‘‘(v) the State agency otherwise deter-
mines that it is in the best interest of the
minor child to waive the requirement of
paragraph (1) with respect to such individ-
ual or minor child.
‘‘(C) SECOND-CHANCE
HOME.—For pur-
poses of this paragraph, the term ‘second-
chance home’ means an entity that provides in-
dividuals described in subparagraph (B) with a
supportive and supervised living arrangement 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 chil-
dren.
‘‘(3) ASSISTANCE TO STATES IN PROVIDING OR
LOCATING ADULT-SUPERVISED SUPPORTIVE LIVING
ARRANGEMENTS
FOR
UNMARRIED
TEENAGE
PAR-
ENTS.—
‘‘(A) IN
GENERAL.—For each of fiscal
years 1996 through 2002, each State that pro-
vides assistance under the State program to in-
dividuals described in paragraph (1)(B) shall be
entitled to receive a grant in an amount deter-
mined under subparagraph (B) for the purpose
of providing or locating adult-supervised sup-
portive living arrangements for individuals de-
scribed in paragraph (1)(B) in accordance with
this subsection.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount de-
termined under this subparagraph is an
amount that bears the same ratio to the
amount specified under clause (ii) as the
amount of the State family assistance
grant for the State for such fiscal year (de-
scribed in section 403(a)(2)) bears to the
amount appropriated for such fiscal year
in accordance with section 403(a)(4)(A).
‘‘(ii) 
AMOUNT
SPECIFIED.—The
amount specified in this subparagraph is—
‘‘(I) 
for 
fiscal 
year 
1996,
$25,000,000;
‘‘(II) 
for 
fiscal 
year 
1997,
$25,000,000; and
‘‘(III) for each of fiscal years
1998, 1999, 2000, 2001, and 2002,
$20,000,000.
‘‘(C) ASSISTANCE TO STATES IN PROVID-
ING
OR
LOCATING
ADULT-SUPERVISED
SUP-
PORTIVE LIVING ARRANGEMENTS FOR UNMAR-
RIED TEENAGE PARENTS.—There are author-
ized to be appropriated and there are appro-
priated for fiscal years 1996, 1997, 1998, 1999,
2000, 2001, and 2002 such sums specified in
subparagraph (B)(ii) for the purpose of paying
grants to States in accordance with the provi-
sions of this paragraph.
‘‘(e) REQUIREMENT THAT TEENAGE PARENTS AT-
TEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING
PROGRAM.—If a State provides assistance under the State
program funded under this part to an individual described
in subsection (d)(1)(B) who has not successfully com-
pleted a high-school education (or its equivalent) and
whose minor child is at least 12 weeks of age, the State
shall not provide such individual with assistance under the
program (or, at the option of the State, shall provide a
reduced level of such assistance) if the individual does not
participate in—
‘‘(1) educational activities directed toward the
attainment of a high school diploma or its equiva-
lent; or
‘‘(2) an alternative educational or training pro-
gram that has been approved by the State.
‘‘(f) GRANT INCREASED TO REWARD STATES THAT
REDUCE OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) IN GENERAL.—The amount of the grant
payable to a State under section 403(a)(1)(A) for
fiscal years 1998, 1999, and 2000 shall be increased
by—
‘‘(A) an amount equal the product of $25
multiplied by the number of children in the
State in families with incomes below the poverty
line, according to the most recently available
census data, if—
‘‘(i) the illegitimacy ratio of the State
for the most recent fiscal year for which
such information is available is at least 1
percentage point lower than the illegit-
imacy ratio of the State for fiscal year
1995 (or, if such information is not avail-
able, the first available year after 1995 for
which such data is available); and
‘‘(ii) the rate of induced pregnancy
terminations for the same most recent fis-
cal year in the State is not higher than the
rate of induced pregnancy terminations in
the State for fiscal year 1995 (or, the
same first available year); or
‘‘(B) an amount equal the product of $50
multiplied by the number of children in the
State in families with incomes below the poverty
line, according to the most recently available
census data, if—
‘‘(i) the illegitimacy ratio of the State
for the most recent fiscal year for which
information is available is at least 2 per-
centage points lower than the illegitimacy
ratio of the State for fiscal year 1995 (or,
if such information is not available, the
first available year after 1995 for which
such data is available); and
‘‘(ii) the rate of induced pregnancy
terminations in the State for the same
most recent fiscal year is not higher than
the rate of induced pregnancy terminations
in the State for fiscal year 1995 (or, the
same first available fiscal year).
‘‘(2) DETERMINATION OF THE SECRETARY.—
The Secretary shall not increase the grant amount
under paragraph (1) if the Secretary determines
that the relevant difference between the illegitimacy
‘‘(5) AVAILABILITY OF AMOUNTS.—There are
authorized to be appropriated and there are appro-
priated such sums as may be necessary for fiscal
years 1998, 1999, and 2000 for the purpose of in-
creasing the amount of the grant payable to a State
under section 403(a)(1) in accordance with this sub-
section.
‘‘(g) STATE OPTION TO DENY ASSISTANCE IN CER-
TAIN SITUATIONS.—Nothing in this subsection shall be
construed to restrict the authority of a State to exercise
its option to limit assistance under this part to individuals
if such limitation is not inconsistent with the provisions
of this part.
‘‘SEC. 407. STATE PENALTIES.
‘‘(a) IN GENERAL.—Subject to the provisions of sub-
section (b), the Secretary shall deduct from the grant oth-
erwise payable under section 403 the following penalties:
‘‘(1) FOR
USE
OF
GRANT
IN
VIOLATION
OF
THIS PART.—If an audit conducted under section
408 finds that an amount paid to a State under sec-
tion 403 for a fiscal year has been used in violation
of this part, then the Secretary shall reduce the
amount of the grant otherwise payable to the State
under such section for the immediately succeeding
fiscal year quarter by the amount so used. If the
State does not prove to the satisfaction of the Sec-
retary that such unlawful expenditure was not made
by the State in intentional violation of the require-
ments of this part, then the Secretary shall impose
an additional penalty of 5 percent of such grant (de-
termined without regard to this section).
‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has not, within 6 months
after the end of a fiscal year, submitted the re-
port required by section 409 for the fiscal year,
the Secretary shall reduce by 5 percent the
amount of the grant that would (in the absence
of this section) be payable to the State under
section 403 for the immediately succeeding fis-
cal year.
‘‘(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 year if the State submits the
report before the end of the immediately suc-
ceeding fiscal year.
‘‘(3) FOR FAILURE TO SATISFY MINIMUM PAR-
TICIPATION RATES.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has failed to satisfy the min-
imum participation rates specified in section
404(a) for a fiscal year, the Secretary shall re-
duce the amount of the grant that would (in the
absence of this section) be payable to the State
under section 403 for the immediately succeed-
ing fiscal year by—
‘‘(i) in the first year in which the
State fails to satisfy such rates, 5 percent;
and
‘‘(ii) in subsequent years in which the
State fails to satisfy such rates, the per-
cent reduction determined under this sub-
paragraph (if any) in the preceding year,
increased by 5 percent.
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) on the basis of
the degree of noncompliance.
‘‘(4) FOR FAILURE TO PARTICIPATE IN THE IN-
COME AND ELIGIBILITY VERIFICATION SYSTEM.—If
the Secretary determines that a State program fund-
ed under this part is not participating during a fis-
cal year in the income and eligibility verification sys-
tem required by section 1137, the Secretary shall re-
duce by not more than 5 percent the amount of the
grant that would (in the absence of this section) be
payable to the State under section 403 for the im-
mediately succeeding fiscal year.
‘‘(5) FOR FAILURE TO COMPLY WITH PATER-
NITY
ESTABLISHMENT
AND
CHILD
SUPPORT
EN-
FORCEMENT REQUIREMENTS UNDER PART D.—Not-
withstanding any other provision of this Act, if the
Secretary determines that the State agency that ad-
ministers a program funded under this part does not
enforce the penalties requested by the agency admin-
istering part D against recipients of assistance
under the State program who fail to cooperate in es-
tablishing paternity in accordance with such part,
the Secretary shall reduce by not more than 5 per-
cent the amount of the grant that would (in the ab-
sence of this section) be payable to the State under
section 403 for the immediately succeeding fiscal
year.
‘‘(6) FOR FAILURE TO TIMELY REPAY A FED-
ERAL
LOAN
FUND
FOR
STATE
WELFARE
PRO-
GRAMS.—If the Secretary determines that a State
has failed to repay any amount borrowed from the
Federal Loan Fund for State Welfare Programs es-
tablished under section 403(d) within the period of
maturity applicable to such loan, plus any interest
owed on such loan, then the Secretary shall reduce
the amount of the grant otherwise payable to the
State under section 403 for the immediately suc-
ceeding fiscal year quarter by the outstanding loan
amount, plus the interest owed on such outstanding
amount. The Secretary may not forgive any out-
standing loan amount nor interest owed thereon.
‘‘(b) REQUIREMENTS.—
‘‘(1) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(A) IN GENERAL.—In imposing the pen-
alties described in subsection (a), the Secretary
shall not reduce any quarterly payment to a
State by more than 25 percent.
‘‘(B) CARRYFORWARD
OF
UNRECOVERED
PENALTIES.—To the extent that subparagraph
(A) prevents the Secretary from recovering dur-
ing a fiscal year the full amount of all penalties
imposed on a State under subsection (a) for a
prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the
grant otherwise payable to the State under sec-
tion 403 for the immediately succeeding fiscal
year.
‘‘(2) STATE FUNDS TO REPLACE REDUCTIONS
IN GRANT.—A State which has a penalty imposed
against it under subsection (a) shall expend addi-
tional State funds in an amount equal to the amount
of the penalty for the purpose of providing assist-
ance under the State program under this part.
‘‘(3) REASONABLE
CAUSE
FOR
NONCOMPLI-
ANCE.—The Secretary may not impose a penalty on
a State under subsection (a) if the Secretary deter-
mines that the State has reasonable cause for failing
to comply with a requirement for which a penalty is
imposed under such subsection.
‘‘(c) CERTIFICATION OF AMOUNT OF PENALTIES.—
If the Secretary is required to reduce the amount of any
grant under this section, the Secretary shall certify the
amount of such reduction to the Secretary of the Treasury
and the Secretary of the Treasury shall reduce the amount
paid to the State under section 403 by such amount.
‘‘(d) EFFECTIVE DATES.—
‘‘(1) IN GENERAL.—The penalties described in
paragraphs (2) through (6) of subsection (a) shall
apply—
‘‘(A) with respect to periods beginning 6
months after the Secretary issues final rules
with respect to such penalties; or
‘‘(B) with respect to fiscal years beginning
on or after October 1, 1996;
whichever is later.
‘‘(2) MISUSE
OF
FUNDS.—The penalties de-
scribed in subsection (a)(1) shall apply with respect
to fiscal years beginning on or after October 1,
1995.
‘‘SEC. 408. AUDITS.
‘‘(a) IN GENERAL.—Each State shall, not less than
annually, audit the State expenditures from amounts re-
ceived under this part. Such audit shall—
‘‘(1) determine the extent to which such ex-
penditures were or were not expended in accordance
with this part; and
‘‘(2) be conducted by an approved entity (as de-
fined in subsection (b)) in accordance with generally
accepted auditing principles.
‘‘(b) APPROVED ENTITY.—For purposes of sub-
section (a), the term ‘approved entity’ means an entity
that—
‘‘(1) is approved by the Secretary of the Treas-
ury;
‘‘(2) is approved by the chief executive officer
of the State; and
‘‘(3) is independent of any agency administer-
ing activities funded under this part.
‘‘(c) AUDIT REPORT.—Not later than 30 days follow-
ing the completion of an audit under this subsection, a
State shall submit a copy of the audit to the State legisla-
ture, the Secretary of the Treasury, and the Secretary of
Health and Human Services.
‘‘(d) ADDITIONAL ACCOUNTING REQUIREMENTS.—
The provisions of chapter 75 of title 31, United States
Code, shall apply to the audit requirements of this section.
‘‘SEC. 409. DATA COLLECTION AND REPORTING.
‘‘(a) IN GENERAL.—The Secretary, in consultation
with State and local government officials and other inter-
ested persons, shall develop a quality assurance system of
data collection and reporting that promotes accountability
and ensures the improvement and integrity of programs
funded under this part.
‘‘(b) STATE SUBMISSIONS.—
‘‘(1) IN GENERAL.—Not later than the 15th
day of the first month of each calendar quarter,
each State to which a grant is made under section
403(f) shall submit to the Secretary the data de-
scribed in paragraphs (2) and (3) with respect to
families described in paragraph (4).
‘‘(2) DISAGGREGATED DATA DESCRIBED.—The
data described in this paragraph with respect to
families described in paragraph (4) is a sample of
monthly disaggregated case record data containing
the following:
‘‘(A) The age of the adults and children
(including pregnant women) in each family.
‘‘(B) The marital and familial status of
each member of the family (including whether
the family is a 2-parent family and whether a
child is living with an adult relative other than
a parent).
‘‘(C) The gender, educational level, work
experience, and race of the head of each family.
‘‘(D) The health status of each member of
the family (including whether any member of
the family is seriously ill, disabled, or incapaci-
tated and is being cared for by another member
of the family).
‘‘(E) The type and amount of any benefit
or assistance received by the family, including—
‘‘(i) the amount of and reason for any
reduction in assistance, and
‘‘(ii) if assistance is terminated,
whether termination is due to employment,
sanction, or time limit.
‘‘(F) Any benefit or assistance received by
a member of the family with respect to housing,
food stamps, job training, or the Head Start
program.
‘‘(G) The number of months since the fam-
ily filed the most recent application for assist-
ance under the program and if assistance was
denied, the reason for the denial.
‘‘(H) The number of times a family has
applied for and received assistance under the
State program and the number of months as-
sistance has been received each time assistance
has been provided to the family.
‘‘(I) The employment status of the adults
in the family (including the number of hours
worked and the amount earned).
‘‘(J) The date on which an adult in the
family began to engage in work, the number of
hours the adult engaged in work, the work ac-
tivity in which the adult participated, and the
amount of child care assistance provided to the
adult (if any).
‘‘(K) The number of individuals in each
family receiving assistance and the number of
individuals in each family not receiving assist-
ance, and the relationship of each individual to
the youngest child in the family.
‘‘(L) The citizenship status of each mem-
ber of the family.
‘‘(M) The housing arrangement of each
member of the family.
‘‘(N) The amount of unearned income,
child support, assets, and other financial factors
considered in determining eligibility for assist-
ance under the State program.
‘‘(O) The location in the State of each
family receiving assistance.
‘‘(P) Any other data that the Secretary de-
termines is necessary to ensure efficient and ef-
fective program administration.
‘‘(3) AGGREGATED MONTHLY DATA.—The data
described in this paragraph is the following aggre-
gated monthly data with respect to the families de-
scribed in paragraph (4):
‘‘(A) The number of families.
‘‘(B) The number of adults in each family.
‘‘(C) The number of children in each fam-
ily.
‘‘(D) The number of families for which as-
sistance has been terminated because of em-
ployment, sanctions, or time limits.
‘‘(4) FAMILIES DESCRIBED.—The families de-
scribed in this paragraph are—
‘‘(A) families receiving assistance under a
State program funded under this part for each
month in the calendar quarter preceding the
calendar quarter in which the data is submit-
ted;
‘‘(B) families applying for such assistance
during such preceding calendar quarter; and
‘‘(C) families that became ineligible to re-
ceive such assistance during such preceding cal-
endar quarter.
‘‘(5) APPROPRIATE
SUBSETS
OF
DATA
COL-
LECTED.—The Secretary shall determine appro-
priate subsets of the data described in paragraphs
(2) and (3) that a State is required to submit under
paragraph (1) with respect to families described in
subparagraphs (B) and (C) of paragraph (4).
‘‘(6) SAMPLING
AND
OTHER
METHODS.—The
Secretary shall provide the States with such case
sampling plans and data collection procedures as the
Secretary deems necessary to produce statistically
valid estimates of each State’s program perform-
ance. The Secretary is authorized to develop and im-
plement procedures for verifying the quality of data
submitted by the States.
‘‘(c) REPORT
ON USE
OF FEDERAL FUNDS TO
COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The
report required by subsection (a) for a fiscal year shall
include a statement of—
‘‘(1) the total amount and percentage of the
Federal funds paid to the State under this part for
the fiscal year that are used to cover administrative
costs or overhead; and
‘‘(2) the total amount of State funds that are
used to cover such costs or overhead.
