Personal Responsibility and Work Opportunity Reconciliation Act of 1996
PL 104-193 (H.R.3734), enacted 08/22/1996

PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2105 
Public Law 104-193 
104th Congress 
An Act 
To provide for reconciliation pursuant to section 201(aXl) of the concurrent resolution 
on the budget for fiscal year 1997. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996". 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY 
FAMILIES 
Sec. 101. Findings. 
Sec. 102. Reference to Social Security Act. 
Sec. 103. Block grants to States. 
Sec. 104. Services provided by charitable, religious, or private organizations. 
Sec. 105. Census aata on grandparents as primary caregivers for their grand-
children. 
Sec. 106. Report on data processing. 
Sec. 107. Study on alternative outcomes measures. 
Sec. 108. Conforming amendments to the Social Security Act. 
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related pro-
visions. 
Sec. 110. Conforming amendments to other laws. 
Sec. 111. Development of prototype of counterfeit-resistant Social Security card re-
quired. 
Sec. 112. Modifications to the job opportunities for certain low-income individuals 
program. 
Sec. 113. Secretarial submission of legislative proposal for technical and conforming 
amendments. 
Sec. 114. Assuring medicaid coverage for low-income families. 
Sec. 115. Denial of assistance and benefits for certain drug-related convictions. 
Sec. 116. Effective date; transition rule. 
TITLE II—SUPPLEMENTAL SECURITY INCOME 
Sec. 200. Reference to Social Security Act. 
Subtitle A—Eligibility Restrictions 
Sec. 201. Denial of SSI benefits for 10 years to individuals found to have fraudu-
lently misrepresented residence in order to obtain benefits simulta-
neously in 2 or more States. 
Sec. 202. Denial of SSI benefits for fiigitive felons and probation and parole viola-
tors. 
Sec. 203. Treatment of prisoners. 
Sec. 204. Effective date of application for benefits. 
Subtitle B—Benefits for Disabled Children 
Sec. 211. Definition and eligibiUty rules. 
Sec. 212. Eligibility redeterminations and continuing disability reviews. 
Aug. 22, 1996 
[H.R. 3734] 
Personal 
ResponsibiUty 
and Work 
Opportunity 
Reconciliation 
Act of 1996. 
42 u s e 1305 
note. 
110 STAT. 2106 
PUBLIC LAW 104-193—AUG. 22, 1996 
Sec. 213. Additional accountability requirements. 
Sec. 214. Reduction in cash benetits payable to institutionalized individuals whose 
medical costs are covered by private insurance. 
Sec. 215. Regulations. 
Subtitle C—Additional Enforcement Provision 
Sec. 221. Installment pa3nnent of large past-due supplemental security income ben-
efits. 
Sec. 222. Regulations. 
Subtitle D—Studies Regarding Supplemental Security Income Program 
Sec. 231. Annual report on the supplemental security income program. 
Sec. 232. Study by General Accounting Office. 
TITLE III—CHILD SUPPORT 
Sec. 300. Reference to Social Security Act. 
Subtitle A—Eligibility for Services; Distribution of Pa3anents 
Sec. 301. State obligation to provide child support enforcement services. 
Sec. 302. Distribution of child support collections. 
Sec. 303. Privacy safeguards. 
Sec. 304. Rights to notification of hearings. 
Subtitle B—^Locate and Case Tracking 
Sec. 311. State case registry. 
Sec. 312. Collection and disbursement of support pa3mients. 
Sec. 313. State directory of new hires. 
Sec. 314. Amendments concerning income withholding. 
Sec. 315. Locator information from interstate networks. 
Sec. 316. Expansion of the Federal Parent Locator Service. 
Sec. 317. Collection and use of Social Security numbers for use in child support en-
forcement. 
Subtitle C—Streamlining and Uniformity of Procedures 
Sec. 321. Adoption of uniform State laws. 
Sec. 322. Improvements to full faith and credit for child support orders. 
Sec. 323. Administrative enforcement in interstate cases. 
Sec. 324. Use of forms in interstate enforcement. 
Sec. 325. State laws providing expedited procedures. 
Subtitle D—Paternity Establishment 
Sec. 331. State laws concerning paternity establishment. 
Sec. 332. Outreach for voluntary paternity establishment. 
Sec. 333. Cooperation by applicants for and recipients of part A assistance. 
Subtitle E—Program Administration and Fimding 
Sec. 341. Performance-based incentives and penalties. 
Sec. 342. Federal and State reviews and audits. 
Sec. 343. Required reporting procedures. 
Sec. 344. Automated data processing requirements. 
Sec. 345. Technical assistance. 
Sec. 346. Reports and data collection by the Secretary. 
Subtitle F—Establishment and Modification of Support Orders 
Sec. 351. Simplified process for review and adjustment of child support orders. 
Sec. 352. Furnishing consumer reports for certain purposes relating to child sup-
port. 
Sec. 353. Nonliability for financial institutions providing financial records to State 
child support enforcement agencies in child support cases. 
Subtitle G—Enforcement of Support Orders 
Sec. 361. Internal Revenue Service collection of arrearages. 
Sec. 362. Authority to collect support from Federal employees. 
Sec. 363. Enforcement of child support obligations of members of the Armed Forces. 
Sec. 364. Voiding of fraudulent transfers. 
Sec. 365. Work requirement for persons owing past-due child support. 
Sec. 366. Definition of support order. 
Sec. 367. Reporting arrearages to credit bureaus. 
Sec. 368. Liens. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2107 
Sec. 369. State law authorizing suspension of licenses. 
Sec. 370. Denial of passports for nonpayment of child support. 
Sec. 371. International support enforcement. 
Sec. 372. Financial institution data matches. 
Sec. 373. Enforcement of orders against paternal or maternal grandparents in 
cases of minor parents. 
Sec. 374. Nondischargeability in bankruptcy of certain debts for the support of a 
child. 
Sec. 375. Child support enforajment for Indian tribes. 
Subtitle H—Medical Support 
Sec. 381. Correction to ERISA definition of medical child support order. 
Sec. 382. Enforcement of orders for health care coverage. 
Subtitle I—Enhancing Responsibility and Opportunity for Non-Residential Parents 
Sec. 391. Grants to States for access and visitation programs. 
Subtitle J—Effective Dates and Conforming Amendments 
Sec. 395. Effective dates and conforming amendments. 
TITLE IV—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS 
Sec. 400. Statements of national policy concerning welfare and immigration. 
Subtitle A—Eligibility for Federal Benefits 
Sec. 401. Aliens who are not qualified aliens ineligible for Federal public benefits. 
Sec. 402. Limited eli^bilitv of qualified aliens for certain Federal programs. 
Sec. 403. Five-year limited eligibility of qualified aliens for Federal means-tested 
public benefit. 
Sec. 404. Notification and information reporting. 
Subtitle B—Eligibility for State and Local Public Benefits Programs 
Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible for State 
and local public benefits. 
Sec. 412. State authority to limit eligibility of qualified aliens for State public bene-
fits. 
Subtitle C—^Attribution of Income and Affidavits of Support 
Sec. 421. Federal attribution of sponsor's income and resources to alien. 
Sec. 422. Authority for States to provide for attribution of sponsors income and re-
sources to the alien with respect to State programs. 
Sec. 423. Requirements for sponsor's affidavit of support. 
Subtitle D—General Provisions 
Sec. 431. Definitions. 
Sec. 432. Verification of eligibility for Federal public benefits. 
Sec. 433. Statutory construction. 
Sec. 434. Communication between State and local government agencies and the Im-
migration and Naturalization Service. 
Sec. 435. Qualifying quarters. 
Subtitle E—Conforming Amendments Relating to Assisted Housing 
Sec. 441. Conforming amendments relating to assisted housing. 
Subtitle F—^Earning Income Credit Denied to Unauthorized Employees 
Sec. 451. Earned income credit denied to individuals not authorized to be employed 
in the United States. 
TITLE V—CHILD PROTECTION 
Sec. 501. Authority of States to make foster care maintenance payments on behalf 
of children in any private child care institution. 
Sec. 502. Extension of enhanced match for implementation of statewide automated 
child welfare information systems. 
Sec. 503. National random sample study of child welfare. 
Sec. 504. Redesignation of section 1123. 
Sec. 505. Kinship care. 
TITLE VI—CHILD CARE 
Sec. 601. Short title and references. 
Sec. 602. Goals. 
110 STAT. 2108 
PUBLIC LAW 104-193—AUG. 22, 1996 
Sec. 603. Authorization of appropriations and entitlement authority. 
Sec. 604. Lead agency. 
Sec. 605. AppUcation and plan. 
Sec. 606. Limitation on State allotments. 
Sec. 607. Activities to improve the quality of child care. 
Sec. 608. Repeal of early childhood development and before- and after-school care 
requirement. 
Sec. 609. Administration and enforcement. 
Sec. 610. Pajrments. 
Sec. 611. Annual report and audits. 
Sec. 612. Report by the Secretary. 
Sec. 613. Allotments. 
Sec. 614. Definitions. 
Sec. 615. Effective date. 
TITLE VII—CHILD NUTRITION PROGRAMS 
Subtitle A—National School Lunch Act 
Sec. 701. State disbursement to schools. 
Sec. 702. Nutritional and other program requirements. 
Sec. 703. Free and reduced price policy statement. 
Sec. 704. Special assistance. 
Sec. 705. Miscellaneous provisions and definitions. 
Sec. 706. Summer food service program for children. 
Sec. 707. Commodity distribution. 
Sec. 708. Child and adult care food program. 
Sec. 709. Pilot projects. 
Sec. 710. Reduction of paperwork. 
Sec. 711. Information on income eligibility. 
Sec. 712. Nutrition guidance for child nutrition programs. 
Subtitle B—Child Nutrition Act of 1966 
Sec. 721. Special milk program. 
Sec. 722. Free and reduced price policy statement. 
Sec. 723. School breakfast program authorization. 
Sec. 724. State administrative expenses. 
Sec. 725. Regulations. 
Sec. 726. Prohibitions. 
Sec. 727. Miscellaneous provisions and definitions. 
Sec. 728. Accounts and records. 
Sec. 729. Special supplemental nutrition program for women, infants, and children. 
Sec. 730. Cash grants for nutrition education. 
Sec. 731. Nutrition education and training. 
Subtitle C—Miscellaneous Provisions 
Sec. 741. Coordination of school lunch, school breakfast, and summer food service 
programs. 
Sec. 742. Requirements relating to provision of benefits based on citizenship, 
alienage, or immigration status under the National School Lunch Act, 
the Child Nutrition Act of 1966, and certain other acts. 
TITLE VIII—FOOD STAMPS AND COMMODITY DISTRIBUTION 
Subtitle A—Food Stamp Program 
Sec. 801. Definition of certification period. 
Sec. 802. Definition of coupon. 
Sec. 803. Treatment of children living at home. 
Sec. 804. Adjustment of thrifty food plan. 
Sec. 805. Definition of homeless individual. 
Sec. 806. State option for eligibility standards. 
Sec. 807. Earnings of students. 
Sec. 808. Energy assistance. 
Sec. 809. Deductions from income. 
Sec. 810. Vehicle allowance. 
Sec. 811. Vendor payments for transitional housing counted as income. 
Sec. 812. Simplified calculation of income for the self-employed. 
Sec. 813. Doubled penalties for violating food stamp program requirements. 
Sec. 814. Disqualification of convicted individuals. 
Sec. 815. Disqualification. 
Sec. 816. Caretaker exemption. 
Sec. 817. Employment and training. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2109 
Sec. 818. Food stamp eligibility. 
Sec. 819. Comparable treatment for disqualification. 
Sec. 820. Disqualification for receipt of multiple food stamp benefits. 
Sec. 821. Disqualification of fleeing felons. 
Sec. 822. Cooperation with child support agencies. 
, , 
Sec. 823. Disqualification relating to child support arrears. 
Sec. 824. Work requirement. 
Sec. 825. Encouragement of electronic benefit transfer systems. 
Sec. 826. Value of minimum allotment. 
Sec. 827. Benefits on recertification. 
Sec. 828. Optional combined allotment for expedited households. 
Sec. 829. Failure to comply with other means-tested public assistance programs. 
Sec. 830. Allotments for households residing in centers. 
Sec. 831. Condition precedent for approval of retail food stores and wholesale food 
concerns. 
Sec. 832. Authority to establish authorization periods. 
Sec. 833. Information for verifying eligibility for authorization. 
Sec. 834. Waiting period for stores that fail to meet authorization criteria. 
Sec. 835. Operation of food stamp offices. 
Sec. 836. State employee and training standards. 
Sec. 837. Exchange of law enforcement information. 
Sec. 838. Expedited coupon service. 
Sec. 839. Withdrawing fair hearing requests. 
Sec. 840. Income, eligibility, and immigration status verification systems. 
Sec. 841. Investigations. 
Sec. 842. Disqualification of retailers who intentionally submit falsified applica-
tions. 
Sec. 843. Disqualification of retailers who are disqualified under the WIC program. 
Sec. 844. Collection of overissuances. 
Sec. 845. Authority to suspend stores violating program requirements pending ad-
ministrative and judicial review. 
Sec. 846. Expanded criminal forfeiture for violations. 
Sec. 847. Limitation on Federal match. 
Sec. 848. Standards for administration. 
Sec. 849. Work supplementation or support program. 
Sec. 850. Waiver authority. 
, . 
Sec. 851. Response to waivers. 
Sec. 852. Employment initiatives program. 
Sec. 853. Reauthorization. 
Sec. 854. Simplified food stamp program. 
Sec. 855. Study of the use of food stamps to purchase vitamins and minerals. 
Sec. 856. Deficit reduction. 
Subtitle B—(Commodity Distribution Programs 
Sec. 871. Emergency food assistance program. 
Sec. 872. Food bank demonstration project. 
Sec. 873. Hunger prevention programs. 
Sec. 874. Report on entitlement commodity processing. 
Subtitle C—Electronic Benefit Transfer Systems 
Sec. 891. Provisions to encourage electronic benefit transfer systems. 
TITLE K—MISCELLANEOUS 
Sec. 901. Appropriation by Stat« legislatures. 
Sec. 902. Sanctioning for testing positive for controlled substances. 
Sec. 903. Elimination of housing assistance with respect to fugitive felons and pro-
bation and parole violators. 
Sec. 904. Sense of the Senate regarding the inability of the noncustodial parent to 
pay child support. 
Sec. 905. Establishing national goals to prevent teenage pregnancies. 
Sec. 906. Sense of the Senate regarding enforcement of statutory rape laws. 
Sec. 907. Provisions to encourage electronic benefit transfer systems. 
Sec. 908. Reduction of block grtints to States for social services; use of vouchers. 
Sec. 909. Rules relating to denial of earned income credit on basis of disqualified 
income. 
Sec. 910. Modification of adjusted gross income definition for earned income credit. 
Sec. 911. Fraud under means-tested welfare and public assistance programs. 
Sec. 912. Abstinence education. 
Sec. 913. Change in reference. 
110 STAT. 2110 
PUBLIC LAW 104-193—AUG. 22, 1996 
TITLE I—BLOCK GRANTS FOR TEM-
PORARY ASSISTANCE FOR NEEDY 
FAMILIES 
42 use 601 note. 
SEC. 101. FINDINGS. 
The Congress makes the following findings: 
(1) Marriage is the foundation of a successful society. 
(2) Marriage is an essential institution of a successful 
society which promotes the interests of children. 
(3) Promotion of responsible fatherhood and motherhood 
is integral to successful child rearing and the well-being of 
children. 
(4) In 1992, only 54 percent of single-parent families with 
children had a child support order established and, of that 
54 percent, only about one-half received the full amount due. 
Of the cases enforced through the public child support enforce-
ment system, only 18 percent of the caseload has a collection. 
(5) The number of individuals receiving aid to families 
with dependent children (in this section referred to as "AFDC") 
has more than tripled since 1965. More than two-thirds of 
these recipients are children. Eighty-nine percent of children 
receiving AFDC benefits now live in homes in which no father 
is present. 
(A)(i) The average monthly number of children receiv-
ing AFDC benefits— 
(I) was 3,300,000 in 1965; 
(II) was 6,200,000 in 1970; 
(III) was 7,400,000 in 1980; and 
(IV) was 9,300,000 in 1992. 
(ii) While the number of children receiving AFDC bene-
fits increased nearly threefold between 1965 and 1992, 
the total number of children in the United States aged 
0 to 18 has declined by 5.5 percent. 
(B) The Department of Health and Human Services 
has estimated that 12,000,000 children will receive AFDC 
benefits within 10 years. 
(C) The increase in the number of children receiving 
public assistance is closely related to the increase in births 
to unmarried women. Between 1970 and 1991, the percent-
age of live births to unmarried women increased nearly 
threefold, fi-om 10.7 percent to 29.5 percent. 
(6) The increase of out-of-wedlock pregnancies and births 
is well documented as follows: 
(A) It is estimated that the rate of nonmarital teen 
pregnancy rose 23 percent fi*om 54 pregnancies per 1,000 
unmarried teenagers in 1976 to 66.7 pregnancies in 1991. 
The overall rate of nonmarital pregnancy rose 14 percent 
from 90.8 pregnancies per 1,000 unmarried women in 1980 
to 103 in both 1991 and 1992. In contrast, the overall 
pregnancy rate for married couples decreased 7.3 percent 
between 1980 and 1991, fi*om 126.9 pregnancies per 1,000 
married women in 1980 to 117.6 pregnancies in 1991. 
(B) The total of all out-of-wedlock births between 1970 
and 1991 has risen fi*om 10.7 percent to 29.5 percent and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2111 
if the current trend continues, 50 percent of all births 
by the year 2015 will be out-of-wedlock. 
(7) An effective strategy to combat teenage pregnancy must 
address the issue of male responsibility, including statutory 
rape culpability and prevention. The increase of teenage preg-
nancies among the youngest girls is particularly severe and 
is linked to predatory sexual practices by men who are signifi-
cantly older. 
(A) It is estimated that in the late 1980's, the rate 
for girls age 14 and under giving birth increased 26 percent. 
(B) Data indicates that at least half of the children 
bom to teenage mothers are fathered by adult men. Avail-
able data suggests that almost 70 percent of births to 
teenage girls are fathered by men over age 20. 
(C) Surveys of teen mothers have revealed that a 
majority of such mothers have histories of sexual and phys-
ical abuse, primarily with older adult men. 
(8) The negative consequences of an out-of-wedlock birth 
on the mother, the child, the family, and society are well 
documented as follows: 
(A) Young women 17 and under who give birth outside 
of marriage are more likely to go on public assistance 
and to spend more years on welfare once enrolled. These 
combined effects of "younger and longer" increase total 
AFDC costs per household by 25 percent to 30 percent 
for 17-year-olds. 
(B) Children bom out-of-wedlock have a substantially 
higher risk of being bom at a very low or moderately 
low birth weight. 
(C) Children bom out-of-wedlock are more likely to 
experience low verbal cognitive attainment, as well as more 
child abuse, and neglect. 
(D) Children bom out-of-wedlock were more likely to 
have lower cognitive scores, lower educational aspirations, 
and a greater likelihood of becoming teenage parents them-
selves. 
(E) Being bom out-of-wedlock significantly reduces the 
chances of the child growing up to have an intact marriage. 
(F) Children bom out-of-wedlock are 3 times more 
likely to be on welfare when they grow up. 
(9) Currently 35 percent of children in single-parent homes 
were bom out-of-wedlock, nearly the same percentage as that 
of children in single-psirent homes whose parents are divorced 
(37 percent). While many parents find themselves, through 
divorce or tragic circumstances beyond their control, facing 
the difficult task of raising children alone, nevertheless, the 
negative consequences of raising children in single-parent 
homes are well documented as follows: 
(A) Only 9 percent of married-couple famiUes with 
children under 18 years of age have income below the 
national poverty level. In contrast, 46 percent of female-
headed households with children under 18 years of age 
are below the national poverty level. 
(B) Among single-parent families, nearly V2 of the 
mothers who never married received AFDC while only 
V
f
e of divorced mothers received AFDC. 
110 STAT. 2112 
PUBLIC LAW 104-193—AUG. 22, 1996 
(C) Children born into families receiving welfare assist-
ance are 3 times more likely to be on welfare when they 
reach adulthood than children not bom into families receiv-
ing welfare. 
