H. R. 4
One Hundred Fourth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the fourth day of January, one thousand nine hundred and ninety-five
An Act
To restore the American family, enhance support and work opportunities for families
with children, reduce out-of-wedlock pregnancies, reduce welfare dependence, and
control welfare spending.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Personal Responsibility and
Work Opportunity Act of 1995’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private organizations.
Sec. 105. Census data on grandparents as primary caregivers for their grand-
children.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related pro-
visions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social security card
required.
Sec. 112. Disclosure of receipt of Federal funds.
Sec. 113. Modifications to the job opportunities for certain low-income individuals
program.
Sec. 114. Medicaid eligibility under title IV of the Social Security Act.
Sec. 115. Secretarial submission of legislative proposal for technical and conforming
amendments.
Sec. 116. Effective date; transition rule.
TITLE II—SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A—Eligibility Restrictions
Sec. 201. Denial of SSI benefits for 10 years to individuals found to have fraudu-
lently misrepresented residence in order to obtain benefits simulta-
neously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and parole viola-
tors.
Subtitle B—Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
H. R. 4—2
Sec. 212. Eligibility redeterminations and continuing disability reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized individuals whose
medical costs are covered by private insurance.
Sec. 215. Regulations.
Subtitle C—State Supplementation Programs
Sec. 221. Repeal of maintenance of effort requirements applicable to optional State
programs for supplementation of SSI benefits.
Subtitle D—Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study of disability determination process.
Sec. 233. Study by General Accounting Office.
Subtitle E—National Commission on the Future of Disability
Sec. 241. Establishment.
Sec. 242. Duties of the Commission.
Sec. 243. Membership.
Sec. 244. Staff and support services.
Sec. 245. Powers of Commission.
Sec. 246. Reports.
Sec. 247. Termination.
Sec. 248. Authorization of appropriations.
Subtitle F—Retirement Age Eligibility
Sec. 251. Eligibility for supplemental security income benefits based on social secu-
rity retirement age.
TITLE III—CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A—Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification and hearings.
Subtitle B—Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in child support
enforcement.
Subtitle C—Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D—Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of temporary family assist-
ance.
Subtitle E—Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F—Establishment and Modification of Support Orders
H. R. 4—3
Sec. 351. Simplified process for review and adjustment of child support orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to child sup-
port.
Sec. 353. Nonliability for financial institutions providing financial records to State
child support enforcement agencies in child support cases.
Subtitle G—Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International child support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of a
child.
Subtitle H—Medical Support
Sec. 376. Correction to ERISA definition of medical child support order.
Sec. 377. Enforcement of orders for health care coverage.
Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential Parents
Sec. 381. Grants to States for access and visitation programs.
Subtitle J—Effect of Enactment
Sec. 391. Effective dates.
TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and immigration.
Subtitle A—Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal public benefits.
Sec. 402. Limited eligibility of certain qualified aliens for certain Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-tested
public benefit.
Sec. 404. Notification and information reporting.
Subtitle B—Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for State
and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for State public bene-
fits.
Subtitle C—Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor’s income and resources to alien.
Sec. 422. Authority for States to provide for attribution of sponsor’s income and
resources to the alien with respect to State programs.
Sec. 423. Requirements for sponsor’s affidavit of support.
Sec. 424. Cosignature of alien student loans.
Subtitle D—General Provisions
Sec. 431. Definitions.
Sec. 432. Reapplication for SSI benefits.
Sec. 433. Verification of eligibility for Federal public benefits.
Sec. 434. Statutory construction.
Sec. 435. Communication between State and local government agencies, and the
Immigration and Naturalization Service.
Sec. 436. Qualifying quarters.
Subtitle E—Conforming Amendments
Sec. 441. Conforming amendments relating to assisted housing.
TITLE V—REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS
H. R. 4—4
Sec. 501. Reductions.
Sec. 502. Reductions in Federal bureaucracy.
Sec. 503. Reducing personnel in Washington, D.C. area.
TITLE VI—REFORM OF PUBLIC HOUSING
Sec. 601. Failure to comply with other welfare and public assistance programs.
Sec. 602. Fraud under means-tested welfare and public assistance programs.
Sec. 603. Effective date.
TITLE VII—CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER
CARE AND ADOPTION ASSISTANCE
Subtitle A—Block Grants to States for the Protection of Children and Matching
Payments for Foster Care and Adoption Assistance
Sec. 701. Establishment of program.
Sec. 702. Conforming amendments.
Sec. 703. Transfer and amendment to foster care protection requirement.
Sec. 704. Effective date; transition rule.
Sec. 705. Sense of the Congress regarding timely adoption of children.
Subtitle B—Child and Family Services Block Grant
Sec. 751. Child and family services block grant.
Sec. 752. Reauthorizations.
Sec. 753. Repeals.
TITLE VIII—CHILD CARE
Sec. 801. Short title and references.
Sec. 802. Goals.
Sec. 803. Authorization of appropriations.
Sec. 804. Lead agency.
Sec. 805. Application and plan.
Sec. 806. Limitation on State allotments.
Sec. 807. Activities to improve the quality of child care.
Sec. 808. Repeal of early childhood development and before- and after-school care
requirement.
Sec. 809. Administration and enforcement.
Sec. 810. Payments.
Sec. 811. Annual report and audits.
Sec. 812. Report by the Secretary.
Sec. 813. Allotments.
Sec. 814. Definitions.
Sec. 815. Repeals.
TITLE IX—CHILD NUTRITION PROGRAMS
Subtitle A—National School Lunch Act
Sec. 901. State disbursement to schools.
Sec. 902. Nutritional and other program requirements.
Sec. 903. Free and reduced price policy statement.
Sec. 904. Special assistance.
Sec. 905. Miscellaneous provisions and definitions.
Sec. 906. Summer food service program for children.
Sec. 907. Commodity distribution.
Sec. 908. Child care food program.
Sec. 909. Pilot projects.
Sec. 910. Reduction of paperwork.
Sec. 911. Information on income eligibility.
Sec. 912. Nutrition guidance for child nutrition programs.
Sec. 913. Information clearinghouse.
Sec. 914. School nutrition optional block grant demonstration program.
Subtitle B—Child Nutrition Act of 1966
Sec. 921. Special milk program.
Sec. 922. Free and reduced price policy statement.
Sec. 923. School breakfast program authorization.
Sec. 924. State administrative expenses.
Sec. 925. Regulations.
Sec. 926. Prohibitions.
Sec. 927. Miscellaneous provisions and definitions.
Sec. 928. Accounts and records.
H. R. 4—5
Sec. 929. Special supplemental nutrition program for women, infants, and children.
Sec. 930. Cash grants for nutrition education.
Sec. 931. Nutrition education and training.
Sec. 932. Breastfeeding promotion program.
TITLE X—FOOD STAMPS AND COMMODITY DISTRIBUTION
Sec. 1001. Short title.
Subtitle A—Food Stamp Program
Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance programs.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and wholesale food
concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.
Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification systems.
Sec. 1050. Disqualification of retailers who intentionally submit falsified applica-
tions.
Sec. 1051. Disqualification of retailers who are disqualified under the WIC pro-
gram.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements pending
administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Authorization of pilot projects.
Sec. 1060. Response to waivers.
Sec. 1061. Employment initiatives program.
Sec. 1062. Adjustable food stamp cap.
Sec. 1063. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 1064. Simplified food stamp program.
Sec. 1065. State food assistance block grant.
Sec. 1066. American Samoa.
Sec. 1067. Assistance for community food projects.
Subtitle B—Commodity Distribution Programs
H. R. 4—6
Sec. 1071. Commodity distribution program; commodity supplemental food pro-
gram.
Sec. 1072. Emergency food assistance program.
Sec. 1073. Food bank demonstration project.
Sec. 1074. Hunger prevention programs.
Sec. 1075. Report on entitlement commodity processing.
Sec. 1076. National commodity processing.
TITLE XI—MISCELLANEOUS
Subtitle A—General Provisions
Sec. 1101. Expenditure of Federal funds in accordance with laws and procedures
applicable to expenditure of State funds.
Sec. 1102. Elimination of housing assistance with respect to fugitive felons and pro-
bation and parole violators.
Sec. 1103. Sense of the Senate regarding enterprise zones.
Sec. 1104. Sense of the Senate regarding the inability of the non-custodial parent
to pay child support.
Sec. 1105. Food stamp eligibility.
Sec. 1106. Establishing national goals to prevent teenage pregnancies.
Sec. 1107. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 1108. Sanctioning for testing positive for controlled substances.
Sec. 1109. Abstinence education.
Sec. 1110. Provisions to encourage electronic benefit transfer systems.
Sec. 1111. Reduction in block grants to States for social services.
TITLE I—BLOCK GRANTS FOR TEM-
PORARY 
ASSISTANCE 
FOR 
NEEDY
FAMILIES
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful soci-
ety which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood
is integral to successful child rearing and the well-being of
children.
(4) In 1992, only 54 percent of single-parent families with
children had a child support order established and, of that
54 percent, only about one-half received the full amount due.
Of the cases enforced through the public child support enforce-
ment system, only 18 percent of the caseload has a collection.
(5) The number of individuals receiving aid to families
with dependent children (in this section referred to as ‘‘AFDC’’)
has more than tripled since 1965. More than two-thirds of
these recipients are children. Eighty-nine percent of children
receiving AFDC benefits now live in homes in which no father
is present.
(A)(i) The average monthly number of children receiv-
ing AFDC benefits—
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC bene-
fits increased nearly threefold between 1965 and 1992,
the total number of children in the United States aged
0 to 18 has declined by 5.5 percent.
H. R. 4—7
(B) The Department of Health and Human Services
has estimated that 12,000,000 children will receive AFDC
benefits within 10 years.
(C) The increase in the number of children receiving
public assistance is closely related to the increase in births
to unmarried women. Between 1970 and 1991, the percent-
age of live births to unmarried women increased nearly
threefold, from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births
is well documented as follows:
(A) It is estimated that the rate of nonmarital teen
pregnancy rose 23 percent from 54 pregnancies per 1,000
unmarried teenagers in 1976 to 66.7 pregnancies in 1991.
The overall rate of nonmarital pregnancy rose 14 percent
from 90.8 pregnancies per 1,000 unmarried women in 1980
to 103 in both 1991 and 1992. In contrast, the overall
pregnancy rate for married couples decreased 7.3 percent
between 1980 and 1991, from 126.9 pregnancies per 1,000
married women in 1980 to 117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970
and 1991 has risen from 10.7 percent to 29.5 percent and
if the current trend continues, 50 percent of all births
by the year 2015 will be out-of-wedlock.
(7) The negative consequences of an out-of-wedlock birth
on the mother, the child, the family, and society are well
documented as follows:
(A) Young women 17 and under who give birth outside
of marriage are more likely to go on public assistance
and to spend more years on welfare once enrolled. These
combined effects of ‘‘younger and longer’’ increase total
AFDC costs per household by 25 percent to 30 percent
for 17-year olds.
(B) Children born out-of-wedlock have a substantially
higher risk of being born at a very low or moderately
low birth weight.
(C) Children born out-of-wedlock are more likely to
experience low verbal cognitive attainment, as well as more
child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to
have lower cognitive scores, lower educational aspirations,
and a greater likelihood of becoming teenage parents them-
selves.
(E) Being born out-of-wedlock significantly reduces the
chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more
likely to be on welfare when they grow up.
(8) Currently 35 percent of children in single-parent homes
were born out-of-wedlock, nearly the same percentage as that
of children in single-parent homes whose parents are divorced
(37 percent). While many parents find themselves, through
divorce or tragic circumstances beyond their control, facing
the difficult task of raising children alone, nevertheless, the
negative consequences of raising children in single-parent
homes are well documented as follows:
(A) Only 9 percent of married-couple families with
children under 18 years of age have income below the
national poverty level. In contrast, 46 percent of female-
H. R. 4—8
headed households with children under 18 years of age
are below the national poverty level.
(B) Among single-parent families, nearly 1⁄2 of the
mothers who never married received AFDC while only
1⁄5 of divorced mothers received AFDC.
(C) Children born into families receiving welfare assist-
ance are 3 times more likely to be on welfare when they
reach adulthood than children not born into families receiv-
ing welfare.
(D) Mothers under 20 years of age are at the greatest
risk of bearing low-birth-weight babies.
(E) The younger the single parent mother, the less
likely she is to finish high school.
(F) Young women who have children before finishing
high school are more likely to receive welfare assistance
for a longer period of time.
(G) Between 1985 and 1990, the public cost of births
to teenage mothers under the aid to families with depend-
ent children program, the food stamp program, and the
medicaid program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child
has a negative effect on school performance and peer
adjustment.
(I) Children of teenage single parents have lower cog-
nitive scores, lower educational aspirations, and a greater
likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more
likely to fail and repeat a year in grade school than are
children from intact 2-parent families.
(K) Children from single-parent homes are almost 4
times more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth
aged 12 through 20 and areas with higher percentages
of single-parent households have higher rates of violent
crime.
(M) Of those youth held for criminal offenses within
the State juvenile justice system, only 29.8 percent lived
primarily in a home with both parents. In contrast to
these incarcerated youth, 73.9 percent of the 62,800,000
children in the Nation’s resident population were living
with both parents.
(9) Therefore, in light of this demonstration of the crisis
in our Nation, it is the sense of the Congress that prevention
of out-of-wedlock pregnancy and reduction in out-of-wedlock
birth are very important Government interests and the policy
contained in part A of title IV of the Social Security Act (as
amended by section 103 of this Act) is intended to address
the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal
of a section or other provision, the reference shall be considered
to be made to that section or other provision of the Social Security
Act.
H. R. 4—9
SEC. 103. BLOCK GRANTS TO STATES.
Part A of title IV (42 U.S.C. 601 et seq.) is amended to read
as follows:
‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMI-
LIES
‘‘SEC. 401. PURPOSE.
‘‘(a) IN GENERAL.—The purpose of this part is to increase the
flexibility of States in operating a program designed to—
‘‘(1) provide assistance to needy families so that children
may be cared for in their own homes or in the homes of
relatives;
‘‘(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and marriage;
‘‘(3) prevent and reduce the incidence of out-of-wedlock
pregnancies and establish annual numerical goals for prevent-
ing and reducing the incidence of these pregnancies; and
‘‘(4) encourage the formation and maintenance of two-par-
ent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be inter-
preted to entitle any individual or family to assistance under any
State program funded under this part.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term ‘eligible State’
means, with respect to a fiscal year, a State that, during the
2-year period immediately preceding the fiscal year, has submitted
to the Secretary a plan that includes the following:
‘‘(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM.—
‘‘(A) GENERAL PROVISIONS.—A written document that
outlines how the State intends to do the following:
‘‘(i) Conduct a program, designed to serve all politi-
cal subdivisions in the State, that provides assistance
to needy families with (or expecting) children and pro-
vides parents with job preparation, work, and support
services to enable them to leave the program and
become self-sufficient.
‘‘(ii) Require a parent or caretaker receiving assist-
ance under the program to engage in work (as defined
by the State) once the State determines the parent
or caretaker is ready to engage in work, or once the
parent or caretaker has received assistance under the
program for 24 months (whether or not consecutive),
whichever is earlier.
‘‘(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities
in accordance with section 407.
‘‘(iv) Take such reasonable steps as the State
deems necessary to restrict the use and disclosure of
information about individuals and families receiving
assistance under the program attributable to funds
provided by the Federal Government.
‘‘(v) Establish goals and take action to prevent
and reduce the incidence of out-of-wedlock pregnancies,
H. R. 4—10
with special emphasis on teenage pregnancies, and
establish numerical goals for reducing the illegitimacy
ratio of the State (as defined in section 403(a)(2)(B))
for calendar years 1996 through 2005.
‘‘(B) SPECIAL PROVISIONS.—
‘‘(i) The document shall indicate whether the State
intends to treat families moving into the State from
another State differently than other families under
the program, and if so, how the State intends to treat
such families under the program.
‘‘(ii) The document shall indicate whether the State
intends to provide assistance under the program to
individuals who are not citizens of the United States,
and if so, shall include an overview of such assistance.
‘‘(2) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD
SUPPORT ENFORCEMENT PROGRAM.—A certification by the chief
executive officer of the State that, during the fiscal year, the
State will operate a child support enforcement program under
the State plan approved under part D.
‘‘(3) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD
PROTECTION PROGRAM.—A certification by the chief executive
officer of the State that, during the fiscal year, the State will
operate a child protection program under the State plan
approved under part B.
‘‘(4) CERTIFICATION OF THE ADMINISTRATION OF THE PRO-
GRAM.—A certification by the chief executive officer of the State
specifying which State agency or agencies will administer and
supervise the program referred to in paragraph (1) for the
fiscal year, which shall include assurances that local govern-
ments and private sector organizations—
‘‘(A) have been consulted regarding the plan and design
of welfare services in the State so that services are provided
in a manner appropriate to local populations; and
‘‘(B) have had at least 60 days to submit comments
on the plan and the design of such services.
‘‘(5) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS
WITH EQUITABLE ACCESS TO ASSISTANCE.—A certification by the
chief executive officer of the State that, during the fiscal year,
the State will provide each Indian who is a member of an
Indian tribe in the State that does not have a tribal family
assistance plan approved under section 412 with equitable
access to assistance under the State program funded under
this part attributable to funds provided by the Federal Govern-
ment.
‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUMMARY.—The State
shall make available to the public a summary of any plan submitted
by the State under this section.
‘‘SEC. 403. GRANTS TO STATES.
‘‘(a) GRANTS.—
‘‘(1) FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—Each eligible State shall be entitled
to receive from the Secretary, for each of fiscal years 1996,
1997, 1998, 1999, 2000, and 2001 a grant in an amount
equal to the State family assistance grant.
H. R. 4—11
‘‘(B) STATE
FAMILY
ASSISTANCE
GRANT
DEFINED.—As
used in this part, the term ‘State family assistance grant’
means the greatest of—
‘‘(i) 1⁄3 of the total amount required to be paid
to the State under former section 403 (as in effect
on September 30, 1995) for fiscal years 1992, 1993,
and 1994 (other than with respect to amounts expended
by the State for child care under subsection (g) or
(i) of former section 402 (as so in effect));
‘‘(ii)(I) the total amount required to be paid to
the State under former section 403 for fiscal year 1994
(other than with respect to amounts expended by the
State for child care under subsection (g) or (i) of former
section 402 (as so in effect)); plus
‘‘(II) an amount equal to 85 percent of the amount
(if any) by which the total amount required to be
paid to the State under former section 403(a)(5) for
emergency assistance for fiscal year 1995 exceeds the
total amount required to be paid to the State under
former section 403(a)(5) for fiscal year 1994, if, during
fiscal year 1994, the Secretary approved under former
section 402 an amendment to the former State plan
with respect to the provision of emergency assistance
in the context of family preservation; or
‘‘(iii) 4⁄3 of the total amount required to be paid
to the State under former section 403 (as in effect
on September 30, 1995) for the 1st 3 quarters of fiscal
year 1995 (other than with respect to amounts
expended by the State under the State plan approved
under part F (as so in effect) or for child care under
subsection (g) or (i) of former section 402 (as so in
effect)), plus the total amount required to be paid to
the State for fiscal year 1995 under former section
403(l) (as so in effect).