‘‘(d) REPORT ON STATE EXPENDITURES ON PRO-
GRAMS FOR NEEDY FAMILIES.—The report required by
subsection (a) for a fiscal year shall include a statement
of the total amount expended by the State during the fis-
cal year on the program under this part and the purposes
for which such amount was spent.
‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI-
PATING IN WORK ACTIVITIES.—The report required by
subsection (a) for a fiscal year shall include the number
of noncustodial parents in the State who participated in
work activities during the fiscal year.
‘‘(f) REPORT ON CHILD SUPPORT COLLECTED.—The
report required by subsection (a) for a fiscal year shall
include the total amount of child support collected by the
State agency administering the State program under part
D on behalf of a family receiving assistance under this
part.
‘‘(g) REPORT ON CHILD CARE.—The report required
by subsection (a) for a fiscal year shall include the total
amount expended by the State for child care under the
program under this part, along with a description of the
types of child care provided, including child care provided
in the case of a family that—
‘‘(1) has ceased to receive assistance under this
part because of employment; or
‘‘(2) is not receiving assistance under this part
but would be at risk of becoming eligible for such as-
sistance if child care was not provided.
‘‘(h) REPORT ON TRANSITIONAL SERVICES.—The re-
port required by subsection (a) for a fiscal year shall in-
clude the total amount expended by the State for providing
transitional services to a family that has ceased to receive
assistance under this part because of employment, along
with a description of such services.
‘‘(i) SECRETARY’S REPORT ON DATA PROCESSING.—
‘‘(1) IN GENERAL.—Not later than 6 months
after the date of the enactment of the Work Oppor-
tunity Act of 1995, the Secretary shall prepare and
submit to the Congress a report on—
‘‘(A) the status of the automated data
processing systems operated by the States to
assist management in the administration of
State programs under this part (whether in ef-
fect before or after October 1, 1995); and
‘‘(B) what would be required to establish a
system capable of—
‘‘(i) tracking participants in public
programs over time; and
‘‘(ii) checking case records of the
States to determine whether individuals
are participating in public programs in 2
or more States.
‘‘(2) PREFERRED CONTENTS.—The report re-
quired by paragraph (1) should include—
‘‘(A) a plan for building on the automated
data processing systems of the States to estab-
lish a system with the capabilities described in
paragraph (1)(B); and
‘‘(B) an estimate of the amount of time re-
quired to establish such a system and of the
cost of establishing such a system.
‘‘(j) REPORT
TO CONGRESS.—Not later than 6
months after the end of fiscal year 1997, and each fiscal
year thereafter, the Secretary shall transmit to the Con-
gress a report describing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in
section 404(a); and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earn-
ings of needy families, and child support
collections; and
‘‘(ii) decreasing out-of-wedlock preg-
nancies and child poverty;
‘‘(3) the demographic and financial characteris-
tics of families applying for assistance, families re-
ceiving assistance, and families that become ineli-
gible to receive assistance;
‘‘(4) the characteristics of each State program
funded under this part; and
‘‘(5) the trends in employment and earnings of
needy families with minor children.
‘‘SEC. 410. 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.
‘‘(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 with re-
spect to recipients of assistance under programs
funded under this part. The Secretary may provide
funds for training and technical assistance to carry
out the approaches developed pursuant to this para-
graph.
‘‘(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-
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 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 paid
under section 403 based on the following rank-
ing factors (developed with information reported
by the State under section 409(a)(13)):
‘‘(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)
for the most recent fiscal year for which
information is available and such State’s
ratio determined for the 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).
‘‘(f) STUDY
ON ALTERNATIVE OUTCOMES MEAS-
URES.—
‘‘(1) STUDY.—The Secretary shall, in coopera-
tion with the States, study and analyze outcomes
measures for evaluating the success of a State in
moving individuals out of the welfare system through
employment as an alternative to the minimum par-
ticipation rates described in section 404. The study
shall include a determination as to whether such al-
ternative outcomes measures should be applied on a
national or a State-by-State basis and a preliminary
assessment of the job placement performance bonus
established under section 403(f).
‘‘(2) 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 findings of the study described
in paragraph (1).
‘‘(g) STATE-INITIATED STUDIES.—A State shall be
eligible to receive funding to evaluate the State’s family
assistance program funded under this part if—
‘‘(1) the State submits a proposal to the Sec-
retary for such 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 provides a non-Federal share of at least 10
percent of the cost of such study.
‘‘SEC. 411. 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 Work Opportunity Act of 1995 on
a random national sample of recipients of assistance under
State programs funded under this part and (as appro-
priate) other low-income families, and in doing so, shall
pay particular attention to the issues of out-of-wedlock
births, welfare dependency, the beginning and end of wel-
fare spells, and the causes of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
the Secretary of the Treasury shall pay to the Bureau of
the Census $10,000,000 for each of fiscal years 1996,
1997, 1998, 1999, and 2000 to carry out subsection (a).
‘‘SEC. 412. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if any waiver granted to a State under
section 1115 or otherwise which relates to the provi-
sion of assistance under a State plan under this part
is in effect or approved by the Secretary as of Octo-
ber 1, 1995, the amendments made by the Work Op-
portunity Act of 1995 shall not apply with respect
100
described in subsection (a) shall be held harm-
less for accrued cost neutrality liabilities in-
curred under the terms and conditions of such
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 Work Opportunity
Act of 1995.
‘‘(c) SECRETARIAL ENCOURAGEMENT OF CURRENT
WAIVERS.—The Secretary shall encourage any State oper-
ating a waiver described in subsection (a) to continue such
waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result
or effect of such waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A
State may elect to continue one or more individual waivers
described in subsection (a)(1).
‘‘SEC. 413. STATE AND COUNTY DEMONSTRATION PRO-
GRAMS.
‘‘(a) NO LIMITATION OF STATE DEMONSTRATION
PROJECTS.—Nothing in this part shall be construed as
101
limiting a State’s ability to conduct demonstration
projects for the purpose of identifying innovative or effec-
tive program designs in 1 or more political subdivisions
of the State: Provided, That such State contains more
than one county with a population of greater than
500,000.
‘‘(b) 
COUNTY
WELFARE
DEMONSTRATION
PROJECT.—
‘‘(1) IN GENERAL.—The Secretary of Health
and Human Services and the Secretary of Agri-
culture shall jointly enter into negotiations with all
counties having a population greater than 500,000
desiring to conduct a demonstration project de-
scribed in paragraph (2) for the purpose of estab-
lishing appropriate rules to govern the establishment
and operation of such project.
‘‘(2) DEMONSTRATION PROJECT DESCRIBED.—
The demonstration project described in this para-
graph shall provide that—
‘‘(A) a county participating in the dem-
onstration project shall have the authority and
duty to administer the operation of the program
described under this part as if the county were
considered a State for the purpose of this part;
102
‘‘(B) the State in which the county partici-
pating in the demonstration project is located
shall pass through directly to the county the
portion of the grant received by the State under
section 403 which the State determines is at-
tributable to the residents of such county; and
‘‘(C) the duration of the project shall be
for 5 years.
‘‘(3) COMMENCEMENT OF PROJECT.—After the
conclusion of the negotiations described in para-
graph (2), the Secretary of Health and Human
Services and the Secretary of Agriculture may au-
thorize a county to conduct the demonstration
project described in paragraph (2) in accordance
with the rules established during the negotiations.
‘‘(4) REPORT.—Not later then 6 months after
the termination of a demonstration project operated
under this subsection, the Secretary of Health and
Human Services and the Secretary of Agriculture
shall submit to the Congress a report that in-
cludes—
‘‘(A) a description of the demonstration
project;
‘‘(B) the rules negotiated with respect to
the project; and
103
‘‘(C) the innovations (if any) that the
county was able to initiate under the project.
‘‘(5) ELIGIBLE COUNTY.—A county may par-
ticipate in a demonstration project under this sub-
section if the county is—
‘‘(A) a county that is already administer-
ing the welfare program under this part;
‘‘(B) represents less than 25 percent of the
State’s total welfare caseload.
‘‘SEC. 414. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
‘‘(a) PURPOSE.—The purpose of this section is—
‘‘(1) to strengthen and enhance the control and
flexibility of local governments over local programs;
and
‘‘(2) in recognition of the principles contained
in the Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 450 et seq.)—
‘‘(A) to provide direct Federal funding to
Indian tribes for the tribal administration of
the program funded under this part; or
‘‘(B) to enable Indian tribes to enter into
agreements, contracts, or compacts with inter-
tribal consortia, States, or other entities for the
104
administration of such program on behalf of the
Indian tribe.
‘‘(b) GRANT AMOUNTS FOR INDIAN TRIBES.—
‘‘(1) IN
GENERAL.—For each of fiscal years
1996, 1997, 1998, 1999, and 2000, the Secretary
shall pay to each Indian tribe that has an approved
tribal family assistance plan a tribal family assist-
ance grant for the fiscal year in an amount equal to
the amount determined under paragraph (2).
‘‘(2) AMOUNT DETERMINED.—
‘‘(A) IN
GENERAL.—The amount deter-
mined under this paragraph is an amount equal
to the total amount of the Federal payments to
a State or States under section 403 for fiscal
year 1994 (as in effect during such fiscal year)
attributable to expenditures by the State or
States under part A and part F of this title (as
so in effect) in such year for Indian families re-
siding in the service area or areas identified by
the Indian tribe in subsection (c)(1)(C).
‘‘(B) USE OF STATE SUBMITTED DATA.—
‘‘(i) IN
GENERAL.—The Secretary
shall use State submitted data to make
each determination under subparagraph
(A).
105
‘‘(ii) DISAGREEMENT
WITH
DETER-
MINATION.—If an Indian tribe or tribal or-
ganization disagrees with State submitted
data described under clause (i), the Indian
tribe or tribal organization may submit to
the Secretary such additional information
as may be relevant to making the deter-
mination under subparagraph (A) and the
Secretary may consider such information
before making such determination.
‘‘(c) 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 the purposes of 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;
106
‘‘(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-
107
sion of a single plan by the participating Indian
tribes of an intertribal consortium.
‘‘(d) 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 such grant, and
penalties 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
404(d).
‘‘(e) EMERGENCY ASSISTANCE.—Nothing in this sec-
tion shall preclude an Indian tribe from seeking emergency
assistance from any Federal loan program or emergency
fund.
‘‘(f) 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
108
‘‘(2) the requirements of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450 et seq.).
‘‘(g) TRIBAL PENALTIES.—For the purpose of ensur-
ing the proper use of tribal family assistance grants, the
following provisions shall apply to an Indian tribe with an
approved tribal assistance plan:
‘‘(1) The provisions of subsections (a)(1),
(a)(6), and (b) of section 407, in the same manner
as such subsections apply to a State.
‘‘(2) The provisions of section 407(a)(3), except
that such subsection shall be applied by substituting
‘the minimum requirements established under sub-
section (d) of section 414’ for ‘the minimum partici-
pation rates specified in section 404’.
‘‘(h) DATA COLLECTION AND REPORTING.—For the
purpose of ensuring uniformity in data collection, section
409 shall apply to an Indian tribe with an approved tribal
family assistance plan.
‘‘(i) 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
109
under this section shall use such grant to operate a
program in accordance with the requirements appli-
cable to the program of the State of Alaska funded
under this part.
‘‘(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. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D of this
title shall be administered by an Assistant Secretary for
Family Support within the Department of Health and
Human Services, 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. 416. LIMITATION ON FEDERAL AUTHORITY.
‘‘The Secretary of Health and Human Services and
the Secretary of the Treasury may not regulate the con-
duct of States under this part or enforce any provision
of this part, except to the extent expressly provided in this
part.
‘‘SEC. 417. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—The Secretary shall notify the
chief executive officer of a State of any adverse decision
110
or action under this part, including any decision with re-
spect to the State’s plan or the imposition of a penalty
under section 407.
‘‘(b) ADMINISTRATIVE REVIEW OF ADVERSE DECI-
SION.—
‘‘(1) IN GENERAL.—Within 60 days after the
date a State receives notice of an adverse decision
under this section, the State may appeal the deci-
sion, in whole or in part, to the Departmental Ap-
peals Board established in the Department of Health
and Human Services (hereafter referred to in this
section as the ‘Board’) by filing an appeal with the
Board.
‘‘(2) PROCEDURAL
RULES.—The Board shall
consider a State’s appeal on the basis of such docu-
mentation as the State may submit and as the
Board may require to support the final decision of
the Board. In deciding whether to uphold an adverse
decision or any portion thereof, the Board shall con-
duct a thorough review of the issues and take into
account all relevant evidence. The Board shall make
a final determination with respect to an appeal filed
under this paragraph not less than 60 days after the
date the appeal is filed.
‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
111
‘‘(1) IN GENERAL.—Within 90 days after the
date of a final decision by the Board with respect to
an adverse decision regarding a State under this sec-
tion, 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 shall review the final deci-
sion of the Board on the record established in the
administrative proceeding, in accordance 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 submitted to the
Board.
‘‘SEC. 418. PERFORMANCE BONUS AND HIGH PERFORM-
ANCE BONUS.
‘‘(a) IN GENERAL.—
112
‘‘(1) PERFORMANCE
BONUS.—In addition to
the State family assistance grant, for fiscal year
2000, the Secretary shall pay to each qualified State
an amount equal to the State’s share of the perform-
ance bonus fund described in paragraph (3).
‘‘(2) QUALIFIED STATE.—For purposes of this
subsection, the term ‘qualified State’ means a State
that during the measurement period—
‘‘(A) exceeds the overall average perform-
ance achieved by all States with respect to a
measurement category, or
‘‘(B) improves the State’s performance in
a measurement category by at least 15 percent
over the State’s baseline period.
‘‘(3) BONUS FUND.—The amount of the bonus
fund for fiscal year 2000 shall be an amount equal
to 5 percent of the amount appropriated under sec-
tion 403(a)(2)(A) for such fiscal year.
‘‘(b) HIGH PERFORMANCE BONUS.—
‘‘(1) IN GENERAL.—In addition to the amount
provided under subsection (a), each of the 10 high
performance States in each measurement category
shall be entitled to receive a share of the high per-
formance bonus fund described in paragraph (3).
113
‘‘(2) HIGH PERFORMANCE STATES.—For pur-
poses of this subsection, the term ‘high performance
States’ means with respect to each measurement
category during the measurement period—
‘‘(A) the 5 States that have the highest
percentage of improvement with respect to the
State’s performance in the measurement cat-
egory over the State’s baseline period; and
‘‘(B) the 5 States that have the highest
overall average performance with respect to the
measurement category.
‘‘(3) HIGH
PERFORMANCE
BONUS
FUND.—
There are authorized to be appropriated and there
are appropriated the amount of the high perform-
ance bonus fund for fiscal year 2000 equal to the
amount of the reduction in State family assistance
grants for all States for fiscal years 1996, 1997,
1998, and 1999 resulting from the application of
section 407.
‘‘(c) DEFINITIONS AND SPECIAL RULES.— For pur-
poses of this section:
‘‘(1) MEASUREMENT
CATEGORY.—A measure-
ment category means any of the following categories:
‘‘(A) A reduction in the average length of
time families in the State receive assistance
114
during a fiscal year under the State program
funded under this part.
‘‘(B) An increase in the percentage of fam-
ilies receiving such assistance under this part
that receive child support payments under part
D.
‘‘(C) An increase in the number of families
that received assistance under a State program
funded under this part in the preceding fiscal
year that became ineligible for assistance under
the State program as a result of unsubsidized
employment during such year.
‘‘(D) An increase in the amount earned by
families that receive assistance under this part.
‘‘(E) A reduction in the percentage of fam-
ilies that become eligible for assistance under
this part within 18 months after becoming ineli-
gible for such assistance.
‘‘(2) MEASUREMENT PERIOD; BASELINE PE-
RIOD.—
‘‘(A) MEASUREMENT PERIOD.—The term
‘measurement period’ means the period begin-
ning not later than 6 months after the date of
the enactment of the Work Opportunity Act of
1995 and ending on September 30, 1999.
115
‘‘(B) BASELINE PERIOD.—The term ‘base-
line period’ means fiscal year 1994.
‘‘(3) ALLOCATION FORMULA.—For purposes of
determining a State’s share of the performance
bonus fund under subsection (a)(1), and the State’s
share of the high performance bonus fund under
subsection (b)(1), the Secretary shall, not later than
June 30, 1999, develop and publish in the Federal
Register a formula for allocating amounts in the
performance bonus fund to qualified States and a
formula for allocating amounts in the high perform-
ance bonus fund to high performance States. Such
formulas shall be based on each State’s proportional
share of the total amount appropriated under section
403(a)(2)(A) for fiscal year 2000.
