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moved from the brewery without payment of tax for destruc-
tion.’’
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect at the beginning of the first cal-
endar quarter beginning more than 180 days after the date
of the enactment of this Act.
SEC. 11645. TRANSFER TO BREWERY OF BEER IMPORTED IN
BULK WITHOUT PAYMENT OF TAX.
(a) IN GENERAL.—Part II of subchapter G of chapter
51 is amended by adding at the end the following new sec-
tion:
‘‘SEC. 5418. BEER IMPORTED IN BULK.
‘‘Beer imported or brought into the United States in
bulk containers may, under such regulations as the Sec-
retary may prescribe, be withdrawn from customs custody
and transferred in such bulk containers to the premises of
a brewery without payment of the internal revenue tax im-
posed on such beer. The proprietor of a brewery to which
such beer is transferred shall become liable for the tax on
the beer withdrawn from customs custody under this section
upon release of the beer from customs custody, and the im-
porter, or the person bringing such beer into the United
States, shall thereupon be relieved of the liability for such
tax.’’
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(b) CLERICAL AMENDMENT.—The table of sections for
such part II is amended by adding at the end the following
new item:
‘‘Sec. 5418. Beer imported in bulk.’’
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect at the beginning of the first calendar
quarter beginning more than 180 days after the date of the
enactment of this Act.
Subchapter B—Consolidation of Taxes on
Aviation Gasoline
SEC. 11651. CONSOLIDATION OF TAXES ON AVIATION GASO-
LINE.
(a) IN
GENERAL.—Subparagraph (A) of section
4081(a)(2) (relating to imposition of tax on gasoline and
diesel fuel) is amended by redesignating clause (ii) as clause
(iii) and by striking clause (i) and inserting the following:
‘‘(i) in the case of gasoline other than
aviation gasoline, 18.3 cents per gallon,
‘‘(ii) in the case of aviation gasoline,
19.3 cents per gallon, and’’.
(b) TERMINATION.—Subsection (d) of section 4081 is
amended by redesignating paragraph (2) as paragraph (3)
and by inserting after paragraph (1) the following new
paragraph:
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‘‘(2) AVIATION GASOLINE.—On and after Janu-
ary 1, 1996, the rate specified in subsection
(a)(2)(A)(ii) shall be 4.3 cents per gallon.’’
(c) REPEAL OF RETAIL LEVEL TAX.—
(1) Subsection (c) of section 4041 is amended by
striking paragraphs (2) and (3) and by redesignating
paragraphs (4) and (5) as paragraphs (2) and (3),
respectively.
(2) Paragraph (3) of section 4041(c), as redesig-
nated by paragraph (1), is amended by striking
‘‘paragraphs (1) and (2)’’ and inserting ‘‘paragraph
(1)’’.
(d) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 4041(k) is amended
by adding ‘‘and’’ at the end of subparagraph (A), by
striking ‘‘, and’’ at the end of subparagraph (B) and
inserting a period, and by striking subparagraph (C).
(2) Paragraph (1) of section 4081(d) is amended
by striking ‘‘each rate of tax specified in subsection
(a)(2)(A)’’ and inserting ‘‘the rates of tax specified in
clauses (i) and (iii) of subsection (a)(2)(A)’’.
(3) Sections 6421(f)(2)(A) and 9502(f)(1)(A) are
each amended by striking ‘‘section 4041(c)(4)’’ and
inserting ‘‘section 4041(c)(2)’’.
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(4) Paragraph (2) of section 9502(b) is amended
by striking ‘‘14 cents’’ and inserting ‘‘15 cents’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 1996.
(f) FLOOR STOCKS TAX.—
(1) IMPOSITION OF TAX.—In the case of aviation
gasoline on which tax was imposed under section
4081 of the Internal Revenue Code of 1986 before
January 1, 1996, and which is held on such date by
any person, there is hereby imposed a floor stocks tax
of 1 cent per gallon of such gasoline.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person holding
aviation gasoline on January 1, 1996, to which
the tax imposed by paragraph (1) applies shall
be liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe.
(C) TIME FOR PAYMENT.—The tax imposed
by paragraph (1) shall be paid on or before June
30, 1996.
(3) DEFINITIONS.—For purposes of this sub-
section:
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(A) HELD BY A PERSON.—Gasoline shall be
considered as ‘‘held by a person’’ if title thereto
has passed to such person (whether or not deliv-
ery to the person has been made).
(B) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury or his dele-
gate.
(4) EXCEPTION
FOR
EXEMPT
USES.—The tax
imposed by paragraph (1) shall not apply to gasoline
held by any person exclusively for any use to the ex-
tent a credit or refund of the tax imposed by section
4081 of such Code is allowable for such use.
(5) EXCEPTION FOR FUEL HELD IN AIRCRAFT
TANK.—No tax shall be imposed by paragraph (1) on
aviation gasoline held in the tank of an aircraft.
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF
FUEL.—
(A) IN GENERAL.—No tax shall be imposed
by paragraph (1) on aviation gasoline held on
January 1, 1996, by any person if the aggregate
amount of aviation gasoline held by such person
on such date does not exceed 6,000 gallons. The
preceding sentence shall apply only if such per-
son submits to the Secretary (at the time and in
the manner required by the Secretary) such in-
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formation as the Secretary shall require for pur-
poses of this paragraph.
(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count fuel held by any person which is exempt
from the tax imposed by paragraph (1) by rea-
son of paragraph (4) or (5).
(C) CONTROLLED GROUPS.—
(i) CORPORATIONS.—In the case of a
controlled group, the 6,000 gallon amount
in subparagraph (A) shall be apportioned
among the component members of such
group in such manner as the Secretary
shall by regulations prescribe. For purposes
of the preceding sentence, the term ‘‘con-
trolled group’’ has the meaning given to
such term by subsection (a) of section 1563
of such Code; except that for such purposes
the phrase ‘‘more than 50 percent’’ shall be
substituted for the phrase ‘‘at least 80 per-
cent’’ each place it appears in such sub-
section.
(ii) 
NONINCORPORATED
PERSONS
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, principles
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similar to the principles of clause (i) shall
apply to a group under common control
where 1 or more of the members is not a
corporation.
(7) OTHER LAWS APPLICABLE.—All provisions of
law, including penalties, applicable with respect to
the taxes imposed by section 4081 of such Code shall,
insofar as applicable and not inconsistent with the
provisions of this subsection, apply with respect to the
floor stock taxes imposed by paragraph (1) to the
same extent as if such taxes were imposed by such sec-
tion 4081.
Subchapter C—Other Excise Tax Provisions
SEC. 11661. CERTAIN COMBINATIONS NOT TREATED AS
MANUFACTURE UNDER RETAIL SALES TAX ON
HEAVY TRUCKS.
(a) IN GENERAL.—Paragraph (2) of section 4052(c)
(relating to certain combinations not treated as manufac-
ture) is amended by striking ‘‘or wood or metal floor’’ and
inserting ‘‘wood or metal floor, or a power take-off and
dump body’’.
(b) REMOVAL OF FIFTH WHEEL.—Paragraph (1) of
section 4052(c) is amended by inserting before the period
‘‘or the removal of any coupling device (including any fifth
wheel)’’.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act.
CHAPTER 8—ADMINISTRATIVE PROVISION
SEC. 11671. CERTAIN NOTICES DISREGARDED UNDER PRO-
VISION 
INCREASING 
INTEREST 
RATE 
ON
LARGE CORPORATE UNDERPAYMENTS.
(a) GENERAL RULE.—Subparagraph (B) of section
6621(c)(2) (defining applicable date) is amended by adding
at the end the following new clause:
‘‘(iii) EXCEPTION
FOR
LETTERS
OR
NOTICES INVOLVING SMALL AMOUNTS.—For
purposes of this paragraph, any letter or
notice shall be disregarded if the amount of
the deficiency or proposed deficiency (or the
assessment or proposed assessment) set forth
in such letter or notice is not greater than
$100,000 (determined by not taking into ac-
count any interest, penalties, or additions
to tax).’’
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply for purposes of determining interest
for periods after December 31, 1995.
