(41) The programs under title III of the Older
Americans Act of 1965.
(42) The programs carried out under part B of
title II of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5011–5012).
(43) The programs carried out under part C of
title II of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5013).
(44) The program under the Low-Income En-
ergy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.).
(45) The weatherization assistance program
under title IV of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6851).
(46) The program of block grants to States for
social services under title XX of the Social Security
Act.
(47) The programs carried out under the Com-
munity Services Block Grant Act (42 U.S.C. 9901
et seq.).
(48) The program of legal assistance to eligible
clients and other programs under the Legal Services
Corporation Act (42 U.S.C. 2996 et seq.).
(49) The program for emergency food and shel-
ter grants under title III of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11331 et
seq.).
(50) The programs carried out under the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
(51) A State program for providing child care
under section 402(i) of the Social Security Act.
(52) The program of State legalization impact-
assistance grants (SLIAG) under section 204 of the
Immigration Reform and Control Act of 1986.
(e) NOTIFICATION.—Each Federal agency that ad-
ministers a program referred to in subsection (d) shall,
directly or through the States, post information and pro-
vide general notification to the public and program recipi-
ents of the changes regardingly eligibility for any such
program pursuant to this section.
SEC. 402. STATE AFDC AGENCIES REQUIRED TO PROVIDE
INFORMATION ON ILLEGAL ALIENS TO THE
IMMIGRATION AND NATURALIZATION SERV-
ICE.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by title I of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(48);
(2) by striking the period at the end of para-
graph (49) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (49) the fol-
lowing:
‘‘(50) require the State agency to provide to the
Immigration and Naturalization Service the name,
address, and other identifying information that the
agency has with respect to any individual unlawfully
in the United States any of whose children is a citi-
zen of the United States.’’.
TITLE V—CONSOLIDATING FOOD
ASSISTANCE PROGRAMS
SEC. 501. FOOD ASSISTANCE BLOCK GRANT PROGRAM.
(a) AUTHORITY TO MAKE BLOCK GRANTS.—The
Secretary of Agriculture shall make grants in accordance
with this section to States to provide food assistance to
individuals who are economically disadvantaged and to in-
dividuals who are members of economically disadvantaged
families.
(b) DISTRIBUTION OF FUNDS.—
(1) ALLOTMENTS TO STATES.—Subject to para-
graph (2), the funds appropriated to carry out this
section for any fiscal year shall be allotted among
the States as follows:
(A) Of the aggregate amount to be distrib-
uted under this section, .21 percent shall be re-
served for grants to Guam, the Virgin Islands
of the United States, American Samoa, the
Commonwealth of the Northern Mariana Is-
lands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and Palau.
(B) Of the aggregate amount to be distrib-
uted under this section, .24 percent shall be re-
served for grants to tribal organizations that
have governmental jurisdiction over geographi-
cally defined areas and shall be allocated equi-
tably by the Secretary among such organiza-
tions.
(C) The remainder of such aggregate
amount shall be allocated among the remaining
States. The amount allocated to each of the re-
maining States shall bear the same proportion
to such remainder as the number of resident in-
dividuals in such State who are economically
disadvantaged separately or as members of eco-
nomically disadvantaged families bears to the
aggregate number of resident individuals in all
such remaining States who are economically
disadvantaged separately or as members of eco-
nomically disadvantaged families.
(2) LIMITATION.—After September 30, 1996,
the aggregate amount allotted under paragraph (1)
for any fiscal year shall not exceed the aggregate
amount allotted under paragraph (1) for the then
preceding fiscal year adjusted by the Secretary to re-
flect—
(A) the percentage change in population
during the 1-year period ending June 30 of
such preceding fiscal year, determined on the
basis of the most current information available
in the Current Population Reports, P25 series
(as adjusted to include overseas members of the
armed forces of the United States), published
by the Bureau of the Census, and
(B) the percentage change in the food at
home component of the Consumer Price Index
For All Urban Consumers for the 1-year period
ending May 31 of such preceding fiscal year.