‘‘(C) TOTAL AMOUNT REQUIRED TO BE PAID TO THE STATE
UNDER FORMER SECTION 403 DEFINED.—As used in this part,
the term ‘total amount required to be paid to the State
under former section 403’ means, with respect to a fiscal
year—
‘‘(i) in the case of a State to which section 1108
does not apply, the sum of—
‘‘(I) the Federal share of maintenance assist-
ance expenditures for the fiscal year, before reduc-
tion pursuant to subparagraph (B) or (C) of section
403(b)(2) (as in effect on September 30, 1995),
as reported by the State on ACF Form 231;
‘‘(II) the Federal share of administrative
expenditures (including administrative expendi-
tures for the development of management informa-
tion systems) for the fiscal year, as reported by
the State on ACF Form 231;
‘‘(III) the Federal share of emergency assist-
ance expenditures for the fiscal year, as reported
by the State on ACF Form 231;
‘‘(IV) the Federal share of expenditures for
the fiscal year with respect to child care pursuant
to subsections (g) and (i) of former section 402
H. R. 4—12
(as in effect on September 30, 1995), as reported
by the State on ACF Form 231; and
‘‘(V) the aggregate amount required to be paid
to the State for the fiscal year with respect to
the State program operated under part F (as in
effect on September 30, 1995), as determined by
the Secretary, including additional obligations or
reductions in obligations made after the close of
the fiscal year; and
‘‘(ii) in the case of a State to which section 1108
applies, the lesser of—
‘‘(I) the sum described in clause (i); or
‘‘(II) the total amount certified by the Sec-
retary under former section 403 (as in effect during
the fiscal year) with respect to the territory.
‘‘(D) INFORMATION
TO
BE
USED
IN
DETERMINING
AMOUNTS.—
‘‘(i) FOR FISCAL YEARS 1992 AND 1993.—
‘‘(I) In determining the amount described in
subclauses (I) through (IV) of subparagraph (C)(i)
for any State for each of fiscal years 1992 and
1993, the Secretary shall use information available
as of April 28, 1995.
‘‘(II) In determining the amount described in
subparagraph (C)(i)(V) for any State for each of
fiscal years 1992 and 1993, the Secretary shall
use information available as of January 6, 1995.
‘‘(ii) FOR FISCAL YEAR 1994.—In determining the
amounts described in subparagraph (C)(i) for any State
for fiscal year 1994, the Secretary shall use information
available as of April 28, 1995.
‘‘(iii) FOR FISCAL YEAR 1995.—
‘‘(I) In determining the amount described in
subparagraph (B)(ii)(II) for any State for fiscal year
1995, the Secretary shall use the information
which was reported by the States and estimates
made by the States with respect to emergency
assistance expenditures and was available as of
August 11, 1995.
‘‘(II) In determining the amounts described in
subclauses (I) through (IV) of subparagraph (C)(i)
for any State for fiscal year 1995, the Secretary
shall use information available as of October 2,
1995.
‘‘(III) In determining the amount described in
subparagraph (C)(i)(V) for any State for fiscal year
1995, the Secretary shall use information available
as of October 5, 1995.
‘‘(E) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1996, 1997, 1998, 1999,
2000, and 2001 such sums as are necessary for grants
under this paragraph.
‘‘(2) GRANT TO REWARD STATES THAT REDUCE OUT-OF-WED-
LOCK BIRTHS.—
‘‘(A) IN GENERAL.—In addition to any grant under para-
graph (1), each eligible State shall be entitled to receive
H. R. 4—13
from the Secretary for fiscal year 1998 or any succeeding
fiscal year, a grant in an amount equal to the State family
assistance grant multiplied by—
‘‘(i) 5 percent if—
‘‘(I) the illegitimacy ratio of the State for the
fiscal year is at least 1 percentage point lower
than the illegitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced pregnancy termi-
nations in the State for the fiscal year is less
than the rate of induced pregnancy terminations
in the State for fiscal year 1995; or
‘‘(ii) 10 percent if—
‘‘(I) the illegitimacy ratio of the State for the
fiscal year is at least 2 percentage points lower
than the illegitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced pregnancy termi-
nations in the State for the fiscal year is less
than the rate of induced pregnancy terminations
in the State for fiscal year 1995.
‘‘(B) ILLEGITIMACY RATIO.—As used in this paragraph,
the term ‘illegitimacy ratio’ means, with respect to a State
and a fiscal year—
‘‘(i) the number of out-of-wedlock births that
occurred in the State during the most recent fiscal
year for which such information is available; divided
by
‘‘(ii) the number of births that occurred in the
State during the most recent fiscal year for which
such information is available.
‘‘(C) DISREGARD OF CHANGES IN DATA DUE TO CHANGED
REPORTING METHODS.—For purposes of subparagraph (A),
the Secretary shall disregard—
‘‘(i) any difference between the illegitimacy ratio
of a State for a fiscal year and the illegitimacy ratio
of the State for fiscal year 1995 which is attributable
to a change in State methods of reporting data used
to calculate the illegitimacy ratio; and
‘‘(ii) any difference between the rate of induced
pregnancy terminations in a State for a fiscal year
and such rate for fiscal year 1995 which is attributable
to a change in State methods of reporting data used
to calculate such rate.
‘‘(D) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there
are appropriated for fiscal year 1998 and for each succeed-
ing fiscal year such sums as are necessary for grants under
this paragraph.
‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN
CERTAIN STATES.—
‘‘(A) IN GENERAL.—Each qualifying State shall, subject
to subparagraph (F), be entitled to receive from the Sec-
retary—
‘‘(i) for fiscal year 1997 a grant in an amount
equal to 2.5 percent of the total amount required to
be paid to the State under former section 403 (as
H. R. 4—14
in effect during fiscal year 1994) for fiscal year 1994;
and
‘‘(ii) for each of fiscal years 1998, 1999, and 2000,
a grant in an amount equal to the sum of—
‘‘(I) the amount (if any) required to be paid
to the State under this paragraph for the imme-
diately preceding fiscal year; and
‘‘(II) 2.5 percent of the sum of—
‘‘(aa) the total amount required to be paid
to the State under former section 403 (as in
effect during fiscal year 1994) for fiscal year
1994; and
‘‘(bb) the amount (if any) required to be
paid to the State under this paragraph for
the fiscal year preceding the fiscal year for
which the grant is to be made.
‘‘(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR
STATES FAILING TO REMAIN QUALIFYING STATES.—Each State
that is not a qualifying State for a fiscal year specified
in subparagraph (A)(ii) but was a qualifying State for a
prior fiscal year shall, subject to subparagraph (F), be
entitled to receive from the Secretary for the specified
fiscal year, a grant in an amount equal to the amount
required to be paid to the State under this paragraph
for the most recent fiscal year for which the State was
a qualifying State.
‘‘(C) QUALIFYING STATE.—
‘‘(i) IN GENERAL.—For purposes of this paragraph,
a State is a qualifying State for a fiscal year if—
‘‘(I) the level of welfare spending per poor per-
son by the State for the immediately preceding
fiscal year is less than the national average level
of State welfare spending per poor person for such
preceding fiscal year; and
‘‘(II) the population growth rate of the State
(as determined by the Bureau of the Census for
the most recent fiscal year for which information
is available) exceeds the average population
growth rate for all States (as so determined) for
such most recent fiscal year.
‘‘(ii) STATE MUST QUALIFY IN FISCAL YEAR 1997.—
Notwithstanding clause (i), a State shall not be a
qualifying State for any fiscal year after 1997 by reason
of clause (i) if the State is not a qualifying State
for fiscal year 1997 by reason of clause (i).
‘‘(iii) 
CERTAIN
STATES
DEEMED
QUALIFYING
STATES.—For purposes of this paragraph, a State is
deemed to be a qualifying State for fiscal years 1997,
1998, 1999, and 2000 if—
‘‘(I) the level of welfare spending per poor per-
son by the State for fiscal year 1996 is less than
35 percent of the national average level of State
welfare spending per poor person for fiscal year
1996; or
‘‘(II) the population of the State increased by
more than 10 percent from April 1, 1990, to July
H. R. 4—15
1, 1994, as determined by the Bureau of the Cen-
sus.
‘‘(D) DEFINITIONS.—As used in this paragraph:
‘‘(i) LEVEL OF WELFARE SPENDING PER POOR PER-
SON.—The term ‘level of State welfare spending per
poor person’ means, with respect to a State and a
fiscal year—
‘‘(I) the sum of—
‘‘(aa) the total amount required to be paid
to the State under former section 403 (as in
effect during fiscal year 1994) for fiscal year
1994; and
‘‘(bb) the amount (if any) paid to the State
under this paragraph for the immediately
preceding fiscal year; divided by
‘‘(II) the number of individuals, according to
the 1990 decennial census, who were residents
of the State and whose income was below the
poverty line.
‘‘(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE
SPENDING PER POOR PERSON.—The term ‘national aver-
age level of State welfare spending per poor person’
means, with respect to a fiscal year, an amount equal
to—
‘‘(I) the total amount required to be paid to
the States under former section 403 (as in effect
during fiscal year 1994) for fiscal year 1994;
divided by
‘‘(II) the number of individuals, according to
the 1990 decennial census, who were residents
of any State and whose income was below the
poverty line.
‘‘(iii) STATE.—The term ‘State’ means each of the
50 States of the United States and the District of
Columbia.
‘‘(E) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1997, 1998, 1999, and
2000 such sums as are necessary for grants under this
paragraph, in a total amount not to exceed $800,000,000.
‘‘(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPRO-
PRIATIONS.—If the amount appropriated pursuant to this
paragraph for a fiscal year is less than the total amount
of payments otherwise required to be made under this
paragraph for the fiscal year, then the amount otherwise
payable to any State for the fiscal year under this para-
graph shall be reduced by a percentage equal to the amount
so appropriated divided by such total amount.
‘‘(G) 
BUDGET
SCORING.—Notwithstanding 
section
257(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985, the baseline shall assume that no
grant shall be made under this paragraph after fiscal year
2000.
‘‘(b) CONTINGENCY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby established in the
Treasury of the United States a fund which shall be known
H. R. 4—16
as the ‘Contingency Fund for State Welfare Programs’ (in this
section referred to as the ‘Fund’).
‘‘(2) DEPOSITS INTO FUND.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there
are appropriated for fiscal years 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for payment to the Fund
in a total amount not to exceed $1,000,000,000.
‘‘(3) GRANTS.—From amounts appropriated pursuant to
paragraph (2), the Secretary of the Treasury shall pay to each
eligible State for a fiscal year an amount equal to the lesser
of—
‘‘(A) the Federal medical assistance percentage for the
State for the fiscal year (as defined in section 1905(b),
as in effect on September 30, 1995) of the amount (if
any) by which the expenditures of the State in the fiscal
year under the State program funded under this part
exceed the historic State expenditures (as defined in section
409(a)(7)(B)(iii)) for the State with respect to the fiscal
year; or
‘‘(B) 20 percent of the State family assistance grant
for the fiscal year.
‘‘(4) ELIGIBLE STATE.—For purposes of this subsection, a
State is an eligible State for a fiscal year, if—
‘‘(A) the average rate of total unemployment in such
State (seasonally adjusted) for the period consisting of the
most recent 3 months for which data for all States are
published equals or exceeds 6.5 percent;
‘‘(B) the average rate of total unemployment in such
State (seasonally adjusted) for the 3-month period equals
or exceeds 110 percent of such average rate for either
(or both) of the corresponding 3-month periods ending in
the 2 preceding calendar years; and
‘‘(C) the total amount expended by the State during
the fiscal year under the State program funded under
this part is not less than 100 percent of the level of historic
State expenditures (as defined in section 409(a)(7)(B)(iii))
with respect to the fiscal year.
‘‘(5) STATE.—As used in this subsection, the term ‘State’
means each of the 50 States of the United States and the
District of Columbia.
‘‘(6) PAYMENT PRIORITY.—The Secretary shall make pay-
ments under paragraph (3) in the order in which the Secretary
receives claims for such payments.
‘‘(7) ANNUAL REPORTS.—The Secretary of the Treasury shall
annually report to the Congress on the status of the Fund.
‘‘(8) BUDGET SCORING.—Notwithstanding section 257(b)(2)
of the Balanced Budget and Emergency Deficit Control Act
of 1985, the baseline shall assume that no grant shall be
made under this subsection after fiscal year 2001.
‘‘SEC. 404. USE OF GRANTS.
‘‘(a) GENERAL RULES.—Subject to this part, a State to which
a grant is made under section 403 may use the grant—
‘‘(1) in any manner that is reasonably calculated to accom-
plish the purpose of this part, including to provide low income
households with assistance in meeting home heating and cool-
ing costs; or
H. R. 4—17
‘‘(2) in any manner that the State was authorized to use
amounts received under part A or F, as such parts were in
effect on September 30, 1995.
‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINISTRATIVE PUR-
POSES.—
‘‘(1) LIMITATION.—A State to which a grant is made under
section 403 shall not expend more than 15 percent of the
grant for administrative purposes.
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to the use
of a grant for information technology and computerization
needed for tracking or monitoring required by or under this
part.
‘‘(c) AUTHORITY
TO TREAT INTERSTATE IMMIGRANTS UNDER
RULES OF FORMER STATE.—A State operating a program funded
under this part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another State
if the family has moved to the State from the other State and
has resided in the State for less than 12 months.
‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PUR-
POSES.—
‘‘(1) IN
GENERAL.—A State may use not more than 30
percent of the amount of the grant made to the State under
section 403 for a fiscal year to carry out a State program
pursuant to any or all of the following provisions of law:
‘‘(A) Part B of this title.
‘‘(B) Title XX of this Act.
‘‘(C) The Child Care and Development Block Grant
Act of 1990.
‘‘(2) APPLICABLE RULES.—Any amount paid to the State
under this part that is used to carry out a State program
pursuant to a provision of law specified or described in para-
graph (1) shall not be subject to the requirements of this
part, but shall be subject to the requirements that apply to
Federal funds provided directly under the provision of law
to carry out the program.
‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR ASSIST-
ANCE.—A State may reserve amounts paid to the State under this
part for any fiscal year for the purpose of providing, without fiscal
year limitation, assistance under the State program funded under
this part.
‘‘(f) AUTHORITY
TO OPERATE EMPLOYMENT PLACEMENT PRO-
GRAM.—A State to which a grant is made under section 403 may
use the grant to make payments (or provide job placement vouchers)
to State-approved public and private job placement agencies that
provide employment placement services to individuals who receive
assistance under the State program funded under this part.
‘‘(g) IMPLEMENTATION OF ELECTRONIC BENEFIT TRANSFER SYS-
TEM.—A State to which a grant is made under section 403 is
encouraged to implement an electronic benefit transfer system for
providing assistance under the State program funded under this
part, and may use the grant for such purpose.
‘‘SEC. 405. ADMINISTRATIVE PROVISIONS.
‘‘(a) QUARTERLY.—The Secretary shall pay each grant payable
to a State under section 403 in quarterly installments.
‘‘(b) NOTIFICATION.—Not later than 3 months before the pay-
ment of any such quarterly installment to a State, the Secretary
H. R. 4—18
shall notify the State of the amount of any reduction determined
under section 412(a)(1)(B) with respect to the State.
‘‘(c) COMPUTATION
AND
CERTIFICATION
OF
PAYMENTS
TO
STATES.—
‘‘(1) COMPUTATION.—The Secretary shall estimate the
amount to be paid to each eligible State for each quarter
under this part, such estimate to be based on a report filed
by the State containing an estimate by the State of the total
sum to be expended by the State in the quarter under the
State program funded under this part and such other informa-
tion as the Secretary may find necessary.
‘‘(2) CERTIFICATION.—The Secretary of Health and Human
Services shall certify to the Secretary of the Treasury the
amount estimated under paragraph (1) with respect to a State,
reduced or increased to the extent of any overpayment or
underpayment which the Secretary of Health and Human Serv-
ices determines was made under this part to the State for
any prior quarter and with respect to which adjustment has
not been made under this paragraph.
‘‘(d) PAYMENT METHOD.—Upon receipt of a certification under
subsection (c)(2) with respect to a State, the Secretary of the Treas-
ury shall, through the Fiscal Service of the Department of the
Treasury and before audit or settlement by the General Accounting
Office, pay to the State, at the time or times fixed by the Secretary
of Health and Human Services, the amount so certified.
‘‘(e) COLLECTION OF STATE OVERPAYMENTS TO FAMILIES FROM
FEDERAL TAX REFUNDS.—
‘‘(1) IN GENERAL.—Upon receiving notice from the Secretary
of Health and Human Services that a State agency administer-
ing a program funded under this part has notified the Secretary
that a named individual has been overpaid under the State
program funded under this part, the Secretary of the Treasury
shall determine whether any amounts as refunds of Federal
taxes paid are payable to such individual, regardless of whether
the individual filed a tax return as a married or unmarried
individual. If the Secretary of the Treasury finds that any
such amount is so payable, the Secretary shall withhold from
such refunds an amount equal to the overpayment sought to
be collected by the State and pay such amount to the State
agency.
‘‘(2) REGULATIONS.—The Secretary of the Treasury shall
issue regulations, after review by the Secretary of Health and
Human Services, that provide—
‘‘(A) that a State may only submit under paragraph
(1) requests for collection of overpayments with respect
to individuals—
‘‘(i) who are no longer receiving assistance under
the State program funded under this part;
‘‘(ii) with respect to whom the State has already
taken appropriate action under State law against the
income or resources of the individuals or families
involved to collect the past-due legally enforceable debt;
and
‘‘(iii) to whom the State agency has given notice
of its intent to request withholding by the Secretary
of the Treasury from the income tax refunds of such
individuals;
H. R. 4—19
‘‘(B) that the Secretary of the Treasury will give a
timely and appropriate notice to any other person filing
a joint return with the individual whose refund is subject
to withholding under paragraph (1); and
‘‘(C) the procedures that the State and the Secretary
of the Treasury will follow in carrying out this subsection
which, to the maximum extent feasible and consistent with
the provisions of this subsection, will be the same as those
issued pursuant to section 464(b) applicable to collection
of past-due child support.
‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
‘‘(a) LOAN AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary shall make loans to any
loan-eligible State, for a period to maturity of not more than
3 years.
‘‘(2) LOAN-ELIGIBLE STATE.—As used in paragraph (1), the
term ‘loan-eligible State’ means a State against which a penalty
has not been imposed under section 409(a)(1).
‘‘(b) RATE OF INTEREST.—The Secretary shall charge and collect
interest on any loan made under this section at a rate equal
to the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity
comparable to the period to maturity of the loan.
‘‘(c) USE
OF LOAN.—A State shall use a loan made to the
State under this section only for any purpose for which grant
amounts received by the State under section 403(a) may be used,
including—
‘‘(1) welfare anti-fraud activities; and
‘‘(2) the provision of assistance under the State program
to Indian families that have moved from the service area of
an Indian tribe with a tribal family assistance plan approved
under section 412.
‘‘(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE.—
The cumulative dollar amount of all loans made to a State under
this section during fiscal years 1997 through 2001 shall not exceed
10 percent of the State family assistance grant.
‘‘(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS.—
The total dollar amount of loans outstanding under this section
may not exceed $1,700,000,000.
‘‘(f) APPROPRIATION.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appro-
priated such sums as may be necessary for the cost of loans under
this section.
‘‘SEC. 407. MANDATORY WORK REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) ALL
FAMILIES.—A State to which a grant is made
under section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for the fiscal
year with respect to all families receiving assistance under
the State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................................
