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SEC. 1065. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7
U.S.C. 2021(a)) is amended by adding at the end the fol-
lowing:
‘‘Regulations issued pursuant to this Act shall provide cri-
teria for the finding of violations and the suspension or
disqualification of a retail food store or wholesale food con-
cern on the basis of evidence which may include, but is
not limited to, facts established through on-site investiga-
tions, inconsistent redemption data or evidence obtained
through transaction reports under electronic benefit trans-
fer systems.’’.
SEC. 1066. FOOD STAMP ELIGIBILITY.
Section 6(f) of the Food Stamp Act of 1977 (7
U.S.C. 2015(f)) is amended by striking the third sentence
and inserting the following:
‘‘The State agency shall, at its option, consider either all
income and financial resources of the individual rendered
ineligible to participate in the food stamp program under
this subsection, or such income, less a pro rata share, and
the financial resources of the ineligible individual, to deter-
mine the eligibility and the value of the allotment of the
household of which such individual is a member.’’.
SEC. 1067. REPORT BY THE SECRETARY.
The Secretary of Agriculture may report to the Com-
mittee on Agriculture of the House of Representatives, not
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later than January 1, 2000, on the effect of the food
stamp reforms in the Welfare and Medicaid Reform Act
of 1996 and the ability of State and local governments
to deal with people in poverty. The report must answer
the question: ‘‘Did people become more personally respon-
sible and were work opportunities provided such that pov-
erty in America is better managed?’’.
SEC. 1068. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of
the House of Representatives that reductions in outlays
resulting from this title shall not be taken into account
for purposes of section 552 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
Subtitle B—Commodity
Distribution Programs
SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL
COMMODITIES.—The term
‘additional commodities’ means commodities made
available under section 214 in addition to the com-
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modities made available under sections 202 and
203D.
‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM-
PLOYED
PERSONS.—The term ‘average monthly
number of unemployed persons’ means the average
monthly 
number 
of 
unemployed
persons in each State in the most recent fiscal year
for which information concerning the number of un-
employed persons is available, as determined by the
Bureau of Labor Statistics of the Department of
Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term
‘eligible recipient agency’ means a public or non-
profit organization—
‘‘(A) that administers—
‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (including
a hospital and a retirement home, but ex-
cluding a penal institution) to the extent
that the institution serves needy persons;
‘‘(iii) a summer camp for children, or
a child nutrition program providing food
service;
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‘‘(iv) a nutrition project operating
under the Older Americans Act of 1965
(42 U.S.C. 3001 et seq.), including a
project that operates a congregate nutri-
tion site and a project that provides home-
delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the ap-
propriate State agency, or by the Secretary;
and
‘‘(C) that has been approved by the Sec-
retary for participation in the program estab-
lished under this Act.
‘‘(4) EMERGENCY
FEEDING
ORGANIZATION.—
The term ‘emergency feeding organization’ means a
public or nonprofit organization that administers ac-
tivities and projects (including the activities and
projects of a charitable institution, a food bank, a
food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recip-
ient agency) providing nutrition assistance to relieve
situations of emergency and distress through the
provision of food to needy persons, including low-in-
come and unemployed persons.
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‘‘(5) FOOD
BANK.—The term ‘food bank’
means a public or charitable institution that main-
tains an established operation involving the provision
of food or edible commodities, or the products of
food or edible commodities, to food pantries, soup
kitchens, hunger relief centers, or other food or feed-
ing centers that, as an integral part of their normal
activities, provide meals or food to feed needy per-
sons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’
means a public or private nonprofit organization
that distributes food to low-income and unemployed
households, including food from sources other than
the Department of Agriculture, to relieve situations
of emergency and distress.
‘‘(7) POVERTY LINE.—The term ‘poverty line’
has the same meaning given the term in section
673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’
means a public or charitable institution that, as an
integral part of the normal activities of the institu-
tion, maintains an established feeding operation to
provide food to needy homeless persons on a regular
basis.
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‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD-
ITIES.—The term ‘total value of additional commod-
ities’ means the actual cost of all additional com-
modities made available under section 214 that are
paid by the Secretary (including the distribution and
processing costs incurred by the Secretary).
‘‘(10) VALUE
OF
ADDITIONAL
COMMODITIES
ALLOCATED TO EACH STATE.—The term ‘value of
additional commodities allocated to each State’
means the actual cost of additional commodities
made available under section 214 and allocated to
each State that are paid by the Secretary (including
the distribution and processing costs incurred by the
Secretary).’’.
(b) STATE PLAN.—Section 202A of the Act (7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 202A. STATE PLAN.
‘‘(a) IN GENERAL.—To receive commodities under
this Act, a State shall submit a plan of operation and ad-
ministration every 4 years to the Secretary for approval.
The plan may be amended at any time, with the approval
of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for
distributing the commodities received under this Act;
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‘‘(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this Act;
‘‘(3) set forth the standards of eligibility for re-
cipient agencies; and
‘‘(4) set forth the standards of eligibility for in-
dividual or household recipients of commodities,
which shall require—
‘‘(A) individuals or households to be com-
prised of needy persons; and
‘‘(B) individual or household members to
be residing in the geographic location served by
the distributing agency at the time of applying
for assistance.
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall
encourage each State receiving commodities under this Act
to establish a State advisory board consisting of represent-
atives of all interested entities, both public and private,
in the distribution of commodities received under this Act
in the State.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE FUNDS.—Section 204(a)(1) of the Act (7
U.S.C. 612c note) is amended—
(1) in the first sentence by striking ‘‘for State
and local’’ and all that follows through ‘‘under this
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title’’ and inserting ‘‘to pay for the direct and indi-
rect administrative costs of the State related to the
processing, transporting, and distributing to eligible
recipient agencies of commodities provided by the
Secretary under this Act and commodities secured
from other sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the
Act (7 U.S.C. 612c note) is amended—
(1) by striking subsections (a) through (e) and
(j);
(2) by redesignating subsections (f) through (i)
as subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by para-
graph (2)—
(A) in the first sentence, by striking ‘‘sub-
section (f) or subsection (j) if applicable,’’ and
inserting ‘‘subsection (a)’’; and
(B) in the second sentence, by striking
‘‘subsection (f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated
by paragraph (2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made avail-
able for each fiscal year under this section shall be
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delivered at reasonable intervals to States based on
the grants calculated under subsection (a), or reallo-
cated under subsection (b), before December 31 of
the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be enti-
tled to receive the value of additional commodities
determined under subsection (a).’’; and
(5) in subsection (d), as redesignated by para-
graph (2), by striking ‘‘or reduce’’ and all that fol-
lows through ‘‘each fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C.
612c note) is amended—
(1) in the first sentence of section 203B(a), by
striking ‘‘203 and 203A of this Act’’ and inserting
‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each
place it appears and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by
striking ‘‘(except as otherwise provided for in section
214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food
Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c
note) is repealed.
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(g) AVAILABILITY
OF COMMODITIES UNDER
THE
FOOD STAMP PROGRAM.—The Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.), as amended by sections 1062 and
1063, is amended by adding at the end the following:
‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER-
GENCY FOOD ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts
appropriated under this Act, for each of fiscal years 1997
through 2002, the Secretary shall purchase $300,000,000
of a variety of nutritious and useful commodities of the
types that the Secretary has the authority to acquire
through the Commodity Credit Corporation or under sec-
tion 32 of the Act entitled ‘An Act to amend the Agricul-
tural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the com-
modities to States for distribution in accordance with sec-
tion 214 of the Emergency Food Assistance Act of 1983
(Public Law 98–8; 7 U.S.C. 612c note).
‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur-
chasing commodities under subsection (a), the Secretary
shall, to the extent practicable and appropriate, make pur-
chases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and dis-
tributing agencies; and
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‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by
subsection (d) shall become effective on October 1, 1996.
SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food
Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c
note) is repealed.
SEC. 1073. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law
100–435; 7 U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROC-
ESSING.
Section 1773 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
612c note) is amended by striking subsection (f).
Subtitle C—Electronic Benefit
Transfer Systems
SEC. 1091. PROVISIONS TO ENCOURAGE ELECTRONIC BEN-
EFIT TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
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(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) 
APPLICABILITY
TO
SERVICE
PROVIDERS
OTHER
THAN
CERTAIN
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION
GENERALLY.—The dis-
closures, protections, responsibilities, and rem-
edies established under this title, and any regu-
lation prescribed or order issued by the Board
in accordance with this title, shall not apply to
any electronic benefit transfer program estab-
lished under State or local law or administered
by a State or local government.
‘‘(B) EXCEPTION
FOR
DIRECT
DEPOSIT
INTO
RECIPIENT’S
ACCOUNT.—Subparagraph
(A) shall not apply with respect to any elec-
tronic funds transfer under an electronic benefit
transfer program for deposits directly into a
consumer account held by the recipient of the
benefit.
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TITLE II—COMMITTEE ON
COMMERCE
SEC. 2000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 2000. Table of contents.
Subtitle A—Involvement of Commerce Committee in Federal Government
Position Reductions
Sec. 2001. Involvement of Commerce Committee in Federal government posi-
tion reductions.
Subtitle B—Restricting Public Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 2101. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 2102. Five-year limited eligibility of qualified aliens for Federal means-
tested public benefit.
Sec. 2103. Notification.
CHAPTER 2—GENERAL PROVISIONS
Sec. 2111. Definitions.
Sec. 2112. Verification of eligibility for Federal public benefits.
Subtitle C—Energy Assistance
Sec. 2201. Energy assistance.
Subtitle D—Abstinence Education
Sec. 2301. Abstinence education.
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Subtitle A—Involvement of Com-
merce Committee in Federal
Government 
Position 
Reduc-
tions
SEC. 2001. INVOLVEMENT OF COMMERCE COMMITTEE IN
FEDERAL GOVERNMENT POSITION REDUC-
TIONS.
In any provision of law that provides for consultation
with (or a report to) a relevant committee of Congress
respecting reductions in Federal Government positions, a
reference to the Committee on Commerce of the House
of Representatives shall be deemed to have been made in
relation to matters within the jurisdiction of such Commit-
tee.
Subtitle B—Restricting Public
Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL
BENEFITS
SEC. 2101. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI-
GIBLE FOR FEDERAL PUBLIC BENEFITS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is not a qualified alien (as defined in section
2111) is not eligible for any Federal public benefit (as de-
fined in subsection (c)).
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(b) EXCEPTIONS.—Subsection (a) shall not apply
with respect to the following Federal public benefits:
(1) Emergency medical services under title XIX
of the Social Security Act.
(2)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a serious communicable disease if the
Secretary of Health and Human Services determines
that it is necessary to prevent the spread of such
disease.
(c) FEDERAL PUBLIC BENEFIT DEFINED.—
(1) Except as provided in paragraph (2), for
purposes of this part, the term ‘‘Federal public ben-
efit’’ means—
(A) any grant, contract, loan, professional
license, or commercial license provided by an
agency of the United States or by appropriated
funds of the United States; and
(B) any retirement, welfare, health, dis-
ability, or any other similar benefit for which
payments or assistance are provided to an indi-
vidual, household, or family eligibility unit by
an agency of the United States or by appro-
priated funds of the United States,
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but only if such grant, contract, loan, or license
under subparagraph (A) or program providing bene-
fits under subparagraph (B) is under the jurisdic-
tion of the Committee on Commerce of the House of
Representatives.
(2) Such term shall not apply—
(A) to any contract, professional license, or
commercial license for a nonimmigrant whose
visa for entry is related to such employment in
the United States; or
(B) with respect to benefits for an alien
who as a work authorized nonimmigrant or as
an alien lawfully admitted for permanent resi-
dence under the Immigration and Nationality
Act qualified for such benefits and for whom
the United States under reciprocal treaty agree-
ments is required to pay benefits, as determined
by the Attorney General, after consultation with
the Secretary of State.
SEC. 2102. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED
ALIENS FOR FEDERAL MEANS-TESTED PUB-
LIC BENEFIT.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is a qualified alien (as defined in section 2111)
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and who enters the United States on or after the date
of the enactment of this Act is not eligible for any Federal
means-tested public benefit (as defined in subsection (c))
for a period of five years beginning on the date of the
alien’s entry into the United States with a status within
the meaning of the term ‘‘qualified alien’’.
(b) EXCEPTIONS.—The limitation under subsection
(a) shall not apply to the following aliens:
(1) 
EXCEPTION
FOR
REFUGEES
AND
ASYLEES.—
(A) An alien who is admitted to the United
States as a refugee under section 207 of the
Immigration and Nationality Act.
(B) An alien who is granted asylum under
section 208 of such Act.
(C) An alien whose deportation is being
withheld under section 243(h) of such Act.
(2) VETERAN AND ACTIVE DUTY EXCEPTION.—
An alien who is lawfully residing in any State and
is—
(A) a veteran (as defined in section 101 of
title 38, United States Code) with a discharge
characterized as an honorable discharge and not
on account of alienage,
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(B) on active duty (other than active duty
for training) in the Armed Forces of the United
States, or
(C) the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).
(c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE-
FINED.—
(1) Except as provided in paragraph (2), for
purposes of this part, the term ‘‘Federal means-test-
ed public benefit’’ means a Federal public benefit
described in section 2101(c) in which the eligibility
of an individual, household, or family eligibility unit
for benefits, or the amount of such benefits, or both
are determined on the basis of income, resources, or
financial need of the individual, household, or unit.
(2) Such term does not include the following:
(A) Emergency medical services under title
XIX of the Social Security Act.
(B)(i) Public health assistance for immuni-
zations.
(ii) Public health assistance for testing and
treatment of a serious communicable disease if
the Secretary of Health and Human Services
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determines that it is necessary to prevent the
spread of such disease.
SEC. 2103. NOTIFICATION.
Each Federal agency that administers a program to
which section 2101 or 2102 applies shall, directly or
through the States, post information and provide general
notification to the public and to program recipients of the
changes regarding eligibility for any such program pursu-
ant to this subpart.
CHAPTER 2—GENERAL PROVISIONS
SEC. 2111. DEFINITIONS.
(a) IN GENERAL.—Except as otherwise provided in
this part, the terms used in this part have the same mean-
ing given such terms in section 101(a) of the Immigration
and Nationality Act.
(b) QUALIFIED ALIEN.—For purposes of this part,
the term ‘‘qualified alien’’ means an alien who, at the time
the alien applies for, receives, or attempts to receive a
Federal public benefit, is—
(1) an alien who is lawfully admitted for perma-
nent residence under the Immigration and National-
ity Act,
(2) an alien who is granted asylum under sec-
tion 208 of such Act,
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(3) a refugee who is admitted to the United
States under section 207 of such Act,
(4) an alien who is paroled into the United
States under section 212(d)(5) of such Act for a pe-
riod of at least 1 year,
(5) an alien whose deportation is being withheld
under section 243(h) of such Act, or
(6) an alien who is granted conditional entry
pursuant to section 203(a)(7) of such Act as in ef-
fect prior to April 1, 1980.
SEC. 2112. VERIFICATION OF ELIGIBILITY FOR FEDERAL
PUBLIC BENEFITS.
(a) IN GENERAL.—Not later than 18 months after
the date of the enactment of this Act, the Attorney Gen-
eral of the United States, after consultation with the Sec-
retary of Health and Human Services, shall promulgate
regulations requiring verification that a person applying
for a Federal public benefit (as defined in section
2101(c)), to which the limitation under section 2101 ap-
plies, is a qualified alien and is eligible to receive such
benefit. Such regulations shall, to the extent feasible, re-
quire that information requested and exchanged be similar
in form and manner to information requested and ex-
changed under section 1137 of the Social Security Act.
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(b) STATE COMPLIANCE.—Not later than 24 months
after the date the regulations described in subsection (a)
are adopted, a State that administers a program that pro-
vides a Federal public benefit shall have in effect a ver-
ification system that complies with the regulations.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out the purpose of this section.
Subtitle C—Energy Assistance
SEC. 2201. ENERGY ASSISTANCE.
Section 2605(f) of the Low-Income Home Energy As-
sistance Act of 1981 (42 U.S.C. 8624(f)) is amended—
(1) by striking ‘‘(f)(1) Notwithstanding’’ and
inserting ‘‘(f) Notwithstanding’’; and
(2) by striking paragraph (2).
Subtitle D—Abstinence Education
SEC. 2301. ABSTINENCE EDUCATION.
(a) INCREASES IN FUNDING.—Section 501(a) of the
Social Security Act (42 U.S.C. 701(a)) is amended in the
matter preceding paragraph (1) by striking ‘‘Fiscal year
1990 and each fiscal year thereafter’’ and inserting ‘‘Fis-
cal years 1990 through 1995 and $761,000,000 for fiscal
year 1996 and each fiscal year thereafter’’.
(b) ABSTINENCE EDUCATION.—Section 501(a)(1) of
such Act (42 U.S.C. 701(a)(1)) is amended—
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(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by adding ‘‘and’’ at
the end; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) to provide abstinence education, and
at the option of the State, where appropriate,
mentoring, counseling, and adult supervision to
promote abstinence from sexual activity, with a
focus on those groups which are most likely to
bear children out-of-wedlock.’’.
(c) ABSTINENCE
EDUCATION
DEFINED.—Section
501(b) of such Act (42 U.S.C. 701(b)) is amended by add-
ing at the end the following new paragraph:
‘‘(5) ABSTINENCE EDUCATION.—For purposes
of this subsection, the term ‘abstinence education’
means an educational or motivational program
which—
‘‘(A) has as its exclusive purpose, teaching
the social, psychological, and health gains to be
realized by abstaining from sexual activity;
‘‘(B) teaches abstinence from sexual activ-
ity outside marriage as the expected standard
for all school age children;
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‘‘(C) teaches that abstinence from sexual
activity is the only certain way to avoid out-of-
wedlock pregnancy, sexually transmitted dis-
eases, and other associated health problems;
‘‘(D) teaches that a mutually faithful
monogamous relationship in context of marriage
is the expected standard of human sexual activ-
ity;
‘‘(E) teaches that sexual activity outside of
the context of marriage is likely to have harm-
ful psychological and physical effects;
‘‘(F) teaches that bearing children out-of-
wedlock is likely to have harmful consequences
for the child, the child’s parents, and society;
‘‘(G) teaches young people how to reject
sexual advances and how alcohol and drug use
increases vulnerability to sexual advances; and
‘‘(H) teaches the importance of attaining
self-sufficiency before engaging in sexual activ-
ity.’’.
