I
104TH CONGRESS
1ST SESSION
H. R. 1157
To restore families, promote work, protect endangered children, increase per-
sonal responsibility, attack welfare dependency, reduce welfare fraud,
and improve child support collections.
IN THE HOUSE OF REPRESENTATIVES
MARCH 8, 1995
Mr. ARCHER introduced the following bill; which was referred to the Commit-
tee on Ways and Means, and in addition to the Committees on Economic
and Educational Opportunities, Commerce, the Judiciary, National Secu-
rity, and Government Reform and Oversight, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To restore families, promote work, protect endangered chil-
dren, increase personal responsibility, attack welfare de-
pendency, reduce welfare fraud, and improve child sup-
port collections.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Welfare Trans-
formation Act of 1995’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES
Sec. 101. Block grants to States.
Sec. 102. Report on data processing.
Sec. 103. Transfers.
Sec. 104. Conforming amendments to the Social Security Act.
Sec. 105. Conforming amendments to other laws.
Sec. 106. Continued application of current standards under medicaid program.
Sec. 107. Effective date.
TITLE II—CHILD PROTECTION BLOCK GRANT PROGRAM
Sec. 201. Establishment of program.
Sec. 202. Conforming amendments.
Sec. 203. Continued application of current standards under medicaid program.
Sec. 204. Effective date.
TITLE III—RESTRICTING WELFARE FOR ALIENS
Sec. 301. Statements of national policy concerning welfare and immigration.
Sec. 302. Ineligibility of aliens for Federal public welfare assistance.
Sec. 303. Ineligibility of illegal aliens for State and local public welfare assist-
ance.
Sec. 304. State authority to limit eligibility of other aliens for State and local
public welfare assistance.
Sec. 305. Attribution of sponsor’s income and resources to family-sponsored im-
migrants.
Sec. 306. Requirements for sponsor’s affidavit of support.
Sec. 307. Definitions.
Sec. 308. State agencies required to provide information on illegal aliens to the
Immigration and Naturalization Service.
TITLE IV—SUPPLEMENTAL SECURITY INCOME
Sec. 401. Denial of supplemental security income benefits by reason of disabil-
ity to drug addicts and alcoholics.
Sec. 402. Supplemental security income benefits for disabled children.
Sec. 403. Examination of mental listings used to determine eligibility of chil-
dren for SSI benefits by reason of disability.
Sec. 404. Limitation on payments to Puerto Rico, the Virgin Islands, and
Guam under programs of aid to the aged, blind, or disabled.
Sec. 405. Repeal of maintenance of effort requirements applicable to optional
State programs for supplementation of SSI benefits.
TITLE V—CHILD SUPPORT
Sec. 500. References.
Subtitle A—Case Registries, Eligibility for Services, and Distribution of
Payments
Sec. 501. Case registries; State obligation to provide child support enforcement
services.
Sec. 502. Distribution of child support collections.
Sec. 503. Privacy safeguards.
Subtitle B—Locate and Case Tracking
Sec. 511. State case registry.
Sec. 512. Collection and disbursement of support payments.
Sec. 513. State Directory of New Hires.
Sec. 514. Amendments concerning income withholding.
Sec. 515. Locator information from interstate networks.
Sec. 516. Expanded Federal Parent Locator Service.
Sec. 517. Collection and use of social security numbers for use in child support
enforcement.
Subtitle C—Streamlining and Uniformity of Procedures
Sec. 521. Adoption of uniform State laws.
Sec. 522. Improvements to full faith and credit for child support orders.
Sec. 523. Administrative enforcement in interstate cases.
Sec. 524. Use of forms in interstate enforcement.
Sec. 525. State laws providing expedited procedures.
Subtitle D—Paternity Establishment
Sec. 531. State laws concerning paternity establishment.
Sec. 532. Outreach for voluntary paternity establishment.
Sec. 533. Cooperation by applicants for and recipients of temporary family as-
sistance.
Subtitle E—Program Administration and Funding
Sec. 541. Federal matching payments.
Sec. 542. Performance-based incentives and penalties.
Sec. 543. Federal and State reviews and audits.
Sec. 544. Required reporting procedures.
Sec. 545. Automated data processing requirements.
Sec. 546. Technical assistance.
Sec. 547. Reports and data collection by the Secretary.
Subtitle F—Establishment and Modification of Support Orders
Sec. 551. Simplified process for review and adjustment of child support orders.
Subtitle G—Enforcement of Support Orders
Sec. 561. Federal income tax refund offset.
Sec. 562. Authority to collect support from Federal employees.
Sec. 563. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 564. Voiding of fraudulent transfers.
Sec. 565. Sense of the Congress that States should suspend drivers’, business,
and occupational licenses of persons owing past-due child sup-
port.
Sec. 566. Work requirement for persons owing past-due child support.
Sec. 567. Definition of support order.
Subtitle H—Medical Support
Sec. 571. Technical correction to ERISA definition of medical child support
order.
Subtitle I—Enhancing Responsibility and Opportunity for Nonresidential
Parents
Sec. 581. Grants to States for access and visitation programs.
Subtitle J—Effect of Enactment
Sec. 591. Effective dates.
TITLE I—BLOCK GRANTS FOR
TEMPORARY 
ASSISTANCE
FOR NEEDY FAMILIES
SEC. 101. BLOCK GRANTS TO STATES.
Title IV of the Social Security Act (42 U.S.C. 601
et seq.) is amended by striking part A, except sections
403(h) and 417, and inserting the following:
‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘SEC. 401. PURPOSE.
‘‘The purpose of this part is to increase the flexibility
of States in operating a program designed to—
‘‘(1) provide assistance to needy families so that
the children in such families may be cared for in
their homes or in the homes of relatives;
‘‘(2) end the dependence of needy parents on
government benefits by promoting work and mar-
riage; and
‘‘(3) discourage out-of-wedlock births.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that, during the 3-year period immediately preceding the
fiscal year, has submitted to the Secretary a plan that in-
cludes the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—A written document that outlines how the
State intends to do the following:
‘‘(A) Conduct a program designed to—
‘‘(i) provide cash benefits to needy
families with children; and
‘‘(ii) provide parents of children in
such families with work experience, assist-
ance in finding employment, and other
work preparation activities and support
services that the State considers appro-
priate to enable such families to leave the
program and become self-sufficient.
‘‘(B) Require at least 1 parent of a child
in any family which has received benefits for
more than 24 months (whether or not consecu-
tive) under the program to engage in work ac-
tivities (as defined by the State).
‘‘(C) Ensure that parents receiving assist-
ance under the program engage in work activi-
ties in accordance with section 404.
‘‘(D) Treat interstate immigrants, if fami-
lies including such immigrants are to be treated
differently than other families.
‘‘(E) Take such reasonable steps as the
State deems necessary to restrict the use and
disclosure of information about individuals and
families receiving benefits under the program.
‘‘(F) Take actions to reduce the incidence
of out-of-wedlock births, which may include pro-
viding unmarried mothers and unmarried fa-
thers with services which will help them—
‘‘(i) avoid subsequent pregnancies;
and
‘‘(ii) provide adequate care to their
children.
‘‘(G) Reduce teenage pregnancy, including
(at the option of the State) through the provi-
sion of education, counseling, and health serv-
ices to male and female teenagers.
‘‘(2) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
SUPPORT
ENFORCEMENT
PRO-
GRAM.—A certification by the Governor of the State
that, during the fiscal year, the State will operate a
child support enforcement program under the State
plan approved under part D, in a manner that com-
plies with the requirements of such part.
‘‘(3) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE A CHILD PROTECTION PROGRAM.—A cer-
tification by the Governor of the State that, during
the fiscal year, the State will operate a child protec-
tion program in accordance with part B, which in-
cludes a foster care program and an adoption assist-
ance program.
