(1) in paragraph (11), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (12), by striking the period at
the end of the 2nd sentence and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(13) develop, in conjunction with State execu-
tive and judicial organizations, a uniform abstract of
a child support order, for use by all State courts to
record, with respect to each child support order in
the child support order registry established under
section 466(a)(12)—
‘‘(A) the date support payments are to
begin under the order;
‘‘(B) the circumstances upon which sup-
port payments are to end under the order;
‘‘(C) the amount of child support payable
pursuant to the order expressed as a sum cer-
tain to be paid on a monthly basis, arrearages
expressed as a sum certain as of a certain date,
and any payback schedule for the arrearages;
‘‘(D) whether the order awards support in
a lump sum (nonallocated) or per child;
‘‘(E) if the award is in a lump sum, the
event causing a change in the support award
and the amount of any change;
‘‘(F) other expenses covered by the order;
‘‘(G) the names of the parents subject to
the order;
‘‘(H) the social security account numbers
of the parents;
‘‘(I) the name, date of birth, and social se-
curity account number (if any) of each child
covered by the order;
‘‘(K) the identification (FIPS code, name,
and address) of the court that issued the order;
‘‘(L) any information on health care sup-
port required by the order; and
‘‘(M) the party to contact if additional in-
formation is obtained.’’.
SEC. 506. WORK REQUIREMENT FOR NONCUSTODIAL PAR-
ENTS WITH CHILD SUPPORT ARREARAGES.
(a) IN GENERAL.—Section 466(a) of the Social Secu-
rity Act (42 U.S.C. 666(a)), as amended by sections
501(b)(1), 502, and 504(a) of this Act, is amended by in-
serting after paragraph (18) the following:
‘‘(19) Procedures requiring that—
‘‘(A) upon a determination by the State
agency referred to in section 402(a)(3) that the
noncustodial parent of any child who is apply-
ing for or receiving aid under the State plan ap-
proved under part A owes child support (as de-
fined in section 462(b)) with respect to the
child, is in arrears in the payment of such sup-
port in an amount that is not less than twice
the amount of the monthly child support obliga-
tion, is not incapacitated, and is not subject to
a court-approved plan for payment of such ar-
rearage, the State agency referred to in section
402(a)(3) send to the noncustodial parent a let-
ter notifying the noncustodial parent that the
noncustodial parent—
‘‘(i) is required to pay child support
with respect to the child; and
‘‘(ii) is subject to fines and other pen-
alties for failure to pay the full amount of
such support in a timely manner; and
‘‘(B) if, by the end of the 30-day period
that begins with the date the letter is sent pur-
suant to subparagraph (A), the amount of the
arrearage has not decreased by at least a per-
centage amount specified by the State agency,
the State seek a court order requiring the
noncustodial parent—
‘‘(i) to participate in a job search pro-
gram established by the State, for not less
than 2 weeks and not more than 4 weeks;
and
‘‘(ii) if, by the end of the 30-day pe-
riod beginning on the date the order is en-
tered, the amount of the arrearage has not
decreased by at least a percentage amount
specified by the State agency, to partici-
pate in a work program established by the
State, for not less than 35 hours per week
(or, if the program also requires job
search, for not less than 30 hours per
week).’’.
TITLE VI—WELFARE
RESTRICTIONS FOR ALIENS
SEC. 601. INELIGIBILITY OF ALIENS FOR PUBLIC WELFARE
ASSISTANCE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsections (b) and
(c), no alien shall be eligible for any program referred to
in subsection (d).
(b) EXCEPTIONS.—
(1) REFUGEE
EXCEPTION.—Subsection (a)
shall not apply to an alien admitted to the United
States as a refugee under section 207 of the Immi-
gration and Nationality Act until 6 years after the
date of such alien’s arrival into the United States.
(2) AGED
EXCEPTION.—Subsection (a) shall
not apply to an alien who—
(A) has been lawfully admitted to the
United States for permanent residence;
(B) is over 75 years of age; and
(C) has resided in the United States for at
least 5 years.
(3) CURRENT
RESIDENT
EXCEPTION.—Sub-
section (a) shall not apply to the eligibility of an
alien for a program referred to in subsection (d)
until 1 year after the date of the enactment of this
Act if, on such date of enactment, the alien is resid-
ing in the United States and is eligible for the pro-
gram.
(c) PROGRAMS FOR WHICH ALIENS MAY BE ELIGI-
BLE.—The limitation under subsection (a) shall not apply
to the following programs: Medical assistance with respect
to emergency services (as defined for purposes of section
1916(a)(2)(D) of the Social Security Act).
(d) PROGRAMS FOR WHICH ALIENS ARE INELI-
GIBLE.—The programs referred to in this subsection are
the following:
(1) The program of medical assistance under
title XIX of the Social Security Act, except emer-
gency services as provided in subsection (c).
(2) The Maternal and Child Health Services
Block Grant Program under title V of the Social Se-
curity Act.
(3) The program established in section 330 of
the Public Health Service Act (relating to commu-
nity health centers).
(4) The program established in section 1001 of
the Public Health Service Act (relating to family
planning methods and services).
(5) The program established in section 329 of
the Public Health Service Act (relating to migrant
health centers).
(6) The program of aid and services to needy
families with children under part A of title IV of the
Social Security Act.
(7) The child welfare services program under
part B of title IV of the Social Security Act.
(8) The supplemental security income program
under title XVI of the Social Security Act.
(9) The program of foster care and adoption
assistance under part E of title IV of the Social Se-
curity Act.
(10) The food stamp program, as defined in
section 3(h) of the Food Stamp Act of 1977 (7
U.S.C. 2012(h)).
(11) The school lunch program carried out
under the National School Lunch Act (42 U.S.C.
1751 et seq.).
(12) The special supplemental food program for
women, infants, and children carried out under sec-
tion 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786).
(13) The nutrition programs carried out under
part C of title III of the Older Americans Act of
1965 (42 U.S.C. 3030e et seq.).
(14) The school breakfast program carried out
under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773).
(15) The child and adult care food program
carried out under section 17 of the National School
Lunch Act (42 U.S.C. 1766).
(16) The Emergency Food Assistance Act of
1983 (7 U.S.C. 612c note).
(17) The summer food service program for chil-
dren carried out under section 13 of the National
School Lunch Act (42 U.S.C. 1761).
(18) The commodity supplemental food pro-
gram authorized by section 4(a) of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C.
612c note).
(19) The special milk program carried out
under section 3 of the Child Nutrition Act of 1966
(42 U.S.C. 1772).
(20) The program of rental assistance on behalf
of low-income families provided under section 8 of
the United States Housing Act of 1937 (42 U.S.C.
1437f).
(21) The program of assistance to public hous-
ing under title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.).
(22) The loan program under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472).
(23) The program of interest reduction pay-
ments pursuant to contracts entered into by the Sec-
retary of Housing and Urban Development under
section 236 of the National Housing Act (12 U.S.C.
1715z–1).
(24) The program of loans for rental and coop-
erative housing under section 515 of the Housing
Act of 1949 (42 U.S.C. 1485).
(25) The program of rental assistance pay-
ments pursuant to contracts entered into under sec-
tion 521(a)(2)(A) of the Housing Act of 1949 (42
U.S.C. 1490a(a)(2)(A)).
(26) The program of assistance payments on
behalf of homeowners under section 235 of the Na-
tional Housing Act (12 U.S.C. 1715z).