(D) Mothers under 20 years of age are at the greatest 
risk of bearing low birth weight babies. 
(E) The younger the single-parent mother, the less 
likely she is to finish high school. 
(F) Young women who have children before finishing 
high school are more likely to receive welfare assistance 
for a longer period of time. 
(G) Between 1985 and 1990, the public cost of births 
to teenage mothers under the aid to families with depend-
ent children program, the food stamp program, and the 
medicaid program has been estimated at $120,000,000,000. 
(H) The absence of a father in the life of a child 
has a negative effect on school performance and peer 
adjustment. 
(I) Children of teenage single parents have lower cog-
nitive scores, lower educational aspirations, and a greater 
likelihood of becoming teenage parents themselves. 
(J) Children of single-parent homes are 3 times more 
likely to fail and repeat a year in grade school than are 
children from intact 2-parent families. 
(K) Children from single-parent homes are almost 4 
times more likely to be expelled or suspended from school. 
(L) Neighborhoods with larger percentages of youth 
aged 12 through 20 and areas with higher percentages 
of single-parent households have higher rates of violent 
crime. 
(M) Of those youth held for criminal offenses within 
the State juvenile justice system, only 29.8 percent lived 
primarily in a home with both parents. In contrast to 
these incarcerated youth, 73.9 percent of the 62,800,000 
children in the Nation's resident population were living 
with both parents. 
(10) Therefore, in light of this demonstration of the crisis 
in our Nation, it is the sense of the Congress that prevention 
of out-of-wedlock pregnancy and reduction in out-of-wedlock 
birth are very important Government interests and the policy 
contained in part A of title IV of the Social Security Act (as 
amended by section 103(a) of this Act) is intended to address 
the crisis. 
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT. 
Except as otherwise specifically provided, wherever in this title 
an amendment is expressed in terms of an amendment to or repeal 
of a section or other provision, the reference shall be considered 
to be made to that section or other provision of the Social Security 
Act. 
SEC. 103. BLOCK GRANTS TO STATES. 
(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601 et seq.) 
is amended— 
42USCprec. 
(1) by striking all that precedes section 418 (as added 
601,601-610, 
by section 603(b)(2) of this Act) and inserting the following: 
612, 613, 6
1
5
— 
617. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2113 
"PART A—BLOCK GRANTS TO STATES FOR 
TEMPORARY ASSISTANCE FOR NEEDY FAMI-
LIES 
"SEC. 401. PURPOSE. 
42 USC 601. 
"(a) IN GENERAL.—The purpose of this part is to increase the 
flexibiUty of States in operating a program designed to— 
"(1) provide assistance to needy families so that children 
may be cared for in their own homes or in the homes of 
relatives; 
"(2) end the dependence of needy parents on government 
benefits by promoting job preparation, work, andf marriage; 
"(3) prevent and reduce the incidence of out-of-wedlock 
pregnancies and establish annual numerical goals for prevent-
ing and reducing the incidence of these pregnancies; and 
"(4) encourage the formation and maintenance of two-par-
ent families. 
"(b) No INDIVIDUAL ENTITLEMENT.—This part shall not be inter-
preted to entitle any individual or family to assistance under any 
State program fiinded under this part. 
"SEC. 402. ELIGIBLE STATES; STATE PLAN. 
42 USC 602. 
**(a) IN GENERAL.—^As used in this part, the term 'eligible State' 
means, with respect to a fiscal year, a State that, during the 
2-year period immediately preceding the fiscal year, has submitted 
to the Secretary a plan that the Secretary has found includes 
the following: 
"(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM.— 
"(A) GENERAL PROVISIONS.—A written document that 
outlines how the State intends to do the following: 
"(i) Conduct a program, designed to serve all politi-
cal subdivisions in the State (not necessarily in a uni-
form manner), that provides assistance to needy fami-
lies with (or expecting) children and provides parents 
with job preparation, work, and support services to 
enable them to leave the program and become self-
sufficient. 
"(ii) Require a parent or caretaker receiving assist-
ance under the program to engage in work (as defined 
by the State) once the State determines the parent 
or caretaker is ready to engage in work, or once the 
parent or caretaker has received assistance under the 
program for 24 months (whether or not consecutive), 
whichever is earlier. 
"(iii) Ensure that parents and caretakers receiving 
assistance under the program engage in work activities 
in accordance with section 407. 
"(iv) Take such reasonable steps as the State 
deems necessary to restrict the use and disclosure of 
information about individuals and families receiving 
assistance under the program attributable to fiinds 
provided by the Federal Government. 
"(v) Establish goals and take action to prevent 
and reduce the incidence of out-of-wedlock pregnancies, 
with special emphasis on teenage pregnancies, and 
establish numerical goals for reducing the illegitimacy 
110 STAT. 2114 
PUBLIC LAW 104-193—AUG. 22, 1996 
ratio of the State (as defined in section 403(a)(2)(B)) 
for calendar years 1996 through 2005. 
"(vi) Conduct a program, designed to reach State 
and local law enforcement officials, the education sys-
tem, and relevant counseling services, that provides 
education and training on the problem of statutory 
rape so that teenage pregnancy prevention programs 
may be expanded in scope to incluae men. 
"(B) SPECIAL PROVISIONS.— 
"(i) The document shall indicate whether the State 
intends to treat families moving into the State from 
another State differently than other families under 
the program, and if so, how the State intends to treat 
such families under the program. 
"(ii) The document shall indicate whether the State 
intends to provide assistance under the program to 
individuals who are not citizens of the United States, 
and if so, shall include an overview of such assistance, 
"(iii) The document shall set forth objective criteria 
for the delivery of benefits and the determination of 
eligibility and for fair and equitable treatment, includ-
ing an explanation of how the State will provide 
opportunities for recipients who have been adversely 
affected to be heard in a State administrative or appeal 
process. 
"(iv) Not later than 1 year after the date of enact-
ment of this Act, unless the chief executive officer 
of the State opts out of this provision by notifying 
the Secretary, a State shall, consistent with the excep-
tion provided in section 407(e)(2), require a parent 
or caretaker receiving assistance under the program 
who, after receiving such assistance for 2 months is 
not exempt from work requirements and is not engaged 
in work, as determined under section 407(c), to partici-
pate in community service employment, with minimum 
hours per week and tasks to be determined by the 
State. 
"(2) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD 
SUPPORT ENFORCEMENT PROGRAM.—^A certification by the chief 
executive officer of the State that, during the fiscal year, the 
State will operate a child support enforcement progrsun under 
the State plan approved under part D. 
"(3) CERTIFICATION THAT THE STATE WILL OPERATE A FOSTER 
CARE AND ADOPTION ASSISTANCE PROGRAM.—A Certification by 
the chief executive officer of the State that, during the fiscal 
year, the State will operate a foster care and adoption assist-
ance program under the State plan approved imder part E, 
and that the State will take such actions as are necessary 
to ensure that children receiving assistance luider such part 
£ire eligible for medical assistance under the State plan under 
title XDC. 
"(4) CERTIFICATION OF THE ADMINISTRATION OF THE PRO-
GRAM.—^A certification by the chief executive officer of the State 
specifying which State agency or agencies will administer and 
supervise the program referred to in paragraph (1) for the 
fiscal year, which shall include assurances that local govern-
ments and private sector organizations— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2115 
"(A) have been consulted regarding the plan and design 
of welfare services in the State so that services are provided 
in a manner appropriate to loceJ populations; and 
"(B) have had at least 45 days to submit comments 
on the plan and the design of such services. 
"(5) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS 
WITH EQUITABLE ACCESS TO ASSISTANCE.—^A certification by the 
chief executive officer of the State that, during the fiscal year, 
the State will provide each member of an Indian tribe, who 
is domiciled in the State and is not eligible for assistance 
xinder a tribal family assistance plan approved imder section 
412, with equitable access to assistance under the State pro-
gram funded under this part attributable to funds provided 
by the Federal Grovernment. 
"(6) 
CERTIFICATION OF STANDARDS AND PROCEDURES TO 
ENSURE AGAINST PROGRAM FRAUD AND ABUSE.—A certification 
by the chief executive officer of the State that the State has 
established and is enforcing standards and procedures to ensure 
against program fi'aud and abuse, including standards and 
procedures concerning nepotism, conflicts of interest among 
individuals responsible for the administration and supervision 
of the State program, kickbacks, and the use of political 
patronage. 
"(7) 
OPTIONAL CERTIFICATION OF STANDARDS AND PROCE-
DURES TO ENSURE THAT THE STATE WILL SCREEN FOR AND IDEN-
TIFY DOMESTIC VIOLENCE.— 
"(A) IN GENERAL.—^At the option of the State, a certifi-
cation by the chief executive officer of the State that the 
State has established and is enforcing standards and proce-
dures to— 
"(i) screen and identify individuals receiving assist-
ance imder this part with a history of domestic violence 
while 
maintaining 
the 
confidentiality 
of 
such 
individuals; 
"(ii) refer such individuals to counseling and 
supportive services; and 
"(iii) waive, pursuant to a determination of good 
cause, other program requirements such as time limits 
(for so long as necessary) for individuals receiving 
assistance, residency requirements, 
child 
support 
cooperation requirements, and family cap provisions, 
in cases where compliance with such requirements 
would make it more difficult for individueds receiving 
assistance under this part to escape domestic violence 
or unfairly penalize such individuals who are or have 
been victimized by such violence, or individuals who 
are at risk of fiirther domestic violence. 
"(B) 
DOMESTIC VIOLENCE DEFINED.—For purposes of 
this paragraph, the term 'domestic violence' has the same 
meaning as the term 'battered or subjected to extreme 
cruelty, as defined in section 408(a)(7)(C)(iii). 
"(b) PUBLIC AVAILABILITY OF STATE PLAN SUMMARY.—The State 
shall make available to the public a summary of any plan submitted 
by the State under this section. 
"SEC. 403. GRANTS TO STATES. 
42 USC 603. 
"(a) GRANTS.— 
110 STAT. 2116 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(1) FAMILY ASSISTANCE GRANT.— 
"(A) IN GENERAL.—Each eligible State shall be entitled 
to receive from the Secretary, for each of fiscal years 1996, 
1997, 1998, 1999, 2000, 2001, and 2002, a grant in an 
amount equal to the State family assistance grant. 
"(B) 
STATE FAMILY ASSISTANCE GRANT DEFINED.—As 
used in this part, the term 'State family assistance grant' 
means the greatest of— 
"(i) Va of the total amount required to be paid 
to the State imder former section 403 (as in effect 
on September 30, 1995) for fiscal years 1992, 1993, 
and 1994 (other than with respect to amounts expended 
by the State for child care under subsection (g) or 
(i) of former section 402 (as so in effect)); 
"(ii)(I) the total amount required to be paid to 
the State under former section 403 for fiscal year 1994 
(other than with respect to amounts expended by the 
State for child care under subsection (g) or (i) of former 
section 402 (as so in effect)); plus 
"(II) an amount equal to 85 percent of the amount 
(if any) by which the total amount required to be 
paid to the State under former section 403(a)(5) for 
emergency assistance for fiscal year 1995 exceeds the 
total amount required to be paid to the State under 
former section 403(a)(5)'for fiscal year 1994, if, during 
fiscal year 1994 or 1995, the Secretary approved under 
former section 402 an amendment to the former State 
plan with respect to the provision of emergency assist-
ance; or 
"(iii) Va of the total amount required to be paid 
to the State under former section 403 (as in effect 
on September 30, 1995) for the 1st 3 quarters of fiscal 
year 1995 (other than with respect to amounts 
expended by the State under the State plan approved 
under part F (as so in effect) or for child care imder 
subsection (g) or (i) of former section 402 (as so in 
effect)), plus the total amount required to be paid to 
the State for fiscal year 1995 under former section 
403(1) (as so in effect). 
"(C) TOTAL AMOUNT REQUIRED TO BE PAID TO THE STATE 
UNDER FORMER SECTION 403 DEFINED.—^As USed in this part, 
the term 'total amount required to be paid to the State 
under former section 403' means, with respect to a fiscal 
year— 
"(i) in the case of a State to which section 1108 
does not apply, the sum of— 
"(I) the Federal share of maintenance assist-
ance expenditures for the fiscal year, before deduc-
tion pursuant to subparagraph (B) or (C) of section 
403(b)(2) (as in effect on September 30, 1995), 
as reported by the State on ACF Form 231; 
"(II) the Federal share of administrative 
expenditures (including administrative expendi-
tures for the development of management informa-
tion systems) for the fiscal year, as reported by 
the State on ACF Form 231; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2117 
"(III) the Federal share of emergency assist-
ance expenditures for the fiscal year, as reported 
by the State on ACF Form 231; 
"(IV) the Federal share of expenditures for 
the fiscal year with respect to child care pursuant 
to subsections (g) and (i) of former section 402 
(as in effect on September 30, 1995), as reported 
by the State on ACF Form 231; and 
"(V) the Federal obligations made to the State 
under section 403 for the fiscal year with respect 
to the State progrsim operated under part F (as 
in effect on September 30, 1995), as determined 
by the Secretary, including additional obligations 
or reductions in obligations made after the close 
of the fiscal year; and 
"(ii) in the case of a State to which section 1108 
applies, the lesser of— 
"(I) the sum described in clause (i); or 
"(II) the total amount certified by the Sec-
retary under former section 403 (as in effect during 
the fiscal, year) with respect to the territory. 
"(D) 
INFORMATION 
TO BE USED 
IN 
DETERMINING 
AMOUNTS.— 
"(i) FOR FISCAL YEARS 1992 AND 1993.— 
"(I) In determining the amounts described in 
subclauses (I) through (IV) of subparagraph (C)(i) 
for any State for each of fiscal years 1992 and 
1993, the Secretary shall use information available 
as of April 28,1995. 
"(II) In determining the amount described in 
subparagraph (C)(i)(V) for any State for each of 
fiscal years 1992 and 1993, the Secretary shall 
use information available as of January 6, 1995. 
"(ii) FOR FISCAL YEAR 1994.—In determining the 
amounts described in subparagraph (C)(i) for any State 
for fiscal year 1994, the Secretary shall use information 
available as of April 28,1995. 
"(iii) FOR FISCAL YEAR 1995.— 
"(I) In determining the amoimt described in 
subparagraph (B)(ii)(II) for any State for fiscal year 
1995, the Secretary shall use the information 
which was reported by the States and estimates 
made by the States with respect to emergency 
assistance expenditures £uid was available as of 
August 11,1995. 
"(II) In determining the amounts described in 
subclauses (I) through (III) of subparsigraph (C)(i) 
for any State for fiscal year 1995, the Secretary 
shall use information available as of October 2, 
1995. 
"(Ill) In determining the amount described in 
subparagraph (C)(i)(IV) for any State for fiscal year 
1995, the Secretary shall use information available 
as of February 28,1996. 
"(IV) In determining the amount described in 
subparagraph (C)(i)(V) for any State for fiscal year 
110 STAT. 2118 
PUBLIC LAW 104-193—AUG. 22, 1996 
1995, the Secretary shall use information available 
as of October 5,1995. 
"(E) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there 
are appropriated for fiscal years 1996, 1997, 1998, 1999, 
2000, 2001, and 2002 such sums as are necessary for greints 
under this paragraph. 
"(2) BONUS TO REWARD DECREASE IN ILLEGITIMACY.— 
"(A) IN GENERAL.—Each eligible State shall be entitled 
to receive fi*om the Secretary a grant for each bonus year 
for which the State demonstrates a net decrease in out-
of-wedlock births. 
"(B) AMOUNT OF GRANT.— 
"(i) IF 5 ELIGIBLE STATES.—If there are 5 eligible 
States for a bonus year, the amount of the grant shall 
be $20,000,000. 
"(ii) IF FEWER THAN 5 ELIGIBLE STATES.—If there 
are fewer than 5 eligible States for a bonus year, 
the amount of the grant shall be $25,000,000. 
"(C) DEFINITIONS.—^As used in this paragraph: 
"(i) ELIGIBLE STATE.— 
"(I) IN GENERAL.—The term 'eligible State' 
means a State that the Secretary determines meets 
the following requirements: 
"(aa) The State demonstrates that the 
number of out-of-wedlock births that occurred 
in the State during the most recent 2-year 
period for which such information is available 
decreased as compared to the number of such 
births that occurred during the previous 2-
year period, and the magnitude of the decrease 
for the State for the period is not exceeded 
by the 
magnitude 
of the 
corresponding 
decrease for 5 or more other States for the 
period. 
"(bb) The rate of induced pregnancy termi-
nations in the State for the fiscal year is less 
than the rate of induced pregnancy termi-
nations in the State for fiscal year 1995. 
"(II) DISREGARD OF CHANGES IN DATA DUE TO 
CHANGED REPORTING METHODS.—In making the 
determination required by subclause (I), the Sec-
retary shall disregard— 
"(aa) any difference between the number 
of out-of-wedlock births that occurred in a 
State for a fiscal year and the number of out-
of-wedlock births that occurred in a State for 
fiscal year 1995 which is attributable to a 
change in State methods of reporting data 
used to calculate the number of out-of-wedlock 
births; and 
"(bb) any difference between the rate of 
induced pregnancy terminations in a State for 
a fiscal year and such rate for fiscal year 1995 
which is attributable to a change in State 
methods of reporting data used to calculate 
such rate. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2119 
"(ii) BONUS YEAR.—^The term *bonus year' means 
fiscal years 1999, 2000, 2001, and 2002. 
"(D) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there 
are appropriated for fiscal years 1999 through 2002, such 
sums as are necessary for grants imder tlus paragraph. 
"(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN 
CERTAIN STATES.— 
"(A) IN GENERAL.—Each qualifying State shall, subject 
to subparagraph (F), be entitled to receive fi-om the Sec-
retary— 
"(i) for fiscal year 1998 a grant in an amount 
equal to 2.5 percent of the total amount required to 
be paid to the State under former section 403 (as 
in effect during fiscal year 1994) for fiscal year 1994; 
and 
"(ii) for each of fiscal years 1999, 2000, and 2001, 
a grant in an amount equal to the sum o
f
— 
"(I) the amount (if any) required to be paid 
to the State under this paragraph for the imme-
diately preceding fiscal year; and 
"(II) 2.5 percent of the sum o
f
— 
"(aa) the total amount required to be paid 
to the State under former section 403 (as in 
effect during fiscsd year 1994) for fiscal year 
1994; and 
"(bb) the amount (if any) required to be 
paid to the State under this paragraph for 
the fiscal year preceding the fiscal year for 
which the grant is to be made. 
"(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR 
STATES FAILING TO REMAIN QUALIFYING STATES.—-Each State 
that is not a qualifying State for a fiscal year specified 
in subparagraph (A)(ii) but was a qualifying State for a 
prior fiscal year shall, subject to subparagraph (F), be 
entitled to receive fi'om the Secretary for the specified 
fiscal year, a grant in an amount equal to the amount 
required to be paid to the State under this paragraph 
for the most recent fiscal year for which the State was 
a qualifying State. 
"(C) QUALIFYING STATE.— 
"(i) IN GENERAL.—For purposes of this paragraph, 
a State is a qualif)dng State for a fiscal year if— 
"(I) the level of welfare spending per poor per-
son by the State for the immediately preceding 
fiscal year is less than the national average level 
of State welfare spending per poor person for such 
preceding fiscal year; and 
"(II) the population growth rate of the State 
(as determined by the Bureau of the Census) for 
the most recent fiscal year for which information 
is available exceeds the average population growth 
rate for all States (as so determined) for such 
most recent fiscal year. 
"(ii) STATE MUST QUALIFY IN FISCAL YEAR 1997.— 
Notwithstanding clause (i), a State shall not be a 
qualifying State for any fiscal year after 1998 by reason 
110 STAT. 2120 
PUBLIC LAW 104-193—AUG. 22, 1996 
of clause (i) if the State is not a qualifying State 
for fiscal year 1998 by reason of clause (i). 
