I
104TH CONGRESS
2D SESSION
H. R. 3266
To restore the American family, enhance support and work opportunities
for families with children, reduce out-of-wedlock pregnancies, reduce wel-
fare dependence, and control welfare spending.
IN THE HOUSE OF REPRESENTATIVES
APRIL 17, 1996
Mr. TANNER (for himself, Mr. CASTLE, Mrs. LINCOLN, Mr. SHAYS, Mr.
STENHOLM, Mrs. MORELLA, Mr. PAYNE of Virginia, Mrs. JOHNSON of
Connecticut, Mr. ORTON, Mr. CAMPBELL, Mr. MINGE, Mr. HOUGHTON,
Mr. BROWDER, Mr. FOX of Pennsylvania, Mr. CRAMER, Mr. BOEHLERT,
Mr. BAESLER, Mr. RAMSTAD, Mr. HOLDEN, Mr. FRELINGHUYSEN, Mr.
LIPINSKI, Mr. HORN, Mr. ROSE, Mr. FAWELL, Mrs. THURMAN, Mr.
LAZIO of New York, Mr. ROEMER, Mr. KOLBE, Mr. CLEMENT, and Mr.
GORDON) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Agri-
culture, Banking and Financial Services, Commerce, Economic and Edu-
cational Opportunities, Government Reform and Oversight, and the Judi-
ciary, 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 restore the American family, enhance support and work
opportunities for families with children, reduce out-of-
wedlock pregnancies, reduce welfare dependence, and
control welfare spending.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Bipartisan Welfare Re-
form Act of 1996’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private organizations.
Sec. 105. Census data on grandparents as primary caregivers for their grand-
children.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related
provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social security card
required.
Sec. 112. Disclosure of receipt of Federal funds.
Sec. 113. Modifications to the job opportunities for certain low-income individ-
uals program.
Sec. 114. Secretarial submission of legislative proposal for technical and con-
forming amendments.
Sec. 115. Effective date; transition rule.
TITLE II—SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A—Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to have
fraudulently misrepresented residence in order to obtain bene-
fits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole
violators.
Sec. 203. Verification of eligibility for certain SSI disability benefits.
Sec. 204. Denial of supplemental security income benefits by reason of disabil-
ity to drug addicts and alcoholics.
Subtitle B—Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized individuals
whose medical costs are covered by private insurance.
Subtitle C—State Supplementation Programs
Sec. 221. Repeal of maintenance of effort requirements applicable to optional
State programs for supplementation of SSI benefits.
Subtitle D—Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study of disability determination process.
Sec. 233. Study by General Accounting Office.
Subtitle E—National Commission on the Future of Disability
Sec. 241. Establishment.
Sec. 242. Duties of the Commission.
Sec. 243. Membership.
Sec. 244. Staff and support services.
Sec. 245. Powers of Commission.
Sec. 246. Reports.
Sec. 247. Termination.
Sec. 248. Authorization of appropriations.
TITLE III—CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A—Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification and hearings.
Subtitle B—Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in child support
enforcement.
Subtitle C—Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D—Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of temporary family as-
sistance.
Subtitle E—Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F—Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to child
support.
Sec. 353. Nonliability for financial institutions providing financial records to
State child support enforcement agencies in child support
cases.
Subtitle G—Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International child support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of
a child.
Subtitle H—Medical Support
Sec. 376. Correction to ERISA definition of medical child support order.
Sec. 377. Enforcement of orders for health care coverage.
Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential
Parents
Sec. 381. Grants to States for access and visitation programs.
Subtitle J—Effect of Enactment
Sec. 391. Effective dates.
TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR
ALIENS
Sec. 400. Statements of national policy concerning welfare and immigration.
Subtitle A—Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 402. Limited eligibility of certain qualified aliens for certain Federal pro-
grams.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-test-
ed public benefit.
Sec. 404. Notification and information reporting.
Subtitle B—Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for
State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for State public
benefits.
Subtitle C—Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor’s income and resources to alien for
purposes of medicaid eligibility.
Sec. 422. Authority for States to provide for attribution of sponsor’s income
and resources to the alien with respect to State programs.
Sec. 423. Requirements for sponsor’s affidavit of support.
Sec. 424. Cosignature of alien student loans.
Subtitle D—General Provisions
Sec. 431. Definitions.
Sec. 432. Reapplication for SSI benefits.
Sec. 433. Verification of eligibility for Federal public benefits.
Sec. 434. Statutory construction.
Sec. 435. Communication between State and local government agencies and the
Immigration and Naturalization Service.
Sec. 436. Qualifying quarters.
Sec. 437. Title inapplicable to programs specified by Attorney General.
Sec. 438. Title inapplicable to programs of nonprofit charitable organizations.
Subtitle E—Conforming Amendments
Sec. 441. Conforming amendments relating to assisted housing.
TITLE V—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS
Sec. 501. Reductions.
Sec. 502. Reductions in Federal bureaucracy.
Sec. 503. Reducing personnel in Washington, D.C. area.
TITLE VI—REFORM OF PUBLIC HOUSING
Sec. 601. Failure to comply with other welfare and public assistance programs.
Sec. 602. Fraud under means-tested welfare and public assistance programs.
Sec. 603. Effective date.
TITLE VII—CHILD CARE
Sec. 701. Short title and references.
Sec. 702. Goals.
Sec. 703. Authorization of appropriations.
Sec. 704. Lead agency.
Sec. 705. Application and plan.
Sec. 706. Limitation on State allotments.
Sec. 707. Activities to improve the quality of child care.
Sec. 708. Repeal of early childhood development and before- and after-school
care requirement.
Sec. 709. Administration and enforcement.
Sec. 710. Payments.
Sec. 711. Annual report and audits.
Sec. 712. Report by the Secretary.
Sec. 713. Allotments.
Sec. 714. Definitions.
Sec. 715. Repeals.
TITLE VIII—CHILD NUTRITION PROGRAMS
Subtitle A—National School Lunch Act
Sec. 801. Value of food assistance.
Sec. 802. Commodity assistance.
Sec. 803. State disbursement to schools.
Sec. 804. Nutritional and other program requirements.
Sec. 805. Free and reduced price policy statement.
Sec. 806. Special assistance.
Sec. 807. Miscellaneous provisions and definitions.
Sec. 808. Summer food service program for children.
Sec. 809. Commodity distribution.
Sec. 810. Child care food program.
Sec. 811. Pilot projects.
Sec. 812. Reduction of paperwork.
Sec. 813. Information on income eligibility.
Sec. 814. Nutrition guidance for child nutrition programs.
Sec. 815. Information clearinghouse.
Subtitle B—Child Nutrition Act of 1966
Sec. 821. Special milk program.
Sec. 822. Reimbursement rates for free and reduced price breakfasts.
Sec. 823. Free and reduced price policy statement.
Sec. 824. School breakfast program authorization.
Sec. 825. State administrative expenses.
Sec. 826. Regulations.
Sec. 827. Prohibitions.
Sec. 828. Miscellaneous provisions and definitions.
Sec. 829. Accounts and records.
Sec. 830. Special supplemental nutrition program for women, infants, and chil-
dren.
Sec. 831. Cash grants for nutrition education.
Sec. 832. Nutrition education and training.
Sec. 833. Breastfeeding promotion program.
TITLE IX—FOOD STAMP AND RELATED PROGRAMS
Sec. 901. Definition of certification period.
Sec. 902. Expanded definition of ‘‘coupon’’.
Sec. 903. Treatment of children living at home.
Sec. 904. Adjustment of thrifty food plan.
Sec. 905. Definition of homeless individual.
Sec. 906. Energy assistance.
Sec. 907. Deductions from income.
Sec. 908. Vehicle allowance.
Sec. 909. Vendor payments for transitional housing counted as income.
Sec. 910. Increased penalties for violating food stamp program requirements.
Sec. 911. Disqualification of convicted individuals.
Sec. 912. Disqualification.
Sec. 913. Caretaker exemption.
Sec. 914. Employment and training.
Sec. 915. Comparable treatment for disqualification.
Sec. 916. Disqualification for receipt of multiple food stamp benefits.
Sec. 917. Disqualification of fleeing felons.
Sec. 918. Cooperation with child support agencies.
Sec. 919. Disqualification relating to child support arrears.
Sec. 920. Work requirement for able-bodied recipients.
Sec. 921. Encourage electronic benefit transfer systems.
Sec. 922. Value of minimum allotment.
Sec. 923. Benefits on recertification.
Sec. 924. Optional combined allotment for expedited households.
Sec. 925. Failure to comply with other means-tested public assistance pro-
grams.
Sec. 926. Allotments for households residing in centers.
Sec. 927. Authority to establish authorization periods.
Sec. 928. Specific period for prohibiting participation of stores based on lack
of business integrity.
Sec. 929. Information for verifying eligibility for authorization.
Sec. 930. Waiting period for stores that initially fail to meet authorization cri-
teria.
Sec. 931. Operation of food stamp offices.
Sec. 932. Mandatory claims collection methods.
Sec. 933. Exchange of law enforcement information.
Sec. 934. Expedited coupon service.
Sec. 935.
Withdrawing fair hearing requests.
Sec. 936. Income, eligibility, and immigration status verification systems.
Sec. 937. Bases for suspensions and disqualifications.
Sec. 938. Authority to suspend stores violating program requirements pending
administrative and judicial review.
Sec. 939. Disqualification of retailers who are disqualified from the WIC pro-
gram.
Sec. 940. Permanent debarment of retailers who intentionally submit falsified
applications.
Sec. 941. Expanded civil and criminal forfeiture for violations of the food
stamp act.
Sec. 942. Expanded authority for sharing information provided by retailers.
Sec. 943. Limitation of Federal match.
Sec. 944. Collection of overissuances.
Sec. 945. Standards for administration.
Sec. 946. Response to waivers.
Sec. 947. Authorization of appropriations.
Sec. 948. Authorize States to operate simplified food stamp programs.
Sec. 949. Emergency food assistance program.
Sec. 950. Food bank demonstration project.
Sec. 951. Report on entitlement commodity processing.
TITLE X—MISCELLANEOUS
Subtitle A—General Provisions
Sec. 1001. Expenditure of Federal funds in accordance with laws and proce-
dures applicable to expenditure of State funds.
Sec. 1002. Elimination of housing assistance with respect to fugitive felons and
probation and parole violators.
Sec. 1003. Sense of the Senate regarding enterprise zones.
Sec. 1004. Sense of the Senate regarding the inability of the non-custodial par-
ent to pay child support.
Sec. 1005. Food stamp eligibility.
Sec. 1006. Establishing national goals to prevent teenage pregnancies.
Sec. 1007. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 1008. Sanctioning for testing positive for controlled substances.
Sec. 1009. Abstinence education.
Sec. 1010. Provisions to encourage electronic benefit transfer systems.
Sec. 1011. Reduction in block grants to States for social services.
Sec. 1012. Efficient use of Federal transportation funds.
TITLE I—BLOCK GRANTS FOR
TEMPORARY 
ASSISTANCE
FOR NEEDY FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful
society.
(2) Marriage is an essential institution of a suc-
cessful society which promotes the interests of chil-
dren.
(3) Promotion of responsible fatherhood and
motherhood is integral to successful child rearing
and the well-being of children.
(4) In 1992, only 54 percent of single-parent
families with children had a child support order es-
tablished and, of that 54 percent, only about one-
half received the full amount due. Of the cases en-
forced through the public child support enforcement
system, only 18 percent of the caseload has a collec-
tion.
(5) The number of individuals receiving aid to
families with dependent children (in this section re-
ferred to as ‘‘AFDC’’) has more than tripled since
1965. More than two-thirds of these recipients are
children. Eighty-nine percent of children receiving
AFDC benefits now live in homes in which no father
is present.
(A)(i) The average monthly number of
children receiving AFDC benefits—
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving
AFDC benefits increased nearly threefold be-
tween 1965 and 1992, the total number of chil-
dren in the United States aged 0 to 18 has de-
clined by 5.5 percent.
(B) The Department of Health and
Human Services has estimated that 12,000,000
children will receive AFDC benefits within 10
years.
(C) The increase in the number of children
receiving public assistance is closely related to
the increase in births to unmarried women. Be-
tween 1970 and 1991, the percentage of live
births to unmarried women increased nearly
threefold, from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies
and births is well documented as follows:
(A) It is estimated that the rate of non-
marital teen pregnancy rose 23 percent from 54
pregnancies per 1,000 unmarried teenagers in
1976 to 66.7 pregnancies in 1991. The overall
rate of nonmarital pregnancy rose 14 percent
from 90.8 pregnancies per 1,000 unmarried
women in 1980 to 103 in both 1991 and 1992.
In contrast, the overall pregnancy rate for mar-
ried couples decreased 7.3 percent between
1980 and 1991, from 126.9 pregnancies per
1,000 married women in 1980 to 117.6 preg-
nancies in 1991.
(B) The total of all out-of-wedlock births
between 1970 and 1991 has risen from 10.7
percent to 29.5 percent and if the current trend
continues, 50 percent of all births by the year
2015 will be out-of-wedlock.
(7) The negative consequences of an out-of-wed-
lock birth on the mother, the child, the family, and
society are well documented as follows:
(A) Young women 17 and under who give
birth outside of marriage are more likely to go
on public assistance and to spend more years
on welfare once enrolled. These combined ef-
fects of ‘‘younger and longer’’ increase total
AFDC costs per household by 25 percent to 30
percent for 17-year olds.
(B) Children born out-of-wedlock have a
substantially higher risk of being born at a very
low or moderately low birth weight.
(C) Children born out-of-wedlock are more
likely to experience low verbal cognitive attain-
ment, as well as more child abuse, and neglect.
(D) Children born out-of-wedlock were
more likely to have lower cognitive scores, lower
educational aspirations, and a greater likelihood
of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly
reduces the chances of the child growing up to
have an intact marriage.
(F) Children born out-of-wedlock are 3
times more likely to be on welfare when they
grow up.
(8) Currently 35 percent of children in single-
parent homes were born out-of-wedlock, nearly the
same percentage as that of children in single-parent
homes whose parents are divorced (37 percent).
While many parents find themselves, through divorce
or tragic circumstances beyond their control, facing
the difficult task of raising children alone, neverthe-
less, the negative consequences of raising children in
single-parent homes are well documented as follows:
(A) Only 9 percent of married-couple fami-
lies with children under 18 years of age have
income below the national poverty level. In con-
trast, 46 percent of female-headed households
with children under 18 years of age are below
the national poverty level.
(B) Among single-parent families, nearly
1⁄2 of the mothers who never married received
AFDC while only 1⁄5 of divorced mothers re-
ceived AFDC.
(C) Children born into families receiving
welfare assistance are 3 times more likely to be
on welfare when they reach adulthood than chil-
dren not born into families receiving welfare.
(D) Mothers under 20 years of age are at
the greatest risk of bearing low-birth-weight ba-
bies.
(E) The younger the single parent mother,
the less likely she is to finish high school.
(F) Young women who have children be-
fore finishing high school are more likely to re-
ceive welfare assistance for a longer period of
time.
(G) Between 1985 and 1990, the public
cost of births to teenage mothers under the aid
to families with dependent children program,
the food stamp program, and the medicaid pro-
gram has been estimated at $120,000,000,000.
(H) The absence of a father in the life of
a child has a negative effect on school perform-
ance and peer adjustment.
(I) Children of teenage single parents have
lower cognitive scores, lower educational aspira-
tions, and a greater likelihood of becoming teen-
age parents themselves.
(J) Children of single-parent homes are 3
times more likely to fail and repeat a year in
grade school than are children from intact 2-
parent families.
(K) Children from single-parent homes are
almost 4 times more likely to be expelled or sus-
pended from school.
(L) Neighborhoods with larger percentages
of youth aged 12 through 20 and areas with
higher percentages of single-parent households
have higher rates of violent crime.
(M) Of those youth held for criminal of-
fenses within the State juvenile justice system,
only 29.8 percent lived primarily in a home with
both parents. In contrast to these incarcerated
youth, 73.9 percent of the 62,800,000 children
in the Nation’s resident population were living
with both parents.
(9) Therefore, in light of this demonstration of
the crisis in our Nation, it is the sense of the Con-
gress that prevention of out-of-wedlock pregnancy
and reduction in out-of-wedlock birth are very im-
portant Government interests and the policy con-
tained in part A of title IV of the Social Security
Act (as amended by section 103 of this Act) is in-
tended to address the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this title an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
SEC. 103. BLOCK GRANTS TO STATES.
Part A of title IV (42 U.S.C. 601 et seq.) is amended
to read as follows:
‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘SEC. 401. PURPOSE.
‘‘(a) IN GENERAL.—The purpose of this part is to
increase the flexibility of States in operating a program
designed to—
‘‘(1) provide assistance to needy families so that
children may be cared for in their own homes or in
the homes of relatives;
‘‘(2) end the dependence of needy parents on
government benefits by promoting job preparation,
work, and marriage;
‘‘(3) prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; and
‘‘(4) encourage the formation and maintenance
of two-parent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part
shall not be interpreted to entitle any individual or family
to assistance under any State program funded under this
part.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that, during the 2-year period immediately preceding the
fiscal year, has submitted to the Secretary a plan that
meets the requirements of subsection (b) and has been ap-
proved by the Secretary with respect to the fiscal year.
‘‘(b) CONTENTS OF STATE PLANS.—A plan meets
the requirements of this subsection if the plan includes
the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—
‘‘(A) GENERAL
PROVISIONS.—A written
document that outlines how the State will do
the following:
‘‘(i) Conduct a program, designed to
serve all political subdivisions in the State,
that provides assistance to needy families
with (or expecting) children and provides
parents with job preparation, work, and
support services to enable them to leave
the program and become self-sufficient.
‘‘(ii) Determine, on an objective and
equitable basis, the needs of and the
amount of assistance to be provided to
needy families, and treat families of similar
needs and circumstances similarly, subject
to subparagraph (B).
‘‘(iii) Require a parent or caretaker
receiving assistance under the program to
engage in work (as defined by the State)
once the State determines the parent or
caretaker is ready to engage in work, or
once the parent or caretaker has received
assistance under the program for 24
months (whether or not consecutive),
whichever is earlier.
‘‘(iv) Ensure that parents and care-
takers receiving assistance under the pro-
gram engage in work activities in accord-
ance with section 407.
‘‘(v) Grant an opportunity for a fair
hearing before the State agency to any in-
dividual to whom assistance under the pro-
gram is denied, reduced, or terminated, or
whose request for such assistance is not
acted on with reasonable promptness.
‘‘(vi) Take such reasonable steps as
the State deems necessary to restrict the
use and disclosure of information about in-
dividuals and families receiving assistance
under the program attributable to funds
provided by the Federal Government.
‘‘(vii) Establish goals and take action
to prevent and reduce the incidence of out-
of-wedlock pregnancies, with special em-
phasis on teenage pregnancies, and estab-
lish numerical goals for reducing the ille-
gitimacy ratio of the State (as defined in
section 403(a)(2)(B)) for calendar years
1996 through 2005.
‘‘(B) SPECIAL PROVISIONS.—
‘‘(i) The plan shall indicate whether
the State intends to treat families moving
into the State from another State dif-
ferently than other families under the pro-
gram, and if so, how the State intends to
treat such families under the program.
‘‘(ii) The plan shall indicate whether
the State intends to provide assistance
under the program to individuals who are
not citizens of the United States, and if so,
shall include an overview of such assist-
ance.
‘‘(2) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
SUPPORT
ENFORCEMENT
PRO-
GRAM.—The plan shall include a certification by the
chief executive officer of the State that, during the
fiscal year, the State will operate a child support en-
forcement program under the State plan approved
under part D.
‘‘(3) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
PROTECTION
PROGRAM.—The
plan shall include a certification by the chief execu-
tive officer of the State that, during the fiscal year,
the State will operate a child protection program
under the State plan approved under part B.
‘‘(4) CERTIFICATION OF THE ADMINISTRATION
OF THE PROGRAM.—The plan shall include a certifi-
cation by the chief executive officer of the State
specifying which State agency or agencies will ad-
minister and supervise the program referred to in
paragraph (1) for the fiscal year, which shall include
assurances that local governments and private sector
organizations—
‘‘(A) have been working jointly with the
State in all phases of the plan and design of
welfare services in the State so that services are
provided in a manner appropriate to local popu-
lations;
‘‘(B) have had at least 60 days to submit
comments on the final plan and the design of
such services; and
‘‘(C) will not have unfunded mandates im-
posed on them under such plan.
Such certification shall also include assurance that
when local elected officials are currently responsible
for the administration of welfare services, the local
elected officials will be able to plan, design, and ad-
minister for their jurisdictions the programs estab-
lished pursuant to this Act.
‘‘(5) CERTIFICATION
THAT
THE
STATE
WILL
PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS-
SISTANCE.—The plan shall include a certification by
the chief executive officer of the State that, during
the fiscal year, the State will provide each Indian
who is a member of an Indian tribe in the State that
does not have a tribal family assistance plan ap-
proved under section 412 with equitable access to
assistance under the State program funded under
this part attributable to funds provided by the Fed-
eral Government.
