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‘‘(B) the State agency may reduce the allot-
ment of the household by not more than 25 per-
cent.
‘‘(2) OPTIONAL METHOD.—In carrying out para-
graph (1), a State agency may consider, for the dura-
tion of a reduction referred to under paragraph (1),
the benefits of the household under a welfare or public
assistance program before the reduction as income of
the household after the reduction.
‘‘(3) RULES AND PROCEDURES.—If the allotment
of a household is reduced under this subsection for a
failure to perform an action required under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.), the State agency may use the rules and proce-
dures that apply under part A of title IV of the Act
to reduce the allotment under the food stamp pro-
gram.’’.
SEC. 325. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN IN-
STITUTIONS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN IN-
STITUTIONS.—
‘‘(1) IN GENERAL.—In the case of an individual
who resides in a homeless shelter, or in an institution
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or center for the purpose of a drug or alcoholic treat-
ment program, described in the last sentence of sec-
tion 3(i), a State agency may provide an allotment
for the individual to—
‘‘(A) the institution as an authorized rep-
resentative for the individual for a period that is
less than 1 month; and
‘‘(B) the individual, if the individual leaves
the institution.
‘‘(2) DIRECT PAYMENT.—A State agency may re-
quire an individual referred to in paragraph (1) to
designate the shelter, institution, or center in which
the individual resides as the authorized representative
of the individual for the purpose of receiving an allot-
ment.’’.
SEC. 326. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and inserting
the following:
‘‘(2)(A) that the State agency shall establish pro-
cedures governing the operation of food stamp offices
that the State agency determines best serve households
in the State, including households with special needs,
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such as households with elderly or disabled members,
households in rural areas with low-income members,
homeless individuals, households residing on reserva-
tions, and households in which a substantial number
of members speak a language other than English.
‘‘(B) In carrying out subparagraph (A), a State
agency—
‘‘(i) shall provide timely, accurate, and fair
service to applicants for, and participants in,
the food stamp program;
‘‘(ii) shall permit an applicant household to
apply to participate in the program on the same
day that the household first contacts a food
stamp office in person during office hours;
‘‘(iii) shall consider an application filed on
the date the applicant submits an application
that contains the name, address, and signature
of the applicant; and
‘‘(iv) may establish operating procedures
that vary for local food stamp offices to reflect
regional and local differences within the State;’’;
(B) in paragraph (3) (as amended by sec-
tion 309(b))—
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(i) by striking ‘‘shall—’’ and all that
follows through ‘‘provide each’’ and insert-
ing ‘‘shall provide each’’; and
(ii) by striking ‘‘(B) assist’’ and all
that follows through ‘‘representative of the
State agency;’’;
(C) by striking paragraph (14) and insert-
ing the following:
‘‘(14) the standards and procedures used by the
State agency under section 6(d)(1)(D) to determine
whether an individual is eligible to participate under
section 6(d)(1)(A);’’; and
(D) by striking paragraph (25) and insert-
ing the following:
‘‘(25) a description of the work supplementation
or support program, if any, carried out by the State
agency under section 16(b);’’; and
(2) in subsection (i)—
(A) by striking ‘‘(i) Notwithstanding’’ and
all that follows through ‘‘(2)’’ and inserting the
following:
‘‘(i) APPLICATION AND DENIAL PROCEDURES.—
‘‘(1) APPLICATION PROCEDURES.—Notwithstand-
ing any other provision of law,’’; and
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(B) by striking ‘‘; (3) households’’ and all
that follows through ‘‘title IV of the Social Secu-
rity Act. No’’ and inserting a period and the fol-
lowing:
‘‘(2) DENIAL AND TERMINATION.—Other than in
a case of disqualification as a penalty for failure to
comply with a public assistance program rule or reg-
ulation, no’’.
SEC. 327. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(6)) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) through (E).
SEC. 328. EXCHANGE OF LAW ENFORCEMENT INFORMA-
TION.
Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)) (as amended by section 315(b)) is further amend-
ed—
(1) in paragraph (8)—
(A) by striking ‘‘that (A) such’’ and insert-
ing the following: ‘‘that—
‘‘(A) the’’;
(B) by striking ‘‘law, (B) notwithstanding’’
and inserting the following: ‘‘law;
‘‘(B) notwithstanding’’;
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(C) by striking ‘‘Act, and (C) such’’ and in-
serting the following: ‘‘Act;
‘‘(C) the’’; and
(D) by adding at the end the following:
‘‘(D) notwithstanding any other provision
of law, the address, social security number, and,
when available, photograph of any member of a
household shall be made available, on request, to
any Federal, State, or local law enforcement offi-
cer if the officer furnishes the State agency with
the name of the member and notifies the agency
that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, for a crime (or attempt to
commit a crime) that, under the law of
the place the member is fleeing, is a
felony (or, in the case of New Jersey,
a high misdemeanor), or is violating a
condition of probation or parole im-
posed under Federal or State law; or
‘‘(II) has information that is nec-
essary for the officer to conduct the of-
ficial duties of the officer;
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‘‘(ii) the location or apprehension of
the member is an official duty of the officer;
and
‘‘(iii) the request is being made in the
proper exercise of the official duties of the
officer; and
‘‘(E) the safeguards shall not prevent com-
pliance with paragraph (27);’’; and
(3) by adding at the end the following:
‘‘(27) that the State agency shall furnish the Im-
migration and Naturalization Service with the name
of, address of, and identifying information on any in-
dividual the State agency knows is unlawfully in the
United States; and’’.
SEC. 329. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting
‘‘7 business days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as sub-
paragraph (B); and
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(4) in subparagraph (B) (as redesignated by
paragraph (3)), by striking ‘‘, (B), or (C)’’.
SEC. 330. FAIR HEARINGS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended by adding at the end the following:
‘‘(p) WITHDRAWING FAIR HEARING REQUESTS.—A
household may withdraw, orally or in writing, a request
by the household for a fair hearing under subsection (e)(10).
If the withdrawal request is an oral request, the State agen-
cy shall provide a written notice to the household confirm-
ing the request and providing the household with an oppor-
tunity to request a hearing.’’.
SEC. 331. INCOME AND ELIGIBILITY VERIFICATION SYSTEM.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) (as amended by section 330) is further amended by
adding at the end the following:
‘‘(q) STATE VERIFICATION OPTION.—Notwithstanding
any other provision of law, a State agency shall not be re-
quired to use an income and eligibility verification system
established under section 1137 of the Social Security Act
(42 U.S.C. 1320b–7).’’.
SEC. 332. COLLECTION OF OVERISSUANCES.
(a) IN GENERAL.—Section 13 of the Food Stamp Act
of 1977 (7 U.S.C. 2022) is amended—
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(1) by striking subsection (b) and inserting the
following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this subsection, a State agency shall collect any
overissuance of coupons issued to a household by—
‘‘(A) reducing the allotment of the house-
hold;
‘‘(B) withholding unemployment compensa-
tion from a member of the household under sub-
section (c);
‘‘(C) recovering from Federal pay or a Fed-
eral income tax refund under subsection (d); or
‘‘(D) any other means.
‘‘(2) COST
EFFECTIVENESS.—Paragraph (1)
shall not apply if the State agency demonstrates to
the satisfaction of the Secretary that all of the means
referred to in paragraph (1) are not cost effective.
‘‘(3) HARDSHIPS.—A State agency may not use
an allotment reduction under paragraph (1)(A) as a
means of collecting an overissuance from a household
if the allotment reduction would cause a hardship on
the household, as determined by the State agency.
‘‘(4) MAXIMUM REDUCTION ABSENT FRAUD.—If
a household received an overissuance of coupons with-
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out any member of the household being found ineli-
gible to participate in the program under section
6(b)(1) and a State agency elects to reduce the allot-
ment of the household under paragraph (1)(A), the
State agency shall reduce the monthly allotment of the
household under paragraph (1)(A) by the greater of—
‘‘(A) 10 percent of the monthly allotment of
the household; or
‘‘(B) $10.
‘‘(5) PROCEDURES.—A State agency shall collect
an overissuance of coupons issued to a household
under paragraph (1) in accordance with requirements
established by the State agency for providing notice,
electing a means of payment, and establishing a time
schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under sub-
section (b) and except for claims arising from an
error of the State agency,’’ and inserting ‘‘, as
determined under subsection (b)(1),’’; and
(B) by inserting before the period at the end
the following: ‘‘or a Federal income tax refund as
authorized by section 3720A of title 31, United
States Code’’.
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(b) CONFORMING AMENDMENT.—Section 11(e)(8) of
the Act (7 U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘and excluding claims’’ and all
that follows through ‘‘such section’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘or a Federal income tax refund as au-
thorized by section 3720A of title 31, United States
Code’’.
SEC. 333. TERMINATION OF FEDERAL MATCH FOR OP-
TIONAL INFORMATION ACTIVITIES.
(a) IN GENERAL.—Section 16(a) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(a)) is amended—
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) through (8)
as paragraphs (4) through (7), respectively.
(b) CONFORMING AMENDMENT.—Section 16(g) of the
Act (7 U.S.C. 2025(g)) is amended by striking ‘‘an amount
equal to’’ and all that follows through ‘‘1991, of’’ and insert-
ing ‘‘the amount provided under subsection (a)(5) for’’.
SEC. 334. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL.—Section 16 of the Food Stamp Act
of 1977 (7 U.S.C. 2025) is amended by striking subsection
(b).
(b) CONFORMING AMENDMENTS.—
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(1) The first sentence of section 11(g) of the Act
(7 U.S.C. 2020(g)) is amended by striking ‘‘the Sec-
retary’s standards for the efficient and effective ad-
ministration of the program established under section
16(b)(1) or’’.
(2) Section 16(c)(1)(B) of the Act (7 U.S.C.
2025(c)(1)(B)) is amended by striking ‘‘pursuant to
subsection (b)’’.
SEC. 335. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025) (as amended by section 334(a)) is further amended
by inserting after subsection (a) the following:
‘‘(b) WORK SUPPLEMENTATION
OR SUPPORT PRO-
GRAM.—
‘‘(1) DEFINITION.—In this subsection, the term
‘work supplementation or support program’ means a
program in which, as determined by the Secretary,
public assistance (including any benefits provided
under a program established by the State and the food
stamp program) is provided to an employer to be
used for hiring and employing a new employee who
is a public assistance recipient.
‘‘(2) PROGRAM.—A State agency may elect to
use amounts equal to the allotment that would other-
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wise be allotted to a household under the food stamp
program, but for the operation of this subsection, for
the purpose of subsidizing or supporting jobs under a
work supplementation or support program established
by the State.
‘‘(3) PROCEDURE.—If a State agency makes an
election under paragraph (2) and identifies each
household that participates in the food stamp pro-
gram that contains an individual who is participat-
ing in the work supplementation or support pro-
gram—
‘‘(A) the Secretary shall pay to the State
agency an amount equal to the value of the allot-
ment that the household would be eligible to re-
ceive but for the operation of this subsection;
‘‘(B) the State agency shall expend the
amount paid under subparagraph (A) in accord-
ance with the work supplementation or support
program in lieu of providing the allotment that
the household would receive but for the operation
of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount
received under this subsection shall be ex-
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cluded from household income and resources;
and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered to
be the value of an allotment provided to the
household; and
‘‘(D) the household shall not receive an al-
lotment from the State agency for the period
during which the member continues to partici-
pate in the work supplementation or support
program.
‘‘(4) OTHER
WORK
REQUIREMENTS.—No indi-
vidual shall be excused, by reason of the fact that a
State has a work supplementation or support pro-
gram, from any work requirement under section 6(d),
except during the periods in which the individual is
employed under the work supplementation or support
program.
‘‘(5) MAXIMUM LENGTH OF PARTICIPATION.—A
work supplementation or support program may not
allow the participation of any individual for longer
than 1 year, unless the Secretary approves a longer
period.’’.
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SEC. 336. WAIVER AUTHORITY.
Section 17(b)(1)(A) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)(A)) is amended—
(1) by striking ‘‘benefits to eligible households,
including’’ and inserting the following: ‘‘benefits to el-
igible households. The Secretary may waive the re-
quirements of this Act to the extent necessary to con-
duct a pilot or experimental project, including a
project designed to test innovative welfare reform,
promote work, and allow conformity with other Fed-
eral, State, and local government assistance pro-
grams, except that a project involving the payment of
benefits in the form of cash shall maintain the aver-
age value of allotments for affected households as a
group. Pilot or experimental projects may include’’;
and
(2) by striking ‘‘The Secretary may waive’’ and
all that follows through ‘‘sections 5 and 8 of this
Act.’’.
SEC. 337. AUTHORIZATION OF PILOT PROJECTS.
The last sentence of section 17(b)(1)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
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SEC. 338. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)) is amended by adding at the end the
following:
‘‘(C) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60
days after the date of receiving a request for
a waiver under subparagraph (A), the Sec-
retary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request
and explains any modification needed
for approval of the waiver request;
‘‘(III) denies the waiver request
and explains the grounds for the de-
nial; or
‘‘(IV) requests clarification of the
waiver request.
‘‘(ii) FAILURE
TO
RESPOND.—If the
Secretary does not provide a response under
clause (i) not later than 60 days after re-
ceiving a request for a waiver, the waiver
shall be considered approved.
‘‘(iii) NOTICE OF DENIAL.—On denial
of a waiver request under clause (i)(III), the
Secretary shall provide a copy of the waiver
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request and the grounds for the denial to the
Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Sen-
ate.’’.
SEC. 339. PRIVATE SECTOR EMPLOYMENT INITIATIVES.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended by adding at the end the following:
‘‘(m) PRIVATE SECTOR EMPLOYMENT INITIATIVES.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN
GENERAL.—Subject to the other
provisions of this subsection, a State may elect
to carry out a private sector employment initia-
tive program under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eli-
gible to carry out a private sector employment
initiative under this subsection only if not less
than 50 percent of the households that received
food stamp benefits during the summer of 1993
also received benefits under a State program
funded under part A of title IV of the Social Se-
curity Act (42 U.S.C. 601 et seq.) during the
summer of 1993.
‘‘(2) PROCEDURE.—A State that has elected to
carry out a private sector employment initiative
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under paragraph (1) may use amounts equal to the
food stamp allotments that would otherwise be allotted
to a household under the food stamp program, but for
the operation of this subsection, to provide cash bene-
fits in lieu of the food stamp allotments to the house-
hold if the household is eligible under paragraph (3).
‘‘(3) ELIGIBILITY.—A household shall be eligible
to receive cash benefits under paragraph (2) if an
adult member of the household—
‘‘(A) has worked in unsubsidized employ-
ment in the private sector for not less than the
preceding 90 days;
‘‘(B) has earned not less than $350 per
month from the employment referred to in sub-
paragraph (A) for not less than the preceding 90
days;
‘‘(C)(i) is eligible to receive benefits under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.); or
‘‘(ii) was eligible to receive benefits under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.)
at the time the member first received cash bene-
fits under this subsection and is no longer eligi-
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ble for the State program because of earned in-
come;
‘‘(D) is continuing to earn not less than
$350 per month from the employment referred to
in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu of
food stamp benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a pro-
gram under this subsection for 2 years shall provide
to the Secretary a written evaluation of the impact of
cash assistance under this subsection. The State agen-
cy shall determine the content of the evaluation.’’.
SEC. 340. REAUTHORIZATION OF APPROPRIATIONS.
The first sentence of section 18(a)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by
striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 341. REAUTHORIZATION OF PUERTO RICO NUTRITION
ASSISTANCE PROGRAM.
The first sentence of section 19(a)(1)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended
by striking ‘‘$974,000,000’’ and all that follows through
‘‘fiscal 
year 
1995’’ 
and 
inserting 
the 
following:
‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,
$1,182,000,000 for fiscal year 1997, $1,223,000,000 for fis-
cal year 1998, $1,266,000,000 for fiscal year 1999,
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$1,310,000,000 for fiscal year 2000, $1,343,000,000 for fis-
cal year 2001, and $1,376,000,000 for fiscal year 2002’’
SEC. 342. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) is amended by adding at the end the
following:
‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.
‘‘(a) ELECTION.—Subject to subsection (c), a State
agency may elect to carry out a Simplified Food Stamp
Program (referred to in this section as a ‘Program’) under
this section.
‘‘(b) OPERATION OF PROGRAM.—
‘‘(1) IN GENERAL.—If a State agency elects to
carry out a Program, within the State or a political
subdivision of the State—
‘‘(A) a household in which all members re-
ceive assistance under a State program funded
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) shall automatically
be eligible to participate in the Program; and
‘‘(B) subject to subsection (e), benefits under
the Program shall be determined under rules and
procedures established by the State under—
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‘‘(i) a State program funded under
part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
‘‘(ii) the food stamp program (other
than section 25); or
‘‘(iii) a combination of a State pro-
gram funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.)
and the food stamp program.
‘‘(2) SHELTER
STANDARD.—The State agency
may elect to apply 1 shelter standard to a household
that receives a housing subsidy and another shelter
standard to a household that does not receive the sub-
sidy.
‘‘(c) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not op-
erate a Program unless the Secretary approves a
State plan for the operation of the Program under
paragraph (2).
‘‘(2) APPROVAL OF PLAN.—
‘‘(A) IN GENERAL.—The Secretary shall ap-
prove any State plan to carry out a Program if
the Secretary determines that the plan—
‘‘(i) complies with this section; and
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‘‘(ii) would not increase Federal costs
incurred under this Act.
‘‘(B) DEFINITION OF FEDERAL COSTS.—In
this section, the term ‘Federal costs’ does not in-
clude any Federal costs incurred under section
17.
‘‘(d) INCREASED FEDERAL COSTS.—
‘‘(1) DETERMINATION.—
‘‘(A) IN GENERAL.—The Secretary shall de-
termine whether a Program being carried out by
a State agency is increasing Federal costs under
this Act.
‘‘(B) NO
EXCLUDED
HOUSEHOLDS.—In
making a determination under subparagraph
(A), the Secretary shall not require the State
agency to collect or report any information on
households not included in the Program.
‘‘(C) 
ALTERNATIVE
ACCOUNTING
PERI-
ODS.—The Secretary may approve the request of
a State agency to apply alternative accounting
periods to determine if Federal costs do not ex-
ceed the Federal costs had the State agency not
elected to carry out the Program.
‘‘(2) NOTIFICATION.—If the Secretary determines
that the Program has increased Federal costs under
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this Act for any fiscal year, the Secretary shall notify
the State agency not later than January 1 of the im-
mediately succeeding fiscal year.
‘‘(3) RETURN OF FUNDS.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that the Program has increased Federal
costs under this Act for a 2-year period, includ-
ing a fiscal year for which notice was given
under paragraph (2) and an immediately suc-
ceeding fiscal year, the State agency shall pay to
the Treasury of the United States the amount of
the increased costs.
‘‘(B) ENFORCEMENT.—If the State agency
does not pay an amount due under subpara-
graph (A) on a date that is not later than 90
days after the date of the determination, the Sec-
retary shall reduce amounts otherwise due to the
State agency for administrative costs under sec-
tion 16(a).
‘‘(e) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—Except as provided by para-
graph (2), a State may apply—
‘‘(A) the rules and procedures established by
the State under—
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‘‘(i) the State program funded under
part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.); or
‘‘(ii) the food stamp program; or
‘‘(B) the rules and procedures of 1 of the
programs to certain matters and the rules and
procedures of the other program to all remaining
matters.
‘‘(2) STANDARDIZED
DEDUCTIONS.—The State
may standardize the deductions provided under sec-
tion 5(e). In developing the standardized deduction,
the State shall give consideration to the work ex-
penses, dependent care costs, and shelter costs of par-
ticipating households.
