I
103D CONGRESS
1ST SESSION
H. R. 741
To amend title IV of the Social Security Act to provide welfare families
with the education, training, job search, and work experience needed
to prepare them to leave welfare within 2 years, to authorize States
to conduct demonstration projects to test the effectiveness of policies
designed to help people leave welfare and increase their financial security,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 1993
Mr. SHAW (for himself, Mrs. JOHNSON of Connecticut, Mr. GRANDY, Mr.
SANTORUM, Mr. MICHEL, and Mr. GINGRICH) introduced the following
bill; which was referred jointly to the Committees on Ways and Means,
Agriculture, Education and Labor, Energy and Commerce, Banking, Fi-
nance and Urban Affairs, and the Judiciary
A BILL
To amend title IV of the Social Security Act to provide
welfare families with the education, training, job search,
and work experience needed to prepare them to leave
welfare within 2 years, to authorize States to conduct
demonstration projects to test the effectiveness of policies
designed to help people leave welfare and increase their
financial security, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Responsibility and
Empowerment Support Program Providing Employment,
Child Care, and Training Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—AFDC TRANSITION AND WORK PROGRAM
Sec. 101. AFDC transition and work program.
Sec. 102. Community work experience program amendments.
Sec. 103. Work supplementation program amendments.
Sec. 104. Effective date; regulations.
TITLE II—EXPANDED STATE WAIVER AUTHORITY
Sec. 201. Authority to grant waivers to provisions of social welfare statutes to
better enable providers of social services to promote self-suffi-
ciency.
TITLE III—MISCELLANEOUS AMENDMENTS
Sec. 301. AFDC recipients required to undergo necessary substance abuse
treatment as a condition of receiving AFDC.
Sec. 302. Authority of State to modify certain AFDC income disregard rules.
TITLE I—AFDC TRANSITION AND
WORK PROGRAM
SEC. 101. AFDC TRANSITION AND WORK PROGRAM.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)) is amended by inserting after
paragraph (28) the following:
‘‘(29) provide that—
‘‘(A) the State must have in effect a pro-
gram that—
‘‘(i) provides qualified individuals with
the education, training, and work experi-
ence needed to prepare them for a life
without aid under the plan; and
‘‘(ii) consists of—
‘‘(I) 
a 
transition 
component,
which must include the job search
program established by the State
under section 482(g), and which may
include any other service, activity, or
program of the State that is referred
to in section 482(d)(1); and
‘‘(II) a work component, which
may include a work supplementation
program operated by the State under
section 482(e), a community work ex-
perience program established by the
State under section 482(f), or any
other work program of the State that
is approved by the Secretary;
‘‘(B)(i) as used in this paragraph, the term
‘qualified individual’ means—
‘‘(I) on and after October 1, 1994, all
individuals eligible for aid under the plan
who applied for such aid on or after such
date;
‘‘(II) on and after October 1, 1998,
all individuals eligible for aid under the
plan; and
‘‘(ii) notwithstanding clause (i), the term
‘qualified individual’ does not include any indi-
vidual—
‘‘(I) who is incapacitated;
‘‘(II) at the option of the State, who
is making progress in a substance abuse
treatment program, unless this subclause
has been applied to the individual for 12
months;
‘‘(III) during such 6-month period as
the individual may select, in which the in-
dividual gives birth to the first child born
alive to the individual after becoming eligi-
ble for aid under this part;
‘‘(IV) during such 4-month period as
the individual may select, in which the in-
dividual gives birth to the second or subse-
quent child born alive to the individual
after becoming eligible for aid under this
part;
‘‘(V) who is the parent of a child who
was returned to the home of the individual
during the preceding 2 months after hav-
ing been removed from the home; or
‘‘(VI) who is providing full-time care
for a disabled dependent of the individual;
‘‘(C)(i) each qualified individual must par-
ticipate in the transition component, except as
otherwise provided in this subparagraph;
‘‘(ii) a qualified individual may not be re-
quired (but may be allowed) to participate in
the transition component if, on the basis of de-
mographic criteria, the State finds that it is un-
likely that the individual will be a recipient of
aid under the plan during a significant length
of time;
‘‘(iii) a qualified individual may not par-
ticipate in the transition component if the indi-
vidual has elected to participate in the work
component; and
‘‘(iv) a qualified individual may not partici-
pate in the transition component after the first
24 months for which the individual is a quali-
fied individual;
‘‘(D)(i) each qualified individual participat-
ing in the transition component must partici-