(d) SET-ASIDE.—
(1) IN GENERAL.—Section 502(c) of such Act
(42 U.S.C. 702(c)) is amended in the matter preced-
ing paragraph (1) by striking ‘‘From’’ and inserting
‘‘Except as provided in subsection (e), from’’.
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(2) SET-ASIDE.—Section 502 of such Act (42
U.S.C. 702) is amended by adding at the end the
following new subsection:
‘‘(e) Of the amounts appropriated under section
501(a) for any fiscal year, the Secretary shall set aside
$75,000,000 for abstinence education in accordance with
section 501(a)(1)(E).’’.
TITLE III—COMMITTEE ON ECO-
NOMIC 
AND 
EDUCATIONAL
OPPORTUNITIES
SEC. 3001. SHORT TITLE.
This title may be cited as the ‘‘Personal Responsibil-
ity and Work Opportunity Act of 1996’’.
SEC. 3002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 3001. Short title.
Sec. 3002. Table of contents.
Subtitle A—Child Care
Sec. 3101. Short title and references.
Sec. 3102. Goals.
Sec. 3103. Authorization of appropriations and entitlement authority.
Sec. 3104. Lead agency.
Sec. 3105. Application and plan.
Sec. 3106. Limitation on State allotments.
Sec. 3107. Activities to improve the quality of child care.
Sec. 3108. Repeal of early childhood development and before- and after-school
care requirement.
Sec. 3109. Administration and enforcement.
Sec. 3110. Payments.
Sec. 3111. Annual report and audits.
Sec. 3112. Report by the Secretary.
Sec. 3113. Allotments.
Sec. 3114. Definitions.
Sec. 3115. Repeals.
Sec. 3116. Effective date.
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Subtitle B—Child Nutrition Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH ACT
Sec. 3201. State disbursement to schools.
Sec. 3202. Nutritional and other program requirements.
Sec. 3203. Free and reduced price policy statement.
Sec. 3204. Special assistance.
Sec. 3205. Miscellaneous provisions and definitions.
Sec. 3206. Summer food service program for children.
Sec. 3207. Commodity distribution.
Sec. 3208. Child care food program.
Sec. 3209. Pilot projects.
Sec. 3210. Reduction of paperwork.
Sec. 3211. Information on income eligibility.
Sec. 3212. Nutrition guidance for child nutrition programs.
Sec. 3213. Information clearinghouse.
CHAPTER 2—CHILD NUTRITION ACT OF 1966
Sec. 3221. Special milk program.
Sec. 3222. Free and reduced price policy statement.
Sec. 3223. School breakfast program authorization.
Sec. 3224. State administrative expenses.
Sec. 3225. Regulations.
Sec. 3226. Prohibitions.
Sec. 3227. Miscellaneous provisions and definitions.
Sec. 3228. Accounts and records.
Sec. 3229. Special supplemental nutrition program for women, infants, and
children.
Sec. 3230. Cash grants for nutrition education.
Sec. 3231. Nutrition education and training.
CHAPTER 3—MISCELLANEOUS PROVISIONS
Sec. 3241. Coordination of school lunch, school breakfast, and summer food
service programs.
Subtitle C—Related Provisions
Sec. 3301. Requirement that data relating to the incidence of poverty in the
United States be published at least every 2 years.
Sec. 3302. Sense of the Congress.
Sec. 3303. Legislative accountability.
Subtitle A—Child Care
SEC. 3101. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Child Care and Development Block Grant Amendments
of 1996’’.
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(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this subtitle an amendment or re-
peal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
SEC. 3102. GOALS.
Section 658A (42 U.S.C. 9801 note) is amended—
(1) in the section heading by inserting ‘‘AND
GOALS’’ after ‘‘TITLE’’;
(2) by inserting ‘‘(a) SHORT TITLE.—’’ before
‘‘This’’; and
(3) by adding at the end the following:
‘‘(b) GOALS.—The goals of this subchapter are—
‘‘(1) to allow each State maximum flexibility in
developing child care programs and policies that best
suit the needs of children and parents within such
State;
‘‘(2) to promote parental choice to empower
working parents to make their own decisions on the
child care that best suits their family’s needs;
‘‘(3) to encourage States to provide consumer
education information to help parents make in-
formed choices about child care;
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‘‘(4) to assist States to provide child care to
parents trying to achieve independence from public
assistance; and
‘‘(5) to assist States in implementing the
health, safety, licensing, and registration standards
established in State regulations.’’.
SEC. 3103. AUTHORIZATION OF APPROPRIATIONS AND EN-
TITLEMENT AUTHORITY.
(a) IN GENERAL.—Section 658B (42 U.S.C. 9858)
is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subchapter $1,000,000,000 for each of the fiscal
years 1996 through 2002.’’.
(b) SOCIAL SECURITY ACT.—Part A of title IV of
the Social Security Act (42 U.S.C. 601–617) is amended
by adding at the end the following new section:
‘‘SEC. 418. FUNDING FOR CHILD CARE.
‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—
‘‘(1) GENERAL ENTITLEMENT.—Subject to the
amount appropriated under paragraph (3), each
State shall, for the purpose of providing child care
assistance, be entitled to payments under a grant
under this subsection for a fiscal year in an amount
equal to—
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‘‘(A) the sum of the total amount required
to be paid to the State under section 403 for
fiscal year 1994 or 1995 (whichever is greater)
with respect to amounts expended for child care
under section—
‘‘(i) 402(g) of this Act (as such sec-
tion was in effect before October 1, 1995);
and
‘‘(ii) 402(i) of this Act (as so in ef-
fect); or
‘‘(B) the average of the total amounts re-
quired to be paid to the State for fiscal years
1992 through 1994 under the sections referred
to in subparagraph (A);
whichever is greater.
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use
any amounts appropriated for a fiscal year
under paragraph (3), and remaining after the
reservation described in paragraph (4) and
after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
‘‘(B) AMOUNT.—Subject to subparagraph
(C), the amount of a grant awarded to a State
for a fiscal year under this paragraph shall be
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based on the formula used for determining the
amount of Federal payments to the State under
section 403(n) (as such section was in effect be-
fore October 1, 1995).
‘‘(C) MATCHING REQUIREMENT.—The Sec-
retary shall pay to each eligible State in a fiscal
year an amount, under a grant under subpara-
graph (A), equal to the Federal medical assist-
ance percentage for such State for fiscal year
1995 (as defined in section 1905(b)) of so
much of the expenditures by the State for child
care in such year as exceed the State set-aside
for such State under paragraph (1)(A) for such
year and the amount of State expenditures in
fiscal year 1994 or 1995 (whichever is greater)
that equal the non-Federal share for the pro-
grams described in subparagraph (A) of para-
graph (1).
‘‘(D) REDISTRIBUTION.—
‘‘(i) IN
GENERAL.—With respect to
any fiscal year, if the Secretary determines
(in accordance with clause (ii)) that
amounts under any grant awarded to a
State under this paragraph for such fiscal
year will not be used by such State during
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such fiscal year for carrying out the pur-
pose for which the grant is made, the Sec-
retary shall make such amounts available
in the subsequent fiscal year for carrying
out such purpose to 1 or more States
which apply for such funds to the extent
the Secretary determines that such States
will be able to use such additional amounts
for carrying out such purpose. Such avail-
able amounts shall be redistributed to a
State pursuant to section 402(i) (as such
section was in effect before October 1,
1995) by substituting ‘the number of chil-
dren residing in all States applying for
such funds’ for ‘the number of children re-
siding in the United States in the second
preceding fiscal year’.
‘‘(ii) TIME OF DETERMINATION AND
DISTRIBUTION.—The determination of the
Secretary under clause (i) for a fiscal year
shall be made not later than the end of the
first quarter of the subsequent fiscal year.
The redistribution of amounts under clause
(i) shall be made as close as practicable to
the date on which such determination is
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made. Any amount made available to a
State from an appropriation for a fiscal
year in accordance with this subparagraph
shall, for purposes of this part, be re-
garded as part of such State’s payment (as
determined under this subsection) for the
fiscal year in which the redistribution is
made.
‘‘(3) APPROPRIATION.—For grants under this
section, there are appropriated—
‘‘(A) $1,967,000,000 for fiscal year 1997;
‘‘(B) $2,067,000,000 for fiscal year 1998;
‘‘(C) $2,167,000,000 for fiscal year 1999;
‘‘(D) $2,367,000,000 for fiscal year 2000;
‘‘(E) $2,567,000,000 for fiscal year 2001;
and
‘‘(F) $2,717,000,000 for fiscal year 2002.
‘‘(4) INDIAN TRIBES.—The Secretary shall re-
serve not more than 1 percent of the aggregate
amount appropriated to carry out this section in
each fiscal year for payments to Indian tribes and
tribal organizations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—Amounts received by a
State under this section shall only be used to provide
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child care assistance. Amounts received by a State
under a grant under subsection (a)(1) shall be avail-
able for use by the State without fiscal year limita-
tion.
‘‘(2) USE
FOR
CERTAIN
POPULATIONS.—A
State shall ensure that not less than 70 percent of
the total amount of funds received by the State in
a fiscal year under this section are used to provide
child care assistance to families who are receiving
assistance under a State program under this part,
families who are attempting through work activities
to transition off of such assistance program, and
families who are at risk of becoming dependent on
such assistance program.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOP-
MENT BLOCK GRANT ACT of 1990.—Notwithstanding any
other provision of law, amounts provided to a State under
this section shall be transferred to the lead agency under
the Child Care and Development Block Grant Act of 1990,
integrated by the State into the programs established by
the State under such Act, and be subject to requirements
and limitations of such Act.
‘‘(d) DEFINITION.—As used in this section, the term
‘State’ means each of the 50 States or the District of Co-
lumbia.’’.
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SEC. 3104. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking
‘‘State’’ the first place that such appears and
inserting ‘‘governmental or nongovernmental’’;
and
(B) in subparagraph (C), by inserting
‘‘with sufficient time and Statewide distribution
of the notice of such hearing,’’ after ‘‘hearing in
the State’’; and
(2) in paragraph (2), by striking the second
sentence.
SEC. 3105. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all
that follows through ‘‘(2)’’ and inserting ‘‘im-
plemented’’; and
(B) by striking ‘‘for subsequent State
plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
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(I) in clause (i) by striking ‘‘,
other than through assistance pro-
vided under paragraph (3)(C),’’; and
(II) by striking ‘‘except’’ and all
that follows through ‘‘1992’’, and in-
serting ‘‘and provide a detailed de-
scription of the procedures the State
will implement to carry out the re-
quirements of this subparagraph’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of such procedures’’;
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of how such record
is maintained and is made available’’;
(iv) by amending subparagraph (D) to
read as follows:
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‘‘(D) CONSUMER
EDUCATION
INFORMA-
TION.—Certify that the State will collect and
disseminate to parents of eligible children and
the general public, consumer education informa-
tion that will promote informed child care
choices.’’;
(v) in subparagraph (E), to read as
follows:
‘‘(E) COMPLIANCE WITH STATE LICENSING
REQUIREMENTS.—
‘‘(i) IN
GENERAL.—Certify that the
State has in effect licensing requirements
applicable to child care services provided
within the State, and provide a detailed de-
scription of such requirements and of how
such requirements are effectively enforced.
Nothing in the preceding sentence shall be
construed to require that licensing require-
ments be applied to specific types of pro-
viders of child care services.
‘‘(ii) INDIAN TRIBES AND TRIBAL OR-
GANIZATIONS.—In lieu of any licensing
and regulatory requirements applicable
under State and local law, the Secretary,
in consultation with Indian tribes and trib-
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al organizations, shall develop minimum
child care standards (that appropriately re-
flect tribal needs and available resources)
that shall be applicable to Indian tribes
and tribal organization receiving assistance
under this subchapter.’’;
(vi) in subparagraph (G) by striking
‘‘Provide assurances’’ and inserting ‘‘Cer-
tify’’; and
(vii) by striking subparagraphs (H),
(I), and (J) and inserting the following:
‘‘(H) MEETING THE NEEDS OF CERTAIN
POPULATIONS.—Demonstrate the manner in
which the State will meet the specific child care
needs of families who are receiving assistance
under a State program under part A of title IV
of the Social Security Act, families who are at-
tempting through work activities to transition
off of such assistance program, and families
that are at risk of becoming dependent on such
assistance program.’’;
(B) in paragraph (3)—
(i) in subparagraph (A), by striking
‘‘(B) and (C)’’ and inserting ‘‘(B) through
(D)’’;
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(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the
reservation contained in subparagraph
(C), the’’ and inserting ‘‘AND RELAT-
ED ACTIVITIES.—The’’;
(II) in clause (i) by striking ‘‘;
and’’ at the end and inserting a pe-
riod;
(III) by striking ‘‘for—’’ and all
that 
follows 
through 
‘‘section
658E(c)(2)(A)’’ and inserting ‘‘for
child care services on sliding fee scale
basis, activities that improve the qual-
ity or availability of such services, and
any other activity that the State
deems appropriate to realize any of
the goals specified in paragraphs (2)
through (5) of section 658A(b)’’; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to
read as follows:
‘‘(C) LIMITATION
ON
ADMINISTRATIVE
COSTS.—Not more than 5 percent of the aggre-
gate amount of funds available to the State to
carry out this subchapter by a State in each fis-
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cal year may be expended for administrative
costs incurred by such State to carry out all of
its functions and duties under this subchapter.
As used in the preceding sentence, the term
‘administrative costs’ shall not include the costs
of providing direct services.’’; and
(iv) by adding at the end thereof the
following:
‘‘(D) ASSISTANCE
FOR
CERTAIN
FAMI-
LIES.—A State shall ensure that a substantial
portion of the amounts available (after the
State has complied with the requirement of sec-
tion 418(b)(2) of the Social Security Act with
respect to each of the fiscal years 1997 through
2002) to the State to carry out activities under
this subchapter in each fiscal year is used to
provide assistance to low-income working fami-
lies other than families described in paragraph
(2)(H).’’; and
(C) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’
and inserting ‘‘certify’’;
(ii) in the first sentence by inserting
‘‘and shall provide a summary of the facts
relied on by the State to determine that
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such rates are sufficient to ensure such ac-
cess’’ before the period; and
(iii) by striking the last sentence.
SEC. 3106. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is
amended by striking ‘‘No’’ and inserting ‘‘Except as pro-
vided for in section 658O(c)(6), no’’.
SEC. 3107. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read
as follows:
‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE.
‘‘A State that receives funds to carry out this sub-
chapter for a fiscal year, shall use not less than 4 percent
of the amount of such funds for activities that are de-
signed to provide comprehensive consumer education to
parents and the public, activities that increase parental
choice, and activities designed to improve the quality and
availability of child care (such as resource and referral
services).’’.
SEC. 3108. REPEAL OF EARLY CHILDHOOD DEVELOPMENT
AND BEFORE- AND AFTER-SCHOOL CARE RE-
QUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
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SEC. 3109. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended—
(1) in paragraph (1), by striking ‘‘, and shall
have’’ and all that follows through ‘‘(2)’’; and
(2) in the matter following clause (ii) of para-
graph (2)(A), by striking ‘‘finding and that’’ and all
that follows through the period and inserting ‘‘find-
ing and shall require that the State reimburse the
Secretary for any funds that were improperly ex-
pended for purposes prohibited or not authorized by
this subchapter, that the Secretary deduct from the
administrative portion of the State allotment for the
following fiscal year an amount that is less than or
equal to any improperly expended funds, or a com-
bination of such options.’’.
SEC. 3110. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended by
striking ‘‘expended’’ and inserting ‘‘obligated’’.
SEC. 3111. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended—
(1) in the section heading by striking ‘‘ANNUAL
REPORT’’ and inserting ‘‘REPORTS’’;
(2) in subsection (a), to read as follows:
‘‘(a) REPORTS.—
‘‘(1) 
COLLECTION
OF
INFORMATION
BY
STATES.—
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‘‘(A) IN GENERAL.—A State that receives
funds to carry out this subchapter shall collect
the information described in subparagraph (B)
on a monthly basis.
‘‘(B) REQUIRED
INFORMATION.—The in-
formation required under this subparagraph
shall include, with respect to a family unit re-
ceiving assistance under this subchapter infor-
mation concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender, race, and age of
children receiving such assistance;
‘‘(iv) whether the family includes only
1 parent;
‘‘(v) the sources of family income, in-
cluding the amount obtained from (and
separately identified)—
‘‘(I) employment, including self-
employment;
‘‘(II) cash or other assistance
under part A of title IV of the Social
Security Act;
‘‘(III) housing assistance;
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‘‘(IV) assistance under the Food
Stamp Act of 1977; and
‘‘(V) other assistance programs;
‘‘(vi) the number of months the family
has received benefits;
‘‘(vii) the type of child care in which
the child was enrolled (such as family child
care, home care, or center-based child
care);
‘‘(viii) whether the child care provider
involved was a relative;
‘‘(ix) the cost of child care for such
families; and
‘‘(x) the average hours per week of
such care;
during the period for which such information is
required to be submitted.
‘‘(C) 
SUBMISSION
TO
SECRETARY.—A
State described in subparagraph (A) shall, on a
quarterly basis, submit the information required
to be collected under subparagraph (B) to the
Secretary.
‘‘(D) SAMPLING.—The Secretary may dis-
approve the information collected by a State
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under this paragraph if the State uses sampling
methods to collect such information.
