611
(d) REPEAL OF DEMONSTRATION PROJECTS.—Sec-
tion 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)
is amended by—
(1) by striking subsection (i); and
(2) redesignating subsections (j) through (l) as
subsections (i) through (k), respectively.
SEC. 949. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL
COMMODITIES.—The term
‘additional commodities’ means commodities made
available under section 214 in addition to the com-
modities made available under sections 202 and
203D.
‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM-
PLOYED
PERSONS.—The term ‘average monthly
number of unemployed persons’ means the average
monthly number of unemployed persons in each
State in the most recent fiscal year for which infor-
mation concerning the number of unemployed per-
sons is available, as determined by the Bureau of
Labor Statistics of the Department of Labor.
612
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term
‘eligible recipient agency’ means a public or non-
profit organization—
‘‘(A) that administers—
‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (including
a hospital and a retirement home, but ex-
cluding a penal institution) to the extent
that the institution serves needy persons;
‘‘(iii) a summer camp for children, or
a child nutrition program providing food
service;
‘‘(iv) a nutrition project operating
under the Older Americans Act of 1965
(42 U.S.C. 3001 et seq.), including a
project that operates a congregate nutri-
tion site and a project that provides home-
delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the ap-
propriate State agency, or by the Secretary;
and
613
‘‘(C) that has been approved by the Sec-
retary for participation in the program estab-
lished under this Act.
‘‘(4) EMERGENCY
FEEDING
ORGANIZATION.—
The term ‘emergency feeding organization’ means a
public or nonprofit organization that administers ac-
tivities and projects (including the activities and
projects of a charitable institution, a food bank, a
food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recip-
ient agency) providing nutrition assistance to relieve
situations of emergency and distress through the
provision of food to needy persons, including low-in-
come and unemployed persons.
‘‘(5) FOOD
BANK.—The term ‘food bank’
means a public or charitable institution that main-
tains an established operation involving the provision
of food or edible commodities, or the products of
food or edible commodities, to food pantries, soup
kitchens, hunger relief centers, or other food or feed-
ing centers that, as an integral part of their normal
activities, provide meals or food to feed needy per-
sons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’
means a public or private nonprofit organization
614
that distributes food to low-income and unemployed
households, including food from sources other than
the Department of Agriculture, to relieve situations
of emergency and distress.
‘‘(7) POVERTY LINE.—The term ‘poverty line’
has the same meaning given the term in section
673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’
means a public or charitable institution that, as an
integral part of the normal activities of the institu-
tion, maintains an established feeding operation to
provide food to needy homeless persons on a regular
basis.
‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD-
ITIES.—The term ‘total value of additional commod-
ities’ means the actual cost of all additional com-
modities made available under section 214 that are
paid by the Secretary (including the distribution and
processing costs incurred by the Secretary).
‘‘(10) VALUE
OF
ADDITIONAL
COMMODITIES
ALLOCATED TO EACH STATE.—The term ‘value of
additional commodities allocated to each State’
means the actual cost of additional commodities
made available under section 214 and allocated to
615
each State that are paid by the Secretary (including
the distribution and processing costs incurred by the
Secretary).’’.
(b) STATE PLAN.—Section 202A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) (7 U.S.C. 612c note) is amended to read as
follows:
‘‘SEC. 202A. STATE PLAN.
‘‘(a) IN GENERAL.—To receive commodities under
this Act, a State shall submit a plan of operation and ad-
ministration every 4 years to the Secretary for approval.
The plan may be amended at any time, with the approval
of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for
distributing the commodities received under this Act;
‘‘(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this Act;
‘‘(3) set forth the standards of eligibility for re-
cipient agencies; and
‘‘(4) set forth the standards of eligibility for in-
dividual or household recipients of commodities,
which shall require—
616
‘‘(A) individuals or households to be com-
prised of needy persons; and
‘‘(B) individual or household members to
be residing in the geographic location served by
the distributing agency at the time of applying
for assistance.