‘‘SEC. 419. AMOUNTS FOR CHILD CARE.
‘‘(a) CHILD CARE ALLOCATION.—
‘‘(1) IN GENERAL.—From the amount appro-
priated under section 403(a)(4)(A) for a fiscal year,
the Secretary shall set aside an amount equal to the
total amount of the Federal payments for fiscal year
1994 to States under section—
‘‘(A) 402(g)(3)(A) of this Act (as such sec-
tion was in effect before October 1, 1995) for
116
amounts expended for child care pursuant to
paragraph (1) of such section;
‘‘(B) 403(l)(1)(A) of this Act (as so in ef-
fect) for amounts expended for child care pur-
suant to section 402(g)(1)(A) of this Act, in the
case of a State with respect to which section
1108 of this Act applies; and
‘‘(C) 403(n) of this Act (as so in effect)
for child care services pursuant to section
402(i) of this Act.
‘‘(2) DISTRIBUTION.—From amounts set aside
for a fiscal year under paragraph (1), the Secretary
shall pay to a State an amount equal to the total
amounts of Federal payments for fiscal year 1994 to
the State under section—
‘‘(A) 402(g)(3)(A) of this Act (as such sec-
tion was in effect before October 1, 1995) for
amounts expended for child care pursuant to
paragraph (1) of such section;
‘‘(B) 403(l)(1)(A) of this Act (as so in ef-
fect) for amounts expended for child care pur-
suant to section 402(g)(1)(A) of this Act, in the
case of a State with respect to which section
1108 of this Act applies; and
117
‘‘(C) 403(n) of this Act (as so in effect)
for child care services pursuant to section
402(i) of this Act.
‘‘(3) USE OF FUNDS.—Amounts received by a
State under paragraph (2) shall only be used to pro-
vide child care assistance under this part.
‘‘(4) FEDERAL
PAYMENTS.—For purposes of
paragraphs (1) and (2), Federal payments for fiscal
year 1994 means such payments as reported by the
State on February 14, 1995.
‘‘(b) ADDITIONAL APPROPRIATION.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated 
and 
there 
are 
appropriated,
$3,000,000,000 to be distributed to the States dur-
ing the 5-fiscal year period beginning in fiscal year
1996 for the provision of child care assistance.
‘‘(2) DISTRIBUTION.—
‘‘(A) IN
GENERAL.—The Secretary shall
use amounts made available under paragraph
(1) to make grants to States. The total amount
of grants awarded to a State under this para-
graph shall be based on the formula used for
determining the amount of Federal payments to
the State for fiscal year 1994 under section
403(n) (as such section was in effect before Oc-
118
tober 1, 1995) for child care services pursuant
to section 402(i) as such amount relates to the
total amount of such Federal payments to all
States for such fiscal year.
‘‘(B) FISCAL YEAR 2000.—With respect to
the last quarter of fiscal year 2000, if the Sec-
retary determines that any allotment to a State
under this subsection will not be used by such
State for carrying out the purpose for which the
allotment is available, the Secretary shall make
such allotment available for carrying out such
purpose to 1 or more other States which apply
for such funds to the extent the Secretary de-
termines that such other States will be able to
use such additional allotments for carrying out
such purpose. Such available allotments shall be
reallocated to a State pursuant to section
402(i) (as such section was in effect before Oc-
tober 1, 1995) by substituting ‘the number of
children residing in all States applying for such
funds’ for ‘the number of children residing in
the United States in the second preceding fiscal
year’. Any amount made available to a State
from an appropriation for a fiscal year in ac-
cordance with the preceding sentence shall, for
119
purposes of this part, be regarded as part of
such State’s payment (as determined under this
subsection) for such year.
‘‘(3) AMOUNT OF FUNDS.—The Secretary shall
pay to each eligible State in a fiscal year an amount
equal to the Federal medical assistance percentage
for such State for such fiscal year (as defined in sec-
tion 1905(b)) of so much of the expenditures by the
State for child care in such year as exceed the State
set-aside for such State under subsection (a) for
such year and the amount of State expenditures in
fiscal year 1994 that equal the non-Federal share
for the programs described in subparagraphs (A),
(B) and (C) of subsection (a)(1).
‘‘(4) BUDGET SCORING.—Notwithstanding sec-
tion 257(b)(2) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this sub-
section after fiscal year 2000.
‘‘(c) ADMINISTRATIVE PROVISIONS.—
‘‘(1) STATE OPTION.—For purposes of section
402(a)(1)(B), a State may, at its option, not require
a single parent with a child under the age of 6 to
participate in work for more than an average of 20
hours per week during a month and may count such
120
parent as being engaged in work for a month for
purposes, of section 404(c)(1) if such parent partici-
pates in work for an average of 20 hours per week
during such month.
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in
this section shall be construed to provide an entitle-
ment to child care services to any child.
‘‘SEC. 420. ELIGIBILITY FOR CHILD CARE ASSISTANCE.
Notwithstanding section 658T of the Child Care and
Development Block Grant Act of 1990, the State agency
specified in section 402(a)(6) shall determine eligibility for
child care assistance provided under this part in accord-
ance with criteria determined by the State.
‘‘SEC. 421. COLLECTION OF OVERPAYMENTS FROM FED-
ERAL TAX REFUNDS.
‘‘(a) IN GENERAL.—Upon receiving notice from the
Secretary of Health and Human Services that a State
agency administering a plan approved under this part has
notified the Secretary that a named individual has been
overpaid under the State plan approved under this part,
the Secretary of the Treasury shall determine whether any
amounts as refunds of Federal taxes paid are payable to
such individual, regardless of whether such individual filed
a tax return as a married or unmarried individual. If the
Secretary of the Treasury finds that any such amount is
121
payable, the Secretary shall withhold from such refunds
an amount equal to the overpayment sought to be collected
by the State and pay such amount to the State agency.
‘‘(b) REGULATIONS.—The Secretary of the Treasury
shall issue regulations, after review by the Secretary of
Health and Human Services, that provide—
‘‘(1) that a State may only submit under sub-
section (a) requests for collection of overpayments
with respect to individuals—
‘‘(A) who are no longer receiving assist-
ance under the State plan approved under this
part,
‘‘(B) with respect to whom the State has
already taken appropriate action under State
law against the income or resources of the indi-
viduals or families involved to collect the past-
due legally enforceable debt; and
‘‘(C) to whom the State agency has given
notice of its intent to request withholding by
the Secretary of the Treasury from the income
tax refunds of such individuals;
‘‘(2) that the Secretary of the Treasury will
give a timely and appropriate notice to any other
person filing a joint return with the individual whose
122
refund is subject to withholding under subsection
(a); and
‘‘(3) the procedures that the State and the Sec-
retary of the Treasury will follow in carrying out
this section which, to the maximum extent feasible
and consistent with the specific provisions of this
section, will be the same as those issued pursuant to
section 464(b) applicable to collection of past-due
child support.’’.
(c) CONFORMING AMENDMENTS RELATING TO COL-
LECTION OF OVERPAYMENTS.—
(1) Section 6402 of the Internal Revenue Code
of 1986 (relating to authority to make credits or re-
funds) is amended—
(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
123
to subsections (c) and (d), but before a credit against fu-
ture liability for an internal revenue tax) in accordance
with section 421 of the Social Security Act (concerning
recovery of overpayments to individuals under State plans
approved under part A of title IV of such Act).’’.
(2) Paragraph (10) of section 6103(l) of such
Code is amended—
(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
6402(e) shall only be disclosed to officers and
employees of the State agency requesting such
information.’’.
(3) The matter preceding subparagraph (A) of
section 6103(p)(4) of such Code is amended—
(A) by striking ‘‘(5), (10)’’ and inserting
‘‘(5)’’; and
(B) by striking ‘‘(9), or (12)’’ and insert-
ing ‘‘(9), (10), or (12)’’.
(4) 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 insert-
124
ing ‘‘section 421, 464, or 1137 of the Social Secu-
rity Act.’’.
SEC. 102. SERVICES PROVIDED BY CHARITABLE, RELI-
GIOUS, OR PRIVATE ORGANIZATIONS.
(a) IN GENERAL.—
(1) STATE
OPTIONS.—Notwithstanding any
other provision of law, a State may—
(A) administer and provide services under
the programs described in subparagraphs (A)
and (B)(i) of paragraph (2) through contracts
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 101).
(B) Any other program that is established
or modified under titles I, II, or X that—
125
(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 religious organizations to contract,
or to accept certificates, vouchers, or other forms of dis-
bursement under any program described in subsection
(a)(2), on the same basis as any other 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.—Religious organizations are eligible, on the
same basis as any other private organization, as contrac-
tors to provide assistance, or to accept certificates, vouch-
ers, or other forms of disbursement, under any program
described in subsection (a)(2) so long as the programs are
implemented consistent with the Establishment Clause of
the United States Constitution. Neither the Federal Gov-
ernment nor a State receiving funds under such programs
shall discriminate against an organization which is or ap-
plies to be a contractor to provide assistance, or which
126
accepts certificates, vouchers, or other forms of disburse-
ment, on the basis that the organization has a religious
character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) 
RELIGIOUS
ORGANIZATIONS.—Notwith-
standing any other provision of law, any religious or-
ganization with a contract described in subsection
(a)(1)(A), or which accepts certificates, vouchers, or
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.—
127
(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) with assistance from an alternative pro-
vider 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) NONDISCRIMINATION IN EMPLOYMENT.—
(1) IN GENERAL.—Except as provided in para-
graph (2), nothing in this section shall be construed
to modify or affect the provisions of any other Fed-
eral or State law or regulation that relates to dis-
crimination in employment on the basis of religion.
(2) EXCEPTION.—A religious organization with
a contract described in subsection (a)(1)(A), or
which accepts certificates, vouchers, or other forms
of disbursement under subsection (a)(1)(B), may re-
128
quire that an employee rendering service pursuant to
such contract, or pursuant to the organization’s ac-
ceptance of certificates, vouchers, or other forms of
disbursement adhere to—
(A) the religious tenets and teachings of
such organization; and
(B) any rules of the organization regarding
the use of drugs or alcohol.
(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
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.
129
(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.—A religious organization which has
its rights under this section violated may enforce its claim
exclusively by asserting a civil action for such relief as may
be appropriate, including injunctive relief or damages, in
an appropriate State court against the entity or agency
that allegedly commits such violation.
SEC. 103. LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.
No funds provided directly to institutions or organi-
zations to provide services and administer programs de-
scribed in section 102(a)(2) and programs established or
modified under this Act shall be expended for sectarian
worship or instruction. This section shall not apply to fi-
nancial assistance provided to or on behalf of beneficiaries
of assistance in the form of certificates, vouchers, or other
forms of disbursement, if such beneficiary may choose
where such assistance shall be redeemed.
130
SEC. 104. CONTINUED APPLICATION OF CURRENT STAND-
ARDS UNDER MEDICAID PROGRAM.
(a) IN GENERAL.—Title XIX (42 U.S.C. 1396 et
seq.) is amended—
(1) in section 1931, by inserting ‘‘subject to
section 1931(a),’’ after ‘‘under this title,’’ and by re-
designating such section as section 1932; and
(2) by inserting after section 1930 the following
new section:
‘‘CONTINUED APPLICATION OF AFDC STANDARDS
‘‘SEC. 1931. (a) For purposes of applying this title
on and after October 1, 1995, with respect to a State—
‘‘(1) except as provided in paragraph (2), any
reference in this title (or other provision of law in
relation to the operation of this title) to a provision
of part A of title IV of this Act, or a State plan
under such part, shall be considered a reference to
such provision or plan as in effect as of June 1,
1995, with respect to the State and eligibility for
medical assistance under this title shall be deter-
mined as if such provision or plan (as in effect as
of such date) had remained in effect on and after
October 1, 1995; and
‘‘(2) any reference in section 1902(a)(5) or
1902(a)(55) to a State plan approved under part A
of title IV shall be deemed a reference to a State
131
program funded under such part (as in effect on and
after October 1, 1995).
‘‘(b) In the case of a waiver of a provision of part
A of title IV in effect with respect to a State as of June
1, 1995, if the waiver affects eligibility of individuals for
medical assistance under this title, such waiver may, at
the option of the State, continue to be applied in relation
to this title after the date the waiver would otherwise ex-
pire.’’.
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.
1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(61);
(2) by striking the period at the end of para-
graph (62) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (62) the fol-
lowing new paragraph:
‘‘(63) provide for continuing to administer eligi-
bility standards with respect to individuals who are
(or seek to be) eligible for medical assistance based
on the application of section 1931.’’.
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section
1902(c) (42 U.S.C. 1396a(c)) is amended by striking
‘‘if—’’ and all that follows and inserting the following: ‘‘if
the State requires individuals described in subsection
132
(l)(1) to apply for assistance under the State program
funded under part A of title IV as a condition of applying
for or receiving medical assistance under this title.’’.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended
by striking paragraph (9).
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to medical assistance furnished for
calendar quarters beginning on or after October 1, 1995.
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 (hereafter in this section referred to as the ‘‘Sec-
retary’’), in carrying out the provisions of section 141 of
title 13, United States Code, shall expand the data collec-
tion efforts of the Bureau of the Census (hereafter in this
section referred to as the ‘‘Bureau’’) to enable the Bureau
to collect statistically significant 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
the provisions of subsection (a), the Secretary shall expand
the Bureau’s census question that details households
which include both grandparents and their grandchildren.
133
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.
SEC. 105A. DEVELOPMENT OF PROTOTYPE OF COUNTER-
FEIT-RESISTANT SOCIAL SECURITY CARD RE-
QUIRED.
(a) DEVELOPMENT.—
(1) IN GENERAL.—The Commissioner of Social
Security (hereafter in this section referred to as the
‘‘Commissioner’’) shall in accordance with the provi-
sions of this section develop a prototype of a coun-
terfeit-resistant social security 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
134
(C) be developed so as to provide individ-
uals with reliable proof of citizenship or legal
resident alien status.
(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 achieve the purposes of
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 feasibility
and cost implications of imposing a user fee for re-
placement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3, 5,
and 10 year phase-in options.
(3) DISTRIBUTION OF REPORT.—Copies of the
report described in this subsection along with a fac-
simile of the prototype card as described in sub-
135
section (a) shall be submitted to the Committees on
Ways and Means and Judiciary of the House of
Representatives and the Committees on Finance and
Judiciary of the Senate within l year of the date of
the enactment of this Act.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated and are appropriated
from the Federal Old-Age and Survivors Insurance Trust
Fund such sums as may be necessary to carry out the
purposes of this section.
SEC. 106. 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—
(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’’.
136
(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
(C) by striking ‘‘402(a)(26) or’’.
(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
137
(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 a 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-
vided under the State program funded under part A
or aid is being paid under the State’s plan approved
under part E’’.
(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
138
State program funded under part A or aid was being
paid under the State’s plan approved under part E’’.
(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)’’.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(11) Section 454 (42 U.S.C. 654)) is amend-
ed—
(A) in paragraph (5)(A)—
(i) 
by 
striking 
‘‘under 
section
402(a)(26)’’; and
139
(ii) 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
(B) in paragraph (6)(D), by striking ‘‘aid
under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’.
(12) Section 456 (42 U.S.C. 656) is amended—
(A) in subsection (a)(1), by striking
‘‘under section 402(a)(26)’’; and
(B) by striking subsection (b) and insert-
ing the following:
‘‘(b) A debt which is a support obligation enforceable
under this title is not released by a discharge in bank-
ruptcy under title 11, United States Code.’’.
(13) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘402(a)(26)
or’’.
(14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
140
(15) 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 June 1, 1995)’’ 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)—
(i) by striking ‘‘would meet’’ and in-
serting ‘‘would have met’’;
141
(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
(as so in effect). For purposes of title XX, any child with
respect to whom foster care maintenance payments are
142
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)—
(i) by inserting ‘‘would have’’ after
‘‘(B)(i)’’; and
143
(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
‘‘(ii) with respect to whom an adoption assist-
ance agreement is in effect under this section
144
(whether or not 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) 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-
sistance under a State program funded under part A of
title IV’’.
(f) AMENDMENTS TO TITLE XI.—
(1) Section 1109 (42 U.S.C. 1309) is amended
by striking ‘‘or part A of title IV,’’.
145
(2) 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
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’’.
(3) 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
146
(B) in subsection (a)(3), by striking
‘‘404,’’.
