Sec. 715. Calculation of 185 percent of need standard.
Sec. 716. Territories.
PART B—FOOD STAMP ACT AMENDMENTS
Sec. 721. Inconsequential income.
Sec. 722. Educational assistance.
Sec. 723. Earnings of students.
Sec. 724. Training stipends and allowances; income from on-the-job training
programs.
Sec. 725. Earned income tax credits.
Sec. 726. Resources necessary for self-employment.
Sec. 727. Lump-sum payments for medical expenses or replacement of lost re-
sources.
Sec. 728. Individual development accounts.
Sec. 729. Conforming amendment.
PART C—ECONOMIC INDEPENDENCE
Sec. 731. Short title.
Sec. 732. Declaration of policy and statement of purpose.
Sec. 733. Individual development account demonstration projects.
Sec. 734. Individual development accounts.
PART D—ADVANCE EITC STATE DEMONSTRATIONS
Sec. 741. Advance payment of earned income tax credit through State dem-
onstration programs.
TITLE VIII—SELF EMPLOYMENT/MICROENTERPRISE
DEMONSTRATIONS
Sec. 801. Demonstration program to provide self-employment opportunities to
welfare recipients and low-income individuals.
TITLE IX—FINANCING
Sec. 901. Limitation on Federal payments for emergency assistance.
Sec. 902. Uniform alien eligibility criteria for public assistance programs.
Sec. 903. Eligibility of sponsored aliens for certain programs.
Sec. 904. National School Lunch Program.
Sec. 905. State retention of amounts recovered.
Sec. 906. Commodity Program income ineligibility.
Sec. 907. Amendments related to superfund tax extension.
Sec. 908. Federal railroad administration user fees.
Sec. 909. Special earned income tax credit rules for military personnel.
Sec. 910. Nonresident aliens not eligible for earned income tax credit.
Sec. 911. Extension of certain custom fees.
TITLE X—EFFECTIVE DATES
Sec. 1001. Effective dates.
(b) REFERENCES.—References herein to the ‘‘Act’’
are references to the Social Security Act except where oth-
erwise provided or when the context otherwise requires.
TITLE I—JOBS
SEC. 101. REQUIREMENT TO PARTICIPATE IN ENHANCED
JOBS PROGRAM.
(a) Section 402(a)(19) of the Act is amended by
striking out all down through subparagraph (E)(i) and in-
serting in lieu thereof the following:
‘‘(19) provide—
‘‘(A) that the State has in effect and oper-
ation a job opportunities and basic skills train-
ing program (hereafter in this title referred to
as the ‘JOBS’ program which meets the re-
quirements of part F), and a program of em-
ployment (hereafter in this title referred to as
the ‘WORK’ program) which meets the require-
ments of part G;
‘‘(B) that the State will (except as other-
wise provided in this paragraph or in part F),
to the extent the program is available in the po-
litical subdivision involved, apply the require-
ments and conditions of this paragraph to—
graph (1)(C) and inserting in lieu thereof ‘‘Secretary
of Labor and the Secretary of Education’’.
(b) Section 482 of the Act is amended by striking
out all that precedes subsection (c) and adding the follow-
ing new heading and subsections (a) and (b):
‘‘OPERATION OF ENHANCED STATE PROGRAMS
‘‘SEC. 482. (a) REQUIRED ELEMENTS OF ENHANCED
JOBS PROGRAM.—
‘‘(1)(A) PERSONAL
RESPONSIBILITY
AGREE-
MENT.—Each individual who is a parent or other
caretaker relative of a dependent child and a rep-
resentative of the State agency shall, at the time of
application for aid under part A, sign a personal re-
sponsibility agreement. The agreement shall, in the
case of individuals to whom section 417 applies, set
forth in clear terms, understandable by all parties,
an acknowledgment that aid under the State plan is
subject to a general 24-month limit and should be
considered transitional in nature. The agreement, in
all cases, should acknowledge that the goal of both
the individual and the State is to enable the individ-
ual to achieve maximum economic independence and
self sufficiency. To this end, the individual will par-
ticipate in appropriate activities, and the State will
furnish necessary enabling services and assistance.