‘‘(6) CERTIFICATION
OF
NONDISPLACEMENT
AND NONREPLACEMENT OF EMPLOYEES.—The plan
shall include a certification that the implementation
of the plan will not result in—
‘‘(A) the displacement of a currently em-
ployed worker or position by an individual to
whom assistance is provided under the State
program funded under this part;
‘‘(B) the replacement of an employee who
has been terminated with an individual to whom
assistance is provided under the State program
funded under this part; or
‘‘(C) the replacement of an employee who
is on layoff from the same position filled by an
individual to whom assistance is provided under
the State program funded under this part or
any equivalent position.
‘‘(c) APPROVAL OF STATE PLANS.—The Secretary
shall approve any State plan that meets the requirements
of subsection (b) if the Secretary determines that operat-
ing a State program pursuant to the plan will contribute
to achieving the purposes of this part.
‘‘(d) PUBLIC AVAILABILITY OF STATE PLAN SUM-
MARY.—The State shall make available to the public a
summary of any plan submitted by the State under this
section.
‘‘SEC. 403. GRANTS TO STATES.
‘‘(a) GRANTS.—
‘‘(1) FAMILY ASSISTANCE GRANT.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary,
for each of fiscal years 1996, 1997, 1998,
1999, 2000, and 2001 a grant in an amount
equal to the State family assistance grant.
‘‘(B) STATE
FAMILY
ASSISTANCE
GRANT
DEFINED.—As used in this part, the term
‘State family assistance grant’ means the great-
est of—
‘‘(i) 1⁄3 of the total amount required
to be paid to the State under former sec-
tion 403 (as in effect on September 30,
1995) for fiscal years 1992, 1993, and
1994 (other than with respect to amounts
expended by the State for child care under
subsection (g) or (i) of former section 402
(as so in effect));
‘‘(ii)(I) the total amount required to
be paid to the State under former section
403 for fiscal year 1994 (other than with
respect to amounts expended by the State
for child care under subsection (g) or (i) of
former section 402 (as so in effect)); plus
‘‘(II) an amount equal to 85 percent
of the amount (if any) by which the total
amount required to be paid to the State
under former section 403(a)(5) for emer-
gency assistance for fiscal year 1995 ex-
ceeds the total amount required to be paid
to 
the 
State 
under 
former 
section
403(a)(5) for fiscal year 1994, if, during
fiscal year 1994, the Secretary approved
under former section 402 an amendment
to the former State plan with respect to
the provision of emergency assistance in
the context of family preservation; or
‘‘(iii) 3⁄4 of the total amount required
to be paid to the State under former sec-
tion 403 (as in effect on September 30,
1995) for the 1st 3 quarters of fiscal year
1995 (other than with respect to amounts
expended by the State under the State
plan approved under part F (as so in ef-
fect) or for child care under subsection (g)
or (i) of former section 402 (as so in ef-
fect)), plus the total amount required to be
paid to the State for fiscal year 1995
under former section 403(l) (as so in ef-
fect).
‘‘(C) TOTAL
AMOUNT
REQUIRED
TO
BE
PAID TO THE STATE UNDER FORMER SECTION
403 DEFINED.—As used in this part, the term
‘total amount required to be paid to the State
under former section 403’ means, with respect
to a fiscal year—
‘‘(i) in the case of a State to which
section 1108 does not apply, the sum of—
‘‘(I) the Federal share of mainte-
nance assistance expenditures for the
fiscal year, before reduction pursuant
to subparagraph (B) or (C) of section
403(b)(2) (as in effect on September
30, 1995), as reported by the State on
ACF Form 231;
‘‘(II) the Federal share of admin-
istrative expenditures (including ad-
ministrative expenditures for the de-
velopment of management information
systems) for the fiscal year, as re-
ported by the State on ACF Form
231;
‘‘(III) the Federal share of emer-
gency assistance expenditures for the
fiscal year, as reported by the State
on ACF Form 231;
‘‘(IV) the Federal share of ex-
penditures for the fiscal year with re-
spect to child care pursuant to sub-
sections (g) and (i) of former section
402 (as in effect on September 30,
1995), as reported by the State on
ACF Form 231; and
‘‘(V) the aggregate amount re-
quired to be paid to the State for the
fiscal year with respect to the State
program operated under part F (as in
effect on September 30, 1995), as de-
termined by the Secretary, including
additional obligations or reductions in
obligations made after the close of the
fiscal year; and
‘‘(ii) in the case of a State to which
section 1108 applies, the lesser of—
‘‘(I) the sum described in clause
(i); or
‘‘(II) the total amount certified
by the Secretary under former section
403 (as in effect during the fiscal
year) with respect to the territory.
‘‘(D) INFORMATION TO BE USED IN DE-
TERMINING AMOUNTS.—
‘‘(i) FOR
FISCAL
YEARS
1992
AND
1993.—
‘‘(I) In determining the amount
described in subclauses (I) through
(IV) of subparagraph (C)(i) for any
State for each of fiscal years 1992
and 1993, the Secretary shall use in-
formation available as of April 28,
1995.
‘‘(II) In determining the amount
described in subparagraph (C)(i)(V)
for any State for each of fiscal years
1992 and 1993, the Secretary shall
use information available as of Janu-
ary 6, 1995.
‘‘(ii) FOR FISCAL YEAR 1994.—In de-
termining the amounts described in sub-
paragraph (C)(i) for any State for fiscal
year 1994, the Secretary shall use informa-
tion available as of April 28, 1995.
‘‘(iii) FOR FISCAL YEAR 1995.—
‘‘(I) In determining the amount
described in subparagraph (B)(ii)(II)
for any State for fiscal year 1995, the
Secretary shall use the information
which was reported by the States and
estimates made by the States with re-
spect to emergency assistance expend-
itures and was available as of August
11, 1995.
‘‘(II) In determining the amounts
described in subclauses (I) through
(IV) of subparagraph (C)(i) for any
State for fiscal year 1995, the Sec-
retary shall use information available
as of October 2, 1995.
‘‘(III) In determining the amount
described in subparagraph (C)(i)(V)
for any State for fiscal year 1995, the
Secretary shall use information avail-
able as of October 5, 1995.
‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1996, 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for grants
under this paragraph.
‘‘(2) GRANT TO REWARD STATES THAT REDUCE
OUT-OF-WEDLOCK BIRTHS.—
‘‘(A) IN
GENERAL.—In addition to any
grant under paragraph (1), each eligible State
shall be entitled to receive from the Secretary
for fiscal year 1998 or any succeeding fiscal
year, a grant in an amount equal to the State
family assistance grant multiplied by—
‘‘(i) 5 percent if—
‘‘(I) the illegitimacy ratio of the
State for the fiscal year is at least 1
percentage point lower than the ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations in the State for
the fiscal year is less than the rate of
induced pregnancy terminations in the
State for fiscal year 1995; or
‘‘(ii) 10 percent if—
‘‘(I) the illegitimacy ratio of the
State for the fiscal year is at least 2
percentage points lower than the ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations in the State for
the fiscal year is less than the rate of
induced pregnancy terminations in the
State for fiscal year 1995.
‘‘(B) ILLEGITIMACY
RATIO.—As used in
this paragraph, the term ‘illegitimacy ratio’
means, with respect to a State and a fiscal
year—
‘‘(i) the number of out-of-wedlock
births that occurred in the State during
the most recent fiscal year for which such
information is available; divided by
‘‘(ii) the number of births that oc-
curred in the State during the most recent
fiscal year for which such information is
available.
‘‘(C) DISREGARD
OF
CHANGES
IN
DATA
DUE TO CHANGED REPORTING METHODS.—For
purposes of subparagraph (A), the Secretary
shall disregard—
‘‘(i) any difference between the illegit-
imacy ratio of a State for a fiscal year and
the illegitimacy ratio of the State for fiscal
year 1995 which is attributable to a
change in State methods of reporting data
used to calculate the illegitimacy ratio; and
‘‘(ii) any difference between the rate
of induced pregnancy terminations in a
State for a fiscal year and such rate for
fiscal year 1995 which is attributable to a
change in State methods of reporting data
used to calculate such rate.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal year 1998 and for each succeeding fiscal
year such sums as are necessary for grants
under this paragraph.
‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION
INCREASES IN CERTAIN STATES.—
‘‘(A) IN GENERAL.—Each qualifying State
shall, subject to subparagraph (F), be entitled
to receive from the Secretary—
‘‘(i) for fiscal year 1997 a grant in an
amount equal to 2.5 percent of the total
amount required to be paid to the State
under former section 403 (as in effect dur-
ing fiscal year 1994) for fiscal year 1994;
and
‘‘(ii) for each of fiscal years 1998,
1999, and 2000, a grant in an amount
equal to the sum of—
‘‘(I) the amount (if any) required
to be paid to the State under this
paragraph for the immediately preced-
ing fiscal year; and
‘‘(II) 2.5 percent of the sum of—
‘‘(aa) the total amount re-
quired to be paid to the State
under former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; and
‘‘(bb) the amount (if any)
required to be paid to the State
under this paragraph for the fis-
cal year preceding the fiscal year
for which the grant is to be
made.
‘‘(B) PRESERVATION OF GRANT WITHOUT
INCREASES
FOR
STATES
FAILING
TO
REMAIN
QUALIFYING STATES.—Each State that is not a
qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to subpara-
graph (F), be entitled to receive from the Sec-
retary for the specified fiscal year, a grant in
an amount equal to the amount required to be
paid to the State under this paragraph for the
most recent fiscal year for which the State was
a qualifying State.
‘‘(C) QUALIFYING STATE.—
‘‘(i) IN
GENERAL.—For purposes of
this paragraph, a State is a qualifying
State for a fiscal year if—
‘‘(I) the level of welfare spending
per poor person by the State for the
immediately preceding fiscal year is
less than the national average level of
State welfare spending per poor per-
son for such preceding fiscal year; and
‘‘(II) the population growth rate
of the State (as determined by the
Bureau of the Census for the most re-
cent fiscal year for which information
is available) exceeds the average popu-
lation growth rate for all States (as so
determined) for such most recent fis-
cal year.
‘‘(ii) STATE MUST QUALIFY IN FISCAL
YEAR 1997.—Notwithstanding clause (i), a
State shall not be a qualifying State for
any fiscal year after 1997 by reason of
clause (i) if the State is not a qualifying
State for fiscal year 1997 by reason of
clause (i).
‘‘(iii) 
CERTAIN
STATES
DEEMED
QUALIFYING
STATES.—For purposes of
this paragraph, a State is deemed to be a
qualifying State for fiscal years 1997,
1998, 1999, and 2000 if—
‘‘(I) the level of welfare spending
per poor person by the State for fiscal
year 1996 is less than 35 percent of
the national average level of State
welfare spending per poor person for
fiscal year 1996; or
‘‘(II) the population of the State
increased by more than 10 percent
from April 1, 1990, to July 1, 1994,
as determined by the Bureau of the
Census.
‘‘(D) DEFINITIONS.—As used in this para-
graph:
‘‘(i) LEVEL OF WELFARE SPENDING
PER
POOR
PERSON.—The term ‘level of
State welfare spending per poor person’
means, with respect to a State and a fiscal
year—
‘‘(I) the sum of—
‘‘(aa) the total amount re-
quired to be paid to the State
under former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; and
‘‘(bb) the amount (if any)
paid to the State under this
paragraph for the immediately
preceding fiscal year; divided by
‘‘(II) the number of individuals,
according to the 1990 decennial cen-
sus, who were residents of the State
and whose income was below the pov-
erty line.
‘‘(ii) NATIONAL AVERAGE LEVEL OF
STATE
WELFARE
SPENDING
PER
POOR
PERSON.—The term ‘national average level
of State welfare spending per poor person’
means, with respect to a fiscal year, an
amount equal to—
‘‘(I) the total amount required to
be paid to the States under former
section 403 (as in effect during fiscal
year 1994) for fiscal year 1994; di-
vided by
‘‘(II) the number of individuals,
according to the 1990 decennial cen-
sus, who were residents of any State
and whose income was below the pov-
erty line.
‘‘(iii) 
STATE.—The 
term 
‘State’
means each of the 50 States of the United
States and the District of Columbia.
‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1997, 1998, 1999, and 2000 such
sums as are necessary for grants under this
paragraph, in a total amount not to exceed
$800,000,000.
‘‘(F) GRANTS REDUCED PRO RATA IF IN-
SUFFICIENT APPROPRIATIONS.—If the amount
appropriated pursuant to this paragraph for a
fiscal year is less than the total amount of pay-
ments otherwise required to be made under this
paragraph for the fiscal year, then the amount
otherwise payable to any State for the fiscal
year under this paragraph shall be reduced by
a percentage equal to the amount so appro-
priated divided by such total amount.
‘‘(G) BUDGET SCORING.—Notwithstanding
section 257(b)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985, the
baseline shall assume that no grant shall be
made under this paragraph after fiscal year
2000.
‘‘(4) SUPPLEMENTAL GRANT FOR OPERATION
OF WORK PROGRAM.—
‘‘(A) APPLICATION
REQUIREMENTS.—An
eligible State may submit to the Secretary an
application for additional funds to meet the re-
quirements of section 407 with respect to a fis-
cal year if the Secretary determines that—
‘‘(i) the total expenditures of the
State to meet such requirements for the
fiscal year exceed the total expenditures of
the State during fiscal year 1994 to carry
out part F (as in effect on September 30,
1994);
‘‘(ii) the work programs of the State
under section 407 are coordinated with the
job training programs established by title
II of the Job Training Partnership Act, or
(if such title is repealed by the Consoli-
dated and Reformed Education, Employ-
ment, and Rehabilitation Systems Act) the
Consolidated and Reformed Education,
Employment, and Rehabilitation Systems
Act; and
‘‘(iii) the State needs additional funds
to meet such requirements or certifies that
it intends to exceed such requirements.
‘‘(B) GRANTS.—The Secretary may make
a grant to any eligible State which submits an
application in accordance with subparagraph
(A) of this paragraph for a fiscal year in an
amount equal to the Federal medical assistance
percentage of the amount (if any) by which the
total expenditures of the State to meet or ex-
ceed the requirements of section 407 for the fis-
cal year exceeds the total expenditures of the
State during fiscal year 1994 to carry out part
F (as in effect on September 30, 1994).
‘‘(C) REGULATIONS.—The Secretary shall
issue regulations providing for the equitable dis-
tribution of funds under this paragraph.
‘‘(D) APPROPRIATIONS.—
‘‘(i) IN GENERAL.—Out of any money
in the Treasury of the United States not
otherwise appropriated, there are appro-
priated to the Secretary for grants under
this paragraph $3,000,000,000 for fiscal
year 1999.
‘‘(ii) AVAILABILITY.—Amounts appro-
priated pursuant to clause (i) shall remain
available until expended.
‘‘(b) CONTINGENCY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a fund
which shall be known as the ‘Contingency Fund for
State Welfare Programs’ (in this section referred to
as the ‘Fund’).
‘‘(2) DEPOSITS INTO FUND.—
‘‘(A) Out of any money in the Treasury of
the United States not otherwise appropriated,
there are appropriated for fiscal years 1997,
1998, 1999, 2000, 2001 and 2002 such sums
as are necessary for payment to the Fund in a
total amount not to exceed $2,000,000,000, ex-
cept as provided in subparagraphs (B) and (C).
‘‘(B) If—
‘‘(i) the average rate of total unem-
ployment in the United States for the most
recent 3 months for which data for all
States are available is not less than 7 per-
cent; and
‘‘(ii) there are insufficient amounts in
the Fund to pay all State claims under
paragraph (3) for a quarter in that fiscal
year;
then there are appropriated for that fiscal year,
in addition to amounts appropriated under
paragraph (2)(A), such sums as equal the dif-
ference between the amount needed to pay all
State claims for that quarter and the amount
remaining in the Fund.
‘‘(C) If—
‘‘(i)(I) the average rate of total unem-
ployment in a State (seasonally adjusted)
for the period consisting of the most recent
3 months for which data for all States are
published is not less than 9 percent;
‘‘(II) the average rate of total unem-
ployment in such State (seasonally ad-
justed) for the 3-month period is not less
than 120 percent of such average rate for
either 1994 or 1995; or
‘‘(III) the average number of persons
in the State receiving assistance under the
food stamp program, as defined in section
3(h) of the Food Stamp Act of 1977, for
the most recent 3-month period for which
data are available is not less than 110 per-
cent of such average monthly number for
fiscal year 1994 or for fiscal year 1995;
and
‘‘(ii) there are insufficient amounts in
the Fund to pay all State claims under
paragraph (3) for a quarter in that fiscal
year; then
there are appropriated for payment to the Fund
for that fiscal year, in addition to amounts ap-
propriated pursuant to paragraph (2)(A), for
payments to States described in this subpara-
graph, the amount by which payments to such
States under paragraph (3) would otherwise be
reduced under paragraph (6).
‘‘(3) GRANTS.—From amounts appropriated
pursuant to paragraph (2), the Secretary of the
Treasury shall pay to each eligible State for a fiscal
year an amount equal to the lesser of—
‘‘(A) the Federal medical assistance per-
centage for the State for the fiscal year (as de-
fined in section 1905(b), as in effect on Sep-
tember 30, 1995) of the amount, if any, by
which the expenditures of the State in the fiscal
year under the State program funded under
this part and expenditures on cash assistance
under other State programs with respect to eli-
gible 
families 
(as 
defined 
in 
section
409(a)(5)(B)(i)(III)) exceed historic State ex-
penditures 
(as 
defined 
in 
section
409(a)(5)(B)(iii)); or
‘‘(B) the number of percentage points (if
any) by which 40 percent of the State family
assistance grant for the fiscal year exceeds any
payment to the State for the fiscal year under
section 403(a)(3).
‘‘(4) ELIGIBLE STATE.—For purposes of this
subsection, a State is an eligible State for a fiscal
year, if—
‘‘(A)(i) the average rate of total unemploy-
ment in such State (seasonally adjusted) for the
period consisting of the most recent 3 months
for which data for all States are published is
not less than 6.5 percent; or
‘‘(ii) the average rate of total unemploy-
ment in such State (seasonally adjusted) for the
3-month period is not less than 110 percent of
such average rate for either 1994 or 1995; or
‘‘(B)(i) the average number of persons in
the State receiving assistance under the food
stamp program, as defined in section 3(h) of
the Food Stamp Act of 1977, for the most re-
cent 3-month period for which data are avail-
able is not less than 104 percent of the product
of—
‘‘(I) such average monthly number for
either fiscal year 1994 or fiscal year 1995;
and
‘‘(II) the number of percentage points
(if any) by which 100 percent exceeds the
percentage by which the Bipartisan Wel-
fare Reform Act of 1996, had it been in ef-
fect, would have reduced such average
monthly number in such State in such fis-
cal year, as most recently estimated by the
Congressional Budget Office before the
date of the enactment of such Act; and
‘‘(ii) the State is not participating in the
program established under section 23(b) of the
Food Stamp Act of 1977.
‘‘(5) STATE.—As used in this subsection, the
term ‘State’ means each of the 50 States of the
United States and the District of Columbia.
‘‘(6) PAYMENT
PRIORITY.—Claims by States
for payment from the Fund shall be filed quarterly.
If the total amount of claims for any quarter exceeds
the amount available for payment from the fund,
claims shall be paid on a pro rata basis in a manner
to be determined by the Secretary, except in the case
of a State described in paragraph (2)(C).
‘‘(7) ANNUAL REPORTS.—The Secretary of the
Treasury shall annually report to Congress on the
status of the Fund.
‘‘SEC. 404. USE OF GRANTS.
‘‘(a) GENERAL RULES.—Subject to this part, a State
to which a grant is made under section 403 may use the
grant—
‘‘(1) in any manner that is reasonably cal-
culated to accomplish the purpose of this part, in-
cluding to provide low income households with as-
sistance in meeting home heating and cooling costs;
or
‘‘(2) in any manner that the State was author-
ized to use amounts received under part A or F, as
such parts were in effect on September 30, 1995.
‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINIS-
TRATIVE PURPOSES.—
‘‘(1) LIMITATION.—A State to which a grant is
made under section 403 shall not expend more than
15 percent of the grant for administrative purposes.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to the use of a grant for information tech-
nology and computerization needed for tracking or
monitoring required by or under this part.
‘‘(c) AUTHORITY TO TREAT INTERSTATE IMMI-
GRANTS UNDER RULES OF FORMER STATE.—A State op-
erating a program funded under this part may apply to
a family the rules (including benefit amounts) of the pro-
gram funded under this part of another State if the family
has moved to the State from the other State and has re-
sided in the State for less than 12 months.
‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR
OTHER PURPOSES.—
‘‘(1) IN GENERAL.—A State may use not more
than 20 percent of the amount of the grant made to
the State under section 403 for a fiscal year to carry
out a State program pursuant to the Child Care and
Development Block Grant Act of 1990.
‘‘(2) APPLICABLE RULES.—Any amount paid to
the State under this part that is used to carry out
a State program pursuant to the Child Care and De-
velopment Block Grant Act of 1990 shall not be sub-
ject to the requirements of this part, but shall be
subject to the requirements that apply to Federal
funds provided directly under such Act to carry out
the program.
‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS
FOR ASSISTANCE.—A State may reserve amounts paid to
the State under this part for any fiscal year for the pur-
pose of providing, without fiscal year limitation, assistance
under the State program funded under this part.
‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACE-
MENT PROGRAM.—A State to which a grant is made under
section 403 may use the grant to make payments (or pro-
vide job placement vouchers) to State-approved public and
private job placement agencies that provide employment
placement services to individuals who receive assistance
under the State program funded under this part.
‘‘(g) IMPLEMENTATION
OF ELECTRONIC BENEFIT
TRANSFER SYSTEM.—A State to which a grant is made
under section 403 is encouraged to implement an elec-
tronic benefit transfer system for providing assistance
under the State program funded under this part, and may
use the grant for such purpose.
‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.
‘‘(a) QUARTERLY.—The Secretary shall pay each
grant payable to a State under section 403 in quarterly
installments.
‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi-
cation under subsection (c)(2) with respect to a State, the
Secretary of the Treasury shall, through the Fiscal Service
of the Department of the Treasury and before audit or
settlement by the General Accounting Office, pay to the
State, at the time or times fixed by the Secretary of
Health and Human Services, the amount so certified.
‘‘(e) COLLECTION
OF STATE OVERPAYMENTS
TO
FAMILIES FROM FEDERAL TAX REFUNDS.—
‘‘(1) IN GENERAL.—Upon receiving notice from
the Secretary of Health and Human Services that a
State agency administering a program funded under
this part has notified the Secretary that a named in-
dividual has been overpaid under the State program
funded under this part, the Secretary of the Treas-
ury shall determine whether any amounts as refunds
of Federal taxes paid are payable to such individual,
regardless of whether the individual filed a tax re-
turn as a married or unmarried individual. If the
Secretary of the Treasury finds that any such
amount is so payable, the Secretary shall withhold
from such refunds an amount equal to the overpay-
ment sought to be collected by the State and pay
such amount to the State agency.
‘‘(2) REGULATIONS.—The Secretary of the
Treasury shall issue regulations, after review by the
Secretary of Health and Human Services, that pro-
vide—
‘‘(A) that a State may only submit under
paragraph (1) requests for collection of over-
payments with respect to individuals—
‘‘(i) who are no longer receiving as-
sistance under the State program funded
under this part;
‘‘(ii) with respect to whom the State
has already taken appropriate action under
State law against the income or resources
of the individuals or families involved to
collect the past-due legally enforceable
debt; and
‘‘(iii) to whom the State agency has
given notice of its intent to request with-
holding by the Secretary of the Treasury
from the income tax refunds of such indi-
viduals;
‘‘(B) that the Secretary of the Treasury
will give a timely and appropriate notice to any
other person filing a joint return with the indi-
vidual whose refund is subject to withholding
under paragraph (1); and
‘‘(C) the procedures that the State and the
Secretary of the Treasury will follow in carrying
out this subsection which, to the maximum ex-
tent feasible and consistent with the provisions
of this subsection, will be the same as those is-
sued pursuant to section 464(b) applicable to
collection of past-due child support.
‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PRO-
GRAMS.
‘‘(a) LOAN AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary shall make
loans to any loan-eligible State, for a period to ma-
turity of not more than 3 years.
‘‘(2) LOAN-ELIGIBLE STATE.—As used in para-
graph (1), the term ‘loan-eligible State’ means a
State against which a penalty has not been imposed
under section 409(e).
‘‘(b) RATE
OF
INTEREST.—The Secretary shall
charge and collect interest on any loan made under this
section at a rate equal to the current average market yield
on outstanding marketable obligations of the United
States with remaining periods to maturity comparable to
the period to maturity of the loan.
‘‘(c) USE OF LOAN.—A State shall use a loan made
to the State under this section only for any purpose for
which grant amounts received by the State under section
403(a) may be used, including—
‘‘(1) welfare anti-fraud activities; and
‘‘(2) the provision of assistance under the State
program to Indian families that have moved from
the service area of an Indian tribe with a tribal fam-
ily assistance plan approved under section 412.
‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO
A STATE.—The cumulative dollar amount of all loans
made to a State under this section during fiscal years
1997 through 2001 shall not exceed 10 percent of the
State family assistance grant.
‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTAND-
ING LOANS.—The total dollar amount of loans outstand-
ing under this section may not exceed $1,700,000,000.
‘‘(f) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated such sums as may be necessary for
the cost of loans under this section.
‘‘SEC. 407. MANDATORY WORK REQUIREMENTS; INDIVID-
UAL RESPONSIBILITY PLANS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) ALL FAMILIES.—A State to which a grant
is made under section 403 for a fiscal year shall
achieve the minimum participation rate specified in
the following table for the fiscal year with respect to
all families receiving assistance under the State pro-
gram funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................
1997 ...............................................................
1998 ...............................................................
1999 ...............................................................
2000 ...............................................................
2001 ...............................................................
2002 or thereafter .........................................
50.
‘‘(2) 2-PARENT FAMILIES.—A State to which a
grant is made under section 403 for a fiscal year
shall achieve the minimum participation rate speci-
fied in the following table for the fiscal year with re-
spect to 2-parent families receiving assistance under
the State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................
1997 ...............................................................
1998 ...............................................................
1999 or thereafter .........................................
90.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) ALL FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (a)(1), the participation
rate for all families of a State for a fiscal year
is the average of the participation rates for all
families of the State for each month in the fis-
cal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—
The participation rate of a State for all families
of the State for a month, expressed as a per-
centage, is—
‘‘(i) the number of families receiving
assistance under the State program funded
under this part that include an adult who
is engaged in work for the month; divided
by
‘‘(ii) the amount by which—
‘‘(I) the number of families re-
ceiving such assistance during the
month that include an adult receiving
such assistance; exceeds
‘‘(II) the number of families re-
ceiving such assistance that are sub-
ject in such month to a penalty de-
scribed in subsection (e)(1) but have
not been subject to such penalty for
more than 3 months within the pre-
ceding 12-month period (whether or
not consecutive).
‘‘(C) SPECIAL RULE.—An individual shall
be considered to be engaged in work and to be
an adult recipient of assistance under a State
program funded under this part for purposes of
subparagraph (B) for the first 6 months
(whether or not consecutive) after the first ces-
sation of assistance to an individual under the
program during which the individual is em-
ployed for an average of more than 25 hours
per week in an unsubsidized job in the private
sector.
‘‘(2) 2-PARENT FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (a)(2), the participation
rate for 2-parent families of a State for a fiscal
year is the average of the participation rates for
2-parent families of the State for each month in
the fiscal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—
The participation rate of a State for 2-parent
families of the State for a month shall be cal-
culated by use of the formula set forth in para-
graph (1)(B), except that in the formula the
term ‘number of 2-parent families’ shall be sub-
stituted for the term ‘number of families’ each
place such latter term appears.
‘‘(3) PRO RATA REDUCTION OF PARTICIPATION
RATE
DUE
TO
CASELOAD
REDUCTIONS
NOT
RE-
QUIRED BY FEDERAL LAW.—
‘‘(A) IN
GENERAL.—The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this
section for a fiscal year by the number of per-
centage points equal to the number of percent-
age points (if any) by which—
‘‘(i) the number of families receiving
assistance during the fiscal year under the
State program funded under this part is
less than
‘‘(ii) the number of families that re-
ceived aid under the State plan approved
under part A (as in effect on September
30, 1995) during fiscal year 1995.
The minimum participation rate shall not be re-
duced to the extent that the Secretary deter-
mines that the reduction in the number of fami-
lies receiving such assistance is required by
Federal law.
‘‘(B) ELIGIBILITY CHANGES NOT COUNT-
ED.—The regulations described in subpara-
graph (A) shall not take into account families
that are diverted from a State program funded
under this part as a result of differences in eli-
gibility criteria under a State program funded
under this part and eligibility criteria under the
State program operated under the State plan
approved under part A (as such plan and such
part were in effect on September 30, 1995).
Such regulations shall place the burden on the
Secretary to prove that such families were di-
verted as a direct result of differences in such
eligibility criteria.
‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS
RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY
ASSISTANCE
PLAN.—For purposes of paragraphs
(1)(B) and (2)(B), a State may, at its option, in-
clude families receiving assistance under a tribal
family assistance plan approved under section 412.
‘‘(5) STATE
OPTION
FOR
PARTICIPATION
RE-
QUIREMENT EXEMPTIONS.—For any fiscal year, a
State may, at its option, not require an individual
who is a single custodial parent caring for a child
who has not attained 12 months of age to engage in
work and may disregard such an individual in deter-
mining the participation rates under subsection (a).
‘‘(c) ENGAGED IN WORK.—
‘‘(1) ALL
FAMILIES.—For purposes of sub-
section (b)(1)(B)(i), a recipient is engaged in work
for a month in a fiscal year if the recipient is par-
ticipating in such activities for at least the minimum
average number of hours per week specified in the
following table during the month, not fewer than 20
hours per week of which are attributable to an activ-
ity described in paragraph (1), (2), (3), (4), (5), (7),
or (8) of subsection (d) (or, if the participation of
the recipient in an activity described in subsection
(d)(6) has been taken into account for purposes of
paragraph (1) or (2) of subsection (b) for fewer than
4 weeks in the fiscal year, an activity described in
subsection (d)(6)):
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1996 ...............................................................
1997 ...............................................................
1998 ...............................................................
1999 or thereafter .........................................
25.
‘‘(2) 2-PARENT
FAMILIES.—For purposes of
subsection (b)(2)(B)(i), an adult is engaged in work
for a month in a fiscal year if the adult is making
progress in such activities for at least 25 hours per
week during the month, not fewer than 20 hours per
week of which are attributable to an activity de-
scribed in paragraph (1), (2), (3), (4), (5), (7), or
(8) of subsection (d) (or, if the participation of the
recipient in an activity described in subsection (d)(6)
has been taken into account for purposes of para-
graph (1) or (2) of subsection (b) for fewer than 4
weeks in the fiscal year, an activity described in sub-
section (d)(6)).
‘‘(3) LIMITATION ON VOCATIONAL EDUCATION
ACTIVITIES COUNTED AS WORK.—For purposes of
determining monthly participation rates under para-
graphs (1)(B)(i) and (2)(B)(i) of subsection (b), not
more than 20 percent of adults in all families and
in 2-parent families determined to be engaged in
work in the State for a month may meet the work
activity requirement through participation in voca-
tional educational training.
‘‘(4) OPTION TO REDUCE NUMBER OF HOURS
OF WORK REQUIRED OF SINGLE PARENTS WITH A
CHILD UNDER AGE 6.—Notwithstanding paragraph
(1), a State may reduce to 20 the number of hours
per week during which a single custodial parent is
required pursuant to this section to engage in work
activities if the family of the parent includes an indi-
vidual who has not attained 6 years of age.
‘‘(d) WORK ACTIVITIES DEFINED.—As used in this
section, the term ‘work activities’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) work experience (including work associated
with the refurbishing of publicly assisted housing) if
sufficient private sector employment is not available;
‘‘(5) on-the-job training;
‘‘(6) job search and job readiness assistance;
‘‘(7) community service programs;
‘‘(8) vocational educational training (not to ex-
ceed 12 months with respect to any individual);
‘‘(9) job skills training directly related to em-
ployment;
‘‘(10) education directly related to employment,
in the case of a recipient who has not attained 20
years of age, and has not received a high school di-
ploma or a certificate of high school equivalency; and
‘‘(11) satisfactory attendance at secondary
school, in the case of a recipient who—
‘‘(A) has not completed secondary school;
and
‘‘(B) is a dependent child, or a head of
household who has not attained 20 years of age.
‘‘(e) PENALTIES AGAINST INDIVIDUALS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if an adult in a family receiving assist-
ance under the State program funded under this
part refuses to engage in work required in accord-
ance with this section, the State shall—
‘‘(A) reduce the amount of assistance oth-
erwise payable to the family pro rata (or more,
at the option of the State) with respect to any
period during a month in which the adult so re-
fuses; or
‘‘(B) terminate such assistance,
subject to such good cause and other exceptions as
the State may establish.
‘‘(2) EXCEPTION.—Notwithstanding paragraph
(1), a State may not reduce or terminate assistance
under the State program funded under this part
based on a refusal of an adult to work if the adult
is a single custodial parent caring for a child who
has not attained 6 years of age, and the adult proves
that the adult has a demonstrated inability (as de-
termined by the State) to obtain needed child care,
for 1 or more of the following reasons:
‘‘(A) Unavailability of appropriate child
care within a reasonable distance from the indi-
vidual’s home or work site.
‘‘(B) Unavailability or unsuitability of in-
formal child care by a relative or under other
arrangements.
‘‘(C) Unavailability of appropriate and af-
fordable formal child care arrangements.
‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
an adult in a family receiving assistance under a
State program funded under this part attributable to
funds provided by the Federal Government may fill
a vacant employment position in order to engage in
a work activity described in subsection (d).
‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No
adult in a work activity described in subsection (d)
which is funded, in whole or in part, by funds pro-
vided by the Federal Government shall be employed
or assigned—
‘‘(A) when any other individual is on layoff
from the same or any substantially equivalent
job; or
‘‘(B) if the employer has terminated the
employment of any regular employee or other-
wise caused an involuntary reduction of its
workforce in order to fill the vacancy so created
with an adult described in paragraph (1).
‘‘(3) NO PREEMPTION.—Nothing in this sub-
section shall preempt or supersede any provision of
State or local law that provides greater protection
for employees from displacement.
‘‘(g) INDIVIDUAL RESPONSIBILITY PLANS.—
‘‘(1) ASSESSMENT.—The State agency respon-
sible for administering the State program funded
under this part shall make an initial assessment of
the skills, prior work experience, and employability
of each applicant for, or recipient of, assistance
under the program who—
‘‘(A) has attained 18 years of age; or
‘‘(B) has not completed high school or ob-
tained a certificate of high school equivalency,
and is not attending secondary school.
‘‘(2) CONTENTS OF PLANS.—
‘‘(A) IN GENERAL.—On the basis of the
assessment made under paragraph (1) with re-
spect to an individual, the State agency, in con-
sultation with the individual, shall develop an
individual responsibility plan for the individual,
which—
‘‘(i) shall provide that participation by
the individual in job search activities shall
be a condition of eligibility for assistance
under the State program funded under this
part, except during any period for which
the individual is employed full-time in an
unsubsidized job in the private sector;
‘‘(ii) sets forth an employment goal
for the individual and a plan for moving
the individual immediately into private sec-
tor employment;
‘‘(iii) sets forth the obligations of the
individual, which may include a require-
ment that the individual attend school,
maintain certain grades and attendance,
keep school age children of the individual
in 
school, 
immunize 
children, 
attend
parenting and money management classes,
or do other things that will help the indi-
vidual become and remain employed in the
private sector;
‘‘(iv) to the greatest extent possible
shall be designed to move the individual
into whatever private sector employment
the individual is capable of handling as
quickly as possible, and to increase the re-
sponsibility and amount of work the indi-
vidual is to handle over time;
‘‘(v) shall describe the services the
State will provide the individual so that the
individual will be able to obtain and keep
employment in the private sector, and de-
scribe the job counseling and other services
that will be provided by the State; and
‘‘(vi) at the option of the State, may
require the individual to undergo appro-
priate substance abuse treatment.
‘‘(B) TIMING.—The State agency shall
comply with subparagraph (A) with respect to
an individual—
‘‘(i) within 90 days (or, at the option
of the State, 180 days) after the effective
date of this part, in the case of an individ-
ual who, as of such effective date, is a re-
cipient of aid under the State plan ap-
proved under part A (as in effect imme-
diately before such effective date); or
‘‘(ii) within 30 days (or, at the option
of the State, 90 days) after the individual
is determined to be eligible for such assist-
ance, in the case of any other individual.
‘‘(3) PROVISION
OF
PROGRAM
AND
EMPLOY-
MENT INFORMATION.—The State shall inform all ap-
plicants for and recipients of assistance under the
State program funded under this part of all avail-
able services under the program for which they are
eligible.
‘‘(4) PENALTY FOR NONCOMPLIANCE BY INDI-
VIDUAL.—The State shall reduce, by such amount
as the State considers appropriate, the amount of
assistance otherwise payable under the State pro-
gram funded under this part to a family that in-
cludes an individual who fails without good cause to
comply with an individual responsibility plan signed
by the individual.
‘‘(h) SENSE OF THE CONGRESS.—It is the sense of
the Congress that in complying with this section, each
State that operates a program funded under this part is
encouraged to assign the highest priority to requiring
adults in 2-parent families and adults in single-parent
families that include older preschool or school-age children
to be engaged in work activities.
‘‘(i) SENSE
OF
THE
CONGRESS
THAT
STATES
SHOULD IMPOSE CERTAIN REQUIREMENTS
ON NON-
CUSTODIAL, NONSUPPORTING MINOR PARENTS.—It is the
sense of the Congress that the States should require non-
custodial, nonsupporting parents who have not attained 18
years of age to fulfill community work obligations and at-
tend appropriate parenting or money management classes
after school.
‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.
‘‘(a) IN GENERAL.—
‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A
MINOR CHILD.—A State to which a grant is made
under section 403 shall not use any part of the
grant to provide assistance to a family, unless the
family includes—
‘‘(A) a minor child who resides with a cus-
todial parent or other adult caretaker relative of
the child; or
‘‘(B) a pregnant individual.
‘‘(2) NO
ADDITIONAL
CASH
ASSISTANCE
FOR
CHILDREN BORN TO FAMILIES RECEIVING ASSIST-
ANCE.—
‘‘(A) GENERAL RULE.—A State to which a
grant is made under section 403 shall not use
any part of the grant to provide cash benefits
for a minor child who is born to—
‘‘(i) a recipient of assistance under
the program operated under this part; or
‘‘(ii) a person who received such as-
sistance at any time during the 10-month
period ending with the birth of the child.
‘‘(B) EXCEPTION
FOR
CHILDREN
BORN
INTO FAMILIES WITH NO OTHER CHILDREN.—
Subparagraph (A) shall not apply to a minor
child who is born into a family that does not in-
clude any other children.
‘‘(C) EXCEPTION
FOR
VOUCHERS.—Sub-
paragraph (A) shall not apply to vouchers
which are provided in lieu of cash benefits and
which may be used only to pay for particular
goods and services specified by the State as
suitable for the care of the child involved.
‘‘(D) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
to a child who is born as a result of rape or in-
cest.
‘‘(E) STATE ELECTION TO OPT OUT.—Sub-
paragraph (A) shall not apply to a State if
State law specifically exempts the State pro-
gram funded under this part from the applica-
tion of subparagraph (A).
‘‘(F) SUBSTITUTION OF FAMILY CAPS IN
EFFECT UNDER WAIVERS.—Subparagraph (A)
shall not apply to a State—
‘‘(i) if, as of the date of the enactment
of this part, there is in effect a waiver ap-
proved by the Secretary under section
1115 which permits the State to deny aid
under the State plan approved under part
A of this title (as in effect without regard
to the amendments made by title I of the
Bipartisan Welfare Reform Act of 1996) to
a family by reason of the birth of a child
to a family member otherwise eligible for
such aid; and
‘‘(ii) for so long as the State contin-
ues to implement such policy under the
State program funded under this part,
under rules prescribed by the State.
‘‘(3) REDUCTION OR ELIMINATION OF ASSIST-
ANCE FOR NONCOOPERATION IN CHILD SUPPORT.—
If the agency responsible for administering the State
plan approved under part D determines that an indi-
vidual is not cooperating with the State in establish-
ing, modifying, or enforcing a support order with re-
spect to a child of the individual, then the State—
‘‘(A) shall deduct from the assistance that
would otherwise be provided to the family of the
individual under the State program funded
under this part the share of such assistance at-
tributable to the individual; and
‘‘(B) may deny the family any assistance
under the State program.
‘‘(4) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
CERTAIN
SUPPORT
RIGHTS
TO
THE
STATE.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 shall require,
as a condition of providing assistance to a fam-
ily under the State program funded under this
part, that a member of the family assign to the
State any rights the family member may have
(on behalf of the family member or of any other
person for whom the family member has applied
for or is receiving such assistance) to support
from any other person, not exceeding the total
amount of assistance so provided to the family,
which accrue (or have accrued) before the date
the family leaves the program, which assign-
ment, on and after the date the family leaves
the program, shall not apply with respect to any
support (other than support collected pursuant
to section 464) which accrued before the family
received such assistance and which the State
has not collected by—
‘‘(i) September 30, 2000, if the as-
signment is executed on or after October 1,
1997, and before October 1, 2000; or
‘‘(ii) the date the family leaves the
program, if the assignment is executed on
or after October 1, 2000.
‘‘(B) LIMITATION.—A State to which a
grant is made under section 403 shall not re-
quire, as a condition of providing assistance to
any family under the State program funded
under this part, that a member of the family
assign to the State any rights to support de-
scribed in subparagraph (A) which accrue after
the date the family leaves the program, except
to the extent necessary to enable the State to
comply with section 457.
‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS
WHO
DO
NOT
ATTEND
HIGH
SCHOOL
OR
OTHER
EQUIVALENT
TRAINING
PROGRAM.—A State to
which a grant is made under section 403 shall not
use any part of the grant to provide assistance to an
individual who has not attained 18 years of age, is
not married, has a minor child at least 12 weeks of
age in his or her care, and has not successfully com-
pleted a high-school education (or its equivalent), if
the individual does not participate in—
‘‘(A) educational activities directed toward
the attainment of a high school diploma or its
equivalent; or
‘‘(B) an alternative educational or training
program that has been approved by the State.