(4) 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’’.
(5) Section 1119 (42 U.S.C. 1319) is amend-
ed—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(6) Section 1133(a) (42 U.S.C. 1320b–3(a)) is
amended by striking ‘‘or part A of title IV,’’.
(7) Section 1136 (42 U.S.C. 1320b–6) is re-
pealed.
(8) 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)—
147
(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.
(9) Section 1108 (42 U.S.C. 1308) is amend-
ed—
(A) in subsection (a)—
(i) in the matter preceding paragraph
(1)—
(I) by inserting ‘‘(or paid, in the
case of part A of title IV)’’ after ‘‘cer-
tified’’; and
(II) by striking ‘‘or, in the case
of’’ and all that follows through ‘‘sec-
tion 403(k)’’;
(ii) in paragraph (1)—
(I) in subparagraph (F), by strik-
ing ‘‘or’’;
(II) in subparagraph (G), by
striking ‘‘the fiscal year 1989 and
each fiscal year thereafter;’’ and in-
148
serting ‘‘each of the fiscal years 1989
through 1995, or’’; and
(III) by inserting after subpara-
graph (G), the following new subpara-
graph:
‘‘(H) $100,039,000 with respect to fiscal
year 1996 and each fiscal year thereafter;’’;
(iii) in paragraph (2)—
(I) in subparagraph (F), by strik-
ing ‘‘or’’;
(II) in subparagraph (G), by
striking ‘‘the fiscal year 1989 and
each fiscal year thereafter;’’ and in-
serting ‘‘each of the fiscal years 1989
through 1995, or’’; and
(III) by inserting after subpara-
graph (G), the following new subpara-
graph:
‘‘(H) $3,489,000 with respect to fiscal
year 1996 and each fiscal year thereafter;’’; and
(iv) in paragraph (3)—
(I) in subparagraph (F), by strik-
ing ‘‘or’’;
(II) in subparagraph (G), by
striking ‘‘the fiscal year 1989 and
149
each fiscal year thereafter.’’ and in-
serting ‘‘each of the fiscal years 1989
through 1995, or’’; and
(III) by inserting after subpara-
graph (G), the following new subpara-
graph:
‘‘(H) $4,593,000 with respect to fiscal
year 1996 and each fiscal year thereafter.’’; and
(B) in subsection (d), by striking ‘‘(exclu-
sive of any amounts’’ and all that follows
through ‘‘section 403(k) applies)’’.
(g) 
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-
ing ‘‘assistance under a State program funded under part
A of title IV’’.
(h) 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’’.
150
(i) 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,’’.
SEC. 107. 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-
serting ‘‘program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) 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 effect on June
1, 1995’’;
(2) in subsection (d)(5)—
(A) by striking ‘‘assistance to families with
dependent children’’ and inserting ‘‘assistance
under a State program funded’’; and
151
(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.) 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 effect on June
1, 1995’’.
(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’’;
(2) in subsection (e)—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘benefits under
a State program funded’’; and
(B) by inserting before the semicolon the
following: ‘‘that the Secretary determines com-
plies with standards established by the Sec-
retary that ensure that the standards under the
152
State program are comparable to or more re-
strictive than those in effect on June 1, 1995’’;
and
(3) by adding at the end the following new sub-
section:
‘‘(i) Notwithstanding any other provision of this Act,
a household may not receive benefits under this Act as
a result of the household’s eligibility under a State pro-
gram funded under part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.), unless the Secretary de-
termines that any household with income above 130 per-
cent of the poverty guidelines is not eligible for the pro-
gram.’’.
(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
153
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—
(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
154
(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)—
(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 June 1, 1995’’; and
(B) in paragraph (6)—
(i) in subparagraph (A)(ii)—
155
(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
or more restrictive than those in effect
on June 1, 1995’’; 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
156
to or more restrictive than those in effect
on June 1, 1995’’; 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’’.
(h) Section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786) is amended—
(1) in subsection (d)(2)(A)(ii)(II)—
(A) by striking ‘‘program for aid to fami-
lies with dependent children established’’ and
inserting ‘‘State program funded’’; and
(B) by inserting before the semicolon the
following: ‘‘that the Secretary determines com-
plies with standards established by the Sec-
retary that ensure that the standards under the
State program are comparable to or more re-
strictive than those in effect on June 1, 1995’’;
157
(2) in subsection (e)(4)(A), by striking ‘‘pro-
gram for aid to families with dependent children’’
and inserting ‘‘State program funded’’; and
(3) in subsection (f)(1)(C)(iii), by striking ‘‘aid
to families with dependent children,’’ and inserting
‘‘State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) and
with the’’.
SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemploy-
ment Compensation Amendments of 1976 (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
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
158
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—
(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
159
(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’’;
(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
160
(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
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
161
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—
(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
162
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 6334(a)(11)(A) (26 U.S.C.
6334(a)(11)(A)), by striking ‘‘(relating to aid to
families with dependent children)’’; and
(5) 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-
163
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,’’;
(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);
164
(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
(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;
165
(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,’’;
(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’’;
166
(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’’.
(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).
167
(r) The Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 900 et seq.)) is amended—
(1) in 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 fami-
lies;’’; 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’’
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
168
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:
‘‘(E) part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.) relating to
work activities;’’.
SEC. 109. STUDY OF EFFECT OF WELFARE REFORM ON
GRANDPARENTS AS PRIMARY CAREGIVERS.
(a) IN GENERAL.—The Secretary of Health and
Human Services (hereafter in this section referred to as
the ‘‘Secretary’’) shall conduct a study evaluating the im-
pact of amendments made by this Act on grandparents
who have assumed the responsibility of providing care to
169
their grandchildren. In such study, the Secretary shall
identify barriers to participation in public programs in-
cluding inconsistent policies, standards, and definitions
used by programs and agencies in the administration of
medicaid, assistance under a State program funded under
part A of title IV of the Social Security Act, child support
enforcement, and foster care programs on grandparents
who have assumed the care-giving role for children whose
natural parents are unable to provide care.
(b) REPORT.—Not later than December 31, 1997,
the Secretary shall submit a report setting forth the find-
ings of the study described in subsection (a) to the Com-
mittee on Ways and Means and the Committee on Eco-
nomic and Educational Opportunities of the House of
Representatives and the Committee on Finance, the Com-
mittee on Labor and Human Resources, and the Special
Committee on Aging of the Senate. The report shall in-
clude such recommendations for administrative or legisla-
tive changes as the Secretary considers appropriate.
SEC. 110. 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
170
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
(2) with respect to any other communication on
the date of enactment of this Act.
SEC. 110A. 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—
171
(1) in the heading, by striking ‘‘DEMONSTRA-
TION’’;
(2) by striking ‘‘demonstration’’ each place it
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 State program funded part A
of title IV of the Social Security Act in 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 the State program
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
the State program funded part A of title IV of
the Social Security Act’’;
172
(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 in-
serting ‘‘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. 110B. DEMONSTRATION PROJECTS FOR SCHOOL UTI-
LIZATION.
(a) FINDINGS.—It is the goal of the United States
that children grow to be self-sufficient citizens, that par-
ents equip themselves to provide the best parental care
and guidance to their children, and that welfare depend-
ency, crime, and the deterioration of neighborhoods be
eliminated. It will contribute to these goals to increase the
level of parents’ involvement in their children’s school and
other activities, to increase the amount of time parents
spend with or in close proximity to their children, to in-
crease the portion of the day and night when children are
in a safe and healthy environment and not exposed to un-
favorable influences, to increase the opportunities for chil-
173
dren to participate in safe, healthy, and enjoyable extra-
curricular and organized developmental and recreational
activities, and to make more accessible the opportunities
for parents, especially those dependent on public assist-
ance, to increase and enhance their parenting and living
skills. All of these contributions can be facilitated by es-
tablishing the neighborhood public school as a focal point
for such activities and by extending the hours of the day
in which its facilities are available for such activities.
(b) GRANTS.—The Secretary of Education (hereafter
in this section referred to as the ‘‘Secretary’’) shall make
demonstration grants as provided in subsection (c) to
States to enable them to increase the number of hours
during each day when existing public school facilities are
available for use for the purposes set forth in subsection
(d).
(c) SELECTION
OF STATES.—The Secretary shall
make grants to not more than 5 States for demonstration
projects in accordance with this section. Each State shall
select the number and location of schools based on the
amount of funds it deems necessary for a school properly
to achieve the goals of this program. The schools selected
must have a significant percentage of students receiving
benefits under part A of title IV of the Social Security
Act. No more than 2 percent of the grant to any State
174
shall be used for administrative expenses of any kind by
any entity (except that none of the activities set forth in
paragraphs (1) and (2) of subsection (d) shall be consid-
ered an administrative activity the expenses for which are
limited by this subsection).
(d) USE OF FUNDS.—The grants made under sub-
section (b), in order that school facilities can be more fully
utilized, shall be used to provide funding for, among other
things—
(1) extending the length of the school day, ex-
panding the scope of student programs offered be-
fore and after pre-existing school hours, enabling
volunteers and parents or professionals paid from
other sources to teach, tutor, coach, organize, advise,
or monitor students before and after pre-existing
school hours, and providing security, supplies, utili-
ties, and janitorial services before and after pre-ex-
isting school hours for these programs,
(2) making the school facilities available for
community and neighborhood clubs, civic associa-
tions and organizations, Boy and Girl Scouts and
similar organizations, adult education classes, orga-
nized sports, parental education classes, and other
educational, recreational, and social activities.
175
None of the funds provided under this section can be used
to supplant funds already provided to a school facility for
services, equipment, personnel, or utilities nor can funds
be used to pay costs associated with operating school fa-
cilities during hours those facilities are already available
for student or community use.
(e) APPLICATIONS.—
(1) IN GENERAL.—The Governor of each State
desiring to conduct a demonstration project under
this section shall prepare and submit to the Sec-
retary an application in such manner and containing
such information as the Secretary may require. The
Secretary shall actively encourage States to submit
such applications.
(2) APPROVAL.—The Secretary shall consider
all applications received from States desiring to con-
duct demonstration projects under this section and
shall approve such applications in a number of
States to be determined by the Secretary (not to ex-
ceed 5), taking into account the overall funding lev-
els available under this section.
(f) DURATION.—A demonstration project under this
section shall be conducted for not more than 4 years plus
an additional time period of up to 12 months for final
evaluation and reporting. The Secretary may terminate a
176
project if the Secretary determines that the State conduct-
ing the project is not in substantial compliance with the
terms of the application approved by the Secretary under
this section.
(g) EVALUATION PLAN.—
(1) STANDARDS.—Not later than 3 months
after the date of the enactment of this section, the
Secretary shall develop standards for evaluating the
effectiveness of each demonstration project in con-
tributing toward meeting the objectives set forth in
subsection (a), which shall include the requirement
that an independent expert entity selected by the
Secretary provide an evaluation of all demonstration
projects, which evaluations shall be included in the
appropriate State’s annual and final reports to the
Secretary under subsection (h)(1).
(2) SUBMISSION
OF
PLAN.—Each State con-
ducting a demonstration project under this section
shall submit an evaluation plan (meeting the stand-
ards developed by the Secretary under paragraph
(1)) to the Secretary not later than 90 days after
the State is notified of the Secretary’s approval for
such project. A State shall not receive any Federal
funds for the operation of the demonstration project
until the Secretary approves such evaluation plan.
177
(h) REPORTS.—
(1) STATE.—A State that conducts a dem-
onstration project under this section shall prepare
and submit to the Secretary annual and final reports
in accordance with the State’s evaluation plan under
subsection (g)(2) for such demonstration project.
(2) SECRETARY.—The Secretary shall prepare
and submit to the Congress annual reports concern-
ing each demonstration project under this Act.
(i) AUTHORIZATIONS.—
(1) GRANTS.—There are authorized to be ap-
propriated for grants under subsection (b) for each
of fiscal years 1996, 1997, 1998, 1999, and 2000,
$10,000,000.
(2) ADMINISTRATION.—There are authorized to
be appropriated $1,000,000 for each of fiscal years
1996, 1997, 1998, 1999, and 2000 for the adminis-
tration of this section by the Secretary, including de-
velopment of standards and evaluation of all dem-
onstration projects by an independent expert entity
under subsection (g)(1).
SEC. 110C. CORRECTIVE COMPLIANCE PLAN.
(a) IN GENERAL.—
(1) NOTIFICATION
OF
VIOLATION.—Notwith-
standing any other provision of law, the Federal
178
Government shall, prior to assessing a penalty
against a State under any program established or
modified under this Act, notify the State of the vio-
lation of law for which such penalty would be as-
sessed and allow the State the opportunity to enter
into a corrective compliance plan in accordance with
this section which outlines how the State will correct
any violations for which such penalty would be as-
sessed and how the State will insure continuing com-
pliance with the requirements of such program.
(2) 60-DAY PERIOD TO PROPOSE A CORRECTIVE
COMPLIANCE PLAN.—Any State notified under para-
graph (1) shall have 60 days in which to submit to
the Federal Government a corrective compliance
plan to correct any violations described in such para-
graph.
(3) ACCEPTANCE OF PLAN.—The Federal Gov-
ernment shall have 60 days to accept or reject the
State’s corrective compliance plan and may consult
with the State during this period to modify the plan.
If the Federal Government does not accept or reject
the corrective compliance plan during the period, the
corrective compliance plan shall be deemed to be ac-
cepted.
179
(b) FAILURE TO CORRECT.—If a corrective compli-
ance plan is accepted by the Federal Government, no pen-
alty shall be imposed with respect to a violation described
in subsection (a) if the State corrects the violation pursu-
ant to the plan. If a State has not corrected the violation
in a timely manner under the plan, some or all of the pen-
alty shall be assessed.
SEC. 110D. PARENTAL RESPONSIBILITY CONTRACTS.
(a) ASSESSMENT.—Notwithstanding any other provi-
sion of, or amendment made by, this title, each State to
which a grant is made under section 403 of the Social
Security Act shall provide that the State agency, through
a case manager, shall make an initial assessment of the
education level, parenting skills, and history of parenting
activities and involvement of each parent who is applying
for financial assistance under the plan.
(b) PARENTAL RESPONSIBILITY CONTRACTS.—On the
basis of the assessment made under subsection (a) with
respect to each parent applicant, the case manager, in con-
sultation with the parent applicant (hereafter in this sub-
section referred to as the ‘‘client’’) and, if possible, the
client’s spouse if one is present, shall develop a parental
responsibility contract for the client, which meets the fol-
lowing requirements:
180
(1) Sets forth the obligations of the client, includ-
ing all of the following the case manager believes are
within the ability and capacity of the client, are not
incompatible with the employment or school activi-
ties of the client, and are not inconsistent with each
other in the client’s case or with the well being of
the client’s children:
(A) Attend school, if necessary, and maintain
certain grades and attendance.
(B) Keep school-age children of the client in
school.
(C) Immunize children of the client.
(D) Attend parenting and money manage-
ment classes.
(E) Participate in parent and teacher asso-
ciations and other activities intended to involve
parents in their children’s school activities and
in the affairs of their children’s school.
(F) Attend school activities with their chil-
dren where attendance or participation by both
children and parents is appropriate.
(G) Undergo appropriate substance abuse
treatment counseling.
(H) Any other appropriate activity, at the op-
tion of the State.
181
(2) Provides that the client shall accept any bona
fide offer of unsubsidized full-time employment, un-
less the client has good cause for not doing so.
(c) PENALTIES FOR NONCOMPLIANCE WITH PARENTAL
RESPONSIBILITY CONTRACT.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the following penalties shall apply:
(A) PROGRESSIVE
REDUCTIONS
IN
ASSIST-
ANCE FOR 1ST AND 2ND ACTS OF NONCOMPLI-
ANCE.—The State plan shall provide that the
amount of assistance otherwise payable under
this part to a family that includes a client who,
with respect to a parental responsibility con-
tract signed by the client, commits an act of
noncompliance without good cause, shall be re-
duced by—
(i) 33 percent for the 1st such act of
noncompliance; or
(ii) 66 percent for the 2nd such act of
noncompliance.
(B) DENIAL OF ASSISTANCE FOR 3RD AND
SUBSEQUENT ACTS OF NONCOMPLIANCE.—The
State shall provide that in the case of the 3rd
or subsequent such act of noncompliance, the
family of which the client is a member shall not
182
thereafter be eligible for assistance under this
part.