‘‘(b) DETERMINATIONS.—The Secretary shall deter-
mine whether a plan submitted pursuant to subsection (a)
contains the material required by subsection (a).
‘‘SEC. 403. PAYMENTS TO STATES.
‘‘(a) ENTITLEMENTS.—
‘‘(1) GRANTS FOR FAMILY ASSISTANCE.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary
for each fiscal year specified in subsection
(b)(1) a grant in an amount equal to the State
share of the family assistance amount for the
fiscal year.
‘‘(B) GRANT
INCREASED
TO
REWARD
STATES
THAT
REDUCE
OUT-OF-WEDLOCK
BIRTHS.—The amount of the grant payable to
a State under subparagraph (A) for fiscal year
1998 or any succeeding fiscal year shall be in-
creased by—
‘‘(i) 5 percent if the illegitimacy ratio
of the State for the fiscal year is at least
1 percentage point lower than the illegit-
imacy ratio of the State for fiscal year
1995; or
‘‘(ii) 10 percent if the illegitimacy
ratio of the State for the fiscal year is at
least 2 percentage points lower than the il-
legitimacy ratio of the State for fiscal year
1995.
‘‘(2) SUPPLEMENTAL GRANTS TO ADJUST FOR
POPULATION INCREASES.—In addition to any grant
under paragraph (1), each eligible State shall be en-
titled to receive from the Secretary for each of fiscal
years 1997, 1998, 1999, and 2000, a grant in an
amount 
equal 
to 
the 
State 
proportion 
of
$100,000,000.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) FAMILY ASSISTANCE AMOUNT.—The term
‘family assistance amount’ means $15,355,000,000
for each of fiscal years 1996, 1997, 1998, 1999, and
2000.
‘‘(2) STATE
SHARE.—The term ‘State share’
means—
‘‘(A) the amount paid to the State under
section 403 of this title (as in effect before Oc-
tober 1, 1995) for fiscal year 1994 (other than
with respect to amounts expended for child care
under subsection (g) or (i) of such section); di-
vided by
‘‘(B) the total amount paid to all of the
States under such section for fiscal year 1994
(other than with respect to amounts expended
for such child care).
‘‘(3) ILLEGITIMACY RATIO.—The term ‘illegit-
imacy ratio’ means, with respect to a State and a
fiscal year—
‘‘(A) the sum of—
‘‘(i) the number of out-of-wedlock
births that occurred in the State during
the most recent fiscal year for which such
information is available; and
‘‘(ii) the amount (if any) by which the
number of abortions performed in the
State during the most recent fiscal year for
which such information is available exceeds
the number of abortions performed in the
State during the fiscal year that imme-
diately precedes such most recent fiscal
year; divided by
‘‘(B) the number of births that occurred in
the State during the most recent fiscal year for
which such information is available.
‘‘(4) STATE
PROPORTION.—The term ‘State
proportion’ means, with respect to a fiscal year, the
amount that bears the same ratio to the amount
specified in subsection (a)(2) as the increase (if any)
in the population of the State for the most recent
fiscal year for which such information is available
over the population of the State for the fiscal year
that immediately precedes such most recent fiscal
year bears to the total increase in the population of
all States which have such an increase in population,
as determined by the Secretary using data from the
Bureau of the Census.
‘‘(5) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(6) STATE.—The term ‘State’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.
‘‘(c) USE OF GRANT.—
‘‘(1) IN GENERAL.—A State to which a grant
is made under this section may use the grant in any
manner that is reasonably calculated to accomplish
the purpose of this part, subject to this part, includ-
ing to provide noncash assistance to mothers who
have not attained 18 years of age and their children
and to provide low income households with assist-
ance in meeting home heating and cooling costs.
‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI-
GRANTS UNDER RULES OF FORMER STATE.—A State
to which a grant is made under this section may
apply to a family the rules of the program operated
under this part of another State if the family has
moved to the State from the other State and has re-
sided in the State for less than 12 months.
‘‘(3) AUTHORITY TO USE PORTION OF GRANT
FOR OTHER PURPOSES.—
‘‘(A) IN GENERAL.—A State may use not
more than 30 percent of the amount of the
grant made to the State under this section for
a fiscal year to carry out a State program pur-
suant to any or all of the following provisions
of law:
‘‘(i) Part B of this title.
‘‘(ii) Title XX of this Act.
‘‘(iv) Any provision of law, enacted
into law during the 104th Congress, under
which grants are made to States for food
and nutrition.
‘‘(iv) The Child Care and Develop-
ment Block Grant Act of 1990.
‘‘(B) APPLICABLE
RULES.—Any amount
paid to the State under this part that is used
to carry out a State program pursuant to a pro-
vision of law specified in subparagraph (A)
shall not be subject to the requirements of this
part, but shall be subject to the requirements
that apply to Federal funds provided directly
under the provision of law to carry out the pro-
gram.
‘‘(4) 
AUTHORITY
TO
RESERVE
CERTAIN
AMOUNTS FOR EMERGENCY BENEFITS.—
‘‘(A) IN GENERAL.—A State may reserve
amounts paid to the State under this section
for any fiscal year for the purpose of providing
port required by section 406 for the fiscal year,
the Secretary shall reduce by 3 percent the
amount of the grant that would (in the absence
of this subsection, subsection (a)(1)(B) of this
section, and section 404(c)(2)) be payable to
the State under subsection (a)(1)(A) for the im-
mediately succeeding fiscal 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.
‘‘(C) FOR
FAILURE
TO
PARTICIPATE
IN
THE
INCOME
AND
ELIGIBILITY
VERIFICATION
SYSTEM.—If the Secretary determines that a
State program funded under this part is not
participating during a fiscal year in the income
and eligibility verification system required by
section 1137, the Secretary shall reduce by 1
percent the amount of the grant that would (in
the absence of this subsection, subsection
(a)(1)(B) of this section, and section 404(c)(2))
be payable to the State under subsection
(a)(1)(A) for the fiscal year.
‘‘(f) LIMITATION
ON FEDERAL AUTHORITY.—The
Secretary may not regulate the conduct of States under
this part or enforce any provision of this part, except to
the extent expressly provided in this part.
‘‘(g) FEDERAL RAINY DAY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a revolv-
ing loan fund which shall be known as the ‘Federal
Rainy Day Fund’.
‘‘(2) DEPOSITS INTO FUND.—
‘‘(A) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, $1,000,000,000 are hereby
appropriated for fiscal year 1996 for payment
to the Federal Rainy Day Fund.
‘‘(B) LOAN REPAYMENTS.—The Secretary
shall deposit into the fund any principal or in-
terest payment received with respect to a loan
made under this subsection.
‘‘(3) AVAILABILITY.—Amounts in the fund are
authorized to remain available without fiscal year
limitation for the purpose of making loans and re-
ceiving payments of principal and interest on such
loans, in accordance with this subsection.
‘‘(4) USE OF FUND.—
‘‘(A) LOANS TO QUALIFIED STATES.—
‘‘(i) IN
GENERAL.—The Secretary
shall make loans from the fund to any
qualified State for a period to maturity of
not more than 3 years.
‘‘(ii) RATE OF INTEREST.—The Sec-
retary shall charge and collect interest on
any loan made under clause (i) at a rate
equal to the current average market yield
on outstanding marketable obligations of
the United States with remaining periods
to maturity comparable to the period to
maturity of the loan.
‘‘(iii) MAXIMUM LOAN.—The amount
of any loan made to a State under clause
(i) during a fiscal year shall not exceed the
lesser of—
‘‘(I) 50 percent of the amount of
the grant payable to the State under
this section for the fiscal year; or
‘‘(II) $100,000,000.
