I
103D CONGRESS
2D SESSION
H. R. 4318
To reduce reliance on public assistance by improving education and job
training programs, strengthening support services and case management,
eliminating penalties against two-parent families, allowing welfare recipi-
ents to keep more of their earnings and benefits as they move into
the workforce, and increasing child support enforcement.
IN THE HOUSE OF REPRESENTATIVES
APRIL 28, 1994
Ms. WOOLSEY (for herself and Mr. REGULA) introduced the following bill;
which was referred jointly to the Committees on Ways and Means, Edu-
cation and Labor, and Energy and Commerce
AUGUST 10, 1994
Additional sponsors: Mrs. CLAYTON, Mrs. UNSOELD, Mr. YATES, Mr. FROST,
Ms. ROYBAL-ALLARD, Ms. PELOSI, Mr. BECERRA, Mr. SCOTT, Mr. HAM-
BURG, Mr. MINETA, Mr. FARR of California, Mr. MATSUI, Mr. MILLER
of California, Mr. GENE GREEN of Texas, Mr. MARTINEZ, Miss COLLINS
of Michigan, Mr. BARLOW, Mr. HEFNER, and Mr. STUDDS
A BILL
To reduce reliance on public assistance by improving edu-
cation and job training programs, strengthening support
services and case management, eliminating penalties
against two-parent families, allowing welfare recipients
to keep more of their earnings and benefits as they
move into the workforce, and increasing child support
enforcement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Working Off Welfare
Act of 1994’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—WELFARE REFORM
Subtitle A—Aid To Families With Dependent Children
Sec. 101. Determination of State standard of need.
Sec. 102. Elimination of restrictions on ‘‘fill the gap’’ policies.
Sec. 103. Maintenance of benefit levels.
Sec. 104. Income disregards.
Sec. 105. Elimination of rules that treat families differently based on number
of parents in the home.
Sec. 106. Modification of child support disregard.
Sec. 107. Treatment of stepparent income.
Sec. 108. Availability of child care and medicaid benefits to persons eligible for
but not receiving AFDC.
Sec. 109. Coordination of services.
Sec. 110. Expenditure of JOBS funds for self-initiated activities.
Sec. 111. Emphasis on certain types of jobs.
Sec. 112. Limited class preparation time considered participation in the JOBS
program.
Sec. 113. School attendance by teens considered participation in the JOBS pro-
gram.
Sec. 114. Performance standards using self-sufficiency standards.
Sec. 115. Activities under the JOBS program.
Sec. 116. Increase in JOBS program funding.
Sec. 117. Increase in JOBS matching rate.
Sec. 118. Increase in required JOBS participation rates.
Sec. 119. Simplification of reporting requirements.
Sec. 120. State caseworker training programs.
Sec. 121. Use of JOBS funds for certain other purposes.
Sec. 122. Case management.
Sec. 123. Child care benefits.
Sec. 124. Extension of transitional child care and medicaid benefits.
Sec. 125. Treatment of certain services for purposes of contract authority.
Subtitle B—Earned Income Tax Credit
Sec. 131. Recommendations for quarterly payments of earned income credit.
Subtitle C—Microenterprise and Small Business Development
Sec. 141. Disregard of income and resources designated for education, training,
and employability.
Sec. 142. Disregard of income and resources related to self-employment.
Subtitle D—Effective Date
Sec. 151. Effective date.
TITLE II—FEDERAL JOB TRAINING PROGRAM REFORMS
Subtitle A—Studies and Reports
Sec. 201. Departments of Education, Health and Human Services, and Labor
studies and reports.
Sec. 202. General Accounting Office study and report.
Subtitle B—Economic Self-Sufficiency Standards for Federal Job Training
Programs
Sec. 211. Establishment of standards.
Sec. 212. Poverty line and regional housing based formula.
Sec. 213. Family, housing, and related factors based formula.
Sec. 214. Economic self-sufficiency defined.
Subtitle C—Effective Date
Sec. 221. Effective date.
TITLE III—CHILD SUPPORT ENFORCEMENT
Sec. 301. National child support order registry.
Sec. 302. Modification of W–4 reporting requirements to provide for reporting
of child support obligations of employees.
Sec. 303. Collection of child support.
Sec. 304. Distribution of portion of child support collected.
Sec. 305. Outreach and accessibility.
Sec. 306. Commission on Child Support Guidelines.
Sec. 307. Resources.
Sec. 308. Paternity establishment procedures.
Sec. 309. Coordination of collection activities.
Sec. 310. Inclusion in consumer credit reports of information on overdue child
support obligations of the consumer.
Sec. 311. Effective date.
TITLE I—WELFARE REFORM
Subtitle A—Aid To Families With
Dependent Children
SEC. 101. DETERMINATION OF STATE STANDARD OF NEED.
(a) STATE PLAN REQUIREMENT.—Section 402(a) of
the Social Security Act (42 U.S.C. 602(a)) is amended—
the size of such a family, exceeds 30 percent of the
applicable living standard.
‘‘(3) A State that elects to determine its standard of
need in accordance with this paragraph shall set its stand-
ard of need for any family of a certain size and composi-
tion that resides in a market area in the State at a level
that is not less than the sum of—
‘‘(A) the applicable living standard for such a
family; and
‘‘(B) the amount (if any) by which the average
housing costs for the market area, adjusted by the
State (subject to the approval of the Secretary) for
the size of such a family, exceeds 30 percent of the
applicable living standard.
‘‘(4) A State that elects to determine its standard of
need in accordance with this paragraph shall set its stand-
ard of need for a family of a certain size and composition
at a level equal to the greater of—
‘‘(A) the level determined under paragraph (2)
for such a family; or
‘‘(B) such level as the State determines is ap-
propriate for such a family, after taking into ac-
count—
‘‘(i) child care costs;
‘‘(ii) health care costs;
‘‘(iii) transportation costs;
‘‘(iv) fair market rents for a dwelling unit
of adequate size;
‘‘(v) food costs; and
‘‘(vi) work-related costs.
‘‘(5) As used in this subsection:
‘‘(A) The term ‘applicable living standard’
means, with respect to a family, 130 percent of the
income official poverty line (as defined by the Office
of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) for a family of
the same size as the family.
‘‘(B) The term ‘weighted average housing costs’
means, with respect to a State, the sum of the
weighted average housing costs for each market area
part or all of which is in the State.
‘‘(C) The term ‘weighted average housing costs’
means, with respect to a market area—
‘‘(i) the average housing costs for the mar-
ket area; multiplied by
‘‘(ii) the percentage of the population of
the State that resides in the market area.
‘‘(D) The term ‘average housing costs’ means,
with respect to a market area, the fair market rental
established by the Secretary of Housing and Urban
Development under section 8(a) of the United States
Housing Act of 1937 for the market area.
‘‘(E) The term ‘market area’ shall have the
same meaning such term has for purposes of deter-
mining fair market rentals under section 8(a) of the
United States Housing Act of 1937.’’.
SEC. 102. ELIMINATION OF RESTRICTIONS ON ‘‘FILL THE
GAP’’ POLICIES.
Section 402(a)(28) of the Social Security Act (42
U.S.C. 602(a)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(28)’’;
(2) by adding ‘‘or’’ at the end; and
(3) by adding below the end the following:
‘‘(B) at the option of a State to which subpara-
graph (A) does not apply, provide that, in addition
to the amount of aid otherwise payable to a family
for a month under the State plan, the State may
pay to the family the amount collected in the month
as child support with respect to a dependent child in
the family that is not otherwise disregarded from in-
come pursuant to paragraph (8)(A)(vi), to the extent
that the aggregate of such collected amount, the
amount of the aid otherwise payable to the family
for the month, and an amount equal to the other in-
come of the family not disregarded from income for
the month pursuant to paragraph (8) does not ex-
ceed the State’s standard of need for a family of the
same composition;’’.
SEC. 103. MAINTENANCE OF BENEFIT LEVELS.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)), as amended by section 101(a)
of this Act, is amended—
(1) in paragraph (45), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (46), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (46) the fol-
lowing:
‘‘(47) provide that the maximum amount of aid
payable for any month to a family under the State
plan shall not be reduced below the maximum
amount of aid so payable for January 1994 to a
family of the same composition.’’.
(b) EXEMPTION FROM WAIVER AUTHORITY.—Sec-
tion 1115(a)(1) of such Act (42 U.S.C. 1315(a)(1)) is
amended by inserting ‘‘(other than subsection (a)(47))’’
after ‘‘402’’.
SEC. 104. INCOME DISREGARDS.