(27) The program of rent supplement payments
on behalf of qualified tenants pursuant to contracts
entered into under section 101 of the Housing and
Urban Development Act of 1965 (12 U.S.C. 1701s).
(28) The loan and grant programs under sec-
tion 504 of the Housing Act of 1949 (42 U.S.C.
1474) for repairs and improvements to rural dwell-
ings.
(29) The loan and assistance programs under
sections 514 and 516 of the Housing Act of 1949
(42 U.S.C. 1484, 1486) for housing for farm labor.
(30) The program of grants for preservation
and rehabilitation of housing under section 533 of
the Housing Act of 1949 (42 U.S.C. 1490m).
(31) The program of grants and loans for mu-
tual and self-help housing and technical assistance
under section 523 of the Housing Act of 1949 (42
U.S.C. 1490c).
(32) The program of site loans under section
524 of the Housing Act of 1949 (42 U.S.C. 1490d).
(33) The program under part B of title IV of
the Higher Education Act of 1965.
(34) The program under subpart 1 of part A of
title IV of the Higher Education Act of 1965.
(35) The program under part C of title IV of
the Higher Education Act of 1965.
(36) The program under subpart 3 of part A of
title IV of the Higher Education Act of 1965.
(37) The program under part E of title IV of
the Higher Education Act of 1965.
(38) The program under subpart 4 of part A of
title IV of the Higher Education Act of 1965.
(39) The program under title IX of the Higher
Education Act of 1965.
(40) The program under subpart 5 of part A of
title IV of the Higher Education Act of 1965.
(41) The programs established in sections 338A
and 338B of the Public Health Service Act and the
programs established in part A of title VII of such
Act (relating to loans and scholarships for education
in the health professions).
(42) The program established in section
317(j)(1) of the Public Health Service Act (relating
to grants for immunizations against vaccine-prevent-
able diseases).
(43) The program established in section 317A
of the Public Health Service Act (relating to grants
for screening, referrals, and education regarding
lead poisoning in infants and children).
(44) The program established in part A of title
XIX of the Public Health Service Act (relating to
block grants for preventive health and health serv-
ices).
(45) The programs established in subparts I
and II of part B of title XIX of the Public Health
Service Act.
(46)(A) The program of training for disadvan-
taged adults and youth under part A of title II of
the Job Training Partnership Act (29 U.S.C. 1601
et seq.), as in effect before July 1, 1993.
(B)(i) The program of training for disadvan-
taged adults under part A of title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.),
as in effect on and after July 1, 1993.
(ii) The program of training for disadvantaged
youth under part C of title II of the Job Training
Partnership Act (29 U.S.C. 1641 et seq.), as in ef-
fect on and after July 1, 1993.
(47) The Job Corps program under part B of
title IV of the Job Training Partnership Act (29
U.S.C. 1692 et seq.).
(48) The summer youth employment and train-
ing programs under part B of title II of the Job
Training Partnership Act (29 U.S.C. 1630 et seq.).
(49) The programs carried out under the Older
American Community Service Employment Act (42
U.S.C. 3001 et seq.).
(50) The programs under title III of the Older
Americans Act of 1965.
(51) The programs carried out under part B of
title II of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5011–5012).
(52) The programs carried out under part C of
title II of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5013).
(53) The program under the Low-Income En-
ergy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.).
(54) The weatherization assistance program
under title IV of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6851).
(55) The program of block grants to States for
social services under title XX of the Social Security
Act.
(56) The programs carried out under the Com-
munity Services Block Grant Act (42 U.S.C. 9901
et seq.).
(57) The program of legal assistance to eligible
clients and other programs under the Legal Services
Corporation Act (42 U.S.C. 2996 et seq.).
(58) The program for emergency food and shel-
ter grants under title III of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11331 et
seq.).
(59) The programs carried out under the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
(60) A State program for providing child care
under section 402(i) of the Social Security Act.
(61) The program of State legalization impact-
assistance grants (SLIAG) under section 204 of the
Immigration Reform and Control Act of 1986.
(e) NOTIFICATION OF ALIENS.—Any Federal agency
that administers a program referred to in subsection (d)
shall, directly or through the States, notify each alien re-
ceiving benefits under the program whose eligibility for the
program is or will be terminated by reason of this section.
SEC. 602. STATE AFDC AGENCIES REQUIRED TO PROVIDE
INFORMATION ON ILLEGAL ALIENS TO THE
IMMIGRATION AND NATURALIZATION SERV-
ICE.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by sections 201(a)(1), 302, 303, 304,
305, 307, and 309(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(51);
(2) by striking the period at the end of para-
graph (52) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (52) the fol-
lowing:
‘‘(53) require the State agency to provide to the
Immigration and Naturalization Service the name,
address, and other identifying information that the
agency has with respect to any individual unlawfully
in the United States any of whose children is a citi-
zen of the United States.’’.
TITLE VII—CONTROLLING
WELFARE COSTS
SEC. 701. CAPS ON CERTAIN MEANS-TESTED PROGRAMS.
(a) CONTENT OF BUDGET RESOLUTIONS.—Section
301(a) of the Congressional Budget Act of 1974 is amend-
ed by adding at the end the following new sentence: ‘‘The
concurrent resolution shall also include an aggregate out-
lay figure for all covered means-tested programs and an
outlay limit for each such means-tested program that re-
stricts the aggregate rate of growth, adjusted for inflation,
for all such means-tested programs to 2 percent per fiscal
year. Inflation shall be measured by the average of the
estimated consumer price index for all urban consumers
for a fiscal year divided by the average index for the prior
fiscal year.’’.
(b) 
COMMITTEE
ALLOCATIONS.—(1) 
Section
602(a)(1)(A) of the Congressional Budget Act of 1974 is
amended by striking ‘‘and’’ at the end of clause (ii), by
striking the semicolon and inserting ‘‘, and’’ at the end
of clause (iii), and by adding after clause (iii) the following
new clause:
‘‘(iv) total outlays for all covered
means-tested programs (as defined by sec-
tion 253A of the Balanced Budget and
Emergency Deficit Control Act of 1985);’’.
(2) Section 602(a)(2) of the Congressional Budget
Act of 1974 is amended by striking ‘‘and’’ at the end of
subparagraph (B), by inserting ‘‘and’’ at the end of sub-
paragraph (C), and by adding after subparagraph (C) the
following new subparagraph:
‘‘(D) total outlays for all covered means-
tested programs (as defined by section 253A of
the Balanced Budget and Emergency Deficit
Control Act of 1985);’’.
(c) PRESIDENT’S BUDGET.—Section 1105(a) of title
31, United States Code, is amended by adding at the end
the following new paragraph:
‘‘(29) an aggregate outlay figure for all covered
means-tested programs (as defined by section 253A
of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985) and an outlay limit for each such
means-tested program that restricts the aggregate
rate of growth, adjusted for inflation, for all such
means-tested programs to 2 percent per fiscal
year.’’.
SEC. 702. SEQUESTRATION OF FEDERAL SPENDING TO EN-
FORCE SPENDING CAPS ON MEANS-TESTED
PROGRAMS.
(a) SEQUESTRATION TO ENFORCE SPENDING CAPS
ON MEANS-TESTED PROGRAMS.—Part C of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended by adding after section 253 the following new
section:
‘‘SEC. 253A. SEQUESTRATION TO ENFORCE SPENDING CAPS
ON MEANS-TESTED PROGRAMS.