‘‘(B) QUALIFIED
STATE
DEFINED.—A
State is a qualified State for purposes of sub-
paragraph (A) if the unemployment rate of the
State (as determined by the Bureau of Labor
Statistics) for the most recent 3-month period
for which such information is available is—
‘‘(i) more than 6.5 percent; and
‘‘(ii) at least 110 percent of such rate
for the corresponding 3-month period in ei-
ther of the 2 immediately preceding cal-
endar years.
‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) REQUIREMENT APPLICABLE TO 1-PARENT
FAMILIES RECEIVING ASSISTANCE.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 for a fiscal
year shall achieve the minimum participation
rate specified in the following table for the fis-
cal year with respect to 1-parent families receiv-
ing assistance under the State program funded
under this part:
The minimum
‘‘If the fiscal year is:
participation rate is:
1996 ....................................................................................
1997 ....................................................................................
1998 ....................................................................................
1999 ....................................................................................
2000 ....................................................................................
2001 ....................................................................................
2002 ....................................................................................
2003 or thereafter ..............................................................
50.
‘‘(B) PRO RATA REDUCTION OF PARTICIPA-
TION RATE FOR CASELOAD REDUCTIONS.—The
minimum participation rate otherwise required
by subparagraph (A) for a fiscal year shall be
reduced by a percentage equal to the percentage
(if any) by which the number of families receiv-
ing assistance during the fiscal year under the
State program funded under this part is less
than the number of families that received aid
under the State plan approved under part A of
this title (as in effect before the effective date
of this part) during the fiscal year immediately
preceding such effective date.
‘‘(C) PARTICIPATION RATE.—For purposes
of this paragraph:
‘‘(i) AVERAGE MONTHLY RATE.—The
participation rate of a State for a fiscal
year is the average of the participation
rates of the State for each month in the
fiscal year.
‘‘(ii) 
MONTHLY
PARTICIPATION
RATES.—The participation rate of a State
for a month is—
‘‘(I) the number of 1-parent fam-
ilies which receive cash assistance
under the State program funded
under this part and in which the par-
ent is engaged in work activities for
the month; divided by
‘‘(II) the total number of 1-par-
ent families which receive cash assist-
ance under the State program funded
under this part during the month and
in which the parent has attained 18
years of age.
‘‘(2) REQUIREMENT APPLICABLE TO 2-PARENT
FAMILIES.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 for a fiscal
year shall achieve the minimum participation
rate specified in the following table for the fis-
cal year with respect to 2-parent families receiv-
ing assistance under the State program funded
under this part:
The minimum
‘‘If the fiscal year is:
participation rate is:
1996 ....................................................................................
1997 ....................................................................................
1998 or thereafter ..............................................................
90.
‘‘(B) PARTICIPATION RATE.—For purposes
of this paragraph:
‘‘(i) AVERAGE MONTHLY RATE.—The
participation rate of a State for a fiscal
year is the average of the participation
rates of the State for each month in the
fiscal year.
‘‘(ii) 
MONTHLY
PARTICIPATION
RATES.—The participation rate of a State
for a month is—
‘‘(I) the number of 2-parent fam-
ilies which receive cash assistance
under the State program funded
under this part and in which at least
1 parent is engaged in work activities
for the month; divided by
‘‘(II) the total number of 2-par-
ent families receiving cash assistance
under the State program funded
under this part during the month.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) ENGAGE IN WORK ACTIVITIES.—The term
‘engage in work activities’ means, with respect to
parent and a month, to make progress in work ac-
tivities for at least the minimum average number of
hours per week specified in the following table dur-
ing the month, not fewer than 20 hours per week of
which are attributable to an activity described in
subparagraph (A), (B), (C), or (D) of paragraph
(2):
‘‘If the month is in fiscal year:
The minimum average
number of hours per week
is:
1996 ...................................................................................................
1997 ...................................................................................................
1998 ...................................................................................................
1999 ...................................................................................................
2000 ...................................................................................................
2001 ...................................................................................................
2002 ...................................................................................................
2003 or thereafter ..............................................................................
35.
‘‘(2) WORK ACTIVITIES.—The term ‘work ac-
tivities’ means—
‘‘(A) unsubsidized employment;
‘‘(B) subsidized employment;
‘‘(C) subsidized public sector employment
or work experience;
‘‘(D) on-the-job training;
‘‘(E) job search;
‘‘(F) education and training directly relat-
ed to employment;
‘‘(G) job skills training directly related to
employment; or
‘‘(H) at the option of the State, satisfac-
tory attendance at secondary school, in the case
of a parent who has not completed secondary
school and who has not attained 20 years of
age.
‘‘(3) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(c) PENALTIES.—
‘‘(1) AGAINST INDIVIDUALS.—
‘‘(A) APPLICABLE
TO
1-PARENT
FAMI-
LIES.—A State to which a grant is made under
section 403 for a fiscal year shall ensure that
the amount of cash assistance paid under the
State program funded under this part to a re-
cipient of assistance under the program who is
the parent in a 1-parent family and who refuses
to engage in work activities required under this
section shall be less than the amount of cash
assistance that would otherwise be paid to the
recipient under the program, subject to such
good cause and other exceptions as the State
may establish.
‘‘(B) APPLICABLE
TO
2-PARENT
FAMI-
LIES.—A State to which a grant is made under
section 403 for a fiscal year shall reduce the
amount of cash assistance otherwise payable to
a 2-parent family for a month under the State
program funded under this part with respect to
a parent in the family who is not engaged in
work activities required under this section, pro
rata (or more, at the option of the State) with
respect to any period during the month for
which the parent is not so engaged.
‘‘(2) AGAINST STATES.—If the Secretary deter-
mines that a State to which a grant is made under
section 403 for a fiscal year has failed to comply
with subsection (a) of this section for the fiscal year,
the Secretary shall reduce by not more than 5 per-
cent the amount of the grant that would (in the ab-
sence of this paragraph and subsections (a)(1)(B)
and (e) of section 403) be payable to the State
under section 403(a)(1)(A) for the immediately suc-
ceeding fiscal year.
‘‘(d) RULE OF INTERPRETATION.—This section shall
not be construed to prohibit a State from offering recipi-
ents of assistance under the State program funded under
this part an opportunity to participate in an education or
training program before requiring the recipients to work
or engage in a work program.
‘‘(e) SENSE
OF
THE
CONGRESS
THAT
STATES
SHOULD
IMPOSE
CERTAIN
REQUIREMENTS
ON
NONCUSTODIAL, NONSUPPORTING MINOR PARENTS.—It
is the sense of the Congress that the States should require
noncustodial, nonsupporting parents who have not at-
tained 18 years of age to fulfill community work obliga-
tions and attend appropriate parenting or money manage-
ment classes after school.
‘‘(f) RESEARCH.—The Secretary shall conduct re-
search on the costs and benefits of State activities under
this section.
‘‘(g) EVALUATION OF INNOVATIVE APPROACHES TO
EMPLOYING
RECIPIENTS
OF
ASSISTANCE.—The Sec-
retary shall evaluate innovative approaches to employing
recipients of assistance under State programs funded
under this part.
‘‘(h) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Sec-
retary shall rank the States to which grants are paid
under section 403 in the order of their success in
moving recipients of assistance under the State pro-
gram funded under this part into long-term private
sector jobs.
‘‘(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.
‘‘SEC. 405. PROHIBITIONS.
‘‘(a) IN GENERAL.—
‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A
MINOR CHILD.—A State to which a grant is made
under section 403 may not use any part of the grant
to provide assistance to a family, unless the family
includes a minor child.
