H. R. 3734—67
to or more restrictive than those in effect on June
1, 1995’’; and
(2) in subsection (d)(2)(C)—
(A) by striking ‘‘program for aid to families with
dependent 
children’’ 
and 
inserting 
‘‘State 
program
funded’’; and
(B) by inserting before the period at the end the
following: ‘‘that the Secretary determines complies with
standards established by the Secretary that ensure that
the standards under the State program are comparable
to or more restrictive than those in effect on June 1, 1995’’.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—
(1) by striking ‘‘program for aid to families with dependent
children 
established’’ 
and 
inserting 
‘‘State 
program
funded’’; and
(2) by inserting before the semicolon the following: ‘‘that
the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the
State program are comparable to or more restrictive than those
in effect on June 1, 1995’’.
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment Com-
pensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94–
566; 90 Stat. 2689) is amended to read as follows:
‘‘(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.—For pur-
poses of section 455 of the Social Security Act, expenses incurred
to reimburse State employment offices for furnishing information
requested of such offices—
‘‘(1) pursuant to the third sentence of section 3(a) of the
Act entitled ‘An Act to provide for the establishment of a
national employment system and for cooperation with the
States in the promotion of such system, and for other purposes’,
approved June 6, 1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with the duty
of carrying a State plan for child support approved under
part D of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the adminis-
tration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation
Act of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC
of certain rental payments for federally assisted housing, is
repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility
Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of 1967
(81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 (42 U.S.C. 11381 note), relating
to demonstration projects to reduce number of AFDC families in
welfare hotels, is amended—
H. R. 3734—68
(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved’’ and inserting
‘‘assistance under a State program funded’’; and
(2) in subsection (c), by striking ‘‘aid to families with
dependent children in the State under a State plan approved’’
and inserting ‘‘assistance in the State under a State program
funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–23(c)(3)), by strik-
ing ‘‘(Aid to Families with Dependent Children)’’; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking
‘‘aid to families with dependent children under a State plan
approved’’ and inserting ‘‘assistance under a State program
funded’’.
(i) The Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.) is amended—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)),
by striking ‘‘The program for aid to dependent children’’ and
inserting ‘‘The State program funded’’;
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by
striking ‘‘the program for aid to families with dependent chil-
dren’’ and inserting ‘‘the State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)),
by striking ‘‘the program for aid to families with dependent
children’’ and inserting ‘‘the State program funded’’.
(j) The Elementary and Secondary Education Act of 1965 (20
U.S.C. 2701 et seq.) is amended—
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking
‘‘Aid to Families with Dependent Children program’’ and insert-
ing ‘‘State program funded under part A of title IV of the
Social Security Act’’;
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking
‘‘the program of aid to families with dependent children under
a State plan approved under’’ and inserting ‘‘a State program
funded under part A of’’; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))—
(A) in subparagraph (A)(xi), by striking ‘‘Aid to Fami-
lies with Dependent Children benefits’’ and inserting
‘‘assistance under a State program funded under part A
of title IV of the Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking ‘‘Aid to Fami-
lies with Dependent Children’’ and inserting ‘‘assistance
under the State program funded under part A of title
IV of the Social Security Act’’.
(k) The 4th proviso of chapter VII of title I of Public Law
99–88 (25 U.S.C. 13d–1) is amended to read as follows: ‘‘Provided
further, That general assistance payments made by the Bureau
of Indian Affairs shall be made—
‘‘(1) after April 29, 1985, and before October 1, 1995, on
the basis of Aid to Families with Dependent Children (AFDC)
standards of need; and
‘‘(2) on and after October 1, 1995, on the basis of standards
of need established under the State program funded under
part A of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State pro-
gram payments, the Bureau shall reduce general assistance pay-
H. R. 3734—69
ments in such State by the same percentage as the State has
reduced the AFDC or State program payment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)
is amended—
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all
that follows ‘‘agency as’’ and inserting ‘‘being eligible for finan-
cial assistance under part A of title IV of the Social Security
Act and as having continually received such financial assistance
during the 90-day period which immediately precedes the date
on which such individual is hired by the employer.’’;
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by strik-
ing ‘‘eligibility for aid or services,’’ and all that follows through
‘‘children approved’’ and inserting ‘‘eligibility for assistance,
or the amount of such assistance, under a State program
funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)),
by striking ‘‘aid to families with dependent children provided
under a State plan approved’’ and inserting ‘‘a State program
funded’’;
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))—
(A) by striking ‘‘(c) or (d)’’ each place it appears and
inserting ‘‘(c), (d), or (e)’’; and
(B) by adding at the end of subparagraph (B) the
following new sentence: ‘‘Any return information disclosed
with respect to section 6402(e) shall only be disclosed to
officers and employees of the State agency requesting such
information.’’;
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the
matter preceding subparagraph (A)—
(A) by striking ‘‘(5), (10)’’ and inserting ‘‘(5)’’; and
(B) by striking ‘‘(9), or (12)’’ and inserting ‘‘(9), (10),
or (12)’’;
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by
striking ‘‘(relating to aid to families with dependent children)’’;
(7) in section 6402 (26 U.S.C. 6402)—
(A) in subsection (a), by striking ‘‘(c) and (d)’’ and
inserting ‘‘(c), (d), and (e)’’;
(B) by redesignating subsections (e) through (i) as sub-
sections (f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
‘‘(e) COLLECTION OF OVERPAYMENTS UNDER TITLE IV–A OF THE
SOCIAL SECURITY ACT.—The amount of any overpayment to be
refunded to the person making the overpayment shall be reduced
(after reductions pursuant to subsections (c) and (d), but before
a credit against future liability for an internal revenue tax) in
accordance with section 405(e) of the Social Security Act (concerning
recovery of overpayments to individuals under State plans approved
under part A of title IV of such Act).’’; and
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under a State program funded under part A of
title IV of the Social Security Act’’.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b))
is amended by striking ‘‘State plan approved under part A of title
IV’’ and inserting ‘‘State program funded under part A of
title IV’’.
H. R. 3734—70
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.)
is amended—
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by strik-
ing ‘‘(42 U.S.C. 601 et seq.)’’;
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by strik-
ing ‘‘State aid to families with dependent children records,’’
and inserting ‘‘records collected under the State program funded
under part A of title IV of the Social Security Act,’’;
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))—
(A) by striking ‘‘the JOBS program’’ and inserting ‘‘the
work activities required under title IV of the Social Security
Act’’; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))—
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking
‘‘, including recipients under the JOBS program’’;
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29
U.S.C. 1604(a)(1) (A) and (B)), by striking ‘‘(such as the JOBS
program)’’ each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking para-
graph (4) and inserting the following:
‘‘(4) the portions of title IV of the Social Security Act
relating to work activities;’’;
(8) in section 253 (29 U.S.C. 1632)—
(A) in subsection (b)(2), by repealing subparagraph (C);
and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c),
by striking ‘‘the JOBS program or’’ each place it appears;
(9) in section 264 (29 U.S.C. 1644)—
(A) in subparagraphs (A) and (B) of subsection (b)(1),
by striking ‘‘(such as the JOBS program)’’ each place it
appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3),
by striking ‘‘and the JOBS program’’ each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking para-
graph (6) and inserting the following:
‘‘(6) the portion of title IV of the Social Security Act relating
to work activities;’’;
(11) in the second sentence of section 429(e) (29 U.S.C.
1699(e)), by striking ‘‘and shall be in an amount that does
not exceed the maximum amount that may be provided by
the State pursuant to section 402(g)(1)(C) of the Social Security
Act (42 U.S.C. 602(g)(1)(C))’’;
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking
‘‘JOBS and’’;
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking ‘‘the
JOBS program,’’;
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking ‘‘aid
to families with dependent children under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.)’’ and inserting
‘‘assistance under the State program funded under part A of
title IV of the Social Security Act’’;
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking
‘‘aid to families with dependent children’’ and inserting ‘‘assist-
ance under the State program funded’’;
H. R. 3734—71
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by
striking ‘‘aid to families with dependent children’’ and inserting
‘‘assistance under the State program funded’’; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))—
(A) in clause (v), by striking the semicolon and insert-
ing ‘‘; and’’; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code,
is amended to read as follows:
‘‘(iv) assistance under a State program funded under part
A of title IV of the Social Security Act;’’.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to
read as follows:
‘‘(i) assistance under the State program funded
under part A of title IV of the Social Security Act;’’.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42
U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 900 et seq.) is amended—
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking
‘‘Aid to families with dependent children (75–0412–0–1–609);’’
and inserting ‘‘Block grants to States for temporary assistance
for needy families;’’; and
(2) in section 256 (2 U.S.C. 906)—
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.) is amended—
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ‘‘aid
under a State plan approved under’’ each place it appears
and inserting ‘‘assistance under a State program funded under’’;
(2) in section 245A(h) (8 U.S.C. 1255a(h))—
(A) in paragraph (1)(A)(i), by striking ‘‘program of aid
to families with dependent children’’ and inserting ‘‘State
program of assistance’’; and
(B) in paragraph (2)(B), by striking ‘‘aid to families
with dependent children’’ and inserting ‘‘assistance under
a State program funded under part A of title IV of the
Social Security Act’’; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
‘‘State plan approved’’ and inserting ‘‘State program funded’’.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C.
9835(a)(4)(B)(i)) is amended by striking ‘‘program of aid to families
with dependent children under a State plan approved’’ and inserting
‘‘State program of assistance funded’’.
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter
92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-
Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended
to read as follows:
‘‘(E) part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) relating to work activities;’’.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code,
is amended by striking ‘‘section 464 or 1137 of the Social Security
H. R. 3734—72
Act’’ and inserting ‘‘section 404(e), 464, or 1137 of the Social
Security Act’’.
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESIST-
ANT SOCIAL SECURITY CARD REQUIRED.
(a) DEVELOPMENT.—
(1) IN GENERAL.—The Commissioner of Social Security (in
this section referred to as the ‘‘Commissioner’’) shall, in accord-
ance with this section, develop a prototype of a counterfeit-
resistant social security card. Such prototype card shall—
(A) be made of a durable, tamper-resistant material
such as plastic or polyester,
(B) employ technologies that provide security features,
such as magnetic stripes, holograms, and integrated
circuits, and
(C) be developed so as to provide individuals with
reliable proof of citizenship or legal resident alien status.