‘‘(3) REQUIREMENTS.—In operating a Program,
the State shall comply with—
‘‘(A) subsections (a) through (g) of section 7;
‘‘(B) section 8(a), except that the income of
a household may be determined under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
‘‘(C) subsections (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of sec-
tion 11;
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‘‘(E) paragraph (3) of section 11(e), to the
extent that the paragraph requires that an eligi-
ble household be certified and receive an allot-
ment for the period of application not later than
30 days after filing an application;
‘‘(F) paragraphs (8), (9), (12), (17), (19),
(21), and (27) of section 11(e);
‘‘(G) section 11(e)(10) or a comparable re-
quirement established by the State under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.); and
‘‘(H) section 16.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)) (as amended by sections 315(b) and
328) is further amended by adding at the end the following:
‘‘(28) the plans of the State agency for operating,
at the election of the State, a program under section
24, including—
‘‘(A) the rules and procedures to be followed
by the State to determine food stamp benefits;
‘‘(B) how the State will address the needs of
households that experience high shelter costs in
relation to the incomes of the households; and
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‘‘(C) a description of the method by which
the State will carry out a quality control system
under section 16(c).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 8 of the Act (7 U.S.C. 2017) (as
amended by section 325) is further amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (e).
(2) Section 17 of the Act (7 U.S.C. 2026) (as
amended by section 339) is further amended—
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through
(m) as subsections (i) through (l), respectively.
SEC. 343. OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) (as amended by section 342) is further
amended by adding at the end the following:
‘‘SEC. 25. OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
a program to make grants to States in accordance with this
section to provide—
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‘‘(1) food assistance to needy individuals and
families residing in the State;
‘‘(2) at the option of a State, wage subsidies and
payments in return for work for needy individuals
under the program;
‘‘(3) funds to operate an employment and train-
ing program under section (g)(2) for needy individ-
uals under the program; and
‘‘(4) funds for administrative costs incurred in
providing the assistance.
‘‘(b) ELECTION.—
‘‘(1) IN GENERAL.—A State may elect to partici-
pate in the program established under subsection (a).
‘‘(2) ELECTION REVOCABLE.—A State that elects
to participate in the program established under sub-
section (a) may subsequently reverse its election only
once thereafter. Following such reversal, the State
shall only be eligible to participate in the food stamp
program in accordance with the other sections of this
Act and shall not receive a block grant under this sec-
tion.
‘‘(3) PROGRAM EXCLUSIVE.—A State that is par-
ticipating in the program established under sub-
section (a) shall not be subject to, or receive any bene-
fit under, this Act except as provided in this section.
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‘‘(4) SUNSET OF ELECTION UPON INCREASE IN
NUMBER OF HUNGRY CHILDREN.—
‘‘(A) FINDINGS.—The Congress finds that—
‘‘(i) on March 29, 1995 the Senate
adopted a resolution stating that Congress
should not enact or adopt any legislation
that will increase the number of children
who are hungry;
‘‘(ii) it is not the intent of this bill to
cause more children to be hungry;
‘‘(iii) the Food Stamp Program serves
to prevent child hunger; and
‘‘(iv) a State’s election to participate
in the optional State food assistance block
grant program should not serve to increase
the number of hungry children in that
State.
‘‘(B) SUNSET.—If the Secretary of Health
and Human Services makes two successive find-
ings that the hunger rate among children in a
State is significantly higher in a State that has
elected to participate in a program established
under subsection (a) than it would have been had
there been no such election, 180 days after the
second such finding such election shall be perma-
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nently and irreversibly revoked and the provi-
sions of paragraphs (1) and (2) shall not be ap-
plicable to that State.
‘‘(C) PROCEDURE
FOR
FINDING
BY
SEC-
RETARY.—In making the finding described in
subparagraph (B), the Secretary shall adhere to
the following procedure:
‘‘(i) Every three years, the Secretary
shall develop data and report to Congress
with respect to each State that has elected
to participate in a program established
under subsection (a) whether the child hun-
ger rate in such State is significantly high-
er than it would have been had the State
not made such election.
‘‘(ii) The Secretary shall provide the
report required under clause (i) to all
States that have elected to participate in a
program established under subsection (a),
and the Secretary shall provide each State
for which the Secretary determined that the
child hunger rate is significantly higher
than it would have been had the State not
made such election with an opportunity to
respond to such determination.
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‘‘(iii) If the response by a State under
clause (ii) does not result in the Secretary
reversing the determination that the child
hunger rate in that State is significantly
higher than it would have been had the
State not made such election, then the Sec-
retary shall publish a finding as described
in subparagraph (B).
‘‘(c) LEAD AGENCY.—
‘‘(1) DESIGNATION.—A State desiring to receive
a grant under this section shall designate, in an ap-
plication submitted to the Secretary under subsection
(d)(1), an appropriate State agency that complies
with paragraph (2) to act as the lead agency for the
State.
‘‘(2) DUTIES.—
‘‘(A) 
IN
GENERAL.—The 
lead 
agency
shall—
‘‘(i) 
administer, 
either 
directly,
through other State agencies, or through
local agencies, the assistance received under
this section by the State;
‘‘(ii) develop the State plan to be sub-
mitted to the Secretary under subsection
(d)(1);
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‘‘(iii) in conjunction with the develop-
ment of the State plan, hold at least 1 hear-
ing in the State to provide to the public an
opportunity to comment on the program
under the State plan; and
‘‘(iv) coordinate the provision of food
assistance under this section with other
Federal, State, and local programs.
‘‘(B) DEVELOPMENT OF PLAN.—In the de-
velopment of the State plan described in sub-
paragraph (A)(ii), the lead agency shall consult
with local governments and private sector orga-
nizations regarding the plan and design of the
State plan so that services are provided in a
manner appropriate to local populations.
‘‘(d) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive as-
sistance under this section, a State shall prepare and
submit to the Secretary an application at such time,
in such manner, and containing such information as
the Secretary shall by regulation require, including—
‘‘(A) an assurance that the State will com-
ply with the requirements of this section;
‘‘(B) a State plan that meets the require-
ments of paragraph (3); and
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‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan
under paragraph (3).
‘‘(2) ANNUAL PLAN.—The State plan contained
in the application under paragraph (1) shall be sub-
mitted for approval annually.
‘‘(3) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall
identify the lead agency.
‘‘(B) USE OF BLOCK GRANT FUNDS.—The
State plan shall provide that the State shall use
the amounts provided to the State for each fiscal
year under this section—
‘‘(i) to provide food assistance to needy
individuals and families residing in the
State, other than residents of institutions
who are ineligible for food stamps under
section 3(i);
‘‘(ii) at the option of a State, to pro-
vide wage subsidies and workfare under sec-
tion 20(a) (except that any reference in sec-
tion 20(a) to an allotment shall be consid-
ered a reference to the food assistance or
benefits in lieu of food assistance received
by an individual or family during a month
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under this section) for needy individuals
and families participating in the program;
‘‘(iii) to administer an employment
and training program under section (g)(2)
for needy individuals under the program
and to provide reimbursements to needy in-
dividuals and families as would be allowed
under section 16(h)(3); and
‘‘(iv) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) GROUPS
SERVED.—The State plan
shall describe how the program will serve specific
groups of individuals and families and how the
treatment will differ from treatment under the
food stamp program under the other sections of
this Act of the individuals and families, includ-
ing—
‘‘(i) elderly individuals and families;
‘‘(ii) 
migrants 
or 
seasonal 
farm-
workers;
‘‘(iii) homeless individuals and fami-
lies;
‘‘(iv) individuals and families who live
under the supervision of institutions (other
than incarcerated individuals);
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‘‘(v) individuals and families with
earnings; and
‘‘(vi) members of Indian tribes or trib-
al organizations.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—The
State plan shall provide that benefits under this
section shall be available throughout the entire
State.
‘‘(E) NOTICE
AND
HEARINGS.—The State
plan shall provide that an individual or family
who applies for, or receives, assistance under this
section shall be provided with notice of, and an
opportunity for a hearing on, any action under
this section that adversely affects the individual
or family.
‘‘(F) OTHER ASSISTANCE.—
‘‘(i) COORDINATION.—The State plan
may coordinate assistance received under
this section with assistance provided under
the State program funded under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(ii) PENALTIES.—If an individual or
family is penalized for violating part A of
title IV of the Act, the State plan may re-
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duce the amount of assistance provided
under this section or otherwise penalize the
individual or family.
‘‘(G) ASSESSMENT OF NEEDS.—The State
plan shall assess the food and nutrition needs of
needy persons residing in the State.
‘‘(H) ELIGIBILITY LIMITATIONS.—The State
plan shall describe the income and resource eligi-
bility limitations that are established for the re-
ceipt of assistance under this section.
‘‘(I) RECEIVING BENEFITS IN MORE THAN 1
JURISDICTION.—The State plan shall establish a
system to verify and otherwise ensure that no in-
dividual or family shall receive benefits under
this section in more than 1 jurisdiction within
the State.
‘‘(J) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use and
disclosure of information about any individual
or family receiving assistance under this section.
‘‘(K) OTHER
INFORMATION.—The State
plan shall contain such other information as
may be required by the Secretary.
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‘‘(4) APPROVAL OF APPLICATION AND PLAN.—
The Secretary shall approve an application and State
plan that satisfies the requirements of this section.
‘‘(e) LIMITATIONS ON STATE ALLOTMENTS.—
‘‘(1) NO INDIVIDUAL OR FAMILY ENTITLEMENT
TO ASSISTANCE.—Nothing in this section—
‘‘(A) entitles any individual or family to
assistance under this section; or
‘‘(B) limits the right of a State to impose
additional limitations or conditions on assist-
ance under this section.
‘‘(2) CONSTRUCTION OF FACILITIES.—No funds
made available under this section shall be expended
for the purchase or improvement of land, or for the
purchase, construction, or permanent improvement of
any building or facility.
‘‘(f) BENEFITS FOR ALIENS.—
‘‘(1) ELIGIBILITY.—No individual shall be eligi-
ble to receive benefits under a State plan approved
under subsection (d)(4) if the individual is not eligi-
ble to participate in the food stamp program under
section 6(f).
‘‘(2) INCOME.—The State plan shall provide that
the income of an alien shall be determined in accord-
ance with section 5(i).
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‘‘(g) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK REQUIREMENTS.—No individual or
member of a family shall be eligible to receive benefits
under a State plan funded under this section if the
individual is not eligible to participate in the food
stamp program under subsection (d) or (n) of section
6.
‘‘(2) WORK PROGRAMS.—Each State shall imple-
ment an employment and training program under
section 6(d)(4) for needy individuals under the pro-
gram.
‘‘(h) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor State
compliance with this section and the State plan ap-
proved under subsection (d)(4).
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If the Secretary, after
reasonable notice to a State and opportunity for
a hearing, finds that—
‘‘(i) there has been a failure by the
State to comply substantially with any pro-
vision or requirement set forth in the State
plan approved under subsection (d)(4); or
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‘‘(ii) in the operation of any program
or activity for which assistance is provided
under this section, there is a failure by the
State to comply substantially with any pro-
vision of this section;
the Secretary shall notify the State of the finding
and that no further payments will be made to
the State under this section (or, in the case of
noncompliance in the operation of a program or
activity, that no further payments to the State
will be made with respect to the program or ac-
tivity) until the Secretary is satisfied that there
is no longer any failure to comply or that the
noncompliance will be promptly corrected.
‘‘(B) OTHER SANCTIONS.—In the case of a
finding of noncompliance made pursuant to sub-
paragraph (A), the Secretary may, in addition
to, or in lieu of, imposing the sanctions described
in subparagraph (A), impose other appropriate
sanctions, including recoupment of money im-
properly expended for purposes prohibited or not
authorized by this section and disqualification
from the receipt of financial assistance under
this section.
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‘‘(C) NOTICE.—The notice required under
subparagraph (A) shall include a specific identi-
fication of any additional sanction being im-
posed under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
‘‘(A) receiving, processing, and determining
the validity of complaints concerning any failure
of a State to comply with the State plan or any
requirement of this section; and
‘‘(B) imposing sanctions under this section.
‘‘(4) INCOME
AND
ELIGIBILITY
VERIFICATION
SYSTEM.—The Secretary may withhold not more than
5 percent of the amount allotted to a State under sub-
section (l)(2) if the State does not use an income and
eligibility verification system established under sec-
tion 1137 of the Social Security Act (42 U.S.C.
1320b–7).
‘‘(i) PAYMENTS.—
‘‘(1) IN GENERAL.—For each fiscal year, the Sec-
retary shall pay to a State that has an application
approved by the Secretary under subsection (d)(4) an
amount that is equal to the allotment of the State
under subsection (l)(2) for the fiscal year.
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‘‘(2) METHOD OF PAYMENT.—The Secretary shall
make payments to a State for a fiscal year under this
section by issuing 1 or more letters of credit for the
fiscal year, with necessary adjustments on account of
overpayments or underpayments, as determined by
the Secretary.
‘‘(3) SPENDING OF FUNDS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), payments to a State from an
allotment under subsection (l)(2) for a fiscal
year may be expended by the State only in the
fiscal year.
‘‘(B) CARRYOVER.—The State may reserve
up to 10 percent of an allotment under sub-
section (l)(2) for a fiscal year to provide assist-
ance under this section in subsequent fiscal
years, except that the reserved funds may not ex-
ceed 30 percent of the total allotment received
under this section for a fiscal year.
‘‘(4) FOOD
ASSISTANCE
AND
ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, of the Federal
funds expended by a State under this section—
‘‘(A) not less than 80 percent shall be for
food assistance; and
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‘‘(B) not more than 6 percent shall be for
administrative expenses.
‘‘(5) PROVISION OF FOOD ASSISTANCE.—A State
may provide food assistance under this section in any
manner determined appropriate by the State to pro-
vide food assistance to needy individuals and families
in the State, such as electronic benefits transfer lim-
ited to food purchases, coupons limited to food pur-
chases, or direct provision of commodities.
‘‘(6) DEFINITION OF FOOD ASSISTANCE.—In this
section, the term ‘food assistance’ means assistance
that may be used only to obtain food, as defined in
section 3(g).
‘‘(j) AUDITS.—
‘‘(1) REQUIREMENT.—After the close of each fis-
cal year, a State shall arrange for an audit of the ex-
penditures of the State during the program period
from amounts received under this section.
‘‘(2) INDEPENDENT AUDITOR.—An audit under
this section shall be conducted by an entity that is
independent of any agency administering activities
that receive assistance under this section and be in
accordance with generally accepted auditing prin-
ciples.
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‘‘(3) PAYMENT ACCURACY.—Each annual audit
under this section shall include an audit of payment
accuracy under this section that shall be based on a
statistically valid sample of the caseload in the State.
‘‘(4) SUBMISSION.—Not later than 30 days after
the completion of an audit under this section, the
State shall submit a copy of the audit to the legisla-
ture of the State and to the Secretary.
‘‘(5) REPAYMENT
OF
AMOUNTS.—Each State
shall repay to the United States any amounts deter-
mined through an audit under this section to have
not been expended in accordance with this section or
to have not been expended in accordance with the
State plan, or the Secretary may offset the amounts
against any other amount paid to the State under
this section.
‘‘(k) NONDISCRIMINATION.—
‘‘(1) IN GENERAL.—The Secretary shall not pro-
vide financial assistance for any program, project, or
activity under this section if any person with respon-
sibilities for the operation of the program, project, or
activity discriminates with respect to the program,
project, or activity because of race, religion, color, na-
tional origin, sex, or disability.
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‘‘(2) ENFORCEMENT.—The powers, remedies, and
procedures set forth in title VI of the Civil Rights Act
of 1964 (42 U.S.C. 2000d et seq.) may be used by the
Secretary to enforce paragraph (1).
‘‘(l) ALLOTMENTS.—
‘‘(1) DEFINITION OF STATE.—In this section, the
term ‘State’ means each of the 50 States, the District
of Columbia, Guam, and the Virgin Islands of the
United States.
‘‘(2) STATE ALLOTMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 of this Act for each
fiscal year, the Secretary shall allot to each State
participating in the program established under
this section an amount that is equal to the sum
of—
‘‘(i) the greater of, as determined by
the Secretary—
‘‘(I) the total dollar value of all
benefits issued under the food stamp
program established under this Act by
the State during fiscal year 1994; or
‘‘(II) the average per fiscal year of
the total dollar value of all benefits is-
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sued under the food stamp program by
the State during each of fiscal years
1992 through 1994; and
‘‘(ii) the greater of, as determined by
the Secretary—
‘‘(I) the total amount received by
the State for administrative costs and
the employment and training program
under subsections (a) and (h), respec-
tively, of section 16 of this Act for fis-
cal year 1994; or
‘‘(II) the average per fiscal year of
the total amount received by the State
for administrative costs and the em-
ployment and training program under
subsections (a) and (h), respectively, of
section 16 of this Act for each of fiscal
years 1992 through 1994.
‘‘(B) INSUFFICIENT
FUNDS.—If the Sec-
retary finds that the total amount of allotments
to which States would otherwise be entitled for a
fiscal year under subparagraph (A) will exceed
the amount of funds that will be made available
to provide the allotments for the fiscal year, the
Secretary shall reduce the allotments made to
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States under this subsection, on a pro rata basis,
to the extent necessary to allot under this sub-
section a total amount that is equal to the funds
that will be made available.’’.
(b) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—Section 17 of the Food Stamp Act
of 1977 (7 U.S.C. 2026) (as amended by section 339 and
342(c)(2)) is further amended by adding at the end the fol-
lowing:
‘‘(m) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—The Secretary may conduct research
on the effects and costs of a State program carried out
under section 25.’’.
SEC. 344. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, this sub-
title and the amendments made by this subtitle shall become
effective on October 1, 1995.
Subtitle B—Anti-Fraud and
Trafficking
SEC. 351. EXPANDED DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.
2012(d)) is amended by striking ‘‘or type of certificate’’ and
inserting ‘‘type of certificate, authorization card, cash or
check issued as a coupon, or access device, including an elec-
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tronic benefits transfer card or a personal identification
number,’’.
SEC. 352. DOUBLED PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months upon’’
and inserting ‘‘1 year on’’; and
(2) in clause (ii), by striking ‘‘1 year upon’’ and
inserting ‘‘2 years on’’.
SEC. 353. AUTHORITY TO ESTABLISH AUTHORIZATION PE-
RIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)) is amended by adding at the end the following:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary
is authorized to issue regulations establishing specific
time periods during which authorization to accept
and redeem coupons under the food stamp program
shall be valid.’’.
SEC. 354. SPECIFIC PERIOD FOR PROHIBITING PARTICIPA-
TION OF STORES BASED ON LACK OF BUSI-
NESS INTEGRITY.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)) (as amended by section 353) is further amended
by adding at the end the following:
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‘‘(4) PERIODS FOR PARTICIPATION OF STORES
AND
CONCERNS.—The Secretary may issue regula-
tions establishing specific time periods during which
a retail food store or wholesale food concern that has
an application for approval to accept and redeem
coupons denied, or that has an approval withdrawn,
on the basis of business integrity and reputation can-
not submit a new application for approval. The peri-
ods shall reflect the severity of business integrity in-
fractions that are the basis of the denials or with-
drawals.’’.
SEC. 355. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C.
2018(c)) is amended—
(1) in the first sentence, by inserting ‘‘, which
may include relevant income and sales tax filing doc-
uments,’’ after ‘‘submit information’’ ; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The regulations may require retail food
stores and wholesale food concerns to provide written
authorization for the Secretary to verify all relevant
tax filings with appropriate agencies and to obtain
corroborating documentation from other sources so
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that the accuracy of information provided by the
stores and concerns may be verified.’’.
SEC. 356. WAITING PERIOD FOR STORES THAT INITIALLY
FAIL TO MEET AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.
2018(d)) is amended by adding at the end the following:
‘‘A retail food store or wholesale food concern that has an
application for approval to accept and redeem coupons de-
nied because the store or concern does not meet criteria for
approval established by the Secretary by regulation may
not submit a new application for 6 months after the date
of the denial.’’.
SEC. 357. BASES FOR SUSPENSIONS AND DISQUALIFICA-
TIONS.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) is amended—
(1) by striking the section heading;
(2) by striking ‘‘SEC. 12 (a) Any’’ and inserting
the following:
‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION
OF RETAIL FOOD STORES AND WHOLESALE
FOOD CONCERNS.