‘‘(2) BIANNUAL REPORTS.—Not later than De-
cember 31, 1997, and every 6 months thereafter, a
State described in paragraph (1)(A) shall prepare
and submit to the Secretary a report that includes
aggregate data concerning—
‘‘(A) the number of child care providers
that received funding under this subchapter as
separately identified based on the types of pro-
viders listed in section 658P(5);
‘‘(B) the monthly cost of child care serv-
ices, and the portion of such cost that is paid
for with assistance provided under this sub-
chapter, listed by the type of child care services
provided;
‘‘(C) the number of payments made by the
State through vouchers, contracts, cash, and
disregards under public benefit programs, listed
by the type of child care services provided;
‘‘(D) the manner in which consumer edu-
cation information was provided to parents and
the number of parents to whom such informa-
tion was provided; and
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‘‘(E) the total number (without duplica-
tion) of children and families served under this
subchapter;
during the period for which such report is required
to be submitted.’’; and
(2) in subsection (b)—
(A) in paragraph (1) by striking ‘‘a appli-
cation’’ and inserting ‘‘an application’’;
(B) in paragraph (2) by striking ‘‘any
agency administering activities that receive’’
and inserting ‘‘the State that receives’’; and
(C) in paragraph (4) by striking ‘‘entitles’’
and inserting ‘‘entitled’’.
SEC. 3112. REPORT BY THE SECRETARY.
Section 658L (42 U.S.C. 9858j) is amended—
(1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
(2) by striking ‘‘annually’’ and inserting ‘‘bien-
nially’’; and
(3) by striking ‘‘Education and Labor’’ and in-
serting ‘‘Economic and Educational Opportunities’’.
SEC. 3113. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1)
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(i) by striking ‘‘POSSESSIONS’’ and in-
serting ‘‘POSSESSIONS’’;
(ii) 
by 
inserting 
‘‘and’’ 
after
‘‘States,’’; and
(iii) by striking ‘‘, and the Trust Ter-
ritory of the Pacific Islands’’; and
(B) in paragraph (2), by striking ‘‘3 per-
cent’’ and inserting ‘‘1 percent’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and
inserting ‘‘out’’; and
(B) by adding at the end thereof the fol-
lowing new paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FA-
CILITIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An
Indian tribe or tribal organization may submit
to the Secretary a request to use amounts pro-
vided under this subsection for construction or
renovation purposes.
‘‘(B) DETERMINATION.—With respect to a
request submitted under subparagraph (A), and
except as provided in subparagraph (C), upon a
determination by the Secretary that adequate
facilities are not otherwise available to an In-
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dian tribe or tribal organization to enable such
tribe or organization to carry out child care
programs in accordance with this subchapter,
and that the lack of such facilities will inhibit
the operation of such programs in the future,
the Secretary may permit the tribe or organiza-
tion to use assistance provided under this sub-
section to make payments for the construction
or renovation of facilities that will be used to
carry out such programs.
‘‘(C) LIMITATION.—The Secretary may not
permit an Indian tribe or tribal organization to
use amounts provided under this subsection for
construction or renovation if such use will re-
sult in a decrease in the level of child care serv-
ices provided by the tribe or organization as
compared to the level of such services provided
by the tribe or organization in the fiscal year
preceding the year for which the determination
under subparagraph (A) is being made.
‘‘(D) UNIFORM
PROCEDURES.—The Sec-
retary shall develop and implement uniform
procedures for the solicitation and consideration
of requests under this paragraph.’’; and
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(3) in subsection (e), by adding at the end
thereof the following new paragraph:
‘‘(4) INDIAN
TRIBES
OR
TRIBAL
ORGANIZA-
TIONS.—Any portion of a grant or contract made to
an Indian tribe or tribal organization under sub-
section (c) that the Secretary determines is not
being used in a manner consistent with the provision
of this subchapter in the period for which the grant
or contract is made available, shall be allotted by the
Secretary to other tribes or organizations that have
submitted applications under subsection (c) in ac-
cordance with their respective needs.’’.
SEC. 3114. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by
inserting ‘‘or as a deposit for child care services if
such a deposit is required of other children being
cared for by the provider’’ after ‘‘child care serv-
ices’’; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 per-
cent’’ and inserting ‘‘85 percent’’;
(4) in paragraph (5)(B)—
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(A) by inserting ‘‘great grandchild, sibling
(if such provider lives in a separate residence),’’
after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘ap-
plicable’’.
(5) by striking paragraph (10);
(6) in paragraph (13)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and
(B) by striking ‘‘, and the Trust Territory
of the Pacific Islands’’;
(7) in paragraph (14)—
(A) by striking ‘‘The term’’ and inserting
the following:
‘‘(A) IN GENERAL.—The term’’; and
(B) by adding at the end thereof the fol-
lowing new subparagraph:
‘‘(B) OTHER ORGANIZATIONS.—Such term
includes a Native Hawaiian Organization, as
defined in section 4009(4) of the Augustus F.
Hawkins-Robert T. Stafford Elementary and
Secondary School Improvement Amendments of
1988 (20 U.S.C. 4909(4)) and a private non-
profit organization established for the purpose
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of serving youth who are Indians or Native Ha-
waiians.’’.
SEC. 3115. REPEALS.
(a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP
ASSISTANCE ACT OF 1985.—Title VI of the Human Serv-
ices Reauthorization Act of 1986 (42 U.S.C. 10901–
10905) is repealed.
(b) STATE
DEPENDENT
CARE
DEVELOPMENT
GRANTS ACT.—Subchapter E of chapter 8 of subtitle A
of title VI of the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9871–9877) is repealed.
(c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title
X of the Elementary and Secondary Education Act of
1965, as amended by Public Law 103–382 (108 Stat.
3809 et seq.), is amended—
(1) in section 10413(a) by striking paragraph
(4),
(2) in section 10963(b)(2) by striking subpara-
graph (G), and
(3) in section 10974(a)(6) by striking subpara-
graph (G).
(d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION
CENTERS.—Section 9205 of the Native Hawaiian Edu-
cation Act (Public Law 103–382; 108 Stat. 3794) is re-
pealed.
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(e) CERTAIN CHILD CARE PROGRAMS UNDER THE
SOCIAL SECURITY ACT.—
(1) AFDC AND
TRANSITIONAL
CHILD
CARE
PROGRAMS.—Section 402 of the Social Security Act
(42 U.S.C. 602) is amended by striking subsection
(g).
(2) AT-RISK CHILD CARE PROGRAM.—
(A) AUTHORIZATION.—Section 402 of the
Social Security Act (42 U.S.C. 602) is amended
by striking subsection (i).
(B) FUNDING
PROVISIONS.—Section 403
of the Social Security Act (42 U.S.C. 603) is
amended by striking subsection (n).
SEC. 3116. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this subtitle and the amendments made by this sub-
title shall take effect on October 1, 1996.
(b) EXCEPTION.—The amendment made by section
3303(a) shall take effect on the date of enactment of this
Act.
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Subtitle B—Child Nutrition
Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH
ACT
SEC. 3201. STATE DISBURSEMENT TO SCHOOLS.
(a) IN GENERAL.—Section 8 of the National School
Lunch Act (42 U.S.C. 1757) is amended—
(1) in the third sentence, by striking ‘‘Nothing’’
and all that follows through ‘‘educational agency to’’
and inserting ‘‘The State educational agency may’’;
(2) by striking the fourth and fifth sentences;
(3) by redesignating the first through sixth sen-
tences, as amended by paragraph (1), as subsections
(a) through (f), respectively;
(4) in subsection (b), as redesignated by para-
graph (3), by striking ‘‘the preceding sentence’’ and
inserting ‘‘subsection (a)’’; and
(5) in subsection (d), as redesignated by para-
graph (3), by striking ‘‘Such food costs’’ and insert-
ing ‘‘Use of funds paid to States’’.
(b) DEFINITION OF CHILD.—Section 12(d) of the Act
(42 U.S.C. 1760(d)) is amended by adding at the end the
following:
‘‘(9) ‘child’ includes an individual, regardless of
age, who—
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‘‘(A) is determined by a State educational
agency, in accordance with regulations pre-
scribed by the Secretary, to have 1 or more
mental or physical disabilities; and
‘‘(B) is attending any institution, as de-
fined in section 17(a), or any nonresidential
public or nonprofit private school of high school
grade or under, for the purpose of participating
in a school program established for individuals
with mental or physical disabilities.
No institution that is not otherwise eligible to par-
ticipate in the program under section 17 shall be
considered eligible because of this paragraph.’’.
SEC. 3202. NUTRITIONAL AND OTHER PROGRAM REQUIRE-
MENTS.
(a) NUTRITIONAL STANDARDS.—Section 9(a) of the
National School Lunch Act (42 U.S.C. 1758(a)) is amend-
ed—
(1) in paragraph (2)—
(A) by striking ‘‘(2)(A) Lunches’’ and in-
serting ‘‘(2) Lunches’’;
(B) by striking subparagraph (B); and
(C) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;
(2) by striking paragraph (3); and
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(3) by redesignating paragraph (4) as para-
graph (3).
(b) ELIGIBILITY GUIDELINES.—Section 9(b) of the
Act is amended—
(1) in paragraph (2)—
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respec-
tively;
(2) in paragraph (5), by striking the third sen-
tence; and
(3) in paragraph (6), by striking ‘‘paragraph
(2)(C)’’ and inserting ‘‘paragraph (2)(B)’’.
(c) UTILIZATION
OF
AGRICULTURAL
COMMOD-
ITIES.—Section 9(c) of the Act is amended by striking the
second, fourth, and sixth sentences.
(d) CONFORMING AMENDMENT.—The last sentence
of section 9(d)(1) of the Act is amended by striking ‘‘sub-
section (b)(2)(C)’’ and inserting ‘‘subsection (b)(2)(B)’’.
(e) NUTRITIONAL INFORMATION.—Section 9(f) of the
Act is amended—
(1) by striking paragraph (1);
(2) by striking ‘‘(2)’’;
(3) by redesignating subparagraphs (A) through
(D) as paragraphs (1) through (4), respectively;
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(4) by striking paragraph (1), as redesignated
by paragraph (3), and inserting the following:
‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as
provided in paragraph (2), not later than the first
day of the 1996–1997 school year, schools that are
participating in the school lunch or school breakfast
program shall serve lunches and breakfasts under
the program that—
‘‘(A) are consistent with the goals of the
most recent Dietary Guidelines for Americans
published under section 301 of the National
Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341); and
‘‘(B) provide, on the average over each
week, at least—
‘‘(i) with respect to school lunches, 1⁄3
of the daily recommended dietary allow-
ance established by the Food and Nutrition
Board of the National Research Council of
the National Academy of Sciences; and
‘‘(ii) with respect to school breakfasts,
1⁄4 of the daily recommended dietary allow-
ance established by the Food and Nutrition
Board of the National Research Council of
the National Academy of Sciences.’’;
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(5) in paragraph (3), as redesignated by para-
graph (3)—
(A) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A), as so redesig-
nated, by redesignating subclauses (I) and (II)
as clauses (i) and (ii), respectively; and
(6) in paragraph (4), as redesignated by para-
graph (3)—
(A) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;
(B) in subparagraph (A) (as redesignated
by subparagraph (A)), by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), re-
spectively; and
(C) in subparagraph (A)(ii) (as redesig-
nated by subparagraph (B)), by striking ‘‘sub-
paragraph (C)’’ and inserting ‘‘paragraph (3)’’.
(f) USE OF RESOURCES.—Section 9 of the Act is
amended by striking subsection (h).
SEC. 3203. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42
U.S.C. 1758(b)(2)), as amended by section 3202(b)(1), is
further amended by adding at the end the following:
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‘‘(C) FREE AND REDUCED PRICE POLICY
STATEMENT.—After the initial submission, a
school shall not be required to submit a free
and reduced price policy statement to a State
educational agency under this Act unless there
is a substantive change in the free and reduced
price policy of the school. A routine change in
the policy of a school, such as an annual adjust-
ment of the income eligibility guidelines for free
and reduced price meals, shall not be sufficient
cause for requiring the school to submit a policy
statement.’’.
SEC. 3204. SPECIAL ASSISTANCE.
(a) EXTENSION
OF
PAYMENT
PERIOD.—Section
11(a)(1)(D)(i) of the National School Lunch Act (42
U.S.C. 1759a(a)(1)(D)(i)) is amended by striking ‘‘, on
the date of enactment of this subparagraph,’’.
(b) APPLICABILITY OF OTHER PROVISIONS.—Section
11 of the Act is amended—
(1) by striking subsection (d);
(2) in subsection (e)(2)—
(A) by striking ‘‘The’’ and inserting ‘‘On
request of the Secretary, the’’; and
(B) by striking ‘‘each month’’; and
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(3) by redesignating subsections (e) and (f), as
so amended, as subsections (d) and (e), respectively.
SEC. 3205. MISCELLANEOUS PROVISIONS AND DEFINI-
TIONS.
(a) ACCOUNTS AND RECORDS.—Section 12(a) of the
National School Lunch Act (42 U.S.C. 1760(a)) is amend-
ed by striking ‘‘at all times be available’’ and inserting
‘‘be available at any reasonable time’’.
(b) RESTRICTION
ON
REQUIREMENTS.—Section
12(c) of the Act is amended by striking ‘‘neither the Sec-
retary nor the State shall’’ and inserting ‘‘the Secretary
shall not’’.
(c) DEFINITIONS.—Section 12(d) of the Act, as
amended by section 3201(b), is further amended—
(1) in paragraph (1), by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the
Commonwealth of the Northern Mariana Islands’’;
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and
(5) through (9) as paragraphs (6), (7), (3), (4), (2),
(5), and (1), respectively, and rearranging the para-
graphs so as to appear in numerical order.
(d) ADJUSTMENTS
TO NATIONAL AVERAGE PAY-
MENT RATES.—Section 12(f) of the Act is amended by
striking ‘‘the Trust Territory of the Pacific Islands,’’.
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(e) EXPEDITED RULEMAKING.—Section 12(k) of the
Act is amended—
(1) by striking paragraphs (1), (2), and (5);
and
(2) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
(f) WAIVER.—Section 12(l) of the Act is amended—
(1) in paragraph (2)(A)—
(A) in clause (iii), by adding ‘‘and’’ at the
end;
(B) in clause (iv), by striking the semi-
colon at the end and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)—
(A) by striking ‘‘(A)’’; and
(B) by striking subparagraphs (B) through
(D);
(3) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘of any requirement relating’’
and inserting ‘‘that increases Federal costs or
that relates’’;
(B) by striking subparagraph (D);
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(C) by redesignating subparagraphs (E)
through (N) as subparagraphs (D) through
(M), respectively; and
(D) in subparagraph (L), as redesignated
by subparagraph (C), by striking ‘‘and’’ at the
end and inserting ‘‘or’’; and
(4) in paragraph (6)—
(A) by striking ‘‘(A)(i)’’ and all that fol-
lows through ‘‘(B)’’; and
(B) by redesignating clauses (i) through
(iv) as subparagraphs (A) through (D), respec-
tively.
(g) FOOD AND NUTRITION PROJECTS.—Section 12
of the Act is amended by striking subsection (m).
SEC. 3206. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) ESTABLISHMENT OF PROGRAM.—Section 13(a)
of the National School Lunch Act (42 U.S.C. 1761(a))
is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘initi-
ate, maintain, and expand’’ and inserting ‘‘initi-
ate and maintain’’; and
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(B) in subparagraph (E) of the second
sentence, by striking ‘‘the Trust Territory of
the Pacific Islands,’’; and
(2) in paragraph (7)(A), by striking ‘‘Except as
provided in subparagraph (C), private’’ and inserting
‘‘Private’’.
(b) SERVICE INSTITUTIONS.—Section 13(b) of the
Act is amended by striking ‘‘(b)(1)’’ and all that follows
through the end of paragraph (1) and inserting the follow-
ing:
‘‘(b) SERVICE INSTITUTIONS.—
‘‘(1) PAYMENTS.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, payments to service
institutions shall equal the full cost of food
service operations (which cost shall include the
costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
‘‘(B) MAXIMUM
AMOUNTS.—Subject to
subparagraph (C), payments to any institution
under subparagraph (A) shall not exceed—
‘‘(i) $1.82 for each lunch and supper
served;
‘‘(ii) $1.13 for each breakfast served;
and
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‘‘(iii) 46 cents for each meal supple-
ment served.
‘‘(C) ADJUSTMENTS.—Amounts specified
in subparagraph (B) shall be adjusted on Janu-
ary 1, 1997, and each January 1 thereafter, to
the nearest lower cent increment in accordance
with the changes for the 12-month period end-
ing the preceding November 30 in the series for
food away from home of the Consumer Price
Index for All Urban Consumers published by
the Bureau of Labor Statistics of the Depart-
ment of Labor. Each adjustment shall be based
on the unrounded adjustment for the prior 12-
month period.’’.
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—
Section 13(b)(2) of the Act is amended—
(1) in the first sentence, by striking ‘‘four
meals’’ and inserting ‘‘3 meals, or 2 meals and 1
supplement,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the Act
is amended—
(1) by striking subparagraph (A);
(2) in subparagraph (B)—
(A) in the first sentence—
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(i) by striking ‘‘, and such higher edu-
cation institutions,’’; and
(ii) by striking ‘‘without application’’
and inserting ‘‘upon showing residence in
areas in which poor economic conditions
exist or on the basis of income eligibility
statements for children enrolled in the pro-
gram’’; and
(B) by adding at the end the following:
‘‘The higher education institutions referred to
in the preceding sentence shall be eligible to
participate in the program under this para-
graph without application.’’;
(3) in subparagraph (C)(ii), by striking ‘‘severe
need’’; and
(4) 
by 
redesignating 
subparagraphs 
(B)
through (E), as so amended, as subparagraphs (A)
through (D), respectively.
(e) 
ADVANCE
PROGRAM
PAYMENTS.—Section
13(e)(1) of the Act is amended—
(1) by striking ‘‘institution: Provided, That (A)
the’’ and inserting ‘‘institution. The’’;
(2) by inserting ‘‘(excluding a school)’’ after
‘‘any service institution’’; and
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(3) by striking ‘‘responsibilities, and (B) no’’
and inserting ‘‘responsibilities. No’’.