1997 ...............................................................................
1998 ...............................................................................
1999 ...............................................................................
H. R. 4—20
2000 ...............................................................................
2001 ...............................................................................
2002 or thereafter .........................................................
50.
‘‘(2) 2-PARENT FAMILIES.—A State to which a grant is made
under section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for the fiscal
year with respect to 2-parent families receiving assistance
under the State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................................
1997 ...............................................................................
1998 ...............................................................................
1999 or thereafter .........................................................
90.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) ALL FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For purposes of sub-
section (a)(1), the participation rate for all families of a
State for a fiscal year is the average of the participation
rates for all families of the State for each month in the
fiscal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—The participa-
tion rate of a State for all families of the State for a
month, expressed as a percentage, is—
‘‘(i) the number of families receiving assistance
under the State program funded under this part that
include an adult who is engaged in work for the month;
divided by
‘‘(ii) the amount by which—
‘‘(I) the number of families receiving such
assistance during the month that include an adult
receiving such assistance; exceeds
‘‘(II) the number of families receiving such
assistance that are subject in such month to a
penalty described in subsection (e)(1) but have not
been subject to such penalty for more than 3
months within the preceding 12-month period
(whether or not consecutive).
‘‘(2) 2-PARENT FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For purposes of sub-
section (a)(2), the participation rate for 2-parent families
of a State for a fiscal year is the average of the participation
rates for 2-parent families of the State for each month
in the fiscal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—The participa-
tion rate of a State for 2-parent families of the State
for a month shall be calculated by use of the formula
set forth in paragraph (1)(B), except that in the formula
the term ‘number of 2-parent families’ shall be substituted
for the term ‘number of families’ each place such latter
term appears.
‘‘(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO
CASELOAD REDUCTIONS NOT REQUIRED BY FEDERAL LAW.—
‘‘(A) IN GENERAL.—The Secretary shall prescribe regu-
lations for reducing the minimum participation rate other-
wise required by this section for a fiscal year by the number
H. R. 4—21
of percentage points equal to the number of percentage
points (if any) by which—
‘‘(i) the number of families receiving assistance
during the fiscal year under the State program funded
under this part is less than
‘‘(ii) the number of families that received aid under
the State plan approved under part A (as in effect
on September 30, 1995) during fiscal year 1995.
The minimum participation rate shall not be reduced to
the extent that the Secretary determines that the reduction
in the number of families receiving such assistance is
required by Federal law.
‘‘(B) ELIGIBILITY CHANGES NOT COUNTED.—The regula-
tions described in subparagraph (A) shall not take into
account families that are diverted from a State program
funded under this part as a result of differences in eligi-
bility criteria under a State program funded under this
part and eligibility criteria under the State program oper-
ated under the State plan approved under part A (as such
plan and such part were in effect on September 30, 1995).
Such regulations shall place the burden on the Secretary
to prove that such families were diverted as a direct result
of differences in such eligibility criteria.
‘‘(4) STATE
OPTION
TO
INCLUDE
INDIVIDUALS
RECEIVING
ASSISTANCE
UNDER
A
TRIBAL
FAMILY
ASSISTANCE
PLAN.—For
purposes of paragraphs (1)(B) and (2)(B), a State may, at its
option, include families receiving assistance under a tribal fam-
ily assistance plan approved under section 412.
‘‘(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMP-
TIONS.—For any fiscal year, a State may, at its option, not
require an individual who is a single custodial parent caring
for a child who has not attained 12 months of age to engage
in work and may disregard such an individual in determining
the participation rates under subsection (a).
‘‘(c) ENGAGED IN WORK.—
‘‘(1) ALL FAMILIES.—For purposes of subsection (b)(1)(B)(i),
a recipient is engaged in work for a month in a fiscal year
if the recipient is participating in such activities for at least
the minimum average number of hours per week specified
in the following table during the month, not fewer than 20
hours per week of which are attributable to an activity
described in paragraph (1), (2), (3), (4), (5), (7), or (8) of sub-
section (d) (or, in the case of the first 4 weeks for which
the recipient is required pursuant to this section to participate
in work activities, an activity described in subsection (d)(6)):
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1996 ...............................................................................
1997 ...............................................................................
1998 ...............................................................................
1999 ...............................................................................
2000 ...............................................................................
2001 ...............................................................................
2002 ...............................................................................
2003 or thereafter .........................................................
35.
‘‘(2) 2-PARENT
FAMILIES.—For purposes of subsection
(b)(2)(B)(i), an adult is engaged in work for a month in a
fiscal year if the adult is making progress in such activities
H. R. 4—22
for at least 35 hours per week during the month, not fewer
than 30 hours per week of which are attributable to an activity
described in paragraph (1), (2), (3), (4), (5), (7), or (8) of sub-
section (d) (or, in the case of the first 4 weeks for which
the recipient is required pursuant to this section to participate
in work activities, an activity described in subsection (d)(6)).
‘‘(3) LIMITATION
ON
VOCATIONAL
EDUCATION
ACTIVITIES
COUNTED
AS
WORK.—For purposes of determining monthly
participation rates under paragraphs (1)(B)(i) and (2)(B)(i) of
subsection (b), not more than 20 percent of adults in all families
and in 2-parent families determined to be engaged in work
in the State for a month may meet the work activity require-
ment through participation in vocational educational training.
‘‘(d) WORK ACTIVITIES DEFINED.—As used in this section, the
term ‘work activities’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) work experience (including work associated with the
refurbishing of publicly assisted housing) if sufficient private
sector employment is not available;
‘‘(5) on-the-job training;
‘‘(6) job search and job readiness assistance;
‘‘(7) community service programs;
‘‘(8) vocational educational training (not to exceed 12
months with respect to any individual);
‘‘(9) job skills training directly related to employment;
‘‘(10) education directly related to employment, in the case
of a recipient who has not attained 20 years of age, and has
not received a high school diploma or a certificate of high
school equivalency; and
‘‘(11) satisfactory attendance at secondary school, in the
case of a recipient who—
‘‘(A) has not completed secondary school; and
‘‘(B) is a dependent child, or a head of household who
has not attained 20 years of age.
‘‘(e) PENALTIES AGAINST INDIVIDUALS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
if an adult in a family receiving assistance under the State
program funded under this part refuses to engage in work
required in accordance with this section, the State shall—
‘‘(A) reduce the amount of assistance otherwise payable
to the family pro rata (or more, at the option of the State)
with respect to any period during a month in which the
adult so refuses; or
‘‘(B) terminate such assistance,
subject to such good cause and other exceptions as the State
may establish.
‘‘(2) EXCEPTION.—Notwithstanding paragraph (1), a State
may not reduce or terminate assistance under the State pro-
gram funded under this part based on a refusal of an adult
to work if the adult is a single custodial parent caring for
a child who has not attained 6 years of age, and the adult
proves that the adult has a demonstrated inability (as deter-
mined by the State) to obtain needed child care, for 1 or
more of the following reasons:
H. R. 4—23
‘‘(A) Unavailability of appropriate child care within
a reasonable distance from the individual’s home or work
site.
‘‘(B) Unavailability or unsuitability of informal child
care by a relative or under other arrangements.
‘‘(C) Unavailability of appropriate and affordable for-
mal child care arrangements.
‘‘(f) NONDISPLACEMENT IN WORK ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), an adult in
a family receiving assistance under a State program funded
under this part attributable to funds provided by the Federal
Government may fill a vacant employment position in order
to engage in a work activity described in subsection (d).
‘‘(2) NO FILLING OF CERTAIN VACANCIES.—No adult in a
work activity described in subsection (d) which is funded, in
whole or in part, by funds provided by the Federal Government
shall be employed or assigned—
‘‘(A) when any other individual is on layoff from the
same or any substantially equivalent job; or
‘‘(B) if the employer has terminated the employment
of any regular employee or otherwise caused an involuntary
reduction of its workforce in order to fill the vacancy so
created with an adult described in paragraph (1).
‘‘(3) NO PREEMPTION.—Nothing in this subsection shall pre-
empt or supersede any provision of State or local law that
provides greater protection for employees from displacement.
‘‘(g) SENSE OF THE CONGRESS.—It is the sense of the Congress
that in complying with this section, each State that operates a
program funded under this part is encouraged to assign the highest
priority to requiring adults in 2-parent families and adults in single-
parent families that include older preschool or school-age children
to be engaged in work activities.
‘‘(h) SENSE OF THE CONGRESS THAT STATES SHOULD IMPOSE
CERTAIN REQUIREMENTS ON NONCUSTODIAL, NONSUPPORTING MINOR
PARENTS.—It is the sense of the Congress that the States should
require noncustodial, nonsupporting parents who have not attained
18 years of age to fulfill community work obligations and attend
appropriate parenting or money management classes after school.
‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.
‘‘(a) IN GENERAL.—
‘‘(1) NO
ASSISTANCE
FOR
FAMILIES
WITHOUT
A
MINOR
CHILD.—A State to which a grant is made under section 403
shall not use any part of the grant to provide assistance to
a family, unless the family includes—
‘‘(A) a minor child who resides with a custodial parent
or other adult caretaker relative of the child; or
‘‘(B) a pregnant individual.
‘‘(2) NO ADDITIONAL CASH ASSISTANCE FOR CHILDREN BORN
TO FAMILIES RECEIVING ASSISTANCE.—
‘‘(A) GENERAL RULE.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide cash benefits for a minor child who is born
to—
‘‘(i) a recipient of assistance under the program
operated under this part; or
H. R. 4—24
‘‘(ii) a person who received such assistance at any
time during the 10-month period ending with the birth
of the child.
‘‘(B) EXCEPTION
FOR
CHILDREN
BORN
INTO
FAMILIES
WITH NO OTHER CHILDREN.—Subparagraph (A) shall not
apply to a minor child who is born into a family that
does not include any other children.
‘‘(C) EXCEPTION
FOR
VOUCHERS.—Subparagraph (A)
shall not apply to vouchers which are provided in lieu
of cash benefits and which may be used only to pay for
particular goods and services specified by the State as
suitable for the care of the child involved.
‘‘(D) EXCEPTION FOR RAPE OR INCEST.—Subparagraph
(A) shall not apply with respect to a child who is born
as a result of rape or incest.
‘‘(E) STATE ELECTION TO OPT OUT.—Subparagraph (A)
shall not apply to a State if State law specifically exempts
the State program funded under this part from the applica-
tion of subparagraph (A).
‘‘(F) SUBSTITUTION OF FAMILY CAPS IN EFFECT UNDER
WAIVERS.—Subparagraph (A) shall not apply to a State—
‘‘(i) if, as of the date of the enactment of this
part, there is in effect a waiver approved by the Sec-
retary under section 1115 which permits the State
to deny aid under the State plan approved under part
A of this title (as in effect without regard to the amend-
ments made by title I of the Personal Responsibility
and Work Opportunity Act of 1995) to a family by
reason of the birth of a child to a family member
otherwise eligible for such aid; and
‘‘(ii) for so long as the State continues to implement
such policy under the State program funded under
this part, under rules prescribed by the State.
‘‘(3) REDUCTION
OR
ELIMINATION
OF
ASSISTANCE
FOR
NONCOOPERATION IN CHILD SUPPORT.—If the agency responsible
for administering the State plan approved under part D deter-
mines that an individual is not cooperating with the State
in establishing, modifying, or enforcing a support order with
respect to a child of the individual, then the State—
‘‘(A) shall deduct from the assistance that would other-
wise be provided to the family of the individual under
the State program funded under this part the share of
such assistance attributable to the individual; and
‘‘(B) may deny the family any assistance under the
State program.
‘‘(4) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN
SUPPORT RIGHTS TO THE STATE.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall require, as a condition of providing
assistance to a family under the State program funded
under this part, that a member of the family assign to
the State any rights the family member may have (on
behalf of the family member or of any other person for
whom the family member has applied for or is receiving
such assistance) to support from any other person, not
exceeding the total amount of assistance so provided to
the family, which accrue (or have accrued) before the date
H. R. 4—25
the family leaves the program, which assignment, on and
after the date the family leaves the program, shall not
apply with respect to any support (other than support
collected pursuant to section 464) which accrued before
the family received such assistance and which the State
has not collected by—
‘‘(i) September 30, 2000, if the assignment is
executed on or after October 1, 1997, and before Octo-
ber 1, 2000; or
‘‘(ii) the date the family leaves the program, if
the assignment is executed on or after October 1, 2000.
‘‘(B) LIMITATION.—A State to which a grant is made
under section 403 shall not require, as a condition of provid-
ing assistance to any family under the State program
funded under this part, that a member of the family assign
to the State any rights to support described in subpara-
graph (A) which accrue after the date the family leaves
the program, except to the extent necessary to enable the
State to comply with section 457.
‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS WHO DO NOT
ATTEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PRO-
GRAM.—A State to which a grant is made under section 403
shall not use any part of the grant to provide assistance to
an individual who has not attained 18 years of age, is not
married, has a minor child at least 12 weeks of age in his
or her care, and has not successfully completed a high-school
education (or its equivalent), if the individual does not partici-
pate in—
‘‘(A) educational activities directed toward the attain-
ment of a high school diploma or its equivalent; or
‘‘(B) an alternative educational or training program
that has been approved by the State.
‘‘(6) NO ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN
ADULT-SUPERVISED SETTINGS.—
‘‘(A) IN GENERAL.—
‘‘(i) 
REQUIREMENT.—Except 
as 
provided 
in
subparagraph (B), a State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance to an individual described in
clause (ii) of this subparagraph if the individual and
the minor child referred to in clause (ii)(II) do not
reside in a place of residence maintained by a parent,
legal guardian, or other adult relative of the individual
as such parent’s, guardian’s, or adult relative’s own
home.
‘‘(ii) INDIVIDUAL
DESCRIBED.— For purposes of
clause (i), an individual described in this clause is
an individual who—
‘‘(I) has not attained 18 years of age; and
‘‘(II) is not married, and has a minor child
in his or her care.
‘‘(B) EXCEPTION.—
‘‘(i) PROVISION
OF, OR
ASSISTANCE
IN
LOCATING,
ADULT-SUPERVISED LIVING ARRANGEMENT.—In the case
of an individual who is described in clause (ii), the
State agency referred to in section 402(a)(4) shall pro-
vide, or assist the individual in locating, a second
H. R. 4—26
chance home, maternity home, or other appropriate
adult-supervised supportive living arrangement, taking
into consideration the needs and concerns of the
individual, unless the State agency determines that
the individual’s current living arrangement is appro-
priate, and thereafter shall require that the individual
and the minor child referred to in subparagraph
(A)(ii)(II) reside in such living arrangement as a condi-
tion of the continued receipt of assistance under the
State program funded under this part attributable to
funds provided by the Federal Government (or in an
alternative 
appropriate 
arrangement, 
should 
cir-
cumstances change and the current arrangement cease
to be appropriate).
‘‘(ii) INDIVIDUAL
DESCRIBED.—For purposes of
clause (i), an individual is described in this clause
if the individual is described in subparagraph (A)(ii),
and—
‘‘(I) the individual has no parent, legal guard-
ian or other appropriate adult relative described
in subclause (II) of his or her own who is living
or whose whereabouts are known;
‘‘(II) no living parent, legal guardian, or other
appropriate adult relative, who would otherwise
meet applicable State criteria to act as the individ-
ual’s legal guardian, of such individual allows the
individual to live in the home of such parent,
guardian, or relative;
‘‘(III) the State agency determines that—
‘‘(aa) the individual or the minor child
referred to in subparagraph (A)(ii)(II) is being
or has been subjected to serious physical or
emotional harm, sexual abuse, or exploitation
in the residence of the individual’s own parent
or legal guardian; or
‘‘(bb) substantial evidence exists of an act
or failure to act that presents an imminent
or serious harm if the individual and the minor
child lived in the same residence with the
individual’s own parent or legal guardian; or
‘‘(IV) the State agency otherwise determines
that it is in the best interest of the minor child
to waive the requirement of subparagraph (A) with
respect to the individual or the minor child.
‘‘(iii) SECOND-CHANCE HOME.—For purposes of this
subparagraph, the term ‘second-chance home’ means
an entity that provides individuals described in clause
(ii) with a supportive and supervised living arrange-
ment in which such individuals are required to learn
parenting skills, including child development, family
budgeting, health and nutrition, and other skills to
promote their long-term economic independence and
the well-being of their children.
‘‘(7) NO MEDICAL SERVICES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), a State to which a grant is made under section 403
H. R. 4—27
shall not use any part of the grant to provide medical
services.
‘‘(B) EXCEPTION FOR FAMILY PLANNING SERVICES.—As
used in subparagraph (A), the term ‘medical services’ does
not include family planning services.
‘‘(8) NO ASSISTANCE FOR MORE THAN 5 YEARS.—
‘‘(A) IN
GENERAL.—Except as provided in subpara-
graphs (B) and (C), a State to which a grant is made
under section 403 shall not use any part of the grant
to provide cash assistance to a family that includes an
adult who has received assistance under any State program
funded under this part attributable to funds provided by
the Federal Government, for 60 months (whether or not
consecutive) after the date the State program funded under
this part commences.
‘‘(B) MINOR
CHILD
EXCEPTION.—In determining the
number of months for which an individual who is a parent
or pregnant has received assistance under the State pro-
gram funded under this part, the State shall disregard
any month for which such assistance was provided with
respect to the individual and during which the individual
was—
‘‘(i) a minor child; and
‘‘(ii) not the head of a household or married to
the head of a household.
‘‘(C) HARDSHIP EXCEPTION.—
‘‘(i) IN GENERAL.—The State may exempt a family
from the application of subparagraph (A) by reason
of hardship or if the family includes an individual
who has been battered or subjected to extreme cruelty.
‘‘(ii) LIMITATION.—The number of families with
respect to which an exemption made by a State under
clause (i) is in effect for a fiscal year shall not exceed
15 percent of the average monthly number of families
to which assistance is provided under the State pro-
gram funded under this part.
‘‘(iii) BATTERED OR SUBJECT TO EXTREME CRUELTY
DEFINED.—For purposes of clause (i), an individual has
been battered or subjected to extreme cruelty if the
individual has been subjected to—
‘‘(I) physical acts that resulted in, or threat-
ened to result in, physical injury to the individual;
‘‘(II) sexual abuse;
‘‘(III) sexual activity involving a dependent
child;
‘‘(IV) being forced as the caretaker relative
of a dependent child to engage in nonconsensual
sexual acts or activities;
‘‘(V) threats of, or attempts at, physical or
sexual abuse;
‘‘(VI) mental abuse; or
‘‘(VII) neglect or deprivation of medical care.
‘‘(D) RULE
OF
INTERPRETATION.—Subparagraph (A)
shall not be interpreted to require any State to provide
assistance to any individual for any period of time under
the State program funded under this part.
H. R. 4—28
‘‘(9) DENIAL
OF
ASSISTANCE
FOR
YEARS
TO
A
PERSON
FOUND
TO
HAVE
FRAUDULENTLY
MISREPRESENTED
RESIDENCE
IN
ORDER
TO
OBTAIN
ASSISTANCE
IN
OR
MORE
STATES.—A
State to which a grant is made under section 403 shall not
use any part of the grant to provide cash assistance to an
individual during the 10-year period that begins on the date
the individual is convicted in Federal or State court of having
made a fraudulent statement or representation with respect
to the place of residence of the individual in order to receive
assistance simultaneously from 2 or more States under pro-
grams that are funded under this title, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under
the supplemental security income program under title XVI.