‘‘(a) DISQUALIFICATION.—
‘‘(1) IN GENERAL.—Any’’; and
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(3) in subsection (a), by adding at the end the
following:
‘‘(2) BASIS.—Regulations issued pursuant to
this Act shall provide criteria for the finding of a vio-
lation, and the suspension or disqualification of a re-
tail food store or wholesale food concern, on the basis
of evidence that may include facts established through
on-site investigations, inconsistent redemption data,
or evidence obtained through transaction reports
under electronic benefits transfer systems.’’.
SEC. 358. DISQUALIFICATION OF STORES PENDING JUDI-
CIAL AND ADMINISTRATIVE REVIEW.
(a) AUTHORITY.—Section 12(a) of the Food Stamp Act
of 1977 (7 U.S.C. 2021(a)) (as amended by section 357)
is further amended by adding at the end the following:
‘‘(3) DISQUALIFICATION PENDING REVIEW.—The
regulations may establish criteria under which the
authorization of a retail food store or wholesale food
concern to accept and redeem coupons may be sus-
pended at the time the store or concern is initially
found to have committed a violation of a requirement
of the food stamp program that would result in a per-
manent disqualification. The suspension may coincide
with the period of a review under section 14. The Sec-
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retary shall not be liable for the value of any sales
lost during a suspension or disqualification period.’’.
(b) REVIEW.—Section 14(a) of the Act (7 U.S.C.
2023(a)) is amended—
(1) in the first sentence, by striking ‘‘disqualified
or subjected’’ and inserting ‘‘suspended, disqualified,
or subjected’’;
(2) in the fifth sentence, by inserting before the
period at the end the following: ‘‘, except that, in the
case of the suspension of a retail food store or whole-
sale food concern under section 12(a)(3), the suspen-
sion shall remain in effect pending any judicial or
administrative review of the proposed disqualification
action, and the period of suspension shall be consid-
ered a part of any period of disqualification that is
imposed’’; and
(3) by striking the last sentence.
SEC. 359. DISQUALIFICATION OF RETAILERS WHO ARE DIS-
QUALIFIED UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION
OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.—
‘‘(1) IN
GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
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of an approved retail food store and a wholesale food
concern that is disqualified from accepting benefits
under the special supplemental nutrition program for
women, infants, and children established under sec-
tion 17 of the Child Nutrition Act of 1966 (7 U.S.C.
1786).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
‘‘(A) shall be for the same period as the dis-
qualification from the program referred to in
paragraph (1);
‘‘(B) may begin at a later date than the dis-
qualification from the program referred to in
paragraph (1); and
‘‘(C) notwithstanding section 14, shall not
be subject to judicial or administrative review.’’.
SEC. 360. PERMANENT DEBARMENT OF RETAILERS WHO IN-
TENTIONALLY SUBMIT FALSIFIED APPLICA-
TIONS.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) (as amended by section 359) is further amended by
adding at the end the following:
‘‘(h) FALSIFIED APPLICATIONS.—
‘‘(1) IN
GENERAL.—The Secretary shall issue
regulations providing for the permanent disqualifica-
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tion of a retail food store, or wholesale food concern,
that knowingly submits an application for approval
to accept and redeem coupons that contains false in-
formation about a substantive matter that was, or
could have been, a basis for approving the applica-
tion.
‘‘(2) REVIEW.—A disqualification under para-
graph (1) shall be subject to judicial and administra-
tive review under section 14, except that the disquali-
fication shall remain in effect pending the review.’’.
SEC. 361. EXPANDED CRIMINAL FORFEITURE FOR VIOLA-
TIONS.
(a) FORFEITURE
OF ITEMS EXCHANGED
IN FOOD
STAMP TRAFFICKING.—The first sentence of section 15(g)
of the Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is
amended by striking ‘‘or intended to be furnished’’.
(b) CRIMINAL FORFEITURE.—Section 15 of the Act (7
U.S.C. 2024)) is amended by adding at the end the follow-
ing:
‘‘(h) CRIMINAL FORFEITURE.—
‘‘(A) IN GENERAL.—Any person convicted of
violating subsection (b) or (c) involving food
stamp benefits having an aggregate value of not
less than $5,000, shall forfeit to the United
States—
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‘‘(i) any food stamp benefits and any
property constituting, or derived from, or
traceable to any proceeds the person ob-
tained directly or indirectly as a result of
the violation; and
‘‘(ii) any food stamp benefits and any
property of the person used, or intended to
be used, in any manner or part, to commit,
or to facilitate the commission of the viola-
tion.
‘‘(B) SENTENCE.—In imposing a sentence
on a person under subparagraph (A), a court
shall order that the person forfeit to the United
States all property described in this subsection.
‘‘(C) PROCEDURES.—Any food stamp bene-
fits or property subject to forfeiture under this
subsection, any seizure or disposition of the bene-
fits or property, and any administrative or judi-
cial proceeding relating to the benefits or prop-
erty, shall be governed by subsections (b), (c), (e),
and (g) through (p) of section 413 of the Com-
prehensive Drug Abuse Prevention and Control
Act of 1970 (21 U.S.C. 853), if not inconsistent
with this subsection.
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‘‘(3) EXCLUDED
PROPERTY.—This subsection
shall not apply to property referred to in subsection
(g).’’.
SEC. 362. EFFECTIVE DATE.
This subtitle and the amendments made by this sub-
title shall become effective on October 1, 1995.
TITLE IV—CHILD NUTRITION
PROGRAMS
Subtitle A—Reimbursement Rates
SEC. 401. TERMINATION OF ADDITIONAL PAYMENT FOR
LUNCHES SERVED IN HIGH FREE AND RE-
DUCED PRICE PARTICIPATION SCHOOLS.
(a) IN GENERAL.—Section 4(b)(2) of the National
School Lunch Act (42 U.S.C. 1753(b)(2)) is amended by
striking ‘‘except that’’ and all that follows through ‘‘2 cents
more’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on July 1, 1996.
SEC. 402. VALUE OF FOOD ASSISTANCE.
(a) IN GENERAL.—Section 6(e)(1) of the National
School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by
striking subparagraph (B) and inserting the following:
‘‘(B) ADJUSTMENTS.—
‘‘(i) IN GENERAL.—The value of food
assistance for each meal shall be adjusted
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each July 1 by the annual percentage
change in a 3-month average value of the
Price Index for Foods Used in Schools and
Institutions for March, April, and May
each year.
‘‘(ii) ADJUSTMENTS.—Except as other-
wise provided in this subparagraph, in the
case of each school year, the Secretary
shall—
‘‘(I) base the adjustment made
under clause (i) on the amount of the
unrounded adjustment for the preced-
ing school year;
‘‘(II) adjust the resulting amount
in accordance with clause (i); and
‘‘(III) round the result to the
nearest lower cent increment.
‘‘(iii) ADJUSTMENT
ON
JANUARY
1,
1996.—On January 1, 1996, the Secretary
shall adjust the value of food assistance for
the remainder of the school year by round-
ing the previously established value of food
assistance to the nearest lower cent incre-
ment.
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‘‘(iv) 
ADJUSTMENT
FOR
1996–97
SCHOOL YEAR.—In the case of the school
year beginning July 1, 1996, the value of
food assistance shall be the same as the
value of food assistance in effect on June 30,
1996.
‘‘(v) ADJUSTMENT FOR 1997–98 SCHOOL
YEAR.—In the case of the school year begin-
ning July 1, 1997, the Secretary shall—
‘‘(I) base the adjustment made
under clause (i) on the amount of the
unrounded adjustment for the value of
food assistance for the school year be-
ginning July 1, 1995;
‘‘(II) adjust the resulting amount
to reflect the annual percentage change
in a 3-month average value of the
Price Index for Foods Used in Schools
and Institutions for March, April, and
May for the most recent 12-month pe-
riod for which the data are available;
and
‘‘(III) round the result to the
nearest lower cent increment.’’.
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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on January 1, 1996.
SEC. 403. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.
(a) IN GENERAL.—Section 11(a)(3)(B) of the National
School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amend-
ed—
(1) by designating the second and third sentences
as subparagraphs (C) and (D), respectively; and
(2) by striking subparagraph (D) (as so des-
ignated) and inserting the following:
‘‘(D) ROUNDING.—Except as otherwise pro-
vided in this paragraph, in the case of each
school year, the Secretary shall—
‘‘(i) base the adjustment made under
this paragraph on the amount of the
unrounded adjustment for the preceding
school year;
‘‘(ii) adjust the resulting amount in
accordance with subparagraphs (B) and
(C); and
‘‘(iii) round the result to the nearest
lower cent increment.
‘‘(E) ADJUSTMENT ON JANUARY 1, 1996.—
On January 1, 1996, the Secretary shall adjust
the rates and factor for the remainder of the
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school year by rounding the previously estab-
lished rates and factor to the nearest lower cent
increment.
‘‘(F) ADJUSTMENT FOR 24-MONTH PERIOD
BEGINNING JULY 1, 1996.—In the case of the 24-
month period beginning July 1, 1996, the na-
tional average payment rates for paid lunches,
paid breakfasts, and paid supplements shall be
the same as the national average payment rate
for paid lunches, paid breakfasts, and paid sup-
plements, respectively, for the school year begin-
ning July 1, 1995, rounded to the nearest lower
cent increment.
‘‘(G) ADJUSTMENT FOR SCHOOL YEAR BE-
GINNING JULY 1, 1998.—In the case of the school
year beginning July 1, 1998, the Secretary
shall—
‘‘(i) base the adjustments made under
this paragraph for—
‘‘(I) paid lunches and paid break-
fasts on the amount of the unrounded
adjustment for paid lunches for the
school year beginning July 1, 1995;
and
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‘‘(II) paid supplements on the
amount of the unrounded adjustment
for paid supplements for the school
year beginning July 1, 1995;
‘‘(ii) adjust each resulting amount in
accordance with subparagraph (C); and
‘‘(iii) round each result to the nearest
lower cent increment.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on January 1, 1996.
SEC. 404. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) IN GENERAL.—Section 13(b) of the National
School Lunch Act (42 U.S.C. 1761(b)) is amended—
(1) by striking ‘‘(b)(1)’’ and all that follows
through the end of paragraph (1) and inserting the
following:
‘‘(b) SERVICE INSTITUTIONS.—
‘‘(1) PAYMENTS.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in this paragraph, payments to service
institutions shall equal the full cost of food serv-
ice operations (which cost shall include the costs
of obtaining, preparing, and serving food, but
shall not include administrative costs).
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‘‘(B) MAXIMUM AMOUNTS.—Subject to sub-
paragraph (C), payments to any institution
under subparagraph (A) shall not exceed—
‘‘(i) $2 for each lunch and supper
served;
‘‘(ii) $1.20 for each breakfast served;
and
‘‘(iii) 50 cents for each meal supple-
ment served.
‘‘(C) ADJUSTMENTS.—Amounts specified in
subparagraph (B) shall be adjusted each Janu-
ary 1 to the nearest lower cent increment in ac-
cordance with the changes for the 12-month pe-
riod ending the preceding November 30 in the se-
ries for food away from home of the Consumer
Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Depart-
ment of Labor. Each adjustment shall be based
on the unrounded adjustment for the prior 12-
month period.’’;
(2) in the second sentence of paragraph (3), by
striking ‘‘levels determined’’ and all that follows
through ‘‘this subsection’’ and inserting ‘‘level deter-
mined by the Secretary’’; and
(3) by striking paragraph (4).
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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on January 1, 1996.
SEC. 405. SPECIAL MILK PROGRAM.
(a) IN GENERAL.—Section 3(a) of the Child Nutrition
Act of 1966 (42 U.S.C. 1772(a)) is amended by striking
paragraph (8) and inserting the following:
‘‘(8) ADJUSTMENTS.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in this paragraph, in the case of each
school year, the Secretary shall—
‘‘(i) base the adjustment made under
paragraph (7) on the amount of the
unrounded adjustment for the preceding
school year;
‘‘(ii) adjust the resulting amount in
accordance with paragraph (7); and
‘‘(iii) round the result to the nearest
lower cent increment.
‘‘(B) ADJUSTMENT ON JANUARY 1, 1996.—
On January 1, 1996, the Secretary shall adjust
the minimum rate for the remainder of the
school year by rounding the previously estab-
lished minimum rate to the nearest lower cent
increment.
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‘‘(C) ADJUSTMENT
FOR
1996–97
SCHOOL
YEAR.—In the case of the school year beginning
July 1, 1996, the minimum rate shall be the
same as the minimum rate in effect on June 30,
1996.
‘‘(D) ADJUSTMENT
FOR
1997–98
SCHOOL
YEAR.—In the case of the school year beginning
July 1, 1997, the Secretary shall—
‘‘(i) base the adjustment made under
paragraph (7) on the amount of the
unrounded adjustment for the minimum
rate for the school year beginning July 1,
1995;
‘‘(ii) adjust the resulting amount to re-
flect changes in the Producer Price Index
for Fresh Processed Milk published by the
Bureau of Labor Statistics of the Depart-
ment of Labor for the most recent 12-month
period for which the data are available; and
‘‘(iii) round the result to the nearest
lower cent increment.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on January 1, 1996.
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SEC. 406. FREE AND REDUCED PRICE BREAKFASTS.
(a) IN GENERAL.—Section 4(b) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(b)) is amended—
(1) in the second sentence of paragraph (1)(B),
by striking ‘‘, adjusted to the nearest one-fourth cent’’
and inserting ‘‘(as adjusted pursuant to section 11(a)
of the National School Lunch Act (42 U.S.C.
1759a(a))’’; and
(2) in paragraph (2)(B)(ii)—
(A) by striking ‘‘nearest one-fourth cent’’
and inserting ‘‘nearest lower cent increment for
the applicable school year’’; and
(B) by inserting before the period at the end
the following: ‘‘, and the adjustment required by
this clause shall be based on the unrounded ad-
justment for the preceding school year’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on July 1, 1996.
SEC. 407. CONFORMING REIMBURSEMENT FOR PAID BREAK-
FASTS AND LUNCHES.
(a) IN
GENERAL.—The last sentence of section
4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(b)(1)(B)) is amended by striking ‘‘8.25 cents’’ and all
that follows through ‘‘Act)’’ and inserting ‘‘the same as the
national average lunch payment for paid meals established
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under section 4(b) of the National School Lunch Act (42
U.S.C. 1753(b))’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on January 1, 1996.
Subtitle B—Grant Programs
SEC. 411. SCHOOL BREAKFAST STARTUP GRANTS.
Section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773) is amended by striking subsection (g).
SEC. 412. NUTRITION EDUCATION AND TRAINING PRO-
GRAMS.
Section 19(i)(2)(A) of the Child Nutrition Act of 1966
(42 U.S.C. 1788(i)(2)(A)) is amended by striking
‘‘$10,000,000’’ and inserting ‘‘$7,000,000’’.
SEC. 413. EFFECTIVE DATE.
The amendments made by this subtitle shall become
effective on October 1, 1996.
Subtitle C—Other Amendments
SEC. 421. FREE AND REDUCED PRICE POLICY STATEMENT.
(a) SCHOOL LUNCH PROGRAM.—Section 9(b)(2) of the
National School Lunch Act (42 U.S.C. 1758(b)(2)) is
amended by adding at the end the following:
‘‘(D) FREE
AND
REDUCED
PRICE
POLICY
STATEMENT.—After the initial submission, a
school shall not be required to submit a free and
reduced price policy statement to a State edu-
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cational agency under this Act unless there is a
substantive change in the free and reduced price
policy of the school. A routine change in the pol-
icy of a school, such as an annual adjustment of
the income eligibility guidelines for free and re-
duced price meals, shall not be sufficient cause
for requiring the school to submit a policy state-
ment.’’.
(b) SCHOOL BREAKFAST PROGRAM.—Section 4(b)(1)
of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1))
is amended by adding at the end the following:
‘‘(E) FREE
AND
REDUCED
PRICE
POLICY
STATEMENT.—After the initial submission, a
school shall not be required to submit a free and
reduced price policy statement to a State edu-
cational agency under this Act unless there is a
substantive change in the free and reduced price
policy of the school. A routine change in the pol-
icy of a school, such as an annual adjustment of
the income eligibility guidelines for free and re-
duced price meals, shall not be sufficient cause
for requiring the school to submit a policy state-
ment.’’.
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SEC. 422. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) PERMITTING OFFER VERSUS SERVE.—Section
13(f) of the National School Lunch Act (42 U.S.C. 1761(f))
is amended—
(1) by striking ‘‘(f) Service’’ and inserting the
following:
‘‘(f) NUTRITIONAL STANDARDS.—
‘‘(1) IN GENERAL.—Service’’; and
(2) by adding at the end the following:
‘‘(2) OFFER VERSUS SERVE.—A school food au-
thority participating as a service institution may
permit a child attending a site on school premises op-
erated directly by the authority to refuse not more
than 1 item of a meal that the child does not intend
to consume. A refusal of an offered food item shall not
affect the amount of payments made under this sec-
tion to a school for the meal.’’.
(b) REMOVING MANDATORY NOTICE
TO INSTITU-
TIONS.—Section 13(n)(2) of the Act is amended by striking
‘‘and its plans and schedule’’ and inserting ‘‘except that
the Secretary may not require a State to submit a plan
or schedule’’.
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SEC. 423. CHILD AND ADULT CARE FOOD PROGRAM.
(a) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph
(2) of the last sentence of section 17(a) of the National
School Lunch Act (42 U.S.C. 1766(a)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day
care home sponsoring organization that employs
more than 1 employee, the organization does not
base payments to an employee of the organiza-
tion on the number of family or group day care
homes recruited, managed, or monitored.’’.
(b) IMPROVED TARGETING OF DAY CARE HOME REIM-
BURSEMENTS.—
(1) RESTRUCTURED
DAY
CARE
HOME
REIM-
BURSEMENTS.—Section 17(f)(3) of the Act is amend-
ed by striking ‘‘(3)(A) Institutions’’ and all that fol-
lows through the end of subparagraph (A) and insert-
ing the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY
CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
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‘‘(i) IN GENERAL.—An institution that
participates in the program under this sec-
tion as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the or-
ganization, reimbursement factors in ac-
cordance with this subparagraph for the
cost of obtaining and preparing food and
prescribed labor costs involved in providing
meals under this section.
‘‘(ii) TIER I FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) DEFINITION.—In this para-
graph, the term ‘tier I family or group
day care home’ means—
‘‘(aa) a family or group day
care home that is located in a geo-
graphic area, as defined by the
Secretary based on census data, in
which at least 50 percent of the
children residing in the area are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced price
meals under section 9;
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‘‘(bb) a family or group day
care home that is located in an
area served by a school enrolling
elementary students in which at
least 50 percent of the total num-
ber of children enrolled are cer-
tified eligible to receive free or re-
duced price school meals under
this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.); or
‘‘(cc) a family or group day
care home that is operated by a
provider whose household meets
the income eligibility guidelines
for free or reduced price meals
under section 9 and whose income
is verified by the sponsoring orga-
nization of the home under regu-
lations established by the Sec-
retary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier I
family or group day care home shall be
provided reimbursement factors under
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this clause without a requirement for
documentation of the costs described in
clause (i), except that reimbursement
shall not be provided under this
subclause for meals or supplements
served to the children of a person act-
ing as a family or group day care
home provider unless the children meet
the income eligibility guidelines for
free or reduced price meals under sec-
tion 9.
‘‘(III) FACTORS.—Except as pro-
vided in subclause (IV), the reimburse-
ment factors applied to a home referred
to in subclause (II) shall be the factors
in effect on the date of enactment of
this subclause.
‘‘(IV) ADJUSTMENTS.—The reim-
bursement factors under this subpara-
graph shall be adjusted on August 1,
1996, July 1, 1997, and each July 1
thereafter, to reflect changes in the
Consumer Price Index for food at home
for the most recent 12-month period for
which the data are available. The re-
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imbursement factors under this sub-
paragraph shall be rounded to the
nearest lower cent increment and based
on the unrounded adjustment in effect
on June 30 of the preceding school
year.
‘‘(iii) TIER II FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a fam-
ily or group day care home that
does not meet the criteria set forth
in clause (ii)(I), the reimburse-
ment factors shall be $1 for
lunches and suppers, 30 cents for
breakfasts, and 15 cents for sup-
plements.
