H. R. 2491—732
mined without regard to any extensions) of the waiver to the
extent such amendments are inconsistent with the terms of
the waiver.
‘‘(2) FINANCING
LIMITATION.—Notwithstanding any other
provision of law, beginning with fiscal year 1996, a State operat-
ing under a waiver described in paragraph (1) shall receive
the payment described for such State for such fiscal year under
section 402, in lieu of any other payment provided for in the
waiver.
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN
GENERAL.—A State may terminate a waiver
described in subsection (a) before the expiration of the waiver.
‘‘(2) REPORT.—A State which terminates a waiver under
paragraph (1) shall submit a report to the Secretary summariz-
ing the waiver and any available information concerning the
result or effect of such waiver.
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, a State that, not later than the date described
in subparagraph (B), submits a written request to termi-
nate a waiver described in subsection (a) shall be held
harmless for accrued cost neutrality liabilities incurred
under the terms and conditions of such waiver.
‘‘(B) DATE
DESCRIBED.—The date described in this
subparagraph is the later of—
‘‘(i) January 1, 1996; or
‘‘(ii) 90 days following the adjournment of the first
regular session of the State legislature that begins
after the date of the enactment of the Personal Respon-
sibility and Work Opportunity Act of 1995.
‘‘(c) SECRETARIAL ENCOURAGEMENT
OF CURRENT WAIVERS.—
The Secretary shall encourage any State operating a waiver
described in subsection (a) to continue such waiver and to evaluate,
using random sampling and other characteristics of accepted sci-
entific evaluations, the result or effect of such waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A State may elect
to continue one or more individual waivers described in subsection
(a)(1).
‘‘SEC. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D shall be administered
by an Assistant Secretary for Family Support within the Depart-
ment of Health and Human Services, who shall be appointed by
the President, by and with the advice and consent of the Senate,
and who shall be in addition to any other Assistant Secretary
of Health and Human Services provided for by law.
‘‘SEC. 416. LIMITATION ON FEDERAL AUTHORITY.
‘‘No officer or employee of the Federal Government may regulate
the conduct of States under this part or enforce any provision
of this part, except to the extent expressly provided in this part.
‘‘SEC. 417. DEFINITIONS.
‘‘As used in this part:
‘‘(1) ADULT.—The term ‘adult’ means an individual who
is not a minor child.
‘‘(2) MINOR
CHILD.—The term ‘minor child’ means an
individual who—
H. R. 2491—733
‘‘(A) has not attained 18 years of age; or
‘‘(B) has not attained 19 years of age and is a full-
time student in a secondary school (or in the equivalent
level of vocational or technical training).
‘‘(3) FISCAL YEAR.—The term ‘fiscal year’ means any 12-
month period ending on September 30 of a calendar year.
‘‘(4) INDIAN, INDIAN
TRIBE, AND
TRIBAL
ORGANIZATION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the terms ‘Indian’, ‘Indian tribe’, and ‘tribal organiza-
tion’ have the meaning given such terms by section 4
of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
The term ‘Indian tribe’ means, with respect to the State
of Alaska, only the following Alaska Native regional non-
profit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
‘‘(iv) Association of Village Council Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
‘‘(viii) Aleutian and Pribilof Island Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Association.
‘‘(xiii) Metlakatla Indian Tribe.
‘‘(5) STATE.—Except as otherwise specifically provided, the
term ‘State’ includes the several States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.’’.
SEC. 12102. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date of the enact-
ment 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 management in the administra-
tion of State programs under part A of title IV of the Social
Security Act (whether in effect before or after October 1, 1995);
and
(2) what would be required to establish a system capable
of—
(A) tracking participants in public programs 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 system 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 establishing such a system.
H. R. 2491—734
SEC. 12103. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY
ACT.
(a) AMENDMENTS TO TITLE II.—
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as
so redesignated by section 321(a)(9)(B) of the Social Security
Independence and Program Improvements Act of 1994, is
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) (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 (42 U.S.C. 651) is amended by striking
‘‘aid’’ and inserting ‘‘assistance under a State program funded’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended—
(A) by striking ‘‘aid to families with dependent chil-
dren’’ and inserting ‘‘assistance under a State program
funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting ‘‘such assist-
ance’’; and
(C) by striking ‘‘under section 402(a)(26) or 471(a)(17)’’
and inserting ‘‘pursuant to section 408(a)(4) or under sec-
tion 471(a)(17)’’.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is
amended—
(A) by striking ‘‘aid under a State plan approved’’ and
inserting ‘‘assistance under a State program funded’’; and
(B) by striking ‘‘in accordance with the standards
referred to in section 402(a)(26)(B)(ii)’’ and inserting ‘‘by
the State’’.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the
first sentence by striking ‘‘aid under the State plan approved
under part A’’ and inserting ‘‘assistance under the State pro-
gram funded under part A’’.
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is
amended by striking ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I))
is amended by striking ‘‘aid is being paid under the State’s
plan approved under part A or E’’ and inserting ‘‘assistance
is being provided under the State program funded under part
A or aid is being paid under the State’s plan approved under
part E’’.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
in the matter following clause (iii) by striking ‘‘aid was being
paid under the State’s plan approved under part A or E’’
and inserting ‘‘assistance was being provided under the State
program funded under part A or aid was being paid under
the State’s plan approved under part E’’.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in
the matter following subparagraph (B)—
H. R. 2491—735
(A) by striking ‘‘who is a dependent child’’ and inserting
‘‘with respect to whom assistance is being provided under
the State program funded under part A’’;
(B) by inserting ‘‘by the State agency administering
the State plan approved under this part’’ after ‘‘found’’;
and
(C) by striking ‘‘under section 402(a)(26)’’ and inserting
‘‘with the State in establishing paternity’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking
‘‘under section 402(a)(26)’’ and inserting ‘‘pursuant to section
408(a)(4)’’.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by
striking ‘‘aid under part A of this title’’ and inserting ‘‘assistance
under a State program funded under part A’’.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended—
(A) by striking ‘‘under section 402(a)(26)’’ and inserting
‘‘pursuant to section 408(a)(4)’’; and
(B) by striking ‘‘; except that this paragraph shall
not apply to such payments for any month following the
first month in which the amount collected is sufficient
to make such family ineligible for assistance under the
State plan approved under part A;’’ and inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended
by striking ‘‘aid under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by
striking ‘‘under section 402(a)(26)’’.
(14) 
Section 
466(a)(3)(B) 
(42 
U.S.C. 
666(a)(3)(B))
is amended by striking ‘‘402(a)(26)’’ and inserting ‘‘408(a)(4)’’.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a State program
funded’’.
(16) Section 469(a) (42 U.S.C. 669(a)) is amended—
(A) by striking ‘‘aid under plans approved’’ and insert-
ing ‘‘assistance under State programs funded’’; and
(B) by striking ‘‘such aid’’ and inserting ‘‘such assist-
ance’’.
(c) REPEAL OF PART F OF TITLE IV.—Part F of title IV (42
U.S.C. 681–687) is repealed.
(d) AMENDMENT
TO TITLE X.—Section 1002(a)(7) (42 U.S.C.
1202(a)(7)) is amended by striking ‘‘aid to families with dependent
children under the State plan approved under section 402 of this
Act’’ and inserting ‘‘assistance under a State program funded under
part A of title IV’’.
(e) AMENDMENTS TO TITLE XI.—
(1) Section 1108 (42 U.S.C. 1308) is amended to read as
follows:
‘‘SEC. 1108. LIMITATION ON PAYMENTS TO PUERTO RICO, THE VIRGIN
ISLANDS, GUAM, AND AMERICAN SAMOA.
‘‘(a) IN GENERAL.—Notwithstanding any other provision of this
Act, the total amount certified by the Secretary of Health and
Human Services under titles I, X, XIV, and XVI, and under parts
A and B of title IV for payment to any territory for a fiscal year
shall not exceed the ceiling amount for the territory for the fiscal
year.
‘‘(b) DEFINITIONS.—As used in this section:
H. R. 2491—736
‘‘(1) TERRITORY.—The term ‘territory’ means Puerto Rico,
the Virgin Islands, Guam, and American Samoa.
‘‘(2) CEILING AMOUNT.—The term ‘ceiling amount’ means,
with respect to a territory and a fiscal year, the mandatory
ceiling amount with respect to the territory plus the discre-
tionary ceiling amount with respect to the territory, reduced
for the fiscal year in accordance with subsection (e).
‘‘(3) MANDATORY CEILING AMOUNT.—The term ‘mandatory
ceiling amount’ means—
‘‘(A) $103,538,000 with respect to Puerto Rico;
‘‘(B) $4,812,000 with respect to Guam;
‘‘(C) $3,677,397 with respect to the Virgin Islands;
and
‘‘(D) $1,122,095 with respect to American Samoa.