‘‘(2) CERTAIN
PAYMENTS
NOT
TO
BE
DIS-
REGARDED IN DETERMINING THE AMOUNT OF AS-
SISTANCE TO BE PROVIDED TO A FAMILY.—
‘‘(A) INCOME SECURITY PAYMENTS.—If a
State to which a grant is made under section
403 uses any part of the grant to provide as-
sistance for any individual who is receiving a
payment under a State plan for old-age assist-
ance approved under section 2, a State program
funded under part B that provides cash pay-
ments for foster care, or the supplemental secu-
rity income program under title XVI (other
than service benefits provided through the use
of a grant made under part C of such title),
then the State may not disregard the payment
in determining the amount of assistance to be
provided to the family of which the individual is
a member under the State program funded
under this part.
‘‘(B) CERTAIN
SUPPORT
PAYMENTS.—A
State to which a grant is made under section
403 may not disregard an amount distributed
to a family under section 457(a)(1)(A) in deter-
mining the income of the family for purposes of
eligibility for assistance under the State pro-
gram funded under this part.
‘‘(3) NO ASSISTANCE FOR CERTAIN ALIENS.—
Notwithstanding subsection (c)(1), a State to which
a grant is made under section 403 may not use any
part of the grant to provide assistance for an indi-
vidual who is not a citizen or national of the United
States, unless—
‘‘(A)(i) the individual is admitted to the
United States as a refugee under section 207 of
the Immigration and Nationality Act; and
‘‘(ii) 5 years has elapsed since the date the
individual arrived in the United States;
‘‘(B) the individual—
‘‘(i) is lawfully admitted to the United
States for permanent residence;
‘‘(ii) has attained 75 years of age; and
‘‘(iii) has resided in the United States
for at least 5 years; or
‘‘(C) the individual is honorably discharged
from the Armed Forces of the United States.
‘‘(4) NO
ASSISTANCE
FOR
OUT-OF-WEDLOCK
BIRTHS TO MINORS.—
‘‘(A) GENERAL RULE.—a State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for a child born out-of-wedlock to an individual
who has not attained 18 years of age, or for the
individual, until the individual attains such age.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
to a child who is born as a result of rape or in-
cest.
‘‘(5) NO ADDITIONAL ASSISTANCE FOR CHIL-
DREN BORN TO FAMILIES RECEIVING ASSISTANCE.—
‘‘(A) GENERAL RULE.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for a minor child who is born to—
‘‘(i) a recipient of benefits under the
program operated under this part; or
‘‘(ii) a person who received such bene-
fits at any time during the 10-month pe-
riod ending with the birth of the child.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
to a child who is born as a result of rape or
incest.
‘‘(6) NO
ASSISTANCE
FOR
MORE
THAN
YEARS.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for the family of an individual who, after at-
taining 18 years of age, has received benefits
under the program operated under this part for
60 months (whether or not consecutive) after
the effective date of this part, except as pro-
vided under subparagraph (B).
‘‘(B) HARDSHIP EXCEPTION.—
‘‘(i) IN GENERAL.—The State may ex-
empt a family from the application of sub-
paragraph (A) by reason of hardship.
‘‘(ii) LIMITATION.—The number of
families with respect to which an exemp-
tion made by a State under clause (i) is in
effect shall not exceed 10 percent of the
number of families to which the State is
providing assistance under the program op-
erated under this part.
‘‘(7) NO ASSISTANCE FOR FAMILIES NOT CO-
OPERATING IN PATERNITY ESTABLISHMENT.—Not-
withstanding subsection (c)(1), a State to which a
grant is made under section 403 may not use any
part of the grant to provide assistance to a family
that includes an individual whom the agency respon-
sible for administering the State plan approved
under part D determines is not cooperating with the
State in establishing the paternity of any child of
the individual.
‘‘(8) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
SUPPORT
RIGHTS
TO
THE
STATE.—Not-
withstanding subsection (c)(1), a State to which a
grant is made under section 403 may not use any
part of the grant to provide assistance to a family
that includes an individual who has not assigned to
the State any rights the individual may have (on be-
half of the individual or of any other person for
whom the individual has applied for or is receiving
such assistance) to support from any other person
for any period for which the individual receives such
assistance.
‘‘(9) WITHHOLDING
OF
PORTION
OF
ASSIST-
ANCE
FOR
FAMILIES
WHICH
INCLUDE
A
CHILD
WHOSE PATERNITY IS NOT ESTABLISHED.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not fail
to—
‘‘(i) withhold assistance under the
State program funded under this part from
a family which includes a child whose pa-
ternity is not established, in an amount
equal to $50 or 15 percent of the amount
of the assistance that would (in the ab-
sence of this paragraph) be provided to the
family with respect to the child, whichever
the State elects; or
‘‘(ii) provide to the family the total
amount of assistance so withheld once the
paternity of the child is established, if the
family is then eligible for such assistance.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—Sub-
paragraph (A) shall not apply with respect to a child
who is born as a result of rape or incest.
‘‘(10) DENIAL OF ASSISTANCE FOR 10 YEARS
TO A PERSON CONVICTED OF FRAUDULENTLY MIS-
REPRESENTING
RESIDENCE
TO
A
WELFARE
PRO-
GRAM.—A State to which a grant is made under sec-
tion 403 may not use any part of the grant to pro-
vide assistance to an individual during the 10-year
period that begins with the date the individual is
convicted in Federal or State court of making a
fraudulent statement or representation with respect
to the place of residence of the person in order to
receive benefits or services under 2 or more pro-
grams that are funded under this part.
‘‘(b) MINOR CHILD DEFINED.—As used in sub-
section (a), the term ‘minor child’ means an individual—
‘‘(1) who has not attained 18 years of age; or
‘‘(2) who—
‘‘(A) has not attained 19 years of age; and
‘‘(B) is a full-time student in a secondary
school (or in the equivalent level of vocational
or technical training).
‘‘SEC. 406. DATA COLLECTION AND REPORTING.
‘‘(a) IN GENERAL.—Each State to which a grant is
made under section 403 for a fiscal year shall, not later
than 6 months after the end of the fiscal year, transmit
to the Secretary the following aggregate information on
families to which assistance was provided during the fiscal
year under the State program operated under this part:
‘‘(1) The number of adults in the families.
‘‘(2) The number of children in the families and
the average age of the children.
‘‘(3) The basis of the eligibility of the families
for such assistance.
‘‘(4) In the case of 2-parent families, the num-
ber with unemployed parents.
‘‘(5) The number of 1-parent families in which
the parent is a widow or widower, is divorced, is sep-
arated, or has never married.
‘‘(6) The age, race, educational attainment, and
employment status of the parents in the families.
‘‘(7) The number of the families with earned in-
come, and the average monthly earnings of the fami-
lies.
‘‘(8) The income of the families from the pro-
gram.
‘‘(9) Whether, at the time of application for as-
sistance under the program, the families or any
member of the families receives benefits under any
of the following:
‘‘(A) Any housing program.
‘‘(B) The food stamp program under the
Food Stamp Act of 1977.
‘‘(C) The Head Start programs carried out
under the Head Start Act.
‘‘(D) Any job training program.
‘‘(10) The number of months, since the most
recent application for assistance under the program,
for which such assistance has been provided to the
families.
‘‘(11) The total number of months for which
assistance has been provided to the families under
the program.
‘‘(12) Any other data necessary to indicate
whether the State is in compliance with the plan
most recently submitted by the State pursuant to
section 402.
‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—
A State may comply with the requirement to provide pre-
cise numerical information described in subsection (a) by
submitting an estimate which is obtained through the use
of scientifically acceptable sampling methods.
‘‘(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 the percentage of the funds paid
to the State under this part for the fiscal year that are
used to cover administrative 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 programs for needy families.
‘‘(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 (as defined in section 404(b)(1)) during the
fiscal year.