‘‘(6) NO ASSISTANCE FOR TEENAGE PARENTS
NOT LIVING IN ADULT-SUPERVISED SETTINGS.—
‘‘(A) IN GENERAL.—
‘‘(i) REQUIREMENT.—Except as pro-
vided in subparagraph (B), a State to
which a grant is made under section 403
shall not use any part of the grant to pro-
vide assistance to an individual described
in clause (ii) of this subparagraph if the
individual and the minor child referred to
in clause (ii)(II) do not reside in a place of
residence maintained by a parent, legal
guardian, or other adult relative of the in-
dividual as such parent’s, guardian’s, or
adult relative’s own home.
‘‘(ii) INDIVIDUAL
DESCRIBED.—For
purposes of clause (i), an individual de-
scribed in this clause is an individual
who—
‘‘(I) has not attained 18 years of
age; and
‘‘(II) is not married, and has a
minor child in his or her care.
‘‘(B) EXCEPTION.—
‘‘(i) PROVISION OF, OR ASSISTANCE IN
LOCATING, ADULT-SUPERVISED LIVING AR-
RANGEMENT.—In the case of an individual
who is described in clause (ii), the State
agency referred to in section 402(a)(4)
shall provide, or assist the individual in lo-
cating, a second chance home, maternity
home, or other appropriate adult-super-
vised supportive living arrangement, taking
into consideration the needs and concerns
of the individual, unless the State agency
determines that the individual’s current
living arrangement is appropriate, and
thereafter shall require that the individual
and the minor child referred to in subpara-
graph (A)(ii)(II) reside in such living ar-
rangement as a condition of the continued
receipt of assistance under the State pro-
gram funded under this part attributable
to funds provided by the Federal Govern-
ment (or in an alternative appropriate ar-
rangement, should circumstances change
and the current arrangement cease to be
appropriate).
‘‘(ii) INDIVIDUAL
DESCRIBED.—For
purposes of clause (i), an individual is de-
scribed in this clause if the individual is
described in subparagraph (A)(ii), and—
‘‘(I) the individual has no parent,
legal guardian or other appropriate
adult relative described in subclause
(II) of his or her own who is living
or whose whereabouts are known;
‘‘(II) no living parent, legal
guardian, or other appropriate adult
relative, who would otherwise meet
applicable State criteria to act as the
individual’s legal guardian, of such in-
dividual allows the individual to live in
the home of such parent, guardian, or
relative;
‘‘(III) the State agency deter-
mines that—
‘‘(aa) the individual or the
minor child referred to in sub-
paragraph (A)(ii)(II) is being or
has been subjected to serious
physical or emotional harm, sex-
ual abuse, or exploitation in the
residence of the individual’s own
parent or legal guardian; or
‘‘(bb) substantial evidence
exists of an act or failure to act
that presents an imminent or se-
rious harm if the individual and
the minor child lived in the same
residence with the individual’s
own parent or legal guardian; or
‘‘(IV) the State agency otherwise
determines that it is in the best inter-
est of the minor child to waive the re-
quirement of subparagraph (A) with
respect to the individual or the minor
child.
‘‘(iii) SECOND-CHANCE
HOME.—For
purposes of this subparagraph, the term
‘second-chance home’ means an entity that
provides individuals described in clause (ii)
with a supportive and supervised living ar-
rangement in which such individuals are
required to learn parenting skills, including
child development, family budgeting, health
and nutrition, and other skills to promote
their long-term economic independence and
the well-being of their children.
‘‘(7) NO MEDICAL SERVICES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a State to which a grant is
made under section 403 shall not use any part
of the grant to provide medical services.
‘‘(B) EXCEPTION FOR FAMILY PLANNING
SERVICES.—As used in subparagraph (A), the
term ‘medical services’ does not include family
planning services.
‘‘(8) NO
ASSISTANCE
FOR
MORE
THAN
YEARS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), a State to which a
grant is made under section 403 shall not use
any part of the grant to provide cash assistance
to a family that includes an adult who has re-
ceived assistance under any State program
funded under this part attributable to funds
provided by the Federal Government, for 60
months (whether or not consecutive) after the
date the State program funded under this part
commences.
‘‘(B) MINOR CHILD EXCEPTION.—In deter-
mining the number of months for which an in-
dividual who is a parent or pregnant has re-
ceived assistance under the State program
funded under this part, the State shall dis-
regard any month for which such assistance
was provided with respect to the individual and
during which the individual was—
‘‘(i) a minor child; and
‘‘(ii) not the head of a household or
married to the head of a household.
‘‘(C) HARDSHIP EXCEPTION.—
‘‘(i) IN GENERAL.—The State may ex-
empt a family from the application of sub-
paragraph (A) by reason of hardship or if
the family includes an individual who has
been battered or subjected to extreme cru-
elty.
‘‘(ii) LIMITATION.—The number of
families with respect to which an exemp-
tion made by a State under clause (i) is in
effect for a fiscal year shall not exceed 20
percent of the average monthly number of
families to which assistance is provided
under the State program funded under this
part.
‘‘(iii) BATTERED OR SUBJECT TO EX-
TREME CRUELTY DEFINED.—For purposes
of clause (i), an individual has been bat-
tered or subjected to extreme cruelty if the
individual has been subjected to—
‘‘(I) physical acts that resulted
in, or threatened to result in, physical
injury to the individual;
‘‘(II) sexual abuse;
‘‘(III) sexual activity involving a
dependent child;
‘‘(IV) being forced as the care-
taker relative of a dependent child to
engage in nonconsensual sexual acts
or activities;
‘‘(V) threats of, or attempts at,
physical or sexual abuse;
‘‘(VI) mental abuse; or
‘‘(VII) neglect or deprivation of
medical care.
‘‘(D) RULE
OF
INTERPRETATION.—Sub-
paragraph (A) shall not be interpreted to re-
quire any State to provide assistance to any in-
dividual for any period of time under the State
program funded under this part.
‘‘(9) DENIAL OF ASSISTANCE FOR 10 YEARS TO
A PERSON FOUND TO HAVE FRAUDULENTLY MIS-
REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS-
SISTANCE IN 2 OR MORE STATES.—A State to which
a grant is made under section 403 shall not use any
part of the grant to provide cash assistance to an in-
dividual during the 10-year period that begins on
the date the individual is convicted in Federal or
State court of having made a fraudulent statement
or representation with respect to the place of resi-
dence of the individual in order to receive assistance
simultaneously from 2 or more States under pro-
grams that are funded under this title, title XIX, or
the Food Stamp Act of 1977, or benefits in 2 or
more States under the supplemental security income
program under title XVI.
‘‘(10) DENIAL OF ASSISTANCE FOR FUGITIVE
FELONS
AND
PROBATION
AND
PAROLE
VIOLA-
TORS.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 shall not use
any part of the grant to provide assistance to
any individual who is—
‘‘(i) 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 an attempt
to commit a crime, which is a felony under
the laws of the place from which the indi-
vidual flees, or which, in the case of the
State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(ii) violating a condition of probation
or parole imposed under Federal or State
law.
‘‘(B) EXCHANGE OF INFORMATION WITH
LAW ENFORCEMENT AGENCIES.—If a State to
which a grant is made under section 403 estab-
lishes safeguards against the use or disclosure
of information about applicants or recipients of
assistance under the State program funded
under this part, the safeguards shall not pre-
vent the State agency administering the pro-
gram from furnishing a Federal, State, or local
law enforcement officer, upon the request of the
officer, with the current address of any recipi-
ent if the officer furnishes the agency with the
name of the recipient and notifies the agency
that—
‘‘(i) the recipient—
‘‘(I) is described in subparagraph
(A); or
‘‘(II) has information that is nec-
essary for the officer to conduct the
official duties of the officer; and
‘‘(ii) the location or apprehension of
the recipient is within such official duties.
‘‘(11) DENIAL
OF
ASSISTANCE
FOR
MINOR
CHILDREN WHO ARE ABSENT FROM THE HOME FOR
A SIGNIFICANT PERIOD.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 shall not use
any part of the grant to provide assistance for
a minor child who has been, or is expected by
a parent (or other caretaker relative) of the
child to be, absent from the home for a period
of 45 consecutive days or, at the option of the
State, such period of not less than 30 and not
more than 90 consecutive days as the State
may provide for in the State plan submitted
pursuant to section 402.
‘‘(B) STATE
AUTHORITY
TO
ESTABLISH
GOOD CAUSE EXCEPTIONS.—The State may es-
tablish such good cause exceptions to subpara-
graph (A) as the State considers appropriate if
such exceptions are provided for in the State
plan submitted pursuant to section 402.
‘‘(C) DENIAL
OF
ASSISTANCE
FOR
REL-
ATIVE WHO FAILS TO NOTIFY STATE AGENCY
OF ABSENCE OF CHILD.—A State to which a
grant is made under section 403 shall not use
any part of the grant to provide assistance for
an individual who is a parent (or other care-
taker relative) of a minor child and who fails
to notify the agency administering the State
program funded under this part of the absence
of the minor child from the home for the period
specified in or provided for pursuant to sub-
paragraph (A), by the end of the 5-day period
that begins with the date that it becomes clear
to the parent (or relative) that the minor child
will be absent for such period so specified or
provided for.
‘‘(12) INCOME SECURITY PAYMENTS NOT TO BE
DISREGARDED
IN
DETERMINING
THE
AMOUNT
OF
ASSISTANCE TO BE PROVIDED TO A FAMILY.—If a
State to which a grant is made under section 403
uses any part of the grant to provide assistance for
any individual who is receiving a payment under a
State plan for old-age assistance approved under
section 2, a State program funded under part B that
provides cash payments for foster care, or the sup-
plemental security income program under title XVI,
then the State shall not disregard the payment in
determining the amount of assistance to be provided
under the State program funded under this part,
from funds provided by the Federal Government, to
the family of which the individual is a member.
‘‘(13) PROVISION OF VOUCHERS TO FAMILIES
DENIED CASH ASSISTANCE DUE TO STATE-IMPOSED
TIME LIMITS.—
‘‘(A) REQUIREMENT.—If a family is denied
assistance under the State program funded
under this part by reason of a time limit im-
posed by the State other than pursuant to para-
graph (8), the State shall provide vouchers to
the family in accordance with subparagraph
(B).
‘‘(B) CHARACTERISTICS OF VOUCHERS.—
The vouchers referred to in subparagraph (A)
shall be—
‘‘(i) in an amount equal to the
amount determined by the State to meet
the needs of only the child or children in
the family, which shall be determined in
the same manner as the State would other-
wise determines the needs of the child or
children under the program;
‘‘(ii) designed appropriately to pay a
third party for goods and services to be
provided by the third party to the child or
children in the family; and
‘‘(iii) redeemable by a third party de-
scribed in clause (ii) for a dollar amount
equal to the amount of the voucher.
‘‘(b) ALIENS.—For special rules relating to the treat-
ment of aliens, see section 402 of the Bipartisan Welfare
Reform Act of 1996.
‘‘SEC. 409. PENALTIES.
‘‘(a) IN GENERAL.—Subject to this section:
‘‘(1) FAILURE
TO
SUBMIT
REQUIRED
RE-
PORT.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has not, within 1 month
after the end of a fiscal quarter, submitted the
report required by section 411(a) for the quar-
ter year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for
the immediately succeeding fiscal year by an
amount equal to 4 percent of the State family
assistance grant.
‘‘(B) RESCISSION OF PENALTY.—The Sec-
retary shall rescind a penalty imposed on a
State under subparagraph (A) with respect to a
report for a fiscal quarter if the State submits
the report before the end of the immediately
succeeding fiscal quarter.
‘‘(2) FAILURE TO PARTICIPATE IN THE INCOME
AND
ELIGIBILITY
VERIFICATION
SYSTEM.—If the
Secretary determines that a State program funded
under this part is not participating during a fiscal
year in the income and eligibility verification system
required by section 1137, the Secretary shall reduce
the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year
by an amount equal to not more than 2 percent of
the State family assistance grant.
‘‘(3) FAILURE TO COMPLY WITH PATERNITY ES-
TABLISHMENT AND CHILD SUPPORT ENFORCEMENT
REQUIREMENTS UNDER PART D.—Notwithstanding
any other provision of this Act, if the Secretary de-
termines that the State agency that administers a
program funded under this part does not enforce the
penalties requested by the agency administering part
D against recipients of assistance under the State
program who fail to cooperate in establishing pater-
nity in accordance with such part, the Secretary
shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fis-
cal year (without regard to this section) by not more
than 5 percent.
‘‘(4) FAILURE TO TIMELY REPAY A FEDERAL
LOAN FUND FOR STATE WELFARE PROGRAMS.—If
the Secretary determines that a State has failed to
repay any amount borrowed from the Federal Loan
Fund for State Welfare Programs established under
section 406 within the period of maturity applicable
to the loan, plus any interest owed on the loan, the
Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeed-
ing fiscal year quarter (without regard to this sec-
tion) by the outstanding loan amount, plus the inter-
est owed on the outstanding amount. The Secretary
shall not forgive any outstanding loan amount or in-
terest owed on the outstanding amount.
‘‘(5) FAILURE
OF
ANY
STATE
TO
MAINTAIN
CERTAIN LEVEL OF HISTORIC EFFORT.—
‘‘(A) IN
GENERAL.—The Secretary shall
reduce the grant payable to the State under
section 403(a)(1) for fiscal year 1997, 1998,
1999, 2000, 2001, or 2002 by the amount (if
any) by which qualified State expenditures for
the then immediately preceding fiscal year is
less than the applicable percentage of historic
State expenditures with respect to the fiscal
year.
‘‘(B) DEFINITIONS.—As used in this para-
graph:
‘‘(i) 
QUALIFIED
STATE
EXPENDI-
TURES.—
‘‘(I) IN
GENERAL.—The term
‘qualified State expenditures’ means,
with respect to a State and a fiscal
year, the total expenditures by the
State during the fiscal year, under all
State programs, for any of the follow-
ing with respect to eligible families:
‘‘(aa) Cash assistance.
‘‘(bb) Child care assistance.
‘‘(cc) Educational activities
designed to increase self-suffi-
ciency, job training, and work,
excluding any expenditure for
public education in the State ex-
cept expenditures which involve
the provision of services or assist-
ance to a member of an eligible
family which is not generally
available to persons who are not
members of eligible families.
‘‘(dd) Administrative costs
in connection with the matters
described in items (aa), (bb),
(cc), and (ee), but only to the ex-
tent that such costs do not ex-
ceed 15 percent of the total
amount of qualified State ex-
penditures for the fiscal year.
‘‘(ee) Any other use of funds
allowable 
under 
section
404(a)(1).
‘‘(II) EXCLUSION OF TRANSFERS
FROM OTHER STATE AND LOCAL PRO-
GRAMS.—Such term does not include
expenditures under any State or local
program during a fiscal year, except
to the extent that—
‘‘(aa) such expenditures ex-
ceed the amount expended under
the State or local program in the
fiscal year most recently ending
before the date of the enactment
of this part; or
‘‘(bb) the State is entitled to
a payment under former section
403 (as in effect immediately be-
fore such date of enactment) with
respect to such expenditures.
‘‘(III) ELIGIBLE
FAMILIES.—As
used in subclause (I), the term ‘eligi-
ble families’ means families eligible
for assistance under the State pro-
gram funded under this part, and
families who would be eligible for such
assistance but for the application of
paragraph (2) or (8) of section 408(a)
of this Act or section 402 of the Bi-
partisan Welfare Reform Act of 1996.
‘‘(ii) APPLICABLE PERCENTAGE.—The
term ‘applicable percentage’ means—
‘‘(I) for fiscal year 1996, 85 per-
cent; and
‘‘(II) for fiscal years 1997, 1998,
1999, 2000, and 2001, 85 percent ad-
justed (if appropriate) in accordance
with subparagraph (C).
‘‘(iii) 
HISTORIC
STATE
EXPENDI-
TURES.—The term ‘historic State expendi-
tures’ means, with respect to a State and
a fiscal year specified in subparagraph (A),
the lesser of—
‘‘(I) the expenditures by the
State under parts A and F (as in ef-
fect during fiscal year 1994) for fiscal
year 1994; or
‘‘(II) the amount which bears the
same ratio to the amount described in
subclause (I) as—
‘‘(aa) the State family as-
sistance grant for the fiscal year
immediately preceding the fiscal
year specified in subparagraph
(A), plus the total amount re-
quired to be paid to the State
under former section 403 for fis-
cal year 1994 with respect to
amounts expended by the State
for child care under subsection
(g) or (i) of section 402 (as in ef-
fect during fiscal year 1994);
bears to
‘‘(bb) the total amount re-
quired to be paid to the State
under former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994.
Such term does not include any expendi-
tures under the State plan approved under
part A (as so in effect) on behalf of indi-
viduals covered by a tribal family assist-
ance plan approved under section 412, as
determined by the Secretary.
‘‘(iv) 
EXPENDITURES
BY
THE
STATE.—The term ‘expenditures by the
State’ does not include—
‘‘(I) 
any 
expenditures 
from
amounts made available by the Fed-
eral Government;
‘‘(II) State funds expended for
the medicaid program under title
XIX; or
‘‘(III) any State funds which are
used to match Federal funds or are
expended as a condition of receiving
Federal funds under Federal pro-
grams other than under this part.
‘‘(C) PERFORMANCE-BASED ADJUSTMENTS
TO APPLICABLE PERCENTAGE.—
‘‘(i) INCREASE IN MAINTENANCE OF
EFFORT
THRESHOLD
FOR
FAILURE
TO
MEET PARTICIPATION RATES.—If the Sec-
retary determines that a State has failed
to achieve the participation rate required
by section 407 for a fiscal year, the Sec-
retary shall increase the applicable per-
centage for the State for the immediately
succeeding fiscal year by not more than 5
percentage points.
‘‘(ii) REDUCTION IN MAINTENANCE OF
EFFORT THRESHOLD FOR HIGH PERFORM-
ANCE STATES.—
‘‘(I) CRITERIA.—The Secretary
shall, by regulation, establish meas-
ures of the effectiveness of the State
program funded under this part in
moving recipients of assistance under
the 
program 
into 
full-time
unsubsidized employment. In develop-
ing the regulations, the Secretary
shall take into account the length of
time former recipients of assistance
under the program remain employed,
the earnings of such former recipients
who obtain private sector employment,
the total State caseload under the
program, and the rate of unemploy-
ment in the State.
‘‘(II) REDUCTION
OF
THRESH-
OLD.—The Secretary shall reduce the
applicable percentage for a State for a
fiscal year by not more than 5 per-
centage points if the Secretary deter-
mines that the State achieved the par-
ticipation rate required by section 407
for the immediately preceding fiscal
year and exceeded such performance
threshold as the Secretary may estab-
lish under subclause (I) of this clause.
‘‘(6) SUBSTANTIAL NONCOMPLIANCE OF STATE
CHILD SUPPORT ENFORCEMENT PROGRAM WITH RE-
QUIREMENTS OF PART D.—
‘‘(A) IN
GENERAL.—If a State program
operated under part D is found as a result of
a review conducted under section 452(a)(4) not
to have complied substantially with the require-
ments of such part for any quarter, and the
Secretary determines that the program is not
complying substantially with such requirements
at the time the finding is made, the Secretary
shall reduce the grant payable to the State
under section 403(a)(1) for the quarter and
each subsequent quarter that ends before the
1st quarter throughout which the program is
found to be in substantial compliance with such
requirements by—
‘‘(i) not less than 1 nor more than 2
percent;
‘‘(ii) not less than 2 nor more than 3
percent, if the finding is the 2nd consecu-
tive such finding made as a result of such
a review; or
‘‘(iii) not less than 3 nor more than 5
percent, if the finding is the 3rd or a sub-
sequent consecutive such finding made as a
result of such a review.
‘‘(B) DISREGARD
OF
NONCOMPLIANCE
WHICH IS OF A TECHNICAL NATURE.—For pur-
poses of subparagraph (A) of this paragraph
and section 452(a)(4), a State which is not in
full compliance with the requirements of this
part shall be determined to be in substantial
compliance with such requirements only if the
Secretary determines that any noncompliance
with such requirements is of a technical nature
which does not adversely affect the performance
of the State’s program operated under part D.
‘‘(7) FAILURE OF STATE RECEIVING AMOUNTS
FROM CONTINGENCY FUND TO MAINTAIN 100 PER-
CENT OF HISTORIC EFFORT.—If, at the end of any
fiscal year during which amounts from the Contin-
gency Fund for State Welfare Programs have been
paid to a State, the Secretary finds that the State
has failed, during the fiscal year, to expend under
the State program funded under this part an
amount equal to at least 100 percent of the level of
historic State expenditures (as defined in paragraph
(7)(B)(iii) of this subsection) with respect to the fis-
cal year, the Secretary shall reduce the grant pay-
able to the State under section 403(a)(1) for the im-
mediately succeeding fiscal year by the total of the
amounts so paid to the State.
‘‘(8) FAILURE TO EXPEND ADDITIONAL STATE
FUNDS
TO
REPLACE
GRANT
REDUCTIONS.—If the
grant payable to a State under section 403(a)(1) for
a fiscal year is reduced by reason of this subsection,
the State shall, during the immediately succeeding
fiscal year, expend under the State program funded
under this part an amount equal to the total amount
of such reductions.
