566
HR 3734 EAS
213A of the Immigration and Nationality Act (as
added by section 2423) on behalf of such alien.
(2) The income and resources of the spouse (if
any) of the person.
(b) APPLICATION.—Subsection (a) shall apply with re-
spect to an alien until such time as the alien—
(1) achieves United States citizenship through
naturalization pursuant to chapter 2 of title III of
the Immigration and Nationality Act; or
(2)(A) has worked 40 qualifying quarters of cov-
erage as defined under title II of the Social Security
Act or can be credited with such qualifying quarters
as provided under section 2435, and (B) did not re-
ceive any Federal means-tested public benefit (as de-
fined in section 2403(c)) during any such quarter.
(c) REVIEW OF INCOME AND RESOURCES OF ALIEN
UPON REAPPLICATION.—Whenever an alien is required to
reapply for benefits under any Federal means-tested public
benefits program, the applicable agency shall review the in-
come and resources attributed to the alien under subsection
(a).
(d) APPLICATION.—
(1) If on the date of the enactment of this Act,
a Federal means-tested public benefits program at-
tributes a sponsor’s income and resources to an alien
567
HR 3734 EAS
in determining the alien’s eligibility and the amount
of benefits for an alien, this section shall apply to any
such determination beginning on the day after the
date of the enactment of this Act.
(2) If on the date of the enactment of this Act,
a Federal means-tested public benefits program does
not attribute a sponsor’s income and resources to an
alien in determining the alien’s eligibility and the
amount of benefits for an alien, this section shall
apply to any such determination beginning 180 days
after the date of the enactment of this Act.
SEC. 2422. AUTHORITY FOR STATES TO PROVIDE FOR AT-
TRIBUTION OF SPONSORS INCOME AND RE-
SOURCES TO THE ALIEN WITH RESPECT TO
STATE PROGRAMS.
(a) OPTIONAL APPLICATION TO STATE PROGRAMS.—
Except as provided in subsection (b), in determining the
eligibility and the amount of benefits of an alien for any
State public benefits (as defined in section 2412(c)), the
State or political subdivision that offers the benefits is au-
thorized to provide that the income and resources of the
alien shall be deemed to include—
(1) the income and resources of any individual
who executed an affidavit of support pursuant to sec-
tion 213A of the Immigration and Nationality Act
568
HR 3734 EAS
(as added by section 2423) on behalf of such alien,
and
(2) the income and resources of the spouse (if
any) of the individual.
(b) EXCEPTIONS.—Subsection (a) shall not apply with
respect to the following State public benefits:
(1) Emergency medical services.
(2) Short-term, non-cash, in-kind emergency dis-
aster relief.
(3) Programs comparable to assistance or bene-
fits under the National School Lunch Act.
(4) Programs comparable to assistance or bene-
fits under the Child Nutrition Act of 1966.
(5)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a communicable disease if the appro-
priate chief State health official determines that it is
necessary to prevent the spread of such disease.
(6) Payments for foster care and adoption assist-
ance.
(7) Programs, services, or assistance (such as
soup kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General
of a State, after consultation with appropriate agen-
569
HR 3734 EAS
cies and departments, which (A) deliver in-kind serv-
ices at the community level, including through public
or private nonprofit agencies; (B) do not condition
the provision of assistance, the amount of assistance
provided, or the cost of assistance provided on the in-
dividual recipient’s income or resources; and (C) are
necessary for the protection of life or safety.
SEC. 2423. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF
SUPPORT.
(a) IN GENERAL.—Title II of the Immigration and
Nationality Act is amended by inserting after section 213
the following new section:
‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT
‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit
of support may be accepted by the Attorney General or by
any consular officer to establish that an alien is not exclud-
able as a public charge under section 212(a)(4) unless such
affidavit is executed as a contract—
‘‘(A) which is legally enforceable against the
sponsor by the sponsored alien, the Federal Govern-
ment, and by any State (or any political subdivision
of such State) which provides any means-tested public
benefits program, but not later than 10 years after the
alien last receives any such benefit;
570
HR 3734 EAS
‘‘(B) in which the sponsor agrees to financially
support the alien, so that the alien will not become
a public charge; and
‘‘(C) in which the sponsor agrees to submit to the
jurisdiction of any Federal or State court for the pur-
pose of actions brought under subsection (e)(2).
‘‘(2) A contract under paragraph (1) shall be enforce-
able with respect to benefits provided to the alien until such
time as the alien achieves United States citizenship through
naturalization pursuant to chapter 2 of title III.
‘‘(b) FORMS.—Not later than 90 days after the date
of enactment of this section, the Attorney General, in con-
sultation with the Secretary of State and the Secretary of
Health and Human Services, shall formulate an affidavit
of support consistent with the provisions of this section.
‘‘(c) REMEDIES.—Remedies available to enforce an af-
fidavit of support under this section include any or all of
the remedies described in section 3201, 3203, 3204, or 3205
of title 28, United States Code, as well as an order for spe-
cific performance and payment of legal fees and other costs
of collection, and include corresponding remedies available
under State law. A Federal agency may seek to collect
amounts owed under this section in accordance with the
provisions of subchapter II of chapter 37 of title 31, United
States Code.
571
HR 3734 EAS
‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—
‘‘(1) IN GENERAL.—The sponsor shall notify the
Attorney General and the State in which the spon-
sored alien is currently resident within 30 days of
any change of address of the sponsor during the pe-
riod specified in subsection (a)(2).
‘‘(2) PENALTY.—Any person subject to the re-
quirement of paragraph (1) who fails to satisfy such
requirement shall be subject to a civil penalty of—
‘‘(A) not less than $250 or more than
$2,000, or
‘‘(B) if such failure occurs with knowledge
that the alien has received any means-tested pub-
lic benefit, not less than $2,000 or more than
$5,000.
‘‘(e) REIMBURSEMENT OF GOVERNMENT EXPENSES.—
(1)(A) Upon notification that a sponsored alien has re-
ceived any benefit under any means-tested public benefits
program, the appropriate Federal, State, or local official
shall request reimbursement by the sponsor in the amount
of such assistance.
‘‘(B) The Attorney General, in consultation with the
Secretary of Health and Human Services, shall prescribe
such regulations as may be necessary to carry out subpara-
graph (A).
572
HR 3734 EAS
‘‘(2) If within 45 days after requesting reimbursement,
the appropriate Federal, State, or local agency has not re-
ceived a response from the sponsor indicating a willingness
to commence payments, an action may be brought against
the sponsor pursuant to the affidavit of support.
‘‘(3) If the sponsor fails to abide by the repayment
terms established by such agency, the agency may, within
60 days of such failure, bring an action against the sponsor
pursuant to the affidavit of support.
‘‘(4) No cause of action may be brought under this sub-
section later than 10 years after the alien last received any
benefit under any means-tested public benefits program.
‘‘(5) If, pursuant to the terms of this subsection, a Fed-
eral, State, or local agency requests reimbursement from the
sponsor in the amount of assistance provided, or brings an
action against the sponsor pursuant to the affidavit of sup-
port, the appropriate agency may appoint or hire an indi-
vidual or other person to act on behalf of such agency acting
under the authority of law for purposes of collecting any
moneys owed. Nothing in this subsection shall preclude any
appropriate Federal, State, or local agency from directly
requesting reimbursement from a sponsor for the amount
of assistance provided, or from bringing an action against
a sponsor pursuant to an affidavit of support.
573
HR 3734 EAS
‘‘(f) DEFINITION.—For the purposes of this section the
term ‘sponsor’ means an individual who—
‘‘(1) is a citizen or national of the United States
or an alien who is lawfully admitted to the United
States for permanent residence;
‘‘(2) is 18 years of age or over;
‘‘(3) is domiciled in any of the 50 States or the
District of Columbia; and
‘‘(4) is the person petitioning for the admission
of the alien under section 204.
(b) CLERICAL AMENDMENT.—The table of contents of
such Act is amended by inserting after the item relating
to section 213 the following:
‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.
(c) EFFECTIVE DATE.—Subsection (a) of section 213A
of the Immigration and Nationality Act, as inserted by sub-
section (a) of this section, shall apply to affidavits of sup-
port executed on or after a date specified by the Attorney
General, which date shall be not earlier than 60 days (and
not later than 90 days) after the date the Attorney General
formulates the form for such affidavits under subsection (b)
of such section.
(d) BENEFITS NOT SUBJECT TO REIMBURSEMENT.—
Requirements for reimbursement by a sponsor for benefits
provided to a sponsored alien pursuant to an affidavit of
574
HR 3734 EAS
support under section 213A of the Immigration and Na-
tionality Act shall not apply with respect to the following:
(1) Emergency medical services under title XV or
XIX of the Social Security Act.
(2) Short-term, non-cash, in-kind emergency dis-
aster relief.
(3) Assistance or benefits under the National
School Lunch Act.
(4) Assistance or benefits under the Child Nutri-
tion Act of 1966.
(5)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a communicable disease if the Secretary
of Health and Human Services determines that it is
necessary to prevent the spread of such disease.
(6) Payments for foster care and adoption assist-
ance under part E of title IV of the Social Security
Act for a child, but only if the foster or adoptive par-
ent or parents of such child are not otherwise ineli-
gible pursuant to section 2403 of this Act.
(7) Programs, services, or assistance (such as
soup kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General,
in the Attorney General’s sole and unreviewable dis-
575
HR 3734 EAS
cretion after consultation with appropriate Federal
agencies and departments, which (A) deliver in-kind
services at the community level, including through
public or private nonprofit agencies; (B) do not con-
dition the provision of assistance, the amount of as-
sistance provided, or the cost of assistance provided
on the individual recipient’s income or resources; and
(C) are necessary for the protection of life or safety.
(8) Programs of student assistance under titles
IV, V, IX, and X of the Higher Education Act of
1965.
Subchapter D—General Provisions
SEC. 2431. DEFINITIONS.
(a) IN GENERAL.—Except as otherwise provided in
this chapter, the terms used in this chapter have the same
meaning given such terms in section 101(a) of the Immigra-
tion and Nationality Act.
(b) QUALIFIED ALIEN.—For purposes of this chapter,
the term ‘‘qualified alien’’ means an alien who, at the time
the alien applies for, receives, or attempts to receive a Fed-
eral public benefit, is—
(1) an alien who is lawfully admitted for perma-
nent residence under the Immigration and National-
ity Act,
576
HR 3734 EAS
(2) an alien who is granted asylum under sec-
tion 208 of such Act,
(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 effect
prior to April 1, 1980.
SEC. 2432. 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 General of
the United States, after consultation with the Secretary of
Health and Human Services, shall promulgate regulations
requiring verification that a person applying for a Federal
public benefit (as defined in section 2401(c)), to which the
limitation under section 2401 applies, is a qualified alien
and is eligible to receive such benefit. Such regulations
shall, to the extent feasible, require that information re-
quested and exchanged be similar in form and manner to
577
HR 3734 EAS
information requested and exchanged under section 1137 of
the Social Security Act.
(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 provides
a Federal public benefit shall have in effect a verification
system that complies with the regulations.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary to carry out the purpose of this section.
SEC. 2433. STATUTORY CONSTRUCTION.
(a) LIMITATION.—
(1) Nothing in this chapter may be construed as
an entitlement or a determination of an individual’s
eligibility or fulfillment of the requisite requirements
for any Federal, State, or local governmental pro-
gram, assistance, or benefits. For purposes of this
chapter, eligibility relates only to the general issue of
eligibility or ineligibility on the basis of alienage.
(2) Nothing in this chapter may be construed as
addressing alien eligibility for a basic public edu-
cation as determined by the Supreme Court of the
United States under Plyler v. Doe (457 U.S.
202)(1982).
578
HR 3734 EAS
(b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—This
chapter does not apply to any Federal, State, or local gov-
ernmental program, assistance, or benefits provided to an
alien under any program of foreign assistance as deter-
mined by the Secretary of State in consultation with the
Attorney General.
(c) SEVERABILITY.—If any provision of this chapter
or the application of such provision to any person or cir-
cumstance is held to be unconstitutional, the remainder of
this chapter and the application of the provisions of such
to any person or circumstance shall not be affected thereby.
SEC. 2434. COMMUNICATION BETWEEN STATE AND LOCAL
GOVERNMENT AGENCIES AND THE IMMIGRA-
TION AND NATURALIZATION SERVICE.
Notwithstanding any other provision of Federal, State,
or local law, no State or local government entity may be
prohibited, or in any way restricted, from sending to or
receiving from the Immigration and Naturalization Service
information regarding the immigration status, lawful or
unlawful, of an alien in the United States.
SEC. 2435. QUALIFYING QUARTERS.
For purposes of this chapter, in determining the num-
ber of qualifying quarters of coverage under title II of the
Social Security Act an alien shall be credited with—
579
HR 3734 EAS
(1) all of the qualifying quarters of coverage as
defined under title II of the Social Security Act
worked by a parent of such alien while the alien was
under age 18 if the parent did not receive any Fed-
eral means-tested public benefit (as defined in section
2403(c)) during any such quarter, and
(2) all of the qualifying quarters worked by a
spouse of such alien during their marriage if the
spouse did not receive any Federal means-tested pub-
lic benefit (as defined in section 2403(c)) during any
such quarter and the alien remains married to such
spouse or such spouse is deceased.
Subchapter E—Conforming Amendments
Relating to Assisted Housing
SEC. 2441. CONFORMING AMENDMENTS RELATING TO AS-
SISTED HOUSING.
(a) LIMITATIONS ON ASSISTANCE.—Section 214 of the
Housing and Community Development Act of 1980 (42
U.S.C. 1436a) is amended—
(1) by striking ‘‘Secretary of Housing and
Urban Development’’ each place it appears and in-
serting ‘‘applicable Secretary’’;
(2) in subsection (b), by inserting after ‘‘Na-
tional Housing Act,’’ the following: ‘‘the direct loan
program under section 502 of the Housing Act of
580
HR 3734 EAS
1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or
542 of such Act, subtitle A of title III of the Cranston-
Gonzalez National Affordable Housing Act,’’;
(3) in paragraphs (2) through (6) of subsection
(d), by striking ‘‘Secretary’’ each place it appears
and inserting ‘‘applicable Secretary’’;
(4) in subsection (d), in the matter following
paragraph (6), by striking ‘‘the term ‘Secretary’’’ and
inserting ‘‘the term ‘applicable Secretary’’’; and
(5) by adding at the end the following new sub-
section:
‘‘(h) For purposes of this section, the term ‘applicable
Secretary’ means—
‘‘(1) the Secretary of Housing and Urban Devel-
opment, with respect to financial assistance adminis-
tered by such Secretary and financial assistance
under subtitle A of title III of the Cranston-Gonzalez
National Affordable Housing Act; and
‘‘(2) the Secretary of Agriculture, with respect to
financial assistance administered by such Secretary.’’.
(b) CONFORMING AMENDMENTS.—Section 501(h) of
the Housing Act of 1949 (42 U.S.C. 1471(h)) is amended—
(1) by striking ‘‘(1)’’;
(2) by striking ‘‘by the Secretary of Housing and
Urban Development’’; and
581
HR 3734 EAS
(3) by striking paragraph (2).
Subchapter F—Earned Income Credit Denied
to Unauthorized Employees
SEC. 2451. EARNED INCOME CREDIT DENIED TO INDIVID-
UALS NOT AUTHORIZED TO BE EMPLOYED IN
THE UNITED STATES.
(a) IN GENERAL.—Section 32(c)(1) of the Internal
Revenue Code of 1986 (relating to individuals eligible to
claim the earned income credit) is amended by adding at
the end the following new subparagraph:
‘‘(F) IDENTIFICATION
NUMBER
REQUIRE-
MENT.—The term ‘eligible individual’ does not
include any individual who does not include on
the return of tax for the taxable year—
‘‘(i) such individual’s taxpayer identi-
fication number, and
‘‘(ii) if the individual is married
(within the meaning of section 7703), the
taxpayer identification number of such in-
dividual’s spouse.’’.
(b) SPECIAL IDENTIFICATION NUMBER.—Section 32 of
such Code is amended by adding at the end the following
new subsection:
‘‘(l) IDENTIFICATION NUMBERS.—Solely for purposes
of subsections (c)(1)(F) and (c)(3)(D), a taxpayer identi-
582
HR 3734 EAS
fication number means a social security number issued to
an individual by the Social Security Administration (other
than a social security number issued pursuant to clause (II)
(or that portion of clause (III) that relates to clause (II))
of section 205(c)(2)(B)(i) of the Social Security Act).’’.
(c) EXTENSION
OF PROCEDURES APPLICABLE
TO
MATHEMATICAL
OR
CLERICAL
ERRORS.—Section
6213(g)(2) of such Code (relating to the definition of mathe-
matical or clerical errors) is amended by striking ‘‘and’ at
the end of subparagraph (D), by striking the period at the
end of subparagraph (E) and inserting a comma, and by
inserting after subparagraph (E) the following new sub-
paragraphs:
‘‘(F) an omission of a correct taxpayer
identification number required under section 32
(relating to the earned income tax credit) to be
included on a return, and
‘‘(G) an entry on a return claiming the
credit under section 32 with respect to net earn-
ings from self-employment described in section
32(c)(2)(A) to the extent the tax imposed by sec-
tion 1401 (relating to self-employment tax) on
such net earnings has not been paid.’’.
583
HR 3734 EAS
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1995.
CHAPTER 5—REFORM OF PUBLIC
HOUSING
SEC. 2501. FAILURE TO COMPLY WITH OTHER WELFARE
AND PUBLIC ASSISTANCE PROGRAMS.
Title I of the United States Housing Act of 1937 (42
U.S.C. 1437 et seq.), as amended by section 2404(d) of this
Act, is amended by adding at the end the following new
section:
‘‘SEC. 28. FAILURE TO COMPLY WITH OTHER WELFARE AND
PUBLIC ASSISTANCE PROGRAMS.
‘‘(a) IN GENERAL.—If the benefits of a family are re-
duced under a Federal, State, or local law relating to wel-
fare or a public assistance program for the failure of any
member of the family to perform an action required under
the law or program, the family may not, for the duration
of the reduction, receive any increased assistance under this
Act as the result of a decrease in the income of the family
to the extent that the decrease in income is the result of
the benefits reduction.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply in
any case in which the benefits of a family are reduced be-
cause the welfare or public assistance program to which the
584
HR 3734 EAS
Federal, State, or local law relates limits the period during
which benefits may be provided under the program.’’.
SEC. 2502. FRAUD UNDER MEANS-TESTED WELFARE AND
PUBLIC ASSISTANCE PROGRAMS.
(a) IN GENERAL.—If an individual’s benefits under a
Federal, State, or local law relating to a means-tested wel-
fare or a public assistance program are reduced because of
an act of fraud by the individual under the law or program,
the individual may not, for the duration of the reduction,
receive an increased benefit under any other means-tested
welfare or public assistance program for which Federal
funds are appropriated as a result of a decrease in the in-
come of the individual (determined under the applicable
program) attributable to such reduction.
(b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR
WHICH FEDERAL FUNDS ARE APPROPRIATED.—For pur-
poses of subsection (a), the term ‘‘means-tested welfare or
public assistance program for which Federal funds are ap-
propriated’’ includes the food stamp program under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any pro-
gram of public or assisted housing under title I of the Unit-
ed States Housing Act of 1937 (42 U.S.C. 1437 et seq.),
and State programs funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
585
HR 3734 EAS
CHAPTER 
6—TECHNICAL 
AMENDMENTS
RELATING 
TO 
CHILD 
PROTECTION
PROGRAMS
SEC. 2601. EXTENSION OF ENHANCED FUNDING FOR IMPLE-
MENTATION 
OF 
STATEWIDE 
AUTOMATED
CHILD WELFARE INFORMATION SYSTEMS.
Section 474(a)(3)(B) of the Social Security Act (42
U.S.C. 674(a)(3)(B)) is amended by inserting ‘‘(of, if the
quarter is in fiscal year 1997, 75 percent)’’ after ‘‘50 per-
cent’’ each place it appears.
SEC. 2602. REDESIGNATION OF SECTION 1123.
The Social Security Act is amended by redesignating
section 1123, the second place it appears (42 U.S.C. 1320a–
1a), as section 1123A.
SEC. 2603. KINSHIP CARE.
Section 471(a) of the Social Security Act (42 U.S.C.
671(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(16);
(2) by striking the period at the end of para-
graph (17) and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graph:
‘‘(18) provides that States shall give preference to
an adult relative over a non-related caregiver when
586
HR 3734 EAS
determining a placement for a child, provided that
the relative caregiver meets all relevant State child
protection standards.’’.
CHAPTER 7—CHILD CARE
SEC. 2701. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This chapter may be cited as the
‘‘Child Care and Development Block Grant Amendments of
1996’’.
(b) REFERENCES.—Except as otherwise expressly pro-
vided, whenever in this chapter an amendment or repeal
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 a section or other provision of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858
et seq.).
SEC. 2802. GOALS.
(a) 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—
587
HR 3734 EAS
‘‘(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 informed
choices about child care;
‘‘(4) to assist States to provide child care to par-
ents trying to achieve independence from public as-
sistance; and
‘‘(5) to assist States in implementing the health,
safety, licensing, and registration standards estab-
lished in State regulations.’’.
SEC. 2703. 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.’’.
588
HR 3734 EAS
(b) SOCIAL SECURITY ACT.—Part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) is amended by
adding at the end the following:
‘‘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 as-
sistance, be entitled to payments under a grant under
this subsection for a fiscal year in an amount equal
to—
‘‘(A) the sum of the total amount required
to be paid to the State under former section 403
for fiscal year 1994 or 1995 (whichever is great-
er) with respect to amounts expended for child
care under section—
‘‘(i) 402(g) of this Act (as such section
was in effect before October 1, 1995); and
‘‘(ii) 402(i) of this Act (as so in effect);
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.
589
HR 3734 EAS
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use any
amounts appropriated for a fiscal year under
paragraph (3), and remaining after the reserva-
tion 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
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 fiscal year 1995, whichever is greater)
590
HR 3734 EAS
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 such fiscal
year for carrying out the purpose for which
the grant is made, the Secretary 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 addi-
tional amounts for carrying out such pur-
pose. Such available amounts shall be redis-
tributed to a State pursuant to section
402(i) (as such section was in effect before
October 1, 1995) by substituting ‘the num-
ber of children residing in all States apply-
ing for such funds’ for ‘the number of chil-
591
HR 3734 EAS
dren residing 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
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 regarded
as part of such State’s payment (as deter-
mined under this subsection) for the fiscal
year in which the redistribution is made.
‘‘(3) APPROPRIATION.—There are authorized to
be appropriated, and there are appropriated, to carry
out this section—
‘‘(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;
593
HR 3734 EAS
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT
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, inte-
grated 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 Colum-
bia.’’.
SEC. 2704. 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 in-
serting ‘‘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 sen-
tence.
SEC. 2705. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended—
594
HR 3734 EAS
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all
that follows through ‘‘(2)’’ and inserting ‘‘imple-
mented’’; and
(B) by striking ‘‘for subsequent State
plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clause (i) by striking ‘‘,
other than through assistance provided
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 period
at the end ‘‘and provide a detailed de-
scription of such procedures’’;
(iii) in subparagraph (C)—
595
HR 3734 EAS
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the period
at the end ‘‘and provide a detailed de-
scription of how such record is main-
tained and is made available’’;
(iv) by amending subparagraph (D) to
read as follows:
‘‘(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
596
HR 3734 EAS
construed to require that licensing require-
ments be applied to specific types of provid-
ers 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 con-
sultation with Indian tribes and tribal or-
ganizations, shall develop minimum child
care standards (that appropriately reflect
tribal needs and available resources) that
shall be applicable to Indian tribes and
tribal organizations receiving assistance
under this subchapter.’’; and
(vi) by striking subparagraphs (H),
(I), and (J) and inserting the following:
‘‘(G) 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
597
HR 3734 EAS
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)’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the
reservation contained in subparagraph
(C), the’’ and inserting ‘‘AND RELATED
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);
598
HR 3734 EAS
(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-
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 ‘ad-
ministrative 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 section
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 sub-
chapter in each fiscal year is used to provide as-
sistance to low-income working families other
than families described in paragraph (2)(F).’’;
and
599
HR 3734 EAS
(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
such rates are sufficient to ensure such ac-
cess’’ before the period; and
(iii) by striking the last sentence.
SEC. 2706. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b) (42 U.S.C. 9858d(b)) is amended—
(1) in paragraph (1), by striking ‘‘No’’ and in-
serting ‘‘Except as provided for in section 658O(c)(6),
no’’; and
(2) in paragraph (2), by striking ‘‘referred to in
section 658E(c)(2)(F)’’.
SEC. 2707. 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 designed
600
HR 3734 EAS
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. 2708. REPEAL OF EARLY CHILDHOOD DEVELOPMENT
AND BEFORE- AND AFTER-SCHOOL CARE RE-
QUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 2709. 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 ‘‘finding
and shall require that the State reimburse the Sec-
retary for any funds that were improperly expended
for purposes prohibited or not authorized by this sub-
chapter, that the Secretary deduct from the adminis-
trative 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 combination of
such options.’’.
601
HR 3734 EAS
SEC. 2710. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended by
striking ‘‘expended’’ and inserting ‘‘obligated’’.
SEC. 2711. 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.—
‘‘(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 infor-
mation required under this subparagraph shall
include, with respect to a family unit receiving
assistance under this subchapter information
concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender, race, and age of chil-
dren receiving such assistance;
‘‘(iv) whether the family includes only
1 parent;
602
HR 3734 EAS
‘‘(v) the sources of family income, in-
cluding the amount obtained from (and sep-
arately 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;
‘‘(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.
603
HR 3734 EAS
‘‘(C) SUBMISSION TO SECRETARY.—A State
described in subparagraph (A) shall, on a quar-
terly basis, submit the information required to be
collected under subparagraph (B) to the Sec-
retary.
‘‘(D) SAMPLING.—The Secretary may dis-
approve the information collected by a State
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 ag-
gregate data concerning—
‘‘(A) the number of child care providers that
received funding under this subchapter as sepa-
rately identified based on the types of providers
listed in section 658P(5);
‘‘(B) the monthly cost of child care services,
and the portion of such cost that is paid for with
assistance provided under this subchapter, listed
by the type of child care services provided;
‘‘(C) the number of payments made by the
State through vouchers, contracts, cash, and dis-
604
HR 3734 EAS
regards 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 information
was provided; and
‘‘(E) the total number (without duplication)
of children and families served under this sub-
chapter;
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. 2712. 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
605
HR 3734 EAS
(3) by striking ‘‘Education and Labor’’ and in-
serting ‘‘Economic and Educational Opportunities’’.
SEC. 2713. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘POSSESSIONS’’ and insert-
ing ‘‘POSSESSIONS’’;
(B) by inserting ‘‘and’’ after ‘‘States,’’; and
(C) by striking ‘‘, and the Trust Territory
of the Pacific Islands’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and
inserting ‘‘out’’; and
(B) by adding at the end thereof the follow-
ing new paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FACILI-
TIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An
Indian tribe or tribal organization may submit
to the Secretary a request to use amounts pro-
vided under this subsection for construction or
renovation purposes.
606
HR 3734 EAS
‘‘(B) DETERMINATION.—With respect to a
request submitted under subparagraph (A), and
except as provided in subparagraph (C), upon a
determination by the Secretary that adequate fa-
cilities are not otherwise available to an Indian
tribe or tribal organization to enable such tribe
or organization to carry out child care programs
in accordance with this subchapter, and that the
lack of such facilities will inhibit the operation
of such programs in the future, the Secretary
may permit the tribe or organization to use as-
sistance provided under this subsection to make
payments for the construction or renovation of
facilities that will be used to carry out such pro-
grams.
‘‘(C) LIMITATION.—The Secretary may not
permit an Indian tribe or tribal organization to
use amounts provided under this subsection for
construction or renovation if such use will result
in a decrease in the level of child care services
provided by the tribe or organization as com-
pared to the level of such services provided by the
tribe or organization in the fiscal year preceding
the year for which the determination under sub-
paragraph (A) is being made.
607
HR 3734 EAS
‘‘(D) UNIFORM
PROCEDURES.—The Sec-
retary shall develop and implement uniform pro-
cedures for the solicitation and consideration of
requests under this paragraph.’’; and
(3) in subsection (e), by adding at the end there-
of 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 con-
tract is made available, shall be allotted by the Sec-
retary to other tribes or organizations that have sub-
mitted applications under subsection (c) in accord-
ance with their respective needs.’’.
SEC. 2714. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by in-
serting ‘‘or as a deposit for child care services if such
a deposit is required of other children being cared for
by the provider’’ after ‘‘child care services’’; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 per-
cent’’ and inserting ‘‘85 percent’’;
608
HR 3734 EAS
(4) in paragraph (5)(B)—
(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 follow-
ing 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 of
609
HR 3734 EAS
serving youth who are Indians or Native Hawai-
ians.’’.
SEC. 2715. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this chapter and the amendments made by this chapter
shall take effect on October 1, 1996.
(b) EXCEPTION.—The amendment made by section
2803(a) shall take effect on the date of enactment of this
Act.
CHAPTER 8—MISCELLANEOUS
SEC. 2801. APPROPRIATION BY STATE LEGISLATURES.
(a) IN GENERAL.—Any funds received by a State
under the provisions of law specified in subsection (b) shall
be subject to appropriation by the State legislature, consist-
ent with the terms and conditions required under such pro-
visions of law.
(b) PROVISIONS OF LAW.—The provisions of law speci-
fied in this subsection are the following:
(1) Part A of title IV of the Social Security Act
(relating to block grants for temporary assistance for
needy families).
(2) Section 27 of the Food Stamp Act of 1977
(relating to the optional State food assistance block
grant).
610
HR 3734 EAS
(3) The Child Care and Development Block
Grant Act of 1990 (relating to block grants for child
care).
SEC. 2802. SANCTIONING FOR TESTING POSITIVE FOR CON-
TROLLED SUBSTANCES.
Notwithstanding any other provision of law, States
shall not be prohibited by the Federal Government from
testing welfare recipients for use of controlled substances nor
from sanctioning welfare recipients who test positive for use
of controlled substances.
SEC. 2803. REDUCTION IN BLOCK GRANTS TO STATES FOR
SOCIAL SERVICES.
(a) IN GENERAL.—Section 2003(c) of the Social Secu-
rity Act (42 U.S.C. 1397b(c)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4); and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) $2,800,000,000 for each of the fiscal years
1990 through 1995;
‘‘(6) $2,381,000,000 for the fiscal year 1996;
‘‘(7) $2,240,000,000 for each of the fiscal years
1997 through 2002; and
‘‘(8) $2,800,000,000 for the fiscal year 2003 and
each succeeding fiscal year.’’.
611
HR 3734 EAS
(b) DEDICATION OF BLOCK GRANT SHARE.—Section
2001 of the Social Security Act (42 U.S.C. 1397) is amend-
ed—
(1) in the matter preceding paragraph (1), by
inserting ‘‘(a)’’ before ‘‘For’’; and
(2) by adding at the end the following:
‘‘(b) For any fiscal year in which a State receives an
allotment under section 2003, such State shall dedicate an
amount equal to 1 percent of such allotment to fund pro-
grams and services that teach minors to avoid out-of-wed-
lock pregnancies.’’.
SEC. 2804. ELIMINATION OF HOUSING ASSISTANCE WITH
RESPECT TO FUGITIVE FELONS AND PROBA-
TION AND PAROLE VIOLATORS.
(a) ELIGIBILITY FOR ASSISTANCE.—The United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended—
(1) in section 6(l)—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) in paragraph (6), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by inserting immediately after para-
graph (6) the following new paragraph:
612
HR 3734 EAS
‘‘(7) provide that it shall be cause for immediate
termination of the tenancy of a public housing tenant
if such tenant—
‘‘(A) is fleeing to avoid prosecution, or cus-
tody or confinement after conviction, under the
laws of the place from which the individual flees,
for a crime, or attempt to commit a crime,
which is a felony under the laws of the place
from which the individual flees, or which, in the
case of the State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(2) is violating a condition of probation or pa-
role imposed under Federal or State law.’’; and
(2) in section 8(d)(1)(B)—
(A) in clause (iii), by striking ‘‘and’’ at the
end;
(B) in clause (iv), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding after clause (iv) the following
new clause:
‘‘(v) it shall be cause for termination of
the tenancy of a tenant if such tenant—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, under the laws of the place
613
HR 3734 EAS
from which the individual flees, for a
crime, or attempt to commit a crime,
which is a felony under the laws of the
place from which the individual flees,
or which, in the case of the State of
New Jersey, is a high misdemeanor
under the laws of such State; or
‘‘(II) is violating a condition of
probation or parole imposed under
Federal or State law;’’.
(b) PROVISION OF INFORMATION TO LAW ENFORCE-
MENT AGENCIES.—Title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.), as amended by sections
2404(d) and 2601 of this Act, is amended by adding at the
end the following:
‘‘SEC. 29. EXCHANGE OF INFORMATION WITH LAW EN-
FORCEMENT AGENCIES.
‘‘Notwithstanding any other provision of law, each
public housing agency that enters into a contract for assist-
ance under section 6 or 8 of this Act with the Secretary
shall furnish any Federal, State, or local law enforcement
officer, upon the request of the officer, with the current ad-
dress, Social Security number, and photograph (if applica-
ble) of any recipient of assistance under this Act, if the offi-
cer—
614
HR 3734 EAS
‘‘(1) furnishes the public housing agency with the
name of the recipient; and
‘‘(2) notifies the agency that—
‘‘(A) such recipient—
‘‘(i) is 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 attempt to
commit a crime, which is a felony under the
laws of the place from which the individual
flees, or which, in the case of the State of
New Jersey, is a high misdemeanor under
the laws of such State; or
‘‘(ii) is violating a condition of proba-
tion or parole imposed under Federal or
State law; or
‘‘(iii) has information that is necessary
for the officer to conduct the officer’s official
duties;
‘‘(B) the location or apprehension of the re-
cipient is within such officer’s official duties;
and
‘‘(C) the request is made in the proper exer-
cise of the officer’s official duties.’’.
615
HR 3734 EAS
SEC. 2805. SENSE OF THE SENATE REGARDING ENTERPRISE
ZONES.
(a) FINDINGS.—The Senate finds that:
(1) Many of the Nation’s urban centers are
places with high levels of poverty, high rates of wel-
fare dependency, high crime rates, poor schools, and
joblessness;
(2) Federal tax incentives and regulatory re-
forms can encourage economic growth, job creation
and small business formation in many urban centers;
(3) Encouraging private sector investment in
America’s economically distressed urban and rural
areas is essential to breaking the cycle of poverty and
the related ills of crime, drug abuse, illiteracy, welfare
dependency, and unemployment;
(4) The empowerment zones enacted in 1993
should be enhanced by providing incentives to in-
crease entrepreneurial growth, capital formation, job
creation, educational opportunities, and home owner-
ship in the designated communities and zones.
(b) SENSE OF THE SENATE.—Therefore, it is the Sense
of the Senate that the Congress should adopt enterprise zone
legislation in the One Hundred Fourth Congress, and that
such enterprise zone legislation provide the following incen-
tives and provisions:
616
HR 3734 EAS
(1) Federal tax incentives that expand access to
capital, increase the formation and expansion of
small businesses, and promote commercial revitaliza-
tion;
(2) Regulatory reforms that allow localities to
petition Federal agencies, subject to the relevant agen-
cies’ approval, for waivers or modifications of regula-
tions to improve job creation, small business forma-
tion and expansion, community development, or eco-
nomic revitalization objectives of the enterprise zones;
(3) Home ownership incentives and grants to en-
courage resident management of public housing and
home ownership of public housing;
(4) School reform pilot projects in certain des-
ignated enterprise zones to provide low-income par-
ents with new and expanded educational options for
their children’s elementary and secondary schooling.
SEC. 2806. SENSE OF THE SENATE REGARDING THE IN-
ABILITY OF THE NON-CUSTODIAL PARENT TO
PAY CHILD SUPPORT.
It is the sense of the Senate that—
(a) States should diligently continue their efforts
to enforce child support payments by the non-custo-
dial parent to the custodial parent, regardless of the
617
HR 3734 EAS
employment status or location of the non-custodial
parent; and
(b) States are encouraged to pursue pilot pro-
grams in which the parents of a non-adult, non-custo-
dial parent who refuses to or is unable to pay child
support must—
(1) pay or contribute to the child support
owed by the non-custodial parent; or
(2) otherwise fulfill all financial obligations
and meet all conditions imposed on the non-cus-
todial parent, such as participation in a work
program or other related activity.
SEC. 2807. ESTABLISHING NATIONAL GOALS TO PREVENT
TEENAGE PREGNANCIES.
(a) IN GENERAL.—Not later than January 1, 1997,
the Secretary of Health and Human Services shall establish
and implement a strategy for—
(1) preventing out-of-wedlock teenage preg-
nancies, and
(2) assuring that at least 25 percent of the com-
munities in the United States have teenage pregnancy
prevention programs in place.
(b) REPORT.—Not later than June 30, 1998, and an-
nually thereafter, the Secretary shall report to the Congress
with respect to the progress that has been made in meeting
618
HR 3734 EAS
the goals described in paragraphs (1) and (2) of subsection
(a).
SEC. 2808. SENSE OF THE SENATE REGARDING ENFORCE-
MENT OF STATUTORY RAPE LAWS.
(a) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that States and local jurisdictions should aggressively
enforce statutory rape laws.
(b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY
RAPE.—Not later than January 1, 1997, the Attorney Gen-
eral shall establish and implement a program that—
(1) studies the linkage between statutory rape
and teenage pregnancy, particularly by predatory
older men committing repeat offensives; and
(2) educates State and local criminal law en-
forcement officials on the prevention and prosecution
of statutory rape, focusing in particular on the com-
mission of statutory rape by predatory older men
committing repeat offensives, and any links to teenage
pregnancy.
(c) VIOLENCE AGAINST WOMEN INITIATIVE.—The At-
torney General shall ensure that the Department of Justice’s
Violence Against Women initiative addresses the issue of
statutory rape, particularly the commission of statutory
rape by predatory older men committing repeat offensives.
619
HR 3734 EAS
SEC. 2809. PROVISIONS TO ENCOURAGE ELECTRONIC BEN-
EFIT TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) APPLICABILITY TO SERVICE PROVIDERS OTHER
THAN CERTAIN FINANCIAL INSTITUTIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) STATE
AND
LOCAL
GOVERNMENT
ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION GENERALLY.—The disclo-
sures, protections, responsibilities, and remedies
established under this title, and any regulation
prescribed or order issued by the Board in ac-
cordance with this title, shall not apply to any
electronic benefit transfer program established
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 electronic funds
transfer under an electronic benefit transfer pro-
gram for deposits directly into a consumer ac-
count held by the recipient of the benefit.
620
HR 3734 EAS
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph may be construed as—
‘‘(i) affecting or altering the protec-
tions otherwise applicable with respect to
benefits established by Federal, State, or
local law; or
‘‘(ii) otherwise superseding the appli-
cation of any State or local law.
‘‘(D) ELECTRONIC BENEFIT TRANSFER PRO-
GRAM
DEFINED.—For purposes of this para-
graph, the term ‘electronic benefit transfer pro-
gram’—
‘‘(i) means a program under which a
government agency distributes needs-tested
benefits by establishing accounts to be
accessed by recipients electronically, such as
through automated teller machines, or
point-of-sale terminals; and
‘‘(ii) does not include employment-re-
lated payments, including salaries and pen-
sion, retirement, or unemployment benefits
established by Federal, State, or local gov-
ernments.’’.
621
HR 3734 EAS
SEC. 2810. RULES RELATING TO DENIAL OF EARNED IN-
COME CREDIT ON BASIS OF DISQUALIFIED IN-
COME.
(a) REDUCTION IN DISQUALIFIED INCOME THRESH-
OLD.—
(1) IN GENERAL.—Paragraph (1) of section 32(i)
of the Internal Revenue Code of 1986 (relating to de-
nial of credit for individuals having excessive invest-
ment income) is amended by striking ‘‘$2,350’’ and
inserting ‘‘$2,200’’.
(2) ADJUSTMENT
FOR
INFLATION.—Subsection
(j) of section 32 of such Code is amended to read as
follows:
‘‘(j) INFLATION ADJUSTMENTS.—
‘‘(1) IN GENERAL.—In the case of any taxable
year beginning after 1996, each of the dollar amounts
in subsections (b)(2)(A) and (i)(1) shall be increased
by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar year
in which the taxable year begins, determined by
substituting ‘calendar year 1995’ for ‘calendar
year 1992’ in subparagraph (B) thereof.
‘‘(2) ROUNDING.—
622
HR 3734 EAS
‘‘(A) IN GENERAL.—If any dollar amount
in subsection (b)(2), after being increased under
paragraph (1), is not a multiple of $10, such
dollar amount shall be rounded to the nearest
multiple of $10.
‘‘(B) DISQUALIFIED
INCOME
THRESHOLD
AMOUNT.—If the dollar amount in subsection
(i)(1), after being increased under paragraph
(1), is not a multiple of $50, such amount shall
be rounded to the next lowest multiple of $50.’’.
(3) CONFORMING AMENDMENTS.—The table con-
tained in section 32(b)(2)(A) of the Internal Revenue
Code of 1986 is amended—
(1) by striking ‘‘$6,000’’ and inserting ‘‘$6,330’’,
(2) by striking ‘‘$11,000’’ both places it appears
and inserting ‘‘$11,610’’,
(3) by striking ‘‘$8,425’’ and inserting ‘‘$8,890’’,
(4) by striking ‘‘$4,000’’ and inserting ‘‘$4,220’’,
and
(5) by striking ‘‘$5,000’’ and inserting ‘‘$5,280’’.
(b) DEFINITION OF DISQUALIFIED INCOME.—Para-
graph (2) of section 32(i) of such Code (defining disquali-
fied income) is amended by striking ‘‘and’’ at the end of
subparagraph (B), by striking the period at the end of sub-
623
HR 3734 EAS
paragraph (C) and inserting a comma, and by adding at
the end the following new subparagraphs:
‘‘(D) the capital gain net income (as de-
fined in section 1222) of the taxpayer for such
taxable year, and
‘‘(E) the excess (if any) of—
‘‘(i) the aggregate income from all pas-
sive activities for the taxable year (deter-
mined without regard to any amount in-
cluded in earned income under subsection
(c)(2) or described in a preceding subpara-
graph), over
‘‘(ii) the aggregate losses from all pas-
sive activities for the taxable year (as so de-
termined).
For purposes of subparagraph (E), the term ‘passive
activity’ has the meaning given such term by section
469.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
apply to taxable years beginning after December 31,
1995.
(2) ADVANCE
PAYMENT
INDIVIDUALS.—In the
case of any individual who on or before June 26,
624
HR 3734 EAS
1996, has in effect an earned income eligibility cer-
tificate for the individual’s taxable year beginning in
1996, the amendments made by this section shall
apply to taxable years beginning after December 31,
1996.
SEC. 2811. MODIFICATION OF ADJUSTED GROSS INCOME
DEFINITION FOR EARNED INCOME CREDIT.
(a) IN GENERAL.—Subsections (a)(2)(B), (c)(1)(C),
and (f)(2)(B) of section 32 of the Internal Revenue Code
of 1986 are each amended by striking ‘‘adjusted gross in-
come’’ each place it appears and inserting ‘‘modified ad-
justed gross income’’.
(b) MODIFIED ADJUSTED GROSS INCOME DEFINED.—
Section 32(c) of such Code (relating to definitions and spe-
cial rules) is amended by adding at the end the following
new paragraph:
‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—
‘‘(A) IN GENERAL.—The term ‘modified ad-
justed gross income’ means adjusted gross in-
come—
‘‘(i) increased by the sum of the
amounts described in subparagraph (B),
and
‘‘(ii) determined without regard to the
amounts described in subparagraph (C).
625
HR 3734 EAS
‘‘(B) NONTAXABLE INCOME TAKEN INTO AC-
COUNT.—Amounts described in this subpara-
graph are—
‘‘(i) interest received or accrued during
the taxable year which is exempt from tax
imposed by this chapter, and
‘‘(ii) amounts received as a pension or
annuity, and any distributions or payments
received from an individual retirement
plan, by the taxpayer during the taxable
year to the extent not included in gross in-
come.
Clause (ii) shall not include any amount which
is not includible in gross income by reason of
section 402(c), 403(a)(4), 403(b)(8), 408(d) (3),
(4), or (5), or 457(e)(10).
‘‘(C) CERTAIN
AMOUNTS
DISREGARDED.—
An amount is described in this subparagraph if
it is—
‘‘(i) the amount of losses from sales or
exchanges of capital assets in excess of gains
from such sales or exchanges to the extent
such amount does not exceed the amount
under section 1211(b)(1),
626
HR 3734 EAS
‘‘(ii) the net loss from estates and
trusts,
‘‘(iii) the excess (if any) of amounts
described in subsection (i)(2)(C)(ii) over the
amounts described in subsection (i)(2)(C)(i)
(relating to nonbusiness rents and royal-
ties), and
‘‘(iv) the net loss from the carrying on
of trades or businesses, computed separately
with respect to—
‘‘(I) trades or businesses (other
than farming) conducted as sole pro-
prietorships,
‘‘(II) trades or businesses of farm-
ing conducted as sole proprietorships,
and
‘‘(III) other trades or businesses.
For purposes of clause (iv), there shall not be
taken into account items which are attributable
to a trade or business which consists of the per-
formance of services by the taxpayer as an em-
ployee.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
627
HR 3734 EAS
apply to taxable years beginning after December 31,
1995.
(2) ADVANCE
PAYMENT
INDIVIDUALS.—In the
case of any individual who on or before June 26,
1996, has in effect an earned income eligibility cer-
tificate for the individual’s taxable year beginning in
1996, the amendments made by this section shall
apply to taxable years beginning after December 31,
1996.
SEC. 2812. SUSPENSION OF INFLATION ADJUSTMENTS FOR
INDIVIDUALS WITH NO QUALIFYING CHIL-
DREN.
(a) IN GENERAL.—Subsection (j) of section 32 of the
Internal Revenue Code of 1986, as amended by section
2911(a)(2) of this Act, is amended by adding at the end
the following new paragraph:
‘‘(3) NO ADJUSTMENT FOR INDIVIDUALS WITH NO
QUALIFYING
CHILDREN.—This subsection shall not
apply to each dollar amount contained in subsection
(b)(2)(A) with respect to individuals with no qualify-
ing children.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1996.
628
HR 3734 EAS
SEC. 2813. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.
(a) IN GENERAL.—Subpart C of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986 (relat-
ing to refundable credits) is amended by redesignating sec-
tion 35 as section 36 and by inserting after section 34 the
following new section:
‘‘SEC. 35. ADOPTION EXPENSES.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi-
vidual, there shall be allowed as a credit against the tax
imposed by this subtitle for the taxable year the amount
of the qualified adoption expenses paid or incurred by the
taxpayer during such taxable year.
‘‘(b) LIMITATIONS.—
‘‘(1) 
DOLLAR
LIMITATION.—The 
aggregate
amount of qualified adoption expenses which may be
taken into account under subsection (a) with respect
to the adoption of a child shall not exceed $5,000.
‘‘(2) INCOME LIMITATION.—The amount allow-
able as a credit under subsection (a) for any taxable
year shall be reduced (but not below zero) by an
amount which bears the same ratio to the amount so
allowable (determined without regard to this para-
graph but with regard to paragraph (1)) as—
‘‘(A) the amount (if any) by which the tax-
payer’s adjusted gross income exceeds $60,000,
bears to
629
HR 3734 EAS
‘‘(B) $40,000.
‘‘(3) DENIAL OF DOUBLE BENEFIT.—
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under subsection (a) for any expense for
which a deduction or credit is allowable under
any other provision of this chapter.
‘‘(B) GRANTS.—No credit shall be allowed
under subsection (a) for any expense to the ex-
tent that funds for such expense are received
under any Federal, State, or local program.
‘‘(c) QUALIFIED ADOPTION EXPENSES.—For purposes
of this section, the term ‘qualified adoption expenses’ means
reasonable and necessary adoption fees, court costs, attorney
fees, and other expenses which are directly related to the
legal and finalized adoption of a child by the taxpayer and
which are not incurred in violation of State or Federal law
or in carrying out any surrogate parenting arrangement.
The term ‘qualified adoption expenses’ shall not include any
expenses in connection with the adoption by an individual
of a child who is the child of such individual’s spouse.
‘‘(d) MARRIED COUPLES MUST FILE JOINT RE-
TURNS.—Rules similar to the rules of paragraphs (2), (3),
and (4) of section 21(e) shall apply for purposes of this sec-
tion.’’.
(b) CONFORMING AMENDMENTS.—
630
HR 3734 EAS
(1) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting before
the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part IV
of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by striking the last item and
inserting the following:
‘‘Sec. 35. Adoption expenses.
‘‘Sec. 36. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1996.
SEC. 2814. EXCLUSION OF ADOPTION ASSISTANCE.
(a) IN GENERAL.—Part III of subchapter B of chapter
1 of the Internal Revenue Code of 1986 (relating to items
specifically excluded from gross income) is amended by re-
designating section 137 as section 138 and by inserting
after section 136 the following new section:
‘‘SEC. 137. ADOPTION ASSISTANCE.
‘‘(a) IN GENERAL.—Gross income of an employee does
not include employee adoption assistance benefits, or mili-
tary adoption assistance benefits, received by the employee
with respect to the employee’s adoption of a child.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) EMPLOYEE
ADOPTION
ASSISTANCE
BENE-
FITS.—The term ‘employee adoption assistance bene-
631
HR 3734 EAS
fits’ means payment by an employer of qualified
adoption expenses with respect to an employee’s adop-
tion of a child, or reimbursement by the employer of
such qualified adoption expenses paid or incurred by
the employee in the taxable year.
‘‘(2) EMPLOYER
AND
EMPLOYEE.—The terms
‘employer’ and ‘employee’ have the respective mean-
ings given such terms by section 127(c).
‘‘(3) MILITARY
ADOPTION
ASSISTANCE
BENE-
FITS.—The term ‘military adoption assistance bene-
fits’ means benefits provided under section 1052 of
title 10, United States Code, or section 514 of title 14,
United States Code.
‘‘(4) QUALIFIED
ADOPTION
EXPENSES.—The
term ‘qualified adoption expenses’ means reasonable
and necessary adoption fees, court costs, attorney fees,
and other expenses which are directly related to the
legal and finalized adoption of a child by the tax-
payer and which are not incurred in violation of
State or Federal law or in carrying out any surrogate
parenting arrangement. The term ‘qualified adoption
expenses’ shall not include any expenses in connection
with the adoption by an individual of a child who is
the child of such individual’s spouse.
632
HR 3734 EAS
‘‘(c) COORDINATION WITH OTHER PROVISIONS.—The
Secretary shall issue regulations to coordinate the applica-
tion of this section with the application of any other provi-
sion of this title which allows a credit or deduction with
respect to qualified adoption expenses.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
part III of subchapter B of chapter 1 of such Code is amend-
ed by striking the item relating to section 137 and inserting
the following new items:
‘‘Sec. 137. Adoption assistance.
‘‘Sec. 138. Cross references to other Acts.’’.
(c) EFFECTIVE DATE.—The amendments made this
section shall apply to taxable years beginning after Decem-
ber 31, 1996.
SEC. 2815. WITHDRAWAL FROM IRA FOR ADOPTION EX-
PENSES.
(a) IN GENERAL.—Subsection (d) of section 408 of the
Internal Revenue Code of 1986 (relating to tax treatment
of distributions) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(8) QUALIFIED ADOPTION EXPENSES.—
‘‘(A) IN GENERAL.—Any amount which is
paid or distributed out of an individual retire-
ment plan of the taxpayer, and which would (but
for this paragraph) be includible in gross in-