‘‘(4) DISCRETIONARY CEILING AMOUNT.—The term ‘discre-
tionary ceiling amount’ means, with respect to a territory,
the dollar amount specified in subsection (c)(2) with respect
to the territory.
‘‘(c) DISCRETIONARY GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make a grant to
each territory for any fiscal year in the amount appropriated
pursuant to paragraph (2) for the fiscal year for payment to
the territory.
‘‘(2) USE OF GRANT.—Any territory to which a grant is
made under paragraph (1) may expend the amount under any
program operated or funded under any provision of law specified
in subsection (a).
‘‘(3) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—
For grants under paragraph (1), there are authorized to be
appropriated to the Secretary for each fiscal year—
‘‘(A) $7,951,000 for payment to Puerto Rico;
‘‘(B) $345,000 for payment to Guam;
‘‘(C) $275,000 for payment to the Virgin Islands; and
‘‘(D) $190,000 for payment to American Samoa.
‘‘(d) AUTHORITY TO TRANSFER FUNDS AMONG PROGRAMS.—Not-
withstanding any other provision of this Act, any territory to which
an amount is paid under any provision of law specified in subsection
(a) may use part or all of the amount to carry out any program
operated by the territory, or funded, under any other such provision
of law.
‘‘(e) MAINTENANCE
OF
EFFORT.—The ceiling amount with
respect to a territory shall be reduced for a fiscal year by an
amount equal to the amount (if any) by which—
‘‘(1) the total amount expended by the territory under all
programs of the territory operated pursuant to the provisions
of law specified in subsection (a) (as such provisions were
in effect for fiscal year 1995) for fiscal year 1995; exceeds
‘‘(2) the total amount expended by the territory under all
programs of the territory that are funded under the provisions
of law specified in subsection (a) for the fiscal year that imme-
diately precedes the fiscal year referred to in the matter preced-
ing paragraph (1).’’.
(2) Section 1109 (42 U.S.C. 1309) is amended by striking
‘‘or part A of title IV,’’.
(3) Section 1115 (42 U.S.C. 1315) is amended—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
H. R. 2491—740
that the Secretary determines complies with standards
established by the Secretary that ensure that the
standards under the State program are comparable
to or more restrictive than those in effect on June
1, 1995’’; and
(2) in subsection (d)(2)(C)—
(A) by striking ‘‘program for aid to families with
dependent children’’ and inserting ‘‘State program funded’’;
and
(B) by inserting before the period at the end the follow-
ing: ‘‘that the Secretary determines complies with stand-
ards established by the Secretary that ensure that the
standards under the State program are comparable to or
more restrictive than those in effect on June 1, 1995’’.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—
(1) by striking ‘‘program for aid to families with dependent
children established’’ and inserting ‘‘State program funded’’;
and
(2) by inserting before the semicolon the following: ‘‘that
the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the
State program are comparable to or more restrictive than those
in effect on June 1, 1995’’.
SEC. 12105. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment Com-
pensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–
566; 90 Stat. 2689) is amended to read as follows:
‘‘(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.—For pur-
poses of section 455 of the Social Security Act, expenses incurred
to reimburse State employment offices for furnishing information
requested of such offices—
‘‘(1) pursuant to the third sentence of section 3(a) of the
Act entitled ‘An Act to provide for the establishment of a
national employment system and for cooperation with the
States in the promotion of such system, and for other purposes’,
approved June 6, 1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with the duty
of carrying a State plan for child support approved under
part D of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the adminis-
tration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC
of certain rental payments for federally assisted housing, is
repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility
Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967
(81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 (42 U.S.C. 11381 note), relating
H. R. 2491—741
to demonstration projects to reduce number of AFDC families in
welfare hotels, is amended—
(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’; and
(2) in subsection (c), by striking ‘‘aid to families with
dependent children in the State under a State plan approved’’
and inserting ‘‘assistance in the State under a State program
funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by strik-
ing ‘‘(Aid to Families with Dependent Children)’’; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking
‘‘aid to families with dependent children under a State plan
approved’’ and inserting ‘‘assistance under a State program
funded’’.
(i) The Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.) is amended—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)),
by striking ‘‘the program for aid to dependent children’’ and
inserting ‘‘the State program funded’’;
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by
striking ‘‘the program for aid to families with dependent chil-
dren’’ and inserting ‘‘the State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)),
by striking ‘‘the program for aid to families with dependent
children’’ and inserting ‘‘the State program funded’’.
(j) The Elementary and Secondary Education Act of 1965 (20
U.S.C. 2701 et seq.) is amended—
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking
‘‘Aid to Families with Dependent Children Program’’ and insert-
ing ‘‘State program funded under part A of title IV of the
Social Security Act’’;
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking
‘‘the program of aid to families with dependent children under
a State plan approved under’’ and inserting ‘‘a State program
funded under part A of’’; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))—
(A) in subparagraph (A)(xi), by striking ‘‘Aid to Fami-
lies with Dependent Children benefits’’ and inserting
‘‘assistance under a State program funded under part A
of title IV of the Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking ‘‘Aid to Fami-
lies with Dependent Children’’ and inserting ‘‘assistance
under the State program funded under part A of title
IV of the Social Security Act’’.
(k) Chapter VII of title I of Public Law 99–88 (25 U.S.C.
13d–1) is amended to read as follows: ‘‘Provided further, That gen-
eral assistance payments made by the Bureau of Indian Affairs
shall be made—
‘‘(1) after April 29, 1985, and before October 1, 1995, on
the basis of Aid to Families with Dependent Children (AFDC)
standards of need; and
‘‘(2) on and after October 1, 1995, on the basis of standards
of need established under the State program funded under
part A of title IV of the Social Security Act,
H. R. 2491—742
except that where a State ratably reduces its AFDC or State pro-
gram payments, the Bureau shall reduce general assistance pay-
ments in such State by the same percentage as the State has
reduced the AFDC or State program payment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)
is amended—
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all
that follows ‘‘agency as’’ and inserting ‘‘being eligible for finan-
cial assistance under part A of title IV of the Social Security
Act and as having continually received such financial assistance
during the 90-day period which immediately precedes the date
on which such individual is hired by the employer.’’;
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by strik-
ing ‘‘eligibility for aid or services,’’ and all that follows through
‘‘children approved’’ and inserting ‘‘eligibility for assistance,
or the amount of such assistance, under a State program
funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)),
by striking ‘‘aid to families with dependent children provided
under a State plan approved’’ and inserting ‘‘a State program
funded’’;
(4) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by
striking ‘‘(relating to aid to families with dependent children)’’;
and
(5) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under a State program funded under part A of
title IV of the Social Security Act’’.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b))
is amended by striking ‘‘State plan approved under part A of title
IV’’ and inserting ‘‘State program funded under part A of title
IV’’.
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.)
is amended—
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by strik-
ing ‘‘(42 U.S.C. 601 et seq.)’’;
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by strik-
ing ‘‘State aid to families with dependent children records,’’
and inserting ‘‘records collected under the State program funded
under part A of title IV of the Social Security Act,’’;
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—
(A) by striking ‘‘the JOBS program’’ and inserting ‘‘the
work activities required under title IV of the Social Security
Act’’; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))—
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking
‘‘, including recipients under the JOBS program’’;
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29
U.S.C. 1604(a)(1) (A) and (B)), by striking ‘‘(such as the JOBS
program)’’ each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking para-
graph (4) and inserting the following:
‘‘(4) the portions of title IV of the Social Security Act
relating to work activities;’’;
H. R. 2491—743
(8) in section 253 (29 U.S.C. 1632)—
(A) in subsection (b)(2), by repealing subparagraph (C);
and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c),
by striking ‘‘the JOBS program or’’ each place it appears;
(9) in section 264 (29 U.S.C. 1644)—
(A) in subparagraphs (A) and (B) of subsection (b)(1),
by striking ‘‘(such as the JOBS program)’’ each place it
appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3),
by striking ‘‘and the JOBS program’’ each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking para-
graph (6) and inserting the following:
‘‘(6) the portion of title IV of the Social Security Act relating
to work activities;’’;
(11) in the second sentence of section 429(e) (29 U.S.C.