‘‘(bb) 
ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
after, to reflect changes in the
Consumer Price Index for food at
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home for the most recent 12-month
period for which the data are
available. The reimbursement fac-
tors under this item shall be
rounded down to the nearest lower
cent increment and based on the
unrounded adjustment for the pre-
ceding 12-month period.
‘‘(cc) 
REIMBURSEMENT.—A
family or group day care home
shall be provided reimbursement
factors under this subclause with-
out a requirement for documenta-
tion of the costs described in
clause (i), except that reimburse-
ment shall not be provided under
this subclause for meals or supple-
ments served to the children of a
person acting as a family or
group day care home provider un-
less the children meet the income
eligibility guidelines for free or re-
duced price meals under section 9.
‘‘(II) OTHER FACTORS.—A family
or group day care home that does not
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meet the criteria set forth in clause
(ii)(I) may elect to be provided reim-
bursement factors determined in ac-
cordance with the following require-
ments:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED
PRICE
MEALS.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced price
meals under section 9, the family
or group day care home shall be
provided reimbursement factors
set by the Secretary in accordance
with clause (ii)(III).
‘‘(bb) 
INELIGIBLE
CHIL-
DREN.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes do not meet the income eli-
gibility guidelines, the family or
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group day care home shall be pro-
vided reimbursement factors in
accordance with subclause (I).
‘‘(III) INFORMATION AND DETER-
MINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
scribed in subclause (II), the fam-
ily or group day care home spon-
soring organization serving the
home shall collect the necessary
income information, as deter-
mined by the Secretary, from any
parent or other caretaker to make
the determinations specified in
subclause (II) and shall make the
determinations 
in 
accordance
with rules prescribed by the Sec-
retary.
‘‘(bb) CATEGORICAL
ELIGI-
BILITY.—In making a determina-
tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
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participating in or subsidized
under, or a child with a parent
participating in or subsidized
under, a federally or State sup-
ported child care or other benefit
program with an income eligi-
bility limit that does not exceed
the eligibility standard for free or
reduced price meals under section
9 to be a child who is a member
of a household whose income meets
the income eligibility guidelines
under section 9.
‘‘(cc) FACTORS
FOR
CHIL-
DREN ONLY.—A family or group
day care home may elect to re-
ceive the reimbursement factors
prescribed under clause (ii)(III)
solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not to
have income statements collected
from parents or other caretakers.
‘‘(IV) SIMPLIFIED
MEAL
COUNT-
ING
AND
REPORTING
PROCEDURES.—
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The Secretary shall prescribe sim-
plified meal counting and reporting
procedures for use by a family or
group day care home that elects to
claim the factors under subclause (II)
and by a family or group day care
home sponsoring organization that
sponsors the home. The procedures the
Secretary prescribes may include 1 or
more of the following:
‘‘(aa) Setting an annual per-
centage for each home of the num-
ber of meals served that are to be
reimbursed in accordance with the
reimbursement factors prescribed
under clause (ii)(III) and an an-
nual percentage of the number of
meals served that are to be reim-
bursed in accordance with the re-
imbursement 
factors 
prescribed
under subclause (I), based on the
family income of children enrolled
in the home in a specified month
or other period.
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‘‘(bb) Placing a home into 1
of 2 or more reimbursement cat-
egories annually based on the per-
centage of children in the home
whose households have incomes
that meet the income eligibility
guidelines under section 9, with
each such reimbursement category
carrying a set of reimbursement
factors such as the factors pre-
scribed under clause (ii)(III) or
subclause (I) or factors established
within the range of factors pre-
scribed under clause (ii)(III) and
subclause (I).
‘‘(cc) Such other simplified
procedures as the Secretary may
prescribe.
‘‘(V) MINIMUM VERIFICATION RE-
QUIREMENTS.—The Secretary may es-
tablish any necessary minimum ver-
ification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE
TO FAMILY OR GROUP DAY CARE HOMES.—Section
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17(f)(3) of the Act is amended by adding at the end
the following:
‘‘(D) GRANTS TO STATES TO PROVIDE AS-
SISTANCE
TO
FAMILY
OR
GROUP
DAY
CARE
HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) 
RESERVATION.—From
amounts made available to carry out
this section, the Secretary shall reserve
$5,000,000 of the amount made avail-
able for fiscal year 1996.
‘‘(II) PURPOSE.—The Secretary
shall use the funds made available
under subclause (I) to provide grants
to States for the purpose of provid-
ing—
‘‘(aa) assistance, including
grants, to family and day care
home 
sponsoring 
organizations
and other appropriate organiza-
tions, in securing and providing
training, 
materials, 
automated
data processing assistance, and
other assistance for the staff of the
sponsoring organizations; and
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‘‘(bb) training and other as-
sistance to family and group day
care homes in the implementation
of the amendments to subpara-
graph 
(A) 
made 
by 
section
423(b)(1) of the Work Oppor-
tunity Act of 1995.
‘‘(ii) 
ALLOCATION.—The 
Secretary
shall allocate from the funds reserved under
clause (i)(I)—
‘‘(I) $30,000 in base funding to
each State; and
‘‘(II) 
any 
remaining 
amount
among the States, based on the number
of family day care homes participating
in the program in a State during fis-
cal year 1994 as a percentage of the
number of all family day care homes
participating in the program during
fiscal year 1994.
‘‘(iii) RETENTION OF FUNDS.—Of the
amount of funds made available to a State
for fiscal year 1996 under clause (i), the
State may retain not to exceed 30 percent
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of the amount to carry out this subpara-
graph.
‘‘(iv) ADDITIONAL
PAYMENTS.—Any
payments received under this subparagraph
shall be in addition to payments that a
State receives under subparagraph (A) (as
amended by section 423(b)(1) of the Work
Opportunity Act of 1995).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of the
Act (as amended by paragraph (2)) is further amend-
ed by adding at the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR
GROUP DAY CARE HOME SPONSORING ORGANIZA-
TIONS.—
‘‘(i) CENSUS
DATA.—The Secretary
shall provide to each State agency admin-
istering a child and adult care food pro-
gram under this section data from the most
recent decennial census survey or other ap-
propriate census survey for which the data
are available showing which areas in the
State meet the requirements of subpara-
graph (A)(ii)(I)(aa). The State agency shall
provide the data to family or group day
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care home sponsoring organizations located
in the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) IN GENERAL.—A State agen-
cy administering the school lunch pro-
gram under this Act or the school
breakfast program under the Child Nu-
trition Act of 1966 (42 U.S.C. 1771 et
seq.) shall provide to approved family
or group day care home sponsoring or-
ganizations a list of schools serving ele-
mentary school children in the State in
which not less than 1⁄2 of the children
enrolled are certified to receive free or
reduced price meals. The State agency
shall collect the data necessary to cre-
ate the list annually and provide the
list on a timely basis to any approved
family or group day care home spon-
soring organization that requests the
list.
‘‘(II) USE OF DATA FROM PRE-
CEDING SCHOOL YEAR.—In determin-
ing for a fiscal year or other annual
period whether a home qualifies as a
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tier I family or group day care home
under subparagraph (A)(ii)(I), the
State agency administering the pro-
gram under this section, and a family
or group day care home sponsoring or-
ganization, shall use the most current
available data at the time of the deter-
mination.
‘‘(iii) 
DURATION
OF
DETERMINA-
TION.—For purposes of this section, a deter-
mination that a family or group day care
home is located in an area that qualifies the
home as a tier I family or group day care
home (as the term is defined in subpara-
graph (A)(ii)(I)), shall be in effect for 3
years (unless the determination is made on
the basis of census data, in which case the
determination shall remain in effect until
more recent census data are available) un-
less the State agency determines that the
area in which the home is located no longer
qualifies the home as a tier I family or
group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c)
of the Act is amended by inserting ‘‘except as pro-
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vided in subsection (f)(3),’’ after ‘‘For purposes of this
section,’’ each place it appears in paragraphs (1), (2),
and (3).
(c) DISALLOWING MEAL CLAIMS.—The fourth sentence
of section 17(f)(4) of the Act is amended by inserting ‘‘(in-
cluding institutions that are not family or group day care
home sponsoring organizations)’’ after ‘‘institutions’’.
(d) ELIMINATION OF STATE PAPERWORK AND OUT-
REACH BURDEN.—Section 17 of the Act is amended by
striking subsection (k) and inserting the following:
‘‘(k) TRAINING
AND
TECHNICAL
ASSISTANCE.—A
State participating in the program established under this
section shall provide sufficient training, technical assist-
ance, and monitoring to facilitate effective operation of the
program. The Secretary shall assist the State in developing
plans to fulfill the requirements of this subsection.’’.
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
become effective on the date of enactment of this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS.—The amendments made by para-
graphs (1), (3), and (4) of subsection (b) shall become
effective on August 1, 1996.
(3) REGULATIONS.—
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(A) INTERIM REGULATIONS.—Not later than
February 1, 1996, the Secretary shall issue in-
terim regulations to implement—
(i) the amendments made by para-
graphs (1), (3), and (4) of subsection (b);
and
(ii) section 17(f)(3)(C) of the National
School 
Lunch 
Act 
(42 
U.S.C.
1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than
August 1, 1996, the Secretary shall issue final
regulations to implement the provisions of law
referred to in subparagraph (A).
(f) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM
PARTICIPATION AND FAMILY DAY CARE LICENSING.—
(1) IN GENERAL.—The Secretary of Agriculture,
in conjunction with the Secretary of Health and
Human Services, shall study the impact of the
amendments made by this section on—
(A) the number of family day care homes
participating in the child and adult care food
program established under section 17 of the Na-
tional School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsor-
ing organizations participating in the program;
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(C) the number of day care homes that are
licensed, certified, registered, or approved by
each State in accordance with regulations issued
by the Secretary;
(D) the rate of growth of the numbers re-
ferred to in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of
meals served in family day care homes that—
(i) received reimbursement under the
program prior to the amendments made by
this section but do not receive reimburse-
ment after the amendments made by this
section; or
(ii) received full reimbursement under
the program prior to the amendments made
by this section but do not receive full reim-
bursement after the amendments made by
this section; and
(F) the proportion of low-income children
participating in the program prior to the
amendments made by this section and the pro-
portion of low-income children participating in
the program after the amendments made by this
section.
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(2) REQUIRED DATA.—Each State agency par-
ticipating in the child and adult care food program
under section 17 of the National School Lunch Act
(42 U.S.C. 1766) shall submit to the Secretary data
on—
(A) the number of family day care homes
participating in the program on July 31, 1996,
and July 31, 1997;
(B) the number of family day care homes li-
censed, certified, registered, or approved for serv-
ice on July 31, 1996, and July 31, 1997; and
(C) such other data as the Secretary may
require to carry out this subsection.
(3) SUBMISSION OF REPORT.—Not later than 2
years after the effective date of section 423 of this Act,
the Secretary shall submit the study required under
this subsection to the Committee on Economic and
Educational Opportunities of the House of Represent-
atives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 424. REDUCING REQUIRED REPORTS TO STATE AGEN-
CIES AND SCHOOLS.
Section 19 of the National School Lunch Act (42
U.S.C. 1769a) is amended by striking subsection (c) and
inserting the following:
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‘‘(c) REPORT.—Not later than 1 year after the date
of enactment of the Work Opportunity Act of 1995, the Sec-
retary shall—
‘‘(1) review all reporting requirements under this
Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) that are in effect, as of the date of enact-
ment of the Work Opportunity Act of 1995, for agen-
cies and schools referred to in subsection (a); and
‘‘(2) provide a report to the Committee on Eco-
nomic and Educational Opportunities of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate that—
‘‘(A) describes the reporting requirements
described in paragraph (1) that are required by
law;
‘‘(B) makes recommendations concerning
the elimination of any requirement described in
subparagraph (A) because the contribution of the
requirement to program effectiveness is not suffi-
cient to warrant the paperwork burden that is
placed on agencies and schools referred to in sub-
section (a); and
‘‘(C) provides a justification for reporting
requirements described in paragraph (1) that are
required solely by regulation.’’.
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Subtitle D—Reauthorization
SEC. 431. COMMODITY DISTRIBUTION PROGRAM; COMMOD-
ITY SUPPLEMENTAL FOOD PROGRAM.
(a) REAUTHORIZATION.—The first sentence of section
4(a) of the Agriculture and Consumer Protection Act of
1973 (Public Law 93–86; 7 U.S.C. 612c note) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
(b) ADMINISTRATIVE FUNDING.—Section 5(a)(2) of the
Act (Public Law 93–86; 7 U.S.C. 612c note) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 432. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) REAUTHORIZATION.—The first sentence of section
204(a)(1) of the Emergency Food Assistance Act of 1983
(Public Law 98–8; 7 U.S.C. 612c note) is amended by strik-
ing ‘‘1995’’ and inserting ‘‘2002’’.
(b) PROGRAM TERMINATION.—Section 212 of the Act
(Public Law 98–8; 7 U.S.C. 612c note) is amended by strik-
ing ‘‘1995’’ and inserting ‘‘2002’’.
(c) REQUIRED PURCHASES OF COMMODITIES.—Sec-
tion 214 of the Act (Public Law 98–8; 7 U.S.C. 612c note)
is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘1995’’ and inserting ‘‘2002’’; and
(2) in subsection (e), by striking ‘‘1995’’ each
place it appears and inserting ‘‘2002’’.
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(d) EXTENSION.—Section 13962 of the Omnibus Budg-
et Reconciliation Act of 1993 (Public Law 103–66; 107
Stat. 680) is amended by striking ‘‘1994, 1995, and 1996’’
each place it appears and inserting ‘‘1994 through 2002’’.
SEC. 433. SOUP KITCHENS PROGRAM.
Section 110 of the Hunger Prevention Act of 1988
(Public Law 100–435; 7 U.S.C. 612c note) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘1995’’ and inserting ‘‘2002’’; and
(2) in subsection (c)(2)—
(A) in the paragraph heading, by striking
‘‘1995’’ and inserting ‘‘2002’’; and
(B) by striking ‘‘1995’’ each place it ap-
pears and inserting ‘‘2002’’.
SEC. 434. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1114(a)(2)(A) of the Agri-
culture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is
amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 435. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
Section 5(d)(2) of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93–86; 7 U.S.C.
612c note) is amended by striking ‘‘1995’’ and insert-
ing ‘‘2002’’.
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TITLE V—NONCITIZENS
SEC. 501. STATE OPTION TO PROHIBIT ASSISTANCE FOR
CERTAIN ALIENS.
(a) IN GENERAL.—A State may, at its option, prohibit
the use of any Federal funds received for the provision of
assistance under any means-tested public assistance pro-
gram for any individual who is a noncitizen of the United
States.
(b) EXCEPTIONS.—Subsection (a) shall not apply to—
(1) any individual who is described in subclause
(II), (III), or (IV) of section 1614(a)(1)(B)(i) of the
Social Security Act (42 U.S.C. 1382c(a)(1)(B)(i));
and
(2) any program described in section 502(f)(2).
SEC. 502. DEEMED INCOME REQUIREMENT FOR FEDERAL
AND FEDERALLY FUNDED PROGRAMS.
(a) DEEMING REQUIREMENT FOR FEDERAL AND FED-
ERALLY FUNDED PROGRAMS.—Subject to subsection (d), for
purposes of determining the eligibility of an individual
(whether a citizen or national of the United States or an
alien) for assistance and the amount of assistance, under
any Federal program of assistance provided or funded, in
whole or in part, by the Federal Government for which eli-
gibility is based on need, the income and resources described
in subsection (b) shall, notwithstanding any other provision
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of law, be deemed to be the income and resources of such
individual.
(b) DEEMED INCOME AND RESOURCES.—The income
and resources described in this subsection include the follow-
ing:
(1) The income and resources of any person who,
as a sponsor of such individual’s entry into the Unit-
ed States, or in order to enable such individual law-
fully to remain in the United States, executed an affi-
davit of support or similar agreement with respect to
such individual.
(2) The income and resources of the sponsor’s
spouse.
(c) LENGTH OF DEEMING PERIOD.—The requirement
of subsection (a) shall apply for the period for which the
sponsor has agreed, in such affidavit or agreement, to pro-
vide support for such individual, or for a period of 5 years
beginning on the date such individual was first lawfully
in the United States after the execution of such affidavit
or agreement, whichever period is longer.
(d) LIMITATION ON MEASUREMENT OF DEEMED IN-
COME AND RESOURCES.—
(1) IN GENERAL.—If a determination described
in paragraph (2) is made, the amount of income and
resources of the sponsor or the sponsor’s spouse which
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shall be attributed to the sponsored individual shall
not exceed the amount actually provided, for a period
beginning on the date of such determination and last-
ing 12 months or, if the address of the sponsor is un-
known to the sponsored individual on the date of such
determination, for 12 months after the address be-
comes known to the sponsored individual or to the
agency (which shall inform such individual within 7
days).
(2) DETERMINATION.—The determination de-
scribed in this paragraph is a determination by an
agency that a sponsored individual would, in the ab-
sence of the assistance provided by the agency, be un-
able to obtain food and shelter, taking into account
the individual’s own income, plus any cash, food,
housing, or other assistance provided by other indi-
viduals, including the sponsor.
(e) DEEMING AUTHORITY TO STATE AND LOCAL AGEN-
CIES.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law, but subject to an exception equiva-
lent to that in subsection (d), the State or local gov-
ernment may, for purposes of determining the eligi-
bility of an individual (whether a citizen or national
of the United States or an alien) for assistance, and
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the amount of assistance, under any State or local
program of assistance for which eligibility is based on
need, or any need-based program of assistance admin-
istered by a State or local government other than a
program described in subsection (a), require that the
income and resources described in paragraph (2) be
deemed to be the income and resources of such indi-
vidual.
(2) DEEMED INCOME AND RESOURCES.—The in-
come and resources described in this paragraph in-
clude the following:
(A) The income and resources of any person
who, as a sponsor of such individual’s entry into
the United States, or in order to enable such in-
dividual lawfully to remain in the United
States, executed an affidavit of support or simi-
lar agreement with respect to such individual.
(B) The income and resources of the spon-
sor’s spouse.
(3) LENGTH OF DEEMED INCOME PERIOD.—Sub-
ject to an exception equivalent to subsection (d), a
State or local government may impose a requirement
described in paragraph (1) for the period for which
the sponsor has agreed, in such affidavit or agree-
ment, to provide support for such individual, or for
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a period of 5 years beginning on the date such indi-
vidual was first lawfully in the United States after
the execution of such affidavit or agreement, which-
ever period is longer.
(f) APPLICABILITY OF SECTION.—
(1) INDIVIDUALS.—The provisions of this section
shall not apply to the eligibility of any individual
who is described in subclause (II), (III), or (IV) of
section 1614(a)(1)(B)(i) of the Social Security Act
(42 U.S.C. 1382c(a)(1)(B)(i)).
(2) PROGRAMS.—The provisions of this section
shall not apply to eligibility for—
(A) emergency medical services under title
XIX of the Social Security Act (42 U.S.C. 1396
et seq.);
(B) short-term emergency disaster relief;
(C) assistance or benefits under the Na-
tional School Lunch Act;
(D) assistance or benefits under the Child
Nutrition Act of 1966;
(E) public health assistance for immuniza-
tions with respect to immunizable diseases and
for testing and treatment for communicable dis-
eases if the Secretary of Health and Human
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Services determines that such testing and treat-
ment is necessary;
(F) the Head Start program (42 U.S.C.
9801); and
(G) programs specified by the Attorney
General, in the Attorney General’s sole and
unreviewable discretion after consultation with
appropriate Federal agencies and departments,
which (i) deliver services at the community level,
including through public or private nonprofit
agencies; (ii) do not condition the provision of
assistance, the amount of assistance provided, or
the cost of assistance provided on the individual
recipient’s income or resources; and (iii) are nec-
essary for the protection of life, safety, or public
health.
(g) CONFORMING AMENDMENTS.—
(1) Section 1621 of the Social Security Act (42
U.S.C. 1382j) is repealed.
(2) Section 1614(f)(3) of such Act (42 U.S.C.