(f) FOOD REQUIREMENTS.—Section 13(f) of the Act
is amended—
(1) by redesignating the first through seventh
sentences as paragraphs (1) through (7), respec-
tively;
(2) by striking paragraph (3), as redesignated
by paragraph (1);
(3) in paragraph (4), as redesignated by para-
graph (1), by striking ‘‘the first sentence’’ and in-
serting ‘‘paragraph (1)’’;
(4) in paragraph (6), as redesignated by para-
graph (1), by striking ‘‘that bacteria levels’’ and all
that follows through the period at the end and in-
serting ‘‘conformance with standards set by local
health authorities.’’; and
(5) by redesignating paragraphs (4) through
(7), as redesignated by paragraph (1), as para-
graphs (3) through (6), respectively.
(g) PERMITTING OFFER VERSUS SERVE.—Section
13(f) of the Act, as amended by subsection (f), is further
amended by adding at the end the following:
‘‘(7) OFFER VERSUS SERVE.—A school food au-
thority participating as a service institution may
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permit a child attending a site on school premises
operated directly by the authority to refuse not more
than 1 item of a meal that the child does not intend
to consume. A refusal of an offered food item shall
not affect the amount of payments made under this
section to a school for the meal.’’.
(h) FOOD SERVICE MANAGEMENT COMPANIES.—
Section 13(l) of the Act is amended—
(1) by striking paragraph (4);
(2) in paragraph (5), by striking the first sen-
tence; and
(3) by redesignating paragraph (5), as so
amended, as paragraph (4).
(i) RECORDS.—The second sentence of section 13(m)
of the Act is amended by striking ‘‘at all times be avail-
able’’ and inserting ‘‘be available at any reasonable time’’.
(j) REMOVING MANDATORY NOTICE
TO INSTITU-
TIONS.—Section 13(n)(2) of the Act is amended by strik-
ing ‘‘, and its plans and schedule for informing service
institutions of the availability of the program’’.
(k) PLAN.—Section 13(n) of the Act is amended—
(1) in paragraph (2), by striking ‘‘, including
the State’s methods of assessing need’’;
(2) by striking paragraph (3);
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(3) in paragraph (4), by striking ‘‘and sched-
ule’’; and
(4) by redesignating paragraphs (4) through
(7), as so amended, as paragraphs (3) through (6),
respectively.
(l) MONITORING AND TRAINING.—Section 13(q) of
the Act is amended—
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ‘‘paragraphs
(1) and (2) of this subsection’’ and inserting ‘‘para-
graph (1)’’; and
(3) by redesignating paragraph (3), as so
amended, as paragraph (2).
(m) EXPIRED PROGRAM.—Section 13 of the Act is
amended—
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r), as
so amended, as subsections (p) and (q), respectively.
(n) EFFECTIVE DATE.—The amendments made by
subsection (b) shall become effective on January 1, 1997.
SEC. 3207. COMMODITY DISTRIBUTION.
(a) CEREAL AND SHORTENING IN COMMODITY DO-
NATIONS.—Section 14(b) of the National School Lunch
Act (42 U.S.C. 1762a(b)) is amended—
(1) by striking paragraph (1); and
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(2) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(b) IMPACT
STUDY
AND
PURCHASING
PROCE-
DURES.—Section 14(d) of the Act is amended by striking
the second and third sentences.
(c) CASH
COMPENSATION
FOR
PILOT
PROJECT
SCHOOLS.—Section 14(g) of the Act is amended by strik-
ing paragraph (3).
(d) STATE
ADVISORY
COUNCIL.—Section 14 is
amended—
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g), as
so amended, as subsections (e) and (f), respectively.
SEC. 3208. CHILD CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of
the National School Lunch Act (42 U.S.C. 1766) is
amended—
(1) in the section heading, by striking ‘‘AND
ADULT’’; and
(2) in the first sentence of subsection (a), by
striking ‘‘initiate, maintain, and expand’’ and insert-
ing ‘‘initiate and maintain’’.
(b) PAYMENTS
TO SPONSOR EMPLOYEES.—Para-
graph (2) of the last sentence of section 17(a) of the Act
(42 U.S.C. 1766(a)) is amended—
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(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day
care home sponsoring organization that employs
more than 1 employee, the organization does
not base payments to an employee of the orga-
nization on the number of family or group day
care homes recruited.’’.
(c) TECHNICAL ASSISTANCE.—The last sentence of
section 17(d)(1) of the Act is amended by striking ‘‘, and
shall provide technical assistance’’ and all that follows
through ‘‘its application’’.
(d) REIMBURSEMENT
OF CHILD CARE INSTITU-
TIONS.—Section 17(f)(2)(B) of the Act (42 U.S.C.
1766(f)(2)(B)) is amended by striking ‘‘two meals and two
supplements or three meals and one supplement’’ and in-
serting ‘‘two meals and one supplement’’.
(e) IMPROVED TARGETING OF DAY CARE HOME RE-
IMBURSEMENTS.—
(1) RESTRUCTURED
DAY
CARE
HOME
REIM-
BURSEMENTS.—Section 17(f)(3) of the Act is
amended by striking ‘‘(3)(A) Institutions’’ and all
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that follows through the end of subparagraph (A)
and inserting the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP
DAY CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
‘‘(i) IN
GENERAL.—An institution
that participates in the program under this
section as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the
organization, reimbursement factors in ac-
cordance with this subparagraph for the
cost of obtaining and preparing food and
prescribed labor costs involved in providing
meals under this section.
‘‘(ii) TIER I FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) DEFINITION.—In this para-
graph, the term ‘tier I family or group
day care home’ means—
‘‘(aa) a family or group day
care home that is located in a ge-
ographic area, as defined by the
Secretary based on census data,
in which at least 50 percent of
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the children residing in the area
are members of households whose
incomes meet the income eligi-
bility guidelines for free or re-
duced price meals under section
9;
‘‘(bb) a family or group day
care home that is located in an
area served by a school enrolling
elementary students in which at
least 50 percent of the total num-
ber of children enrolled are cer-
tified eligible to receive free or
reduced price school meals under
this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.); or
‘‘(cc) a family or group day
care home that is operated by a
provider whose household meets
the income eligibility guidelines
for free or reduced price meals
under section 9 and whose in-
come is verified by the sponsor-
ing organization of the home
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under regulations established by
the Secretary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier
I family or group day care home shall
be provided reimbursement factors
under this clause without a require-
ment for documentation of the costs
described in clause (i), except that re-
imbursement shall not be provided
under this subclause for meals or sup-
plements served to the children of a
person acting as a family or group
day care home provider unless the
children meet the income eligibility
guidelines for free or reduced price
meals under section 9.
‘‘(III) FACTORS.—Except as pro-
vided in subclause (IV), the reim-
bursement factors applied to a home
referred to in subclause (II) shall be
the factors in effect on July 1, 1996.
‘‘(IV) ADJUSTMENTS.—The re-
imbursement factors under this sub-
paragraph shall be adjusted on July
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1, 1997, and each July 1 thereafter,
to reflect changes in the Consumer
Price Index for food at home for the
most recent 12-month period for
which the data are available. The re-
imbursement factors under this sub-
paragraph shall be rounded to the
nearest lower cent increment and
based on the unrounded adjustment in
effect on June 30 of the preceding
school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a
family or group day care home
that does not meet the criteria
set forth in clause (ii)(I), the re-
imbursement factors shall be 90
cents for lunches and suppers, 25
cents for breakfasts, and 10
cents for supplements.
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‘‘(bb) ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
after, to reflect changes in the
Consumer Price Index for food at
home for the most recent 12-
month period for which the data
are available. The reimbursement
factors under this item shall be
rounded down to the nearest
lower cent increment and based
on the unrounded adjustment for
the preceding 12-month period.
‘‘(cc) REIMBURSEMENT.—A
family or group day care home
shall be provided reimbursement
factors under this subclause with-
out a requirement for docu-
mentation of the costs described
in clause (i), except that reim-
bursement shall not be provided
under this subclause for meals or
supplements served to the chil-
dren of a person acting as a fam-
ily or group day care home pro-
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vider unless the children meet the
income eligibility guidelines for
free or reduced price meals under
section 9.
‘‘(II) OTHER FACTORS.—A fam-
ily or group day care home that does
not meet the criteria set forth in
clause (ii)(I) may elect to be provided
reimbursement factors determined in
accordance with the following require-
ments:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED
PRICE
MEALS.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced
price meals under section 9, the
family or group day care home
shall be provided reimbursement
factors set by the Secretary in
accordance with clause (ii)(III).
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‘‘(bb) 
INELIGIBLE
CHIL-
DREN.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes do not meet the income
eligibility guidelines, the family
or group day care home shall be
provided reimbursement factors
in accordance with subclause (I).
‘‘(III) INFORMATION
AND
DE-
TERMINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
scribed in subclause (II), the
family or group day care home
sponsoring organization serving
the home shall collect the nec-
essary income information, as de-
termined by the Secretary, from
any parent or other caretaker to
make the determinations speci-
fied in subclause (II) and shall
make the determinations in ac-
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cordance with rules prescribed by
the Secretary.
‘‘(bb) CATEGORICAL
ELIGI-
BILITY.—In making a determina-
tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
participating in or subsidized
under, or a child with a parent
participating in or subsidized
under, a federally or State sup-
ported child care or other benefit
program with an income eligi-
bility limit that does not exceed
the eligibility standard for free or
reduced price meals under section
9 to be a child who is a member
of a household whose income
meets 
the 
income 
eligibility
guidelines under section 9.
‘‘(cc) FACTORS
FOR
CHIL-
DREN ONLY.—A family or group
day care home may elect to re-
ceive the reimbursement factors
prescribed under clause (ii)(III)
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solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not
to have income statements col-
lected from parents or other care-
takers.
‘‘(IV) SIMPLIFIED MEAL COUNT-
ING AND REPORTING PROCEDURES.—
The Secretary shall prescribe sim-
plified meal counting and reporting
procedures for use by a family or
group day care home that elects to
claim the factors under subclause (II)
and by a family or group day care
home sponsoring organization that
sponsors the home. The procedures
the Secretary prescribes may include
1 or more of the following:
‘‘(aa) Setting an annual per-
centage for each home of the
number of meals served that are
to be reimbursed in accordance
with the reimbursement factors
prescribed under clause (ii)(III)
and an annual percentage of the
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number of meals served that are
to be reimbursed in accordance
with the reimbursement factors
prescribed under subclause (I),
based on the family income of
children enrolled in the home in a
specified month or other period.
‘‘(bb) Placing a home into 1
of 2 or more reimbursement cat-
egories annually based on the
percentage of children in the
home whose households have in-
comes that meet the income eligi-
bility guidelines under section 9,
with each such reimbursement
category carrying a set of reim-
bursement factors such as the
factors prescribed under clause
(ii)(III) or subclause (I) or fac-
tors established within the range
of factors prescribed under clause
(ii)(III) and subclause (I).
‘‘(cc) Such other simplified
procedures as the Secretary may
prescribe.
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‘‘(V) 
MINIMUM
VERIFICATION
REQUIREMENTS.—The Secretary may
establish any necessary minimum ver-
ification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSIST-
ANCE TO FAMILY OR GROUP DAY CARE HOMES.—
Section 17(f)(3) of the Act is amended by adding at
the end the following:
‘‘(D) GRANTS TO STATES TO PROVIDE AS-
SISTANCE
TO
FAMILY
OR
GROUP
DAY
CARE
HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) 
RESERVATION.—From
amounts made available to carry out
this section, the Secretary shall re-
serve $5,000,000 of the amount made
available for fiscal year 1997.
‘‘(II) PURPOSE.—The Secretary
shall use the funds made available
under subclause (I) to provide grants
to States for the purpose of provid-
ing—
‘‘(aa) assistance, including
grants, to family and day care
home sponsoring organizations
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and other appropriate organiza-
tions, in securing and providing
training, materials, automated
data processing assistance, and
other assistance for the staff of
the sponsoring organizations; and
‘‘(bb) training and other as-
sistance to family and group day
care homes in the implementation
of the amendment to subpara-
graph 
(A) 
made 
by 
section
3208(e)(1) of the Personal Re-
sponsibility and Work Oppor-
tunity Act of 1996.
‘‘(ii) 
ALLOCATION.—The 
Secretary
shall allocate from the funds reserved
under clause (i)(I)—
‘‘(I) $30,000 in base funding to
each State; and
‘‘(II) 
any 
remaining 
amount
among the States, based on the num-
ber of family day care homes partici-
pating in the program in a State dur-
ing fiscal year 1995 as a percentage
of the number of all family day care
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homes participating in the program
during fiscal year 1995.
‘‘(iii) RETENTION OF FUNDS.—Of the
amount of funds made available to a State
for fiscal year 1997 under clause (i), the
State may retain not to exceed 30 percent
of the amount to carry out this subpara-
graph.
‘‘(iv) ADDITIONAL
PAYMENTS.—Any
payments received under this subpara-
graph shall be in addition to payments
that a State receives under subparagraph
(A).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of
the Act, as amended by paragraph (2), is further
amended by adding at the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR
GROUP DAY CARE HOME SPONSORING ORGANI-
ZATIONS.—
‘‘(i) CENSUS
DATA.—The Secretary
shall provide to each State agency admin-
istering a child care food program under
this section data from the most recent de-
cennial census survey or other appropriate
census survey for which the data are avail-
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able showing which areas in the State meet
the 
requirements 
of 
subparagraph
(A)(ii)(I)(aa). The State agency shall pro-
vide the data to family or group day care
home sponsoring organizations located in
the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) 
IN
GENERAL.—A 
State
agency administering the school lunch
program under this Act or the school
breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) shall provide to ap-
proved family or group day care home
sponsoring organizations a list of
schools serving elementary school chil-
dren in the State in which not less
than 1⁄2 of the children enrolled are
certified to receive free or reduced
price meals. The State agency shall
collect the data necessary to create
the list annually and provide the list
on a timely basis to any approved
family or group day care home spon-
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soring organization that requests the
list.
‘‘(II) USE OF DATA FROM PRE-
CEDING SCHOOL YEAR.—In determin-
ing for a fiscal year or other annual
period whether a home qualifies as a
tier I family or group day care home
under subparagraph (A)(ii)(I), the
State agency administering the pro-
gram under this section, and a family
or group day care home sponsoring
organization, shall use the most cur-
rent available data at the time of the
determination.
‘‘(iii) 
DURATION
OF
DETERMINA-
TION.—For purposes of this section, a de-
termination that a family or group day
care home is located in an area that quali-
fies the home as a tier I family or group
day care home (as the term is defined in
subparagraph (A)(ii)(I)), shall be in effect
for 3 years (unless the determination is
made on the basis of census data, in which
case the determination shall remain in ef-
fect until more recent census data are
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available) unless the State agency deter-
mines that the area in which the home is
located no longer qualifies the home as a
tier I family or group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c)
of the Act is amended by inserting ‘‘except as pro-
vided in subsection (f)(3),’’ after ‘‘For purposes of
this section,’’ each place it appears in paragraphs
(1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the Act is
amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the
third and fourth sentences; and
(B) in subparagraph (C)—
(i) by striking ‘‘(i)’’ and
(ii) by striking clause (ii); and
(2) in paragraph (4), by striking ‘‘shall’’ and
inserting ‘‘may’’ in the first sentence.
(g) 
NUTRITIONAL
REQUIREMENTS.—Section
17(g)(1) of the Act is amended—
(1) in subparagraph (A), by striking the second
sentence; and
(2) in subparagraph (B), by striking the second
sentence.
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(h) ELIMINATION OF STATE PAPERWORK AND OUT-
REACH BURDEN.—Section 17 of the Act is amended by
striking subsection (k) and inserting the following:
‘‘(k) TRAINING
AND TECHNICAL ASSISTANCE.—A
State participating in the program established under this
section shall provide sufficient training, technical assist-
ance, and monitoring to facilitate effective operation of the
program. The Secretary shall assist the State in develop-
ing plans to fulfill the requirements of this subsection.’’.
(i) RECORDS.—The second sentence of section 17(m)
of the Act is amended by striking ‘‘at all times’’ and in-
serting ‘‘at any reasonable time’’.
(j) MODIFICATION
OF ADULT CARE FOOD PRO-
GRAM.—Section 17(o) of the Act is amended—
(1) in the first sentence of paragraph (1)—
(A) by striking ‘‘adult day care centers’’
and inserting ‘‘day care centers for chronically
impaired disabled persons’’; and
(B) by striking ‘‘to persons 60 years of age
or older or’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘adult day care center’’
and inserting ‘‘day care center for chron-
ically impaired disabled persons’’; and
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(ii) in clause (i)—
(I) by striking ‘‘adult’’;
(II) by striking ‘‘adults’’ and in-
serting ‘‘persons’’; and
(III) by striking ‘‘or persons 60
years of age or older’’; and
(B) in subparagraph (B), by striking
‘‘adult day care services’’ and inserting ‘‘day
care services for chronically impaired disabled
persons’’.
(k) UNNEEDED PROVISION.—Section 17 of the Act
is amended by striking subsection (q).
(l) CONFORMING AMENDMENTS.—
(1) Section 17B(f) of the Act (42 U.S.C.
1766b(f)) is amended—
(A) in the subsection heading, by striking
‘‘AND ADULT’’; and
(B) in paragraph (1), by striking ‘‘and
adult’’.
(2) Section 18(e)(3)(B) of the Act (42 U.S.C.
1769(e)(3)(B)) is amended by striking ‘‘and adult’’.
(3) Section 25(b)(1)(C) of the Act (42 U.S.C.
1769f(b)(1)(C)) is amended by striking ‘‘and adult’’.
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(4) Section 3(1) of the Healthy Meals for
Healthy Americans Act of 1994 (Public Law 103–
448) is amended by striking ‘‘and adult’’.
(m) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall become effective on the date of enactment of
this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS.—The 
amendments 
made 
by
paragraphs (1) and (4) of subsection (e) shall be-
come effective on July 1, 1997.
(3) REGULATIONS.—
(A) INTERIM
REGULATIONS.—Not later
than January 1, 1997, the Secretary shall issue
interim regulations to implement—
(i) the amendments made by para-
graphs (1), (3), and (4) of subsection (e);
and
(ii) section 17(f)(3)(C) of the National
School 
Lunch 
Act 
(42 
U.S.C.