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Subtitle K—Miscellaneous
Provisions
SEC. 11701. TREATMENT OF STORAGE OF PRODUCT SAM-
PLES.
(a) IN GENERAL.—Paragraph (2) of section 280A(c)
is amended by striking ‘‘inventory’’ and inserting ‘‘inven-
tory or product samples’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to taxable years beginning after De-
cember 31, 1995.
SEC. 11702. ADJUSTMENT OF DEATH BENEFIT LIMITS FOR
CERTAIN POLICIES.
(a) IN GENERAL.—Subparagraph (C)(i) of section
7702(e)(2) (relating to limited increases in death benefit
permitted) is amended by striking ‘‘$5,000’’ and inserting
‘‘$7,000’’ and by striking ‘‘$25,000’’ and inserting
‘‘$30,000’’.
(b) INFLATION ADJUSTMENTS.—Section 7702(e) (re-
lating to computational rules) is amended by adding at the
end the following new paragraph:
‘‘(3) INFLATION ADJUSTMENT TO DEATH BENE-
FIT LIMITS FOR YEARS AFTER 1996.—In the case of
any taxable year beginning in a calendar year after
1996, each dollar amount contained in paragraph
(2)(C)(i) shall be increased by an amount equal to—
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‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3), for the calendar
year in which the taxable year begins, by sub-
stituting ‘calendar year 1995’ for ‘calendar year
1992’ in subparagraph (B) thereof.’’.
(c) CONFORMING AMENDMENT.—Section 72(e)(10)(B)
is amended by striking ‘‘$25,000’’ and inserting ‘‘$30,000
(adjusted at the same time and in the same manner as
under section 7702(e)(3))’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to contracts entered into after December
31, 1995.
SEC. 11703. ORGANIZATIONS SUBJECT TO SECTION 833.
(a) IN GENERAL.—Section 833(c) (relating to organi-
zation to which section applies) is amended by adding at
the end the following new paragraph:
‘‘(4) TREATMENT AS EXISTING BLUE CROSS OR
BLUE SHIELD ORGANIZATION.—
‘‘(A) IN GENERAL.—Paragraph (2) shall be
applied to an organization described in subpara-
graph (B) as if it were a Blue Cross or Blue
Shield organization.
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‘‘(B) APPLICABLE ORGANIZATION.—An or-
ganization is described in this subparagraph if
it—
‘‘(i) is organized under, and governed
by, State laws which are specifically and
exclusively 
applicable 
to 
not-for-profit
health insurance or health service type orga-
nizations, and
‘‘(ii) is not a Blue Cross or Blue
Shield organization or health maintenance
organization.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years ending after October
13, 1995.
SEC. 11704. CORRECTION OF INFLATION ADJUSTMENT IN
LUXURY EXCISE TAX ON AUTOMOBILES.
(a) IN GENERAL.—Subsection (e) of section 4001 (re-
lating to inflation adjustment) is amended to read as fol-
lows:
‘‘(e) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—The $30,000 amount in sub-
section (a) and section 4003(a) shall be increased by
an amount equal to—
‘‘(A) $30,000, multiplied by
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‘‘(B) the cost-of-living adjustment under sec-
tion 1(f)(3) for the calendar year in which the
vehicle is sold, determined by substituting ‘cal-
endar year 1990’ for ‘calendar year 1992’ in
subparagraph (B) thereof.
‘‘(2) ROUNDING.—If any amount as adjusted
under paragraph (1) is not a multiple of $2,000, such
amount shall be rounded to the next lowest multiple
of $2,000.’’
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on the date of the enactment
of this Act.
SEC. 11705. EXTENSION AND PHASEDOWN OF LUXURY PAS-
SENGER AUTOMOBILE TAX.
(a) EXTENSION.—Subsection (f) of section 4001 is
amended by striking ‘‘1999’’ and inserting ‘‘2002’’.
(b) PHASEDOWN.—Section 4001 is amended by redes-
ignating subsection (f) (as amended by subsection (a) of this
section) as subsection (g) and by inserting after subsection
(e) the following new subsection:
‘‘(f) PHASEDOWN.—For sales occurring in a calendar
year after 1995 and before 2003, subsection (a) shall be ap-
plied by substituting for ‘10 percent’ the percentage deter-
mined in accordance with the following table:
‘‘If the calendar year is:
The percentage is:
1996 .............................................................................................
9 percent
1997 .............................................................................................
8 percent
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1998 .............................................................................................
7 percent
1999 .............................................................................................
6 percent
2000 .............................................................................................
5 percent
2001 .............................................................................................
4 percent
2002 .............................................................................................
3 percent.’’
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 1996.
Subtitle L—Generalized System of
Preferences
SEC. 11801. SHORT TITLE.
This subtitle may be cited as the ‘‘GSP Renewal Act
of 1995’’.
SEC. 11802. GENERALIZED SYSTEM OF PREFERENCES.
(a) IN GENERAL.—Title V of the Trade Act of 1974
is amended to read as follows:
‘‘TITLE V—GENERALIZED
SYSTEM OF PREFERENCES
‘‘SEC. 501. AUTHORITY TO EXTEND PREFERENCES.
‘‘The President may provide duty-free treatment for
any eligible article from any beneficiary developing country
in accordance with the provisions of this title. In taking
any such action, the President shall have due regard for—
‘‘(1) the effect such action will have on further-
ing the economic development of developing countries
through the expansion of their exports;
‘‘(2) the extent to which other major developed
countries are undertaking a comparable effort to as-
sist developing countries by granting generalized pref-
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erences with respect to imports of products of such
countries;
‘‘(3) the anticipated impact of such action on
United States producers of like or directly competitive
products; and
‘‘(4) the extent of the beneficiary developing
country’s competitiveness with respect to eligible arti-
cles.
‘‘SEC. 502. DESIGNATION OF BENEFICIARY DEVELOPING
COUNTRIES.
‘‘(a) AUTHORITY TO DESIGNATE COUNTRIES.—
‘‘(1) BENEFICIARY
DEVELOPING
COUNTRIES.—
The President is authorized to designate countries as
beneficiary developing countries for purposes of this
title.
‘‘(2) LEAST-DEVELOPED BENEFICIARY DEVELOP-
ING COUNTRIES.—The President is authorized to des-
ignate any beneficiary developing country as a least-
developed beneficiary developing country for purposes
of this title, based on the considerations in section 501
and subsection (c) of this section.
‘‘(b) COUNTRIES INELIGIBLE FOR DESIGNATION.—
‘‘(1) SPECIFIC COUNTRIES.—The following coun-
tries may not be designated as beneficiary developing
countries for purposes of this title:
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‘‘(A) Australia.
‘‘(B) Canada.
‘‘(C) European Union member states.
‘‘(D) Iceland.
‘‘(E) Japan.
‘‘(F) Monaco.
‘‘(G) New Zealand.
‘‘(H) Norway.
‘‘(I) Switzerland.
‘‘(2) OTHER
BASES
FOR
INELIGIBILITY.—The
President shall not designate any country a bene-
ficiary developing country under this title if any of
the following applies:
‘‘(A) Such country is a Communist country,
unless—
‘‘(i) the products of such country re-
ceive nondiscriminatory treatment,
‘‘(ii) such country is a WTO Member
(as such term is defined in section 2(10) of
the Uruguay Round Agreements Act) (19
U.S.C. 3501(10)) and a member of the
International Monetary Fund, and
‘‘(iii) such country is not dominated or
controlled by international communism.
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‘‘(B) Such country is a party to an ar-
rangement of countries and participates in any
action pursuant to such arrangement, the effect
of which is—
‘‘(i) to withhold supplies of vital com-
modity resources from international trade
or to raise the price of such commodities to
an unreasonable level, and
‘‘(ii) to cause serious disruption of the
world economy.
‘‘(C) Such country affords preferential
treatment to the products of a developed country,
other than the United States, which has, or is
likely to have, a significant adverse effect on
United States commerce.