"(iii) 
CERTAIN 
STATES 
DEEMED 
QUALIFYING 
STATES.—For purposes of this paragraph, a State is 
deemed to be a quedifying State for fiscal years 1998, 
1999, 2000, and 2001 if— 
"(I) the level of welfare spending per poor per-
son by the State for fiscal year 1994 is less than 
35 percent of the national average level of State 
welfare spending per poor person for fiscal year 
1994; or 
"(II) the population of the State increased by 
more than 10 percent fi"om April 1, 1990 to July 
1, 1994, according to the population estimates in 
publication CB94-204 of the Bureau of the Census. 
"(D) DEFINITIONS.—^As used in this paragraph: 
"(i) LEVEL OF WELFARE SPENDING PER POOR PER-
SON.—The term level of State welfsire spending per 
poor person' means, with respect to a State and a 
fiscal year— 
"(I) the sum of— 
"(aa) the total amount required to be paid 
to the State under former section 403 (as in 
effect during fiscal year 1994) for fiscal year 
1994; and 
"(bb) the amount (if any) paid to the State 
under this paragraph for the immediately 
preceding fiscal year; divided by 
"(II) the number of individuals, according to 
the 1990 decennial census, who were residents 
of the State and whose income was below the 
poverty line. 
"(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE 
SPENDING PER POOR PERSON.—The term 'national aver-
age level of State welfare spending per poor person' 
means, with respect to a fiscal year, an amount 
equal to— 
"(I) the total amount required to be paid to 
the States under former section 403 (as in effect 
during fiscal year 1994) for fiscal year 1994; 
divided by 
"(II) the number of individuals, according to 
the 1990 decennial census, who were residents 
of any State and whose income was below the 
poverty line. 
"(iii) STATE.—The term 'State' means each of the 
50 States of the United States and the District of 
Columbia. 
"(E) 
APPROPRL^TION.—Out 
of 
any 
money in 
the 
Treasury of the United States not otherwise appropriated, 
there are appropriated for fiscal years 1998, 1999, 2000, 
and 2001 such sums as are necessary for grants under 
this 
paragraph, 
in 
a total 
amount 
not 
to 
exceed 
$800,000,000. 
"(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPRO-
PRIATIONS.—If the amoimt appropriated pursuant to this 
paragraph for a fiscal year is less than the total amount 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2121 
of payments otherwise required to be made under this 
paragraph for the fiscal year, then the amount otherwise 
payable to any State for the fiscal year under this para-
graph shall be reduced by a percentage equal to the amount 
so appropriated divided by such total amount. 
"(G) 
BUDGET 
SCORING.—Notwithstanding 
section 
257(b)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the baseline shall assume that no 
grant shall be made under this paragraph after fiscal year 
2001. 
"(4) BONUS TO REWARD HIGH PERFORMANCE STATES.— 
"(A) IN GENERAL.—^The Secretary shall make a grant 
pursuant to this paragraph to each State for each bonus 
year for which the State is a high performing State. 
"(B) AMOUNT OF GRANT.— 
"(i) IN GENERAL.—Subject to clause (ii) of this 
subparagraph, the Secretary shall determine 
the 
amount of the grant payable under this paragraph 
to a high performing State for a bonus year, which 
shall be based on the score assigned to the State under 
subparagraph (D)(i) for the fiscal year that immediately 
precedes the bonus year. 
"(ii) LIMITATION.—The amount payable to a State 
under this paragraph for a bonus year shall not exceed 
5 percent of the State family assistance grant. 
"(C) FORMULA FOR MEASURING STATE PERFORMANCE.— 
Not later than 1 year after the date of the enactment 
of the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996, the Secretary, in consultation with 
the National Governors' Association and the Americem Pub-
lic Welfare Association, shall develop a formula for measur-
ing State performance in operating the State program 
funded under this part so as to achieve the goals set 
forth in section 401(a). 
"(D) 
SCORING OF STATE PERFORMANCE; SETTING OF 
PERFORMANCE THRESHOLDS.—For each bonus year, the Sec-
retary shall— 
"(i) use the formula developed imder subparagraph 
(C) to assign a score to each eligible State for the 
fiscal year that immediately precedes the bonus 
year; and 
"(ii) prescribe a performance threshold in such a 
manner so as to ensure that— 
"(I) the average annual total amoimt of grants 
to be made under this paragraph for each bonus 
year equals $200,000,000; and 
"(II) the total amount of grants to be made 
imder this paragraph for all bonus years equals 
$1,000,000,000. 
"(E) DEFINITIONS.—As used in this paragraph: 
"(i) BONUS YEAR.—The term 'bonus year' means 
fiscal years 1999, 2000, 2001, 2002, and 2003. 
"(ii) HIGH PERFORMING STATE.—The term liigh 
performing State' means, with respect to a bonus year, 
£in eligible State whose score assigned pursuant to 
subparagraph (D)(i) for the fiscal year immediately 
preceding the bonus year equals or exceeds the 
110 STAT. 2122 
PUBLIC LAW 104-193—AUG. 22, 1996 
perform£ince threshold prescribed under subparagraph 
(D)(ii) for such preceding fiscal year. 
"(F) APPROPRIATION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there 
are appropriated for fiscal years 1999 through 2003 
$1,000,000,000 for grants under this paragraph. 
"(b) CONTINGENCY FUND.— 
"(1) ESTABLISHMENT.—There is hereby established in the 
Treasury of the United States a fund which shall be known 
as the 'Contingency Fund for State Welfare Programs' (in this 
section referred to as the 'Fund'). 
"(2) DEPOSITS INTO FUND.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there 
are appropriated for fiscal years 1997, 1998, 1999, 2000, and 
2001 such sums as are necessary for payment to the Fund 
in a total amount not to exceed $2,000,000,000. 
"(3) GRANTS.— 
"(A) PROVISIONAL PAYMENTS.—If an eligible State sub-
mits to the Secretary a request for funds under this para-
graph during an eligible month, the Secretary shall, subject 
to this paragraph, pay to the State, from amounts appro-
priated pursuant to paragraph (2), an amount equal to 
the amount of fiinds so requested. 
"(B) PAYMENT PRIORITY.—The Secretary shall make 
pajnnents under subparagraph (A) in the order in which 
the Secretary receives requests for such pa3rments. 
"(C) LIMITATIONS.— 
"(i) MONTHLY PAYMENT TO A STATE.—The total 
amount paid to a single State under subparagraph 
(A) during a month shall not exceed Vi2 of 20 percent 
of the State family assistance grant. 
"(ii) PAYMENTS TO ALL STATES.—The total amoimt 
paid to all States under subparagraph (A) during fiscal 
years 1997 through 2001 shall not exceed the total 
amount appropriated pursuant to paragraph (2). 
"(4) ANNUAL RECONCILIATION.—Notwithstanding paragraph 
(3), at the end of each fiscal year, each State shall remit 
to the Secretary an amount equal to the amount (if any) by 
which the total amount paid to the State under paragraph 
(3) during the fiscal year exceeds— 
"(A) the Federal medical assistance percentage for the 
State for the fiscal year (as defined in section 1905(b), 
as in effect on September 30, 1995) of the amount (if 
any) by which— 
"(i) if the Secretary makes a payment to the State 
under section 418(a)(2) in the fiscal year— 
"(I) the expenditures under the State program 
funded under this part for the fiscal year, exclud-
ing any amounts made available by the Federal 
Government (except amounts paid to the State 
under paragraph (3) during the fiscal year that 
have been expended by the State) and any amounts 
expended by the State during the fiscal year for 
child care; exceeds 
"(II) historic State expenditures (as defined 
in section 409(a)(7)(B)(iii)), excluding the expendi-
tures by the State for child care under subsection 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2123 
(g) or (i) of section 402 (as in effect during fiscal 
year 1994) for fiscal year 1994 minus any Federal 
pajnnent with respect to such child care expendi-
tures; or 
"(ii) if the Secretary does not make a pajonent 
to the State under section 418(a)(2) in the fiscal year— 
"(I) the expenditures under the State program 
funded under this part for the fiscal year (exclud-
ing any amounts made available by the Federal 
Grovemment, except amoimts paid to the State 
imder psiragraph (3) during the fiscal year that 
have been expended by the State); exceeds 
"(II) historic State expenditures (as defined 
in section 409(a)(7)(BXiii)); multiplied by 
"(B) Vi2 times the number of months during the fiscal 
year for which the Secretary makes a payment to the 
State under this subsection. 
"(5) ELIGIBLE MO^fTH.—As used in paragraph (3)(A), the 
term 'eligible month' means, with respect to a State, a month 
in the 2-month period that begins with any month for which 
the State is a needy State. 
"(6) NEEDY STATE.—For purposes of paragraph (5), a State 
is a needy State for a month if— 
"(A) the average rate of— 
"(i) total unemplo3rment in such State (seasonsdly 
adjusted) for the period consisting of the most recent 
3 months for which data for all States are published 
equals or exceeds 6.5 percent; and 
"(ii) total unemployment in such State (seasonally 
adjusted) for the 3-month period equals or exceeds 
110 percent of such average rate for either (or both) 
of the corresponding 3-month periods ending in the 
2 preceding calendar years; or 
"(B) as determined by the Secretary of Agriculture 
(in the discretion of the Secretary of Agriculture), the 
monthly average number of individuals (as of the last day 
of each month) participating in the food stamp program 
in the State in the then most recently concluded 3-month 
period for which data are available exceeds by not less 
than 10 percent the lesser of— 
"(i) the monthly average number of individuals 
(as of the last day of each month) in the State that 
would have participated in the food stamp program 
in the corresponding 3-month period in fiscal yesir 1994 
if the amendments made by titles IV eind "VIII of the 
Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 had been in effect throughout 
fiscal year 1994; or 
"(ii) the monthly average number of individuals 
(as of the last day of each month) in the State that 
would have participated in the food stamp program 
in the corresponding 3-month period in fiscal year 1995 
if the amendments made by titles IV and VLll of the 
Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 had been in effect throughout 
fiscal year 1995. 
"(7) OTHER TERMS DEFINED.—^As used in this subsection: 
110 STAT. 2124 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(A) STATE.—The term 'State' means each of the 50 
States of the United States and the District of Columbia. 
"(B) SECRETARY.—The term 'Secretary* means the Sec-
retary of the Treasury. 
"(8) ANNUAL REPORTS.—The Secretary shall annually report 
to the Congress on the status of the Fund. 
42 use 604. 
"SEC. 404. USE OF GRANTS. 
"(a) GENERAL RULES.—Subject to this part, a State to which 
a grant is made under section 403 may use the grant— 
"(1) in any manner that is reasonably calculated to accom-
plish the purpose of this part, including to provide low income 
households with assistance in meeting home heating and cool-
ing costs; or 
"(2) in any manner that the State was authorized to use 
amounts received under part A or F, as such parts were in 
effect on September 30, 1995. 
"(b) 
LIMITATION ON USE 
OF GRANT FOR ADMINISTRATIVE 
PURPOSES.— 
"(1) LIMITATION.—^A State to which a grant is made imder 
section 403 shall not expend more than 15 percent of the 
grant for administrative purposes. 
"(2) EXCEPTION.—Paragraph (1) shall not apply to the use 
of a grant for information technology and computerization 
needed for tracking or monitoring required by or under this 
part. 
"(c) 
AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER 
RULES OF FORMER STATE.—^A State operating a program funded 
under this part may apply to a family the rules (including benefit 
amounts) of the program funded under this part of another State 
if the family has moved to the State from the other State and 
has resided in the State for less than 12 months. 
"(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PUR-
POSES.— 
"(1) IN GENERAL.—^A State may use not more than 30 
percent of the amount of any grant made to the State under 
section 403(a) for a fiscal year to carry out a State program 
pursuant to any or all of the following provisions of law: 
"(A) Title XX of this Act. 
"(B) The Child Care and Development Block Grant 
Act of 1990. 
"(2) 
LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX 
PROGRAMS.—Notwithstanding paragraph (1), not more than Vs 
of the total amount paid to a State under this part for a 
fiscal year that is used to carry out State programs pursuant 
to provisions of law specified in paragraph (1) may be used 
to carry out State programs pursuant to title XX. 
"(3) APPLICABLE RULES.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B) of this paragraph, any amount paid to a State under 
this part that is used to carry out a State program pursuant 
to a provision of law specified in paragraph (1) shall not 
be subject to the requirements of this part, but shall be 
subject to the requirements that apply to Federal funds 
provided directly under the provision of law to carry out 
the program, and the expenditure of any amount so used 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2125 
shall not be considered to be an expenditure under this 
part. 
"(B) 
EXCEPTION RELATING TO TITLE XX PROGRAMS.— 
All amounts paid to a State under this part that are 
used to carry out State programs pursuant to title XX 
shall be used only for programs and services to children 
or their families whose income is less than 200 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 Rec-
onciliation Act of 1981) applicable to a family of the size 
involved. 
"(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR ASSIST-
ANCE.—^A State may reserve amounts paid to the State under this 
part for any fiscal year for the purpose of providing, without fiscal 
year limitation, assistance under the State program funded under 
this part. 
"(f) 
AUTHORITY 
TO 
OPERATE 
EMPLOYMENT 
PLACEMENT 
PROGRAM.—^A State to which a grant is made under section 403 
may use the grant to make payments (or provide job placement 
vouchers) to State-approved public and private job placement agen-
cies that provide employment placement services to individuals 
who receive assistance under the State program funded under this 
part. 
"(g) 
IMPLEMENTATION OF 
ELECTRONIC BENEFIT TRANSFER 
SYSTEM.—^A State to which a grant is made under section 403 
is encouraged to implement £in electronic benefit transfer system 
for providing assistance under the State program funded under 
this part, and may use the grant for such purpose. 
"(h) USE OF FUNDS FOR INDIVIDUAL DEVELOPMENT ACCOUNTS.— 
"(1) IN GENERAL.—^A State to which a grant is made under 
section 403 may use the grant to carry out a program to 
fund individual development accoimts (as defined in paragraph 
(2)) established by individuals eligible for assistance under 
the State program funded under this part. 
"(2) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 
"(A) ESTABLISHMENT.—Under a State program carried 
out under paragraph (1), an individual 
development 
account may be established by or on behalf of an individual 
eligible for assistance under the State program operated 
under this part for the purpose of enabling the individual 
to accumulate funds for a qualified purpose described in 
subparagraph (B). 
"(B) 
QUALIFIED 
PURPOSE.—A 
qualified 
purpose 
described in this subpara^aph is 1 or more of the following, 
as provided by the qualified entity providing assistance 
to the individual under this subsection: 
"(i) POSTSECONDARY EDUCATIONAL EXPENSES.— 
Postsecondary educational expenses paid fi*om an 
individu£d development account directly to an eligible 
educational institution. 
"(ii) FIRST HOME PURCHASE.—Qualified acquisition 
costs with respect to a qualified principal residence 
for a qualified first-time homebuyer, if paid fi*om an 
individual development account directly to the persons 
to whom the amounts are due. 
110 STAT. 2126 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(iii) 
BUSINESS 
CAPITALIZATION.—Amounts paid 
from an individual development account directly to 
a business capitalization account which is established 
in a federally insured financial institution and is 
restricted to use solely for qualified business capitaliza-
tion expenses. 
"(C) 
CONTRIBUTIONS TO BE FROM EARNED INCOME.— 
An individual may only contribute to an individual develop-
ment account such amounts as are derived from earned 
income, as defined in section 911(d)(2) of the Internal Reve-
nue Code of 1986. 
Regulations. 
"(D) WITHDRAWAL OF FUNDS.—The Secretary shall 
establish such regulations as may be necessary to ensure 
that funds held in an individual development account are 
not withdrawn except for 1 or more of the qualified pur-
poses described in subparagraph (B). 
"(3) REQUIREMENTS.— 
"(A) IN GENERAL.—^An individual development account 
established under this subsection shall be a trust created 
or organized in the United States and funded through 
periodic contributions by the establishing individual and 
matched by or through a qualified entity for a qualified 
purpose (as described in paragraph (2)(B)). 
"(B) QUALIFIED ENTITY.—As used in this subsection, 
the term 'qualified entity* means— 
"(i) a not-for-profit organization described in sec-
tion 501(c)(3) of the Internal Revenue Code of 1986 
and exempt from taxation under section 501(a) of such 
Code; or 
"(ii) a State or local government agency acting 
in cooperation with an organization described in 
clause (i). 
"(4) No REDUCTION IN BENEFITS.—Notwithstanding any 
other provision of Federal law (other than the Internal Revenue 
Code of 1986) that requires consideration of 1 or more financial 
circumstances of an individual, for the purpose of determining 
eligibility to receive, or the amount of, any assistance or benefit 
authorized by such law to be provided to or for the benefit 
of such individual, funds (including interest accruing) in an 
individual development accoimt under this subsection shall be 
disregarded for such purpose with respect to any period during 
which such individual maintains or makes contributions into 
such an account. 
"(5) DEFINITIONS.—As used in this subsection— 
"(A) ELIGIBLE EDUCATIONAL INSTITUTION.—The term 
'eligible educational institution' means the following: 
"(i) An institution described in section 481(a)(1) 
or 1201(a) of the Higher Education Act of 1965 (20 
U.S.C. 1088(a)(1) or 1141(a)), as such sections are in 
effect on the date of the enactment of this subsection, 
"(ii) An area vocational education school (as 
defined in subpara^aph (C) or (D) of section 521(4) 
of the Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2471(4))) which is 
in any State (as defined in section 521(33) of such 
Act), as such sections are in effect on the date of 
the enactment of this subsection. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2127 
"(B) 
POST-SECONDARY EDUCATIONAL EXPENSES.—The 
term 'post-secondary educational expenses' means— 
"(i) tuition £ind fees required for the enrollment 
or attendance of a student at an eligible educational 
institution, and 
"(ii) fees, books, supplies, and equipment required 
for courses of instruction at £in eligible educational 
institution. 
"(C) QUALIFIED ACQUISITION COSTS.—The term 'quali-
fied acquisition costs' means the costs of acquiring, con-
structing, or reconstructing a residence. The term includes 
any usual or reasonable settlement, finsincing, or other 
closing costs. 
"(D) QUALIFIED BUSINESS.—The term 'qualified busi-
ness' means any business that does not contravene any 
law or public policy (as determined by the Secretary). 
"(E) QUALIFIED BUSINESS CAPITALIZATION EXPENSES.— 
The term 'qualified business capitalization expenses' mesins 
qualified expenditures for the capitalization of a qualified 
business pursuant to a qualified plan. 
"(F) QUALIFIED EXPENDITURES.—The term 'qualified 
expenditures' means expenditures included in a qualified 
plan, including capital, plant, equipment, working capital, 
and inventory expenses. 
"(G) QUALIFIED FIRST-TIME HOMEBUYER.— 
"(i) IN GENERAL.—The term 'qualified 
first-time 
homebuyer' means a taxpayer (and, if married, the 
taxpayer's spouse) who has no present ownership 
interest in a principal residence during the 3-year 
period ending on the date of acquisition of the principal 
residence to which this subsection applies. 
"(ii) DATE OF ACQUISITION.—The term 'date of 
acquisition' means the date on which a binding contract 
to acquire, construct, or reconstruct the principal resi-
dence to which this subparagraph applies is entered 
into. 
"(H) QUALIFIED PLAN.—The term 'quahfied plan' means 
a business plan which— 
"(i) is approved by a financial institution, or by 
a nonprofit loan fund having demonstrated fiduciary 
integrity, 
"(ii) includes a description of services or goods 
to be sold, a marketing plan, and projected financial 
statements, and 
"(iii) may require the eligible individual to obtain 
the assistance of an experienced 
entrepreneurial 
advisor. 
"(I) QUALIFIED PRINCIPAL RESIDENCE.—The term 'quali-
fied principal residence' means a principal residence (within 
the meaning of section 1034 of the Internal Revenue Code 
of 1986), the qualified acquisition costs of which do not 
exceed 100 percent of the average area purchase price 
applicable to such residence (determined in accordance with 
paragraphs (2) and (3) of section 143(e) of such Code), 
"(i) SANCTION WELFARE RECIPIENTS FOR FAILING TO ENSURE 
THAT MINOR DEPENDENT CHILDREN ATTEND SCHOOL.—A State to 
which a grant is made under section 403 shall not be prohibited 
110 STAT. 2128 
PUBLIC LAW 104-193—AUG. 22, 1996 
from sanctioning a family that includes an adult who has received 
assistance under any State program funded under this part attrib-
utable to funds provided by the Federal Government or under 
the food stamp program, as defined in section 3(h) of the Food 
Stamp Act of 1977, if such adult fails to ensure that the minor 
dependent children of such adult attend school as required by 
the law of the State in which the minor children reside. 