1382c(f)(3)) is amended by striking ‘‘section 1621’’
and inserting ‘‘section 502 of the Work Opportunity
Act of 1995’’.
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SEC. 503. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF
SUPPORT.
(a) ENFORCEABILITY.—No affidavit of support may be
relied upon by the Attorney General or by any consular
officer to establish that an alien is not excludable as a pub-
lic charge under section 212(a)(4) of the Immigration and
Nationality Act unless such affidavit is executed as a con-
tract—
(1) which is legally enforceable against the spon-
sor by the sponsored individual, by the Federal Gov-
ernment, and by any State, district, territory, or pos-
session of the United States (or any subdivision of
such State, district, territory, or possession of the
United States) which provides any benefit under a
program described in subsection (d)(2), but not later
than 10 years after the sponsored individual last re-
ceives any such benefit;
(2) in which the sponsor agrees to financially
support the sponsored individual, so that he or she
will not become a public charge, until the sponsored
individual has worked in the United States for 40
qualifying quarters; and
(3) in which the sponsor agrees to submit to the
jurisdiction of any Federal or State court for the pur-
pose of actions brought under subsection (d)(4).
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(b) FORMS.—Not later than 90 days after the date of
the enactment of this Act, the Secretary of State, the Attor-
ney General, and the Secretary of Health and Human Serv-
ices shall jointly formulate the affidavit of support described
in this section.
(c) NOTIFICATION OF CHANGE OF ADDRESS.—
(1) IN GENERAL.—The sponsor shall notify the
Attorney General and the State, district, territory, or
possession in which the sponsored individual is cur-
rently resident within 30 days of any change of ad-
dress of the sponsor during the period specified in
subsection (a)(1).
(2) PENALTY.—Any person subject to the re-
quirement of paragraph (1) who fails to satisfy such
requirement shall be subject to a civil penalty of—
(A) not less than $250 or more than $2,000,
or
(B) if such failure occurs with knowledge
that the sponsored individual has received any
benefit described in section 241(a)(5)(C) of the
Immigration and Nationality Act, not less than
$2,000 or more than $5,000.
(d) REIMBURSEMENT OF GOVERNMENT EXPENSES.—
(1) IN
GENERAL.—Upon notification that a
sponsored individual has received any benefit under
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a program described in paragraph (2), the appro-
priate Federal, State, or local official shall request re-
imbursement by the sponsor in the amount of such as-
sistance.
(2) PROGRAMS DESCRIBED.—The programs de-
scribed in this paragraph include the following:
(A) Assistance under a State program fund-
ed under part A of title IV of the Social Security
Act.
(B) The medicaid program under title XIX
of the Social Security Act.
(C) The food stamp program under the
Food Stamp Act of 1977.
(D) The supplemental security income pro-
gram under title XVI of the Social Security Act.
(E) Any State general assistance program.
(F) Any other program of assistance funded,
in whole or in part, by the Federal Government
or any State or local government entity, for
which eligibility for benefits is based on need, ex-
cept the programs specified in section 502(f)(2).
(3) REGULATIONS.—The Commissioner of Social
Security shall prescribe such regulations as may be
necessary to carry out paragraph (1). Such regula-
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tions shall provide for notification to the sponsor by
certified mail to the sponsor’s last known address.
(4) REIMBURSEMENT.—If within 45 days after
requesting reimbursement, the appropriate Federal,
State, or local agency has not received a response
from the sponsor indicating a willingness to com-
mence payments, an action may be brought against
the sponsor pursuant to the affidavit of support.
(5) ACTION IN CASE OF FAILURE.—If the sponsor
fails to abide by the repayment terms established by
such agency, the agency may, within 60 days of such
failure, bring an action against the sponsor pursuant
to the affidavit of support.
(6) STATUTE OF LIMITATIONS.—No cause of ac-
tion may be brought under this subsection later than
10 years after the sponsored individual last received
any benefit under a program described in paragraph
(2).
(e) JURISDICTION.—For purposes of this section, no
State court shall decline for lack of jurisdiction to hear any
action brought against a sponsor for reimbursement of the
cost of any benefit under a program described in subsection
(d)(2) if the sponsored individual received public assistance
while residing in the State.
(f) DEFINITIONS.—For the purposes of this section—
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(1) the term ‘‘sponsor’’ means an individual
who—
(A) is a United States citizen or national
or an alien who is lawfully admitted to the
United States for permanent residence;
(B) is 18 years of age or over;
(C) is domiciled in any of the several States
of the United States, the District of Columbia, or
any territory or possession of the United States;
and
(D) demonstrates the means to maintain an
annual income equal to at least 200 percent of
the poverty line for the individual and the indi-
vidual’s family (including the sponsored individ-
ual), through evidence that shall include a copy
of the individual’s Federal income tax returns
for his or her most recent two taxable years and
a written statement, executed under oath or as
permitted under penalty of perjury under section
1746 of title 28, United States Code, that the
copies are true copies of such returns;
(2) the term ‘‘poverty line’’ has the same mean-
ing given such term in section 673(2) of the Commu-
nity Services Block Grant Act (42 U.S.C. 9902(2));
and
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(3) the term ‘‘qualifying quarter’’ means a three-
month period in which the sponsored individual
has—
(A) earned at least the minimum necessary
for the period to count as one of the 40 calendar
quarters required to qualify for social security
retirement benefits;
(B) not received need-based public assist-
ance; and
(C) had income tax liability for the tax
year of which the period was part.
SEC. 504. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI
BENEFITS.
(a) IN GENERAL.—Paragraph (1) of section 1614(a)
of the Social Security Act (42 U.S.C. 1382c(a)) is amend-
ed—
(1) in subparagraph (B)(i), by striking ‘‘either’’
and all that follows through ‘‘, or’’ and inserting ‘‘(I)
a citizen; (II) a noncitizen who is granted asylum
under section 208 of the Immigration and National-
ity Act or whose deportation has been withheld under
section 243(h) of such Act for a period of not more
than 5 years after the date of arrival into the United
States; (III) a noncitizen who is admitted to the
United States as a refugee under section 207 of such
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Act for not more than such 5-year period; (IV) a
noncitizen, lawfully present in any State (or any ter-
ritory or possession of the United States), who is a
veteran (as defined in section 101 of title 38, United
States Code) with a discharge characterized as an
honorable discharge and not on account of alienage or
who is the spouse or unmarried dependent child of
such veteran; or (V) a noncitizen who has worked suf-
ficient calendar quarters of coverage to be a fully in-
sured individual for benefits under title II, or’’; and
(2) by adding at the end the following new flush
sentence:
‘‘For purposes of subparagraph (B)(i)(IV), the determina-
tion of whether a noncitizen is lawfully present in the Unit-
ed States shall be made in accordance with regulations of
the Attorney General. A noncitizen shall not be considered
to be lawfully present in the United States for purposes of
this title merely because the noncitizen may be considered
to be permanently residing in the United States under color
of law for purposes of any particular program.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by subsection (a)
shall apply to applicants for benefits for months be-
ginning on or after the date of the enactment of this
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Act, without regard to whether regulations have been
issued to implement such amendments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) APPLICATION
AND
NOTICE.—Notwith-
standing 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 enact-
ment of this Act and whose eligibility for such
benefits would terminate by reason of the amend-
ments made by subsection (a), such amendments
shall apply with respect to the benefits of such
individual for months beginning on or after Jan-
uary 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 Se-
curity Act shall reapply to the Commis-
sioner of Social Security.
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(ii) 
DETERMINATION
OF
ELIGI-
BILITY.—Not later than 1 year after the
date of the enactment of this Act, the Com-
missioner of Social Security shall determine
the eligibility of each individual who
reapplies for benefits under clause (i) pur-
suant to the procedures of such title XVI.
SEC. 505. TREATMENT OF NONCITIZENS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, a noncitizen who has entered into the United
States on or after the date of the enactment of this Act shall
not, during the 5-year period beginning on the date of such
noncitizen’s entry into the United States, be eligible to re-
ceive any benefits under any program of assistance pro-
vided, or funded, in whole or in part, by the Federal Gov-
ernment, for which eligibility for benefits is based on need.
(b) EXCEPTIONS.—Subsection (a) shall not apply to—
(1) any individual who is described in subclause
(II), (III), (IV), or (V) of section 1614(a)(1)(B)(i) of
the Social Security Act (42 U.S.C. 1382c(a)(1)(B)(i));
and
(2) any program described in section 502(f)(2);
and
(3) payments for foster care and adoption assist-
ance under part E of title IV of the Social Security
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Act for a child who would, in the absence of this sec-
tion, be eligible to have such payments made on the
child’s behalf under such part, but only if the foster
or adoptive parent or parents of such child are not
noncitizens described in subsection (a).
SEC. 506. INFORMATION REPORTING.
(a) TITLE IV OF THE SOCIAL SECURITY ACT.—Sec-
tion 405 of the Social Security Act, as added by section
101(b), is amended by adding at the end the following new
subsection:
‘‘(g) STATE REQUIRED TO PROVIDE CERTAIN INFOR-
MATION.—Each State to which a grant is made under sec-
tion 403 shall, at least 4 times annually and upon request
of the Immigration and Naturalization Service, furnish the
Immigration and Naturalization Service with the name
and address of, and other identifying information on, any
individual who the State knows is unlawfully in the United
States.’’.
(b) SSI.—Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended—
(1) by redesignating the paragraphs (6) and (7)
inserted by sections 206(d)(2) and 206(f)(1) of the So-
cial Security Independence and Programs Improve-
ment Act of 1994 (Public Law 103–296; 108 Stat.
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1514, 1515) as paragraphs (7) and (8), respectively;
and
(2) by adding at the end the following new para-
graph:
‘‘(9) Notwithstanding any other provision of law,
the Commissioner shall, at least 4 times annually and
upon request of the Immigration and Naturalization
Service (hereafter in this paragraph referred to as the
‘Service’), furnish the Service with the name and ad-
dress of, and other identifying information on, any
individual who the Commissioner knows is unlaw-
fully in the United States, and shall ensure that each
agreement entered into under section 1616(a) with a
State provides that the State shall furnish such infor-
mation at such times with respect to any individual
who the State knows is unlawfully in the United
States.’’.
(c) HOUSING PROGRAMS.—Title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.), as amended
by section 1003, is further amended by adding at the end
the following new section:
‘‘SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCE-
MENT AND OTHER AGENCIES.
‘‘(a) NOTICE TO IMMIGRATION AND NATURALIZATION
SERVICE OF ILLEGAL ALIENS.—Notwithstanding any other
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provision of law, the Secretary shall, at least 4 times annu-
ally and upon request of the Immigration and Naturaliza-
tion Service (hereafter in this subsection referred to as the
‘Service’), furnish the Service with the name and address
of, and other identifying information on, any individual
who the Secretary knows is unlawfully in the United States,
and shall ensure that each contract for assistance entered
into under section 6 or 8 of this Act with a public housing
agency provides that the public housing agency shall fur-
nish such information at such times with respect to any
individual who the public housing agency knows is unlaw-
fully in the United States.’’.
SEC. 507. PROHIBITION ON PAYMENT OF FEDERAL BENE-
FITS TO CERTAIN PERSONS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), Fed-
eral benefits shall not be paid or provided to any person
who is not a person lawfully present within the United
States.
(b) EXCEPTIONS.—Subsection (a) shall not apply with
respect to the following benefits:
(1) Emergency medical services under title XIX
of the Social Security Act.
(2) Short-term emergency disaster relief.
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(3) Assistance or benefits under the National
School Lunch Act.
(4) Assistance or benefits under the Child Nutri-
tion Act of 1966.
(5) Public health assistance for immunizations
and, if the Secretary of Health and Human Services
determines that it is necessary to prevent the spread
of a serious communicable disease, for testing and
treatment of such disease.
(c) DEFINITIONS.—For purposes of this section:
(1) FEDERAL BENEFIT.—The term ‘‘Federal ben-
efit’’ means—
(A) the issuance of any grant, contract,
loan, professional license, or commercial license
provided by an agency of the United States or
by appropriated funds of the United States; and
(B) any retirement, welfare, Social Secu-
rity, health, disability, public housing, post-sec-
ondary education, food stamps, unemployment
benefit, or any other similar benefit for which
payments or assistance are provided by an agen-
cy of the United States or by appropriated funds
of the United States.
(2) PERSON LAWFULLY PRESENT WITHIN THE
UNITED STATES.—The term ‘‘person lawfully present
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within the United States’’ means a person who, at the
time the person applies for, receives, or attempts to
receive a Federal benefit, is a United States citizen,
a permanent resident alien, an alien whose deporta-
tion has been withheld under section 243(h) of the Im-
migration and Nationality Act (8 U.S.C. 1253(h)),
an asylee, a refugee, a parolee who has been paroled
for a period of at least 1 year, a national, or a na-
tional of the United States for purposes of the immi-
gration laws of the United States (as defined in sec-
tion 101(a)(17) of the Immigration and Nationality
Act (8 U.S.C. 1101(a)(17)).
(d) STATE OBLIGATION.—Notwithstanding any other
provision of law, a State that administers a program that
provides a Federal benefit (described in section 507(c)(1))
or provides State benefits pursuant to such a program shall
not be required to provide such benefit to a person who is
not a person lawfully present within the United States (as
defined in section 507(c)(2)) through a State agency or with
appropriated funds of such State.
(e) VERIFICATION
OF ELIGIBILITY.—(1) IN
GEN-
ERAL.—Not later than 18 months after the date of the enact-
ment of this Act, the Attorney General of the United States,
after consultation with the Secretary of Health and Human
Services, shall promulgate regulations requiring verifica-
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tion that a person applying for a Federal benefit, including
a benefit described in section 507(b), is a person lawfully
present within the United States and is eligible to receive
such benefit. Such regulations shall, to the extent feasible,
require that information requested and exchanged be simi-
lar in form and manner to information requested and ex-
changed under section 1137 of the Social Security Act.
(2) STATE COMPLIANCE.—Not later than 24 months
after the date the regulations described in paragraph (1)
are adopted, a State that administers a program that pro-
vides a Federal benefit described in such paragraph shall
have in effect a verification system that complies with the
regulations.
(3) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary to carry out the purpose of this section.
(f) SEVERABILITY.—If any provision of this title or
the application of such provision to any person or cir-
cumstance is held to be unconstitutional, the remainder of
this title and the application of the provisions of such to
any person or circumstance shall not be affected thereby.
TITLE VI—CHILD CARE
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Child Care and Devel-
opment Block Grant Amendments Act of 1995’’.
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SEC. 602. AMENDMENTS TO THE CHILD CARE AND DEVEL-
OPMENT BLOCK GRANT ACT OF 1990.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
658B of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858) is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subchapter $1,000,000,000 for fiscal year 1996, and
such sums as may be necessary for each of the fiscal years
1997 through 2000.’’.
(b) LEAD AGENCY.—Section 658D(b) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking
‘‘State’’ and inserting ‘‘governmental or non-
governmental’’; and
(B) in subparagraph (C), by inserting
‘‘with sufficient time and Statewide distribution
of the notice of such hearing,’’ after ‘‘hearing in
the State’’; and
(2) in paragraph (2), by striking the second sen-
tence.
(c) APPLICATION AND PLAN.—Section 658E of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858c) is amended—
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(1) in subsection (b), by striking ‘‘imple-
mented—’’ and all that follows through ‘‘plans.’’ and
inserting ‘‘implemented during a 2-year period.’’; and
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clause (iii) by striking the
semicolon and inserting a period; and
(II) by striking ‘‘except’’ and all
that follows through ‘‘1992.’’; and
(ii) in subparagraph (E)—
(I) by striking clause (ii) and in-
serting the following new clause:
‘‘(ii) the State will implement mecha-
nisms to ensure that appropriate payment
mechanisms exist so that proper payments
under this subchapter will be made to pro-
viders within the State and to permit the
State to furnish information to such provid-
ers.’’; and
(II) by adding at the end thereof
the following new sentence: ‘‘In lieu of
any licensing and regulatory require-
ments applicable under State and local
law, the Secretary, in consultation
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with Indian tribes and tribal organiza-
tions, shall develop minimum child
care standards (that appropriately re-
flect tribal needs and available re-
sources) that shall be applicable to In-
dian tribes and tribal organization re-
ceiving assistance under this sub-
chapter.’’; and
(iii) by striking subparagraphs (H)
and (I);
(B) in paragraph (3)—
(i) in subparagraph (C)—
(I) in the subparagraph heading,
by striking ‘‘AND TO INCREASE’’ and
all that follows through ‘‘CARE SERV-
ICES’’;
(II) by striking ‘‘25 percent’’ and
inserting ‘‘15 percent’’; and
(III) by striking ‘‘and to provide
before-’’ and all that follows through
‘‘658H)’’; and
(ii) by adding at the end thereof the
following new subparagraph:
‘‘(D) 
LIMITATION
ON
ADMINISTRATIVE
COSTS.—Not more than 5 percent of the aggre-
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gate amount of payments received under this
subchapter by a State in each fiscal year may be
expended for administrative costs, not including
direct service costs, incurred by such State to
carry out all its functions and duties under this
subchapter.’’; and
(C) by adding at the end thereof the follow-
ing new paragraph:
‘‘(6) SERVICES FOR THE WORKING POOR.—The
State plan shall described the manner in which serv-
ices will be provided to the working poor.’’.
(d) CLARIFICATION
OF ELIGIBLE CHILD.—Section
658P(4)(B) of the Child care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n(4)(B)) is amended by striking
‘‘75 percent’’ and inserting ‘‘100 percent’’.
(e) QUALITY.—Section 658G of the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C. 9858e) is
amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘A State’’ and inserting
‘‘(a) IN GENERAL.—A State’’;
(B) by striking ‘‘not less than 20 percent
of’’; and
(C) by striking ‘‘one or more of the follow-
ing’’ and inserting ‘‘carrying out the resource
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and referral activities described in subsection (b),
and for one or more of the activities described in
subsection (c).’’;
(2) in paragraph (1), by inserting before the pe-
riod the following: ‘‘, including providing comprehen-
sive consumer education to parents and the public, re-
ferrals that honor parental choice, and activities de-
signed to improve the quality and availability of
child care’’;
(3) by striking ‘‘(1) RESOURCE AND REFERRAL
PROGRAMS.—Operating’’ and inserting the following:
‘‘(b) RESOURCE AND REFERRAL PROGRAMS.—The ac-
tivities described in this subsection are operating’’;
(4) by redesignating paragraphs (2) through (5)
as paragraphs (1) through (4), respectively;
(5) by inserting before paragraph (1) (as so re-
designated) the following:
‘‘(c) OTHER ACTIVITIES.—The activities described in
this section are the following:’’; and
(6) by adding at the end thereof the following:
‘‘(5) BEFORE- AND AFTER-SCHOOL ACTIVITIES.—
Increasing the availability of before- and after-school
care.
‘‘(6) INFANT CARE.—Increasing the availability
of child care for infants under the age of 18 months.
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‘‘(7) NONTRADITIONAL WORK HOURS.—Increas-
ing the availability of child care between the hours of
5:00 p.m. and 8:00 a.m.
‘‘(d) NONDISCRIMINATION.—With respect to child care
providers that comply with applicable State law but which
are otherwise not required to be licensed by the State, the
State, in carrying out this section, may not discriminate
against such a provider if such provider desires to partici-
pate in resource and referral activities carried out under
subsection (b).’’.
(f) REPEAL.—Section 658H of the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C. 9858f) is
repealed.
(g) ENFORCEMENT.—Section 658I(b)(2) of the Child
Care and Development Block Grant Act of 1990 (42 U.S.C.
9858g(b)(2)) is amended—
(1) in the matter following clause (ii) of sub-
paragraph (A), by striking ‘‘finding and that’’ and
all that follows through the period and inserting
‘‘finding and may impose additional program re-
quirements on the State, including a requirement that
the State reimburse the Secretary for any funds that
were improperly expended for purposes prohibited or
not authorized by this subchapter, that the Secretary
deduct from the administrative portion of the State
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allotment for the following fiscal year an amount that
is less than or equal to any improperly expended
funds, or a combination of such options.’’; and
(2) by striking subparagraphs (B) and (C).