Section 402(a)(8) of the Social Security Act (42
U.S.C. 602(a)(8)) is amended—
(1) in subparagraph (A)—
(A) by striking clause (ii);
(B) in clause (iii), by striking ‘‘child, rel-
ative, or other individual specified in clause
(ii)’’ and inserting ‘‘child or relative applying
for or receiving aid to families with dependent
children, or of any other individual living in the
same home as such relative and child) whose
needs are taken into account in making such
determination’’; and
(C) in clause (iv)—
(i) in subclause (I), by striking ‘‘$30’’
and inserting ‘‘$200’’; and
(ii) in subclause (II), by striking
‘‘one-third’’ and inserting ‘‘not less than
1⁄3 and not more than 2⁄3’’; and
(2) in subparagraph (B)—
(A) by striking clause (ii);
(B) by striking ‘‘—’’ and all that follows
through ‘‘(i)’’; and
(C) by redesignating subclauses (I), (II),
and (III) of clause (i) as clauses (i), (ii), and
(iii), respectively.
SEC. 105. ELIMINATION OF RULES THAT TREAT FAMILIES
DIFFERENTLY BASED ON NUMBER OF PAR-
ENTS IN THE HOME.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)) is amended by striking para-
graph (41).
(b) CONFORMING AMENDMENTS.—
(1) Section 402(a)(19)(B)(i)(II) of such Act
(42 U.S.C. 602(a)(19)(B)(i)(II)) is amended by
striking ‘‘(and’’ and all that follows through
‘‘407(b)(2)(B)(i))’’.
(2) Section 402(a)(19)(D) of such Act (42
U.S.C. 602(a)(19)(D)) is amended by striking ‘‘eligi-
ble’’ and all that follows through ‘‘earner’’ and in-
serting ‘‘in which both parents are living at home’’.
(3) Section 402(a)(19)(G)(i) of such Act (42
U.S.C. 602(a)(19)(G)(i)) is amended—
(A) in subclause (I), by striking ‘‘(whether
or not section 407 applies)’’; and
(B) in subclause (II)—
(i) by striking ‘‘which is eligible for
aid to families with dependent children by
reason of section 407’’ and inserting ‘‘in
which both parents are living at home’’;
and
(ii) by striking ‘‘the needs of such
spouse shall also not’’ and inserting ‘‘the
spouse shall be required to participate in
the program and, unless the spouse fails
without good cause to so participate, the
needs of the spouse shall’’.
(4) Section 402(a)(38)(B) of such Act (42
U.S.C. 602(a)(38)(B)) is amended by striking ‘‘or in
section 407(a)’’.
(5) Section 402(a) of such Act (42 U.S.C.
602(a)) is amended by striking paragraph (42).
(6) Section 403(l)(4)(A)(i) of such Act (42
U.S.C. 603(l)(4)(A)(i)) is amended by striking
‘‘family eligible’’ and all that follows through ‘‘earn-
er’’ and inserting ‘‘2-parent family’’.
(7) Section 406(a)(1) of such Act (42 U.S.C.
606(a)(1)) is amended by striking ‘‘who has been
deprived’’ and all that follows through ‘‘incapacity of
a parent’’.
(8) Section 406(b)(1) of such Act (42 U.S.C.
606(b)(1)) is amended by striking ‘‘and if such rel-
ative’’ and all that follows through ‘‘section 407’’.
(9) Section 407 of such Act (42 U.S.C. 607) is
hereby repealed.
(10) Section 472(a) of such Act (42 U.S.C.
672(a)) is amended by striking ‘‘or of section 407’’.
(11) Section 473(a)(2)(A)(i) of such Act (42
U.S.C. 672(a)(2)(A)(i)) is amended by striking ‘‘or
section 407’’.
(12) Section 1115(b) of such Act (42 U.S.C.
1315(b)) is amended by striking paragraph (5).
(13) Section 1115 of such Act (42 U.S.C.
1315) is amended by striking subsection (d).
(14) Section 1902(a)(10)(A)(i) of such Act (42
U.S.C. 1396a(a)(10)(A)(i)) is amended by striking
subclause (V) and by redesignating subclauses (VI)
and (VII) as subclauses (V) and (VI), respectively.
(15) Section 1905 of such Act (42 U.S.C.
1396d) is amended by striking subsection (m).
(16) Section 1905(n)(1) of such Act (42 U.S.C.
1396d(n)(1)) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘(or’’ and all that fol-
lows through ‘‘407)’’; and
(ii) by adding ‘‘or’’ at the end; and
(B) by striking subparagraph (B).
(17) Section 204(b)(2) of the Family Support
Act of 1988 (42 U.S.C. 681 note) is amended by
striking ‘‘1998’’ and inserting ‘‘1999’’.
SEC. 106. MODIFICATION OF CHILD SUPPORT DISREGARD.
(a) IN GENERAL.—Section 402(a)(8)(A)(vi) of the
Social Security Act (42 U.S.C. 602(a)(8)(A)(vi)) is
amended to read as follows:
‘‘(vi) shall disregard 1⁄2 of the amount of
any child support payment received with respect
to any dependent child in any family applying
for or receiving aid under the State plan (and
1⁄2 of any support payment collected and paid
to any such family under section 457(b));’’.
(b) CONFORMING AMENDMENTS.—Section 457(b)(1)
of such Act (42 U.S.C. 657(b)(1)) is amended by striking
‘‘the first $50’’ each place such term appears and insert-
ing ‘‘a dollar amount equal to 1⁄2’’.
SEC. 107. TREATMENT OF STEPPARENT INCOME.
(a) OPTION OF FAMILY TO HAVE NEEDS OF STEP-
PARENT CONSIDERED.—Section 402(a)(7)(A) of the So-
cial Security Act (42 U.S.C. 602(a)(7)(A)) is amended by
inserting ‘‘, (at the option of such relative) of any step-
parent of the child (living in the same home as such child
and relative),’’ before ‘‘, or of any other individual’’.
(b) MODIFICATION OF STEPPARENT INCOME DIS-
REGARD.—Section 402(a)(31) of such Act (42 U.S.C.
602(a)(31)) is amended—
(1) by inserting ‘‘if the needs of a stepparent
of the dependent child living in the same home as
the child are not considered’’ before ‘‘in making’’;
(2) by striking ‘‘dependent child’s stepparent
living in the same home as such child’’ and inserting
‘‘stepparent’’; and
(3) by adding at the end of subparagraph (B)
the following: ‘‘or, if greater, 130 percent of the in-
come official poverty line (as defined by the Office
of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) applicable to
such a family,’’.
SEC. 108. AVAILABILITY OF CHILD CARE AND MEDICAID
BENEFITS TO PERSONS ELIGIBLE FOR BUT
NOT RECEIVING AFDC.
(a) CHILD CARE.—Section 402(g)(1)(A)(i)(I) of the
Social Security Act (42 U.S.C. 602(g)(1)(A)(i)(I)) is
amended by inserting ‘‘(whether or not the family is a re-
cipient of aid under the State plan under this part)’’ be-
fore the comma.
(b) MEDICAID.—Section 402(a) of such Act (42
U.S.C. 602(a)), as amended by sections 101(a) and 103
of this Act, is amended—
(1) in paragraph (46), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (47), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (47) the fol-
lowing:
‘‘(48) provide that—
‘‘(A) a family eligible for aid under the
State plan approved under this part shall be
considered eligible for medical assistance under
the State plan approved under title XIX,
whether or not the family is a recipient of aid
under the State plan approved under this part;
and
‘‘(B) the State shall make a reasonable ef-
fort to inform all persons who may be eligible
for assistance under the State plan approved
under this part of the availability of child care
under section 402(g), and the availability of
medical assistance under the State plan ap-
proved under title XIX without application for
aid under the State plan approved under this
part.’’.
SEC. 109. COORDINATION OF SERVICES.
(a) IN GENERAL.—Section 402(a) of such Act (42
U.S.C. 602(a)), as amended by sections 101(a), 103, and
108(b) of this Act, is amended—
(1) in paragraph (47), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (48), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (48) the fol-
lowing:
‘‘(49) provide that the State agency shall—
‘‘(A) establish at least 1 convenient loca-
tion in each community (if practicable, as de-
fined by the Secretary in regulations) at which
a person may apply for and (if appropriate) re-
ceive, directly or through referral to the appro-
priate provider, in appropriate languages and in
a culturally sensitive manner—
‘‘(i) aid under the State plan;
‘‘(ii) employment and education coun-
seling;
‘‘(iii) child care;
‘‘(iv) health care;
‘‘(v) transportation assistance;
‘‘(vi) housing assistance;
‘‘(vii) child support services; and
‘‘(viii) other types of counseling and
support services; and
‘‘(B) assign to each recipient of aid under
the State plan, and to each applicant for such
aid (within 30 days after the date of applica-
tion), a case manager who—
‘‘(i) is knowledgeable about commu-
nity resources;
‘‘(ii) is qualified to refer the applicant
or recipient to appropriate education and
training opportunities, employment pro-
grams, and needed health and social serv-
ices; and
‘‘(iii) is required to coordinate the
provision of benefits and services by the
State to the applicant or recipient, until
the applicant or recipient is no longer eligi-
ble for—
‘‘(I) aid under the State plan;
‘‘(II) child care guaranteed by
the State in accordance with section
402(g); and
‘‘(III) medical assistance under
the State plan approved under title
XIX.’’.