‘‘(B) The State agency shall provide the pro-
gram and employment information required by sub-
section (c) as promptly as possible, but in no event
later than 90 days after the earliest date for which
payment is made. In the case of individuals to whom
section 417 applies, the information shall be pro-
vided in person, on either an individual or group
basis, and the State agency shall obtain written con-
firmation from the individual that the individual re-
ceived and understood the program and employment
information.
‘‘(2) EMPLOYABILITY PLAN.—
‘‘(A)(i) The State agency shall, with re-
spect to each individual required to participate
in the program under this part, other than an
individual to whom section 402(a)(19)(D) ap-
plies, conduct an assessment of the educational,
child care, and other supportive services needs,
as well as the skills, literacy, prior work experi-
ence and employability of each participant in
the JOBS program, including a review of the
family circumstances. The agency may also re-
view the needs of any child of the participant.
‘‘(ii) On the basis of such assessment, the
State agency and the individual shall, within 90
days from the earliest date for which payment
is made, jointly develop an employability plan
for such individual. The purpose of the employ-
ability plan is to lay out the fastest and most
effective way to help the participant find em-
ployment and become self-sufficient. The plan
shall indicate the overall period of time that is
expected to be necessary to achieve the individ-
ual’s employment goal, taking into consider-
ation, in the case of individuals to whom the
provisions of section 417 apply, the maximum
remaining period of time for which aid may be
paid to such individual under the plan approved
under part A. The plan will detail the activities
in which the individual will be expected to en-
gage in order to find employment, including job
search, employment training and preparation,
or education. The plan must be reasonable in
light of the individual’s literacy, skills, and
needs, and the resources and opportunities for
employment (including self-employment) within
the community where the individual resides,
and shall, to the maximum extent possible and
consistent with this section, reflect the pref-
erences of such individual. The employability
plan shall also describe the child care and other
social services and assistance which the State
agency will provide in order to allow the individ-
ual to take full advantage of the activities under
the program operated under this part, and the
steps the individual should take to bring
promptly to the attention of the State agency
any difficulties the individual is encountering in
participating in the program under this part.
The employability plan shall not be considered
a contract.
‘‘(iii) The State plan shall provide that, if
an individual works an average of 20 hours a
week (or such greater number, but not more
than 30, as the State plan may provide) or
more in a position of employment, work in such
position shall constitute the primary activity
under such individual’s employability plan.
‘‘(B) The State plan under this part must
provide for a review mechanism that will be
available should the individual and the State
agency be unable to agree on the content of the
employability plan. The review process shall, at
the least, provide for prompt involvement of an-
other employee (or designee) of the State agen-
cy with supervisory or greater responsibilities
than the person with whom the individual is in
disagreement to provide further negotiation
support. If agreement still cannot be reached,
the State agency shall, in accordance with regu-
lations of the Secretary, afford the individual
access to arbitration or a mediation process, to
a more formal review or hearing, or to a com-
bination of such processes.
‘‘(C) Failure or refusal by an individual to
sign an agreed upon employability plan, or to
sign a plan with respect to which the applicable
processes under subparagraph (B) have been
completed and under which the employability
plan has been found appropriate, shall result in
denial of aid with respect to such individual, ex-
cept that no sanction or other penalty shall con-
tinue under this subparagraph after the individ-
ual has signed an appropriate plan.
‘‘(3) EMPLOYABILITY PLAN FOR DEFERRED IN-
DIVIDUALS.—The State agency and each individual
for whom participation in activities has been found
appropriate under section 402(a)(19)(D) shall joint-
ly develop an employability plan. The plan shall
place primary emphasis on the activities in which
the individual is able to engage that, together with
any services provided by the State, will best prepare
the individual for full participation in the program
under this part. Plans under this paragraph are not
subject to the procedures of paragraph (2).