pate in activities under such component for an
average of not fewer than 10 hours per week
during the first 24 months of such participa-
tion;
‘‘(ii) the State, in consultation with the
Secretary, must establish guidelines by which
determinations under clause (i) will be made,
and which, in the case of educational activities
under the transition component, must provide
that an individual who is enrolled full-time in a
program of study at an educational institution
(including a vocational or technical training
school), as determined by the institution, and is
making satisfactory progress in the program of
study, as determined by the institution, is to be
regarded as participating in the transition com-
ponent, in accordance with such rules as the
Secretary may prescribe (including rules gov-
erning how time spent in such a program of
study is to be converted into hours of participa-
tion in the transition component);
‘‘(E)(i) the State must require each quali-
fied individual (or, in the case of a family which
has received aid under the plan by reason of
section 407, at least 1 parent (or, at the option
of the State, both parents) in the family) who
is not participating in the transition component
to participate in the work component; and
‘‘(ii) any qualified individual participating
in the work component, may, with the approval
of the State, discontinue participation in the
work component and begin or resume participa-
tion in the transition component, subject to
subparagraph (C)(iv);
‘‘(iii) the State may, at its option, exempt
a qualified individual, during 12 of the first 24
months for which an individual is a qualified in-
dividual, from the requirement to participate in
the transition component or the work compo-
nent if the individual is described in paragraph
(35)(A) and is in compliance with paragraph
(35)(A);
‘‘(F) each qualified individual must cooper-
ate with the State in developing a plan which—
‘‘(i) describes the respective respon-
sibilities of the State and of the individual
under the program with the goal of prepar-
ing the individual for work; and
‘‘(ii) includes a written statement in-
forming the individual that, upon comple-
tion of the transition component, aid under
the State plan under this part will be dis-
continued unless the individual finds gain-
ful employment or is participating in the
work component;
‘‘(G) at the end of the first 12 months for
which an individual is a qualified individual (or,
at the option of the State, more frequently), the
State must determine whether the individual is
making clear and substantial progress toward
preparing for work (as defined by the State in
consultation with the Secretary);
‘‘(H) if the State determines that a quali-
fied individual has failed to meet any require-
ment imposed under this paragraph—
‘‘(i) in the case of the 1st such failure,
subclauses 
(I) 
and 
(II) 
of 
section
402(a)(19)(G)(i) shall apply until the fail-
ure to comply ceases;
‘‘(ii) in the case of the 2nd such fail-
ure, subclauses (I) and (II) of section
402(a)(19)(G)(i) shall apply until the fail-
ure to comply ceases or 3 months, which-
ever is longer; and
‘‘(iii) in the case of the 3rd such fail-
ure, the family of the individual shall not
be eligible for aid under the State plan
under this part, notwithstanding any other
provision of this part;
‘‘(I) at the option of the State, the State
may impose a rule under which the family of an
individual shall not be eligible for aid under the
State plan under this part, notwithstanding any
other provision of this part, after the individual
has been required to participate in the work
component for a period (determined by the
State) of not less than 3 years; and
‘‘(J) if a family becomes ineligible for aid
under the State plan under this part by reason
of subparagraph (H)(iii) or (I), the family shall,
for purposes of medical assistance under the
State plan under title XIX, be deemed to be a
recipient of aid under the State plan under this
part for so long as the family is otherwise eligi-
ble for aid under the State plan under this
part.’’.
(b) PAYMENTS TO STATES.—Section 403 of such Act
(42 U.S.C. 603) is amended by adding at the end the fol-
lowing:
‘‘(o)(1) Each State which has been paid under sub-
section (l) for any fiscal year an amount equal to the limi-
tation determined under subsection (k)(2) for the fiscal
year, and which operates a program under section
402(a)(29), shall be entitled to payments under paragraph
(4) of this subsection for the fiscal year in an amount
equal to the lesser of—
‘‘(A) the sum of the applicable percentages
(specified in such paragraph (4)) of its expenditures
to carry out the program (subject to limitations pre-
scribed by or pursuant to such section or such para-
graph (4) on expenditures that may be included for
purposes of determining payment under such para-
graph (4)); or
‘‘(B) the limitation determined under paragraph
(2) of this subsection with respect to the State for
the fiscal year.