(C) LENGTH
OF
PENALTIES.—The penalty
for an act of noncompliance shall not exceed the
greater of—
(i) in the case of—
(I) the 1st act of noncompliance, 1
month,
(II) the 2nd act of noncompliance,
3 months, or
(III) the 3rd or subsequent act of
noncompliance, 6 months; or
(ii) the period ending with the cessation
of such act of noncompliance.
(D) DENIAL OF ASSISTANCE TO ADULTS RE-
FUSING TO ACCEPT A BONA FIDE OFFER OF
EMPLOYMENT.—The State plan shall provide
that if an unemployed individual who has at-
tained 18 years of age refuses to accept a bona
fide offer of employment without good cause,
such act of noncompliance shall be considered a
3rd or subsequent act of noncompliance.
(2) STATE
FLEXIBILITY.—The State plan may
provide for different penalties than those specified in
paragraph (1).
183
SEC. 110E. CORRECTIVE ACTION PLAN.
(a) IN GENERAL.—
(1) NOTIFICATION
OF
VIOLATION.—Notwith-
standing any other provision of law, the Federal
Government shall, prior to assessing a penalty
against a State under any program established or
modified under this Act, notify the State of the vio-
lation of law for which such penalty would be as-
sessed and allow the State the opportunity to enter
into a corrective action plan in accordance with this
section.
(2) 60-DAY PERIOD TO PROPOSE A CORRECTIVE
ACTION PLAN.—Any State notified under paragraph
(1) shall have 60 days in which to submit to the
Federal Government a corrective action plan to cor-
rect any violations described in such paragraph.
(3) ACCEPTANCE OF PLAN.—The Federal Gov-
ernment shall have 60 days to accept or reject the
State’s corrective action plan and may consult with
the State during this period to modify the plan. If
the Federal Government does not accept or reject
the corrective action plan during the period, the cor-
rective action plan shall be deemed to be accepted.
(b) 90-DAY GRACE PERIOD.—If a corrective action
plan is accepted by the Federal Govenment, no penalty
shall be imposed with respect to a violation described in
184
subsection (a) if the State corrects the violation pursuant
to the plan within 90 days after the date on which the
plan is accepted (or within such other period specified in
the plan).
SEC. 111. SECRETARIAL SUBMISSION OF LEGISLATIVE PRO-
POSAL FOR TECHNICAL AND CONFORMING
AMENDMENTS.
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Health and Human
Services, in consultation, as appropriate, with the heads
of other Federal agencies, shall submit to the appropriate
committees of Congress a legislative proposal providing for
such technical and conforming amendments in the law as
are required by the provisions of this Act.
SEC. 112. 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, 1995.
(b) TRANSITION RULE.—
(1) STATE OPTION TO CONTINUE AFDC PRO-
GRAM.—
(A) 9-MONTH EXTENSION.—A State may
continue a State program under parts A and F
of title IV of the Social Security Act, as in ef-
fect on September 30, 1995 (for purposes of
185
this paragraph, the ‘‘State AFDC program’’)
until June 30, 1996.
(B) REDUCTION
OF
FISCAL
YEAR
1996
GRANT.—In the case of any State opting to
continue the State AFDC program pursuant to
subparagraph (A), the State family assistance
grant paid to such State under section 403(a)
of the Social Security Act (as added by section
101 and as in effect on and after October 1,
1995) for fiscal year 1996 (after the termi-
nation of the State AFDC program) shall be re-
duced by an amount equal to the total Federal
payment to such State under section 403 of the
Social Security Act (as in effect on September
30, 1995) for such fiscal year.
(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-
186
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 under
programs which are repealed or substantially amend-
ed in this title and which involve State expenditures
in cases where assistance or services were provided
during a prior fiscal year, shall be treated as ex-
penditures during fiscal year 1995 for purposes of
reimbursement even if payment was made by a State
on or after October 1, 1995. States shall complete
the filing of all claims no later than September 30,
1997. Federal department heads shall—
(A) use the single audit procedure to re-
view and resolve any claims in connection with
the closeout of programs, 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 the funds authorized by this
title.
187
(c) SUNSET.—The amendment made by section
101(b) shall be effective only during the 5-year period be-
ginning on October 1, 1995.
TITLE II—SUPPLEMENTAL
SECURITY INCOME
Subtitle A—Eligibility Restrictions
SEC. 201. 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, if such individual
also has an alcoholism or drug addiction condition (as de-
termined by the Commissioner of Social Security), the
188
payment of such benefits to a representative payee shall
be deemed to serve the interest of the individual. In any
case in which such payment is so deemed under this
subclause to serve the interest of an individual, the Com-
missioner shall include, in the individual’s notification of
such eligibility, a notice that such alcoholism or drug ad-
diction condition accompanies the disability upon which
such eligibility is based and that the Commissioner is
therefore required to pay the individual’s benefits to a rep-
resentative payee.’’.
(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)’’.
189
(c) TREATMENT SERVICES FOR INDIVIDUALS WITH
A SUBSTANCE ABUSE CONDITION.—
(1) IN GENERAL.—Title XVI (42 U.S.C. 1381
et seq.) is amended by adding at the end the follow-
ing new section:
‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A
SUBSTANCE ABUSE CONDITION
‘‘SEC. 1636. (a) In the case of any individual eligible
for benefits under this title by reason of disability who
is identified as having a substance abuse condition, the
Commissioner of Social Security shall make provision for
referral of such individual to the appropriate State agency
administering the State plan for substance abuse treat-
ment services approved under subpart II of part B of title
XIX of the Public Health Service Act (42 U.S.C. 300x–
21 et seq.).
‘‘(b) No individual described in subsection (a) shall
be an eligible individual or eligible spouse for purposes of
this title if such individual refuses without good cause to
accept the referred services described under subsection
(a).
(2) 
CONFORMING
AMENDMENT.—Section
1614(a)(4) (42 U.S.C. 1382c(a)(4)) is amended by
inserting after the second sentence the following new
sentence: ‘‘For purposes of the preceding sentence,
any individual identified by the Commissioner as
190
having a substance abuse condition shall seek and
complete appropriate treatment as needed.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 1611(e) (42 U.S.C. 1382(e)) is
amended by striking paragraph (3).
(2) Section 1634 (42 U.S.C. 1383c) is amended
by striking subsection (e).
(3) Section 201(c)(1) of the Social Security
Independence and Program Improvements Act of
1994 (42 U.S.C. 425 note) is amended—
(A) by striking ‘‘—’’ and all that follows
through ‘‘(A)’’ the 1st place it appears;
(B) by striking ‘‘and’’ the 3rd place it ap-
pears;
(C) by striking subparagraph (B);
(D) by striking ‘‘either subparagraph (A)
or subparagraph (B)’’ and inserting ‘‘the pre-
ceding sentence’’; and
(E) by striking ‘‘subparagraph (A) or (B)’’
and inserting ‘‘the preceding sentence’’.
(e) SUPPLEMENTAL FUNDING FOR ALCOHOL AND
SUBSTANCE ABUSE TREATMENT PROGRAMS.—
(1) IN GENERAL.—Out of any money in the
Treasury not otherwise appropriated, there are here-
by appropriated to supplement State and Tribal pro-
191
grams funded under section 1933 of the Public
Health 
Service 
Act 
(42 
U.S.C. 
300x–33),
$50,000,000 for each of the fiscal years 1997 and
1998.
(2) 
ADDITIONAL
FUNDS.—Amounts 
appro-
priated under paragraph (1) shall be in addition to
any funds otherwise appropriated for allotments
under section 1933 of the Public Health Service Act
(42 U.S.C. 300x–33) and shall be allocated pursuant
to such section 1933.
(3) USE OF FUNDS.—A State or Tribal govern-
ment receiving an allotment under this subsection
shall consider as priorities, for purposes of expend-
ing funds allotted under this subsection, activities
relating to the treatment of the abuse of alcohol and
other drugs.
SEC. 202. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI
BENEFITS.
Paragraph (1) of section 1614(a) (42 U.S.C.
1382c(a)) is amended—
(1) in subparagraph (B)(i), by striking ‘‘either’’
and all that follows through ‘‘, or’’ and inserting
‘‘(I) a citizen; (II) a noncitizen who is granted asy-
lum under section 208 of the Immigration and Na-
tionality Act or whose deportation has been withheld
192
under section 243(h) of such Act for a period of not
more than 5 years after the date of arrival into the
United States; (III) a noncitizen who is admitted to
the United States as a refugee under section 207 of
such Act for not more than such 5-year period; (IV)
a noncitizen, lawfully present in any State (or any
territory or possession of the United States), who is
a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized
as an honorable discharge and not on account of
alienage or who is the spouse or unmarried depend-
ent child of such veteran; or (V) a noncitizen who
has worked sufficient calendar quarters of coverage
to be a fully insured individual for benefits under
title II, or’’; and
(2) by adding at the end the following new
flush sentence:
‘‘For purposes of subparagraph (B)(i)(IV), the determina-
tion of whether a noncitizen is lawfully present in the
United States shall be made in accordance with regula-
tions of the Attorney General. A noncitizen shall not be
considered to be lawfully present in the United States for
purposes of this title merely because the noncitizen may
be considered to be permanently residing in the United
193
States under color of law for purposes of any particular
program.’’.
SEC. 203. 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.
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 purposes of this title during the 10-year pe-
riod beginning on the date the individual is convicted in
Federal or State court of having made a fraudulent state-
ment or representation with respect to the place of resi-
dence of the individual in order to receive assistance simul-
taneously from 2 or more States under programs that are
funded under part A of 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 title
XVI.’’.
SEC. 204. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS
AND PROBATION AND PAROLE VIOLATORS.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 201(c)(1), is amended
194
by inserting after paragraph (2) the following new para-
graph:
‘‘(3) A person shall not be an eligible individual or
eligible spouse for purposes of this title with respect 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 1631(e) (42 U.S.C.
1383(e)) is amended by inserting after paragraph (3) the
following new paragraph:
‘‘(4) 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
under this title, if the officer furnishes the agency with
the name of the recipient and notifies the agency that—
195
‘‘(A) the recipient—
‘‘(i) is fleeing to avoid prosecution, or cus-
tody 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 mis-
demeanor under the laws of such State;
‘‘(ii) is violating a condition of probation or
parole imposed under Federal or State law; or
‘‘(iii) 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.’’.
SEC. 205. EFFECTIVE DATES; APPLICATION TO CURRENT
RECIPIENTS.
(a) SECTIONS 201 AND 202.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by sec-
tions 201 and 202 shall apply to applicants for bene-
fits for months beginning on or after the date of the
enactment of this Act, without regard to whether
196
regulations have been issued to implement such
amendments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) APPLICATION AND NOTICE.—Notwith-
standing any other provision of law, in the case
of an individual who is receiving supplemental
security income benefits under title XVI of the
Social Security Act as of the date of the enact-
ment of this Act and whose eligibility for such
benefits would terminate by reason of the
amendments made by section 201 or 202, such
amendments shall apply with respect to the
benefits of such individual, including such indi-
vidual’s treatment (if any) provided pursuant to
such title as in effect on the day before the date
of such enactment, for months beginning on or
after January 1, 1997, and the Commissioner
of Social Security shall so notify the individual
not later than 90 days after the date of the en-
actment of this Act.
(B) REAPPLICATION.—
(i) IN GENERAL.—Not later than 120
days after the date of the enactment of
this Act, each individual notified pursuant
to subparagraph (A) who desires to re-
197
apply for benefits under title XVI of the
Social Security Act, as amended by this
title, shall reapply to the Commissioner of
Social Security.
(ii) 
DETERMINATION
OF
ELIGI-
BILITY.—Not later than 1 year after the
date of the enactment of this Act, the
Commissioner of Social Security shall de-
termine the eligibility of each individual
who reapplies for benefits under clause (i)
pursuant to the procedures of such title.
(3) ADDITIONAL APPLICATION OF PAYEE REP-
RESENTATIVE
REQUIREMENTS.—The amendments
made by section 201(b) shall also apply—
(A) in the case of any individual who is re-
ceiving supplemental security income benefits
under title XVI of the Social Security Act as of
the date of the enactment of this Act, on and
after the date of such individual’s first continu-
ing disability review occurring after such date
of enactment, and
(B) in the case of any individual who re-
ceives supplemental security income benefits
under title XVI of the Social Security Act and
has attained age 65, in such manner as deter-
198
mined appropriate by the Commissioner of So-
cial Security.
(b) OTHER AMENDMENTS.—The amendments made
by sections 203 and 204 shall take effect on the date of
the enactment of this Act.
Subtitle B—Benefits for Disabled
Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY.—Sec-
tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)), as amended by
section 201(a), is amended—
(1) in subparagraph (A), by striking ‘‘An indi-
vidual’’ and inserting ‘‘Except as provided in sub-
paragraph (C), an individual’’;
(2) in subparagraph (A), by striking ‘‘(or, in
the case of an individual under the age of 18, if he
suffers from any medically determinable physical or
mental impairment of comparable severity)’’;
(3) by redesignating subparagraphs (C) through
(I) as subparagraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C) An individual under the age of 18 shall be con-
sidered disabled for the purposes of this title if that indi-
vidual has a medically determinable physical or mental im-
199
pairment, which results in marked and severe functional
limitations, and which can be expected to result in death
or which has lasted or can be expected to last for a contin-
uous period of not less than 12 months.’’; and
(5) in subparagraph (F), as redesignated by
paragraph (3), by striking ‘‘(D)’’ and inserting
‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR
EVALUATION
OF
MENTAL
AND
EMOTIONAL
DIS-
ORDERS.—The Commissioner of Social Security
shall 
modify 
sections 
112.00C.2. 
and
112.02B.2.c.(2) of appendix 1 to subpart P of part
404 of title 20, Code of Federal Regulations, to
eliminate references to maladaptive behavior in the
domain of personal/behavorial function.
(2) 
DISCONTINUANCE
OF
INDIVIDUALIZED
FUNCTIONAL
ASSESSMENT.—The Commissioner of
Social Security shall discontinue the individualized
functional assessment for children set forth in sec-
tions 416.924d and 416.924e of title 20, Code of
Federal Regulations.
(c) EFFECTIVE DATE; REGULATIONS; APPLICATION
TO CURRENT RECIPIENTS.—
200
(1) IN GENERAL.—The amendments made by
subsections (a) and (b) shall apply to applicants for
benefits for months beginning on or after the date
of the enactment of this Act, without regard to
whether regulations have been issued to implement
such amendments.
(2) REGULATIONS.—The Commissioner of So-
cial Security shall issue such regulations as the
Commissioner determines to be necessary to imple-
ment the amendments made by subsections (a) and
(b) not later than 60 days after the date of the en-
actment of this Act.
(3) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY
DETERMINATIONS.—Not
later than 1 year after the date of the enact-
ment of this Act, the Commissioner of Social
Security shall redetermine the eligibility of any
individual under age 18 who is receiving supple-
mental security income benefits based on a dis-
ability under title XVI of the Social Security
Act as of the date of the enactment of this Act
and whose eligibility for such benefits may ter-
minate by reason of the amendments made by
subsection (a) or (b). With respect to any rede-
termination under this subparagraph—
201
(i) section 1614(a)(4) of the Social
Security Act (42 U.S.C. 1382c(a)(4)) shall
not apply;
(ii) the Commissioner of Social Secu-
rity shall apply the eligibility criteria for
new applicants for benefits under title XVI
of such Act;
(iii) the Commissioner shall give such
redetermination priority over all continuing
eligibility reviews and other reviews under
such title; and
(iv) such redetermination shall be
counted as a review or redetermination
otherwise required to be made under sec-
tion 208 of the Social Security Independ-
ence and Program Improvements Act of
1994 or any other provision of title XVI of
the Social Security Act.
(B) 
GRANDFATHER
PROVISION.—The
amendments made by subsections (a) and (b),
and the redetermination under subparagraph
(A), shall only apply with respect to the benefits
of an individual described in subparagraph (A)
for months beginning on or after January 1,
1997.
202
(C) NOTICE.—Not later than 90 days after
the date of the enactment of this Act, the Com-
missioner of Social Security shall notify an indi-
vidual described in subparagraph (A) of the
provisions of this paragraph.
SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU-
ING DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING TO
CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as redesignated by section 211(a)(3), is
amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) Not less frequently than once every 3 years,
the Commissioner shall review in accordance with para-
graph (4) the continued eligibility for benefits under this
title of each individual who has not attained 18 years of
age and is eligible for such benefits by reason of an im-
pairment (or combination of impairments) which may im-
prove (or, which is unlikely to improve, at the option of
the Commissioner).