‘‘(4) CASE MANAGER.—The State agency may
assign a case manager to each participant and the
participant’s family who will be responsible for as-
sisting the family to obtain any services which may
be needed to assure effective participation in the
program.
‘‘(5) PERIODIC
ASSESSMENT.—At such inter-
vals as the State agency finds appropriate, but not
less frequently than once every 6 months, a rep-
resentative of the State agency and the individual
shall conduct a review of the individual’s employ-
ability plan (including the plan of an individual to
whom paragraph (3) applies) and the progress that
is being made to achieve the goals set in the plan.
The State agency shall consider, in conducting the
assessment, whether an individual participating in
activities under section 402(a)(19)(D) has become
ready to participate in the program under this part,
or whether an individual required to participate
under this part should no longer be so required and
instead should participate in such activities. If it is
concluded that there should be any such change in
status, the individual’s employability plan shall be
revised accordingly effective with the month follow-
ing the month in which the revision is made. In the
case of an individual participating in the program
under this part, the assessment shall specifically ad-
dress both the individual’s participation and the
State agency’s delivery of services as agreed to in
the employability plan. If it is found in the course
of an assessment that there has been a substantial
failure to provide services to the recipient in accord-
ance with the employability plan, the plan (or some
other State agency record) must document that find-
ing, and the period during which the failure oc-
curred.
‘‘(6) REVISION OF EMPLOYABILITY PLAN.—The
employability plan may be revised as necessary fol-
lowing an assessment under paragraph (5) or at any
other time that events warrant it, upon the agree-
ment of the individual and the State agency. If there
is disagreement about the need for revision, or the
respects in which the plan will be revised or the new
content of the plan, the procedures described in
paragraph (2)(B) will be applicable.
‘‘(7) The State agency may require that, in the
case 
of 
an 
individual 
described 
in 
section
402(a)(19)(B) and whose employability plan, includ-
ing an employability plan under paragraph (3), re-
flects the need for treatment for substance abuse,
such individual participate in substance abuse treat-
ment that is available without charge to the individ-
ual. The State plan may, notwithstanding any other
provision of law, make applicable to any individual
required to participate in such treatment activities
the provisions of section 402(a)(19)(G), and if so,
shall advise the individual of the consequences of
failure or refusal to accept treatment,
‘‘(b) TRANSITION TO WORK PROGRAM.—(1) The
State agency shall schedule a meeting with each individual
subject to the time limit under section 417, with adequate
advance notice to the individual, not later than 90 days
prior to the first month for which such individual will be-
come ineligible for aid under part A by reason of such
time limit. The State agency shall evaluate the individual’s
progress under the employability plan, determine whether
any extensions (as allowed under section 417) are nec-
essary and available, and advise the individual about the
job search requirement (described in paragraph (2)) and
the steps that must be taken thereafter to register for the
program under part G. If a meeting is held with the indi-
vidual in connection with a redetermination of eligibility,
periodic assessment, or for any other purpose, within the
6-month period preceding the first month of ineligibility
by reason of section 417, the State agency may take the
steps required by this paragraph at such meeting in satis-
faction of this requirement.
‘‘(2) Not later than 45 days prior to the close of the
twenty-fourth month of receipt of aid under part A (or,
at the option of the State, at an earlier date after the
twenty-first month of receipt of such aid), the individual
shall be required to engage in job search to the extent
consistent with the goals of such individual’s employability
plan. Engaging in job search for the period of time re-
quired by the State under the preceding sentence shall be
a prerequisite to receipt of a work assignment under the
WORK program established and operated under part G.
For purposes of this subparagraph, ‘month of receipt of
aid under part A’ shall not include any month prior to
the first month in which this subparagraph was in effect.
‘‘(3) References to applicants, or to actions that must
occur at the time of application or from the earliest date
for which payment is made, in the amendments made by
this section, shall be construed to include references to re-
cipients, and actions that must occur at the time of the
first redetermination of eligibility by a State for aid to
families with dependent children occurring after the effec-
tive date of such amendments in such State.’’.