‘‘(a) SEQUESTRATION.—
‘‘(1) IN GENERAL.—Within 15 days after Con-
gress adjourns to end a session, and on the same
day as a sequestration (if any) under sections 251,
252, and 253, but after any sequestration required
by those sections, following the procedures set forth
under section 252 there shall be a sequestration of
all accounts for covered means-tested programs to
achieve reductions in the fiscal year 1994, 1995,
1996, 1997, or 1998 outlays, as the case may be,
sufficient to eliminate a budget-year breach (if any)
of the aggregate spending cap on covered means-
tested programs for that fiscal year as calculated
under paragraph (2).
‘‘(2) COMPUTATION OF AGGREGATE SPENDING
CAP
ON
COVERED
MEANS-TESTED
PROGRAMS.—
Within 5 days after Congress adjourns to end a ses-
sion, OMB shall calculate an aggregate outlay figure
for all covered means-tested programs and an outlay
limit for each such means-tested program that re-
100
stricts the aggregate rate of growth, adjusted for in-
flation, for all such means-tested programs to 2 per-
cent per fiscal year. Inflation shall be measured by
the average of the estimated consumer price index
for all urban consumers for a fiscal year divided by
the average index for the prior fiscal year.’’.
‘‘(b) APPLICABILITY.—Following the procedures set
forth under section 252, each account for a covered
means-tested program shall be reduced by a dollar amount
calculated by multiplying the level of budgetary resources
in that account at that time by the uniform percentage
necessary to carry out subsection (a).
‘‘(c) DEFINITION.—As used in this section, the term
‘covered means-tested program’ refers to the following:
‘‘(1) Payments to States under the program of
aid to families with dependent children under part A
of title IV of the Social Security Act.
‘‘(2) The program of supplemental security in-
come benefits under title XVI of the Social Security
Act.
‘‘(3) The food stamp program.
‘‘(4) The rental assistance program under sec-
tion 8 of the United States Housing Act of 1937.
‘‘(5) Assistance for public housing under the
United States Housing Act of 1937.
101
‘‘(6) The earned income tax credit.
‘‘(d) OMB REPORT.—On the date specified in sub-
section (a), OMB shall issue a special sequestration report
that sets forth the sequestration percentage necessary to
achieve the required reduction in accounts under this
section.
‘‘(e) PRESIDENTIAL ORDER.—On the date specified
in subsection (a), the President shall issue an order fully
implementing without change all sequestrations required
by the OMB calculations set forth in that report. This
order shall be effective on issuance.’’.
(b) SCOREKEEPING.—None of the changes in receipts
and direct spending resulting from this Act shall be en-
tered on the paygo scorecard under section 252 of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
and none of the savings in fiscal year 1994 discretionary
outlays made by this Act shall be counted for the purposes
of section 251 of that Act.
TITLE 
VIII—CONSOLIDATED
BLOCK 
GRANT 
TO 
STATES
FOR FOOD ASSISTANCE
SEC. 801. FOOD ASSISTANCE BLOCK GRANT PROGRAM.
(a) AUTHORITY TO MAKE BLOCK GRANTS.—The
Secretary of Agriculture shall make grants in accordance
with this section to States to provide food assistance to
102
individuals who are economically disadvantaged and to in-
dividuals who are members of economically disadvantaged
families.
(b) DISTRIBUTION OF FUNDS.—
(1) ALLOTMENTS TO STATES.—Subject to para-
graph (2), the funds appropriated to carry out this
section for any fiscal year shall be allotted among
the States as follows:
(A) Of the aggregate amount to be distrib-
uted under this section, .21 percent shall be re-
served for grants to Guam, the Virgin Islands
of the United States, American Samoa, the
Commonwealth of the Northern Mariana Is-
lands, the Republic of the Marshall Islands, the
Federated States of Micronesia, Palau.
(B) Of the aggregate amount to be distrib-
uted under this section, .24 percent shall be re-
served for grants to tribal organizations that
have governmental jurisdiction over geographi-
cally defined areas and shall be allocated equi-
tably by the Secretary among such organiza-
tions.
(C) The remainder of such aggregate
amount shall be allocated among the remaining
States. The amount allocated to each of the re-
103
maining States shall bear the same proportion
to such remainder as the number of resident in-
dividuals in such State who are economically
disadvantaged separately or as members of eco-
nomically disadvantaged families bears to the
aggregate number of resident individuals in all
such remaining States who are economically
disadvantaged separately or as members of eco-
nomically disadvantaged families.
(2) LIMITATION.—After September 30, 1995,
the aggregate amount allotted under paragraph (1)
for any fiscal year shall not exceed the aggregate
amount allotted under paragraph (1) for the then
preceding fiscal year adjusted by the Secretary to re-
flect—
(A) the percentage change in population
during the 1-year period ending June 30 of
such preceding fiscal year, determined on the
basis of the most current information available
in the Current Population Reports, P25 series
(as adjusted to include overseas members of the
armed forces of the United States), published
by the Bureau of the Census, and
(B) the percentage change in the food at
home component of the Consumer Price Index
104
For All Urban Consumers for the 1-year period
ending May 31 of such preceding fiscal year,
(b) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi-
ble to receive a grant in the amount allotted to a State
for a fiscal year, such State shall submit to the Secretary
an application in such form, and containing such informa-
tion and assurances as the Secretary may require by rule,
including—
(1) an assurance that such grant will be ex-
pended by the State to provide food assistance to
resident individuals in such State who are economi-
cally disadvantaged separately or as members of eco-
nomically disadvantaged families,
(2) not more than 5 percent of such grant will
be expended by the State for administrative costs in-
curred to provide assistance under this section,
(3) not less than 12 percent of each grant re-
ceived from funds allotted for fiscal years 1995
through 1999 will be expended to provide food as-
sistance and nutrition education to pregnant women,
postpartum women, breastfeeding women, infants,
and young children, and
(4) not less than 20 percent of each grant re-
ceived from funds allotted for fiscal years 1995
through 1999 will be expended to provide—
105
(A) nonprofit school breakfast programs
for students from economically disadvantaged
families,
(B) milk in nonprofit schools and in non-
profit nursery schools, child care centers, settle-
ment houses, summer camps, and similar insti-
tutions devoted to the care and training of chil-
dren, to children from economically disadvan-
taged families,
(C) nonprofit school lunch programs for
students from economically disadvantaged fami-
lies,
(D) expanded food service programs in in-
stitutions providing child care for children from
economically disadvantaged families, and
(E) summer food service programs carried
out by nonprofit food authorities, local govern-
ments, nonprofit higher education insititutions
participating in the National Youth Sports Pro-
gram, and residential nonprofit summer camps,
to provide meals to children from economically
disadvantaged families.
(c) AUTHORITY TO REDUCE CERTAIN GRANTS RE-
QUIREMENTS.—At the request of a State for a particular
fiscal year, the Secretary may reduce a percentage require-
106
ment specified in paragraph (3) or (4) of subsection (b)
if the Secretary determines that the purpose described in
such paragraph will be adequately carried out by such
State without expending the full amount of funds required
by such paragraph.
(d) 
AUTHORIZATION
OF
APPROPRIATIONS.—(1)
There are authorized to be appropriated to carry out this
section $35,600,000,000 for fiscal year 1995 and such
sums as may be necessary for fiscal years 1996, 1997,
1998, and 1999.