‘‘(2) The limitation determined under this paragraph
with respect to a State for any fiscal year is the amount
that bears the same ratio to the amount specified in para-
graph (3) for the fiscal year as the average monthly num-
ber of adult recipients (as defined in subsection (k)(4))
in the State in the preceding fiscal year bears to the aver-
age monthly number of such recipients in all the States
for such preceding year.
‘‘(3) The amount specified in this paragraph is—
‘‘(A) $50,000,000 for fiscal year 1994;
‘‘(B) $200,000,000 for fiscal year 1995;
‘‘(C) $600,000,000 for fiscal year 1996;
‘‘(D) $1,000,000,000 for fiscal year 1997; and
‘‘(E) $1,500,000,000 for fiscal year 1998.
‘‘(4) Each State which has been paid under sub-
section (l) for a fiscal year an amount equal to the limita-
tion determined under subsection (k)(2) for the fiscal year,
and which operates a program under section 402(a)(29)
during the fiscal year shall, in addition to any payment
under subsection (a) or (l), be entitled to payment from
the Secretary of an amount equal to—
‘‘(A) 50 percent of the expenditures of the
State for administrative costs incurred in operating
the program during the fiscal year (other than per-
sonnel costs for staff employed in the operation of
the program); and
‘‘(B) the greater of 70 percent or the Federal
medical assistance percentage (as defined in section
1118 in the case of a State to which section 1108
applies, or as defined in section 1905(b) in the case
of any other State) of the other expenditures of the
State incurred in operating the program during the
fiscal year.
‘‘(5)(A) Notwithstanding paragraph (4), the Sec-
retary shall pay to a State an amount equal to 50 percent
of the expenditures of the State incurred in operating the
program under section 402(a)(29) during a fiscal year if
the State’s participation rate (determined under subpara-
graph (B)) for the immediately preceding fiscal year is less
than—
‘‘(i) 15 percent if the preceding fiscal year is
1994;
‘‘(ii) 20 percent if such year is 1995;
‘‘(iii) 30 percent if such year is 1996;
‘‘(iv) 40 percent if such year is 1997;
‘‘(v) 50 percent if such year is 1998;
‘‘(vi) 60 percent if such year is 1999; and
‘‘(vii) 70 percent if such year is 2000.
‘‘(B)(i) The State’s participation rate for a fiscal year
shall be the number, expressed as a percentage, equal to—
‘‘(I) the number of individuals who participated
in the State’s program under section 402(a)(29) in
the year; divided by
‘‘(II) the number of individuals required to par-
ticipate in the program in the year (including indi-
viduals with respect to whom the State has exercised
its option to require their participation).
‘‘(ii) For purposes of this subparagraph, an individ-
ual shall not be considered to have satisfactorily partici-
pated in the program under section 402(a)(29) solely by
reason of the individual being registered to participate in
the program.
‘‘(C) For purposes of this paragraph, an individual
shall be considered to have participated in the program
under section 402(a)(29) if the individual has participated
in accordance with such requirements, consistent with reg-
ulations of the Secretary, as the State shall establish.
‘‘(D) If the Secretary determines that a State has
failed to achieve the participation rate for any fiscal year
specified in subparagraph (A), the Secretary may waive,
in whole or in part, the reduction in the payment rate oth-
erwise required by subparagraph (A) if the Secretary finds
that the State—
‘‘(i) is in conformity with section 402(a)(29);
‘‘(ii) has made a good faith effort to achieve the
participation rate; and
‘‘(iii) has submitted a proposal which is likely
to achieve the applicable participation rates for the
current fiscal year and any succeeding fiscal year so
specified.’’.