1699(e)), by striking ‘‘and shall be in an amount that does
not exceed the maximum amount that may be provided by
the State pursuant to section 402(g)(1)(C) of the Social Security
Act (42 U.S.C. 602(g)(1)(C))’’;
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking ‘‘JOBS
and’’;
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking ‘‘the
JOBS program,’’;
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking ‘‘aid
to families with dependent children under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.)’’ and inserting
‘‘assistance under the State program funded under part A of
title IV of the Social Security Act’’;
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking
‘‘aid to families with dependent children’’ and inserting ‘‘assist-
ance under the State program funded’’;
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under the State program funded’’; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))—
(A) in clause (v), by striking the semicolon and insert-
ing ‘‘; and’’; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code,
is amended to read as follows:
‘‘(iv) assistance under a State program funded
under part A of title IV of the Social Security Act’’.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to
read as follows:
‘‘(i) assistance under the State program funded
under part A of title IV of the Social Security Act;’’.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42
U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 900 et seq.) is amended—
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking
‘‘Aid to families with dependent children (75–0412–0–1–609);’’
H. R. 2491—744
and inserting ‘‘Block grants to States for temporary assistance
for needy families;’’; and
(2) in section 256 (2 U.S.C. 906)—
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.) is amended—
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ‘‘aid
under a State plan approved under’’ each place it appears
and inserting ‘‘assistance under a State program funded under’’;
(2) in section 245A(h) (8 U.S.C. 1255a(h))—
(A) in paragraph (1)(A)(i), by striking ‘‘program of aid
to families with dependent children’’ and inserting ‘‘State
program of assistance’’; and
(B) in paragraph (2)(B), by striking ‘‘aid to families
with dependent children’’ and inserting ‘‘assistance under
a State program funded under part A of title IV of the
Social Security Act’’; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
‘‘State plan approved’’ and inserting ‘‘State program funded’’.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.
9835(a)(4)(B)(i)) is amended by striking ‘‘program of aid to families
with dependent children under a State plan approved’’ and inserting
‘‘State program of assistance funded’’.
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter
92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-
Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended
to read as follows:
‘‘(E) part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) relating to work activities;’’.
SEC. 12106. EFFECTIVE DATE; TRANSITION RULE.
(a) IN GENERAL.—Except as otherwise provided in this subtitle,
this subtitle and the amendments made by this subtitle shall take
effect on October 1, 1995.
(b) PENALTIES.—
(1) IN GENERAL.—Paragraphs (2) through (7) and paragraph
(9) of section 408(a) of the Social Security Act (as added by
section 12101 of this Act) shall apply with respect to fiscal
years beginning on or after October 1, 1996.
(2) MISUSE OF FUNDS.—Paragraphs (1) and (8) of section
408(a) of the Social Security Act (as added by section 12101
of this Act, shall apply with respect to fiscal years beginning
on or after October 1, 1995.
(c) TRANSITION RULES.—
(1) STATE OPTION TO CONTINUE AFDC PROGRAM.—
(A) 9-MONTH EXTENSION.—A State may elect to con-
tinue the State AFDC program until June 30, 1996.
(B) NO
INDIVIDUAL
OR
FAMILY
ENTITLEMENT
UNDER
CONTINUED STATE AFDC PROGRAMS.—Notwithstanding any
other provision of law or any rule of law, no individual
or family is entitled to aid under any State AFDC program
on or after the date of the enactment of this Act.
(C) LIMITATIONS ON FEDERAL OBLIGATIONS.—
(i) UNDER
AFDC
PROGRAM.—If a State elects to
continue the State AFDC program pursuant to
H. R. 2491—745
subparagraph (A), the total obligations of the Federal
Government to the State under part A of title IV
of the Social Security Act (as in effect on September
30, 1995) after the date of the enactment of this Act
shall not exceed an amount equal to—
(I) the State family assistance grant (as
defined in section 402(a)(1)(B) of the Social Secu-
rity Act (as in effect pursuant to the amendment
made by section 12101 of this Act)); minus
(II) any obligations of the Federal Government
to the State under such part (as in effect on
September 30, 1995) with respect to expenditures
by the State during the period that begins on
October 1, 1995, and ends on the day before the
date of the enactment of this Act.
(ii) UNDER
TEMPORARY
FAMILY
ASSISTANCE
PRO-
GRAM.—Notwithstanding section 402(a)(1) of the Social
Security Act (as in effect pursuant to the amendment
made by section 12101 of this Act), the total obligations
of the Federal Government to the State under such
section 402(a)(1) for fiscal year 1996 after the termi-
nation of the State AFDC program shall not exceed
an amount equal to—
(I) the amount described in clause (i)(I) of
this subparagraph; minus
(II) any obligations of the Federal Government
to the State under part A of title IV of the Social
Security Act (as in effect on September 30, 1995)
with respect to expenditures by the State on or
after October 1, 1995.
(D) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996
DEEMED
ACCEPTANCE
OF
GRANT
LIMITATIONS
AND
FOR-
MULA.—The submission of a plan by a State under section
401(a) of the Social Security Act (as in effect pursuant
to the amendment made by section 12101 of this Act)
for fiscal year 1996 is deemed to constitute the State’s
acceptance of the grant reductions under subparagraph
(C)(ii) of this paragraph (including the formula for comput-
ing the amount of the reduction).
(E) STATE AFDC PROGRAM DEFINED.—As used in this
paragraph, the term ‘‘State AFDC program’’ means the
State program under parts A and F of title IV of the
Social Security Act (as in effect on September 30, 1995).
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments
made by this subtitle shall not apply with respect to—
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services pro-
vided before the effective date of this subtitle under the
provisions amended; and
(B) administrative actions and proceedings commenced
before such date, or authorized before such date to be
commenced, under such provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMI-
NATED OR SUBSTANTIALLY MODIFIED BY THIS SUBTITLE.—In clos-
ing out accounts, Federal and State officials may use scientif-
ically acceptable statistical sampling techniques. Claims made
under programs which are repealed or substantially amended
H. R. 2491—746
in this subtitle and which involve State expenditures in cases
where assistance or services were provided during a prior fiscal
year, shall be treated as expenditures during fiscal year 1995
for purposes of reimbursement even if payment was made by
a State on or after October 1, 1995. States shall complete
the filing of all claims no later than September 30, 1997.
Federal department heads shall—
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs,
and
(B) reimburse States for any payments made for assist-
ance or services provided during a prior fiscal year from
funds for fiscal year 1995, rather than the funds authorized
by this subtitle.
(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR
FAMILY SUPPORT.—The individual who, on the day before the
effective date of this subtitle, is serving as Assistant Secretary
for Family Support within the Department of Health and
Human Services shall, until a successor is appointed to such
position—
(A) continue to serve in such position; and
(B) except as otherwise provided by law—
(i) continue to perform the functions of the Assist-
ant Secretary for Family Support under section 417
of the Social Security Act (as in effect before such
effective date); and
(ii) have the powers and duties of the Assistant
Secretary for Family Support under section 415 of
the Social Security Act (as in effect pursuant to the
amendment made by section 12101 of this Act).
(d) SUNSET.—The amendment made by section 12101 shall
be effective only during the 6-year period beginning on October
1, 1995.
H. R. 2491—747
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
disability 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.
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 individ-
uals whose medical costs are covered by private insurance.
Sec. 12215. Regulations.
Subtitle B—Supplemental Security Income
SEC. 12200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, where ever 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.
CHAPTER 1—ELIGIBILITY RESTRICTIONS
SEC. 12201. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS
BY REASON OF DISABILITY TO DRUG ADDICTS AND
ALCOHOLICS.
(a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is
amended by adding at the end the following:
‘‘(I) Notwithstanding subparagraph (A), an individual shall not
be considered to be disabled for purposes of this title if alcoholism
or drug addiction would (but for this subparagraph) be a contribut-
ing factor material to the Commissioner’s determination that the
individual is disabled.’’.
(b) REPRESENTATIVE PAYEE REQUIREMENTS.—
(1) 
Section 
1631(a)(2)(A)(ii)(II) 
(42 
U.S.C.
1383(a)(2)(A)(ii)(II)) is amended to read as follows:
‘‘(II) In the case of an individual eligible for benefits under
this title by reason of disability, the payment of such benefits
shall be made to a representative payee if the Commissioner of
Social Security determines that such payment would serve the
interest of the individual because the individual also has an alcohol-
ism or drug addiction condition that prevents the individual from
managing such benefits.’’.
H. R. 2491—748
(2) Section 1631(a)(2)(B)(vii) (42 U.S.C. 1383(a)(2)(B)(vii))
is amended by striking ‘‘eligible for benefits’’ and all that follows
through ‘‘is disabled’’ and inserting ‘‘described in subparagraph
(A)(ii)(II)’’.
(3) 
Section 
1631(a)(2)(B)(ix)(II) 
(42 
U.S.C.
1383(a)(2)(B)(ix)(II)) is amended by striking all that follows
‘‘15 years, or’’ and inserting ‘‘described in subparagraph
(A)(ii)(II)’’.
(4) 
Section 
1631(a)(2)(D)(i)(II) 
(42 
U.S.C.
1383(a)(2)(D)(i)(II)) is amended by striking ‘‘eligible for benefits’’
and all that follows through ‘‘is disabled’’ and inserting
‘‘described in subparagraph (A)(ii)(II)’’.