"(j) REQUIREMENT FOR HIGH SCHOOL DIPLOMA OR EQUIVA-
LENT.—^A State to which a grant is made under section 403 shall 
not be prohibited from sanctioning a family that includes an adult 
who is older than age 20 and younger than age 51 and who has 
received assistance under any State program funded under this 
part attributable to funds provided by the Federal Government 
or under the food stamp program, as defined in section 3(h) of 
the Food Stamp Act of 1977, if such adult does not have, or is 
not working toward attaining, a secondary school diploma or its 
recognized equivalent unless such adult has been determined in 
the judgment of medical, psychiatric, or other appropriate profes-
sionals to lack the requisite capacity to complete successfully a 
course of study that would lead to a secondary school diploma 
or its recognized equivalent. 
42 use 605. 
"SEC. 405. ADMINISTRATIVE PROVISIONS. 
"(a) QUARTERLY.—The Secretary shall pay each grant payable 
to a State under section 403 in quarterly installments, subject 
to this section. 
"(b) NOTIFICATION.—Not later than 3 months before the pay-
ment of any such quarterly installment to a State, the Secretary 
shall notify the State of the amount of £iny reduction determined 
under section 412(aXl)(B) with respect to the State. 
"(c) 
COMPUTATION 
AND CERTIFICATION 
OF PAYMENTS TO 
STATES.— 
"(1) COMPUTATION.—The Secretary shall estimate the 
amount to be paid to each eligible State for each quarter 
under this part, such estimate to be based on a report filed 
by the State containing an estimate by the State of the total 
sum to be expended by the State in the quarter under the 
State program fiinded under this part and such other informa-
tion as the Secretary may find necessary. 
"(2) CERTIFICATION.—The Secretary of Health and Human 
Services shall certify to the Secretary of the Treasury the 
amount estimated under paragraph (1) with respect to a State, 
reduced or increased to the extent of any overpayment or under-
pajnnent which the Secretary of Health £ind Human Services 
determines was made under this part to the State for any 
prior quarter and with respect to which adjustment has not 
been made under this paragraph. 
"(d) PAYMENT METHOD.—Upon receipt of a certification under 
subsection (c)(2) with respect to a State, the Secretary of the Treas-
ury shall, through the Fiscal Service of the Department of the 
Treasury and before audit or settlement by the General Accounting 
Office, pay to the State, at the time or times fixed by the Secretary 
of Health and Human Services, the amount so certified. 
42 use 606. 
'<SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS. 
"(a) LOAN AUTHORITY.— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2129 
"(1) IN GENERAL,,—The Secretary shall make loans to any 
loan-eligible State, for a period to maturity of not more than 
3 years. 
"(2) LOAN-ELIGIBLE STATE.—^As used in paragraph (1), the 
term 1o£in-eligible State' means a State against which a penalty 
has not been imposed under section 409(a)(1). 
"(b) RATE OF INTEREST.—The Secretary shall charge and collect 
interest on any loan made under this section at a rate equal 
to the current average market yield on outstanding marketable 
obligations of the United States with remaining periods to maturity 
comparable to the period to maturity of the loan. 
"(c) USE OF LOAN.—^A State shall use a loan made to the 
State under this section only for any purpose for which grant 
amounts received by the State under section 403(a) may be used, 
including— 
"(1) welfare anti-fraud activities; and 
"(2) the provision of assistance under the State program 
to Indian families that have moved from the service area of 
an Indian tribe with a tribal family assistance plan approved 
under section 412. 
"(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE.— 
The cumulative dollar amoimt of all loans made to a State under 
this section during fiscal years 1997 through 2002 shall not exceed 
10 percent of the State family assistance grant. 
"(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS.— 
The total dollar amount of loans outstanding imder this section 
may not exceed $1,700,000,000. 
"(f) APPROPRIATION.—Out of any money in the Treasury of 
the United States not otherwise appropriated, there are appro-
priated such sums as may be necessary for the cost of loans under 
this section. 
"SEC. 407. MANDATORY WORK REQUIREMENTS. 
42USC607. 
"(a) PARTICIPATION RATE REQUIREMENTS.— 
"(1) ALL FAMILIES.—^A State to which a grant is made 
under section 403 for a fiscal year shall achieve the minimum 
participation rate specified in the following table for the fiscal 
year with respect to all families receiving assistance under 
the State program fiinded under this part: 
The minimum 
participation 
"If the fiscal year is: 
rate is: 
1997 
25 
1998 
30 
1999 
35 
2000 
40 
2001 
45 
2002 or thereafter 
50. 
"(2) 2-PARENT FAMILIES.—A State to which a grant is made 
under section 403 for a fiscal year shall achieve the minimum 
participation rate specified in the following table for the fiscal 
year with respect to 2-parent families receiving assistance 
under the State program mnded under this part: 
The minimum 
participation 
"If the fiscal year is: 
rate is: 
1997 
75 
1998 
75 
1999 or thereafter 
90. 
110 STAT. 2130 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(b) CALCULATION OF PARTICIPATION RATES.— 
"(1) ALL FAMILIES.— 
"(A) AVERAGE MONTHLY RATE.—For purposes of sub-
section (a)(1), the participation rate for all families of a 
State for a fiscal year is the average of the participation 
rates for all families of the State for each month in the 
fiscal year. 
"(B) MONTHLY PARTICIPATION RATES.—The participa-
tion rate of a State for all families of the State for a 
month, expressed as a percentage, is— 
"(i) the number of families receiving assistance 
under the State program funded under this part that 
include an adult or a minor child head of household 
who is engaged in work for the month; divided by 
"(ii) the amoimt by which— 
"(I) the number of families receiving such 
assistance during the month that include an adult 
or a minor child head of household receiving such 
assistance; exceeds 
"(II) the number of families receiving such 
assistance that are subject in such month to a 
E
enalty described in subsection (e)(1) but have not 
een subject to such penalty for more than 3 
months within the preceding 12-month period 
(whether or not consecutive). 
"(2) 2-PARENT FAMILIES.— 
"(A) AVERAGE MONTHLY RATE.—For purposes of sub-
section (a)(2), the participation rate for 2-parent families 
of a State for a fiscal year is the average of the participation 
rates for 2-parent families of the State for each month 
in the fiscal year. 
"(B) MONTHLY PARTICIPATION RATES.—The participa-
tion rate of a State for 2-parent families of the State 
for a month shall be calculated by use of the formula 
set forth in paragraph (1)(B), except that in the formula 
the term 'number of 2-parent families' shall be substituted 
for the term 'number of families' each place such latter 
term appears. 
"(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO 
CASELOAD REDUCTIONS NOT REQUIRED BY FEDERAL LAW.— 
Regulations. 
"(A) IN GENERAL.—The Secretary shall prescribe regu-
lations for reducing the minimum participation rate other-
wise required by this section for a fiscal year by the number 
of percentage points equal to the number of percentage 
points (if any) by which— 
"(i) the average monthly number of families receiv-
ing assistance during the immediately preceding fiscal 
year under the State program funded under this part 
is less than 
"(ii) the average monthly number of families that 
received aid under the State plan approved under part 
A (as in effect on September 30, 1995) during fiscal 
year 1995. 
The minimum participation rate shall not be reduced to 
the extent that the Secretary determines that the reduction 
in the number of families receiving such assistance is 
required by Federal law. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2131 
"(B) ELIGIBILITY CHANGES NOT COUNTED.—The regula-
tions required by subparagraph (A) shall not take into 
account families that are diverted from a State program 
funded under this part as a result of differences in eligi-
bility criteria under a State program funded under this 
part and eligibility criteria under the State program oper-
ated under the State plan approved under part A (as such 
plan and such part were in effect on September 30, 1995). 
Such regulations shall place the burden on the Secretary 
to prove that such families were diverted as a direct result 
of differences in such eligibility criteria. 
"(4) 
STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING 
ASSISTANCE UNDER A TRIBAL FAMILY ASSISTANCE PLAN.—FOR 
purposes of paragraphs (1)(B) and (2)(B), a State may, at its 
option, include families in the State that are receiving assist-
ance under a tribal family assistance plan approved under 
section 412. 
"(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMP-
TIONS.—For any fiscal year, a State may, at its option, not 
require an individual who is a single custodial parent caring 
for a child who has not attained 12 months of age to engage 
in work, and may disregard such an individual in determining 
the participation rates under subsection (a) for not more than 
12 months. 
"(c) ENGAGED IN WORK.— 
"(1) GENERAL RULES.— 
"(A) ALL FAMILIES.—For 
purposes 
of 
subsection 
(b)(l)(B)(i), a recipient is engaged in work for a month 
in a fiscal year if the recipient is participating in work 
activities for at least the minimum average number of 
hours per week specified in the following table during 
the month, not fewer than 20 hours per week of which 
are attributable to an activity described in paragraph (1), 
(2), (3), (4), (5), (6), (7), (8), or (12) of subsection (d), subject 
to this subsection:: 
The minimum 
"If the month is 
average number of 
in fiscal yean 
hours per week is: 
1997 
20 
1998 
20 
1999 
25 
2000 or thereafter 
30. 
"(B) 2-PARENT FAMILIES.—For purposes of subsection 
(b)(2)(B), an individual is engaged in work for a month 
in a fiscal year if— 
"(i) the individual is making progress in work 
activities for at least 35 hours per week during the 
month, not fewer than 30 hours per week of which 
are attributable to an activity described in paragraph 
(1), (2), (3), (4), (5), (6), (7), (8), or (12) of subsection 
(d), subject to this subsection; and 
"(ii) if the family of the individual receives feder-
ally-funded child care assistance eind an adult in the 
family is not disabled or caring for a severely disabled 
child, the individual's spouse is making progress in 
work activities during the month, not fewer than 20 
hours per week of which are attributable to an activity 
110 STAT. 2132 
PUBLIC LAW 104-193—AUG. 22, 1996 
described in paragraph (1), (2), (3), (4), (5), or (7) of 
subsection (d). 
"(2) LIMITATIONS AND SPECIAL RULES.— 
"(A) NUMBER OF WEEKS FOR WHICH JOB SEARCH COUNTS 
AS WORK.— 
"(i) LIMITATION.—Notwithstanding paragraph (1) 
of this subsection, an individual shall not be considered 
to be engaged in work by virtue of participation in 
an activity described in subsection (d)(6) of a State 
program fiinded under this part, after the individual 
has participated in such an activity for 6 weeks (or, 
if the unemplo5anent rate of the State is at least 50 
percent greater than the unemployment rate of the 
United States, 12 weeks), or if the participation is 
for a week that immediately follows 4 consecutive 
weeks of such participation. 
"(ii) LIMITED AUTHORITY TO COUNT LESS THAN FULL 
WEEK OF PARTICIPATION.—For purposes of clause (i) 
of this subpgiragraph, on not more than 1 occasion 
per individual, the State shall consider participation 
of the individual in an activity described in subsection 
(d)(6) for 3 or 4 days during a week as a week of 
participation in the activity by the individual. 
"(B) SINGLE PARENT WITH CHILD UNDER AGE 6 DEEMED 
TO BE MEETING WORK PARTICIPATION REQUIREMENTS IF PAR-
ENT IS ENGAGED IN WORK FOR 20 HOURS PER WEEK.—For 
purposes of determining monthly participation rates under 
subsection (b)(l)(B)(i), a recipient in a 1-parent family who 
is the parent of a child who has not attained 6 years 
of age is deemed to be engaged in work for a month 
if the recipient is engaged in work for an average of at 
least 20 hours per week during the month. 
"(C) T E E N HEAD O F HOUSEHOLD WHO MAINTAINS SATIS-
FACTORY SCHOOL ATTENDANCE DEEMED TO BE MEETING 
WORK PARTICIPATION REQUIREMENTS.—For purposes of 
determining 
monthly 
participation 
rates 
under 
sub-
section (b)(l)(B)(i), a recipient who is a single head of 
household and has not attained 20 years of age is deemed, 
subject to subparagraph (D) of this paragraph, to be 
engaged in work for a month in a fiscal year if the recipi-
ent— 
"(i) maintains satisfactory attendance at secondary 
school or the equivalent during the month; or 
"(ii) participates in education directly related to 
employment for at least the minimum average number 
of hours per week specified in the table set forth in 
paragraph (1)(A) of this subsection. 
"(D) NUMBER OF PERSONS THAT MAY BE TREATED AS 
ENGAGED IN WORK BY VIRTUE OF PARTICIPATION IN VOCA-
TIONAL EDUCATION ACTIVITIES OR BEING A TEEN HEAD OF 
HOUSEHOLD WHO MAINTAINS SATISFACTORY SCHOOL ATTEND-
ANCE.—For purposes of determining monthly participation 
rates under paragraphs (l)(B)(i) and (2)(B) of subsection 
(b), not more th£ui 20 percent of individuals in all families 
and in 2-parent families may be determined to be engaged 
in work in the State for a month by reason of participation 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2133 
in vocational educational training or deemed to be engaged 
in work by reason of subparagraph (C) of this paragraph. 
"(d) WORK ACTIVITIES DEFINED.—AS used in this section, the 
term 'work activities' means— 
"(1) unsubsidized emplojnnent; 
"(2) subsidized private sector employment; 
"(3) subsidized public sector employment; 
"(4) work experience (including work associated with the 
refurbishing of publicly assisted housing) if sufficient private 
sector emplo3nnent is not available; 
"(5) on-the-job training; 
"(6) job search and job readiness assistance; 
"(7) community service programs; 
"(8) vocational educational training (not to exceed 12 
months with respect to any individual); 
"(9) job skills training directly related to employment; 
"(10) education directly related to emplo5nnent, in the case 
of a recipient who has not received a high school diploma 
or a certificate of high school equivsilency; 
"(11) satisfactory attendance at secondary school or in a 
course of study leading to a certificate of general equivalence, 
in the case of a recipient who has not completed secondary 
school or received such a certificate; and 
"(12) the provision of child care services to an individual 
who is participating in a community service program. 
"(e) PENALTIES AGAINST INDIVIDUALS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
if an individual in a family receiving assistance under the 
State program funded imder this part refuses to engage in 
work required in accordance with this section, the State shall— 
"(A) reduce the amount of assisteuice otherwise payable 
to the family pro rata (or more, at the option of the State) 
with respect to any period during a month in which the 
individual so refuses; or 
"(B) terminate such assistance, 
subject to such good cause and other exceptions as the State 
may establish. 
"(2) EXCEPTION.—Notwithstanding paragraph (1), a State 
may not reduce or terminate assistance under the State pro-
gram funded under this part based on a refijsal of an individual 
to work if the individual is a single custodial parent caring 
for a child who has not attained 6 years of age, and the 
individual proves that the individual has a demonstrated inabil-
ity (as determined by the State) to obtain needed child care, 
for 1 or more of the following reasons: 
"(A) Unavailability of appropriate child care within 
a reasonable distance fi*om the individual's home or work 
site. 
"(B) Unavailability or unsuitability of informed child 
care by a relative or under other arrangements. 
"(C) Unavailability of appropriate and affordable for-
mal child care arrangements. 
"(f) NONDISPLACEMENT IN WORK ACTIVITIES.— 
"(1) IN GENERAL.—Subject to paragraph (2), an adult in 
a fgunily receiving assistance under a State program funded 
under this part attributable to fimds provided by the Federal 
110 STAT. 2134 
PUBLIC LAW 104-193—AUG. 22, 1996 
Government may fill a vacant emplo3anent position in order 
to engage in a work activity described in subsection (d), 
"(2) N o FILLING OF CERTAIN VACANCIES.—No adult in a 
work activity described in subsection (d) which is funded, in 
whole or in part, by funds provided by the Federal Government 
shall be employed or assigned— 
"(A) when any other individual is on layoff fi'om the 
same or any substantially equivalent job; or 
"(B) if the employer has terminated the employment 
of any regular employee or otherwise caused an involuntary 
reduction of its workforce in order to fill the vacancy so 
created with an adult described in paragraph (1). 
"(3) GRIEVANCE PROCEDURE.—A State with a program 
funded under this part shall establish and maintain a grievance 
procedure for resolving complaints of alleged violations of para-
graph (2). 
"(4) No PREEMPTION.—Nothing in this subsection shall pre-
empt or supersede any provision of State or local law that 
provides greater protection for employees from displacement. 
"(g) SENSE OF THE CONGRESS.—It is the sense of the Congress 
that in compl5niig with this section, each State that operates a 
program funded imder this part is encouraged to assign the highest 
priority to requiring adults in 2-parent families and adults in single-
parent families that include older preschool or school-age children 
to be engaged in work activities. 
"(h) SENSE OF THE CONGRESS THAT STATES SHOULD IMPOSE 
CERTAIN REQUIREMENTS ON NONCUSTODIAL, NONSUPPORTING MINOR 
PARENTS.—It is the sense of the Congress that the States should 
require noncustodial, nonsupporting parents who have not attained 
18 years of age to fulfill community work obligations and attend 
appropriate parenting or money management classes after school. 
"(i) REVIEW OF IMPLEMENTATION OF STATE WORK PROGRAMS.— 
During fiscal year 1999, the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of 
the Senate shall hold hearings and engage in other appropriate 
activities to review the implementation of this section by the States, 
and shall invite the Governors of the States to testify before them 
regarding such implementation. Based on such hearings, such 
Committees may introduce such legislation as may be appropriate 
to remedy any problems with the State programs operated pursuant 
to this section. 
42 use 608. 
"SEC. 408. PROfflBITIONS; REQUIREMENTS. 
"(a) IN GENERAL.— 
"(1) 
No 
ASSISTANCE FOR FAMILIES WITHOUT A MINOR 
CHILD.—^A State to which a grant is made rnider section 403 
shall not use any part of the grant to provide assistance to 
a family— 
"(A) unless the family includes— 
"(i) a minor child who resides with a custodial 
parent or other adult caretaker relative of the 
child; or 
"(ii) a pregnant individual; and 
"(B) if the family includes an adult who has received 
assistance under any State program funded under this 
part attributable to funds provided by the Federal Govern-
ment, for 60 months (whether or not consecutive) after 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2135 
the date the State program funded under this part com-
mences (unless an exception described in subparagraph 
(B), (C), or (D) of paragraph (7) apphes). 
"(2) REDUCTION OR ELIMINATION OF ASSISTANCE FOR NON-
COOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD 
SUPPORT.—If the agency responsible for administering the State 
plan approved imder part D determines that an individual 
is not cooperating with the State in establishing paternity 
or in establishing, modifying, or enforcing a support order with 
respect to a child of the individual, and the individual does 
not qualify for any good cause or other exception established 
by the State pursuant to section 454(29), then the State— 
"(A) shall deduct from the assistance that would other-
wise be provided to the family of the individual under 
the State program funded under this part an amount equal 
to not less than 25 percent of the amoimt of such assistance; 
and 
"(B) may deny the family any assistance under the 
State program. 
"(3) No ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN 
SUPPORT RIGHTS TO THE STATE.— 
"(A) IN GENERAL.—A State to which a grant is made 
under section 403 shall require, as a condition of providing 
assistance to a family under the State program funded 
under this part, that a member of the family assign to 
the State any rights the family member may have (on 
behalf of the family member or of any other person for 
whom the family member has applied for or is receiving 
such assisteince) to support from £iny other person, not 
exceeding the total amount of assistance so provided to 
the family, which accrue (or have accrued) before the date 
the family leaves the program, which assignment, on and 
after the date the family leaves the program, shall not 
apply with respect to any support (other than support 
collected pursuEint to section 464) which accrued before 
the family received such assistance and which the State 
has not collected by— 
"(i) September 30, 2000, if the assignment is 
executed on or after October 1, 1997, and before Octo-
ber 1, 2000; or 
"(ii) the date the family leaves the program, if 
the assignment is executed on or after October 1, 2000. 