‘‘(D)(i) Such country—
‘‘(I) has nationalized, expropriated, or
otherwise seized ownership or control of
property, including patents, trademarks, or
copyrights, owned by a United States citi-
zen or by a corporation, partnership, or as-
sociation which is 50 percent or more bene-
ficially owned by United States citizens,
‘‘(II) has taken steps to repudiate or
nullify an existing contract or agreement
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with a United States citizen or a corpora-
tion, partnership, or association which is 50
percent or more beneficially owned by Unit-
ed States citizens, the effect of which is to
nationalize, expropriate, or otherwise seize
ownership or control of property, including
patents, trademarks, or copyrights, so
owned, or
‘‘(III) has imposed or enforced taxes or
other exactions, restrictive maintenance or
operational conditions, or other measures
with respect to property, including patents,
trademarks, or copyrights, so owned, the ef-
fect of which is to nationalize, expropriate,
or otherwise seize ownership or control of
such property,
unless clause (ii) applies.
‘‘(ii) This clause applies if the President de-
termines that—
‘‘(I) prompt, adequate, and effective
compensation has been or is being made to
the citizen, corporation, partnership, or as-
sociation referred to in clause (i),
‘‘(II) good faith negotiations to provide
prompt, adequate, and effective compensa-
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tion under the applicable provisions of
international law are in progress, or the
country described in clause (i) is otherwise
taking steps to discharge its obligations
under international law with respect to
such citizen, corporation, partnership, or
association, or
‘‘(III) a dispute involving such citizen,
corporation, partnership, or association
over compensation for such a seizure has
been submitted to arbitration under the pro-
visions of the Convention for the Settlement
of Investment Disputes, or in another mutu-
ally agreed upon forum,
and the President promptly furnishes a copy of
such determination to the Senate and House of
Representatives.
‘‘(E) Such country fails to act in good faith
in recognizing as binding or in enforcing arbi-
tral awards in favor of United States citizens or
a corporation, partnership, or association which
is 50 percent or more beneficially owned by
United States citizens, which have been made by
arbitrators appointed for each case or by perma-
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nent arbitral bodies to which the parties involved
have submitted their dispute.
‘‘(F) Such country aids or abets, by grant-
ing sanctuary from prosecution to, any individ-
ual or group which has committed an act of
international terrorism.
‘‘(G) Such country has not taken or is not
taking steps to afford internationally recognized
worker rights to workers in the country (includ-
ing any designated zone in that country).
Subparagraphs (D), (E), (F), and (G) shall not pre-
vent the designation of any country as a beneficiary
developing country under this title if the President
determines that such designation will be in the na-
tional economic interest of the United States and re-
ports such determination to the Congress with the rea-
sons therefor.
‘‘(c) FACTORS AFFECTING COUNTRY DESIGNATION.—
In determining whether to designate any country as a bene-
ficiary developing country under this title, the President
shall take into account—
‘‘(1) an expression by such country of its desire
to be so designated;
‘‘(2) the level of economic development of such
country, including its per capita gross national prod-
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cluding any designated zone in that country) inter-
nationally recognized worker rights.
‘‘(d) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
COUNTRY DESIGNATION.—
‘‘(1) IN
GENERAL.—The President may with-
draw, suspend, or limit the application of the duty-
free treatment accorded under this title with respect
to any country. In taking any action under this sub-
section, the President shall consider the factors set
forth in section 501 and subsection (c) of this section.
‘‘(2) CHANGED CIRCUMSTANCES.—The President
shall, after complying with the requirements of sub-
section (f)(2), withdraw or suspend the designation of
any country as a beneficiary developing country if,
after such designation, the President determines that
as the result of changed circumstances such country
would be barred from designation as a beneficiary de-
veloping country under subsection (b)(2). Such coun-
try shall cease to be a beneficiary developing country
on the day on which the President issues an Executive
order or Presidential proclamation revoking the des-
ignation of such country under this title.
‘‘(3) ADVICE
TO
CONGRESS.—The President
shall, as necessary, advise the Congress on the appli-
cation of section 501 and subsection (c) of this sec-
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tion, and the actions the President has taken to with-
draw, to suspend, or to limit the application of duty-
free treatment with respect to any country which has
failed to adequately take the actions described in sub-
section (c).
‘‘(e) MANDATORY GRADUATION OF BENEFICIARY DE-
VELOPING COUNTRIES.—If the President determines that a
beneficiary developing country has become a ‘high income’
country, as defined by the official statistics of the Inter-
national Bank for Reconstruction and Development, then
the President shall terminate the designation of such coun-
try as a beneficiary developing country for purposes of this
title, effective on January 1 of the second year following
the year in which such determination is made.
‘‘(f) CONGRESSIONAL NOTIFICATION.—
‘‘(1) NOTIFICATION OF DESIGNATION.—
‘‘(A) IN
GENERAL.—Before the President
designates any country as a beneficiary develop-
ing country under this title, the President shall
notify the Congress of the President’s intention to
make such designation, together with the consid-
erations entering into such decision.
‘‘(B) DESIGNATION
AS
LEAST-DEVELOPED
BENEFICIARY
DEVELOPING
COUNTRY.—At least
60 days before the President designates any
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country as a least-developed beneficiary develop-
ing country, the President shall notify the Con-
gress of the President’s intention to make such
designation.
‘‘(2) NOTIFICATION
OF
TERMINATION.—If the
President has designated any country as a beneficiary
developing country under this title, the President
shall not terminate such designation unless, at least
60 days before such termination, the President has
notified the Congress and has notified such country of
the President’s intention to terminate such designa-
tion, together with the considerations entering into
such decision.
‘‘SEC. 503. DESIGNATION OF ELIGIBLE ARTICLES.
‘‘(a) ELIGIBLE ARTICLES.—
‘‘(1) DESIGNATION.—
‘‘(A) IN GENERAL.—Except as provided in
subsection (b), the President is authorized to des-
ignate articles as eligible articles from all bene-
ficiary developing countries for purposes of this
title by Executive order or Presidential procla-
mation after receiving the advice of the Inter-
national Trade Commission in accordance with
subsection (e).
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‘‘(B) LEAST-DEVELOPED BENEFICIARY DE-
VELOPING COUNTRIES.—Except for articles de-
scribed in subparagraphs (A), (B), and (E) of
subsection (b)(1) and articles described in para-
graphs (2) and (3) of subsection (b), the Presi-
dent may, in carrying out section 502(d)(1) and
subsection (c)(1) of this section, designate articles
as eligible articles only for countries designated
as least-developed beneficiary developing coun-
tries under section 502(a)(2) if, after receiving
the advice of the International Trade Commis-
sion in accordance with subsection (e) of this sec-
tion, the President determines that such articles
are not import-sensitive in the context of imports
from least-developed beneficiary developing coun-
tries.
‘‘(C) THREE-YEAR RULE.—If, after receiv-
ing the advice of the International Trade Com-
mission under subsection (e), an article has been
formally considered for designation as an eligible
article under this title and denied such designa-
tion, such article may not be reconsidered for
such designation for a period of 3 years after
such denial.
‘‘(2) RULE OF ORIGIN.—
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‘‘(A) GENERAL RULE.—The duty-free treat-
ment provided under this title shall apply to any
eligible article which is the growth, product, or
manufacture of a beneficiary developing country
if—
‘‘(i) that article is imported directly
from a beneficiary developing country into
the customs territory of the United States;
and
‘‘(ii) the sum of—
‘‘(I) the cost or value of the mate-
rials produced in the beneficiary devel-
oping country or any two or more such
countries that are members of the same
association of countries and are treated
as one country under section 507(2),
plus
‘‘(II) the direct costs of processing
operations performed in such bene-
ficiary developing country or such
member countries,
is not less than 35 percent of the appraised
value of such article at the time it is en-
tered.
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‘‘(B) EXCLUSIONS.—An article shall not be
treated as the growth, product, or manufacture of
a beneficiary developing country by virtue of
having merely undergone—
‘‘(i) simple combining or packaging
operations, or
‘‘(ii) mere dilution with water or mere
dilution with another substance that does
not materially alter the characteristics of
the article.