‘‘(II) A parent or guardian of a recipient whose case
is reviewed under this clause shall present, at the time
of review, evidence demonstrating that the recipient is,
203
and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this
title.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS
REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS
OF AGE.—
(1) IN GENERAL.—Section 1614(a)(3)(H) (42
U.S.C. 1382c(a)(3)(H)), as amended by subsection
(a), is amended by adding at the end the following
new clause:
‘‘(iii) If an individual is eligible for benefits under this
title by reason of disability for the month preceding the
month in which the individual attains the age of 18 years,
the Commissioner shall redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the
individual’s 18th birthday; and
‘‘(II) by applying the criteria used in determin-
ing the initial eligibility for applicants who have at-
tained the age of 18 years.
With respect to a redetermination under this clause, para-
graph (4) shall not apply and such redetermination shall
be considered a substitute for a review or redetermination
otherwise required under any other provision of this sub-
paragraph during that 1-year period.’’.
204
(2) CONFORMING REPEAL.—Section 207 of the
Social Security Independence and Program Improve-
ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.
1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR
LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)
(42 U.S.C. 1382c(a)(3)(H)), as amended by subsections
(a) and (b), is amended by adding at the end the following
new clause:
‘‘(iv)(I) Not later than 12 months after the birth of
an individual, the Commissioner shall review in accordance
with paragraph (4) the continuing eligibility for benefits
under this title by reason of disability of such individual
whose low birth weight is a contributing factor material
to the Commissioner’s determination that the individual
is disabled.
‘‘(II) A review under subclause (I) shall be considered
a substitute for a review otherwise required under any
other provision of this subparagraph during that 12-
month period.
‘‘(III) A parent or guardian of a recipient whose case
is reviewed under this clause shall present, at the time
of review, evidence demonstrating that the recipient is,
and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
205
which was the basis for providing benefits under this
title.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits for months beginning
on or after the date of the enactment of this Act, without
regard to whether regulations have been issued to imple-
ment such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) TIGHTENING OF REPRESENTATIVE PAYEE RE-
QUIREMENTS.—
(1) 
CLARIFICATION
OF
ROLE.—Section
1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is
amended by striking ‘‘and’’ at the end of subclause
(II), by striking the period at the end of subclause
(IV) and inserting ‘‘; and’’, and by adding after
subclause (IV) the following new subclause:
‘‘(V) advise such person through the notice of
award of benefits, and at such other times as the
Commissioner of Social Security deems appropriate,
of specific examples of appropriate expenditures of
benefits under this title and the proper role of a rep-
resentative payee.’’.
(2) DOCUMENTATION
OF
EXPENDITURES
RE-
QUIRED.—
206
(A) IN GENERAL.—Subparagraph (C)(i) of
section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is
amended to read as follows:
‘‘(C)(i) In any case where payment is made to a rep-
resentative payee of an individual or spouse, the Commis-
sioner of Social Security shall—
‘‘(I) require such representative payee to docu-
ment 
expenditures 
and 
keep 
contemporaneous
records of transactions made using such payment;
and
‘‘(II) implement statistically valid procedures
for reviewing a sample of such contemporaneous
records in order to identify instances in which such
representative payee is not properly using such pay-
ment.’’.
(B) CONFORMING AMENDMENT WITH RE-
SPECT TO PARENT PAYEES.—Clause (ii) of sec-
tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C))
is amended by striking ‘‘Clause (i)’’ and insert-
ing ‘‘Subclauses (II) and (III) of clause (i)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to benefits paid after
the date of the enactment of this Act.
(b) DEDICATED SAVINGS ACCOUNTS.—
207
(1) IN GENERAL.—Section 1631(a)(2)(B) (42
U.S.C. 1383(a)(2)(B)) is amended by adding at the
end the following new clause:
‘‘(xiv) Notwithstanding clause (x), the Commissioner
of Social Security may, at the request of the representative
payee, pay any lump sum payment for the benefit of a
child into a dedicated savings account that could only be
used to purchase for such child—
‘‘(I) education and job skills training;
‘‘(II) special equipment or housing modifica-
tions or both specifically related to, and required by
the nature of, the child’s disability; and
‘‘(III) appropriate therapy and rehabilitation.’’.
(2) DISREGARD
OF
TRUST
FUNDS.—Section
1613(a) (42 U.S.C. 1382b) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (9),
(B) by striking the period at the end of
paragraph (10) the first place it appears and
inserting a semicolon,
(C) by redesignating paragraph (10) the
second place it appears as paragraph (11) and
striking the period at the end of such para-
graph and inserting ‘‘; and’’, and
208
(D) by inserting after paragraph (11), as
so redesignated, the following new paragraph:
‘‘(12) all amounts deposited in, or interest cred-
ited to, a dedicated savings account described in sec-
tion 1631(a)(2)(B)(xiv).’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to payments made
after the date of the enactment of this Act.
Subtitle C—Studies Regarding Sup-
plemental Security Income Pro-
gram
SEC. 221. ANNUAL REPORT ON THE SUPPLEMENTAL SECU-
RITY INCOME PROGRAM.
Title XVI is amended by adding at the end the follow-
ing new section:
‘‘SEC. 1636. ANNUAL REPORT ON PROGRAM.
‘‘(a) DESCRIPTION OF REPORT.—Not later than May
30 of each year, the Commissioner of Social Security shall
prepare and deliver a report annually to the President and
the Congress regarding the program under this title, in-
cluding—
‘‘(1) a comprehensive description of the pro-
gram;
‘‘(2) historical and current data on allowances
and denials, including number of applications and
209
allowance rates at initial determinations, reconsider-
ations, administrative law judge hearings, council of
appeals hearings, and Federal court appeal hearings;
‘‘(3) historical and current data on characteris-
tics of recipients and program costs, by recipient
group (aged, blind, work disabled adults, and chil-
dren);
‘‘(4) projections of future number of recipients
and program costs, through at least 25 years;
‘‘(5) number of redeterminations and continu-
ing disability reviews, and the outcomes of such
redeterminations and reviews;
‘‘(6) data on the utilization of work incentives;
‘‘(7) detailed information on administrative and
other program operation costs;
‘‘(8) summaries of relevant research undertaken
by the Social Security Administration, or by other
researchers;
‘‘(9) State supplementation program operations;
‘‘(10) a historical summary of statutory
changes to this title; and
‘‘(11) such other information as the Commis-
sioner deems useful.
‘‘(b) VIEWS OF MEMBERS OF THE SOCIAL SECURITY
ADVISORY COUNCIL.—Each member of the Social Secu-
210
rity Advisory Council shall be permitted to provide an indi-
vidual report, or a joint report if agreed, of views of the
program under this title, to be included in the annual re-
port under this section.’’.
SEC. 222. IMPROVEMENTS TO DISABILITY EVALUATION.
(a) REQUEST FOR COMMENTS.—
(1) IN GENERAL.—Not later than 60 days after
the date of the enactment of this Act, the Commis-
sioner of Social Security shall issue a request for
comments in the Federal Register regarding im-
provements to the disability evaluation and deter-
mination procedures for individuals under age 18 to
ensure the comprehensive assessment of such indi-
viduals, including—
(A) additions to conditions which should be
presumptively disabling at birth or ages 0
through 3 years;
(B) specific changes in individual listings
in the Listing of Impairments set forth in ap-
pendix 1 of subpart P of part 404 of title 20,
Code of Federal Regulations;
(C) improvements in regulations regarding
determinations based on regulations providing
for medical and functional equivalence to such
211
Listing of Impairments, and consideration of
multiple impairments; and
(D) any other changes to the disability de-
termination procedures.
(2) REVIEW AND REGULATORY ACTION.—The
Commissioner of Social Security shall promptly re-
view such comments and issue any regulations im-
plementing any necessary changes not later than 18
months after the date of the enactment of this Act.
SEC. 223. STUDY OF DISABILITY DETERMINATION PROC-
ESS.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, and from funds other-
wise appropriated, the Commissioner of Social Security
shall make arrangements with the National Academy of
Sciences, or other independent entity, to conduct a study
of the disability determination process under titles II and
XVI of the Social Security Act. This study shall be under-
taken in consultation with professionals representing ap-
propriate disciplines.
(b) STUDY COMPONENTS.—The study described in
subsection (a) shall include—
(1) an initial phase examining the appropriate-
ness of, and making recommendations regarding—
212
(A) the definitions of disability in effect on
the date of the enactment of this Act and the
advantages and disadvantages of alternative
definitions; and
(B) the operation of the disability deter-
mination process, including the appropriate
method of performing comprehensive assess-
ments of individuals under age 18 with physical
and mental impairments;
(2) a second phase, which may be concurrent
with the initial phase, examining the validity, reli-
ability, and consistency with current scientific knowl-
edge of the standards and individual listings in the
Listing of Impairments set forth in appendix 1 of
subpart P of part 404 of title 20, Code of Federal
Regulations, and of related evaluation procedures as
promulgated by the Commissioner of Social Security;
and
(3) such other issues as the applicable entity
considers appropriate.
(c) REPORTS AND REGULATIONS.—
(1) REPORTS.—The Commissioner of Social Se-
curity shall request the applicable entity, to submit
an interim report and a final report of the findings
and recommendations resulting from the study de-
213
scribed in this section to the President and the Con-
gress not later than 18 months and 24 months, re-
spectively, from the date of the contract for such
study, and such additional reports as the Commis-
sioner deems appropriate after consultation with the
applicable entity.
(2) REGULATIONS.—The Commissioner of So-
cial Security shall review both the interim and final
reports, and shall issue regulations implementing
any necessary changes following each report.
SEC. 224. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1998, the Comptroller
General of the United States shall study and report on
the impact of the amendments made by, and the provi-
sions of, this title on the supplemental security income
program under title XVI of the Social Security Act.
Subtitle D—National Commission
on the Future of Disability
SEC. 231. ESTABLISHMENT.
There is established a commission to be known as the
National Commission on the Future of Disability (referred
to in this subtitle as the ‘‘Commission’’), the expenses of
which shall be paid from funds otherwise appropriated for
the Social Security Administration.
214
SEC. 232. DUTIES OF THE COMMISSION.
(a) IN GENERAL.—The Commission shall develop
and carry out a comprehensive study of all matters related
to the nature, purpose, and adequacy of all Federal pro-
grams serving individuals with disabilities. In particular,
the Commission shall study the disability insurance pro-
gram under title II of the Social Security Act and the sup-
plemental security income program under title XVI of
such Act.
(b) MATTERS STUDIED.—The Commission shall pre-
pare an inventory of Federal programs serving individuals
with disabilities, and shall examine—
(1) trends and projections regarding the size
and characteristics of the population of individuals
with disabilities, and the implications of such analy-
ses for program planning;
(2) the feasibility and design of performance
standards for the Nation’s disability programs;
(3) the adequacy of Federal efforts in rehabili-
tation research and training, and opportunities to
improve the lives of individuals with disabilities
through all manners of scientific and engineering re-
search; and
(4) the adequacy of policy research available to
the Federal Government, and what actions might be
215
undertaken to improve the quality and scope of such
research.
(c) RECOMMENDATIONS.—The Commission shall
submit to the appropriate committees of the Congress and
to the President recommendations and, as appropriate,
proposals for legislation, regarding—
(1) which (if any) Federal disability programs
should be eliminated or augmented;
(2) what new Federal disability programs (if
any) should be established;
(3) the suitability of the organization and loca-
tion of disability programs within the Federal Gov-
ernment;
(4) other actions the Federal Government
should take to prevent disabilities and disadvantages
associated with disabilities; and
(5) such other matters as the Commission con-
siders appropriate.
SEC. 233. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN
GENERAL.—The Commission shall be
composed of 15 members, of whom—
(A) five shall be appointed by the Presi-
dent, of whom not more than 3 shall be of the
same major political party;
216
(B) three shall be appointed by the Major-
ity Leader of the Senate;
(C) two shall be appointed by the Minority
Leader of the Senate;
(D) three shall be appointed by the Speak-
er of the House of Representatives; and
(E) two shall be appointed by the Minority
Leader of the House of Representatives.
(2) REPRESENTATION.—The Commission mem-
bers shall be chosen based on their education, train-
ing, or experience. In appointing individuals as
members of the Commission, the President and the
Majority and Minority Leaders of the Senate and
the Speaker and Minority Leader of the House of
Representatives shall seek to ensure that the mem-
bership of the Commission reflects the diversity of
individuals with disabilities in the United States.
(b) COMPTROLLER
GENERAL.—The Comptroller
General shall serve on the Commission as an ex officio
member of the Commission to advise and oversee the
methodology and approach of the study of the Commis-
sion.
(c) PROHIBITION
AGAINST
OFFICER
OR
EM-
PLOYEE.—No officer or employee of any government shall
be appointed under subsection (a).
217
(d) DEADLINE FOR APPOINTMENT; TERM OF AP-
POINTMENT.—Members of the Commission shall be ap-
pointed not later than 60 days after the date of the enact-
ment of this Act. The members shall serve on the Commis-
sion for the life of the Commission.
(e) MEETINGS.—The Commission shall locate its
headquarters in the District of Columbia, and shall meet
at the call of the Chairperson, but not less than 4 times
each year during the life of the Commission.
(f) QUORUM.—Ten members of the Commission shall
constitute a quorum, but a lesser number may hold hear-
ings.
(g) CHAIRPERSON AND VICE CHAIRPERSON.—Not
later than 15 days after the members of the Commission
are appointed, such members shall designate a Chair-
person and Vice Chairperson from among the members of
the Commission.
(h) CONTINUATION OF MEMBERSHIP.—If a member
of the Commission becomes an officer or employee of any
government after appointment to the Commission, the in-
dividual may continue as a member until a successor mem-
ber is appointed.
(i) VACANCIES.—A vacancy on the Commission shall
be filled in the manner in which the original appointment
218
was made not later than 30 days after the Commission
is given notice of the vacancy.
(j) COMPENSATION.—Members of the Commission
shall receive no additional pay, allowances, or benefits by
reason of their service on the Commission.
(k) TRAVEL EXPENSES.—Each member of the Com-
mission shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
SEC. 234. STAFF AND SUPPORT SERVICES.
(a) DIRECTOR.—
(1) APPOINTMENT.—Upon consultation with
the members of the Commission, the Chairperson
shall appoint a Director of the Commission.
(2) COMPENSATION.—The Director shall be
paid the rate of basic pay for level V of the Execu-
tive Schedule.
(b) STAFF.—With the approval of the Commission,
the Director may appoint such personnel as the Director
considers appropriate.
(c) APPLICABILITY OF CIVIL SERVICE LAWS.—The
staff of the Commission shall be appointed without regard
to the provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid
without regard to the provisions of chapter 51 and sub-
219
chapter III of chapter 53 of such title relating to classi-
fication and General Schedule pay rates.
(d) EXPERTS
AND CONSULTANTS.—With the ap-
proval of the Commission, the Director may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon the re-
quest of the Commission, the head of any Federal agency
may detail, on a reimbursable basis, any of the personnel
of such agency to the Commission to assist in carrying
out the duties of the Commission under this subtitle.
(f) OTHER RESOURCES.—The Commission shall have
reasonable access to materials, resources, statistical data,
and other information from the Library of Congress and
agencies and elected representatives of the executive and
legislative branches of the Federal Government. The
Chairperson of the Commission shall make requests for
such access in writing when necessary.
(g) PHYSICAL FACILITIES.—The Administrator of
the General Services Administration shall locate suitable
office space for the operation of the Commission. The fa-
cilities shall serve as the headquarters of the Commission
and shall include all necessary equipment and incidentals
required for proper functioning of the Commission.
220
SEC. 235. POWERS OF COMMISSION.
(a) HEARINGS.—The Commission may conduct pub-
lic hearings or forums at the discretion of the Commission,
at any time and place the Commission is able to secure
facilities and witnesses, for the purpose of carrying out
the duties of the Commission under this subtitle.
(b) DELEGATION OF AUTHORITY.—Any member or
agent of the Commission may, if authorized by the Com-
mission, take any action the Commission is authorized to
take by this section.
(c) INFORMATION.—The Commission may secure di-
rectly from any Federal agency information necessary to
enable the Commission to carry out its duties under this
subtitle. Upon request of the Chairperson or Vice Chair-
person of the Commission, the head of a Federal agency
shall furnish the information to the Commission to the ex-
tent permitted by law.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Commission.
221
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other Federal agencies.
SEC. 236. REPORTS.