1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than
July 1, 1997, the Secretary shall issue final
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regulations to implement the provisions of law
referred to in subparagraph (A).
(n) STUDY OF IMPACT OF AMENDMENTS ON PRO-
GRAM PARTICIPATION AND FAMILY DAY CARE LICENS-
ING.—
(1) IN
GENERAL.—The Secretary of Agri-
culture, in conjunction with the Secretary of Health
and Human Services, shall study the impact of the
amendments made by this section on—
(A) the number of family day care homes
participating in the child care food program es-
tablished under section 17 of the National
School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsor-
ing organizations participating in the program;
(C) the number of day care homes that are
licensed, certified, registered, or approved by
each State in accordance with regulations is-
sued by the Secretary;
(D) the rate of growth of the numbers re-
ferred to in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of
meals served in family day care homes that—
(i) received reimbursement under the
program prior to the amendments made by
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this section but do not receive reimburse-
ment after the amendments made by this
section; or
(ii) received full reimbursement under
the program prior to the amendments
made by this section but do not receive full
reimbursement 
after 
the 
amendments
made by this section; and
(F) the proportion of low-income children
participating in the program prior to the
amendments made by this section and the pro-
portion of low-income children participating in
the program after the amendments made by
this section.
(2) REQUIRED DATA.—Each State agency par-
ticipating in the child care food program under sec-
tion 17 of the National School Lunch Act (42
U.S.C. 1766) shall submit to the Secretary data
on—
(A) the number of family day care homes
participating in the program on June 30, 1997,
and June 30, 1998;
(B) the number of family day care homes
licensed, certified, registered, or approved for
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service on June 30, 1997, and June 30, 1998;
and
(C) such other data as the Secretary may
require to carry out this subsection.
(3) SUBMISSION OF REPORT.—Not later than 2
years after the effective date of this section, the Sec-
retary shall submit the study required under this
subsection to the Committee on Economic and Edu-
cational Opportunities of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 3209. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the
National School Lunch Act (42 U.S.C. 1769(d)) is amend-
ed—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Sec-
tion 18(e) of the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting
‘‘may’’; and
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(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each
of fiscal years 1997 and 1998.’’.
(c) ELIMINATING PROJECTS.—Section 18 of the Act
is amended—
(1) by striking subsections (a) and (g) through
(i); and
(2) by redesignating subsections (b) through
(f), as so amended, as subsections (a) through (e),
respectively.
(d) 
CONFORMING
AMENDMENT.—Section
17B(d)(1)(A) of the Act (42 U.S.C. 1766b(d)(1)(A)) is
amended by striking ‘‘18(c)’’ and inserting ‘‘18(b)’’.
SEC. 3210. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42
U.S.C. 1769a) is repealed.
SEC. 3211. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42
U.S.C. 1769d) is repealed.
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SEC. 3212. NUTRITION GUIDANCE FOR CHILD NUTRITION
PROGRAMS.
Section 24 of the National School Lunch Act (42
U.S.C. 1769e) is repealed.
SEC. 3213. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42
U.S.C. 1769g) is repealed.
CHAPTER 2—CHILD NUTRITION ACT OF
1966
SEC. 3221. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966
(42 U.S.C. 1772(a)(3)) is amended by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the Com-
monwealth of the Northern Mariana Islands’’.
SEC. 3222. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966
(42 U.S.C. 1773(b)(1)) is amended by adding at the end
the following:
‘‘(E) FREE AND REDUCED PRICE POLICY
STATEMENT.—After the initial submission, a
school shall not be required to submit a free
and reduced price policy statement to a State
educational agency under this Act unless there
is a substantive change in the free and reduced
price policy of the school. A routine change in
the policy of a school, such as an annual adjust-
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ment of the income eligibility guidelines for free
and reduced price meals, shall not be sufficient
cause for requiring the school to submit a policy
statement.’’.
SEC. 3223. SCHOOL BREAKFAST PROGRAM AUTHORIZA-
TION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD
PREPARATION.—Section 4(e)(1) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(e)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘(A)’’; and
(2) by striking subparagraph (B).
(b) EXPANSION OF PROGRAM; STARTUP AND EXPAN-
SION COSTS.—
(1) IN
GENERAL.—Section 4 of the Act is
amended by striking subsections (f) and (g).
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall become effective on October
1, 1996.
SEC. 3224. STATE ADMINISTRATIVE EXPENSES.
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION
ADMINISTRATION; STUDIES.—Section 7 of the Child Nu-
trition Act of 1966 (42 U.S.C. 1776) is amended—
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i)
as subsections (e), (f), and (g), respectively.
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(b) APPROVAL OF CHANGES.—Section 7(e) of the
Act, as so redesignated, is amended—
(1) by striking ‘‘each year an annual plan’’ and
inserting ‘‘the initial fiscal year a plan’’; and
(2) by adding at the end the following: ‘‘After
submitting the initial plan, a State shall only be re-
quired to submit to the Secretary for approval a
substantive change in the plan.’’.
SEC. 3225. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42
U.S.C. 1779(b)) is amended—
(1) in paragraph (1), by striking ‘‘(1)’’; and
(2) by striking paragraphs (2) through (4).
SEC. 3226. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42
U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec-
retary nor the State shall’’ and inserting ‘‘the Secretary
shall not’’.
SEC. 3227. MISCELLANEOUS PROVISIONS AND DEFINI-
TIONS.
Section 15 of the Child Nutrition Act of 1966 (42
U.S.C. 1784) is amended—
(1) in paragraph (1), by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the
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Commonwealth of the Northern Mariana Islands’’;
and
(2) in the first sentence of paragraph (3)—
(A) in subparagraph (A), by inserting
‘‘and’’ at the end; and
(B) by striking ‘‘, and (C)’’ and all that
follows through ‘‘Governor of Puerto Rico’’.
SEC. 3228. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1785(a)) is amended by
striking ‘‘at all times be available’’ and inserting ‘‘be avail-
able at any reasonable time’’.
SEC. 3229. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
FOR WOMEN, INFANTS, AND CHILDREN.
(a) DEFINITIONS.—Section 17(b) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(b)) is amended—
(1) in paragraph (15)(B)(iii), by inserting ‘‘of
not more than 365 days’’ after ‘‘accommodation’’;
and
(2) in paragraph (16)—
(A) in subparagraph (A), by adding ‘‘and’’
at the end; and
(B) in subparagraph (B), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (C).
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(b) SECRETARY’S PROMOTION
OF WIC.—Section
17(c) of the Act is amended by striking paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the
Act is amended by striking paragraph (4).
(d) NUTRITION EDUCATION AND DRUG ABUSE EDU-
CATION.—Section 17(e) of the Act is amended—
(1) in the first sentence of paragraph (1), by
striking ‘‘shall ensure’’ and all that follows through
‘‘is provided’’ and inserting ‘‘shall provide nutrition
education and may provide drug abuse education’’;
(2) in paragraph (2), by striking the third sen-
tence;
(3) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘shall’’;
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respec-
tively;
(D) in subparagraphs (A) and (B) (as re-
designated), by inserting ‘‘shall’’ before ‘‘pro-
vide’’ each place it appears;
(E) in subparagraph (A) (as redesignated),
by striking ‘‘and’’ at the end;
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(F) in subparagraph (B) (as redesignated),
by striking the period and inserting ‘‘; and’’;
and
(G) by adding at the end the following:
‘‘(C) may provide a local agency with materials
describing other programs for which participants in
the program may be eligible.’’;
(4) in paragraph (5), by striking ‘‘The State’’
and all that follows through ‘‘local agency shall’’ and
inserting ‘‘Each local agency shall’’; and
(5) by striking paragraph (6).
(e) STATE PLAN.—Section 17(f) of the Act is amend-
ed—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Sec-
retary, by a date specified by the Sec-
retary, a’’ and inserting ‘‘to the Secretary,
by a date specified by the Secretary, an
initial’’; and
(ii) by adding at the end the follow-
ing: ‘‘After submitting the initial plan, a
State shall only be required to submit to
the Secretary for approval a substantive
change in the plan.’’;
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(B) in subparagraph (C)—
(i) by striking clause (iii) and insert-
ing the following:
‘‘(iii) a plan to coordinate operations under the
program with other services or programs that may
benefit participants in, and applicants for, the pro-
gram;’’;
(ii) in clause (vi), by inserting after
‘‘in the State’’ the following: ‘‘(including a
plan to improve access to the program for
participants and prospective applicants
who are employed, or who reside in rural
areas)’’;
(iii) in clause (vii), by striking ‘‘to
provide program benefits’’ and all that fol-
lows through ‘‘emphasis on’’ and inserting
‘‘for’’;
(iv) by striking clauses (ix), (x), and
(xii);
(v) in clause (xiii), by striking ‘‘may
require’’ and inserting ‘‘may reasonably re-
quire’’; and
(vi) by redesignating clauses (xi) and
(xiii), as so amended, as clauses (ix) and
(x), respectively;
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(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as
subparagraph (D);
(2) by striking paragraphs (2), (6), (8), and
(22);
(3) in the second sentence of paragraph (5), by
striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’;
(4) in paragraph (9)(B), by striking the second
sentence;
(5) in the first sentence of paragraph (11), by
striking ‘‘, including standards that will ensure suffi-
cient State agency staff’’;
(6) in paragraph (12), by striking the third sen-
tence;
(7) in paragraph (14), by striking ‘‘shall’’ and
inserting ‘‘may’’;
(8) in paragraph (17), by striking ‘‘and to ac-
commodate’’ and all that follows through ‘‘facili-
ties’’;
(9) in paragraph (19), by striking ‘‘shall’’ and
inserting ‘‘may’’; and
(10) by redesignating paragraphs (3), (4), (5),
(7), (9) through (19), (20), (21), (23), and (24), as
so amended, as paragraphs (2), (3), (4), (5), (6)
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through (16), (17), (18), (19), and (20), respec-
tively.
(f) INFORMATION.—Section 17(g) of the Act is
amended—
(1) in paragraph (5), by striking ‘‘the report re-
quired under subsection (d)(4)’’ and inserting ‘‘re-
ports on program participant characteristics’’; and
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Act is
amended—
(A) in paragraph (4)(E), by striking ‘‘and,
on’’ and all that follows through ‘‘(d)(4)’’;
(B) in paragraph (8)—
(i) by striking subparagraphs (A),
(C), and (M);
(ii) in subparagraph (G)—
(I) in clause (i), by striking ‘‘(i)’’;
and
(II) 
by 
striking 
clauses 
(ii)
through (ix);
(iii) in subparagraph (I), by striking
‘‘Secretary—’’ and all that follows through
‘‘(v) may’’ and inserting ‘‘Secretary may’’;
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(iv) by redesignating subparagraphs
(B) and (D) through (L) as subparagraphs
(A) and (B) through (J), respectively;
(v) in subparagraph (A)(i), as so re-
designated, by striking ‘‘subparagraphs
(C), (D), and (E)(iii), in carrying out sub-
paragraph (A),’’ and inserting ‘‘subpara-
graphs (B) and (C)(iii),’’;
(vi) in subparagraph (B)(i), as so re-
designated, by striking ‘‘subparagraph
(B)’’ each place it appears and inserting
‘‘subparagraph (A)’’; and
(vii) in subparagraph (C)(iii), as so
redesignated, by striking ‘‘subparagraph
(B)’’ and inserting ‘‘subparagraph (A)’’;
and
(C) in paragraph (10)(B)—
(i) in clause (i), by striking the semi-
colon and inserting ‘‘; and’’;
(ii) in clause (ii), by striking ‘‘; and’’
and inserting a period; and
(iii) by striking clause (iii).
(2) APPLICATION.—The amendments made by
paragraph (1) shall not apply to a contract for the
procurement of infant formula under section
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17(h)(8) of the Act that is in effect on the effective
date of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL,
INFANT, AND FETAL NUTRITION.—Section 17(k)(3) of
the Act is amended by striking ‘‘Secretary shall designate’’
and inserting ‘‘Council shall elect’’.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEM-
ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS-
TEM.—Section 17 of the Act is amended by striking sub-
sections (n), (o), and (p).
(j) DISQUALIFICATION OF VENDORS WHO ARE DIS-
QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Sec-
tion 17 of the Act, as so amended, is further amended
by adding at the end the following:
‘‘(n) DISQUALIFICATION
OF VENDORS WHO ARE
DISQUALIFIED UNDER THE FOOD STAMP PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
under this section of an approved vendor that is dis-
qualified from accepting benefits under the food
stamp program established under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
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‘‘(A) shall be for the same period as the
disqualification from the program referred to in
paragraph (1);
‘‘(B) may begin at a later date than the
disqualification from the program referred to in
paragraph (1); and
‘‘(C) shall not be subject to judicial or ad-
ministrative review.’’.
SEC. 3230. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42
U.S.C. 1787) is repealed.
SEC. 3231. NUTRITION EDUCATION AND TRAINING.
(a) FINDINGS.—Section 19 of the Child Nutrition
Act of 1966 (42 U.S.C. 1788) is amended—
(1) in subsection (a), by striking ‘‘that—’’ and
all that follows through the period at the end and
inserting ‘‘that effective dissemination of scientif-
ically valid information to children participating or
eligible to participate in the school lunch and related
child nutrition programs should be encouraged.’’;
and
(2) in subsection (b), by striking ‘‘encourage’’
and all that follows through ‘‘establishing’’ and in-
serting ‘‘establish’’.
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(b) USE OF FUNDS.—Section 19(f) of the Act is
amended—
(1) in paragraph (1)—
(A) by striking subparagraph (B); and
(B) in subparagraph (A)—
(i) by striking ‘‘(A)’’;
(ii) by striking clauses (ix) through
(xix);
(iii) by redesignating clauses (i)
through (viii) and (xx) as subparagraphs
(A) through (H) and (I), respectively;
(iv) in subparagraph (I), as so redes-
ignated, by striking the period at the end
and inserting ‘‘; and’’; and
(v) by adding at the end the following:
‘‘(J) other appropriate related activities, as de-
termined by the State.’’;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as para-
graph (2).
(c) ACCOUNTS, RECORDS, AND REPORTS.—The sec-
ond sentence of section 19(g)(1) of the Act is amended
by striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’.
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(d) STATE COORDINATORS FOR NUTRITION; STATE
PLAN.—Section 19(h) of the Act is amended—
(1) in the second sentence of paragraph (1)—
(A) by striking ‘‘as provided in paragraph
(2) of this subsection’’; and
(B) by striking ‘‘as provided in paragraph
(3) of this subsection’’;
(2) in paragraph (2), by striking the second
and third sentences; and
(3) by striking paragraph (3).
(e) AUTHORIZATION OF APPROPRIATIONS.—Section
19(i) of the Act is amended—
(1) in the first sentence of paragraph (2)(A), by
striking ‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(3) by inserting after paragraph (2) the follow-
ing:
‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized
to be appropriated to carry out this section
$10,000,000 for each of fiscal years 1997
through 2002.
‘‘(B) GRANTS.—
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‘‘(i) IN
GENERAL.—Grants to each
State from the amounts made available
under subparagraph (A) shall be based on
a rate of 50 cents for each child enrolled
in schools or institutions within the State,
except that no State shall receive an
amount less than $75,000 per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If the
amount made available for any fiscal year
is insufficient to pay the amount to which
each State is entitled under clause (i), the
amount of each grant shall be ratably re-
duced.’’.
(f) ASSESSMENT.—Section 19 of the Act is amended
by striking subsection (j).
(g) EFFECTIVE DATE.—The amendments made by
subsection (e) shall become effective on October 1, 1996.
CHAPTER 3—MISCELLANEOUS
PROVISIONS
SEC. 3241. COORDINATION OF SCHOOL LUNCH, SCHOOL
BREAKFAST, AND SUMMER FOOD SERVICE
PROGRAMS.
(a) COORDINATION.—
(1) IN GENERAL.—The Secretary of Agriculture
shall develop proposed changes to the regulations
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under the school lunch program under the National
School Lunch Act, the summer food service program
under section 13 of that Act, and the school break-
fast program under section 4 of the Child Nutrition
Act of 1966, for the purpose of simplifying and co-
ordinating those programs into a comprehensive
meal program.
(2) CONSULTATION.—In developing proposed
changes to the regulations under paragraph (1), the
Secretary of Agriculture shall consult with local,
State, and regional administrators of the programs
described in such paragraph.
(b) REPORT.—Not later than November 1, 1997, the
Secretary of Agriculture shall submit to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Economic and Educational Opportunities of
the House of Representatives a report containing the pro-
posed changes developed under subsection (a).
Subtitle C—Related Provisions
SEC. 3301. REQUIREMENT THAT DATA RELATING TO THE
INCIDENCE OF POVERTY IN THE UNITED
STATES BE PUBLISHED AT LEAST EVERY 2
YEARS.
(a) IN GENERAL.—The Secretary shall, to the extent
feasible, produce and publish for each State, county, and
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local unit of general purpose government for which data
have been compiled in the then most recent census of pop-
ulation under section 141(a) of title 13, United States
Code, and for each school district, data relating to the in-
cidence of poverty. Such data may be produced by means
of sampling, estimation, or any other method that the Sec-
retary determines will produce current, comprehensive,
and reliable data.
(b) CONTENT; FREQUENCY.—Data under this sec-
tion—
(1) shall include—
(A) for each school district, the number of
children age 5 to 17, inclusive, in families below
the poverty level; and
(B) for each State and county referred to
in subsection (a), the number of individuals age
65 or older below the poverty level; and
(2) shall be published—
(A) for each State, county, and local unit
of general purpose government referred to in
subsection (a), in 1997 and at least every sec-
ond year thereafter; and
(B) for each school district, in 1999 and at
least every second year thereafter.
(c) AUTHORITY TO AGGREGATE.—
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(1) IN GENERAL.—If reliable data could not
otherwise be produced, the Secretary may, for pur-
poses of subsection (b)(1)(A), aggregate school dis-
tricts, but only to the extent necessary to achieve re-
liability.