‘‘(10) DENIAL
OF
ASSISTANCE
FOR
FUGITIVE
FELONS
AND
PROBATION AND PAROLE VIOLATORS.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance to any individual who is—
‘‘(i) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime,
or an attempt to commit a crime, which is a felony
under the laws of the place from which the individual
flees, or which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such State;
or
‘‘(ii) violating a condition of probation or parole
imposed under Federal or State law.
‘‘(B) EXCHANGE OF INFORMATION WITH LAW ENFORCE-
MENT
AGENCIES.—If a State to which a grant is made
under section 403 establishes safeguards against the use
or disclosure of information about applicants or recipients
of assistance under the State program funded under this
part, the safeguards shall not prevent the State agency
administering the program from furnishing a Federal,
State, or local law enforcement officer, upon the request
of the officer, with the current address of any recipient
if the officer furnishes the agency with the name of the
recipient and notifies the agency that—
‘‘(i) the recipient—
‘‘(I) is described in subparagraph (A); or
‘‘(II) has information that is necessary for the
officer to conduct the official duties of the officer;
and
‘‘(ii) the location or apprehension of the recipient
is within such official duties.
‘‘(11) DENIAL
OF
ASSISTANCE
FOR
MINOR
CHILDREN
WHO
ARE
ABSENT
FROM
THE
HOME
FOR
A
SIGNIFICANT
PERIOD.—
‘‘(A) IN GENERAL.—A State to which a grant is made
under section 403 shall not use any part of the grant
to provide assistance for a minor child who has been,
or is expected by a parent (or other caretaker relative)
of the child to be, absent from the home for a period
of 45 consecutive days or, at the option of the State, such
period of not less than 30 and not more than 90 consecutive
days as the State may provide for in the State plan submit-
ted pursuant to section 402.
H. R. 4—29
‘‘(B) STATE
AUTHORITY
TO
ESTABLISH
GOOD
CAUSE
EXCEPTIONS.—The State may establish such good cause
exceptions to subparagraph (A) as the State considers
appropriate if such exceptions are provided for in the State
plan submitted pursuant to section 402.
‘‘(C) DENIAL OF ASSISTANCE FOR RELATIVE WHO FAILS
TO NOTIFY STATE AGENCY OF ABSENCE OF CHILD.—A State
to which a grant is made under section 403 shall not
use any part of the grant to provide assistance for an
individual who is a parent (or other caretaker relative)
of a minor child and who fails to notify the agency admin-
istering the State program funded under this part of the
absence of the minor child from the home for the period
specified in or provided for pursuant to subparagraph (A),
by the end of the 5-day period that begins with the date
that it becomes clear to the parent (or relative) that the
minor child will be absent for such period so specified
or provided for.
‘‘(12) INCOME SECURITY PAYMENTS NOT TO BE DISREGARDED
IN DETERMINING THE AMOUNT OF ASSISTANCE TO BE PROVIDED
TO
A
FAMILY.—If a State to which a grant is made under
section 403 uses any part of the grant to provide assistance
for any individual who is receiving a payment under a State
plan for old-age assistance approved under section 2, a State
program funded under part B that provides cash payments
for foster care, or the supplemental security income program
under title XVI, then the State shall not disregard the payment
in determining the amount of assistance to be provided under
the State program funded under this part, from funds provided
by the Federal Government, to the family of which the individ-
ual is a member.
‘‘(b) ALIENS.—For special rules relating to the treatment of
aliens, see section 402 of the Personal Responsibility and Work
Opportunity Act of 1995.
‘‘SEC. 409. PENALTIES.
‘‘(a) IN GENERAL.—Subject to this section:
‘‘(1) USE OF GRANT IN VIOLATION OF THIS PART.—
‘‘(A) GENERAL PENALTY.—If an audit conducted under
chapter 75 of title 31, United States Code, finds that an
amount paid to a State under section 403 for a fiscal
year has been used in violation of this part, the Secretary
shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year quarter
by the amount so used.
‘‘(B) ENHANCED
PENALTY
FOR
INTENTIONAL
VIOLA-
TIONS.—If the State does not prove to the satisfaction of
the Secretary that the State did not intend to use the
amount in violation of this part, the Secretary shall further
reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year quarter
by an amount equal to 5 percent of the State family assist-
ance grant.
‘‘(2) FAILURE TO SUBMIT REQUIRED REPORT.—
‘‘(A) IN
GENERAL.—If the Secretary determines that
a State has not, within 1 month after the end of a fiscal
quarter, submitted the report required by section 411(a)
H. R. 4—30
for the quarter year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the imme-
diately succeeding fiscal year by an amount equal to 4
percent of the State family assistance grant.
‘‘(B) RESCISSION
OF
PENALTY.—The Secretary shall
rescind a penalty imposed on a State under subparagraph
(A) with respect to a report for a fiscal quarter if the
State submits the report before the end of the immediately
succeeding fiscal quarter.
‘‘(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES.—
‘‘(A) IN
GENERAL.—If the Secretary determines that
a State to which a grant is made under section 403 for
a fiscal year has failed to comply with section 407(a) for
the fiscal year, the Secretary shall reduce the grant payable
to the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to not more
than 5 percent of the State family assistance grant.
‘‘(B) PENALTY BASED ON SEVERITY OF FAILURE.—The
Secretary shall impose reductions under subparagraph (A)
based on the degree of noncompliance.
‘‘(4) FAILURE TO PARTICIPATE IN THE INCOME AND ELIGI-
BILITY VERIFICATION SYSTEM.—If the Secretary determines that
a State program funded under this part is not participating
during a fiscal year in the income and eligibility verification
system required by section 1137, the Secretary shall reduce
the grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal to not
more than 2 percent of the State family assistance grant.
‘‘(5) FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT
AND CHILD SUPPORT ENFORCEMENT REQUIREMENTS UNDER PART
D.—Notwithstanding any other provision of this Act, if the
Secretary determines that the State agency that administers
a program funded under this part does not enforce the penalties
requested by the agency administering part D against recipients
of assistance under the State program who fail to cooperate
in establishing paternity in accordance with such part, the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year
(without regard to this section) by not more than 5 percent.
‘‘(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR
STATE WELFARE PROGRAMS.—If the Secretary determines that
a State has failed to repay any amount borrowed from the
Federal Loan Fund for State Welfare Programs established
under section 406 within the period of maturity applicable
to the loan, plus any interest owed on the loan, the Secretary
shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year quarter
(without regard to this section) by the outstanding loan amount,
plus the interest owed on the outstanding amount. The Sec-
retary shall not forgive any outstanding loan amount or interest
owed on the outstanding amount.
‘‘(7) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL
OF HISTORIC EFFORT.—
‘‘(A) IN GENERAL.—The Secretary shall reduce the grant
payable to the State under section 403(a)(1) for fiscal year
1997, 1998, 1999, 2000, or 2001 by the amount (if any)
by which qualified State expenditures for the then imme-
H. R. 4—31
diately preceding fiscal year is less than the applicable
percentage of historic State expenditures with respect to
the fiscal year.
‘‘(B) DEFINITIONS.—As used in this paragraph:
‘‘(i) QUALIFIED STATE EXPENDITURES.—
‘‘(I) IN
GENERAL.—The term ‘qualified State
expenditures’ means, with respect to a State and
a fiscal year, the total expenditures by the State
during the fiscal year, under all State programs,
for any of the following with respect to eligible
families:
‘‘(aa) Cash assistance.
‘‘(bb) Child care assistance.
‘‘(cc) Educational activities designed to
increase self-sufficiency, job training, and
work.
‘‘(dd) Administrative costs.
‘‘(ee) Any other use of funds allowable
under section 404(a)(1).
‘‘(II) EXCLUSION OF TRANSFERS FROM OTHER
STATE AND LOCAL PROGRAMS.—Such term does not
include funding supplanted by transfers from other
State and local programs.
‘‘(III) 
ELIGIBLE
FAMILIES.—As 
used 
in
subclause (I), the term ‘eligible families’ means
families eligible for assistance under the State pro-
gram funded under this part, and families who
would be eligible for such assistance but for the
application of paragraph (2) or (8) of section 408(a)
of this Act or section 402 of the Personal Respon-
sibility and Work Opportunity Act of 1995.
‘‘(ii) 
APPLICABLE
PERCENTAGE.—The 
term
‘applicable percentage’ means—
‘‘(I) for fiscal year 1996, 75 percent; and
‘‘(II) for fiscal years 1997, 1998, 1999, and
2000, 75 percent reduced (if appropriate) in accord-
ance with subparagraph (C)(iii).
‘‘(iii) HISTORIC
STATE
EXPENDITURES.—The term
‘historic State expenditures’ means, with respect to
a State and a fiscal year specified in subparagraph
(A), the lesser of—
‘‘(I) the expenditures by the State under parts
A and F (as in effect during fiscal year 1994)
for fiscal year 1994; or
‘‘(II) the amount which bears the same ratio
to the amount described in subclause (I) as—
‘‘(aa) the State family assistance grant for
the fiscal year immediately preceding the fis-
cal year specified in subparagraph (A), plus
the total amount required to be paid to the
State under former section 403 for fiscal year
1994 with respect to amounts expended by
the State for child care under subsection (g)
or (i) of section 402 (as in effect during fiscal
year 1994); bears to
‘‘(bb) the total amount required to be paid
to the State under former section 403 (as in
H. R. 4—32
effect during fiscal year 1994) for fiscal year
1994.
Such term does not include any expenditures under
the State plan approved under part A (as so in effect)
on behalf of individuals covered by a tribal family
assistance plan approved under section 412, as deter-
mined by the Secretary.
‘‘(iv) EXPENDITURES
BY
THE
STATE.—The term
‘expenditures by the State’ does not include—
‘‘(I) any expenditures from amounts made
available by the Federal Government;
‘‘(II) State funds expended for the medicaid
program under title XIX; or
‘‘(III) any State funds which are used to match
Federal funds or are expended as a condition of
receiving Federal funds under Federal programs
other than under this title.
‘‘(C) APPLICABLE
PERCENTAGE
REDUCED
FOR
STATES
WITH BEST OR MOST IMPROVED PERFORMANCE IN CERTAIN
AREAS.—
‘‘(i) SCORING OF STATE PERFORMANCE.—Beginning
with fiscal year 1997, the Secretary shall assign to
each State a score that represents the performance
of the State for the fiscal year in each category
described in clause (ii).
‘‘(ii) CATEGORIES.—The categories described in this
clause are the following:
‘‘(I) Increasing the number of families that
received assistance under a State program funded
under this part in the fiscal year, and that, during
the fiscal year, become ineligible for such assist-
ance as a result of unsubsidized employment.
‘‘(II) Reducing the percentage of families that,
within 18 months after becoming ineligible for
assistance under the State program funded under
this part, become eligible for such assistance.
‘‘(III) Increasing the average earnings of fami-
lies that receive assistance under this part.
‘‘(IV) Reducing the percentage of children in
the State that receive assistance under the State
program funded under this part.
‘‘(iii) REDUCTION
OF
MAINTENANCE
OF
EFFORT
THRESHOLD.—
‘‘(I) REDUCTION FOR STATES WITH 5 GREATEST
SCORES IN EACH CATEGORY OF PERFORMANCE.—The
applicable percentage for a State for a fiscal year
shall be reduced by 2 percentage points, with
respect to each category described in clause (ii)
for which the score assigned to the State under
clause (i) for the immediately preceding fiscal year
is 1 of the 5 highest scores so assigned to States.
‘‘(II) REDUCTION FOR STATES WITH 5 GREATEST
IMPROVEMENT
IN
SCORES
IN
EACH
CATEGORY
OF
PERFORMANCE.—The applicable percentage for a
State for a fiscal year shall be reduced by 2
percentage points for a State for a fiscal year,
with respect to each category described in clause
H. R. 4—33
(ii) for which the difference between the score
assigned to the State under clause (i) for the imme-
diately preceding fiscal year and the score so
assigned to the State for the 2nd preceding fiscal
year is 1 of the 5 greatest such differences.
‘‘(III) 
LIMITATION
ON
REDUCTION.—The
applicable percentage for a State for a fiscal year
may not be reduced by more than 8 percentage
points pursuant to this clause.
‘‘(8) SUBSTANTIAL NONCOMPLIANCE OF STATE CHILD SUPPORT
ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D.—
‘‘(A) IN GENERAL.—If a State program operated under
part D is found as a result of a review conducted under
section 452(a)(4) not to have complied substantially with
the requirements of such part for any quarter, and the
Secretary determines that the program is not complying
substantially with such requirements at the time the find-
ing is made, the Secretary shall reduce the grant payable
to the State under section 403(a)(1) for the quarter and
each subsequent quarter that ends before the 1st quarter
throughout which the program is found not to be in
substantial compliance with such requirements by—
‘‘(i) not less than 1 nor more than 2 percent;
‘‘(ii) not less than 2 nor more than 3 percent,
if the finding is the 2nd consecutive such finding made
as a result of such a review; or
‘‘(iii) not less than 3 nor more than 5 percent,
if the finding is the 3rd or a subsequent consecutive
such finding made as a result of such a review.
‘‘(B) DISREGARD
OF
NONCOMPLIANCE
WHICH
IS
OF
A
TECHNICAL NATURE.—For purposes of subparagraph (A) and
section 452(a)(4), a State which is not in full compliance
with the requirements of this part shall be determined
to be in substantial compliance with such requirements
only if the Secretary determines that any noncompliance
with such requirements is of a technical nature which
does not adversely affect the performance of the State’s
program operated under part D.
‘‘(9) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTIN-
GENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.—
If, at the end of any fiscal year during which amounts from
the Contingency Fund for State Welfare Programs have been
paid to a State, the Secretary finds that the State has failed,
during the fiscal year, to expend under the State program
funded under this part an amount equal to at least 100 percent
of the level of historic State expenditures (as defined in para-
graph (7)(B)(iii) of this subsection) with respect to the fiscal
year, the Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeeding fiscal
year by the total of the amounts so paid to the State.
‘‘(10) FAILURE
TO
EXPEND
ADDITIONAL
STATE
FUNDS
TO
REPLACE GRANT REDUCTIONS.—If the grant payable to a State
under section 403(a)(1) for a fiscal year is reduced by reason
of this subsection, the State shall, during the immediately
succeeding fiscal year, expend under the State program funded
under this part an amount equal to the total amount of such
reductions.
H. R. 4—34
‘‘(b) REASONABLE CAUSE EXCEPTION.—
‘‘(1) IN GENERAL.—The Secretary may not impose a penalty
on a State under subsection (a) with respect to a requirement
if the Secretary determines that the State has reasonable cause
for failing to comply with the requirement.
‘‘(2) EXCEPTION.—Paragraph (1) of this subsection shall
not apply to any penalty under subsection (a)(7).
‘‘(c) CORRECTIVE COMPLIANCE PLAN.—
‘‘(1) IN GENERAL.—
‘‘(A) NOTIFICATION OF VIOLATION.—Before imposing a
penalty against a State under subsection (a) with respect
to a violation of this part, the Secretary shall notify the
State of the violation and allow the State the opportunity
to enter into a corrective compliance plan in accordance
with this subsection which outlines how the State will
correct the violation and how the State will insure continu-
ing compliance with this part.
‘‘(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLI-
ANCE PLAN.—During the 60-day period that begins on the
date the State receives a notice provided under subpara-
graph (A) with respect to a violation, the State may submit
to the Federal Government a corrective compliance plan
to correct the violation.
‘‘(C) CONSULTATION
ABOUT
MODIFICATIONS.—During
the 60-day period that begins with the date the Secretary
receives a corrective compliance plan submitted by a State
in accordance with subparagraph (B), the Secretary may
consult with the State on modifications to the plan.
‘‘(D) ACCEPTANCE OF PLAN.— A corrective compliance
plan submitted by a State in accordance with subparagraph
(B) is deemed to be accepted by the Secretary if the Sec-
retary does not accept or reject the plan during 60-day
period that begins on the date the plan is submitted.
‘‘(2) EFFECT
OF
CORRECTING
VIOLATION.—The Secretary
may not impose any penalty under subsection (a) with respect
to any violation covered by a State corrective compliance plan
accepted by the Secretary if the State corrects the violation
pursuant to the plan.
‘‘(3) EFFECT OF FAILING TO CORRECT VIOLATION.—The Sec-
retary shall assess some or all of a penalty imposed on a
State under subsection (a) with respect to a violation if the
State does not, in a timely manner, correct the violation pursu-
ant to a State corrective compliance plan accepted by the Sec-
retary.
‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(1) IN GENERAL.—In imposing the penalties described in
subsection (a), the Secretary shall not reduce any quarterly
payment to a State by more than 25 percent.
‘‘(2) CARRYFORWARD OF UNRECOVERED PENALTIES.—To the
extent that paragraph (1) of this subsection prevents the Sec-
retary from recovering during a fiscal year the full amount
of penalties imposed on a State under subsection (a) of this
section for a prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant payable to
the State under section 403(a)(1) for the immediately succeeding
fiscal year.
H. R. 4—35
‘‘SEC. 410. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—Within 5 days after the date the Secretary
takes any adverse action under this part with respect to a State,
the Secretary shall notify the chief executive officer of the State
of the adverse action, including any action with respect to the
State plan submitted under section 402 or the imposition of a
penalty under section 409.
‘‘(b) ADMINISTRATIVE REVIEW.—
‘‘(1) IN GENERAL.—Within 60 days after the date a State
receives notice under subsection (a) of an adverse action, the
State may appeal the action, in whole or in part, to the Depart-
mental Appeals Board established in the Department of Health
and Human Services (in this section referred to as the ‘Board’)
by filing an appeal with the Board.
‘‘(2) PROCEDURAL
RULES.—The Board shall consider an
appeal filed by a State under paragraph (1) on the basis of
such documentation as the State may submit and as the Board
may require to support the final decision of the Board. In
deciding whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thorough review
of the issues and take into account all relevant evidence. The
Board shall make a final determination with respect to an
appeal filed under paragraph (1) not less than 60 days after
the date the appeal is filed.
‘‘(c) JUDICIAL REVIEW OF ADVERSE DECISION.—
‘‘(1) IN GENERAL.—Within 90 days after the date of a final
decision by the Board under this section with respect to an
adverse action taken against a State, the State may obtain
judicial review of the final decision (and the findings incor-
porated into the final decision) by filing an action in—
‘‘(A) the district court of the United States for the
judicial district in which the principal or headquarters
office of the State agency is located; or
‘‘(B) the United States District Court for the District
of Columbia.
‘‘(2) PROCEDURAL RULES.—The district court in which an
action is filed under paragraph (1) shall review the final deci-
sion of the Board on the record established in the administrative
proceeding, in accordance with the standards of review pre-
scribed by subparagraphs (A) through (E) of section 706(2)
of title 5, United States Code. The review shall be on the
basis of the documents and supporting data submitted to the
Board.
‘‘SEC. 411. DATA COLLECTION AND REPORTING.
‘‘(a) QUARTERLY REPORTS BY STATES.—
‘‘(1) GENERAL REPORTING REQUIREMENT.—
‘‘(A) CONTENTS OF REPORT.—Beginning July 1, 1996,
each State shall collect on a monthly basis, and report
to the Secretary on a quarterly basis, the following
disaggregated case record information on the families
receiving assistance under the State program funded under
this part:
‘‘(i) The county of residence of the family.