(c) CONFORMING AMENDMENTS.—Section 403(l)(3)
of such Act (42 U.S.C. 603(l)(3)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘and’’ at the end of clause
(v);
(B) by striking the period in clause (vi)
and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(vii) 30 percent if such year is 1996;
‘‘(viii) 40 percent if such year is 1997;
‘‘(ix) 50 percent if such year is 1998;
‘‘(x) 60 percent if such year is 1999; and
‘‘(xi) 70 percent if such year is 2000.’’; and
(2) in subparagraph (B)(ii)(IV), by striking
‘‘and 1995’’ and inserting ‘‘through 2000’’.
SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM
AMENDMENTS.
Section 482(f)(1)(B) of the Social Security Act (42
U.S.C. 682(f)(1)(B)) is amended—
(1) in clause (i)—
(A) by inserting ‘‘(I)’’ after ‘‘(B)(i)’’; and
(B) by striking ‘‘(as determined by the
State)’’ and inserting ‘‘in the transition compo-
nent of the program under section 402(a)(29)
who is required to participate in the program
established under this subsection’’; and
(C) by adding at the end the following:
‘‘(II) Each participant in the work component of the
program under section 402(a)(29) who is required to par-
ticipate in the program established under this subsection
may not be required to work in any month for a number
of hours that exceeds 35 (or 30, if the State requires the
participant to engage in a job search program established
by the State under subsection (g)).’’; and
(2) in clause (ii), by inserting ‘‘who is a partici-
pant in the transition component of the program
under section 402(a)(29)’’ after ‘‘an individual’’.
SEC. 103. WORK SUPPLEMENTATION PROGRAM AMEND-
MENTS.
(a) AUTHORITY OF STATES TO ASSIGN PARTICI-
PANTS TO UNFILLED JOBS.—Section 484(c) of the Social
Security Act (42 U.S.C. 684(c)) is amended by striking
the last sentence.
(b) AUTHORITY OF STATES TO USE SUMS THAT
WOULD OTHERWISE BE EXPENDED FOR FOOD STAMP
BENEFITS TO PROVIDE SUBSIDIZED JOBS FOR PARTICI-
PANTS.—
(1) IN GENERAL.—Section 482(e)(1) of such
Act (42 U.S.C. 682(e)(1)) is amended—
(A) by inserting ‘‘, and the sums that
would otherwise be used to provide participants
in the program under this subsection with food
stamp benefits under the Food Stamp Act of
1977,’’ before ‘‘and use’’; and
(B) by inserting ‘‘and the food stamp ben-
efits that would otherwise be so provided to
them’’ before the period.
(2) SUBSIDIES PROVIDED TO EMPLOYERS AND
INCLUDED IN WAGES OF PARTICIPANTS; MINIMUM
EMPLOYER
CONTRIBUTION.—Section 482(e)(3) of
such Act (42 U.S.C. 682(e)(3)) is amended by add-
ing at the end the following:
‘‘(E) Each State operating a work supplementation
program under this subsection shall enter into an agree-
ment with the employer who is to provide an eligible indi-
vidual with a supplemented job under the program, under
which—
‘‘(i) the State is required to pay the employer
an amount specified in the agreement as the sub-
sidized portion of the wages of the eligible individ-
ual; and
‘‘(ii) the employer is required to pay the eligible
individual wages which, when added to an amount
that will be payable as aid to families with depend-
ent children to the individual if the individual is paid
such wages, are not less than 125 percent of the
sum of—
‘‘(I) the amount that would otherwise be
payable as aid to families with dependent chil-
dren to the eligible individual if the State did
not have a work supplementation program
under this subsection in effect; and
‘‘(II) if the State elects to subsidize jobs
for participants in the program through the res-
ervation of sums that would otherwise be used
to provide such participants with food stamp
benefits under the Food Stamp Act of 1977,
the amount paid to the State by the Secretary
of Agriculture that represents the cash value of
the food stamp benefits for which the household
of the eligible individual is a member is eligible
under such Act.
‘‘(F) For purposes of computing the amount of the
Federal payment to a State under paragraph (1) or (2)
of section 403(a), for expenditures incurred in making
payments to individuals and employers under the State’s
work supplementation program under this section, the
State may claim as such expenditures the maximum
amount payable to the State under paragraph (4) of this
subsection.