(h) REPORTS.—Section 658K of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858i)
is amended—
(1) in the section heading, by striking ‘‘AN-
NUAL REPORT’’ and inserting ‘‘REPORTS’’; and
(2) in subsection (a)—
(A) in the subsection heading, by striking
‘‘ANNUAL REPORT’’ and inserting ‘‘REPORTS’’;
(B) by striking ‘‘December 31, 1992, and
annually thereafter’’ and inserting ‘‘December
31, 1996, and every 2 years thereafter’’;
(C) in paragraph (2)—
(i) in subparagraph (A), by inserting
before the semicolon ‘‘and the types of child
care programs under which such assistance
is provided’’;
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and (C),
respectively;
(D) by striking paragraph (4);
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(E) by redesignating paragraphs (5) and
(6) as paragraphs (4) and (5), respectively;
(F) in paragraph (4), as so redesignated, by
striking ‘‘and’’ at the end thereof;
(G) in paragraph (5), as so redesignated, by
adding ‘‘and’’ at the end thereof; and
(H) by inserting after paragraph (5), as so
redesignated, the following new paragraph:
‘‘(6) describing the extent and manner to which
the resource and referral activities are being carried
out by the State;’’.
(i) REPORT
BY SECRETARY.—Section 658L of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858j) is amended—
(1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
(2) by striking ‘‘annually’’ and inserting ‘‘bi-an-
nually’’; and
(3) by striking ‘‘Education and Labor’’ and in-
serting ‘‘Economic and Educational Opportunities’’.
(j) ALLOTMENTS.—Section 658O of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858m)
is amended—
(1) in subsection (c), by adding at the end there-
of the following new paragraph:
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‘‘(6) CONSTRUCTION OR RENOVATION OF FACILI-
TIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An
Indian tribe or tribal organization may submit
to the Secretary a request to use amounts pro-
vided under this subsection for construction or
renovation purposes.
‘‘(B) DETERMINATION.—With respect to a
request submitted under subparagraph (A), and
except as provided in subparagraph (C), upon a
determination by the Secretary that adequate fa-
cilities are not otherwise available to an Indian
tribe or tribal organization to enable such tribe
or organization to carry out child care programs
in accordance with this subchapter, and that the
lack of such facilities will inhibit the operation
of such programs in the future, the Secretary
may permit the tribe or organization to use as-
sistance provided under this subsection to make
payments for the construction or renovation of
facilities that will be used to carry out such pro-
grams.
‘‘(C) LIMITATION.—The Secretary may not
permit an Indian tribe or tribal organization to
use amounts provided under this subsection for
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construction or renovation if such use will result
in a decrease in the level of child care services
provided by the tribe or organization as com-
pared to the level of such services provided by the
tribe or organization in the fiscal year preceding
the year for which the determination under sub-
paragraph (A) is being made.
‘‘(D) UNIFORM
PROCEDURES.—The Sec-
retary shall develop and implement uniform pro-
cedures for the solicitation and consideration of
requests under this paragraph.’’; and
(2) in subsection (e)—
(A) in paragraph (1), by striking ‘‘Any’’
and inserting ‘‘Except as provided in paragraph
(4), any’’; and
(B) by adding at the end thereof the follow-
ing new paragraph:
‘‘(4) INDIAN
TRIBES
OR
TRIBAL
ORGANIZA-
TIONS.—Any portion of a grant or contract made to
an Indian tribe or tribal organization under sub-
section (c) that the Secretary determines is not being
used in a manner consistent with the provision of this
subchapter in the period for with the grant or con-
tract is made available, shall be reallocated by the
Secretary to other tribes or organization that have
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submitted applications under subsection (c) in pro-
portion to the original allocations to such tribes or or-
ganization.’’.
(k) DEFINITIONS.—Section 658P of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858n) is amended—
(1) in paragraph (2), in the first sentence by in-
serting ‘‘or as a deposit for child care services if such
a deposit is required of other children being cared for
by the provider’’ after ‘‘child care services’’; and
(2) in paragraph (5)(B)—
(A) by inserting ‘‘great grandchild, sibling
(if the provider lives in a separate residence),’’
after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘ap-
plicable’’.
(l) APPLICATION OF SUBCHAPTER.—The Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858
et seq.) is amended by adding at the end thereof the follow-
ing new section:
‘‘SEC. 658T. APPLICATION TO OTHER PROGRAMS.
‘‘Notwithstanding any other provision of law, a State
that uses funding for child care services under any Federal
program shall ensure that activities carried out using such
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funds meet the requirements, standards, and criteria of this
subchapter, except for the quality set-aside provisions of sec-
tion 658G, and the regulations promulgated under this sub-
chapter. Such sums shall be administered through a uni-
form State plan. To the maximum extent practicable,
amounts provided to a State under such programs shall be
transferred to the lead agency and integrated into the pro-
gram established under this subchapter by the State.’’.
SEC. 603. REPEALS AND TECHNICAL AND CONFORMING
AMENDMENTS.
(a) STATE DEPENDENT CARE DEVELOPMENT GRANTS
ACT.—The State Dependent Care Development Grants Act
(42 U.S.C. 9871 et seq.) is repealed.
(b) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP
ASSISTANCE ACT OF 1985.—The Child Development Associ-
ate Scholarship Assistance Act of 1985 (42 U.S.C. 10901
et seq.) is repealed.
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) RECOMMENDED
LEGISLATION.—After con-
sultation with the appropriate committees of the Con-
gress and the Director of the Office of Management
and Budget, the Secretary of Health and Human
Services shall prepare and submit to the Congress a
legislative proposal in the form of an implementing
bill containing technical and conforming amendments
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to reflect the amendments and repeals made by this
title.
(2) SUBMISSION TO CONGRESS.—Not later than
6 months after the date of enactment of this title, the
Secretary of Health and Human Services shall sub-
mit the implementing bill referred to under para-
graph (1).
TITLE VII—PROTECTION OF
BATTERED INDIVIDUALS
SEC. 701. EXEMPTION OF BATTERED INDIVIDUALS FROM
CERTAIN REQUIREMENTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of, or amendment made by, this Act, the applicable
administering authority of any specified provision may ex-
empt from (or modify) the application of such provision
to any individual who was battered or subjected to extreme
cruelty if the physical, mental, or emotional well-being of
the individual would be endangered by the application of
such provision to such individual. The applicable admin-
istering authority may take into consideration the family
circumstances and the counseling and other supportive serv-
ice needs of the individual.
(b) SPECIFIED PROVISIONS.—For purposes of this sec-
tion, the term ‘‘specified provision’’ means any require-
ment, limitation, or penalty under any of the following:
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(1) Sections 404, 405 (a) and (b), 406 (b), (c),
and (d), 414(d), 453(c), 469A, and 1614(a)(1) of the
Social Security Act.
(2) Sections 5(i) and 6 (d), (j), and (n) of the
Food Stamp Act of 1977.
(3) Sections 501(a) and 502 of this Act.
(c) DEFINITIONS AND SPECIAL RULES.—For purposes
of this section—
(1) BATTERED
OR
SUBJECTED
TO
EXTREME
CRUELTY.—The term ‘‘battered or subjected to extreme
cruelty’’ includes, but is not limited to—
(A) physical acts resulting in, or threaten-
ing to result in, physical injury;
(B) sexual abuse, sexual activity involving
a dependent child, forcing the caretaker relative
of a dependent child to engage in nonconsensual
sexual acts or activities, or threats of or attempts
at physical or sexual abuse;
(C) mental abuse; and
(D) neglect or deprivation of medical care.
(2) CALCULATION OF PARTICIPATION RATES.—
An individual exempted from the work requirements
under section 404 of the Social Security Act by rea-
son of subsection (a) shall not be included for pur-
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poses of calculating the State’s participation rate
under such section.
TITLE VIII—ADOPTION
EXPENSES
SEC. 801. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.
(a) IN GENERAL.—Subpart C of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986 (relat-
ing to refundable credits) is amended by redesignating sec-
tion 35 as section 36 and by inserting after section 34 the
following new section:
‘‘SEC. 35. ADOPTION EXPENSES.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi-
vidual, there shall be allowed as a credit against the tax
imposed by this subtitle for the taxable year the amount
of the qualified adoption expenses paid or incurred by the
taxpayer during such taxable year.
‘‘(b) LIMITATIONS.—
‘‘(1) 
DOLLAR
LIMITATION.—The 
aggregate
amount of qualified adoption expenses which may be
taken into account under subsection (a) with respect
to the adoption of a child shall not exceed $5,000.
‘‘(2) INCOME LIMITATION.—The amount allow-
able as a credit under subsection (a) for any taxable
year shall be reduced (but not below zero) by an
amount which bears the same ratio to the amount so
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allowable (determined without regard to this para-
graph but with regard to paragraph (1)) as—
‘‘(A) the amount (if any) by which the tax-
payer’s adjusted gross income exceeds $60,000,
bears to
‘‘(B) $40,000.
‘‘(3) DENIAL OF DOUBLE BENEFIT.—
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under subsection (a) for any expense for
which a deduction or credit is allowable under
any other provision of this chapter.
‘‘(B) GRANTS.—No credit shall be allowed
under subsection (a) for any expense to the ex-
tent that funds for such expense are received
under any Federal, State, or local program.
‘‘(c) QUALIFIED ADOPTION EXPENSES.—For purposes
of this section, the term ‘qualified adoption expenses’ means
reasonable and necessary adoption fees, court costs, attorney
fees, and other expenses which are directly related to the
legal and finalized adoption of a child by the taxpayer and
which are not incurred in violation of State or Federal law
or in carrying out any surrogate parenting arrangement.
The term ‘qualified adoption expenses’ shall not include any
expenses in connection with the adoption by an individual
of a child who is the child of such individual’s spouse.
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‘‘(d) MARRIED COUPLES MUST FILE JOINT RE-
TURNS.—Rules similar to the rules of paragraphs (2), (3),
and (4) of section 21(e) shall apply for purposes of this sec-
tion.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting before
the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part IV
of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by striking the last item and
inserting the following:
‘‘Sec. 35. Adoption expenses.
‘‘Sec. 36. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1995.
SEC. 802. EXCLUSION OF ADOPTION ASSISTANCE.
(a) IN GENERAL.—Part III of subchapter B of chapter
1 of the Internal Revenue Code of 1986 is amended by redes-
ignating section 137 as section 138 and by inserting after
section 136 the following new section:
‘‘SEC. 137. ADOPTION ASSISTANCE.
‘‘(a) IN GENERAL.—Gross income of an employee does
not include employee adoption assistance benefits, or mili-
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tary adoption assistance benefits, received by the employee
with respect to the employee’s adoption of a child.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) EMPLOYEE
ADOPTION
ASSISTANCE
BENE-
FITS.—The term ‘employee adoption assistance bene-
fits’ means payment by an employer of qualified
adoption expenses with respect to an employee’s adop-
tion of a child, or reimbursement by the employer of
such qualified adoption expenses paid or incurred by
the employee in the taxable year.
‘‘(2) EMPLOYER
AND
EMPLOYEE.—The terms
‘employer’ and ‘employee’ have the respective mean-
ings given such terms by section 127(c).
‘‘(3) MILITARY
ADOPTION
ASSISTANCE
BENE-
FITS.—The term ‘military adoption assistance bene-
fits’ means benefits provided under section 1052 of
title 10, United States Code, or section 514 of title 14,
United States Code.
‘‘(4) QUALIFIED ADOPTION EXPENSES.—
‘‘(A) IN
GENERAL.—The term ‘qualified
adoption expenses’ means reasonable and nec-
essary adoption fees, court costs, attorney fees,
and other expenses—
‘‘(i) which are directly related to, and
the principal purpose of which is for, the
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legal and finalized adoption of an eligible
child by the taxpayer, and
‘‘(ii) which are not incurred in viola-
tion of State or Federal law or in carrying
out any surrogate parenting arrangement.
‘‘(B) ELIGIBLE CHILD.—The term ‘eligible
child’ means any individual—
‘‘(i) who has not attained age 18 as of
the time of the adoption, or
‘‘(ii) who is physically or mentally in-
capable of caring for himself.
‘‘(c) COORDINATION WITH OTHER PROVISIONS.—The
Secretary shall issue regulations to coordinate the applica-
tion of this section with the application of any other provi-
sion of this title which allows a credit or deduction with
respect to qualified adoption expenses.’’
(b) CLERICAL AMENDMENT.—The table of sections for
part III of subchapter B of chapter 1 of such Code is amend-
ed by striking the item relating to section 137 and inserting
the following new items:
‘‘Sec. 137. Adoption assistance.
‘‘Sec. 138. Cross references to other Acts.’’
(c) EFFECTIVE DATE.—The amendments made this
section shall apply to taxable years beginning after Decem-
ber 31, 1995.
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SEC. 803. WITHDRAWAL FROM IRA FOR ADOPTION EX-
PENSES.
(a) IN GENERAL.—Subsection (d) of section 408 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new paragraph:
‘‘(8) QUALIFIED ADOPTION EXPENSES.—
‘‘(A) IN GENERAL.—Any amount which is
paid or distributed out of an individual retire-
ment plan of the taxpayer, and which would (but
for this paragraph) be includible in gross in-
come, shall be excluded from gross income to the
extent that—
‘‘(i) such amount exceeds the sum of—
‘‘(I) the amount excludable under
section 137, and
‘‘(II) any amount allowable as a
credit under this title with respect to
qualified adoption expenses; and
‘‘(ii) such amount does not exceed the
qualified adoption expenses paid or in-
curred by the taxpayer during the taxable
year.
‘‘(B) QUALIFIED
ADOPTION
EXPENSES.—
For purposes of this paragraph, the term ‘quali-
fied adoption expenses’ has the meaning given
such term by section 137, except that such term
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shall not include any expense in connection with
the adoption by an individual of a child who is
the child of such individual’s spouse.’’
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1995.
TITLE IX—CHILD SUPPORT
SEC. 900. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, whenever in
this title an amendment is expressed in terms of an amend-
ment to or repeal of a section or other provision, the ref-
erence shall be considered to be made to that section or other
provision of the Social Security Act.
Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 901. 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 estab-
lishment of paternity or the establishment, modi-
fication, or enforcement of child support obliga-
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tions, as appropriate, under the plan with re-
spect 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 are provided under the State pro-
gram funded under part E of this title, or
(III) medical assistance is provided under
the State plan approved under title XIX,
unless the State agency administering the
plan determines (in accordance with para-
graph (29)) that it is against the best inter-
ests 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 estab-
lished 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 insert-
ing ‘‘provide that—’’;
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(B) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) services under the plan shall be made
available to nonresidents on the same terms as to
residents;’’;
(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 subparagraph with the left
margin of, the matter inserted by subpara-
graph (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 CEAS-
ING TO RECEIVE ASSISTANCE UNDER THE STATE PRO-
GRAM FUNDED UNDER PART A.—Section 454 (42 U.S.C.
654) is amended—
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(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the following
new paragraph:
‘‘(25) provide that when 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 no-
tice to the family and continue to provide such serv-
ices, subject to the same conditions and on the same
basis as in the case of individuals to whom services
are furnished under this section, except that an appli-
cation 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 amend-
ed 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)’’.
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
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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. 902. DISTRIBUTION OF CHILD SUPPORT COLLEC-
TIONS.
(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 AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from the State:
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‘‘(A) CURRENT SUPPORT PAYMENTS.—The
State shall, with regard to amounts collected
which represent amounts owed for the current
month, distribute the amounts so collected to the
family.
‘‘(B) 
PAYMENT
OF
ARREARAGES.—The
State shall, with regard to amounts collected
which exceed amounts owed for the current
month, distribute the amounts so collected as fol-
lows:
‘‘(i) DISTRIBUTION TO THE FAMILY TO
SATISFY
ARREARAGES
THAT
ACCRUED
AFTER
THE
FAMILY
RECEIVED
ASSIST-
ANCE.—The 
State 
shall 
distribute 
the
amount so collected to the family to the ex-
tent necessary to satisfy any support ar-
rearages with respect to the family that ac-
crued after the family stopped receiving as-
sistance from the State.
‘‘(ii) DISTRIBUTION TO THE FAMILY TO
SATISFY ARREARAGES THAT ACCRUED BE-
FORE OR WHILE THE FAMILY RECEIVED AS-
SISTANCE TO THE EXTENT PAYMENTS EX-
CEED ASSISTANCE RECEIVED.—In the case
of arrearages of support obligations with re-
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spect to the family that were assigned to the
State making or receiving the collection, as
a condition of receiving assistance from the
State, and which accrued before or while the
family received such assistance, the State
may retain all or a part of the State share
and if the State does so retain, shall retain
and pay to the Federal Government the
Federal share of amounts so collected, to the
extent the amount so retained does not ex-
ceed the amount of assistance provided to
the family by the State.
‘‘(iii) DISTRIBUTION OF THE REMAIN-
DER TO THE FAMILY.—To the extent that
neither clause (i) nor clause (ii) applies to
the amount so collected, the State shall dis-
tribute the amount to the family.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall distribute the amount so collected to the family.
‘‘(4) FAMILIES UNDER CERTAIN AGREEMENTS.—
In the case of a family receiving assistance from an
Indian tribe, distribute the amount so collected pursu-
ant to an agreement entered into pursuant to a State
plan under section 454(32).
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‘‘(b) TRANSITION RULE.—Any rights to support obli-
gations which were assigned to a State as a condition of
receiving assistance from the State under part A before the
effective date of the Work Opportunity Act of 1995 shall
remain assigned after such date.
‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from
the State’ means—
‘‘(A) assistance under the State program
funded under part A or under the State plan ap-
proved under part A of this title (as in effect be-
fore October 1, 1995); or
‘‘(B) benefits under the State plan approved
under part E of this title.
‘‘(2) FEDERAL SHARE.—The term ‘Federal share’
means, with respect to an amount collected by the
State to satisfy a support obligation owed to a family
for a time period—
‘‘(A) the greatest Federal medical assistance
percentage in effect for the State for fiscal year
1995 or any succeeding fiscal year; or
‘‘(B) if support is not owed to the family
for any month for which the family received aid
to families with dependent children under the
State plan approved under part A of this title
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(as in effect before October 1, 1995), the Federal
reimbursement percentage for the fiscal year in
which the time period occurs.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT-
AGE.—The term ‘Federal medical assistance percent-
age’ means—
‘‘(A) the Federal medical assistance percent-
age (as defined in section 1905(b)) in the case of
any State for which subparagraph (B) does not
apply; or
‘‘(B) the Federal medical assistance percent-
age (as defined in section 1118), in the case of
Puerto Rico, the Virgin Islands, Guam, and
American Samoa.
‘‘(4) FEDERAL REIMBURSEMENT PERCENTAGE.—
The term ‘Federal reimbursement percentage’ means,
with respect to a fiscal year—
‘‘(A) the total amount paid to the State
under section 403 for the fiscal year; divided by
‘‘(B) the total amount expended by the
State to carry out the State program under part
A during the fiscal year.
‘‘(5) STATE
SHARE.—The term ‘State share’
means 100 percent minus the Federal share.’’.
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(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) CLERICAL AMENDMENTS.—Section 454 (42 U.S.C.
654) is amended—
(1) in paragraph (11)—
(A) by striking ‘‘(11)’’ and inserting
‘‘(11)(A)’’; and
(B) by inserting after the semicolon ‘‘and’’;
and
(2) by redesignating paragraph (12) as subpara-
graph (B) of paragraph (11).
(d) EFFECTIVE DATE.—
(1) GENERAL
RULE.—Except as provided in
paragraphs (2) and (3), the amendment made by sub-
section (a) shall become effective on October 1, 1999.
(2) EARLIER EFFECTIVE DATE FOR RULES RE-
LATING TO DISTRIBUTION OF SUPPORT COLLECTED
FOR
FAMILIES
RECEIVING
ASSISTANCE.—Section
457(a)(1) of the Social Security Act, as added by the
amendment made by subsection (a), shall become ef-
fective on October 1, 1995.