‘‘(ii) Whether a child receiving such assistance or
an adult in the family is disabled.
‘‘(iii) The ages of the members of such families.
H. R. 4—36
‘‘(iv) The number of individuals in the family, and
the relation of each family member to the youngest
child in the family.
‘‘(v) The employment status and earnings of the
employed adult in the family.
‘‘(vi) The marital status of the adults in the family,
including whether such adults have never married,
are widowed, or are divorced.
‘‘(vii) The race and educational status of each adult
in the family.
‘‘(viii) The race and educational status of each
child in the family.
‘‘(ix) Whether the family received subsidized hous-
ing, medical assistance under the State plan approved
under title XIX, food stamps, or subsidized child care,
and if the latter 2, the amount received.
‘‘(x) The number of months that the family has
received each type of assistance under the program.
‘‘(xi) If the adults participated in, and the number
of hours per week of participation in, the following
activities:
‘‘(I) Education.
‘‘(II) Subsidized private sector employment.
‘‘(III) Unsubsidized employment.
‘‘(IV) Public sector employment, work experi-
ence, or community service.
‘‘(V) Job search.
‘‘(VI) Job skills training or on-the-job training.
‘‘(VII) Vocational education.
‘‘(xii) Information necessary to calculate participa-
tion rates under section 407.
‘‘(xiii) The type and amount of assistance received
under the program, including the amount of and reason
for any reduction of assistance (including sanctions).
‘‘(xiv) From a sample of closed cases, whether the
family left the program, and if so, whether the family
left due to—
‘‘(I) employment;
‘‘(II) marriage;
‘‘(III) the prohibition set forth in section
408(a)(8);
‘‘(IV) sanction; or
‘‘(V) State policy.
‘‘(xv) Any amount of unearned income received
by any member of the family.
‘‘(xvi) The citizenship of the members of the family.
‘‘(B) USE OF ESTIMATES.—
‘‘(i) 
AUTHORITY.—A 
State 
may 
comply 
with
subparagraph (A) by submitting an estimate which
is obtained through the use of scientifically acceptable
sampling methods approved by the Secretary.
‘‘(ii) SAMPLING
AND
OTHER
METHODS.—The Sec-
retary shall provide the States with such case sampling
plans and data collection procedures as the Secretary
deems necessary to produce statistically valid esti-
mates of the performance of State programs funded
under this part. The Secretary may develop and imple-
H. R. 4—37
ment procedures for verifying the quality of data
submitted by the States.
‘‘(2) REPORT ON USE OF FEDERAL FUNDS TO COVER ADMINIS-
TRATIVE COSTS AND OVERHEAD.—The report required by para-
graph (1) for a fiscal quarter shall include a statement of
the percentage of the funds paid to the State under this part
for the quarter that are used to cover administrative costs
or overhead.
‘‘(3) REPORT ON STATE EXPENDITURES ON PROGRAMS FOR
NEEDY
FAMILIES.—The report required by paragraph (1) for
a fiscal quarter shall include a statement of the total amount
expended by the State during the quarter on programs for
needy families.
‘‘(4) REPORT ON NONCUSTODIAL PARENTS PARTICIPATING IN
WORK ACTIVITIES.—The report required by paragraph (1) for
a fiscal quarter shall include the number of noncustodial par-
ents in the State who participated in work activities (as defined
in section 407(d)) during the quarter.
‘‘(5) REPORT
ON
TRANSITIONAL
SERVICES.—The report
required by paragraph (1) for a fiscal quarter shall include
the total amount expended by the State during the quarter
to provide transitional services to a family that has ceased
to receive assistance under this part because of employment,
along with a description of such services.
‘‘(6) REGULATIONS.—The Secretary shall prescribe such
regulations as may be necessary to define the data elements
with respect to which reports are required by this subsection.
‘‘(b) ANNUAL REPORTS TO THE CONGRESS BY THE SECRETARY.—
Not later than 6 months after the end of fiscal year 1997, and
each fiscal year thereafter, the Secretary shall transmit to the
Congress a report describing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in section 407(a);
and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earnings of needy
families, and child support collections; and
‘‘(ii) decreasing out-of-wedlock pregnancies and
child poverty;
‘‘(2) the demographic and financial characteristics of fami-
lies applying for assistance, families receiving assistance, and
families that become ineligible to receive assistance;
‘‘(3) the characteristics of each State program funded under
this part; and
‘‘(4) the trends in employment and earnings of needy fami-
lies with minor children living at home.
‘‘SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
‘‘(a) GRANTS FOR INDIAN TRIBES.—
‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—For each of fiscal years 1997, 1998,
1999, and 2000, the Secretary shall pay to each Indian
tribe that has an approved tribal family assistance plan
a tribal family assistance grant for the fiscal year in an
amount equal to the amount determined under subpara-
graph (B), and shall reduce the grant payable under section
403(a)(1) to any State in which lies the service area or
H. R. 4—38
areas of the Indian tribe by that portion of the amount
so determined that is attributable to expenditures by the
State.
‘‘(B) AMOUNT DETERMINED.—
‘‘(i) IN GENERAL.—The amount determined under
this subparagraph is an amount equal to the total
amount of the Federal payments to a State or States
under section 403 (as in effect during such fiscal year)
for fiscal year 1994 attributable to expenditures (other
than child care expenditures) by the State or States
under parts A and F (as so in effect) for fiscal year
1994 for Indian families residing in the service area
or areas identified by the Indian tribe pursuant to
subsection (b)(1)(C) of this section.
‘‘(ii) USE OF STATE SUBMITTED DATA.—
‘‘(I) IN
GENERAL.—The Secretary shall use
State submitted data to make each determination
under clause (i).
‘‘(II) DISAGREEMENT
WITH
DETERMINATION.—
If an Indian tribe or tribal organization disagrees
with State submitted data described under
subclause (I), the Indian tribe or tribal organiza-
tion may submit to the Secretary such additional
information as may be relevant to making the
determination under clause (i) and the Secretary
may consider such information before making such
determination.
‘‘(2) GRANTS
FOR
INDIAN
TRIBES
THAT
RECEIVED
JOBS
FUNDS.—
‘‘(A) IN
GENERAL.—The Secretary shall pay to each
eligible Indian tribe for each of fiscal years 1996, 1997,
1998, 1999, and 2000 a grant in an amount equal to the
amount received by the Indian tribe in fiscal year 1994
under section 482(i) (as in effect during fiscal year 1994).
‘‘(B) ELIGIBLE INDIAN TRIBE.—For purposes of subpara-
graph (A), the term ‘eligible Indian tribe’ means an Indian
tribe or Alaska Native organization that conducted a job
opportunities and basic skills training program in fiscal
year 1995 under section 482(i) (as in effect during fiscal
year 1995).
‘‘(C) USE OF GRANT.—Each Indian tribe to which a
grant is made under this paragraph shall use the grant
for the purpose of operating a program to make work
activities available to members of the Indian tribe.
‘‘(D) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there
are appropriated $7,638,474 for each fiscal year specified
in subparagraph (A) for grants under subparagraph (A).
‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—
‘‘(1) IN GENERAL.—Any Indian tribe that desires to receive
a tribal family assistance grant shall submit to the Secretary
a 3-year tribal family assistance plan that—
‘‘(A) outlines the Indian tribe’s approach to providing
welfare-related services for the 3-year period, consistent
with this section;
‘‘(B) specifies whether the welfare-related services pro-
vided under the plan will be provided by the Indian tribe
H. R. 4—39
or through agreements, contracts, or compacts with inter-
tribal consortia, States, or other entities;
‘‘(C) identifies the population and service area or areas
to be served by such plan;
‘‘(D) provides that a family receiving assistance under
the plan may not receive duplicative assistance from other
State or tribal programs funded under this part;
‘‘(E) identifies the employment opportunities in or near
the service area or areas of the Indian tribe and the manner
in which the Indian tribe will cooperate and participate
in enhancing such opportunities for recipients of assistance
under the plan consistent with any applicable State stand-
ards; and
‘‘(F) applies the fiscal accountability provisions of sec-
tion 5(f)(1) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450c(f)(1)), relating to the submis-
sion of a single-agency audit report required by chapter
75 of title 31, United States Code.
‘‘(2) APPROVAL.—The Secretary shall approve each tribal
family assistance plan submitted in accordance with paragraph
(1).
‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this section shall
preclude the development and submission of a single tribal
family assistance plan by the participating Indian tribes of
an intertribal consortium.
‘‘(c) MINIMUM WORK PARTICIPATION REQUIREMENTS AND TIME
LIMITS.—The Secretary, with the participation of Indian tribes,
shall establish for each Indian tribe receiving a grant under this
section minimum work participation requirements, appropriate time
limits for receipt of welfare-related services under the grant, and
penalties against individuals—
‘‘(1) consistent with the purposes of this section;
‘‘(2) consistent with the economic conditions and resources
available to each tribe; and
‘‘(3) similar to comparable provisions in section 407(d).
‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this section shall
preclude an Indian tribe from seeking emergency assistance from
any Federal loan program or emergency fund.
‘‘(e) ACCOUNTABILITY.—Nothing in this section shall be con-
strued to limit the ability of the Secretary to maintain program
funding accountability consistent with—
‘‘(1) generally accepted accounting principles; and
‘‘(2) the requirements of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et seq.).
‘‘(f) PENALTIES.—
‘‘(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall
apply to an Indian tribe with an approved tribal assistance
plan in the same manner as such subsections apply to a State.
‘‘(2) Section 409(a)(3) shall apply to an Indian tribe with
an approved tribal assistance plan by substituting ‘meet mini-
mum work participation requirements established under section
412(c)’ for ‘comply with section 407(a)’.
‘‘(g) DATA COLLECTION
AND REPORTING.—Section 411 shall
apply to an Indian tribe with an approved tribal family assistance
plan.
‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
H. R. 4—40
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
this section, and except as provided in paragraph (2), an Indian
tribe in the State of Alaska that receives a tribal family assist-
ance grant under this section shall use the grant to operate
a program in accordance with requirements comparable to the
requirements applicable to the program of the State of Alaska
funded under this part. Comparability of programs shall be
established on the basis of program criteria developed by the
Secretary in consultation with the State of Alaska and such
Indian tribes.
‘‘(2) WAIVER.—An Indian tribe described in paragraph (1)
may apply to the appropriate State authority to receive a waiver
of the requirement of paragraph (1).
‘‘SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
‘‘(a) RESEARCH.—The Secretary shall conduct research on the
benefits, effects, and costs of operating different State programs
funded under this part, including time limits relating to eligibility
for assistance. The research shall include studies on the effects
of different programs and the operation of such programs on welfare
dependency, illegitimacy, teen pregnancy, employment rates, child
well-being, and any other area the Secretary deems appropriate.
The Secretary shall also conduct research on the costs and benefits
of State activities under section 409.
‘‘(b) 
DEVELOPMENT
AND
EVALUATION
OF
INNOVATIVE
APPROACHES TO REDUCING WELFARE DEPENDENCY AND INCREASING
CHILD WELL-BEING.—
‘‘(1) IN GENERAL.—The Secretary may assist States in devel-
oping, and shall evaluate, innovative approaches for reducing
welfare dependency and increasing the well-being of minor
children living at home with respect to recipients of assistance
under programs funded under this part. The Secretary may
provide funds for training and technical assistance to carry
out the approaches developed pursuant to this paragraph.
‘‘(2) EVALUATIONS.—In performing the evaluations under
paragraph (1), the Secretary shall, to the maximum extent
feasible, use random assignment as an evaluation methodology.
‘‘(c) DISSEMINATION
OF INFORMATION.—The Secretary shall
develop innovative methods of disseminating information on any
research, evaluations, and studies conducted under this section,
including the facilitation of the sharing of information and best
practices among States and localities through the use of computers
and other technologies.
‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF MOST AND
LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Secretary shall rank
annually the States to which grants are paid under section
403 in the order of their success in placing recipients of assist-
ance under the State program funded under this part into
long-term private sector jobs, reducing the overall welfare case-
load, and, when a practicable method for calculating this
information becomes available, diverting individuals from for-
mally applying to the State program and receiving assistance.
In ranking States under this subsection, the Secretary shall
take into account the average number of minor children living
at home in families in the State that have incomes below
H. R. 4—41
the poverty line and the amount of funding provided each
State for such families.
‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUCCESSFUL WORK
PROGRAMS.—The Secretary shall review the programs of the
3 States most recently ranked highest under paragraph (1)
and the 3 States most recently ranked lowest under paragraph
(1) that provide parents with work experience, assistance in
finding employment, and other work preparation activities and
support services to enable the families of such parents to leave
the program and become self-sufficient.
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF ISSUES RELAT-
ING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN GENERAL.—The Secretary shall annually rank
States to which grants are made under section 403 based
on the following ranking factors:
‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RATIOS.—The ratio
represented by—
‘‘(I) the total number of out-of-wedlock births
in families receiving assistance under the State
program under this part in the State for the most
recent fiscal year for which information is avail-
able; over
‘‘(II) the total number of births in families
receiving assistance under the State program
under this part in the State for such year.
‘‘(ii) NET
CHANGES
IN
THE
OUT-OF-WEDLOCK
RATIO.—The difference between the ratio described in
subparagraph (A)(i) with respect to a State for the
most recent fiscal year for which such information
is available and the ratio with respect to the State
for the immediately preceding year.
‘‘(2) ANNUAL REVIEW.—The Secretary shall review the pro-
grams of the 5 States most recently ranked highest under
paragraph (1) and the 5 States most recently ranked the lowest
under paragraph (1).
‘‘(f) STATE-INITIATED EVALUATIONS.—A State shall be eligible
to receive funding to evaluate the State program funded under
this part if—
‘‘(1) the State submits a proposal to the Secretary for
the evaluation;
‘‘(2) the Secretary determines that the design and approach
of the evaluation is rigorous and is likely to yield information
that is credible and will be useful to other States, and
‘‘(3) unless otherwise waived by the Secretary, the State
contributes to the cost of the evaluation, from non-Federal
sources, an amount equal to at least 10 percent of the cost
of the evaluation.
‘‘(g) FUNDING OF STUDIES AND DEMONSTRATIONS.—
‘‘(1) IN GENERAL.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appro-
priated $15,000,000 for each fiscal year specified in section
403(a)(1) for the purpose of paying—
‘‘(A) the cost of conducting the research described in
subsection (a);
H. R. 4—42
‘‘(B) the cost of developing and evaluating innovative
approaches for reducing welfare dependency and increasing
the well-being of minor children under subsection (b);
‘‘(C) the Federal share of any State-initiated study
approved under subsection (f); and
‘‘(D) an amount determined by the Secretary to be
necessary to operate and evaluate demonstration projects,
relating to this part, that are in effect or approved under
section 1115 as of September 30, 1995, and are continued
after such date.
‘‘(2) ALLOCATION.—Of the amount appropriated under para-
graph (1) for a fiscal year—
‘‘(A) 50 percent shall be allocated for the purposes
described in subparagraphs (A) and (B) of paragraph (1),
and
‘‘(B) 50 percent shall be allocated for the purposes
described in subparagraphs (C) and (D) of paragraph (1).
‘‘SEC. 414. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall expand
the Survey of Income and Program Participation as necessary to
obtain such information as will enable interested persons to evalu-
ate the impact of the amendments made by title I of the Personal
Responsibility and Work Opportunity Act of 1995 on a random
national sample of recipients of assistance under State programs
funded under this part and (as appropriate) other low income fami-
lies, and in doing so, shall pay particular attention to the issues
of out-of-wedlock birth, welfare dependency, the beginning and end
of welfare spells, and the causes of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the Treasury of
the United States not otherwise appropriated, there are appro-
priated $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999,
2000, 2001, and 2002 for payment to the Bureau of the Census
to carry out subsection (a).
‘‘SEC. 415. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) WAIVERS IN EFFECT ON DATE OF ENACTMENT OF WEL-
FARE REFORM.—Except as provided in paragraph (3), if any
waiver granted to a State under section 1115 or otherwise
which relates to the provision of assistance under a State
plan under this part (as in effect on September 30, 1995)
is in effect as of the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1995, the amend-
ments made by such Act shall not apply with respect to the
State before the expiration (determined without regard to any
extensions) of the waiver to the extent such amendments are
inconsistent with the waiver.
‘‘(2) WAIVERS GRANTED SUBSEQUENTLY.—Except as provided
in paragraph (3), if any waiver granted to a State under section
1115 or otherwise which relates to the provision of assistance
under a State plan under this part (as in effect on September
30, 1995) is submitted to the Secretary before the date of
the enactment of the Personal Responsibility and Work Oppor-
tunity Act of 1995 and approved by the Secretary before the
effective date of this title, and the State demonstrates to the
satisfaction of the Secretary that the waiver will not result
in Federal expenditures under title IV of this Act (as in effect
H. R. 4—43
without regard to the amendments made by the Personal
Responsibility and Work Opportunity Act of 1995) that are
greater than would occur in the absence of the waiver, such
amendments shall not apply with respect to the State before
the expiration (determined without regard to any extensions)
of the waiver to the extent such amendments are inconsistent
with the waiver.
‘‘(3) FINANCING
LIMITATION.—Notwithstanding any other
provision of law, beginning with fiscal year 1996, a State operat-
ing under a waiver described in paragraph (1) shall be entitled
to payment under section 403 for the fiscal year, in lieu of
any other payment provided for in the waiver.
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN
GENERAL.—A State may terminate a waiver
described in subsection (a) before the expiration of the waiver.
‘‘(2) REPORT.—A State which terminates a waiver under
paragraph (1) shall submit a report to the Secretary summariz-
ing the waiver and any available information concerning the
result or effect of the waiver.
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, a State that, not later than the date described
in subparagraph (B), submits a written request to termi-
nate a waiver described in subsection (a) shall be held
harmless for accrued cost neutrality liabilities incurred
under the waiver.
‘‘(B) DATE
DESCRIBED.—The date described in this
subparagraph is the later of—
‘‘(i) January 1, 1996; or
‘‘(ii) 90 days following the adjournment of the first
regular session of the State legislature that begins
after the date of the enactment of the Personal Respon-
sibility and Work Opportunity Act of 1995.
‘‘(c) SECRETARIAL ENCOURAGEMENT
OF CURRENT WAIVERS.—
The Secretary shall encourage any State operating a waiver
described in subsection (a) to continue the waiver and to evaluate,
using random sampling and other characteristics of accepted sci-
entific evaluations, the result or effect of the waiver.
‘‘(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A State may elect
to continue 1 or more individual waivers described in subsection
(a).
‘‘SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D shall be administered
by an Assistant Secretary for Family Support within the Depart-
ment of Health and Human Services, who shall be appointed by
the President, by and with the advice and consent of the Senate,
and who shall be in addition to any other Assistant Secretary
of Health and Human Services provided for by law.
‘‘SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
‘‘No officer or employee of the Federal Government may regulate
the conduct of States under this part or enforce any provision
of this part, except to the extent expressly provided in this part.
‘‘SEC. 418. DEFINITIONS.
‘‘As used in this part:
H. R. 4—44
‘‘(1) ADULT.—The term ‘adult’ means an individual who
is not a minor child.