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall
encourage each State receiving commodities under this Act
to establish a State advisory board consisting of represent-
atives of all interested entities, both public and private,
in the distribution of commodities received under this Act
in the State.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE FUNDS.—Section 204(a)(1) of the Emer-
gency Food Assistance Act of 1983 (Public Law 98–8; 7
U.S.C. 612c note) (7 U.S.C. 612c note) is amended—
(1) in the 1st sentence—
(A) by striking ‘‘1991 through 1995’’ and
inserting ‘‘1996 through 2002’’; and
(B) by striking ‘‘for State and local’’ and
all that follows through ‘‘under this title’’ and
inserting ‘‘to pay for the direct and indirect ad-
ministrative costs of the State related to the
processing, transporting, and distributing to eli-
gible recipient agencies of commodities provided
617
by the Secretary under this Act and commod-
ities secured from other sources’’; and
(2) by striking the fourth sentence.
(d) TECHNICAL
AMENDMENTS.—The Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) (7 U.S.C. 612c note) is amended—
(1) in the 1st sentence of section 203B(a), by
striking ‘‘203 and 203A of this Act’’ and inserting
‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each
place it appears and inserting ‘‘Act’’; and
(3) by striking section 212.
(e) REPORT ON EFAP.—Section 1571 of the Food
Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c
note) is repealed.
SEC. 950. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food
Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c
note) is repealed.
SEC. 951. REPORT ON ENTITLEMENT COMMODITY PROC-
ESSING.
Section 1773 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
612c note) is amended by striking subsection (f).
618
TITLE X—MISCELLANEOUS
SEC. 1001. EXPENDITURE OF FEDERAL FUNDS IN ACCORD-
ANCE WITH LAWS AND PROCEDURES APPLI-
CABLE TO EXPENDITURE OF STATE FUNDS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, any funds received by a State under the provi-
sions of law specified in subsection (b) shall be expended
only in accordance with the laws and procedures applicable
to expenditures of the State’s own revenues, including ap-
propriation by the State legislature, consistent with the
terms and conditions required under such provisions of
law.
(b) PROVISIONS
OF LAW.—The provisions of law
specified in this subsection are the following:
(1) Part A of title IV of the Social Security Act
(relating to block grants for temporary assistance
for needy families).
(2) Section 25 of the Food Stamp Act of 1977
(relating to the optional State food assistance block
grant).
(3) The Child Care and Development Block
Grant Act of 1990 (relating to block grants for child
care).
619
SEC. 1002. ELIMINATION OF HOUSING ASSISTANCE WITH
RESPECT TO FUGITIVE FELONS AND PROBA-
TION AND PAROLE VIOLATORS.
(a) ELIGIBILITY
FOR
ASSISTANCE.—The United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended—
(1) in section 6(l)—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) in paragraph (6), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by inserting immediately after para-
graph (6) the following new paragraph:
‘‘(7) provide that it shall be cause for imme-
diate termination of the tenancy of a public housing
tenant if such tenant—
‘‘(A) is fleeing to avoid prosecution, or cus-
tody or confinement after conviction, under the
laws of the place from which the individual
flees, for a crime, or attempt to commit a
crime, which is a felony under the laws of the
place from which the individual flees, or which,
in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State;
or
620
‘‘(2) is violating a condition of probation or pa-
role imposed under Federal or State law.’’; and
(2) in section 8(d)(1)(B)—
(A) in clause (iii), by striking ‘‘and’’ at the
end;
(B) in clause (iv), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding after clause (iv) the follow-
ing new clause:
‘‘(v) it shall be cause for termination
of the tenancy of a tenant if such tenant—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, under the laws of the place
from which the individual flees, for a
crime, or attempt to commit a crime,
which is a felony under the laws of
the place from which the individual
flees, or which, in the case of the
State of New Jersey, is a high mis-
demeanor under the laws of such
State; or
‘‘(II) is violating a condition of
probation or parole imposed under
Federal or State law;’’.
621
(b) PROVISION OF INFORMATION TO LAW ENFORCE-
MENT AGENCIES.—Title I of the United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.), as amended by sec-
tion 601 of this Act, is amended by adding at the end
the following:
‘‘SEC. 28. EXCHANGE OF INFORMATION WITH LAW EN-
FORCEMENT AGENCIES.