(c) TREATMENT REFERRALS FOR INDIVIDUALS WITH AN ALCOHOL-
ISM OR DRUG ADDICTION CONDITION.—Title XVI (42 U.S.C. 1381
et seq.) is amended by adding at the end the following new section:
‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN ALCOHOLISM OR
DRUG ADDICTION CONDITION
‘‘SEC. 1636. In the case of any eligible individual whose benefits
under this title by reason of disability are paid to a representative
payee pursuant to section 1631(a)(2)(A)(ii)(II), the Commissioner
of Social Security shall refer such individual to the appropriate
State agency administering the State plan for substance abuse
treatment services approved under subpart II of part B of title
XIX of the Public Health Service Act (42 U.S.C. 300x–21 et seq.).’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 1611(e) (42 U.S.C. 1382(e)) is amended by strik-
ing paragraph (3).
(2) Section 1634 (42 U.S.C. 1383c) is amended by striking
subsection (e).
(3) Section 201(c)(1) of the Social Security Independence
and Program Improvements Act of 1994 (42 U.S.C. 425 note)
is amended—
(A) by striking ‘‘to—’’ and all that follows through
‘‘in cases in which’’ and inserting ‘‘to individuals who are
entitled to disability insurance benefits or child’s, widow’s,
or widower’s insurance benefits based on disability under
title II of the Social Security Act, in cases in which’’;
(B) by striking ‘‘either subparagraph (A) or subpara-
graph (B)’’ and inserting ‘‘the preceding sentence’’; and
(C) by striking ‘‘subparagraph (A) or (B)’’ and inserting
‘‘the preceding sentence’’.
(e) SUPPLEMENTAL FUNDING
FOR ALCOHOL
AND SUBSTANCE
ABUSE TREATMENT PROGRAMS.—
(1) IN GENERAL.—Out of any money in the Treasury not
otherwise appropriated, there are hereby appropriated to
supplement State and Tribal programs funded under section
1933 of the Public Health Service Act (42 U.S.C. 300x–33),
$50,000,000 for each of the fiscal years 1997 and 1998.
(2) ADDITIONAL FUNDS.—Amounts appropriated under para-
graph (1) shall be in addition to any funds otherwise appro-
priated for allotments under section 1933 of the Public Health
Service Act (42 U.S.C. 300x–33) and shall be allocated pursuant
to such section 1933.
(3) USE OF FUNDS.—A State or tribal government receiving
an allotment under this subsection shall consider as priorities,
for purposes of expending funds allotted under this subsection,
H. R. 2491—749
activities relating to the treatment of the abuse of alcohol
and other drugs.
(f) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as provided in paragraphs (2)
and (3), the amendments made by this section shall apply
to applicants for benefits for months beginning on or after
the date of the enactment of this Act, without regard to whether
regulations have been issued to implement such amendments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) APPLICATION
AND
NOTICE.—Notwithstanding any
other provision of law, in the case of an individual who
is receiving supplemental security income benefits under
title XVI of the Social Security Act as of the date of the
enactment of this Act and whose eligibility for such benefits
would terminate by reason of the amendments made by
this section, such amendments shall apply with respect
to the benefits of such individual, including such individ-
ual’s treatment (if any) provided pursuant to such title
as in effect on the day before the date of such enactment,
for months beginning on or after January 1, 1997, and
the Commissioner of Social Security shall so notify the
individual not later than 90 days after the date of the
enactment of this Act.
(B) REAPPLICATION.—
(i) IN GENERAL.—Not later than 120 days after
the date of the enactment of this Act, each individual
notified pursuant to subparagraph (A) who desires to
reapply for benefits under title XVI of the Social Secu-
rity Act, as amended by this title, may reapply to
the Commissioner of Social Security.
(ii) DETERMINATION
OF
ELIGIBILITY.—Not later
than January 1, 1997, the Commissioner of Social Secu-
rity shall complete the eligibility redetermination of
each individual who reapplies for benefits under clause
(i) pursuant to the procedures of title XVI of such
Act.
(3) ADDITIONAL APPLICATION OF PAYEE REPRESENTATIVE AND
TREATMENT REFERRAL REQUIREMENTS.—The amendments made
by subsections (b) and (c) shall also apply—
(A) in the case of any individual who is receiving
supplemental security income benefits under title XVI of
the Social Security Act as of the date of the enactment
of this Act, on and after the date of such individual’s
first continuing disability review occurring after such date
of enactment, and
(B) in the case of any individual who receives supple-
mental security income benefits under title XVI of the
Social Security Act and has attained age 65, in such man-
ner as determined appropriate by the Commissioner of
Social Security.
SEC. 12202. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN BENEFITS SIMULTA-
NEOUSLY IN 2 OR MORE STATES.
(a) IN
GENERAL.—Section 1614(a) (42 U.S.C. 1382c(a)) is
amended by adding at the end the following new paragraph:
H. R. 2491—750
‘‘(5) An individual shall not be considered an eligible individual
for the purposes of this title during the 10-year period that begins
on the date the individual is convicted in Federal or State court
of having made a fraudulent statement or representation with
respect to the place of residence of the individual in order to
receive assistance simultaneously from 2 or more States under
programs that are funded under title IV, title XXI, or the Food
Stamp Act of 1977, or benefits in 2 or more States under the
supplemental security income program under this title.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 12203. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND
PROBATION AND PAROLE VIOLATORS.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 12201(d)(1), is amended by inserting after para-
graph (2) the following new paragraph:
‘‘(3) A person shall not be considered an eligible individual
or eligible spouse for purposes of this title with respect to any
month if during such month the person is—
‘‘(A) fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
person flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which
the person flees, or which, in the case of the State of New
Jersey, is a high misdemeanor under the laws of such State;
or
‘‘(B) violating a condition of probation or parole imposed
under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGEN-
CIES.—Section 1611(e) (42 U.S.C. 1382(e)), as amended by section
12201(d)(1) and subsection (a), is amended by inserting after para-
graph (3) the following new paragraph:
‘‘(4) Notwithstanding any other provision of law, the Commis-
sioner shall furnish any Federal, State, or local law enforcement
officer, upon the request of the officer, with the current address,
Social Security number, and photograph (if applicable) of any recipi-
ent of benefits under this title, if the officer furnishes the Commis-
sioner with the name of the recipient and notifies the Commissioner
that—
‘‘(A) the recipient—
‘‘(i) is described in subparagraph (A) or (B) of para-
graph (3); or
‘‘(ii) has information that is necessary for the officer
to conduct the officer’s official duties; and
‘‘(B) the location or apprehension of the recipient is within
the officer’s official duties.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
CHAPTER 2—BENEFITS FOR DISABLED CHILDREN
SEC. 12211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY.—Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)), as amended by section 7251(a), is
amended—
H. R. 2491—751
(1) in subparagraph (A), by striking ‘‘An individual’’ and
inserting ‘‘Except as provided in subparagraph (C), an individ-
ual’’;
(2) in subparagraph (A), by striking ‘‘(or, in the case of
an individual under the age of 18, if he suffers from any
medically determinable physical or mental impairment of com-
parable severity)’’;
(3) by redesignating subparagraphs (C) through (I) as sub-
paragraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C) An individual under the age of 18 shall be considered
disabled for the purposes of this title if that individual has a
medically determinable physical or mental impairment, which
results in marked and severe functional limitations, and which
can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12
months. Notwithstanding the preceding sentence, no individual
under the age of 18 who engages in substantial gainful activity
(determined in accordance with regulations prescribed pursuant
to subparagraph (E)) may be considered to be disabled.’’; and
(5) in subparagraph (F), as redesignated by paragraph (3),
by striking ‘‘(D)’’ and inserting ‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION
OF MENTAL AND EMOTIONAL DISORDERS.—The Commissioner of
Social 
Security 
shall 
modify 
sections 
112.00C.2. 
and
112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title
20, Code of Federal Regulations, to eliminate references to
maladaptive behavior in the domain of personal/behavorial
function.
(2) 
DISCONTINUANCE
OF
INDIVIDUALIZED
FUNCTIONAL
ASSESSMENT.—The Commissioner of Social Security shall dis-
continue the individualized functional assessment for children
set forth in sections 416.924d and 416.924e of title 20, Code
of Federal Regulations.
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES
TO INDIVIDUALS UNDER THE AGE OF 18.—Section 1614(a)(4) (42
U.S.C. 1382(a)(4)) is amended—
(1) by redesignating subclauses (I) and (II) of clauses (i)
and (ii) of subparagraph (B) as subclauses (aa) and (bb), respec-
tively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and by moving their left
hand margin 2 ems to the right;
(4) by inserting before clause (i) (as redesignated by para-
graph (3)) the following:
‘‘(A) in the case of an individual who is age 18 or
older—’’;
(5) at the end of subparagraph (A)(iii) (as redesignated
by paragraphs (3) and (4)), by striking the period and inserting
‘‘; or’’;
(6) by inserting after and below subparagraph (A)(iii) (as
so redesignated) the following:
H. R. 2491—752
‘‘(B) in the case of an individual who is under the
age of 18—
‘‘(i) substantial evidence which demonstrates that
there has been medical improvement in the individual’s
impairment or combination of impairments, and that
such impairment or combination of impairments no
longer results in marked and severe functional limita-
tions; or
‘‘(ii) substantial evidence which demonstrates that,
as determined on the basis of new or improved diag-
nostic techniques or evaluations, the individual’s
impairment or combination of impairments, is not as
disabling as it was considered to be at the time of
the most recent prior decision that he or she was
under a disability or continued to be under a disability,
and such impairment or combination of impairments
does not result in marked or severe functional limita-
tions; or’’;
(7) by redesignating subparagraph (D) as subparagraph
(C) and by inserting in such subparagraph ‘‘in the case of
any individual,’’ before ‘‘substantial evidence’’; and
(8) in the first sentence following subparagraph (C) (as
redesignated by paragraph (7)), by—
(A) inserting ‘‘(i)’’ before ‘‘to restore’’; and
(B) inserting ‘‘, or (ii) in the case of an individual
under the age of 18, to eliminate or improve the individual’s
impairment or combination of impairments so that it no
longer results in marked and severe functional limitations’’
immediately before the period.