‘‘(2) MINOR
CHILD.—The term ‘minor child’ means an
individual who—
‘‘(A) has not attained 18 years of age; or
‘‘(B) has not attained 19 years of age and is a full-
time student in a secondary school (or in the equivalent
level of vocational or technical training).
‘‘(3) FISCAL YEAR.—The term ‘fiscal year’ means any 12-
month period ending on September 30 of a calendar year.
‘‘(4) INDIAN, INDIAN
TRIBE, AND
TRIBAL
ORGANIZATION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the terms ‘Indian’, ‘Indian tribe’, and ‘tribal organiza-
tion’ have the meaning given such terms by section 4
of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—
The term ‘Indian tribe’ means, with respect to the State
of Alaska, only the Metlakatla Indian Community of the
Annette Islands Reserve and the following Alaska Native
regional nonprofit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
‘‘(iv) Association of Village Council Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
‘‘(viii) Aleutian and Pribilof Island Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Association.
‘‘(5) STATE.—Except as otherwise specifically provided, the
term ‘State’ means the 50 States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, and American Samoa.’’.
SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRI-
VATE ORGANIZATIONS.
(a) IN GENERAL.—
(1) STATE OPTIONS.—A State may—
(A) administer and provide services under the pro-
grams described in subparagraphs (A) and (B)(i) of para-
graph (2) through contracts with charitable, religious, or
private organizations; and
(B) provide beneficiaries of assistance under the pro-
grams described in subparagraphs (A) and (B)(ii) of para-
graph (2) with certificates, vouchers, or other forms of
disbursement 
which 
are 
redeemable 
with 
such
organizations.
(2) PROGRAMS DESCRIBED.—The programs described in this
paragraph are the following programs:
(A) A State program funded under part A of title
IV of the Social Security Act (as amended by section 103
of this Act).
H. R. 4—45
(B) Any other program established or modified under
title I, II, or VI of this Act, that—
(i) permits contracts with organizations; or
(ii) permits certificates, vouchers, or other forms
of disbursement to be provided to beneficiaries, as a
means of providing assistance.
(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section
is to allow States to contract with religious organizations, or to
allow religious organizations to accept certificates, vouchers, or
other forms of disbursement under any program described in sub-
section (a)(2), on the same basis as any other nongovernmental
provider without impairing the religious character of such organiza-
tions, and without diminishing the religious freedom of beneficiaries
of assistance funded under such program.
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.—
In the event a State exercises its authority under subsection (a),
religious organizations are eligible, on the same basis as any other
private organization, as contractors to provide assistance, or to
accept certificates, vouchers, or other forms of disbursement, under
any program described in subsection (a)(2) so long as the programs
are implemented consistent with the Establishment Clause of the
United States Constitution. Except as provided in subsection (k),
neither the Federal Government nor a State receiving funds under
such programs shall discriminate against an organization which
is or applies to be a contractor to provide assistance, or which
accepts certificates, vouchers, or other forms of disbursement, on
the basis that the organization has a religious character.
(d) RELIGIOUS CHARACTER AND FREEDOM.—
(1) RELIGIOUS
ORGANIZATIONS.—A religious organization
with a contract described in subsection (a)(1)(A), or which
accepts certificates, vouchers, or other forms of disbursement
under subsection (a)(1)(B), shall retain its independence from
Federal, State, and local governments, including such organiza-
tion’s control over the definition, development, practice, and
expression of its religious beliefs.
(2) ADDITIONAL SAFEGUARDS.—Neither the Federal Govern-
ment nor a State shall require a religious organization to—
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or other
symbols;
in order to be eligible to contract to provide assistance, or
to accept certificates, vouchers, or other forms of disbursement,
funded under a program described in subsection (a)(2).
(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
(1) IN GENERAL.—If an individual described in paragraph
(2) has an objection to the religious character of the organization
or institution from which the individual receives, or would
receive, assistance funded under any program described in sub-
section (a)(2), the State in which the individual resides shall
provide such individual (if otherwise eligible for such assist-
ance) within a reasonable period of time after the date of
such objection with assistance from an alternative provider
that is accessible to the individual and the value of which
is not less than the value of the assistance which the individual
would have received from such organization.
(2) INDIVIDUAL DESCRIBED.—An individual described in this
paragraph is an individual who receives, applies for, or requests
H. R. 4—46
to apply for, assistance under a program described in subsection
(a)(2).
(f) EMPLOYMENT PRACTICES.—A religious organization’s exemp-
tion provided under section 702 of the Civil Rights Act of 1964
(42 U.S.C. 2000e–1a) regarding employment practices shall not
be affected by its participation in, or receipt of funds from, programs
described in subsection (a)(2).
(g) NONDISCRIMINATION AGAINST BENEFICIARIES.—Except as
otherwise provided in law, a religious organization shall not
discriminate against an individual in regard to rendering assistance
funded under any program described in subsection (a)(2) on the
basis of religion, a religious belief, or refusal to actively participate
in a religious practice.
(h) FISCAL ACCOUNTABILITY.—
(1) IN GENERAL.—Except as provided in paragraph (2), any
religious organization contracting to provide assistance funded
under any program described in subsection (a)(2) shall be sub-
ject to the same regulations as other contractors to account
in accord with generally accepted auditing principles for the
use of such funds provided under such programs.
(2) LIMITED AUDIT.—If such organization segregates Federal
funds provided under such programs into separate accounts,
then only the financial assistance provided with such funds
shall be subject to audit.
(i) COMPLIANCE.—Any party which seeks to enforce its rights
under this section may assert a civil action for injunctive relief
exclusively in an appropriate State court against the entity or
agency that allegedly commits such violation.
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.—
No funds provided directly to institutions or organizations to provide
services and administer programs under subsection (a)(1)(A) shall
be expended for sectarian worship, instruction, or proselytization.
(k) PREEMPTION.—Nothing in this section shall be construed
to preempt any provision of a State constitution or State statute
that prohibits or restricts the expenditure of State funds in or
by religious organizations.
SEC. 105. CENSUS 
DATA 
ON 
GRANDPARENTS 
AS 
PRIMARY
CAREGIVERS FOR THEIR GRANDCHILDREN.
(a) IN GENERAL.—Not later than 90 days after the date of
the enactment of this Act, the Secretary of Commerce, in carrying
out section 141 of title 13, United States Code, shall expand the
data collection efforts of the Bureau of the Census (in this section
referred to as the ‘‘Bureau’’) to enable the Bureau to collect statis-
tically significant data, in connection with its decennial census
and its mid-decade census, concerning the growing trend of grand-
parents who are the primary caregivers for their grandchildren.
(b) EXPANDED CENSUS QUESTION.—In carrying out subsection
(a), the Secretary of Commerce shall expand the Bureau’s census
question that details households which include both grandparents
and their grandchildren. The expanded question shall be formulated
to distinguish between the following households:
(1) A household in which a grandparent temporarily pro-
vides a home for a grandchild for a period of weeks or months
during periods of parental distress.
H. R. 4—47
(2) A household in which a grandparent provides a home
for a grandchild and serves as the primary caregiver for the
grandchild.
SEC. 106. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date of the enact-
ment of this Act, the Secretary of Health and Human Services
shall prepare and submit to the Congress a report on—
(1) the status of the automated data processing systems
operated by the States to assist management in the administra-
tion of State programs under part A of title IV of the Social
Security Act (whether in effect before or after October 1, 1995);
and
(2) what would be required to establish a system capable
of—
(A) tracking participants in public programs over time;
and
(B) checking case records of the States to determine
whether individuals are participating in public programs
of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by subsection
(a) should include—
(1) a plan for building on the automated data processing
systems of the States to establish a system with the capabilities
described in subsection (a)(2); and
(2) an estimate of the amount of time required to establish
such a system and of the cost of establishing such a system.
SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) STUDY.—The Secretary shall, in cooperation with the States,
study and analyze outcomes measures for evaluating the success
of the States in moving individuals out of the welfare system
through employment as an alternative to the minimum participation
rates described in section 407 of the Social Security Act. The study
shall include a determination as to whether such alternative out-
comes measures should be applied on a national or a State-by-
State basis and a preliminary assessment of the effects of section
409(a)(7)(C) of such Act.
(b) REPORT.—Not later than September 30, 1998, the Secretary
shall submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives
a report containing the findings of the study required by subsection
(a).
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.
(a) AMENDMENTS TO TITLE II.—
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as
so redesignated by section 321(a)(9)(B) of the Social Security
Independence and Program Improvements Act of 1994, is
amended—
(A) by inserting ‘‘an agency administering a program
funded under part A of title IV or’’ before ‘‘an agency
operating’’; and
(B) by striking ‘‘A or D of title IV of this Act’’ and
inserting ‘‘D of such title’’.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by
inserting ‘‘under a State program funded under’’ before ‘‘part
A of title IV’’.
H. R. 4—48
(b) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 (42 U.S.C. 651) is amended by striking
‘‘aid’’ and inserting ‘‘assistance under a State program funded’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended—
(A) by striking ‘‘aid to families with dependent chil-
dren’’ and inserting ‘‘assistance under a State program
funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting ‘‘such assist-
ance’’; and
(C) by striking ‘‘under section 402(a)(26) or’’ and insert-
ing ‘‘pursuant to section 408(a)(4) or under section’’.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is
amended—
(A) by striking ‘‘aid under a State plan approved’’ and
inserting ‘‘assistance under a State program funded’’; and
(B) by striking ‘‘in accordance with the standards
referred to in section 402(a)(26)(B)(ii)’’ and inserting ‘‘by
the State’’.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the
first sentence by striking ‘‘aid under the State plan approved
under part A’’ and inserting ‘‘assistance under the State pro-
gram funded under part A’’.
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is
amended by striking ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I))
is amended by striking ‘‘aid is being paid under the State’s
plan approved under part A or E’’ and inserting ‘‘assistance
is being provided under the State program funded under part
A’’.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
in the matter following clause (iii) by striking ‘‘aid was being
paid under the State’s plan approved under part A or E’’
and inserting ‘‘assistance was being provided under the State
program funded under part A’’.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in
the matter following subparagraph (B)—
(A) by striking ‘‘who is a dependent child’’ and inserting
‘‘with respect to whom assistance is being provided under
the State program funded under part A’’;
(B) by inserting ‘‘by the State agency administering
the State plan approved under this part’’ after ‘‘found’’;
and
(C) by striking ‘‘under section 402(a)(26)’’ and inserting
‘‘with the State in establishing paternity’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking
‘‘under section 402(a)(26)’’ and inserting ‘‘pursuant to section
408(a)(4)’’.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by
striking ‘‘aid under part A of this title’’ and inserting ‘‘assistance
under a State program funded under part A’’.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended—
(A) by striking ‘‘under section 402(a)(26)’’ and inserting
‘‘pursuant to section 408(a)(4)’’; and
(B) by striking ‘‘; except that this paragraph shall
not apply to such payments for any month following the
first month in which the amount collected is sufficient
H. R. 4—49
to make such family ineligible for assistance under the
State plan approved under part A;’’ and inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended
by striking ‘‘aid under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by
striking ‘‘under section 402(a)(26)’’.
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is
amended by striking ‘‘402(a)(26)’’ and inserting ‘‘408(a)(4)’’.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a State program
funded’’.
(16) Section 469(a) (42 U.S.C. 669(a)) is amended—
(A) by striking ‘‘aid under plans approved’’ and insert-
ing ‘‘assistance under State programs funded’’; and
(B) by striking ‘‘such aid’’ and inserting ‘‘such assist-
ance’’.
(c) REPEAL OF PART F OF TITLE IV.—Part F of title IV (42
U.S.C. 681–687) is repealed.
(d) AMENDMENT
TO TITLE X.—Section 1002(a)(7) (42 U.S.C.
1202(a)(7)) is amended by striking ‘‘aid to families with dependent
children under the State plan approved under section 402 of this
Act’’ and inserting ‘‘assistance under a State program funded under
part A of title IV’’.
(e) AMENDMENTS TO TITLE XI.—
(1) Section 1108 (42 U.S.C. 1308) is amended—
(A) by redesignating subsection (c) as subsection (g);
(B) by striking all that precedes subsection (c) and
inserting the following:
‘‘SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN
ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION ON
TOTAL PAYMENTS.
‘‘(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY.—
Notwithstanding any other provision of this Act, the total amount
certified by the Secretary of Health and Human Services under
titles I, X, XIV, and XVI, under parts A and B of title IV, and
under subsection (b) of this section, for payment to any territory
for a fiscal year shall not exceed the ceiling amount for the territory
for the fiscal year.
‘‘(b) ENTITLEMENT TO MATCHING GRANT.—
‘‘(1) IN GENERAL.—Each territory shall be entitled to receive
from the Secretary for each fiscal year a grant in an amount
equal to 75 percent of the amount (if any) by which—
‘‘(A) the total expenditures of the territory during the
fiscal year under the territory programs funded under parts
A and B of title IV; exceeds
‘‘(B) the sum of—
‘‘(i) the total amount required to be paid to the
territory (other than with respect to child care) under
former section 403 (as in effect on September 30, 1995)
for fiscal year 1995, which shall be determined by
applying subparagraphs (C) and (D) of section 403(a)(1)
to the territory;
‘‘(ii) the total amount required to be paid to the
territory under former section 434 (as so in effect)
for fiscal year 1995; and
H. R. 4—50
‘‘(iii) the total amount expended by the territory
during fiscal year 1995 pursuant to parts A, B, and
F of title IV (as so in effect), other than for child
care.
‘‘(2) USE OF GRANT.—Any territory to which a grant is
made under paragraph (1) may expend the amount under any
program operated or funded under any provision of law specified
in subsection (a).
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) TERRITORY.—The term ‘territory’ means Puerto Rico,
the Virgin Islands, Guam, and American Samoa.
‘‘(2) CEILING AMOUNT.—The term ‘ceiling amount’ means,
with respect to a territory and a fiscal year, the mandatory
ceiling amount with respect to the territory plus the discre-
tionary ceiling amount with respect to the territory, reduced
for the fiscal year in accordance with subsection (f).
‘‘(3) MANDATORY CEILING AMOUNT.—The term ‘mandatory
ceiling amount’ means—
‘‘(A) $105,538,000 with respect to Puerto Rico;
‘‘(B) $4,902,000 with respect to Guam;
‘‘(C) $3,742,000 with respect to the Virgin Islands;
and
‘‘(D) $1,122,000 with respect to American Samoa.
‘‘(4) DISCRETIONARY CEILING AMOUNT.—The term ‘discre-
tionary ceiling amount’ means, with respect to a territory and
a fiscal year, the total amount appropriated pursuant to sub-
section (d)(3) for the fiscal year for payment to the territory.
‘‘(5) TOTAL
AMOUNT
EXPENDED
BY
THE
TERRITORY.—The
term ‘total amount expended by the territory’—
‘‘(A) does not include expenditures during the fiscal
year from amounts made available by the Federal Govern-
ment; and
‘‘(B) when used with respect to fiscal year 1995, also
does not include—
‘‘(i) expenditures during fiscal year 1995 under
subsection (g) or (i) of section 402 (as in effect on
September 30, 1995); or
‘‘(ii) any expenditures during fiscal year 1995 for
which the territory (but for section 1108, as in effect
on 
September 
30, 
1995) 
would 
have 
received
reimbursement from the Federal Government.
‘‘(d) DISCRETIONARY GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make a grant to
each territory for any fiscal year in the amount appropriated
pursuant to paragraph (3) for the fiscal year for payment to
the territory.
‘‘(2) USE OF GRANT.—Any territory to which a grant is
made under paragraph (1) may expend the amount under any
program operated or funded under any provision of law specified
in subsection (a).
‘‘(3) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—
For grants under paragraph (1), there are authorized to be
appropriated to the Secretary for each fiscal year—
‘‘(A) $7,951,000 for payment to Puerto Rico;
‘‘(B) $345,000 for payment to Guam;
‘‘(C) $275,000 for payment to the Virgin Islands; and
‘‘(D) $190,000 for payment to American Samoa.
H. R. 4—51
‘‘(e) AUTHORITY TO TRANSFER FUNDS AMONG PROGRAMS.—Not-
withstanding any other provision of this Act, any territory to which
an amount is paid under any provision of law specified in subsection
(a) may use part or all of the amount to carry out any program
operated by the territory, or funded, under any other such provision
of law.
‘‘(f) MAINTENANCE OF EFFORT.—The ceiling amount with respect
to a territory shall be reduced for a fiscal year by an amount
equal to the amount (if any) by which—
‘‘(1) the total amount expended by the territory under all
programs of the territory operated pursuant to the provisions
of law specified in subsection (a) (as such provisions were
in effect for fiscal year 1995) for fiscal year 1995; exceeds
‘‘(2) the total amount expended by the territory under all
programs of the territory that are funded under the provisions
of law specified in subsection (a) for the fiscal year that imme-
diately precedes the fiscal year referred to in the matter preced-
ing paragraph (1).’’; and
(C) by striking subsections (d) and (e).
(2) Section 1109 (42 U.S.C. 1309) is amended by striking
‘‘or part A of title IV,’’.
(3) Section 1115 (42 U.S.C. 1315) is amended—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(ii) by striking ‘‘403,’’;
(iii) by striking the period at the end and inserting
‘‘, and’’; and
(iv) by adding at the end the following new
subparagraph:
‘‘(B) costs of such project which would not otherwise be
a permissible use of funds under part A of title IV and which
are not included as part of the costs of projects under section
1110, shall to the extent and for the period prescribed by
the Secretary, be regarded as a permissible use of funds under
such part.’’; and
(B) in subsection (c)(3), by striking ‘‘under the program
of aid to families with dependent children’’ and inserting
‘‘part A of such title’’.
(4) Section 1116 (42 U.S.C. 1316) is amended—
(A) in each of subsections (a)(1), (b), and (d), by striking
‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking ‘‘404,’’.
(5) Section 1118 (42 U.S.C. 1318) is amended—
(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’; and
(C) by striking ‘‘, and shall, in the case of American
Samoa, mean 75 per centum with respect to part A of
title IV’’.
(6) Section 1119 (42 U.S.C. 1319) is amended—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(7) Section 1133(a) (42 U.S.C. 1320b–3(a)) is amended by
striking ‘‘or part A of title IV,’’.
(8) Section 1136 (42 U.S.C. 1320b–6) is repealed.
(9) Section 1137 (42 U.S.C. 1320b–7) is amended—
(A) in subsection (b), by striking paragraph (1) and
inserting the following:
H. R. 4—52
‘‘(1) any State program funded under part A of title IV
of this Act;’’; and
(B) in subsection (d)(1)(B)—
(i) by striking ‘‘In this subsection—’’ and all that
follows through ‘‘(ii) in’’ and inserting ‘‘In this sub-
section, in’’;
(ii) by redesignating subclauses (I), (II), and (III)
as clauses (i), (ii), and (iii); and
(iii) by moving such redesignated material 2 ems
to the left.
(f) AMENDMENT TO TITLE XIV.—Section 1402(a)(7) (42 U.S.C.
1352(a)(7)) is amended by striking ‘‘aid to families with dependent
children under the State plan approved under section 402 of this
Act’’ and inserting ‘‘assistance under a State program funded under
part A of title IV’’.
(g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT
TO
THE TERRITORIES.—Section 1602(a)(11), as in effect without
regard to the amendment made by section 301 of the Social Security
Amendments of 1972 (42 U.S.C. 1382 note), is amended by striking
‘‘aid under the State plan approved’’ and inserting ‘‘assistance under
a State program funded’’.