(2) For the purpose of affording adequate notice of
funding available under this section, an appropriation to
carry out this section is authorized to be included in an
appropriation Act for the fiscal year preceding the fiscal
year for which such appropriation is available for obliga-
tion.
SEC. 802. AVAILABILITY OF FEDERAL COUPON SYSTEM TO
STATES.
(a) ISSUANCE, PURCHASE, AND USE OF COUPONS.—
The Secretary shall issue, and make available for purchase
by States, coupons for the retail purchase of food from
retail food stores that are approved in accordance with
subsection (b). Coupons issued, purchased, and used as
provided in this section shall be redeemable at face value
by the Secretary through the facilities of the Treasury of
107
the United States. The purchase price of each coupon is-
sued under this subsection shall be the face value of such
coupon.
(b) APPROVAL
OF
RETAIL
FOOD
STORES
AND
WHOLESALE FOOD CONCERNS.—(1) Regulations issued
pursuant to this section shall provide for the submission
of applications for approval by retail food stores and
wholesale food concerns which desire to be authorized to
accept and redeem coupons under this section. In deter-
mining the qualifications of applicants, there shall be con-
sidered among such other factors as may be appropriate,
the following:
(A) The nature and extent of the food business
conducted by the applicant.
(B) The volume of coupon business which may
reasonably be expected to be conducted by the appli-
cant food store or wholesale food concern.
(C) The business integrity and reputation of
the applicant.
Approval of an applicant shall be evidenced by the issu-
ance to such applicant of a nontransferable certificate of
approval. The Secretary is authorized to issue regulations
providing for a periodic reauthorization of retail food
stores and wholesale food concerns.
108
(2) A buyer or transferee (other than a bona fide
buyer or transferee) of a retail food store or wholesale food
concern that has been disqualified under subsection (d)
may not accept or redeem coupons until the Secretary re-
ceives full payment of any penalty imposed on such store
or concern.
(3) Regulations issued pursuant to this section shall
require an applicant retail food store or wholesale food
concern to submit information which will permit a deter-
mination to be made as to whether such applicant quali-
fies, or continues to qualify, for approval under this sec-
tion or the regulations issued pursuant to this section.
Regulations issued pursuant to this section shall provide
for safeguards which limit the use or disclosure of infor-
mation obtained under the authority granted by this sub-
section to purposes directly connected with administration
and enforcement of this section or the regulations issued
pursuant to this section, except that such information may
be disclosed to and used by States that purchase such
coupons.
(4) Any retail food store or wholesale food concern
which has failed upon application to receive approval to
participate in the food stamp program may obtain a hear-
ing on such refusal as provided in subsection (f).
109
(c) REDEMPTION OF COUPONS.—Regulations issued
under this section shall provide for the redemption of cou-
pons accepted by retail food stores through approved
wholesale food concerns or through financial institutions
which are insured by the Federal Deposit Insurance Cor-
poration, or which are insured under the Federal Credit
Union Act (12 U.S.C. 1751 et seq.) and have retail food
stores or wholesale food concerns in their field of member-
ship, with the cooperation of the Treasury Department,
except that retail food stores defined in section 804(9)(D)
shall be authorized to redeem their members’ food coupons
prior to receipt by the members of the food so purchased,
and publicly operated community mental health centers or
private nonprofit organizations or institutions which serve
meals to narcotics addicts or alcoholics in drug addiction
or alcoholic treatment and rehabilitation programs, public
and private nonprofit shelters that prepare and serve
meals for battered women and children, public or private
nonprofit group living arrangements that serve meals to
disabled or blind residents, and public or private nonprofit
establishments, or public or private nonprofit shelters that
feed individuals who do not reside in permanent dwellings
and individuals who have no fixed mailing addresses shall
not be authorized to redeem coupons through financial in-
stitutions which are insured by the Federal Deposit Insur-
110
ance Corporation or the Federal Credit Union Act. No fi-
nancial institution may impose on or collect from a retail
food store a fee or other charge for the redemption of cou-
pons that are submitted to the financial institution in a
manner consistent with the requirements, other than any
requirements relating to cancellation of coupons, for the
presentation of coupons by financial institutions to the
Federal Reserve banks.
(d) CIVIL MONEY PENALTIES AND DISQUALIFICA-
TION OF RETAIL FOOD STORES AND WHOLESALE FOOD
CONCERNS.—(1) Any approved retail food store or whole-
sale food concern may be disqualified for a specified period
of time from further participation in the coupon program
under this section, or subjected to a civil money penalty
of up to $10,000 for each violation if the Secretary deter-
mines that its disqualification would cause hardship to in-
dividuals who receive coupons, on a finding, made as speci-
fied in the regulations, that such store or concern has vio-
lated this section or the regulations issued pursuant to this
section.
(2) Disqualification under paragraph (1) shall be—
(A) for a reasonable period of time, of no less
than 6 months nor more than 5 years, upon the first
occasion of disqualification;
111
(B) for a reasonable period of time, of no less
than 12 months nor more than 10 years, upon the
second occasion of disqualification; and
(C) permanent upon—
(i) the third occasion of disqualification,
(ii) the first occasion or any subsequent oc-
casion of a disqualification based on the pur-
chase of coupons or trafficking in coupons by a
retail food store or wholesale food concern, ex-
cept that the Secretary shall have the discretion
to impose a civil money penalty of up to
$20,000 for each violation (except that the
amount of civil money penalties imposed for
violations occurring during a single investiga-
tion may not exceed $40,000) in lieu of dis-
qualification under this subparagraph, for such
purchase of coupons or trafficking in coupons
that constitutes a violation of this section or the
regulations issued pursuant to this section, if
the Secretary determines that there is substan-
tial evidence (including evidence that neither
the ownership nor management of the store or
food concern was aware of, approved, benefited
from, or was involved in the conduct or ap-
proval of the violation) that such store or food
112
concern had an effective policy and program in
effect to prevent violations of this section and
such regulations, or
(iii) a finding of the sale of firearms, am-
munition, explosives, or controlled substance (as
defined in section 802 of title 21, United States
Code) for coupons, except that the Secretary
shall have the discretion to impose a civil money
penalty of up to $20,000 for each violation (ex-
cept that the amount of civil money penalties
imposed for violations occurring during a single
investigation may not exceed $40,000) in lieu of
disqualification under this subparagraph if the
Secretary determines that there is substantial
evidence (including evidence that neither the
ownership nor management of the store or food
concern was aware of, approved, benefited from,
or was involved in the conduct or approval of
the violation) that the store or food concern had
an effective policy and program in effect to pre-
vent violations of this section.
(3) The action of disqualification or the imposition
of a civil money penalty shall be subject to review as pro-
vided in subsection (f).
113
(4) As a condition of authorization to accept and re-
deem coupons issued under subsection (a), the Secretary
may require a retail food store or wholesale food concern
which has been disqualified or subjected to a civil penalty
pursuant to paragraph (1) to furnish a bond to cover the
value of coupons which such store or concern may in the
future accept and redeem in violation of this section. The
Secretary shall, by regulation, prescribe the amount,
terms, and conditions of such bond. If the Secretary finds
that such store or concern has accepted and redeemed cou-
pons in violation of this section after furnishing such bond,
such store or concern shall forfeit to the Secretary an
amount of such bond which is equal to the value of cou-
pons accepted and redeemed by such store or concern in
violation of this section. Such store or concern may obtain
a hearing on such forfeiture pursuant to subsection (f).