‘‘Notwithstanding any other provision of law, each
public housing agency that enters into a contract for as-
sistance under section 6 or 8 of this Act with the Secretary
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 appli-
cable) of any recipient of assistance under this Act, if the
officer—
‘‘(1) furnishes the public housing agency with
the name of the recipient; and
‘‘(2) notifies the agency that—
‘‘(A) such recipient—
‘‘(i) is fleeing to avoid prosecution, or
custody or confinement after conviction,
under the laws of the place from which the
individual flees, for a crime, or attempt to
commit a crime, which is a felony under
the laws of the place from which the indi-
622
vidual flees, or which, in the case of the
State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(ii) is violating a condition of proba-
tion or parole imposed under Federal or
State law; or
‘‘(iii) has information that is nec-
essary for the officer to conduct the offi-
cer’s official duties;
‘‘(B) the location or apprehension of the
recipient is within such officer’s official duties;
and
‘‘(C) the request is made in the proper ex-
ercise of the officer’s official duties.’’.
SEC. 1003. SENSE OF THE SENATE REGARDING ENTER-
PRISE ZONES.
(a) FINDINGS.—The Senate finds that:
(1) Many of the Nation’s urban centers are
places with high levels of poverty, high rates of wel-
fare dependency, high crime rates, poor schools, and
joblessness;
(2) Federal tax incentives and regulatory re-
forms can encourage economic growth, job creation
and small business formation in many urban centers;
623
(3) Encouraging private sector investment in
America’s economically distressed urban and rural
areas is essential to breaking the cycle of poverty
and the related ills of crime, drug abuse, illiteracy,
welfare dependency, and unemployment;
(4) The empowerment zones enacted in 1993
should be enhanced by providing incentives to in-
crease entrepreneurial growth, capital formation, job
creation, educational opportunities, and home owner-
ship in the designated communities and zones.
(b) SENSE OF THE SENATE.—Therefore, it is the
Sense of the Senate that the Congress should adopt enter-
prise zone legislation in the One Hundred Fourth Con-
gress, and that such enterprise zone legislation provide the
following incentives and provisions:
(1) Federal tax incentives that expand access to
capital, increase the formation and expansion of
small businesses, and promote commercial revitaliza-
tion;
(2) Regulatory reforms that allow localities to
petition Federal agencies, subject to the relevant
agencies’ approval, for waivers or modifications of
regulations to improve job creation, small business
formation and expansion, community development,
624
or economic revitalization objectives of the enterprise
zones;
(3) Home ownership incentives and grants to
encourage resident management of public housing
and home ownership of public housing;
(4) School reform pilot projects in certain des-
ignated enterprise zones to provide low-income par-
ents with new and expanded educational options for
their children’s elementary and secondary schooling.
SEC. 1004. SENSE OF THE SENATE REGARDING THE IN-
ABILITY OF THE NONCUSTODIAL PARENT TO
PAY CHILD SUPPORT.
It is the sense of the Senate that—
(a) States should diligently continue their ef-
forts to enforce child support payments by the non-
custodial parent to the custodial parent, regardless
of the employment status or location of the non-
custodial parent; and
(b) States are encouraged to pursue pilot pro-
grams in which the parents of a nonadult, noncusto-
dial parent who refuses to or is unable to pay child
support must—
(1) pay or contribute to the child support
owed by the noncustodial parent; or
625
(2) otherwise fulfill all financial obligations
and meet all conditions imposed on the
non÷custodial parent, such as participation in a
work program or other related activity.
SEC. 1005. FOOD STAMP ELIGIBILITY.
Section 6(f) of the Food Stamp Act of 1977 (7
U.S.C. 2015(f)) is amended by striking the third sentence
and inserting the following:
‘‘The State agency shall, at its option, consider either
all income and financial resources of the individual ren-
dered ineligible to participate in the food stamp program
under this subsection, or such income, less a pro rata
share, and the financial resources of the ineligible individ-
ual, to determine the eligibility and the value of the allot-
ment of the household of which such individual is a mem-
ber.’’.
SEC. 1006. ESTABLISHING NATIONAL GOALS TO PREVENT
TEENAGE PREGNANCIES.
(a) IN GENERAL.—Not later than January 1, 1997,
the Secretary of Health and Human Services shall estab-
lish and implement a strategy for—
(1) preventing out-of-wedlock teenage preg-
nancies, and
626
(2) assuring that at least 25 percent of the
communities in the United States have teenage preg-
nancy prevention programs in place.
(b) REPORT.—Not later than June 30, 1998, and an-
nually thereafter, the Secretary shall report to the Con-
gress with respect to the progress that has been made in
meeting the goals described in paragraphs (1) and (2) of
subsection (a).
SEC. 1007. SENSE OF THE SENATE REGARDING ENFORCE-
MENT OF STATUTORY RAPE LAWS.
It is the sense of the Senate that States and local
jurisdictions should aggressively enforce statutory rape
laws.
SEC. 1008. SANCTIONING FOR TESTING POSITIVE FOR
CONTROLLED SUBSTANCES.
Notwithstanding any other provision of law, States
shall not be prohibited by the Federal Government from
sanctioning welfare recipients who test positive for use of
controlled substances.
SEC. 1009. ABSTINENCE EDUCATION.
Title V of the Social Security Act (42 U.S.C. 701–
709) is amended by adding at the end the following new
section:
‘‘ABSTINENCE EDUCATION
‘‘SEC. 510. (a) There are authorized to be appro-
priated $75,000,000 for the purposes of enabling the Sec-
627
retary, through grants, contracts, or otherwise to provide
for abstinence education, and at the option of the State,
where appropriate, mentoring, counseling, and adult su-
pervision to promote abstinence from sexual activity, with
a focus on those groups which are most liekly to bear chil-
dren out of wedlock.
‘‘(b) For purposes of this section, the term ‘absti-
nence education’ means an educational or motivational
program which—
‘‘(1) has as its exclusive purpose, teaching the
social, psychological, and health gains to be realized
by abstaining from sexual activity;
‘‘(2) teaches abstinence from sexual activity
outside marriage as the expected standard for all
school age children;
‘‘(3) teaches that abstinence from sexual activ-
ity is the only certain way to avoid out-of-wedlock
pregnancy, sexually transmitted diseases, and other
associated health problems;
‘‘(4) 
teaches 
that 
a 
mutually 
faithful
monogamous relationship in context of marriage is
the expected standard of human sexual activity;
‘‘(5) teaches that sexual activity outside of the
context of marriage is likely to have harmful psycho-
logical and physical effects;
628
‘‘(6) teaches that bearing children out-of-wed-
lock is likely to have harmful consequences for the
child, the child’s parents, and society;
‘‘(7) teaches young people how to reject sexual
advances and how alcohol and drug use increases
vulnerability to sexual advances; and
‘‘(8) teaches the importance of attaining self-
sufficiency before engaging in sexual activity.’’.
SEC. 1010. PROVISIONS TO ENCOURAGE ELECTRONIC BEN-
EFIT TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) 
APPLICABILITY
TO
SERVICE
PROVIDERS
OTHER
THAN
CERTAIN
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION
GENERALLY.—The dis-
closures, protections, responsibilities, and rem-
edies established under this title, and any regu-
lation prescribed or order issued by the Board
629
in accordance with this title, shall not apply to
any electronic benefit transfer program estab-
lished under State or local law or administered
by a State or local government.
‘‘(B) EXCEPTION
FOR
DIRECT
DEPOSIT
INTO
RECIPIENT’S
ACCOUNT.—Subparagraph
(A) shall not apply with respect to any elec-
tronic funds transfer under an electronic benefit
transfer program for deposits directly into a
consumer account held by the recipient of the
benefit.
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph may be construed as—
‘‘(i) affecting or altering the protec-
tions otherwise applicable with respect to
benefits established by Federal, State, or
local law; or
‘‘(ii) otherwise superseding the appli-
cation of any State or local law.
‘‘(D) ELECTRONIC
BENEFIT
TRANSFER
PROGRAM
DEFINED.—For purposes of this
paragraph, the term ‘electronic benefit transfer
program’—
‘‘(i) means a program under which a
government agency distributes needs-tested
630
benefits by establishing accounts to be
accessed by recipients electronically, such
as through automated teller machines, or
point-of-sale terminals; and
‘‘(ii) does not include employment-re-
lated payments, including salaries and pen-
sion, retirement, or unemployment benefits
established by Federal, State, or local gov-
ernments.’’.
SEC. 1011. REDUCTION IN BLOCK GRANTS TO STATES FOR
SOCIAL SERVICES.
Section 2003(c) of the Social Security Act (42 U.S.C.
1397b(c)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4); and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) $2,800,000,000 for each of the fiscal years
1990 through 1996 and for each fiscal year after fis-
cal year 2002; and
‘‘(6) $2,520,000,000 for each of the fiscal years
1997 through 2002.’’.
631
SEC. 1012. EFFICIENT USE OF FEDERAL TRANSPORTATION
FUNDS.
The Secretary of Health and Human Services is en-
couraged to work in coordination with State agencies to
ensure that Federal transportation funds that may be
used for the benefit of persons receiving public assistance
pursuant to this Act and the amendments made by this
Act are most efficiently used for such purpose. The Sec-
retary shall work with the individual States to develop cri-
teria and measurements to report back to the Congress,
within 3 years after the date of the enactment of this Act,
the following:
(1) The use of competitive contracting or other
market-oriented strategies to achieve efficiencies.
(2) The efficient use of all related transpor-
tation funds to support persons receiving assistance
pursuant to this Act and the amendments made by
this Act.
(3) The actual value derived from transpor-
tation services to achieve such purposes.
(4) The application of such analyses to other
support services to achieve such purposes.
632
SEC. 1013. ENHANCED FEDERAL MATCH FOR CHILD WEL-
FARE AUTOMATION EXPENSES.
(a) IN GENERAL.—Section 474(a)(3)(C) of the Social
Security Act (42 U.S.C. 674(a)(3)(C)) is amended to read
as follows:
‘‘(C) 50 percent (or, if the quarter is in
fiscal year 1997, 75 percent) of so much of
such expenditures as are for the planning, de-
sign, development, or installation of statewide
mechanized data collection and information re-
trieval systems (including 50 percent (or, if the
quarter is in fiscal year 1997, 75 percent) of
the full amount of expenditures for hardware
components for such systems) but only to the
extent that such systems—
‘‘(i) meet the requirements imposed
by regulations;
‘‘(ii) to the extent practicable, are ca-
pable of interfacing with the State data
collection system that collects information
relating to child abuse and neglect;
‘‘(iii) to the extent practicable, have
the capability of interfacing with, and re-
trieving information from, the State data
collection system that collects information
relating to the eligibility of individuals
633
under part A (for the purposes of facilitat-
ing verification of eligibility of foster chil-
dren); and
‘‘(iv) are determined by the Secretary
to be likely to provide more efficient, eco-
nomical, and effective administration of
the programs carried out under a State
plan approved under this part;’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall be effective on and after October 1,
1996.
Subtitle B—Earned Income Tax
Credit
SEC. 1021. EARNED INCOME CREDIT AND OTHER TAX BENE-
FITS DENIED TO INDIVIDUALS FAILING TO
PROVIDE TAXPAYER IDENTIFICATION NUM-
BERS.
(a) EARNED INCOME CREDIT.—
(1) IN GENERAL.—Section 32(c)(1) of the In-
ternal Revenue Code of 1986 (relating to individuals
eligible to claim the earned income credit) is amend-
ed by adding at the end the following new subpara-
graph:
‘‘(F) IDENTIFICATION NUMBER REQUIRE-
MENT.—The term ‘eligible individual’ does not
634
include any individual who does not include on
the return of tax for the taxable year—
‘‘(i) such individual’s taxpayer identi-
fication number, and
‘‘(ii) if the individual is married (with-
in the meaning of section 7703), the tax-
payer identification number of such indi-
vidual’s spouse.’’
(2) SPECIAL
IDENTIFICATION
NUMBER.—Sec-
tion 32 of such Code is amended by adding at the
end the following new subsection:
‘‘(l) IDENTIFICATION NUMBERS.—Solely for pur-
poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer
identification number means a social security number is-
sued to an individual by the Social Security Administra-
tion (other than a social security number issued pursuant
to subclause (II) (or that portion of subclause (III) that
relates to subclause (II)) of section 205(c)(2)(B)(i) of the
Social Security Act).’’
(b) PERSONAL EXEMPTION.—
(1) IN GENERAL.—Section 151 of such Code
(relating to allowance of deductions for personal ex-
emptions) is amended by adding at the end the fol-
lowing new subsection:
635
‘‘(e) INDENTIFYING INFORMATION REQUIRED.—No
exemption shall be allowed under this section with respect
to any individual unless the taxpayer identification num-
ber of such individual is included on the return claiming
the exemption.’’
(2) CONFORMING AMENDMENTS.—
(A) Subsection (e) of section 6109 of such
Code is repealed.
(B) Section 6724(d)(3) of such Code is
amended by adding ‘‘and’’ at the end of sub-
paragraph (C), by striking subparagraph (D),
and by redesignating subparagraph (E) as sub-
paragraph (D).
(c) DEPENDENT CARE CREDIT.—Subsection (e) of
section 21 of such Code (relating to expenses for house-
hold and dependent care services necessary for gainful em-
ployment) is amended by adding at the end the following
new paragraph:
‘‘(10) IDENTIFYING
INFORMATION
REQUIRED
WITH RESPECT TO QUALIFYING INDIVIDUALS.—No
credit shall be allowed under this section with re-
spect to any qualifying individual unless the tax-
payer identification number of such individual is in-
cluded on the return claiming the credit.’’
636
(d) EXTENSION OF PROCEDURES APPLICABLE TO
MATHEMATICAL
OR
CLERICAL
ERRORS.—Section
6213(g)(2) of such Code (relating to the definition of
mathematical or clerical errors) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D), and
(2) by striking the period at the end of sub-
paragraph (E) and inserting a comma, and
(3) by adding at the end the following new sub-
paragraphs:
‘‘(F) an omission of a correct taxpayer
identification number required under section 21
(relating to expenses for household and depend-
ent care services necessary for gainful employ-
ment), section 32 (relating to the earned in-
come credit) to be included on a return, or sec-
tion 151 (relating to allowance of deductions for
personal exemptions), and
‘‘(G) an entry on a return claiming the
credit under section 32 with respect to net
earnings from self-employment described in sec-
tion 32(c)(2)(A) to the extent the tax imposed
by section 1401 (relating to self-employment
tax) on such net earnings has not been paid.’’
637
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to returns the due
date for which (without regard to extensions) is more than
30 days after the date of the enactment of this Act.
SEC. 1022. RULES RELATING TO DENIAL OF EARNED IN-
COME CREDIT ON BASIS OF DISQUALIFIED
INCOME.
(a) REDUCTION IN DISQUALIFIED INCOME THRESH-
OLD.—
(1) IN GENERAL.—Section 32(i)(1) of the In-
ternal Revenue Code of 1986 (relating to denial of
credit for individuals having excessive investment in-
come) is amended by striking ‘‘$2,350’’ and insert-
ing ‘‘$2,200’’.
(2) ADJUSTMENT
FOR
INFLATION.—Section
32(j) of such Code is amended to read as follows:
‘‘(j) INFLATION ADJUSTMENTS.—
‘‘(1) IN GENERAL.—In the case of any taxable
year beginning after the applicable calendar year,
each dollar amount referred to in paragraph (2)(B)
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins, except
638
that subparagraph (B) thereof shall be applied
by reference to the CPI for the calendar year
preceding the applicable calendar year rather
than the CPI for calendar year 1992.
‘‘(2) DEFINITIONS, 
ETC.—For purposes of
paragraph (1)—
‘‘(A) APPLICABLE CALENDAR YEAR.—The
term ‘applicable calendar year’ means—
‘‘(i) 1994 in the case of the dollar
amounts referred to in clause (i) of sub-
paragraph (B), and
‘‘(ii) 1996 in the case of the dollar
amount referred to in clause (ii) of sub-
paragraph (B).
‘‘(B) 
DOLLAR
AMOUNTS.—The 
dollar
amounts referred to in this subparagraph are—
‘‘(i) the dollar amounts contained in
subsection (b)(2)(A), and
‘‘(ii) the dollar amount contained in
subsection (i)(1).
‘‘(3) ROUNDING.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), if any dollar amount after
being increased under paragraph (1) is not a
multiple of $10, such dollar amount shall be
639
rounded to the nearest multiple of $10 (or, if
such dollar amount is a multiple of $5, such
dollar amount shall be increased to the next
higher multiple of $10).
‘‘(B) DISQUALIFIED INCOME THRESHOLD
AMOUNT.—If the dollar amount referred to in
paragraph (2)(B)(ii) after being increased
under paragraph (1) is not a multiple of $50,
such amount shall be rounded to the next low-
est multiple of $50.’’
(b) DEFINITION OF DISQUALIFIED INCOME.—Para-
graph (2) of section 32(i) of such Code (defining disquali-
fied income) is amended by striking ‘‘and’’ at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting a comma, and by adding
at the end the following new subparagraphs:
‘‘(D) the capital gain net income (as de-
fined in section 1222) of the taxpayer for such
taxable year, and
‘‘(E) the excess (if any) of—
‘‘(i) the aggregate income from all
passive activities for the taxable year (de-
termined without regard to any amount in-
cluded in earned income under subsection
640
(c)(2) or described in a preceding subpara-
graph), over
‘‘(ii) the aggregate losses from all pas-
sive activities for the taxable year (as so
determined).
For purposes of subparagraph (E), the term
‘passive activity’ has the meaning given such
term by section 469.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 1023. MODIFICATION OF ADJUSTED GROSS INCOME
DEFINITION FOR EARNED INCOME CREDIT.
(a) IN GENERAL.—Subsections (a)(2), (c)(1)(C), and
(f)(2)(B) of section 32 of the Internal Revenue Code of
1986 are each amended by striking ‘‘adjusted gross in-
come’’ and inserting ‘‘modified adjusted gross income’’.
(b) MODIFIED
ADJUSTED
GROSS
INCOME
DE-
FINED.—Section 32(c) of such Code (relating to defini-
tions and special rules) is amended by adding at the end
the following new paragraph:
‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—
‘‘(A) IN
GENERAL.—The term ‘modified
adjusted gross income’ means adjusted gross in-
come—
641
‘‘(i) determined without regard to the
amounts described in subparagraph (B),
and
‘‘(ii) increased by
‘‘(I) the amount of interest re-
ceived or accrued by the taxpayer dur-
ing the taxable year which is exempt
from tax, and
‘‘(II) amounts received as a pen-
sion or annuity, and any distributions
or payments received from an individ-
ual retirement plan, by the taxpayer
during the taxable year to the extent
not included in gross income.
Clause (ii)(II) shall not include any amount
which is not includible in gross income by rea-
son of section 402(c), 403(a)(4), 403(b)(8),
408(d) (3), (4), or (5), or 457(e)(10).
‘‘(B) CERTAIN AMOUNTS DISREGARDED.—
An amount is described in this subparagraph if
it is—
‘‘(i) the amount of losses from sales
or exchanges of capital assets in excess of
gains from such sales or exchanges to the
642
extent such amount does not exceed the
amount under section 1211(b)(1),
‘‘(ii) the net loss from estates and
trusts,
‘‘(iii) the excess (if any) of amounts
described in subsection (i)(2)(C)(ii) over
the 
amounts 
described 
in 
subsection
(i)(2)(C)(i) (relating to nonbusiness rents
and royalties), and
‘‘(iv) the net loss from the carrying on
of trades or businesses, computed sepa-
rately with respect to—
‘‘(I) trades or businesses (other
than farming) conducted as sole pro-
prietorships,
‘‘(II) trades or businesses of
farming conducted as sole proprietor-
ships, and
‘‘(III) other trades or businesses.
For purposes of clause (iv), there shall not
be taken into account items which are at-
tributable to a trade or business which
consists of the performance of services by
the taxpayer as an employee.’’
643
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 1024. NOTICE OF AVAILABILITY REQUIRED TO BE PRO-
VIDED TO APPLICANTS AND FORMER RECIPI-
ENTS 
OF 
TEMPORARY 
ASSISTANCE 
FOR
NEEDY FAMILIES, FOOD STAMPS, AND MEDIC-
AID.
(a) TEMPORARY ASSISTANCE
FOR NEEDY FAMI-
LIES.—Section 408(a), as added by section 103 of this
Act, is amended by adding at the end the following:
‘‘(16) NOTICE OF EITC AVAILABILITY.—A State
to which a grant is made under section 403 shall
provide written notice of the existence and availabil-
ity of the earned income credit under section 32 of
the Internal Revenue Code of 1986 to—
‘‘(A) any individual who applies for assist-
ance under the State program funded under
this part, upon receipt of the application; and
‘‘(B) any individual whose assistance under
the State program is terminated, in the notice
of termination of such assistance.’’.