"(B) LIMITATION.—A State to which a grant is made 
under section 403 shall not require, as a condition of provid-
ing assistance to any family imder the State program 
funded under this part, that a member of the family assign 
to the State any rights to support described in subpara-
graph (A) which accrue after the date the family leaves 
the program. 
"(4) No ASSISTANCE FOR TEENAGE PARENTS WHO DO NOT 
ATTEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PRO-
GRAM.—^A State to which a grant is made under section 403 
shall not use any part of the grant to provide assistance to 
an individual who has not attained 18 years of age, is not 
married, has a minor child at least 12 weeks of age in his 
or her care, and has not successfully completed a high-school 
110 STAT. 2136 
PUBLIC LAW 104-193—AUG. 22, 1996 
education (or its equivalent), if the individual does not partici-
pate in— 
"(A) educational activities directed toward the attain-
ment of a high school diploma or its equivalent; or 
"(B) an alternative educational or training program 
that has been approved by the State. 
"(5) No ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN 
ADULT-SUPERVISED SETTINGS.— 
"(A) I N GENERAL.— 
"(i) 
REQUIREMENT.—Except 
as 
provided 
in 
subparagraph (B), a State to which a grant is made 
under section 403 shall not use any part of the grant 
to provide assistance to an individual described in 
clause (ii) of this subparagraph if the individual and 
the minor child referred to in clause (ii)(II) do not 
reside in a place of residence maintained by a parent, 
legal guardian, or other adult relative of the individual 
as such parent's, guardian's, or adult relative's own 
home. 
"(ii) 
INDIVIDUAL DESCRIBED.— For 
purposes 
of 
clause (i), an individual described in this clause is 
an individual who— 
"(I) has not attained 18 years of age; and 
"(II) is not married, and has a minor child 
in his or her care. 
"(B) EXCEPTION.— 
"(i) PROVISION OF, OR ASSISTANCE IN LOCATING, 
ADULT-SUPERVISED LIVING ARRANGEMENT.—In the case 
of an individual who is described in clause (ii), the 
State agency referred to in section 402(a)(4) shall pro-
vide, or assist the individual in locating, a second 
chance home, maternity home, or other appropriate 
adult-supervised supportive living arrangement, taking 
into consideration the needs and concerns of the 
individual, unless the State agency determines that 
the individual's current living arrangement is appro-
priate, and thereafter shall require that the individual 
and the minor child referred to in subparagraph 
(A)(ii)(II) reside in such living arrangement as a condi-
tion of the continued receipt of assistance under the 
State program funded under this part attributable to 
funds provided by the Federal Government (or in an 
alternative 
appropriate 
arrangement, 
should 
cir-
cumstances change and the current arrangement cease 
to be appropriate). 
"(ii) 
INDIVIDUAL 
DESCRIBED.—For purposes 
of 
clause 
(i), 
an 
individual 
is 
described 
in 
this 
clause if the individual is described in subparagraph 
(A)(ii), and— 
"(I) the individual has no parent, legal guard-
ian, or other appropriate adult relative described 
in subclause (II) of his or her own who is living 
or whose whereabouts are known; 
"(II) no living parent, legal guardian, or other 
appropriate adult relative, who would otherwise 
meet applicable State criteria to act as the individ-
ual's legal guardian, of such individual allows the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2137 
individual to live in the home of such parent, 
guardian, or relative; 
"(HI) the State agency determines that— 
"(aa) the individual or the minor child 
referred to in subparagraph (A)(ii)(II) is being 
or has been subjected to serious physical or 
emotional harm, sexual abuse, or exploitation 
in the residence of the individual's own parent 
or legal guardian; or 
"(bb) substantial evidence exists of an act 
or failure to act that presents an imminent 
or serious harm if the individual and the minor 
child lived in the same residence with the 
individual's own parent or legal guardian; or 
"(IV) the State agency otherwise determines 
that it is in the best interest of the minor child 
to waive the requirement of subparagraph (A) with 
respect to the individual or the minor child. 
"(iii) SECOND-CHANCE HOME.—For purposes of this 
subpsiragraph, the term 'second-chance home' means 
an entity that provides individuals described in clause 
(ii) with a supportive and supervised living arrange-
ment in which such individuals are required to learn 
parenting skills, including child development, family 
budgeting, health and nutrition, and other skills to 
promote their long-term economic independence and 
the well-being of their children. 
"(6) N o MEDICAL SERVICES.— 
"(A) IN GENERAL.—A State to which a grant is made 
under section 403 shall not use £iny part of the grant 
to provide medical services. 
"(B) EXCEPTION FOR PREPREGNANCY FAMILY PLANNING 
SERVICES.—As used in subparagraph (A), the term 'medical 
services' 
does 
not 
include 
prepregnancy 
family 
planning services. 
"(7) No ASSISTANCE FOR MORE THAN 5 YEARS.— 
"(A) IN GENERAL.—A State to which a grant is made 
under section 403 shall not use any part of the grant 
to provide assistance to a family that includes an adult 
who has received assistance under any State program 
funded under this part attributable to fimds provided by 
the Federal Government, for 60 months (whether or not 
consecutive) after the date the State program funded under 
this part commences, subject to this paragraph. 
"(B) MINOR CHILD EXCEPTION.—In determining the 
number of months for which an individual who is a parent 
or pregnant has received assistance under the State pro-
gram funded under this part, the State shall disregard 
any month for which such assistance was provided with 
respect to the individual and during which the individual 
was— 
"(i) a minor child; and 
"(ii) not the head of a household or married to 
the head of a household. 
"(C) HARDSHIP EXCEPTION.— 
"(i) IN GENERAL.—The State may exempt a family 
from the application of subparagraph (A) by reason 
110 STAT. 2138 
PUBLIC LAW 104-193—AUG. 22, 1996 
of hsirdship or if the family includes an individual 
who has been battered or subjected to extreme cruelty, 
"(ii) LIMITATION.—The number of famiHes with 
respect to which an exemption made by a State under 
clause (i) is in effect for a fiscal year shall not exceed 
20 percent of the average monthly number of families 
to which assistance is provided under the State pro-
gram funded under this part. 
"(iii) BATTERED OR SUBJECT TO EXTREME CRUELTY 
DEFINED.—For purposes of clause (i), an individual has 
been battered or subjected to extreme cruelty if the 
individual has been subjected to— 
"(I) physical acts that resulted in, or threat-
ened to result in, physical injury to the individual; 
"(II) sexual abuse; 
"(III) sexual activity involving a dependent 
child; 
"(IV) being forced as the caretaker relative 
of a dependent child to engage in nonconsensual 
sexued acts or activities; 
"(V) threats of, or attempts at, physical or 
sexual abuse; 
"(VI) mental abuse; or 
"(VII) neglect or deprivation of medical care. 
"(D) DISREGARD OF MONTHS OF ASSISTANCE RECEIVED 
BY ADULT WHILE LIVING ON AN INDIAN RESERVATION OR 
IN AN ALASKAN NATIVE VILLAGE WITH 50 PERCENT 
UNEMPLOYMENT.—In determining the number of months 
for which £ui adult has received assistance under the State 
program funded under this part, the State shall disregard 
any month during which the adult lived on an Indian 
reservation or in an Alaskgin Native village if, during the 
month— 
"(i) at least 1,000 individuals were living on the 
reservation or in the village ; and 
"(ii) at least 50 percent of the adults living on 
the reservation or in the village were unemployed. 
"(E) 
RULE OF INTERPRETATION.—Subparagraph 
(A) 
shall not be interpreted to require any State to provide 
assistance to any individual for any period of time under 
the State program funded imder this part. 
"(F) RULE OF INTERPRETATION.—This part shall not 
be interpreted to prohibit any State from expending State 
funds not originating with the Federal Government on 
benefits for children or families that have become ineligible 
for assistance under the State program funded luider this 
part by reason of subparagraph (A). 
\8) 
DENIAL OF ASSISTANCE FOR lo YEARS TO A PERSON 
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE 
IN ORDER TO OBTAIN ASSISTANCE IN 2 OR MORE STATES.—A 
State to which a grant is made under section 403 shall not 
use any part of the grant to provide cash assistance to an 
individual during the 10-year period that begins on the date 
the individual is convicted in Federal or State court of having 
made a fraudulent statement or representation with respect 
to the place of residence of the individual in order to receive 
assistance simultaneously from 2 or more States under pro-
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2139 
grams that are funded under this title, title XIX, or the Food 
Stamp Act of 1977, or benefits in 2 or more States under 
the supplemental security income program under title XVI. 
The preceding sentence shall not apply with respect to a convic-
tion of an individual, for any month beginning after the Presi-
dent of the United States grants a pardon with respect to 
the conduct which was the subject of the conviction. 
"(9) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS AND 
PROBATION AND PAROLE VIOLATORS.— 
"(A) IN GENERAL.—A State to which a grant is made 
under section 403 shall not use any part of the grant 
to provide assistance to any individual who is— 
"(i) fleeing to avoid prosecution, or custody or 
confinement after conviction, under the laws of the 
place from which the individual flees, for a crime, 
or an attempt to commit a crime, which is a felony 
under the laws of the place from which the individual 
flees, or which, in the case of the State of New Jersey, 
is a high misdemeemor under the laws of such 
State; or 
"(ii) violating a condition of probation or parole 
imposed under Federal or State law. 
The preceding sentence shall not apply with respect to 
conduct of an individual, for any month beginning after 
the President of the United States grants a pardon with 
respect to the conduct. 
"(B) EXCHANGE OF INFORMATION WITH LAW ENFORCE-
MENT AGENCIES.—If a state to which a grant is made 
under section 403 establishes safeguards against the use 
or disclosure of information about applicants or recipients 
of assistance under the State program fimded imder this 
part, the safeguards shall not prevent the State agency 
administering the program fi-om furnishing a Federal, 
State, or local law enforcement officer, upon the request 
of the officer, with the current address of any recipient 
if the officer furnishes the agency with the name of the 
recipient and notifies the agency that— 
"(i) the recipient— 
"(I) is described in subparagraph (A); or 
"(II) has information that is necessary for the 
officer to conduct the official duties of the officer; 
and 
"(ii) the location or apprehension of the recipient 
is within such official duties. 
"(10) DENIAL OF ASSISTANCE FOR MINOR CHILDREN WHO 
ARE ABSENT FROM THE HOME FOR A SIGNIFICANT PERIOD.— 
"(A) IN GENERAL.—A State to which a grant is made 
under section 403 shall not use any part of the grant 
to provide assistance for a minor child who has been, 
or is expected by a parent (or other caretaker relative) 
of the child to be, absent from the home for a period 
of 45 consecutive days or, at the option of the State, such 
period of not less than 30 and not more than 180 consecu-
tive days as the State may provide for in the State plan 
submitted pursuant to section 402. 
"(B) 
STATE AUTHORITY TO ESTABLISH GOOD CAUSE 
EXCEPTIONS.—The State may establish such good cause 
110 STAT. 2140 
PUBLIC LAW 104-193—AUG. 22, 1996 
exceptions to subparagraph (A) as the State considers 
appropriate if such exceptions are provided for in the State 
plan submitted pursuant to section 402. 
"(C) DENIAL OF ASSISTANCE FOR RELATIVE WHO FAILS 
TO NOTIFY STATE AGENCY OF ABSENCE OF CHILD.—A State 
to which a grant is made under section 403 shsdl not 
use any part of the grant to provide assistance for an 
individual who is a parent (or other caretaker relative) 
of a minor child and who fails to notify the agency admin-
istering the State program funded under this part of the 
absence of the minor child from the home for the period 
specified in or provided for pursuant to subparagraph (A), 
by the end of the 5-day period that begins with the date 
that it becomes clear to the parent (or relative) that the 
minor child will be absent for such period so specified 
or provided for. 
"(11) MEDICAL ASSISTANCE REQUIRED TO BE PROVIDED FOR 
CERTAIN FAMILIES HAVING EARNINGS FROM EMPLOYMENT OR 
CHILD SUPPORT.— 
"(A) EARNINGS FROM EMPLOYMENT.—A State to which 
a grant is made imder section 403 and which has a State 
plan approved under title XIX shall provide that in the 
case of a family that is treated (under section 1931(b)(1)(A) 
for purposes of title XIX) as receiving aid under a State 
plan approved imder this part (as in effect on July 16, 
1996), that would become ineligible for such aid because 
of hours of or income fi-om employment of the caretaker 
relative (as defined under this part as in effect on such 
date) or because of section 402(a)(8)(B)(ii)(II) (as so in 
effect), and that was so treated as receiving such aid in 
at least 3 of the 6 months immediately preceding the month 
in which such ineligibility begins, the family shall remain 
eligible for medical assistance under the State's plan 
approved under title XIX for an extended period or periods 
as provided in section 1925 or 1902(e)(1) (as applicable), 
and that the family will be appropriately notified of such 
extension as required by section 1925(a)(2). 
"(B) CHILD SUPPORT.—A State to which a grant is 
made under section 403 and which has a State plan 
approved under title XIX shall provide that in the case 
of a family that is treated (under section 1931(b)(1)(A) 
for purposes of title XEX) as receiving aid under a State 
plan approved under this part (as in effect on July 16, 
1996), that would become ineligible for such aid as a result 
(wholly or partly) of the collection of child or spousal sup-
port under part D and that was so treated as receiving 
such aid in at least 3 of the 6 months immediately preced-
ing the month in which such ineligibility begins, the family 
shall remain eligible for medical assistance under the 
State's plan approved under title XIX for an extended 
period or periods as provided in section 1931(c)(1). 
"(b) INDIVIDUAL RESPONSIBILITY PLANS.— 
"(1) ASSESSMENT.—The State agency responsible for admin-
istering the State program funded imder this part shall make 
an initial assessment of the skills, prior work experience, and 
employability of each recipient of assistance under the program 
who— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2141 
"(A) has attained 18 years of age; or 
"(B) has not completed high school or obtained a certifi-
cate of high school equivalency, and is not attending second-
ary school. 
"(2) CONTENTS OF PLANS.— 
"(A) IN GENERAL.—On the basis of the assessment 
made luider subsection (a) with respect to an individual, 
the State agency, in consultation with the individual, may 
develop an individual responsibility plan for the individual, 
which— 
"(i) sets forth an employment goal for the individ-
ual and a plan for moving the individual immediately 
into private sector employment; 
"(ii) sets forth the obligations of the individual, 
which may include a requirement that the individual 
attend school, maintain certain grades and attendsince, 
keep school age children of the individual in school, 
immunize children, attend parenting and money 
management classes, or do other things that will help 
the individual become and remain employed in the 
private sector; 
"(iii) to the greatest extent possible is designed 
to move the individual into whatever private sector 
emplo3nnent the individual is capable of handling as 
quickly as possible, £ind to increase the responsibility 
and amount of work the individual is to handle over 
time; 
"(iv) describes the services the State will provide 
the individusd so that the individual will be able to 
obtain and keep employment in the private sector, 
and describe the job counseling and other services that 
will be provided by the State; and 
"(v) may require the individual to undergo appro-
priate subst£m.ce abuse treatment. 
"(B) TIMING.—The State agency may comply with para-
graph (1) with respect to an individual— 
"(i) within 90 days (or, at the option of the State, 
180 days) after the effective date of this part, in the 
case of an individual who, as of such effective date, 
is a recipient of aid under the State plan approved 
under part A (as in effect immediately before such 
effective date); or 
"(ii) within 30 days (or, at the option of the State, 
90 days) after the individusd is determined to be 
eligible for such assistance, in the case of any other 
individual. 
"(3) PENALTY FOR NONCOMPLLVNCE BY INDIVIDUAL.—In addi-
tion to any other penalties required under the State program 
funded under this part;, the State may reduce, by such amount 
as the State considers appropriate, the amount of assistance 
otherwise payable under the State program to a family that 
includes an individual who fails without good cause to comply 
with an individual responsibility plan signed by the individual. 
"(4) STATE DISCRETION.—The exercise of the authority of 
this subsection shall be within the sole discretion of the State. 
110 STAT. 2142 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(c) NONDISCRIMINATION PROVISIONS.—The following provisions 
of law shall apply to any program or activity which receives funds 
provided under this part: 
"(1) The Age Discrimination Act of 1975 (42 U.S.C. 6101 
et seq.). 
"(2) Section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794). 
"(3) The Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.). 
"(4) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d et seq.). 
"(d) ALIENS.—For special rules relating to the treatment of 
aliens, see section 402 of the Personal Responsibility and Work 
Opportimity Reconciliation Act of 1996. 
42 use 609. 
"SEC. 409. PENALTIES. 
"(a) IN GENERAL.—Subject to this section: 
"(1) USE OF GRANT IN VIOLATION OF THIS PART.— 
"(A) GENERAL PENALTY.—If an audit conducted under 
chapter 75 of title 31, United States Code, finds that an 
amount paid to a State under section 403 for a fiscal 
year has been used in violation of this part, the Secretary 
shall reduce the grant payable to the State under section 
403(a)(1) for the immediately succeeding fiscal year quarter 
by the amount so used. 
"(B) 
ENHANCED 
PENALTY FOR INTENTIONAL 
VIOLA-
TIONS.—If the State does not prove to the satisfaction of 
the Secretary that the State did not intend to use the 
amount in violation of this part, the Secretary shall further 
reduce the grant payable to the State under section 
403(a)(1) for the immediately succeeding fiscal year quarter 
by an amount equal to 5 percent of the State family assist-
ance grant. 
"(2) FAILURE TO SUBMIT REQUIRED REPORT.— 
"(A) IN GENERAL.—If the Secretary determines that 
a State has not, within 1 month after the end of a fiscal 
quarter, submitted the report required by section 411(a) 
for the quarter, the Secretary shall reduce the grant pay-
able to the State under section 403(a)(1) for the imme-
diately succeeding fiscal year by an amount equal to 4 
percent of the State family assistance grant. 
"(B) RESCISSION OF PENALTY.—The Secretary shall 
rescind a penalty imposed on a State under subparagraph 
(A) with respect to a report if the State submits the report 
before the end of the fiscal quarter that immediately suc-
ceeds the fiscal quarter for which the report was required. 
"(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES.— 
"(A) IN GENERAL.—If the Secretary determines that 
a State to which a grant is made under section 403 for 
a fiscal year has failed to comply with section 407(a) for 
the fiscal year, the Secretary shall reduce the grant payable 
to the State under section 403(a)(1) for the immediately 
succeeding fiscal year by an amount equal to not more 
than the applicable percentage of the State family assist-
ance grant. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2143 
"(B) APPLICABLE PERCENTAGE DEFINED.—^As used in 
subparagraph (A), the term 'apphcable percentage' means, 
with respect to a State— 
"(i) if a penalty was not imposed on the State 
under subparagraph (A) for the immediately preceding 
fiscal year, 5 percent; or 
"(ii) if a penalty was imposed on the State under 
subparagraph (A) for the immediately preceding fiscal 
year, the lesser of— 
"(I) the percentage by which the grant payable 
to the State under section 403(a)(1) was reduced 
for such preceding fiscal year, increased by 2 
percentage points; or 
"(II) 21 percent. 
"(C) 
PENALTY BASED ON SEVERITY OF FAILURE.—The 
Secretary shall impose reductions under subparagraph (A) 
with respect to a fiscal year based on the degree of non-
compliance, and may reduce the penalty if the noncompli-
ance is due to circumstances that caused the State to 
become a needy State (as defined in section 403(b)(6)) dur-
ing the fiscal year. 
"(4) FAILURE TO PARTICIPATE IN THE INCOME AND ELIGI-
BILITY VERIFICATION SYSTEM.—If the Secretary determines that 
a State program funded xmder this part is not participating 
during a fiscal year in the income and eligibility verification 
system required by section 1137, the Secretary shall reduce 
the grant payable to the State under section 403(a)(1) for the 
immediately succeeding fiscal year by an amount equal to not 
more than 2 percent of the State family assistance grant. 
"(5) FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT 
AND 
CHILD 
SUPPORT ENFORCEMENT REQUIREMENTS UNDER 
PART D.—Notwithstanding any other provision of this Act, if 
the Secretary determines that the State agency that admin-
isters a program fimded under this part does not enforce the 
penalties requested by the agency administering part D against 
recipients of assistance under the State program who tail to 
cooperate in establishing paternity or in establishing, modify-
ing, or enforcing a child support order in accordance with 
such part and who do not qualify for any good cause or other 
exception established by the State under section 454(29), the 
Secretary shall reduce the grant payable to the State under 
section 403(a)(1) for the immediately succeeding fiscal year 
(without regard to this section) by not more than 5 percent. 
"(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR 
STATE WELFARE PROGRAMS.—If the Secretary determines that 
a State has failed to repay any amount borrowed fi'om the 
Federal Loan Fund for State Welfare Programs established 
under section 406 within the period of maturity applicable 
to the loan, plus any interest owed on the loan, the Secretary 
shall reduce the grant payable to the State under section 
403(a)(1) for the immediately succeeding fiscal year quarter 
(without regard to this section) by the outstanding loan amoimt, 
plus the interest owed on the outstanding amount. The Sec-
retary shall not forgive any outstanding loan amount or interest 
owed on the outstanding amount. 
"(7) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL 
OF HISTORIC EFFORT.— 
110 STAT. 2144 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(A) IN GENERAL.—The Secretary shall reduce the grant 
payable to the State under section 403(a)(1) for fiscal year 
1998, 1999, 2000, 2001, 2002, or 2003 by the amount (if 
any) by which qualified State expenditures for the then 
immediately preceding fiscal year are less than the 
applicable percentage of historic State expenditures with 
respect to such preceding fiscal year. 
"(B) DEFINITIONS.—As used in this paragraph: 
"(i) QUALIFIED STATE EXPENDITURES.— 
"(I) IN GENERAL.—The term 'qualified State 
expenditures' means, with respect to a State and 
a fiscal year, the total expenditures by the State 
during the fiscal year, under all State programs, 
for any of the following with respect to eligible 
families: 
"(aa) Cash assistance, 
"(bb) Child care assistance, 
"(cc) Educational activities designed to 
increase self-sufficiency, job training, and 
work, excluding any expenditure for public 
education in the State except expenditures 
which involve the provision of services or 
assistance to a member of an eligible family 
which is not generally available to persons 
who are not members of an eligible family, 
"(dd) Administrative costs in connection 
with the matters described in items (aa), (bb), 
(cc), and (ee), but only to the extent that such 
costs do not exceed 15 percent of the total 
amount of qualified State expenditures for the 
fiscal year. 
"(ee) Any other use of funds allowable 
under section 404(a)(1). 
"(II) 
EXCLUSION OF TRANSFERS FROM OTHER 
STATE AND LOCAL PROGRAMS.—Such term does not 
include expenditures under any State or local pro-
gram 
during 
a 
fiscal 
year, 
except 
to 
the 
extent that— 
"(aa) the expenditures exceed the amoimt 
expended under the State or local program 
in the fiscal year most recently ending before 
the date of the enactment of this part; or 
"(bb) the State is entitled to a payment 
under former section 403 (as in effect imme-
diately before such date of enactment) with 
respect to the expenditures. 
"(Ill) ELIGIBLE FAMILIES.—AS used in sub-
clause (I), the term 'eligible families' means fami-
lies eligible for assistance under the State program 
funded under this part, and families that would 
be eligible for such assistance but for the applica-
tion of section 408(a)(7) of this Act or section 402 
of the Personal^esponsibility and Work Oppor-
tunity Reconciliation Act of 1996. 
"(ii) 
APPLICABLE 
PERCENTAGE.—The 
term 
'applicable percentage' means for fiscal years 1997 
through 2002, 80 percent (or, if the State meets the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2145 
requirements of section 407(a) for the fiscal year, 75 
percent) reduced (if appropriate) in accordance with 
subparagraph (C)(ii). 
"(iii) HISTORIC STATE EXPENDITURES.—The term 
*historic State expenditures' means, with respect to 
a State, the lesser of— 
"(I) the expenditures by the State under parts 
A and F (as in effect during fiscal year 1994) 
for fiscal year 1994; or 
"(11) the amount which bears the same ratio 
to the amount described in subclause (I) as— 
"(aa) the State family assistance grant, 
plus the total amount required to be paid to 
the State under former section 403 for fiscal 
year 1994 with respect to amounts expended 
by the State for child care under subsection 
(g) or (i) of section 402 (as in effect during 
fiscal year 1994); bears to 
"(bb) the total amount required to be paid 
to the State under former section 403 (as in 
effect 
during fiscal year 
1994) for 
fiscal 
year 1994. 
Such term does not include any expenditures under 
the State plan approved imder part A (as so in effect) 
on behalf of individuals covered by a tribal family 
assistance plan approved under section 412, as deter-
mined by the Secretary. 
"(iv) 
EXPENDITURES BY THE STATE.—The term 
'expenditures by the State' does not include— 
"(I) any expenditures fi*om amounts made 
available by the Federal Government; 
"(11) any State funds expended for the medic-
aid program under title XIX; 
"(III) any State funds which are used to match 
Federal funds; or 
"(IV) any State funds which are expended as 
a condition of receiving Federal funds under Fed-
eral programs other than under this part. 
Notwithstanding subclause (IV) of the preceding sen-
tence, such term includes expenditures by a State for 
child care in a fiscal year to the extent that the total 
amount of such expenditures does not exceed an 
amount equal to the amount of State expenditures 
in fiscal year 1994 or 1995 (whichever is greater) that 
equal the non-Federal share for the programs described 
in section 418(a)(1)(A). 
"(8) SUBSTANTIAL NONCOMPLIANCE OF STATE CHILD SUPPORT 
ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D.— 
"(A) IN GENERAL.—If a State program operated under 
part D is found as a result of a review conducted under 
section 452(a)(4) not to have complied substantially with 
the requirements of such part for any quarter, and the 
Secretary determines that the program is not complying 
substantially with such requirements at the time the find-
ing is made, the Secretary shall reduce the grant payable 
to the State under section 403(a)(1) for the quarter and 
each subsequent quarter that ends before the 1st quarter 
110 STAT. 2146 
PUBLIC LAW 104-193—AUG. 22, 1996 
throughout which the program is found to be in substantial 
compSance with such requirements by— 
"(i) not less than 1 nor more than 2 percent; 
"(ii) not less than 2 nor more than 3 percent, 
if the finding is the 2nd consecutive such finding made 
as a result oi such a review; or 
"(iii) not less than 3 nor more than 5 percent, 
if the finding is the 3rd or a subsequent consecutive 
such finding made as a result of such a review. 
"(B) 
DISREGARD OF NONCOMPLIANCE WHICH IS OF A 
TECHNICAL NATURE.—For purposes of subparagraph (A) and 
section 452(a)(4), a State which is not in full compliance 
with the requirements of this part shall be determined 
to be in substantial compliance with such requirements 
only if the Secretary determines that any noncompliance 
with such requirements is of a technical nature which 
does not adversely affect the performance of the State's 
progreim operated under part D. 
"(9) 
FAILURE TO COMPLY WITH 5-YEAR LIMIT ON ASSIST-
ANCE.—If the Secretary determines that a State has not com-
plied with section 408(a)(1)(B) during a fiscal year, the Sec-
retary shall reduce the grant payable to the State imder section 
403(a)(1) for the immediately succeeding fiscal year by an 
amoimt equal to 5 percent of the State family assistance grant. 
"(10) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTIN-
GENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.— 
If, at the end of any fiscal year during which amounts from 
the Contingency Fund for State Welfare Programs have been 
paid to a State, the Secreteiry finds that the expenditures 
under the State program funded under this part for the fiscal 
year (excluding any amounts made available by the Federal 
(Jovemment) are less than 100 percent of historic State 
expenditures (as defined in paragraph (7)(BXiii) of this sub-
section), the Secretary shall reduce the grant payable to the 
State under section 403(a)(1) for the immediately succeeding 
fiscal year by the total of the amounts so p£iid to the State. 
"(11) FAILURE TO MAINTAIN ASSISTANCE TO ADULT SINGLE 
CUSTODIAL PARENT WHO CANNOT OBTAIN CHILD CARE FOR CHILD 
UNDER AGE 6.— 
"(A) IN GENERAL.—If the Secretary determines that 
a State to which a grant is made under section 403 for 
a fiscal year has violated section 407(e)(2) during the fiscal 
year, the Secretary shall reduce the grant payable to the 
State under section 403(a)(1) for the immediately succeed-
ing fiscal year by an amoimt equal to not more than 5 
percent of the State family assistance grant. 
"(B) 
PENALTY BASED ON SEVERITY OF FAILURE.—The 
Secretary shall impose reductions imder subparagraph (A) 
with respect to a fiscal year based on the degree of non-
compliance. 
"(12) 
FAILURE TO EXPEND ADDITIONAL STATE FUNDS TO 
REPLACE GRANT REDUCTIONS.—If the grant payable to a State 
imder section 403(a)(1) for a fiscal year is reduced by reason 
of this subsection, the State shall, during the immediately 
succeeding fiscal year, expend imder the State program funded 
under this part an amount equal to the total amount of such 
reductions. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2147 
"(b) REASONABLE CAUSE EXCEPTION.— 
"(1) IN GENERAL.—The Secretary may not impose a penalty 
on a State under subsection (a) with respect to a requirement 
if the Secretary determines that the State has reasonable cause 
for failing to comply with the requirement. 
"(2) EXCEPTION,—Paragraph (1) of this subsection shall 
not apply to any penalty iinder paragraph (7) or (8) of sub-
section (a). 
"(c) CORRECTIVE COMPLIANCE PLAN.— 
"(1) IN GENERAL.— 
"(A) NOTIFICATION OF VIOLATION.—Before imposing a 
penalty against a State under subsection (a) with respect 
to a violation of this part, the Secretary shall notify the 
State of the violation and allow the State the opportunity 
to enter into a corrective complisince plan in accordance 
with this subsection which outlines how the State will 
correct the violation and how the State will insure continu-
ing compliance with this part. 
"(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLI-
ANCE PLAN.—During the 60-day period that begins on the 
date the State receives a notice provided under sub-
paragraph (A) with respect to a violation, the State may 
submit to the Federal Government a corrective compliance 
plan to correct the violation. 
"(C) CONSULTATION ABOUT MODIFICATIONS.—During 
the 60-day period that begins with the date the Secretary 
receives a corrective compliance plan submitted by a State 
in accordance with subparagraph (B), the Secretary may 
consult with the State on modifications to the plan. 
"(D) ACCEPTANCE OF PLAN.— A corrective compliance 
plsin submitted by a State in accordance with subparagraph 
(B) is deemed to be accepted by the Secretary if the Sec-
retary does not accept or reject the plan during 60-day 
period that begins on the date the plan is submitted. 
"(2) EFFECT OF CORRECTING VIOLATION.—The Secretary 
may not impose any penalty under subsection (a) with respect 
to any violation covered by a State corrective compliance plan 
accepted by the Secretary if the State corrects the violation 
pursuant to the plan. 
"(3) EFFECT OF FAILING TO CORRECT VIOLATION.—The Sec-
retary shall assess some or all of a penalty imposed on a 
State under subsection (a) with respect to a violation if 
the State does not, in a timely manner, correct the violation 
pursuant to a State corrective compliance plan accepted by 
the Secretary. 
"(4) INAPPLICABILITY TO FAILURE TO TIMELY REPAY A 
FEDERAL LOAN FUND FOR A STATE WELFARE PROGRAM.—This 
subsection shall not apply to the imposition of a penalty against 
a State under subsection (a)(6), 
"(d) LIMITATION ON AMOUNT OF PENALTIES.— 
"(1) IN GENERAL.—In imposing the penalties described in 
subsection (a), the Secretaiy shall not reduce any quEirterly 
payment to a State by more than 25 percent. 
"(2) CARRYFORWARD OF UNRECOVERED PENALTIES.—TO the 
extent that paragraph (1) of this subsection prevents the Sec-
retary from recovering during a fiscal year the full amount 
of penalties imposed on a State under subsection (a) of this 
110 STAT. 2148 
PUBLIC LAW 104-193—AUG. 22, 1996 
section for a prior fiscal year, the Secretary shall apply any 
remaining amount of such penalties to the grant payable to 
the State under section 403(a)(1) for the immediately succeeding 
fiscal year. 
42 use 610. 
"SEC. 410. APPEAL OF ADVERSE DECISION. 
"(a) IN GENERAL.—Within 5 days after the date the Secretary 
takes any adverse action under this part with respect to a State, 
the Secretary shall notify the chief executive officer of the State 
of the adverse action, including any action with respect to the 
State plan submitted under section 402 or the imposition of a 
penalty under section 409. 
"(b) ADMINISTRATIVE REVIEW.— 
"(1) IN GENERAL.—Within 60 days afl;er the date a State 
receives notice under subsection (a) of an adverse action, the 
State may appeal the action, in whole or in part, to the Depart-
mental Appeals Board established in the Department of Health 
and Human Services (in this section referred to as the 'Board') 
by filing an appeal with the Board. 
"(2) PROCEDURAL RULES.—The Board shall consider an 
appeal filed by a State under paragraph (1) on the basis of 
such documentation as the State may submit and as the Board 
may require to support the final decision of the Board. In 
deciding whether to uphold an adverse action or any portion 
of such an action, the Board shall conduct a thorough review 
of the issues and take into account all relevant evidence. The 
Board shall make a final determination with respect to an 
appeal filed under paragraph (1) not less than 60 days after 
the date the appeal is filed. 
"(c) JUDICIAL REVIEW OF ADVERSE DECISION.— 
"(1) IN GENERAL.—Within 90 days afl;er the date of a final 
decision by the Board under this section with respect to an 
adverse action taken against a State, the State may obtain 
judicial review of the final decision (and the findings incor-
porated into the final decision) by filing an action in— 
"(A) the district court of the United States for the 
judicial district in which the principal or headquarters 
office of the State agency is located; or 
"(B) the United States District Court for the District 
of Columbia. 
"(2) PROCEDURAL RULES.—The district court in which an 
action is filed under paragraph (1) shall review the final deci-
sion of the Board on tne record established in the administrative 
proceeding, in accordance with the standards of review pre-
scribed by subparagraphs (A) through (E) of section 706(2) 
of title 5, United States Code. The review shall be on the 
basis of the documents and supporting data submitted to the 
Board. 
42 use 611. 
"SEC. 411. DATA COLLECTION AND REPORTING. 
"(a) QUARTERLY REPORTS BY STATES.— 
"(1) GENERAL REPORTING REQUIREMENT.— 
"(A) CONTENTS OF REPORT.—Each eligible State shall 
collect on a monthly basis, and report to the Secretary 
on a quarterly basis, the following disaggregated case 
record information on the families receiving assistance 
under the State program funded under this part: 
"(i) The county of residence of the family. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2149 
"(ii) Whether a child receiving such assistance or 
an adult in the family is disabled. 
"(iii) The ages of the members of such families. 
"(iv) The number of individuals in the family, and 
the relation of each family member to the youngest 
child in the family. 
"(v) The employment status and earnings of the 
employed adult in the family. 
"(vi) The marital status of the adults in the family, 
including whether such adults have never married, 
are widowed, or are divorced. 
"(vii) The race £ind educational status of each adult 
in the family. 
"(viii) The race and educational status of each 
child in the family. 
"(ix) Whether the family received subsidized hous-
ing, medical assistance under the State plan approved 
under title XIX, food stamps, or subsidized child care, 
and if the latter 2, the amoxint received. 
"(x) The number of months that the family has 
received each tj^e of assistance under the program. 
"(xi) If the adults participated in, and the number 
of hours per week of participation in, the following 
activities: 
"(I) Education. 
"(II) Subsidized private sector employment. 
"(Ill) Unsubsidized employment. 
"(IV) Public sector employment, work experi-
ence, or community service. 
"(V) Job search. 
"(VI) Job skills training or on-the-job training. 
"(VII) Vocational education, 
"(xii) Information necessary to calculate participa-
tion rates under section 407. 
"(xiii) The tjrpe and amount of assisteince received 
under the program, including the amount of and reason 
for any reduction of assistance (including sanctions). 
"(xiv) Any amount of unearned income received 
by any member of the family. 
"(xv) The citizenship of the members of the family. 
"(xvi) From a sample of closed cases, whether the 
family left the program, and if so, whether the family 
left due to— 
"(I) emplojnnent; 
"(II) marriage; 
"(III) the prohibition set forth in section 
408(a)(7); 
"(IV) sanction; or 
"(V) State pohcy. 
"(B) USE OF ESTIMATES.— 
"(i) 
AUTHORITY.—^A State 
may 
comply 
with 
subparagraph (A) by submitting an estimate which 
is obtained through the use of scientifically acceptable 
seunpling methods approved by the Secretary. 
"(ii) SAMPLING AND OTHER METHODS.—The Sec-
retary shall provide the States with such case sampling 
plans and data collection procedures as the Secretary 
110 STAT. 2150 
PUBLIC LAW 104-193—AUG. 22, 1996 
deems necessary to produce statistically valid esti-
mates of the perform£ince of State programs funded 
under this part. The Secretary may develop and imple-
ment procedures for verifying the quality of data 
submitted by the States. 
"(2) REPORT ON USE OF FEDERAL FUNDS TO COVER ADMINIS-
TRATIVE COSTS AND OVERHEAD.—^The report required by para-
graph (1) for a fiscal quarter shall include a statement of 
the percentage of the funds paid to the State imder this part 
for the quarter that are used to cover administrative costs 
or overhead. 
"(3) REPORT ON STATE EXPENDITURES ON PROGRAMS FOR 
NEEDY FAMILIES.—The report required by paragraph (1) for 
a fiscal quarter shall include a statement of the total amount 
expended by the State during the quarter on programs for 
needy families. 
"(4) REPORT ON NONCUSTODIAL PARENTS PARTICIPATING IN 
WORK ACTIVITIES.—^The report required by paragraph (1) for 
a fiscal quarter shall include the number of noncustodial 
parents in the State who participated in work activities (as 
defined in section 407(d)) during the quarter. 
"(5) 
REPORT ON TRANSITIONAL SERVICES.—The 
report 
required by paragraph (1) for a fiscal quarter shall include 
the total amount expended by the State during the quarter 
to provide transitional services to a family that has ceased 
to receive assistance under this part because of employment, 
along with a description of such services. 
"(6) REGULATIONS.—The Secretary shall prescribe such 
regulations as may be necessary to define the data elements 
with respect to which reports are required by this subsection. 
"(b) ANNUAL REPORTS TO THE CONGRESS BY THE SECRETARY.— 
Not later than 6 months after the end of fiscal year 1997, and 
each fiscal year thereafter, the Secretary shall transmit to the 
Congress a report describing— 
"(1) whether the States are meeting— 
"(A) the participation rates described in section 
407(a); and 
"(B) the objectives of— 
"(i) increasing employment and earnings of needy 
families, and child support collections; and 
"(ii) decreasing out-of-wedlock pregnancies and 
child poverty; 
"(2) the demographic and financial characteristics of fami-
lies applying for assistemce, families receiving assistsuice, smd 
families that become ineligible to receive assistance; 
"(3) the characteristics of each State program fiinded under 
this part; and 
"(4) the trends in employment and earnings of needy fami-
lies with minor children living at home. 
42 use 612. 
"SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES. 
"(a) GRANTS FOR INDIAN TRIBES.— 
"(1) TRIBAL FAMILY ASSISTANCE GRANT.— 
"(A) IN GENERAL.—For each of fiscal years 1997, 1998, 
1999, 2000, 2001, and 2002, the Secretary shall pay to 
each Indian tribe that has an approved tribal family assist-
ance plan a tribal family assistance grant for the fiscal 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2151 
year in an amount equal to the amount determined under 
subparagraph (B), and shall reduce the grant payable under 
section 403(a)(1) to any State in which lies the service 
area or areas of the Indian tribe by that portion of the 
amount so determined that is attributable to expenditures 
by the State. 
"(B) AMOUNT DETERMINED.— 
"(i) IN GENERAL.—The amount determined under 
this subparagraph is an amoimt equal to the total 
amount of the Federal payments to a State or States 
under section 403 (as in effect during such fiscal yeeir) 
for fiscal year 1994 attributable to expenditures (other 
than child care expenditures) by the State or States 
under parts A and F (as so in effect) for fiscal year 
1994 for Indiein families residing in the service area 
or areas identified by the Indian tribe pursuant to 
subsection (b)(1)(C) of this section. 
"(ii) USE OF STATE SUBMITTED DATA.— 
"(I) IN GENERAL.—The Secretary shall use 
State submitted data to make each determination 
under clause (i). 
"(II) DISAGREEMENT WITH DETERMINATION.— 
If an Indian tribe or tribal organization disagrees 
with State submitted data described under sub-
clause (I), the Indian tribe or tribal organization 
may submit to the Secretary such additional 
information as may be relevant to making the 
determination under clause (i) and the Secretary 
may consider such information before making such 
determination. 
"(2) 
GRANTS 
FOR 
INDIAN 
TRIBES 
THAT 
RECEIVED 
JOBS FUNDS.— 
"(A) IN GENERAL.—^The Secretary shall pay to each 
eligible Indian tribe for each of fiscal years 1997, 1998, 
1999, 2000, 2001, and 2002 a grant in an amount equal 
to the amount received by the Indian tribe in fiscal year 
1994 under section 482(i) (as in effect during fiscal 
year 1994). 
"(B) ELIGIBLE INDIAN TRIBE.—For purposes of subpara-
graph (A), the term 'eligible Indian tribe' means an Indian 
tribe or Alaska Native organization that conducted a job 
opportunities and basic skills training program in fiscal 
year 1995 under section 482(i) (as in effect during fiscal 
year 1995). 
"(C) USE OF GRANT.—Each Indian tribe to which a 
grant is made under this paragraph shall use the grant 
for the purpose of operating a program to make work 
activities available to members of the Indian tribe. 
"(D) APPROPRLVTION.—Out of any money in the Treas-
ury of the United States not otherwise appropriated, there 
are appropriated $7,638,474 for each fiscal year specified 
in subparagraph (A) for grants under subparagraph (A). 
"(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.— 
"(1) IN GENERAL.—^Any Indian tribe that desires to receive 
a tribal family assistance grant shall submit to the Secretary 
a 3-year tribal family assistance plan that— 
110 STAT. 2152 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(A) outlines the Indian tribe's approach to providing 
welfare-related services for the 3-year period, consistent 
with this section; 
"(B) specifies whether the welfare-related services pro-
vided under the plan will be provided by the Indian tribe 
or through agreements, contracts, or compacts with inter-
tribal consortia. States, or other entities; 
"(C) identifies the population and service area or areas 
to be served by such plan; 
"(D) provides that a family receiving assistance under 
the plan may not receive duplicative assistance from other 
State or tribal programs funded under this part; 
"(E) identifies the employment opportunities in or near 
the service area or areas of the Indian tribe and the manner 
in which the Indian tribe will cooperate and participate 
in enhancing such opportunities for recipients of assistance 
under the plan consistent with any applicable State stand-
ards; and 
"(F) applies the fiscal accountability provisions of sec-
tion 5(f)(1) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450c(f)(l)), relating to the submis-
sion of a single-agency audit report required by chapter 
75 of title 31, United States Code. 
"(2) APPROVAL.—The Secretary shall approve each tribal 
family assistance plan submitted in accordance with paragraph 
(1). 
"(3) CONSORTIUM OF TRIBES.—Nothing in this section shall 
preclude the development and submission of a single tribal 
family assistance plan by the participating Indian tribes of 
an intertribal consortium. 
"(c) MINIMUM WORK PARTICIPATION REQUIREMENTS AND TIME 
LIMITS.—The Secretary, with the participation of Indian tribes, 
shall establish for each Indian tribe receiving a grant under this 
section minimum work participation requirements, appropriate time 
limits for receipt of welfare-related services under the grant, and 
penalties against individuals— 
"(1) consistent with the purposes of this section; 
"(2) consistent with the economic conditions and resources 
available to each tribe; and 
"(3) similar to comparable provisions in section 407(e). 
"(d) EMERGENCY ASSISTANCE.—Nothing in this section shall 
preclude an Indian tribe fi*om seeking emergency assistance fi-om 
any Federal lo£in program or emergency fund. 
"(e) ACCOUNTABILITY.—Nothing in this section shall be con-
strued to limit the ability of the Secretary to maintain program 
funding accountability consistent with— 
"(1) generally accepted accounting principles; and 
"(2) the requirements of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.). 
"(f) PENALTIES.— 
"(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall 
apply to an Indian tribe with an approved tribal assistance 
plan in the same manner as such subsections apply to a State. 
"(2) Section 409(a)(3) shall apply to an Indian tribe with 
an approved tribal assistance plan by substituting 'meet mini-
mum work participation requirements established under section 
412(c)' for 'comply with section 407(a)'. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2153 
"(g) DATA COLLECTION AND REPORTING.—Section 411 shall 
apply to an Indian tribe with an approved tribal family assistance 
plan. 
"(h) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
this section, and except as provided in paragraph (2), an Indian 
tribe in the State of Alaska that receives a tribal family assist-
ance grant under this section shall use the grant to operate 
a program in accordance with requirements comparable to the 
requirements applicable to the program of the State of Alaska 
fiinded under this part. Comparability of programs shall be 
established on the basis of program criteria developed by the 
Secretary in consultation with the State of Alaska and such 
Indian tribes. 
"(2) WAIVER.—^An Indian tribe described in paragraph (1) 
may apply to the appropriate State authority to receive a waiver 
of the requirement of paragraph (1). 
"SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES. 
42 USC 613. 
"(a) RESEARCH.—The Secretary shall conduct research on the 
benefits, effects, and costs of operating different State programs 
funded under this part, including time limits relating to eligibility 
for assistance. The research shall include studies on the effects 
of different programs and the operation of such programs on welfare 
dependency, illegitimacy, teen pregnancy, emplojonent rates, child 
well-being, and any other area the Secretary deems appropriate. 
The Secretary shall also conduct research on the costs and benefits 
of State activities under section 409. 
"(b) 
DEVELOPMENT 
AND 
EVALUATION 
OF 
INNOVATIVE 
APPROACHES TO REDUCING WELFARE DEPENDENCY AND INCREASING 
CHILD WELL-BEING.— 
"(1) IN GENERAL.—The Secretary may assist States in devel-
oping, and shall evaluate, innovative approaches for reducing 
welfare dependency and increasing the well-being of minor 
children living at home with respect to recipients of assistance 
under programs funded under this peirt. The Secretary may 
provide funds for training and technical assistance to carry 
out the approaches developed pursuant to this paragraph. 
"(2) EVALUATIONS.—In performing the evaluations under 
paragraph (1), the Secretary sh£dl, to the maximum extent 
feasible, use random assignment as an evaluation methodology. 
"(c) DISSEMINATION OF INFORMATION.—The Secretary shall 
develop innovative methods of disseminating information on any 
research, evaluations, and studies conducted under this section, 
including the facilitation of the sharing of information and best 
practices among States and localities through the use of computers 
and other technologies. 
"(d) ANNUAL RANKING OF STATES AND REVIEW OF MOST AND 
LEAST SUCCESSFUL WORK PROGRAMS.— 
"(1) ANNUAL RA>rKiNG OF STATES.—The Secretary shall rank 
guinually the States to which grants are paid imder section 
403 in the order of their success in placing recipients of assist-
ance under the State program fimded under this part into 
long-term private sector jobs, reducing the overall welfare case-
load, and, when a practicable method for calculating this 
information becomes available, diverting individuals from for-
mally appljdng to the State program and receiving assistance. 
110 STAT. 2154 
PUBLIC LAW 104-193—AUG. 22, 1996 
In ranking States under this subsection, the Secretary shall 
take into account the average number of minor children living 
at home in families in the State that have incomes below 
the poverty line and the amount of funding provided each 
State for such families. 
"(2) ANNUAL REVIEW OF MOST AND LEAST SUCCESSFUL WORK 
PROGRAMS.—The Secretary shall review the programs of the 
3 States most recently ranked highest under paragraph (1) 
and the 3 States most recently ranked lowest imder paragraph 
(1) that provide parents with work experience, assistance in 
finding employment, and other work preparation activities and 
support services to enable the families of such parents to leave 
the program and become self-sufficient. 
"(e) ANNUAL RANKING OF STATES AND REVIEW OF ISSUES RELAT-
ING TO OuT-OF-WEDLOCK BIRTHS.— 
"(1) ANNUAL RANKING OF STATES.— 
"(A) IN GENERAL.—The Secretary shall annually rank 
States to which grants are made under section 403 based 
on the following ranking factors: 
"(i) ABSOLUTE OUT-OF-WEDLOCK RATIOS.—The ratio 
represented by— 
"(I) the total number of out-of-wedlock births 
in families receiving assistance under the State 
program under this part in the State for the most 
recent fiscal year for which information is avail-
able; over 
"(II) the total number of births in families 
receiving assistance under the State program 
under this part in the State for such year, 
"(ii) 
NET 
CHANGES 
IN 
THE 
OUT-OF-WEDLOCK 
RATIO.—The difference between the ratio described in 
subparagraph (A)(i) with respect to a State for the 
most recent fiscal year for which such information 
is available and the ratio with respect to the State 
for the immediately preceding year. 
"(2) ANNUAL REVIEW.—TTie Secretary shall review the pro-
grams of the 5 States most recently ranked highest imder 
paragraph (1) and the 5 States most recently ranked the lowest 
under paragraph (1). 
"(f) STATE-INITIATED EVALUATIONS.—A State shall be eligible 
to receive funding to evaluate the State program funded under 
this part if— 
"(1) the State submits a proposal to the Secretary for 
the evaluation; 
"(2) the Secretary determines that the design and approach 
of the evaluation is rigorous and is likely to 3deld information 
that is credible and will be useful to other States; and 
"(3) unless otherwise waived by the Secretary, the State 
contributes to the cost of the evaluation, from non-Federal 
sources, an amount equal to at least 10 percent of the cost 
of the evaluation. 
"(g) REPORT ON CIRCUMSTANCES OF CERTAIN CHILDREN AND 
FAMILIES.— 
"(1) IN GENERAL.—Beginning 3 years after the date of the 
enactment of this Act, the Secretary of Health £uid Human 
Services shall prepare and submit to the Committees on Ways 
and Means and on Economic and Educational Opportunities 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2155 
of the House of Representatives and to the Committees on_^ 
Finance and on Labor and Resources of the Senate annual 
reports that examine in detail the matters described in para-
graph (2) with respect to each of the following gmips for 
the period after such enactment: 
"(A) Individuals who were children in f£imilies that 
have become ineligible for assistance under a State pro-
gram funded under this part by reason of having reached 
a time limit on the provision of such assistance. 
"(B) Children bom after such date of enactment to 
parents who, at the time of such birth, had not attained 
20 years of age. 
"(C) Individuals who, after such date of enactment, 
became parents before attaining 20 years of age. 
"(2) MATTERS DESCRIBED.—The matters described in this 
paragraph are the following: 
"(A) The percentage of each group that has dropped 
out of secondary school (or the equivalent), and the percent-
age of each group at each level of educational attainment. 
"(B) The percentage of each group that is employed. 
"(C) The percentage of each group that has been con-
victed of a crime or has been adjudicated as a delinquent. 
"(D) The rate at which the members of each group 
are bom, or have children, out-of-wedlock, and the percent-
age of each group that is mcirried. 
"(E) The percentage of each group that continues to 
participate in State programs funded under this part. 
"(F) The percentage of each group that has health 
insurance provided by a private entity (broken down by 
whether the insurance is provided through an employer 
or otherwise), the percentage that has health insurance 
provided by an agency of government, and the percentage 
that does not have health insurance. 
"(G) The average income of the families of the members 
of each group. 
"(H) Such other matters as the Secretary deems appro-
priate. 
"(h) FUNDING OF STUDIES AND DEMONSTRATIONS.— 
"(1) IN GENERAL.—Out of any money in the Treasury of 
the United States not otherwise appropriated, there are appro-
priated $15,000,000 for each of fiscal years 1997 through 2002 
for the purpose of pa3mig— 
"(A) the cost of conducting the research described in 
subsection (a); 
"(B) the cost of developing and evaluating innovative 
approaches for reducing welfare dependency and increasing 
the well-being of minor children under subsection (b); 
"(C) the Federal share of any State-initiated study 
approved under subsection (f); and 
"(D) an amount determined by the Secretary to be 
necessary to operate and evaluate demonstration projects, 
relating to this part, that are in effect or approved under 
section 1115 as of September 30, 1995, and are continued 
after such date. 
"(2) ALLOCATION.—Of the amoxint appropriated under para-
graph (1) for a fiscal year— 
110 STAT. 2166 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(A) 50 percent shall be allocated for the pur-
poses described in subparagraphs (A) and (B) of paragraph 
(1), and 
"(B) 50 percent shall be allocated for the purposes 
described in subparagraphs (C) and (D) of paragraph (1). 
"(3) 
DEMONSTRATIONS OF INNOVATIVE STRATEGIES.—The 
Secretary may implement and evaluate demonstrations of 
innovative and promising strategies which— 
"(A) provide one-time capital funds to establish, 
expand, or replicate programs; 
"(B) test performance-based grant-to-loan financing in 
which programs meeting performance targets receive 
grants while programs not meeting such targets repay 
funding on a prorated basis; and 
"(C) test strategies in multiple States and types of 
communities, 
"(i) CHILD POVERTY RATES.— 
"(1) IN GENERAL.—Not later than 90 days after the date 
of the enactment of this part, sind annually thereafter, the 
chief executive officer of each State shall submit to the Sec-
retary a statement of the child poverty rate in the State as 
of such date of enactment or the date of the most recent 
prior statement under this paragraph. 
"(2) SUBMISSION OF CORRECTIVE ACTION PLAN.—Not later 
than 90 days after the date a State submits a statement under 
paragraph (1) which indicates that, as a result of the amend-
ments made by section 103 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996, the child poverty 
rate of the State has increased by 5 percent or more since 
the most recent prior statement under paragraph (1), the State 
shall prepare and submit to the Secretary a corrective action 
plan in accordance with paragraph (3). 
"(3) CONTENTS OF PLAN.—^A corrective action plan submit-
ted under paragraph (2) shall outline the manner in which 
the State will reduce the child poverty rate in the State. The 
plan shall include a description of the actions to be taken 
by the State under such plan. 
"(4) COMPLIANCE WITH PLAN.—A State that submits a 
corrective action plan that the Secretary has found contains 
the information required by this subsection shall implement 
the corrective action plan until the State determines that the 
child poverty rate in the State is less than the lowest child 
poverty rate on the basis of which the State was required 
to submit the corrective action plan. 
Regulations. 
"(5) METHODOLOGY.—The Secretary shall prescribe regula-
tions establishing the methodology by which a State shall deter-
mine the child poverty rate in the State. The methodology 
shall take into account factors including the number of children 
who receive free or reduced-price lunches, the number of food 
stamp households, and the county-by-county estimates of chil-
dren in poverty as determined by the Census Bureau. 
42 use 614. 
"SEC. 414. STUDY BY THE CENSUS BUREAU. 
"(a) IN GENERAL.—The Bureau of the Census shall continue 
to collect data on the 1992 and 1993 panels of the Survey of 
Income and Program Participation as necessary to obtain such 
information as will enable interested persons to evaluate the impact 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2157 
of the amendments made by title I of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 on a random 
national sample of recipients of assistsince under State programs 
funded under this part and (as appropriate) other low-income fami-
lies, and in doing so, shall pay particular attention to the issues 
of out-of-wedlock birth, welfare dependency, the beginning and end 
of welfare spells, and the causes of repeat welfare spells, and 
shall obtain information about the status of children participating 
in such panels. 
"(b) APPROPRIATION.—Out of any money in the Treasury of 
the United States not otherwise appropriated, there are appro-
priated $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 
2000, 2001, and 2002 for payment to the Bureau of the Census 
to carry out subsection (a). 
"SEC. 415. WAIVERS. 
42USC615. 
"(a) CONTINUATION OF WAIVERS.— 
"(1) WAIVERS IN EFFECT ON DATE OF ENACTMENT OF WEL-
FARE REFORM.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), if any waiver gr£inted to a State under section 1115 
of this Act or otherwise which relates to the provision 
of assistance under a State plan under this part (as in 
effect on September 30, 1996) is in effect as of the date 
of the enactment of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996, the amendments 
made by the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (other than by section 103(c) 
of the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996) shall not apply with respect to 
the State before the expiration (determined without regard 
to any extensions) of the waiver to the extent such amend-
ments are inconsistent with the waiver. 
"(B) 
FINANCING LIMITATION.—Notwithstanding 
any 
other provision of law, beginning with fiscal year 1996, 
a State operating under a waiver described in subpara-
graph (A) shall be entitled to payment under section 403 
for the fiscal year, in lieu of any other pajrment provided 
for in the waiver. 
"(2) WAIVERS GRANTED SUBSEQUENTLY.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), if any waiver granted to a State under section 1115 
of this Act or otherwise which relates to the provision 
of assistance under a State plan under this part (as in 
effect on September 30, 1996) is submitted to the Secretary 
before the date of the enactment of the Personal Respon-
sibility and Work Opportunity Reconciliation Act of 1996 
and approved by the Secretary on or before July 1, 1997, 
and the State demonstrates to the satisfaction of the Sec-
retary that the waiver will not result in Federal expendi-
tures under title IV of this Act (as in effect without regard 
to the amendments made by the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996) that 
are greater than would occur in the absence of the waiver, 
the amendments made by the Personal Responsibility and 
Work Opportxmity Reconciliation Act of 1996 (other than 
by section 103(c) of the Personal Responsibility and Work 
110 STAT. 2158 
PUBLIC LAW 104-193—AUG. 22, 1996 
Opportunity Reconciliation Act of 1996) shall not apply 
with respect to the State before the expiration (determined 
without regard to £iny extensions) of the waiver to the 
extent the amendments made by the Personal Responsibil-
ity and Work Opportunity Reconciliation Act of 1996 are 
inconsistent with the waiver. 
"(B) No EFFECT ON NEW WORK REQUIREMENTS.—Not-
withstanding subparagraph (A), a waiver granted under 
section 1115 or otherwise which relates to the provision 
of assistance under a State program funded under this 
part (as in effect on September 30, 1996) shall not affect 
the applicability of section 407 to the State. 
"(b) STATE OPTION TO TERMINATE WAIVER.— 
"(1) IN GENERAL.—^A State may terminate a waiver 
described in subsection (a) before the expiration of the waiver. 
"(2) REPORT.—^A State which terminates a waiver under 
paragraph (1) shall submit a report to the Secretary summariz-
ing the waiver and any available information concerning the 
result or effect of the waiver. 
"(3) HOLD HARMLESS PROVISION.— 
"(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, a State that, not later than the date described 
in subparagraph (B) of this paragraph, submits a written 
request to terminate a waiver described in subsection (a) 
shall be held harmless for accrued cost neutrality liabilities 
incurred under the waiver. 
"(B) DATE DESCRIBED.—The date described in this 
subparagraph is 90 days following the adjournment of the 
first regular session of the State legislature that begins 
after the date of the enactment of the Personal Responsibil-
ity and Work Opportunity Reconciliation Act of 1996. 
"(c) SECRETARIAL ENCOURAGEMENT OF CURRENT WAIVERS.— 
The Secretary shall encourage any State operating a waiver 
described in subsection (a) to continue the waiver and to evaluate, 
using random sampling and other characteristics of accepted sci-
entific evaluations, the result or effect of the waiver. 
"(d) CONTINUATION OF INDIVIDUAL WAIVERS.—A State may elect 
to continue 1 or more individual waivers described in sub-
section (a). 
42 use 616. 
"SEC. 416. ADMINISTRATION. 