‘‘(9) FAILURE TO PROVIDE VOUCHER ASSIST-
ANCE.—If the Secretary determines that a State
program funded under this part has failed to comply
with section 408(a)(13) during a fiscal year, the
Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeed-
ing fiscal year by an amount equal to the difference
between the amount the State would have expended
on 
voucher 
assistance 
pursuant 
to 
section
408(a)(13) during the fiscal year in the absence of
such noncompliance and the amount the State ex-
pended on such voucher assistance during the fiscal
year.
‘‘(b) REASONABLE CAUSE EXCEPTION.—
‘‘(1) IN GENERAL.—The Secretary may not im-
pose a penalty on a State under subsection (a) with
respect to a requirement if the Secretary determines
that the State has reasonable cause for failing to
comply with the requirement.
‘‘(2) EXCEPTION.—Paragraph (1) of this sub-
section shall not apply to any penalty under sub-
section (a)(5).
‘‘(c) CORRECTIVE COMPLIANCE PLAN.—
‘‘(1) IN GENERAL.—
‘‘(A) NOTIFICATION
OF
VIOLATION.—Be-
fore imposing a penalty against a State under
subsection (a) with respect to a violation of this
part, the Secretary shall notify the State of the
violation and allow the State the opportunity to
enter into a corrective compliance plan in ac-
cordance with this subsection which outlines
how the State will correct the violation and how
the State will insure continuing compliance with
this part.
‘‘(B) 60-DAY PERIOD TO PROPOSE A COR-
RECTIVE COMPLIANCE PLAN.—During the 60-
day period that begins on the date the State re-
ceives a notice provided under subparagraph
(A) with respect to a violation, the State may
submit to the Federal Government a corrective
compliance plan to correct the violation.
‘‘(C) CONSULTATION
ABOUT
MODIFICA-
TIONS.—During the 60-day period that begins
with the date the Secretary receives a corrective
compliance plan submitted by a State in accord-
ance with subparagraph (B), the Secretary may
consult with the State on modifications to the
plan.
‘‘(D) ACCEPTANCE OF PLAN.— A correc-
tive compliance plan submitted by a State in ac-
cordance with subparagraph (B) is deemed to
be accepted by the Secretary if the Secretary
does not accept or reject the plan during 60-day
period that begins on the date the plan is sub-
mitted.
‘‘(2) EFFECT
OF
CORRECTING
VIOLATION.—
The Secretary may not impose any penalty under
subsection (a) with respect to any violation covered
by a State corrective compliance plan accepted by
the Secretary if the State corrects the violation pur-
suant to the plan.
‘‘(3) EFFECT OF FAILING TO CORRECT VIOLA-
TION.—The Secretary shall assess some or all of a
penalty imposed on a State under subsection (a)
with respect to a violation if the State does not, in
a timely manner, correct the violation pursuant to a
State corrective compliance plan accepted by the
Secretary.
‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(1) IN GENERAL.—In imposing the penalties
described in subsection (a), the Secretary shall not
reduce any quarterly payment to a State by more
than 25 percent.
‘‘(2) CARRYFORWARD OF UNRECOVERED PEN-
ALTIES.—To the extent that paragraph (1) of this
subsection prevents the Secretary from recovering
during a fiscal year the full amount of penalties im-
posed on a State under subsection (a) of this section
for a prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year.
‘‘(e) OTHER PENALTIES.—If, after reasonable notice
and opportunity for hearing to the State agency admin-
istering or supervising the administration of a State pro-
gram funded under this part, the Secretary finds that the
State has failed to comply substantially with any provision
of this part or of the State plan approved under section
402, the Secretary shall, if subsection (a) does not apply
to the failure, notify the State agency that further pay-
ments will not be made to the State under this part (or,
in the Secretary’s discretion, that the payments will be re-
duced or limited to categories under, or parts of, the State
program not affected by the failure) until the Secretary
is satisfied that there is no longer any such failure to com-
ply. Until the Secretary is so satisfied, the Secretary shall
make no further payments to the State (or shall reduce
or limit payments to categories under or parts of the State
program not affected by the failure).
‘‘SEC. 410. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—Within 5 days after the date the
Secretary takes any adverse action under this part with
respect to a State, the Secretary shall notify the chief ex-
ecutive officer of the State of the adverse action, including
any action with respect to the State plan submitted under
100
section 402 or the imposition of a penalty under section
409.
‘‘(b) ADMINISTRATIVE REVIEW.—
‘‘(1) IN GENERAL.—Within 60 days after the
date a State receives notice under subsection (a) of
an adverse action, the State may appeal the action,
in whole or in part, to the Departmental Appeals
Board established in the Department of Health and
Human Services (in this section referred to as the
‘Board’) by filing an appeal with the Board.
‘‘(2) PROCEDURAL
RULES.—The Board shall
consider an appeal filed by a State under paragraph
(1) on the basis of such documentation as the State
may submit and as the Board may require to sup-
port the final decision of the Board. In deciding
whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thor-
ough review of the issues and take into account all
relevant evidence. The Board shall make a final de-
termination with respect to an appeal filed under
paragraph (1) not less than 60 days after the date
the appeal is filed.
‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
‘‘(1) IN GENERAL.—Within 90 days after the
date of a final decision by the Board under this sec-
101
tion with respect to an adverse action taken against
a State, the State may obtain judicial review of the
final decision (and the findings incorporated into the
final decision) by filing an action in—
‘‘(A) the district court of the United States
for the judicial district in which the principal or
headquarters office of the State agency is lo-
cated; or
‘‘(B) the United States District Court for
the District of Columbia.
‘‘(2) PROCEDURAL RULES.—The district court
in which an action is filed under paragraph (1) shall
review the final decision of the Board on the record
established in the administrative proceeding, in ac-
cordance with the standards of review prescribed by
subparagraphs (A) through (E) of section 706(2) of
title 5, United States Code. The review shall be on
the basis of the documents and supporting data sub-
mitted to the Board.
‘‘SEC. 411. DATA COLLECTION AND REPORTING.
‘‘(a) QUARTERLY REPORTS BY STATES.—
‘‘(1) GENERAL REPORTING REQUIREMENT.—
‘‘(A) CONTENTS OF REPORT.—Beginning
July 1, 1996, each State shall collect on a
monthly basis, and report to the Secretary on
102
a quarterly basis, the following disaggregated
case record information on the families receiv-
ing assistance under the State program funded
under this part:
‘‘(i) The county of residence of the
family.
‘‘(ii) Whether a child receiving such
assistance or an adult in the family is dis-
abled.
‘‘(iii) The ages of the members of
such families.
‘‘(iv) The number of individuals in the
family, and the relation of each family
member to the youngest child in the fam-
ily.
‘‘(v) The employment status and earn-
ings of the employed adult in the family.
‘‘(vi) The marital status of the adults
in the family, including whether such
adults have never married, are widowed, or
are divorced.
‘‘(vii) The race and educational status
of each adult in the family.
‘‘(viii) The race and educational sta-
tus of each child in the family.
103
‘‘(ix) Whether the family received sub-
sidized housing, medical assistance under
the State plan approved under title XIX,
food stamps, or subsidized child care, and
if the latter 2, the amount received.
‘‘(x) The number of months that the
family has received each type of assistance
under the program.
‘‘(xi) If the adults participated in, and
the number of hours per week of participa-
tion in, the following activities:
‘‘(I) Education.
‘‘(II) Subsidized private sector
employment.
‘‘(III) Unsubsidized employment.
‘‘(IV) Public sector employment,
work experience, or community serv-
ice.
‘‘(V) Job search.
‘‘(VI) Job skills training or on-
the-job training.
‘‘(VII) Vocational education.
‘‘(xii) Information necessary to cal-
culate participation rates under section
407.
104
‘‘(xiii) The type and amount of assist-
ance received under the program, including
the amount of and reason for any reduc-
tion of assistance (including sanctions).
‘‘(xiv) From a sample of closed cases,
whether the family left the program, and if
so, whether the family left due to—
‘‘(I) employment;
‘‘(II) marriage;
‘‘(III) the prohibition set forth in
section 408(a)(8);
‘‘(IV) sanction; or
‘‘(V) State policy.
‘‘(xv) Any amount of unearned income
received by any member of the family.
‘‘(xvi) The citizenship of the members
of the family.
‘‘(B) USE OF ESTIMATES.—
‘‘(i) AUTHORITY.—A State may com-
ply with subparagraph (A) by submitting
an estimate which is obtained through the
use of scientifically acceptable sampling
methods approved by the Secretary.
‘‘(ii) SAMPLING
AND
OTHER
METH-
ODS.—The Secretary shall provide the
105
States with such case sampling plans and
data collection procedures as the Secretary
deems necessary to produce statistically
valid estimates of the performance of State
programs funded under this part. The Sec-
retary may develop and implement proce-
dures for verifying the quality of data sub-
mitted by the States.
‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO
COVER ADMINISTRATIVE COSTS AND OVERHEAD.—
The report required by paragraph (1) for a fiscal
quarter shall include a statement of the percentage
of the funds paid to the State under this part for
the quarter that are used to cover administrative
costs or overhead.
‘‘(3) REPORT
ON
STATE
EXPENDITURES
ON
PROGRAMS FOR NEEDY FAMILIES.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude a statement of the total amount expended by
the State during the quarter on programs for needy
families.
‘‘(4) REPORT ON NONCUSTODIAL PARENTS PAR-
TICIPATING IN WORK ACTIVITIES.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude the number of noncustodial parents in the
106
State who participated in work activities (as defined
in section 407(d)) during the quarter.
‘‘(5) REPORT
ON
TRANSITIONAL
SERVICES.—
The report required by paragraph (1) for a fiscal
quarter shall include the total amount expended by
the State during the quarter to provide transitional
services to a family that has ceased to receive assist-
ance under this part because of employment, along
with a description of such services.
‘‘(6) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to de-
fine the data elements with respect to which reports
are required by this subsection.
‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE
SECRETARY.—Not later than 6 months after the end of
fiscal year 1997, and each fiscal year thereafter, the Sec-
retary shall transmit to the Congress a report describ-
ing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in
section 407(a); and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earn-
ings of needy families, and child support
collections; and
107
‘‘(ii) decreasing out-of-wedlock preg-
nancies and child poverty;
‘‘(2) the demographic and financial characteris-
tics of families applying for assistance, families re-
ceiving assistance, and families that become ineli-
gible to receive assistance;
‘‘(3) the characteristics of each State program
funded under this part; and
‘‘(4) the trends in employment and earnings of
needy families with minor children living at home.
‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
‘‘(a) GRANTS FOR INDIAN TRIBES.—
‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—
‘‘(A) IN
GENERAL.—For each of fiscal
years 1997, 1998, 1999, and 2000, the Sec-
retary shall pay to each Indian tribe that has
an approved tribal family assistance plan a trib-
al family assistance grant for the fiscal year in
an amount equal to the amount determined
under subparagraph (B), and shall reduce the
grant payable under section 403(a)(1) to any
State in which lies the service area or areas of
the Indian tribe by that portion of the amount
108
so determined that is attributable to expendi-
tures by the State.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount de-
termined under this subparagraph is an
amount equal to the total amount of the
Federal payments to a State or States
under section 403 (as in effect during such
fiscal year) for fiscal year 1994 attrib-
utable to expenditures (other than child
care expenditures) by the State or States
under parts A and F (as so in effect) for
fiscal year 1994 for Indian families resid-
ing in the service area or areas identified
by the Indian tribe pursuant to subsection
(b)(1)(C) of this section.
‘‘(ii) USE
OF
STATE
SUBMITTED
DATA.—
‘‘(I) IN
GENERAL.—The Sec-
retary shall use State submitted data
to make each determination under
clause (i).
‘‘(II) DISAGREEMENT WITH DE-
TERMINATION.—If an Indian tribe or
tribal organization disagrees with
109
State submitted data described under
subclause (I), the Indian tribe or trib-
al organization may submit to the
Secretary such additional information
as may be relevant to making the de-
termination under clause (i) and the
Secretary may consider such informa-
tion before making such determina-
tion.
‘‘(2) GRANTS FOR INDIAN TRIBES THAT RE-
CEIVED JOBS FUNDS.—
‘‘(A) IN
GENERAL.—The Secretary shall
pay to each eligible Indian tribe for each of fis-
cal years 1996, 1997, 1998, 1999, and 2000 a
grant in an amount equal to the amount re-
ceived by the Indian tribe in fiscal year 1994
under section 482(i) (as in effect during fiscal
year 1994).
‘‘(B) ELIGIBLE INDIAN TRIBE.—For pur-
poses of subparagraph (A), the term ‘eligible
Indian tribe’ means an Indian tribe or Alaska
Native organization that conducted a job oppor-
tunities and basic skills training program in fis-
cal year 1995 under section 482(i) (as in effect
during fiscal year 1995).
110
‘‘(C) USE OF GRANT.—Each Indian tribe
to which a grant is made under this paragraph
shall use the grant for the purpose of operating
a program to make work activities available to
members of the Indian tribe.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated
$7,638,474 for each fiscal year specified in sub-
paragraph (A) for grants under subparagraph
(A).
‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—
‘‘(1) IN GENERAL.—Any Indian tribe that de-
sires to receive a tribal family assistance grant shall
submit to the Secretary a 3-year tribal family assist-
ance plan that—
‘‘(A) outlines the Indian tribe’s approach
to providing welfare-related services for the 3-
year period, consistent with this section;
‘‘(B) specifies whether the welfare-related
services provided under the plan will be pro-
vided by the Indian tribe or through agree-
ments, contracts, or compacts with intertribal
consortia, States, or other entities;
111
‘‘(C) identifies the population and service
area or areas to be served by such plan;
‘‘(D) provides that a family receiving as-
sistance under the plan may not receive duplica-
tive assistance from other State or tribal pro-
grams funded under this part;
‘‘(E) identifies the employment opportuni-
ties in or near the service area or areas of the
Indian tribe and the manner in which the In-
dian tribe will cooperate and participate in en-
hancing such opportunities for recipients of as-
sistance under the plan consistent with any ap-
plicable State standards; and
‘‘(F) applies the fiscal accountability provi-
sions of section 5(f)(1) of the Indian Self-De-
termination and Education Assistance Act (25
U.S.C. 450c(f)(1)), relating to the submission
of a single-agency audit report required by
chapter 75 of title 31, United States Code.
‘‘(2) APPROVAL.—The Secretary shall approve
each tribal family assistance plan submitted in ac-
cordance with paragraph (1).
‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this
section shall preclude the development and submis-
sion of a single tribal family assistance plan by the
112
participating Indian tribes of an intertribal consor-
tium.
‘‘(c) MINIMUM
WORK
PARTICIPATION
REQUIRE-
MENTS AND TIME LIMITS.—The Secretary, with the par-
ticipation of Indian tribes, shall establish for each Indian
tribe receiving a grant under this section minimum work
participation requirements, appropriate time limits for re-
ceipt of welfare-related services under the grant, and pen-
alties against individuals—
‘‘(1) consistent with the purposes of this sec-
tion;
‘‘(2) consistent with the economic conditions
and resources available to each tribe; and
‘‘(3) similar to comparable provisions in section
407(d).
‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec-
tion shall preclude an Indian tribe from seeking emergency
assistance from any Federal loan program or emergency
fund.
‘‘(e) ACCOUNTABILITY.—Nothing in this section shall
be construed to limit the ability of the Secretary to main-
tain program funding accountability consistent with—
‘‘(1) generally accepted accounting principles;
and
113
‘‘(2) the requirements of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450 et seq.).
‘‘(f) PENALTIES.—Subsections (a)(4), (b), and (e) of
section 409 shall apply to an Indian tribe with an ap-
proved tribal assistance plan in the same manner as such
subsections apply to a State.
‘‘(g) DATA COLLECTION AND REPORTING.—Section
411 shall apply to an Indian tribe with an approved tribal
family assistance plan.
‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS-
KA.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, and except as provided in
paragraph (2), an Indian tribe in the State of Alas-
ka that receives a tribal family assistance grant
under this section shall use the grant to operate a
program in accordance with requirements com-
parable to the requirements applicable to the pro-
gram of the State of Alaska funded under this part.
Comparability of programs shall be established on
the basis of program criteria developed by the Sec-
retary in consultation with the State of Alaska and
such Indian tribes.
114
‘‘(2) WAIVER.—An Indian tribe described in
paragraph (1) may apply to the appropriate State
authority to receive a waiver of the requirement of
paragraph (1).
‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary shall conduct re-
search on the benefits, effects, and costs of operating dif-
ferent State programs funded under this part, including
time limits relating to eligibility for assistance. The re-
search shall include studies on the effects of different pro-
grams and the operation of such programs on welfare de-
pendency, illegitimacy, teen pregnancy, employment rates,
child well-being, and any other area the Secretary deems
appropriate. The Secretary shall also conduct research on
the costs and benefits of State activities under section
409.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA-
TIVE APPROACHES TO REDUCING WELFARE DEPEND-
ENCY AND INCREASING CHILD WELL-BEING.—
‘‘(1) IN GENERAL.—The Secretary may assist
States in developing, and shall evaluate, innovative
approaches for reducing welfare dependency and in-
creasing the well-being of minor children living at
home with respect to recipients of assistance under
115
programs funded under this part. The Secretary
may provide funds for training and technical assist-
ance to carry out the approaches developed pursuant
to this paragraph.
‘‘(2) EVALUATIONS.—In performing the evalua-
tions under paragraph (1), the Secretary shall, to
the maximum extent feasible, use random assign-
ment as an evaluation methodology.
‘‘(c) DISSEMINATION OF INFORMATION.—The Sec-
retary shall develop innovative methods of disseminating
information on any research, evaluations, and studies con-
ducted under this section, including the facilitation of the
sharing of information and best practices among States
and localities through the use of computers and other
technologies.
‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Sec-
retary shall rank annually the States to which
grants are paid under section 403 in the order of
their success in placing recipients of assistance
under the State program funded under this part into
long-term private sector jobs, reducing the overall
welfare caseload, and, when a practicable method for
calculating this information becomes available, di-
116
verting individuals from formally applying to the
State program and receiving assistance. In ranking
States under this subsection, the Secretary shall
take into account the average number of minor chil-
dren living at home in families in the State that
have incomes below the poverty line and the amount
of funding provided each State for such families.
‘‘(2) ANNUAL
REVIEW
OF
MOST
AND
LEAST
SUCCESSFUL WORK PROGRAMS.—The Secretary shall
review the programs of the 3 States most recently
ranked highest under paragraph (1) and the 3
States most recently ranked lowest under paragraph
(1) that provide parents with work experience, as-
sistance in finding employment, and other work
preparation activities and support services to enable
the families of such parents to leave the program
and become self-sufficient.
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF
ISSUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
annually rank States to which grants are made
under section 403 based on the following rank-
ing factors:
117
‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA-
TIOS.—The ratio represented by—
‘‘(I) the total number of out-of-
wedlock births in families receiving as-
sistance under the State program
under this part in the State for the
most recent fiscal year for which in-
formation is available; over
‘‘(II) the total number of births
in families receiving assistance under
the State program under this part in
the State for such year.
‘‘(ii) NET CHANGES IN THE OUT-OF-
WEDLOCK RATIO.—The difference between
the ratio described in subparagraph (A)(i)
with respect to a State for the most recent
fiscal year for which such information is
available and the ratio with respect to the
State for the immediately preceding year.
‘‘(2) ANNUAL REVIEW.—The Secretary shall re-
view the programs of the 5 States most recently
ranked highest under paragraph (1) and the 5
States most recently ranked the lowest under para-
graph (1).
118
‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall
be eligible to receive funding to evaluate the State pro-
gram funded under this part if—
‘‘(1) the State submits a proposal to the Sec-
retary for the evaluation;
‘‘(2) the Secretary determines that the design
and approach of the evaluation is rigorous and is
likely to yield information that is credible and will
be useful to other States; and
‘‘(3) unless otherwise waived by the Secretary,
the State contributes to the cost of the evaluation,
from non-Federal sources, an amount equal to at
least 10 percent of the cost of the evaluation.
‘‘(g) FUNDING
OF
STUDIES
AND
DEMONSTRA-
TIONS.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated $15,000,000 for each
fiscal year specified in section 403(a)(1) for the pur-
pose of paying—
‘‘(A) the cost of conducting the research
described in subsection (a);
‘‘(B) the cost of developing and evaluating
innovative approaches for reducing welfare de-
119
pendency and increasing the well-being of minor
children under subsection (b);
‘‘(C) the Federal share of any State-initi-
ated study approved under subsection (f); and
‘‘(D) an amount determined by the Sec-
retary to be necessary to operate and evaluate
demonstration projects, relating to this part,
that are in effect or approved under section
1115 as of September 30, 1995, and are contin-
ued after such date.
‘‘(2) ALLOCATION.—Of the amount appro-
priated under paragraph (1) for a fiscal year—
‘‘(A) 50 percent shall be allocated for the
purposes described in subparagraphs (A) and
(B) of paragraph (1), and
‘‘(B) 50 percent shall be allocated for the
purposes described in subparagraphs (C) and
(D) of paragraph (1).
‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall
expand the Survey of Income and Program Participation
as necessary to obtain such information as will enable in-
terested persons to evaluate the impact of the amendments
made by title I of the Bipartisan Welfare Reform Act of
1996 on a random national sample of recipients of assist-
120
ance under State programs funded under this part and
(as appropriate) other low income families, and in doing
so, shall pay particular attention to the issues of out-of-
wedlock birth, welfare dependency, the beginning and end
of welfare spells, and the causes of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated $10,000,000 for each of fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 for
payment to the Bureau of the Census to carry out sub-
section (a).
‘‘SEC. 415. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACT-
MENT OF WELFARE REFORM.—Except as provided
in paragraph (3), if any waiver granted to a State
under section 1115 or otherwise which relates to the
provision of assistance under a State plan under this
part (as in effect on September 30, 1995) is in ef-
fect as of the date of the enactment of the Biparti-
san Welfare Reform Act of 1996, the amendments
made by such Act shall not apply with respect to the
State before the expiration (determined without re-
gard to any extensions) of the waiver to the extent
such amendments are inconsistent with the waiver.
121
‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Ex-
cept as provided in paragraph (3), if any waiver
granted to a State under section 1115 or otherwise
which relates to the provision of assistance under a
State plan under this part (as in effect on Septem-
ber 30, 1995) is submitted to the Secretary before
the date of the enactment of the Bipartisan Welfare
Reform Act of 1996 and approved by the Secretary
before the effective date of this title, and the State
demonstrates to the satisfaction of the Secretary
that the waiver will not result in Federal expendi-
tures under title IV of this Act (as in effect without
regard to the amendments made by the Bipartisan
Welfare Reform Act of 1996) that are greater than
would occur in the absence of the waiver, such
amendments shall not apply with respect to the
State before the expiration (determined without re-
gard to any extensions) of the waiver to the extent
such amendments are inconsistent with the waiver.
‘‘(3) FINANCING
LIMITATION.—Notwithstand-
ing any other provision of law, beginning with fiscal
year 1996, a State operating under a waiver de-
scribed in paragraph (1) shall be entitled to payment
under section 403 for the fiscal year, in lieu of any
other payment provided for in the waiver.
122
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN GENERAL.—A State may terminate a
waiver described in subsection (a) before the expira-
tion of the waiver.
‘‘(2) REPORT.—A State which terminates a
waiver under paragraph (1) shall submit a report to
the Secretary summarizing the waiver and any avail-
able information concerning the result or effect of
the waiver.
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, a State that, not later
than the date described in subparagraph (B),
submits a written request to terminate a waiver
described in subsection (a) shall be held harm-
less for accrued cost neutrality liabilities in-
curred under the waiver.
‘‘(B) DATE
DESCRIBED.—The date de-
scribed in this subparagraph is the later of—
‘‘(i) January 1, 1996; or
‘‘(ii) 90 days following the adjourn-
ment of the first regular session of the
State legislature that begins after the date
of the enactment of the Bipartisan Welfare
Reform Act of 1996.
123
‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT
WAIVERS.—The Secretary shall encourage any State oper-
ating a waiver described in subsection (a) to continue the
waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result
or effect of the waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A
State may elect to continue 1 or more individual waivers
described in subsection (a).
‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D shall be
administered by an Assistant Secretary for Family Sup-
port within the Department of Health and Human Serv-
ices, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
in addition to any other Assistant Secretary of Health and
Human Services provided for by law.
‘‘SEC. 417. DEFINITIONS.
‘‘As used in this part:
‘‘(1) ADULT.—The term ‘adult’ means an indi-
vidual who is not a minor child.
‘‘(2) MINOR
CHILD.—The term ‘minor child’
means an individual who—
‘‘(A) has not attained 18 years of age; or
124
‘‘(B) has not attained 19 years of age and
is a full-time student in a secondary school (or
in the equivalent level of vocational or technical
training).
‘‘(3) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGA-
NIZATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the terms ‘Indian’, ‘Indian
tribe’, and ‘tribal organization’ have the mean-
ing given such terms by section 4 of the Indian
Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES
IN
ALASKA.—The term ‘Indian tribe’ means,
with respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette
Islands Reserve and the following Alaska Native
regional nonprofit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
125
‘‘(iv) Association of Village Council
Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
‘‘(viii) Aleutian and Pribilof Island
Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Associa-
tion.
‘‘(5) STATE.—Except as otherwise specifically
provided, the term ‘State’ means the 50 States of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, and American Samoa.’’.
SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELI-
GIOUS, OR PRIVATE ORGANIZATIONS.
(a) IN GENERAL.—
(1) STATE OPTIONS.—A State may—
(A) administer and provide services under
the programs described in subparagraphs (A)
and (B)(i) of paragraph (2) through contracts
126
with charitable, religious, or private organiza-
tions; and
(B) provide beneficiaries of assistance
under the programs described in subparagraphs
(A) and (B)(ii) of paragraph (2) with certifi-
cates, vouchers, or other forms of disbursement
which are redeemable with such organizations.
(2) PROGRAMS DESCRIBED.—The programs de-
scribed in this paragraph are the following pro-
grams:
(A) A State program funded under part A
of title IV of the Social Security Act (as amend-
ed by section 103 of this Act).
(B) Any other program established or
modified under title I, II, or VI of this Act,
that—
(i) permits contracts with organiza-
tions; or
(ii) permits certificates, vouchers, or
other forms of disbursement to be provided
to beneficiaries, as a means of providing
assistance.
(b) RELIGIOUS ORGANIZATIONS.—The purpose of
this section is to allow States to contract with religious
organizations, or to allow religious organizations to accept
127
certificates, vouchers, or other forms of disbursement
under any program described in subsection (a)(2), on the
same basis as any other nongovernmental provider without
impairing the religious character of such organizations,
and without diminishing the religious freedom of bene-
ficiaries of assistance funded under such program.
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGA-
NIZATIONS.—In the event a State exercises its authority
under subsection (a), religious organizations are eligible,
on the same basis as any other private organization, as
contractors to provide assistance, or to accept certificates,
vouchers, or other forms of disbursement, under any pro-
gram described in subsection (a)(2) so long as the pro-
grams are implemented consistent with the Establishment
Clause of the United States Constitution. Except as pro-
vided in subsection (k), neither the Federal Government
nor a State receiving funds under such programs shall dis-
criminate against an organization which is or applies to
be a contractor to provide assistance, or which accepts cer-
tificates, vouchers, or other forms of disbursement, on the
basis that the organization has a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS
ORGANIZATIONS.—A religious
organization with a contract described in subsection
(a)(1)(A), or which accepts certificates, vouchers, or
128
other forms of disbursement under subsection
(a)(1)(B), shall retain its independence from Fed-
eral, State, and local governments, including such
organization’s control over the definition, develop-
ment, practice, and expression of its religious beliefs.
(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State shall require a reli-
gious organization to—
(A) alter its form of internal governance;
or
(B) remove religious art, icons, scripture,
or other symbols;
in order to be eligible to contract to provide assist-
ance, or to accept certificates, vouchers, or other
forms of disbursement, funded under a program de-
scribed in subsection (a)(2).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
(1) IN GENERAL.—If an individual described in
paragraph (2) has an objection to the religious char-
acter of the organization or institution from which
the individual receives, or would receive, assistance
funded under any program described in subsection
(a)(2), the State in which the individual resides shall
provide such individual (if otherwise eligible for such
assistance) within a reasonable period of time after
129
the date of such objection with assistance from an
alternative provider that is accessible to the individ-
ual and the value of which is not less than the value
of the assistance which the individual would have re-
ceived from such organization.
(2) INDIVIDUAL DESCRIBED.—An individual de-
scribed in this paragraph is an individual who re-
ceives, applies for, or requests to apply for, assist-
ance under a program described in subsection (a)(2).
(f) EMPLOYMENT PRACTICES.—A religious organiza-
tion’s exemption provided under section 702 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e–1a) regarding em-
ployment practices shall not be affected by its participa-
tion in, or receipt of funds from, programs described in
subsection (a)(2).
(g) 
NONDISCRIMINATION
AGAINST
BENE-
FICIARIES.—Except as otherwise provided in law, a reli-
gious organization shall not discriminate against an indi-
vidual in regard to rendering assistance funded under any
program described in subsection (a)(2) on the basis of reli-
gion, a religious belief, or refusal to actively participate
in a religious practice.
(h) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization contracting to
130
provide assistance funded under any program de-
scribed in subsection (a)(2) shall be subject to the
same regulations as other contractors to account in
accord with generally accepted auditing principles
for the use of such funds provided under such pro-
grams.
(2) LIMITED AUDIT.—If such organization seg-
regates Federal funds provided under such programs
into separate accounts, then only the financial as-
sistance provided with such funds shall be subject to
audit.
(i) COMPLIANCE.—Any party which seeks to enforce
its rights under this section may assert a civil action for
injunctive relief exclusively in an appropriate State court
against the entity or agency that allegedly commits such
violation.
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No funds provided directly to institutions or
organizations to provide services and administer programs
under subsection (a)(1)(A) shall be expended for sectarian
worship, instruction, or proselytization.
(k) PREEMPTION.—Nothing in this section shall be
construed to preempt any provision of a State constitution
or State statute that prohibits or restricts the expenditure
of State funds in or by religious organizations.
131
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY
CAREGIVERS FOR THEIR GRANDCHILDREN.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, the Secretary of Com-
merce, in carrying out section 141 of title 13, United
States Code, shall expand the data collection efforts of the
Bureau of the Census (in this section referred to as the
‘‘Bureau’’) to enable the Bureau to collect statistically sig-
nificant data, in connection with its decennial census and
its mid-decade census, concerning the growing trend of
grandparents who are the primary caregivers for their
grandchildren.
(b) EXPANDED CENSUS QUESTION.—In carrying out
subsection (a), the Secretary of Commerce shall expand
the Bureau’s census question that details households
which include both grandparents and their grandchildren.
The expanded question shall be formulated to distinguish
between the following households:
(1) A household in which a grandparent tempo-
rarily provides a home for a grandchild for a period
of weeks or months during periods of parental dis-
tress.
(2) A household in which a grandparent pro-
vides a home for a grandchild and serves as the pri-
mary caregiver for the grandchild.
132
SEC. 106. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date
of the enactment of this Act, the Secretary of Health and
Human Services shall prepare and submit to the Congress
a report on—
(1) the status of the automated data processing
systems operated by the States to assist manage-
ment in the administration of State programs under
part A of title IV of the Social Security Act (wheth-
er in effect before or after October 1, 1995); and
(2) what would be required to establish a sys-
tem capable of—
(A) tracking participants in public pro-
grams over time; and
(B) checking case records of the States to
determine whether individuals are participating
in public programs of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by
subsection (a) should include—
(1) a plan for building on the automated data
processing systems of the States to establish a sys-
tem with the capabilities described in subsection
(a)(2); and
(2) an estimate of the amount of time required
to establish such a system and of the cost of estab-
lishing such a system.
133
SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) STUDY.—The Secretary shall, in cooperation with
the States, study and analyze outcomes measures for eval-
uating the success of the States in moving individuals out
of the welfare system through employment as an alter-
native to the minimum participation rates described in
section 407 of the Social Security Act. The study shall
include a determination as to whether such alternative
outcomes measures should be applied on a national or a
State-by-State basis and a preliminary assessment of the
effects of section 409(a)(5)(C) of such Act.
(b) REPORT.—Not later than September 30, 1998,
the Secretary shall submit to the Committee on Finance
of the Senate and the Committee on Ways and Means of
the House of Representatives a report containing the find-
ings of the study required by subsection (a).
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SE-
CURITY ACT.
(a) AMENDMENTS TO TITLE II.—
(1) 
Section 
205(c)(2)(C)(vi) 
(42 
U.S.C.
405(c)(2)(C)(vi)), as so redesignated by section
321(a)(9)(B) of the Social Security Independence
and Program Improvements Act of 1994, is amend-
ed—
134
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is
amended by inserting ‘‘under a State program fund-
ed under’’ before ‘‘part A of title IV’’.
(b) AMENDMENT TO PART B OF TITLE IV.—Section
422(b)(2) (42 U.S.C. 622(b)(2)) is amended by striking
‘‘under the State plan approved’’ and inserting ‘‘under the
State program funded.’’.
(c) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 (42 U.S.C. 651) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a
State program funded’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance
under a State program funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
135
(C) by striking ‘‘under section 402(a)(26)
or’’ 
and 
inserting 
‘‘pursuant 
to 
section
408(a)(4) or under section’’.
(3) 
Section 
452(a)(10)(F) 
(42 
U.S.C.
652(a)(10)(F)) is amended—
(A) by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State
program funded’’; and
(B) by striking ‘‘in accordance with the
standards 
referred 
to 
in 
section
402(a)(26)(B)(ii)’’ 
and 
inserting 
‘‘by 
the
State’’.
(4) Section 452(b) (42 U.S.C. 652(b)) is
amended in the first sentence by striking ‘‘aid under
the State plan approved under part A’’ and inserting
‘‘assistance under the State program funded under
part A’’.
(5) 
Section 
452(d)(3)(B)(i) 
(42 
U.S.C.
652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’
and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is
being paid under the State’s plan approved under
part A or E’’ and inserting ‘‘assistance is being pro-
136
vided under the State program funded under part
A’’.
(7) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter following
clause (iii) by striking ‘‘aid was being paid under the
State’s plan approved under part A or E’’ and in-
serting ‘‘assistance was being provided under the
State program funded under part A’’.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended in the matter following subparagraph
(B)—
(A) by striking ‘‘who is a dependent child’’
and inserting ‘‘with respect to whom assistance
is being provided under the State program
funded under part A’’;
(B) by inserting ‘‘by the State agency ad-
ministering the State plan approved under this
part’’ after ‘‘found’’; and
(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘with the State in establishing
paternity’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is
amended by striking ‘‘under section 402(a)(26)’’ and
inserting ‘‘pursuant to section 408(a)(4)’’.
137
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is
amended by striking ‘‘aid under part A of this title’’
and inserting ‘‘assistance under a State program
funded under part A’’.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A))
is amended—
(A) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 408(a)(4)’’;
and
(B) by striking ‘‘; except that this para-
graph shall not apply to such payments for any
month following the first month in which the
amount collected is sufficient to make such
family ineligible for assistance under the State
plan approved under part A;’’ and inserting a
comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D))
is amended by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is
amended by striking ‘‘under section 402(a)(26)’’.
(14) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’
and inserting ‘‘408(a)(4)’’.
138
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(16) Section 469(a) (42 U.S.C. 669(a)) is
amended—
(A) by striking ‘‘aid under plans approved’’
and inserting ‘‘assistance under State programs
funded’’; and
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’.
(d) AMENDMENTS TO PART E OF TITLE IV.—
(1) Section 470 (42 U.S.C. 670) is amended—
(A) by striking ‘‘would be’’ and inserting
‘‘would have been’’; and
(B) by inserting ‘‘(as such plan was in ef-
fect on March 1, 1996)’’ after ‘‘part A’’.
(2) Section 471(17) (42 U.S.C. 671(17)) is
amended by striking ‘‘plans approved under parts A
and D’’ and inserting ‘‘program funded under part
A and plan approved under part D’’.
(3) Section 472(a) (42 U.S.C. 672(a)) is
amended—
(A) in the matter preceding paragraph
(1)—
139
(i) by striking ‘‘would meet’’ and in-
serting ‘‘would have met’’;
(ii) by inserting ‘‘(as such sections
were in effect on June 1, 1995)’’ after
‘‘407’’; and
(iii) by inserting ‘‘(as so in effect)’’
after ‘‘406(a)’’; and
(B) in paragraph (4)—
(i) in subparagraph (A)—
(I) by inserting ‘‘would have’’
after ‘‘(A)’’; and
(II) by inserting ‘‘(as in effect on
June 1, 1995)’’ after ‘‘section 402’’;
and
(ii) in subparagraph (B)(ii), by insert-
ing ‘‘(as in effect on June 1, 1995)’’ after
‘‘406(a)’’.
(4) Section 472(h) (42 U.S.C. 672(h)) is
amended to read as follows:
‘‘(h)(1) For purposes of title XIX, any child with re-
spect to whom foster care maintenance payments are
made under this section shall be deemed to be a dependent
child as defined in section 406 (as in effect as of June
1, 1995) and shall be deemed to be a recipient of aid to
families with dependent children under part A of this title
140
(as so in effect). For purposes of title XX, any child with
respect to whom foster care maintenance payments are
made under this section shall be deemed to be a minor
child in a needy family under a State program funded
under part A and shall be deemed to be a recipient of
assistance under such part.
‘‘(2) For purposes of paragraph (1), a child whose
costs in a foster family home or child care institution are
covered by the foster care maintenance payments being
made with respect to the child’s minor parent, as provided
in section 475(4)(B), shall be considered a child with re-
spect to whom foster care maintenance payments are
made under this section.’’.
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is
amended—
(A) in subparagraph (A)(i)—
(i) by inserting ‘‘(as such sections
were in effect on June 1, 1995)’’ after
‘‘407’’;
(ii) by inserting ‘‘(as so in effect)’’
after ‘‘specified in section 406(a)’’; and
(iii) by inserting ‘‘(as such section was
in effect on June 1, 1995)’’ after ‘‘403’’;
(B) in subparagraph (B)(i)—
141
(i) by inserting ‘‘would have’’ after
‘‘(B)(i)’’; and
(ii) by inserting ‘‘(as in effect on June
1, 1995)’’ after ‘‘section 402’’; and
(C) in subparagraph (B)(ii)(II), by insert-
ing ‘‘(as in effect on June 1, 1995)’’ after
‘‘406(a)’’.
(6) Section 473(b) (42 U.S.C. 673(b)) is
amended to read as follows:
‘‘(b)(1) For purposes of title XIX, any child who is
described in paragraph (3) shall be deemed to be a de-
pendent child as defined in section 406 (as in effect as
of June 1, 1995) and shall be deemed to be a recipient
of aid to families with dependent children under part A
of this title (as so in effect) in the State where such child
resides.
‘‘(2) For purposes of title XX, any child who is de-
scribed in paragraph (3) shall be deemed to be a minor
child in a needy family under a State program funded
under part A and shall be deemed to be a recipient of
assistance under such part.
‘‘(3) A child described in this paragraph is any
child—
‘‘(A)(i) who is a child described in subsection
(a)(2), and
142
‘‘(ii) with respect to whom an adoption assist-
ance agreement is in effect under this section
(whether or nor adoption assistance payments are
provided under the agreement or are being made
under this section), including any such child who has
been placed for adoption in accordance with applica-
ble State and local law (whether or not an interlocu-
tory or other judicial decree of adoption has been is-
sued), or
‘‘(B) with respect to whom foster care mainte-
nance payments are being made under section 472.
‘‘(4) For purposes of paragraphs (1) and (2), a child
whose costs in a foster family home or child-care institu-
tion are covered by the foster care maintenance payments
being made with respect to the child’s minor parent, as
provided in section 475(4)(B), shall be considered a child
with respect to whom foster care maintenance payments
are being made under section 472.’’.
(e) REPEAL OF PART F OF TITLE IV.—Part F of
title IV (42 U.S.C. 681–687) is repealed.
(f) AMENDMENT TO TITLE X.—Section 1002(a)(7)
(42 U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to
families with dependent children under the State plan ap-
proved under section 402 of this Act’’ and inserting ‘‘as-
143
sistance under a State program funded under part A of
title IV’’.
(g) AMENDMENTS TO TITLE XI.—
(1) Section 1108 (42 U.S.C. 1308) is amend-
ed—
(A) by redesignating subsection (c) as sub-
section (g);
(B) by striking all that precedes subsection
(c) and inserting the following:
‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE
VIRGIN 
ISLANDS, 
GUAM, 
AND 
AMERICAN
SAMOA; LIMITATION ON TOTAL PAYMENTS.
‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH
TERRITORY.—Notwithstanding any other provision of this
Act, the total amount certified by the Secretary of Health
and Human Services under titles I, X, XIV, and XVI,
under parts A and B of title IV, and under subsection
(b) of this section, for payment to any territory for a fiscal
year shall not exceed the ceiling amount for the territory
for the fiscal year.
‘‘(b) ENTITLEMENT TO MATCHING GRANT.—
‘‘(1) IN GENERAL.—Each territory shall be en-
titled to receive from the Secretary for each fiscal
year a grant in an amount equal to 75 percent of
the amount (if any) by which—
144
‘‘(A) the total expenditures of the territory
during the fiscal year under the territory pro-
grams funded under parts A and B of title IV;
exceeds
‘‘(B) the sum of—
‘‘(i) the total amount required to be
paid to the territory (other than with re-
spect to child care) under former section
403 (as in effect on September 30, 1995)
for fiscal year 1995, which shall be deter-
mined by applying subparagraphs (C) and
(D) of section 403(a)(1) to the territory;
‘‘(ii) the total amount required to be
paid to the territory under former section
434 (as so in effect) for fiscal year 1995;
and
‘‘(iii) the total amount expended by
the territory during fiscal year 1995 pur-
suant to parts A, B, and F of title IV (as
so in effect), other than for child care.
‘‘(2) USE OF GRANT.—Any territory to which a
grant is made under paragraph (1) may expend the
amount under any program operated or funded
under any provision of law specified in subsection
(a).
145
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) TERRITORY.—The term ‘territory’ means
Puerto Rico, the Virgin Islands, Guam, and Amer-
ican Samoa.