‘‘SEC. 407. 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 Welfare Transformation Act of 1995
on a random national sample of recipients of assistance
under State programs funded under this part and (as ap-
propriate) other low income families, and in doing so, shall
pay particular attention to the issues of out-of-wedlock
birth, welfare dependency, the beginning and end of 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. 102. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date
of the enactment of this Act, the Secretary of Health and
Human Services shall prepare and submit to the Congress
a report on—
(1) the status of the automated data processing
systems operated by the States to assist manage-
ment in the administration of State programs under
part A of title IV of the Social Security Act (wheth-
er in effect before or after October 1, 1995); and
(2) what would be required to establish a sys-
tem capable of—
(A) tracking participants in public pro-
grams over time; and
(B) checking case records of the States to
determine whether individuals are participating
in public programs of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by
subsection (a) should include—
(1) a plan for building on the automated data
processing systems of the States to establish a sys-
tem with the capabilities described in subsection
(a)(2); and
(2) an estimate of the amount of time required
to establish such a system and of the cost of estab-
lishing such a system.
SEC. 103. TRANSFERS.
(a) CHILD SUPPORT REVIEW PENALTIES.—
(1) TRANSFER OF PROVISION.—Section 403 of
the Social Security Act, as added by the amendment
made by section 101 of this Act, is amended by add-
ing at the end subsection (h) of section 403, as in
effect immediately before the effective date of this
title.
(2) 
CONFORMING
AMENDMENT.—Section
403(h)(3) of such Act, as in effect pursuant to para-
graph (1) of this subsection, is amended by striking
‘‘, section 402(a)(27),’’.
(b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—
(1) REDESIGNATION
OF
PROVISION.—Section
417 of such Act (42 U.S.C. 617), as in effect imme-
diately before the effective date of this title, is
amended by striking the following:
‘‘ASSISTANT SECRETARY FOR FAMILY SUPPORT’’
‘‘SEC. 417.’’
and inserting the following:
‘‘SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.’’.
(2) TRANSFER OF PROVISION.—Part A of title
IV of such Act, as added by the amendment made
by section 101 of this Act, is amended by adding at
the end the section amended by paragraph (1) of
this subsection.
(3) CONFORMING
AMENDMENT.—Section 408
of such Act, as added by paragraph (2) of this sub-
section is amended by striking ‘‘, part D, and part
F’’ and inserting ‘‘and part D’’.
SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL
SECURITY ACT.
(a) AMENDMENTS TO TITLE II.—
(1) Section 205(c)(2)(C)(vi) of the Social Secu-
rity Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesig-
nated by section 321(a)(9)(B) of the Social Security
Independence and Program Improvements Act of
1994, is amended—
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) of such Act (42 U.S.C.
428(d)(1)) is amended by inserting ‘‘under a State
program funded under’’ before ‘‘part A of title IV’’.
(b) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 of such Act (42 U.S.C. 651) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(2) Section 452(a)(10)(C) of such Act (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 ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’.
(3) Section 452(a)(10)(F) of such Act (42
U.S.C. 652(a)(10)(F)) is amended—
(A) by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State
program funded’’; and
(B) by striking ‘‘in accordance with the
standards 
referred 
to 
in 
section
402(a)(26)(B)(ii)’’ 
and 
inserting 
‘‘by 
the
State’’.
(4) Section 452(a) of such Act (42 U.S.C.
652(a)) is amended in the last sentence by striking
‘‘plan approved’’ and inserting ‘‘program funded’’.
(5) Section 452(b) of such Act (42 U.S.C.
652(b)) is amended in the last sentence by striking
‘‘plan approved under part A’’ and inserting ‘‘pro-
gram funded under part A’’.
(6) Section 452(d)(3)(B)(i) of such Act (42
U.S.C. 652(d)(3)(B)(i)) is amended by striking
‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
(7) Section 452(g)(2)(A)(ii)(I) of such Act (42
U.S.C. 652(g)(2)(A)(ii)(I)) is amended—
(A) by inserting ‘‘assistance is being pro-
vided under the State program funded under
part A or’’ before ‘‘aid’’; and
(B) by striking ‘‘A or’’.
(8) Section 452(g)(2)(A) of such Act (42
U.S.C. 652(g)(2)(A)) is amended in the matter fol-
lowing clause (iii) by striking ‘‘aid is being provided
under the State’s plan approved’’ and inserting ‘‘as-
sistance is being provided under the State program
funded’’.
(9) Section 452(g)(2) of such Act (42 U.S.C.
652(g)(2)) is amended—
(A) by striking ‘‘who is a dependent child
by reason of the death of a parent’’ and insert-
ing ‘‘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 ‘‘pursuant to section 405(a)(8)’’.
(10) Section 452(h) of such Act (42 U.S.C.
652(h)) is amended by striking ‘‘under section
402(a)(26)’’ and inserting ‘‘pursuant to section
405(a)(8)’’.
(11) Section 454(5) of such Act (42 U.S.C.
654(5)) is amended—
(A) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’;
and
(B) by striking ‘‘except that this para-
graph shall not apply to such payments for any
month following the first month in which the
amount collected is sufficient to make such
family ineligible for assistance under the State
plan approved under part A;’’.
(12) Section 454(6)(D) of such Act (42 U.S.C.
654(6)(D)) is amended by striking ‘‘aid under a
State plan approved’’ and inserting ‘‘assistance
under a State program funded’’.
(13) Section 456 of such Act (42 U.S.C. 656)
is amended by striking ‘‘under section 402(a)(26)’’
each place such term appears and inserting ‘‘pursu-
ant to section 405(a)(8)’’.
(14) Section 464(a)(1) of such Act (42 U.S.C.
664(a)(1)) is amended by striking ‘‘402(a)(26)’’ and
inserting ‘‘405(a)(8)’’.
(15) Section 466(a)(3)(B) of such Act (42
U.S.C. 666(a)(3)(B)) is amended by striking
‘‘402(a)(26)’’ and inserting ‘‘405(a)(8)’’.
(16) Section 466(a)(10)(B)(i) of such Act (42
U.S.C. 666(a)(10)(B)(i)) is amended by striking
‘‘under section 402(a)(26)’’ and inserting ‘‘pursuant
to section 405(a)(8)’’.
(17) Section 466(b)(2) of such Act (42 U.S.C.
666(b)(2)) is amended by striking ‘‘aid’’ and insert-
ing ‘‘assistance under a State program funded’’.
(c) REPEAL OF PART F OF TITLE IV.—Part F of
title IV of such Act (42 U.S.C. 681–687) is hereby re-
pealed.
(d) AMENDMENT TO TITLE X.—Section 1002(a)(7)
of such Act (42 U.S.C. 1202(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’’.
(e) AMENDMENTS TO TITLE XI.—
(1) Section 1108 of such Act (42 U.S.C. 1308)
is amended—
(A) by striking subsections (a), (b), (d),
and (e); and
(B) by striking ‘‘(c)’’.
(2) Section 1109 of such Act (42 U.S.C. 1309)
is amended by striking ‘‘or part A of title IV,’’.
(3) Section 1115(a) of such Act (42 U.S.C.
1315(a)) is amended—
(A) in the matter preceding paragraph (1),
by striking ‘‘A or’’;
(B) in paragraph (1), by striking ‘‘402,’’;
and
(C) in paragraph (2), by striking ‘‘403,’’.
(4) Section 1116 of such Act (42 U.S.C. 1316)
is amended—
(A) in each of subsections (a)(1), (d), and
(d), by striking ‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking
‘‘404,’’;
(5) Section 1118 of such Act (42 U.S.C. 1318)
is amended—
(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’;
and
(C) by striking ‘‘and shall, in the case of
American Samoa, mean 75 per centum with re-
spect to part A of title IV’’.
(6) Section 1119 of such Act (42 U.S.C. 1319)
is amended—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a)’’.
(7) Section 1133(a) of such Act (42 U.S.C.