(3) SPECIAL RULE.—A State may elect to have
the amendment made by subsection (a) become effec-
tive on a date earlier than October 1, 1999, which
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date shall coincide with the operation of the single
statewide automated data processing and information
retrieval system required by section 454A of the So-
cial Security Act (as added by section 944(a)(2)) and
the State disbursement unit required by section 454B
of the Social Security Act (as added by section
912(b)), and the existence of State requirements for
assignment of support as a condition of eligibility for
assistance under part A of the Social Security Act (as
added by title I).
(4) CLERICAL AMENDMENTS.—The amendments
made by subsection (b) shall become effective on Octo-
ber 1, 1995.
SEC. 903. RIGHTS TO NOTIFICATION AND HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 902(b), is amended by inserting after
paragraph (11) the following new paragraph:
‘‘(12) establish procedures to provide that—
‘‘(A) individuals who are applying for or
receiving services under this part, or are parties
to cases in which services are being provided
under this part—
‘‘(i) receive notice of all proceedings in
which support obligations might be estab-
lished or modified; and
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‘‘(ii) receive a copy of any order estab-
lishing or modifying a child support obliga-
tion, or (in the case of a petition for modi-
fication) a notice of determination that
there should be no change in the amount of
the child support award, within 14 days
after issuance of such order or determina-
tion; and
‘‘(B) individuals applying for or receiving
services under this part have access to a fair
hearing or other formal complaint procedure that
meets standards established by the Secretary and
ensures prompt consideration and resolution of
complaints (but the resort to such procedure shall
not stay the enforcement of any support order);’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on October 1, 1997.
SEC. 904. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 901(b), is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
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(3) by adding after paragraph (25) the following
new paragraph:
‘‘(26) will have in effect safeguards, applicable to
all confidential 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 in-
formation on the whereabouts of 1 party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party if the State has reason to believe that
the release of the information may result in
physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on October 1, 1997.
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Subtitle B—Locate and Case
Tracking
SEC. 911. STATE CASE REGISTRY.
Section 454A, as added by section 944(a)(2), is amend-
ed by adding at the end the following new subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system re-
quired by this section shall include a registry (which
shall be known as the ‘State case registry’) that con-
tains 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 in-
formation 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 identification numbers, dates of
birth, and case identification numbers), and contain
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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 peri-
odic) support owed under the order, and other
amounts (including arrearages, interest or late
payment penalties, and fees) due or overdue
under the order;
‘‘(B) any amount described in subpara-
graph (A) that has been collected;
‘‘(C) the distribution of such collected
amounts;
‘‘(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 operating the automated system required by
this section shall promptly establish and maintain,
and regularly monitor, case records in the State case
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registry with respect to which services are being pro-
vided 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 Federal, State, or local sources of informa-
tion;
‘‘(C) information on support collections and
distributions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLO-
SURES OF INFORMATION.—The State shall use the auto-
mated system required by this section to extract informa-
tion 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 comparison serv-
ices, 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 informa-
tion comparison activities shall include the following:
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‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP-
PORT ORDERS.—Furnishing to the Federal Case Reg-
istry of Child Support Orders established under sec-
tion 453(h) (and update as necessary, with informa-
tion including notice of expiration of orders) the min-
imum 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.—Ex-
changing information with the Federal Parent Loca-
tor Service for the purposes specified in section 453.
‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MED-
ICAID
AGENCIES.—Exchanging 
information 
with
State agencies (of the State and of other States) ad-
ministering programs funded under part A, programs
operated under State plans under title XIX, 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
COMPARISONS.—Exchanging information with other
agencies of the State, agencies of other States, and
interstate information networks, as necessary and ap-
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propriate to carry out (or assist other States to carry
out) the purposes of this part.’’.
SEC. 912. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 901(b) and 904(a), is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the following
new paragraph:
‘‘(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) pri-
vate or governmental contractors reporting di-
rectly to the State agency, to—
‘‘(i) provide automated monitoring
and enforcement of support collections
through the unit (including carrying out
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the automated data processing responsibil-
ities described in section 454A(g)); and
‘‘(ii) take the actions described in sec-
tion 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 944(a)(2), is amended by inserting after section
454A the following new section:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN GENERAL.—In order for a State to meet
the requirements of this section, the State agency
must establish and operate a unit (which shall be
known as the ‘State disbursement unit’) for the collec-
tion and disbursement of payments under support or-
ders 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 agen-
cy; and
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‘‘(B) in coordination with the automated
system established by the State pursuant to sec-
tion 454A.
‘‘(3) 
LINKING
OF
LOCAL
DISBURSEMENT
UNITS.—The State disbursement unit may be estab-
lished by linking local disbursement units through an
automated information network, subject to this sec-
tion. The Secretary must agree that the system will
not cost more nor take more time to establish or oper-
ate than a centralized system. In addition, employers
shall be given 1 location to which income withholding
is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disburse-
ment unit shall use automated procedures, electronic proc-
esses, and computer-driven technology to the maximum ex-
tent feasible, efficient, and economical, for the collection and
disbursement of support payments, including procedures—
‘‘(1) for receipt of payments from parents, em-
ployers, 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;
‘‘(3) to ensure prompt disbursement of the custo-
dial parent’s share of any payment; and
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‘‘(4) to furnish to any parent, upon request,
timely information on the current status of support
payments under an order requiring payments to be
made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the State disbursement unit shall distribute
all amounts payable under section 457(a) within 2
business days after receipt from the employer or other
source of periodic income, if sufficient information
identifying the payee is provided.
‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—
The State disbursement unit may delay the distribu-
tion of collections toward arrearages until the resolu-
tion of any timely appeal with respect to such arrear-
ages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this sec-
tion, the term ‘business day’ means a day on which State
offices are open for regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 944(a)(2) and as amended by section 911,
is amended by adding at the end the following new sub-
section:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
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‘‘(1) IN GENERAL.—The State shall use the auto-
mated system required by this section, to the maxi-
mum extent feasible, to assist and facilitate the collec-
tion and disbursement of support payments through
the State disbursement unit operated under section
454B, through the performance of functions, includ-
ing, at a minimum—
‘‘(A) transmission of orders and notices to
employers (and other debtors) for the withholding
of wages and other income—
‘‘(i) within 2 business days after re-
ceipt from a court, another State, an em-
ployer, the Federal Parent Locator Service,
or another source recognized by the State of
notice of, and the income source subject to,
such withholding; and
‘‘(ii) using uniform formats prescribed
by the Secretary;
‘‘(B) ongoing monitoring to promptly iden-
tify failures to make timely payment of support;
and
‘‘(C) automatic use of enforcement proce-
dures (including procedures authorized pursuant
to section 466(c)) where payments are not timely
made.
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‘‘(2) BUSINESS DAY DEFINED.—As used in para-
graph (1), the term ‘business day’ means a day on
which State offices are open for regular business.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall become effective on October 1, 1998.
SEC. 913. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 901(b), 904(a) and
912(a), is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(26);
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and
(3) by adding after paragraph (27) the following
new paragraph:
‘‘(28) provide that, on and after October 1, 1997,
the State will operate a State Directory of New Hires
in accordance with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting after
section 453 the following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Not later than October 1,
1997, each State shall establish an automated direc-
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tory (to be known as the ‘State Directory of New
Hires’) which shall contain information supplied in
accordance with subsection (b) by employers on each
newly hired employee.
‘‘(2) DEFINITIONS.—As used in this section:
‘‘(A) EMPLOYEE.—The term ‘employee’—
‘‘(i) means an individual who is an
employee within the meaning of chapter 24
of the Internal Revenue Code of 1986; and
‘‘(ii) does not include an employee of a
Federal or State agency performing intel-
ligence or counterintelligence functions, if
the head of such agency has determined that
reporting pursuant to paragraph (1) with
respect to the employee could endanger the
safety of the employee or compromise an on-
going investigation or intelligence mission.
‘‘(B) EMPLOYER.—The term ‘employer’ in-
cludes—
‘‘(i) any governmental entity, and
‘‘(ii) any labor organization.
‘‘(C) LABOR
ORGANIZATION.—The term
‘labor organization’ shall have the meaning given
such term in section 2(5) of the National Labor
Relations Act, and includes any entity (also
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known as a ‘hiring hall’) which is used by the
organization and an employer to carry out re-
quirements described in section 8(f)(3) of such
Act of an agreement between the organization
and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), each employer shall
furnish to the Directory of New Hires of the
State in which a newly hired employee works, a
report that contains the name, address, and so-
cial security number of the employee, and the
name of, and identifying number assigned under
section 6109 of the Internal Revenue Code of
1986 to, the employer.
‘‘(B) MULTISTATE
EMPLOYERS.—An em-
ployer that has employees who are employed in
2 or more States and that transmits reports
magnetically or electronically may comply with
subparagraph (A) by designating 1 State in
which such employer has employees to which it
will transmit the report described in subpara-
graph (A), and transmitting such report to such
State. Any employer that transmits reports pur-
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suant to this subparagraph shall notify the Sec-
retary in writing as to which State such em-
ployer designates for the purpose of sending re-
ports.
‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—
Any department, agency, or instrumentality of
the United States shall comply with subpara-
graph (A) by transmitting the report described
in subparagraph (A) to the National Directory
of New Hires established pursuant to section
453.
‘‘(2) TIMING OF REPORT.—The report required
by paragraph (1) with respect to an employee shall
be made not later than the later of—
‘‘(A) 30 days after the date the employer
hires the employee; or
‘‘(B) in the case of an employer that reports
by magnetic or electronic means, the 1st business
day of the week following the date on which the
employee 1st receives wages or other compensa-
tion from the employer.
‘‘(c) REPORTING FORMAT AND METHOD.—Each report
required 
by 
subsection 
(b) 
shall 
be 
made 
on 
a
W–4 form and may be transmitted by 1st class mail, mag-
netically, or electronically.
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‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EM-
PLOYERS.—The State shall have the option to set a State
civil money penalty which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the
result of a conspiracy between the employer and the
employee to not supply the required report or to sup-
ply a false or incomplete report.
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Informa-
tion shall be entered into the data base maintained by the
State Directory of New Hires within 5 business days of re-
ceipt from an employer pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, an agency designated by the State shall, di-
rectly or by contract, conduct automated comparisons
of the social security numbers reported by employers
pursuant to subsection (b) and the social security
numbers appearing in the records of the State case
registry for cases being enforced under the State plan.
‘‘(2) NOTICE OF MATCH.—When an information
comparison conducted under paragraph (1) reveals a
match with respect to the social security number of an
individual required to provide support under a sup-
port order, the State Directory of New Hires shall
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provide the agency administering the State plan ap-
proved under this part of the appropriate State with
the name, address, and social security number of the
employee to whom the social security number is as-
signed, and the name of, and identifying number as-
signed under section 6109 of the Internal Revenue
Code of 1986 to, the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NO-
TICES TO EMPLOYERS.—Within 2 business days after
the date information regarding a newly hired em-
ployee is entered into the State Directory of New
Hires, the State agency enforcing the employee’s child
support obligation shall transmit a notice to the em-
ployer of the employee directing the employer to with-
hold from the wages of the employee an amount equal
to the monthly (or other periodic) child support obli-
gation of the employee, unless the employee’s wages
are not subject to withholding pursuant to section
466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC-
TORY OF NEW HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 2
business days after the date information regard-
ing a newly hired employee is entered into the
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State Directory of New Hires, the State Direc-
tory of New Hires shall furnish the information
to the National Directory of New Hires.
‘‘(B) WAGE
AND
UNEMPLOYMENT
COM-
PENSATION INFORMATION.—The State Directory
of New Hires shall, on a quarterly basis, furnish
to the National Directory of New Hires extracts
of the reports required under section 303(a)(6) to
be made to the Secretary of Labor concerning the
wages and unemployment compensation paid to
individuals, by such dates, in such format, and
containing such information as the Secretary of
Health and Human Services shall specify in reg-
ulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this
subsection, the term ‘business day’ means a day on
which State offices are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—
The agency administering the State plan approved
under this part shall use information received pursu-
ant to subsection (f)(2) to locate individuals for pur-
poses of establishing paternity and establishing, modi-
fying, and enforcing child support obligations.
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‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN
PROGRAMS.—A State agency responsible for admin-
istering a program specified in section 1137(b) shall
have access to information reported by employers pur-
suant to subsection (b) of this section for purposes of
verifying eligibility for the program.
‘‘(3) ADMINISTRATION
OF
EMPLOYMENT
SECU-
RITY AND WORKERS’ COMPENSATION.—State agencies
operating employment security and workers’ com-
pensation programs shall have access to information
reported by employers pursuant to subsection (b) for
the purposes of administering such programs.’’.
(c) 
QUARTERLY
WAGE
REPORTING.—Section
1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local gov-
ernmental entities)’’ after ‘‘employers’’; and
(2) by inserting ‘‘, and except that no report
shall be filed with respect to an employee of a State
agency performing intelligence or counterintelligence
functions, if the head of such agency has determined
that filing such a report could endanger the safety of
the employee or compromise an ongoing investigation
or intelligence mission’’ after ‘‘paragraph (2)’’.
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SEC. 914. AMENDMENTS CONCERNING INCOME WITHHOLD-
ING.
(a) MANDATORY INCOME WITHHOLDING.—
(1) IN GENERAL.—Section 466(a)(1) (42 U.S.C.
666(a)(1)) is amended to read as follows:
‘‘(1)(A) Procedures described in subsection (b)
for the withholding from income of amounts payable
as support in cases subject to enforcement under the
State plan.
‘‘(B) Procedures under which the wages of a per-
son with a support obligation imposed by a support
order issued (or modified) in the State before October
1, 1996, if not otherwise subject to withholding under
subsection (b), shall become subject to withholding as
provided in subsection (b) if arrearages occur, without
the need for a judicial or administrative hearing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(b) (42 U.S.C. 666(b)) is
amended in the matter preceding paragraph (1),
by striking ‘‘subsection (a)(1)’’ and inserting
‘‘subsection (a)(1)(A)’’.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4))
is amended to read as follows:
‘‘(4)(A) Such withholding must be carried out in
full compliance with all procedural due process re-
quirements of the State, and the State must send no-
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tice to each absent parent to whom paragraph (1) ap-
plies—
‘‘(i) that the withholding has commenced;
and
‘‘(ii) of the procedures to follow if the absent
parent desires to contest such withholding on the
grounds that the withholding or the amount
withheld is improper due to a mistake of fact.
‘‘(B) The notice under subparagraph (A) shall
include the information provided to the employer
under paragraph (6)(A).’’.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5))
is amended by striking all that follows ‘‘adminis-
tered by’’ and inserting ‘‘the State through the
State disbursement unit established pursuant to
section 454B, in accordance with the require-
ments of section 454B.’’.
(D) 
Section 
466(b)(6)(A) 
(42 
U.S.C.
666(b)(6)(A)) is amended—
(i) in clause (i), by striking ‘‘to the ap-
propriate agency’’ and all that follows and
inserting ‘‘to the State disbursement unit
within 2 business days after the date the
amount would (but for this subsection) have
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been paid or credited to the employee, for
distribution in accordance with this part.’’;
(ii) in clause (ii), by inserting ‘‘be in
a standard format prescribed by the Sec-
retary, and’’ after ‘‘shall’’; and
(iii) by adding at the end the following
new clause:
‘‘(iii) As used in this subparagraph, the term
‘business day’ means a day on which State offices are
open for regular business.’’.
(E) 
Section 
466(b)(6)(D) 
(42 
U.S.C.
666(b)(6)(D)) is amended by striking ‘‘any em-
ployer’’ and all that follows and inserting ‘‘any
employer who—
‘‘(i) discharges from employment, refuses to
employ, or takes disciplinary action against any
absent parent subject to wage withholding re-
quired by this subsection because of the existence
of such withholding and the obligations or addi-
tional obligations which it imposes upon the em-
ployer; or
‘‘(ii) fails to withhold support from wages,
or to pay such amounts to the State disburse-
ment unit in accordance with this subsection.’’.
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(F) Section 466(b) (42 U.S.C. 666(b)) is
amended by adding at the end the following new
paragraph:
‘‘(11) Procedures under which the agency admin-
istering the State plan approved under this part may
execute a withholding order through electronic means
and without advance notice to the obligor.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
SEC. 915. LOCATOR INFORMATION FROM INTERSTATE NET-
WORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by add-
ing at the end the following new paragraph:
‘‘(12) Procedures to ensure that all Federal and
State agencies conducting activities under this part
have access to any system used by the State to locate
an individual for purposes relating to motor vehicles
or law enforcement.’’.
SEC. 916. EXPANSION OF THE FEDERAL PARENT LOCATOR
SERVICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting ‘‘, for the purpose of
establishing 
parentage, 
establishing, 
setting 
the
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amount of, modifying, or enforcing child support obli-
gations, or enforcing child visitation orders—
‘‘(1) information on, or facilitating the discovery
of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support or provide child visitation rights;
‘‘(B) against whom such an obligation is
sought;
‘‘(C) to whom such an obligation is owed,
including the individual’s social security number (or
numbers), most recent address, and the name, address,
and employer identification number of the individ-
ual’s employer;
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or to,
any such individual.’’; and
(2) in subsection (b), in the matter preceding
paragraph (1), by striking ‘‘social security’’ and all
that follows through ‘‘absent parent’’ and inserting
‘‘information described in subsection (a)’’.
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(b) AUTHORIZED PERSON FOR INFORMATION REGARD-
ING
VISITATION
RIGHTS.—Section 453(c) (42 U.S.C.
653(c)) is amended—
(1) in paragraph (1), by striking ‘‘support’’ and
inserting ‘‘support or to seek to enforce orders provid-
ing child visitation rights’’;
(2) in paragraph (2), by striking ‘‘, or any agent
of such court; and’’ and inserting ‘‘or to issue an
order against a resident parent for visitation rights,
or any agent of such court;’’;
(3) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and
(4) by adding at the end the following new para-
graph:
‘‘(4) the absent parent, only with regard to a
court order against a resident parent for child visita-
tion rights.’’.
(c) REIMBURSEMENT FOR INFORMATION FROM FED-
ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2))
is amended in the 4th sentence by inserting ‘‘in an amount
which the Secretary determines to be reasonable payment
for the information exchange (which amount shall not in-
clude payment for the costs of obtaining, compiling, or
maintaining the information)’’ before the period.
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(d) REIMBURSEMENT FOR REPORTS BY STATE AGEN-
CIES.—Section 453 (42 U.S.C. 653) is amended by adding
at the end the following new subsection:
‘‘(g) The Secretary may reimburse Federal and State
agencies for the costs incurred by such entities in furnishing
information requested by the Secretary under this section
in an amount which the Secretary determines to be reason-
able payment for the information exchange (which amount
shall not include payment for the costs of obtaining, compil-
ing, or maintaining the information).’’.
(e) TECHNICAL AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),
653(b), 663(a), 663(e), and 663(f)) are each amended
by inserting ‘‘Federal’’ before ‘‘Parent’’ each place
such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653),
as amended by subsection (d) of this section, is amended
by adding at the end the following new subsection:
‘‘(h)(1) Not later than October 1, 1998, in order to as-
sist States in administering programs under State plans
approved under this part and programs funded under part
A, and for the other purposes specified in this section, the
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Secretary shall establish and maintain in the Federal Par-
ent Locator Service an automated registry (which shall be
known as the ‘Federal Case Registry of Child Support Or-
ders’), which shall contain abstracts of support orders and
other information described in paragraph (2) with respect
to each case in each State case registry maintained pursu-
ant to section 454A(e), as furnished (and regularly up-
dated), pursuant to section 454A(f), by State agencies ad-
ministering programs under this part.
‘‘(2) The information referred to in paragraph (1)
with respect to a case shall be such information as the Sec-
retary may specify in regulations (including the names, so-
cial security numbers or other uniform identification num-
bers, and State case identification numbers) to identify the
individuals who owe or are owed support (or with respect
to or on behalf of whom support obligations are sought to
be established), and the State or States which have the case.