‘‘(3) REGULATIONS.—The Secretary of the Treas-
ury, after consulting with the United States Trade
Representative, shall prescribe such regulations as
may be necessary to carry out paragraph (2), includ-
ing, but not limited to, regulations providing that, in
order to be eligible for duty-free treatment under this
title, an article—
‘‘(A) must be wholly the growth, product, or
manufacture of a beneficiary developing country,
or
‘‘(B) must be a new or different article of
commerce which has been grown, produced, or
manufactured in the beneficiary developing
country.
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‘‘(b) ARTICLES THAT MAY NOT BE DESIGNATED AS
ELIGIBLE ARTICLES.—
‘‘(1) IMPORT SENSITIVE ARTICLES.—The Presi-
dent may not designate any article as an eligible ar-
ticle under subsection (a) if such article is within one
of the following categories of import-sensitive articles:
‘‘(A) Textile and apparel articles which
were not eligible articles for purposes of this title
on January 1, 1994, as this title was in effect
on such date.
‘‘(B) Watches, except those watches entered
after June 30, 1989, that the President specifi-
cally determines, after public notice and com-
ment, will not cause material injury to watch or
watch band, strap, or bracelet manufacturing
and assembly operations in the United States or
the United States insular possessions.
‘‘(C) Import-sensitive electronic articles.
‘‘(D) Import-sensitive steel articles.
‘‘(E) Footwear, handbags, luggage, flat
goods, work gloves, and leather wearing apparel
which were not eligible articles for purposes of
this title on January 1, 1995, as this title was
in effect on such date.
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‘‘(F) 
Import-sensitive 
semimanufactured
and manufactured glass products.
‘‘(G) Any other articles which the President
determines to be import-sensitive in the context
of the Generalized System of Preferences.
‘‘(2) ARTICLES AGAINST WHICH OTHER ACTIONS
TAKEN.—An article shall not be an eligible article for
purposes of this title for any period during which
such article is the subject of any action proclaimed
pursuant to section 203 of this Act (19 U.S.C. 2253)
or section 232 or 351 of the Trade Expansion Act of
1962 (19 U.S.C. 1862, 1981).
‘‘(3) AGRICULTURAL PRODUCTS.—No quantity of
an agricultural product subject to a tariff-rate quota
that exceeds the in-quota quantity shall be eligible for
duty-free treatment under this title.
‘‘(c) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
DUTY-FREE TREATMENT; COMPETITIVE NEED LIMITA-
TION.—
‘‘(1) IN
GENERAL.—The President may with-
draw, suspend, or limit the application of the duty-
free treatment accorded under this title with respect
to any article, except that no rate of duty may be es-
tablished with respect to any article pursuant to this
subsection other than the rate which would apply but
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for this title. In taking any action under this sub-
section, the President shall consider the factors set
forth in sections 501 and 502(c).
‘‘(2) COMPETITIVE NEED LIMITATION.—
‘‘(A) BASIS
FOR
WITHDRAWAL
OF
DUTY-
FREE TREATMENT.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii) and subject to subsection (d),
whenever the President determines that a
beneficiary developing country has exported
(directly or indirectly) to the United States
during any calendar year beginning after
December 31, 1995—
‘‘(I) a quantity of an eligible arti-
cle having an appraised value in excess
of the applicable amount for the cal-
endar year, or
‘‘(II) a quantity of an eligible ar-
ticle equal to or exceeding 50 percent of
the appraised value of the total im-
ports of that article into the United
States during any calendar year,
the President shall, not later than July 1 of
the next calendar year, terminate the duty-
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free treatment for that article from that
beneficiary developing country.
‘‘(ii) ANNUAL ADJUSTMENT OF APPLI-
CABLE AMOUNT.—For purposes of applying
clause (i), the applicable amount is—
‘‘(I) for 1996, $75,000,000, and
‘‘(II) for each calendar year there-
after, an amount equal to the applica-
ble amount in effect for the preceding
calendar year plus $5,000,000.
‘‘(B) COUNTRY DEFINED.—For purposes of
this paragraph, the term ‘country’ does not in-
clude an association of countries which is treated
as one country under section 507(2), but does in-
clude a country which is a member of any such
association.
‘‘(C) REDESIGNATIONS.—A country which
is no longer treated as a beneficiary developing
country with respect to an eligible article by rea-
son of subparagraph (A) may, subject to the con-
siderations set forth in sections 501 and 502, be
redesignated a beneficiary developing country
with respect to such article if imports of such ar-
ticle from such country did not exceed the limita-
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tions in subparagraph (A) during the preceding
calendar year.
‘‘(D) LEAST-DEVELOPED BENEFICIARY DE-
VELOPING COUNTRIES.—Subparagraph (A) shall
not apply to any least-developed beneficiary de-
veloping country.
‘‘(E) ARTICLES
NOT
PRODUCED
IN
THE
UNITED
STATES
EXCLUDED.—Subparagraph
(A)(i)(II) shall not apply with respect to any eli-
gible article if a like or directly competitive arti-
cle was not produced in the United States on
January 1, 1995.
‘‘(F) DE MINIMIS WAIVERS.—
‘‘(i) IN GENERAL.—The President may
disregard subparagraph (A)(i)(II) with re-
spect to any eligible article from any bene-
ficiary developing country if the aggregate
appraised value of the imports of such arti-
cle into the United States during the pre-
ceding calendar year does not exceed the ap-
plicable amount for such preceding calendar
year.
‘‘(ii) APPLICABLE AMOUNT.—For pur-
poses applying clause (i), the applicable
amount is—
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‘‘(I) for calendar year 1995,
$13,000,000, and
‘‘(II) for each calendar year there-
after, an amount equal to the applica-
ble amount in effect for the preceding
calendar year plus $500,000.
‘‘(d) WAIVER OF COMPETITIVE NEED LIMITATION.—
‘‘(1) IN GENERAL.—The President may waive the
application of subsection (c)(2) with respect to any el-
igible article of any beneficiary developing country if,
before July 1 of the calendar year beginning after the
calendar year for which a determination described in
subsection (c)(2)(A) was made with respect to such el-
igible article, the President—
‘‘(A) receives the advice of the International
Trade Commission under section 332 of the Tar-
iff Act of 1930 on whether any industry in the
United States is likely to be adversely affected by
such waiver,
‘‘(B) determines, based on the consider-
ations described in sections 501 and 502(c) and
the advice described in subparagraph (A), that
such waiver is in the national economic interest
of the United States, and
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‘‘(C) publishes the determination described
in subparagraph (B) in the Federal Register.
‘‘(2) CONSIDERATIONS BY THE PRESIDENT.—In
making any determination under paragraph (1), the
President shall give great weight to—
‘‘(A) the extent to which the beneficiary de-
veloping country has assured the United States
that such country will provide equitable and rea-
sonable access to the markets and basic commod-
ity resources of such country, and
‘‘(B) the extent to which such country pro-
vides adequate and effective protection of intellec-
tual property rights.
‘‘(3) OTHER BASES FOR WAIVER.—The President
may waive the application of subsection (c)(2) if, be-
fore July 1 of the calendar year beginning after the
calendar year for which a determination described in
subsection (c)(2) was made with respect to a bene-
ficiary developing country, the President determines
that—
‘‘(A) there has been a historical preferential
trade relationship between the United States and
such country,
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‘‘(B) there is a treaty or trade agreement in
force covering economic relations between such
country and the United States, and
‘‘(C) such country does not discriminate
against, or impose unjustifiable or unreasonable
barriers to, United States commerce,
and the President publishes that determination in the
Federal Register.
‘‘(4) LIMITATIONS ON WAIVERS.—
‘‘(A) IN GENERAL.—The President may not
exercise the waiver authority under this sub-
section with respect to a quantity of an eligible
article entered during any calendar year begin-
ning after 1995, the aggregate appraised value of
which equals or exceeds 30 percent of the aggre-
gate appraised value of all articles that entered
duty-free under this title during the preceding
calendar year.
