjusted gross income’’ each place it appears and insert-
ing ‘‘modified adjusted gross income’’.
(b) MODIFIED ADJUSTED GROSS INCOME DEFINED.—Section 32(c)
of such Code (relating to definitions and special rules) is amended
by adding at the end the following new paragraph:
‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—
‘‘(A) IN GENERAL.—The term ‘modified adjusted gross
income’ means adjusted gross income determined without
regard to the amounts described in subparagraph (B).
‘‘(B) CERTAIN AMOUNTS DISREGARDED.—An amount is
described in this subparagraph if it is—
‘‘(i) the amount of losses from sales or exchanges
of capital assets in excess of gains from such sales
or exchanges to the extent such amount does not exceed
the amount under section 1211(b)(1),
H. R. 3734—249
‘‘(ii) the net loss from estates and trusts,
‘‘(iii) the excess (if any) of amounts described in
subsection (i)(2)(C)(ii) over the amounts described in
subsection (i)(2)(C)(i) (relating to nonbusiness rents
and royalties), and
‘‘(iv) 50 percent of the net loss from the carrying
on of trades or businesses, computed separately with
respect to—
‘‘(I) trades or businesses (other than farming)
conducted as sole proprietorships,
‘‘(II) trades or businesses of farming conducted
as sole proprietorships, and
‘‘(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken into
account items which are attributable to a trade or business
which consists of the performance of services by the tax-
payer as an employee.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS.—In the case of any
individual who on or before June 26, 1996, has in effect an
earned income eligibility certificate for the individual’s taxable
year beginning in 1996, the amendments made by this section
shall apply to taxable years beginning after December 31, 1996.
SEC. 911. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC
ASSISTANCE PROGRAMS.
(a) IN GENERAL.—If an individual’s benefits under a Federal,
State, or local law relating to a means-tested welfare or a public
assistance program are reduced because of an act of fraud by
the individual under the law or program, the individual may not,
for the duration of the reduction, receive an increased benefit under
any other means-tested welfare or public assistance program for
which Federal funds are appropriated as a result of a decrease
in the income of the individual (determined under the applicable
program) attributable to such reduction.
(b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR WHICH
FEDERAL FUNDS ARE APPROPRIATED.—For purposes of subsection
(a), the term ‘‘means-tested welfare or public assistance program
for which Federal funds are appropriated’’ includes the food stamp
program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.), any program of public or assisted housing under title I of
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.),
and any State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
SEC. 912. ABSTINENCE EDUCATION.
Title V of the Social Security Act (42 U.S.C. 701 et seq.)
is amended by adding at the end the following section:
‘‘SEPARATE PROGRAM FOR ABSTINENCE EDUCATION
‘‘SEC. 510. (a) For the purpose described in subsection (b),
the Secretary shall, for fiscal year 1998 and each subsequent fiscal
year, allot to each State which has transmitted an application