(d) AMOUNT OF BENEFITS.—Section 1611(b) (42 U.S.C. 1382(b))
is amended by adding at the end the following new paragraph:
‘‘(3)(i) Except with respect to individuals described in clause
(ii), the benefit under this title for an individual described in section
1614(a)(3)(C) shall be payable at a rate equal to 75 percent of
the rate otherwise determined under this subsection.
‘‘(ii) An individual is described in this clause if such individual
is described in section 1614(a)(3)(C), and—
‘‘(I) in the case of such an individual under the age of
6, such individual has a medical impairment that severely
limits the individual’s ability to function in a manner appro-
priate to individuals of the same age and who without special
personal assistance would require specialized care outside the
home; or
‘‘(II) in the case of such an individual who has attained
the age of 6, such individual requires personal care assistance
with—
‘‘(aa) at least 2 activities of daily living;
‘‘(bb) continual 24-hour supervision or monitoring to
avoid causing injury or harm to self or others; or
‘‘(cc) the administration of medical treatment; and
who without such assistance would require full-time or part-
time specialized care outside the home.
‘‘(iii)(I) For purposes of clause (ii), the term ‘specialized care’
means medical care beyond routine administration of medication.
‘‘(II) For purposes of clause (ii)(II)—
‘‘(aa) the term ‘personal care assistance’ means at least
hands-on and stand-by assistance, supervision, or cueing; and
H. R. 2491—753
‘‘(bb) the term ‘activities of daily living’ means eating,
toileting, dressing, bathing, and mobility.’’.
(e) EFFECTIVE DATES, ETC.—
(1) EFFECTIVE DATES.—
(A) IN GENERAL.—The provisions of, and amendments
made by, subsections (a), (b), and (c) shall apply to
applicants for benefits under title XVI of the Social Security
Act for months beginning on or after the date of the enact-
ment of this Act, without regard to whether regulations
have been issued to implement such provisions and amend-
ments.
(B) ELIGIBILITY
RULES.—The amendments made by
subsection (d) shall apply to—
(i) applicants for benefits under title XVI of the
Social Security Act for months beginning on or after
January 1, 1997; and
(ii) with respect to continuing disability reviews
of eligibility for benefits under such title occurring
on or after such date.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY
DETERMINATIONS.—Not later than 1
year after the date of the enactment of this Act, the
Commissioner of Social Security shall redetermine the eligi-
bility of any individual under age 18 who is receiving
supplemental security income benefits based on a disability
under title XVI of the Social Security Act as of the date
of the enactment of this Act and whose eligibility for such
benefits may terminate by reason of the provisions of,
and amendments made by, subsections (a), (b), and (c).
With respect to any redetermination under this subpara-
graph—
(i) section 1614(a)(4) of the Social Security Act
(42 U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply
the eligibility criteria for new applicants for benefits
under title XVI of such Act;
(iii) the Commissioner shall give such redetermina-
tion priority over all continuing eligibility reviews and
other reviews under such title; and
(iv) such redetermination shall be counted as a
review or redetermination otherwise required to be
made under section 208 of the Social Security
Independence and Program Improvements Act of 1994
or any other provision of title XVI of the Social Security
Act.
(B) GRANDFATHER PROVISION.—The provisions of, and
amendments made by, subsections (a), (b), and (c), and
the redetermination under subparagraph (A), shall only
apply with respect to the benefits of an individual described
in subparagraph (A) for months beginning on or after Janu-
ary 1, 1997.
(C) NOTICE.—Not later than 90 days after the date
of the enactment of this Act, the Commissioner of Social
Security shall notify an individual described in subpara-
graph (A) of the provisions of this paragraph.
(3) REGULATIONS.—The Commissioner of Social Security
shall submit for review to the committees of jurisdiction in
H. R. 2491—754
the Congress any final regulation pertaining to the eligibility
of individuals under age 18 for benefits under title XVI of
the Social Security Act at least 45 days before the effective
date of such regulation. The submission under this paragraph
shall include supporting documentation providing a cost analy-
sis, workload impact, and projections as to how the regulation
will effect the future number of recipients 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 avail-
able 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 Commissioner
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 subsection (b) given
highest priority.
(B) ADDITIONAL FUNDS.—Amounts appropriated under
subparagraph (A) shall be in addition to any funds other-
wise appropriated for continuing disability reviews and
redeterminations under title XVI of the Social Security
Act.
SEC. 12212. ELIGIBILITY REDETERMINATIONS AND CONTINUING
DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING
TO CERTAIN
CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as
redesignated by section 12211(a)(3), is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new clause:
‘‘(ii)(I) Not less frequently than once every 3 years, the Commis-
sioner shall review in accordance with paragraph (4) the continued
eligibility for benefits under this title of each individual who has
not attained 18 years of age and is eligible for such benefits by
reason of an impairment (or combination of impairments) which
may improve (or, at the option of the Commissioner, which is
unlikely to improve).
‘‘(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(III) If the representative payee refuses to comply without
good cause with the requirements of subclause (II), the Commis-
sioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly terminate
payment of benefits to the representative payee, and provide for
payment of benefits to an alternative representative payee of the
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(IV) Subclause (II) shall not apply to the representative payee
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
H. R. 2491—755
consideration the nature of the individual’s impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (II) should
not apply to an individual’s representative payee.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR
SSI RECIPIENTS WHO ATTAIN 18 YEARS OF AGE.—
(1) 
IN
GENERAL.—Section 
1614(a)(3)(H) 
(42 
U.S.C.
1382c(a)(3)(H)), as amended by subsection (a), is amended by
adding at the end the following new clause:
‘‘(iii) If an individual is eligible for benefits under this title
by reason of disability for the month preceding the month in which
the individual attains the age of 18 years, the Commissioner shall
redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the individual’s
18th birthday; and
‘‘(II) by applying the criteria used in determining the initial
eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph
(4) shall not apply and such redetermination shall be considered
a substitute for a review or redetermination otherwise required
under any other provision of this subparagraph during that 1-
year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the Social Secu-
rity Independence and Program Improvements Act of 1994 (42
U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR LOW BIRTH
WEIGHT BABIES.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)),
as amended by subsections (a) and (b), is amended by adding
at the end the following new clause:
‘‘(iv)(I) Not later than 12 months after the birth of an individual,
the Commissioner shall review in accordance with paragraph (4)
the continuing eligibility for benefits under this title by reason
of disability of such individual whose low birth weight is a contribut-
ing factor material to the Commissioner’s determination that the
individual is disabled.
‘‘(II) A review under subclause (I) shall be considered a sub-
stitute for a review otherwise required under any other provision
of this subparagraph during that 12-month period.
‘‘(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(IV) If the representative payee refuses to comply without
good cause with the requirements of subclause (III), the Commis-
sioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly terminate
payment of benefits to the representative payee, and provide for
payment of benefits to an alternative representative payee of the
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(V) Subclause (III) shall not apply to the representative payee
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combina-
H. R. 2491—756
tion of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (III) should
not apply to an individual’s representative payee.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefits for months beginning on or after the date
of the enactment of this Act, without regard to whether regulations
have been issued to implement such amendments.
SEC. 12213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) DISPOSAL
OF RESOURCES
FOR LESS THAN FAIR MARKET
VALUE.—
(1) IN GENERAL.—Section 1613(c) (42 U.S.C. 1382b(c)) is
amended to read as follows:
‘‘(c) DISPOSAL OF RESOURCES FOR LESS THAN FAIR MARKET
VALUE.—(1)(A)(i) If an individual who has not attained 18 years
of age (or any person acting on such individual’s behalf) disposes
of resources of the individual for less than fair market value on
or after the look-back date specified in clause (ii)(I), the individual
is ineligible for benefits under this title for months during the
period beginning on the date specified in clause (iii) and equal
to the number of months specified in clause (iv).
‘‘(ii)(I) The look-back date specified in this subclause is a date
that is 36 months before the date specified in subclause (II).