(h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT
TO THE STATES.—Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is
amended to read as follows: ‘‘(A) a State program funded under
part A of title IV,’’.
(i) AMENDMENT
TO TITLE XIX.—Section 1902(j) (42 U.S.C.
1396a(j)) is amended by striking ‘‘1108(c)’’ and inserting ‘‘1108(g)’’.
SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF
1977 AND RELATED PROVISIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended—
(1) in the second sentence of subsection (a), by striking
‘‘plan approved’’ and all that follows through ‘‘title IV of the
Social Security Act’’ and inserting ‘‘program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.)’’;
(2) in subsection (d)—
(A) in paragraph (5), by striking ‘‘assistance to families
with dependent children’’ and inserting ‘‘assistance under
a State program funded’’; and
(B) by striking paragraph (13) and redesignating para-
graphs (14), (15), and (16) as paragraphs (13), (14), and
(15), respectively;
(3) in subsection (j), by striking ‘‘plan approved under part
A of title IV of such Act (42 U.S.C. 601 et seq.)’’ and inserting
‘‘program funded under part A of title IV of the Act (42 U.S.C.
601 et seq.)’’; and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amended—
(1) in subsection (c)(5), by striking ‘‘the State plan
approved’’ and inserting ‘‘the State program funded’’; and
(2) in subsection (e)(6), by striking ‘‘aid to families with
dependent children’’ and inserting ‘‘benefits under a State pro-
gram funded’’.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended
by striking ‘‘State plans under the Aid to Families with Dependent
H. R. 4—53
Children Program under’’ and inserting ‘‘State programs funded
under part A of’’.
(d) Section 17 of such Act (7 U.S.C. 2026) is amended—
(1) in the first sentence of subsection (b)(1)(A), by striking
‘‘to aid to families with dependent children under part A of
title IV of the Social Security Act’’ and inserting ‘‘or are receiv-
ing assistance under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et seq.)’’;
and
(2) in subsection (b)(3), by adding at the end the following
new subparagraph:
‘‘(I) The Secretary may not grant a waiver under this
paragraph on or after October 1, 1995. Any reference in this
paragraph to a provision of title IV of the Social Security
Act shall be deemed to be a reference to such provision as
in effect on September 30, 1995.’’;
(e) Section 20 of such Act (7 U.S.C. 2029) is amended—
(1) in subsection (a)(2)(B) by striking ‘‘operating—’’ and
all that follows through ‘‘(ii) any other’’ and inserting ‘‘operating
any’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1) A household’’ and inserting
‘‘(b) A household’’; and
(ii) in subparagraph (B), by striking ‘‘training pro-
gram’’ and inserting ‘‘activity’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) through (F)
as paragraphs (1) through (6), respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer Protection
Act of 1973 (Public Law 93–186; 7 U.S.C. 612c note) is amended
by striking ‘‘the program for aid to families with dependent children’’
and inserting ‘‘the State program funded’’.
(g) Section 9 of the National School Lunch Act (42 U.S.C.
1758) is amended—
(1) in subsection (b)—
(A) in paragraph (2)(C)(ii)(II)—
(i) by striking ‘‘program for aid to families with
dependent children’’ and inserting ‘‘State program
funded’’; and
(ii) by inserting before the period at the end the
following: ‘‘that the Secretary determines complies with
standards established by the Secretary that ensure
that the standards under the State program are com-
parable to or more restrictive than those in effect on
June 1, 1995’’; and
(B) in paragraph (6)—
(i) in subparagraph (A)(ii)—
(I) by striking ‘‘an AFDC assistance unit
(under the aid to families with dependent children
program authorized’’ and inserting ‘‘a family
(under the State program funded’’; and
(II) by striking ‘‘, in a State’’ and all that
follows through ‘‘9902(2)))’’ and inserting ‘‘that the
Secretary determines complies with standards
established by the Secretary that ensure that the
standards under the State program are comparable
H. R. 4—54
to or more restrictive than those in effect on June
1, 1995’’; and
(ii) in subparagraph (B), by striking ‘‘aid to families
with dependent children’’ and inserting ‘‘assistance
under the State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.)
that the Secretary determines complies with standards
established by the Secretary that ensure that the
standards under the State program are comparable
to or more restrictive than those in effect on June
1, 1995’’; and
(2) in subsection (d)(2)(C)—
(A) by striking ‘‘program for aid to families with
dependent children’’ and inserting ‘‘State program funded’’;
and
(B) by inserting before the period at the end the follow-
ing: ‘‘that the Secretary determines complies with stand-
ards established by the Secretary that ensure that the
standards under the State program are comparable to or
more restrictive than those in effect on June 1, 1995’’.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—
(1) by striking ‘‘program for aid to families with dependent
children established’’ and inserting ‘‘State program funded’’;
and
(2) by inserting before the semicolon the following: ‘‘that
the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the
State program are comparable to or more restrictive than those
in effect on June 1, 1995’’.
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment Com-
pensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–
566; 90 Stat. 2689) is amended to read as follows:
‘‘(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.—For pur-
poses of section 455 of the Social Security Act, expenses incurred
to reimburse State employment offices for furnishing information
requested of such offices—
‘‘(1) pursuant to the third sentence of section 3(a) of the
Act entitled ‘An Act to provide for the establishment of a
national employment system and for cooperation with the
States in the promotion of such system, and for other purposes’,
approved June 6, 1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with the duty
of carrying a State plan for child support approved under
part D of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the adminis-
tration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC
of certain rental payments for federally assisted housing, is
repealed.
H. R. 4—55
(e) Section 159 of the Tax Equity and Fiscal Responsibility
Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967
(81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 (42 U.S.C. 11381 note), relating
to demonstration projects to reduce number of AFDC families in
welfare hotels, is amended—
(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’; and
(2) in subsection (c), by striking ‘‘aid to families with
dependent children in the State under a State plan approved’’
and inserting ‘‘assistance in the State under a State program
funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by strik-
ing ‘‘(Aid to Families with Dependent Children)’’; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking
‘‘aid to families with dependent children under a State plan
approved’’ and inserting ‘‘assistance under a State program
funded’’.
(i) The Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.) is amended—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)),
by striking ‘‘the program for aid to dependent children’’ and
inserting ‘‘the State program funded’’;
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by
striking ‘‘the program for aid to families with dependent chil-
dren’’ and inserting ‘‘the State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)),
by striking ‘‘the program for aid to families with dependent
children’’ and inserting ‘‘the State program funded’’.
(j) The Elementary and Secondary Education Act of 1965 (20
U.S.C. 2701 et seq.) is amended—
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking
‘‘Aid to Families with Dependent Children Program’’ and insert-
ing ‘‘State program funded under part A of title IV of the
Social Security Act’’;
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking
‘‘the program of aid to families with dependent children under
a State plan approved under’’ and inserting ‘‘a State program
funded under part A of’’; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))—
(A) in subparagraph (A)(xi), by striking ‘‘Aid to Fami-
lies with Dependent Children benefits’’ and inserting
‘‘assistance under a State program funded under part A
of title IV of the Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking ‘‘Aid to Fami-
lies with Dependent Children’’ and inserting ‘‘assistance
under the State program funded under part A of title
IV of the Social Security Act’’.
(k) Chapter VII of title I of Public Law 99–88 (25 U.S.C.
13d–1) is amended to read as follows: ‘‘Provided further, That gen-
eral assistance payments made by the Bureau of Indian Affairs
shall be made—
H. R. 4—56
‘‘(1) after April 29, 1985, and before October 1, 1995, on
the basis of Aid to Families with Dependent Children (AFDC)
standards of need; and
‘‘(2) on and after October 1, 1995, on the basis of standards
of need established under the State program funded under
part A of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State pro-
gram payments, the Bureau shall reduce general assistance pay-
ments in such State by the same percentage as the State has
reduced the AFDC or State program payment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)
is amended—
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all
that follows ‘‘agency as’’ and inserting ‘‘being eligible for finan-
cial assistance under part A of title IV of the Social Security
Act and as having continually received such financial assistance
during the 90-day period which immediately precedes the date
on which such individual is hired by the employer.’’;
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by strik-
ing ‘‘eligibility for aid or services,’’ and all that follows through
‘‘children approved’’ and inserting ‘‘eligibility for assistance,
or the amount of such assistance, under a State program
funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)),
by striking ‘‘aid to families with dependent children provided
under a State plan approved’’ and inserting ‘‘a State program
funded’’;
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))—
(A) by striking ‘‘(c) or (d)’’ each place it appears and
inserting ‘‘(c), (d), or (e)’’; and
(B) by adding at the end of subparagraph (B) the
following new sentence: ‘‘Any return information disclosed
with respect to section 6402(e) shall only be disclosed to
officers and employees of the State agency requesting such
information.’’;
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the mat-
ter preceding subparagraph (A)—
(A) by striking ‘‘(5), (10)’’ and inserting ‘‘(5)’’; and
(B) by striking ‘‘(9), or (12)’’ and inserting ‘‘(9), (10),
or (12)’’;
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by
striking ‘‘(relating to aid to families with dependent children)’’;
(7) in section 6402 (26 U.S.C. 6402)—
(A) in subsection (a), by striking ‘‘(c) and (d)’’ and
inserting ‘‘(c), (d), and (e)’’;
(B) by redesignating subsections (e) through (i) as sub-
sections (f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE IV–A OF THE
SOCIAL SECURITY ACT.—The amount of any overpayment to be
refunded to the person making the overpayment shall be reduced
(after reductions pursuant to subsections (c) and (d), but before
a credit against future liability for an internal revenue tax) in
accordance with section 405(e) of the Social Security Act (concerning
recovery of overpayments to individuals under State plans approved
under part A of title IV of such Act).’’; and
H. R. 4—57
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under a State program funded under part A of
title IV of the Social Security Act’’.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b))
is amended by striking ‘‘State plan approved under part A of title
IV’’ and inserting ‘‘State program funded under part A of title
IV’’.
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.)
is amended—
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by strik-
ing ‘‘(42 U.S.C. 601 et seq.)’’;
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by strik-
ing ‘‘State aid to families with dependent children records,’’
and inserting ‘‘records collected under the State program funded
under part A of title IV of the Social Security Act,’’;
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—
(A) by striking ‘‘the JOBS program’’ and inserting ‘‘the
work activities required under title IV of the Social Security
Act’’; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))—
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking
‘‘, including recipients under the JOBS program’’;
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29
U.S.C. 1604(a)(1) (A) and (B)), by striking ‘‘(such as the JOBS
program)’’ each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking para-
graph (4) and inserting the following:
‘‘(4) the portions of title IV of the Social Security Act
relating to work activities;’’;
(8) in section 253 (29 U.S.C. 1632)—
(A) in subsection (b)(2), by repealing subparagraph (C);
and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c),
by striking ‘‘the JOBS program or’’ each place it appears;
(9) in section 264 (29 U.S.C. 1644)—
(A) in subparagraphs (A) and (B) of subsection (b)(1),
by striking ‘‘(such as the JOBS program)’’ each place it
appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3),
by striking ‘‘and the JOBS program’’ each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking para-
graph (6) and inserting the following:
‘‘(6) the portion of title IV of the Social Security Act relating
to work activities;’’;
(11) in the second sentence of section 429(e) (29 U.S.C.
1699(e)), by striking ‘‘and shall be in an amount that does
not exceed the maximum amount that may be provided by
the State pursuant to section 402(g)(1)(C) of the Social Security
Act (42 U.S.C. 602(g)(1)(C))’’;
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking ‘‘JOBS
and’’;
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking ‘‘the
JOBS program,’’;
H. R. 4—58
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking ‘‘aid
to families with dependent children under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.)’’ and inserting
‘‘assistance under the State program funded under part A of
title IV of the Social Security Act’’;
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking
‘‘aid to families with dependent children’’ and inserting ‘‘assist-
ance under the State program funded’’;
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under the State program funded’’; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))—
(A) in clause (v), by striking the semicolon and insert-
ing ‘‘; and’’; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code,
is amended to read as follows:
‘‘(iv) assistance under a State program funded
under part A of title IV of the Social Security Act’’.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to
read as follows:
‘‘(i) assistance under the State program funded
under part A of title IV of the Social Security Act;’’.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42
U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 900 et seq.) is amended—
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking
‘‘Aid to families with dependent children (75–0412–0–1–609);’’
and inserting ‘‘Block grants to States for temporary assistance
for needy families;’’; and
(2) in section 256 (2 U.S.C. 906)—
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.) is amended—
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ‘‘aid
under a State plan approved under’’ each place it appears
and inserting ‘‘assistance under a State program funded under’’;
(2) in section 245A(h) (8 U.S.C. 1255a(h))—
(A) in paragraph (1)(A)(i), by striking ‘‘program of aid
to families with dependent children’’ and inserting ‘‘State
program of assistance’’; and
(B) in paragraph (2)(B), by striking ‘‘aid to families
with dependent children’’ and inserting ‘‘assistance under
a State program funded under part A of title IV of the
Social Security Act’’; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
‘‘State plan approved’’ and inserting ‘‘State program funded’’.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.
9835(a)(4)(B)(i)) is amended by striking ‘‘program of aid to families
with dependent children under a State plan approved’’ and inserting
‘‘State program of assistance funded’’.
H. R. 4—59
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter
92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-
Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended
to read as follows:
‘‘(E) part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) relating to work activities;’’.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code,
is amended by striking ‘‘section 464 or 1137 of the Social Security
Act’’ and inserting ‘‘section 404(e), 464, or 1137 of the Social Security
Act.’’.
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESIST-
ANT SOCIAL SECURITY CARD REQUIRED.
(a) DEVELOPMENT.—
(1) IN GENERAL.—The Commissioner of Social Security (in
this section referred to as the ‘‘Commissioner’’) shall, in accord-
ance with this section, develop a prototype of a counterfeit-
resistant social security card. Such prototype card shall—
(A) be made of a durable, tamper-resistant material
such as plastic or polyester,
(B) employ technologies that provide security features,
such as magnetic stripes, holograms, and integrated cir-
cuits, and
(C) be developed so as to provide individuals with
reliable proof of citizenship or legal resident alien status.
(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney Gen-
eral of the United States shall provide such information and
assistance as the Commissioner deems necessary to enable
the Commissioner to comply with this section.
(b) STUDY AND REPORT.—
(1) IN GENERAL.—The Commissioner shall conduct a study
and issue a report to Congress which examines different meth-
ods of improving the social security card application process.
(2) ELEMENTS
OF
STUDY.—The study shall include an
evaluation of the cost and work load implications of issuing
a counterfeit-resistant social security card for all individuals
over a 3-, 5-, and 10-year period. The study shall also evaluate
the feasibility and cost implications of imposing a user fee
for replacement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3-, 5-, and 10-
year phase-in options.
(3) DISTRIBUTION OF REPORT.—The Commissioner shall sub-
mit copies of the report described in this subsection along
with a facsimile of the prototype card as described in subsection
(a) to the Committees on Ways and Means and Judiciary of
the House of Representatives and the Committees on Finance
and Judiciary of the Senate within 1 year after the date of
the enactment of this Act.
SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.
(a) IN GENERAL.—Whenever an organization that accepts Fed-
eral funds under this Act or the amendments made by this Act
makes any communication that in any way intends to promote
public support or opposition to any policy of a Federal, State,
or local government through any broadcasting station, newspaper,
magazine, outdoor advertising facility, direct mailing, or any other
type of general public advertising, such communication shall state
H. R. 4—60
the following: ‘‘This was prepared and paid for by an organization
that accepts taxpayer dollars.’’.
(b) FAILURE TO COMPLY.—If an organization makes any commu-
nication described in subsection (a) and fails to provide the state-
ment required by that subsection, such organization shall be ineli-
gible to receive Federal funds under this Act or the amendments
made by this Act.
(c) DEFINITION.—For purposes of this section, the term
‘‘organization’’ means an organization described in section 501(c)
of the Internal Revenue Code of 1986.
(d) EFFECTIVE DATES.—This section shall take effect—
(1) with respect to printed communications 1 year after
the date of enactment of this Act; and
(2) with respect to any other communication on the date
of enactment of this Act.
SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN
LOW-INCOME INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C.
1315 note) is amended—
(1) in the heading, by striking ‘‘DEMONSTRATION’’;
(2) by striking ‘‘demonstration’’ each place such term
appears;
(3) in subsection (a), by striking ‘‘in each of fiscal years’’
and all that follows through ‘‘10’’ and inserting ‘‘shall enter
into agreements with’’;
(4) in subsection (b)(3), by striking ‘‘aid to families with
dependent children under part A of title IV of the Social Secu-
rity Act’’ and inserting ‘‘assistance under the program funded
part A of title IV of the Social Security Act of the State in
which the individual resides’’;
(5) in subsection (c)—
(A) in paragraph (1)(C), by striking ‘‘aid to families
with dependent children under part A of title IV of the
Social Security Act’’ and inserting ‘‘assistance under a State
program funded part A of title IV of the Social Security
Act’’;
(B) in paragraph (2), by striking ‘‘aid to families with
dependent children under title IV of such Act’’ and inserting
‘‘assistance under a State program funded part A of title
IV of the Social Security Act’’;
(6) in subsection (d), by striking ‘‘job opportunities and
basic skills training program (as provided for under title IV
of the Social Security Act)’’ and inserting ‘‘the State program
funded under part A of title IV of the Social Security Act’’;
and
(7) by striking subsections (e) through (g) and inserting
the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of
conducting projects under this section, there is authorized to be
appropriated an amount not to exceed $25,000,000 for any fiscal
year.’’.
SEC. 114. MEDICAID ELIGIBILITY UNDER TITLE IV OF THE SOCIAL
SECURITY ACT.
(a) 
IN
GENERAL.—Section 
1902(a)(10)(A) 
(42 
U.S.C.
1396a(a)(10)(A)) is amended—
H. R. 4—61
(1) in clause (i), by amending subclause (I) to read as
follows:
‘‘(I) who are receiving a foster care mainte-
nance payment described in section 423(b)(1)(A)
or an adoption assistance payment described in
section 423(b)(1)(B),’’; and
(2) in clause (ii)—
(A) by striking ‘‘or’’ at the end of subclause (XI),
(B) by adding ‘‘or’’ at the end of subclause (XII), and
(C) by adding at the end the following new subclause:
‘‘(XIII) to individuals (which may include
individuals who receive payment under any plan
of the State approved under title I, X, XIV, or
XVI, or a program funded under part A of title
IV of this Act, as amended by the Personal Respon-
sibility and Work Opportunity Act of 1995, and
other similar individuals) who meet such eligibility
criteria as the State establishes, so long as the
State demonstrates to the satisfaction of the Sec-
retary that the application of such criteria does
not result in Federal expenditures under this title
that are greater than the Federal expenditures
that would have been made under this title if
such Act had not been enacted,’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to medical assistance for items and services furnished
on or after the date of the enactment of this Act.
SEC. 115. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL
FOR TECHNICAL AND CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of
this Act, the Secretary of Health and Human Services and the
Commissioner of Social Security, in consultation, as appropriate,
with the heads of other Federal agencies, shall submit to the
appropriate committees of Congress a legislative proposal proposing
such technical and conforming amendments as are necessary to
bring the law into conformity with the policy embodied in this
title.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) IN GENERAL.—Except as otherwise provided in this title,
this title and the amendments made by this title shall take effect
on October 1, 1996.