(b) STAFFING GUIDELINES.—Section 402 of such
Act (42 U.S.C. 602) is amended by adding at the end the
following:
‘‘(j)(1) The Secretary shall establish guidelines for
the staffing of the State agencies referred to in subsection
(a)(3) that include recommendations for qualifications of
personnel employed by such agencies and for appropriate
caseload size.
‘‘(2) Every 2 years, each State shall report to the
Secretary on—
‘‘(A) the extent to which the State is staffing
the State agencies referred to in subsection (a)(3) in
accordance with the guidelines established pursuant
to paragraph (1) of this subsection; and
‘‘(B) to the extent the State is not doing so,
how the State is carrying out the provisions of the
State plan required by subsection (a)(49).’’.
SEC. 110. EXPENDITURE OF JOBS FUNDS FOR SELF-INITI-
ATED ACTIVITIES.
(a) IN GENERAL.—Section 403(l) of the Social Secu-
rity Act (42 U.S.C. 603(l)) is amended by adding at the
end the following:
‘‘(5) For purposes of this subsection, to the extent
that a State elects to pay, and pays, the costs of school
or training described in section 402(a)(19)(F)(i) for an
individual participating in the program of the State under
part F, such costs shall be considered expenditures of the
State to carry out the program.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
402(a)(19)(F) of such Act (42 U.S.C. 602(a)(19)(F)) is
amended—
(1) by adding ‘‘and’’ at the end of clause (ii);
(2) by striking clause (iii); and
(3) by redesignating clause (iv) as clause (iii).
SEC. 111. EMPHASIS ON CERTAIN TYPES OF JOBS.
Section 485(e) of the Social Security Act (42 U.S.C.
685(e)) is amended by inserting ‘‘, especially jobs in indus-
tries that utilize new technologies, and in environmental
engineering, 
environmental 
cleanup, 
advanced 
tele-
communications, transportation, infrastructure, or com-
puters, jobs that pay wages sufficient to meet or exceed
the State’s standard of need, and jobs in fields in which
women constitute less than 25 percent of the workforce,’’
before the period.
SEC. 112. LIMITED CLASS PREPARATION TIME CONSID-
ERED PARTICIPATION IN THE JOBS PRO-
GRAM.
Section 403(l)(3)(D) of the Social Security Act (42
U.S.C. 603(l)(3)(D)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and
(2) by adding at the end the following:
‘‘(ii) For purposes of this paragraph, for each full
hour spent by an individual in a postsecondary course of
education, 1 hour spent by the individual preparing for
the course shall be determined to be participation by the
individual for 1 hour in the program under part F.’’.
SEC. 113. SCHOOL ATTENDANCE BY TEENS CONSIDERED
PARTICIPATION IN THE JOBS PROGRAM.
Section 403(l)(3)(D) of the Social Security Act (42
U.S.C. 603(l)(3)(D)), as amended by section 112 of this
Act, is amended by adding at the end the following:
‘‘(iii) For purposes of this paragraph, the hours an
individual spends in school shall be determined to be hours
of participation in the program under part F if the individ-
ual—
‘‘(I) has not attained 20 years of age;
‘‘(II) is a custodial parent or pregnant, or has
attained 16 years of age; and
‘‘(III) is attending school in accordance with
the employability plan developed for the individual
pursuant to section 482(b)(3).’’.
SEC. 114. PERFORMANCE STANDARDS USING SELF-SUFFI-
CIENCY STANDARDS.
Section 487 of the Social Security Act (42 U.S.C
687) is amended—
income sufficient to meet or exceed the State’s standard
of need determined under section 402(d) for a family of
the same size and composition as the family.’’.
(b) STATE PLAN REQUIRED TO INCLUDE DESCRIP-
TION OF STATE EFFORTS TO HELP CERTAIN PARTICI-
PANTS
BECOME
SELF-SUFFICIENT.—Section
482(a)(1)(B) of such Act (42 U.S.C. 482(a)(1)(B)) is
amended by striking ‘‘and (iii)’’ and inserting ‘‘(iii) a de-
scription of the policies and practices of the State designed
to ensure that (I) individuals who need educational activi-
ties (within the meaning of subsection (d)(1)(A)(i)(I)) to
assist them in becoming self-sufficient are placed in pro-
grams with clear goals, benchmarks and timetables for
measuring progress, and periodic reassessments to deter-
mine the continued appropriateness of their participation
in such activities, and (II) individuals who need job skills
training to become employed in their target occupation are
placed in training programs in which the provider of train-
ing provides participants who successfully complete the
training program with a certificate of mastery indicating
the occupation for which the participant is qualified, and
(iv)’’.
(c) ASSESSMENT OF NEEDS AND SKILLS OF PARTICI-
PANTS; IDENTIFICATION OF TARGET OCCUPATIONS; DE-
VELOPMENT OF EMPLOYABILITY PLANS.—Section 482(b)
of such Act (42 U.S.C. 682(b)) is amended to read as
follows:
‘‘(b) ASSESSMENT OF NEEDS AND SKILLS OF PAR-
TICIPANTS; IDENTIFICATION OF TARGET OCCUPATIONS;
DEVELOPMENT
OF EMPLOYABILITY PLANS; MONITOR-
ING.—
‘‘(1) ASSESSMENT.—
‘‘(A) ASSIGNMENT OF CASE MANAGER.—
The State must assign a case manager to each
participant in the program under this part.
‘‘(B) DUTIES
OF
CASE
MANAGER.—The
case manager shall be responsible for ensuring
that the participant receives an assessment of—
‘‘(i) the educational, child care, and
other supportive services needs of the fam-
ily of the participant;
‘‘(ii) the skills, prior work experience,
and employability of the participant; and
‘‘(iii) the ability of the participant
(with appropriate services) to become self-
sufficient.
‘‘(C) 
EDUCATIONAL
AND
VOCATIONAL
TESTING.—The assessment must include edu-
cational and vocational testing in order to de-
termine the skills of the participant, if nec-
essary to help identify a target occupation for
the participant.
‘‘(2) TARGET OCCUPATION.—
‘‘(A) IDENTIFICATION.—On the basis of
the assessment and testing provided for pursu-
ant to paragraph (1), the participant must, in
consultation with the State, identify 1 or more
target occupations for the participant. The
State shall use local labor market information
(which shall be provided annually by the State
department of labor) to assist the participant in
identifying a target occupation.
‘‘(B) DEFINITION.—As used in this sub-
section, the term ‘target occupation’ means,
with respect to a participant, an occupation
that provides an opportunity for the participant
to become self-sufficient.
‘‘(3) EMPLOYABILITY PLAN.—
‘‘(A) IN GENERAL.—On the basis of the
assessment and testing provided for pursuant to
paragraph (1), the State must, in consultation
with the participant, develop (and, for good
cause, amend) an employability plan for the
participant which must—
‘‘(i) specify a target occupation for
the participant;
‘‘(ii) detail the program of activities,
including timetables and benchmarks for
progress in and completion of each activity,
that the participant and the State will en-
gage in to help the participant become em-
ployed in the target occupation;
‘‘(iii) describe the child care, transpor-
tation, and other supportive services to be
provided to the family of the participant,
including, for each child of the participant,
the child care services to be provided to the
child or a statement that sets forth the
reasons why child care services are not
needed for the child; and
‘‘(iv) be signed by the case manager,
the participant, and all providers of serv-
ices identified in the plan.
‘‘(B) PROCEDURES
FOR
PARTICIPANTS
WHO
FAIL
TO
DEMONSTRATE
BASIC
LIT-
ERACY.—
‘‘(i) TESTING FOR LEARNING DISABIL-
ITIES.—The State agency must develop
procedures for screening participants who
fail to demonstrate basic literacy for visual
or auditory deficits and such other disabil-
ities as the Secretary may specify in regu-
lations.
‘‘(ii) REGULATIONS.—The Secretary,
in consultation with the Secretary of Edu-
cation, shall develop appropriate regula-
tions and guidance to ensure that—
‘‘(I) State assessment and reas-
sessment procedures seek to identify
potential learning disabilities that
could affect the ability of individuals
to participate in the program under
this part and become self-sufficient;
and
‘‘(II) subject to available re-
sources, the State provides such serv-
ices as may be required to address the
employment-related needs of partici-
pants with learning disabilities.
‘‘(C) 
STATUS
OF
EMPLOYABILITY
PLANS.—The employability plan shall not be
considered a contract.
‘‘(4) 
MONITORING
OF
PARTICIPANT
PROGRESS.—
‘‘(A) IN
GENERAL.—Not less frequently
than every 4 months after the development of
the employability plan, the case manager shall
review with the participant and the providers of
services under the plan whether the participant
is making good and satisfactory progress in the
program of activities under the employability
plan.
‘‘(B) 
GOOD
AND
SATISFACTORY
PROGRESS.—The State shall determine what
constitutes good and satisfactory progress for
purposes of subparagraph (A), except that a
participant shall be considered to be making
good and satisfactory progress in a program of
activities under an employability plan if the
participant has met the requirements of the em-
ployability plan in a timely manner.
‘‘(C) EFFECTS
OF
FAILURE
TO
MAKE
GOOD
AND
SATISFACTORY
PROGRESS.—If the
case manager determines that the participant
has failed to make good and satisfactory
progress in the program of activities under the
employability plan, or that another program of
activities would more quickly enable the partici-
pant to become self-sufficient, the case manager
may, in consultation with the participant and
the providers of services to the participant, pro-
pose to amend the employability plan and as-
sign the participant to such other program of
activities. If the case manager determines that
the failure of the participant is due to a failure
of a service provider that was caused by cir-
cumstances within the control of the service
provider, the case manager shall consider the
appropriateness of assigning the participant to
another service provider. If the case manager
determines that the failure of the participant is
due to the refusal of the participant without
good cause to comply with the requirements of
the 
program 
of 
activities, 
then 
section
402(a)(19)(G) shall apply.’’.
(d) AVAILABILITY
OF
ENHANCED
ON-THE-JOB
TRAINING.—Section 482(d) of such Act (42 U.S.C.
682(d)) is amended—
(1) in paragraph (1)(A)(ii)—
(A) by striking ‘‘and’’ at the end of
subclause (III);
(B) by striking the period at the end of
subclause (IV) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(V) enhanced on-the-job training as de-
scribed in paragraph (4).’’; and
(2) by adding at the end the following:
‘‘(4)(A) Any State may offer participants in the pro-
gram under this part the opportunity to receive enhanced
on-the-job training consisting of employment by an em-
ployer in a productive capacity at a wage that is not less
than the entry-level wage of the employer, under the fol-
lowing conditions:
‘‘(i) The employer must set a target job for the
participant in the employer’s firm and will, if at-
tained, allow the participant to be self-sufficient.
‘‘(ii) The employer must agree to participate in
a training plan for the participant, developed in col-
laboration with, and approved by, the employer, that
will qualify the participant for the target job.
‘‘(iii) The employer must agree to provide up to
10 hours per week of release time for the participant
for training by an approved education provider, ei-
ther on or off the employer’s premises, in basic or
vocational skills required by the target job. For pur-
poses of the preceding sentence, the term ‘approved
education provider’ means a provider of educational
services that the State agency, after consultation
with the State education agency, has approved as
qualified to provide enhanced on-the-job training.
‘‘(iv) The employer must agree to hire the par-
ticipant for the target job or an equivalent job when
the participant completes the training plan, and to
retain the participant in that job for at least 18
months, unless—
‘‘(I) the participant is subject to dismissal
for cause; or
‘‘(II) the employer suffers business difficul-
ties that require a reduction in the number of
employees including the target job.
‘‘(v) The State shall make payments to the em-
ployer in an amount equal to a percentage (pre-
scribed by the Secretary in regulations) of the ex-
penditures of the employer with respect to the par-
ticipant.
‘‘(B) If the employer violates any condition set forth
in subparagraph (A) with respect to a participant, the
State agency shall not refer other participants to the em-
ployer for participation in enhanced on-the-job training.’’.
(e) RESOLUTION OF DISPUTES OVER TARGET OCCU-
PATIONS AND EMPLOYABILITY PLANS.—Section 482(h) of
such Act (42 U.S.C. 682(h)) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Each State’’; and
(2) by adding at the end the following:
‘‘(2)(A) The State shall, where practicable,
defer to reasonable determinations of the participant
in identifying a target occupation or developing an
employability plan for the participant.
‘‘(B) If the participant and the case manager
do not agree on a target occupation or on a term or
condition of a proposed employability plan for the
participant, the case manager shall recommend a
target occupation or develop an employability plan
for the participant, as the case may be.
‘‘(C) Subject to subparagraph (A) of this para-
graph, the recommendations of the case manager
under subparagraph (B) of this paragraph with re-
spect to a matter in disagreement shall be binding
upon the participant and the State, unless the mat-
ter is otherwise resolved through the procedures es-
tablished under paragraph (1).
‘‘(D) The State shall ensure that the proce-
dures established under paragraph (1) are available
to resolve disputes over the matters described in
subparagraph (B) of this paragraph, and shall ad-
vise participants of such availability.’’.
(f) RECORDKEEPING.—Section 482 of such Act (42
U.S.C. 682) is amended by adding at the end the
following:
‘‘(j) RECORDKEEPING.—The State agency must
maintain a computerized recordkeeping system approved
by the Secretary that contains compatible information
about each participant in the program under this part,
including basic demographic data, the employability plan
and amendments to it, the results of tests and diagnoses,
services received, progress toward the goals of the employ-
ability plan, and job placement.’’.
(g) LONG-TERM MONITORING.—Section 482 of such
Act (42 U.S.C. 682), as amended by subsection (f) of this
section, is amended by adding at the end the following:
‘‘(k) LONG-TERM MONITORING.—The State agency
must maintain a system for monitoring the employment
status, wages, and benefits of each participant in the pro-
gram under this part for at least 18 months after such
participation is terminated in order to determine the suc-
cess of the program in facilitating long-term self-suffi-
ciency.’’.
SEC. 116. INCREASE IN JOBS PROGRAM FUNDING.
Section 403(k)(3) of the Social Security Act (42
U.S.C. 603(k)(3)) is amended by striking subparagraphs
(E) and (F) and inserting the following:
‘‘(E) $1,540,000,000 in the case of the fiscal
year 1995,
‘‘(F) $1,980,000,000 in the case of the fiscal
year 1996,
‘‘(G) $2,420,000,000 in the case of the fiscal
year 1997,
‘‘(H) $2,860,000,000 in the case of the fiscal
year 1998, and
‘‘(I) $3,300,000,000 in the case of the fiscal
year 1999.’’.
SEC. 117. INCREASE IN JOBS MATCHING RATE.
(a) IN GENERAL.—Section 403(l)(1)(A) of the Social
Security Act (42 U.S.C. 603(l)(1)(A)) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) in clause (ii)—
(A) by inserting ‘‘but do not exceed the
amount equal to 80 percent of the limitation
determined under subsection (k)(2) of this sec-
tion with respect to the State for fiscal year
1994’’ after ‘‘clause (i)’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(3) by adding at the end the following:
‘‘(iii) with respect to so much of such expendi-
tures in a fiscal year as exceed 80 percent of the
limitation determined under subsection (k)(2) of this
section with respect to the State for fiscal year
1994, the lesser of—
‘‘(I) the percentage described in clause (ii)
for the type of expenditures involved, increased
by 10 percentage points; or
‘‘(II) 90 percent.’’.
(b) INCREASE IN CHILD CARE MATCHING RATE.—
Section 402(g)(3)(A)(i) of the Social Security Act (42
U.S.C. 602(g)(3)(A)(i)) is amended to read as follows:
‘‘(3)(A)(i) In the case of amounts expended for child
care pursuant to paragraph (1)(A) by any State to which
section 1108 does not apply, the applicable rate for a fiscal
year for purposes of section 403(a) shall be—
‘‘(I) with respect to that portion of the total of
such expenditures as does not exceed the total of
such expenditures by the State for fiscal year 1994,
the Federal medical assistance percentage (as de-
fined in section 1905(b)); and
‘‘(II) with respect to the remainder of such ex-
penditures, the lesser of—
‘‘(aa) the percentage described in section
403(l)(1)(A)(ii)(II), increased by 10 percentage
points; or
‘‘(bb) 90 percent.’’.
SEC. 118. INCREASE IN REQUIRED JOBS PARTICIPATION
RATES.
(a) IN GENERAL.—Section 403(l)(3)(A) of the Social
Security Act (42 U.S.C. 603(l)(3)(A)) is amended—
(1) by striking ‘‘and’’ at the end of clause (v);
(2) by striking the period at the end of clause
(vi) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(vii) 25 percent, if such year is 1996;
‘‘(viii) 30 percent, if such year is 1997;
‘‘(ix) 35 percent, if such year is 1998; and
‘‘(x) 40 percent, if such year is 1999.’’.
(b) SCHEDULE
OF PENALTIES
FOR FAILURE
TO
MEET PARTICIPATION RATES.—Section 403(l)(3) of such
Act (42 U.S.C. 603(l)(3)) is amended—
(1) in subparagraph (A), by inserting ‘‘, with-
out good cause,’’ before ‘‘the State’s’’; and
(2) by amending subparagraph (E) to read as
follows:
‘‘(E) The Secretary shall, by regulation, prescribe a
schedule of penalties to be applied to a State that fails
to comply with subparagraph (A), the severity of which
shall be based on the extent of the noncompliance.’’.
(c) CONFORMING AMENDMENTS.—Section 204(b)(2)
of the Family Support Act of 1988 (42 U.S.C. 681 note)
is amended—
(1) by inserting ‘‘, and amended by section
118(a) of the Working Off Welfare Act of 1994’’
after ‘‘this Act’’; and
(2) by striking ‘‘1995’’ and inserting ‘‘1999’’.
SEC. 119. SIMPLIFICATION OF REPORTING REQUIREMENTS.
Section 402(a) of such Act (42 U.S.C. 602(a)), as
amended by sections 101(a), 103, and 108(b) of this Act,
is amended—
(1) in paragraph (47), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (48), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (48) the fol-
lowing:
‘‘(49) provide that the State—
‘‘(A) may not require a family to report
changes in family income until the net amount
of such changes, since the most recent such re-
port, equals or exceeds the reporting threshold;
‘‘(B) shall establish the reporting threshold
for purposes of subparagraph (A) at an amount
which shall be not less than $25 and not more
than $100; and
‘‘(C) may not impose a penalty on a family
by reason of any failure to report any change
in income that the State, pursuant to subpara-
graph (A), may not require to be reported.’’.
SEC. 120. STATE CASEWORKER TRAINING PROGRAMS.
Section 402(a) of such Act (42 U.S.C. 602(a)), as
amended by sections 101(a), 103, 108(b), and 119 of this
Act, is amended—
(1) in paragraph (48), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (49), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (49) the fol-
lowing:
‘‘(50) provide that the State agency shall design
and implement a program for the training of case-
workers who provide services under the State plan,
under which priority is to be given to training indi-
viduals who are caseworkers at the time the program
commences, and under which caseworkers should be
trained to advise recipients of aid under the State
plan of training opportunities in industries that uti-
lize new technologies, or in environmental engineer-
ing, environmental cleanup, advanced telecommuni-
cations, transportation, infrastructure, or computers,
employment for wages sufficient to meet or exceed
the State’s standard of need, and employment in
fields in which women constitute less than 25 per-
cent of the workforce.’’.
SEC. 121. USE OF JOBS FUNDS FOR CERTAIN OTHER PUR-
POSES.
(a) IN GENERAL.—Section 403(l)(1) of the Social Se-
curity Act (42 U.S.C. 603(l)(1)) is amended by adding
at the end the following:
‘‘(C) Expenditures by a State for any of the following
shall be considered an expense of operating the program
of the State under part F:
‘‘(i) The outstationing of caseworkers at com-
munity colleges for the purpose of enhancing access
of recipients of aid to families with dependent chil-
dren to higher education, and the use of such case-
workers to provide linkage between postsecondary
educational institutions and the private and public
sectors, including private industry councils, cham-
bers of commerce, and unions.
‘‘(ii) The entering into of contracts with public
or private entities for the creation of apprenticeship
programs which address the work and training needs
of recipients of aid to families with dependent chil-
dren (including the expansion of programs by creat-
ing additional apprenticeship slots with specific sup-
port for such recipients) and under which appren-
tices will be targeted for jobs in industries that uti-
lize new technologies, in environmental engineering,
environmental 
cleanup, 
advanced 
telecommuni-
cations, transportation, infrastructure, or computers,
for jobs that pay wages sufficient to meet or exceed
the State’s standard of need, and for jobs in fields
in which women constitute less than 25 percent of
the workforce.
‘‘(iii) The identification of recipients of aid to
families with dependent children and secondary
school students whose parents are recipients of such
aid, the provision to such recipients and such stu-
dents of information about opportunities in, and the
availability of, programs under the Job Training
Partnership Act, the School-to-Work Opportunities
Act of 1993, or the Carl D. Perkins Vocational and
Applied Technology Education Act in their area, and
the facilitation of the preparation of such recipients
and such students for such programs.
‘‘(iv) The non-Federal share of the compensa-
tion of students employed in the work-study pro-
gram under part C of title IV of the Higher Edu-
cation Act of 1965, and the establishment and im-
plementation of programs similar to the work-study
program for recipients of aid to families with de-
pendent children.
‘‘(v) The coordination of the program of the
State under part F with State and local programs
under the School-to-Work Opportunities Act of 1993
in order to provide enhanced opportunities for recipi-
ents of aid to families with dependent children to
take advantage of such State and local programs.
‘‘(vi) The implementation of programs to reduce
pregnancy rates and increase graduation rates at
schools for which the combined pregnancy and drop-
out rate is at least 30 percent, under which partici-
pation is required during every month of the year,
and under which caseworkers and program adminis-
trators work with schools and community health or-
ganizations in integrating the program with—
‘‘(I) programs under the School-to-Work
Opportunities Act of 1993;
‘‘(II) programs under parts B and C of
title II of the Job Training Partnership Act;
‘‘(III) programs under the Carl D. Perkins
Vocational and Applied Technology Education
Act;
‘‘(IV) school-based recreational programs;
‘‘(V) before- and after-school programs;
‘‘(VI) programs for the discussion of self-
esteem, parenting responsibilities, prenatal care
and nutrition, and child support responsibilities;
and
‘‘(VII) counseling.
‘‘(vii) The provision of stabilizing services to en-
able parents who have not attained 20 years of age
to participate in the integrated program described in
clause (vi).’’.
(b) ANNUAL REPORTS ON STATE EFFORTS TO FIND
EMPLOYMENT FOR WOMEN.—Section 402(a) of such Act
(42 U.S.C. 602(a)), as amended by sections 101(a), 103,
108(b), 119, and 120 of this Act, is amended—
(1) in paragraph (49), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (50), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (50) the
following:
‘‘(51) provide that, not later than December 31
of each year, the State shall submit to the Secretary
a report that details the efforts made by the State
to place women in fields in which women constitute
less than 25 percent of the workforce, the manner
in which the State determines which jobs to train
women for, and the percentages of men and women
that are placed in jobs.’’.
(c) USE OF WAGE RECORD DATA ON PARTICIPANTS
IN THE JOBS PROGRAM.—Section 482(a)(1) of such Act
(42 U.S.C. 682(a)(1)) is amended by redesignating sub-
paragraphs (C) and (D) as subparagraphs (D) and (E),
respectively, and by inserting after subparagraph (B) the
following:
‘‘(C) A State plan under this part must provide
that—
‘‘(i) the State agency must enter into an agree-
ment with the State agency responsible for admin-
istering the State unemployment compensation pro-
gram, which provides for the ongoing provision of
wage record data (with appropriate assurances to
protect confidentiality) on participants in the State
program operated under this part;
‘‘(ii) the State must use such wage record data,
in accordance with regulations prescribed by the
Secretary and the Secretary of Labor, to measure
outcomes of the components of the program, out-
comes for providers of services under the program,
and the extent to which participants in the program
become self-sufficient after such participation;
‘‘(iii) the State must use such wage record data
to report to the Secretary, pursuant to a schedule
prescribed by the Secretary, the average wages of
men who entered employment after participation in
the program, the average wages of women who en-
tered employment after participation in the program;
and
‘‘(iv) the State must submit to the Secretary a
report that describes the measures that the State
has undertaken, since the most recent review and
update of the State plan, to reduce any difference
between the average wages of such men and the av-
erage wages of such women.’’.
SEC. 122. CASE MANAGEMENT.
(a) ELIMINATION OF REGULATIONS THAT IMPOSE
OBSTACLES TO THE USE OF A CASE MANAGEMENT SYS-
TEM.—Not later than the effective date of this title, the
Secretary of Health and Human Services shall amend the
regulations prescribed under parts A and F of title IV of
the Social Security Act so as to remove any obstacle to
the implementation by the States of case management sys-
tems in the program of aid to families with dependent
children.
(b) FEDERAL PROVISION OF CASE MANAGEMENT
SERVICES.—The Office of Adolescent Pregnancy Preven-
tion in the Department of Health and Human Services
may provide referral to appropriate programs and services
for parents who have not attained 20 years of age and
are not recipients of aid to families with dependent chil-
dren under a State plan approved under part A of title
IV of the Social Security Act.
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 123. CHILD CARE BENEFITS.
(a) EXPANSION OF ELIGIBILITY; NOTICE OF ELIGI-
BILITY.—Section 402(g)(1)(A) of the Social Security Act
(42 U.S.C. 602(g)(1)(A)) is amended—
(1) in clause (ii)—
(A) by inserting ‘‘(I)’’ before ‘‘Each’’;
(B) by striking all that follows ‘‘children’’
and inserting ‘‘and the caretaker relative in the
family is working’’; and
(C) by adding after and below the end the
following:
‘‘(II) Each State agency shall assess the eligibility for
child care under this clause of each family who ceases to
receive aid to families with dependent children, without
regard to whether the family has applied for such care,
and in the notice of termination of such aid, shall notify
the family, in writing and orally, as appropriate, of its
right to child care under this clause, and include informa-
tion on the steps necessary to obtain such care and on
the rights and responsibilities of the family with respect
to the provision of such care.’’; and
(2) in clause (iii), by striking all that follows
‘‘clause (ii)’’ and inserting ‘‘until the family’s
monthly income exceeds 185 percent of the income
official poverty line (as defined by the Office of Man-
agement and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) for a family of the same
size as the family.’’.
(b) ADVANCE PAYMENTS.—Section 402(g)(1)(B) of
such Act (42 U.S.C. 602(g)(1)(B)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(B)’’;
(2) by redesignating clauses (i) through (v) as
subclauses (I) through (V), respectively; and
(3) by striking the 2nd sentence and inserting
the following:
‘‘(ii) When the State agency arranges for child care,
the agency shall take into account the individual needs of
the child.
‘‘(iii) The State agency shall make advance payments
for child care assistance to a family eligible for such care
if—
‘‘(I) an advance is required in order for the
family to secure or retain such care;
‘‘(II) the provider of such care will not provide
such care without payment in advance; or
‘‘(III) there will be a delay in reimbursing the
caretaker relative in the family for the cost of such
care or in applying subsection (a)(8)(A)(iii) to the
family.’’.
(c) STATE OPTION TO EXEMPT FAMILIES BELOW
POVERTY LEVEL FROM CONTRIBUTION REQUIREMENT.—
Section 402(g)(1)(A)(vii) of such Act (42 U.S.C.
602(g)(1)(A)(vii)) is amended—
(1) by inserting ‘‘(I)’’ after ‘‘(vii)’’; and
(2) by adding after and below the end the fol-
lowing:
‘‘(II) The State may elect not to apply subclause (I)
to any family whose income does not exceed the income
official poverty line (as defined by the Office of Manage-
ment and Budget, and revised annually in accordance with
section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) for a family of the same size as the family.’’.
(d) CHILD CARE FOR FAMILIES INCLUDING A CARE-
TAKER
RELATIVE
NOT
RECEIVING
AFDC.—Section
402(g)(1)(A) of such Act (42 U.S.C. 602(g)(1)(A)) is
amended by adding at the end the following:
‘‘(viii) In any case in which child care is determined
to be necessary for the caretaker relative of a child receiv-
ing aid to families with dependent children to accept or
retain employment, the State shall guarantee child care
whether or not the caretaker relative is receiving such aid,
and if the caretaker relative is not receiving such aid, the
State may apply a sliding fee scale to determine the appro-
priate contribution (if any) to the cost of care to be paid
by the caretaker.’’.
(e) AUTHORITY TO PROVIDE FOR CONTINUITY OF
CHILD CARE.—Section 402(g)(1)(A) of such Act (42
U.S.C. 602(g)(1)(A)), as amended by subsection (d) of
this section, is amended by adding at the end the follow-
ing:
‘‘(ix) A State may continue child care assistance with-
out interruption during breaks between otherwise allow-
able activities, and for a reasonable period of time after
any loss of employment, to ensure continuity of child care
arrangements for the child or children of a family eligible
to receive care under this paragraph.’’.
(f) DEPENDENT CARE DISREGARD NOT TO BE RE-
GARDED
AS
A
METHOD
OF
GUARANTEEING
CHILD
CARE.—Section 402(g)(1)(B) of such Act (42 U.S.C.
602(g)(1)(B)), as amended by subsection (b) of this sec-
tion, is amended by adding at the end the following:
‘‘(iv) Compliance with subsection (a)(8)(A)(iii) with
respect to a family shall not be construed to be a guaran-
tee of child care for the family pursuant to this sub-
section.’’.
SEC. 124. EXTENSION OF TRANSITIONAL CHILD CARE AND
MEDICAID BENEFITS.
(a) TRANSITIONAL CHILD CARE BENEFITS.—Section
304(b) of the Family Support Act of 1988 (42 U.S.C. 602
note) is amended—
(1) by striking ‘‘(1)’’; and
(2) by striking paragraph (2).
(b) TRANSITIONAL MEDICAID BENEFITS.—Section
303(f)(2) of such Act (42 U.S.C. 602 note) is amended—
(1) by striking ‘‘(A)’’; and
(2) by striking subparagraphs (B) and (C).
SEC. 125. TREATMENT OF CERTAIN SERVICES FOR PUR-
POSES OF CONTRACT AUTHORITY.
Section 485(b) of the Social Security Act (42 U.S.C.
685(b)) is amended by adding at the end the following:
‘‘A service shall not be considered to be otherwise available
on a nonreimbursable basis if the service is not appro-
priate to meet the identified needs of the participant to
whom the service is to be provided.’’.
Subtitle B—Earned Income Tax
Credit
SEC. 131. RECOMMENDATIONS FOR QUARTERLY PAYMENTS
OF EARNED INCOME CREDIT.
Within 6 months after the date of the enactment of
this Act, the Secretary of the Treasury shall submit to
the Congress recommendations for procedures under
which the Federal Government could, not less frequently
than quarterly, make advance payments of the earned in-
come credit under section 32 of the Internal Revenue Code
of 1986.
Subtitle C—Microenterprise and
Small Business Development
SEC. 141. DISREGARD OF INCOME AND RESOURCES DES-
IGNATED FOR EDUCATION, TRAINING, AND
EMPLOYABILITY.
(a) 
DISREGARD
FROM
RESOURCES.—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 ‘‘, or (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 preced-
ing 4 months or became ineligible for such aid dur-
ing the preceding 12 months because of excessive
earnings), any amount not to exceed $8,000 in a
qualified asset account (as defined in section 406(i))
of such family’’ before ‘‘; and’’.
(b) DISREGARD FROM INCOME.—
(1) IN GENERAL.—Section 402(a)(8)(A) of such
Act (42 U.S.C. 602(a)(8)(A)) is amended—
(A) by striking ‘‘and’’ at the end of clause
(vii); and
(B) by inserting after clause (viii) the fol-
lowing new clause:
‘‘(ix) shall disregard any interest or income
earned on a qualified asset account (as defined
in section 406(i)); and’’.
(2) 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 that this paragraph shall
not apply to earned or unearned income received 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
$8,000;’’.
(3) 
TREATMENT
AS
INCOME.—Section
402(a)(7) of such Act (42 U.S.C. 602(a)(7)) is
amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by striking the semicolon at the end of
subparagraph (C) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(D) shall treat as income any distribu-
tions from a qualified asset account (as defined
in section 406(i)(1)) which do not meet the def-
inition of a qualified distribution under section
406(i)(2);’’.
(c) QUALIFIED ASSET ACCOUNTS.—Section 406 of
such Act (42 U.S.C. 606) is amended by adding at the
end the following:
‘‘(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 distributions’ means dis-
tributions for expenses directly related to one 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.’’.
(d) STUDY OF USE OF QUALIFIED ASSET ACCOUNTS;
REPORT.—The Secretary of Health and Human Services
shall conduct a study of the use of qualified asset accounts
established pursuant to the amendments made by this sec-
tion, and shall report on such study and any recommenda-
tions for modifications of such amendments to the Com-
mittee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives not later
than January 1, 1996.
(e) REPORT
ON AFDC ASSET LIMIT
ON AUTO-
MOBILES.—Within 3 months after the date of the enact-
ment of this Act, the Secretary of Health and Human
Services shall submit to the Congress a report on—
(1) the need to revise the limitation, established
in regulations pursuant to section 402(a)(7)(B)(i) of
the Social Security Act, on the value of a family
automobile required to be disregarded by a State in
determining the eligibility of the family for aid to
families with dependent children under the State
plan approved under part A of title IV of such Act;
and
(2) the extent to which such a revision would
increase the employability of recipients of such aid.
SEC. 142. DISREGARD OF INCOME AND RESOURCES RELAT-
ED TO SELF-EMPLOYMENT.
(a) STATE PLAN REQUIREMENTS.—Section 402(a)
of the Social Security Act (42 U.S.C. 602(a)), as amended
by sections 101(a), 103, 108(b), 119, 120, and 121(b) of
this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(50);
(2) by striking the period at the end of para-
graph (51) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (51) the
following:
‘‘(52) at the option of the State, provide that
the State agency—
‘‘(A)(i) shall not include as a resource of
the family of which a child referred to in para-
graph (7)(A) is a member, for purposes of
paragraph (7)(B), 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 the child or by a relative or other individual
referred to in paragraph (7)(A), for a period
not to exceed 2 years; and
‘‘(ii) shall take into consideration as
earned income of the family of which the child
is a member, only the net profits (as defined in
section 406(j)(2)) of such microenterprises, for
a period not to exceed 2 years; and
‘‘(B) shall ensure that caseworkers are
able to properly advise recipients of aid under
the State plan of the option of microenterprise
as a legitimate route towards self-sufficiency,
and that caseworkers encourage recipients of
such aid who are interested in starting a
microenterprise to participate in a program de-
signed to assist them in such effort.’’.
(b) DEFINITIONS.—Section 406 of such Act (42
U.S.C. 606), as amended by section 141(c) of this Act,
is amended by adding at the end the following:
‘‘(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;
‘‘(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.’’.
(c) INCLUSION OF MICROENTERPRISE TRAINING AND
ACTIVITIES IN THE JOBS PROGRAM.—
(1) IN GENERAL.—Section 482(d)(1) of such
Act (42 U.S.C. 682(d)(1)) is amended by adding at
the end the following:
‘‘(C) The services and activities referred to in sub-
paragraph (A)—
‘‘(i) in the case that at least 3 percent of the
adult recipients of aid under the State plan approved
under part A (as of the close of the immediately pre-
ceding 
fiscal 
year) 
elect 
to 
participate 
in
microenterprise activities, shall include programs de-
scribed in paragraph (5); or
‘‘(ii) in the case that not more than 3 percent
of the adult recipients of such aid elect to partici-
pate in microenterprise activities, may include pro-
grams described in paragraph (5).’’.
(2) 
MICROENTERPRISE
PROGRAMS.—Section
482(d) of such Act (42 U.S.C. 682(d)), as amended
by section 115(d)(2) of this Act, is amended by add-
ing at the end the following:
‘‘(5) The programs described in this paragraph are
programs of public and private organizations, agencies,
and other entities (including nonprofit and for-profit enti-
ties) to enable such entities to facilitate economic develop-
ment by—
‘‘(A) providing technical assistance, advice, and
business support services (including assistance, ad-
vice, and support relating to business planning, fi-
nancing, marketing, and other microenterprise devel-
opment activities) to owners of microenterprises and
persons developing microenterprises; and
‘‘(B) providing general support (such as peer
support and self-esteem programs) to owners of
microenterprises 
and 
persons 
developing
microenterprises.’’.
Subtitle D—Effective Date
SEC. 151. EFFECTIVE DATE.
(a) IN GENERAL.—This title and the amendments
made by this title shall take effect on October 1, 1995,
and shall apply to payments under part A of title IV, and
title XIX, of the Social Security Act for quarters begin-
ning on or after such date.
(b) EARLY APPLICABILITY AT STATE OPTION.—
(1) ELECTION.—Any State may elect for this
title and the amendments made by this title to apply
to the State for quarters beginning before the end
of the date specified in subsection (a).
(2) EARLY APPLICABILITY.—This title and the
amendments made by this title shall apply to pay-
ments to a State under part A of title IV, and title
XIX, of the Social Security Act for quarters begin-
ning after the Secretary of Health and Human Serv-
ices receives from the State a notice that the State
has made the election described in paragraph (1).
TITLE II—FEDERAL JOB
TRAINING PROGRAM REFORMS
Subtitle A—Studies and Reports
SEC. 201. DEPARTMENTS OF EDUCATION, HEALTH AND
HUMAN SERVICES, AND LABOR STUDIES AND
REPORTS.
(a) STUDIES.—The Secretary of Education, the Sec-
retary of Health and Human Services, and the Secretary
of Labor shall each conduct a study to review the effective-
ness of the Federal job training programs under the juris-
dictions of each such Secretary, respectively, including—
(1) the extent to which such programs are suc-
cessful at placing both male and female participants
into unsubsidized employment; and
(2) the average starting wages and benefits of
such participants in such employment.
(b) REPORTS.—Not later than 1 year after the date
of the enactment of this Act, each Secretary specified in
subsection (a) shall submit to the Congress a report con-
taining—
(1) the results of the study carried out by each
such Secretary under subsection (a), respectively;
and
(2) recommendations for legislation to increase
the effectiveness of the Federal job training pro-
grams under the jurisdiction of each such Secretary,
respectively, including recommendations—
(A) to change or eliminate provisions of
law or regulations that restrict or prohibit indi-
viduals with low incomes and their families
from receiving services under such programs;
and
(B) to eliminate discrepancies in wages
and benefits based on gender.
SEC. 202. GENERAL ACCOUNTING OFFICE STUDY AND
REPORT.
(a) STUDY.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study to review
the effectiveness of the Federal job training pro-
grams under the jurisdictions of the Secretary of
Education, the Secretary of Health and Human
Services, and the Secretary of Labor, including the
extent to which such programs are successful at
placing both male and female participants into
unsubsidized employment at wages which are not
less than 130 percent of the income official poverty
line (as defined by the Office of Management and
Budget, and revised annually in accordance with sec-
tion 673(2) of the Omnibus Budget Reconciliation
Act of 1981), applicable to a family of the size
involved.
(2) CONDUCT OF STUDY.—In carrying out the
study under paragraph (1), the Comptroller General
of the United States shall—
(A) identify the various categories of indi-
viduals that such programs are intended to
serve and determine the extent to which such
categories of individuals are actually being
served under such programs; and
(B) identify any outcome measures cur-
rently used by the Department of Education,
the Department of Health and Human Services,
and the Department of Labor in the Federal
job training programs under the jurisdictions of
such Departments.
(b) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Comptroller General of
the United States shall submit to the Congress a report
containing the results of the study carried out under sub-
section (a).
Subtitle 
B—Economic 
Self-Suffi-
ciency Standards for Federal
Job Training Programs
SEC. 211. ESTABLISHMENT OF STANDARDS.
(a) IN GENERAL.—Not later than 1 year after the
date of the enactment of this Act, the Secretary of Edu-
cation, the Secretary of Health and Human Services, and
the Secretary of Labor shall, in accordance with either the
formula under section 212 or the formula under section
213, jointly develop and publish in the Federal Register
proposed standards that measure the minimum amount of
wages and employment benefits that a participant enrolled
in a Federal job training program under the jurisdiction
of each such Secretary, respectively, should receive after
termination from such program to ensure the long-term
economic self-sufficiency of such participant.
(b) PUBLIC REVIEW
AND COMMENT.—Each Sec-
retary specified in subsection (a) shall provide for public
review and comment of the proposed standards developed
by each such Secretary, respectively, not later than the
60-day period beginning on the date such standards are
published in the Federal Register.
(c) FINAL STANDARDS.—Not later than 4 months
after the end of the 60-day period described in subsection
(b), each Secretary specified in subsection (a) shall develop
and publish in the Federal Register final standards.
SEC. 212. POVERTY LINE AND REGIONAL HOUSING BASED
FORMULA.
A Secretary who elects to develop proposed standards
in accordance with this section shall make significant
progress toward ensuring that each participant enrolled
in a Federal job training program receives services under
such program so that upon termination from such pro-
gram such participant receives, or is a member of a family
which receives, a total income which is not less than the
sum of—
(1) 130 percent of the income official poverty
line (as defined by the Office of Management and
Budget, and revised annually in accordance with sec-
tion 673(2) of the Omnibus Budget Reconciliation
Act of 1981) applicable to a family of the size in-
volved; and
(2) the amount (if any) by which the regional
housing costs for a family residing in the State (as
determined by the Secretary of Housing and Urban
Development) exceed the national average housing
costs for a family (as so determined).