(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney Gen-
eral of the United States shall provide such information and
assistance as the Commissioner deems necessary to enable
the Commissioner to comply with this section.
(b) STUDY AND REPORT.—
(1) IN
GENERAL.—The Commissioner shall conduct a
study and issue a report to Congress which examines different
methods of improving the social security card application
process.
(2) ELEMENTS
OF
STUDY.—The study shall include an
evaluation of the cost and work load implications of issuing
a counterfeit-resistant social security card for all individuals
over a 3-, 5-, and 10-year period. The study shall also evaluate
the feasibility and cost implications of imposing a user fee
for replacement cards and cards issued to individuals who
apply for such a card prior to the scheduled 3-, 5-, and 10-
year phase-in options.
(3) DISTRIBUTION
OF
REPORT.—The Commissioner shall
submit copies of the report described in this subsection along
with a facsimile of the prototype card as described in subsection
(a) to the Committees on Ways and Means and Judiciary of
the House of Representatives and the Committees on Finance
and Judiciary of the Senate within 1 year after the date of
the enactment of this Act.
SEC. 112. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN
LOW-INCOME INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C.
1315 note) is amended—
(1) in the heading, by striking ‘‘DEMONSTRATION’’;
(2) by striking ‘‘demonstration’’ each place such term
appears;
(3) in subsection (a), by striking ‘‘in each of fiscal years’’
and all that follows through ‘‘10’’ and inserting ‘‘shall enter
into agreements with’’;
(4) in subsection (b)(3), by striking ‘‘aid to families with
dependent children under part A of title IV of the Social Secu-
rity Act’’ and inserting ‘‘assistance under the program funded
part A of title IV of the Social Security Act of the State in
which the individual resides’’;
(5) in subsection (c)—
H. R. 3734—73
(A) in paragraph (1)(C), by striking ‘‘aid to families
with dependent children under title IV of the Social Secu-
rity Act’’ and inserting ‘‘assistance under a State program
funded part A of title IV of the Social Security Act’’;
(B) in paragraph (2), by striking ‘‘aid to families with
dependent children under title IV of such Act’’ and inserting
‘‘assistance under a State program funded part A of title
IV of the Social Security Act’’;
(6) in subsection (d), by striking ‘‘job opportunities and
basic skills training program (as provided for under title IV
of the Social Security Act)’’ and inserting ‘‘the State program
funded under part A of title IV of the Social Security
Act’’; and
(7) by striking subsections (e) through (g) and inserting
the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of
conducting projects under this section, there is authorized to be
appropriated an amount not to exceed $25,000,000 for any fiscal
year.’’.
SEC. 113. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR
TECHNICAL AND CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of
this Act, the Secretary of Health and Human Services and the
Commissioner of Social Security, in consultation, as appropriate,
with the heads of other Federal agencies, shall submit to the
appropriate committees of Congress a legislative proposal proposing
such technical and conforming amendments as are necessary to
bring the law into conformity with the policy embodied in this
title.
SEC. 
114. 
ASSURING 
MEDICAID 
COVERAGE 
FOR 
LOW-INCOME
FAMILIES.
(a) IN GENERAL.—Title XIX is amended—
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new section:
‘‘ASSURING COVERAGE FOR CERTAIN LOW-INCOME FAMILIES
‘‘SEC. 1931. (a) REFERENCES TO TITLE IV–A ARE REFERENCES
TO PRE-WELFARE-REFORM PROVISIONS.—Subject to the succeeding
provisions of this section, with respect to a State any reference
in this title (or any other provision of law in relation to the operation
of this title) to a provision of part A of title IV, or a State plan
under such part (or a provision of such a plan), including income
and resource standards and income and resource methodologies
under such part or plan, shall be considered a reference to such
a provision or plan as in effect as of July 16, 1996, with respect
to the State.
‘‘(b) 
APPLICATION
OF
PRE-WELFARE-REFORM
ELIGIBILITY
CRITERIA.—
‘‘(1) IN
GENERAL.—For purposes of this title, subject to
paragraphs (2) and (3), in determining eligibility for medical
assistance—
‘‘(A) an individual shall be treated as receiving aid
or assistance under a State plan approved under part A
of title IV only if the individual meets—
H. R. 3734—74
‘‘(i) the income and resource standards for deter-
mining eligibility under such plan, and
‘‘(ii) the eligibility requirements of such plan under
subsections (a) through (c) of section 406 and section
407(a),
as in effect as of July 16, 1996; and
‘‘(B) the income and resource methodologies under such
plan as of such date shall be used in the determination
of whether any individual meets income and resource
standards under such plan.
‘‘(2) STATE OPTION.—For purposes of applying this section,
a State—
‘‘(A) may lower its income standards applicable with
respect to part A of title IV, but not below the income
standards applicable under its State plan under such part
on May 1, 1988;
‘‘(B) may increase income or resource standards under
the State plan referred to in paragraph (1) over a period
(beginning after July 16, 1996) by a percentage that does
not exceed the percentage increase in the Consumer Price
Index for all urban consumers (all items; United States
city average) over such period; and
‘‘(C) may use income and resource methodologies that
are less restrictive than the methodologies used under the
State plan under such part as of July 16, 1996.
‘‘(3) OPTION
TO
TERMINATE
MEDICAL
ASSISTANCE
FOR
FAILURE TO MEET WORK REQUIREMENT.—
‘‘(A) INDIVIDUALS RECEIVING CASH ASSISTANCE UNDER
TANF.—In the case of an individual who—
‘‘(i) is receiving cash assistance under a State pro-
gram funded under part A of title IV,
‘‘(ii) is eligible for medical assistance under this
title on a basis not related to section 1902(l), and
‘‘(iii) has the cash assistance under such program
terminated pursuant to section 407(e)(1)(B) (as in effect
on or after the welfare reform effective date) because
of refusing to work,
the State may terminate such individual’s eligibility for
medical assistance under this title until such time as there
no longer is a basis for the termination of such cash assist-
ance because of such refusal.
‘‘(B) EXCEPTION
FOR
CHILDREN.—Subparagraph (A)
shall not be construed as permitting a State to terminate
medical assistance for a minor child who is not the head
of a household receiving assistance under a State program
funded under part A of title IV.
‘‘(c) TREATMENT
FOR PURPOSES
OF TRANSITIONAL COVERAGE
PROVISIONS.—
‘‘(1) TRANSITION IN THE CASE OF CHILD SUPPORT COLLEC-
TIONS.—The provisions of section 406(h) (as in effect on July
16, 1996) shall apply, in relation to this title, with respect
to individuals (and families composed of individuals) who are
described in subsection (b)(1)(A), in the same manner as they
applied before such date with respect to individuals who became
ineligible for aid to families with dependent children as a
result (wholly or partly) of the collection of child or spousal
support under part D of title IV.
H. R. 3734—75
‘‘(2) TRANSITION IN THE CASE OF EARNINGS FROM EMPLOY-
MENT.—For continued medical assistance in the case of individ-
uals (and families composed of individuals) described in sub-
section (b)(1)(A) who would otherwise become ineligible because
of hours or income from employment, see sections 1925 and
1902(e)(1).
‘‘(d) WAIVERS.—In the case of a waiver of a provision of part
A of title IV in effect with respect to a State as of July 16,
1996, or which is submitted to the Secretary before the date of
the enactment of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 and approved by the Secretary on or
before July 1, 1997, if the waiver affects eligibility of individuals
for medical assistance under this title, such waiver may (but need
not) continue to be applied, at the option of the State, in relation
to this title after the date the waiver would otherwise expire.
‘‘(e) STATE OPTION TO USE 1 APPLICATION FORM.—Nothing
in this section, or part A of title IV, shall be construed as preventing
a State from providing for the same application form for assistance
under a State program funded under part A of title IV (on or
after the welfare reform effective date) and for medical assistance
under this title.
‘‘(f) ADDITIONAL RULES OF CONSTRUCTION.—
‘‘(1) With respect to the reference in section 1902(a)(5)
to a State plan approved under part A of title IV, a State
may treat such reference as a reference either to a State pro-
gram funded under such part (as in effect on and after the
welfare reform effective date) or to the State plan under this
title.
‘‘(2) Any reference in section 1902(a)(55) to a State plan
approved under part A of title IV shall be deemed a reference
to a State program funded under such part.
‘‘(3) In applying section 1903(f), the applicable income
limitation otherwise determined shall be subject to increase
in the same manner as income or resource standards of a
State may be increased under subsection (b)(2)(B).
‘‘(g) RELATION TO OTHER PROVISIONS.—The provisions of this
section shall apply notwithstanding any other provision of this
Act.
‘‘(h) TRANSITIONAL INCREASED FEDERAL MATCHING RATE FOR
INCREASED ADMINISTRATIVE COSTS.—
‘‘(1) IN GENERAL.—Subject to the succeeding provisions of
this subsection, the Secretary shall provide that with respect
to administrative expenditures described in paragraph (2) the
per centum specified in section 1903(a)(7) shall be increased
to such percentage as the Secretary specifies.
‘‘(2) 
ADMINISTRATIVE
EXPENDITURES
DESCRIBED.—The
administrative expenditures described in this paragraph are
expenditures described in section 1903(a)(7) that a State dem-
onstrates to the satisfaction of the Secretary are attributable
to administrative costs of eligibility determinations that (but
for the enactment of this section) would not be incurred.
‘‘(3) LIMITATION.—The total amount of additional Federal
funds that are expended as a result of the application of this
subsection for the period beginning with fiscal year 1997 and
ending with fiscal year 2000 shall not exceed $500,000,000.
In applying this paragraph, the Secretary shall ensure the
equitable distribution of additional funds among the States.
H. R. 3734—76
‘‘(4) TIME LIMITATION.—This subsection shall only apply
with respect to a State for expenditures incurred during the
first 12 calendar quarters in which the State program funded
under part A of title IV (as in effect on and after the welfare
reform effective date) is in effect.
‘‘(i) WELFARE REFORM EFFECTIVE DATE.—In this section, the
term ‘welfare reform effective date’ means the effective date, with
respect to a State, of title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (as specified in section
116 of such Act).’’.
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C. 1396a(a))
is amended—
(1) by striking ‘‘and’’ at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62)
and inserting ‘‘; and’’, and
(3) by inserting after paragraph (62) the following new
paragraph:
‘‘(63) provide for administration and determinations of eligi-
bility with respect to individuals who are (or seek to be) eligible
for medical assistance based on the application of section 1931.’’.