(5)(A) In the event any retail food store or wholesale
food concern that has been disqualified under paragraph
(1) is sold or the ownership thereof is otherwise trans-
ferred to a purchaser or transferee, the person or persons
who sell or otherwise transfer ownership of the retail food
store or wholesale food concern shall be subjected to a civil
money penalty in an amount established by the Secretary
through regulations to reflect that portion of the disquali-
fication period that has not yet expired. If the retail food
114
store or wholesale food concern has been disqualified per-
manently, the civil money penalty shall be double the pen-
alty for a ten-year disqualification period, as calculated
under regulations issued by the Secretary. The disquali-
fication period imposed under paragraph (2) shall con-
tinue in effect as to the person or persons who sell or oth-
erwise transfer ownership of the retail food store or whole-
sale food concern notwithstanding the imposition of a civil
money penalty under this paragraph.
(B) At any time after a civil money penalty imposed
under subparagraph (A) has become final under sub-
section (f)(1), the Secretary may request the Attorney
General to institute a civil action against the person or
persons subject to the penalty in a district court of the
United States for any district in which such person or per-
sons are found, reside, or transact business to collect the
penalty and such court shall have jurisdiction to hear and
decide such action. In such action, the validity and amount
of such penalty shall not be subject to review.
(C) The Secretary may impose a fine against any re-
tail food store or wholesale food concern that accepts cou-
pons that are not accompanied by the corresponding book
cover, other than the denomination of coupons used for
making change as specified in regulations issued under
this section. The amount of any such fine shall be estab-
115
lished by the Secretary and may be assessed and collected
in accordance with regulations issued under this section
separately or in combination with any fiscal claim estab-
lished by the Secretary. The Attorney General of the Unit-
ed States may institute judicial action in any court of com-
petent jurisdiction against the store or concern to collect
the fine.
(6) The Secretary may impose a fine against any per-
son not approved by the Secretary to accept and redeem
coupons who violates this section or a regulation issued
under this section, including violations concerning the ac-
ceptance of coupons. The amount of any such fine shall
be established by the Secretary and may be assessed and
collected in accordance with regulations issued under this
section separately or in combination with any fiscal claim
established by the Secretary. The Attorney General of the
United States may institute judicial action in any court
of competent jurisdiction against the person to collect the
fine.
(e) COLLECTION AND DISPOSITION OF CLAIMS.—The
Secretary shall have the power to determine the amount
of and settle and adjust any claim and to compromise or
deny all or part of any such claim or claims arising under
this section or the regulations issued pursuant to this sec-
tion, including, but not limited to, claims arising from
116
fraudulent and nonfraudulent overissuances to recipients,
including the power to waive claims if the Secretary deter-
mines that to do so would serve the purposes of this sec-
tion. Such powers with respect to claims against recipients
may be delegated by the Secretary to State agencies.
(f) ADMINISTRATIVE AND JUDICIAL REVIEW.—(1)
Whenever—
(A) an application of a retail food store or
wholesale food concern for approval to accept and
redeem coupons issued under subsection (a) is de-
nied pursuant to this section,
(B) a retail food store or wholesale food con-
cern is disqualified or subjected to a civil money
penalty under subsection (d),
(C) all or part of any claim of a retail food
store or wholesale food concern is denied under sub-
section (e), or
(D) a claim against a State is stated pursuant
to subsection (e),
notice of such administrative action shall be issued to the
retail food store, wholesale food concern, or State involved.
Such notice shall be delivered by certified mail or personal
service. If such store, concern, or State is aggrieved by
such action, it may, in accordance with regulations pro-
mulgated under this section, within 10 days of the date
117
of delivery of such notice, file a written request for an
opportunity to submit information in support of its posi-
tion to such person or persons as the regulations may des-
ignate. If such a request is not made or if such store, con-
cern, or State fails to submit information in support of
its position after filing a request, the administrative deter-
mination shall be final. If such request is made by such
store, concern, or State such information as may be sub-
mitted by such store, concern, or State as well as such
other information as may be available, shall be reviewed
by the person or persons designated by the Secretary, who
shall, subject to the right of judicial review hereinafter
provided, make a determination which shall be final and
which shall take effect 30 days after the date of the deliv-
ery or service of such final notice of determination. If such
store, concern, or State feels aggrieved by such final deter-
mination, it may obtain judicial review thereof by filing
a complaint against the United States in the United
States court for the district in which it resides or is en-
gaged in business, or, in the case of a retail food store
or wholesale food concern, in any court of record of the
State having competent jurisdiction, within 30 days after
the date of delivery or service of the final notice of deter-
mination upon it, requesting the court to set aside such
determination. The copy of the summons and complaint
118
required to be delivered to the official or agency whose
order is being attacked shall be sent to the Secretary or
such person or persons as the Secretary may designate
to receive service of process. The suit in the United States
district court or State court shall be a trial de novo by
the court in which the court shall determine the validity
of the questioned administrative action in issue. If the
court determines that such administrative action is in-
valid, it shall enter such judgment or order as it deter-
mines is in accordance with the law and the evidence. Dur-
ing the pendency of such judicial review, or any appeal
therefrom, the administrative action under review shall be
and remain in full force and effect, unless on application
to the court on not less than ten days’ notice, and after
hearing thereon and a consideration by the court of the
applicant’s likelihood of prevailing on the merits and of
irreparable injury, the court temporarily stays such ad-
ministrative action pending disposition of such trial or
appeal.
(g) VIOLATIONS AND ENFORCEMENT.—(1) Subject
to paragraph (2), whoever knowingly uses, transfers, ac-
quires, alters, or possesses coupons in any manner con-
trary to this section or the regulations issued pursuant
to this section shall, if such coupons are of a value of
$5,000 or more, be guilty of a felony and shall be fined
119
not more than $250,000 or imprisoned for not more than
20 years, or both, and shall, if such coupons are of a value
of $100 or more, but less than $5,000, be guilty of a fel-
ony and shall, upon the first conviction thereof, be fined
not more than $10,000 or imprisoned for not more than
5 years, or both, and, upon the second and any subsequent
conviction thereof, shall be imprisoned for not less than
6 months nor more than 5 years and may also be fined
not more than $10,000 or, if such coupons are of a value
of less than $100, shall be guilty of a misdemeanor, and,
upon the first conviction thereof, shall be fined not more
than $1,000 or imprisoned for not more than one year,
or both, and upon the second and any subsequent convic-
tion thereof, shall be imprisoned for not more than one
year and may also be fined not more than $1,000.
(2) In the case of any individual convicted of an of-
fense under paragraph (1), the court may permit such in-
dividual to perform work approved by the court for the
purpose of providing restitution for losses incurred by the
United States and the State as a result of the offense for
which such individual was convicted. If the court permits
such individual to perform such work and such individual
agrees thereto, the court shall withhold the imposition of
the sentence on the condition that such individual perform
120
the assigned work. Upon the successful completion of the
assigned work the court may suspend such sentence.
(3) Whoever presents, or causes to be presented, cou-
pons for payment or redemption of the value of $100 or
more, knowing the same to have been received, trans-
ferred, or used in any manner in violation of this section
or the regulations issued under to this section, shall be
guilty of a felony and, upon the first conviction thereof,
shall be fined not more than $20,000 or imprisoned for
not more than 5 years, or both, and, upon the second and
any subsequent conviction thereof, shall be imprisoned for
not less than one year nor more than 5 years and may
also be fined not more than $20,000, or, if such coupons
are of a value of less than $100, shall be guilty of a mis-
demeanor and, upon the first conviction thereof, shall be
fined not more than $1,000 or imprisoned for not more
than one year, or both, and, upon the second and any sub-
sequent conviction thereof, shall be imprisoned for not
more than one year and may also be fined not more than
$1,000.
SEC. 803. AUTHORITY TO SELL FEDERAL SURPLUS COM-
MODITIES.
Notwithstanding any other provision of law, the Sec-
retary of Agriculture and the Commodity Credit Corpora-
tion may sell surplus commodities and surplus foodstuffs
121
to the States to provide food assistance to individuals who
are economically disadvantaged and to individuals who are
members of economically disadvantaged families.
SEC. 804. DEFINITIONS.
For purposes of this title—
(1) the term ‘‘breastfeeding woman’’ means
women 
up 
to 
year 
postpartum 
who 
are
breastfeeding their infants,
(2) the term ‘‘coupon’’ means any coupon,
stamp, or type of certificate, but does not include
currency,
(3) the term ‘‘economically disadvantaged’’
means an individual or a family, as the case may be,
whose income does not exceed the most recent lower
living standard income level published by the De-
partment of Labor,
(4) the term ‘‘elderly or disabled individual’’
means an individual who—
(A) is 60 years of age or older,
(B)(i) receives supplemental security in-
come benefits under title XVI of the Social Se-
curity Act (42 U.S.C. 1381 et seq.), or Feder-
ally or State administered supplemental benefits
of the type described in section 212(a) of Public
Law 93–66 (42 U.S.C. 1382 note), or
122
(ii) receives Federally or State adminis-
tered supplemental assistance of the type de-
scribed in section 1616(a) of the Social Security
Act (42 U.S.C. 1382e(a)), interim assistance
pending receipt of supplemental security in-
come, 
disability-related 
medical 
assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.), or disability-based State
general assistance benefits, if the Secretary de-
termines that such benefits are conditioned on
meeting disability or blindness criteria at least
as stringent as those used under title XVI of
the Social Security Act,
(C) receives disability or blindness pay-
ments under title I, II, X, XIV, or XVI of the
Social Security Act (42 U.S.C. 301 et seq.) or
receives disability retirement benefits from a
governmental agency because of a disability
considered permanent under section 221(i) of
the Social Security Act (42 U.S.C. 421(i)),
(D) is a veteran who—
(i) has a service-connected or non-
service-connected disability which is rated
as total under title 38, United States Code,
or
123
(ii) is considered in need of regular
aid and attendance or permanently house-
bound under such title,
(E) is a surviving spouse of a veteran
and—
(i) is considered in need of regular aid
and attendance or permanently house-
bound under title 38, United States Code,
or
(ii) is entitled to compensation for a
service-connected death or pension benefits
for a non-service-connected death under
title 38, United States Code, and has a
disability considered permanent under sec-
tion 221(i) of the Social Security Act (42
U.S.C. 421(i)),
(F) is a child of a veteran and—
(i) is considered permanently incapa-
ble of self-support under section 414 of
title 38, United States Code, or
(ii) is entitled to compensation for a
service-connected death or pension benefits
for a non-service-connected death under
title 38, United States Code, and has a
disability considered permanent under sec-
124
tion 221(i) of the Social Security Act (42
U.S.C. 421(i)), or
(G) is an individual receiving an annuity
under section 2(a)(1)(iv) or 2(a)(1)(v) of the
Railroad Retirement Act of 1974 (45 U.S.C.
231a(a)(1)(iv) or 231a(a)(1)(v)), if the individ-
ual’s service as an employee under the Railroad
Retirement Act of 1974, after December 31,
1936, had been included in the term ‘‘employ-
ment’’ as defined in the Social Security Act (42
U.S.C. 301 et seq.), and if an application for
disability benefits had been filed,
(5) the term ‘‘food’’ means, for purposes of sec-
tion 3 only—
(A) any food or food product for home con-
sumption except alcoholic beverages, tobacco,
and hot foods or hot food products ready for
immediate consumption other than those au-
thorized pursuant to subparagraphs (C), (D),
(E), (G), (H), and (I),
(B) seeds and plants for use in gardens to
produce food for the personal consumption of
the eligible individuals,
(C) in the case of those persons who are
60 years of age or over or who receive supple-
125
mental security income benefits or disability or
blindness payments under title I, II, X, XIV, or
XVI of the Social Security Act (42 U.S.C. 1381
et seq.), and their spouses, meals prepared by
and served in senior citizens’ centers, apart-
ment buildings occupied primarily by such per-
sons, public or private nonprofit establishments
(eating or otherwise) that feed such persons,
private establishments that contract with the
appropriate agency of the State to offer meals
for such persons at concessional prices, and
meals prepared for and served to residents of
federally subsidized housing for the elderly,
(D) in the case of persons 60 years of age
or over and persons who are physically or men-
tally handicapped or otherwise so disabled that
they are unable adequately to prepare all of
their meals, meals prepared for and delivered to
them (and their spouses) at their home by a
public or private nonprofit organization or by a
private establishment that contracts with the
appropriate State agency to perform such serv-
ices at concessional prices,
(E) in the case of narcotics addicts or alco-
holics, and their children, served by drug addic-
126
tion or alcoholic treatment and rehabilitation
programs, meals prepared and served under
such programs,
(F) in the case of eligible individuals living
in Alaska, equipment for procuring food by
hunting and fishing, such as nets, hooks, rods,
harpoons, and knives (but not equipment for
purposes of transportation, clothing, or shelter,
and not firearms, ammunition, and explosives)
if the Secretary determines that such individ-
uals are located in an area of the State where
it is extremely difficult to reach stores selling
food and that such individuals depend to a sub-
stantial extent upon hunting and fishing for
subsistence,
(G) in the case of disabled or blind recipi-
ents of benefits under title I, II, X, XIV, or
XVI of the Social Security Act, or are individ-
uals described in subparagraphs (B) through
(G) of paragraph (4), who are residents in a
public or private nonprofit group living arrange-
ment that serves no more than 16 residents and
is certified by the appropriate State agency or
agencies under regulations issued under section
1616(e) of the Social Security Act or under
127
standards determined by the Secretary to be
comparable to standards implemented by appro-
priate State agencies under such section (42
U.S.C. 1382e(e)), meals prepared and served
under such arrangement,
(H) in the case of women and children
temporarily residing in public or private non-
profit shelters for battered women and children,
meals prepared and served, by such shelters,
and
(I) in the case of individuals that do not
reside in permanent dwellings and individuals
that have no fixed mailing addresses, meals pre-
pared for and served by a public or private non-
profit establishment (approved by an appro-
priate State or local agency) that feeds such in-
dividuals and by private establishments that
contract with the appropriate agency of the
State to offer meals for such individuals at
concessional prices,
(6) the term ‘‘infants’’ means individuals under
1 year of age,
(7) the term ‘‘postpartum women’’ means
women during the 180-day period after the end of
their pregnancy,
128
(8) the term ‘‘pregnant women’’ means women
who have one or more fetuses in utero,
(9) the term ‘‘retail food store’’ means—
(A) an establishment or recognized depart-
ment thereof or house-to-house trade route,
over 50 percent of whose food sales volume, as
determined by visual inspection, sales records,
purchase records, or other inventory or account-
ing recordkeeping methods that are customary
or reasonable in the retail food industry, con-
sists of staple food items for home preparation
and consumption, such as meat, poultry, fish,
bread, cereals, vegetables, fruits, dairy prod-
ucts, and the like, but not including accessory
food items, such as coffee, tea, cocoa, carbon-
ated and uncarbonated drinks, candy, con-
diments, and spices,
(B) an establishment, organization, pro-
gram, or group living arrangement referred to
in subparagraph (C), (D), (E), (G), (H), or (I)
of paragraph (5),
(C) a store purveying the hunting and fish-
ing equipment described in paragraph (5)(F),
or
129
(D) any private nonprofit cooperative food
purchasing venture, including those in which
the members pay for food purchased prior to
the receipt of such food,
(10) the term ‘‘school’’ means an elementary,
intermediate, or secondary school,
(11) the term ‘‘Secretary’’ means the Secretary
of Agriculture,
(12) the term ‘‘State’’ means any of the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, Guam, the Virgin Islands of the
United States, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micro-
nesia, Palau, or a tribal organization that exercises
governmental jurisdiction over a geographically de-
fined area,
(13) the term ‘‘tribal organization’’ has the
meaning given it in section 4(l) of the Indian Self-
Determination and Education Assistance Act (25
U.S.C. 450b(l)), and
(14) the term ‘‘young children’’ means individ-
uals who are not less than 1 year of age and not
more than 5 years of age.