‘‘(II) The date specified in this subclause is the date on which
the individual applies for benefits under this title or, if later,
the date on which the disposal of the individual’s resources for
less than fair market value occurs.
‘‘(iii) The date specified in this clause is the first day of the
first month that follows the month in which the individual’s
resources were disposed of for less than fair market value and
that does not occur in any other period of ineligibility under this
paragraph.
‘‘(iv) The number of months of ineligibility under this clause
for an individual shall be equal to—
‘‘(I) the total, cumulative uncompensated value of all the
individual’s resources so disposed of on or after the look-back
date specified in clause (ii)(I), divided by
‘‘(II) the amount of the maximum monthly benefit payable
under section 1611(b) to an eligible individual for the month
in which the date specified in clause (ii)(II) occurs.
‘‘(B) An individual shall not be ineligible for benefits under
this title by reason of subparagraph (A) if the Commissioner deter-
mines that—
‘‘(i) the individual intended to dispose of the resources
at fair market value;
‘‘(ii) the resources were transferred exclusively for a pur-
pose other than to qualify for benefits under this title;
‘‘(iii) all resources transferred for less than fair market
value have been returned to the individual; or
‘‘(iv) the denial of eligibility would work an undue hardship
on the individual (as determined on the basis of criteria estab-
lished by the Commissioner in regulations).
‘‘(C) For purposes of this paragraph, in the case of a resource
held by an individual in common with another person or persons
in a joint tenancy, tenancy in common, or similar arrangement,
the resource (or the affected portion of such resource) shall be
considered to be disposed of by such individual when any action
H. R. 2491—757
is taken, either by such individual or by any other person, that
reduces or eliminates such individual’s ownership or control of
such resource.
‘‘(D)(i) Notwithstanding subparagraph (A), this subsection shall
not apply to a transfer of a resource to a trust if the portion
of the trust attributable to such resource is considered a resource
available to the individual pursuant to subsection (e)(3) (or would
be so considered, but for the application of subsection (e)(4)).
‘‘(ii) In the case of a trust established by an individual (within
the meaning of paragraph (2)(A) of subsection (e)), if from such
portion of the trust (if any) that is considered a resource available
to the individual pursuant to paragraph (3) of such subsection
(or would be so considered but for the application of paragraph
(2) of such subsection) or the residue of such portion upon the
termination of the trust—
‘‘(I) there is made a payment other than to or for the
benefit of the individual, or
‘‘(II) no payment could under any circumstance be made
to the individual,
then the payment described in subclause (I) or the foreclosure
of payment described in subclause (II) shall be considered a disposal
of resources by the individual subject to this subsection, as of
the date of such payment or foreclosure, respectively.
‘‘(2)(A) At the time an individual (and the individual’s eligible
spouse, if any) applies for benefits under this title, and at the
time the eligibility of an individual (and such spouse, if any) for
such benefits is redetermined, the Commissioner of Social Security
shall—
‘‘(i) inform such individual of the provisions of paragraph
(1) providing for a period of ineligibility for benefits under
this title for individuals who make certain dispositions of
resources for less than fair market value, and inform such
individual that information obtained pursuant to clause (ii)
will be made available to the State agency administering a
State plan under title XXI (as provided in subparagraph (B));
and
‘‘(ii) obtain from such individual information which may
be used in determining whether or not a period of ineligibility
for such benefits would be required by reason of paragraph
(1).
‘‘(B) The Commissioner of Social Security shall make the
information obtained under subparagraph (A)(ii) available, on
request, to any State agency administering a State plan approved
under title XXI.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instrument or device
that is similar to a trust; and
‘‘(B) the term ‘benefits under this title’ includes supple-
mentary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant
to an agreement entered into under section 212(b) of Public
Law 93–66.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall be effective with respect to transfers of resources
for less than fair market value that occur at least 90 days
after the date of the enactment of this Act.
(b) TREATMENT OF ASSETS HELD IN TRUST.—
H. R. 2491—758
(1) TREATMENT
AS
RESOURCE.—Section 1613 (42 U.S.C.
1382) is amended by adding at the end the following new
subsection:
‘‘TRUSTS
‘‘(e)(1) In determining the resources of an individual who has
not attained 18 years of age, the provisions of paragraph (3) shall
apply to a trust established by such individual.
‘‘(2)(A) For purposes of this subsection, an individual shall
be considered to have established a trust if any assets of the
individual were transferred to the trust.
‘‘(B) In the case of an irrevocable trust to which the assets
of an individual and the assets of any other person or persons
were transferred, the provisions of this subsection shall apply to
the portion of the trust attributable to the assets of the individual.
‘‘(C) This subsection shall apply without regard to—
‘‘(i) the purposes for which the trust is established;
‘‘(ii) whether the trustees have or exercise any discretion
under the trust;
‘‘(iii) any restrictions on when or whether distributions
may be made from the trust; or
‘‘(iv) any restrictions on the use of distributions from the
trust.
‘‘(3)(A) In the case of a revocable trust, the corpus of the
trust shall be considered a resource available to the individual.
‘‘(B) In the case of an irrevocable trust, if there are any cir-
cumstances under which payment from the trust could be made
to or for the benefit of the individual, the portion of the corpus
from which payment to or for the benefit of the individual could
be made shall be considered a resource available to the individual.
‘‘(4) The Commissioner may waive the application of this sub-
section with respect to any individual if the Commissioner deter-
mines, on the basis of criteria prescribed in regulations, that such
application would work an undue hardship on such individual.
‘‘(5) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instrument or device
that is similar to a trust;
‘‘(B) the term ‘corpus’ means all property and other
interests held by the trust, including accumulated earnings
and any other addition to such trust after its establishment
(except that such term does not include any such earnings
or addition in the month in which such earnings or addition
is credited or otherwise transferred to the trust);
‘‘(C) the term ‘asset’ includes any income or resource of
the individual, including—
‘‘(i) any income otherwise excluded by section 1612(b);
‘‘(ii) any resource otherwise excluded by this section;
and
‘‘(iii) any other payment or property that the individual
is entitled to but does not receive or have access to because
of action by—
‘‘(I) such individual;
‘‘(II) a person or entity (including a court) with
legal authority to act in place of, or on behalf of,
such individual; or
H. R. 2491—759
‘‘(III) a person or entity (including a court) acting
at the direction of, or upon the request of, such individ-
ual; and
‘‘(D) the term ‘benefits under this title’ includes supple-
mentary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant
to an agreement entered into under section 212(b) of Public
Law 93–66.’’.
(2) TREATMENT AS INCOME.—Section 1612(a)(2) (42 U.S.C.
1382a(a)(2)) is amended—
(A) by striking ‘‘and’’ at the end of subparagraph (E);
(B) by striking the period at the end of subparagraph
(F) and inserting ‘‘; and’’; and
(C) by adding at the end the following new subpara-
graph:
‘‘(G) any earnings of, and additions to, the corpus of
a trust (as defined in section 1613(f)) established by an
individual (within the meaning of paragraph (2)(A) of sec-
tion 1613(e)) and of which such individual is a beneficiary
(other than a trust to which paragraph (4) of such section
applies); except that in the case of an irrevocable trust,
there shall exist circumstances under which payment from
such earnings or additions could be made to, or for the
benefit of, such individual.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on January 1, 1996, and shall apply
to trusts established on or after such date.
(c) REQUIREMENT TO ESTABLISH ACCOUNT.—
(1) IN GENERAL.—Section 1631(a)(2) (42 U.S.C. 1383(a)(2))
is amended—
(A) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(B) by inserting after subparagraph (E) the following
new subparagraph:
‘‘(F)(i)(I) Each representative payee of an eligible individual
under the age of 18 who is eligible for the payment of benefits
described in subclause (II) shall establish on behalf of such individ-
ual an account in a financial institution into which such benefits
shall be paid, and shall thereafter maintain such account for use
in accordance with clause (ii).
‘‘(II) Benefits described in this subclause are past-due monthly
benefits under this title (which, for purposes of this subclause,
include State supplementary payments made by the Commissioner
pursuant to an agreement under section 1616 or section 212(b)
of Public Law 93–66) in an amount (after any withholding by
the Commissioner for reimbursement to a State for interim assist-
ance under subsection (g)) that exceeds the product of—
‘‘(aa) 6, and
‘‘(bb) the maximum monthly benefit payable under this
title to an eligible individual.
‘‘(ii)(I) A representative payee may use funds in the account
established under clause (i) to pay for allowable expenses described
in subclause (II).
‘‘(II) An allowable expense described in this subclause is an
expense for—
‘‘(aa) education or job skills training;
‘‘(bb) personal needs assistance;
H. R. 2491—760
‘‘(cc) special equipment;
‘‘(dd) housing modification;
‘‘(ee) medical treatment;
‘‘(ff) therapy or rehabilitation; or
‘‘(gg) any other item or service that the Commissioner
determines to be appropriate;
provided that such expense benefits such individual and, in the
case of an expense described in division (cc), (dd), (ff), or (gg),
is related to the impairment (or combination of impairments) of
such individual.