1320b–3(a)) is amended by striking ‘‘or part A of
title IV,’’.
(8) Section 1136 of such Act (42 U.S.C.
1320b–6) is hereby repealed.
(9) Section 1137 of such Act (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)(2)—
(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.
(g) 
AMENDMENT
TO
TITLE
XIV.—Section
1402(a)(7) of such Act (42 U.S.C. 1352(a)(7)) is amend-
ed by striking ‘‘aid to families with dependent children
under the State plan approved under section 402 of this
Act’’ and inserting ‘‘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) of
such Act, 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 ‘‘assist-
ance under a State program funded’’.
(i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT
TO
THE STATES.—Section 1611(c)(5)(A) of
such Act (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. 105. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemploy-
ment Compensation Amendments of 1976 (42 U.S.C.
603a) 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)),
‘‘(2) by a State or local agency charged with
the duty of carrying a State plan for child support
approved under part D of title IV of the Social Se-
curity Act,
shall be considered to constitute expenses incurred in the
administration of such State plan.’’.
(b) Paragraph (9) of section 51(d) of the Internal
Revenue Code of 1986 is amended by striking all that fol-
lows ‘‘agency as’’ and inserting ‘‘being eligible for financial
assistance under part A of title IV of the Social Security
Act and as having continually received such financial as-
sistance during the 90-day period which immediately pre-
cedes the date on which such individual is hired by the
employer.’’
(c) Section 9121 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.
(d) Section 9122 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.
(e) 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 hereby repealed.
(f) Section 159 of the Tax Equity and Fiscal Respon-
sibility Act of 1982 (42 U.S.C. 602 note) is hereby re-
pealed.
(g) Section 202(d) of the Social Security Amend-
ments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is here-
by repealed.
(h) Section 233 of the Social Security Act Amend-
ments of 1994 (42 U.S.C. 602 note) is hereby repealed.
(i) 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
(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’’.
SEC. 106. CONTINUED APPLICATION OF CURRENT STAND-
ARDS UNDER MEDICAID PROGRAM.
(a) IN GENERAL.—Title XIX of the Social Security
Act 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
(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) of such Act (42 U.S.C. 1396a(c)) is amended by
striking ‘‘if—’’ and all that follows and inserting the fol-
lowing: ‘‘if the State requires individuals described in sub-
section (l)(1) to apply for assistance under the State pro-
gram funded under part A of title IV as a condition of
applying for or receiving medical assistance under this
title.’’.
(2) Section 1903(i) of such Act (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. 107. EFFECTIVE DATE.
(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) DELAYED APPLICABILITY
OF AUTHORITY TO
TEMPORARILY REDUCE ASSISTANCE FOR CERTAIN FAMI-
LIES WHICH INCLUDE A CHILD WHOSE PATERNITY IS
NOT ESTABLISHED.—Section 405(a)(9) of the Social Se-
curity Act, as added by the amendment made by section
101 of this Act, shall not apply to individuals who, imme-
diately before the effective date of this title, are recipients
of aid under a State plan approved under part A of title
IV of the Social Security Act, until the end of the 1-year
(or, at the option of the State, 2-year) period that begins
with such effective date.
(c) TRANSITION RULE.—The amendments made by
this title shall not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to aid or services
provided before the effective date of this title under
the provisions amended; and
(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such provisions.
TITLE II—CHILD PROTECTION
BLOCK GRANT PROGRAM
SEC. 201. ESTABLISHMENT OF PROGRAM.
Part B of title IV of the Social Security Act (42
U.S.C. 620–635) is amended to read as follows:
‘‘PART B—BLOCK GRANTS TO STATES FOR THE
PROTECTION OF CHILDREN
‘‘SEC. 421. PURPOSE.
‘‘The purpose of this part is to enable eligible States
to carry out a child protection program to—
‘‘(1) identify and assist families at risk of abus-
ing or neglecting their children;
‘‘(2) operate a system for receiving reports of
abuse or neglect of children;
‘‘(3) investigate families reported to abuse or
neglect their children;
‘‘(4) provide support, treatment, and family
preservation services to families which are, or are at
risk of, abusing or neglecting their children;
‘‘(5) support children who must be removed
from or who cannot live with their families;
‘‘(6) make timely decisions about permanent liv-
ing arrangements for children who must be removed
from or who cannot live with their families; and
‘‘(7) provide for continuing evaluation and im-
provement of child protection laws, regulations, and
services.
‘‘SEC. 422. ELIGIBLE STATES.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that, during the 3-year period immediately preceding the
fiscal year, has submitted to the Secretary a plan that in-
cludes the following:
‘‘(1) OUTLINE
OF
CHILD
PROTECTION
PRO-
GRAM.—A written document that outlines the activi-
ties the State intends to conduct to achieve the pur-
pose of this part, including the procedures to be
used for—
‘‘(A) receiving reports of child abuse or ne-
glect;
‘‘(B) investigating such reports;
‘‘(C) protecting children in families in
which child abuse or neglect is found to have
occurred;
‘‘(D) removing children from dangerous
settings;
‘‘(E) protecting children in foster care;
‘‘(F) promoting timely adoptions;
‘‘(G) protecting the rights of families;
‘‘(H) preventing child abuse and neglect;
and
‘‘(I) establishing and responding to citizen
review panels under section 425.
‘‘(2) CERTIFICATION OF STATE LAW REQUIRING
THE REPORTING OF CHILD ABUSE AND NEGLECT.—
A certification that the State has in effect laws that
require public officials and other professionals to re-
port actual or suspected instances of child abuse or
neglect.
‘‘(3) CERTIFICATION OF STATE PROGRAM TO
INVESTIGATE CHILD ABUSE AND NEGLECT CASES.—
A certification that the State has in effect a pro-
gram to investigate child abuse and neglect cases.
‘‘(4) CERTIFICATION
OF
STATE
PROCEDURES
FOR REMOVAL AND PLACEMENT OF ABUSED OR NE-
GLECTED CHILDREN.—A certification that the State
has in effect procedures for removal from families
and placement of abused or neglected children.
‘‘(5) CERTIFICATION
OF
STATE
PROCEDURES
FOR DEVELOPING AND REVIEWING WRITTEN PLANS
FOR PERMANENT PLACEMENT OF REMOVED CHIL-
DREN.—A certification that the State has in effect
procedures for ensuring that a written plan is pre-
pared for children who have been removed from their
families, which specifies the goal for achieving a per-
manent placement for the child in a timely fashion,
for ensuring that the written plan is reviewed every
6 months, and for ensuring that information about
such children is collected regularly and recorded in
case records, and a description of such procedures.
‘‘(6) CERTIFICATION
THAT
THE
STATE
WILL
CONTINUE
TO
HONOR
ADOPTION
ASSISTANCE
AGREEMENTS.—A certification that the State will
honor any adoption assistance agreement (as defined
in section 475(3), as in effect immediately before the
effective date of this part) entered into by an agency
of the State, that is in effect as of such effective
date.
‘‘(7) CERTIFICATION OF STATE PROGRAM TO
PROVIDE INDEPENDENT LIVING SERVICES.—A cer-
tification that the State has in effect a program to
provide independent living services to individuals in
the child protection program of the State who have
attained 16 years of age but have not attained 20
(or, at the option of the State, 22) years of age, and
who do not have a family to which to be returned
for assistance in making the transition to self-suffi-
cient adulthood.
‘‘(8) IDENTIFICATION
OF
CHILD
PROTECTION
GOALS.—The quantitative goals of the State child
protection program.
‘‘(b) DETERMINATIONS.—The Secretary shall deter-
mine whether a plan submitted pursuant to subsection (a)
contains the material required by subsection (a). The Sec-
retary may not require a State to include in such a plan
any material not described in subsection (a), and may not
review the adequacy of State procedures.
‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.