130
SEC. 805. REPEALERS; AMENDMENTS.
(a) REPEALERS.—The following Acts are repealed:
(1) The Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.).
(2) The Child Nutrition Act (42 U.S.C. 1771 et
seq.).
(3) The National School Lunch Act (42 U.S.C.
1751 et seq.)
(4) The Emergency Food Assistance Act of
1983 (7 U.S.C. 612c note).
(5) The Hunger Prevention Act of 1988 (Public
Law 100–435; 102 Stat. 1645).
(6) The Commodity Distribution Reform Act
and WIC Amendments of 1987 (Public Law 100–
237; 101 Stat. 1733).
(7) The Child Nutrition and WIC Reauthoriza-
tion Act of 1989 (Public Law 101–147; 103 Stat.
877).
(b) AMENDMENTS.—
(1) The Older Americans Act of 1965 (42
U.S.C. 3030a et seq.) is amended by striking sec-
tions 303(b) and 311, and part C of title III.
(2) Section 32 of the Act of August 24, 1935
(Public Law 320; 7 U.S.C. 612C) is amended—
(A) in the first undesignated paragraph—
131
(i) by striking ‘‘30 per centum’’ and
inserting ‘‘1.5 per centum’’, and
(ii) by striking ‘‘; (2)’’ and all that
follows through ‘‘Agriculture;’’, and
(B) by striking the last sentence.
(3) The Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note) is amended by
striking sections 4 and 5.
(4) The Agriculture and Food Act of 1981 (7
U.S.C. 1431) is amended by striking section 1114.
(5) Section 402 of the Mutual Security Act of
1954 (22 U.S.C. 1922) is amended by striking the
last sentence.
(6) The Act of September 6, 1958 (Public Law
83–931; 7 U.S.C. 1431b) is amended by striking
section 9.
(7) The Agricultural Act of 1965 (7 U.S.C.
1446a-1) is amended by striking section 709.
SEC. 806. EFFECTIVE DATE; APPLICATION OF REPEALERS
AND AMENDMENTS.
(a) EFFECTIVE DATES.—
(1) GENERAL
EFFECTIVE
DATE.—Except as
provided in subsection (b), this title and the amend-
ments made by this title shall take effect on the date
of the enactment of this Act.
132
(2) SPECIAL
EFFECTIVE
DATE.—The repeals
made by section 805 shall not take effect until the
first day of the first fiscal year for which funds are
appropriated more than 180 days in advance of such
fiscal year to carry out section 801.
(b) APPLICATION
OF
REPEALERS
AND
AMEND-
MENTS.—The repeals and amendments made by section
805 shall not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to financial as-
sistance provided under the Acts repealed before the
effective date of such section, and
(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such Acts.
TITLE IX—MISCELLANEOUS
SEC. 901. AFDC RECIPIENTS REQUIRED TO UNDERGO NEC-
ESSARY SUBSTANCE ABUSE TREATMENT AS A
CONDITION OF RECEIVING AFDC.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)) is amended by inserting after
paragraph (34) the following:
‘‘(35) provide that—
‘‘(A) as a condition of eligibility for aid
under the State plan, each applicant or recipi-
133
ent who the State determines is addicted to al-
cohol or drugs must be required to agree to
participate, and must maintain satisfactory par-
ticipation (as determined by the State), in an
appropriate addiction treatment program (if
available), and must be required to agree to
submit to tests for the presence of alcohol or
drugs, without advance notice, during and after
such participation; and
‘‘(B) each applicant or recipient who fails
to comply with any requirement imposed pursu-
ant to subparagraph (A) shall not be eligible for
such aid during the 2-year period that begins
with such failure to comply, but shall be consid-
ered to be receiving such aid for purposes of eli-
gibility for medical assistance under the State
plan approved under title XIX.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by subsection (a)
shall take effect on the date of the enactment of this
Act, and shall apply to payments under part A of
title IV of the Social Security Act for calendar quar-
ters ending after such date.
134
(2) DELAY PERMITTED IF STATE LEGISLATION
REQUIRED.—In the case of a State plan approved
under section 402(a) of the Social Security Act
which the Secretary of Health and Human Services
determines requires State legislation (other than leg-
islation appropriating funds) in order for the plan to
meet the additional requirement imposed by the
amendment made by subsection (a) of this section,
the State plan shall not be regarded as failing to
comply with the requirements of such section 402(a)
solely on the basis of the failure of the plan to meet
such additional requirement before the end of the 2-
year period that begins with the date of the enact-
ment of this Act.
SEC. 902. SSI BENEFITS FOR DRUG AND ALCOHOL ADDICTS.
(a) IN GENERAL.—Section 1614(a) of the Social Se-
curity Act (42 U.S.C. 1382c(a)) is amended by adding at
the end the following:
‘‘(5)(A) The Secretary shall identify all recipients of
benefits under this title by reason of disability whose dis-
ability is a result of addiction to illegal drugs.
‘‘(B) The Secretary shall periodically, on a random
basis, test each recipient identified under subparagraph
(A) to determine whether the recipient is using illegal
drugs.
135
‘‘(C) Notwithstanding any other provision of this
title, any individual who is determined under subpara-
graph (B) to be using illegal drugs, or who refuses to sub-
mit to testing as provided for under subparagraph (B),
shall not be eligible for benefits under this title.’’.
(b) REPRESENTATIVE PAYEE REFORMS.—
(1) AUTHORITY OF GOVERNMENT AGENCIES TO
BECOME
PAID
REPRESENTATIVE
PAYEES.—Section
1631(a)(2)(D)(ii) 
of 
such 
Act 
(42 
U.S.C.
1383(a)(2)(D)(ii)) is amended by adding at the end
the following: ‘‘The term ‘qualified organization’ also
includes any government agency that meets the re-
quirements of items (aa) and (bb) of subclause
(II).’’.
(2) MAXIMUM FEE PAYABLE TO REPRESENTA-
TIVE PAYEES.—Section 1631(a)(2)(D)(i) of such Act
(42 U.S.C. 1383(a)(2)(D)(i)) is amended by striking
‘‘the lesser of—’’ and all that follows and inserting
‘‘10 percent of the monthly benefit involved.’’.