‘‘(B) OTHER WAIVER LIMITS.—The Presi-
dent may not exercise the waiver authority pro-
vided under this subsection with respect to a
quantity of an eligible article entered during any
calendar year beginning after 1995, the aggre-
gate appraised value of which exceeds 15 percent
of the aggregate appraised value of all articles
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that have entered duty-free under this title dur-
ing the preceding calendar year from those bene-
ficiary developing countries which for the preced-
ing calendar year—
‘‘(i) had a per capita gross national
product (calculated on the basis of the best
available information, including that of the
International Bank for Reconstruction and
Development) of $5,000 or more; or
‘‘(ii) had exported (either directly or
indirectly) to the United States a quantity
of articles that was duty-free under this title
that had an aggregate appraised value of
more than 10 percent of the aggregate ap-
praised value of all articles that entered
duty-free under this title during that year.
‘‘(C) CALCULATION OF LIMITATIONS.—There
shall be counted against the limitations imposed
under subparagraphs (A) and (B) for any cal-
endar year only that value of any eligible article
of any country that—
‘‘(i) entered duty-free under this title
during such calendar year; and
‘‘(ii) is in excess of the value of that
article that would have been so entered dur-
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ing such calendar year if the limitations
under subsection (c)(2)(A) applied.
‘‘(5) EFFECTIVE
PERIOD
OF
WAIVER.—Any
waiver granted under this subsection shall remain in
effect until the President determines that such waiver
is no longer warranted due to changed circumstances.
‘‘(e) INTERNATIONAL TRADE COMMISSION ADVICE.—
Before designating articles as eligible articles under sub-
section (a)(1), the President shall publish and furnish the
International Trade Commission with lists of articles which
may be considered for designation as eligible articles for
purposes of this title. The provisions of sections 131, 132,
133, and 134 shall be complied with as though action under
section 501 and this section were action under section 123
to carry out a trade agreement entered into under section
123.
‘‘(f) SPECIAL RULE CONCERNING PUERTO RICO.—No
action under this title may affect any tariff duty imposed
by the Legislature of Puerto Rico pursuant to section 319
of the Tariff Act of 1930 on coffee imported into Puerto
Rico.
‘‘SEC. 504. REVIEW AND REPORTS TO CONGRESS.
‘‘The President shall submit an annual report to the
Congress on the status of internationally recognized worker
rights within each beneficiary developing country.
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‘‘SEC. 505. DATE OF TERMINATION.
‘‘No duty-free treatment provided under this title shall
remain in effect after December 31, 1996.
‘‘SEC. 506. AGRICULTURAL EXPORTS OF BENEFICIARY DE-
VELOPING COUNTRIES.
‘‘The appropriate agencies of the United States shall
assist beneficiary developing countries to develop and im-
plement measures designed to assure that the agricultural
sectors of their economies are not directed to export markets
to the detriment of the production of foodstuffs for their citi-
zenry.
‘‘SEC. 507. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) BENEFICIARY DEVELOPING COUNTRY.—The
term ‘beneficiary developing country’ means any
country with respect to which there is in effect an Ex-
ecutive order or Presidential proclamation by the
President designating such country as a beneficiary
developing country for purposes of this title.
‘‘(2) COUNTRY.—The term ‘country’ means any
foreign country or territory, including any overseas
dependent territory or possession of a foreign country,
or the Trust Territory of the Pacific Islands. In the
case of an association of countries which is a free
trade area or customs union, or which is contributing
to 
comprehensive 
regional 
economic 
integration
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among its members through appropriate means, in-
cluding, but not limited to, the reduction of duties,
the President may by Executive order or Presidential
proclamation provide that all members of such asso-
ciation other than members which are barred from
designation under section 502(b) shall be treated as
one country for purposes of this title.
‘‘(3) ENTERED.—The term ‘entered’ means en-
tered, or withdrawn from warehouse for consumption,
in the customs territory of the United States.
‘‘(4) INTERNATIONALLY
RECOGNIZED
WORKER
RIGHTS.—The term ‘internationally recognized work-
er rights’ includes—
‘‘(A) the right of association;
‘‘(B) the right to organize and bargain col-
lectively;
‘‘(C) a prohibition on the use of any form
of forced or compulsory labor;
‘‘(D) a minimum age for the employment of
children; and
‘‘(E) acceptable conditions of work with re-
spect to minimum wages, hours of work, and oc-
cupational safety and health.
‘‘(5) LEAST-DEVELOPED BENEFICIARY DEVELOP-
ING COUNTRY.—The term ‘least-developed beneficiary
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developing country’ means a beneficiary developing
country that is designated as a least-developed bene-
ficiary developing country under section 502(a)(2).’’.
(b) TABLE OF CONTENTS.—The items relating to title
V in the table of contents of the Trade Act of 1974 are
amended to read as follows:
‘‘TITLE V—GENERALIZED SYSTEM OF PREFERENCES
‘‘Sec. 501. Authority to extend preferences.
‘‘Sec. 502. Designation of beneficiary developing countries.
‘‘Sec. 503. Designation of eligible articles.
‘‘Sec. 504. Review and reports to Congress.
‘‘Sec. 505. Date of termination.
‘‘Sec. 506. Agricultural exports of beneficiary developing countries.
‘‘Sec. 507. Definitions.’’.
SEC. 11803. RETROACTIVE APPLICATION FOR CERTAIN LIQ-
UIDATIONS AND RELIQUIDATIONS.
(a) IN GENERAL.—Notwithstanding section 514 of the
Tariff Act of 1930 or any other provision of law and subject
to subsection (b), the entry—
(1) of any article to which duty-free treatment
under title V of the Trade Act of 1974 would have ap-
plied if the entry had been made on July 31, 1995,
and
(2) that was made after July 31, 1995, and be-
fore the date of the enactment of this Act,
shall be liquidated or reliquidated as free of duty, and the
Secretary of the Treasury shall refund any duty paid with
respect to such entry. As used in this subsection, the term
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‘‘entry’’ includes a withdrawal from warehouse for con-
sumption.
(b) REQUESTS.—Liquidation or reliquidation may be
made under subsection (a) with respect to an entry only
if a request therefor is filed with the Customs Service, with-
in 180 days after the date of the enactment of this Act, that
contains sufficient information to enable the Customs Serv-
ice—
(1) to locate the entry; or
(2) to reconstruct the entry if it cannot be lo-
cated.
SEC. 11804. CONFORMING AMENDMENTS.
(a) TRADE LAWS.—
(1) Section 1211(b) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3011(b)) is
amended—
(A) in paragraph (1), by striking ‘‘(19
U.S.C. 2463(a), 2464(c)(3))’’ and inserting ‘‘(as
in effect on July 31, 1995)’’; and
(B) in paragraph (2), by striking ‘‘(19
U.S.C. 2464(c)(1))’’ and inserting the following:
‘‘(as in effect on July 31, 1995)’’.
(2) Section 203(c)(7) of the Andean Trade Pref-
erence Act (19 U.S.C. 3202(c)(7)) is amended by
striking ‘‘502(a)(4)’’ and inserting ‘‘507(4)’’.
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(3) Section 212(b)(7) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(b)(7)) is
amended by striking ‘‘502(a)(4)’’ and inserting
‘‘507(4)’’.
(4) General note 3(a)(iv)(C) of the Harmonized
Tariff Schedule of the United States is amended by
striking ‘‘sections 503(b) and 504(c)’’ and inserting
‘‘subsections (a), (c), and (d) of section 503’’.
(5) Section 201(a)(2) of the North American
Free Trade Agreement Implementation Act (19 U.S.C.
3331(a)(2)) is amended by striking ‘‘502(a)(2) of the
Trade Act of 1974 (19 U.S.C. 2462(a)(2))’’ and in-
serting ‘‘502(f)(2) of the Trade Act of 1974’’.
(6) Section 131 of the Uruguay Round Agree-
ments Act (19 U.S.C. 3551) is amended in subsections
(a) and (b)(1) by striking ‘‘502(a)(4)’’ and inserting
‘‘507(4)’’.
(b) OTHER LAWS.—
(1) Section 871(f)(2)(B) of the Internal Revenue
Code of 1986 is amended by striking ‘‘within the
meaning of section 502’’ and inserting ‘‘under title
V’’.
(2) Section 2202(8) of the Export Enhancement
Act of 1988 (15 U.S.C. 4711(8)) is amended by strik-
ing ‘‘502(a)(4)’’ and inserting ‘‘507(4)’’.
