I
103D CONGRESS
2D SESSION
H. R. 4767
To reform the welfare system.
IN THE HOUSE OF REPRESENTATIVES
JULY 14, 1994
Mr. MATSUI (for himself, Mr. MILLER of California, Mr. BECERRA, Mrs.
CLAYTON, Mr. CLYBURN, Mr. FILNER, Mr. FRANK of Massachusetts, Ms.
E.B. JOHNSON of Texas, Mr. KOPETSKI, Mr. MCDERMOTT, Ms. MCKIN-
NEY, Mr. MINETA, Ms. NORTON, Mr. RAHALL, Mr. RANGEL, Ms. ROY-
BAL-ALLARD, Mr. RUSH, Mr. SABO, Ms. VELA´ZQUEZ, and Mr. WAXMAN)
introduced the following bill; which was referred jointly to the Committees
on Ways and Means, Education and Labor, Energy and Commerce,
Banking, Finance and Urban Affairs, Foreign Affairs, Veterans’ Affairs,
and Agriculture
A BILL
To reform the welfare system.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Family Self-Sufficiency
Act of 1994’’.
SEC. 2. AMENDMENT OF SOCIAL SECURITY ACT.
Except as otherwise expressly provided, wherever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Social Security Act.
SEC. 3. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Amendment of Social Security Act.
Sec. 3. Table of contents.
TITLE I—PROMOTION OF WORK AND SELF-SUFFICIENCY
Subtitle A—Expansion of Funding for, and Participation in, the JOBS
Program
Sec. 101. Increase in JOBS program funding.
Sec. 102. Increase in JOBS matching rate.
Sec. 103. JOBS participation requirements.
Sec. 104. Preliminary assessment of self-sufficiency needs within 30 days after
approval of AFDC application.
Subtitle B—Job Creation, Job Placement and Development, and Work
Requirements
Sec. 111. Public jobs creation program.
Sec. 112. Expansion of job placement, job development, and job retention ac-
tivities.
Sec. 113. Self-employment programs.
Sec. 114. Provisions generally applicable to the JOBS program.
Subtitle C—Support for Working Families
Sec. 121. End dollar-for-dollar work penalty.
Sec. 122. Increase in limitation on total family income.
Sec. 123. Availability of health care for poor working families.
Sec. 124. Elimination of different treatment of 2-parent families.
Sec. 125. Increase in stepparent income disregard.
Subtitle D—Child Care
Sec. 131. Increase in child care funds.
Sec. 132. Payments to encourage use of entire State allotment for at-risk child
care.
Sec. 133. Limitation on carryforward of unused at-risk child care allotments.
Sec. 134. Payment of local market rates.
Sec. 135. Set-aside for improvement of infrastructure and quality.
Sec. 136. Child care for working AFDC parents.
Sec. 137. Health and safety standards; continuity of care.
Sec. 138. Periodic identification of child care needs; ensuring that families un-
derstand child care alternatives.
Sec. 139. Ensuring that reimbursement mechanisms meet family needs.
Sec. 140. Facilitation of seamless services.
Sec. 141. Authority to provide for continuity of child care.
Sec. 142. Child care for families including a caretaker relative not receiving
AFDC.
Sec. 143. State option to extend transitional child care benefits.
Sec. 144. State option to provide transitional child care benefits to families who
have received AFDC for fewer than 3 months.
Sec. 145. Limitation of at-risk child care to families ineligible for recipient or
transitional child care.
Sec. 146. Elimination of requirement that family receiving transitional child
care benefits include a dependent child.
Sec. 147. State option to waive contribution requirement for families with in-
come below the poverty level.
Sec. 148. Continuation of child care during dispute resolution.
Sec. 149. Option to consolidate State responsibility for child care.
TITLE II—STRENGTHENING PARENTAL RESPONSIBILITY AND
FAMILY STABILITY
Subtitle A—Federal Responsibilities
Sec. 201. Expansion of functions of Federal Parent Locator Service.
Sec. 202. Expansion of Federal parent locator systems.
Sec. 203. Federal child support order registry.
Sec. 204. National reporting of employees and child support information.
Sec. 205. Federal matching payments.
Sec. 206. Performance-based incentives and penalties.
Sec. 207. Increased Federal financial participation for States with unified child
support enforcement programs.
Sec. 208. New child support audit process.
Sec. 209. National Child Support Guidelines Commission.
Sec. 210. Child Support Audit Advisory Committee.
Subtitle B—Paternity Establishment
Sec. 211. Paternity establishment procedures.
Sec. 212. Enhancing outreach to encourage paternity establishment.
Sec. 213. Strengthening civil procedures for paternity establishment.
Sec. 214. Penalty for failure to establish paternity promptly.
Subtitle C—Enforcement
Sec. 221. Access to financial records.
Sec. 222. Presumed address of obligor and obligee.
Sec. 223. Fair Credit Reporting Act amendment.
Sec. 224. Additional benefits subject to garnishment.
Sec. 225. Hold on occupational, professional, and business licenses.
Sec. 226. Driver’s licenses and vehicle registrations denied to persons failing to
appear in child support cases.
Sec. 227. Liens.
Sec. 228. Fraudulent transfer pursuit.
Sec. 229. Reporting of child support arrearages to credit bureaus.
Sec. 230. Denial of passports to noncustodial parents subject to State arrest
warrants in cases of nonpayment of child support.
Sec. 231. Statutes of limitation.
Sec. 232. Collection of past-due support using tax collection authority.
Subtitle D—State Responsibilities
Sec. 241. State role.
Sec. 242. Uniform terms in orders.
Sec. 243. States required to enact the Uniform Interstate Family Support Act.
Sec. 244. Expedited processes and administrative procedures.
Sec. 245. Due process.
Sec. 246. Outreach and accessibility.
Sec. 247. Cost-of-living adjustment of child support awards.
Sec. 248. Simplified process for review and adjustment of certain child support
orders.
Sec. 249. Prevention of conflicts of interest.
Sec. 250. Staffing.
Sec. 251. Training.
Sec. 252. Priorities in distribution of collected child support.
Sec. 253. Teen noncustodial parents and child support.
Subtitle E—Demonstrations
Sec. 261. Establishment of child support assurance demonstration projects.
Subtitle F—Miscellaneous
Sec. 271. Technical correction to ERISA definition of medical child support
order.
TITLE III—TEEN PARENTS AND WELFARE REFORM
Subtitle A—Family
Sec. 301. Minor teen parent residency requirement.
Sec. 302. Benefits increased by $50 for paternity establishment or establish-
ment of child support order.
Subtitle B—Education and Employment
Sec. 311. Schooling and employment requirements.
Sec. 312. Summer activities and teen earnings.
Sec. 313. Planning, startup, and reporting.
Sec. 314. Child care for non-AFDC teen parents.
Subtitle C—Case Management
Sec. 321. Case management.
Subtitle D—Demonstration Projects
Sec. 331. Adolescent pregnancy prevention grants.
Sec. 332. Demonstration projects to provide comprehensive services to prevent
adolescent pregnancy in high-risk communities.
TITLE IV—WAIVERS
Sec. 401. Funding for waivers that are not cost neutral.
TITLE V—IMPROVING GOVERNMENT ASSISTANCE
Subtitle A—AFDC Amendments
Sec. 501. Requirement that needs standards reflect the cost of essential items.
Sec. 502. Maintenance of minimum benefit levels.
Sec. 503. Optional supplementation of benefits for families subject to retrospec-
tive budgeting.
Sec. 504. Income disregards.
Sec. 505. Increase in resource limit.
Sec. 506. Exclusions from resources.
Sec. 507. Verification of status of citizens and aliens.
Sec. 508. Calculation of 185 percent of need standard.
Sec. 509. Payments to the territories.
Subtitle B—Food Stamp Act Amendments
Sec. 511. Inconsequential income.
Sec. 512. Educational assistance.
Sec. 513. Training stipends and allowances; income from on-the-job training
programs.
Sec. 514. Earned income tax credits.
Sec. 515. Resources necessary for self-employment.
Sec. 516. Lump-sum payments for medical expenses or replacement of lost re-
sources.
Sec. 517. Conforming amendment.
TITLE VI—EFFECTIVE DATE
Sec. 601. Effective date.
TITLE I—PROMOTION OF WORK
AND SELF-SUFFICIENCY
Subtitle A—Expansion of Funding
for, and Participation in, the
JOBS Program
SEC. 101. INCREASE IN JOBS PROGRAM FUNDING.
Section 403(k)(3) (42 U.S.C. 603(k)(3)) is amended
by striking subparagraphs (E) and (F) and inserting the
following:
‘‘(E) $1,590,000,000 in the case of the fiscal
year 1995,
‘‘(F) $2,080,000,000 in the case of the fiscal
year 1996,
‘‘(G) $2,620,000,000 in the case of the fiscal
year 1997,
‘‘(H) $3,160,000,000 in the case of the fiscal
year 1998, and
‘‘(I) $3,700,000,000 in the case of the fiscal
year 1999.’’.
SEC. 102. INCREASE IN JOBS MATCHING RATE.
(a) AMOUNT
OF
STATE’S
ENTITLEMENT
FOR
JOBS.—Paragraphs (1) and (2) of section 403(k) (42
U.S.C. 603(k)) are amended to read as follows:
‘‘(k)(1) In addition to payments under subsection (a),
the Secretary shall pay to each State with a plan approved
under part F an amount equal to the product of—
‘‘(A) the State’s enhanced Federal medical as-
sistance percentage as defined in paragraph (7), and
‘‘(B) the State’s expenditures to carry out the
program under part F (other than expenditures re-
quired by section 402(g)(1)(A) in the case of the 50
States and the District of Columbia),
but payments to a State under this title for any fiscal year
for such activities may not exceed the limitation under
paragraph (2) with respect to such State.
‘‘(2) The limitation under this paragraph with re-
spect to a State for any fiscal year is the amount that
bears the same ratio to the amount specified in paragraph
(3) for the fiscal year as the average monthly number of
adult recipients (as defined in paragraph (4)) in the State
in the immediately preceding fiscal year bears to the aver-
age monthly number of such recipients in all the States
for the immediately preceding year.’’.
(b) PROVISIONS APPLICABLE TO JOBS AND CHILD
CARE FUNDING.—Section 403(k) (42 U.S.C. 603(k)) is
amended by adding at the end the following:
‘‘(6) If the sum of the amount specified in any fiscal
year under paragraph (3) exceeds (or if the Secretary esti-
mates that it will exceed) the total amount paid (or esti-
mated to be payable) under paragraph (1) for the fiscal
year, then the Secretary shall adjust the maximums appli-
cable to payments to those States to which the limits
under such subsections have made additional payment un-
available under paragraph (1), and to which payments for
such fiscal year under either or both such paragraphs
would be greater but for the applicability to such States
of such limits. The Secretary shall by regulation provide
for the equitable adjustment of such limits in the case
where all States’ requests for adjustment of limits, and
additional payments, for a fiscal year under this para-
graph exceed the amount available for reallotment.
‘‘(7) As used in this part, a ‘State’s enhanced Federal
medical assistance percentage’ with respect to expendi-
tures for a fiscal year means such State’s Federal medical
assistance percentage as defined in section 1905(b) (or,
where applicable as defined in the last sentence of section
1118), plus
‘‘(A) 5 percentage points, but not less than 65
percent, with respect to fiscal years 1996 and 1997,
‘‘(B) 7 percentage points, but not less than 67
percent, with respect to fiscal year 1998,
‘‘(C) 9 percentage points, but not less than 69
percent, with respect to fiscal year 1999, and
‘‘(D) 10 percentage points, but not less than 70
percent, with respect to fiscal year 2000, and each
fiscal year thereafter.’’.
(c) SPECIAL RULE.—Section 403 (42 U.S.C. 603),
as amended by section 132 of this Act, is amended by add-
ing at the end the following:
‘‘(p) Notwithstanding the preceding provisions of this
section, the percentage applicable to a State for purposes
of section 402(g)(3)(A) and subsections (k)(1)(A) and
(n)(1)(A) (for determining the Federal payment with re-
spect to a State’s expenditures under part F and its child
care expenditures, respectively) shall be the State’s Fed-
eral medical assistance percentage, but not less than 60
percent (or, in the case of section 402(g)(3)(A) and sub-
section (n)(1)(A), the State’s Federal medical assistance
percentage) for any fiscal year in which the nonfederal
share of the sum of its expenditures that may be included
for purposes of subsection (a)(3) and its expenditures for
its program under part F and child care services under
subsections (g) and (i) of section 402 (not included under
subsection (a)(3)) is less than the nonfederal share of ex-
penditures for purposes of subsection (a)(3) and of ex-
penditures (for which Federal matching was provided)
under its program under part F and child care services
(not included under subsection (a)(3)) under subsections
(g) and (i) of section 402 for fiscal year 1994 (or fiscal
year 1993 if such nonfederal share were greater for such
year).
(d) CONFORMING AMENDMENTS.—
(1) 
Section 
402(g)(3)(A)(i) 
(42 
U.S.C.
602(g)(3)(A)(i) is amended by striking ‘‘Federal
medical assistance percentage (as defined in section
1905(b))’’ and inserting ‘‘State’s enhanced Federal
medical assistance percentage (as defined in section
403(k)(7))’’.
(2) 
Section 
402(g)(3)(A)(ii) 
(42 
U.S.C.
602(g)(3)(A)(ii)) is amended by striking ‘‘Federal
medical assistance percentage (as defined in section
1118)’’ and inserting ‘‘State’s enhanced Federal
‘‘(V) The extent to which the jobs into which
program participants are placed offer health bene-
fits.
‘‘(VI) Such other information relating to job en-
tries by program participants as the Secretary may
require by regulation.
‘‘(ii) The definition of job entry shall, at a minimum
provide that—
‘‘(I) the employment must be obtained after the
individual has been referred for participation in the
program established by the State under part F and
after the individual has registered or received ori-
entation for the program;
‘‘(II) not more than 1 employment entry per
participant per month may be counted;
‘‘(III) the employment must be at or above the
greater of the State or Federal minimum wage, and
must be for at least 15 hours per week;
‘‘(IV) employment paid solely by commissions,
and self-employment, may not be counted until the
participant has earned income of at least the mini-
mum wage for at least 15 hours per week;
‘‘(V) changes from part-time to full-time em-
ployment with the same employer shall not count as
an additional job entry; and