‘‘(a) ENTITLEMENT.—
‘‘(1) IN GENERAL.—Each eligible State shall be
entitled to receive from the Secretary for each fiscal
year specified in subsection (b)(1) a grant in an
amount equal to the State share of the child protec-
tion amount for the fiscal year.
‘‘(2) ADDITIONAL GRANT.—
‘‘(A) IN GENERAL.—In addition to a grant
under paragraph (1) of this subsection, the Sec-
retary shall pay to each eligible State for each
fiscal year specified in subsection (b)(1) an
amount equal to the State share of the amount
(if any) appropriated pursuant to subparagraph
(B) of this paragraph for the fiscal year.
‘‘(B) LIMITATION ON AUTHORIZATION OF
APPROPRIATIONS.—For grants under subpara-
graph (A), there are authorized to be appro-
priated to the Secretary an amount not to ex-
ceed $514,000,000 for each fiscal year specified
in subsection (b)(1).
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) CHILD PROTECTION AMOUNT.—The term
‘child protection grant amount’ means—
‘‘(A) $3,930,000,000 for fiscal year 1996;
‘‘(B) $4,195,000,000 for fiscal year 1997;
‘‘(C) $4,507,000,000 for fiscal year 1998;
‘‘(D) $4,767,000,000 for fiscal year 1999;
and
‘‘(E) $5,071,000,000 for fiscal year 2000.
‘‘(2) STATE SHARE.—
‘‘(A) IN
GENERAL.—The term ‘State
share’ means the greater of—
‘‘(i)(I) the total amount paid to the State
under the provisions of law specified in sub-
paragraph (B) for fiscal years 1991, 1992,
1993, and 1994; divided by
‘‘(II) the total amount paid to all of the
States under such provisions of law for such fis-
cal years; or
‘‘(ii)(I) the amount paid to the State under
the provisions of law specified in subparagraph
(B) for fiscal year 1994; divided by
‘‘(II) the total amount paid to all of the
States under such provisions of law for fiscal
year 1994.
‘‘(B) PROVISIONS
OF
LAW.—The provi-
sions of law specified in this subparagraph are
the following (as in effect immediately before
the effective date of this part):
‘‘(i) Section 474(a) (other than sub-
paragraphs (C) and (D) of paragraph (3))
of this Act.
‘‘(ii) Section 304 of the Family Vio-
lence Prevention and Services Act.
‘‘(iii) Section 107(a) of the Child
Abuse Prevention and Treatment Act.
‘‘(iv) Section 201(d) of the Child
Abuse Prevention and Treatment Act.
‘‘(v) Section 423 of this Act.
‘‘(3) STATE.—The term ‘State’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.
‘‘(c) USE OF GRANT.—
‘‘(1) IN GENERAL.—A State to which a grant
is made under this section may use the grant in any
manner that the State deems appropriate to accom-
plish the purpose of this part, including setting up
abuse and neglect reporting systems, abuse and ne-
glect prevention, family preservation, foster care,
adoption, program administration, and training.
‘‘(2) TIMING OF EXPENDITURES.—A State to
which a grant is made under this section for a fiscal
year shall expend the total amount of the grant not
later than the end of the immediately succeeding fis-
cal year.
‘‘(3) RULE
OF
INTERPRETATION.—This part
shall not be interpreted to prohibit short- and long-
term foster care facilities operated for profit from
receiving funds provided under this part.
‘‘(d) TIMING OF PAYMENTS.—The Secretary shall
pay each eligible State the amount of the grant payable
to the State under this section in quarterly installments.
‘‘(e) PENALTIES.—
‘‘(1) FOR
USE
OF
GRANT
IN
VIOLATION
OF
THIS PART.—
‘‘(A) IN GENERAL.—If an audit conducted
pursuant to chapter 75 of title 31, United
States Code, finds that an amount paid to a
State under this section for a fiscal year has
been used in violation of this part, then the
Secretary shall reduce the amount of the grant
that would (in the absence of this subsection)
be payable to the State under this section for
the immediately succeeding fiscal year by the
amount so used.
‘‘(B) LIMITATION.—In carrying out sub-
paragraph (A), the Secretary shall not reduce
any quarterly payment by more than 25 per-
cent.
‘‘(C) CARRYFORWARD
OF
UNRECOVERED
PENALTY.—To the extent that subparagraph
(B) prevents the Secretary from recovering dur-
ing a fiscal year the full amount of a penalty
imposed on a State under subparagraph (A) for
a prior fiscal year, the Secretary shall apply
subparagraph (A) to the grant otherwise pay-
able to the State under this section for the im-
mediately succeeding fiscal year.
‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—If
an audit conducted pursuant to chapter 75 of title
31, United States Code, finds that the amount ex-
pended by a State (other than from amounts pro-
vided by the Federal Government) during fiscal year
1996 or 1997 to carry out the State program funded
under this part is less than the total amount ex-
pended by the State (other than from amounts pro-
vided by the Federal Government) during fiscal year
1995 under parts B and E of this title, then the
Secretary shall reduce the amount of the grant that
would (in the absence of this subsection) be payable
to the State under this section for the immediately
succeeding fiscal year by the amount of the dif-
ference.
‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—
‘‘(A) IN
GENERAL.—The Secretary shall
reduce by 3 percent the amount of the grant
that would (in the absence of this subsection)
be payable to a State under this section for a
fiscal year if the Secretary determines that the
State has not submitted the report required by
section 427(b) for the immediately preceding
fiscal year, within 6 months after the end of the
immediately preceding fiscal 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.
‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—Except
as expressly provided in this part, the Secretary may not
regulate the conduct of States under this part or enforce
any provision of this part.
‘‘SEC. 424. CHILD PROTECTION STANDARDS.
‘‘Each State to which a grant is made under section
423 shall operate a child protection program in accordance
with the following standards in order to assure the protec-
tion of children:
‘‘(1) The primary standard by which a State
child welfare system shall be judged is the protection
of children.
‘‘(2) Each State shall investigate reports of
abuse and neglect promptly.
‘‘(3) Children removed from their homes shall
have a permanency plan and a dispositional hearing
by a court or a court-appointed body within 3
months after a fact-finding hearing.
‘‘(4) All child protection cases in which the
child is placed outside the home shall be reviewed
every 6 months unless the child is in a long-term
placement.
‘‘SEC. 425. CITIZEN REVIEW PANELS.
‘‘(a) ESTABLISHMENT.—Each State to which a grant
is made under section 423 shall establish at least 3 citizen
review panels.
‘‘(b) COMPOSITION.—Each panel established under
subsection (a) shall be broadly representative of the com-
munity from which drawn.
‘‘(c) FREQUENCY OF MEETINGS.—Each panel estab-
lished under subsection (a) shall meet not less frequently
than quarterly.
‘‘(d) DUTIES.—
‘‘(1) IN
GENERAL.—Each panel established
under subsection (a) shall, by examining specific
cases, determine the extent to which the State and
local agencies responsible for carrying out activities
under this part are doing so in accordance with the
State plan, with the child protection standards set
forth in section 424, and with any other criteria that
the panel considers important to ensure the protec-
tion of children.
‘‘(2) CONFIDENTIALITY.—The members and
staff of any panel established under subsection (a)
shall not disclose to any person or government any
information about any specific child protection case
with respect to which the panel is provided informa-
tion.
‘‘(e) STATE ASSISTANCE.—Each State that estab-
lishes a panel under subsection (a) shall afford the panel
access to any information on any case that the panel de-
sires to review, and shall provide the panel with staff as-
sistance in performing its duties.
‘‘(f) REPORTS.—Each panel established under sub-
section (a) shall make a public report of its activities after
each meeting.
‘‘SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING
AND RUNAWAY CHILDREN.