‘‘(G) Notwithstanding paragraph (1), a State may
use for any purpose the sums reserved under paragraph
(1) which are not used to subsidize jobs under this sub-
section attributable to savings achieved by operation of
subparagraph (E).’’.
(3) 
CONFORMING
AMENDMENT.—Section
482(e)(3)(A) of such Act (42 U.S.C. 682(e)(3)(A))
is amended by striking the 2nd sentence.
(4) EMPLOYMENT CASHOUT OF FOOD STAMP
BENEFITS.—Section 16 of the Food Stamp Act of
1977 (7 U.S.C. 2025) is amended by adding at the
end the following:
‘‘(l) If a State agency of a State that makes the elec-
tion described in section 482(e)(3)(E)(ii)(II) of the Social
Security Act informs the Secretary that an individual who
is participating in the work supplementation program car-
ried out under section 482(e) of such Act is a member
of a household that participates in the food stamp pro-
gram and all the members of the household receive bene-
fits under a State plan approved under part A of title IV
of such Act—
‘‘(1) the Secretary shall pay to the State an
amount equal to the value of the food stamp benefits
the household is eligible to receive under this Act;
‘‘(2) the State shall expend the amount in ac-
cordance with section 482(e)(3) of the Social Secu-
rity Act to make a payment to the individual in lieu
of food stamp benefits the household would receive
but for the operation of this subsection;
‘‘(3) for purposes of—
‘‘(A) sections 5 and 8(a) of this Act, the
amount shall be excluded from household in-
come and resources; and
‘‘(B) section 8(b) of this Act, the amount
shall be considered as the value of an allotment
provided to the household; and
‘‘(4) the household shall not receive food stamp
benefits from the State agency for the period during
which the member continues to participate in the
work supplementation program.’’.
SEC. 104. EFFECTIVE DATE; REGULATIONS.
(a) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this Act shall
take effect on October 1, 1994.
(2) STATE
OPTION
FOR
EARLY
APPLICABIL-
ITY.—If a State formally notifies the Secretary of
Health and Human Services of its desire to operate
a program pursuant to section 402(a)(29) of the So-
cial Security Act, during any period which begins
after the date of the enactment of this Act and ends
on September 30, 1994, with respect to 1 or more
groups of individuals selected by the State who are
eligible for aid under the State plan approved under
section 402 of the Social Security Act, and makes
such changes in the plan as are required in order to
so operate the program (except that, in lieu of the
definition contained in section 402(a)(29)(B)(i),
there is substituted a definition which describes such
group or groups) then—
(A) such section 402(a)(29) (with such ex-
ceptions) shall apply to the State during the pe-
riod; and
(B) section 403(o)(4)(B) of the Social Se-
curity Act shall be applied to the State for the
first 12 months of such period by substituting
‘‘85 percent’’ for ‘‘the greater of 70 percent or
the Federal medical assistance percentage (as
defined in section 1118 in the case of a State
to which section 1108 applies, or as defined in
section 1905(b) in the case of any other
State)’’.
(b) REGULATIONS.—Not later than 1 year after the
effective date of this Act, the Secretary of Health and
Human Services shall prescribe such regulations as may
be necessary to enable States to establish and operate
programs pursuant to section 402(a)(29) of the Social Se-
curity Act.
TITLE II—EXPANDED STATE
WAIVER AUTHORITY
SEC. 201. AUTHORITY TO GRANT WAIVERS TO PROVISIONS
OF SOCIAL WELFARE STATUTES TO BETTER
ENABLE PROVIDERS OF SOCIAL SERVICES TO
PROMOTE SELF-SUFFICIENCY.
(a) INTERAGENCY WAIVER REQUEST BOARD.—
(1) ESTABLISHMENT AND PURPOSE.—In order
to provide a focal point within the Federal Govern-
ment for the development and coordination of waiver
requests designed to improve opportunities for low-
income individuals and families, there is established
an Interagency Waiver Request Board (in this sub-
section referred to as the ‘‘Board’’) which shall pro-
vide advice to the Chairman of the Board (in this
section referred to as the ‘‘Chairman’’) in carrying
out this section.