(a) INTERIM REPORT.—Not later than 1 year prior
to the date on which the Commission terminates pursuant
to section 237, the Commission shall submit an interim
report to the President and to the Congress. The interim
report shall contain a detailed statement of the findings
and conclusions of the Commission, together with the
Commission’s recommendations for legislative and admin-
istrative action, based on the activities of the Commission.
(b) FINAL REPORT.—Not later than the date on
which the Commission terminates, the Commission shall
submit to the Congress and to the President a final report
containing—
(1) a detailed statement of final findings, con-
clusions, and recommendations; and
(2) an assessment of the extent to which rec-
ommendations of the Commission included in the in-
terim report under subsection (a) have been imple-
mented.
(c) PRINTING AND PUBLIC DISTRIBUTION.—Upon
receipt of each report of the Commission under this sec-
tion, the President shall—
222
(1) order the report to be printed; and
(2) make the report available to the public upon
request.
SEC. 237. TERMINATION.
The Commission shall terminate on the date that is
2 years after the date on which the members of the Com-
mission have met and designated a Chairperson and Vice
Chairperson.
Subtitle E—State Supplementation
Programs
SEC. 241. REPEAL OF MAINTENANCE OF EFFORT REQUIRE-
MENTS APPLICABLE TO OPTIONAL STATE
PROGRAMS FOR SUPPLEMENTATION OF SSI
BENEFITS.
(a) IN GENERAL.—Section 1618 (42 U.S.C. 1382g)
is repealed.
(b) EFFECTIVE DATE.—The repeal made by sub-
section (a) shall apply with respect to calendar quarters
beginning after September 30, 1995.
223
Subtitle F—Retirement Age
Eligibility
SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY IN-
COME BENEFITS BASED ON SOCIAL SECU-
RITY RETIREMENT AGE.
(a) IN GENERAL.—Section 1614(a)(1)(A) (42 U.S.C.
1382C(a)(1)(A)) is amended by striking ‘‘is 65 years of
age or older,’’ and inserting ‘‘has attained retirement
age.’’.
(b) RETIREMENT AGE DEFINED.—Section 1614 (42
U.S.C. 1382c) is amended by adding at the end the follow-
ing new subsection:
‘‘Retirement Age
‘‘(g) For purposes of this title, the term ‘‘retirement
age’’ has the meaning given such term by section
216(l)(1).’’.
(c) CONFORMING
AMENDMENTS.—Sections 1601,
1612(b)(4), 1615(a)(1), and 1620(b)(2) (42 U.S.C. 1381,
1382a(b)(4), 1382d(a)(1), and 1382i(b)(2)) are amended
by striking ‘‘age 65’’ each place it appears and inserting
‘‘retirement age’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to applicants for benefits for
months beginning after September 30, 1995.
224
TITLE III—FOOD STAMP
PROGRAM
Subtitle A—Food Stamp Reform
SEC. 301. DECLARATION OF POLICY.
Section 2 of the Food Stamp Act of 1977 (7 U.S.C.
2011) is amended by adding at the end the following:
‘‘Congress intends that the food stamp program support
the employment focus and family strengthening mission
of public welfare and welfare replacement programs by—
‘‘(1) facilitating the transition of low-income
families and households from economic dependency
to economic self-sufficiency through work;
‘‘(2) promoting employment as the primary
means of income support for economically dependent
families and households and reducing the barriers to
employment of economically dependent families and
households; and
‘‘(3) maintaining and strengthening healthy
family functioning and family life.’’.
SEC. 301A. CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7
U.S.C. 2012(c)) is amended by striking ‘‘Except as pro-
vided’’ and all that follows and inserting the following:
‘‘The certification period shall not exceed 12 months, ex-
cept that the certification period may be up to 24 months
225
if all adult household members are elderly, disabled, or
primarily self-employed. A State agency shall have at least
1 personal contact with each certified household every 12
months.’’.
SEC. 302. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by
striking ‘‘(who are not themselves parents living with their
children or married and living with their spouses)’’.
SEC. 303. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE
HOUSEHOLD DETERMINATIONS.
(a) IN GENERAL.—Section 3(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(i)) is amended by inserting
after the third sentence the following: ‘‘Notwithstanding
the preceding sentences, a State may establish criteria
that prescribe when individuals who live together, and who
would be allowed to participate as separate households
under the preceding sentences, shall be considered a single
household, without regard to the common purchase of food
and preparation of meals.’’.
(b) CONFORMING AMENDMENT.—The second sen-
tence of section 5(a) of the Act (7 U.S.C. 2014(a)) is
amended by striking ‘‘the third sentence of section 3(i)’’
and inserting ‘‘the fourth sentence of section 3(i)’’.
226
SEC. 304. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting
the following: ‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting
‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and insert-
ing the following: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all
that follows through the end of the subsection and
inserting the following: ‘‘Columbia; and
‘‘(4) on October 1, 1995, and each October 1
thereafter, adjust the cost of the diet to reflect the
cost of the diet, in the preceding June, and round
the result to the nearest lower dollar increment for
each household size, except that on October 1, 1995,
the Secretary may not reduce the cost of the diet in
effect on September 30, 1995.’’.
SEC. 305. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977
(7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
227
SEC. 306. STATE OPTIONS IN REGULATIONS.
Section 5(b) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec-
retary’’ and inserting the following:
‘‘(b) UNIFORM STANDARDS.—Except as otherwise
provided in this Act, the Secretary’’.
SEC. 307. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and in-
serting ‘‘19’’.
SEC. 308. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(d)) is amended by striking
paragraph (11) and inserting the following: ‘‘(11) a one-
time payment or allowance made under a Federal or State
law for the costs of weatherization or emergency repair
or replacement of an unsafe or inoperative furnace or
other heating or cooling device,’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 5(k) of the Act (7 U.S.C. 2014(k))
is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘plan for aid to families with dependent
children approved’’ and inserting ‘‘program
funded’’; and
228
(ii) in subparagraph (B), by striking
‘‘, not including energy or utility-cost as-
sistance,’’; and
(B) in paragraph (2), by striking subpara-
graph (C) and inserting the following:
‘‘(C) a payment or allowance described in sub-
section (d)(11);’’;
(C) by adding at the end the following:
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY-
MENTS.—
‘‘(A) ENERGY
ASSISTANCE
PAYMENTS.—
For purposes of subsection (d)(1), a payment
made under a Federal or State law to provide
energy assistance to a household shall be con-
sidered money payable directly to the house-
hold.
‘‘(B) ENERGY
ASSISTANCE
EXPENSES.—
For purposes of subsection (e)(7), an expense
paid on behalf of a household under a Federal
or State law to provide energy assistance shall
be considered an out-of-pocket expense incurred
and paid by the household.’’.
(2) Section 2605(f) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8624(f))
is amended—
229
(A) by striking ‘‘(f)(1) Notwithstanding’’
and inserting ‘‘(f) Notwithstanding’’;
(B) in paragraph (1), by striking ‘‘food
stamps,’’; and
(C) by striking paragraph (2).
SEC. 309. DEDUCTIONS FROM INCOME.
(a) IN GENERAL.—Section 5 of the Food Stamp Act
of 1977 (7 U.S.C. 2014) is amended by striking sub-
section (e) and inserting the following:
‘‘(e) DEDUCTIONS FROM INCOME.—
‘‘(1) STANDARD DEDUCTION.—
‘‘(A) IN
GENERAL.—The Secretary shall
allow a standard deduction for each household
in the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam, and the Vir-
gin Islands of the United States of—
‘‘(i) for fiscal year 1995, $134, $229,
$189, $269, and $118, respectively;
‘‘(ii) for fiscal year 1996, $132, $225,
$186, $265, and $116, respectively; and
‘‘(iii) for fiscal years 1997 through
2002, $124, $211, $174, $248 and $109,
respectively.
‘‘(B) ADJUSTMENT FOR INFLATION.—On
October 1, 2002, and each October 1 thereafter,
230
the Secretary shall adjust the standard deduc-
tion to the nearest lower dollar increment to re-
flect changes in the Consumer Price Index for
all urban consumers published by the Bureau of
Labor Statistics, for items other than food, for
the 12-month period ending the preceding June
30.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a household with earned in-
come shall be allowed a deduction of 20 percent
of all earned income (other than income ex-
cluded by subsection (d)), to compensate for
taxes, other mandatory deductions from salary,
and work expenses.
‘‘(B) EXCEPTION.—The deduction de-
scribed in subparagraph (A) shall not be al-
lowed 
with 
respect 
to 
determining 
an
overissuance due to the failure of a household
to report earned income in a timely manner.
‘‘(3) DEPENDENT CARE DEDUCTION.—
‘‘(A) IN GENERAL.—A household shall be
entitled, with respect to expenses (other than
excluded expenses described in subparagraph
(B)) for dependent care, to a dependent care
231
deduction, the maximum allowable level of
which shall be $200 per month for each depend-
ent child under 2 years of age and $175 per
month for each other dependent, for the actual
cost of payments necessary for the care of a
dependent if the care enables a household mem-
ber to accept or continue employment, or train-
ing or education that is preparatory for employ-
ment.
‘‘(B) EXCLUDED
EXPENSES.—The ex-
cluded expenses referred to in subparagraph
(A) are—
‘‘(i) expenses paid on behalf of the
household by a third party;
‘‘(ii) amounts made available and ex-
cluded for the expenses referred to in sub-
paragraph (A) under subsection (d)(3);
and
‘‘(iii) expenses that are paid under
section 6(d)(4).
‘‘(4) DEDUCTION
FOR
CHILD
SUPPORT
PAY-
MENTS.—
‘‘(A) IN GENERAL.—A household shall be
entitled to a deduction for child support pay-
ments made by a household member to or for
232
an individual who is not a member of the
household if the household member is legally
obligated to make the payments.
‘‘(B) 
METHODS
FOR
DETERMINING
AMOUNT.—The Secretary may prescribe by reg-
ulation the methods, including calculation on a
retrospective basis, that a State agency shall
use to determine the amount of the deduction
for child support payments.
‘‘(5) HOMELESS
SHELTER
DEDUCTION.—A
State agency may develop a standard homeless shel-
ter deduction, which shall not exceed $139 per
month, for such expenses as may reasonably be ex-
pected to be incurred by households in which all
members are homeless individuals but are not receiv-
ing free shelter throughout the month. A State agen-
cy that develops the deduction may use the deduc-
tion in determining eligibility and allotments for the
households, except that the State agency may pro-
hibit the use of the deduction for households with
extremely low shelter costs.
‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household contain-
ing an elderly or disabled member shall be enti-
tled, with respect to expenses other than ex-
233
penses paid on behalf of the household by a
third party, to an excess medical expense de-
duction for the portion of the actual costs of al-
lowable medical expenses, incurred by the elder-
ly or disabled member, exclusive of special diets,
that exceeds $35 per month.
‘‘(B) METHOD
OF
CLAIMING
DEDUC-
TION.—
‘‘(i) IN
GENERAL.—A State agency
shall offer an eligible household under sub-
paragraph (A) a method of claiming a de-
duction for recurring medical expenses that
are initially verified under the excess medi-
cal expense deduction in lieu of submitting
information or verification on actual ex-
penses on a monthly basis.
‘‘(ii) 
METHOD.—The 
method 
de-
scribed in clause (i) shall—
‘‘(I) be designed to minimize the
burden for the eligible elderly or dis-
abled household member choosing to
deduct the recurrent medical expenses
of the member pursuant to the meth-
od;
234
‘‘(II) rely on reasonable estimates
of the expected medical expenses of
the member for the certification pe-
riod (including changes that can be
reasonably anticipated based on avail-
able information about the medical
condition of the member, public or
private medical insurance coverage,
and the current verified medical ex-
penses incurred by the member); and
‘‘(III) not require further report-
ing or verification of a change in med-
ical expenses if such a change has
been anticipated for the certification
period.
‘‘(7) EXCESS
SHELTER
EXPENSE
DEDUC-
TION.—
‘‘(A) IN GENERAL.—A household shall be
entitled, with respect to expenses other than ex-
penses paid on behalf of the household by a
third party, to an excess shelter expense deduc-
tion to the extent that the monthly amount ex-
pended by a household for shelter exceeds an
amount equal to 50 percent of monthly house-
235
hold income after all other applicable deduc-
tions have been allowed.
‘‘(B) MAXIMUM
AMOUNT
OF
DEDUC-
TION.—
‘‘(i) PRIOR TO SEPTEMBER 30, 1995.—
In the case of a household that does not
contain an elderly or disabled individual,
during the 15-month period ending Sep-
tember 30, 1995, the excess shelter ex-
pense deduction shall not exceed—
‘‘(I) in the 48 contiguous States
and the District of Columbia, $231
per month; and
‘‘(II) in Alaska, Hawaii, Guam,
and the Virgin Islands of the United
States, $402, $330, $280, and $171
per month, respectively.
‘‘(ii) AFTER SEPTEMBER 30, 1995.—In
the case of a household that does not con-
tain an elderly or disabled individual, dur-
ing the 15-month period ending December
31, 1996, the excess shelter expense deduc-
tion shall not exceed—
236
‘‘(I) in the 48 contiguous States
and the District of Columbia, $247
per month; and
‘‘(II) in Alaska, Hawaii, Guam,
and the Virgin Islands of the United
States, $429, $353, $300, and $182
per month, respectively.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
‘‘(i) IN GENERAL.—In computing the
excess shelter expense deduction, a State
agency may use a standard utility allow-
ance in accordance with regulations pro-
mulgated by the Secretary, except that a
State agency may use an allowance that
does not fluctuate within a year to reflect
seasonal variations.
‘‘(ii) RESTRICTIONS ON HEATING AND
COOLING EXPENSES.—An allowance for a
heating or cooling expense may not be used
in the case of a household that—
‘‘(I) does not incur a heating or
cooling expense, as the case may be;
‘‘(II) does incur a heating or
cooling expense but is located in a
public housing unit that has central
237
utility meters and charges households,
with regard to the expense, only for
excess utility costs; or
‘‘(III) shares the expense with,
and lives with, another individual not
participating in the food stamp pro-
gram, another household participating
in the food stamp program, or both,
unless the allowance is prorated be-
tween the household and the other in-
dividual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) 
IN
GENERAL.—A 
State
agency may make the use of a stand-
ard utility allowance mandatory for all
households 
with 
qualifying 
utility
costs if—
‘‘(aa) the State agency has
developed 1 or more standards
that include the cost of heating
and cooling and 1 or more stand-
ards that do not include the cost
of heating and cooling; and
‘‘(bb) the Secretary finds
that the standards will not result
238
in an increased cost to the Sec-
retary.
‘‘(II) HOUSEHOLD
ELECTION.—
A State agency that has not made the
use of a standard utility allowance
mandatory under subclause (I) shall
allow a household to switch, at the
end of a certification period, between
the standard utility allowance and a
deduction based on the actual utility
costs of the household.
‘‘(iv) AVAILABILITY
OF
ALLOWANCE
TO RECIPIENTS OF ENERGY ASSISTANCE.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), if a State agency elects
to use a standard utility allowance
that reflects heating or cooling costs,
the standard utility allowance shall be
made available to households receiving
a payment, or on behalf of which a
payment is made, under the Low-In-
come Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) or
other similar energy assistance pro-
gram, if the household still incurs out-
239
of-pocket heating or cooling expenses
in excess of any assistance paid on be-
half of the household to an energy
provider.
‘‘(II) SEPARATE ALLOWANCE.—A
State agency may use a separate
standard utility allowance for house-
holds on behalf of which a payment
described in subclause (I) is made,
but may not be required to do so.
‘‘(III) STATES NOT ELECTING TO
USE SEPARATE ALLOWANCE.—A State
agency that does not elect to use a
separate allowance but makes a single
standard utility allowance available to
households incurring heating or cool-
ing expenses (other than a household
described in subclause (I) or (II) of
subparagraph (C)(ii)) may not be re-
quired to reduce the allowance due to
the provision (directly or indirectly) of
assistance 
under 
the 
Low-Income
Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.).
240
‘‘(IV) PRORATION
OF
ASSIST-
ANCE.—For the purpose of the food
stamp program, assistance provided
under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C.
8621 et seq.) shall be considered to be
prorated over the entire heating or
cooling season for which the assist-
ance was provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of
the Act (7 U.S.C. 2020(e)(3)) is amended by striking ‘‘.
Under rules prescribed’’ and all that follows through
‘‘verifies higher expenses’’.
SEC. 310. AMOUNT OF VEHICLE ASSET LIMITATION.
The first sentence of section 5(g)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by
striking ‘‘through September 30, 1995’’ and all that fol-
lows through ‘‘such date and on’’ and inserting ‘‘and shall
be adjusted on October 1, 1996, and’’.