‘‘(2) CEILING
AMOUNT.—The term ‘ceiling
amount’ means, with respect to a territory and a fis-
cal year, the mandatory ceiling amount with respect
to the territory plus the discretionary ceiling amount
with respect to the territory, reduced for the fiscal
year in accordance with subsection (f).
‘‘(3) MANDATORY CEILING AMOUNT.—The term
‘mandatory ceiling amount’ means—
‘‘(A) $105,538,000 with respect to Puerto
Rico;
‘‘(B) $4,902,000 with respect to Guam;
‘‘(C) $3,742,000 with respect to the Virgin
Islands; and
‘‘(D) $1,122,000 with respect to American
Samoa.
‘‘(4) DISCRETIONARY CEILING AMOUNT.—The
term ‘discretionary ceiling amount’ means, with re-
spect to a territory and a fiscal year, the total
amount appropriated pursuant to subsection (d)(3)
for the fiscal year for payment to the territory.
146
‘‘(5) TOTAL AMOUNT EXPENDED BY THE TER-
RITORY.—The term ‘total amount expended by the
territory’—
‘‘(A) does not include expenditures during
the fiscal year from amounts made available by
the Federal Government; and
‘‘(B) when used with respect to fiscal year
1995, also does not include—
‘‘(i) expenditures during fiscal year
1995 under subsection (g) or (i) of section
402 (as in effect on September 30, 1995);
or
‘‘(ii) any expenditures during fiscal
year 1995 for which the territory (but for
section 1108, as in effect on September 30,
1995) would have received reimbursement
from the Federal Government.
‘‘(d) DISCRETIONARY GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make a
grant to each territory for any fiscal year in the
amount appropriated pursuant to paragraph (3) for
the fiscal year for payment to the territory.
‘‘(2) USE OF GRANT.—Any territory to which a
grant is made under paragraph (1) may expend the
amount under any program operated or funded
147
under any provision of law specified in subsection
(a).
‘‘(3) LIMITATION ON AUTHORIZATION OF AP-
PROPRIATIONS.—For grants under paragraph (1),
there are authorized to be appropriated to the Sec-
retary for each fiscal year—
‘‘(A) $7,951,000 for payment to Puerto
Rico;
‘‘(B) $345,000 for payment to Guam;
‘‘(C) $275,000 for payment to the Virgin
Islands; and
‘‘(D) $190,000 for payment to American
Samoa.
‘‘(e) AUTHORITY TO TRANSFER FUNDS AMONG PRO-
GRAMS.—Notwithstanding any other provision of this Act,
any territory to which an amount is paid under any provi-
sion of law specified in subsection (a) may use part or
all of the amount to carry out any program operated by
the territory, or funded, under any other such provision
of law.
‘‘(f) 
MAINTENANCE
OF
EFFORT.—The 
ceiling
amount with respect to a territory shall be reduced for
a fiscal year by an amount equal to the amount (if any)
by which—
148
‘‘(1) the total amount expended by the territory
under all programs of the territory operated pursu-
ant to the provisions of law specified in subsection
(a) (as such provisions were in effect for fiscal year
1995) for fiscal year 1995; exceeds
‘‘(2) the total amount expended by the territory
under all programs of the territory that are funded
under the provisions of law specified in subsection
(a) for the fiscal year that immediately precedes the
fiscal year referred to in the matter preceding para-
graph (1).’’; and
(C) by striking subsections (d) and (e).
(2) Section 1109 (42 U.S.C. 1309) is amended
by striking ‘‘or part A of title IV,’’.
(3) Section 1115 (42 U.S.C. 1315) is amend-
ed—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(ii) by striking ‘‘403,’’;
(iii) by striking the period at the end
and inserting ‘‘, and’’; and
(iv) by adding at the end the following
new subparagraph:
‘‘(B) costs of such project which would not oth-
erwise be a permissible use of funds under part A
149
of title IV and which are not included as part of the
costs of projects under section 1110, shall to the ex-
tent and for the period prescribed by the Secretary,
be regarded as a permissible use of funds under
such part.’’; and
(B) in subsection (c)(3), by striking
‘‘under the program of aid to families with de-
pendent children’’ and inserting ‘‘part A of
such title’’.
(4) Section 1116 (42 U.S.C. 1316) is amend-
ed—
(A) in each of subsections (a)(1), (b), and
(d), by striking ‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking
‘‘404,’’.
(5) Section 1118 (42 U.S.C. 1318) is amend-
ed—
(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’;
and
(C) by striking ‘‘, and shall, in the case of
American Samoa, mean 75 per centum with re-
spect to part A of title IV’’.
(6) Section 1119 (42 U.S.C. 1319) is amend-
ed—
150
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(7) Section 1133(a) (42 U.S.C. 1320b–3(a)) is
amended by striking ‘‘or part A of title IV,’’.
(8) Section 1136 (42 U.S.C. 1320b–6) is re-
pealed.
(9) Section 1137 (42 U.S.C. 1320b–7) is
amended—
(A) in subsection (b), by striking para-
graph (1) and inserting the following:
‘‘(1) any State program funded under part A of
title IV of this Act;’’; and
(B) in subsection (d)(1)(B)—
(i) by striking ‘‘In this subsection—’’
and all that follows through ‘‘(ii) in’’ and
inserting ‘‘In this subsection, in’’;
(ii) by redesignating subclauses (I),
(II), and (III) as clauses (i), (ii), and (iii);
and
(iii) by moving such redesignated ma-
terial 2 ems to the left.
(h) 
AMENDMENT
TO
TITLE
XIV.—Section
1402(a)(7) (42 U.S.C. 1352(a)(7)) is amended by striking
‘‘aid to families with dependent children under the State
plan approved under section 402 of this Act’’ and insert-
151
ing ‘‘assistance under a State program funded under part
A of title IV’’.
(i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT TO THE TERRITORIES.—Section 1602(a)(11),
as in effect without regard to the amendment made by
section 301 of the Social Security Amendments of 1972
(42 U.S.C. 1382 note), is amended by striking ‘‘aid under
the State plan approved’’ and inserting ‘‘assistance under
a State program funded’’.
(j) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT TO THE STATES.—Section 1611(c)(5)(A) (42
U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)
a State program funded under part A of title IV,’’.
(k) AMENDMENT TO TITLE XIX.—Section 1902(j)
(42 U.S.C. 1396a(j)) is amended by striking ‘‘1108(c)’’
and inserting ‘‘1108(g)’’.
SEC. 109. CONFORMING 
AMENDMENTS 
TO 
THE 
FOOD
STAMP ACT OF 1977 AND RELATED PROVI-
SIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended—
(1) in the second sentence of subsection (a), by
striking ‘‘plan approved’’ and all that follows
through ‘‘title IV of the Social Security Act’’ and in-
152
serting ‘‘program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.)’’;
(2) in subsection (d)—
(A) in paragraph (5), by striking ‘‘assist-
ance to families with dependent children’’ and
inserting ‘‘assistance under a State program
funded’’; and
(B) by striking paragraph (13) and redes-
ignating paragraphs (14), (15), and (16) as
paragraphs (13), (14), and (15), respectively;
(3) in subsection (j), by striking ‘‘plan approved
under part A of title IV of such Act (42 U.S.C. 601
et seq.)’’ and inserting ‘‘program funded under part
A of title IV of the Act (42 U.S.C. 601 et seq.)’’;
and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amend-
ed—
(1) in subsection (c)(5), by striking ‘‘the State
plan approved’’ and inserting ‘‘the State program
funded’’; and
(2) in subsection (e)(6), by striking ‘‘aid to
families with dependent children’’ and inserting
‘‘benefits under a State program funded’’.
153
(c) Section 16(g)(4) of such Act (7 U.S.C.
2025(g)(4)) is amended by striking ‘‘State plans under the
Aid to Families with Dependent Children Program under’’
and inserting ‘‘State programs funded under part A of’’.
(d) Section 17 of such Act (7 U.S.C. 2026) is amend-
ed—
(1) in the first sentence of subsection (b)(1)(A),
by striking ‘‘to aid to families with dependent chil-
dren under part A of title IV of the Social Security
Act’’ and inserting ‘‘or are receiving assistance
under a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et
seq.)’’; and
(2) in subsection (b)(3), by adding at the end
the following new subparagraph:
‘‘(I) The Secretary may not grant a waiver
under this paragraph on or after October 1, 1995.
Any reference in this paragraph to a provision of
title IV of the Social Security Act shall be deemed
to be a reference to such provision as in effect on
September 30, 1995.’’;
(e) Section 20 of such Act (7 U.S.C. 2029) is amend-
ed—
154
(1) in subsection (a)(2)(B) by striking ‘‘operat-
ing—’’ and all that follows through ‘‘(ii) any other’’
and inserting ‘‘operating any’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1) A household’’
and inserting ‘‘(b) A household’’; and
(ii) in subparagraph (B), by striking
‘‘training program’’ and inserting ‘‘activ-
ity’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A)
through (F) as paragraphs (1) through (6), re-
spectively.
(f) Section 5(h)(1) of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93–186; 7 U.S.C.
612c note) is amended by striking ‘‘the program for aid
to families with dependent children’’ and inserting ‘‘the
State program funded’’.
(g) Section 9 of the National School Lunch Act (42
U.S.C. 1758) is amended—
(1) in subsection (b)—
(A) in paragraph (2)(C)(ii)(II)—
155
(i) by striking ‘‘program for aid to
families with dependent children’’ and in-
serting ‘‘State program funded’’; and
(ii) by inserting before the period at
the end the following: ‘‘that the Secretary
determines complies with standards estab-
lished by the Secretary that ensure that
the standards under the State program are
comparable to or more restrictive than
those in effect on March 1, 1996’’; and
(B) in paragraph (6)—
(i) in subparagraph (A)(ii)—
(I) by striking ‘‘an AFDC assist-
ance unit (under the aid to families
with dependent children program au-
thorized’’ and inserting ‘‘a family
(under the State program funded’’;
and
(II) by striking ‘‘, in a State’’
and 
all 
that 
follows 
through
‘‘9902(2)))’’ and inserting ‘‘that the
Secretary determines complies with
standards established by the Secretary
that ensure that the standards under
the State program are comparable to
156
or more restrictive than those in effect
on March 1, 1996’’; and
(ii) in subparagraph (B), by striking
‘‘aid to families with dependent children’’
and inserting ‘‘assistance under the State
program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.) that the Secretary determines com-
plies with standards established by the
Secretary that ensure that the standards
under the State program are comparable
to or more restrictive than those in effect
on March 1, 1996’’; and
(2) in subsection (d)(2)(C)—
(A) by striking ‘‘program for aid to fami-
lies with dependent children’’ and inserting
‘‘State program funded’’; and
(B) by inserting before the period at the
end the following: ‘‘that the Secretary deter-
mines complies with standards established by
the Secretary that ensure that the standards
under the State program are comparable to or
more restrictive than those in effect on June 1,
1995’’.
157
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amend-
ed—
(1) by striking ‘‘program for aid to families
with dependent children established’’ and inserting
‘‘State program funded’’; and
(2) by inserting before the semicolon the follow-
ing: ‘‘that the Secretary determines complies with
standards established by the Secretary that ensure
that the standards under the State program are
comparable to or more restrictive than those in ef-
fect on June 1, 1995’’.
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemploy-
ment Compensation Amendments of 1976 (42 U.S.C.
603a; Public Law 94–566; 90 Stat. 2689) is amended to
read as follows:
‘‘(b) PROVISION
FOR
REIMBURSEMENT
OF
EX-
PENSES.—For purposes of section 455 of the Social Secu-
rity Act, expenses incurred to reimburse State employment
offices for furnishing information requested of such of-
fices—
‘‘(1) pursuant to the third sentence of section
3(a) of the Act entitled ‘An Act to provide for the
establishment of a national employment system and
158
for cooperation with the States in the promotion of
such system, and for other purposes’, approved June
6, 1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with
the duty of carrying a State plan for child support
approved under part D of title IV of the Social Se-
curity Act,
shall be considered to constitute expenses incurred in the
administration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Re-
covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
ment under AFDC of certain rental payments for federally
assisted housing, is repealed.
(e) Section 159 of the Tax Equity and Fiscal Respon-
sibility Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments
of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Home-
less Assistance Amendments Act of 1988 (42 U.S.C.
11381 note), relating to demonstration projects to reduce
number of AFDC families in welfare hotels, is amended—
159
(1) in subsection (a), by striking ‘‘aid to fami-
lies with dependent children under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’; and
(2) in subsection (c), by striking ‘‘aid to fami-
lies with dependent children in the State under a
State plan approved’’ and inserting ‘‘assistance in
the State under a State program funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C.
1001 et seq.) is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–
23(c)(3)), by striking ‘‘(Aid to Families with De-
pendent Children)’’; and
(2) 
in 
section 
480(b)(2) 
(20 
U.S.C.
1087vv(b)(2)), by striking ‘‘aid to families with de-
pendent children under a State plan approved’’ and
inserting ‘‘assistance under a State program fund-
ed’’.
(i) The Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.) is amend-
ed—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C.
2341(d)(3)(A)(ii)), by striking ‘‘the program for aid
to dependent children’’ and inserting ‘‘the State pro-
gram funded’’;
160
(2) 
in 
section 
232(b)(2)(B) 
(20 
U.S.C.
2341a(b)(2)(B)), by striking ‘‘the program for aid to
families with dependent children’’ and inserting ‘‘the
State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C.
2471(14)(B)(iii)), by striking ‘‘the program for aid
to families with dependent children’’ and inserting
‘‘the State program funded’’.
(j) The Elementary and Secondary Education Act of
1965 (20 U.S.C. 2701 et seq.) is amended—
(1) 
in 
section 
1113(a)(5) 
(20 
U.S.C.
6313(a)(5)), by striking ‘‘Aid to Families with De-
pendent Children Program’’ and inserting ‘‘State
program funded under part A of title IV of the So-
cial Security Act’’;
(2) 
in 
section 
1124(c)(5) 
(20 
U.S.C.
6333(c)(5)), by striking ‘‘the program of aid to fam-
ilies with dependent children under a State plan ap-
proved under’’ and inserting ‘‘a State program fund-
ed under part A of’’; and
(3) 
in 
section 
5203(b)(2) 
(20 
U.S.C.
7233(b)(2))—
(A) in subparagraph (A)(xi), by striking
‘‘Aid to Families with Dependent Children ben-
efits’’ and inserting ‘‘assistance under a State
161
program funded under part A of title IV of the
Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking
‘‘Aid to Families with Dependent Children’’ and
inserting ‘‘assistance under the State program
funded under part A of title IV of the Social
Security Act’’.
(k) Chapter VII of title I of Public Law 99–88 (25
U.S.C. 13d–1) is amended to read as follows: ‘‘Provided
further, That general assistance payments made by the
Bureau of Indian Affairs shall be made—
‘‘(1) after April 29, 1985, and before October
1, 1995, on the basis of Aid to Families with De-
pendent Children (AFDC) standards of need; and
‘‘(2) on and after October 1, 1995, on the basis
of standards of need established under the State
program funded under part A of title IV of the So-
cial Security Act,
except that where a State ratably reduces its AFDC or
State program payments, the Bureau shall reduce general
assistance payments in such State by the same percentage
as the State has reduced the AFDC or State program pay-
ment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C.
1 et seq.) is amended—
162
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by
striking all that follows ‘‘agency as’’ and inserting
‘‘being eligible for financial assistance under part A
of title IV of the Social Security Act and as having
continually received such financial assistance during
the 90-day period which immediately precedes the
date on which such individual is hired by the em-
ployer.’’;
(2) 
in 
section 
3304(a)(16) 
(26 
U.S.C.
3304(a)(16)), by striking ‘‘eligibility for aid or serv-
ices,’’ and all that follows through ‘‘children ap-
proved’’ and inserting ‘‘eligibility for assistance, or
the amount of such assistance, under a State pro-
gram funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C.
6103(l)(7)(D)(i)), by striking ‘‘aid to families with
dependent children provided under a State plan ap-
proved’’ and inserting ‘‘a State program funded’’;
(4) 
in 
section 
6103(l)(10) 
(26 
U.S.C.
6103(l)(10))—
(A) by striking ‘‘(c) or (d)’’ each place it
appears and inserting ‘‘(c), (d), or (e)’’; and
(B) by adding at the end of subparagraph
(B) the following new sentence: ‘‘Any return in-
formation disclosed with respect to section
163
6402(e) shall only be disclosed to officers and
employees of the State agency requesting such
information.’’;
(5) 
in 
section 
6103(p)(4) 
(26 
U.S.C.
6103(p)(4)), in the matter preceding subparagraph
(A)—
(A) by striking ‘‘(5), (10)’’ and inserting
‘‘(5)’’; and
(B) by striking ‘‘(9), or (12)’’ and insert-
ing ‘‘(9), (10), or (12)’’;
(6) in section 6334(a)(11)(A) (26 U.S.C.
6334(a)(11)(A)), by striking ‘‘(relating to aid to
families with dependent children)’’;
(7) in section 6402 (26 U.S.C. 6402)—
(A) in subsection (a), by striking ‘‘(c) and
(d)’’ and inserting ‘‘(c), (d), and (e)’’;
(B) 
by 
redesignating 
subsections 
(e)
through (i) as subsections (f) through (j), re-
spectively; and
(C) by inserting after subsection (d) the
following:
‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE
IV–A OF THE SOCIAL SECURITY ACT.—The amount of
any overpayment to be refunded to the person making the
overpayment shall be reduced (after reductions pursuant
164
to subsections (c) and (d), but before a credit against fu-
ture liability for an internal revenue tax) in accordance
with section 405(e) of the Social Security Act (concerning
recovery of overpayments to individuals under State plans
approved under part A of title IV of such Act).’’; and
(8) in section 7523(b)(3)(C) (26 U.S.C.
7523(b)(3)(C)), by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance under a
State program funded under part A of title IV of the
Social Security Act’’.
(m) Section 3(b) of the Wagner-Peyser Act (29
U.S.C. 49b(b)) is amended by striking ‘‘State plan ap-
proved under part A of title IV’’ and inserting ‘‘State pro-
gram funded under part A of title IV’’.
(n) The Job Training Partnership Act (29 U.S.C.
1501 et seq.) is amended—
(1) 
in 
section 
4(29)(A)(i) 
(29 
U.S.C.
1503(29)(A)(i)), by striking ‘‘(42 U.S.C. 601 et
seq.)’’;
(2) 
in 
section 
106(b)(6)(C) 
(29 
U.S.C.
1516(b)(6)(C)), by striking ‘‘State aid to families
with dependent children records,’’ and inserting
‘‘records collected under the State program funded
under part A of title IV of the Social Security Act,’’;
165
(3) 
in 
section 
121(b)(2) 
(29 
U.S.C.
1531(b)(2))—
(A) by striking ‘‘the JOBS program’’ and
inserting ‘‘the work activities required under
title IV of the Social Security Act’’; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))—
(A) in paragraph (1)(E), by repealing
clause (vi); and
(B) in paragraph (2)(D), by repealing
clause (v);
(5) 
in 
section 
203(b)(3) 
(29 
U.S.C.
1603(b)(3)), by striking ‘‘, including recipients
under the JOBS program’’;
(6) in subparagraphs (A) and (B) of section
204(a)(1) (29 U.S.C. 1604(a)(1) (A) and (B)), by
striking ‘‘(such as the JOBS program)’’ each place
it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by
striking paragraph (4) and inserting the following:
‘‘(4) the portions of title IV of the Social Secu-
rity Act relating to work activities;’’;
(8) in section 253 (29 U.S.C. 1632)—
(A) in subsection (b)(2), by repealing sub-
paragraph (C); and
166
(B) in paragraphs (1)(B) and (2)(B) of
subsection (c), by striking ‘‘the JOBS program
or’’ each place it appears;
(9) in section 264 (29 U.S.C. 1644)—
(A) in subparagraphs (A) and (B) of sub-
section (b)(1), by striking ‘‘(such as the JOBS
program)’’ each place it appears; and
(B) in subparagraphs (A) and (B) of sub-
section (d)(3), by striking ‘‘and the JOBS pro-
gram’’ each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by
striking paragraph (6) and inserting the following:
‘‘(6) the portion of title IV of the Social Secu-
rity Act relating to work activities;’’;
(11) in the second sentence of section 429(e)
(29 U.S.C. 1699(e)), by striking ‘‘and shall be in an
amount that does not exceed the maximum amount
that may be provided by the State pursuant to sec-
tion 402(g)(1)(C) of the Social Security Act (42
U.S.C. 602(g)(1)(C))’’;
(12) in section 454(c) (29 U.S.C. 1734(c)), by
striking ‘‘JOBS and’’;
(13) in section 455(b) (29 U.S.C. 1735(b)), by
striking ‘‘the JOBS program,’’;
167
(14) in section 501(1) (29 U.S.C. 1791(1)), by
striking ‘‘aid to families with dependent children
under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.)’’ and inserting ‘‘assistance
under the State program funded under part A of
title IV of the Social Security Act’’;
(15) 
in 
section 
506(1)(A) 
(29 
U.S.C.
1791e(1)(A)), by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance under
the State program funded’’;
(16) in section 508(a)(2)(A) (29 U.S.C.
1791g(a)(2)(A)), by striking ‘‘aid to families with
dependent children’’ and inserting ‘‘assistance under
the State program funded’’; and
(17) in section 701(b)(2)(A) (29 U.S.C.