‘‘(III) The use of funds from an account established under
clause (i) in any manner not authorized by this clause—
‘‘(aa) by a representative payee shall constitute misuse
of benefits for all purposes of this paragraph, and any represent-
ative payee who knowingly misuses benefits from such an
account shall be liable to the Commissioner in an amount
equal to the total amount of such misused benefits; and
‘‘(bb) by an eligible individual who is his or her own rep-
resentative payee shall be considered an overpayment subject
to recovery under subsection (b).
‘‘(IV) This clause shall continue to apply to funds in the account
after the child has reached age 18, regardless of whether benefits
are paid directly to the beneficiary or through a representative
payee.
‘‘(iii) The representative payee may deposit into the account
established pursuant to clause (i)—
‘‘(I) past-due benefits payable to the eligible individual
in an amount less than that specified in clause (i)(II), and
‘‘(II) any other funds representing an underpayment under
this title to such individual, provided that the amount of such
underpayment is equal to or exceeds the maximum monthly
benefit payable under this title to an eligible individual.
‘‘(iv) The Commissioner of Social Security shall establish a
system for accountability monitoring whereby such representative
payee shall report, at such time and in such manner as the Commis-
sioner shall require, on activity respecting funds in the account
established pursuant to clause (i).’’.
(2) EXCLUSION
FROM
RESOURCES.—Section 1613(a) (42
U.S.C. 1382b(a)) is amended—
(A) in paragraph (9), by striking ‘‘; and’’ and inserting
a semicolon;
(B) in the first paragraph (10), by striking the period
and inserting a semicolon;
(C) by redesignating the second paragraph (10) as para-
graph (11), and by striking the period and inserting ‘‘;
and’’; and
(D) by adding at the end the following:
‘‘(12) the assets and accrued interest or other earnings
of any account established and maintained in accordance with
section 1631(a)(2)(F).’’.
(3) EXCLUSION FROM INCOME.—Section 1612(b) (42 U.S.C.
1382a(b)) is amended—
(A) by striking ‘‘and’’ at the end of paragraph (19);
(B) by striking the period at the end of paragraph
(20) and inserting ‘‘; and’’; and
(C) by adding at the end the following new paragraph:
H. R. 2491—761
‘‘(21) the interest or other earnings on any account estab-
lished 
and 
maintained 
in 
accordance 
with 
section
1631(a)(2)(F).’’.
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to payments made after the date of the
enactment of this Act.
SEC. 12214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITU-
TIONALIZED INDIVIDUALS WHOSE MEDICAL COSTS ARE
COVERED BY PRIVATE INSURANCE.
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B))
is amended—
(1) by striking ‘‘title XIX, or’’ and inserting ‘‘title XIX,’’;
and
(2) by inserting ‘‘or, in the case of an eligible individual
under the age of 18 receiving payments (with respect to such
individual) under any health insurance policy issued by a pri-
vate provider of such insurance’’ after ‘‘section 1614(f)(2)(B),’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to benefits for months beginning 90 or more days
after the date of the enactment of this Act, without regard to
whether regulations have been issued to implement such amend-
ments.
SEC. 12215. REGULATIONS.
Within 3 months after the date of the enactment of this Act,
the Commissioner of Social Security shall prescribe such regulations
as may be necessary to implement the amendments made by sec-
tions 12211, 12212, 12213, and 12214.
Subtitle C—Child Support
SEC. 12300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, whereever 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.
CHAPTER 1—ELIGIBILITY FOR SERVICES;
DISTRIBUTION OF PAYMENTS
SEC. 12301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT
ENFORCEMENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42 U.S.C. 654)
is amended—
(1) by striking paragraph (4) and inserting the following
new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the establishment of
paternity or the establishment, modification, or enforce-
ment of child support obligations, as appropriate, under
the plan with respect to—
‘‘(i) each child for whom (I) assistance is provided
under the State program funded under part A of this
title, (II) benefits or services for foster care mainte-
nance and adoption assistance are provided under the
H. R. 2491—762
State program funded under part B of this title, or
(III) medical assistance is provided under the State
plan approved under title XXI, unless the State agency
administering the plan determines (in accordance with
paragraph (29)) that it is against the best interests
of the child to do so; and
‘‘(ii) any other child, if an individual applies for
such services with respect to the child; and
‘‘(B) enforce any support obligation established with
respect to—
‘‘(i) a child with respect to whom the State provides
services under the plan; or
‘‘(ii) the custodial parent of such a child.’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and inserting ‘‘provide
that—’’;
(B) by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) services under the plan shall be made available
to residents of other States on the same terms as to resi-
dents of the State submitting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on individuals
not receiving assistance under any State program funded
under part A’’ after ‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C), (D), and (E)—
(i) by indenting the subparagraph in the same
manner as, and aligning the left margin of the subpara-
graph with the left margin of, the matter inserted
by subparagraph (B) of this paragraph; and
(ii) by striking the final comma and inserting a
semicolon; and
(E) in subparagraph (E), by indenting each of clauses
(i) and (ii) 2 additional ems.
(b) CONTINUATION
OF SERVICES
FOR FAMILIES CEASING TO
RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER
PART A.—Section 454 (42 U.S.C. 654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the following new para-
graph:
‘‘(25) provide that if a family with respect to which services
are provided under the plan ceases to receive assistance under
the State program funded under part A, the State shall provide
appropriate notice to the family and continue to provide such
services, subject to the same conditions and on the same basis
as in the case of other individuals to whom services are fur-
nished under the plan, except that an application or other
request to continue services shall not be required of such a
family and paragraph (6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking
‘‘454(6)’’ and inserting ‘‘454(4)’’.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
by striking ‘‘454(6)’’ each place it appears and inserting
‘‘454(4)(A)(ii)’’.
H. R. 2491—763
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
by striking ‘‘in the case of overdue support which a State
has agreed to collect under section 454(6)’’ and inserting ‘‘in
any other case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking
‘‘paragraph (4) or (6) of section 454’’ and inserting ‘‘section
454(4)’’.
SEC. 12302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is amended to
read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—An amount collected on behalf of a family
as support by a State pursuant to a plan approved under this
part shall be distributed as follows:
‘‘(1) FAMILIES
RECEIVING
ASSISTANCE.—In the case of a
family receiving assistance from the State, the State shall—
‘‘(A) retain, or distribute to the family, the State share
of the amount so collected; and
‘‘(B) pay to the Federal Government the Federal share
of the amount so collected.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In
the case of a family that formerly received assistance from
the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To the extent that
the amount so collected does not exceed the amount
required to be paid to the family for the month in which
collected, the State shall distribute the amount so collected
to the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the extent that
the amount so collected exceeds the amount required to
be paid to the family for the month in which collected,
the State shall distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED
AFTER THE FAMILY CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER 1997.—The provisions of this
section (other than subsection (b)(1)) as in effect
on the day before the date of the enactment of
section 12302 of the Personal Responsibility and
Work Opportunity Act of 1995 shall apply with
respect to the distribution of support arrearages
that—
‘‘(aa) accrued after the family ceased to
receive assistance, and
‘‘(bb) are collected before October 1, 1997.
‘‘(II) POST-SEPTEMBER 1997.—With respect to
amounts collected on or after October 1, 1997—
‘‘(aa) 
IN
GENERAL.—The 
State 
shall
distribute any amount collected (other than
amounts described in clause (iv)) to the family
to the extent necessary to satisfy any support
arrearages with respect to the family that
accrued after the family ceased to receive
assistance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
To the extent that division (aa) does not apply
H. R. 2491—764
to the amount, the State shall retain the State
share of the amount so collected, and pay to
the Federal Government the Federal share (as
defined in subsection (c)(2)(A)) of the amount
so collected, to the extent necessary to
reimburse amounts paid to the family as
assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
BEFORE THE FAMILY RECEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—The provisions of this
section (other than subsection (b)(1)) as in effect
on the day before the date of the enactment of
section 12302 of the Personal Responsibility and
Work Opportunity Act of 1995 shall apply with
respect to the distribution of support arrearages
that—
‘‘(aa) accrued before the family received
assistance, and
‘‘(bb) are collected before October 1, 2000.
‘‘(II) POST-SEPTEMBER 2000.—Unless based on
the report required by paragraph (4), the Congress
determines otherwise, with respect to amounts col-
lected on or after October 1, 2000—
‘‘(aa) IN GENERAL.—The State shall first
distribute any amount collected (other than
amounts described in clause (iv)) to the family
to the extent necessary to satisfy any support
arrears with respect to the family that accrued
before the family received assistance from the
State .
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
The State shall retain the State share of the
amounts so collected in excess of those distrib-
uted pursuant to division (aa) and pay to the
Federal Government the Federal share (as
defined in subsection (c)(2)) of the amount so
collected, to the extent necessary to reimburse
all or part of the amounts paid to the family
as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(iii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
WHILE THE FAMILY RECEIVED ASSISTANCE.—In the case
of a family described in this subparagraph, the provi-
sions of paragraph (1) shall apply with respect to the
distribution of support arrearages that accrued while
the family received assistance.
H. R. 2491—766
‘‘(B) benefits under the State plan approved under
part E of this title (as in effect on the day before the
date of the enactment of the Personal Responsibility and
Work Opportunity Act of 1995).
‘‘(2) FEDERAL SHARE.—The term ‘Federal share’ means—
‘‘(A) if the amounts collected and retained by the State
(to the extent necessary to reimburse amounts paid to
families as assistance by the State) are equal to or greater
than such amounts collected in fiscal year 1995 (reduced
by amounts not retained by the State in fiscal year 1995
as a result of the application of subsection (b)(1) of this
section as in effect on the day before the date of the
enactment of the Personal Responsibility and Work Oppor-
tunity Act of 1995), the highest Federal medical assistance
percentage in effect for the State in fiscal year 1995 or
any succeeding year of the amount so collected; or
‘‘(B) if the amounts so collected and retained by the
State are less than such amounts collected in fiscal year
1995 (reduced by amounts not retained by the State in
fiscal year 1995 as a result of the application of subsection
(b)(1) of this section as in effect on the day before the
date of the enactment of the Personal Responsibility and
Work Opportunity Act of 1995), the amounts so collected
and retained less the State share in fiscal year 1995.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE.—The term
‘Federal medical assistance percentage’ means—
‘‘(A) the Federal medical assistance percentage (as
defined in section 1118), in the case of Puerto Rico, the
Virgin Islands, Guam, and American Samoa; or
‘‘(B) the Federal medical assistance percentage (as
defined in section 2122(c)) in the case of any other State.
‘‘(4) STATE SHARE.—The term ‘State share’ means 100 per-
cent minus the Federal share.
‘‘(d) CONTINUATION
OF SERVICES
FOR FAMILIES CEASING TO
RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER
PART A.—When a family with respect to which services are provided
under a State plan approved under this part ceases to receive
assistance under the State program funded under part A, the State
shall provide appropriate notice to the family and continue to pro-
vide such services, subject to the same conditions and on the same
basis as in the case of individuals to whom services are furnished
under section 454, except that an application or other request
to continue services shall not be required of such a family and
section 454(6)(B) shall not apply to the family.’’.
(b) CONFORMING AMENDMENT.—Section 464(a)(1) (42 U.S.C.
664(a)(1)) is amended by striking ‘‘section 457(b)(4) or (d)(3)’’ and
inserting ‘‘section 457’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall be effective on October 1, 1996, or earlier at the State’s
option.
SEC. 12303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by section 12301(b) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25)
and inserting ‘‘; and’’; and
H. R. 2491—767
(3) by adding after paragraph (25) the following new para-
graph:
‘‘(26) will have in effect safeguards, applicable to all con-
fidential information handled by the State agency, that are
designed to protect the privacy rights of the parties, including—
‘‘(A) safeguards against unauthorized use or disclosure
of information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
‘‘(B) prohibitions against the release of information
on the whereabouts of 1 party to another party against
whom a protective order with respect to the former party
has been entered; and
‘‘(C) prohibitions against the release of information
on the whereabouts of 1 party to another party if the
State has reason to believe that the release of the informa-
tion may result in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.
CHAPTER 2—LOCATE AND CASE TRACKING
SEC. 12311. STATE CASE REGISTRY.
Section 454A, as added by section 12344(a)(2) of this Act, is
amended by adding at the end the following new subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system required by this
section shall include a registry (which shall be known as the
‘State case registry’) that contains records with respect to—
‘‘(A) each case in which services are being provided
by the State agency under the State plan approved under
this part; and
‘‘(B) each support order established or modified in the
State on or after October 1, 1998.
‘‘(2) LINKING OF LOCAL REGISTRIES.—The State case registry
may be established by linking local case registries of support
orders through an automated information network, subject to
this section.
‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records
shall use standardized data elements for both parents (such
as names, social security numbers and other uniform identifica-
tion numbers, dates of birth, and case identification numbers),
and contain such other information (such as on-case status)
as the Secretary may require.
‘‘(4) PAYMENT
RECORDS.—Each case record in the State
case registry with respect to which services are being provided
under the State plan approved under this part and with respect
to which a support order has been established shall include
a record of—
‘‘(A) the amount of monthly (or other periodic) support
owed under the order, and other amounts (including arrear-
ages, interest or late payment penalties, and fees) due
or overdue under the order;
‘‘(B) any amount described in subparagraph (A) that
has been collected;
‘‘(C) the distribution of such collected amounts;
H. R. 2491—768
‘‘(D) the birth date of any child for whom the order
requires the provision of support; and
‘‘(E) the amount of any lien imposed with respect to
the order pursuant to section 466(a)(4).
‘‘(5) UPDATING AND MONITORING.—The State agency operat-
ing the automated system required by this section shall
promptly establish and maintain, and regularly monitor, case
records in the State case registry with respect to which services
are being provided under the State plan approved under this
part, on the basis of—
‘‘(A) 
information 
on 
administrative 
actions 
and
administrative and judicial proceedings and orders relating
to paternity and support;
‘‘(B) information obtained from comparison with Fed-
eral, State, or local sources of information;
‘‘(C) information on support collections and distribu-
tions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF
INFORMATION.—The State shall use the automated system required
by this section to extract information from (at such times, and
in such standardized format or formats, as may be required by
the Secretary), to share and compare information with, and to
receive information from, other data bases and information compari-
son services, in order to obtain (or provide) information necessary
to enable the State agency (or the Secretary or other State or
Federal agencies) to carry out this part, subject to section 6103
of the Internal Revenue Code of 1986. Such information comparison
activities shall include the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—
Furnishing to the Federal Case Registry of Child Support
Orders established under section 453(h) (and update as nec-
essary, with information including notice of expiration of orders)
the minimum amount of information on child support cases
recorded in the State case registry that is necessary to operate
the registry (as specified by the Secretary in regulations).
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—Exchanging
information with the Federal Parent Locator Service for the
purposes specified in section 453.
‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MEDIGRANT AGEN-
CIES.—Exchanging information with State agencies (of the State
and of other States) administering programs funded under part
A, programs operated under State plans under title XXI, and
other programs designated by the Secretary, as necessary to
perform State agency responsibilities under this part and under
such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMATION COMPARI-
SONS.—Exchanging information with other agencies of the
State, agencies of other States, and interstate information net-
works, as necessary and appropriate to carry out (or assist
other States to carry out) the purposes of this part.’’.
SEC. 12312. COLLECTION AND DISBURSEMENT OF SUPPORT PAY-
MENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 12301(b) and 12303(a) of this Act, is
amended—
H. R. 2491—769
(1) by striking ‘‘and’’ at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the following new para-
graph:
‘‘(27) provide that, on and after October 1, 1998, the State
agency will—
‘‘(A) operate a State disbursement unit in accordance
with section 454B; and
‘‘(B) have sufficient State staff (consisting of State
employees) and (at State option) contractors reporting
directly to the State agency to—
‘‘(i) monitor and enforce support collections
through the unit (including carrying out the automated
data processing responsibilities described in section
454A(g)); and
‘‘(ii) take the actions described in section 466(c)(1)
in appropriate cases.’’.
(b) ESTABLISHMENT OF STATE DISBURSEMENT UNIT.—Part D
of title IV (42 U.S.C. 651–669), as amended by section 12344(a)(2)
of this Act, is amended by inserting after section 454A the following
new section:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAY-
MENTS.
‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN GENERAL.—In order for a State to meet the require-
ments of this section, the State agency must establish and
operate a unit (which shall be known as the ‘State disbursement
unit’) for the collection and disbursement of payments under
support orders in all cases being enforced by the State pursuant
to section 454(4).
‘‘(2) OPERATION.—The State disbursement unit shall be
operated—
‘‘(A) directly by the State agency (or 2 or more State
agencies under a regional cooperative agreement), or (to
the extent appropriate) by a contractor responsible directly
to the State agency; and
‘‘(B) in coordination with the automated system estab-
lished by the State pursuant to section 454A.
‘‘(3) LINKING OF LOCAL DISBURSEMENT UNITS.—The State
disbursement unit may be established by linking local disburse-
ment units through an automated information network, subject
to this section, if the Secretary agrees that the system will
not cost more nor take more time to establish or operate than
a centralized system. In addition, employers shall be given
1 location to which income withholding is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disbursement unit
shall use automated procedures, electronic processes, and computer-
driven technology to the maximum extent feasible, efficient, and
economical, for the collection and disbursement of support pay-
ments, including procedures—
‘‘(1) for receipt of payments from parents, employers, and
other States, and for disbursements to custodial parents and
other obligees, the State agency, and the agencies of other
States;
‘‘(2) for accurate identification of payments;