(c) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi-
ble to receive a grant in the amount allotted to a State
for a fiscal year, such State shall submit to the Secretary
an application in such form, and containing such informa-
tion and assurances, as the Secretary may require by rule,
including—
(1) an assurance that such grant will be ex-
pended by the State to provide food assistance to
resident individuals in such State who are economi-
cally disadvantaged separately or as members of eco-
nomically disadvantaged families,
(2) an assurance that not more than 5 percent
of such grant will be expended by the State for ad-
ministrative costs incurred to provide assistance
under this section,
(3) an assurance that not less than 12 percent
of each grant received from funds allotted for fiscal
years 1996 through 2000 will be expended to pro-
vide food assistance and nutrition education to preg-
nant women, postpartum women, breastfeeding
women, infants, and young children,
(4) an assurance that not less than 20 percent
of each grant received from funds allotted for fiscal
years 1996 through 2000 will be expended to pro-
vide—
(A) nonprofit school breakfast programs
for students from economically disadvantaged
families,
(B) milk in nonprofit schools and in non-
profit nursery schools, child care centers, settle-
ment houses, summer camps, and similar insti-
tutions devoted to the care and training of chil-
dren, to children from economically disadvan-
taged families,
(C) nonprofit school lunch programs for
students from economically disadvantaged fami-
lies,
(D) expanded food service programs in in-
stitutions providing child care for children from
economically disadvantaged families, and
(E) summer food service programs carried
out by nonprofit food authorities, local govern-
ments, nonprofit higher education institutions
participating in the National Youth Sports Pro-
gram, and residential nonprofit summer camps,
to provide meals to children from economically
disadvantaged families; and
(5) an assurance that the amount of food as-
sistance that will be provided to any nonexempt indi-
vidual who is otherwise eligible to receive such as-
sistance will be reduced proportionally to reflect the
extent to which the individual has not performed 32
hours of work on behalf of a State or a political sub-
division of a State, through a program established
by the State or political subdivision, during the
month preceding the month for which such assist-
ance is provided.
(d) AUTHORITY TO REDUCE CERTAIN GRANTS RE-
QUIREMENTS.—At the request of a State for a particular
fiscal year, the Secretary may reduce a percentage require-
ment specified in paragraph (3) or (4) of subsection (c)
if the Secretary determines that the purpose described in
such paragraph will be adequately carried out by such
State without expending the full amount of funds required
by such paragraph.
(e) LIMITATION.—No State or political subdivision of
a State that receives funds provided under this title shall
replace any employed worker with an individual who is
participating in a program described in subsection (c)(5)
for the purpose of complying with such subsection. Such
an individual may be placed in any position offered by the
State or political subdivision that—
(A) is a new position,
(B) is a position that became available in the
normal course of conducting the business of the
State or political subdivision,
(C) involves performing work that would other-
wise be performed on an overtime basis by a worker
who is not an individual participating in such pro-
gram, or
(D) that is a position which became available by
shifting a current employee to an alternate position.
(f) 
AUTHORIZATION
OF
APPROPRIATIONS.—(1)
There are authorized to be appropriated to carry out this
section $35,600,000,000 for fiscal year 1996 and such
sums as may be necessary for fiscal years 1997, 1998,
1999, and 2000.
(2) For the purpose of affording adequate notice of
funding available under this section, an appropriation to
carry out this section is authorized to be included in an
appropriation Act for the fiscal year preceding the fiscal
year for which such appropriation is available for obliga-
tion.
SEC. 502. AVAILABILITY OF FEDERAL COUPON SYSTEM TO
STATES.
(a) ISSUANCE, PURCHASE, AND USE OF COUPONS.—
The Secretary shall issue, and make available for purchase
by States, coupons for the retail purchase of food from
retail food stores that are approved in accordance with
subsection (b). Coupons issued, purchased, and used as
provided in this section shall be redeemable at face value
by the Secretary through the facilities of the Treasury of
the United States. The purchase price of each coupon is-
sued under this subsection shall be the face value of such
coupon.
(b) APPROVAL
OF
RETAIL
FOOD
STORES
AND
WHOLESALE FOOD CONCERNS.—(1) Regulations issued
pursuant to this section shall provide for the submission
of applications for approval by retail food stores and
wholesale food concerns which desire to be authorized to
accept and redeem coupons under this section. In deter-
mining the qualifications of applicants, there shall be con-
sidered among such other factors as may be appropriate,
the following:
(A) The nature and extent of the food business
conducted by the applicant.
(B) The volume of coupon business which may
reasonably be expected to be conducted by the appli-
cant food store or wholesale food concern.
(C) The business integrity and reputation of
the applicant.
Approval of an applicant shall be evidenced by the issu-
ance to such applicant of a nontransferable certificate of
approval. The Secretary is authorized to issue regulations
providing for a periodic reauthorization of retail food
stores and wholesale food concerns.
(2) A buyer or transferee (other than a bona fide
buyer or transferee) of a retail food store or wholesale food
concern that has been disqualified under subsection (d)
may not accept or redeem coupons until the Secretary re-
ceives full payment of any penalty imposed on such store
or concern.
(3) Regulations issued pursuant to this section shall
require an applicant retail food store or wholesale food
concern to submit information which will permit a deter-
mination to be made as to whether such applicant quali-
fies, or continues to qualify, for approval under this sec-
tion or the regulations issued pursuant to this section.
Regulations issued pursuant to this section shall provide
for safeguards which limit the use or disclosure of infor-
mation obtained under the authority granted by this sub-
section to purposes directly connected with administration
and enforcement of this section or the regulations issued
pursuant to this section, except that such information may
be disclosed to and used by States that purchase such cou-
pons.
(4) Any retail food store or wholesale food concern
which has failed upon application to receive approval to
participate in the food stamp program may obtain a hear-
ing on such refusal as provided in subsection (f).
(c) REDEMPTION OF COUPONS.—Regulations issued
under this section shall provide for the redemption of cou-
pons accepted by retail food stores through approved
fication period imposed under paragraph (2) shall con-
tinue in effect as to the person or persons who sell or oth-
erwise transfer ownership of the retail food store or whole-
sale food concern notwithstanding the imposition of a civil
money penalty under this paragraph.
(B) At any time after a civil money penalty imposed
under subparagraph (A) has become final under sub-
section (f)(1), the Secretary may request the Attorney
General of the United States to institute a civil action
against the person or persons subject to the penalty in
a district court of the United States for any district in
which such person or persons are found, reside, or trans-
act business to collect the penalty and such court shall
have jurisdiction to hear and decide such action. In such
action, the validity and amount of such penalty shall not
be subject to review.
(C) The Secretary may impose a fine against any re-
tail food store or wholesale food concern that accepts cou-
pons that are not accompanied by the corresponding book
cover, other than the denomination of coupons used for
making change as specified in regulations issued under
this section. The amount of any such fine shall be estab-
lished by the Secretary and may be assessed and collected
separately in accordance with regulations issued under
this section or in combination with any fiscal claim estab-
tion. Such powers with respect to claims against recipients
may be delegated by the Secretary to State agencies.
(f) ADMINISTRATIVE AND JUDICIAL REVIEW.—(1)
Whenever—
(A) an application of a retail food store or
wholesale food concern for approval to accept and
redeem coupons issued under subsection (a) is de-
nied pursuant to this section,
(B) a retail food store or wholesale food con-
cern is disqualified or subjected to a civil money
penalty under subsection (d),
(C) all or part of any claim of a retail food
store or wholesale food concern is denied under sub-
section (e), or
(D) a claim against a State is stated pursuant
to subsection (e),
notice of such administrative action shall be issued to the
retail food store, wholesale food concern, or State involved.
Such notice shall be delivered by certified mail or personal
service. If such store, concern, or State is aggrieved by
such action, it may, in accordance with regulations pro-
mulgated under this section, within 10 days of the date
of delivery of such notice, file a written request for an
opportunity to submit information in support of its posi-
tion to such person or persons as the regulations may des-
ignate. If such a request is not made or if such store, con-
cern, or State fails to submit information in support of
its position after filing a request, the administrative deter-
mination shall be final. If such request is made by such
store, concern, or State such information as may be sub-
mitted by such store, concern, or State as well as such
other information as may be available, shall be reviewed
by the person or persons designated by the Secretary, who
shall, subject to the right of judicial review hereinafter
provided, make a determination which shall be final and
which shall take effect 30 days after the date of the deliv-
ery or service of such final notice of determination. If such
store, concern, or State feels aggrieved by such final deter-
mination, it may obtain judicial review thereof by filing
a complaint against the United States in the United
States court for the district in which it resides or is en-
gaged in business, or, in the case of a retail food store
or wholesale food concern, in any court of record of the
State having competent jurisdiction, within 30 days after
the date of delivery or service of the final notice of deter-
mination upon it, requesting the court to set aside such
determination. The copy of the summons and complaint
required to be delivered to the official or agency whose
order is being attacked shall be sent to the Secretary or
such person or persons as the Secretary may designate
to receive service of process. The suit in the United States
district court or State court shall be a trial de novo by
the court in which the court shall determine the validity
of the questioned administrative action in issue. If the
court determines that such administrative action is in-
valid, it shall enter such judgment or order as it deter-
mines is in accordance with the law and the evidence. Dur-
ing the pendency of such judicial review, or any appeal
therefrom, the administrative action under review shall be
and remain in full force and effect, unless on application
to the court on not less than ten days’ notice, and after
hearing thereon and a consideration by the court of the
applicant’s likelihood of prevailing on the merits and of
irreparable injury, the court temporarily stays such ad-
ministrative action pending disposition of such trial or ap-
peal.
(g) VIOLATIONS AND ENFORCEMENT.—(1) Subject
to paragraph (2), whoever knowingly uses, transfers, ac-
quires, alters, or possesses coupons in any manner con-
trary to this section or the regulations issued pursuant
to this section shall, if such coupons are of a value of
$5,000 or more, be guilty of a felony and shall be fined
not more than $250,000 or imprisoned for not more than
20 years, or both, and shall, if such coupons are of a value
of $100 or more, but less than $5,000, be guilty of a fel-
ony and shall, upon the first conviction thereof, be fined
not more than $10,000 or imprisoned for not more than
5 years, or both, and, upon the second and any subsequent
conviction thereof, shall be imprisoned for not less than
6 months nor more than 5 years and may also be fined
not more than $10,000 or, if such coupons are of a value
of less than $100, shall be guilty of a misdemeanor, and,
upon the first conviction thereof, shall be fined not more
than $1,000 or imprisoned for not more than one year,
or both, and upon the second and any subsequent convic-
tion thereof, shall be imprisoned for not more than one
year and may also be fined not more than $1,000.
(2) In the case of any individual convicted of an of-
fense under paragraph (1), the court may permit such in-
dividual to perform work approved by the court for the
purpose of providing restitution for losses incurred by the
United States and the State as a result of the offense for
which such individual was convicted. If the court permits
such individual to perform such work and such individual
agrees thereto, the court shall withhold the imposition of
the sentence on the condition that such individual perform
the assigned work. Upon the successful completion of the
assigned work the court may suspend such sentence.
(3) Whoever presents, or causes to be presented, cou-
pons for payment or redemption of the value of $100 or
more, knowing the same to have been received, trans-
ferred, or used in any manner in violation of this section
or the regulations issued under this section, shall be guilty
of a felony and, upon the first conviction thereof, shall
be fined not more than $20,000 or imprisoned for not
more than 5 years, or both, and, upon the second and any
subsequent conviction thereof, shall be imprisoned for not
less than one year nor more than 5 years and may also
be fined not more than $20,000, or, if such coupons are
of a value of less than $100, shall be guilty of a mis-
demeanor and, upon the first conviction thereof, shall be
fined not more than $1,000 or imprisoned for not more
than one year, or both, and, upon the second and any sub-
sequent conviction thereof, shall be imprisoned for not
more than one year and may also be fined not more than
$1,000.
SEC. 503. AUTHORITY TO SELL FEDERAL SURPLUS COM-
MODITIES.
Notwithstanding any other provision of law, the Sec-
retary of Agriculture and the Commodity Credit Corpora-
tion may sell surplus commodities and surplus foodstuffs
to the States to provide food assistance to individuals who
are economically disadvantaged and to individuals who are
members of economically disadvantaged families.
SEC. 504. DEFINITIONS.
For purposes of this title—
(1) the term ‘‘breastfeeding woman’’ means
women 
up 
to 
year 
postpartum 
who 
are
breastfeeding their infants,
(2) the term ‘‘coupon’’ means any coupon,
stamp, or type of certificate, but does not include
currency,
(3) the term ‘‘economically disadvantaged’’
means an individual or a family, as the case may be,
whose income does not exceed the most recent lower
living standard income level published by the De-
partment of Labor,
(4) the term ‘‘elderly or disabled individual’’
means an individual who—
(A) is 60 years of age or older,
(B)(i) receives supplemental security in-
come benefits under title XVI of the Social Se-
curity Act (42 U.S.C. 1381 et seq.), or Feder-
ally or State administered supplemental benefits
of the type described in section 212(a) of Public
Law 93–66 (42 U.S.C. 1382 note), or
(ii) receives Federally or State adminis-
tered supplemental assistance of the type de-
scribed in section 1616(a) of the Social Security
Act (42 U.S.C. 1382e(a)), interim assistance
pending receipt of supplemental security in-
come, 
disability-related 
medical 
assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.), or disability-based State
general assistance benefits, if the Secretary de-
termines that such benefits are conditioned on
meeting disability or blindness criteria at least
as stringent as those used under title XVI of
the Social Security Act,
(C) receives disability or blindness pay-
ments under title I, II, X, XIV, or XVI of the
Social Security Act (42 U.S.C. 301 et seq.) or
receives disability retirement benefits from a
governmental agency because of a disability
considered permanent under section 221(i) of
the Social Security Act (42 U.S.C. 421(i)),
(D) is a veteran who—
(i) has a service-connected or non-
service-connected disability which is rated
as total under title 38, United States Code,
or
(ii) is considered in need of regular
aid and attendance or permanently house-
bound under such title,
(E) is a surviving spouse of a veteran
and—
(i) is considered in need of regular aid
and attendance or permanently house-
bound under title 38, United States Code,
or
(ii) is entitled to compensation for a
service-connected death or pension benefits
for a non-service-connected death under
title 38, United States Code, and has a
disability considered permanent under sec-
tion 221(i) of the Social Security Act (42
U.S.C. 421(i)),
(F) is a child of a veteran and—
(i) is considered permanently incapa-
ble of self-support under section 414 of
title 38, United States Code, or
(ii) is entitled to compensation for a
service-connected death or pension benefits
for a non-service-connected death under
title 38, United States Code, and has a
disability considered permanent under sec-
tion 221(i) of the Social Security Act (42
U.S.C. 421(i)), or
(G) is an individual receiving an annuity
under section 2(a)(1)(iv) or 2(a)(1)(v) of the
Railroad Retirement Act of 1974 (45 U.S.C.
231a(a)(1)(iv) or 231a(a)(1)(v)), if the individ-
ual’s service as an employee under the Railroad
Retirement Act of 1974, after December 31,
1936, had been included in the term ‘‘employ-
ment’’ as defined in the Social Security Act (42
U.S.C. 301 et seq.), and if an application for
disability benefits had been filed,
(5) the term ‘‘food’’ means, for purposes of sec-
tion 502(a) only—
(A) any food or food product for home con-
sumption except alcoholic beverages, tobacco,
and hot foods or hot food products ready for
immediate consumption other than those au-
thorized pursuant to subparagraphs (C), (D),
(E), (G), (H), and (I),
(B) seeds and plants for use in gardens to
produce food for the personal consumption of
the eligible individuals,
(C) in the case of those persons who are
60 years of age or over or who receive supple-
mental security income benefits or disability or
blindness payments under title I, II, X, XIV, or
XVI of the Social Security Act (42 U.S.C. 301
et seq.), and their spouses, meals prepared by
and served in senior citizens’ centers, apart-
ment buildings occupied primarily by such per-
sons, public or private nonprofit establishments
(eating or otherwise) that feed such persons,
private establishments that contract with the
appropriate agency of the State to offer meals
for such persons at concessional prices, and
meals prepared for and served to residents of
federally subsidized housing for the elderly,
(D) in the case of persons 60 years of age
or over and persons who are physically or men-
tally handicapped or otherwise so disabled that
they are unable adequately to prepare all of
their meals, meals prepared for and delivered to
them (and their spouses) at their home by a
public or private nonprofit organization or by a
private establishment that contracts with the
appropriate State agency to perform such serv-
ices at concessional prices,
(E) in the case of narcotics addicts or alco-
holics, and their children, served by drug addic-
tion or alcoholic treatment and rehabilitation
programs, meals prepared and served under
such programs,
(F) in the case of eligible individuals living
in Alaska, equipment for procuring food by
hunting and fishing, such as nets, hooks, rods,
harpoons, and knives (but not equipment for
purposes of transportation, clothing, or shelter,
and not firearms, ammunition, and explosives)
if the Secretary determines that such individ-
uals are located in an area of the State where
it is extremely difficult to reach stores selling
food and that such individuals depend to a sub-
stantial extent upon hunting and fishing for
subsistence,
(G) in the case of disabled or blind recipi-
ents of benefits under title I, II, X, XIV, or
XVI of the Social Security Act (42 U.S.C. 301
et seq.), or are individuals described in subpara-
graphs (B) through (G) of paragraph (4), who
are residents in a public or private nonprofit
group living arrangement that serves no more
than 16 residents and is certified by the appro-
priate State agency or agencies under regula-
tions issued under section 1616(e) of the Social
Security Act (42 U.S.C. 1382e(e)) or under
standards determined by the Secretary to be
comparable to standards implemented by appro-
priate State agencies under such section, meals
prepared and served under such arrangement,
(H) in the case of women and children
temporarily residing in public or private non-
profit shelters for battered women and children,
meals prepared and served, by such shelters,
and
(I) in the case of individuals that do not
reside in permanent dwellings and individuals
that have no fixed mailing addresses, meals pre-
pared for and served by a public or private non-
profit establishment (approved by an appro-
priate State or local agency) that feeds such in-
dividuals and by private establishments that
contract with the appropriate agency of the
State to offer meals for such individuals at
concessional prices,
(6) the term ‘‘infants’’ means individuals under
1 year of age,
(7) the term ‘‘nonexempt individual’’ means an
individual who is not—
(A) a parent residing with a dependent
child under 18 years of age,
(B) a member of a family with responsibil-
ity for the care of an incapacitated family mem-
ber,
(C) mentally or physically unfit,
(D) under 18 years of age, or
(E) 63 years of age or older,
(8) the term ‘‘postpartum women’’ means
women during the 180-day period after the end of
their pregnancy,
(9) the term ‘‘pregnant women’’ means women
who have one or more fetuses in utero,
(10) the term ‘‘retail food store’’ means—
(A) an establishment or recognized depart-
ment thereof or house-to-house trade route,
over 50 percent of whose food sales volume, as
determined by visual inspection, sales records,
purchase records, or other inventory or account-
ing recordkeeping methods that are customary
or reasonable in the retail food industry, con-
sists of staple food items for home preparation
and consumption, such as meat, poultry, fish,
bread, cereals, vegetables, fruits, dairy prod-
ucts, and the like, but not including accessory
food items, such as coffee, tea, cocoa, carbon-
ated and uncarbonated drinks, candy, con-
diments, and spices,
(B) an establishment, organization, pro-
gram, or group living arrangement referred to
in subparagraph (C), (D), (E), (G), (H), or (I)
of paragraph (5),
(C) a store purveying the hunting and fish-
ing equipment described in paragraph (5)(F),
or
(D) any private nonprofit cooperative food
purchasing venture, including those in which
the members pay for food purchased prior to
the receipt of such food,
(11) the term ‘‘school’’ means an elementary,
intermediate, or secondary school,
(12) the term ‘‘Secretary’’ means the Secretary
of Agriculture,
(13) the term ‘‘State’’ means any of the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, Guam, the Virgin Islands of the
United States, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micro-
nesia, Palau, or a tribal organization that exercises
governmental jurisdiction over a geographically de-
fined area,
(14) the term ‘‘tribal organization’’ has the
meaning given it in section 4(l) of the Indian Self-
Determination and Education Assistance Act (25
U.S.C. 450b(l)), and
(15) the term ‘‘young children’’ means individ-
uals who are not less than 1 year of age and not
more than 5 years of age.
SEC. 505. REPEALERS; AMENDMENTS.
(a) REPEALERS.—The following Acts are repealed:
(1) The Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.).
(2) The Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.).
(3) The National School Lunch Act (42 U.S.C.
1751 et seq.)
(4) The Emergency Food Assistance Act of
1983 (7 U.S.C. 612c note).
(5) The Hunger Prevention Act of 1988 (Public
Law 100–435; 102 Stat. 1645).
(6) The Commodity Distribution Reform Act
and WIC Amendments of 1987 (Public Law 100–
237; 101 Stat. 1733).
100
(7) The Child Nutrition and WIC Reauthoriza-
tion Act of 1989 (Public Law 101–147; 103 Stat.
877).
(b) AMENDMENTS.—
(1) The Older Americans Act of 1965 (42
U.S.C. 3030a et seq.) is amended by striking sec-
tions 303(b) and 311, and part C of title III.
(2) Section 32 of the Act of August 24, 1935
(Public Law 320; 7 U.S.C. 612C) is amended—
(A) in the first undesignated paragraph—
(i) by striking ‘‘30 per centum’’ and
inserting ‘‘1.5 per centum’’, and
(ii) by striking ‘‘; (2)’’ and all that
follows through ‘‘Agriculture;’’, and
(B) by striking the last sentence.
(3) The Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note) is amended by
striking sections 4 and 5.
(4) The Agriculture and Food Act of 1981 (7
U.S.C. 1431) is amended by striking section 1114.
(5) Section 402 of the Mutual Security Act of
1954 (22 U.S.C. 1922) is amended by striking the
last sentence.
101
(6) The Act of September 6, 1958 (Public Law
83–931; 7 U.S.C. 1431b) is amended by striking
section 9.
(7) The Agricultural Act of 1965 (7 U.S.C.
1446a–1) is amended by striking section 709.
SEC. 506. EFFECTIVE DATE; APPLICATION OF REPEALERS
AND AMENDMENTS.
(a) EFFECTIVE DATES.—
(1) GENERAL
EFFECTIVE
DATE.—Except as
provided in subsection (b), this title and the amend-
ments made by this title shall take effect on the date
of the enactment of this Act.
(2) SPECIAL
EFFECTIVE
DATE.—The repeals
made by section 505(a) shall not take effect until
the first day of the first fiscal year for which funds
are appropriated more than 180 days in advance of
such fiscal year to carry out section 501.
(b) APPLICATION
OF
REPEALERS
AND
AMEND-
MENTS.—A repeal or amendment made by section 505
shall not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to financial as-
sistance provided under the Act repealed or amended
before the effective date of such repeal or amend-
ment, and
102
(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such Acts.
TITLE 
VI—EXPANDING 
STATU-
TORY 
FLEXIBILITY 
OF
STATES
SEC. 601. OPTION TO CONVERT AFDC INTO A BLOCK GRANT
PROGRAM.
Section 403 of the Social Security Act (42 U.S.C.
603) is amended by inserting after subsection (b) the fol-
lowing:
‘‘(c)(1) Any State that has in effect a plan approved
under part D and is operating a child support program
in substantial compliance with that plan may elect to re-
ceive payments under this subsection in lieu of receiving
payments under the other subsections of this section.
‘‘(2) If a State makes an election under paragraph
(1), then, in lieu of any payment under any other sub-
section of this section, the Secretary shall make payments
to the State under this subsection for each fiscal year in
an amount equal to 103 percent of the total amount to
which the State was entitled under this section for fiscal
year 1992, subject to paragraph (5).
‘‘(3) Each State to which an amount is paid under
paragraph (2) for a fiscal year shall expend the amount
103
to carry out any program established by the State to pro-
vide benefits to needy families with dependent children.
‘‘(4) Within 3 months after the end of each fiscal
year, each State that has made an election under para-
graph (1) shall submit to the Secretary a report that ac-
counts for all expenditures of amounts paid to the State
under this subsection for the fiscal year.
‘‘(5) The Secretary shall reduce by 20 percent the
amount that would otherwise be payable to a State under
this subsection for a fiscal year if the Secretary finds that
the State has expended any amount provided under this
subsection for any purpose other than to carry out a pro-
gram of cash benefits to needy families with children.
‘‘(6)(A) The regulations issued with respect to State
plans and the operation of State programs under this part
(other than under section 402(a)(27), section 403(h), and
this subsection) shall not apply to any State that makes
an election under paragraph (1).
‘‘(B) Section 403(h) shall continue to apply to any
State that makes an election under paragraph (1).’’.
SEC. 602. OPTION TO TREAT NEW RESIDENTS OF A STATE
UNDER RULES OF FORMER STATE.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by titles I and IV of this Act, is
amended—
105
(2) by striking the period at the end of para-
graph (51) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (51) the fol-
lowing:
‘‘(52) at the option of the State, provide that
the aid otherwise payable under the plan to a family
may be reduced by not more than $75 per month for
each parent under 21 years of age who has not com-
pleted secondary school (or the equivalent) and each
dependent child in the family who, during the imme-
diately preceding month, has failed, without good
cause (as defined by the State in consultation with
the Secretary), to maintain minimum attendance (as
defined by the State in consultation with the Sec-
retary) at an educational institution.’’.
SEC. 604. OPTION TO PROVIDE MARRIED COUPLE TRANSI-
TION BENEFIT.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)), as amended by titles I and
IV, and sections 602 and 603, of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(51);
(2) by striking the period at the end of para-
graph (52) and inserting ‘‘; and’’; and
106
(3) by inserting after paragraph (52) the fol-
lowing:
‘‘(53) at the option of the State, provide that—
‘‘(A) if a recipient of aid under the plan
marries an individual who is not a parent of a
child of the recipient and (but for this para-
graph) the resulting family would have become
ineligible for such aid by reason of the mar-
riage, then the family shall remain eligible for
aid under the plan, in an amount equal to 50
percent of the aid payable to the recipient im-
mediately before the marriage, for a period
(specified by the State) of not more than 12
months, but only for so long as the income of
the family is less than 150 percent of the in-
come official poverty line (as defined by the Of-
fice of Management and Budget, and revised
annually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of
1981) applicable to a family of the size in-
volved; and
‘‘(B) if a recipient of aid under the plan
marries an individual who is not a parent of a
child of the recipient and the resulting family
would (in the absence of this subparagraph) be
107
eligible for such aid by reason of section 407,
then the State may provide aid to the family in
accordance with section 407 or subparagraph
(A) of this paragraph, but not both.’’.
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply only with respect to individuals who
first become recipients of aid under State plans approved
under part A of title IV of the Social Security Act on or
after the effective date of this Act.
SEC. 605. OPTION TO DISREGARD INCOME AND RESOURCES
DESIGNATED FOR EDUCATION, TRAINING,
AND EMPLOYABILITY, OR RELATED TO SELF-
EMPLOYMENT.
(a) RESOURCE DISREGARDS.—Section 402(a)(7)(B)
of the Social Security Act (42 U.S.C. 602(a)(7)(B)) is
amended—
(1) by striking ‘‘or’’ before ‘‘(iv)’’; and
(2) by inserting ‘‘(v) at the option of the State,
in the case of a family receiving aid under the State
plan (and a family not receiving such aid but which
received such aid in at least 1 of the preceding 4
months or became ineligible for such aid during the
preceding 12 months because of excessive earnings),
any amount (determined by the State) not to exceed
$10,000 in a qualified asset account (as defined in
108
section 406(i)) of the family, or (vi) at the option of
the State, the first $10,000 of the net worth (assets
reduced by liabilities with respect thereto) of all
microenterprises (as defined in section 406(j)(1))
owned, in whole or in part, by such child, relative,
or other individual, for a period not to exceed 2
years’’ before ‘‘; and’’.
(b) DISREGARD OF INCOME FROM QUALIFIED ASSET
ACCOUNTS.—Section 402(a)(8)(A) of such Act (42 U.S.C.
602(a)(8)(A)) is amended—
(1) by striking ‘‘and’’ at the end of clause (vii);
and
(2) by inserting after clause (viii) the following
new clause:
‘‘(ix) at the option of the State, may
disregard any interest or income earned on
a qualified asset account (as defined in
section 406(i)), and any qualified distribu-
tion (as defined in section 406(i)(2)) from
a qualified asset account (as defined in
section 406(i)(1)); and’’.
(c) NONRECURRING LUMP SUM EXEMPT FROM
LUMP SUM RULE.—Section 402(a)(17) of such Act (42
U.S.C. 602(a)(17)) is amended by adding at the end the
following: ‘‘; and, at the option of the State, that this para-
109
graph shall not apply to earned or unearned income re-
ceived in a month on a nonrecurring basis to the extent
that such income is placed in a qualified asset account
(as defined in section 406(i)) the total amounts in which,
after such placement, does not exceed $10,000;’’.
(d) ONLY NET PROFITS
OF MICROENTERPRISE
TREATED AS INCOME.—Section 402(a)(7) of such Act (42
U.S.C. 602(a)(7)), as amended by subsection (a) of this
section, is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the semicolon at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) at the option of the State, may take
into consideration as earned income of the fam-
ily of which the child is a member, only the net
profits (as defined in section 406(j)(2)) of
microenterprises 
(as 
defined 
in 
section
406(j)(1)) owned, in whole or in part, by such
child, relative, or other individual, for a period
not to exceed 2 years.’’.
(e) DEFINITIONS.—Section 406 of such Act (42
U.S.C. 606) is amended by adding at the end the follow-
ing:
110
‘‘(i)(1) The term ‘qualified asset account’ means a
mechanism approved by the State (such as individual re-
tirement accounts, escrow accounts, or savings bonds) that
allows savings of a family receiving aid to families with
dependent children to be used for qualified distributions.
‘‘(2) The term ‘qualified distribution’ means a dis-
tribution from a qualified asset account for expenses di-
rectly related to 1 or more of the following purposes:
‘‘(A) The attendance of a member of the family
at any education or training program.
‘‘(B) The improvement of the employability (in-
cluding self-employment) of a member of the family
(such as through the purchase of an automobile).
‘‘(C) The purchase of a home for the family.
‘‘(D) A change of the family residence.
‘‘(j)(1) The term ‘microenterprise’ means a commer-
cial enterprise which has 5 or fewer employees, 1 or more
of whom owns the enterprise.
‘‘(2) The term ‘net profits’ means, with respect to
a microenterprise, the gross receipts of the business,
minus—
‘‘(A) payments of principal or interest on a loan
to the microenterprise;
‘‘(B) transportation expenses;
‘‘(C) inventory costs;
111
‘‘(D) expenditures to purchase capital equip-
ment;
‘‘(E) cash retained by the microenterprise for
future use by the business;
‘‘(F) taxes paid by reason of the business;
‘‘(G) if the business is covered under a policy
of insurance against loss—
‘‘(i) the premiums paid for such insurance;
and
‘‘(ii) the losses incurred by the business
that are not reimbursed by the insurer solely by
reason of the existence of a deductible with re-
spect to the insurance policy;
‘‘(H) the reasonable costs of obtaining 1 motor
vehicle necessary for the conduct of the business;
and
‘‘(I) the other expenses of the business.’’.
SEC. 
606. 
OPTION 
TO 
REQUIRE 
ATTENDANCE 
AT
PARENTING 
AND 
MONEY 
MANAGEMENT
CLASSES, AND PRIOR APPROVAL OF ANY AC-
TION THAT WOULD RESULT IN A CHANGE OF
SCHOOL FOR A DEPENDENT CHILD.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)), as amended by titles I and
112
IV, and sections 602, 603, and 604, of this Act, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(52);
(2) by striking the period at the end of para-
graph (53) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (53) the fol-
lowing:
‘‘(54) at the option of the State, provide that,
as a condition of receiving aid under the State plan,
the receipient must attend parenting and money
management classes, and must receive the permis-
sion of the State agency before taking any action
that would require a change in the educational insti-
tution attended by a dependent child of the recipi-
ent.’’.
TITLE VII—DRUG TESTING FOR
WELFARE RECIPIENTS
SEC. 701. AFDC RECIPIENTS REQUIRED TO UNDERGO NEC-
ESSARY SUBSTANCE ABUSE TREATMENT AS A
CONDITION OF RECEIVING AFDC.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)) is amended by inserting after
paragraph (34) the following:
‘‘(35) provide that—
113
‘‘(A) each applicant or recipient of aid
under the State plan who is addicted (as deter-
mined by the State) to alcohol or drugs must
agree to participate and maintain satisfactory
participation (as determined by the State) in an
appropriate addiction treatment program (if
available), and must agree to submit to tests
for the presence of alcohol or drugs, without ad-
vance notice, during and after such participa-
tion; and
‘‘(B) during the 2-year period that begins
with any failure by such an applicant or recipi-
ent to comply with any requirement imposed
pursuant to subparagraph (A), the applicant or
recipient shall not be eligible for such aid, but
shall be considered to be receiving such aid for
purposes of eligibility for medical assistance
under the State plan approved under title
XIX.’’.
(b) DELAYED APPLICABILITY PERMITTED IF STATE
LEGISLATION REQUIRED.—In the case of a State plan ap-
proved under section 402(a) of the Social Security Act
which the Secretary of Health and Human Services deter-
mines requires State legislation (other than legislation ap-
propriating funds) in order for the plan to meet the addi-
114
tional requirement imposed by the amendment made by
subsection (a) of this section, the State plan shall not be
regarded as failing to comply with the requirements of
such section 402(a) solely on the basis of the failure of
the plan to meet such additional requirement before the
end of the 2-year period that begins with the effective date
of this Act.
TITLE VIII—EFFECTIVE DATE
SEC. 801. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on October 1, 1995.
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