1792(b)(2)(A))—
(A) in clause (v), by striking the semicolon
and inserting ‘‘; and’’; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United
States Code, is amended to read as follows:
‘‘(iv) assistance under a State pro-
gram funded under part A of title IV of
the Social Security Act’’.
168
(p) Section 2605(b)(2)(A)(i) of the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C.
8624(b)(2)(A)(i)) is amended to read as follows:
‘‘(i) assistance under the State pro-
gram funded under part A of title IV of
the Social Security Act;’’.
(q) Section 303(f)(2) of the Family Support Act of
1988 (42 U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 900 et seq.) is amended—
(1) in the first section 255(h) (2 U.S.C.
905(h)), by striking ‘‘Aid to families with dependent
children (75–0412–0–1–609);’’ and inserting ‘‘Block
grants to States for temporary assistance for needy
families;’’; and
(2) in section 256 (2 U.S.C. 906)—
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as sub-
section (k).
(s) The Immigration and Nationality Act (8 U.S.C.
1101 et seq.) is amended—
(1) in section 210(f) (8 U.S.C. 1160(f)), by
striking ‘‘aid under a State plan approved under’’
169
each place it appears and inserting ‘‘assistance
under a State program funded under’’;
(2) in section 245A(h) (8 U.S.C. 1255a(h))—
(A) in paragraph (1)(A)(i), by striking
‘‘program of aid to families with dependent chil-
dren’’ and inserting ‘‘State program of assist-
ance’’; and
(B) in paragraph (2)(B), by striking ‘‘aid
to families with dependent children’’ and insert-
ing ‘‘assistance under a State program funded
under part A of title IV of the Social Security
Act’’; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)),
by striking ‘‘State plan approved’’ and inserting
‘‘State program funded’’.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42
U.S.C. 9835(a)(4)(B)(i)) is amended by striking ‘‘pro-
gram of aid to families with dependent children under a
State plan approved’’ and inserting ‘‘State program of as-
sistance funded’’.
(u) Section 9 of the Act of April 19, 1950 (64 Stat.
47, chapter 92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the
School-To-Work Opportunities Act of 1994 (20 U.S.C.
6143(d)(6)) is amended to read as follows:
170
‘‘(E) part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.) relating to
work activities;’’.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United
States Code, is amended by striking ‘‘section 464 or 1137
of the Social Security Act’’ and inserting ‘‘section 404(e),
464, or 1137 of the Social Security Act.’’.
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTER-
FEIT-RESISTANT SOCIAL SECURITY CARD RE-
QUIRED.
(a) DEVELOPMENT.—
(1) IN GENERAL.—The Commissioner of Social
Security (in this section referred to as the ‘‘Commis-
sioner’’) shall, in accordance with this section, de-
velop a prototype of a counterfeit-resistant social se-
curity card. Such prototype card shall—
(A) be made of a durable, tamper-resistant
material such as plastic or polyester,
(B) employ technologies that provide secu-
rity 
features, 
such 
as 
magnetic 
stripes,
holograms, and integrated circuits, and
(C) be developed so as to provide individ-
uals with reliable proof of citizenship or legal
resident alien status.
171
(2) ASSISTANCE BY ATTORNEY GENERAL.—The
Attorney General of the United States shall provide
such information and assistance as the Commis-
sioner deems necessary to enable the Commissioner
to comply with this section.
(b) STUDY AND REPORT.—
(1) IN GENERAL.—The Commissioner shall con-
duct a study and issue a report to Congress which
examines different methods of improving the social
security card application process.
(2) ELEMENTS OF STUDY.—The study shall in-
clude an evaluation of the cost and work load impli-
cations of issuing a counterfeit-resistant social secu-
rity card for all individuals over a 3-, 5-, and 10-
year period. The study shall also evaluate the fea-
sibility and cost implications of imposing a user fee
for replacement cards and cards issued to individ-
uals who apply for such a card prior to the sched-
uled 3-, 5-, and 10-year phase-in options.
(3) DISTRIBUTION OF REPORT.—The Commis-
sioner shall submit copies of the report described in
this subsection along with a facsimile of the proto-
type card as described in subsection (a) to the Com-
mittees on Ways and Means and Judiciary of the
House of Representatives and the Committees on Fi-
172
nance and Judiciary of the Senate within 1 year
after the date of the enactment of this Act.
SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.
(a) IN GENERAL.—Whenever an organization that
accepts Federal funds under this Act or the amendments
made by this Act makes any communication that in any
way intends to promote public support or opposition to
any policy of a Federal, State, or local government
through any broadcasting station, newspaper, magazine,
outdoor advertising facility, direct mailing, or any other
type of general public advertising, such communication
shall state the following: ‘‘This was prepared and paid for
by an organization that accepts taxpayer dollars.’’.
(b) FAILURE TO COMPLY.—If an organization makes
any communication described in subsection (a) and fails
to provide the statement required by that subsection, such
organization shall be ineligible to receive Federal funds
under this Act or the amendments made by this Act.
(c) DEFINITION.—For purposes of this section, the
term ‘‘organization’’ means an organization described in
section 501(c) of the Internal Revenue Code of 1986.
(d) EFFECTIVE DATES.—This section shall take ef-
fect—
(1) with respect to printed communications 1
year after the date of enactment of this Act; and
173
(2) with respect to any other communication on
the date of enactment of this Act.
SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES
FOR 
CERTAIN 
LOW-INCOME 
INDIVIDUALS
PROGRAM.
Section 505 of the Family Support Act of 1988 (42
U.S.C. 1315 note) is amended—
(1) in the heading, by striking ‘‘DEM-
ONSTRATION’’;
(2) by striking ‘‘demonstration’’ each place such
term appears;
(3) in subsection (a), by striking ‘‘in each of
fiscal years’’ and all that follows through ‘‘10’’ and
inserting ‘‘shall enter into agreements with’’;
(4) in subsection (b)(3), by striking ‘‘aid to
families with dependent children under part A of
title IV of the Social Security Act’’ and inserting
‘‘assistance under the program funded part A of title
IV of the Social Security Act of the State in which
the individual resides’’;
(5) in subsection (c)—
(A) in paragraph (1)(C), by striking ‘‘aid
to families with dependent children under part
A of title IV of the Social Security Act’’ and in-
serting ‘‘assistance under a State program
174
funded part A of title IV of the Social Security
Act’’;
(B) in paragraph (2), by striking ‘‘aid to
families with dependent children under title IV
of such Act’’ and inserting ‘‘assistance under a
State program funded part A of title IV of the
Social Security Act’’;
(6) in subsection (d), by striking ‘‘job opportu-
nities and basic skills training program (as provided
for under title IV of the Social Security Act)’’ and
inserting ‘‘the State program funded under part A
of title IV of the Social Security Act’’; and
(7) by striking subsections (e) through (g) and
inserting the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of conducting projects under this section, there
is authorized to be appropriated an amount not to exceed
$25,000,000 for any fiscal year.’’.
SEC. 114. SECRETARIAL 
SUBMISSION 
OF 
LEGISLATIVE
PROPOSAL FOR TECHNICAL AND CONFORM-
ING AMENDMENTS.
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Health and Human
Services and the Commissioner of Social Security, in con-
sultation, as appropriate, with the heads of other Federal
175
agencies, shall submit to the appropriate committees of
Congress a legislative proposal proposing such technical
and conforming amendments as are necessary to bring the
law into conformity with the policy embodied in this title.
SEC. 115. EFFECTIVE DATE; TRANSITION RULE.
(a) IN GENERAL.—Except as otherwise provided in
this title, this title and the amendments made by this title
shall take effect on October 1, 1996.
(b) TRANSITION RULES.—
(1) STATE OPTION TO ACCELERATE EFFECTIVE
DATE.—
(A) IN
GENERAL.—If, within 3 months
after the date of the enactment of this Act, the
Secretary of Health and Human Services re-
ceives from a State, a plan described in section
402(a) of the Social Security Act (as added by
the amendment made by section 103 of this
Act), this title and the amendments made by
this title (except section 409(a)(5) of the Social
Security Act, as added by the amendment made
by such section 103) shall also apply with re-
spect to the State during the period that begins
on the date the Secretary approves the plan and
ends on September 30, 1996, except that the
State shall be considered an eligible State for
176
fiscal year 1996 for purposes of part A of title
IV of the Social Security Act (as in effect pur-
suant to the amendment made by such section
103).
(B) LIMITATIONS
ON
FEDERAL
OBLIGA-
TIONS.—
(i) UNDER
AFDC
PROGRAM.—If the
Secretary receives from a State the plan
referred to in subparagraph (A), the total
obligations of the Federal Government to
the State under part A of title IV of the
Social Security Act (as in effect on Sep-
tember 30, 1995) with respect to expendi-
tures by the State after the date of the en-
actment of this Act shall not exceed an
amount equal to—
(I) the State family assistance
grant 
(as 
defined 
in 
section
403(a)(1)(B) of the Social Security
Act (as in effect pursuant to the
amendment made by section 103 of
this Act)); minus
(II) any obligations of the Fed-
eral Government to the State under
part A of title IV of the Social Secu-
177
rity Act (as in effect on September
30, 1995) with respect to expendi-
tures by the State during the period
that begins on October 1, 1995, and
ends on the day before the date of the
enactment of this Act.
(ii) UNDER TEMPORARY FAMILY AS-
SISTANCE
PROGRAM.—Notwithstanding
section 403(a)(1) of the Social Security
Act (as in effect pursuant to the amend-
ment made by section 103 of this Act), the
total obligations of the Federal Govern-
ment to a State under such section
403(a)(1) for fiscal year 1996 after the
termination of the State AFDC program
shall not exceed an amount equal to—
(I) the amount described in
clause (i)(I) of this subparagraph;
minus
(II) any obligations of the Fed-
eral Government to the State under
part A of title IV of the Social Secu-
rity Act (as in effect on September
30, 1995) with respect to expendi-
178
tures by the State on or after October
1, 1995.
(iii) CHILD
CARE
OBLIGATIONS
EX-
CLUDED IN DETERMINING FEDERAL AFDC
OBLIGATIONS.—As used in this subpara-
graph, the term ‘‘obligations of the Federal
Government to the State under part A of
title IV of the Social Security Act’’ does
not include any obligation of the Federal
Government with respect to child care ex-
penditures by the State.
(C) SUBMISSION OF STATE PLAN FOR FIS-
CAL
YEAR
1996
DEEMED
ACCEPTANCE
OF
GRANT LIMITATIONS AND FORMULA.—The sub-
mission of a plan by a State pursuant to sub-
paragraph (A) is deemed to constitute the
State’s acceptance of the grant reductions
under subparagraph (B)(ii) (including the for-
mula for computing the amount of the reduc-
tion).
(D) DEFINITIONS.—As used in this para-
graph:
(i) STATE AFDC PROGRAM.—The term
‘‘State AFDC program’’ means the State
program under parts A and F of title IV
179
of the Social Security Act (as in effect on
September 30, 1995).
(ii) STATE.—The term ‘‘State’’ means
the 50 States and the District of Colum-
bia.
(2) CLAIMS, ACTIONS, AND
PROCEEDINGS.—
The amendments made by this title shall not apply
with respect to—
(A) powers, duties, functions, rights,
claims, penalties, or obligations applicable to
aid, assistance, or services provided before the
effective date of this title under the provisions
amended; and
(B) administrative actions and proceedings
commenced before such date, or authorized be-
fore such date to be commenced, under such
provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PRO-
GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED
BY THIS TITLE.—In closing out accounts, Federal
and State officials may use scientifically acceptable
statistical sampling techniques. Claims made with
respect to State expenditures under a State plan ap-
proved under part A of title IV of the Social Secu-
rity Act (as in effect before the effective date of this
180
Act) with respect to assistance or services provided
on or before September 30, 1995, shall be treated as
claims with respect to expenditures during fiscal
year 1995 for purposes of reimbursement even if
payment was made by a State on or after October
1, 1995. Each State shall complete the filing of all
claims under the State plan (as so in effect) no later
than September 30, 1997. The head of each Federal
department shall—
(A) use the single audit procedure to re-
view and resolve any claims in connection with
the close out of programs under such State
plans; and
(B) reimburse States for any payments
made for assistance or services provided during
a prior fiscal year from funds for fiscal year
1995, rather than from funds authorized by
this title.
(4) CONTINUANCE
IN
OFFICE
OF
ASSISTANT
SECRETARY FOR FAMILY SUPPORT.—The individual
who, on the day before the effective date of this title,
is serving as Assistant Secretary for Family Support
within the Department of Health and Human Serv-
ices shall, until a successor is appointed to such po-
sition—
181
(A) continue to serve in such position; and
(B) except as otherwise provided by law—
(i) continue to perform the functions
of the Assistant Secretary for Family Sup-
port under section 417 of the Social Secu-
rity Act (as in effect before such effective
date); and
(ii) have the powers and duties of the
Assistant Secretary for Family Support
under section 416 of the Social Security
Act (as in effect pursuant to the amend-
ment made by section 103 of this Act).
TITLE II—SUPPLEMENTAL
SECURITY INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this title an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
182
Subtitle A—Eligibility Restrictions
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDI-
VIDUALS FOUND TO HAVE FRAUDULENTLY
MISREPRESENTED RESIDENCE IN ORDER TO
OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR
MORE STATES.
(a) IN
GENERAL.—Section 1614(a) (42 U.S.C.
1382c(a)) is amended by adding at the end the following
new paragraph:
‘‘(5) An individual shall not be considered an eligible
individual for the purposes of this title during the 10-year
period that begins on the date the individual is convicted
in Federal or State court of having made a fraudulent
statement or representation with respect to the place of
residence of the individual in order to receive assistance
simultaneously from 2 or more States under programs
that are funded under title IV, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under
the supplemental security income program under this
title.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
183
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS
AND PROBATION AND PAROLE VIOLATORS.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C.
1382(e)) is amended by inserting after paragraph (3) the
following new paragraph:
‘‘(4) A person shall not be considered an eligible indi-
vidual or eligible spouse for purposes of this title with re-
spect to any month if during such month the person is—
‘‘(A) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the person flees, for a crime, or an
attempt to commit a crime, which is a felony under
the laws of the place from which the person flees, or
which, in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State; or
‘‘(B) violating a condition of probation or pa-
role imposed under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION WITH LAW EN-
FORCEMENT AGENCIES.—Section 1611(e) (42 U.S.C.
1382(e)), as amended by subsection (a), is amended by
inserting after paragraph (4) the following new paragraph:
‘‘(5) Notwithstanding any other provision of law, the
Commissioner shall furnish any Federal, State, or local
law enforcement officer, upon the request of the officer,
with the current address, Social Security number, and
photograph (if applicable) of any recipient of benefits
184
under this title, if the officer furnishes the Commissioner
with the name of the recipient and notifies the Commis-
sioner that—
‘‘(A) the recipient—
‘‘(i) is described in subparagraph (A) or
(B) of paragraph (4); or
‘‘(ii) has information that is necessary for
the officer to conduct the officer’s official du-
ties; and
‘‘(B) the location or apprehension of the recipi-
ent is within the officer’s official duties.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 203. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI
DISABILITY BENEFITS.
Section 1631 (42 U.S.C. 1383) is amended by adding
at the end the following new subsection:
‘‘(o)(1) Notwithstanding any other provision of law,
if the Commissioner of Social Security determines that an
individual, who is 18 years of age or older, is eligible to
receive benefits pursuant to section 1614(a)(3), the Com-
missioner shall, at the time of the determination, either
exempt the individual from an eligibility review or estab-
185
lish a schedule for reviewing the individual’s continuing
eligibility in accordance with paragraph (2).
‘‘(2)(A) The Commissioner shall establish a periodic
review with respect to the continuing eligibility of an indi-
vidual to receive benefits, unless the individual is exempt
from review under subparagraph (C) or is subject to a
scheduled review under subparagraph (B). A periodic re-
view under this subparagraph shall be initiated by the
Commissioner not later than 30 months after the date a
determination is made that the individual is eligible for
benefits and every 30 months thereafter, unless a waiver
is granted under section 221(i)(2). However, the Commis-
sioner shall not postpone the initiation of a periodic review
for more than 12 months in any case in which such waiver
has been granted unless exigent circumstances require
such postponement.
‘‘(B)(i) In the case of an individual, other than an
individual who is exempt from review under subparagraph
(C) or with respect to whom subparagraph (A) applies,
the Commissioner shall schedule a review regarding the
individual’s continuing eligibility to receive benefits at any
time the Commissioner determines, based on the evidence
available, that there is a significant possibility that the
individual may cease to be entitled to such benefits.
186
‘‘(ii) The Commissioner may establish classifications
of individuals for whom a review of continuing eligibility
is scheduled based on the impairments that are the basis
for such individuals’ eligibility for benefits. A review of
an individual covered by a classification shall be scheduled
in accordance with the applicable classification, unless the
Commissioner determines that applying such schedule is
inconsistent with the purpose of this Act or the integrity
of the supplemental security income program.
‘‘(C)(i) The Commissioner may exempt an individual
from review under this subsection, if the individual’s eligi-
bility for benefits is based on a condition that, as a prac-
tical matter, has no substantial likelihood of improving to
a point where the individual will be able to perform sub-
stantial gainful activity.
‘‘(ii) The Commissioner may establish classifications
of individuals who are exempt from review under this sub-
section based on the impairments that are the basis for
such individuals’ eligibility for benefits. Notwithstanding
any such classification, the Commissioner may, at the time
of determining an individual’s eligibility, schedule a review
of such individual’s continuing eligibility if the Commis-
sioner determines that a review is necessary to preserve
the integrity of the supplemental security income program.
187
‘‘(3) The Commissioner may revise a determination
made under paragraph (1) and schedule a review under
paragraph (2)(B), if the Commissioner obtains credible
evidence that an individual may no longer be eligible for
benefits or the Commissioner determines that a review is
necessary to maintain the integrity of the supplemental
security income program. Information obtained under sec-
tion 1137 may be used as the basis to schedule a review.
‘‘(4)(A) The requirements of sections 1614(a)(4) and
1633 shall apply to reviews conducted under this sub-
section.
‘‘(B) Such reviews may be conducted by the applica-
ble State agency or the Commissioner, whichever is appro-
priate.
‘‘(5) Not later than 3 months after the date of the
enactment of this subsection, the Commissioner shall es-
tablish a schedule for reviewing the continuing eligibility
of each individual who is receiving benefits pursuant to
section 1614(a)(3) on such date of enactment and who
has attained 18 years of age, unless such individual is ex-
empt under paragraph (2)(C). Such review shall be sched-
uled under the procedures prescribed by or under para-
graph (2), except that the reviews shall be scheduled so
that the eligibility of 1⁄3 of all such nonexempt individuals
is reviewed within 1 year after such date of enactment,
188
the eligibility of 1⁄3 of such nonexempt individuals is re-
viewed within 1 year after such date of enactment, and
all remaining nonexempt individuals who continue receiv-
ing benefits shall have their eligibility reviewed within 3
years after such date of enactment. Each individual deter-
mined eligible to continue receiving benefits in a review
scheduled under this paragraph shall, at the time of the
determination, be subject to paragraph (2).’’.
SEC. 204. DENIAL OF SUPPLEMENTAL SECURITY INCOME
BENEFITS BY REASON OF DISABILITY TO
DRUG ADDICTS AND ALCOHOLICS.
(a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.
1382c(a)(3)) is amended by adding at the end the follow-
ing:
‘‘(I) Notwithstanding subparagraph (A), an individ-
ual shall not be considered to be disabled for purposes of
this title if alcoholism or drug addiction would (but for
this subparagraph) be a contributing factor material to
the Commissioner’s determination that the individual is
disabled.’’.
(b) REPRESENTATIVE PAYEE REQUIREMENTS.—
(1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C.
1383(a)(2)(A)(ii)(II)) is amended to read as follows:
‘‘(II) In the case of an individual eligible for benefits
under this title by reason of disability, the payment of
189
such benefits shall be made to a representative payee if
the Commissioner of Social Security determines that such
payment would serve the interest of the individual because
the individual also has an alcoholism or drug addiction
condition that prevents the individual from managing such
benefits.’’.
(2) Section 1631(a)(2)(B)(vii) (42 U.S.C.
1383(a)(2)(B)(vii)) is amended by striking ‘‘eligible
for benefits’’ and all that follows through ‘‘is dis-
abled’’ and inserting ‘‘described in subparagraph
(A)(ii)(II)’’.
(3) Section 1631(a)(2)(B)(ix)(II) (42 U.S.C.
1383(a)(2)(B)(ix)(II)) is amended by striking all
that follows ‘‘15 years, or’’ and inserting ‘‘described
in subparagraph (A)(ii)(II)’’.
(4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C.
1383(a)(2)(D)(i)(II)) is amended by striking ‘‘eligi-
ble for benefits’’ and all that follows through ‘‘is dis-
abled’’ and inserting ‘‘described in subparagraph
(A)(ii)(II)’’.
(c) TREATMENT
REFERRALS
FOR
INDIVIDUALS
WITH
AN ALCOHOLISM
OR DRUG ADDICTION CONDI-
TION.—Title XVI (42 U.S.C. 1381 et seq.) is amended
by adding at the end the following new section: