421
‘‘(5) CERTIFICATION THAT THE STATE WILL OP-
ERATE A JOBS PROGRAM.—A certification by the chief
executive officer of the State that, during the fiscal
year, the State will operate a JOBS program in ac-
cordance with part F.
‘‘(6) CERTIFICATION THAT THE STATE WILL PAR-
TICIPATE IN THE INCOME AND ELIGIBILITY VERIFICA-
TION SYSTEM.—A certification by the chief executive
officer of the State that, during the fiscal year, the
State will participate in the income and eligibility
verification system required by section 1137.
‘‘(7) CERTIFICATION
OF
THE
ADMINISTRATION
OF THE PROGRAM.—The chief executive officer of the
State shall certify which State agency or agencies are
responsible for the administration and supervision of
the State program for the fiscal year.
‘‘(8) CERTIFICATION THAT REQUIRED REPORTS
WILL BE SUBMITTED.—A certification by the chief ex-
ecutive officer of the State that the State shall provide
the Secretary with any reports required under this
part and part F.
‘‘(9) ESTIMATE
OF
FISCAL
YEAR
STATE
AND
LOCAL
EXPENDITURES.—An estimate of the total
amount of State and local expenditures under the
State program for the fiscal year.
422
‘‘(b) DETERMINATIONS.—The Secretary shall deter-
mine whether a plan submitted pursuant to subsection (a)
contains the material required by subsection (a).
‘‘(c) DEFINITIONS.—For purposes of this part, the fol-
lowing definitions shall apply:
‘‘(1) MINOR
CHILD.—The term ‘minor child’
means an individual—
‘‘(A) who—
‘‘(i) has not attained 18 years of age;
or
‘‘(ii) has—
‘‘(I) not attained 19 years of age;
and
‘‘(II) is a full-time student in a
secondary school (or in the equivalent
level of vocational or technical train-
ing); and
‘‘(B) who resides with such individual’s cus-
todial parent or other caretaker relative.
‘‘(2) WORK ACTIVITY.—The term ‘work activity’
means an activity described in section 482.
‘‘(3) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
423
‘‘(4) STATE.—The term ‘State’ includes the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, Guam, and American Samoa.
‘‘SEC. 403. PAYMENTS TO STATES.
‘‘(a) ENTITLEMENT.—
‘‘(1) IN GENERAL.—Subject to the provisions of
section 406, the Secretary shall pay to each eligible
State for each of fiscal years 1996, 1997, 1998, 1999,
and 2000 a grant in an amount equal to the State
family assistance grant for the fiscal year.
‘‘(2) APPROPRIATION.—
‘‘(A) STATES.—There are authorized to be
appropriated 
and 
there 
are 
appropriated
$16,779,000,000 for each fiscal year described in
paragraph (1) for the purpose of paying State
family assistance grants to States under such
paragraph.
‘‘(B) INDIAN TRIBES.—There are authorized
to be appropriated and there are appropriated
$7,638,474 for each fiscal year described in
paragraph (1) for the purpose of paying State
family assistance grants to Indian tribes under
such paragraph in accordance with section
482(i).
424
‘‘(b) STATE FAMILY ASSISTANCE GRANT.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), a State family assistance grant for any State for
a fiscal year is an amount equal to the total amount
of the Federal payments to the State under section
403 for fiscal year 1994 (as such section was in effect
before October 1, 1995).
‘‘(2) STATE
APPROPRIATION
OF
GRANT.—Not-
withstanding any other provision of law, any funds
received by a State under this part shall be expended
only in accordance with the laws and procedures ap-
plicable to expenditures of the State’s own revenues,
including appropriation by the State legislature, con-
sistent with the terms and conditions required under
this part.
‘‘(3) SPECIAL RULE FOR INDIAN TRIBES.—For
amount of a State family assistance grant for a fiscal
year for an Indian tribe, see section 482(i).
‘‘(c) USE OF GRANT.—
‘‘(1) IN GENERAL.—Subject to this part, a State
to which a grant is made under this section may use
the grant in any manner that is reasonably cal-
culated to accomplish the purpose of this part.
‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI-
GRANTS UNDER RULES OF FORMER STATE.—A State
425
to which a grant is made under this section may
apply to a family the rules of the program operated
under this part of another State if the family has
moved to the State from the other State and has re-
sided in the State for less than 12 months.
‘‘(3) AUTHORITY TO RESERVE CERTAIN AMOUNTS
FOR
ASSISTANCE.—A State may reserve amounts
paid to the State under this part for any fiscal year
for the purpose of providing, without fiscal year limi-
tation, assistance under the State program operated
under this part.
‘‘(4) AUTHORITY TO PROVIDE CHILD CARE AND
TRANSITIONAL SERVICES.—A State to which a grant
is made under this section may provide, at the State’s
option, child care and transitional services to—
‘‘(A) families at risk of becoming eligible for
assistance under the program if child care is not
provided; and
‘‘(B) families that cease to receive assistance
under the program because of employment.
‘‘(d) TIMING OF PAYMENTS.—The Secretary shall pay
each grant payable to a State under this section in quar-
terly installments.
‘‘(e) LIMITATION ON FEDERAL AUTHORITY.—The Sec-
retary may not regulate the conduct of States under this
426
part or enforce any provision of this part, except to the
extent expressly provided in this part.
‘‘(f) SUPPLEMENTAL ASSISTANCE FOR NEEDY FAMI-
LIES FEDERAL LOAN FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a revolv-
ing loan fund which shall be known as the ‘Supple-
mental Assistance for Needy Families Federal Loan
Fund’.
‘‘(2) DEPOSITS INTO FUND.—
‘‘(A) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, $1,700,000,000 are hereby
appropriated for fiscal year 1996 for payment to
the Supplemental Assistance for Needy Families
Federal Loan Fund.
‘‘(B) LOAN
REPAYMENTS.—The Secretary
shall deposit into the fund any principal or in-
terest payment received with respect to a loan
made under this subsection.
‘‘(3) AVAILABILITY.—Amounts in the fund are
authorized to remain available without fiscal year
limitation for the purpose of making loans and re-
ceiving payments of principal and interest on such
loans, in accordance with this subsection.
427
‘‘(4) USE OF FUND.—
‘‘(A) LOANS
TO
STATES.—The Secretary
shall make loans from the fund to any loan-eligi-
ble State, as defined in subparagraph (D), for a
period to maturity of not more than 3 years.
‘‘(B) RATE OF INTEREST.—The Secretary
shall charge and collect interest on any loan
made under subparagraph (A) at a rate equal to
the Federal short term rate, as defined in section
1274(d) of the Internal Revenue Code of 1986.
‘‘(C) MAXIMUM
LOAN.—The cumulative
amount of any loans made to a State under sub-
paragraph (A) during fiscal years 1996 through
2000 shall not exceed 10 percent of the State
family assistance grant under subsection (b) for
a fiscal year.
‘‘(D) LOAN-ELIGIBLE STATE.—For purposes
of subparagraph (A), a loan-eligible State is a
State which has not had a penalty described in
section 406 imposed against it at any time prior
to the loan being made.
‘‘(5) LIMITATION
ON
USE
OF
LOAN.—A State
shall use a loan received under this subsection only
for—
428
‘‘(A) the purpose of providing assistance
under the State program funded under this part;
or
‘‘(B) welfare anti-fraud activities, systems,
or initiatives, including positive client identity
verification 
and 
computerized 
data 
record
matching and analysis.
‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) REQUIREMENT APPLICABLE TO ALL FAMI-
LIES RECEIVING ASSISTANCE.—
‘‘(A) IN
GENERAL.—A State to which a
grant is made under section 403 for a fiscal year
shall achieve the minimum participation rate
specified in the following table for the fiscal year
with respect to all families receiving assistance
under the State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ....................................................................
1997 ....................................................................
1998 ....................................................................
1999 ....................................................................
2000 ....................................................................
2001 or thereafter ..............................................
50.
‘‘(B) STATE
OPTION
FOR
PARTICIPATION
REQUIREMENT
EXEMPTIONS.—For any fiscal
year before fiscal year 1999, a State may opt to
not require an individual described in section
429
402(a)(19)(C) (as such section was in effect on
September 30, 1995) to engage in work activities
and may exclude such individuals from the de-
termination of the minimum participation rate
specified for such fiscal year in subparagraph
(A).
‘‘(C) CHILD CARE FOR INDIVIDUALS WITH
CHILDREN UNDER 6 YEARS OF AGE.—If a State
requires an individual described in section
402(a)(19)(C)(iii)(II) (as such section was in ef-
fect on September 30, 1995) to engage in work
activities, the State shall provide the individual
with child care.
‘‘(D) PARTICIPATION RATE.—For purposes
of this paragraph:
‘‘(i) AVERAGE
MONTHLY
RATE.—The
participation rate of a State for a fiscal
year is the average of the participation
rates of the State for each month in the fis-
cal year.
‘‘(ii) 
MONTHLY
PARTICIPATION
RATES.—The participation rate of a State
for a month, expressed as a percentage, is—
‘‘(I) the number of families receiv-
ing assistance under the State program
430
funded under this part which include
an individual who is engaged in work
activities for the month; divided by
‘‘(II) the total number of families
receiving assistance under the State
program funded under this part dur-
ing the month.
‘‘(iii) ENGAGED.—A recipient is en-
gaged in work activities for a month in a
fiscal year if the recipient is participating,
per the State’s requirement which must be
at least 20 hours each week in the month,
in work activities described in clause (i),
(ii), (vi), (vii), (viii), (ix), or (x) of section
482(d)(1)(A), (or, in the case of the first 4
weeks for which the recipient is required
under this section to participate in work
activities, an activity described in any such
clause or in clause (iii), (iv), or (v) of such
section).
‘‘(2) REQUIREMENT
APPLICABLE
TO
2-PARENT
FAMILIES.—
‘‘(A) IN
GENERAL.—A State to which a
grant is made under section 403 for a fiscal year
shall achieve the minimum participation rate
431
specified in the following table for the fiscal year
with respect to 2-parent families receiving assist-
ance under the State program funded under this
part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ....................................................................
1997 or 1998 ......................................................
1999 or thereafter ..............................................
90.
‘‘(B) PARTICIPATION RATE.—For purposes
of this paragraph:
‘‘(i) AVERAGE
MONTHLY
RATE.—The
participation rate of a State for a fiscal
year is the average of the participation
rates of the State for each month in the fis-
cal year.
‘‘(ii) 
MONTHLY
PARTICIPATION
RATES.—The participation rate of a State
for a month is—
‘‘(I) the number of 2-parent fami-
lies receiving assistance under the
State program funded under this part
which include at least 1 adult who is
engaged in work activities for the
month; divided by
‘‘(II) the total number of 2-parent
families receiving assistance under the
432
State program funded under this part
during the month.
‘‘(iii) ENGAGED.—An adult is engaged
in work activities for a month in a fiscal
year if the adult is making progress in such
activities, per the State’s requirement which
must be at least 30 hours each week in a
month, in work activities described in
clause (vi), (vii), (viii), (ix), or (x) of sec-
tion 482(d)(1)(A) (or, in the case of the first
4 weeks for which the recipient is required
under this section to participate in work
activities, an activity described in any such
clause or in clause (iii), (iv), or (v) of such
section).
‘‘(b) PENALTIES AGAINST INDIVIDUALS.—
‘‘(1) APPLICABLE TO ALL FAMILIES.—If an adult
in a family receiving assistance under the State pro-
gram funded under this part refuses to engage (within
the meaning of subsection (a)(1)(C)(iii)) in work ac-
tivities required under this section, a State to which
a grant is made under section 403 shall—
‘‘(A) reduce the amount of assistance that
would otherwise be payable to the family; or
‘‘(B) terminate such assistance,
433
subject to such good cause and other exceptions as the
State may establish.
‘‘(2) APPLICABLE TO 2-PARENT FAMILIES.—If an
adult in a 2-parent family refuses to engage (within
the meaning of subsection (a)(2)(B)(iii)) in work ac-
tivities for at least 30 hours per week during any
month, a State to which a grant is made under sec-
tion 402 shall—
‘‘(A) reduce the amount of assistance other-
wise payable to the family; or
‘‘(B) terminate such assistance,
subject to such good cause and other exceptions as the
State may establish.