SEC. 903. EVALUATION OF EDUCATION AND TRAINING PRO-
GRAMS.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall conduct research projects to exam-
ine the impact of education and training programs on the
ability of individuals to end participation in the program
136
of aid to families with dependent children under part A
of title IV of the Social Security Act, expenditures under
such program, wage rates, employment histories, and the
resumption of participation in such program of individuals
who had ended such participation. The Secretary shall col-
lect information with respect to any individual during a
period of not less than 5 years.
(b) SPECIAL RULE.—At least 1 research project con-
ducted under subsection (a) shall involve the random as-
signment of adult recipients of aid to families with depend-
ent children under part A of title IV of the Social Security
Act among—
(1) a group that is not required to participate
in any special activity;
(2) a group that is required to participate in
education or job training programs; and
(3) a group that is required to participate in a
job search program, or in a job search and a work
program.
SEC. 904. JOB SEARCH REQUIRED WHILE AFDC APPLICA-
TION IS PENDING.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by sections 201(a)(1), 302, 303, 304,
305, 307, 309(a), and 602 of this Act, is amended—
137
(1) by striking ‘‘and’’ at the end of paragraph
(52);
(2) by striking the period at the end of para-
graph (53) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (53) the fol-
lowing:
‘‘(54) unless the State has enacted a law ex-
empting itself from the application of this para-
graph, provide that—
‘‘(A) each applicant for aid under the
State plan must participate in job search activi-
ties while the application is pending; and
‘‘(B) the State agency must reimburse the
applicant for necessary transportation and child
care expenses incurred as a result of such par-
ticipation.’’.
SEC. 905. FRAUD AND ADMINISTRATIVE EFFICIENCY.
(a) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—The Secretary of Health and
Human 
Services 
may 
conduct 
demonstration
projects in several States to determine whether pro-
viding benefits based on need through the use of
electronic cards and automatic teller machines would
reduce administrative costs and fraud.
138
(2) REPORT
TO
THE
CONGRESS.—Within 5
years after the date of the enactment of this Act, the
Secretary shall submit to the Congress a report
that—
(A) summarizes the results of the projects;
and
(B) makes recommendations with respect
to whether and how more States might be re-
quired or encouraged to use electronic funds
transfer in providing benefits based on need.
(b) COMMISSION.—
(1) IN GENERAL.—The Secretary of Health and
Human Services (in this subsection referred to as
the ‘‘Secretary’’) shall establish a commission (in
this subsection referred to as the ‘‘Commission’’)
composed of heads of executive departments, expert
private individuals, and State administrators, to de-
termine the cost and feasibility of creating an inter-
state system to compare the social security account
numbers of all recipients of aid to families with de-
pendent children under State plans approved under
part A of title IV of the Social Security Act, so as
to identify any such recipients who are receiving
such aid from 2 or more States.
(2) BASIC PAY.—
139
(A) RATES OF PAY.—Except as provided
in paragraph (2), members of the Commission
shall each be paid at a rate not to exceed $200
for each day (including travel time) during
which they are engaged in the actual perform-
ance of duties of the Commission.
(B) PROHIBITION OF COMPENSATION OF
FEDERAL
EMPLOYEES.—Each member of the
Commission who is a full-time officer or em-
ployee of the United States may not receive ad-
ditional pay, allowances, or benefits by reason
of their service on the Commission.
(3) TRAVEL EXPENSES.—Each member of the
Commission shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States
Code.
(4) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Secretary, the head of any Federal de-
partment or agency may detail, on a reimbursable
basis, any of the personnel of that department or
agency to the Commission to assist it in carrying out
its duties under this subsection.
(5) OBTAINING OFFICIAL DATA.—The Commis-
sion may secure directly from any department or
140
agency of the United States information necessary
to enable it to carry out this subsection. Upon re-
quest of the Secretary, the head of that department
or agency shall furnish that information to the Com-
mission.
(6) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other departments and agen-
cies of the United States.
(7) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon request of the Secretary, the Administrator of
General Services shall provide to the Commission, on
a reimbursable basis, the administrative support
services necessary for the Commission to carry out
its responsibilities under this subsection.
(8) REPORT.—Within 2 years after the date of
the enactment of this Act, the Secretary shall submit
to the Congress a report that contains the findings
of the Commission.
(9) TERMINATION OF COMMISSION.—The Com-
mission shall terminate upon submission of the re-
port required by paragraph (8).
SEC. 906. PUBLIC HOUSING RENT REFORM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Public Housing Rent Reform and Empowerment Act’’.
141
(b) DETERMINATION
OF
INCOME
AND
RENT
CHARGES.—
(1) EXCLUSION FROM INCOME OF TAXES ON
EARNINGS.—Section 3(b)(5) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is
amended—
(A) by redesignating subparagraphs (A)
through (G) as subparagraphs (B) through (H),
respectively; and
(B) by inserting before subparagraph (B)
(as so redesignated by subparagraph (A) of this
paragraph) the following new subparagraph:
‘‘(A) with respect only to families residing
in public housing, the amount of any Federal,
State, and local income taxes paid on earned in-
come by members of the family and the amount
paid on earned income by members of the fam-
ily for the taxes imposed under sections 3101
and 3201(a) of the Internal Revenue Code of
1986;’’.
(2) PHA OPTION
TO
EXCLUDE
EARNED
IN-
COME.—Section 3(b)(5) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended
by adding at the end the following new flush
sentence:
142
‘‘At the option of a public housing agency, the agency may
(for all families residing in public housing administered
by the agency) exclude from consideration as income for
purposes of determining any limitation on the amount of
rent paid by a family, all or part of any increases in the
earned income of a family that results from the employ-
ment of a previously unemployed family member; except
that such increases in earned income may be excluded only
during the 2-year period beginning on the employment of
the family member.’’.
(3) APPLICABILITY TO INDIAN PUBLIC HOUS-
ING.—In accordance with section 201(b)(2) of the
United States Housing Act of 1937, the provisions
of this subsection shall apply to public housing de-
veloped or operated pursuant to a contract between
the Secretary and an Indian housing authority.
(c) PUBLIC HOUSING AUTHORITY MARKET RENT
DEMONSTRATION.—
(1) AUTHORITY.—At the request of a public
housing agency or resident management corporation,
the Secretary of Housing and Urban Development
may authorize the agency or corporation to carry out
a demonstration program under this subsection to
determine the feasibility and desirability of providing
public housing agencies and resident management
143
corporations the authority to establish policies for
the operation, maintenance, management, and devel-
opment (including modernization) of public housing
projects administered by the agency, without regard
to the requirements under the United States Hous-
ing Act of 1937 applicable to public housing. In es-
tablishing such policies, public housing agencies and
resident management corporations shall be subject
to the provisions of any applicable State and local
laws.
(2) REQUIRED FINDINGS.—The Secretary may
authorize a public housing agency or resident man-
agement corporation to carry out a demonstration
program under this subsection only if the Secretary
determines, with respect to the particular dem-
onstration program, that—
(A) the program is likely to assist in pro-
moting the objectives of the United States
Housing Act of 1937, encourage resident
empowerment, and reduce poverty in public
housing by improving the means by which eco-
nomic self-sufficiency may be achieved;
(B) the program, taken as a whole, will not
result in higher costs to the Federal Govern-