(c) EXTENSION
OF WORK TRANSITION PROVISIONS.—Sections
1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are
each amended by striking ‘‘1998’’ and inserting ‘‘2001’’.
(d) ELIMINATION OF REQUIREMENT OF MINIMUM AFDC PAYMENT
LEVELS.—(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by
striking ‘‘if—’’ and all that follows and inserting the following:
‘‘if the State requires individuals described in subsection (l)(1) to
apply for assistance under the State program funded under part
A of title IV as a condition of applying for or receiving medical
assistance under this title.’’.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking
paragraph (9).
SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-
RELATED CONVICTIONS.
(a) IN GENERAL.—An individual convicted (under Federal or
State law) of any offense which is classified as a felony by the
law of the jurisdiction involved and which has as an element the
possession, use, or distribution of a controlled substance (as defined
in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6)))
shall not be eligible for—
(1) assistance under any State program funded under part
A of title IV of the Social Security Act, or
(2) benefits under the food stamp program (as defined
in section 3(h) of the Food Stamp Act of 1977) or any State
program carried out under the Food Stamp Act of 1977.
(b) EFFECTS ON ASSISTANCE AND BENEFITS FOR OTHERS.—
(1) PROGRAM
OF
TEMPORARY
ASSISTANCE
FOR
NEEDY
FAMILIES.—The amount of assistance otherwise required to be
provided under a State program funded under part A of title
IV of the Social Security Act to the family members of an
individual to whom subsection (a) applies shall be reduced
by the amount which would have otherwise been made available
to the individual under such part.
(2) BENEFITS UNDER THE FOOD STAMP ACT OF 1977.—The
amount of benefits otherwise required to be provided to a
household under the food stamp program (as defined in section
H. R. 3734—77
3(h) of the Food Stamp Act of 1977), or any State program
carried out under the Food Stamp Act of 1977, shall be deter-
mined by considering the individual to whom subsection (a)
applies not to be a member of such household, except that
the income and resources of the individual shall be considered
to be income and resources of the household.
(c) ENFORCEMENT.—A State that has not exercised its authority
under subsection (d)(1)(A) shall require each individual applying
for assistance or benefits referred to in subsection (a), during the
application process, to state, in writing, whether the individual,
or any member of the household of the individual, has been con-
victed of a crime described in subsection (a).
(d) LIMITATIONS.—
(1) STATE ELECTIONS.—
(A) OPT OUT.—A State may, by specific reference in
a law enacted after the date of the enactment of this
Act, exempt any or all individuals domiciled in the State
from the application of subsection (a).
(B) LIMIT PERIOD OF PROHIBITION.—A State may, by
law enacted after the date of the enactment of this Act,
limit the period for which subsection (a) shall apply to
any or all individuals domiciled in the State.
(2) INAPPLICABILITY
TO
CONVICTIONS
OCCURRING
ON
OR
BEFORE ENACTMENT.—Subsection (a) shall not apply to convic-
tions occurring on or before the date of the enactment of this
Act.
(e) DEFINITIONS OF STATE.—For purposes of this section, the
term ‘‘State’’ has the meaning given it—
(1) in section 419(5) of the Social Security Act, when refer-
ring to assistance provided under a State program funded under
part A of title IV of the Social Security Act, and
(2) in section 3(m) of the Food Stamp Act of 1977, when
referring to the food stamp program (as defined in section
3(h) of the Food Stamp Act of 1977) or any State program
carried out under the Food Stamp Act of 1977.
(f) RULE OF INTERPRETATION.—Nothing in this section shall
be construed to deny the following Federal benefits:
(1) Emergency medical services under title XIX of the Social
Security Act.
(2) Short-term, noncash, in-kind emergency disaster relief.
(3)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of
communicable diseases if the Secretary of Health and Human
Services determines that it is necessary to prevent the spread
of such disease.
(4) Prenatal care.
(5) Job training programs.
(6) Drug treatment programs.
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as otherwise provided in this title,
this title and the amendments made by this title shall take
effect on July 1, 1997.
(2) DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS.—
Notwithstanding any other provision of this section, paragraphs
(2), (3), (4), (5), (8), and (10) of section 409(a) and section
H. R. 3734—78
411(a) of the Social Security Act (as added by the amendments
made by section 103(a) of this Act) shall not take effect with
respect to a State until, and shall apply only with respect
to conduct that occurs on or after, the later of—
(A) July 1, 1997; or
(B) the date that is 6 months after the date the Sec-
retary of Health and Human Services receives from the
State a plan described in section 402(a) of the Social Secu-
rity Act (as added by such amendment).
(3) GRANTS TO OUTLYING AREAS.—The amendments made
by section 103(b) shall take effect on October 1, 1996.
(4) ELIMINATION OF CHILD CARE PROGRAMS.—The amend-
ments made by section 103(c) shall take effect on October
1, 1996.
(5) DEFINITIONS APPLICABLE TO NEW CHILD CARE ENTITLE-
MENT.—Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the
Social Security Act, as added by the amendments made by
section 103(a) of this Act, shall take effect on October 1, 1996.
(b) TRANSITION RULES.—Effective on the date of the enactment
of this Act:
(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE.—
(A) IN
GENERAL.—If the Secretary of Health and
Human Services receives from a State a plan described
in section 402(a) of the Social Security Act (as added
by the amendment made by section 103(a)(1) of this Act),
then—
(i) on and after the date of such receipt—
(I) except as provided in clause (ii), this title
and the amendments made by this title (other
than by section 103(c) of this Act) shall apply
with respect to the State; and
(II) the State shall be considered an eligible
State for purposes of part A of title IV of the
Social Security Act (as in effect pursuant to the
amendments made by such section 103(a)); and
(ii) during the period that begins on the date of
such receipt and ends on June 30, 1997, there shall
remain in effect with respect to the State—
(I) section 403(h) of the Social Security Act
(as in effect on September 30, 1995); and
(II) all State reporting requirements under
parts A and F of title IV of the Social Security
Act (as in effect on September 30, 1995), modified
by the Secretary as appropriate, taking into
account the State program under part A of title
IV of the Social Security Act (as in effect pursuant
to the amendments made by such section 103(a)).
(B) LIMITATIONS ON FEDERAL OBLIGATIONS.—
(i) UNDER AFDC PROGRAM.—The total obligations
of the Federal Government to a State under part A
of title IV of the Social Security Act (as in effect on
September 30, 1995) with respect to expenditures in
fiscal year 1997 shall not exceed an amount equal
to the State family assistance grant.
(ii) UNDER
TEMPORARY
FAMILY
ASSISTANCE
PRO-
GRAM.—Notwithstanding section 403(a)(1) of the Social
Security Act (as in effect pursuant to the amendments
H. R. 3734—79
made by section 103(a) of this Act), the total obligations
of the Federal Government to a State under such sec-
tion 403(a)(1)—
(I) for fiscal year 1996, shall be an amount
equal to—
(aa) the State family assistance grant;
multiplied by
(bb) 1⁄366 of the number of days during
the period that begins on the date the
Secretary of Health and Human Services first
receives from the State a plan described in
section 402(a) of the Social Security Act (as
added by the amendment made by section
103(a)(1) of this Act) and ends on September
30, 1996; and
(II) for fiscal year 1997, shall be an amount
equal to the lesser of—
(aa) the amount (if any) by which the
State family assistance grant exceeds the total
obligations of the Federal Government to the
State under part A of title IV of the Social
Security Act (as in effect on September 30,
1995) with respect to expenditures in fiscal
year 1997; or
(bb) the State family assistance grant,
multiplied by 1⁄365 of the number of days dur-
ing the period that begins on October 1, 1996,
or the date the Secretary of Health and
Human Services first receives from the State
a plan described in section 402(a) of the Social
Security Act (as added by the amendment
made by section 103(a)(1) of this Act), which-
ever is later, and ends on September 30, 1997.
(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETER-
MINING FEDERAL AFDC OBLIGATIONS.—As used in this
subparagraph, the term ‘‘obligations of the Federal
Government to the State under part A of title IV
of the Social Security Act’’ does not include any obliga-
tion of the Federal Government with respect to child
care expenditures by the State.
(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996
OR 1997 DEEMED ACCEPTANCE OF GRANT LIMITATIONS AND
FORMULA AND TERMINATION OF AFDC ENTITLEMENT.—The
submission of a plan by a State pursuant to subparagraph
(A) is deemed to constitute—
(i) the State’s acceptance of the grant reductions
under subparagraph (B) (including the formula for
computing the amount of the reduction); and
(ii) the termination of any entitlement of any
individual or family to benefits or services under the
State AFDC program.
(D) DEFINITIONS.—As used in this paragraph:
(i) STATE AFDC PROGRAM.—The term ‘‘State AFDC
program’’ means the State program under parts A and
F of title IV of the Social Security Act (as in effect
on September 30, 1995).
H. R. 3734—80
(ii) STATE.—The term ‘‘State’’ means the 50 States
and the District of Columbia.
(iii) STATE FAMILY ASSISTANCE GRANT.—The term
‘‘State family assistance grant’’ means the State family
assistance grant (as defined in section 403(a)(1)(B) of
the Social Security Act, as added by the amendment
made by section 103(a)(1) of this Act).
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments
made by this title shall not apply with respect to—
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services
provided before the effective date of this title under the
provisions amended; and
(B) administrative actions and proceedings commenced
before such date, or authorized before such date to be
commenced, under such provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMI-
NATED OR SUBSTANTIALLY MODIFIED BY THIS TITLE.—In closing
out accounts, Federal and State officials may use scientifically
acceptable statistical sampling techniques. Claims made with
respect to State expenditures under a State plan approved
under part A of title IV of the Social Security Act (as in
effect on September 30, 1995) with respect to assistance or
services provided on or before September 30, 1995, shall be
treated as claims with respect to expenditures during fiscal
year 1995 for purposes of reimbursement even if payment was
made by a State on or after October 1, 1995. Each State
shall complete the filing of all claims under the State plan
(as so in effect) within 2 years after the date of the enactment
of this Act. The head of each Federal department shall—
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs
under such State plans; and
(B) reimburse States for any payments made for assist-
ance or services provided during a prior fiscal year from
funds for fiscal year 1995, rather than from funds author-
ized by this title.
(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR
FAMILY SUPPORT.—The individual who, on the day before the
effective date of this title, is serving as Assistant Secretary
for Family Support within the Department of Health and
Human Services shall, until a successor is appointed to such
position—
(A) continue to serve in such position; and
(B) except as otherwise provided by law—
(i) continue to perform the functions of the Assist-
ant Secretary for Family Support under section 417
of the Social Security Act (as in effect before such
effective date); and
(ii) have the powers and duties of the Assistant
Secretary for Family Support under section 416 of
the Social Security Act (as in effect pursuant to the
amendment made by section 103(a)(1) of this Act).
(c) TERMINATION OF ENTITLEMENT UNDER AFDC PROGRAM.—
Effective October 1, 1996, no individual or family shall be entitled
to any benefits or services under any State plan approved under
H. R. 3734—81
part A or F of title IV of the Social Security Act (as in effect
on September 30, 1995).
TITLE II—SUPPLEMENTAL SECURITY
INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this title
an amendment is expressed in terms of an amendment to or repeal
of a section or other provision, the reference shall be considered
to be made to that section or other provision of the Social Security
Act.
Subtitle A—Eligibility Restrictions
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN BENEFITS SIMULTA-
NEOUSLY IN 2 OR MORE STATES.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 105(b)(4)(A) of the Contract with America
Advancement Act of 1996, is amended by redesignating paragraph
(5) as paragraph (3) and by adding at the end the following new
paragraph:
‘‘(4)(A) No person shall be considered an eligible individual
or eligible spouse for purposes of this title during the 10-year
period that begins on the date the person is convicted in Federal
or State court of having made a fraudulent statement or representa-
tion with respect to the place of residence of the person in order
to receive assistance simultaneously from 2 or more States under
programs that are funded under title IV, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States under the
supplemental security income program under this title.
‘‘(B) As soon as practicable after the conviction of a person
in a Federal or State court as described in subparagraph (A),
an official of such court shall notify the Commissioner of such
conviction.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBA-
TION AND PAROLE VIOLATORS.
(a) IN
GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 201(a) of this Act, is amended by adding at
the end the following new paragraph:
‘‘(5) No person shall be considered an eligible individual or
eligible spouse for purposes of this title with respect to any month
if during such month the person is—
‘‘(A) fleeing to avoid prosecution, or custody or confinement
after conviction, under the laws of the place from which the
person flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which
the person flees, or which, in the case of the State of
New Jersey, is a high misdemeanor under the laws of such
State; or
H. R. 3734—82
‘‘(B) violating a condition of probation or parole imposed
under Federal or State law.’’.
(b) EXCHANGE OF INFORMATION.—Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 201(a) of this Act and subsection
(a) of this section, is amended by adding at the end the following
new paragraph:
‘‘(6) Notwithstanding any other provision of law (other than
section 6103 of the Internal Revenue Code of 1986), the Commis-
sioner shall furnish any Federal, State, or local law enforcement
officer, upon the written request of the officer, with the current
address, Social Security number, and photograph (if applicable)
of any recipient of benefits under this title, if the officer furnishes
the Commissioner with the name of the recipient, and other identify-
ing information as reasonably required by the Commissioner to
establish the unique identity of the recipient, and notifies the
Commissioner that—
‘‘(A) the recipient—
‘‘(i) is described in subparagraph (A) or (B) of para-
graph (5); and
‘‘(ii) has information that is necessary for the officer
to conduct the officer’s official duties; and
‘‘(B) the location or apprehension of the recipient is within
the officer’s official duties.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 203. TREATMENT OF PRISONERS.
(a) IMPLEMENTATION
OF PROHIBITION AGAINST PAYMENT
OF
BENEFITS TO PRISONERS.—
(1) IN GENERAL.—Section 1611(e)(1) (42 U.S.C. 1382(e)(1))
is amended by adding at the end the following new subpara-
graph:
‘‘(I)(i) The Commissioner shall enter into an agreement, with
any interested State or local institution described in clause (i)
or (ii) of section 202(x)(1)(A) the primary purpose of which is to
confine individuals as described in section 202(x)(1)(A), under
which—
‘‘(I) the institution shall provide to the Commissioner, on
a monthly basis and in a manner specified by the Commis-
sioner, the names, social security account numbers, dates
of birth, confinement commencement dates, and, to the extent
available to the institution, such other identifying information
concerning the inmates of the institution as the Commissioner
may require for the purpose of carrying out paragraph (1);
and
‘‘(II) the Commissioner shall pay to any such institution,
with respect to each inmate of the institution who is eligible
for a benefit under this title for the month preceding the
first month throughout which such inmate is in such institution
and becomes ineligible for such benefit as a result of the applica-
tion of this subparagraph, $400 if the institution furnishes
the information described in subclause (I) to the Commissioner
within 30 days after the date such individual becomes an
inmate of such institution, or $200 if the institution furnishes
such information after 30 days after such date but within
90 days after such date.
H. R. 3734—83
‘‘(ii)(I) The provisions of section 552a of title 5, United States
Code, shall not apply to any agreement entered into under clause
(i) or to information exchanged pursuant to such agreement.
‘‘(II) The Commissioner is authorized to provide, on a reimburs-
able basis, information obtained pursuant to agreements entered
into under clause (i) to any Federal or federally-assisted cash,
food, or medical assistance program for eligibility purposes.
‘‘(iii) Payments to institutions required by clause (i)(II) shall
be made from funds otherwise available for the payment of benefits
under this title and shall be treated as direct spending for purposes
of the Balanced Budget and Emergency Deficit Control Act of 1985.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to individuals whose period of confinement
in an institution commences on or after the first day of the
seventh month beginning after the month in which this Act
is enacted.
(b) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN THE COLLEC-
TION OF INFORMATION RESPECTING PUBLIC INMATES.—
(1) STUDY.—The Commissioner of Social Security shall con-
duct a study of the desirability, feasibility, and cost of—
(A) establishing a system under which Federal, State,
and local courts would furnish to the Commissioner such
information respecting court orders by which individuals
are confined in jails, prisons, or other public penal, correc-
tional, or medical facilities as the Commissioner may
require for the purpose of carrying out section 1611(e)(1)
of the Social Security Act; and
(B) requiring that State and local jails, prisons, and
other institutions that enter into agreements with the
Commissioner under section 1611(e)(1)(I) of the Social Secu-
rity Act furnish the information required by such agree-
ments to the Commissioner by means of an electronic or
other sophisticated data exchange system.
(2) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Commissioner of Social Security
shall submit a report on the results of the study conducted
pursuant to this subsection to the Committee on Finance of
the Senate and the Committee on Ways and Means of the
House of Representatives.
(c) ADDITIONAL REPORT TO CONGRESS.—Not later than October
1, 1998, the Commissioner of Social Security shall provide to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a list of the institutions
that are and are not providing information to the Commissioner
under section 1611(e)(1)(I) of the Social Security Act (as added
by this section).
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.
(a) IN
GENERAL.—Subparagraphs (A) and (B) of section
1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as follows:
‘‘(A) the first day of the month following the date such
application is filed, or
‘‘(B) the first day of the month following the date such
individual becomes eligible for such benefits with respect to
such application.’’.
H. R. 3734—84
(b) SPECIAL RULE RELATING
TO EMERGENCY ADVANCE PAY-
MENTS.—Section 
1631(a)(4)(A) 
(42 
U.S.C. 
1383(a)(4)(A)) 
is
amended—
(1) by inserting ‘‘for the month following the date the
application is filed’’ after ‘‘is presumptively eligible for such
benefits’’; and
(2) by inserting ‘‘, which shall be repaid through propor-
tionate reductions in such benefits over a period of not more
than 6 months’’ before the semicolon.
(c) CONFORMING AMENDMENTS.—
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended—
(A) by striking ‘‘or requests’’ and inserting ‘‘, on the
first day of the month following the date the application
is filed, or, in any case in which either spouse requests’’;
and
(B) by striking ‘‘application or’’.
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended
by inserting ‘‘following the month’’ after ‘‘beginning with the
month’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall apply to applications for benefits under title XVI of the
Social Security Act filed on or after the date of the enactment
of this Act, without regard to whether regulations have been
issued to implement such amendments.
(2) BENEFITS UNDER TITLE XVI.—For purposes of this sub-
section, the term ‘‘benefits under title XVI of the Social Security
Act’’ includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.
Subtitle B—Benefits for Disabled Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY.—Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of the
Contract with America Advancement Act of 1996, is amended—
(1) in subparagraph (A), by striking ‘‘An individual’’ and
inserting ‘‘Except as provided in subparagraph (C), an indi-
vidual’’;
(2) in subparagraph (A), by striking ‘‘(or, in the case of
an individual under the age of 18, if he suffers from any
medically determinable physical or mental impairment of com-
parable severity)’’;
(3) by redesignating subparagraphs (C) through (I) as sub-
paragraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C)(i) An individual under the age of 18 shall be considered
disabled for the purposes of this title if that individual has a
medically determinable physical or mental impairment, which
results in marked and severe functional limitations, and which
can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12
months.
H. R. 3734—85
‘‘(ii) Notwithstanding clause (i), no individual under the age
of 18 who engages in substantial gainful activity (determined in
accordance with regulations prescribed pursuant to subparagraph
(E)) may be considered to be disabled.’’; and
(5) in subparagraph (F), as redesignated by paragraph (3),
by striking ‘‘(D)’’ and inserting ‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION
OF MENTAL AND EMOTIONAL DISORDERS.—The Commissioner of
Social 
Security 
shall 
modify 
sections 
112.00C.2. 
and
112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title
20, Code of Federal Regulations, to eliminate references to
maladaptive behavior in the domain of personal/behavorial
function.
(2) 
DISCONTINUANCE
OF
INDIVIDUALIZED
FUNCTIONAL
ASSESSMENT.—The Commissioner of Social Security shall dis-
continue the individualized functional assessment for children
set forth in sections 416.924d and 416.924e of title 20, Code
of Federal Regulations.
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES
TO INDIVIDUALS UNDER THE AGE OF 18.—Section 1614(a)(4) (42
U.S.C. 1382(a)(4)) is amended—
(1) by redesignating subclauses (I) and (II) of clauses (i)
and (ii) of subparagraph (B) as items (aa) and (bb), respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively;
(4) by inserting before clause (i) (as redesignated by para-
graph (3)) the following new subparagraph:
‘‘(A) in the case of an individual who is age 18 or
older—’’;
(5) by inserting after and below subparagraph (A)(iii) (as
so redesignated) the following new subparagraph:
‘‘(B) in the case of an individual who is under the age
of 18—
‘‘(i) substantial evidence which demonstrates that
there has been medical improvement in the individual’s
impairment or combination of impairments, and that such
impairment or combination of impairments no longer
results in marked and severe functional limitations; or
‘‘(ii) substantial evidence which demonstrates that, as
determined on the basis of new or improved diagnostic
techniques or evaluations, the individual’s impairment or
combination of impairments, is not as disabling as it was
considered to be at the time of the most recent prior deci-
sion that the individual was under a disability or continued
to be under a disability, and such impairment or combina-
tion of impairments does not result in marked and severe
functional limitations; or’’;
(6) by redesignating subparagraph (D) as subparagraph
(C) and by inserting in such subparagraph ‘‘in the case of
any individual,’’ before ‘‘substantial evidence’’; and
(7) in the first sentence following subparagraph (C) (as
redesignated by paragraph (6)), by—
(A) inserting ‘‘(i)’’ before ‘‘to restore’’; and
H. R. 3734—86
(B) inserting ‘‘, or (ii) in the case of an individual
under the age of 18, to eliminate or improve the individual’s
impairment or combination of impairments so that it no
longer results in marked and severe functional limitations’’
immediately before the period.
(d) EFFECTIVE DATES, ETC.—
(1) EFFECTIVE DATES.—
(A) SUBSECTIONS (a) AND (b).—
(i) IN GENERAL.—The provisions of, and amend-
ments made by, subsections (a) and (b) of this section
shall apply to any individual who applies for, or whose
claim is finally adjudicated with respect to, benefits
under title XVI of the Social Security Act on or after
the date of the enactment of this Act, without regard
to whether regulations have been issued to implement
such provisions and amendments.
(ii) DETERMINATION OF FINAL ADJUDICATION.—For
purposes of clause (i), no individual’s claim with respect
to such benefits may be considered to be finally adju-
dicated before such date of enactment if, on or after
such date, there is pending a request for either
administrative or judicial review with respect to such
claim that has been denied in whole, or there is pend-
ing, with respect to such claim, readjudication by the
Commissioner of Social Security pursuant to relief in
a class action or implementation by the Commissioner
of a court remand order.
(B) SUBSECTION (c).—The amendments made by sub-
section (c) of this section shall apply with respect to benefits
under title XVI of the Social Security Act for months begin-
ning on or after the date of the enactment of this Act,
without regard to whether regulations have been issued
to implement such amendments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) 
ELIGIBILITY
REDETERMINATIONS.—During 
the
period beginning on the date of the enactment of this
Act and ending on the date which is 1 year after such
date of enactment, the Commissioner of Social Security
shall redetermine the eligibility of any individual under
age 18 who is eligible for supplemental security income
benefits by reason of disability under title XVI of the Social
Security Act as of the date of the enactment of this Act
and whose eligibility for such benefits may terminate by
reason of the provisions of, or amendments made by, sub-
sections (a) and (b) of this section. With respect to any
redetermination under this subparagraph—
(i) section 1614(a)(4) of the Social Security Act
(42 U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply
the eligibility criteria for new applicants for benefits
under title XVI of such Act;
(iii) the Commissioner shall give such redetermina-
tion priority over all continuing eligibility reviews and
other reviews under such title; and
(iv) such redetermination shall be counted as a
review or redetermination otherwise required to be
made under section 208 of the Social Security
H. R. 3734—87
Independence and Program Improvements Act of 1994
or any other provision of title XVI of the Social Security
Act.
(B) GRANDFATHER PROVISION.—The provisions of, and
amendments made by, subsections (a) and (b) of this sec-
tion, and the redetermination under subparagraph (A),
shall only apply with respect to the benefits of an individual
described in subparagraph (A) for months beginning on
or after the later of July 1, 1997, or the date of the redeter-
mination with respect to such individual.
(C) NOTICE.—Not later than January 1, 1997, the
Commissioner of Social Security shall notify an individual
described in subparagraph (A) of the provisions of this
paragraph.
(3) REPORT.—The Commissioner of Social Security shall
report to the Congress regarding the progress made in
implementing the provisions of, and amendments made by,
this section on child disability evaluations not later than 180
days after the date of the enactment of this Act.
(4) REGULATIONS.—Notwithstanding any other provision of
law, the Commissioner of Social Security shall submit for review
to the committees of jurisdiction in the Congress any final
regulation pertaining to the eligibility of individuals under
age 18 for benefits under title XVI of the Social Security Act
at least 45 days before the effective date of such regulation.
The submission under this paragraph shall include supporting
documentation providing a cost analysis, workload impact, and
projections as to how the regulation will effect the future num-
ber of recipients under such title.
(5) CAP
ADJUSTMENT
FOR
SSI
ADMINISTRATIVE
WORK
REQUIRED BY WELFARE REFORM.—
(A) AUTHORIZATION.—For the additional costs of
continuing disability reviews and redeterminations under
title XVI of the Social Security Act, there is hereby author-
ized to be appropriated to the Social Security Administra-
tion, in addition to amounts authorized under section
201(g)(1)(A) of the Social Security Act, $150,000,000 in
fiscal year 1997 and $100,000,000 in fiscal year 1998.
(B) CAP ADJUSTMENT.—Section 251(b)(2)(H) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985,
as amended by section 103(b) of the Contract with America
Advancement Act of 1996, is amended—
(i) in clause (i)—
(I) in subclause (II) by—
(aa) striking ‘‘$25,000,000’’ and inserting
‘‘$175,000,000’’; and
(bb) striking ‘‘$160,000,000’’ and inserting
‘‘$310,000,000’’; and
(II) in subclause (III) by—
(aa) striking ‘‘$145,000,000’’ and inserting
‘‘$245,000,000’’; and
(bb) striking ‘‘$370,000,000’’ and inserting
‘‘$470,000,000’’; and
(ii) by amending clause (ii)(I) to read as follows:
‘‘(I) the term ‘continuing disability reviews’ means
reviews or redeterminations as defined under section
201(g)(1)(A) of the Social Security Act and reviews
H. R. 3734—88
and redeterminations authorized under section 211 of
the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996;’’.
(C) 
ADJUSTMENTS.—Section 
606(e)(1)(B) 
of 
the
Congressional Budget Act of 1974 is amended by adding
at the end the following new sentences: ‘‘If the adjustments
referred to in the preceding sentence are made for an
appropriations measure that is not enacted into law, then
the Chairman of the Committee on the Budget of the
House of Representatives shall, as soon as practicable,
reverse those adjustments. The Chairman of the Committee
on the Budget of the House of Representatives shall submit
any adjustments made under this subparagraph to the
House of Representatives and have such adjustments pub-
lished in the Congressional Record.’’.
(D) CONFORMING AMENDMENT.—Section 103(d)(1) of the
Contract with America Advancement Act of 1996 (42 U.S.C.
401 note) is amended by striking ‘‘medicaid programs.’’
and inserting ‘‘medicaid programs, except that the amounts
appropriated pursuant to the authorization and discre-
tionary 
spending 
allowance 
provisions 
in 
section
211(d)(2)(5) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 shall be used only for
continuing disability reviews and redeterminations under
title XVI of the Social Security Act.’’.
(6) BENEFITS UNDER TITLE XVI.—For purposes of this sub-
section, the term ‘‘benefits under title XVI of the Social Security
Act’’ includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a) of the
Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93–66.
SEC. 
212. 
ELIGIBILITY 
REDETERMINATIONS 
AND 
CONTINUING
DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING
TO CERTAIN
CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as
redesignated by section 211(a)(3) of this Act, is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new clause:
‘‘(ii)(I) Not less frequently than once every 3 years, the Commis-
sioner shall review in accordance with paragraph (4) the continued
eligibility for benefits under this title of each individual who has
not attained 18 years of age and is eligible for such benefits by
reason of an impairment (or combination of impairments) which
is likely to improve (or, at the option of the Commissioner,
which is unlikely to improve).
‘‘(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(III) If the representative payee refuses to comply without
good cause with the requirements of subclause (II), the Commis-
sioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly suspend pay-
ment of benefits to the representative payee, and provide for pay-
H. R. 3734—89
ment of benefits to an alternative representative payee of the
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(IV) Subclause (II) shall not apply to the representative payee
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (II) should
not apply to an individual’s representative payee.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR
SSI RECIPIENTS WHO ATTAIN 18 YEARS OF AGE.—
(1) 
IN
GENERAL.—Section 
1614(a)(3)(H) 
(42 
U.S.C.
1382c(a)(3)(H)), as amended by subsection (a) of this section,
is amended by adding at the end the following new clause:
‘‘(iii) If an individual is eligible for benefits under this title
by reason of disability for the month preceding the month in which
the individual attains the age of 18 years, the Commissioner shall
redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the individual’s
18th birthday; and
‘‘(II) by applying the criteria used in determining the initial
eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause, paragraph
(4) shall not apply and such redetermination shall be considered
a substitute for a review or redetermination otherwise required
under any other provision of this subparagraph during that 1-
year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the Social Secu-
rity Independence and Program Improvements Act of 1994 (42
U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR LOW BIRTH
WEIGHT BABIES.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)),
as amended by subsections (a) and (b) of this section, is amended
by adding at the end the following new clause:
‘‘(iv)(I) Not later than 12 months after the birth of an individual,
the Commissioner shall review in accordance with paragraph (4)
the continuing eligibility for benefits under this title by reason
of disability of such individual whose low birth weight is a contribut-
ing factor material to the Commissioner’s determination that the
individual is disabled.
‘‘(II) A review under subclause (I) shall be considered a sub-
stitute for a review otherwise required under any other provision
of this subparagraph during that 12-month period.
‘‘(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of review,
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and
available, of the condition which was the basis for providing benefits
under this title.
‘‘(IV) If the representative payee refuses to comply without
good cause with the requirements of subclause (III), the Commis-
sioner of Social Security shall, if the Commissioner determines
it is in the best interest of the individual, promptly suspend pay-
ment of benefits to the representative payee, and provide for
payment of benefits to an alternative representative payee of the
H. R. 3734—90
individual or, if the interest of the individual under this title would
be served thereby, to the individual.
‘‘(V) Subclause (III) shall not apply to the representative payee
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary.
In making such determination, the Commissioner shall take into
consideration the nature of the individual’s impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding
by the Commissioner that the requirements of subclause (III) should
not apply to an individual’s representative payee.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefits for months beginning on or after the date
of the enactment of this Act, without regard to whether regulations
have been issued to implement such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) REQUIREMENT TO ESTABLISH ACCOUNT.—Section 1631(a)(2)
(42 U.S.C. 1383(a)(2)) is amended—
(1) by redesignating subparagraphs (F) and (G) as subpara-
graphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
‘‘(F)(i)(I) Each representative payee of an eligible individual
under the age of 18 who is eligible for the payment of benefits
described in subclause (II) shall establish on behalf of such individ-
ual an account in a financial institution into which such benefits
shall be paid, and shall thereafter maintain such account for use
in accordance with clause (ii).
‘‘(II) Benefits described in this subclause are past-due monthly
benefits under this title (which, for purposes of this subclause,
include State supplementary payments made by the Commissioner
pursuant to an agreement under section 1616 or section 212(b)
of Public Law 93–66) in an amount (after any withholding by
the Commissioner for reimbursement to a State for interim assist-
ance under subsection (g)) that exceeds the product of—
‘‘(aa) 6, and
‘‘(bb) the maximum monthly benefit payable under this
title to an eligible individual.
‘‘(ii)(I) A representative payee shall use funds in the account
established under clause (i) to pay for allowable expenses described
in subclause (II).
‘‘(II) An allowable expense described in this subclause is an
expense for—
‘‘(aa) education or job skills training;
‘‘(bb) personal needs assistance;
‘‘(cc) special equipment;
‘‘(dd) housing modification;
‘‘(ee) medical treatment;
‘‘(ff) therapy or rehabilitation; or
‘‘(gg) any other item or service that the Commissioner
determines to be appropriate;
provided that such expense benefits such individual and, in the
case of an expense described in item (bb), (cc), (dd), (ff), or (gg),
is related to the impairment (or combination of impairments) of
such individual.
‘‘(III) The use of funds from an account established under
clause (i) in any manner not authorized by this clause—
H. R. 3734—91
‘‘(aa) by a representative payee shall be considered a
misapplication of benefits for all purposes of this paragraph,
and any representative payee who knowingly misapplies bene-
fits from such an account shall be liable to the Commissioner
in an amount equal to the total amount of such benefits; and
‘‘(bb) by an eligible individual who is his or her own payee
shall be considered a misapplication of benefits for all purposes
of this paragraph and the total amount of such benefits so
used shall be considered to be the uncompensated value of
a disposed resource and shall be subject to the provisions of
section 1613(c).
‘‘(IV) This clause shall continue to apply to funds in the account
after the child has reached age 18, regardless of whether benefits
are paid directly to the beneficiary or through a representative
payee.
‘‘(iii) The representative payee may deposit into the account
established pursuant to clause (i)—
‘‘(I) past-due benefits payable to the eligible individual
in an amount less than that specified in clause (i)(II), and
‘‘(II) any other funds representing an underpayment under
this title to such individual, provided that the amount of such
underpayment is equal to or exceeds the maximum monthly
benefit payable under this title to an eligible individual.
‘‘(iv) The Commissioner of Social Security shall establish a
system for accountability monitoring whereby such representative
payee shall report, at such time and in such manner as the Commis-
sioner shall require, on activity respecting funds in the account
established pursuant to clause (i).’’.
(b) EXCLUSION FROM RESOURCES.—Section 1613(a) (42 U.S.C.
1382b(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (10);
(2) by striking the period at the end of paragraph (11)
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (11) the following new
paragraph:
‘‘(12) any account, including accrued interest or other earn-
ings thereon, established and maintained in accordance with
section 1631(a)(2)(F).’’.
(c) EXCLUSION FROM INCOME.—Section 1612(b) (42 U.S.C.
1382a(b)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20)
and inserting ‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(21) the interest or other earnings on any account estab-
lished 
and 
maintained 
in 
accordance 
with 
section
1631(a)(2)(F).’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to payments made after the date of the enactment
of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONAL-
IZED 
INDIVIDUALS 
WHOSE 
MEDICAL 
COSTS 
ARE
COVERED BY PRIVATE INSURANCE.
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B))
is amended by inserting ‘‘or, in the case of an eligible individual
who is a child under the age of 18, receiving payments (with
H. R. 3734—92
respect to such individual) under any health insurance policy issued
by 
a 
private 
provider 
of 
such 
insurance’’ 
after 
‘‘section
1614(f)(2)(B),’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to benefits for months beginning 90 or more days
after the date of the enactment of this Act, without regard to
whether regulations have been issued to implement such amend-
ments.
SEC. 215. REGULATIONS.
Within 3 months after the date of the enactment of this Act,
the Commissioner of Social Security shall prescribe such regulations
as may be necessary to implement the amendments made by this
subtitle.
Subtitle C—Additional Enforcement
Provision
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLE-
MENTAL SECURITY INCOME BENEFITS.
(a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383) is amended
by adding at the end the following new paragraph:
‘‘(10)(A) If an individual is eligible for past-due monthly benefits
under this title in an amount that (after any withholding for
reimbursement to a State for interim assistance under subsection
(g)) equals or exceeds the product of—
‘‘(i) 12, and
‘‘(ii) the maximum monthly benefit payable under this title
to an eligible individual (or, if appropriate, to an eligible indi-
vidual and eligible spouse),
then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments as provided
in subparagraph (B).
‘‘(B)(i) The payment of past-due benefits subject to this subpara-
graph shall be made in not to exceed 3 installments that are
made at 6-month intervals.
‘‘(ii) Except as provided in clause (iii), the amount of each
of the first and second installments may not exceed an amount
equal to the product of clauses (i) and (ii) of subparagraph (A).
‘‘(iii) In the case of an individual who has—
‘‘(I) outstanding debt attributable to—
‘‘(aa) food,
‘‘(bb) clothing,
‘‘(cc) shelter, or
‘‘(dd) medically necessary services, supplies or equip-
ment, or medicine; or
‘‘(II) current expenses or expenses anticipated in the near
term attributable to—
‘‘(aa) medically necessary services, supplies or equip-
ment, or medicine, or
‘‘(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a public
assistance program, the Secretary under title XVIII, a State plan
approved under title XIX, or any private entity legally liable to
provide payment pursuant to an insurance policy, pre-paid plan,
or other arrangement, the limitation specified in clause (ii) may
H. R. 3734—93
be exceeded by an amount equal to the total of such debt and
expenses.
‘‘(C) This paragraph shall not apply to any individual who,
at the time of the Commissioner’s determination that such individ-
ual is eligible for the payment of past-due monthly benefits under
this title—
‘‘(i) is afflicted with a medically determinable impairment
that is expected to result in death within 12 months; or
‘‘(ii) is ineligible for benefits under this title and the
Commissioner determines that such individual is likely to
remain ineligible for the next 12 months.
‘‘(D) For purposes of this paragraph, the term ‘benefits under
this title’ includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a), and pay-
ments pursuant to an agreement entered into under section 212(b)
of Public Law 93–66.’’.
(b) CONFORMING AMENDMENT.—Section 1631(a)(1) (42 U.S.C.
1383(a)(1)) is amended by inserting ‘‘(subject to paragraph (10))’’
immediately before ‘‘in such installments’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
are effective with respect to past-due benefits payable under
title XVI of the Social Security Act after the third month
following the month in which this Act is enacted.
(2) BENEFITS PAYABLE UNDER TITLE XVI.—For purposes of
this subsection, the term ‘‘benefits payable under title XVI
of the Social Security Act’’ includes supplementary payments
pursuant to an agreement for Federal administration under
section 1616(a) of the Social Security Act, and payments pursu-
ant to an agreement entered into under section 212(b) of Public
Law 93–66.
SEC. 222. REGULATIONS.
Within 3 months after the date of the enactment of this Act,
the Commissioner of Social Security shall prescribe such regulations
as may be necessary to implement the amendments made by this
subtitle.
Subtitle D—Studies Regarding
Supplemental Security Income Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY
INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section
105(b)(3) of the Contract with America Advancement Act of 1996,
is amended by adding at the end the following new section:
‘‘ANNUAL REPORT ON PROGRAM
‘‘SEC. 1637. (a) Not later than May 30 of each year, the Commis-
sioner of Social Security shall prepare and deliver a report annually
to the President and the Congress regarding the program under
this title, including—
‘‘(1) a comprehensive description of the program;
‘‘(2) historical and current data on allowances and denials,
including number of applications and allowance rates for initial
H. R. 3734—94
determinations, reconsideration determinations, administrative
law judge hearings, appeals council reviews, and Federal court
decisions;
‘‘(3) historical and current data on characteristics of recipi-
ents and program costs, by recipient group (aged, blind, disabled
adults, and disabled children);
‘‘(4) historical and current data on prior enrollment by
recipients in public benefit programs, including State programs
funded under part A of title IV of the Social Security Act
and State general assistance programs;
‘‘(5) projections of future number of recipients and program
costs, through at least 25 years;
‘‘(6) number of redeterminations and continuing dis-
ability reviews, and the outcomes of such redeterminations
and reviews;
‘‘(7) data on the utilization of work incentives;
‘‘(8) detailed information on administrative and other pro-
gram operation costs;
‘‘(9) summaries of relevant research undertaken by the
Social Security Administration, or by other researchers;
‘‘(10) State supplementation program operations;
‘‘(11) a historical summary of statutory changes to this
title; and
‘‘(12) such other information as the Commissioner deems
useful.
‘‘(b) Each member of the Social Security Advisory Board shall
be permitted to provide an individual report, or a joint report
if agreed, of views of the program under this title, to be included
in the annual report required under this section.’’.
SEC. 232. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller General of
the United States shall study and report on—
(1) the impact of the amendments made by, and the provi-
sions of, this title on the supplemental security income program
under title XVI of the Social Security Act; and
(2) extra expenses incurred by families of children receiving
benefits under such title that are not covered by other Federal,
State, or local programs.
TITLE III—CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
title an amendment is expressed in terms of an amendment to
or repeal of a section or other provision, the reference shall be
considered to be made to that section or other provision of the
Social Security Act.
H. R. 3734—95
Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCE-
MENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42 U.S.C. 654)
is amended—
(1) by striking paragraph (4) and inserting the following
new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the establishment of
paternity or the establishment, modification, or enforce-
ment of child support obligations, as appropriate, under
the plan with respect to—
‘‘(i) each child for whom (I) assistance is provided
under the State program funded under part A of this
title, (II) benefits or services for foster care mainte-
nance are provided under the State program funded
under part E of this title, or (III) medical assistance
is provided under the State plan approved under title
XIX, unless, in accordance with paragraph (29), good
cause or other exceptions exist;
‘‘(ii) any other child, if an individual applies for
such services with respect to the child; and
‘‘(B) enforce any support obligation established with
respect to—
‘‘(i) a child with respect to whom the State provides
services under the plan; or
‘‘(ii) the custodial parent of such a child;’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and inserting ‘‘provide
that—’’;
(B) by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) services under the plan shall be made available
to residents of other States on the same terms as to resi-
dents of the State submitting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on individuals
not receiving assistance under any State program funded
under part A’’ after ‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C), (D), and (E)—
(i) by indenting the subparagraph in the same
manner as, and aligning the left margin of the subpara-
graph with the left margin of, the matter inserted
by subparagraph (B) of this paragraph; and
(ii) by striking the final comma and inserting a
semicolon; and
(E) in subparagraph (E), by indenting each of clauses
(i) and (ii) 2 additional ems.
(b) CONTINUATION
OF SERVICES
FOR FAMILIES CEASING TO
RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER
PART A.—Section 454 (42 U.S.C. 654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24)
and inserting ‘‘; and’’; and
H. R. 3734—96
(3) by adding after paragraph (24) the following new para-
graph:
‘‘(25) provide that if a family with respect to which services
are provided under the plan ceases to receive assistance under
the State program funded under part A, the State shall provide
appropriate notice to the family and continue to provide such
services, subject to the same conditions and on the same basis
as in the case of other individuals to whom services are fur-
nished under the plan, except that an application or other
request to continue services shall not be required of such a
family and paragraph (6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking
‘‘454(6)’’ and inserting ‘‘454(4)’’.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
by striking ‘‘454(6)’’ each place it appears and inserting
‘‘454(4)(A)(ii)’’.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
by striking ‘‘in the case of overdue support which a State
has agreed to collect under section 454(6)’’ and inserting ‘‘in
any other case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking
‘‘paragraph (4) or (6) of section 454’’ and inserting ‘‘section
454(4)’’.
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is amended to
read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—Subject to subsection (e), an amount collected
on behalf of a family as support by a State pursuant to a plan
approved under this part shall be distributed as follows:
‘‘(1) FAMILIES
RECEIVING
ASSISTANCE.—In the case of a
family receiving assistance from the State, the State shall—
‘‘(A) pay to the Federal Government the Federal share
of the amount so collected; and
‘‘(B) retain, or distribute to the family, the State share
of the amount so collected.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In
the case of a family that formerly received assistance
from the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To the extent that
the amount so collected does not exceed the amount
required to be paid to the family for the month in which
collected, the State shall distribute the amount so collected
to the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the extent that
the amount so collected exceeds the amount required to
be paid to the family for the month in which collected,
the State shall distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED
AFTER THE FAMILY CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER 1997.—Except as provided in
subclause (II), the provisions of this section (other
than subsection (b)(1)) as in effect and applied
on the day before the date of the enactment of
section 302 of the Personal Responsibility and
H. R. 3734—97
Work Opportunity Act Reconciliation of 1996 shall
apply with respect to the distribution of support
arrearages that—
‘‘(aa) accrued after the family ceased to
receive assistance, and
‘‘(bb) are collected before October 1, 1997.
‘‘(II) POST-SEPTEMBER 1997.—With respect to
the amount so collected on or after October 1,
1997 (or before such date, at the option of the
State)—
‘‘(aa) IN GENERAL.—The State shall first
distribute the amount so collected (other than
any amount described in clause (iv)) to the
family to the extent necessary to satisfy any
support arrearages with respect to the family
that accrued after the family ceased to receive
assistance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
After the application of division (aa) and
clause (ii)(II)(aa) with respect to the amount
so collected, the State shall retain the State
share of the amount so collected, and pay to
the Federal Government the Federal share (as
defined in subsection (c)(2)) of the amount so
collected, but only to the extent necessary to
reimburse amounts paid to the family as
assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
BEFORE THE FAMILY RECEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—Except as provided in
subclause (II), the provisions of this section (other
than subsection (b)(1)) as in effect and applied
on the day before the date of the enactment of
section 302 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 shall
apply with respect to the distribution of support
arrearages that—
‘‘(aa) accrued before the family received
assistance, and
‘‘(bb) are collected before October 1, 2000.
‘‘(II) POST-SEPTEMBER 2000.—Unless, based on
the report required by paragraph (4), the Congress
determines otherwise, with respect to the amount
so collected on or after October 1, 2000 (or before
such date, at the option of the State)—
‘‘(aa) IN GENERAL.—The State shall first
distribute the amount so collected (other than
any amount described in clause (iv)) to the
family to the extent necessary to satisfy any
support arrearages with respect to the family
H. R. 3734—99
‘‘(5) STUDY AND REPORT.—Not later than October 1, 1998,
the Secretary shall report to the Congress the Secretary’s find-
ings with respect to—
‘‘(A) whether the distribution of post-assistance arrear-
ages to families has been effective in moving people off
of welfare and keeping them off of welfare;
‘‘(B) whether early implementation of a pre-assistance
arrearage program by some States has been effective in
moving people off of welfare and keeping them off of wel-
fare;
‘‘(C) what the overall impact has been of the amend-
ments made by the Personal Responsibility and Work
Opportunity Act of 1996 with respect to child support
enforcement in moving people off of welfare and keeping
them off of welfare; and
‘‘(D) based on the information and data the Secretary
has obtained, what changes, if any, should be made in
the policies related to the distribution of child support
arrearages.
‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights to support
obligations, which were assigned to a State as a condition of receiv-
ing assistance from the State under part A and which were in
effect on the day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996, shall remain
assigned after such date.
‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from the State’
means—
‘‘(A) assistance under the State program funded under
part A or under the State plan approved under part A
of this title (as in effect on the day before the date of
the enactment of the Personal Responsibility and Work
Opportunity Act of 1996); and
‘‘(B) foster care maintenance payments under the State
plan approved under part E of this title.
‘‘(2) FEDERAL SHARE.—The term ‘Federal share’ means that
portion of the amount collected resulting from the application
of the Federal medical assistance percentage in effect for the
fiscal year in which the amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE.—The term
‘Federal medical assistance percentage’ means—
‘‘(A) the Federal medical assistance percentage (as
defined in section 1118), in the case of Puerto Rico, the
Virgin Islands, Guam, and American Samoa; or
‘‘(B) the Federal medical assistance percentage (as
defined in section 1905(b), as in effect on September 30,
1996) in the case of any other State.
‘‘(4) STATE SHARE.—The term ‘State share’ means 100 per-
cent minus the Federal share.
‘‘(d) HOLD HARMLESS PROVISION.—If the amounts collected
which could be retained by the State in the fiscal year (to the
extent necessary to reimburse the State for amounts paid to families
as assistance by the State) are less than the State share of the
amounts collected in fiscal year 1995 (determined in accordance
with section 457 as in effect on the day before the date of the
enactment of the Personal Responsibility and Work Opportunity
H. R. 3734—100
Act of 1996), the State share for the fiscal year shall be an amount
equal to the State share in fiscal year 1995.
‘‘(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBUTION UNDER THIS
SECTION.—At State option, this section shall not apply to any
amount collected on behalf of a family as support by the State
(and paid to the family in addition to the amount of assistance
otherwise payable to the family) pursuant to a plan approved under
this part if such amount would have been paid to the family
by the State under section 402(a)(28), as in effect and applied
on the day before the date of the enactment of section 302 of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996. For purposes of subsection (d), the State share of
such amount paid to the family shall be considered amounts which
could be retained by the State if such payments were reported
by the State as part of the State share of amounts collected in
fiscal year 1995.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by
striking ‘‘section 457(b)(4) or (d)(3)’’ and inserting ‘‘section 457’’.
(2) Section 454 (42 U.S.C. 654) is amended—
(A) in paragraph (11)—
(i) by striking ‘‘(11)’’ and inserting ‘‘(11)(A)’’; and
(ii) by inserting after the semicolon ‘‘and’’; and
(B) by redesignating paragraph (12) as subparagraph
(B) of paragraph (11).
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section shall be effective on
October 1, 1996, or earlier at the State’s option.
(2) CONFORMING AMENDMENTS.—The amendments made by
subsection (b)(2) shall become effective on the date of the enact-
ment of this Act.
SEC. 303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by section 301(b) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the following new para-
graph:
‘‘(26) will have in effect safeguards, applicable to all con-
fidential information handled by the State agency, that are
designed to protect the privacy rights of the parties, including—
‘‘(A) safeguards against unauthorized use or disclosure
of information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
‘‘(B) prohibitions against the release of information
on the whereabouts of 1 party to another party against
whom a protective order with respect to the former party
has been entered; and
‘‘(C) prohibitions against the release of information
on the whereabouts of 1 party to another party if the
State has reason to believe that the release of the informa-
tion may result in physical or emotional harm to the former
party.’’.
H. R. 3734—101
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.
SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as amended
by section 302(b)(2) of this Act, is amended by inserting after
paragraph (11) the following new paragraph:
‘‘(12) provide for the establishment of procedures to require
the State to provide individuals who are applying for or receiv-
ing services under the State plan, or who are parties to cases
in which services are being provided under the State plan—
‘‘(A) with notice of all proceedings in which support
obligations might be established or modified; and
‘‘(B) with a copy of any order establishing or modifying
a child support obligation, or (in the case of a petition
for modification) a notice of determination that there should
be no change in the amount of the child support award,
within 14 days after issuance of such order or determina-
tion;’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.
Subtitle B—Locate and Case Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this Act, is
amended by adding at the end the following new subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system required by this
section shall include a registry (which shall be known as the
‘State case registry’) that contains records with respect to—
‘‘(A) each case in which services are being provided
by the State agency under the State plan approved under
this part; and
‘‘(B) each support order established or modified in the
State on or after October 1, 1998.
‘‘(2) LINKING OF LOCAL REGISTRIES.—The State case registry
may be established by linking local case registries of support
orders through an automated information network, subject to
this section.
‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records
shall use standardized data elements for both parents (such
as names, social security numbers and other uniform identifica-
tion numbers, dates of birth, and case identification numbers),
and contain such other information (such as on case status)
as the Secretary may require.
‘‘(4) PAYMENT
RECORDS.—Each case record in the State
case registry with respect to which services are being provided
under the State plan approved under this part and with respect
to which a support order has been established shall include
a record of—
‘‘(A) the amount of monthly (or other periodic) support
owed under the order, and other amounts (including arrear-
ages, interest or late payment penalties, and fees) due
or overdue under the order;
H. R. 3734—102
‘‘(B) any amount described in subparagraph (A) that
has been collected;
‘‘(C) the distribution of such collected amounts;
‘‘(D) the birth date of any child for whom the order
requires the provision of support; and
‘‘(E) the amount of any lien imposed with respect to
the order pursuant to section 466(a)(4).
‘‘(5) UPDATING AND MONITORING.—The State agency operat-
ing the automated system required by this section shall
promptly establish and update, maintain, and regularly mon-
itor, case records in the State case registry with respect to
which services are being provided under the State plan
approved under this part, on the basis of—
‘‘(A) 
information 
on 
administrative 
actions 
and
administrative and judicial proceedings and orders relating
to paternity and support;
‘‘(B) information obtained from comparison with
Federal, State, or local sources of information;
‘‘(C) information on support collections and distribu-
tions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF
INFORMATION.—The State shall use the automated system required
by this section to extract information from (at such times, and
in such standardized format or formats, as may be required by
the Secretary), to share and compare information with, and to
receive information from, other data bases and information compari-
son services, in order to obtain (or provide) information necessary
to enable the State agency (or the Secretary or other State or
Federal agencies) to carry out this part, subject to section 6103
of the Internal Revenue Code of 1986. Such information comparison
activities shall include the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—
Furnishing to the Federal Case Registry of Child Support
Orders established under section 453(h) (and update as nec-
essary, with information including notice of expiration of orders)
the minimum amount of information on child support cases
recorded in the State case registry that is necessary to operate
the registry (as specified by the Secretary in regulations).
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—Exchanging
information with the Federal Parent Locator Service for the
purposes specified in section 453.
‘‘(3) 
TEMPORARY
FAMILY
ASSISTANCE
AND
MEDICAID
AGENCIES.—Exchanging information with State agencies (of the
State and of other States) administering programs funded under
part A, programs operated under a State plan approved under
title XIX, and other programs designated by the Secretary,
as necessary to perform State agency responsibilities under
this part and under such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMATION COMPARI-
SONS.—Exchanging information with other agencies of the
State, agencies of other States, and interstate information net-
works, as necessary and appropriate to carry out (or assist
other States to carry out) the purposes of this part.’’.
H. R. 3734—199
SEC. 729. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR
WOMEN, INFANTS, AND CHILDREN.
(a) DEFINITIONS.—Section 17(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(b)) is amended—
(1) in paragraph (15)(B)(iii), by inserting ‘‘of not more than
365 days’’ after ‘‘accommodation’’; and
(2) in paragraph (16)—
(A) in subparagraph (A), by adding ‘‘and’’ at the
end; and
(B) in subparagraph (B), by striking ‘‘; and’’ and insert-
ing a period; and
(C) by striking subparagraph (C).
(b) SECRETARY’S PROMOTION OF WIC.—Section 17(c) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(c)) is amended by striking
paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(d)) is amended by striking para-
graph (4).
(d) NUTRITION EDUCATION.—Section 17(e) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(e)) is amended—
(1) in paragraph (2), by striking the third sentence;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph (A), by strik-
ing ‘‘shall’’;
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(D) in subparagraph (A), as so redesignated—
(i) by inserting ‘‘shall’’ before ‘‘provide’’; and
(ii) by striking ‘‘and’’ at the end;
(E) in subparagraph (B), as so redesignated—
(i) by inserting ‘‘shall’’ before ‘‘provide’’; and
(ii) by striking the period at the end and inserting
‘‘; and’’; and
(F) by adding at the end the following:
‘‘(C) may provide a local agency with materials describing
other programs for which a participant in the program may
be eligible.’’;
(3) in paragraph (5), by striking ‘‘The State agency shall
ensure that each’’ and inserting ‘‘Each’’; and
(4) by striking paragraph (6).
(e) STATE PLAN.—Section 17(f) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(f)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Secretary, by a
date specified by the Secretary, a’’ and inserting ‘‘to
the Secretary, by a date specified by the Secretary,
an initial’’; and
(ii) by adding at the end the following: ‘‘After
submitting the initial plan, a State shall be required
to submit to the Secretary for approval only a sub-
stantive change in the plan.’’;
(B) in subparagraph (C)—
(i) by striking clause (iii) and inserting the
following:
H. R. 3734—200
‘‘(iii) a plan to coordinate operations under the program
with other services or programs that may benefit participants
in, and applicants for, the program;’’;
(ii) in clause (vi), by inserting after ‘‘in the State’’
the following: ‘‘(including a plan to improve access
to the program for participants and prospective
applicants who are employed, or who reside in rural
areas)’’;
(iii) in clause (vii), by striking ‘‘to provide program
benefits’’ and all that follows through ‘‘emphasis on’’
and inserting ‘‘for’’;
(iv) by striking clauses (ix), (x), and (xii);
(v) in clause (xiii), by striking ‘‘may require’’ and
inserting ‘‘may reasonably require’’;
(vi) by redesignating clauses (xi) and (xiii), as so
amended, as clauses (ix) and (x), respectively; and
(vii) in clause (ix), as so redesignated, by adding
‘‘and’’ at the end;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subpara-
graph (D);
(2) by striking paragraphs (6) and (22);
(3) in the second sentence of paragraph (5), by striking
‘‘at all times be available’’ and inserting ‘‘be available at any
reasonable time’’;
(4) in paragraph (9)(B), by striking the second sentence;
(5) in the first sentence of paragraph (11), by striking
‘‘, including standards that will ensure sufficient State agency
staff’’;
(6) in paragraph (12), by striking the third sentence;
(7) in paragraph (14), by striking ‘‘shall’’ and inserting
‘‘may’’;
(8) in paragraph (17), by striking ‘‘and to accommodate’’
and all that follows through ‘‘facilities’’;
(9) in paragraph (19), by striking ‘‘shall’’ and inserting
‘‘may’’; and
(10) by redesignating paragraphs (7) through (21) as para-
graphs (6) through (20), and paragraphs (23) and (24) as para-
graphs (21) and (22), respectively.
(f) INFORMATION.—Section 17(g) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(g)) is amended—
(1) in paragraph (5), by striking ‘‘the report required under
subsection (d)(4)’’ and inserting ‘‘reports on program participant
characteristics’’; and
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(h)) is amended—
(A) in paragraph (4)(E), by striking ‘‘and, on’’ and all
that follows through ‘‘(d)(4)’’; and
(B) in paragraph (8)—
(i) by striking subparagraphs (A), (C), and (M);
(ii) in subparagraph (G)—
(I) in clause (i), by striking ‘‘(i)’’; and
(II) by striking clauses (ii) through (ix);
H. R. 3734—235
program in the State would be eligible to receive under
this Act but for the operation of this subsection.
‘‘(C) OTHER
PROVISIONS.—For purposes of the food
stamp program (other than this subsection)—
‘‘(i) cash assistance under this subsection shall
be considered to be an allotment; and
‘‘(ii) each household receiving cash benefits under
this subsection shall not receive any other food stamp
benefit during the period for which the cash assistance
is provided.
‘‘(D) ADDITIONAL
PAYMENTS.—Each State that has
elected to carry out an employment initiatives program
under paragraph (1) shall—
‘‘(i) increase the cash benefits provided to each
household participating in the program in the State
under this subsection to compensate for any State or
local sales tax that may be collected on purchases
of food by the household, unless the Secretary deter-
mines on the basis of information provided by the
State that the increase is unnecessary on the basis
of the limited nature of the items subject to the State
or local sales tax; and
‘‘(ii) pay the cost of any increase in cash benefits
required by clause (i).
‘‘(3) ELIGIBILITY.—A household shall be eligible to receive
cash benefits under paragraph (2) if an adult member of the
household—
‘‘(A) has worked in unsubsidized employment for not
less than the preceding 90 days;
‘‘(B) has earned not less than $350 per month from
the employment referred to in subparagraph (A) for not
less than the preceding 90 days;
‘‘(C)(i) is receiving benefits under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.); or
‘‘(ii) was receiving benefits under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) at the time the member first
received cash benefits under this subsection and is no
longer eligible for the State program because of earned
income;
‘‘(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu of food stamp
benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under this
subsection. The State agency, with the concurrence of the Sec-
retary, shall determine the content of the evaluation.’’.
SEC. 853. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food Stamp Act
of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ‘‘1991 through
1997’’ and inserting ‘‘1996 through 2002’’.
H. R. 3734—236
SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
‘‘SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
‘‘(a) DEFINITION OF FEDERAL COSTS.—In this section, the term
‘Federal costs’ does not include any Federal costs incurred under
section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State may elect
to carry out a Simplified Food Stamp Program (referred to in
this section as a ‘Program’), statewide or in a political subdivision
of the State, in accordance with this section.
‘‘(c) OPERATION OF PROGRAM.—If a State elects to carry out
a Program, within the State or a political subdivision of the State—
‘‘(1) a household in which no members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) may not partici-
pate in the Program;
‘‘(2) a household in which all members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) shall automati-
cally be eligible to participate in the Program;
‘‘(3) if approved by the Secretary, a household in which
1 or more members but not all members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) may be eligible
to participate in the Program; and
‘‘(4) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established
by the State under—
‘‘(A) a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.);
‘‘(B) the food stamp program; or
‘‘(C) a combination of a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) and the food stamp program.
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not operate a Pro-
gram unless the Secretary approves a State plan for the oper-
ation of the Program under paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall approve any
State plan to carry out a Program if the Secretary determines
that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation that the plan
will not increase Federal costs for any fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
‘‘(1) DETERMINATION.—
‘‘(A) IN
GENERAL.—The Secretary shall determine
whether a Program being carried out by a State agency
is increasing Federal costs under this Act.
‘‘(B) NO EXCLUDED HOUSEHOLDS.—In making a deter-
mination under subparagraph (A), the Secretary shall not
require the State agency to collect or report any information
on households not included in the Program.
‘‘(C) ALTERNATIVE
ACCOUNTING
PERIODS.—The Sec-
retary may approve the request of a State agency to apply