‘‘(3) LIMITATION ON FEDERAL AUTHORITY.—No
officer or employee of the Federal Government may
regulate the conduct of States under this paragraph
or enforce this paragraph against any State.
‘‘SEC. 405. LIMITATIONS.
‘‘(a) NO ASSISTANCE FOR MORE THAN 5 YEARS.—
‘‘(1) IN GENERAL.—Except as provided under
paragraph (2), a State to which a grant is made
under section 403 may not use any part of the grant
to provide assistance to a family of an individual
who has received assistance under the program oper-
ated under this part for the lesser of—
434
‘‘(A) the period of time established at the
option of the State; or
‘‘(B) 60 months (whether or not consecutive)
after September 30, 1995.
‘‘(2) MINOR CHILD EXCEPTION.—If an individ-
ual received assistance under the State program oper-
ated under this part as a minor child in a needy
family, any period during which such individual’s
family received assistance shall not be counted for
purposes of applying the limitation described in
paragraph (1) to an application for assistance under
such program by such individual as the head of a
household of a needy family with minor children.
‘‘(3) HARDSHIP EXCEPTION.—
‘‘(A) IN GENERAL.—The State may exempt
a family from the application of paragraph (1)
by reason of hardship.
‘‘(B) LIMITATION.—The number of families
with respect to which an exemption made by a
State under subparagraph (A) is in effect for a
fiscal year shall not exceed 15 percent of the av-
erage monthly number of families to which the
State is providing assistance under the program
operated under this part.
435
‘‘(b) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PER-
SON FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN ASSISTANCE IN 2 OR
MORE STATES.—An individual shall not be considered an
eligible individual for the purposes of this part during the
10-year period that begins on the date the individual is con-
victed in Federal or State court of having made a fraudu-
lent 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 this title, title XIX, or the Food Stamp
Act of 1977, or benefits in 2 or more States under the sup-
plemental security income program under title XVI.
‘‘(c) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS
AND PROBATION AND PAROLE VIOLATORS.—
‘‘(1) IN GENERAL.—An individual shall not be
considered an eligible individual for the purposes of
this part if such individual is—
‘‘(A) 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 an 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
436
of the State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(B) violating a condition of probation or
parole imposed under Federal or State law.
‘‘(2) EXCHANGE OF INFORMATION WITH LAW EN-
FORCEMENT AGENCIES.—Notwithstanding any other
provision of law, a State shall furnish any Federal,
State, or local law enforcement officer, upon the re-
quest of the officer, with the current address of any
recipient of assistance under this part, if the officer
furnishes the agency with the name of the recipient
and notifies the agency that—
‘‘(A) such recipient—
‘‘(i) is described in subparagraph (A)
or (B) of paragraph (1); 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 re-
cipient is within such officer’s official duties.
‘‘(d) STATE OPTION TO PROHIBIT ASSISTANCE FOR
CERTAIN ALIENS.—
‘‘(1) IN GENERAL.—A State to which a grant is
made under section 403 may, at its option, prohibit
the use of any part of the grant to provide assistance
437
under the State program funded under this part for
an individual who is not a citizen or national of the
United States.
‘‘(2) DEEMING OF INCOME AND RESOURCES IF
ASSISTANCE IS PROVIDED.—For deeming of income
and resources requirements if assistance is provided
to an individual who is not a citizen or national of
the United States, see section 1145.
‘‘SEC. 406. STATE PENALTIES.
‘‘(a) IN GENERAL.—Subject to the provisions of sub-
section (b), the Secretary shall deduct from the grant other-
wise payable under section 403 the following penalties:
‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS
PART.—If an audit conducted pursuant to chapter 75
of title 31, United States Code, finds that an amount
paid to a State under section 403 for a fiscal year
has been used in violation of this part, then the Sec-
retary shall reduce the amount of the grant otherwise
payable to the State under such section for the imme-
diately succeeding fiscal year quarter by the amount
so used, plus 5 percent of such grant (determined
without regard to this section).
‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—