SEC. 213. FAMILY, HOUSING, AND RELATED FACTORS
BASED FORMULA.
A Secretary who elects to develop proposed standards
in accordance with this section shall ensure that each par-
ticipant enrolled in a Federal job training program re-
ceives services under such program so that upon termi-
nation from such program such participant receives, or is
a member of a family which receives, an appropriate total
income which takes into account the following factors:
(1) The participant’s family size and composi-
tion, including the number and age of dependent
adults and children.
(2) 100 percent of the average housing costs,
which shall be based on the fair market rental in ef-
fect for the market area in which the participant re-
sides, as established by the Secretary of Housing
and Urban Development pursuant to section 8(c) of
the United States Housing Act of 1937.
(3) 100 percent of the average child care costs
(differentiated by the age of each child), which may
be based on the actual cost of such care established
under section 402(g)(1)(C)(i)(I) the Social Security
Act or the applicable local market rate established
under clause (ii) of such section.
(4) 100 percent of the average adult dependent
care costs, which may be based on local surveys or
the local average of such costs.
(5) 100 percent of the average health care
costs, which shall include costs incurred for full fam-
ily health care coverage (including premiums,
deductibles, and copayments), and which may be
based on local surveys or the local average of such
costs.
(6) 100 percent of the average transportation
costs, which may be based on local surveys or the
local average of such costs.
(7) 100 percent of the food costs, which shall
be equal to 1⁄3 of the official poverty line (as defined
by the Office of Management and Budget, and re-
vised annually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of 1981 (42
U.S.C. 9902(2)).
(8) 100 percent of the average work-related
costs, which shall include the cost of uniforms, tools,
and other appropriate work-related costs.
SEC. 214. ECONOMIC SELF-SUFFICIENCY DEFINED.
For purposes of this subtitle, the term ‘‘economic
self-sufficiency’’ means the ability of an individual to meet
the following basic needs for the individual and such indi-
vidual’s family:
(1) Housing.
(2) Child care.
(3) Adult dependent care.
(4) Food.
(5) Transportation.
(6) Health care.
(7) Work-related expenses.
Subtitle C—Effective Date
SEC. 221. EFFECTIVE DATE.
This title shall take effect on October 1, 1995.
TITLE III—CHILD SUPPORT
ENFORCEMENT
SEC. 301. NATIONAL CHILD SUPPORT ORDER REGISTRY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall establish in the Internal Revenue Service
a national registry of all child support orders.
(2) CHILD
SUPPORT
ORDER
DEFINED.—As
used in this section, the term ‘‘child support order’’
means an order, issued or modified by a State court
or an administrative process established under State
law, that requires an individual to make payments
‘‘(D) within 5 years after the date of the
enactment of this paragraph, a copy of each
child support issued or modified in the State
which has not been transmitted pursuant to
subparagraph (B) or (C) and which a party to
the order has requested be sent to the national
child support order registry be transmitted to
the registry; and
‘‘(E) with each order transmitted pursuant
to subparagraph (B), (C), or (D)—
‘‘(i) a notice is included as to the date
the order is required or scheduled to be re-
viewed by a court or an administrative
process established under State law; and
‘‘(ii) a certified statement of arrears
(if any) owed under the order is included
if a party to the order is receiving services
under the State plan.’’.
(c) MAINTENANCE OF ABSTRACTS OF CHILD SUP-
PORT ORDERS.—The national registry shall maintain an
abstract of each child support order, which shall contain
the following information:
(1) The names, addresses, and social security
account numbers of each individual with rights or
obligations under the order, to the extent that the
authority that issued the order has not prohibited
the release of such information.
(2) The name and date of birth of any child
with respect to whom payments are to be made
under the order.
(3) The dollar amount of child support required
to be paid on a monthly basis under the order.
(4) The date the order was issued or most re-
cently modified, and each date the order is required
or scheduled to be reviewed by a court or an admin-
istrative process established under State law.
(5) Any orders superseded by the order.
(6) Such other information as the Secretary of
the Treasury, in consultation with the Secretary of
Health and Human Services, shall, by regulation
require.
(d) PROVISION OF CHILD SUPPORT INFORMATION TO
EMPLOYERS.—Upon receipt from an employer of a W–
4 form completed pursuant to section 302(b) of this Act
by an employee of the employer, the national registry shall
report to the employer such information as the national
registry may have as to—
(1) whether the employee has a legal obligation
to provide child support (as defined in section
462(b) of the Social Security Act) which is to be col-
lected, in whole or in part, through wage withholding
pursuant to an order issued by a State court or an
order of an administrative process established under
State law; and
(2) the aggregate amount of all such obliga-
tions.
SEC. 302. MODIFICATION OF W–4 REPORTING REQUIRE-
MENTS TO PROVIDE FOR REPORTING OF
CHILD SUPPORT OBLIGATIONS OF EMPLOY-
EES.
(a) ESTABLISHMENT OF REPORTING SYSTEM.—The
Secretary of the Treasury, in consultation with the Sec-
retary of Labor, shall establish a system for the reporting
of information relating to child support obligations of em-
ployees that meets the requirements of this section.
(b) EMPLOYEE OBLIGATIONS.—Under the system,
each employee shall be required to file with the employer
of the employee, within 5 days after the later of the effec-
tive date of this section or the date the employee is hired,
a W–4 form that indicates—
(1) whether the employee has a legal obligation
to provide child support (as defined in section
462(b) of the Social Security Act) which is to be col-
lected, in whole or in part, through wage withholding
pursuant to an order issued by a State court or an
order of an administrative process established under
State law; and
(2) if so—
(A) the aggregate amount of all such obli-
gations; and
(B) the name and address of any person to
whom the employee has such an obligation.
(c) EMPLOYER OBLIGATIONS.—
(1) IN GENERAL.—Subtitle C of the Internal
Revenue Code of 1986 (relating to employment
taxes) is amended by inserting after chapter 24 the
following new chapter:
‘‘CHAPTER 24A—COLLECTION OF CHILD
SUPPORT OBLIGATIONS AT SOURCE
ON WAGES
‘‘Sec. 3411. Child support obligations collected at source.
‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT
SOURCE.
‘‘(a) REQUIREMENT OF WITHHOLDING.—
‘‘(1) WAGE
WITHHOLDING
AS
INDICATED
BY
THE
EMPLOYEE.—Each employer who receives a
completed W–4 form from an employee pursuant to
section 302(b) of the Working Off Welfare Act of
1994 which indicates that the employee has a legal
obligation to provide child support (as defined in
section 462(b) of the Social Security Act) shall—
‘‘(A) deduct and withhold from the wages
of the employee the amount indicated on the
W–4 form as a child support obligation;
‘‘(B) send such amount to Secretary; and
‘‘(C) forward the form to the national child
support order registry.
‘‘(2) CORRECTION OF WITHHOLDING INSTRUC-
TIONS.—If the national child support order registry
notifies the employer that an employee has an obli-
gation referred to in paragraph (1), the employer
shall—
‘‘(A) deduct and withhold from the wages
of the employee the greater of—
‘‘(i) the amount indicated on the W–
4 form as a child support obligation; or
‘‘(ii) the amount that such registry in-
dicates is to be deducted and withheld
from the wages of the employee to satisfy
such obligation; and
‘‘(B) send the amount so withheld to the
Secretary.
‘‘(b) CERTAIN OBLIGATIONS EXEMPT.—This section
shall not apply to a child support obligation if the order
requiring payment of such obligation specifies that such
obligation is exempt from the requirements of this section.
‘‘(c) LIABILITY FOR PAYMENT.—The employer shall
be liable for the payment of amounts deducted and with-
held under subsection (a) to the Secretary.
‘‘(d) NATIONAL
CHILD
SUPPORT
ORDER
REG-
ISTRY.—For purposes of this section, the term ‘national
child support order registry’ means the national registry
of all child support orders established under section 301
of the Working Off Welfare Act of 1994.
‘‘(e) SPECIAL RULES.—For purposes of this chapter
(and so much of subtitle F as relates to this chapter), any
amount required to be deducted and withheld under this
section shall be treated as if it were a tax withheld under
chapter 24 and rules similar to the rules of chapter 24
shall apply.’’
(2) CLERICAL
AMENDMENT.—The table of
chapters for subtitle C of such Code is amended by
inserting after the item relating to chapter 24 the
following new item:
‘‘Chapter 24A. Child support obligations collected at source.’’
SEC. 303. COLLECTION OF CHILD SUPPORT.
(a) IN GENERAL.—Chapter 77 of the Internal Reve-
nue Code of 1986 (relating to miscellaneous provisions)
is amended by adding at the end thereof the following new
section: