667
(b) 
REPORTING
REQUIREMENT
FOR
BENE-
FICIARIES.—Title XVIII of the Social Security Act is
amended by adding at the end the following:
‘‘REPORT TO SECRETARY ON ESTIMATED MODIFIED
ADJUSTED GROSS INCOME
‘‘SEC. 1893. (a) IN GENERAL.—
‘‘(1) 
INDIVIDUALS
COVERED
THROUGHOUT
YEAR.—Not later than November 1 of each year (be-
ginning with 1996), each individual enrolled under
part B shall submit to the Secretary (in such form
and manner as the Secretary may require, in con-
sultation with the Secretary of the Treasury) an es-
timate of the individual’s modified adjusted gross in-
come anticipated for the taxable year ending with or
within the following calendar year, to be used (sub-
ject to section 1839(h)(3)) to determine whether the
individual is to be subject to an increase in the
monthly part B premium under section 1839(h) for
such following calendar year.
‘‘(2) SPECIAL RULE FOR FIRST YEAR OF COV-
ERAGE.—For the first year in which an individual is
enrolled under part B, the individual shall submit to
the Secretary (at such time and in such form and
manner as the Secretary may require, in consulta-
tion with the Secretary of the Treasury) an estimate
of the individual’s modified adjusted gross income
668
anticipated for the taxable year ending with Decem-
ber 31 of such year, to be used to determine whether
the individual is to be subject to an increase in the
monthly part B premium under section 1839(h) for
such year.
‘‘(b) SPECIAL RULE FOR 1996.—Not later than 60
days after the date of the enactment of this section, each
individual described in subsection (a) shall submit to the
Secretary an estimate of the individual’s modified adjusted
gross income for the taxable year ending December 1995,
to be used to determine (subject to section 1839(h)(3))
whether the individual is to be subject to an increase in
the monthly part B premium under section 1839(h) dur-
ing 1996.
‘‘(c) MODIFIED ADJUSTED GROSS INCOME DE-
FINED.—In subsection (a), the term ‘modified adjusted
gross income’ means, with respect to an individual for a
taxable year, the individual’s adjusted gross income under
the Internal Revenue Code of 1986, determined without
regard to sections 931 or 933 of such Code.’’.
(c) DISCLOSURE OF CERTAIN TAX INFORMATION BY
SECRETARY OF TREASURY.—
(1) IN
GENERAL.—Subsection (l) of section
6103 of the Internal Revenue Code of 1986 (relating
to confidentiality and disclosure of returns and re-
669
turn information) is amended by adding at the end
thereof the following new paragraph:
‘‘(14) DISCLOSURE OF RETURN INFORMATION
TO MEANS-TEST MEDICARE.—
‘‘(A) IN GENERAL.—The Secretary shall,
upon written request from the Administrator of
the Health Care Financing Administration, dis-
close to the officers and employees of such Ad-
ministration return information necessary to
determine the modified adjusted gross income
(as defined in section 1893(c) of the Social Se-
curity Act) of any medicare beneficiary (as de-
fined in paragraph (12)(E)), to be used to de-
termine whether the beneficiary is to be subject
to an increase in the monthly part B premium
under section 1839(g) of such Act.
‘‘(B) RESTRICTION ON USE OF DISCLOSED
INFORMATION.—Any officer or employee of the
Health Care Financing Administration receiv-
ing return information under subparagraph (A)
shall use such information only for purposes of,
and to the extent necessary in, establishing the
modified adjusted gross income (as so defined)
of any medicare beneficiary (as so defined).’’
670
(2) CONFORMING
AMENDMENTS.—Paragraphs
(3)(A) and (4) of section 6103(p) of such Code are
each amended by striking ‘‘or (13)’’ each place it ap-
pears and inserting ‘‘(13), or (14)’’.
(3) EFFECTIVE DATE.—The amendments made
by paragraphs (1) and (2) shall apply with respect
to information for taxable years beginning after De-
cember 31, 1995.
SEC. 12103. SETTING THE PART B PREMIUM AT 25 PERCENT
OF 
PROGRAM 
EXPENDITURES 
PERMA-
NENTLY.
(a) IN GENERAL.—Section 1839(a)(3) of the Social
Security Act (42 U.S.C. 1395r(a)(3)) is amended by strik-
ing ‘‘The monthly premium’’ and all that follows through
‘‘November 1.’’ and inserting the following: ‘‘The monthly
premium shall be equal to 50 percent of the monthly actu-
arial rate for enrollees age 65 and over, as determined ac-
cording to paragraph (1), for that succeeding calendar
year.’’.
(b) CONFORMING AMENDMENTS.—Section 1839 of
such Act (42 U.S.C. 1395r) is amended—
(1) in subsection (a)(2), by striking ‘‘(b) and
(e)’’ and inserting ‘‘(b), (c), (e), and (f)’’;
671
(2) in the last sentence of subsection (a)(3), by
striking ‘‘and the derivation of the dollar amounts
specified in this paragraph’’; and
(3) in subsection (e)—
(A) by striking ‘‘(1)(A) Notwithstanding’’
and all that follows through ‘‘(B)’’,
(B) by striking paragraph (2), and
(C) by redesignating clauses (i) through
(v) as paragraphs (1) through (5).
Subtitle C—Part A Deductible
SEC. 12201. INCREASE IN MEDICARE HOSPITAL INSURANCE
DEDUCTIBLE FOR CERTAIN HIGH-INCOME IN-
DIVIDUALS.
(a) INCREASE IN DEDUCTIBLE.—
(1) IN GENERAL.—Section 1813 of the Social
Security Act (42 U.S.C. 1395e) is amended by add-
ing at the end the following new subsection:
‘‘(c)(1)(A) Notwithstanding the previous subsections
of this section, in the case of an individual whose modified
adjusted gross income in a taxable year ending with or
within a calendar year (as reported by the individual under
section 1893(a)) exceeds the threshold amount (described
in section 1839(h)(4)), the inpatient hospital deductible
otherwise applicable with respect to an individual for a
672
spell of illness that begins during such year shall be in-
creased—
‘‘(i) in the case of an individual whose modified
adjusted gross income exceeds such threshold
amount by less than $5,000, by 33 percent of such
deductible; or
‘‘(ii) in the case of any other such individual, by
33 percent of such deductible for each $5,000 by
which the individual’s modified adjusted gross in-
come exceeds such threshold amount.
‘‘(B) Notwithstanding subparagraph (A), the total in-
patient hospital deductible applicable to an individual for
a spell of illness may not exceed—
‘‘(i) for 1996, $2,000; and
‘‘(ii) for any succeeding year, the amount de-
scribed in this subparagraph for the preceding cal-
endar year, changed and adjusted in the same man-
ner as the inpatient hospital deductible is changed
and adjusted under subsection (b)(1).
‘‘(2) Using information provided by the Secretary of
the Treasury under 6103(l)(14), the Secretary shall deter-
mine the actual modified adjusted gross income of individ-
uals enrolled in this part during a taxable year and apply
the following rules:
673
‘‘(A) In the case of an individual subject to an
increase in the inpatient hospital deductible under
paragraph (1) during a year whose modified ad-
justed gross income did not exceed the threshold
amount (described in section 1839(h)(4)) for such
year, the Secretary shall refund to the individual the
amount of such increase.
‘‘(B) In the case of an individual to which the
inpatient hospital deductible applied for inpatient
hospital services furnished in a year and whose ac-
tual modified adjusted gross income exceeded the
threshold amount (described in section 1839(h)(4))
for such year, if such individual was not subject to
an increase in such deductible during the year under
paragraph (1)—
‘‘(i) the Secretary shall collect the amount
by which the deductible would have been in-
creased if the modified adjusted gross income
reported by the individual under section
1893(a) was equal to the individual’s actual
modified adjusted gross income from the hos-
pital that furnished the inpatient hospital serv-
ices (either directly or through reductions in
payments to the hospital for subsequently fur-
nished services); and
674
‘‘(ii) the individual shall be liable to the
hospital for payment of such amount.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to inpatient hospital
services for which a spell of illness (as defined in
section 1861(a) of the Social Security Act) begins
after February 1996 in taxable years beginning after
December 31, 1995.
(b) CONFORMING AMENDMENT TO REPORTING RE-
QUIREMENT FOR BENEFICIARIES.—Section 1893 of such
Act, as added by section 12101(b), is amended—
(1) in subsection (a), by striking ‘‘part B’’ each
place it appears in paragraphs (1) and (2) and in-
serting ‘‘part B or entitled to benefits under part
A’’; and
(2) by striking ‘‘1839(h)’’ each place it appears
in subsections (a) and (b) and inserting the follow-
ing: ‘‘ 1839(h) or an increase in the inpatient hos-
pital deductible under section 1813(c)’’.
(c) CONFORMING AMENDMENT TO DISCLOSURE RE-
QUIREMENT FOR SECRETARY OF THE TREASURY.—Sec-
tion 6103(l)(14)(A) of the Internal Revenue Code of 1986,
as added by section 12101(c), is amended by striking
‘‘1839(h)’’ and inserting the following: ‘‘ 1839(h) or an
675
increase in the inpatient hospital deductible under section
1813(c)’’.
Subtitle D—Medicare Payments to
Hospitals
SEC. 12301. ELIMINATION OF PAYMENTS TO HOSPITALS
FOR ENROLLEES’ BAD DEBTS.
(a) IN GENERAL.—Section 1861(v)(1) of the Social
Security Act (8 U.S.C. 1395x(v)(1)) is amended by adding
at the end the following new subparagraph:
‘‘(T) In determining such reasonable costs for hos-
pitals, bad debts attributable to the deductibles and coin-
surance amounts under this title shall not be treated as
allowable costs.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to hospital cost reporting peri-
ods beginning on or after October 1, 1995.
SEC. 12302. REDUCTION IN PAYMENTS FOR INDIRECT
COSTS OF MEDICAL EDUCATION.
(a) IN GENERAL.—Section 1886(d)(5)(B)(ii) of the
Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)) is
amended by striking ‘‘1.89’’ and inserting ‘‘.74’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to hospital cost reporting peri-
ods beginning on or after October 1, 1995.
676
Subtitle E—Selected Presidential
Medicare Reforms
SEC. 12401. EXPANSION OF CENTERS OF EXCELLENCE.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall use a competitive process to con-
tract with centers of excellence for cataract surgery, coro-
nary artery by-pass surgery, and such other services as
the Secretary determines to be appropriate. Payment
under title XVIII of the Social Security Act will be made
for services subject to such contracts on the basis of nego-
tiated or all-inclusive rates as follows:
(1) The center shall cover services provided in
an urban area (as defined in section 1886(d)(2)(D)
of the Social Security Act) for years beginning with
fiscal year 1995.
(2) The amount of payment made by the Sec-
retary to the center under title XVIII of the Social
Security Act for services covered under the project
shall be less than the aggregate amount of the pay-
ments that the Secretary would have made to the
center for such services had the project not been in
effect.
(3) The Secretary shall make payments to the
center on such a basis for the following services fur-
677
nished to individuals entitled to benefits under such
title:
(A) Facility, professional, and related serv-
ices relating to cataract surgery.
(B) Coronary artery bypass surgery and
related services.
(C) Such other services as the Secretary
and the center may agree to cover under the
agreement.
(b) REBATE OF PORTION OF SAVINGS.—In the case
of any services provided under a demonstration project
conducted under subsection (a), the Secretary shall make
a payment to each individual to whom such services are
furnished (at such time and in such manner as the Sec-
retary may provide) in an amount equal to 10 percent of
the amount by which—
(1) the amount of payment that would have
been made by the Secretary under title XVIII of the
Social Security Act to the center for such services if
the services had not been provided under the project,
exceeds
(2) the amount of payment made by the Sec-
retary under such title to the center for such serv-
ices.
678
SEC. 12402. APPLICATION OF COMPETITIVE ACQUISITION
PROCESS FOR PART B ITEMS AND SERVICES.
(a) GENERAL RULE.—Part B of title XVIII of the
Social Security Act is amended by inserting after section
1846 the following:
‘‘COMPETITION ACQUISITION FOR ITEMS AND SERVICES
‘‘SEC. 1847. (a) ESTABLISHMENT
OF
BIDDING
AREAS.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish competitive acquisition areas for the purpose of
awarding a contract or contracts for the furnishing
under this part of the items and services described
in subsection (c) on or after January 1, 1995. The
Secretary may establish different competitive acqui-
sition areas under this subsection for different class-
es of items and services under this part.
‘‘(2) CRITERIA
FOR
ESTABLISHMENT.—The
competitive acquisition areas established under para-
graph (1) shall—
‘‘(A) initially be, or be within, metropolitan
statistical areas; and
‘‘(B) be chosen based on the availability
and accessibility of suppliers and the probable
savings to be realized by the use of competitive
bidding in the furnishing of items and services
in the area.
679
‘‘(b) AWARDING OF CONTRACTS IN AREAS.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct a competition among individuals and entities
supplying items and services under this part for
each competitive acquisition area established under
subsection (a) for each class of items and services.
‘‘(2) CONDITIONS FOR AWARDING CONTRACT.—
The Secretary may not award a contract to any indi-
vidual or entity under the competition conducted
pursuant to paragraph (1) to furnish an item or
service under this part unless the Secretary finds
that the individual or entity—
‘‘(A) meets quality standards specified by
the Secretary for the furnishing of such item or
service; and
‘‘(B) offers to furnish a total quantity of
such item or service that is sufficient to meet
the expected need within the competitive acqui-
sition area.
‘‘(3) CONTENTS OF CONTRACT.—A contract en-
tered into with an individual or entity under the
competition conducted pursuant to paragraph (1)
shall specify (for all of the items and services within
a class)—
680
‘‘(A) the quantity of items and services the
entity shall provide; and
‘‘(B) such other terms and conditions as
the Secretary may require.
‘‘(c) SERVICES DESCRIBED.—The items and services
to which the provisions of this section shall apply are as
follows:
‘‘(1) Magnetic resonance imaging tests and
computerized axial tomography scans, including a
physician’s interpretation of the results of such tests
and scans.
‘‘(2) Oxygen and oxygen equipment.
‘‘(3) Such other items and services for which
the Secretary determines that the use of competitive
acquisition under this section will be appropriate and
cost-effective.’’.
(b) ITEMS AND SERVICES TO BE FURNISHED ONLY
THROUGH COMPETITIVE ACQUISITION.—Section 1862(a)
of such Act (42 U.S.C. 1395y(a)), as amended by section
156(a)(2)(D) of the Social Security Act Amendments of
1994, is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(14);
(2) by striking the period at the end of para-
graph (15) and inserting ‘‘; or’’; and
681
(3) by inserting after paragraph (15) the fol-
lowing new paragraph:
‘‘(16) where such expenses are for an item or
service furnished in a competitive acquisition area
(as established by the Secretary under section
1847(a)) by an individual or entity other than the
supplier with whom the Secretary has entered into
a contract under section 1847(b) for the furnishing
of such item or service in that area, unless the Sec-
retary finds that such expenses were incurred in a
case of urgent need.’’.
(c) REDUCTION IN PAYMENT AMOUNTS IF COMPETI-
TIVE ACQUISITION FAILS TO ACHIEVE MINIMUM REDUC-
TION IN PAYMENTS.—Notwithstanding any other provi-
sion of title XVIII of the Social Security Act, if the estab-
lishment of competitive acquisition areas under section
1847 of such Act (as added by subsection (a)) and the
limitation of coverage for items and services under part
B of such title to items and services furnished by providers
with competitive acquisition contracts under such section
does not result in a reduction of at least 10 percent in
the projected payment amount that would have applied to
the item or service under part B if the item or service
had not been furnished through competitive acquisition
under such section, the Secretary shall reduce the pay-
682
ment amount by such percentage as the Secretary deter-
mines necessary to result in such a reduction.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to items and services furnished
under part B of title XVIII of the Social Security Act on
or after January 1, 1995.
SEC. 12403. APPLICATION OF COMPETITIVE ACQUISITION
PROCEDURES FOR LABORATORY SERVICES.
(a) IN GENERAL.—Section 1847(c) of the Social Se-
curity Act, as added by section 12402, is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and
(2) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) Clinical diagnostic laboratory tests.’’.
(b) REDUCTION IN FEE SCHEDULE AMOUNTS IF
COMPETITIVE ACQUISITION FAILS
TO ACHIEVE SAV-
INGS.—Section 1833(h) (42 U.S.C. 1395l(h)) is amended
by adding at the end the following new paragraph:
‘‘(7) Notwithstanding any other provision of this sub-
section, if the Secretary applies the authority provided
under section 1847 to establish competitive acquisition
areas for the furnishing of clinical diagnostic laboratory
tests in a year and the application of such authority does
not result in a reduction of at least 10 percent in the pro-
683
jected payment amount that would have applied to such
tests under this section if the tests had not been furnished
through competitive acquisition under section 1847, the
Secretary shall reduce each payment amount otherwise de-
termined under the fee schedules and negotiated rates es-
tablished under this subsection by such percentage as the
Secretary determines necessary to result in such a reduc-
tion.’’.
SEC. 12404. MEDICARE SECONDARY PAYER CHANGES.
(a) EXTENSION OF DATA MATCH.—
(1) 
Section 
1862(b)(5)(C) 
(42 
U.S.C.
1395y(b)(5)(C)) is amended by striking clause (iii).
(2) Section 6103(l)(12) of the Internal Revenue
Code of 1986 is amended by striking subparagraph
(F).
(b) REPEAL OF SUNSET ON APPLICATION TO DIS-
ABLED EMPLOYEES OF EMPLOYERS WITH MORE THAN
100 EMPLOYEES.—Section 1862(b)(1)(B)(iii) (42 U.S.C.
1395y(b)(1)(B)(iii)), as amended by section 13561(b) of
OBRA–1993, is amended—
(1) in the heading, by striking ‘‘SUNSET’’ and
inserting ‘‘EFFECTIVE DATE’’; and
(2) by striking ‘‘, and before October 1, 1998’’.
(c) EXTENSION OF PERIOD FOR END STAGE RENAL
DISEASE BENEFICIARIES.—Section 1862(b)(1)(C) (42
684
U.S.C. 1395y(b)(1)(C)), as amended by section 13561(c)
of OBRA–1993, is amended in the second sentence by
striking ‘‘and on or before October 1, 1998,’’.
SEC. 12405. LIMITATIONS ON PAYMENT FOR PHYSICIANS’
SERVICES FURNISHED BY HIGH-COST HOS-
PITAL MEDICAL STAFFS.
(a) IN GENERAL.—
(1) LIMITATIONS DESCRIBED.—Part B of title
XVIII of the Social Security Act is amended by add-
ing at the end the following new section:
‘‘LIMITATIONS ON PAYMENT FOR PHYSICIANS’ SERVICES
FURNISHED BY HIGH-COST HOSPITAL MEDICAL STAFFS
‘‘SEC. 1849. (a) SERVICES SUBJECT
TO REDUC-
TION.—
‘‘(1) DETERMINATION
OF
HOSPITAL-SPECIFIC
PER ADMISSION RELATIVE VALUE.—Not later than
October 1 of each year (beginning with 1997), the
Secretary shall determine for each hospital—
‘‘(A) the hospital-specific per admission
relative value under subsection (b)(2) for the
following year; and
‘‘(B) whether such hospital-specific relative
value is projected to exceed the allowable aver-
age per admission relative value applicable to
the hospital for the following year under sub-
section (b)(1).
685
‘‘(2) REDUCTION FOR SERVICES AT HOSPITALS
EXCEEDING ALLOWABLE AVERAGE PER ADMISSION
RELATIVE
VALUE.—If the Secretary determines
(under paragraph (1)) that a medical staff’s hos-
pital-specific per admission relative value for a year
(beginning with 1998) is projected to exceed the al-
lowable average per admission relative value applica-
ble to the medical staff for the year, the Secretary
shall reduce (in accordance with subsection (c)) the
amount of payment otherwise determined under this
part for each physician’s service furnished during
the year to an inpatient of the hospital by an indi-
vidual who is a member of the hospital’s medical
staff.
‘‘(3) TIMING OF DETERMINATION; NOTICE TO
HOSPITALS AND CARRIERS.—Not later than October
1 of each year (beginning with 1997), the Secretary
shall notify the medical executive committee of each
hospital (as set forth in the Standards of the Joint
Commission on the Accreditation of Health Organi-
zations) of the determinations made with respect to
the medical staff under paragraph (1).
‘‘(b) DETERMINATION
OF ALLOWABLE AVERAGE
PER ADMISSION RELATIVE VALUE AND HOSPITAL-SPE-
CIFIC PER ADMISSION RELATIVE VALUES.—
686
‘‘(1) ALLOWABLE
AVERAGE
PER
ADMISSION
RELATIVE VALUE.—
‘‘(A) URBAN HOSPITALS.—In the case of a
hospital located in an urban area, the allowable
average per admission relative value established
under this subsection for a year is equal to 125
percent (or 120 percent for years after 1999) of
the median of 1996 hospital-specific per admis-
sion relative values determined under paragraph
(2) for all hospital medical staffs.
‘‘(B) RURAL HOSPITALS.—In the case of a
hospital located in a rural area, the allowable
average per admission relative value established
under this subsection for 1998 and each suc-
ceeding year, is equal to 140 percent of the me-
dian of the 1996 hospital-specific per admission
relative values determined under paragraph (2)
for all hospital medical staffs.
‘‘(2) HOSPITAL-SPECIFIC PER ADMISSION REL-
ATIVE VALUE.—
‘‘(A) IN
GENERAL.—The hospital-specific
per admission relative value projected for a hos-
pital (other than a teaching hospital) for a cal-
endar year, shall be equal to the average per
admission relative value (as determined under
687
section 1848(c)(2)) for physicians’ services fur-
nished to inpatients of the hospital by the hos-
pital’s medical staff (excluding interns and resi-
dents) during the second year preceding such
calendar year, adjusted for variations in case-
mix and disproportionate share status among
hospitals (as determined by the Secretary under
subparagraph (C)).
‘‘(B) SPECIAL RULE FOR TEACHING HOS-
PITALS.—The hospital-specific relative value
projected for a teaching hospital in a calendar
year shall be equal to the sum of—
‘‘(i) the average per admission relative
value 
(as 
determined 
under 
section
1848(c)(2)) for physicians’ services fur-
nished to inpatients of the hospital by the
hospital’s medical staff (excluding interns
and residents) during the second year pre-
ceding such calendar year; and
‘‘(ii) the equivalent per admission rel-
ative value (as determined under section
1848(c)(2)) for physicians’ services fur-
nished to inpatients of the hospital by in-
terns and residents of the hospital during
the second year preceding such calendar
688
year, adjusted for variations in case-mix,
disproportionate share status, and teaching
status among hospitals (as determined by
the Secretary under subparagraph (C)).
The Secretary shall determine such equiva-
lent relative value unit per admission for
interns and residents based on the best
available data for teaching hospitals and
may make such adjustment in the aggre-
gate.
‘‘(C) ADJUSTMENT
FOR
TEACHING
AND
DISPROPORTIONATE
SHARE
HOSPITALS.—The
Secretary shall adjust the allowable per admis-
sion relative values otherwise determined under
this paragraph to take into account the needs
of teaching hospitals and hospitals receiving ad-
ditional payments under subparagraphs (F) and
(G) of section 1886(d)(5). The adjustment for
teaching status or disproportionate share shall
not be less than zero.
‘‘(c) AMOUNT OF REDUCTION.—The amount of pay-
ment otherwise made under this part for a physician’s
service that is subject to a reduction under subsection (a)
during a year shall be reduced 15 percent, in the case of
a service furnished by a member of the medical staff of
689
the hospital for which the Secretary determines under sub-
section (a)(1) that the hospital medical staff’s projected
relative value per admission exceeds the allowable average
per admission relative value.
‘‘(d) RECONCILIATION OF REDUCTIONS BASED ON
HOSPITAL-SPECIFIC RELATIVE VALUE PER ADMISSION
WITH ACTUAL RELATIVE VALUES.—
‘‘(1) DETERMINATION
OF
ACTUAL
AVERAGE
PER ADMISSION RELATIVE VALUE.—Not later than
October 1 of each year (beginning with 1999), the
Secretary shall determine the actual average per ad-
mission relative value (as determined pursuant to
section 1848(c)(2)) for the physicians’ services fur-
nished by members of a hospital’s medical staff to
inpatients of the hospital during the previous year,
on the basis of claims for payment for such services
that are submitted to the Secretary not later than
90 days after the last day of such previous year. The
actual average per admission shall be adjusted by
the appropriate case-mix, disproportionate share fac-
tor, and teaching factor for the hospital medical
staff (as determined by the Secretary under sub-
section (b)(2)(C)). Notwithstanding any other provi-
sion of this title, no payment may be made under
this part for any physician’s service furnished by a
690
member of a hospital’s medical staff to an inpatient
of the hospital during a year unless the hospital sub-
mits a claim to the Secretary for payment for such
service not later than 90 days after the last day of
the year.
‘‘(2) 
RECONCILIATION
WITH
REDUCTIONS
TAKEN.—In the case of a hospital for which the pay-
ment amounts for physicians’ services furnished by
members of the hospital’s medical staff to inpatients
of the hospital were reduced under this section for
a year—
‘‘(A) if the actual average per admission
relative value for such hospital’s medical staff
during the year (as determined by the Secretary
under paragraph (1)) did not exceed the allow-
able average per admission relative value appli-
cable to the hospital’s medical staff under sub-
section (b)(1) for the year, the Secretary shall
reimburse the fiduciary agent for the medical
staff by the amount by which payments for
such services were reduced for the year under
subsection (c), including interest at an appro-
priate rate determined by the Secretary;
‘‘(B) if the actual average per admission
relative value for such hospital’s medical staff
691
during the year is less than 15 percentage
points above the allowable average per admis-
sion relative value applicable to the hospital’s
medical staff under subsection (b)(1) for the
year, the Secretary shall reimburse the fidu-
ciary agent for the medical staff, as a percent
of the total allowed charges for physicians’ serv-
ices performed in such hospital (prior to the
withhold), the difference between 15 percentage
points and the actual number of percentage
points that the staff exceeds the limit allowable
average per admission relative value, including
interest at an appropriate rate determined by
the Secretary; and
‘‘(C) if the actual average per admission
relative value for such hospital’s medical staff
during the year exceeded the allowable average
per admission relative value applicable to the
hospital’s medical staff by 15 percentage points
or more, none of the withhold is paid to the fi-
duciary agent for the medical staff.
‘‘(3) MEDICAL
EXECUTIVE
COMMITTEE
OF
A
HOSPITAL.—Each medical executive committee of a
hospital whose medical staff is projected to exceed
the allowable relative value per admission for a year,
692
shall have one year from the date of notification that
such medical staff is projected to exceed the allow-
able relative value per admission to designate a fidu-
ciary agent for the medical staff to receive and dis-
burse any appropriate withhold amount made by the
carrier.
‘‘(4) ALTERNATIVE REIMBURSEMENT TO MEM-
BERS
OF
STAFF.—At the request of a fiduciary
agent for the medical staff, if the fiduciary agent for
the medical staff is owed the reimbursement de-
scribed in paragraph (2)(B) for excess reductions in
payments during a year, the Secretary shall make
such reimbursement to the members of the hospital’s
medical staff, on a pro-rata basis according to the
proportion of physicians’ services furnished to inpa-
tients of the hospital during the year that were fur-
nished by each member of the medical staff.
‘‘(e) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) MEDICAL STAFF.—An individual furnish-
ing a physician’s service is considered to be on the
medical staff of a hospital—
‘‘(A) if (in accordance with requirements
for hospitals established by the Joint Commis-
693
sion on Accreditation of Health Organiza-
tions)—
‘‘(i) the individual is subject to by-
laws, rules, and regulations established by
the hospital to provide a framework for the
self-governance of medical staff activities;
‘‘(ii) subject to such bylaws, rules, and
regulations, the individual has clinical
privileges granted by the hospital’s govern-
ing body; and
‘‘(iii) under such clinical privileges,
the individual may provide physicians’
services independently within the scope of
the individual’s clinical privileges, or
‘‘(B) if such physician provides at least one
service to a medicare beneficiary in such hos-
pital.
‘‘(2) RURAL AREA; URBAN AREA.—The terms
‘rural area’ and ‘urban area’ have the meaning given
such terms under section 1886(d)(2)(D).
‘‘(3) TEACHING HOSPITAL.—The term ‘teaching
hospital’ means a hospital which has a teaching pro-
gram approved as specified in section 1861(b)(6).’’.
(2) CONFORMING AMENDMENTS.—(A) Section
1833(a)(1)(N) 
of 
such 
Act 
(42 
U.S.C.
694
1395l(a)(1)(N)) is amended by inserting ‘‘(subject to
reduction under section 1849)’’ after ‘‘1848(a)(1)’’.
(B) Section 1848(a)(1)(B) of such Act (42
U.S.C. 1395w@4(a)(1)(B)) is amended by striking
‘‘this subsection,’’ and inserting ‘‘this subsection and
section 1849,’’.
(b) REQUIRING PHYSICIANS TO IDENTIFY HOSPITAL
AT
WHICH
SERVICE
FURNISHED.—Section
1848(g)(4)(A)(i) 
of 
such 
Act 
(42 
U.S.C.
1395w@4(g)(4)(A)(i)) is amended by striking ‘‘bene-
ficiary,’’ and inserting ‘‘beneficiary (and, in the case of
a service furnished to an inpatient of a hospital, report
the hospital identification number on such claim form),’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to services furnished on or after
January 1, 1998.
SEC. 12406. REDUCTION IN UPDATE FOR INPATIENT HOS-
PITAL SERVICES.
Section 1886(b)(3)(B)(i) of the Social Security Act
(42 U.S.C. 1395ww(b)(3)(B)(i)) is amended—
(1) in subclause (XII)—
(A) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘for each of the fiscal years 1997
through 2000’’, and
695
(B) by striking ‘‘0.5 percentage point’’ and
inserting ‘‘2.0 percentage points’’; and
(2) in subclause (XIII), by striking ‘‘fiscal year
1998’’ and inserting ‘‘fiscal year 2003’’.
SEC. 12407. ESTABLISHMENT OF CUMULATIVE EXPENDI-
TURE GOALS FOR PHYSICIAN SERVICES.
(a) USE OF CUMULATIVE PERFORMANCE STAND-
ARD.—Section 1848(f)(2) of the Social Security Act (42
U.S.C. 1395w@4(f)(2)) is amended—
(1) in subparagraph (A)—
(A) in the heading, by striking ‘‘IN GEN-
ERAL’’ and inserting ‘‘FISCAL
YEARS
1991
THROUGH 1994.—’’,
(B) in the matter preceding clause (i), by
striking ‘‘a fiscal year (beginning with fiscal
year 1991)’’ and inserting ‘‘fiscal years 1991,
1992, 1993, and 1994’’, and
(C) in the matter following clause (iv), by
striking ‘‘subparagraph (B)’’ and inserting
‘‘subparagraph (C)’’;
(2) in subparagraph (B), by striking ‘‘subpara-
graph (A)’’ and inserting ‘‘subparagraphs (A) and
(B)’’;
(3) by redesignating subparagraphs (B) and
(C) as subparagraphs (C) and (D); and
696
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) FISCAL YEARS BEGINNING WITH FIS-
CAL
YEAR
1995.—Unless Congress otherwise
provides, the performance standard rate of in-
crease, for all physicians’ services and for each
category of physicians’ services, for a fiscal year
beginning with fiscal year 1995 shall be equal
to the performance standard rate of increase
determined under this paragraph for the pre-
vious fiscal year, increased by the product of—
‘‘(i) 1 plus the Secretary’s estimate of
the weighted average percentage increase
(divided by 100) in the fees for all physi-
cians’ services or for the category of physi-
cians’ services, respectively, under this part
for portions of calendar years included in
the fiscal year involved,
‘‘(ii) 1 plus the Secretary’s estimate of
the percentage increase or decrease (di-
vided by 100) in the average number of in-
dividuals enrolled under this part (other
than HMO enrollees) from the previous fis-
cal year to the fiscal year involved,
697
‘‘(iii) 1 plus the Secretary’s estimate
of the average annual percentage growth
(divided by 100) in volume and intensity of
all physicians’ services or of the category
of physicians’ services, respectively, under
this part for the 5-fiscal-year period ending
with the preceding fiscal year (based upon
information contained in the most recent
annual report made pursuant to section
1841(b)(2)), and
‘‘(iv) 1 plus the Secretary’s estimate
of the percentage increase or decrease (di-
vided by 100) in expenditures for all physi-
cians’ services or of the category of physi-
cians’ services, respectively, in the fiscal
year (compared with the previous fiscal
year) which are estimated to result from
changes in law or regulations affecting the
percentage increase described in clause (i)
and which is not taken into account in the
percentage increase described in clause (i),
minus 1, multiplied by 100, and reduced by the
performance standard factor (specified in sub-
paragraph (C)).’’.
(b) TREATMENT OF DEFAULT UPDATE.—
698
(1) IN GENERAL.—Section 1848(d)(3)(B) (42
U.S.C. 1395w@4(d)(3)(B)) is amended—
(A) in clause (i)—
(i) in the heading, by striking ‘‘IN
GENERAL’’ and inserting ‘‘1992 THROUGH
1996’’, and
(ii) by striking ‘‘for a year’’ and in-
serting ‘‘for 1992, 1993, 1994, 1995, and
1996’’; and
(B) by adding after clause (ii) the follow-
ing new clause:
‘‘(iii) YEARS BEGINNING WITH 1997.—
‘‘(I) IN
GENERAL.—The update
for a category of physicians’ services
for a year beginning with 1997 pro-
vided under subparagraph (A) shall be
increased or decreased by the same
percentage by which the cumulative
percentage increase in actual expendi-
tures for such category of physicians’
services for such year was less or
greater, respectively, than the per-
formance standard rate of increase
(established under subsection (f)) for
699
such category of services for such
year.
‘‘(II) CUMULATIVE PERCENTAGE
INCREASE
DEFINED.—In subclause
(I), the ‘cumulative percentage in-
crease in actual expenditures’ for a
year shall be equal to the product of
the adjusted increases for each year
beginning with 1995 up to and includ-
ing the year involved, minus 1 and
multiplied by 100. In the previous
sentence, the ‘adjusted increase’ for a
year is equal to 1 plus the percentage
increase in actual expenditures for the
year.’’.
(2) 
CONFORMING
AMENDMENT.—Section
1848(d)(3)(A)(i) (42 U.S.C. 1395w@4(d)(3)(A)(i))
is amended by striking ‘‘subparagraph (B)’’ and in-
serting ‘‘subparagraphs (B) and (C)’’.
SEC. 12408. EXTENSION OF FREEZE ON UPDATES TO ROU-
TINE SERVICE COSTS OF SKILLED NURSING
FACILITIES.
(a) PAYMENTS BASED ON COST LIMITS.—Section
1888(a) of the Social Security Act (42 U.S.C. 1395yy(a))
is amended by striking ‘‘112 percent’’ each place it ap-
700
pears and inserting ‘‘100 percent (adjusted by such
amount as the Secretary determines to be necessary to
preserve the savings resulting from the enactment of sec-
tion 13503(a)(1) of the Omnibus Budget Reconciliation
Act of 1993)’’.
(b) PAYMENTS
DETERMINED
ON
PROSPECTIVE
BASIS.—Section 1888(d)(2)(B) of such Act (42 U.S.C.
1395yy(d)(2)(B)) is amended by striking ‘‘105 percent’’
and inserting ‘‘100 percent (adjusted by such amount as
the Secretary determines to be necessary to preserve the
savings resulting from the enactment of section 13503(b)
of the Omnibus Budget Reconciliation Act of 1993)’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and(b) shall apply to cost reporting periods
beginning on or after October 1, 1995.
SEC. 12409. REDUCTION IN ROUTINE COST LIMITS FOR
HOME HEALTH SERVICES.
(a) REDUCTION IN UPDATE TO MAINTAIN FREEZE
IN 1996.—Section 1861(v)(1)(L)(i) of the Social Security
Act (42 U.S.C. 1395x(v)(1)(L)(i)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the
end;
(2) in subclause (III), by striking ‘‘112 per-
cent,’’ and inserting ‘‘and before July 1, 1996, 112
percent, or’’; and
701
(3) by inserting after subclause (III) the follow-
ing new subclause:
‘‘(IV) July 1, 1996, 100 percent (adjusted by
such amount as the Secretary determines to be nec-
essary to preserve the savings resulting from the en-
actment of section 13564(a)(1) of the Omnibus
Budget Reconciliation Act of 1993),’’.
(b) BASING LIMITS IN SUBSEQUENT YEARS ON ME-
DIAN OF COSTS.—
(1) IN GENERAL.—Section 1861(v)(1)(L)(i) of
such Act (U.S.C. 1395x(v)(1)(L)(i)), as amended by
subsection (a), is amended in the matter following
subclause (IV) by striking ‘‘the mean’’ and inserting
‘‘the median’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to cost reporting peri-
ods beginning on or after July 1, 1997.
SEC. 12410. ELIMINATION OF FORMULA-DRIVEN OVERPAY-
MENTS FOR CERTAIN OUTPATIENT HOSPITAL
SERVICES.
(a) 
AMBULATORY
SURGICAL
CENTER
PROCE-
DURES.—Section 1833(i)(3)(B)(i)(II) of the Social Secu-
rity Act (42 U.S.C. 1395l(i)(3)(B)(i)(II)) is amended—
(1) by striking ‘‘of 80 percent’’; and
702
(2) by striking the period at the end and insert-
ing the following: ‘‘, less the amount a provider may
charge as described in clause (ii) of section
1866(a)(2)(A).’’.
(b) RADIOLOGY SERVICES AND DIAGNOSTIC PROCE-
DURES.—Section 1833(n)(1)(B)(i)(II) of such Act (42
U.S.C. 1395l(n)(1)(B)(i)(II)) is amended—
(1) by striking ‘‘of 80 percent’’; and
(2) by striking the period at the end and insert-
ing the following: ‘‘, less the amount a provider may
charge as described in clause (ii) of section
1866(a)(2)(A).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to services furnished during por-
tions of cost reporting periods occurring on or after July
1, 1994.
TITLE XIII—INCOME SECURITY
Subtitle A—Administrative Reform
SEC. 13001. ELIMINATION OF DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT.
(a) ELIMINATION OF DEPARTMENT.—
(1) IN GENERAL.—The Department of Housing
and Urban Development Act (42 U.S.C. 3531 et
seq.) is hereby repealed.
703
(2) EFFECTIVE
DATE.—Paragraph (1) shall
take effect on January 1, 1998.
(b) TERMINATION OF GNMA.—Section 302(a)(2)(A)
of the National Housing Act (12 U.S.C. 1717(a)(2)(A))
is amended by adding at the end the following new sen-
tences: ‘‘Upon January 1, 1988 (or such earlier date as
provided in the plan of the Secretary of Housing and
Urban Development under section 13001(b) of the Re-
structuring a Limited Government Act), the body cor-
porate described in this subparagraph shall cease to exist.
Upon such date, any authority of the Department of
Housing and Urban Development under this Act or any
other Act to carry out duties and functions of the Associa-
tion shall terminate, except to the extent provided in such
plan as necessary to meet any outstanding obligations of
the Association.’’.
(c) DUTIES OF THE SECRETARY.—
(1) IN GENERAL.—Notwithstanding any other
provision of this Act or any other provision of law,
prior to January 1, 1998, the Secretary of Housing
and Urban Development (hereafter in this section
referred to as the ‘‘Secretary’’) shall take such ac-
tions as may be necessary to—
704
(A) consolidate the programs administered
by the Department of Housing and Urban De-
velopment into a block grant program;
(B) convert all funding for public and as-
sisted housing under the United States Housing
Act of 1937 to tenant-based rental assistance;
(C) convert the Federal Housing Adminis-
tration into a government-controlled corpora-
tion, which would provide mortgage insurance
only to low- and moderate-income persons
under risk-sharing agreements with private
mortgage insurers;
(D) transfer, if the Secretary determines
appropriate and feasible, the functions of the
Government National Mortgage Association to
the Federal National Mortgage Association or
the Federal Home Loan Mortgage Corporation,
fulfill any outstanding obligations of the Gov-
ernment National Mortgage Association, and
windup the business of such Association; and
(E) otherwise provide for the complete
elimination of the Department of Housing and
Urban Development pursuant to subsections (a)
and (b).
(2) SUBMISSIONS TO CONGRESS.—
705
(A) STRATEGIC PLAN.—Not later than 180
days after the date of enactment of this Act,
the Secretary shall submit to the Congress a
plan to carry out paragraph (1), which shall in-
clude any recommendations for—
(i) legislation necessary to carry out
paragraph (1);
(ii) transfers of functions and activi-
ties, including all existing obligations to
other existing or successor Federal or
State agencies.
(B) PRIVATIZATION
OF
FHA.—Not later
than 180 days after the date of enactment of
this Act, the Secretary shall submit to the Con-
gress a report which shall include—
(i) recommendations and a strategic
plan for the complete privatization of the
Federal Housing Administration; and
(ii) a description of the projected cost
savings to the Federal Government that
would be achieved through the complete
privatization of the Federal Housing Ad-
ministration.
(d) 
CONGRESSIONAL
BUDGET
OFFICE
REC-
OMMENDATIONS.—Not later than 180 days after the date
706
of enactment of this Act, the Director of the Congressional
Budget Office shall submit to the Committee on Banking
and Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a list of recommendations for minimiz-
ing the cost of Federal housing and community develop-
ment programs through the elimination of the Department
of Housing and Urban Development.
(e) GAO REPORT.—Not later than 180 days after the
date of enactment of this Act, the Comptroller General
of the United States shall submit to the Committee on
Banking and Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report which shall include
recommendations for the most efficient means of achiev-
ing—
(1) the complete elimination of the Department
of Housing and Urban Development; and
(2) the transfer of the functions of the Depart-
ment of Housing and Urban Development to other
existing or successor Federal or State agencies.
(f) TRANSFER OF FUNCTIONS AND SAVINGS PROVI-
SIONS.—
707
(1) DEFINITIONS.—For purposes of this sub-
section, unless otherwise provided or indicated by
the context—
(A) the term ‘‘Federal agency’’ has the
meaning given to the term ‘‘agency’’ by section
551(1) of title 5, United States Code;
(B) the term ‘‘function’’ means any duty,
obligation, 
power, 
authority, 
responsibility,
right, privilege, activity, or program; and
(C) the term ‘‘office’’ includes any office,
administration, agency, institute, unit, organi-
zational entity, or component thereof.
(2) TRANSFER
OF
FUNCTIONS.—There are
transferred to the Department of Justice all func-
tions which the Secretary of Housing and Urban De-
velopment exercised before the date of the enactment
of this Act (including all related functions of any of-
ficer or employee of the Department of Housing and
Urban Development) relating to the Fair Housing
Act or the rights granted under the Fair Housing
Act.
(3) DETERMINATIONS OF CERTAIN FUNCTIONS
BY THE OFFICE OF MANAGEMENT AND BUDGET.—
If necessary, the Office of Management and Budget
708
shall make any determination of the functions that
are transferred under paragraph (2).
(4) PERSONNEL PROVISIONS.—
(A) APPOINTMENTS.—The attorney gen-
eral may appoint and fix the compensation of
such officers and employees, including inves-
tigators, attorneys, and administrative law
judges, as may be necessary to carry out the re-
spective functions transferred under this sub-
section. Except as otherwise provided by law,
such officers and employees shall be appointed
in accordance with the civil service laws and
their compensation fixed in accordance with
title 5, United States Code.
(B) EXPERTS
AND
CONSULTANTS.—The
Attorney General may obtain the services of ex-
perts and consultants in accordance with sec-
tion 3109 of title 5, United States Code, and
compensate such experts and consultants for
each day (including travel time) at rates not in
excess of the rate of pay for level IV of the Ex-
ecutive Schedule under section 5315 of such
title. The Attorney General may pay experts
and consultants who are serving away from
their homes or regular place of business travel
709
expenses and per diem in lieu of subsistence at
rates authorized by sections 5702 and 5703 of
such title for persons in Government service
employed intermittently.
(5) DELEGATION
AND
ASSIGNMENT.—Except
where otherwise expressly prohibited by law or oth-
erwise provided by this subsection, the Attorney
General may delegate any of the functions trans-
ferred to the Attorney General by this title and any
function transferred or granted to such Attorney
General after the effective date of this subsection to
such officers and employees of the Department of
Justice as the Attorney General may designate, and
may authorize successive redelegations of such func-
tions as may be necessary or appropriate. No delega-
tion of functions by the Attorney General under this
paragraph or under any other provision of this sub-
section shall relieve such Attorney General of re-
sponsibility for the administration of such functions.
(6) REORGANIZATION.—The Attorney General
is authorized to allocate or reallocate any function
transferred under paragraph (2) among the officers
of the Department of Justice, and to establish, con-
solidate, alter, or discontinue such organizational en-
710
tities in the Department of Justice as may be nec-
essary or appropriate.
(7) RULES.—The Attorney General is author-
ized to prescribe, in accordance with the provisions
of chapters 5 and 6 of title 5, United States Code,
such rules and regulations as the Attorney General
determines necessary or appropriate to administer
and manage the functions of the Department of Jus-
tice.
(8) TRANSFER AND ALLOCATIONS OF APPRO-
PRIATIONS AND PERSONNEL.—Except as otherwise
provided in this subsection, the personnel employed
in connection with, and the assets, liabilities, con-
tracts, property, records, and unexpended balances
of appropriations, authorizations, allocations, and
other funds employed, used, held, arising from,
available to, or to be made available in connection
with the functions transferred by this subsection,
subject to section 1531 of title 31, United States
Code, shall be transferred to the Department of Jus-
tice. Unexpended funds transferred pursuant to this
paragraph shall be used only for the purposes for
which the funds were originally authorized and ap-
propriated.
711
(9) INCIDENTAL TRANSFERS.—The Director of
the Office of Management and Budget, at such time
or times as the Director shall provide, is authorized
to make such determinations as may be necessary
with regard to the functions transferred by this sub-
section, and to make such additional incidental dis-
positions of personnel, assets, liabilities, grants, con-
tracts, property, records, and unexpended balances
of appropriations, authorizations, allocations, and
other funds held, used, arising from, available to, or
to be made available in connection with such func-
tions, as may be necessary to carry out the provi-
sions of this subsection. The Director of the Office
of Management and Budget shall provide for the ter-
mination of the affairs of all entities terminated by
this subsection and for such further measures and
dispositions as may be necessary to effectuate the
purposes of this subsection.
(10) EFFECT ON PERSONNEL.—
(A) IN
GENERAL.—Except as otherwise
provided by this subsection, the transfer pursu-
ant to this subsection of full-time personnel (ex-
cept special Government employees) and part-
time personnel holding permanent positions
shall not cause any such employee to be sepa-
712
rated or reduced in grade or compensation for
one year after the date of transfer of such em-
ployee under this subsection.
(B) EXECUTIVE SCHEDULE POSITIONS.—
Except as otherwise provided in this subsection,
any person who, on the day preceding the effec-
tive date of this subsection, held a position com-
pensated in accordance with the Executive
Schedule prescribed in chapter 53 of title 5,
United States Code, and who, without a break
in service, is appointed in the Department of
Justice to a position having duties comparable
to the duties performed immediately preceding
such appointment shall continue to be com-
pensated in such new position at not less than
the rate provided for such previous position, for
the duration of the service of such person in
such new position.
(C) TERMINATION
OF
CERTAIN
POSI-
TIONS.—Positions whose incumbents are ap-
pointed by the President, by and with the ad-
vice and consent of the Senate, the functions of
which are transferred by this subsection, shall
terminate on the effective date of this sub-
section.
713
(11) SAVINGS PROVISIONS.—
(A) CONTINUING EFFECT OF LEGAL DOCU-
MENTS.—All orders, determinations, rules, reg-
ulations, permits, agreements, grants, contracts,
certificates, licenses, registrations, privileges,
and other administrative actions—
(i) which have been issued, made,
granted, or allowed to become effective by
the President, any Federal agency or offi-
cial thereof, or by a court of competent ju-
risdiction, in the performance of functions
which are transferred under this sub-
section, and
(ii) which are in effect at the time this
subsection takes effect, or were final before
the effective date of this subsection and
are to become effective on or after the ef-
fective date of this subsection,
shall continue in effect according to their terms
until modified, terminated, superseded, set
aside, or revoked in accordance with law by the
President, the Attorney General or other au-
thorized official, a court of competent jurisdic-
tion, or by operation of law.
714
(B) PROCEEDINGS NOT AFFECTED.—The
provisions of this subsection shall not affect any
proceedings, including notices of proposed rule-
making, or any application for any license, per-
mit, certificate, or financial assistance pending
before the Department of Housing and Urban
Development at the time this subsection takes
effect, with respect to functions transferred by
this subsection but such proceedings and appli-
cations shall be continued. Orders shall be is-
sued in such proceedings, appeals shall be taken
therefrom, and payments shall be made pursu-
ant to such orders, as if this subsection had not
been enacted, and orders issued in any such
proceedings shall continue in effect until modi-
fied, terminated, superseded, or revoked by a
duly authorized official, by a court of competent
jurisdiction, or by operation of law. Nothing in
this subparagraph shall be deemed to prohibit
the discontinuance or modification of any such
proceeding under the same terms and condi-
tions and to the same extent that such proceed-
ing could have been discontinued or modified if
this subsection had not been enacted.
715
(C) SUITS
NOT
AFFECTED.—The provi-
sions of this subsection shall not affect suits
commenced before the effective date of this sub-
section, and in all such suits, proceedings shall
be had, appeals taken, and judgments rendered
in the same manner and with the same effect
as if this subsection had not been enacted.
(D) NONABATEMENT
OF
ACTIONS.—No
suit, action, or other proceeding commenced by
or against the Department of Housing and
Urban Development, or by or against any indi-
vidual in the official capacity of such individual
as an officer of the Department of Housing and
Urban Development, shall abate by reason of
the enactment of this subsection.
(E) ADMINISTRATIVE ACTIONS RELATING
TO PROMULGATION OF REGULATIONS.—Any ad-
ministrative action relating to the preparation
or promulgation of a regulation by the Depart-
ment of Housing and Urban Development relat-
ing to a function transferred under this sub-
section may be continued by the Department of
Justice with the same effect as if this sub-
section had not been enacted.
716
(12) SEPARABILITY.—If a provision of this sub-
section or its application to any person or cir-
cumstance is held invalid, neither the remainder of
this subsection nor the application of the provision
to other persons or circumstances shall be affected.
(13) TRANSITION.—The Attorney General is
authorized to utilize—
(A) the services of such officers, employ-
ees, and other personnel of the Department of
Housing and Urban Development with respect
to functions transferred to the Department of
Justice by this subsection; and
(B) funds appropriated to such functions
for such period of time as may reasonably be
needed to facilitate the orderly implementation
of this subsection.
(14) REFERENCES.—Reference in any other
Federal law, executive order, rule, regulation, or del-
egation of authority, or any document of or relating
to—
(A) the Secretary of Housing and Urban
Development with regard to functions trans-
ferred under paragraph (2), shall be deemed to
refer to the Attorney General; and
717
(B) the Department of Housing and
Urban Development with regard to functions
transferred under paragraph (2), shall be
deemed to refer to the Department of Justice.
(15) 
ADDITIONAL
CONFORMING
AMEND-
MENTS.—
(A) RECOMMENDED LEGISLATION.—After
consultation with the appropriate committees of
the Congress and the Director of the Office of
Management and Budget, the Attorney General
shall prepare and submit to the Congress rec-
ommended legislation containing technical and
conforming amendments to reflect the changes
made by this subsection.
(B) SUBMISSION TO THE CONGRESS.—No
later than 6 months after the effective date of
this subsection, the Attorney General shall sub-
mit the recommended legislation referred to
under subparagraph (A).
(16) EFFECTIVE DATE.—This subsection shall
take effect 180 days after the date of enactment of
this Act.
718
Subtitle B—Housing Program
Reforms
SEC. 13101. ELIMINATION OF OPERATING SUBSIDIES FOR
VACANT PUBLIC HOUSING.
(a) IN GENERAL.—Section 9(a)(3)(B) of the United
States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B))
is amended—
(1) in clause (iv), by striking ‘‘and’’ at the end;
(2) in clause (v), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
clause:
‘‘(vi) no payment may be provided under this
section for any dwelling unit that has been vacant
for a period of 180 days or more unless such unit
is vacant because of comprehensive modernization,
major reconstruction, demolition, or disposition ac-
tivities that have been funded or approved.’’.
(b) ELIMINATION OF ANNUAL CONTRIBUTION RE-
SERVE.—Section 14(p) of the United States Housing Act
of 1937 (42 U.S.C. 1437l(p)) is amended by striking para-
graph (3).
(c) RECAPTURE
OF ANNUAL CONTRIBUTION RE-
SERVE.—The Secretary of Housing and Urban Develop-
ment shall recapture any amounts reserved from annual
719
contributions for public housing agencies and deposited in
accounts established on behalf of the agencies pursuant
to paragraph (3) of section 14(p) of the United States
Housing Act of 1937 (as in effect immediately before the
date of the enactment of this Act).
SEC. 13102. INCREASE OF TENANT CONTRIBUTIONS.
(a) UNITED STATES HOUSING ACT OF 1937.—The
United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended as follows:
(1) GENERAL RULE FOR SECTION 8 AND PUB-
LIC
HOUSING.—In section 3(a)(1)(A), by striking
‘‘30 per centum’’ and inserting ‘‘35 percent’’.
(2) SECTION 8 VOUCHERS.—In section 8(o)—
(A) in paragraph (2), by striking ‘‘30 per
centum’’ and inserting ‘‘35 percent’’; and
(B) in paragraph (11)(B)(ii), by striking
‘‘30 percent’’ and inserting ‘‘35 percent’’.
(3) SECTION 8 ASSISTANCE FOR RENTAL REHA-
BILITATION PROJECTS.—In section 8(u)(2), by strik-
ing ‘‘30 percent’’ and inserting ‘‘35 percent’’.
(4) 
SECTION
HOMEOWNERSHIP
ASSIST-
ANCE.—In section 8(y)(2)(A), by striking ‘‘30 per-
cent’’ and inserting ‘‘35 percent’’.
720
(5) DISPLACEMENT
ASSISTANCE.—In section
16(d)(1), by striking ‘‘30 percent’’ and inserting ‘‘35
percent’’.
(6) FAMILY SELF-SUFFICIENCY PROGRAM.—In
section 23(d), by striking ‘‘30 percent’’ each place it
appears and inserting ‘‘35 percent’’.
(7) MUTUAL HELP HOMEOWNERSHIP PROGRAM
FOR
INDIAN
HOUSING.—In 
section
202(e)(2)(A)(i)(I), by striking ‘‘30 percent’’ and in-
serting ‘‘35 percent’’.
(b) SECTION 8 ASSISTANCE FOR PRESERVATION OF
STATE-SPONSORED
LOW-INCOME
HOUSING.—Section
613(b)(2) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 4125(b)(2)) is amended by strik-
ing ‘‘30 percent’’ and inserting ‘‘35 percent’’.
(c) LOW-INCOME HOUSING PRESERVATION PRO-
GRAMS.—
(1) LIHPRH
ACT
OF
1990.—The Low-Income
Housing Preservation and Resident Homeownership
Act of 1990 is amended—
(A) in section 218(a)(1)(A) (12 U.S.C.
4108(a)(1)(A)), by striking ‘‘30 percent’’ and
inserting ‘‘35 percent’’; and
721
(B) in section 222(a)(2)(D)(i) (12 U.S.C.
4112(a)(2)(D)(i)), by striking ‘‘30 percent’’ and
inserting ‘‘35 percent’’.
(2) ELIHP ACT OF 1987.—Any reference in the
provisions of the Emergency Low Income Housing
Preservation Act of 1987 (as in effect before the
date of the enactment of the Cranston-Gonzalez Na-
tional Affordable Housing Act) to 30 percent of the
adjusted income of a tenant or family shall be con-
sidered to mean 35 percent of such adjusted income,
for purposes of the applicability of the provisions of
the Emergency Low Income Housing Preservation
Act of 1987 pursuant to section 604 of the Cran-
ston-Gonzalez National Affordable Housing Act.
SEC. 13103. REDUCTION OF PHA ADMINISTRATIVE FEES
FOR SECTION 8 RENTAL ASSISTANCE PRO-
GRAM.
(a) MONTHLY FEE.—
(1) IN GENERAL.—Section 8(q)(1) of the Unit-
ed States Housing Act of 1937 (42 U.S.C.
1437f(q)(1)) is amended—
(A) by striking the 2d sentence and insert-
ing the following new sentences: ‘‘In fiscal year
1996 the amount of the fee for each month for
which a dwelling unit is covered by an assist-
722
ance contract shall be 7.2375 percent of the
fair market rental established under subsection
(c)(1) for a 2-bedroom existing rental dwelling
unit in the market area of the public housing
agency. In fiscal year 1997 and in each fiscal
year thereafter, the fee shall be 5.0 percent of
such fair market rental.’’; and
(B) in the last sentence, by striking ‘‘fee’’
and inserting ‘‘amount of the fee established
under this paragraph, for certain programs,’’.
(2) EFFECTIVE DATE AND APPLICABILITY.—
(A) EFFECTIVE DATE.—The amendments
under paragraph (1) shall be made on October
1, 1995.
(B) 
APPLICABILITY.—The 
amendments
made by this subsection shall apply to any
dwelling units covered by an assistance contract
under section 8 of the United States Housing
Act of 1937 in effect on October 1, 1995, and
any units covered by such a contract entered
into or renewed on or after such date.
(b) START-UP FEE.—
(1) IN GENERAL.—Section 8(q)(2)(A)(i) of the
United States Housing Act of 1937 (42 U.S.C.
723
1437f(q)(2)(A)(i)) is amended by striking ‘‘$275’’
and inserting ‘‘$590’’.
(2) EFFECTIVE DATE.—The amendment under
paragraph (1) shall be made and shall take effect on
October 1, 1995.
Subtitle C—Supplemental Security
Income Reforms
SEC. 13201. MORE TIMELY REPORTING OF ADMISSIONS OF
SSI RECIPIENTS TO NURSING HOMES; $30
LIMIT ON SSI BENEFITS FOR RECIPIENTS IN
NURSING HOMES IF MEDICAID PAYS MOST
OF THEIR CARE COSTS.
Section 1631(e)(1)(C) of the Social Security Act (42
U.S.C. 1383(e)(1)(C)), as added by section 6(a) of the So-
cial Security Domestic Employment Reform Act of 1994,
is amended by striking ‘‘2 weeks’’ and inserting ‘‘1 day’’.
SEC. 13202. REDUCED UNEARNED INCOME EXCLUSION
UNDER THE SUPPLEMENTAL SECURITY IN-
COME PROGRAM.
Section 1612(b)(3)(A) of the Social Security Act (42
U.S.C. 1382a(b)(3)(A)) is amended by striking ‘‘$20’’ and
inserting ‘‘$15’’.
724
SEC. 13203. RECOVERY OF SSI OVERPAYMENTS FROM SO-
CIAL SECURITY BENEFITS.
(a) IN GENERAL.—Part A of title XI of the Social
Security Act (42 U.S.C. 1301 et seq.) is amended by add-
ing at the end the following new section:
‘‘RECOVERY OF SSI OVERPAYMENTS FROM OASDI
BENEFITS
‘‘SEC. 1144. (a) Whenever the Commissioner of So-
cial Security determines that more than the correct
amount of supplemental security income benefits has been
paid to any person and the Commissioner is unable to
make proper adjustment or recovery of the amount so in-
correctly paid as provided in section 1631(b), the Commis-
sioner (notwithstanding section 207) may recover the
amount incorrectly paid by reducing monthly insurance
benefits otherwise payable under title II to such person
or such person’s estate.
‘‘(b) Together with any certification for payment of
monthly insurance benefits under title II pursuant to sec-
tion 205(i), the Commissioner shall include a certification
of the amount of any reduction in such benefits made pur-
suant to subsection (a). Upon receipt of such certification
of the amount of the reduction, the Secretary of the Treas-
ury, as Managing Trustee of the Federal Old-Age and
Survivors Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, shall transfer an amount equal to
725
the amount of such reduction as so certified from the ap-
propriate Trust Fund to the general fund of the Treasury.
‘‘(c) For purposes of this section, the term ‘supple-
mental security income benefit’ means a benefit under title
XVI, including a supplementary payment of the type de-
scribed in section 1616(a) and a payment pursuant to an
administration agreement entered into under section
212(b) of Public Law 93–66.’’.
(b) CONFORMING AMENDMENT.—Section 1631(b) of
such Act (42 U.S.C. 1383(b)) is amended by adding at
the end the following new paragraph:
‘‘(6) For provisions relating to the recovery of over-
payments under this title by means of reduction in bene-
fits otherwise payable under title II, see section 1144.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act and shall apply to overpayments outstanding
on or after such date.
Subtitle D—Civil Service Reforms
SEC. 13301. INCREASE IN RETIREMENT AGE UNDER FERS
TO 65.
(a) IN GENERAL.—Chapter 84 of title 5, United
States Code, is amended by adding at the end the follow-
ing:
726
‘‘SUBCHAPTER VIII—SPECIAL RULES FOR CER-
TAIN POST-1993 NEW EMPLOYEES AND
MEMBERS
‘‘§ 8481. Applicability
‘‘(a) This subchapter sets forth special rules in con-
formance with which this chapter shall be applied with re-
spect to any employee who first becomes an employee sub-
ject to this chapter, or who is first elected as a Member,
after December 31, 1994.
‘‘(b) Nothing in this subchapter shall be considered
to apply with respect to any employee or Member not de-
scribed in subsection (a) or to have any effect except for
the purpose referred to in such subsection.
‘‘§ 8482. Immediate retirement
‘‘Deem section 8412 to be amended as follows:
‘‘(1) Subsection (c) is amended by striking ‘62’
and inserting ‘65’.
‘‘(2) Subsections (a), (b), (f), and (g) are re-
pealed.
‘‘§ 8483. Deferred retirement
‘‘Deem section 8413 to be amended as follows:
‘‘(1) Subsection (a) is amended by striking ‘62’
and inserting ‘65’.
‘‘(2) Subsection (b) is repealed.
727
‘‘§ 8484. References to age 62
‘‘(a) Deem section 8415 to be amended as follows:
‘‘(1) Subsection (f) is repealed.
‘‘(2) Subsection (g)(2)(B) is amended by strik-
ing ‘is at least 62 years of age and’.
‘‘(b) Deem section 8442 to be amended in subsections
(c)(2)(B) and (g)(2)(B) by striking ‘62’ each place it ap-
pears and inserting ‘65’.
‘‘(c) Deem section 8452(b)(1) to be amended by
striking ‘sixty-second’ and inserting ‘sixty-fifth’.’’.
(b) CHAPTER ANALYSIS.—The analysis for chapter
84 of title 5, United States Code, is amended by adding
at the end the following:
‘‘SPECIAL RULES FOR CERTAIN POST-1993 NEW EMPLOYEES AND MEMBERS
‘‘8481. Applicability.
‘‘8482. Immediate retirement.
‘‘8483. Deferred retirement.
‘‘8484. References to age 62.’’.
SEC. 13302. DEFERRAL UNTIL AGE 62 OF COST-OF-LIVING
ADJUSTMENTS 
FOR 
MILITARY 
RETIREES
WHO FIRST ENTERED MILITARY SERVICE ON
OR AFTER JANUARY 1, 1996.
Section 1401a(b)(1) of title 10, United States Code,
is amended by adding at the end the following new sen-
tence: ‘‘In the case of a member or former member under
age 62 (other than a member retired under chapter 61
of this title) who first became a member on or after Janu-
728
ary 1, 1996, such increase shall not become payable as
part of the retired pay of the member or former member
until the month in which the member or former member
becomes 62 years of age.’’.
SEC. 13303. PROVISION RELATING TO GOVERNMENT CON-
TRIBUTIONS TO THE THRIFT SAVINGS PLAN.
Section 8432(c)(2)(B) of title 5, United States Code,
is amended by adding at the end the following: ‘‘Clause
(ii) shall not apply with respect to any employee or Mem-
ber described in section 8481(a).’’.
Subtitle E—Assistance Program
Reforms
SEC. 13401. LOW-INCOME HOME ENERGY ASSISTANCE.
Section 2602(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended
by inserting after the first sentence the following new sen-
tence: ‘‘There are authorized to be appropriated to carry
out this title $700,000,000 for each of the fiscal years
1996 through 2000.’’.
SEC. 13402. ADDITIONAL REQUIREMENTS FOR UNEMPLOY-
MENT BENEFITS.
(a) GENERAL RULE.—Subsection (a) of section 3304
of the Internal Revenue Code of 1986 (relating to approval
of State laws) is amended by striking ‘‘and’’ at the end
of paragraph (17), by redesignating paragraph (18) as
729
paragraph (20), and by inserting after paragraph (17) the
following new paragraphs:
‘‘(18) compensation shall not be payable to any
individual for such individual’s first 2 weeks of oth-
erwise compensable unemployment during any bene-
fit year; except that this paragraph shall not apply
in the case of a benefit year which immediately fol-
lows the ending of a preceding benefit year for the
individual;
‘‘(19) compensation shall not be payable to any
individual for any benefit year if the taxable income
of such individual for such individual’s most recent
taxable year ending before the beginning of such
benefit year exceeded $120,000; and’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of
section 204(a) of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 is amended by striking
subparagraph (B) and redesignating subparagraphs (C)
and (D) as subparagraphs (B) and (C), respectively.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to benefit years beginning after Septem-
ber 30, 1995.
730
(2) SPECIAL RULE.—In the case of any State
the legislature of which has not been in session for
at least 30 calendar days (whether or not successive)
between the date of the enactment of this Act and
September 30, 1995, the amendments made by this
section shall apply to benefit years beginning after
the day 30 calendar days after the first day on
which such legislature is in session on or after Sep-
tember 30, 1995.
SEC. 13403. DENIAL OF UNEMPLOYMENT BENEFITS TO IN-
DIVIDUALS WHO VOLUNTARILY LEAVE MILI-
TARY SERVICE.
(a) GENERAL RULE.—Paragraph (1) of section
8521(a) of title 5, United States Code, is amended to read
as follows:
‘‘(1) ‘Federal service’ means active service (not
including active duty in a reserve status unless for
a continuous period of 45 days or more) in the
armed forces or the commissioned corps of the Na-
tional Oceanic and Atmospheric Administration if
with respect to that service the individual—
‘‘(A) was discharged or released under
honorable conditions,
‘‘(B) did not resign or voluntarily leave the
service, and
731
‘‘(C) was not discharged or released for
cause as defined by the Secretary of Defense;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply in the case of a discharge or
release after the date of the enactment of this Act.
SEC. 13404. INCREASE IN VARIABLE RATE PREMIUM
CHARGED BY THE PENSION BENEFIT GUAR-
ANTY CORPORATION TO SINGLE-EMPLOYER
PLANS.
(a) 
IN
GENERAL.—Clause 
(ii) 
of 
section
4006(a)(3)(E) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1306(a)(3)(E)(ii)) is amended
by striking ‘‘$9.00’’ and inserting ‘‘$18.00’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to plan years begin-
ning on or after January 1, 1997.
TITLE XIV—PERSONAL RESPON-
SIBILITY AND FAMILY PRES-
ERVATION
SEC. 14001. SHORT TITLE.
This title may be cited as the ‘‘Personal Responsibil-
ity Act of 1995’’.
SEC. 14002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE XIV—PERSONAL RESPONSIBILITY AND FAMILY
PRESERVATION
732
Sec. 14001. Short title.
Sec. 14002. Table of contents.
Subtitle A—Block Grants for Temporary Assistance for Needy Families
Sec. 14100. Sense of the Congress.
Sec. 14101. Block grants to States.
Sec. 14102. Report on data processing.
Sec. 14103. Transfers.
Sec. 14104. Conforming amendments to the Social Security Act.
Sec. 14105. Conforming amendments to other laws.
Sec. 14106. Continued application of current standards under medicaid pro-
gram.
Sec. 14107. Effective date.
Subtitle B—Child Protection Block Grant Program
Sec. 14201. Establishment of program.
Sec. 14202. Conforming amendments.
Sec. 14203. Continued application of current standards under Medicaid Pro-
gram.
Sec. 14204. Effective date.
Sec. 14205. Sense of the Congress regarding timely adoption of children.
Subtitle C—Block Grants for Child Care and for Nutrition Assistance
CHAPTER 1—CHILD CARE BLOCK GRANTS
Sec. 14301. Amendments to the Child Care and Development Block Grant Act
of 1990.
Sec. 14302. Repeal of child care assistance authorized by acts other than the
Social Security Act.
CHAPTER 2—FAMILY AND SCHOOL-BASED NUTRITION BLOCK GRANTS
SUBCHAPTER A—FAMILY NUTRITION BLOCK GRANT PROGRAM
Sec. 14321. Amendment to Child Nutrition Act of 1966.
SUBCHAPTER B—SCHOOL-BASED NUTRITION BLOCK GRANT PROGRAM
Sec. 14341. Amendment to National School Lunch Act.
SUBCHAPTER C—MISCELLANEOUS PROVISIONS
Sec. 14361. Repealers.
CHAPTER 3—OTHER REPEALERS AND CONFORMING AMENDMENTS
Sec. 14371. Amendments to laws relating to child protection block grant.
CHAPTER 4—RELATED PROVISIONS
Sec. 14381. Requirement that data relating to the incidence of poverty in the
United States be published at least every 2 years.
Sec. 14382. Data on program participation and outcomes.
CHAPTER 5—GENERAL EFFECTIVE DATE; PRESERVATION OF ACTIONS,
OBLIGATIONS, AND RIGHTS
733
Sec. 14391. Effective date.
Sec. 14392. Application of amendments and repealers.
Subtitle D—Restricting Welfare and Public Benefits for Aliens
Sec. 14400. Statements of national policy concerning welfare and immigration.
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS PROGRAMS
Sec. 14401. Ineligibility of illegal aliens for certain public benefits programs.
Sec. 14402. Ineligibility of nonimmigrants for certain public benefits programs.
Sec. 14403. Limited eligibility of immigrants for 5 specified Federal public ben-
efits programs.
Sec. 14404. Notification.
CHAPTER 2—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS
PROGRAMS
Sec. 14411. Ineligibility of illegal aliens for State and local public benefits pro-
grams.
Sec. 14412. Ineligibility of nonimmigrants for State and local public benefits
programs.
Sec. 14413. State authority to limit eligibility of immigrants for State and local
means-tested public benefits programs.
CHAPTER 3—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
Sec. 14421. Attribution of sponsor’s income and resources to family-sponsored
immigrants.
Sec. 14422. Requirements for sponsor’s affidavit of support.
CHAPTER 4—GENERAL PROVISIONS
Sec. 14431. Definitions.
Sec. 14432. Construction.
CHAPTER 5—CONFORMING AMENDMENTS
Sec. 14441. Conforming amendments relating to assisted housing.
Subtitle E—Food Stamp Reform and Commodity Distribution
Sec. 14501. Short title.
CHAPTER 1—COMMODITY DISTRIBUTION PROVISIONS
Sec. 14511. Short title.
Sec. 14512. Availability of commodities.
Sec. 14513. State, local and private supplementation of commodities.
Sec. 14514. State plan.
Sec. 14515. Allocation of commodities to States.
Sec. 14516. Priority system for State distribution of commodities.
Sec. 14517. Initial processing costs.
Sec. 14518. Assurances; anticipated use.
Sec. 14519. Authorization of appropriations.
Sec. 14520. Commodity supplemental food program.
Sec. 14521. Commodities not income.
Sec. 14522. Prohibition against certain State charges.
Sec. 14523. Definitions.
734
Sec. 14524. Regulations.
Sec. 14525. Finality of determinations.
Sec. 14526. Sale of commodities prohibited.
Sec. 14527. Settlement and adjustment of claims.
Sec. 14528. Repealers; amendments.
CHAPTER 2—CONSOLIDATING FOOD ASSISTANCE PROGRAMS
Sec. 14541. Food stamp block grant program.
Sec. 14542. Availability of Federal coupon system to States.
Sec. 14543. Definitions.
Sec. 14544. Repealer.
CHAPTER 3—EFFECTIVE DATES AND MISCELLANEOUS PROVISIONS
Sec. 14591. Effective date; application of repealer.
Sec. 14592. Sense of the Congress.
Sec. 14593. Deficit reduction.
Subtitle F—Supplemental Security Income
Sec. 14601. Denial of supplemental security income benefits by reason of dis-
ability to drug addicts and alcoholics.
Sec. 14602. Supplemental security income benefits for disabled children.
Sec. 14603. Examination of mental listings used to determine eligibility of chil-
dren for SSI benefits by reason of disability.
Sec. 14604. Limitation on payments to Puerto Rico, the Virgin Islands, and
Guam under programs of aid to the aged, blind, or disabled.
Sec. 14605. Repeal of maintenance of effort requirements applicable to optional
State programs for supplementation of SSI benefits.
Sec. 14606. Denial of SSI benefits for 10 years to individuals found to have
fraudulently misrepresented residence in order to obtain bene-
fits simultaneously in 2 or more States.
Sec. 14607. Denial of SSI benefits for fugitive felons and probation and parole
violators.
Sec. 14608. Reapplication requirements for adults receiving SSI benefits by
reason of disability.
Sec. 14609. Striking of restrictions regarding determination of ineligibility.
Sec. 14610. Narrowing of SSI eligibility on basis of mental impairments.
Subtitle G—Child Support
Sec. 14700. References.
CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
Sec. 14701. State obligation to provide child support enforcement services.
Sec. 14702. Distribution of child support collections.
Sec. 14703. Privacy safeguards.
CHAPTER 2—LOCATE AND CASE TRACKING
Sec. 14711. State case registry.
Sec. 14712. Collection and disbursement of support payments.
Sec. 14713. State directory of new hires.
Sec. 14714. Amendments concerning income withholding.
Sec. 14715. Locator information from interstate networks.
Sec. 14716. Expansion of the Federal parent locator service.
735
Sec. 14717. Collection and use of social security numbers for use in child sup-
port enforcement.
CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 14721. Adoption of uniform State laws.
Sec. 14722. Improvements to full faith and credit for child support orders.
Sec. 14723. Administrative enforcement in interstate cases.
Sec. 14724. Use of forms in interstate enforcement.
Sec. 14725. State laws providing expedited procedures.
CHAPTER 4—PATERNITY ESTABLISHMENT
Sec. 14731. State laws concerning paternity establishment.
Sec. 14732. Outreach for voluntary paternity establishment.
Sec. 14733. Cooperation by applicants for and recipients of temporary family
assistance.
CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING
Sec. 14741. Federal matching payments.
Sec. 14742. Performance-based incentives and penalties.
Sec. 14743. Federal and State reviews and audits.
Sec. 14744. Required reporting procedures.
Sec. 14745. Automated data processing requirements.
Sec. 14746. Technical assistance.
Sec. 14747. Reports and data collection by the Secretary.
CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 14751. Simplified process for review and adjustment of child support or-
ders.
Sec. 14752. Furnishing consumer reports for certain purposes relating to child
support.
CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS
Sec. 14761. Federal income tax refund offset.
Sec. 14762. Authority to collect support from Federal employees.
Sec. 14763. Enforcement of child support obligations of members of the armed
forces.
Sec. 14764. Voiding of fraudulent transfers.
Sec. 14765. Sense of the Congress that States should suspend drivers’, busi-
ness, and occupational licenses of persons owing past-due child
support.
Sec. 14766. Work requirement for persons owing past-due child support.
Sec. 14767. Definition of support order.
Sec. 14768. Liens.
Sec. 14769. State law authorizing suspension of licenses.
CHAPTER 8—MEDICAL SUPPORT
Sec. 14771. Technical correction to ERISA definition of medical child support
order.
CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-
RESIDENTIAL PARENTS
736
Sec. 14781. Grants to States for access and visitation programs.
CHAPTER 10—EFFECT OF ENACTMENT
Sec. 14791. Effective dates.
CHAPTER 11—MISCELLANEOUS PROVISIONS
Sec. 14801. Scoring.
Sec. 14802. Provisions to encourage electronic benefit transfer systems.
Subtitle A—Block Grants for Tem-
porary 
Assistance 
for 
Needy
Families
SEC. 14100. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) marriage is the foundation of a successful
society;
(2) marriage is an essential social institution
which promotes the interests of children and society
at large;
(3) the negative consequences of an out-of-wed-
lock birth on the child, the mother, and society are
well documented as follows:
(A) the illegitimacy rate among black
Americans was 26 percent in 1965, but today
the rate is 68 percent and climbing;
(B) the illegitimacy rate among white
Americans has risen tenfold, from 2.29 percent
in 1960 to 22 percent today;
(C) the total of all out-of-wedlock births
between 1970 and 1991 has risen from 10 per-
737
cent to 30 percent and if the current trend con-
tinues, 50 percent of all births by the year 2015
will be out-of-wedlock;
(D) 3⁄4 of illegitimate births among whites
are to women with a high school education or
less;
(E) the 1-parent family is 6 times more
likely to be poor than the 2-parent family;
(F) children born into families receiving
welfare assistance are 3 times more likely than
children not born into families receiving welfare
to be on welfare when they reach adulthood;
(G) teenage single parent mothering is the
single biggest contributor to low birth weight
babies;
(H) children born out-of-wedlock are more
likely to experience low verbal cognitive attain-
ment, child abuse, and neglect;
(I) young people from single parent or
stepparent families are 2 to 3 times more likely
to have emotional or behavioral problems than
those from intact families;
(J) young white women who were raised in
a single parent family are more than twice as
likely to have children out-of-wedlock and to be-
738
come parents as teenagers, and almost twice as
likely to have their marriages end in divorce, as
are children from 2-parent families;
(K) the younger the single parent mother,
the less likely she is to finish high school;
(L) young women who have children before
finishing high school are more likely to receive
welfare assistance for a longer period of time;
(M) between 1985 and 1990, the public
cost of births to teenage mothers under the aid
to families with dependent children program,
the food stamp program, and the medicaid pro-
gram has been estimated at $120,000,000,000;
(N) the absence of a father in the life of
a child has a negative effect on school perform-
ance and peer adjustment;
(O) the likelihood that a young black man
will engage in criminal activities doubles if he
is raised without a father and triples if he lives
in a neighborhood with a high concentration of
single parent families; and
(P) the greater the incidence of single par-
ent families in a neighborhood, the higher the
incidence of violent crime and burglary; and
739
(4) in light of this demonstration of the crisis
in our Nation, the reduction of out-of-wedlock births
is an important government interest and the policy
contained in provisions of this subtitle address the
crisis.
SEC. 14101. BLOCK GRANTS TO STATES.
Title IV of the Social Security Act (42 U.S.C. 601
et seq.) is amended by striking part A, except sections
403(h) and 417, and inserting the following:
‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘SEC. 401. PURPOSE.
‘‘The purpose of this part is to increase the flexibility
of States in operating a program designed to—
‘‘(1) provide assistance to needy families so that
the children in such families may be cared for in
their homes or in the homes of relatives;
‘‘(2) end the dependence of needy parents on
government benefits by promoting work and mar-
riage; and
‘‘(3) discourage out-of-wedlock births.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that, during the 3-year period immediately preceding the
740
fiscal year, has submitted to the Secretary a plan that in-
cludes the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—A written document that outlines how the
State intends to do the following:
‘‘(A) Conduct a program designed to—
‘‘(i) provide cash benefits to needy
families with children; and
‘‘(ii) provide parents of children in
such families with work experience, assist-
ance in finding employment, and other
work preparation activities and support
services that the State considers appro-
priate to enable such families to leave the
program and become self-sufficient.
‘‘(B) Require at least 1 parent of a child
in any family which has received benefits for
more than 24 months (whether or not consecu-
tive) under the program to engage in work ac-
tivities (as defined by the State).
‘‘(C) Ensure that parents receiving assist-
ance under the program engage in work activi-
ties in accordance with section 404.
741
‘‘(D) Treat interstate immigrants, if fami-
lies including such immigrants are to be treated
differently than other families.
‘‘(E) Take such reasonable steps as the
State deems necessary to restrict the use and
disclosure of information about individuals and
families receiving benefits under the program.
‘‘(F) Take actions to reduce the incidence
of out-of-wedlock pregnancies, which may in-
clude providing unmarried mothers and unmar-
ried fathers with services which will help
them—
‘‘(i) avoid subsequent pregnancies;
and
‘‘(ii) provide adequate care to their
children.
‘‘(G) Reduce teenage pregnancy, including
(at the option of the State) through the provi-
sion of education and counseling to male and
female teenagers.
‘‘(2) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
SUPPORT
ENFORCEMENT
PRO-
GRAM.—A certification by the Governor of the State
that, during the fiscal year, the State will operate a
child support enforcement program under the State
742
plan approved under part D, in a manner that com-
plies with the requirements of such part.
‘‘(3) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE A CHILD PROTECTION PROGRAM.—A cer-
tification by the Governor of the State that, during
the fiscal year, the State will operate a child protec-
tion program in accordance with part B, which in-
cludes a foster care program and an adoption assist-
ance program.
‘‘(b) DETERMINATIONS.—The Secretary shall deter-
mine whether a plan submitted pursuant to subsection (a)
contains the material required by subsection (a).
‘‘SEC. 403. PAYMENTS TO STATES.
‘‘(a) ENTITLEMENTS.—
‘‘(1) GRANTS FOR FAMILY ASSISTANCE.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary
for each of fiscal years 1996, 1997, 1998,
1999, and 2000 a grant in an amount equal to
the State family assistance grant for the fiscal
year.
‘‘(B) GRANT
INCREASED
TO
REWARD
STATES
THAT
REDUCE
OUT-OF-WEDLOCK
BIRTHS.—The amount of the grant payable to
a State under subparagraph (A) for fiscal year
743
1998 or any succeeding fiscal year shall be in-
creased by—
‘‘(i) 5 percent if the illegitimacy ratio
of the State for the fiscal year is at least
1 percentage point lower than the illegit-
imacy ratio of the State for fiscal year
1995; or
‘‘(ii) 10 percent if the illegitimacy
ratio of the State for the fiscal year is at
least 2 percentage points lower than the il-
legitimacy ratio of the State for fiscal year
1995.
‘‘(2) SUPPLEMENTAL GRANTS TO ADJUST FOR
POPULATION INCREASES.—In addition to any grant
under paragraph (1), each eligible State shall be en-
titled to receive from the Secretary for each of fiscal
years 1997, 1998, 1999, and 2000, a grant in an
amount 
equal 
to 
the 
State 
proportion 
of
$100,000,000.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) STATE FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—The term ‘State fam-
ily assistance grant’ means, with respect to a
fiscal year, the provisional State family assist-
744
ance grant adjusted in accordance with sub-
paragraph (C).
‘‘(B) PROVISIONAL STATE FAMILY ASSIST-
ANCE
GRANT.—The term ‘provisional State
family assistance grant’ means—
‘‘(i) the greater of—
‘‘(I) 1⁄3 of the total amount of ob-
ligations to the State under section
403 of this title (as in effect before
October 1, 1995) for fiscal years
1992, 1993, and 1994 (other than
with respect to amounts expended for
child care under subsection (g) or (i)
of section 402 of this title (as so in ef-
fect)); or
‘‘(II) the total amount of obliga-
tions to the State under such section
403 for fiscal year 1994 (other than
with respect to amounts expended for
child care under subsection (g) or (i)
of section 402 of this title (as so in ef-
fect)); multiplied by
‘‘(ii)(I) the total amount of outlays to
all of the States under such section 403
for fiscal year 1994 (other than with re-
745
spect to amounts expended for child care
under subsection (g) or (i) of section 402
of this title (as so in effect)); divided by
‘‘(II) the total amount of obligations
to all of the States under such section 403
for fiscal year 1994 (other than with re-
spect to amounts expended for child care
under subsection (g) or (i) of section 402
of this title (as so in effect)).
‘‘(C) PROPORTIONAL
ADJUSTMENT.—The
Secretary shall determine the percentage (if
any) by which each provisional State family as-
sistance grant must be reduced or increased to
ensure that the sum of such grants equals
$15,390,296,000, and shall adjust each provi-
sional State family assistance grant by the per-
centage so determined.
‘‘(2) ILLEGITIMACY RATIO.—The term ‘illegit-
imacy ratio’ means, with respect to a State and a
fiscal year—
‘‘(A) the sum of—
‘‘(i) the number of out-of-wedlock
births that occurred in the State during
the most recent fiscal year for which such
information is available; and
746
‘‘(ii) the amount (if any) by which the
number of abortions performed in the
State during the most recent fiscal year for
which such information is available exceeds
the number of abortions performed in the
State during the fiscal year that imme-
diately precedes such most recent fiscal
year; divided by
‘‘(B) the number of births that occurred in
the State during the most recent fiscal year for
which such information is available.
‘‘(3) STATE
PROPORTION.—The term ‘State
proportion’ means, with respect to a fiscal year, the
amount that bears the same ratio to the amount
specified in subsection (a)(2) as the increase (if any)
in the population of the State for the most recent
fiscal year for which such information is available
over the population of the State for the fiscal year
that immediately precedes such most recent fiscal
year bears to the total increase in the population of
all States which have such an increase in population,
as determined by the Secretary using data from the
Bureau of the Census.
747
‘‘(4) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(5) STATE.—The term ‘State’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.
‘‘(c) USE OF GRANT.—
‘‘(1) IN GENERAL.—A State to which a grant
is made under this section may use the grant in any
manner that is reasonably calculated to accomplish
the purpose of this part, subject to this part, includ-
ing to provide noncash assistance to mothers who
have not attained 18 years of age and their children
and to provide low income households with assist-
ance in meeting home heating and cooling costs.
Notwithstanding any other provision of this Act, a
State to which a grant is made under section 403
may not use any part of the grant to provide medi-
cal services.
‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI-
GRANTS UNDER RULES OF FORMER STATE.—A State
to which a grant is made under this section may
apply to a family the rules of the program operated
under this part of another State if the family has
748
moved to the State from the other State and has re-
sided in the State for less than 12 months.
‘‘(3) AUTHORITY TO USE PORTION OF GRANT
FOR OTHER PURPOSES.—
‘‘(A) IN GENERAL.—A State may use not
more than 30 percent of the amount of the
grant made to the State under this section for
a fiscal year to carry out a State program pur-
suant to any or all of the following provisions
of law:
‘‘(i) Part B of this title.
‘‘(ii) Title XX of this Act.
‘‘(iii) Any provision of law, enacted
into law during the 104th Congress, under
which grants are made to States for food
and nutrition.
‘‘(iv) The Child Care and Develop-
ment Block Grant Act of 1990.
‘‘(B) APPLICABLE
RULES.—Any amount
paid to the State under this part that is used
to carry out a State program pursuant to a pro-
vision of law specified in subparagraph (A)
shall not be subject to the requirements of this
part, but shall be subject to the requirements
that apply to Federal funds provided directly
749
under the provision of law to carry out the pro-
gram.
‘‘(4) 
AUTHORITY
TO
RESERVE
CERTAIN
AMOUNTS
FOR
EMERGENCY
BENEFITS.—A State
may reserve amounts paid to the State under this
section for any fiscal year for the purpose of provid-
ing emergency assistance under the State program
operated under this part.
‘‘(5) IMPLEMENTATION OF ELECTRONIC BENE-
FIT TRANSFER SYSTEM.—A State to which a grant
is made under this section is encouraged to imple-
ment an electronic benefit transfer system for pro-
viding assistance under the State program funded
under this part, and may use the grant for such pur-
pose.
‘‘(d) TIMING OF PAYMENTS.—The Secretary shall
pay each grant payable to a State under this section in
quarterly installments.
‘‘(e) PENALTIES.—
‘‘(1) FOR
USE
OF
GRANT
IN
VIOLATION
OF
THIS PART.—
‘‘(A) IN GENERAL.—If an audit conducted
pursuant to chapter 75 of title 31, United
States Code, finds that an amount paid to a
State under this section for a fiscal year has
752
this part or enforce any provision of this part, except to
the extent expressly provided in this part.
‘‘(g) FEDERAL RAINY DAY FUND.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a revolv-
ing loan fund which shall be known as the ‘Federal
Rainy Day Fund’.
‘‘(2) DEPOSITS INTO FUND.—
‘‘(A) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, $1,000,000,000 are hereby
appropriated for fiscal year 1996 for payment
to the Federal Rainy Day Fund.
‘‘(B) LOAN REPAYMENTS.—The Secretary
shall deposit into the fund any principal or in-
terest payment received with respect to a loan
made under this subsection.
‘‘(3) AVAILABILITY.—Amounts in the fund are
authorized to remain available without fiscal year
limitation for the purpose of making loans and re-
ceiving payments of principal and interest on such
loans, in accordance with this subsection.
‘‘(4) USE OF FUND.—
‘‘(A) LOANS TO QUALIFIED STATES.—
753
‘‘(i) IN
GENERAL.—The Secretary
shall make loans from the fund to any
qualified State for a period to maturity of
not more than 3 years.
‘‘(ii) RATE OF INTEREST.—The Sec-
retary shall charge and collect interest on
any loan made under clause (i) at a rate
equal to the current average market yield
on outstanding marketable obligations of
the United States with remaining periods
to maturity comparable to the period to
maturity of the loan.
‘‘(iii) MAXIMUM LOAN.—The amount
of any loan made to a State under clause
(i) during a fiscal year shall not exceed the
lesser of—
‘‘(I) 50 percent of the amount of
the grant payable to the State under
this section for the fiscal year; or
‘‘(II) $100,000,000.
‘‘(B) QUALIFIED
STATE
DEFINED.—A
State is a qualified State for purposes of sub-
paragraph (A) if the unemployment rate of the
State (as determined by the Bureau of Labor
754
Statistics) for the most recent 3-month period
for which such information is available is—
‘‘(i) more than 6.5 percent; and
‘‘(ii) at least 110 percent of such rate
for the corresponding 3-month period in ei-
ther of the 2 immediately preceding cal-
endar years.
‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—
‘‘(1) REQUIREMENT APPLICABLE TO ALL FAMI-
LIES RECEIVING ASSISTANCE.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 for a fiscal
year shall achieve the minimum participation
rate specified in the following table for the fis-
cal year with respect to all families receiving as-
sistance under the State program funded under
this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................
1997 ...............................................................
1998 ...............................................................
1999 ...............................................................
2000 ...............................................................
2001 ...............................................................
2002 ...............................................................
2003 or thereafter .........................................
50.
‘‘(B) PRO RATA REDUCTION OF PARTICIPA-
TION
RATE
DUE
TO
CASELOAD
REDUCTIONS
755
NOT REQUIRED BY FEDERAL LAW.—The mini-
mum participation rate otherwise required by
subparagraph (A) for a fiscal year shall be re-
duced by a percentage equal to the percentage
(if any) by which the number of families receiv-
ing assistance during the fiscal year under the
State program funded under this part is less
than the number of families that received aid
under the State plan approved under part A of
this title (as in effect before October 1, 1995)
during the fiscal year immediately preceding
such effective date, except to the extent that the
Secretary determines that the reduction in the
number of families receiving such assistance is
required by Federal law.
‘‘(C) PARTICIPATION RATE.—For purposes
of this paragraph:
‘‘(i) AVERAGE MONTHLY RATE.—The
participation rate of a State for a fiscal
year is the average of the participation
rates of the State for each month in the
fiscal year.
‘‘(ii) 
MONTHLY
PARTICIPATION
RATES.—The participation rate of a State
for a month is—
756
‘‘(I) the number of families re-
ceiving cash assistance under the
State program funded under this part
which include an individual who is en-
gaged in work activities for the
month; divided by
‘‘(II) the total number of families
receiving cash assistance under the
State program funded under this part
during the month which include an in-
dividual who has attained 18 years of
age.
‘‘(iii) ENGAGED.—A recipient is en-
gaged in work activities for a month in a
fiscal year if the recipient is making
progress in such activities for at least the
minimum average number of hours per
week specified in the following table during
the month, not fewer than 20 hours per
week of which are attributable to an activ-
ity described in subparagraph (A), (B),
(C), or (D) of subsection (b)(1) (or, in the
case of the first 4 weeks for which the re-
cipient is required under this section to
757
participate in work activities, an activity
described in subsection (b)(1)(E)):
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1996 .....................................................
1997 .....................................................
1998 .....................................................
1999 .....................................................
2000 .....................................................
2001 .....................................................
2002 .....................................................
2003 or thereafter ................................
35.
‘‘(2) REQUIREMENT APPLICABLE TO 2-PARENT
FAMILIES.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 for a fiscal
year shall achieve the minimum participation
rate specified in the following table for the fis-
cal year with respect to 2-parent families receiv-
ing assistance under the State program funded
under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ...............................................................
1997 ...............................................................
1998 or thereafter .........................................
90.
‘‘(B) PARTICIPATION RATE.—For purposes
of this paragraph:
‘‘(i) AVERAGE MONTHLY RATE.—The
participation rate of a State for a fiscal
year is the average of the participation
758
rates of the State for each month in the
fiscal year.
‘‘(ii) 
MONTHLY
PARTICIPATION
RATES.—The participation rate of a State
for a month is—
‘‘(I) the number of 2-parent fam-
ilies receiving cash assistance under
the State program funded under this
part which include at least 1 adult
who is engaged in work activities for
the month; divided by
‘‘(II) the total number of 2-par-
ent families receiving cash assistance
under the State program funded
under this part during the month.
‘‘(iii) ENGAGED.—An adult is engaged
in work activities for a month in a fiscal
year if the adult is making progress in
such activities for at least 35 hours per
week during the month, not fewer than 30
hours per week of which are attributable to
an activity described in subparagraph (A),
(B), (C), or (D) of subsection (b)(1) (or, in
the case of the first 4 weeks for which the
recipient is required under this section to
759
participate in work activities, an activity
described in subsection (b)(1)(E)).
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) WORK ACTIVITIES.—The term ‘work ac-
tivities’ means—
‘‘(A) unsubsidized employment;
‘‘(B) subsidized private sector employment;
‘‘(C) subsidized public sector employment
or work experience (including work associated
with the refurbishing of publicly assisted hous-
ing) only if sufficient private sector employment
is not available;
‘‘(D) on-the-job training;
‘‘(E) job search and job readiness assist-
ance;
‘‘(F) education directly related to employ-
ment, in the case of a recipient who has not at-
tained 20 years of age, and has not received a
high school diploma or a certificate of high
school equivalency;
‘‘(G) job skills training directly related to
employment; or
‘‘(H) at the option of the State, satisfac-
tory attendance at secondary school, in the case
of a recipient who—
760
‘‘(i) has not completed secondary
school; and
‘‘(ii) is a dependent child, or a head of
household who has not attained 20 years
of age.
‘‘(2) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(c) PENALTIES.—
‘‘(1) AGAINST INDIVIDUALS.—
‘‘(A) APPLICABLE TO ALL FAMILIES.—A
State to which a grant is made under section
403 shall ensure that the amount of cash as-
sistance paid under the State program funded
under this part to a recipient of assistance
under the program who refuses to engage (with-
in the meaning of subsection (a)(1)(C)(iii)) in
work activities required under this section shall
be less than the amount of cash assistance that
would otherwise be paid to the recipient under
the program, subject to such good cause and
other exceptions as the State may establish.
‘‘(B) APPLICABLE
TO
2-PARENT
FAMI-
LIES.—A State to which a grant is made under
section 403 shall reduce the amount of cash as-
761
sistance otherwise payable to a 2-parent family
for a month under the State program funded
under this part with respect to an adult in the
family who is not engaged (within the meaning
of subsection (a)(2)(B)(iii)) in work activities
for at least 35 hours per week during the
month, pro rata (or more, at the option of the
State) with respect to any period during the
month for which the adult is not so engaged.
‘‘(C) LIMITATION ON FEDERAL AUTHOR-
ITY.—No officer or employee of the Federal
Government may regulate the conduct of States
under this paragraph or enforce this paragraph
against any State.
‘‘(2) AGAINST STATES.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State to which a grant is made
under section 403 for a fiscal year has failed to
comply with subsection (a) for the fiscal year,
the Secretary shall reduce by not more than 5
percent the amount of the grant that would (in
the absence of this paragraph and subsections
(a)(1)(B) and (e) of section 403) be payable to
the State under section 403(a)(1)(A) for the
immediately succeeding fiscal year.
762
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) based on the de-
gree of noncompliance.
‘‘(d) RULE OF INTERPRETATION.—This section shall
not be construed to prohibit a State from offering recipi-
ents of assistance under the State program funded under
this part an opportunity to participate in an education or
training program, consistent with the requirements of this
section.
‘‘(e) RESEARCH.—The Secretary shall conduct re-
search on the costs and benefits of State activities under
this section.
‘‘(f) EVALUATION OF INNOVATIVE APPROACHES TO
EMPLOYING
RECIPIENTS
OF
ASSISTANCE.—The Sec-
retary shall evaluate innovative approaches to employing
recipients of assistance under State programs funded
under this part.
‘‘(g) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL RANKING OF STATES.—The Sec-
retary shall rank the States to which grants are paid
under section 403 in the order of their success in
moving recipients of assistance under the State pro-
763
gram funded under this part into long-term private
sector jobs.
‘‘(2) ANNUAL
REVIEW
OF
MOST
AND
LEAST
SUCCESSFUL WORK PROGRAMS.—The Secretary shall
review the programs of the 3 States most recently
ranked highest under paragraph (1) and the 3
States most recently ranked lowest under paragraph
(1) that provide parents with work experience, as-
sistance in finding employment, and other work
preparation activities and support services to enable
the families of such parents to leave the program
and become self-sufficient.
‘‘(h) SENSE OF THE CONGRESS.—In complying with
this section, each State that operates a program funded
under this part is encouraged to assign the highest prior-
ity to requiring families that include older preschool or
school-age children to be engaged in work activities.
‘‘(i) SENSE
OF
THE
CONGRESS
THAT
STATES
SHOULD
IMPOSE
CERTAIN
REQUIREMENTS
ON
NONCUSTODIAL, NONSUPPORTING MINOR PARENTS.—It
is the sense of the Congress that the States should require
noncustodial, nonsupporting parents who have not at-
tained 18 years of age to fulfill community work obliga-
tions and attend appropriate parenting or money manage-
ment classes after school.
764
‘‘SEC. 405. PROHIBITIONS.
‘‘(a) IN GENERAL.—
‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A
MINOR CHILD.—A State to which a grant is made
under section 403 may not use any part of the grant
to provide assistance to a family, unless the family
includes a minor child.
‘‘(2) CERTAIN
PAYMENTS
NOT
TO
BE
DIS-
REGARDED IN DETERMINING THE AMOUNT OF AS-
SISTANCE TO BE PROVIDED TO A FAMILY.—
‘‘(A) INCOME SECURITY PAYMENTS.—If a
State to which a grant is made under section
403 uses any part of the grant to provide as-
sistance for any individual who is receiving a
payment under a State plan for old-age assist-
ance approved under section 2, a State program
funded under part B that provides cash pay-
ments for foster care, or the supplemental secu-
rity income program under title XVI (other
than service benefits provided through the use
of a grant made under part C of such title),
then the State may not disregard the payment
in determining the amount of assistance to be
provided to the family of which the individual is
a member under the State program funded
under this part.
765
‘‘(B) CERTAIN
SUPPORT
PAYMENTS.—A
State to which a grant is made under section
403 may not disregard an amount distributed
to a family under section 457(a)(1)(A) in deter-
mining the income of the family for purposes of
eligibility for assistance under the State pro-
gram funded under this part.
‘‘(3) NO ASSISTANCE FOR CERTAIN ALIENS.—
Notwithstanding section 403(c)(1), a State to which
a grant is made under section 403 may not use any
part of the grant to provide assistance for an indi-
vidual who is not a citizen or national of the United
States, except consistent with subtitle D of the Per-
sonal Responsibility Act of 1995.
‘‘(4) NO
ASSISTANCE
FOR
OUT-OF-WEDLOCK
BIRTHS TO MINORS.—
‘‘(A) GENERAL RULE.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for a child born out-of-wedlock to an individual
who has not attained 18 years of age, or for the
individual, until the individual attains such age.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
766
to a child who is born as a result of rape or in-
cest.
‘‘(C) STATE OPTION.—Nothing in subpara-
graph (A) shall be construed to prohibit a State
from using funds provided by section 403 from
providing aid in the form of vouchers that may
be used only to pay for particular goods and
services specified by the State as suitable for
the care of the child such as diapers, clothing,
and school supplies.
‘‘(5) NO
ADDITIONAL
CASH
ASSISTANCE
FOR
CHILDREN BORN TO FAMILIES RECEIVING ASSIST-
ANCE.—
‘‘(A) GENERAL RULE.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for a minor child who is born to—
‘‘(i) a recipient of benefits under the
program operated under this part; or
‘‘(ii) a person who received such bene-
fits at any time during the 10-month pe-
riod ending with the birth of the child.
‘‘(B) EXCEPTION
FOR
VOUCHERS.—Sub-
paragraph (A) shall not apply to vouchers
which are provided in lieu of cash benefits and
767
which may be used only to pay for particular
goods and services specified by the State as
suitable for the care of the child involved.
‘‘(C) EXCEPTION FOR RAPE OR INCEST.—
Subparagraph (A) shall not apply with respect
to a child who is born as a result of rape or in-
cest.
‘‘(6) NO
ASSISTANCE
FOR
MORE
THAN
YEARS.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide cash benefits
for the family of an individual who, after at-
taining 18 years of age, has received benefits
under the program operated under this part for
60 months (whether or not consecutive) after
the effective date of this part, except as pro-
vided under subparagraph (B).
‘‘(B) HARDSHIP EXCEPTION.—
‘‘(i) IN GENERAL.—The State may ex-
empt a family from the application of sub-
paragraph (A) by reason of hardship.
‘‘(ii) LIMITATION.—The number of
families with respect to which an exemp-
tion made by a State under clause (i) is in
768
effect shall not exceed 10 percent of the
number of families to which the State is
providing assistance under the program op-
erated under this part.
‘‘(7) NO ASSISTANCE FOR FAMILIES NOT CO-
OPERATING
IN
PATERNITY
ESTABLISHMENT
OR
CHILD
SUPPORT.—Notwithstanding 
section
403(c)(1), a State to which a grant is made under
section 403 may not use any part of the grant to
provide assistance to a family that includes an indi-
vidual whom the agency responsible for administer-
ing the State plan approved under part D deter-
mines is not cooperating with the State in establish-
ing the paternity of any child of the individual, or
in establishing, modifying, or enforcing a support
order with respect to such a child.
‘‘(8) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
SUPPORT
RIGHTS
TO
THE
STATE.—Not-
withstanding section 403(c)(1), a State to which a
grant is made under section 403 may not use any
part of the grant to provide assistance to a family
that includes an individual who has not assigned to
the State any rights the individual may have (on be-
half of the individual or of any other person for
whom the individual has applied for or is receiving
769
such assistance) to support from any other person
for any period for which the individual receives such
assistance.
‘‘(9) WITHHOLDING
OF
PORTION
OF
ASSIST-
ANCE
FOR
FAMILIES
WHICH
INCLUDE
A
CHILD
WHOSE PATERNITY IS NOT ESTABLISHED.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not fail
to—
‘‘(i) withhold assistance under the
State program funded under this part from
a family which includes a child whose pa-
ternity is not established, in an amount
equal to $50 or 15 percent of the amount
of the amount of the assistance that would
(in the absence of this paragraph) be pro-
vided to the family with respect to the
child, whichever the State elects; or
‘‘(ii) provide to the family the total
amount of assistance so withheld once the
paternity of the child is established, if the
family is then eligible for such assistance.
‘‘(B) EXCEPTION FOR RAPE OR INCEST.—Sub-
paragraph (A) shall not apply with respect to a child
who is born as a result of rape or incest.
770
‘‘(10) DENIAL OF ASSISTANCE FOR 10 YEARS
TO A PERSON FOUND TO HAVE FRAUDULENTLY MIS-
REPRESENTED
RESIDENCE
IN
ORDER
TO
OBTAIN
BENEFITS IN 2 OR MORE STATES.—An individual
shall not be considered an eligible individual for the
purposes of this title during the 10-year period that
begins with the date the individual is found by a
State to have made, or is convicted in Federal or
State court of having made a fraudulent statement
or representation with respect to the place of resi-
dence of the person in order to receive benefits or
services simultaneously from 2 or more States under
programs that are funded under this part, title XIX,
the consolidated program of food assistance under
chapter 2 of subtitle E of title XIV of the Personal
Responsibility Act of 1995, or the Food Stamp Act
of 1977 (as in effect before the effective date of such
chapter), or benefits in 2 or more States under the
supplemental security income program under title
XVI.
‘‘(11) DENIAL OF ASSISTANCE FOR FUGITIVE
FELONS
AND
PROBATION
AND
PAROLE
VIOLA-
TORS.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
771
any part of the grant to provide assistance to
any individual who is—
‘‘(i) fleeing to avoid prosecution, or
custody or confinement after conviction,
under the laws of the place from which the
individual flees, for a crime, or an attempt
to commit a crime, which is a felony under
the laws of the place from which the indi-
vidual flees, or which, in the case of the
State of New Jersey, is a high mis-
demeanor under the laws of such State; or
‘‘(ii) violating a condition of probation
or parole imposed under Federal or State
law.
‘‘(B) EXCHANGE OF INFORMATION WITH
LAW ENFORCEMENT AGENCIES.—If a State to
which a grant is made under section 403 estab-
lishes safeguards against the use or disclosure
of information about applicants or recipients of
assistance under the State program funded
under this part, the safeguards shall not pre-
vent the State agency administering the pro-
gram from furnishing a Federal, State, or local
law enforcement officer, upon the request of the
officer, with the current address of any recipi-
772
ent if the officer furnishes the agency with the
name of the recipient and notifies the agency
that—
(i) such recipient—
(I) is fleeing to avoid prosecution,
or custody or confinement after con-
viction, under the laws of the place
from which the recipient flees, for a
crime, or an attempt to commit a
crime, which is a felony under the
laws of the place from which the re-
cipient flees, or which, in the case of
the State of New Jersey, is a high
misdemeanor under the laws of such
State;
(II) is violating a condition of
probation or parole imposed under
Federal or State law; or
(III) has information that is nec-
essary for the officer to conduct the
official duties of the officer; and
(ii) the location or apprehension of the
recipient is within such official duties.
773
‘‘(12) DENIAL
OF
ASSISTANCE
FOR
MINOR
CHILDREN WHO ARE ABSENT FROM THE HOME FOR
A SIGNIFICANT PERIOD.—
‘‘(A) IN GENERAL.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide assistance for
a minor child who has been, or is expected by
a parent (or other caretaker relative) of the
child to be, absent from the home for a period
of 45 consecutive days or, at the option of the
State, such period of not less than 30 and not
more than 90 consecutive days as the State
may provide for in the State plan submitted
pursuant to section 402.
‘‘(B) STATE
AUTHORITY
TO
ESTABLISH
GOOD CAUSE EXCEPTIONS.—The State may es-
tablish such good cause exceptions to subpara-
graph (A) as the State considers appropriate if
such exceptions are provided for in the State
plan submitted pursuant to section 402.
‘‘(C) DENIAL
OF
ASSISTANCE
FOR
REL-
ATIVE WHO FAILS TO NOTIFY STATE AGENCY
OF ABSENCE OF CHILD.—A State to which a
grant is made under section 403 may not use
any part of the grant to provide assistance for
774
an individual who is a parent (or other care-
taker relative) of a minor child and who fails to
notify the agency administering the State pro-
gram funded under this part, of the absence of
the minor child from the home for the period
specified in or provided for under subparagraph
(A), by the end of the 5-day period that begins
with the date that it becomes clear to the par-
ent (or relative) that the minor child will be ab-
sent for such period so specified or provided
for.
‘‘(b) MINOR CHILD DEFINED.—As used in sub-
section (a), the term ‘minor child’ means an individual—
‘‘(1) who has not attained 18 years of age; or
‘‘(2) who—
‘‘(A) has not attained 19 years of age; and
‘‘(B) is a full-time student in a secondary
school (or in the equivalent level of vocational
or technical training).
‘‘SEC. 406. DATA COLLECTION AND REPORTING.
‘‘(a) IN GENERAL.—Each State to which a grant is
made under section 403 for a fiscal year shall, not later
than 6 months after the end of the fiscal year, transmit
to the Secretary the following aggregate information on
families to which assistance was provided during the fiscal
775
year under the State program operated under this part
or an equivalent State program:
‘‘(1) The number of adults receiving such as-
sistance.
‘‘(2) The number of children receiving such as-
sistance and the average age of the children.
‘‘(3) The employment status of such adults, and
the average earnings of employed adults receiving
such assistance.
‘‘(4) The number of 1-parent families in which
the parent is a widow or widower, is divorced, is sep-
arated, or has never married.
‘‘(5) The age, race, and educational attainment
of the adults receiving such assistance.
‘‘(6) The average assistance provided to the
families under the program.
‘‘(7) Whether, at the time of application for as-
sistance under the program, the families or any
member of the families receives benefits under any
of the following:
‘‘(A) Any housing program.
‘‘(B) The consolidated program of food as-
sistance under chapter 2 of subtitle E of title
XIV of the Personal Responsibility Act of 1995.
776
‘‘(C) The Head Start programs carried out
under the Head Start Act.
‘‘(D) Any job training program.
‘‘(8) The number of months, since the most re-
cent application for assistance under the program,
for which such assistance has been provided to the
families.
‘‘(9) The total number of months for which as-
sistance has been provided to the families under the
program.
‘‘(10) Any other data necessary to indicate
whether the State is in compliance with the plan
most recently submitted by the State pursuant to
section 402.
‘‘(11) The components of any program carried
out by the State to provide employment and training
activities in order to comply with section 404, and
the average monthly number of adults in each such
component.
‘‘(12) The number of part-time job placements
and the number of full-time job placements made
through the program referred to in paragraph (11),
the number of cases with reduced assistance, and
the number of cases closed due to employment.
777
‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—
A State may comply with the requirement to provide pre-
cise numerical information described in subsection (a) by
submitting an estimate which is obtained through the use
of scientifically acceptable sampling methods.
‘‘(c) REPORT
ON USE
OF FEDERAL FUNDS
TO
COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The
report required by subsection (a) for a fiscal year shall
include a statement of the percentage of the funds paid
to the State under this part for the fiscal year that are
used to cover administrative costs or overhead.
‘‘(d) REPORT ON STATE EXPENDITURES ON PRO-
GRAMS FOR NEEDY FAMILIES.—The report required by
subsection (a) for a fiscal year shall include a statement
of the total amount expended by the State during the fis-
cal year on programs for needy families.
‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI-
PATING IN WORK ACTIVITIES.—The report required by
subsection (a) for a fiscal year shall include the number
of noncustodial parents in the State who participated in
work activities (as defined in section 404(b)(1)) during the
fiscal year.
778
‘‘SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary may conduct re-
search on the effects, costs, and benefits of State pro-
grams funded under this part.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA-
TIVE APPROACHES
TO EMPLOYING WELFARE RECIPI-
ENTS.—The Secretary may assist States in developing,
and shall evaluate, innovative approaches to employing re-
cipients of cash assistance under programs funded under
this part. In performing such evaluations, the Secretary
shall, to the maximum extent feasible, use random assign-
ment to experimental and control groups.
‘‘(c) STUDIES OF WELFARE CASELOADS.—The Sec-
retary may conduct studies of the caseloads of States oper-
ating programs funded under this part.
‘‘(d) DISSEMINATION OF INFORMATION.—The Sec-
retary shall develop innovative methods of disseminating
information on any research, evaluations, and studies con-
ducted under this section, including the facilitation of the
sharing of information and best practices among States
and localities through the use of computers and other
technologies.
‘‘SEC. 408. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall
expand the Survey of Income and Program Participation
779
as necessary to obtain such information as will enable in-
terested persons to evaluate the impact of the amendments
made by subtitle A of the Personal Responsibility Act of
1995 on a random national sample of recipients of assist-
ance under State programs funded under this part and
(as appropriate) other low income families, and in doing
so, shall pay particular attention to the issues of out-of-
wedlock birth, welfare dependency, the beginning and end
of welfare spells, and the causes of repeat welfare spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
the Secretary of the Treasury shall pay to the Bureau of
the Census $10,000,000 for each of fiscal years 1996,
1997, 1998, 1999, and 2000 to carry out subsection (a).’’.
SEC. 14102. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date
of the enactment of this Act, the Secretary of Health and
Human Services shall prepare and submit to the Congress
a report on—
(1) the status of the automated data processing
systems operated by the States to assist manage-
ment in the administration of State programs under
part A of title IV of the Social Security Act (wheth-
er in effect before or after October 1, 1995); and
780
(2) what would be required to establish a sys-
tem capable of—
(A) tracking participants in public pro-
grams over time; and
(B) checking case records of the States to
determine whether individuals are participating
in public programs of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by
subsection (a) should include—
(1) a plan for building on the automated data
processing systems of the States to establish a sys-
tem with the capabilities described in subsection
(a)(2); and
(2) an estimate of the amount of time required
to establish such a system and of the cost of estab-
lishing such a system.
SEC. 14103. TRANSFERS.
(a) CHILD SUPPORT REVIEW PENALTIES.—
(1) TRANSFER OF PROVISION.—Section 403 of
the Social Security Act, as added by the amendment
made by section 14101 of this Act, is amended by
adding at the end subsection (h) of section 403, as
in effect immediately before the effective date of this
subtitle.
781
(2) 
CONFORMING
AMENDMENT.—Section
403(h)(3) of such Act, as in effect pursuant to para-
graph (1) of this subsection, is amended by striking
‘‘, section 402(a)(27),’’.
(b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—
(1) REDESIGNATION
OF
PROVISION.—Section
417 of such Act (42 U.S.C. 617), as in effect imme-
diately before the effective date of this subtitle, is
amended by striking the following:
‘‘ASSISTANT SECRETARY FOR FAMILY SUPPORT
‘‘SEC. 417.’’
and inserting the following:
‘‘SEC. 409. ASSISTANT SECRETARY FOR FAMILY SUPPORT.’’.
(2) TRANSFER OF PROVISION.—Part A of title
IV of such Act, as added by the amendment made
by section 14101 of this Act, is amended by adding
at the end the section amended by paragraph (1) of
this subsection.
(3) CONFORMING
AMENDMENT.—Section 409
of such Act, as added by paragraph (2) of this sub-
section is amended by striking ‘‘, part D, and part
F’’ and inserting ‘‘and part D’’.
SEC. 14104. CONFORMING AMENDMENTS TO THE SOCIAL
SECURITY ACT.
(a) AMENDMENTS TO TITLE II.—
782
(1) Section 205(c)(2)(C)(vi) of the Social Secu-
rity Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesig-
nated by section 321(a)(9)(B) of the Social Security
Independence and Program Improvements Act of
1994, is amended—
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) of such Act (42 U.S.C.
428(d)(1)) is amended by inserting ‘‘under a State
program funded under’’ before ‘‘part A of title IV’’.
(b) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 of such Act (42 U.S.C. 651) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(2) Section 452(a)(10)(C) of such Act (42
U.S.C. 652(a)(10)(C)) is amended—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance
under a State program funded under part A’’;
and
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
783
(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’.
(3) Section 452(a)(10)(F) of such Act (42
U.S.C. 652(a)(10)(F)) is amended—
(A) by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State
program funded’’; and
(B) by striking ‘‘in accordance with the
standards 
referred 
to 
in 
section
402(a)(26)(B)(ii)’’ 
and 
inserting 
‘‘by 
the
State’’.
(4) Section 452(b) of such Act (42 U.S.C.
652(b)) is amended in the last sentence by striking
‘‘plan approved under part A’’ and inserting ‘‘pro-
gram funded under part A’’.
(5) Section 452(d)(3)(B)(i) of such Act (42
U.S.C. 652(d)(3)(B)(i)) is amended by striking
‘‘1115(c)’’ and inserting ‘‘1115(b)’’.
(6) Section 452(g)(2)(A)(ii)(I) of such Act (42
U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking
‘‘aid is being paid under the State’s plan approved’’
and inserting ‘‘assistance is being provided under
the State program funded under’’.
(7) Section 452(g)(2)(A) of such Act (42
U.S.C. 652(g)(2)(A)) is amended in the matter fol-
784
lowing clause (iii) by striking ‘‘aid was being paid
under the State’s plan approved’’ and inserting ‘‘as-
sistance was being provided under the State pro-
gram funded’’.
(8) Section 452(g)(2) of such Act (42 U.S.C.
652(g)(2)) is amended in the matter following sub-
paragraph (B)—
(A) by striking ‘‘who is a dependent child
by reason of the death of a parent’’ and insert-
ing ‘‘with respect to whom assistance is being
provided under the State program funded under
part A’’; and
(B) by inserting ‘‘by the State agency ad-
ministering the State plan approved under this
part’’ after ‘‘found’’;
(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 405(a)(8)’’;
and
(D) by striking ‘‘administering the plan
under part E determines (as provided in section
454(4)(B))’’ and inserting ‘‘determines’’.
(9) Section 452(h) of such Act (42 U.S.C.
652(h)) is amended by striking ‘‘under section
402(a)(26)’’ and inserting ‘‘pursuant to section
405(a)(8)’’.