(2) INFORMATION RELATING TO USE OF AU-
THORITY.—Any data produced under this subsection
shall be appropriately identified and shall be accom-
panied by a detailed explanation as to how and why
aggregation was used (including the measures taken
to minimize any such aggregation).
(d) REPORT TO BE SUBMITTED WHENEVER DATA
IS NOT TIMELY PUBLISHED.—If the Secretary is unable
to produce and publish the data required under this sec-
tion for any State, county, local unit of general purpose
government, or school district in any year specified in sub-
section (b)(2), a report shall be submitted by the Secretary
to the President of the Senate and the Speaker of the
House of Representatives, not later than 90 days before
the start of the following year, enumerating each govern-
ment or school district excluded and giving the reasons
for the exclusion.
(e) CRITERIA RELATING TO POVERTY.—In carrying
out this section, the Secretary shall use the same criteria
relating to poverty as were used in the then most recent
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census of population under section 141(a) of title 13,
United States Code (subject to such periodic adjustments
as may be necessary to compensate for inflation and other
similar factors).
(f) CONSULTATION.—The Secretary shall consult
with the Secretary of Education in carrying out the re-
quirements of this section relating to school districts.
(g) DEFINITION.—For the purpose of this section,
the term ‘‘Secretary’’ means the Secretary of Health and
Human Services.
(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$1,500,000 for each of fiscal years 1997 through 2000.
SEC. 3302. SENSE OF THE CONGRESS.
It is the sense of the Congress that this title, and
the amendments made by this title, should not result in
an increase in the number of children who are hungry,
homeless, poor, or medically uninsured.
SEC. 3303. LEGISLATIVE ACCOUNTABILITY.
In the event that this title, or the amendments made
by this title, results in an increase in the number of chil-
dren in the United States who are hungry, homeless, poor,
or medically uninsured by the end of the fiscal year 1997,
the Congress—
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(1) shall revisit the provisions of this title, or
the amendments made by this title, which caused
such increase; and
(2) shall, as soon as practicable thereafter, pass
legislation that stops the continuation of such in-
crease.
TITLE IV—COMMITTEE ON WAYS
AND MEANS
SEC. 4001. SHORT TITLE.
This title may be cited as the ‘‘Personal Responsibil-
ity and Work Opportunity Act of 1996’’.
SEC. 4002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 4001. Short title.
Sec. 4002. Table of contents.
Subtitle A—Block Grants for Temporary Assistance for Needy Families
Sec. 4101. Findings.
Sec. 4102. Reference to Social Security Act.
Sec. 4103. Block grants to States.
Sec. 4104. Services provided by charitable, religious, or private organizations.
Sec. 4105. Census data on grandparents as primary caregivers for their grand-
children.
Sec. 4106. Report on data processing.
Sec. 4107. Study on alternative outcomes measures.
Sec. 4108. Conforming amendments to the Social Security Act.
Sec. 4109. Conforming amendments to the Food Stamp Act of 1977 and relat-
ed provisions.
Sec. 4110. Conforming amendments to other laws.
Sec. 4111. Development of prototype of counterfeit-resistant social security
card required.
Sec. 4112. Disclosure of receipt of Federal funds.
Sec. 4113. Modifications to the job opportunities for certain low-income individ-
uals program.
Sec. 4114. Secretarial submission of legislative proposal for technical and con-
forming amendments.
Sec. 4115. Conforming amendments to medicaid program.
Sec. 4116. Effective date; transition rule.
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Subtitle B—Supplemental Security Income
Sec. 4200. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY RESTRICTIONS
Sec. 4201. Denial of SSI benefits for 10 years to individuals found to have
fraudulently misrepresented residence in order to obtain bene-
fits simultaneously in 2 or more States.
Sec. 4202. Denial of SSI benefits for fugitive felons and probation and parole
violators.
Sec. 4203. Treatment of prisoners.
Sec. 4204. Effective date of application for benefits.
CHAPTER 2—BENEFITS FOR DISABLED CHILDREN
Sec. 4211. Definition and eligibility rules.
Sec. 4212. Eligibility redeterminations and continuing disability reviews.
Sec. 4213. Additional accountability requirements.
Sec. 4214. Reduction in cash benefits payable to institutionalized individuals
whose medical costs are covered by private insurance.
Sec. 4215. Regulations.
CHAPTER 3—ADDITIONAL ENFORCEMENT PROVISIONS
Sec. 4221. Installment payment of large past-due supplemental security income
benefits.
Sec. 4222. Recovery of supplemental security income overpayments from social
security benefits.
Sec. 4223. Regulations.
CHAPTER 4—STATE SUPPLEMENTATION PROGRAMS
Sec. 4225. Repeal of maintenance of effort requirements applicable to optional
State programs for supplementation of SSI benefits.
CHAPTER 5—STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME
PROGRAM
Sec. 4231. Annual report on the supplemental security income program.
Sec. 4232. Study of disability determination process.
Sec. 4233. Study by General Accounting Office.
CHAPTER 6—NATIONAL COMMISSION ON THE FUTURE OF DISABILITY
Sec. 4241. Establishment.
Sec. 4242. Duties of the commission.
Sec. 4243. Membership.
Sec. 4244. Staff and support services.
Sec. 4245. Powers of commission.
Sec. 4246. Reports.
Sec. 4247. Termination.
Sec. 4248. Authorization of appropriations.
Subtitle C—Child Support
Sec. 4300. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
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Sec. 4301. State obligation to provide child support enforcement services.
Sec. 4302. Distribution of child support collections.
Sec. 4303. Privacy safeguards.
Sec. 4304. Rights to notification of hearings.
CHAPTER 2—LOCATE AND CASE TRACKING
Sec. 4311. State case registry.
Sec. 4312. Collection and disbursement of support payments.
Sec. 4313. State directory of new hires.
Sec. 4314. Amendments concerning income withholding.
Sec. 4315. Locator information from interstate networks.
Sec. 4316. Expansion of the Federal Parent Locator Service.
Sec. 4317. Collection and use of social security numbers for use in child sup-
port enforcement.
CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 4321. Adoption of uniform State laws.
Sec. 4322. Improvements to full faith and credit for child support orders.
Sec. 4323. Administrative enforcement in interstate cases.
Sec. 4324. Use of forms in interstate enforcement.
Sec. 4325. State laws providing expedited procedures.
CHAPTER 4—PATERNITY ESTABLISHMENT
Sec. 4331. State laws concerning paternity establishment.
Sec. 4332. Outreach for voluntary paternity establishment.
Sec. 4333. Cooperation by applicants for and recipients of part A assistance.
CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING
Sec. 4341. Performance-based incentives and penalties.
Sec. 4342. Federal and State reviews and audits.
Sec. 4343. Required reporting procedures.
Sec. 4344. Automated data processing requirements.
Sec. 4345. Technical assistance.
Sec. 4346. Reports and data collection by the Secretary.
Sec. 4347. Child support delinquency penalty.
CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 4351. Simplified process for review and adjustment of child support or-
ders.
Sec. 4352. Furnishing consumer reports for certain purposes relating to child
support.
Sec. 4353. Nonliability for financial institutions providing financial records to
State child support enforcement agencies in child support
cases.
CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS
Sec. 4361. Internal Revenue Service collection of arrearages.
Sec. 4362. Authority to collect support from Federal employees.
Sec. 4363. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 4364. Voiding of fraudulent transfers.
Sec. 4365. Work requirement for persons owing past-due child support.
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Sec. 4366. Definition of support order.
Sec. 4367. Reporting arrearages to credit bureaus.
Sec. 4368. Liens.
Sec. 4369. State law authorizing suspension of licenses.
Sec. 4370. Denial of passports for nonpayment of child support.
Sec. 4371. International support enforcement.
Sec. 4372. Financial institution data matches.
Sec. 4373. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 4374. Nondischargeability in bankruptcy of certain debts for the support
of a child.
CHAPTER 8—MEDICAL SUPPORT
Sec. 4376. Correction to ERISA definition of medical child support order.
Sec. 4377. Enforcement of orders for health care coverage.
CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-
RESIDENTIAL PARENTS
Sec. 4381. Grants to States for access and visitation programs.
CHAPTER 10—EFFECTIVE DATES AND CONFORMING AMENDMENTS
Sec. 4391. Effective dates and conforming amendments.
Subtitle D—Restricting Welfare and Public Benefits for Aliens
Sec. 4400. Statements of national policy concerning welfare and immigration.
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 4401. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 4402. Limited eligibility of qualified aliens for certain Federal programs.
Sec. 4403. Five-year limited eligibility of qualified aliens for Federal means-
tested public benefit.
Sec. 4404. Notification and information reporting.
CHAPTER 2—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS
PROGRAMS
Sec. 4411. Aliens who are not qualified aliens or nonimmigrants ineligible for
State and local public benefits.
Sec. 4412. State authority to limit eligibility of qualified aliens for State public
benefits.
CHAPTER 3—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
Sec. 4421. Federal attribution of sponsor’s income and resources to alien.
Sec. 4422. Authority for States to provide for attribution of sponsors income
and resources to the alien with respect to State programs.
Sec. 4423. Requirements for sponsor’s affidavit of support.
CHAPTER 4—GENERAL PROVISIONS
Sec. 4431. Definitions.
Sec. 4432. Verification of eligibility for Federal public benefits.
Sec. 4433. Statutory construction.
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Sec. 4434. Communication between State and local government agencies and
the Immigration and Naturalization Service.
Sec. 4435. Qualifying quarters.
CHAPTER 5—CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING
Sec. 4441. Conforming amendments relating to assisted housing.
CHAPTER 6—EARNED INCOME CREDIT DENIED TO UNAUTHORIZED
EMPLOYEES
Sec. 4451. Earned income credit denied to individuals not authorized to be em-
ployed in the United States.
Subtitle E—Reform of Public Housing
Sec. 4601. Fraud under means-tested welfare and public assistance programs.
Subtitle F—Child Protection Block Grant Programs and Foster Care,
Adoption Assistance, and Independent Living Programs
CHAPTER 1—CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER
CARE, ADOPTION ASSISTANCE, AND INDEPENDENT LIVING PROGRAMS
SUBCHAPTER A—BLOCK GRANTS TO STATES FOR THE PROTECTION OF
CHILDREN
Sec. 4701. Establishment of program.
Sec. 4702. Conforming amendments.
SUBCHAPTER B—FOSTER CARE, ADOPTION ASSISTANCE, AND INDEPENDENT
LIVING PROGRAMS
Sec. 4711. Conforming amendments to part E of title IV.
SUBCHAPTER C—MISCELLANEOUS
Sec. 4721. Secretarial submission of legislative proposal for technical and con-
forming amendments.
Sec. 4722. Sense of the Congress regarding timely adoption of children.
Sec. 4723. Removal of barriers to interethnic adoption.
Sec. 4724. Effective date; transition rules.
CHAPTER 2—CHILD AND FAMILY SERVICES BLOCK GRANT
Sec. 4751. Child and family services block grant.
Sec. 4752. Reauthorizations.
Sec. 4753. Repeals.
Subtitle G—Reductions in Federal Government Positions
Sec. 4801. Reductions.
Sec. 4802. Reductions in Federal bureaucracy.
Sec. 4803. Reducing personnel in Washington, D.C. area.
Subtitle H—Miscellaneous
Sec. 4901. Appropriation by State legislatures.
Sec. 4902. Sanctioning for testing positive for controlled substances.
Sec. 4903. Reduction in block grants to States for social services.
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Subtitle A—Block Grants for Tem-
porary 
Assistance 
for 
Needy
Families
SEC. 4101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful
society.
(2) Marriage is an essential institution of a suc-
cessful society which promotes the interests of chil-
dren.
(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 es-
tablished and, of that 54 percent, only about one-
half received the full amount due. Of the cases en-
forced through the public child support enforcement
system, only 18 percent of the caseload has a collec-
tion.
(5) The number of individuals receiving aid to
families with dependent children (in this section re-
ferred to as ‘‘AFDC’’) has more than tripled since
1965. More than two-thirds of these recipients are
children. Eighty-nine percent of children receiving
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AFDC benefits now live in homes in which no father
is present.
(A)(i) The average monthly number of
children receiving 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 benefits increased nearly threefold be-
tween 1965 and 1992, the total number of chil-
dren in the United States aged 0 to 18 has de-
clined by 5.5 percent.
(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. Be-
tween 1970 and 1991, the percentage 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:
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(A) It is estimated that the rate of non-
marital 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 mar-
ried couples decreased 7.3 percent between
1980 and 1991, from 126.9 pregnancies per
1,000 married women in 1980 to 117.6 preg-
nancies 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-wed-
lock 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 ef-
fects of ‘‘younger and longer’’ increase total
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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 attain-
ment, 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 themselves.
(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, neverthe-
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less, the negative consequences of raising children in
single-parent homes are well documented as follows:
(A) Only 9 percent of married-couple fami-
lies with children under 18 years of age have
income below the national poverty level. In con-
trast, 46 percent of female-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 re-
ceived AFDC.
(C) Children born into families receiving
welfare assistance are 3 times more likely to be
on welfare when they reach adulthood than chil-
dren not born into families receiving welfare.
(D) Mothers under 20 years of age are at
the greatest risk of bearing low-birth-weight ba-
bies.
(E) The younger the single parent mother,
the less likely she is to finish high school.
(F) Young women who have children be-
fore finishing high school are more likely to re-
ceive welfare assistance for a longer period of
time.
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(G) Between 1985 and 1990, the public
cost of births to teenage mothers under the aid
to families with dependent children program,
the food stamp program, and the medicaid pro-
gram 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 perform-
ance and peer adjustment.
(I) Children of teenage single parents have
lower cognitive scores, lower educational aspira-
tions, and a greater likelihood of becoming teen-
age 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 sus-
pended 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 of-
fenses within the State juvenile justice system,
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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 Con-
gress that prevention of out-of-wedlock pregnancy
and reduction in out-of-wedlock birth are very im-
portant Government interests and the policy con-
tained in part A of title IV of the Social Security
Act (as amended by section 4103(a) of this Act) is
intended to address the crisis.
SEC. 4102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this subtitle 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 sec-
tion or other provision of the Social Security Act.
SEC. 4103. BLOCK GRANTS TO STATES.
(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601
et seq.) is amended—
(1) by striking all that precedes section 418 (as
added by section 4803(b)(2) of this Act) and insert-
ing the following:
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‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘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 preventing and reducing the incidence of
these pregnancies; and
‘‘(4) encourage the formation and maintenance
of two-parent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part
shall not be interpreted 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
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fiscal year, has submitted to the Secretary a plan that the
Secretary has found includes the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—
‘‘(A) GENERAL
PROVISIONS.—A written
document that outlines how the State intends to
do the following:
‘‘(i) Conduct a program, designed to
serve all political subdivisions in the State
(not necessarily in a uniform manner),
that provides assistance to needy families
with (or expecting) children and provides
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 re-
ceiving assistance 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.
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‘‘(iii) Ensure that parents and care-
takers receiving assistance under the pro-
gram engage in work activities in accord-
ance with section 407.
‘‘(iv) Take such reasonable steps as
the State deems necessary to restrict the
use and disclosure of information about in-
dividuals and families receiving assistance
under the program attributable to funds
provided by the Federal Government.
‘‘(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 as-
sistance under the program to individuals
who are not citizens of the United States,
and if so, shall include an overview of such
assistance.
‘‘(iii) The document shall set forth ob-
jective criteria for the delivery of benefits
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and the determination of eligibility and for
fair and equitable treatment, including an
explanation of how the State will provide
opportunities for recipients who have been
adversely affected to be heard in a State
administrative or appeal process.
‘‘(2) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
SUPPORT
ENFORCEMENT
PRO-
GRAM.—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 cer-
tification 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 ap-
proved under part B.
‘‘(4) CERTIFICATION OF THE ADMINISTRATION
OF THE PROGRAM.—A certification by the chief ex-
ecutive 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 gov-
ernments and private sector organizations—
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‘‘(A) have been consulted regarding the
plan and design of welfare services in the State
so that services are provided in a manner ap-
propriate to local populations; and
‘‘(B) have had at least 45 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 AS-
SISTANCE.—A certification by the chief executive of-
ficer 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 Government.
‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUM-
MARY.—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.—
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‘‘(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.
‘‘(B) STATE
FAMILY
ASSISTANCE
GRANT
DEFINED.—As used in this part, the term
‘State family assistance grant’ means the great-
est of—
‘‘(i) 1⁄3 of the total amount required
to be paid to the State under former sec-
tion 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
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amount required to be paid to the State
under former section 403(a)(5) for emer-
gency assistance for fiscal year 1995 ex-
ceeds 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 or 1995, the Secretary ap-
proved under former section 402 an
amendment to the former State plan to
allow 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 sec-
tion 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 ef-
fect) or for child care under subsection (g)
or (i) of former section 402 (as so in ef-
fect)), plus the total amount required to be
paid to the State for fiscal year 1995
under former section 403(l) (as so in ef-
fect).
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‘‘(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 mainte-
nance assistance expenditures for the
fiscal year, before reduction 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 admin-
istrative expenditures (including ad-
ministrative expenditures for the de-
velopment of management information
systems) for the fiscal year, as re-
ported by the State on ACF Form
231;
‘‘(III) the Federal share of emer-
gency assistance expenditures for the
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fiscal year, as reported by the State
on ACF Form 231;
‘‘(IV) the Federal share of ex-
penditures for the fiscal year with re-
spect to child care pursuant to sub-
sections (g) and (i) of former section
402 (as in effect on September 30,
1995), as reported by the State on
ACF Form 231; and
‘‘(V) the aggregate amount re-
quired 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 de-
termined 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 Secretary under former section
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403 (as in effect during the fiscal
year) with respect to the territory.
‘‘(D) INFORMATION TO BE USED IN DE-
TERMINING AMOUNTS.—
‘‘(i) FOR
FISCAL
YEARS
1992
AND
1993.—
‘‘(I) In determining the amounts
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 in-
formation 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 Janu-
ary 6, 1995.