‘‘(i)(1) In order to assist States in administering pro-
grams under State plans approved under this part and pro-
grams funded under part A, and for the other purposes spec-
ified in this section, the Secretary shall, not later than Octo-
ber 1, 1996, establish and maintain in the Federal Parent
Locator Service an automated directory to be known as the
National Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
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‘‘(2) Information shall be entered into the data base
maintained by the National Directory of New Hires within
2 business days of receipt pursuant to section 453A(g)(2).
‘‘(3) The Secretary of the Treasury shall have access
to the information in the National Directory of New Hires
for purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the
earned income tax credit under section 3507 of such Code,
and verifying a claim with respect to employment in a tax
return.
‘‘(4) The Secretary shall maintain within the National
Directory of New Hires a list of multistate employers that
report information regarding newly hired employees pursu-
ant to section 453A(b)(1)(B), and the State which each such
employer has designated to receive such information.
‘‘(j)(1)(A) The Secretary shall transmit information
on individuals and employers maintained under this sec-
tion to the Social Security Administration to the extent nec-
essary for verification in accordance with subparagraph
(B).
‘‘(B) The Social Security Administration shall verify
the accuracy of, correct, or supply to the extent possible,
and report to the Secretary, the following information sup-
plied by the Secretary pursuant to subparagraph (A):
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‘‘(i) The name, social security number, and birth
date of each such individual.
‘‘(ii) The employer identification number of each
such employer.
‘‘(2) For the purpose of locating individuals in a pa-
ternity establishment case or a case involving the establish-
ment, modification, or enforcement of a support order, the
Secretary shall—
‘‘(A) compare information in the National Di-
rectory of New Hires against information in the sup-
port case abstracts in the Federal Case Registry of
Child Support Orders not less often than every 2
business days; and
‘‘(B) within 2 such days after such a comparison
reveals a match with respect to an individual, report
the information to the State agency responsible for the
case.
‘‘(3) To the extent and with the frequency that the Sec-
retary determines to be effective in assisting States to carry
out their responsibilities under programs operated under
this part and programs funded under part A, the Secretary
shall—
‘‘(A) compare the information in each compo-
nent of the Federal Parent Locator Service main-
tained under this section against the information in
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each other such component (other than the compari-
son required by paragraph (2)), and report instances
in which such a comparison reveals a match with re-
spect to an individual to State agencies operating
such programs; and
‘‘(B) disclose information in such registries to
such State agencies.
‘‘(4) The National Directory of New Hires shall pro-
vide the Commissioner of Social Security with all informa-
tion in the National Directory, which shall be used to deter-
mine the accuracy of payments under the supplemental se-
curity income program under title XVI and in connection
with benefits under title II.
‘‘(5) The Secretary may provide access to information
reported by employers pursuant to section 453A(b) for re-
search purposes found by the Secretary to be likely to con-
tribute to achieving the purposes of part A or this part,
but without personal identifiers.
‘‘(k)(1) The Secretary shall reimburse the Commis-
sioner of Social Security, at a rate negotiated between the
Secretary and the Commissioner, for the costs incurred by
the Commissioner in performing the verification services de-
scribed in subsection (j).
‘‘(2) The Secretary shall reimburse costs incurred by
State directories of new hires in furnishing information as
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required by subsection (j)(3), at rates which the Secretary
determines to be reasonable (which rates shall not include
payment for the costs of obtaining, compiling, or maintain-
ing such information).
‘‘(3) A State or Federal agency that receives informa-
tion from the Secretary pursuant to this section shall reim-
burse the Secretary for costs incurred by the Secretary in
furnishing the information, at rates which the Secretary de-
termines to be reasonable (which rates shall include pay-
ment for the costs of obtaining, verifying, maintaining, and
comparing the information).
‘‘(l) Information in the Federal Parent Locator Serv-
ice, and information resulting from comparisons using such
information, shall not be used or disclosed except as ex-
pressly provided in this section, subject to section 6103 of
the Internal Revenue Code of 1986.
‘‘(m) The Secretary shall establish and implement safe-
guards with respect to the entities established under this
section designed to—
‘‘(1) ensure the accuracy and completeness of in-
formation in the Federal Parent Locator Service; and
‘‘(2) restrict access to confidential information in
the Federal Parent Locator Service to authorized per-
sons, and restrict use of such information to author-
ized purposes.
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‘‘(n) Each department, agency, and instrumentality of
the United States shall on a quarterly basis report to the
Federal Parent Locator Service the name and social secu-
rity number of each employee and the wages paid to the
employee during the previous quarter, except that no report
shall be filed with respect to an employee of a department,
agency, or instrumentality performing intelligence or coun-
terintelligence functions, if the head of such department,
agency, or instrumentality has determined that filing such
a report could endanger the safety of the employee or com-
promise an ongoing investigation or intelligence mission.’’.
(f) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY
ACT.—Section 
454(8)(B) 
(42 
U.S.C.
654(8)(B)) is amended to read as follows:
‘‘(B) the Federal Parent Locator Service es-
tablished under section 453;’’.
(2) TO
FEDERAL
UNEMPLOYMENT
TAX
ACT.—
Section 3304(a)(16) of the Internal Revenue Code of
1986 is amended—
(A) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place such term ap-
pears and inserting ‘‘Secretary of Health and
Human Services’’;
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(B) in subparagraph (B), by striking ‘‘such
information’’ and all that follows and inserting
‘‘information furnished under subparagraph (A)
or (B) is used only for the purposes authorized
under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (A);
(D) by redesignating subparagraph (B) as
subparagraph (C); and
(E) by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) wage and unemployment compensa-
tion information contained in the records of such
agency shall be furnished to the Secretary of
Health and Human Services (in accordance with
regulations promulgated by such Secretary) as
necessary for the purposes of the National Direc-
tory of New Hires established under section
453(i) of the Social Security Act, and’’.
(3) TO STATE GRANT PROGRAM UNDER TITLE III
OF THE SOCIAL SECURITY ACT.—Subsection (h) of sec-
tion 303 (42 U.S.C. 503) is amended to read as fol-
lows:
‘‘(h)(1) The State agency charged with the administra-
tion of the State law shall, on a reimbursable basis—
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‘‘(A) disclose quarterly, to the Secretary of
Health and Human Services wage and claim infor-
mation, as required pursuant to section 453(i)(1),
contained in the records of such agency;
‘‘(B) ensure that information provided pursuant
to subparagraph (A) meets such standards relating to
correctness and verification as the Secretary of Health
and Human Services, with the concurrence of the Sec-
retary of Labor, may find necessary; and
‘‘(C) establish such safeguards as the Secretary of
Labor determines are necessary to insure that infor-
mation disclosed under subparagraph (A) is used only
for purposes of section 453(i)(1) in carrying out the
child support enforcement program under title IV.
‘‘(2) Whenever the Secretary of Labor, after reasonable
notice and opportunity for hearing to the State agency
charged with the administration of the State law, finds that
there is a failure to comply substantially with the require-
ments of paragraph (1), the Secretary of Labor shall notify
such State agency that further payments will not be made
to the State until the Secretary of Labor is satisfied that
there is no longer any such failure. Until the Secretary of
Labor is so satisfied, the Secretary shall make no future
certification to the Secretary of the Treasury with respect
to the State.
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‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘wage information’ means infor-
mation regarding wages paid to an individual, the
social security account number of such individual,
and the name, address, State, and the Federal em-
ployer identification number of the employer paying
such wages to such individual; and
‘‘(B) the term ‘claim information’ means infor-
mation regarding whether an individual is receiving,
has received, or has made application for, unemploy-
ment compensation, the amount of any such com-
pensation being received (or to be received by such in-
dividual), and the individual’s current (or most re-
cent) home address.’’.
SEC. 917. COLLECTION AND USE OF SOCIAL SECURITY NUM-
BERS FOR USE IN CHILD SUPPORT ENFORCE-
MENT.
(a) STATE LAW REQUIREMENT.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 915, is amended by
adding at the end the following new paragraph:
‘‘(13) Procedures requiring that the social secu-
rity number of—
‘‘(A) any applicant for a professional li-
cense, commercial driver’s license, occupational
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license, or marriage license be recorded on the
application;
‘‘(B) any individual who is subject to a di-
vorce decree, support order, or paternity deter-
mination or acknowledgment be placed in the
records relating to the matter; and
‘‘(C) any individual who has died be placed
in the records relating to the death and be re-
corded on the death certificate.
For purposes of subparagraph (A), if a State allows
the use of a number other than the social security
number, the State shall so advise any applicants.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by sec-
tion 321(a)(9) of the Social Security Independence and
Program Improvements Act of 1994, is amended—
(1) in clause (i), by striking ‘‘may require’’ and
inserting ‘‘shall require’’;
(2) in clause (ii), by inserting after the 1st sen-
tence the following: ‘‘In the administration of any
law involving the issuance of a marriage certificate or
license, each State shall require each party named in
the certificate or license to furnish to the State (or po-
litical subdivision thereof), or any State agency hav-
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ing administrative responsibility for the law involved,
the social security number of the party.’’;
(3) in clause (ii), by inserting ‘‘or marriage cer-
tificate’’ after ‘‘Such numbers shall not be recorded on
the birth certificate’’.
(4) in clause (vi), by striking ‘‘may’’ and insert-
ing ‘‘shall’’; and
(5) by adding at the end the following new
clauses:
‘‘(x) An agency of a State (or a politi-
cal subdivision thereof) charged with the ad-
ministration of any law concerning the is-
suance or renewal of a license, certificate,
permit, or other authorization to engage in
a profession, an occupation, or a commer-
cial activity shall require all applicants for
issuance or renewal of the license, certifi-
cate, permit, or other authorization to pro-
vide the applicant’s social security number
to the agency for the purpose of administer-
ing such laws, and for the purpose of re-
sponding to requests for information from
an agency operating pursuant to part D of
title IV.
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‘‘(xi) All divorce decrees, support or-
ders, and paternity determinations issued,
and all paternity acknowledgments made,
in each State shall include the social secu-
rity number of each party to the decree,
order, determination, or acknowledgement
in the records relating to the matter, for the
purpose of responding to requests for infor-
mation from an agency operating pursuant
to part D of title IV.’’.
Subtitle C—Streamlining and
Uniformity of Procedures
SEC. 921. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding
at the end the following new subsection:
‘‘(f)(1) In order to satisfy section 454(20)(A) on or
after January 1, 1997, each State must have in effect the
Uniform Interstate Family Support Act, as approved by
the National Conference of Commissioners on Uniform
State Laws in August 1992 (with the modifications and
additions specified in this subsection), and the procedures
required to implement such Act.
‘‘(2) The State law enacted pursuant to paragraph (1)
may be applied to any case involving an order which is
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established or modified in a State and which is sought to
be modified or enforced in another State.
‘‘(3) The State law enacted pursuant to paragraph (1)
of this subsection shall contain the following provision in
lieu of section 611(a)(1) of the Uniform Interstate Family
Support Act:
‘‘ ‘(1) the following requirements are met:
‘‘ ‘(i) the child, the individual obligee, and
the obligor—
‘‘ ‘(I) do not reside in the issuing State;
and
‘‘ ‘(II) either reside in this State or are
subject to the jurisdiction of this State pur-
suant to section 201; and
‘‘ ‘(ii) in any case where another State is
exercising or seeks to exercise jurisdiction to
modify the order, the conditions of section 204
are met to the same extent as required for pro-
ceedings to establish orders; or’.
‘‘(4) The State law enacted pursuant to paragraph (1)
shall provide that, in any proceeding subject to the law,
process may be served (and proved) upon persons in the
State by any means acceptable in any State which is the
initiating or responding State in the proceeding.’’.
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SEC. 922. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR
CHILD SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is
amended—
(1) in subsection (a)(2), by striking ‘‘subsection
(e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;
(2) in subsection (b), by inserting after the 2nd
undesignated paragraph the following:
‘‘ ‘child’s home State’ means the State in which
a child lived with a parent or a person acting as par-
ent for at least 6 consecutive months immediately pre-
ceding the time of filing of a petition or comparable
pleading for support and, if a child is less than 6
months old, the State in which the child lived from
birth with any of them. A period of temporary ab-
sence of any of them is counted as part of the 6-month
period.’’;
(3) in subsection (c), by inserting ‘‘by a court of
a State’’ before ‘‘is made’’;
(4) in subsection (c)(1), by inserting ‘‘and sub-
sections (e), (f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’; and
(B) by striking ‘‘subsection (e)’’ and insert-
ing ‘‘subsections (e) and (f)’’;
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(6) in subsection (e), by striking ‘‘make a modi-
fication of a child support order with respect to a
child that is made’’ and inserting ‘‘modify a child
support order issued’’;
(7) in subsection (e)(1), by inserting ‘‘pursuant
to subsection (i)’’ before the semicolon;
(8) in subsection (e)(2)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’ each place such term appears; and
(B) by striking ‘‘to that court’s making the
modification and assuming’’ and inserting ‘‘with
the State of continuing, exclusive jurisdiction for
a court of another State to modify the order and
assume’’;
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively;
(10) by inserting after subsection (e) the follow-
ing new subsection:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If
1 or more child support orders have been issued in this or
another State with regard to an obligor and a child, a court
shall apply the following rules in determining which order
to recognize for purposes of continuing, exclusive jurisdic-
tion and enforcement:
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‘‘(1) If only 1 court has issued a child support
order, the order of that court must be recognized.
‘‘(2) If 2 or more courts have issued child sup-
port orders for the same obligor and child, and only
1 of the courts would have continuing, exclusive juris-
diction under this section, the order of that court
must be recognized.
‘‘(3) If 2 or more courts have issued child sup-
port orders for the same obligor and child, and more
than 1 of the courts would have continuing, exclusive
jurisdiction under this section, an order issued by a
court in the current home State of the child must be
recognized, but if an order has not been issued in the
current home State of the child, the order most re-
cently issued must be recognized.
‘‘(4) If 2 or more courts have issued child sup-
port orders for the same obligor and child, and none
of the courts would have continuing, exclusive juris-
diction under this section, a court may issue a child
support order, which must be recognized.
‘‘(5) The court that has issued an order recog-
nized under this subsection is the court having con-
tinuing, exclusive jurisdiction.’’;
(11) in subsection (g) (as so redesignated)—
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(A) by striking ‘‘PRIOR’’ and inserting
‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and insert-
ing ‘‘subsections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘includ-
ing the duration of current payments and other
obligations of support’’ before the comma; and
(B) in paragraph (3), by inserting ‘‘arrears
under’’ after ‘‘enforce’’; and
(13) by adding at the end the following new sub-
section:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is
no individual contestant or child residing in the issuing
State, the party or support enforcement agency seeking to
modify, or to modify and enforce, a child support order is-
sued in another State shall register that order in a State
with jurisdiction over the nonmovant for the purpose of
modification.’’.
SEC. 923. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE
CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 915 and 917(a), is amended by adding at the end
the following new paragraph:
‘‘(14) Procedures under which—
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‘‘(A)(i) the State shall respond within 5
business days to a request made by another State
to enforce a support order; and
‘‘(ii) the term ‘business day’ means a day
on which State offices are open for regular busi-
ness;
‘‘(B) the State may, by electronic or other
means, transmit to another State a request for
assistance in a case involving the enforcement of
a support order, which request—
‘‘(i) shall include such information as
will enable the State to which the request is
transmitted to compare the information
about the case to the information in the
data bases of the State; and
‘‘(ii) shall constitute a certification by
the requesting State—
‘‘(I) of the amount of support
under the order the payment of which
is in arrears; and
‘‘(II) that the requesting State has
complied with all procedural due proc-
ess requirements applicable to the case;
‘‘(C) if the State provides assistance to an-
other State pursuant to this paragraph with re-
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spect to a case, neither State shall consider the
case to be transferred to the caseload of such
other State; and
‘‘(D) the State shall maintain records of—
‘‘(i) the number of such requests for as-
sistance received by the State;
‘‘(ii) the number of cases for which the
State collected support in response to such
a request; and
‘‘(iii) the amount of such collected sup-
port.’’.
SEC. 924. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) PROMULGATION.—Section 452(a) (42 U.S.C.
652(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of para-
graph (10) and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graph:
‘‘(11) not later than 60 days after the date of the
enactment of the Work Opportunity Act of 1995, es-
tablish an advisory committee, which shall include
State directors of programs under this part, and not
later than June 30, 1996, after consultation with the
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advisory committee, promulgate forms to be used by
States in interstate cases for—
‘‘(A) collection of child support through in-
come withholding;
‘‘(B) imposition of liens; and
‘‘(C) administrative subpoenas.’’.
(b) USE
BY STATES.—Section 454(9) (42 U.S.C.
654(9)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C);
(2) by inserting ‘‘and’’ at the end of subpara-
graph (D); and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) no later than October 1, 1996, in
using the forms promulgated pursuant to section
452(a)(11) for income withholding, imposition of
liens, and issuance of administrative subpoenas
in interstate child support cases;’’.
SEC. 925. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666), as amended by section 914, is amended—
(1) in subsection (a)(2), by striking the 1st sen-
tence and inserting the following: ‘‘Expedited admin-
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istrative and judicial procedures (including the proce-
dures specified in subsection (c)) for establishing pa-
ternity and for establishing, modifying, and enforcing
support obligations.’’; and
(2) by inserting after subsection (b) the following
new subsection:
‘‘(c) The procedures specified in this subsection are the
following:
‘‘(1) Procedures which give the State agency the
authority to take the following actions relating to es-
tablishment or enforcement of support orders, without
the necessity of obtaining an order from any other ju-
dicial or administrative tribunal, and to recognize
and enforce the authority of State agencies of other
States) to take the following actions:
‘‘(A) To order genetic testing for the pur-
pose of paternity establishment as provided in
section 466(a)(5).
‘‘(B) To subpoena any financial or other
information needed to establish, modify, or en-
force a support order, and to impose penalties
for failure to respond to such a subpoena.
‘‘(C) To require all entities in the State (in-
cluding for-profit, nonprofit, and governmental
employers) to provide promptly, in response to a
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request by the State agency of that or any other
State administering a program under this part,
information on the employment, compensation,
and benefits of any individual employed by such
entity as an employee or contractor, and to sanc-
tion failure to respond to any such request.
‘‘(D) To obtain access, subject to safeguards
on privacy and information security, to the fol-
lowing records (including automated access, in
the case of records maintained in automated
data bases):
‘‘(i) Records of other State and local
government agencies, including—
‘‘(I) vital statistics (including
records of marriage, birth, and di-
vorce);
‘‘(II) State and local tax and rev-
enue records (including information on
residence address, employer, income
and assets);
‘‘(III) records concerning real and
titled personal property;
‘‘(IV) records of occupational and
professional licenses, and records con-
cerning the ownership and control of
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corporations, partnerships, and other
business entities;
‘‘(V) employment security records;
‘‘(VI) records of agencies admin-
istering public assistance programs;
‘‘(VII) records of the motor vehicle
department; and
‘‘(VIII) corrections records.
‘‘(ii) Certain records held by private
entities, including—
‘‘(I) customer records of public
utilities and cable television compa-
nies; and
‘‘(II) information (including in-
formation on assets and liabilities) on
individuals who owe or are owed sup-
port (or against or with respect to
whom a support obligation is sought)
held by financial institutions (subject
to limitations on liability of such enti-
ties arising from affording such ac-
cess), as provided pursuant to agree-
ments described in subsection (a)(18).
‘‘(E) In cases where support is subject to an
assignment in order to comply with a require-
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ment imposed pursuant to part A or section
1912, or to a requirement to pay through the
State disbursement unit established pursuant to
section 454B, upon providing notice to obligor
and obligee, to direct the obligor or other payor
to change the payee to the appropriate govern-
ment entity.
‘‘(F) To order income withholding in ac-
cordance with subsections (a)(1) and (b) of sec-
tion 466.
‘‘(G) In cases in which there is a support
arrearage, to secure assets to satisfy the arrear-
age by—
‘‘(i) intercepting or seizing periodic or
lump-sum payments from—
‘‘(I) a State or local agency, in-
cluding unemployment compensation,
workers’ compensation, and other bene-
fits; and
‘‘(II) judgments, settlements, and
lotteries;
‘‘(ii) attaching and seizing assets of the
obligor held in financial institutions;
‘‘(iii) attaching public and private re-
tirement funds; and