(b) TRANSITION RULES.—
(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE.—
(A) IN GENERAL.—If, within 3 months after the date
of the enactment of this Act, the Secretary of Health and
Human Services receives from a State a plan described
in section 402(a) of the Social Security Act (as added by
the amendment made by section 103 of this Act), this
title and the amendments made by this title (except section
409(a)(7) of the Social Security Act, as added by the amend-
ment made by such section 103) shall also apply with
respect to the State during the period that begins on the
date of such receipt and ends on September 30, 1996,
except that the State shall be considered an eligible State
for fiscal year 1996 for purposes of part A of title IV
H. R. 4—62
of the Social Security Act (as in effect pursuant to the
amendment made by such section 103).
(B) LIMITATIONS ON FEDERAL OBLIGATIONS.—
(i) UNDER
AFDC
PROGRAM.—If the Secretary
receives from a State the plan referred to in subpara-
graph (A), the total obligations of the Federal Govern-
ment to the State under part A of title IV of the
Social Security Act (as in effect on September 30, 1995)
with respect to expenditures by the State after the
date of the enactment of this Act shall not exceed
an amount equal to—
(I) the State family assistance grant (as
defined in section 403(a)(1)(B) of the Social Secu-
rity Act (as in effect pursuant to the amendment
made by section 103 of this Act)); minus
(II) any obligations of the Federal Government
to the State under part A of title IV of the Social
Security Act (as in effect on September 30, 1995)
with respect to expenditures by the State during
the period that begins on October 1, 1995, and
ends on the day before the date of the enactment
of this Act.
(ii) UNDER
TEMPORARY
FAMILY
ASSISTANCE
PRO-
GRAM.—Notwithstanding section 403(a)(1) of the Social
Security Act (as in effect pursuant to the amendment
made by section 103 of this Act), the total obligations
of the Federal Government to a State under such sec-
tion 403(a)(1) for fiscal year 1996 after the termination
of the State AFDC program shall not exceed an amount
equal to—
(I) the amount described in clause (i)(I) of
this subparagraph; minus
(II) any obligations of the Federal Government
to the State under part A of title IV of the Social
Security Act (as in effect on September 30, 1995)
with respect to expenditures by the State on or
after October 1, 1995.
(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETER-
MINING FEDERAL AFDC OBLIGATIONS.—As used in this
subparagraph, the term ‘‘obligations of the Federal
Government to the State under part A of title IV
of the Social Security Act’’ does not include any obliga-
tion of the Federal Government with respect to child
care expenditures by the State.
(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996
DEEMED
ACCEPTANCE
OF
GRANT
LIMITATIONS
AND
FOR-
MULA.—The submission of a plan by a State pursuant
to subparagraph (A) is deemed to constitute the State’s
acceptance of the grant reductions under subparagraph
(B)(ii) (including the formula for computing the amount
of the reduction).
(D) DEFINITIONS.—As used in this paragraph:
(i) STATE AFDC PROGRAM.—The term ‘‘State AFDC
program’’ means the State program under parts A and
F of title IV of the Social Security Act (as in effect
on September 30, 1995).
H. R. 4—63
(ii) STATE.—The term ‘‘State’’ means the 50 States
and the District of Columbia.
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments
made by this title shall not apply with respect to—
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services pro-
vided before the effective date of this title under the provi-
sions amended; and
(B) administrative actions and proceedings commenced
before such date, or authorized before such date to be
commenced, under such provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMI-
NATED OR SUBSTANTIALLY MODIFIED BY THIS TITLE.—In closing
out accounts, Federal and State officials may use scientifically
acceptable statistical sampling techniques. Claims made with
respect to State expenditures under a State plan approved
under part A of title IV of the Social Security Act (as in
effect before the effective date of this Act) with respect to
assistance or services provided on or before September 30,
1995, shall be treated as claims with respect to expenditures
during fiscal year 1995 for purposes of reimbursement even
if payment was made by a State on or after October 1, 1995.
Each State shall complete the filing of all claims under the
State plan (as so in effect) no later than September 30, 1997.
The head of each Federal department shall—
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs
under such State plans; and
(B) reimburse States for any payments made for assist-
ance or services provided during a prior fiscal year from
funds for fiscal year 1995, rather than from funds author-
ized by this title.
(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR
FAMILY SUPPORT.—The individual who, on the day before the
effective date of this title, is serving as Assistant Secretary
for Family Support within the Department of Health and
Human Services shall, until a successor is appointed to such
position—
(A) continue to serve in such position; and
(B) except as otherwise provided by law—
(i) continue to perform the functions of the Assist-
ant Secretary for Family Support under section 417
of the Social Security Act (as in effect before such
effective date); and
(ii) have the powers and duties of the Assistant
Secretary for Family Support under section 416 of
the Social Security Act (as in effect pursuant to the
amendment made by section 103 of this Act).
TITLE II—SUPPLEMENTAL SECURITY
INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal
of a section or other provision, the reference shall be considered
H. R. 4—64
to be made to that section or other provision of the Social Security
Act.
Subtitle A—Eligibility Restrictions
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESI-
DENCE IN ORDER TO OBTAIN BENEFITS SIMULTANEOUSLY
IN 2 OR MORE STATES.
(a) IN
GENERAL.—Section 1614(a) (42 U.S.C. 1382c(a)) is
amended by adding at the end the following new paragraph:
‘‘(5) An individual shall not be considered an eligible individual
for the purposes of this title during the 10-year period that begins
on the date the individual is convicted in Federal or State court
of having made a fraudulent statement or representation with
respect to the place of residence of the individual in order to
receive assistance simultaneously from 2 or more States under
programs that are funded under title IV, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under the
supplemental security income program under this title.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND
PROBATION AND PAROLE VIOLATORS.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)) is
amended by inserting after paragraph (3) the following new para-
graph:
‘‘(4) A person shall not be considered an eligible individual
or eligible spouse for purposes of this title with respect to any
month if during such month the person is—
‘‘(A) fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
person flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which
the person flees, or which, in the case of the State of New
Jersey, is a high misdemeanor under the laws of such State;
or
‘‘(B) violating a condition of probation or parole imposed
under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGEN-
CIES.—Section 1611(e) (42 U.S.C. 1382(e)), as amended by sub-
section (a), is amended by inserting after paragraph (4) the following
new paragraph:
‘‘(5) Notwithstanding any other provision of law, the Commis-
sioner shall furnish any Federal, State, or local law enforcement
officer, upon the request of the officer, with the current address,
Social Security number, and photograph (if applicable) of any recipi-
ent of benefits under this title, if the officer furnishes the Commis-
sioner with the name of the recipient and notifies the Commissioner
that—
‘‘(A) the recipient—
‘‘(i) is described in subparagraph (A) or (B) of para-
graph (4); or
‘‘(ii) has information that is necessary for the officer
to conduct the officer’s official duties; and
H. R. 4—65
‘‘(B) the location or apprehension of the recipient is within
the officer’s official duties.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
Subtitle B—Benefits for Disabled Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY.—Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)), as amended by section 201(a), is amended—
(1) in subparagraph (A), by striking ‘‘An individual’’ and
inserting ‘‘Except as provided in subparagraph (C), an individ-
ual’’;
(2) in subparagraph (A), by striking ‘‘(or, in the case of
an individual under the age of 18, if he suffers from any
medically determinable physical or mental impairment of com-
parable severity)’’;
(3) by redesignating subparagraphs (C) through (I) as sub-
paragraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C) An individual under the age of 18 shall be considered
disabled for the purposes of this title if that individual has a
medically determinable physical or mental impairment, which
results in marked and severe functional limitations, and which
can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12
months. Notwithstanding the preceding sentence, no individual
under the age of 18 who engages in substantial gainful activity
(determined in accordance with regulations prescribed pursuant
to subparagraph (E)) may be considered to be disabled.’’; and
(5) in subparagraph (F), as redesignated by paragraph (3),
by striking ‘‘(D)’’ and inserting ‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION
OF MENTAL AND EMOTIONAL DISORDERS.—The Commissioner of
Social 
Security 
shall 
modify 
sections 
112.00C.2. 
and
112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title
20, Code of Federal Regulations, to eliminate references to
maladaptive behavior in the domain of personal/behavorial
function.
(2) 
DISCONTINUANCE
OF
INDIVIDUALIZED
FUNCTIONAL
ASSESSMENT.—The Commissioner of Social Security shall dis-
continue the individualized functional assessment for children
set forth in sections 416.924d and 416.924e of title 20, Code
of Federal Regulations.
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES
TO INDIVIDUALS UNDER THE AGE OF 18.—Section 1614(a)(4) (42
U.S.C. 1382(a)(4)) is amended—
(1) by redesignating subclauses (I) and (II) of clauses (i)
and (ii) of subparagraph (B) as items (aa) and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and by moving their left
hand margin 2 ems to the right;
H. R. 4—66
(4) by inserting before clause (i) (as redesignated by para-
graph (3)) the following:
‘‘(A) in the case of an individual who is age 18 or
older—’’;
(5) at the end of subparagraph (A)(iii) (as redesignated
by paragraphs (3) and (4)), by striking the period and inserting
‘‘; or’’;
(6) by inserting after and below subparagraph (A)(iii) (as
so redesignated) the following:
‘‘(B) in the case of an individual who is under the
age of 18—
‘‘(i) substantial evidence which demonstrates that
there has been medical improvement in the individual’s
impairment or combination of impairments, and that
such impairment or combination of impairments no
longer results in marked and severe functional limita-
tions; or
‘‘(ii) substantial evidence which demonstrates that,
as determined on the basis of new or improved diag-
nostic techniques or evaluations, the individual’s
impairment or combination of impairments, is not as
disabling as it was considered to be at the time of
the most recent prior decision that the individual was
under a disability or continued to be under a disability,
and such impairment or combination of impairments
does not result in marked or severe functional limita-
tions; or’’;
(7) by redesignating subparagraph (D) as subparagraph
(C) and by inserting in such subparagraph ‘‘in the case of
any individual,’’ before ‘‘substantial evidence’’; and
(8) in the first sentence following subparagraph (C) (as
redesignated by paragraph (7)), by—
(A) inserting ‘‘(i)’’ before ‘‘to restore’’; and
(B) inserting ‘‘, or (ii) in the case of an individual
under the age of 18, to eliminate or improve the individual’s
impairment or combination of impairments so that it no
longer results in marked and severe functional limitations’’
immediately before the period.
(d) AMOUNT OF BENEFITS.—Section 1611(b) (42 U.S.C. 1382(b))
is amended by adding at the end the following new paragraph:
‘‘(3)(A) Except with respect to individuals described in subpara-
graph (B), the benefit under this title for an individual described
in section 1614(a)(3)(C) shall be payable at a rate equal to 75
percent of the rate otherwise determined under this subsection.
‘‘(B) An individual is described in this subparagraph if such
individual is described in section 1614(a)(3)(C), and—
‘‘(i) in the case of such an individual under the age of
6, such individual has a medical impairment that severely
limits the individual’s ability to function in a manner appro-
priate to individuals of the same age and who without special
personal assistance would require specialized care outside the
home; or
‘‘(ii) in the case of such an individual who has attained
the age of 6, such individual requires personal care assistance
with—
‘‘(I) at least 2 activities of daily living;
H. R. 4—67
‘‘(II) continual 24-hour supervision or monitoring to
avoid causing injury or harm to self or others; or
‘‘(III) the administration of medical treatment; and
who without such assistance would require full-time or part-
time specialized care outside the home.
‘‘(C)(i) For purposes of subparagraph (B), the term ‘specialized
care’ means medical care beyond routine administration of medica-
tion.
‘‘(ii) For purposes of subparagraph (B)(ii)—
‘‘(I) the term ‘personal care assistance’ means at least
hands-on and stand-by assistance, supervision, or cueing; and
‘‘(II) the term ‘activities of daily living’ means eating,
toileting, dressing, bathing, and mobility.’’.
(e) EFFECTIVE DATES, ETC.—
(1) EFFECTIVE DATES.—
(A) IN GENERAL.—The provisions of, and amendments
made by, subsections (a), (b), and (c) shall apply to
applicants for benefits under title XVI of the Social Security
Act for months beginning on or after the date of the enact-
ment of this Act, without regard to whether regulations
have been issued to implement such provisions and amend-
ments.
(B) ELIGIBILITY
RULES.—The amendments made by
subsection (d) shall apply to—
(i) applicants for benefits under title XVI of the
Social Security Act for months beginning on or after
January 1, 1997; and
(ii) with respect to continuing disability reviews
of eligibility for benefits under such title occurring
on or after such date.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY
DETERMINATIONS.—Not later than 1
year after the date of the enactment of this Act, the
Commissioner of Social Security shall redetermine the eligi-
bility of any individual under age 18 who is receiving
supplemental security income benefits by reason of disabil-
ity under title XVI of the Social Security Act as of the
date of the enactment of this Act and whose eligibility
for such benefits may terminate by reason of the provisions
of, or amendments made by, subsections (a), (b), and (c).
With respect to any redetermination under this subpara-
graph—
(i) section 1614(a)(4) of the Social Security Act
(42 U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply
the eligibility criteria for new applicants for benefits
under title XVI of such Act;
(iii) the Commissioner shall give such redetermina-
tion priority over all continuing eligibility reviews and
other reviews under such title; and
(iv) such redetermination shall be counted as a
review or redetermination otherwise required to be
made under section 208 of the Social Security
Independence and Program Improvements Act of 1994
or any other provision of title XVI of the Social Security
Act.
H. R. 4—68
(B) GRANDFATHER PROVISION.—The provisions of, and
amendments made by, subsections (a), (b), and (c), and
the redetermination under subparagraph (A), shall only
apply with respect to the benefits of an individual described
in subparagraph (A) for months beginning on or after Janu-
ary 1, 1997.
(C) NOTICE.—Not later than 90 days after the date
of the enactment of this Act, the Commissioner of Social
Security shall notify an individual described in subpara-
graph (A) of the provisions of this paragraph.
(3) REPORT.—The Commissioner of Social Security shall
report to the Congress regarding the progress made in
implementing the provisions of, and amendments made by,
this section on child disability evaluations not later than 180
days after the date of the enactment of this Act.
(4) REGULATIONS.—The Commissioner of Social Security
shall submit for review to the committees of jurisdiction in
the Congress any final regulation pertaining to the eligibility
of individuals under age 18 for benefits under title XVI of
the Social Security Act at least 45 days before the effective
date of such regulation. The submission under this paragraph
shall include supporting documentation providing a cost analy-
sis, workload impact, and projections as to how the regulation
will effect the future number of recipients under such title.
(5) APPROPRIATIONS.—
(A) IN GENERAL.—Out of any money in the Treasury
not otherwise appropriated, there are authorized to be
appropriated and are hereby appropriated, to remain avail-
able without fiscal year limitation, $200,000,000 for fiscal
year 
1996, 
$75,000,000 
for 
fiscal 
year 
1997, 
and
$25,000,000 for fiscal year 1998, for the Commissioner
of Social Security to utilize only for continuing disability
reviews and redeterminations under title XVI of the Social
Security Act, with reviews and redeterminations for
individuals affected by the provisions of subsection (b) given
highest priority.
(B) ADDITIONAL FUNDS.—Amounts appropriated under
subparagraph (A) shall be in addition to any funds other-
wise appropriated for continuing disability reviews and
redeterminations under title XVI of the Social Security
Act.
(6) BENEFITS UNDER TITLE XVI.—For purposes of this sub-
section, the term ‘‘benefits under title XVI of the Social Security
Act’’ includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.
SEC. 212. ELIGIBILITY 
REDETERMINATIONS 
AND 
CONTINUING
DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING
TO CERTAIN
CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as
redesignated by section 211(a)(3), is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new clause:
‘‘(ii)(I) Not less frequently than once every 3 years, the Commis-
sioner shall review in accordance with paragraph (4) the continued
H. R. 4—69
eligibility for benefits under this title of each individual who has
not attained 18 years of age and is eligible for such benefits by
reason of an impairment (or combination of impairments) which
may improve (or, at the option of the Commissioner, which is
unlikely to improve).
‘‘(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(III) If the representative payee refuses to comply without
good cause with the requirements of subclause (II), the Commis-
sioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly terminate
payment of benefits to the representative payee, and provide for
payment of benefits to an alternative representative payee of the
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(IV) Subclause (II) shall not apply to the representative payee
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (II) should
not apply to an individual’s representative payee.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR
SSI RECIPIENTS WHO ATTAIN 18 YEARS OF AGE.—
(1) 
IN
GENERAL.—Section 
1614(a)(3)(H) 
(42 
U.S.C.
1382c(a)(3)(H)), as amended by subsection (a), is amended by
adding at the end the following new clause:
‘‘(iii) If an individual is eligible for benefits under this title
by reason of disability for the month preceding the month in which
the individual attains the age of 18 years, the Commissioner shall
redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the individual’s
18th birthday; and
‘‘(II) by applying the criteria used in determining the initial
eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph
(4) shall not apply and such redetermination shall be considered
a substitute for a review or redetermination otherwise required
under any other provision of this subparagraph during that 1-
year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the Social Secu-
rity Independence and Program Improvements Act of 1994 (42
U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR LOW BIRTH
WEIGHT BABIES.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)),
as amended by subsections (a) and (b), is amended by adding
at the end the following new clause:
‘‘(iv)(I) Not later than 12 months after the birth of an individual,
the Commissioner shall review in accordance with paragraph (4)
the continuing eligibility for benefits under this title by reason
of disability of such individual whose low birth weight is a contribut-
H. R. 4—70
ing factor material to the Commissioner’s determination that the
individual is disabled.
‘‘(II) A review under subclause (I) shall be considered a sub-
stitute for a review otherwise required under any other provision
of this subparagraph during that 12-month period.
‘‘(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(IV) If the representative payee refuses to comply without
good cause with the requirements of subclause (III), the Commis-
sioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly terminate
payment of benefits to the representative payee, and provide for
payment of benefits to an alternative representative payee of the
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(V) Subclause (III) shall not apply to the representative payee
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (III) should
not apply to an individual’s representative payee.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefits for months beginning on or after the date
of the enactment of this Act, without regard to whether regulations
have been issued to implement such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) DISPOSAL
OF RESOURCES
FOR LESS THAN FAIR MARKET
VALUE.—
(1) IN GENERAL.—Section 1613(c) (42 U.S.C. 1382b(c)) is
amended to read as follows:
‘‘Disposal of Resources for Less Than Fair Market Value
‘‘(c)(1)(A)(i) If an individual who has not attained 18 years
of age (or any person acting on such individual’s behalf) disposes
of resources of the individual for less than fair market value on
or after the look-back date specified in clause (ii)(I), the individual
is ineligible for benefits under this title for months during the
period beginning on the date specified in clause (iii) and equal
to the number of months specified in clause (iv).
‘‘(ii)(I) The look-back date specified in this subclause is a date
that is 36 months before the date specified in subclause (II).
‘‘(II) The date specified in this subclause is the date on which
the individual applies for benefits under this title or, if later,
the date on which the disposal of the individual’s resources for
less than fair market value occurs.
‘‘(iii) The date specified in this clause is the first day of the
first month that follows the month in which the individual’s
resources were disposed of for less than fair market value and
that does not occur in any other period of ineligibility under this
paragraph.