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(3) Section 231A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2191a(a)) is amended—
(A) in paragraph (1) by striking ‘‘502(a)(4)
of the Trade Act of 1974 (19 U.S.C. 2462(a)(4))’’
and inserting ‘‘507(4) of the Trade Act of 1974’’;
(B) in paragraph (2) by striking ‘‘505(c) of
the Trade Act of 1974 (19 U.S.C. 2465(c))’’ and
inserting ‘‘504 of the Trade Act of 1974’’; and
(C) 
in 
paragraph 
(4) 
by 
striking
‘‘502(a)(4)’’ and inserting ‘‘507(4)’’.
(4) Section 1621(a)(1) of the International Fi-
nancial Institutions Act (22 U.S.C. 262p–4p(a)(1)) is
amended by striking ‘‘502(a)(4)’’ and inserting
‘‘507(4)’’.
(5) Section 103B of the Agricultural Act of 1949
(7 U.S.C. 1444–2) is amended in subsections
(a)(5)(F)(v) and (n)(1)(C) by striking ‘‘503(d) of the
Trade Act of 1974 (19 U.S.C. 2463(d))’’ and inserting
‘‘503(b)(3) of the Trade Act of 1974’’.
Subtitle M—Increase in Public Debt
LImit
SEC. 11901. INCREASE IN PUBLIC DEBT LIMIT.
Subsection (b) of section 3101 of title 31, United States
Code, is amended by striking the dollar amount contained
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in the first sentence and inserting ‘‘$5,500,000,000,000’’
and by striking the second sentence (if any).
TITLE 
XII—TEACHING 
HOS-
PITALS AND GRADUATE MEDI-
CAL 
EDUCATION; 
ASSET
SALES; WELFARE; AND OTHER
PROVISIONS
SEC. 12001. SHORT TITLE.
Subtitles A through K of this title may be cited as the
‘‘Personal Responsibility and Work Opportunity Act of
1995’’.
SEC. 12002. TABLE OF CONTENTS.
The table of contents of subtitles A through L of this
title is as follows:
Sec. 12001. Short title.
Sec. 12002. Table of contents.
Subtitle A—Block Grants for Temporary Assistance for Needy Families
Sec. 12100. References to the Social Security Act.
Sec. 12101. Block grants to States.
Sec. 12102. Report on data processing.
Sec. 12103. Conforming amendments to the Social Security Act.
Sec. 12104. Conforming amendments to the Food Stamp Act of 1977 and related
provisions.
Sec. 12105. Conforming amendments to other laws.
Sec. 12106. Effective date; transition rule.
Subtitle B—Supplemental Security Income
Sec. 12200. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY RESTRICTIONS
Sec. 12201. Denial of supplemental security income benefits by reason of disabil-
ity to drug addicts and alcoholics.
Sec. 12202. Denial of SSI benefits for 10 years to individuals found to have
fraudulently misrepresented residence in order to obtain benefits
simultaneously in 2 or more States.
Sec. 12203. Denial of SSI benefits for fugitive felons and probation and parole
violators.
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CHAPTER 2—BENEFITS FOR DISABLED CHILDREN
Sec. 12211. Definition and eligibility rules.
Sec. 12212. Eligibility redeterminations and continuing disability reviews.
Sec. 12213. Additional accountability requirements.
Sec. 12214. Reduction in cash benefits payable to institutionalized individuals
whose medical costs are covered by private insurance.
Sec. 12215. Regulations.
Subtitle C—Child Support
Sec. 12300. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
Sec. 12301. State obligation to provide child support enforcement services.
Sec. 12302. Distribution of child support collections.
Sec. 12303. Privacy safeguards.
CHAPTER 2—LOCATE AND CASE TRACKING
Sec. 12311. State case registry.
Sec. 12312. Collection and disbursement of support payments.
Sec. 12313. State directory of new hires.
Sec. 12314. Amendments concerning income withholding.
Sec. 12315. Locator information from interstate networks.
Sec. 12316. Expansion of the Federal parent locator service.
Sec. 12317. Collection and use of social security numbers for use in child support
enforcement.
CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 12321. Adoption of uniform State laws.
Sec. 12322. Improvements to full faith and credit for child support orders.
Sec. 12323. Administrative enforcement in interstate cases.
Sec. 12324. Use of forms in interstate enforcement.
Sec. 12325. State laws providing expedited procedures.
CHAPTER 4—PATERNITY ESTABLISHMENT
Sec. 12331. State laws concerning paternity establishment.
Sec. 12332. Outreach for voluntary paternity establishment.
Sec. 12333. Cooperation by applicants for and recipients of temporary family as-
sistance.
CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING
Sec. 12341. Performance-based incentives and penalties.
Sec. 12342. Federal and State reviews and audits.
Sec. 12343. Required reporting procedures.
Sec. 12344. Automated data processing requirements.
Sec. 12345. Technical assistance.
Sec. 12346. Reports and data collection by the Secretary.
CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 12351. Simplified process for review and adjustment of child support orders.
Sec. 12352. Furnishing consumer reports for certain purposes relating to child
support.
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Sec. 12353. Nonliability for financial institutions providing financial records to
State child support enforcement agencies in child support cases.
CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS
Sec. 12361. Internal Revenue Service collection of arrearages.
Sec. 12362. Authority to collect support from Federal employees.
Sec. 12363. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 12364. Voiding of fraudulent transfers.
Sec. 12365. Work requirement for persons owing past-due child support.
Sec. 12366. Definition of support order.
Sec. 12367. Reporting arrearages to credit bureaus.
Sec. 12368. Liens.
Sec. 12369. State law authorizing suspension of licenses.
Sec. 12370. International child support enforcement.
Sec. 12371. Financial institution data matches.
Sec. 12372. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
CHAPTER 8—MEDICAL SUPPORT
Sec. 12376. Correction to ERISA definition of medical child support order.
Sec. 12377. Enforcement of orders for health care coverage.
CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-
RESIDENTIAL PARENTS
Sec. 12381. Grants to States for access and visitation programs.
CHAPTER 10—EFFECT OF ENACTMENT
Sec. 12391. Effective dates.
Subtitle D—Restricting Welfare and Public Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 12401. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 12402. Limited eligibility of certain qualified aliens for certain Federal pro-
grams.
Sec. 12403. Five-year limited eligibility of qualified aliens for Federal means-
tested public benefit.
CHAPTER 2—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
Sec. 12421. Attribution of sponsor’s income and resources to alien.
Sec. 12422. Requirements for sponsor’s affidavit of support.
Sec. 12423. Cosignature of alien student loans.
CHAPTER 3—GENERAL PROVISIONS
Sec. 12431. Definitions.
Sec. 12432. Reapplication for SSI benefits.
Sec. 12433. Statutory construction.
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Subtitle E—Teaching Hospital and Graduate Medical Education Trust Fund
CHAPTER 1—TRUST FUND
Sec. 13501. Establishment of Fund; payments to teaching hospitals.
CHAPTER 2—AMENDMENTS TO MEDICARE PROGRAM
Sec. 13511. Transfer of funds.
Subtitle F—National Defense Stockpile
Sec. 12601. Disposal of certain materials in national defense stockpile for deficit
reduction.
Subtitle G—Child Protection Block Grant Program and Foster Care and
Adoption Assistance
Sec. 12701. Establishment of program.
Sec. 12702. Conforming amendments.
Sec. 12703. Effective date; transition rule.
Subtitle H—Child Care
Sec. 12801. Short title and references.
Sec. 12802. Authorization of appropriations.
Sec. 12803. Lead agency.
Sec. 12804. Application and plan.
Sec. 12805. Limitation on State allotments.
Sec. 12806. Activities to improve the quality of child care.
Sec. 12807. Administration and enforcement.
Sec. 12808. Payments.
Sec. 12809. Annual report and audits.
Sec. 12810. Allotments.
Sec. 12811. Definitions.
Subtitle I—Child Nutrition Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH ACT
Sec. 12901. Termination of additional payment for lunches served in high free
and reduced price participation schools.
Sec. 12902. Direct Federal expenditures.
Sec. 12903. Value of food assistance.
Sec. 12904. Reduced price lunches.
Sec. 12905. Lunches, breakfasts, and supplements.