(b) FOOD STAMPS.—Section 11(e) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—
644
(1) in paragraph (24) by striking ‘‘and’’ at the
end;
(2) in paragraph (25) by striking the period at
the end and inserting ‘‘; and’’; and
(3) by inserting after paragraph (25) the fol-
lowing:
‘‘(26) that whenever a household applies for
food stamp benefits, and whenever such benefits are
terminated with respect to a household, the State
agency shall provide to each member of such house-
hold notice of—
‘‘(A) the existence of the earned income
tax credit under section 32 of the Internal Rev-
enue Code of 1986; and
‘‘(B) the fact that such credit may be ap-
plicable to such member.’’.
(c) 
MEDICAID.—Section 
1902(a) 
(42 
U.S.C.
1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(61);
(2) by striking the period at the end of para-
graph (62) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
645
‘‘(63) provide that the State shall provide notice
of the existence and availability of the earned income
tax credit under section 32 of the Internal Revenue
Code of 1986 to each individual applying for medical
assistance under the State plan and to each individ-
ual whose eligibility for medical assistance under the
State plan is terminated.’’.
SEC. 1025. NOTICE OF AVAILABILITY OF EARNED INCOME
TAX CREDIT AND DEPENDENT CARE TAX
CREDIT TO BE INCLUDED ON W–4 FORM.
Section 11114 of the Omnibus Budget Reconciliation
Act of 1990 (26 U.S.C. 21 note), relating to program to
increase public awareness, is amended by adding at the
end the following new sentence: ‘‘Such means shall include
printing a notice of the availability of such credits on the
forms used by employees to determine the proper number
of withholding exemptions under chapter 24 of the Inter-
nal Revenue Code of 1986.’’.
SEC. 1026. ADVANCE PAYMENT OF EARNED INCOME TAX
CREDIT THROUGH STATE DEMONSTRATION
PROGRAMS.
(a) IN GENERAL.—Section 3507 of the Internal Rev-
enue Code of 1986 (relating to the advance payment of
the earned income tax credit) is amended by adding at
the end the following:
646
‘‘(g) STATE DEMONSTRATIONS.—
‘‘(1) IN GENERAL.—In lieu of receiving earned
income advance amounts from an employer under
subsection (a), a participating resident shall receive
advance earned income payments from a responsible
State agency pursuant to a State Advance Payment
Program that is designated pursuant to paragraph
(2).
‘‘(2) DESIGNATIONS.—
‘‘(A) IN
GENERAL.—From among the
States submitting proposals satisfying the re-
quirements of subsection (g)(3), the Secretary
(in consultation with the Secretary of Health
and Human Services) may designate not more
than 4 State Advance Payment Demonstra-
tions. States selected for the demonstrations
may have, in the aggregate, no more than 5
percent of the total number of household par-
ticipating in the program under the Food
Stamp program in the immediately preceding
fiscal year, Administrative costs of a State in
conducting a demonstration under this section
may be included for matching under section
403(a) of the Social Security Act and section
16(a) of the Food Stamp Act of 1977.
647
‘‘(B) 
WHEN
DESIGNATION
MAY
BE
MADE.—Any designation under this paragraph
shall be made no later than December 31,
1995.
‘‘(C) PERIOD FOR WHICH DESIGNATION IS
IN EFFECT.—
‘‘(i) 
IN
GENERAL.—Designations
made under this paragraph shall be effec-
tive for advance earned income payments
made after December 31, 1995, and before
January 1, 1999.
‘‘(ii) SPECIAL RULES.—
‘‘(I) REVOCATION
OF
DESIGNA-
TIONS.—The Secretary may revoke
the designation under this paragraph
if the Secretary determines that the
State is not complying substantially
with the proposal described in para-
graph (3) submitted by the State.
‘‘(II) AUTOMATIC
TERMINATION
OF DESIGNATIONS.—Any failure by a
State to comply with the reporting re-
quirements described in paragraphs
(3)(F) and (3)(G) has the effect of
immediately terminating the designa-