SEC. 103. AMENDMENTS PERTAINING TO SERVICES AND
ACTIVITIES UNDER JOBS PROGRAM
(a) REPEAL OF REDUNDANT PROVISION.—Section
482(c) of this Act is amended by repealing paragraph (5).
(b) REQUIREMENT TO PROVIDE JOB SEARCH SERV-
ICES.—Section 482(d)(1)(A) of the Act is amended—
(1) in clause (i), by redesignating subclauses (I)
through (IV) as (II) through (V), respectively,
(2) by inserting before subclause (II) (as redes-
ignated) the following:
‘‘(I) group and individual job
search as described in subsection
(g);’’, and
(3) in clause (ii), by repealing subclause (I) and
redesignating subclauses (II) through (IV) as
subclauses (I) through (III), respectively.
(c) EMPLOYMENT-ORIENTED EDUCATION.—Section
482(d)(1)(A)(i)(II) of the Act as redesignated is amended
by striking out ‘‘basic and remedial education to achieve
a basic literary level’’ and inserting in lieu thereof ‘‘em-
ployment-related education to achieve literacy levels need-
ed for economic self-sufficiency’’.
(d) 
SELF-EMPLOYMENT
PROGRAMS.—Section
482(d)(1)(A)(ii) of the Act (as redesignated) is amend-
ed—
(1) by striking out ‘‘and’’ after clause (II) (as
redesignated),
(2) by adding ‘‘and’’ after clause (III), and
(3) by adding after and below clause (III) (as
redesignated), the following:
‘‘(IV) programs to prepare for
self-employment or to enable individ-
uals to establish a microenterprise.’’.
(e) CHILD CARE PROVIDER TRAINING AND NON-
TRADITIONAL EMPLOYMENT.—Section 482(d)(1)(B) of
the Act is amended by adding at the end thereof the fol-
lowing new sentence: ‘‘The State shall include in its plan
a description of whether and how it will provide training
to prepare individuals to be child care providers. The State
shall also include in its plan a description of the steps it
will take to encourage the training and placement of par-
ticipants in nontraditional positions of employment, in-
cluding steps to increase program participants’ awareness
of the availability of such training and placement opportu-
nities.’’.
(f) WORK SUPPLEMENTATION EXTENSION.—Section
482(e) of the Act (as redesignated) is amended—
(1) in paragraph (2)(G)—
(A) by striking out ‘‘9 months’’ and insert-
ing in lieu thereof ‘‘12 months’’, and
(B) by striking out ‘‘without regard to the
provisions of subparagraph (b)(ii)(II) of such
section’’, and
(2) in paragraph (4)(A), striking out ‘‘9
months’’ and inserting in lieu thereof ‘‘12
months’’.
(g) AMENDMENTS TO JOB SEARCH PROGRAM.—Sec-
tion 482(g) of the Act is amended—
(1) in paragraph (1) by striking out ‘‘may’’ and
inserting in lieu thereof ‘‘shall’’;
(2) by amending so much of paragraph (2) as
precedes subparagraph (A) to read as follows:
‘‘(2) The State agency may require job search
by an individual who is applying for and shall upon
approval of the application require job search by an
individual who is receiving aid to families with de-
pendent children and is determined by the State to
have non-negligible work experience, or to have a
high school diploma or equivalent, including individ-
uals required by the State’s exercise of its option
under section 402(a)(19)(B) (i) and (ii) to partici-
pate in the program under this part—’’;
(3) in paragraph (2)(A), by striking out ‘‘8
weeks’’ and inserting in lieu thereof ‘‘12 weeks’’;
and
(4) by amending paragraph (2)(B) to read as
follows:
‘‘(B) at such time or times thereafter as
the State agency many determine, but not to
exceed a total of 4 months in any 12-month pe-
riod (and for this purpose, there shall be in-
cluded the time that the individual engaged in
job search pursuant to both subparagraph (A)
and section 482(c), but not any period of job
search that occurred at the same time that the
individual was participating in another activity
under this part.’’.