SEC. 311. BENEFITS FOR ALIENS.
Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.
2014(i)) is amended—
(1) in the first sentence of paragraph (1)—
(A) by inserting ‘‘or who executed such an
affidavit or similar agreement to enable the in-
241
dividual to lawfully remain in the United
States,’’ after ‘‘respect to such individual,’’; and
(B) by striking ‘‘for a period’’ and all that
follows through the period at the end and in-
serting ‘‘until the end of the period ending on
the later of the date agreed to in the affidavit
or agreement or the date that is 5 years after
the date on which the individual was first law-
fully admitted into the United States following
the execution of the affidavit or agreement.’’;
and
(2) in paragraph (2)—
(A) in subparagraph (C)(i), by striking ‘‘of
three years after entry into the United States’’
and inserting ‘‘determined under paragraph
(1)’’; and
(B) in subparagraph (D), by striking ‘‘of
three years after such alien’s entry into the
United States’’ and inserting ‘‘determined
under paragraph (1)’’.
SEC. 312. DISQUALIFICATION.
(a) IN GENERAL.—Section 6(d) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)) is amended by striking
‘‘(d)(1) Unless otherwise exempted by the provisions’’ and
242
all that follows through the end of paragraph (1) and in-
serting the following:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN
GENERAL.—No physically and
mentally fit individual over the age of 15 and
under the age of 60 shall be eligible to partici-
pate in the food stamp program if the individ-
ual—
‘‘(i) refuses, at the time of application
and every 12 months thereafter, to register
for employment in a manner prescribed by
the Secretary;
‘‘(ii) refuses without good cause to
participate in an employment and training
program under paragraph (4), to the ex-
tent required by the State agency;
‘‘(iii) refuses without good cause to
accept an offer of employment, at a site or
plant not subject to a strike or lockout at
the time of the refusal, at a wage not less
than the higher of—
‘‘(I) the applicable Federal or
State minimum wage; or
243
‘‘(II) 80 percent of the wage that
would have governed had the mini-
mum 
hourly 
rate 
under 
section
6(a)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 206(a)(1))
been applicable to the offer of employ-
ment;
‘‘(iv) refuses without good cause to
provide a State agency with sufficient in-
formation to allow the State agency to de-
termine the employment status or the job
availability of the individual;
‘‘(v) voluntarily and without good
cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and,
after the reduction, the individual is
working less than 30 hours per week;
or
‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD
INELIGIBILITY.—If an
individual who is the head of a household be-
comes ineligible to participate in the food stamp
program under subparagraph (A), the house-
hold shall, at the option of the State agency,
244
become ineligible to participate in the food
stamp program for a period, determined by the
State agency, that does not exceed the lesser
of—
‘‘(i) the duration of the ineligibility of
the individual determined under subpara-
graph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST
VIOLATION.—The first
time that an individual becomes ineligible
to participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph
(A);
‘‘(II) the date that is 1 month
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 3
months after the date the individual
became ineligible.
245
‘‘(ii) SECOND
VIOLATION.—The sec-
ond time that an individual becomes ineli-
gible to participate in the food stamp pro-
gram under subparagraph (A), the individ-
ual shall remain ineligible until the later
of—
‘‘(I) the date the individual be-
comes eligible under subparagraph
(A);
‘‘(II) the date that is 3 months
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 6
months after the date the individual
became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLA-
TION.—The third or subsequent time that
an individual becomes ineligible to partici-
pate in the food stamp program under sub-
paragraph (A), the individual shall remain
ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph
(A);
246
‘‘(II) the date that is 6 months
after the date the individual became
ineligible;
‘‘(III) a date determined by the
State agency; or
‘‘(IV) at the option of the State
agency, permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD
CAUSE.—The Secretary
shall determine the meaning of good cause
for the purpose of this paragraph.
‘‘(ii) VOLUNTARY
QUIT.—The Sec-
retary shall determine the meaning of vol-
untarily quitting and reducing work effort
for the purpose of this paragraph.
‘‘(iii) 
DETERMINATION
BY
STATE
AGENCY.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II) and clauses (i) and (ii),
a State agency shall determine—
‘‘(aa) the meaning of any
term in subparagraph (A);
‘‘(bb) the procedures for de-
termining whether an individual
is in compliance with a require-
247
ment under subparagraph (A);
and
‘‘(cc) whether an individual
is in compliance with a require-
ment under subparagraph (A).
‘‘(II) NOT LESS RESTRICTIVE.—
A State agency may not determine a
meaning, procedure, or determination
under subclause (I) to be less restric-
tive than a comparable meaning, pro-
cedure, or determination under a
State program funded under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(iv) STRIKE AGAINST THE GOVERN-
MENT.—For the purpose of subparagraph
(A)(v), an employee of the Federal Govern-
ment, a State, or a political subdivision of
a State, who is dismissed for participating
in a strike against the Federal Govern-
ment, the State, or the political subdivision
of the State shall be considered to have
voluntarily quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSE-
HOLD.—
248
‘‘(I) IN GENERAL.—For the pur-
pose of this paragraph, the State
agency shall allow the household to se-
lect any adult parent of a child in the
household as the head of the house-
hold if all adult household members
making application under the food
stamp program agree to the selection.
‘‘(II) TIME
FOR
MAKING
DES-
IGNATION.—A household may des-
ignate the head of the household
under subclause (I) each time the
household is certified for participation
in the food stamp program, but may
not change the designation during a
certification period unless there is a
change in the composition of the
household.
‘‘(vi) CHANGE
IN
HEAD
OF
HOUSE-
HOLD.—If the head of a household leaves
the household during a period in which the
household is ineligible to participate in the
food stamp program under subparagraph
(B)—
249
‘‘(I) the household shall, if other-
wise eligible, become eligible to par-
ticipate in the food stamp program;
and
‘‘(II) if the head of the household
becomes the head of another house-
hold, the household that becomes
headed by the individual shall become
ineligible to participate in the food
stamp program for the remaining pe-
riod of ineligibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of
the Act (7 U.S.C. 2026(b)(2)) is amended by strik-
ing ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Act (7 U.S.C. 2029) is
amended by striking subsection (f) and inserting the
following:
‘‘(f) DISQUALIFICATION.—An individual or a house-
hold may become ineligible under section 6(d)(1) to par-
ticipate in the food stamp program for failing to comply
with this section.’’.
SEC. 313. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2015(d)(2)) is amended by striking subparagraph
250
(B) and inserting the following: ‘‘(B) a parent or other
member of a household with responsibility for the care of
(i) a dependent child under the age of 6 or any lower age
designated by the State agency that is not under the age
of 1, or (ii) an incapacitated person;’’.
SEC. 314. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1,
1987, each’’ and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills,
training,’’; and
(C) by adding at the end the following:
‘‘Each component of an employment and train-
ing program carried out under this paragraph
shall be delivered through the statewide
workforce development system established in
section 711 of the Work Opportunity Act of
1995, unless the component is not available lo-
cally through the statewide workforce develop-
ment system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
251
following: ‘‘, except that the State agency shall
retain the option to apply employment require-
ments prescribed under this subparagraph to a
program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms
and conditions’’ and all that follows through
‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II);
and
(ii) by redesignating subclauses (III)
and (IV) as subclauses (I) and (II), respec-
tively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the
application’’ and all that follows through ‘‘30
days or less’’;
(B) in clause (ii), by striking ‘‘but with re-
spect’’ and all that follows through ‘‘child
care’’; and
(C) in clause (iii), by striking ‘‘, on the
basis of’’ and all that follows through ‘‘clause
(ii)’’ and inserting ‘‘the exemption continues to
be valid’’;
252
(4) in subparagraph (E), by striking the third
sentence;
(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and in-
serting ‘‘(G) The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i)
The Secretary’’ and all that follows through ‘‘(ii)
Federal funds’’ and inserting ‘‘(H) Federal funds’’;
(7) in subparagraph (I)(i)(II), by striking ‘‘, or
was in operation,’’ and all that follows through ‘‘So-
cial Security Act’’ and inserting the following: ‘‘),
except that no such payment or reimbursement shall
exceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L)
and inserting the following:
‘‘(K) LIMITATION ON FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to
carry out this paragraph (including under sub-
paragraph (I)) for participants who are receiv-
ing benefits under a State program funded
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) shall not exceed the
amount of funds the State agency used in fiscal
253
year 1995 to carry out this paragraph for par-
ticipants who were receiving benefits in fiscal
year 1995 under a State program funded under
part A of title IV of the Act (42 U.S.C. 601 et
seq.).’’; and
(B) by redesignating subparagraphs (M) and
(N) as subparagraphs (L) and (M), respectively; and
(9) in subparagraph (L) (as redesignated by
paragraph (8)(B))—
(A) by striking ‘‘(L)(i) The Secretary’’ and
inserting ‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) EFFECTIVE DATE.—The amendment made by
subsection (a)(1)(C) shall take effect—
(1) in a State described in section 815(b)(1), on
July 1, 1997; and
(2) in any other State, on July 1, 1998.
(c) FUNDING.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended by striking ‘‘(h)(1)(A) The Sec-
retary’’ and all that follows through the end of paragraph
(1) and inserting the following:
‘‘(h) FUNDING
OF EMPLOYMENT
AND TRAINING
PROGRAMS.—
‘‘(1) IN GENERAL.—
254
‘‘(A) AMOUNTS.—To carry out employ-
ment and training programs, the Secretary
shall reserve for allocation to State agencies
from funds made available for each fiscal year
under section 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $77,000,000;
‘‘(ii) 
for 
fiscal 
year 
1997,
$80,000,000;
‘‘(iii) 
for 
fiscal 
year 
1998,
$83,000,000;
‘‘(iv) 
for 
fiscal 
year 
1999,
$86,000,000;
‘‘(v) 
for 
fiscal 
year 
2000,
$89,000,000;
‘‘(vi) 
for 
fiscal 
year 
2001,
$92,000,000; and
‘‘(vii) 
for 
fiscal 
year 
2002,
$95,000,000.
‘‘(B) ALLOCATION.—The Secretary shall
allocate the amounts reserved under subpara-
graph (A) among the State agencies using a
reasonable formula (as determined by the Sec-
retary) that gives consideration to the popu-
lation in each State affected by section 6(n).
‘‘(C) REALLOCATION.—
255
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that the State
agency will not expend all of the funds al-
located to the State agency under subpara-
graph (B).
‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will
not expend as the Secretary considers ap-
propriate and equitable.
‘‘(D) MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency
operating an employment and training program
shall receive not less than $50,000 in each fis-
cal year.’’.
(d) 
ADDITIONAL
MATCHING
FUNDS.—Section
16(h)(2) of the Act (7 U.S.C. 2025(h)(2)) is amended by
inserting before the period at the end the following: ‘‘, in-
cluding the costs for case management and casework to
facilitate the transition from economic dependency to self-
sufficiency through work’’.
(e) REPORTS.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended—
256
(1) in paragraph (5)—
(A) by striking ‘‘(5)(A) The Secretary’’
and inserting ‘‘(5) The Secretary’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 315. COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended—
(1) by redesignating subsection (i) (as added by
section 106) as subsection (o); and
(2) by inserting after subsection (h) the follow-
ing:
‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.—
‘‘(1) IN GENERAL.—If a disqualification is im-
posed on a member of a household for a failure of
the member to perform an action required under a
Federal, State, or local law relating to a welfare or
public assistance program, the State agency may im-
pose the same disqualification on the member of the
household under the food stamp program.
‘‘(2) RULES AND PROCEDURES.—If a disquali-
fication is imposed under paragraph (1) for a failure
of an individual to perform an action required under
257
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title
IV of the Act to impose the same disqualification
under the food stamp program.
‘‘(3) APPLICATION
AFTER
DISQUALIFICATION
PERIOD.—A member of a household disqualified
under paragraph (1) may, after the disqualification
period has expired, apply for benefits under this Act
and shall be treated as a new applicant, except that
a prior disqualification under subsection (d) shall be
considered in determining eligibility.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)) is amended—
(1) in paragraph (24), by striking ‘‘and’’ at the
end; and
(2) by adding at the end the following:
‘‘(26) the guidelines the State agency uses in
carrying out section 6(i);’’.
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A)
of the Act (7 U.S.C. 2015(d)(2)(A)) is amended by strik-
ing ‘‘that is comparable to a requirement of paragraph
(1)’’.
258
SEC. 316. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 315) is further amended
by inserting after subsection (i) the following:
‘‘(j) CUSTODIAL
PARENT’S
COOPERATION
WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), no natu-
ral or adoptive parent or other individual (collec-
tively referred to in this subsection as ‘the individ-
ual’) who is living with and exercising parental con-
trol over a child under the age of 18 who has an ab-
sent parent shall be eligible to participate in the food
stamp program unless the individual cooperates with
the State agency administering the program estab-
lished under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD
CAUSE
FOR
NONCOOPERATION.—
Paragraph (1) shall not apply to the individual if
good cause is found for refusing to cooperate, as de-
termined by the State agency in accordance with
259
standards prescribed by the Secretary in consulta-
tion with the Secretary of Health and Human Serv-
ices. The standards shall take into consideration cir-
cumstances under which cooperation may be against
the best interests of the child.
‘‘(3) FEES.—Paragraph (1) shall not require
the payment of a fee or other cost for services pro-
vided under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.).
‘‘(k) NONCUSTODIAL PARENT’S COOPERATION WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), a puta-
tive or identified noncustodial parent of a child
under the age of 18 (referred to in this subsection
as ‘the individual’) shall not be eligible to participate
in the food stamp program if the individual refuses
to cooperate with the State agency administering the
program established under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
260
‘‘(A) GUIDELINES.—The Secretary, in con-
sultation with the Secretary of Health and
Human Services, shall develop guidelines on
what constitutes a refusal to cooperate under
paragraph (1).
‘‘(B) PROCEDURES.—The State agency
shall develop procedures, using guidelines devel-
oped under subparagraph (A), for determining
whether an individual is refusing to cooperate
under paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require
the payment of a fee or other cost for services pro-
vided under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide
safeguards to restrict the use of information col-
lected by a State agency administering the program
established under part D of title IV of the Social Se-
curity Act (42 U.S.C. 651 et seq.) to purposes for
which the information is collected.’’.
SEC. 317. DISQUALIFICATION FOR CHILD SUPPORT AR-
REARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 316) is further amended
by inserting after subsection (k) the following:
261
‘‘(l) DISQUALIFICATION FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN GENERAL.—At the option of a State
agency, except as provided in paragraph (2), no indi-
vidual shall be eligible to participate in the food
stamp program as a member of any household dur-
ing any month that the individual is delinquent in
any payment due under a court order for the sup-
port of a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) a court is allowing the individual to
delay payment; or
‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.)
to provide support for the child of the individ-
ual.’’.
SEC. 318. PERMANENT DISQUALIFICATION FOR PARTICI-
PATING IN 2 OR MORE STATES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 317) is further amended
by inserting after subsection (l) the following:
262
‘‘(m) PERMANENT DISQUALIFICATION FOR PARTICI-
PATING IN 2 OR MORE STATES.—An individual shall be
permanently ineligible to participate in the food stamp
program as a member of any household if the individual
is found by a State agency to have made, or 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 benefits si-
multaneously from 2 or more States under the food stamp
program.’’.
SEC. 319. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) (as amended by section 318) is
further amended by inserting after subsection (m) the fol-
lowing:
‘‘(n) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this
subsection, the term ‘work program’ means—
‘‘(A) a program under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the
Trade Act of 1974 (19 U.S.C. 2296); or
‘‘(C) a program of employment or training
operated or supervised by a State or political
subdivision of a State that meets standards ap-
263
proved by the Governor of the State, including
a program under section 6(d)(4) other than a
job search program or a job search training
program under clause (i) or (ii) of section
6(d)(4)(B).
‘‘(2) WORK
REQUIREMENT.—No individual
shall be eligible to participate in the food stamp pro-
gram as a member of any household if, during the
preceding 12-month period, the individual received
food stamp benefits for not less than 6 months dur-
ing which the individual did not—
‘‘(A) work 20 hours or more per week,
averaged monthly; or
‘‘(B) participate in and comply with the re-
quirements of a work program for 20 hours or
more per week, as determined by the State
agency.
‘‘(3) EXCEPTION.—Paragraph (2) shall not
apply to an individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or
mentally unfit for employment;
‘‘(C) a parent or other member of a house-
hold with responsibility for a dependent child;
or