Sec. 12906. Summer food service program for children.
Sec. 12907. Child care food program.
Sec. 12908. Pilot projects.
Sec. 12909. Information clearinghouse.
CHAPTER 2—CHILD NUTRITION ACT
Sec. 12921. Special milk program.
Sec. 12922. Free and reduced price breakfasts.
Sec. 12923. Conforming reimbursement for paid breakfasts and lunches.
Sec. 12924. School breakfast program authorization.
Sec. 12925. Miscellaneous provisions and definitions.
Sec. 12926. Nutrition education and training.
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Subtitle J—Food Stamps and Commodity Distribution
Sec. 13001. Short title.
CHAPTER 1—FOOD STAMP PROGRAM
Sec. 13011. Definition of certification period.
Sec. 13012. Definition of coupon.
Sec. 13013. Treatment of children living at home.
Sec. 13014. Optional additional criteria for separate household determinations.
Sec. 13015. Adjustment of thrifty food plan.
Sec. 13016. Definition of homeless individual.
Sec. 13017. State option for eligibility standards.
Sec. 13018. Earnings of students.
Sec. 13019. Energy assistance.
Sec. 13020. Deductions from income.
Sec. 13021. Vehicle allowance.
Sec. 13022. Vendor payments for transitional housing counted as income.
Sec. 13023. Doubled penalties for violating food stamp program requirements.
Sec. 13024. Disqualification of convicted individuals.
Sec. 13025. Disqualification.
Sec. 13026. Caretaker exemption.
Sec. 13027. Employment and training.
Sec. 13028. Comparable treatment for disqualification.
Sec. 13029. Disqualification for receipt of multiple food stamp benefits.
Sec. 13030. Disqualification of fleeing felons.
Sec. 13031. Cooperation with child support agencies.
Sec. 13032. Disqualification relating to child support arrears.
Sec. 13033. Work requirement.
Sec. 13034. Encourage electronic benefit transfer systems.
Sec. 13035. Value of minimum allotment.
Sec. 13036. Benefits on recertification.
Sec. 13037. Optional combined allotment for expedited households.
Sec. 13038. Failure to comply with other means-tested public assistance pro-
grams.
Sec. 13039. Allotments for households residing in centers.
Sec. 13040. Condition precedent for approval of retail food stores and wholesale
food concerns.
Sec. 13041. Authority to establish authorization periods.
Sec. 13042. Information for verifying eligibility for authorization.
Sec. 13043. Waiting period for stores that fail to meet authorization criteria.
Sec. 13044. Expedited coupon service.
Sec. 13045. Withdrawing fair hearing requests.
Sec. 13046. Disqualification of retailers who intentionally submit falsified appli-
cations.
Sec. 13047. Disqualification of retailers who are disqualified under the WIC pro-
gram.
Sec. 13048. Collection of overissuances.
Sec. 13049. Authority to suspend stores violating program requirements pending
administrative and judicial review.
Sec. 13050. Limitation of Federal match.
Sec. 13051. Work supplementation or support program.
Sec. 13052. Authorization of pilot projects.
Sec. 13053. Employment initiatives program.
Sec. 13054. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 13055. Simplified food stamp program.
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Sec. 13056. State food assistance block grant.
Sec. 13057. American Samoa.
Sec. 13058. Assistance for community food projects.
CHAPTER 2—COMMODITY DISTRIBUTION PROGRAMS
Sec. 13071. Emergency food assistance program.
Subtitle K—Miscellaneous
Sec. 13101. Food stamp eligibility.
Sec. 13102. Reduction in block grants for social services.
Subtitle L—Reform of the Earned Income Credit
Sec. 13200. Amendment of 1986 code.
Sec. 13201. Earned income credit denied to individuals not authorized to be em-
ployed in the United States.
Sec. 13202. Repeal of earned income credit for individuals without children.
Sec. 13203. Modification of earned income credit amount and phaseout.
Sec. 13204. Rules relating to denial of earned income credit on basis of disquali-
fied income.
Sec. 13205. Modification of adjusted gross income definition for earned income
credit.
Sec. 13206. Provisions to improve tax compliance.
Subtitle M—Clinical Laboratories
Sec. 13301. Exemption of physician office laboratories.
Subtitle A—Block Grants for Tem-
porary 
Assistance 
for 
Needy
Families
SEC. 12100. REFERENCES TO THE SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this subtitle an amendment is expressed in terms of an
amendment to or repeal of a section or other provision, the
reference shall be considered to be made to that section or
other provision of the Social Security Act.
SEC. 12101. BLOCK GRANTS TO STATES.
Part A of title IV (42 U.S.C. 601 et seq.) is amended
to read as follows:
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‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘SEC. 401. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term ‘eli-
gible State’ means, with respect to a fiscal year, a State
that, during the 2-year period immediately preceding the
fiscal year, has submitted to the Secretary a plan that in-
cludes the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—
‘‘(A) GENERAL
PROVISIONS.—A written
document that outlines how the State intends to
do the following:
‘‘(i) Conduct a program, designed to
serve all political subdivisions in the State,
that provides assistance to needy families
with (or expecting) children and provides
parents with job preparation, work, and
support services to enable them to leave the
program and become self-sufficient.
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to en-
gage in work (as defined by the State) once
the State determines the parent or caretaker
is ready to engage in work, or once the par-
ent or caretaker has received assistance
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under the program for 24 months (whether
or not consecutive), whichever is earlier.
‘‘(iii) Ensure that parents and care-
takers receiving assistance under the pro-
gram engage in work activities in accord-
ance with section 406.
‘‘(iv) Take such reasonable steps as the
State deems necessary to restrict the use
and disclosure of information about indi-
viduals and families receiving assistance
under the program.
‘‘(v) Establish goals and take action to
prevent and reduce the incidence of out-of-
wedlock pregnancies, with special emphasis
on teenage pregnancies, and establish nu-
merical goals for reducing the illegitimacy
ratio of the State (as defined in section
402(a)(2)(B)) for calendar years 1996
through 2005.
‘‘(B) SPECIAL PROVISIONS.—
‘‘(i) The document shall indicate
whether the State intends to treat families
moving into the State from another State
differently than other families under the
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program, and if so, how the State intends
to treat such families under the program.
‘‘(ii) The document shall indicate
whether the State intends to provide assist-
ance under the program to individuals who
are not citizens of the United States, and if
so, shall include an overview of such assist-
ance.
‘‘(2) CERTIFICATION THAT THE STATE WILL OP-
ERATE A CHILD SUPPORT ENFORCEMENT PROGRAM.—
A certification by the chief executive officer of the
State that, during the fiscal year, the State will oper-
ate a child support enforcement program under the
State plan approved under part D.
‘‘(3) CERTIFICATION THAT THE STATE WILL OP-
ERATE A CHILD PROTECTION PROGRAM.—A certifi-
cation by the chief executive officer of the State that,
during the fiscal year, the State will operate a child
protection program under the State plan approved
under part B.
‘‘(4) CERTIFICATION
OF
THE
ADMINISTRATION
OF THE PROGRAM.—A certification by the chief execu-
tive officer of the State specifying which State agency
or agencies will administer and supervise the pro-
gram referred to in paragraph (1) for the fiscal year,
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which shall include assurances that local governments
and private sector organizations—
‘‘(A) have been consulted regarding the plan
and design of welfare services in the State so
that services are provided in a manner appro-
priate to local populations; and
‘‘(B) have had at least 60 days to submit
comments on the plan and the design of such
services.
‘‘(5) CERTIFICATION
THAT
THE
STATE
WILL
PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS-
SISTANCE.—A certification by the chief executive offi-
cer of the State that, during the fiscal year, the State
will provide each Indian who is a member of an In-
dian tribe in the State that does not have a tribal
family assistance plan approved under section 411
with equitable access to assistance under the State
program funded under this part.
‘‘(b) SPECIAL RULE FOR FISCAL YEAR 1996.—Not-
withstanding subsection (a), the term ‘eligible State’ means,
with respect to fiscal year 1996, a State that has submitted
to the Secretary a plan described in subsection (a) within
3 months after the date of the enactment of this part.
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‘‘(c) PUBLIC AVAILABILITY
OF STATE PLAN SUM-
MARY.—The State shall make available to the public a sum-
mary of any plan submitted by the State under this section.
‘‘SEC. 402. PAYMENTS TO STATES.
‘‘(a) GRANTS.—
‘‘(1) FAMILY ASSISTANCE GRANT.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary, for
each of fiscal years 1996, 1997, 1998, 1999, and
2000, a grant in an amount equal to the State
family assistance grant. The payment of these
grants to States shall not be deemed to entitle
any individual or family to any assistance
under any State program funded under this
part.
‘‘(B) STATE FAMILY ASSISTANCE GRANT DE-
FINED.—As used in this part, the term ‘State
family assistance grant’ means the greatest of—
‘‘(i) 1⁄3 of the total amount required to
be paid to the State under section 403 of
this title (as in effect on September 30,
1995) for fiscal years 1992, 1993, and 1994
(other than with respect to amounts ex-
pended by the State for child care under
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subsection (g) or (i) of section 402 (as so in
effect));
‘‘(ii) the total amount required to be
paid to the State under such section 403 for
fiscal year 1994 (other than with respect to
amounts expended by the State for child
care under subsection (g) or (i) of section
402 (as so in effect)); or
‘‘(iii) 4⁄3 of the total amount required
to be paid to the State under such section
403 for the 1st 3 quarters of fiscal year
1995 (other than with respect to amounts
expended by the State under the State plan
approved under part F (as so in effect) or
for child care under subsection (g) or (i) of
section 402 (as so in effect)), plus the total
amount required to be paid to the State for
fiscal year 1995 under section 403(l) (as so
in effect).
‘‘(2) GRANT TO REWARD STATES THAT REDUCE
OUT-OF-WEDLOCK BIRTHS.—
‘‘(A) IN
GENERAL.—In addition to any
grant under paragraph (1), each eligible State
shall be entitled to receive from the Secretary for
fiscal year 1998 or any succeeding fiscal year, a
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grant in an amount equal to the State family
assistance grant multiplied by—
‘‘(i) 5 percent if—
‘‘(I) the illegitimacy ratio of the
State for the fiscal year is at least 1
percentage point lower than the illegit-
imacy ratio of the State for fiscal year
1995; and
‘‘(II) the rate of induced preg-
nancy terminations in the State for the
fiscal year is less than the rate of in-
duced pregnancy terminations in the
State for fiscal year 1995; or
‘‘(ii) 10 percent—
‘‘(I) if the illegitimacy ratio of the
State for the fiscal year is at least 2
percentage points lower than the ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations in the State for the
fiscal year is less than the rate of in-
duced pregnancy terminations in the
State for fiscal year 1995.
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‘‘(B) ILLEGITIMACY RATIO.—As used in this
paragraph, the term ‘illegitimacy ratio’ means,
with respect to a State and a fiscal year—
‘‘(i) the number of out-of-wedlock births
that occurred in the State during the most
recent fiscal year for which such informa-
tion is available; divided by
‘‘(ii) the number of births that occurred
in the State during the most recent fiscal
year for which such information is avail-
able.
‘‘(C) DISREGARD OF CHANGES IN DATA DUE
TO CHANGED REPORTING METHODS.—For pur-
poses of subparagraph (A), the Secretary shall
disregard—
‘‘(i) any difference between the illegit-
imacy ratio of a State for a fiscal year and
the illegitimacy ratio of the State for fiscal
year 1995 which is attributable to a change
in State methods of reporting data used to
calculate the illegitimacy ratio; and
‘‘(ii) any difference between the rate of
induced pregnancy terminations in a State
for a fiscal year and such rate for fiscal
year 1995 which is attributable to a change
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in State methods of reporting data used to
calculate such rate.
‘‘(3) SUPPLEMENTAL
GRANT
FOR
POPULATION
INCREASES IN CERTAIN STATES.—
‘‘(A) IN
GENERAL.—In addition to any
grant under paragraph (1), each qualifying
State shall, subject to subparagraph (E), be enti-
tled to receive from the Secretary for each of fis-
cal years 1997, 1998, 1999, and 2000, a grant
in an amount equal to the sum of—
‘‘(i) the amount (if any) required to be
paid to the State under this paragraph for
the immediately preceding fiscal year; and
‘‘(ii) 2.5 percent of the sum of—
‘‘(I) the total amount required to
be paid to the State under part A (as
in effect during fiscal year 1994) for
fiscal year 1994; and
‘‘(II) the amount (if any) required
to be paid to the State under this
paragraph for the fiscal year preceding
the fiscal year specified in the matter
preceding clause (i).
‘‘(B) QUALIFYING STATE.—
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‘‘(i) IN
GENERAL.—For purposes of
this paragraph, a State is a qualifying
State for a fiscal year if—
‘‘(I) the level of welfare spending
per poor person by the State for the
immediately preceding fiscal year is
less than the national average level of
State welfare spending per poor person
for such preceding fiscal year; and
‘‘(II) the population growth rate
of the State (as determined by the Bu-
reau of the Census for the most recent
fiscal year for which information is
available exceeds the average popu-
lation growth rate for all States (as so
determined) for such most recent fiscal
year.
‘‘(ii) STATE MUST QUALIFY IN FISCAL
YEAR 1997.—Notwithstanding clause (i), a
State shall not be a qualifying State for
any fiscal year after 1997 by reason of
clause (i) if the State is not a qualifying
State for fiscal year 1997 by reason of
clause (i).
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‘‘(iii) 
CERTAIN
STATES
DEEMED
QUALIFYING STATES.—For purposes of this
paragraph, a State is deemed to be a quali-
fying State for fiscal years 1997, 1998,
1999, and 2000 if—
‘‘(I) the level of welfare spending
per poor person by the State for fiscal
year 1996 is less than 35 percent of the
national average level of State welfare
spending per poor person for fiscal
year 1996; or
‘‘(II) the population of the State
increased by more than 10 percent
from April 1, 1990 to July 1, 1994, as
determined by the Bureau of the Cen-
sus.
‘‘(C) DEFINITIONS.—As used in this para-
graph:
‘‘(i) LEVEL
OF
WELFARE
SPENDING
PER
POOR
PERSON.—The term ‘level of
State welfare spending per poor person’
means, with respect to a State and a fiscal
year—
‘‘(I) the sum of—
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‘‘(2) the provision of assistance under the State
program to Indian families that have moved from the
service area of an Indian tribe with a tribal family
assistance plan approved under section 411.
‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A
STATE.—The cumulative dollar amount of all loans made
to a State under this section during fiscal years 1996
through 2000 shall not exceed 10 percent of the State family
assistance grant.
‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING
LOANS.—The total dollar amount of loans outstanding
under this section may not exceed $1,700,000,000.
‘‘(f) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there
are appropriated such sums as may be necessary for the
cost of loans under this section.
‘‘SEC. 406. MANDATORY WORK REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) ALL FAMILIES.—A State to which a grant
is made under section 402 for a fiscal year shall
achieve the minimum participation rate specified in
the following table for the fiscal year with respect to
all families receiving assistance under the State pro-
gram funded under this part:
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lation. The submission under this paragraph shall in-
clude supporting documentation providing a cost
analysis, workload impact, and projections as to how
the regulation will effect the future number of recipi-
ents under such title.
(4) APPROPRIATIONS.—
(A) IN GENERAL.—Out of any money in the
Treasury not otherwise appropriated, there are
authorized to be appropriated and are hereby
appropriated, to remain available without fiscal
year limitation, $200,000,000 for fiscal year
1996, $75,000,000 for fiscal year 1997, and
$25,000,000 for fiscal year 1998, for the Com-
missioner of Social Security to utilize only for
continuing 
disability 
reviews 
and
redeterminations under title XVI of the Social
Security Act, with reviews and redeterminations
for individuals affected by the provisions of sub-
section (b) given highest priority.
(B) ADDITIONAL FUNDS.—Amounts appro-
priated under subparagraph (A) shall be in ad-
dition to any funds otherwise appropriated for
continuing 
disability 
reviews 
and
redeterminations under title XVI of the Social
Security Act.