(h) PROCEDURES TO RESOLVE DISPUTES.—Section
482(h) of the Act is amended by striking out ‘‘shall estab-
lish’’ and all that follows down to ‘‘shall provide an oppor-
tunity for a hearing’’ and inserting in lieu thereof ‘‘shall
establish either (A) a conciliation procedure, meeting
standards established by the Secretary, for the resolution
of disputes involving an individual’s participation in the
program, or (B) a procedure that includes advance notice
to the individual of an apparent failure to comply with
a program requirement, and 10 days in which to contact
and meet with a State agency representative in order to
resolve the dispute (or to comply with the requirements)
and make unnecessary the imposition of a sanction. If the
dispute is not resolved through whichever of these proce-
dures the State adopts, the State agency’’.
(i) 
COORDINATION
REQUIREMENTS.—Section
483(a)(1) of the Act is amended by inserting immediately
following ‘‘the Job Training Partnership Act’’ in the first
sentence’’, the Adult Education Act, the Carl D. Perkins
Vocational and Applied Technology Education Act
Amendments of 1990,’’.
(j) PROVISIONS GENERALLY APPLICABLE TO PROVI-
SION OF SERVICES UNDER JOBS AND WORK.—Section
484 of the Act, including the heading, is amended to read
as follows:
‘‘PROVISIONS GENERALLY APPLICABLE TO PROVISION OF
SERVICES UNDER JOBS OR WORK
‘‘Sec. 484. (a) In assigning participants in the pro-
gram under this part to any program activity, or in assign-
ing individuals registered with the program under part G
to a position of employment, the State agency shall assure
that—
‘‘(1) each assignment takes into account the ca-
pacity, health and safety, family responsibilities, and
place of residence of the participant;
‘‘(2) no participant will be required, without his
or her consent, to travel an unreasonable distance
from his or her home or remain away from such
home overnight;
‘‘(3) individuals are not discriminated against
on the basis of race, color, sex, national origin, reli-
gion, age, or disability, and all participants will have
such rights as are available under any applicable
Federal, State, or local law prohibiting discrimina-
tion;
‘‘(4) no such assignment will—
‘‘(A) result in the displacement of any cur-
rently employed worker, including partial dis-
placement such as a reduction in the hours of
non-overtime work, wages, or employment bene-
fits;
‘‘(B) impair existing contracts for services
or collective bargaining agreements;
‘‘(C) infringe upon the promotional oppor-
tunities of any currently employed worker;
‘‘(D) result in the employment of the par-
ticipant or filling of a position when—
‘‘(i) any other person is on layoff, on
strike or has been locked out from, or has
recall rights to, the same or a substantially
equivalent job or position with the em-
ployer; or
‘‘(ii) the employer has terminated any
regular employee or otherwise reduced its
workforce with the effect of filling the va-
cancy so created with such participant; or
‘‘(E) result in filling a vacancy for a posi-
tion in a State or local government agency for
which State or local funds have been budgeted,
unless such agency has been unable to fill such
vacancy with a qualified applicant through such
agency’s regular employee selection procedure
during a period of not less than 60 days;
‘‘(5) no participant shall be assigned to a posi-
tion to perform work under a contract for services
for the first 90 days after the commencement of
such contract if such contract immediately succeeds
a contract for services under which an employee cov-
ered by a collective bargaining agreement performed
the same or substantially similar work for another
employer;
‘‘(6) no participant shall be assigned to a posi-
tion with a private nonprofit entity to carry out ac-
tivities that are the same or substantially equivalent
to activities that have been regularly carried out by
a State or local government agency in the same local
area, 
unless 
such 
placement 
meets 
the
nondisplacement requirements of paragraph (4);
‘‘(7) to the extent that a State workers’ com-
pensation law is applicable, workers’ compensation
benefits in accordance with such law shall be avail-
able with respect to injuries suffered by participants,
and, to the extent that such law is not applicable,
participants shall be provided with medical and acci-
dent protection for on-site injuries in accordance
with regulations issued by the Secretary;
‘‘(8) health and safety standards established
under State and Federal law that are otherwise ap-
plicable to the working conditions of employees shall
be equally applicable to the working conditions for
participants; and
‘‘(9) the State will establish and maintain griev-
ance procedures, meeting the requirements of sub-
section (c), for resolving complaints by regular em-
ployees or their representatives alleging violations of
the nondisplacement provisions described in para-
graph (4), or of the requirements relating to wages,
benefits and working conditions under this title.
‘‘(b) A grievance procedure that meets the require-
ments of this subsection must include the following proce-
dures:
‘‘(1) DEADLINES.—Hearings on any grievance
filed pursuant to subsection (a)(8) shall be con-
ducted within 30 days of the filing of such grievance
and a decision shall be made not later than 60 days
after the filing of such grievance. A grievance shall
be made not later than 45 days after the date of the
alleged occurrence.
‘‘(2) APPEALS.—Upon receiving a decision
under paragraph (1), or if 60 days has elapsed with-
out a decision being made, a grievant may either—
‘‘(A) file an appeal as provided for in the
State’s procedures or in regulations promul-
gated by the Secretary, or
‘‘(B) submit such grievance to binding ar-
bitration in accordance with paragraph (3).
‘‘(3) ARBITRATION.—
‘‘(A) IN GENERAL.—
‘‘(i) JOINTLY
SELECTED
ARBITRA-
TOR.—In accordance with paragraph (2)
on the occurrence of an adverse grievance
decision, or 60 days after the filing of such
grievance if no decision has been reached,
the party filing the grievance shall be per-
mitted to submit such grievance to binding
arbitration before a qualified arbitrator
who is jointly selected and independent of
the interested parties.
‘‘(ii) IMPASSE
PROCEDURES.—If the
parties are unable to agree on an arbitra-
tor within 20 days from when the request
for arbitration is filed, the parties shall re-
quest the Federal Mediation and Concilia-
tion Service or the American Arbitration
Association to submit a list of arbitrations.
The parties shall alternately strike names
from such list until the name of one person
remains, who shall be the arbitrator.
‘‘(B) DEADLINES.—An arbitration pro-
ceeding conducted pursuant to subparagraph
(A)(i) shall be held not later than 45 days after
the request for such arbitration, or if the arbi-
trator is appointed pursuant to paragraph
(A)(ii), not later than 30 days after such ap-
pointment, and a decision concerning such
grievance shall be made not later than 30 days
after the date of such arbitration proceeding.
‘‘(C) COST.—
‘‘(g) The provisions of this section apply to any work-
related programs and activities under this part or under
part G (as provided herein), and under any other work-
related programs and activities authorized (in connection
with the AFDC program) under section 1115.’’.
SEC. 104. TWENTY-FOUR MONTH LIMIT.
Part A of title IV of the Social Security Act is amend-
ed by redesignating section 417 as section 419 and adding
after and below section 416 the following new section:
‘‘SEC. 417. TWENTY-FOUR MONTH LIMIT.
‘‘(a) LIMITATION.—(1) IN
GENERAL.—Notwith-
standing any other provision of law, a State plan approved
under this part must provide that, except as otherwise pro-
vided in this title, aid to families with dependent children
will not be payable to an individual to whom section
402(a)(19)(B) (i) or (ii) applies or to individuals who have
choses to participate in the program under part F and
to 
whom 
the 
State 
has 
elected 
under 
section
402(a)(19)(C) to apply this section, or to his or her de-
pendent child or children living in the same home with
such individual for any month after the twenty-fourth
month (whether or not such months are consecutive) for
which such individual has, together with his or her de-
pendent child or children, received aid under the State’s
plan, or under the plan of any other State, approved under