‘‘(ii) FOR FISCAL YEAR 1994.—In de-
termining the amounts described in sub-
paragraph (C)(i) for any State for fiscal
year 1994, the Secretary shall use informa-
tion available as of April 28, 1995.
‘‘(iii) FOR FISCAL YEAR 1995.—
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‘‘(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 re-
spect to emergency assistance expend-
itures and was available as of August
11, 1995.
‘‘(II) In determining the amounts
described in subclauses (I) through
(III) of subparagraph (C)(i) for any
State for fiscal year 1995, the Sec-
retary shall use information available
as of October 2, 1995.
‘‘(III) In determining the amount
described in subparagraph (C)(i)(IV)
for any State for fiscal year 1995, the
Secretary shall use information avail-
able as of February 28, 1996.
‘‘(IV) In determining the amount
described in subparagraph (C)(i)(V)
for any State for fiscal year 1995, the
Secretary shall use information avail-
able as of October 5, 1995.
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‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise 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-WEDLOCK BIRTHS.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive 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 ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations 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—
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‘‘(I) the illegitimacy ratio of the
State for the fiscal year is at least 2
percentage points lower than the ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations 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 oc-
curred 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
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purposes of subparagraph (A), the Secretary
shall disregard—
‘‘(i) any difference between the illegit-
imacy 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 Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal year 1998 and for each succeeding 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 Secretary—
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‘‘(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 in effect dur-
ing 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 immediately preced-
ing fiscal year; and
‘‘(II) 2.5 percent of the sum of—
‘‘(aa) the total amount re-
quired 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 fis-
cal year preceding the fiscal year
for which the grant is to be
made.
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‘‘(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 subpara-
graph (F), be entitled to receive from the Sec-
retary 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 person by the State for the
immediately preceding fiscal year is
less than the national average level of
State welfare spending per poor per-
son 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
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recent fiscal year for which informa-
tion is available exceeds the average
population growth rate for all States
(as so determined) for such most re-
cent 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 person 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
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from April 1, 1990 to July 1, 1994,
according to the population estimates
in publication CB94–204 of the Bu-
reau of the Census.
‘‘(D) DEFINITIONS.—As used in this para-
graph:
‘‘(i) LEVEL OF WELFARE SPENDING
PER
POOR
PERSON.—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 re-
quired 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 cen-
sus, who were residents of the State
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and whose income was below the pov-
erty line.
‘‘(ii) NATIONAL AVERAGE LEVEL OF
STATE
WELFARE
SPENDING
PER
POOR
PERSON.—The term ‘national average 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; di-
vided by
‘‘(II) the number of individuals,
according to the 1990 decennial cen-
sus, who were residents of any State
and whose income was below the pov-
erty 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 Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1997, 1998, 1999, and 2000 such
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HR 3734 RDS
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 IN-
SUFFICIENT APPROPRIATIONS.—If the amount
appropriated pursuant to this paragraph for a
fiscal year is less than the total amount of pay-
ments 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 paragraph shall be reduced by
a percentage equal to the amount so appro-
priated 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.
‘‘(4) BONUS TO REWARD HIGH PERFORMANCE
STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each bonus year for which the
State is a high performing State.
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‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN GENERAL.—Subject to clause
(ii) of this subparagraph, the Secretary
shall determine the amount of the grant
payable under this paragraph to a high
performing State for a bonus year, which
shall be based on the score assigned to the
State under subparagraph (D)(i) for the
fiscal year that immediately precedes the
bonus year.
‘‘(ii) LIMITATION.—The amount pay-
able to a State under this paragraph for a
bonus year shall not exceed 5 percent of
the State family assistance grant.
‘‘(C) FORMULA
FOR
MEASURING
STATE
PERFORMANCE.—Not later than 1 year after
the date of the enactment of the Personal Re-
sponsibility and Work Opportunity Act of 1996,
the Secretary, in consultation with the National
Governors’ Association and the American Pub-
lic Welfare Association, shall develop a formula
for measuring State performance in operating
the State program funded under this part so as
to achieve the goals set forth in section 401(a).
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‘‘(D) SCORING OF STATE PERFORMANCE;
SETTING
OF
PERFORMANCE
THRESHOLDS.—
For each bonus year, the Secretary shall—
‘‘(i) use the formula developed under
subparagraph (C) to assign a score to each
eligible State for the fiscal year that imme-
diately precedes the bonus year; and
‘‘(ii) prescribe a performance thresh-
old in such a manner so as to ensure
that—
‘‘(I) the average annual total
amount of grants to be made under
this paragraph for each bonus year
equals $100,000,000; and
‘‘(II) the total amount of grants
to be made under this paragraph for
all bonus years equals $500,000,000.
‘‘(E) DEFINITIONS.—As used in this para-
graph:
‘‘(i) BONUS YEAR.—The term ‘bonus
year’ means fiscal years 1999, 2000, 2001,
2002, and 2003.
‘‘(ii) HIGH PERFORMING STATE.—The
term ‘high performing State’ means, with
respect a bonus year, an eligible State
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HR 3734 RDS
whose score assigned pursuant to subpara-
graph (D)(i) for the fiscal year imme-
diately preceding the bonus year equals or
exceeds the performance threshold pre-
scribed under subparagraph (D)(ii) for
such preceding fiscal year.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1999 through 2003 $500,000,000
for grants under this paragraph.
‘‘(5) SUPPLEMENTAL GRANT FOR OPERATION
OF WORK PROGRAM.—
‘‘(A) APPLICATION
REQUIREMENTS.—An
eligible State may submit to the Secretary an
application for additional funds to meet the re-
quirements of section 407 with respect to a fis-
cal year if the Secretary determines that—
‘‘(i) the total expenditures of the
State to meet such requirements for the
fiscal year exceed the total expenditures of
the State during fiscal year 1994 to carry
out part F (as in effect on September 30,
1994);
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‘‘(ii) the work programs of the State
under this section are coordinated with the
job training programs established by title
II of the Job Training Partnership Act, or
(if such title is repealed by an Act that be-
comes law during the 104th Congress) the
Act that repeals such title; and
‘‘(iii) the State needs additional funds
to meet such requirements or certifies that
it intends to exceed such requirements.
‘‘(B) GRANTS.—The Secretary may make
a grant to any eligible State which submits an
application in accordance with subparagraph
(A) for a fiscal year in an amount equal to the
Federal medical assistance percentage of the
amount (if any) by which the total expenditures
of the State to meet or exceed the requirements
of section 407 for the fiscal year exceeds the
total expenditures of the State during fiscal
year 1994 to carry out part F (as in effect on
September 30, 1994).
‘‘(C) REGULATIONS.—The Secretary shall
issue regulations providing for the equitable dis-
tribution of funds under this paragraph.
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‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—
‘‘(i) IN GENERAL.—There are author-
ized to be appropriated for grants under
this paragraph $3,000,000,000 for fiscal
year 1999.
‘‘(ii) AVAILABILITY.—Amounts appro-
priated pursuant to clause (i) are author-
ized to remain available until expended.
‘‘(b) CONTINGENCY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a fund
which shall be known 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 Treasury 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 $2,000,000,000.
‘‘(3) GRANTS.—
‘‘(A) PROVISIONAL PAYMENTS.—If an eli-
gible State submits to the Secretary a request
for funds under this paragraph during an eligi-
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ble month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts ap-
propriated pursuant to paragraph (2), an
amount equal to the amount of funds so re-
quested.
‘‘(B) PAYMENT PRIORITY.—The Secretary
shall make payments under subparagraph (A)
in the order in which the Secretary receives re-
quests for such payments.
‘‘(C) LIMITATIONS.—
‘‘(i) 
MONTHLY
PAYMENT
TO
A
STATE.—The total amount paid to a single
State under subparagraph (A) during a
month shall not exceed 1⁄12 of 20 percent
of the State family assistance grant.
‘‘(ii) PAYMENTS
TO
ALL
STATES.—
The total amount paid to all States under
subparagraph (A) during fiscal years 1997
through 2001 shall not exceed the total
amount appropriated pursuant to para-
graph (2).
‘‘(4) ANNUAL RECONCILIATION.—Notwithstand-
ing paragraph (3), at the end of each fiscal year,
each State shall remit to the Secretary an amount
equal to the amount (if any) by which the total
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HR 3734 RDS
amount paid to the State under paragraph (3) dur-
ing the fiscal year exceeds—
‘‘(A) the Federal medical assistance per-
centage for the State for the fiscal year (as de-
fined in section 1905(b), as in effect on Sep-
tember 30, 1995) of the amount (if any) by
which the expenditures under the State pro-
gram funded under this part for the fiscal year
exceed historic State expenditures (as defined in
section 409(a)(7)(B)(iii)); multiplied by
‘‘(B) 1⁄12 times the number of months dur-
ing the fiscal year for which the Secretary
makes a payment to the State under this sub-
section.
‘‘(5) ELIGIBLE MONTH.—As used in paragraph
(3)(A), the term ‘eligible month’ means, with respect
to a State, a month in the 2-month period that be-
gins with any month for which the State is a needy
State.
‘‘(6) NEEDY
STATE.—For purposes of para-
graph (5), a State is a needy State for a month if—
‘‘(A) the average rate of—
‘‘(i) total unemployment in such State
(seasonally adjusted) for the period con-
sisting of the most recent 3 months for
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which data for all States are published
equals or exceeds 6.5 percent; and
‘‘(ii) total unemployment in such
State (seasonally adjusted) for the 3-
month period equals or exceeds 110 per-
cent of such average rate for either (or
both) of the corresponding 3-month periods
ending in the 2 preceding calendar years;
or
‘‘(B) as determined by the Secretary of
Agriculture (in the discretion of the Secretary
of Agriculture), the monthly average number of
individuals (as of the last day of each month)
participating in the food stamp program in the
State in the then most recently concluded 3-
month period for which data are available ex-
ceeds by not less than 10 percent the lesser
of—
‘‘(i) the monthly average number of
individuals (as of the last day of each
month) in the State that would have par-
ticipated in the food stamp program in the
corresponding 3-month period in fiscal
year 1994 if the amendments made by
subtitles D and J of the Personal Respon-
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sibility and Work Opportunity Act of 1996
had been in effect throughout fiscal year
1994; or
‘‘(ii) the monthly average number of
individuals (as of the last day of each
month) in the State that would have par-
ticipated in the food stamp program in the
corresponding 3-month period in fiscal
year 1995 if the amendments made by
subtitles D and J of the Personal Respon-
sibility and Work Opportunity Act of 1996
had been in effect throughout fiscal year
1995.
‘‘(7) OTHER TERMS DEFINED.—As used in this
subsection:
‘‘(A) STATE.—The term ‘State’ means
each of the 50 States of the United States and
the District of Columbia.
‘‘(B) SECRETARY.—The term ‘Secretary’
means the Secretary of the Treasury.
‘‘(8) ANNUAL REPORTS.—The Secretary shall
annually report to the Congress on the status of the
Fund.
‘‘(9) BUDGET SCORING.—Notwithstanding sec-
tion 257(b)(2) of the Balanced Budget and Emer-
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HR 3734 RDS
gency Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this sub-
section 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 cal-
culated to accomplish the purpose of this part, in-
cluding to provide low income households with as-
sistance in meeting home heating and cooling costs;
or
‘‘(2) in any manner that the State was author-
ized 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 ADMINIS-
TRATIVE PURPOSES.—
‘‘(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 tech-
nology and computerization needed for tracking or
monitoring required by or under this part.
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‘‘(c) AUTHORITY
TO TREAT INTERSTATE
IMMI-
GRANTS UNDER RULES OF FORMER STATE.—A State op-
erating a program funded under this part may apply to
a family the rules (including benefit amounts) of the pro-
gram funded under this part of another State if the family
has moved to the State from the other State and has re-
sided in the State for less than 12 months.
‘‘(d) AUTHORITY TO USE PORTION OF GRANT FOR
OTHER PURPOSES.—
‘‘(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 or E of this title.
‘‘(B) Title XX of this Act.
‘‘(C) The Child Care and Development
Block Grant Act of 1990.
‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE
TO
TITLE
XX
PROGRAMS.—Notwithstanding para-
graph (1), not more than 1⁄3 of the total amount
paid to a State under this part for a fiscal year that
is used to carry out State programs pursuant to pro-
visions of law specified in paragraph (1) may be
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used to carry out State programs pursuant to title
XX.
‘‘(3) APPLICABLE RULES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B) of this paragraph, any
amount paid to a State under this part that is
used to carry out a State program pursuant to
a provision of law specified in paragraph (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 pro-
gram.
‘‘(B) EXCEPTION RELATING TO TITLE XX
PROGRAMS.—All amounts paid to a State under
this part that are used to carry out State pro-
grams pursuant to title XX shall be used only
for programs and services to children or their
families.
‘‘(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS
FOR ASSISTANCE.—A State may reserve amounts paid to
the State under this part for any fiscal year for the pur-
pose of providing, without fiscal year limitation, assistance
under the State program funded under this part.
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‘‘(f) AUTHORITY TO OPERATE EMPLOYMENT PLACE-
MENT PROGRAM.—A State to which a grant is made under
section 403 may use the grant to make payments (or pro-
vide 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 SYSTEM.—A State to which a grant is made
under section 403 is encouraged to implement an elec-
tronic 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 payment of any such quarterly installment to a State,
the Secretary shall notify the State of the amount of any
reduction determined under section 412(a)(1)(B) with re-
spect to the State.
‘‘(c) COMPUTATION AND CERTIFICATION OF PAY-
MENTS TO STATES.—
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‘‘(1) COMPUTATION.—The Secretary shall esti-
mate 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 ex-
pended by the State in the quarter under the State
program funded under this part and such other in-
formation 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 Services
determines was made under this part to the State
for any prior quarter and with respect to which ad-
justment has not been made under this paragraph.
‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi-
cation under subsection (c)(2) with respect to a State, the
Secretary of the Treasury 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.
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‘‘(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 administering a program funded under
this part has notified the Secretary that a named in-
dividual has been overpaid under the State program
funded under this part, the Secretary of the Treas-
ury shall determine whether any amounts as refunds
of Federal taxes paid are payable to such individual,
regardless of whether the individual filed a tax re-
turn 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 overpay-
ment 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 pro-
vide—
‘‘(A) that a State may only submit under
paragraph (1) requests for collection of over-
payments with respect to individuals—
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‘‘(i) who are no longer receiving as-
sistance 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 with-
holding by the Secretary of the Treasury
from the income tax refunds of such indi-
viduals;
‘‘(B) that the Secretary of the Treasury
will give a timely and appropriate notice to any
other person filing a joint return with the indi-
vidual 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 ex-
tent feasible and consistent with the provisions
of this subsection, will be the same as those is-
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sued pursuant to section 464(b) applicable to
collection of past-due child support.
‘‘SEC. 406. FEDERAL LOANS FOR STATE WELFARE PRO-
GRAMS.
‘‘(a) LOAN AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary shall make
loans to any loan-eligible State, for a period to ma-
turity of not more than 3 years.
‘‘(2) LOAN-ELIGIBLE STATE.—As used in para-
graph (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
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the service area of an Indian tribe with a tribal fam-
ily 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 OUTSTAND-
ING LOANS.—The total dollar amount of loans outstand-
ing 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 appropriated 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:
1997 ...................................................................
1998 ...................................................................
1999 ...................................................................
2000 ...................................................................
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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 speci-
fied in the following table for the fiscal year with re-
spect 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 pur-
poses of subsection (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 fis-
cal year.
‘‘(B) MONTHLY PARTICIPATION RATES.—
The participation rate of a State for all families
of the State for a month, expressed as a per-
centage, is—
‘‘(i) the number of families receiving
assistance under the State program funded
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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 re-
ceiving such assistance during the
month that include an adult receiving
such assistance; exceeds
‘‘(II) the number of families re-
ceiving such assistance that are sub-
ject in such month to a penalty de-
scribed in subsection (e)(1) but have
not been subject to such penalty for
more than 3 months within the pre-
ceding 12-month period (whether or
not consecutive).
‘‘(2) 2-PARENT FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (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 participation rate of a State for 2-parent
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families of the State for a month shall be cal-
culated by use of the formula set forth in para-
graph (1)(B), except that in the formula the
term ‘number of 2-parent families’ shall be sub-
stituted for the term ‘number of families’ each
place such latter term appears.
‘‘(3) PRO RATA REDUCTION OF PARTICIPATION
RATE
DUE
TO
CASELOAD
REDUCTIONS
NOT
RE-
QUIRED BY FEDERAL LAW.—
‘‘(A) IN
GENERAL.—The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this
section for a fiscal year by the number of per-
centage points equal to the number of percent-
age points (if any) by which—
‘‘(i) the average monthly number of
families receiving assistance during the fis-
cal year under the State program funded
under this part is less than
‘‘(ii) the average monthly 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.
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The minimum participation rate shall not be re-
duced to the extent that the Secretary deter-
mines that the reduction in the number of fami-
lies receiving such assistance is required by
Federal law.
‘‘(B) ELIGIBILITY CHANGES NOT COUNT-
ED.—The regulations described in subpara-
graph (A) shall not take into account families
that are diverted from a State program funded
under this part as a result of differences in eli-
gibility criteria under a State program funded
under this part and eligibility criteria under the
State program operated 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 di-
verted 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, in-
clude families receiving assistance under a tribal
family assistance plan approved under section 412.
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‘‘(5) STATE
OPTION
FOR
PARTICIPATION
RE-
QUIREMENT EXEMPTIONS.—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 deter-
mining the participation rates under subsection (a).
‘‘(c) ENGAGED IN WORK.—
‘‘(1) ALL
FAMILIES.—For purposes of sub-
section (b)(1)(B)(i), a recipient is engaged in work
for a month in a fiscal year if the recipient is par-
ticipating in work 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 activ-
ity described in paragraph (1), (2), (3), (4), (5), (6),
(7), or (8) of subsection (d):
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1996 ...............................................................
1997 ...............................................................
1998 ...............................................................
1999 ...............................................................
2000 or thereafter .........................................
30.
‘‘(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 work activities for at least 35 hours per
week during the month, not fewer than 30 hours per
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week of which are attributable to an activity de-
scribed in paragraph (1), (2), (3), (4), (5), (6), (7),
or (8) of subsection (d).
‘‘(3) LIMITATION ON NUMBER OF WEEKS FOR
WHICH JOB SEARCH COUNTS AS WORK.—Notwith-
standing paragraphs (1) and (2), an individual shall
not be considered to be engaged in work by virtue
of participation in an activity described in subsection
(d)(6), after the individual has participated in such
an activity for 8 weeks in a fiscal year, or if the par-
ticipation is for a week that is in a fiscal year and
that immediately follows 4 consecutive weeks of such
participation in the fiscal year. An individual shall
be considered to be participating in such an activity
for a week if the individual participates in such an
activity at any time during the week.
‘‘(4) LIMITATION ON VOCATIONAL EDUCATION
ACTIVITIES COUNTED AS WORK.—For purposes of
determining monthly participation rates under para-
graphs (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 requirement through participation in voca-
tional educational training.
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‘‘(5) SINGLE PARENT WITH CHILD UNDER AGE
6 DEEMED TO BE MEETING WORK PARTICIPATION
REQUIREMENTS IF PARENT IS ENGAGED IN WORK
FOR 20 HOURS PER WEEK.—For purposes of deter-
mining monthly participation rates under subsection
(b)(1)(B)(i), a recipient in a 1-parent family who is
the parent of a child who has not attained 6 years
of age is deemed to be engaged in work for a month
if the recipient is engaged in work for an average
of at least 20 hours per week during the month.
‘‘(6) TEEN HEAD OF HOUSEHOLD WHO MAIN-
TAINS
SATISFACTORY
SCHOOL
ATTENDANCE
DEEMED TO BE MEETING WORK PARTICIPATION RE-
QUIREMENTS.—For purposes of determining month-
ly participation rates under subsection (b)(1)(B)(i),
a recipient who is a single head of household and
has not attained 20 years of age is deemed to be en-
gaged in work for a month in a fiscal year if the re-
cipient—
‘‘(A) maintains satisfactory attendance at
secondary school or the equivalent during the
month; or
‘‘(B) participates in education directly re-
lated to employment for at least the minimum
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average number of hours per week specified in
the table set forth in paragraph (1).
‘‘(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 ex-
ceed 12 months with respect to any individual);
‘‘(9) job skills training directly related to em-
ployment;
‘‘(10) education directly related to employment,
in the case of a recipient who 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 has not com-
pleted secondary school.
‘‘(e) PENALTIES AGAINST INDIVIDUALS.—
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if an adult in a family receiving assist-
ance under the State program funded under this
part refuses to engage in work required in accord-
ance with this section, the State shall—
‘‘(A) reduce the amount of assistance oth-
erwise 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 re-
fuses; 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 program 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 11 years of age, and the adult
proves that the adult has a demonstrated inability
(as determined by the State) to obtain needed child
care, for 1 or more of the following reasons:
‘‘(A) Unavailability of appropriate child
care within a reasonable distance from the indi-
vidual’s home or work site.
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‘‘(B) Unavailability or unsuitability of in-
formal child care by a relative or under other
arrangements.
‘‘(C) Unavailability of appropriate and af-
fordable formal 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 pro-
vided 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 other-
wise caused an involuntary reduction of its
workforce in order to fill the vacancy so created
with an adult described in paragraph (1).
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‘‘(3) NO PREEMPTION.—Nothing in this sub-
section shall preempt 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 NON-
CUSTODIAL, NONSUPPORTING MINOR PARENTS.—It is the
sense of the Congress that the States should require non-
custodial, nonsupporting parents who have not attained 18
years of age to fulfill community work obligations and at-
tend appropriate parenting or money management classes
after school.
‘‘(i) REVIEW OF IMPLEMENTATION OF STATE WORK
PROGRAMS.—During fiscal year 1999, the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate shall hold hearings
and engage in other appropriate activities to review the
implementation of this section by the States, and shall in-
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vite the Governors of the States to testify before them re-
garding such implementation. Based on such hearings,
such Committees may introduce such legislation as may
be appropriate to remedy any problems with the State pro-
grams operated pursuant to this section.
‘‘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 cus-
todial 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 ASSIST-
ANCE.—
‘‘(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
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‘‘(ii) a person who received such as-
sistance 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 in-
clude any other children.
‘‘(C) EXCEPTION
FOR
VOUCHERS.—Sub-
paragraph (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 in-
cest.
‘‘(E) STATE ELECTION TO OPT OUT.—Sub-
paragraph (A) shall not apply to a State if
State law specifically exempts the State pro-
gram funded under this part from the applica-
tion of subparagraph (A).
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‘‘(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 ap-
proved by the Secretary 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 amendments made by subtitle A of
the Personal Responsibility and Work Op-
portunity Act of 1996) to a family by rea-
son of the birth of a child to a family
member otherwise eligible for such aid; and
‘‘(ii) for so long as the State contin-
ues to implement such policy under the
State program funded under this part,
under rules prescribed by the State.
‘‘(3) REDUCTION OR ELIMINATION OF ASSIST-
ANCE FOR NONCOOPERATION IN ESTABLISHING PA-
TERNITY
OR
OBTAINING
CHILD
SUPPORT.—If the
agency responsible for administering the State plan
approved under part D determines that an individual
is not cooperating with the State in establishing pa-
ternity or in establishing, modifying, or enforcing a
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support order with respect to a child of the individ-
ual, and the individual does not qualify for any good
cause or other exception established by the State
pursuant to section 454(29), then the State—
‘‘(A) shall deduct from the assistance that
would otherwise be provided to the family of the
individual under the State program funded
under this part the share of such assistance at-
tributable to the individual; and
‘‘(B) may deny the family any assistance
under the State program.
‘‘(4) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
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 fam-
ily 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,
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which accrue (or have accrued) before the date
the family leaves the program, which assign-
ment, 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 as-
signment is executed on or after October 1,
1997, and before October 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 re-
quire, as a condition of providing 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 de-
scribed in subparagraph (A) which accrue after
the date the family leaves the program.
‘‘(5) NO ASSISTANCE FOR TEENAGE PARENTS
WHO
DO
NOT
ATTEND
HIGH
SCHOOL
OR
OTHER
EQUIVALENT
TRAINING
PROGRAM.—A State to
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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 com-
pleted a high-school education (or its equivalent), if
the individual does not participate in—
‘‘(A) educational activities directed toward
the attainment 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 pro-
vided in subparagraph (B), a State to
which a grant is made under section 403
shall not use any part of the grant to pro-
vide 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 in-
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dividual as such parent’s, guardian’s, or
adult relative’s own home.
‘‘(ii) INDIVIDUAL DESCRIBED.— For
purposes of clause (i), an individual de-
scribed 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 AR-
RANGEMENT.—In the case of an individual
who is described in clause (ii), the State
agency referred to in section 402(a)(4)
shall provide, or assist the individual in lo-
cating, a second chance home, maternity
home, or other appropriate adult-super-
vised 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 appropriate, and
thereafter shall require that the individual
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and the minor child referred to in subpara-
graph (A)(ii)(II) reside in such living ar-
rangement as a condition of the continued
receipt of assistance under the State pro-
gram funded under this part attributable
to funds provided by the Federal Govern-
ment (or in an alternative appropriate ar-
rangement, should circumstances change
and the current arrangement cease to be
appropriate).
‘‘(ii) INDIVIDUAL
DESCRIBED.—For
purposes of clause (i), an individual is de-
scribed in this clause if the individual is
described in subparagraph (A)(ii), and—
‘‘(I) the individual has no parent,
legal guardian 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
individual’s legal guardian, of such in-
dividual allows the individual to live in
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the home of such parent, guardian, or
relative;
‘‘(III) the State agency deter-
mines that—
‘‘(aa) the individual or the
minor child referred to in sub-
paragraph (A)(ii)(II) is being or
has been subjected to serious
physical or emotional harm, sex-
ual 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 se-
rious 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 inter-
est of the minor child to waive the re-
quirement of subparagraph (A) with
respect to the individual or the minor
child.
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‘‘(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 ar-
rangement 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 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
YEARS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), a State to which a
grant is made under section 403 shall not use
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any part of the grant to provide assistance to
a family that includes an adult who has re-
ceived 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 deter-
mining the number of months for which an in-
dividual who is a parent or pregnant has re-
ceived assistance under the State program
funded under this part, the State shall dis-
regard 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 ex-
empt a family from the application of sub-
paragraph (A) by reason of hardship or if
the family includes an individual who has
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been battered or subjected to extreme cru-
elty.
‘‘(ii) LIMITATION.—The number of
families with respect to which an exemp-
tion made by a State under clause (i) is in
effect for a fiscal year shall not exceed 20
percent of the average monthly number of
families to which assistance is provided
under the State program funded under this
part.
‘‘(iii) BATTERED OR SUBJECT TO EX-
TREME CRUELTY DEFINED.—For purposes
of clause (i), an individual has been bat-
tered or subjected to extreme cruelty if the
individual has been subjected to—
‘‘(I) physical acts that resulted
in, or threatened to result in, physical
injury to the individual;
‘‘(II) sexual abuse;
‘‘(III) sexual activity involving a
dependent child;
‘‘(IV) being forced as the care-
taker relative of a dependent child to
engage in nonconsensual sexual acts
or activities;
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‘‘(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.—Sub-
paragraph (A) shall not be interpreted to re-
quire any State to provide assistance to any in-
dividual for any period of time under the State
program funded under this part.
‘‘(E) RULE
OF
INTERPRETATION.—This
part shall not be interpreted to prohibit any
State from expending State funds not originat-
ing with the Federal Government on benefits
for children or families that have become ineli-
gible for assistance under the State program
funded under this part by reason of subpara-
graph (A).
‘‘(9) DENIAL OF ASSISTANCE FOR 10 YEARS TO
A PERSON FOUND TO HAVE FRAUDULENTLY MIS-
REPRESENTED RESIDENCE IN ORDER TO OBTAIN AS-
SISTANCE IN 2 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 in-
dividual during the 10-year period that begins on
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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 resi-
dence 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. The preceding sentence
shall not apply with respect to a conviction of an
individual, for any month beginning after the Presi-
dent of the United States grants a pardon with re-
spect to the conduct which was the subject of the
conviction.
‘‘(10) DENIAL OF ASSISTANCE FOR FUGITIVE
FELONS
AND
PROBATION
AND
PAROLE
VIOLA-
TORS.—
‘‘(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
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to commit a crime, which is a felony under
the laws of the place from which the indi-
vidual flees, or which, in the case of the
State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(ii) violating a condition of probation
or parole imposed under Federal or State
law.
The preceding sentence shall not apply with re-
spect to conduct of an individual, for any month
beginning after the President of the United
States grants a pardon with respect to the con-
duct.
‘‘(B) EXCHANGE OF INFORMATION WITH
LAW ENFORCEMENT AGENCIES.—If a State to
which a grant is made under section 403 estab-
lishes 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 pre-
vent the State agency administering the pro-
gram from furnishing a Federal, State, or local
law enforcement officer, upon the request of the
officer, with the current address of any recipi-
ent if the officer furnishes the agency with the
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name of the recipient and notifies the agency
that—
‘‘(i) the recipient—
‘‘(I) is described in subparagraph
(A); or
‘‘(II) has information that is nec-
essary 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 180 consecutive days as the State
may provide for in the State plan submitted
pursuant to section 402.
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‘‘(B) STATE
AUTHORITY
TO
ESTABLISH
GOOD CAUSE EXCEPTIONS.—The State may es-
tablish such good cause exceptions to subpara-
graph (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
REL-
ATIVE 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 care-
taker relative) of a minor child and who fails to
notify the agency administering the State pro-
gram funded under this part of the absence of
the minor child from the home for the period
specified in or provided for pursuant to sub-
paragraph (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
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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 benefits, or on behalf
of whom benefits are paid, under a State plan for
old-age assistance approved under section 2, under
section 202, 205(j)(1), 223, or 228, under a State
program funded under part E that provides cash
payments for foster care, or under the supplemental
security income program under title XVI, then the
State may disregard the payment in determining the
amount of assistance to be provided under the State
program funded under this part, from funds pro-
vided by the Federal Government, to the family of
which the individual is a member.
‘‘(13) MEDICAL ASSISTANCE REQUIRED TO BE
PROVIDED FOR 1 YEAR FOR FAMILIES BECOMING IN-
ELIGIBLE FOR CASH ASSISTANCE UNDER THIS PART
DUE
TO
INCREASED
EARNINGS
FROM
EMPLOY-
MENT.—A State to which a grant is made under sec-
tion 403 shall take such action as may be necessary
to ensure that, if an individual or family becomes in-
eligible to receive cash assistance under the State
program funded under this part as a result of in-
creased earnings from employment, having received
such assistance in at least 3 of the 6 months imme-
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diately preceding the month in which such ineligibil-
ity begins, the individual (or in the case of a family,
each individual in the family) shall be eligible for
medical assistance under the State’s plan approved
under title XIX during the immediately succeeding
12-month period for so long as family income (as de-
fined by the State), excluding any refund of Federal
income taxes made by reason of section 32 of the In-
ternal Revenue Code of 1986 (relating to earned in-
come tax credit) and any payment made by an em-
ployer under section 3507 of such Code (relating to
advance payment of earned income credit), is less
than the poverty line, and that the family will be ap-
propriately notified of such eligibility.
‘‘(14) MEDICAL ASSISTANCE REQUIRED TO BE
PROVIDED FOR 4 MONTHS FOR FAMILIES BECOMING
INELIGIBLE
FOR
CASH
ASSISTANCE
UNDER
THIS
PART DUE TO COLLECTION OF CHILD SUPPORT.—A
State to which a grant is made under section 403
shall take such action as may be necessary to ensure
that, if any individual or family becomes ineligible to
receive cash assistance under the State program
funded under this part as a result of the collection
or increased collection of child or spousal support
under part D, having received such assistance in at
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least 3 of the 6 months immediately preceding the
month in which such ineligibility begins, the individ-
ual (or, in the case of a family, each individual in
the family) shall be eligible for medical assistance
under the State’s plan approved under title XIX
during the 4-month period beginning with the month
in which such ineligibility begins.
‘‘(15) MEDICAL ASSISTANCE REQUIRED TO BE
PROVIDED FOR CERTAIN INDIVIDUALS.—A State to
which a grant is made under section 403 shall take
such action as may be necessary to ensure that,
under section 1931, individuals who would be eligible
for cash assistance under the State plan approved
under this part (as in effect as of July 16, 1996) if
such State plan were still in effect are eligible for
medical assistance under the State’s plan approved
under title XIX.
‘‘(b) INDIVIDUAL RESPONSIBILITY PLANS.—
‘‘(1) ASSESSMENT.—The State agency respon-
sible for administering the State program funded
under this part shall make an initial assessment of
the skills, prior work experience, and employability
of each recipient of assistance under the program
who—
‘‘(A) has attained 18 years of age; or
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‘‘(B) has not completed high school or ob-
tained a certificate of high school equivalency,
and is not attending secondary school.
‘‘(2) CONTENTS OF PLANS.—
‘‘(A) IN GENERAL.—On the basis of the
assessment made under subsection (a) with re-
spect to an individual, the State agency, in con-
sultation with the individual, may develop an
individual responsibility plan for the individual,
which—
‘‘(i) sets forth an employment goal for
the individual and a plan for moving the
individual immediately into private sector
employment;
‘‘(ii) sets forth the obligations of the
individual, which may include a require-
ment that the individual attend school,
maintain certain grades and attendance,
keep school age children of the individual
in 
school, 
immunize 
children, 
attend
parenting and money management classes,
or do other things that will help the indi-
vidual become and remain employed in the
private sector;
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‘‘(iii) to the greatest extent possible is
designed to move the individual into what-
ever private sector employment the individ-
ual is capable of handling as quickly as
possible, and to increase the responsibility
and amount of work the individual is to
handle over time;
‘‘(iv) describes the services the State
will provide the individual so that the indi-
vidual will be able to obtain and keep em-
ployment in the private sector, and de-
scribe the job counseling and other services
that will be provided by the State; and
‘‘(v) may require the individual to un-
dergo appropriate substance abuse treat-
ment.
‘‘(B) TIMING.—The State agency may
comply with paragraph (1) with respect to an
individual—
‘‘(i) within 90 days (or, at the option
of the State, 180 days) after the effective
date of this part, in the case of an individ-
ual who, as of such effective date, is a re-
cipient of aid under the State plan ap-
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proved under part A (as in effect imme-
diately before such effective date); or
‘‘(ii) within 30 days (or, at the option
of the State, 90 days) after the individual
is determined to be eligible for such assist-
ance, in the case of any other individual.
‘‘(3) PENALTY FOR NONCOMPLIANCE BY INDI-
VIDUAL.—In addition to any other penalties required
under the State program funded under this part, the
State may reduce, by such amount as the State con-
siders appropriate, the amount of assistance other-
wise payable under the State program to a family
that includes an individual who fails without good
cause to comply with an individual responsibility
plan signed by the individual.
‘‘(4) STATE DISCRETION.—The exercise of the
authority of this subsection shall be within the sole
discretion of the State.
‘‘(c) ALIENS.—For special rules relating to the treat-
ment of aliens, see section 4402 of the Personal Respon-
sibility and Work Opportunity Act of 1996.
‘‘SEC. 409. PENALTIES.
‘‘(a) IN GENERAL.—Subject to this section:
‘‘(1) USE OF GRANT IN VIOLATION OF THIS
PART.—
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‘‘(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 Sec-
retary shall reduce the grant payable to the
State under section 403(a)(1) for the imme-
diately succeeding fiscal year quarter by the
amount so used.
‘‘(B) ENHANCED
PENALTY
FOR
INTEN-
TIONAL
VIOLATIONS.—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 fur-
ther 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
RE-
PORT.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has not, within 1 month
after the end of a fiscal quarter, submitted the
report required by section 411(a) for the quar-