‘‘(a) IN GENERAL.—The Secretary shall establish
and operate a clearinghouse of information on children
who are missing or have run away from home, including
a 24-hour toll-free telephone hotline which may be con-
tacted for information on such children.
‘‘(b) LIMITATION
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—To carry out subsection (a), there are au-
thorized to be appropriated to the Secretary not to exceed
$3,000,000 for each fiscal year.
‘‘SEC. 427. DATA COLLECTION AND REPORTING.
‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE
GOALS.—On the date that is 3 years after the effective
date of this part and annually thereafter, each State to
which a grant is made under section 423 shall submit to
the Secretary a report that contains quantitative informa-
tion on the extent to which the State is making progress
toward achieving the goals of the State child protection
program.
‘‘(b) ANNUAL STATE DATA REPORTS.—Each State
to which a grant is made under section 423 shall annually
submit to the Secretary of Health and Human Services
a report that includes the following:
‘‘(1) The number of children who were reported
to the State during the year as abused or neglected.
‘‘(2) Of the number of children described in
paragraph (1), the number with respect to whom
such reports were substantiated.
‘‘(3) Of the number of children described in
paragraph (2)—
‘‘(A) the number that did not receive serv-
ices during the year under the State program
funded under this part;
‘‘(B) the number that received services
during the year under the State program fund-
ed under this part; and
‘‘(C) the number that were removed from
their families during the year.
‘‘(4) The number of families that received pre-
ventive services from the State during the year.
‘‘(5) Of the number of families described in
paragraph (4), the number with respect to whom
there is a confirmed report of abuse or neglect of a
child.
in section 101 of title 38, United States Code) with
a discharge characterized as an honorable discharge
and who is lawfully residing in any State or any ter-
ritory or possession of the United States.
(4) CURRENT LEGAL RESIDENT EXCEPTION.—
Subsection (a) shall not apply to the eligibility of an
alien for a program referred to in subsection (c)
until 1 year after the date of the enactment of this
Act if, on such date of enactment, the alien is law-
fully residing in any State or any territory or posses-
sion of the United States and is eligible for the pro-
gram.
(c) PROGRAMS
FOR WHICH ALIENS ARE INELI-
GIBLE.—The programs referred to in this subsection are
the following:
(1) SSI.—The supplemental security income
program under title XVI of the Social Security Act.
(2) TEMPORARY ASSISTANCE FOR NEEDY FAMI-
LIES.—The program of block grants to States for
temporary assistance for needy families under part
A of title IV of the Social Security Act.
(3) SOCIAL SERVICES BLOCK GRANT.—The pro-
gram of block grants to States for social services
under title XX of the Social Security Act.
(d) NOTIFICATION.—Each Federal agency that ad-
ministers a program referred to in subsection (c) shall,
directly or through the States, post information and pro-
vide general notification to the public and program recipi-
ents of the changes regarding eligibility for any such pro-
gram pursuant to this section.
SEC. 303. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE
AND LOCAL PUBLIC WELFARE ASSISTANCE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as otherwise provided in this sec-
tion, no alien who is not lawfully present in the United
States (as determined in accordance with regulations of
the Attorney General) shall be eligible for any State
means-tested public assistance program (as defined in sec-
tion 307(c)). An individual shall not be considered to be
lawfully present in the United States for purposes of this
title merely because the alien may be considered to be per-
manently residing in the United States under color of law.
(b) GENERAL EXCEPTION FOR CERTAIN EMERGENCY
AND PUBLIC HEALTH PROGRAMS.—The limitations under
subsection (a) shall not apply to—
(1) the provision of emergency medical services,
or
(2) public health assistance for immunizations
with respect to immunizable diseases and for testing
and treatment for communicable diseases.
(c) CONSTRUCTION.—Nothing in this section shall be
construed as addressing alien eligibility for State and local
governmental programs that are not State means-tested
public assistance programs.
SEC. 304. STATE AUTHORITY TO LIMIT ELIGIBILITY OF
OTHER ALIENS FOR STATE AND LOCAL PUB-
LIC WELFARE ASSISTANCE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as otherwise provided in this sec-
tion, a State is authorized to determine eligibility require-
ments for aliens who are lawfully present in the United
States and who are not described in paragraph (1), (2),
or (3) of section 302(b) for any State means-tested public
assistance program.
(b) GENERAL EXCEPTION FOR CERTAIN EMERGENCY
AND PUBLIC HEALTH PROGRAMS.—The limitations under
subsection (a) shall not apply to—
(1) the provision of emergency medical services,
or
(2) public health assistance for immunizations
with respect to immunizable diseases and for testing
and treatment for communicable diseases.
(c) TRANSITION.—The limitations of subsection (a)
shall not apply to eligibility of an alien for a State means-
tested public assistance program until 1 year after the
date of the enactment of this Act if, on such date of enact-
ment, the alien is residing in the United States and is
eligible for benefits under the program. Nothing in the
previous sentence is intended to address alien eligibility
for such a program before the date of the enactment of
this Act.
(d) CONSTRUCTION.—Nothing in this section shall be
construed as addressing alien eligibility for State and local
governmental programs that are not State means-tested
public assistance programs.
SEC. 305. ATTRIBUTION OF SPONSOR’S INCOME AND RE-
SOURCES 
TO 
FAMILY-SPONSORED 
IMMI-
GRANTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, in determining the eligibility and the amount
of benefits of an alien for any means-tested public assist-
ance program (as defined in section 307(c)), the income
and resources of the alien shall be deemed to include—
(1) the income and resources of any person who
executed an affidavit of support pursuant to section
306 in behalf of such alien, and
‘‘(i) the average level of such expendi-
tures maintained by the State for the 2-
year period preceding October 1, 1995 (ex-
cept that, if such first fiscal year is other
than fiscal year 1997, the amount of such
average level shall be increased to the ex-
tent necessary to offset the effect of infla-
tion occurring after October 1, 1995); and
‘‘(ii) the aggregate of non-Federal ex-
penditures made by the State for such 2-
year period pursuant to section 1618 (as
such section was in effect for such period).
‘‘(B) For each subsequent fiscal year, the
amount applicable under subparagraph (A) in-
creased to the extent necessary to offset the ef-
fect of inflation occurring after the beginning of
the fiscal year to which such subparagraph ap-
plies.
‘‘(2) RELEVANT PURPOSES.—The purposes de-
scribed in this paragraph are any purposes designed
to meet (or assist in meeting) the unique needs of
qualifying children that arise from physical and
mental impairments, including such purposes that
are authorized to be carried out under title XIX.
109
(17) Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended—
(A) in paragraph (1)(B), by striking
‘‘amounts of such benefits’’ and inserting
‘‘amounts of cash benefits under this title’’;
(B) in paragraph (2), by inserting ‘‘cash’’
before ‘‘benefits’’ each place such term appears;
(C) by redesignating the 2nd paragraph
(6) and paragraph (7) as paragraphs (7) and
(8), respectively; and
(D) in paragraph (7) (as so redesignated),
by inserting ‘‘cash’’ before ‘‘benefits’’.
(18) Section 1631(g)(2) of such Act (42 U.S.C.
1383(g)(2)) is amended by striking ‘‘supplemental
security income’’ and inserting ‘‘cash’’.
(19) Section 1635(a) of such Act (42 U.S.C.
1383d(a)) is amended by striking ‘‘by reason of dis-
ability or blindness’’.
(e) TEMPORARY ELIGIBILITY FOR CASH BENEFITS
FOR POOR DISABLED CHILDREN RESIDING IN STATES
APPLYING ALTERNATIVE INCOME ELIGIBILITY STAND-
ARDS UNDER MEDICAID.—For the period that begins with
the 1st month that begins 90 or more days after the date
of the enactment of this Act and ends on September 30,
1996, an individual shall be considered to be an eligible