"The programs under this part and part D shall be administered 
by an Assistant Secretary for Family Support within the Depart-
ment of Health and Human Services, who shall be appointed by 
the President, by and with the advice and consent of the Senate, 
and who shall be in addition to any other Assistant Secretary 
of Health and Human Services provided for by law, and the Sec-
retary shall reduce the Federal workforce within the Department 
of Health and Human Services by an amount equal to the sum 
of 75 percent of the full-time equivalent positions at such Depart-
ment that relate to £iny direct spending program, or any program 
funded through discretionary spending, that has been converted 
into a block grant program under the Personal Responsibility and 
Work Opportunity Act of 1996 and the amendments made by such 
Act, £ind by an amount equal to 75 percent of that portion of 
the total full-time equivalent departmental management positions 
at such Department that bears the same relationship to the amount 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2159 
appropriated for any direct spending program, or any program 
funded through discretionary spending, that has been converted 
into a block grant program under the Personal Responsibility and 
Work Opportunity Act of 1996 and the amendments made by such 
Act, as such amount relates to the total amoimt appropriated for 
use by such Department, and, notwithstanding any other provision 
of law, the Secretary shall take such actions as may be necessary, 
including reductions in force actions, consistent with sections 3502 
and 3595 of title 5, United States Code, to reduce the full-time 
equivalent positions within the Department of Health and Human 
Services by 245 fiiU-time equivalent positions related to the program 
converted into a block grant imder the amendment made by section 
2103 of the Personal Responsibility and Work Opportimity Act 
of 1996, and by 60 full-time equivalent managerial positions in 
the Department. 
"SEC. 417. LIMITATION ON FEDERAL AUTHORITY. 
42 USC 617. 
"No officer or employee of the Federal Government may regulate 
the conduct of States imder this part or enforce any pro-
vision of this part, except to the extent expressly provided in this 
part."; and 
(2) by inserting after such section 418 the following: 
"SEC. 419. DEFINITIONS. 
42 USC 619. 
"As used in this part: 
"(1) ADULT.—The term 'adult' means an individual who 
is not a minor child. 
"(2) MINOR CHILD,—The term 'minor child' means an 
individual who— 
"(A) has not attained 18 years of age; or 
"(B) has not attained 19 years of age and is a full-
time student in a secondary school (or in the equivalent 
level of vocational or technical training). 
"(3) FISCAL YEAR.—The term 'fiscal year' means any 12-
month period ending on September 30 of a calendar year, 
"(4) 
INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), the terms 'Indian', 'Indian tribe', and 'tribal organiza-
tion' have the meaning given such terms by section 4 
of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
"(B) 
SPECIAL RULE FOR INDIAN TRIBES IN ALASKA,— 
The term 'Indian tribe' meeuis, with respect to the State 
of Alaska, only the Metlakatla Indian Cfommunity of the 
Annette Islands Reserve and the following Alaska Native 
regional nonprofit corporations: 
"(i) Arctic Slope Native Association. 
"(ii) Kawerak, Inc. 
"(iii) Maniilaq Association. 
"(iv) Association of Village Coimcil Presidents. 
"(v) Tanana Chiefs Conference. 
"(vi) Cook Inlet Tribal Council. 
"(vii) Bristol Bay Native Association. 
"(viii) Aleutian and Pribilof Island Association. 
"(ix) Chugachmuit. 
"(x) Tlingit Haida Central Council. 
"(xi) Kodiak Area Native Association. 
"(xii) Copper River Native Association. 
110 STAT. 2160 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(5) STATE.—Except as otherwise specifically provided, the 
term 'State' means the 50 States of the tjnited States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
the United States Virgin Islands, Guam, and American 
Samoa.". 
(b) GRANTS TO OUTLYING AREAS.—Section 1108 (42 U.S.C. 1308) 
is amended— 
(1) by striking subsections (d) and (e); 
(2) by redesignating subsection (c) as subsection (f); and 
(3) by striking all that precedes subsection (c) and inserting 
the following: 
"SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN 
ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION ON 
TOTAL PAYMENTS. 
"(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY.— 
Notwithstanding any other provision of this Act, the total amount 
certified by the Secretary of Health and Human Services under 
titles I, X, XIV, and XVI, under parts A and E of title IV, and 
under subsection (b) of this section, for pajmient to any territory 
for a fiscal year shall not exceed the ceiling amount for the territory 
for the fiscal year. 
"(b) ENTITLEMENT TO MATCHING GRANT.— 
"(1) IN GENERAL.—Each territory shall be entitled to receive 
fi-om the Secretary for each fiscal year a grant in an amount 
equal to 75 percent of the amount (if any) by which— 
"(A) the total expenditures of the territory during the 
fiscal year under the territory programs fiinded under parts 
A and E of title IV; exceeds 
"(B) the sum of— 
"(i) the amount of the family assistance grant pay-
able to the territory without regard to section 
409; and 
"(ii) the total amount expended by the territory 
during fiscal year 1995 pursuant to parts A and F 
of title IV (as so in effiBct), other than for child care. 
"(2) APPROPRIATION.—Out of any money in the Treasury 
of the United States not otherwise appropriated, there are 
appropriated for fiscal years 1997 through 2002, such sums 
as are necessary for grants under this paragraph. 
"(c) DEFINITIONS.—/^ used in this section: 
"(1) TERRITORY.—The term 'territory* means Puerto Rico, 
the Virgin Islands, Guam, and American Samoa. 
"(2) CEILING AMOUNT.—The term 'ceiling amount' means, 
with respect to a territory and a fiscal year, the mandatory 
ceiling amount with respect to the territory, reduced for the 
fiscal year in accordance with subsection (e), and reduced by 
the amount of any penalty imposed on the territory under 
any provision of law specified in subsection (a) during the 
fiscal year. 
"(3) FAMILY ASSISTANCE GRANT.—The term 'family assist-
ance grant' has the meaning given such term by section 
403(a)(1)(B). 
"(4) MANDATORY CEILING AMOUNT.—The term 'mandatory 
ceiling amount' means— 
"(A) $107,255,000 with respect to Puerto Rico; 
"(B) $4,686,000 with respect to Guam; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2161 
"(C) 
$3,554,000 
with 
respect 
to 
the 
Virgin 
Islands; and 
"(D) $1,000,000 with respect to American Samoa. 
"(5) 
TOTAL AMOUNT EXPENDED BY THE TERRITORY.—The 
term 'total amount expended by the territory*— 
"(A) does not include expenditures during the fiscal 
year from amounts made available by the Federal Govern-
ment; and 
"(B) when used with respect to fiscal year 1995, also 
does not include— 
"(i) expenditures during fiscal year 1995 under 
subsection (g) or (i) of section 402 (as in effect on 
September 30,1995); or 
"(ii) any expenditures during fiscal year 1995 for 
which the territory (but for section 1108, as in effect 
on 
September 
30, 
1995) 
would 
have 
received 
reimbursement from the Federal Government. 
"(d) AUTHORITY TO TRANSFER FUNDS TO CERTAIN PROGRAMS.— 
A territory to which £in amount is paid under subsection (b) of 
this section may use the amount in accordance with section 404(d). 
"(e) MAINTENANCE OF EFFORT.—The ceiling amount with 
respect to a territory shall be reduced for a fiscal year by an 
amount equal to the amoimt (if any) by which— 
"(1) the total amount expended by the territory under all 
programs of the territory operated pursuant to the provisions 
of law specified in subsection (a) (as such provisions were 
in effect for fiscal year 1995) for fiscal year 1995; exceeds 
"(2) the total amount expended by the territory under all 
programs of the territory that are funded under the provisions 
of law specified in subsection (a) for the fiscal year that imme-
diately precedes the fiscal year referred to in the matter preced-
ing paragraph (1).". 
(c) ELIMINATION OF CHILD CARE PROGRAMS UNDER THE SOCIAL 
SECURITY ACT.— 
(1) AFDC AND TRANSITIONAL CHILD CARE PROGRAMS.—Sec-
tion 402 (42 U.S.C. 602) is amended by striking sub-
section (g). 
(2) AT-RISK CHILD CARE PROGRAM.— 
(A) AUTHORIZATION.—Section 402 (42 U.S.C. 602) is 
amended by striking subsection (i). 
(B) FUNDING PROVISIONS.—Section 403 (42 U.S.C. 603) 
is amended by striking subsection (n). 
SEC. 
104. SERVICES PROVTOED BY CHARITABLE, RELIGIOUS, OR 42USC604a. 
PRIVATE ORGANIZATIONS. 
(a) IN GENERAL.— 
(1) STATE OPTIONS.—A State may— 
(A) administer and provide services under the pro-
grams described in subparagraphs (A) and (B)(i) of 
paragraph (2) through contracts with charitable, religious, 
or private organizations; and 
(B) provide beneficiaries of assistance under the pro-
grams described in subparagraphs (A) and (B)(ii) of psira-
graph (2) with certificates, vouchers, or other forms of 
disbursement which are redeemable with such organiza-
tions. 
110 STAT. 2162 
PUBLIC LAW 104-193—AUG. 22, 1996 
(2) PROGRAMS DESCRIBED.—The programs described in this 
paragraph are the following programs: 
(A) A State program funded under part A of title 
IV of the Social Security Act (as amended by section 103(a) 
of this Act). 
(B) Any other program established or modified under 
title I or II of this Act, that— 
(i) permits contracts with organizations; or 
(ii) permits certificates, vouchers, or other forms 
of disbursement to be provided to beneficiaries, as a 
means of providing assistance. 
Contracts. 
(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section 
is to allow States to contract with religious organizations, or to 
allow religious organizations to accept certificates, vouchers, or 
other forms of disbursement under any program described in sub-
section (a)(2), on the same basis as any other nongovernmental 
provider without impairing the religious character of such organiza-
tions, and without diminishing the religious freedom of beneficiaries 
of assistance funded under such program. 
(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.— 
In the event a State exercises its authority under subsection (a), 
religious organizations are eligible, on the same basis as any other 
private orgeinization, as contractors to provide assistance, or to 
accept certificates, vouchers, or other forms of disbursement, under 
£iny program described in subsection (a)(2) so long as the programs 
are implemented consistent with the Establishment Clause of the 
United States Constitution. Except as provided in subsection (k), 
neither the Federal Government nor a State receiving funds under 
such programs shall discriminate against an organization which 
is or applies to be a contractor to provide assistance, or which 
accepts certificates, vouchers, or other forms of disbursement, on 
the basis that the organization has a religious character. 
(d) RELIGIOUS CHARACTER AND FREEDOM.— 
(1) RELIGIOUS ORGANIZATIONS.—^A religious organization 
with a contract described in subsection (a)(1)(A), or which 
accepts certificates, vouchers, or other forms of disbursement 
under subsection (a)(1)(B), shall retain its independence from 
Federal, State, and local governments, including such organiza-
tion's control over the definition, development, practice, and 
expression of its religious beliefs. 
(2) ADDITIONAL SAFEGUARDS.—Neither the Federal Govern-
ment nor a State shall require a religious organization to— 
(A) alter its form of internal governance; or 
(B) remove religious art, icons, scripture, or other 
symbols; 
in order to be eligible to contract to provide assistance, or 
to accept certificates, vouchers, or other forms of disbursement, 
funded under a program described in subsection (a)(2). 
(e) RIGHTS OF BENEFICL^RIES OF ASSISTANCE.— 
(1) IN GENERAL.—If an individual described in paragraph 
(2) has an objection to the religious character of the organization 
or institution from which the individual receives, or would 
receive, assistance funded under any program described in sub-
section (a)(2), the State in which the individual resides shall 
provide such individual (if otherwise eligible for such assist-
ance) within a reasonable period of time after the date of 
such objection with assistance from an alternative provider 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2163 
that is accessible to the individual and the value of which 
is not less than the value of the assistance which the individual 
would have received from such organization. 
(2) INDIVIDUAL DESCRIBED.—^An individual described in this 
paragraph is an individual who receives, applies for, or requests 
to apply for, assistance under a program described in subsection 
(a)(2). 
if) EMPLOYMENT PRACTICES.—A religious organization's exemp-
tion provided under section 702 of the Civil Rights Act of 1964 
(42 U.S.C. 2000e-la) regarding employment practices shall not 
be affected by its participation in, or receipt of funds from, programs 
described in subsection (a)(2). 
(g) NONDISCRIMINATION AGAINST BENEFICIARIES.—Except as 
otherwise provided in law, a religious organization shall not 
discriminate against an individual in regard to rendering assistance 
funded under any program described in subsection (a)(2) on the 
basis of religion, a religious belief, or refusal to actively participate 
in a religious practice. 
(h) FISCAL ACCOUNTABILITY.— 
(1) IN GENERAL.—Except as provided in paragraph (2), any 
religious organization contracting to provide assistance funded 
under any program described in subsection (a)(2) shall be sub-
ject to the same regulations as other contractors to account 
in accord with generally accepted auditing principles for the 
use of such funds provided under such programs. 
(2) LIMITED AUDIT.—If such organization segregates Federal 
funds provided under such programs into separate accounts, 
then only the financial assistance provided with such funds 
shall be subject to audit. 
(i) COMPLIANCE.—^Any party which seeks to enforce its rights 
under this section may assert a civil action for injunctive relief 
exclusively in an appropriate State court against the entity or 
agency that allegedly commits such violation. 
(j) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.— 
No funds provided directly to institutions or organizations to provide 
services and administer programs under subsection (a)(1)(A) shall 
be expended for sectarian worship, instruction, or proselytization. 
(k) PREEMPTION.—Nothing in this section shall be construed 
to preempt any provision of a State constitution or State statute 
that prohibits or restricts the expenditure of State fimds in or 
by religious organizations. 
SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS 
13 USC 141 note. 
FOR THEIR GRANDCHILDREN. 
(a) IN GENERAL.—Not later than 90 days after the date of 
the enactment of this Act, the Secretary of Commerce, in carrying 
out section 141 of title 13, United States Code, shall expand the 
data collection efforts of the Bureau of the Census (in this section 
referred to as the "Bureau") to enable the Bureau to collect statis-
tically significant data, in connection with its decennial census 
and its mid-decade census, concerning the growing trend of grand-
parents who are the primary caregivers for their grandchildren. 
(b) EXPANDED CENSUS QUESTION.—In carrying out subsection 
(a), the Secretary of Commerce shall expand the Bureau's census 
question that details households which include both grandparents 
and their grandchildren. The expanded question shall be formulated 
to distinguish between the following households: 
110 STAT. 2164 
PUBLIC LAW 104-193—AUG. 22, 1996 
(1) A household in which a grandparent temporarily pro-
vides a home for a grandchild for a period of weeks or months 
during periods of parental distress. 
(2) A household in which a grandparent provides a home 
for a grandchild and serves as the primary caregiver for the 
gr£indchild. 
SEC. 106. REPORT ON DATA PROCESSING. 
(a) IN GENERAL.—^Within 6 months after the date of the enact-
ment of this Act, the Secretan?^ of Health and Human Services 
shall prepare and submit to the Congress a report on— 
(1) the status of the automated data processing systems 
operated by the States to assist m£inagement in the admin-
istration of State programs under part A of title IV of the 
Social Security Act (whether in effect before or after October 
1,1995); and 
(2) what would be required to establish a system cap-
able of— 
(A) tracking psirticipants in public programs over 
time; and 
(B) checking case records of the States to determine 
whether individuals are participating in public programs 
of 2 or more States. 
(b) PREFERRED CONTENTS.—^The report required by subsection 
(a) should include— 
(1) a plan for building on the automated data processing 
systems of the States to establish a system with the capabilities 
described in subsection (a)(2); and 
(2) an estimate of the amount of time required to establish 
such a system and of the cost of establishing such a system. 
42 use 613 note. 
SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES. 
(a) STUDY.—The Secretary shall, in cooperation with the States, 
study and analyze outcomes measures for evaluating the success 
of the States in moving individuals out of the welfare system 
through employment as an alternative to the minimum participation 
rates described in section 407 of the Social Security Act. The study 
shall include a determination as to whether such alternative out-
comes measures should be applied on a national or a State-by-
State basis and a preliminary assessment of the effects of section 
409(a)(7)(C) of such Act. 
(b) REPORT.—Not later than September 30, 1998, the Secretary 
shall submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Represen-
tatives a report containing the findings of the study required by 
subsection (a). 
SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT. 
(a) AMENDMENTS TO TITLE II.— 
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as 
so redesignated by section 321(a)(9)(B) of the Social Security 
Independence and Program Improvements Act of 1994, is 
amended— 
(A) by inserting "an agency administering a program 
funded under part A of title IV or" before "an agency 
operating"; and 
(B) by striking "A or D of title IV of this Act" and 
inserting "D of such title". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2165 
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
inserting "under a State program funded under" before "part 
A of title IV". 
(b) AMENDMENTS TO PART B OF TITLE IV.—Section 422(b)(2) 
(42 U.S.C. 622(b)(2)) is amended— 
(1) by striking "plan approved under part A of this title" 
and inserting "program funded under part A"; and 
(2) by striking "part E of this title" and inserting "under 
the State plan approved under part E". 
(c) AMENDMENTS TO PART D OF TITLE IV.— 
(1) Section 451 (42 U.S.C. 651) is amended by striking 
"aid" and inserting "assistance under a State program funded". 
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
amended— 
(A) by striking "aid to families with dependent chil-
dren" and inserting "assistance under a State program 
funded under part A"; 
(B) by striking "such aid" and inserting "such assist-
ance"; and 
(C) by striking "under section 402(a)(26) or" and insert-
ing "pursuant to section 408(a)(3) or under section". 
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
amended— 
(A) by striking "aid under a State plan approved" and 
inserting "assistsince under a State program funded"; and 
(B) by striking "in accordance with the standards 
referred to in section 402(a)(26)(B)(ii)" and inserting "by 
the State". 
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
first sentence by striking "aid under the State plan approved 
under part A" and inserting "assistance under the State pro-
gram funded under part A". 
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
amended by striking "1115(c)" and inserting "1115(b)". 
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I)) 
is amended by striking "aid is being paid imder the State's 
plan approved imder part A or E" and inserting "assistance 
is being provided under the State program funded under 
part A". 
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended 
in the matter following clause (iii) by striking "aid was being 
paid under the Stated plan approved under part A or E 
£ind inserting "assistance was being provided under the State 
program funded imder part A". 
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
the matter following subparagraph (B)— 
(A) by strifing "who is a dependent child" and inserting 
"with respect to whom assistance is being provided under 
the State program funded imder part A"; 
(B) by inserting "by the State" after "found"; and 
(C) by striking "to have good cause for refusing to 
cooperate imder section 402(a)(26)" and inserting "to qual-
ify for a good cause or other exception to cooperation pursu-
ant to section 454(29)". 
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking 
"imder section 402(a)(26)" and inserting "pursuant to section 
408(a)(3)". 
110 STAT. 2166. 
PUBLIC LAW 104-193—AUG. 22, 1996 
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
striking "aid under part A of this title" and inserting "assistance 
under a State program funded under part A". 
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended— 
(A) by striking "imder section 402(a)(26)" and inserting 
"pursuant to section 408(a)(3)"; and 
(B) by striking "; except that this paragraph shall 
not apply to such payments for any month following the 
first month in which the amount collected is sufficient 
to m ^ e such family ineUgible for assistance imder the 
State plan approved under part A;" and inserting a comma. 
(12) Section 454(6)(D) (42 U.S.C. 654(6XD)) is amended 
by striking "aid under a State plan approved" and inserting 
"assistance imder a State program funded". 
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by 
striking "under section 402(a)(26)". 
(14) Section 
466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
amended by striking "402(a)(26)" and inserting "408(a)(3)". 
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
striking "aid" and inserting "assistance under a State program 
funded^. 
(16) Section 469(a) (42 U.S.C. 669(a)) is amended— 
(A) by striking "aid under plans approved" and insert-
ing "assistance imder State programs funded"; and 
(B) by striking "such aid" and inserting "such assist-
ance". 
(d) AMENDMENTS TO PART E OF TITLE IV.— 
(1) Section 470 (42 U.S.C. 670) is amended— 
(A) by striking "would be" and inserting "would have 
been"; and 
(B) by inserting "(as such plan was in effect on June 
1,1995)" after "part A". 
(2) Section 471(a)(17) (42 U.S.C. 671(a)(17)) is amended 
by striking "plans approved imder parts A and D" and inserting 
"program fimded imder part A and plan approved under 
part D". 
(3) Section 472(a) (42 U.S.C. 672(a)) is amended— 
(A) in the matter preceding paragraph (1)— 
(i) by striking "would meet and inserting "would 
have met"; 
(ii) by inserting "(as such sections were in effect 
on June 1,1995)" after "407"; and 
(iii) 
by 
inserting 
"(as 
so 
in 
effect)" 
after 
"406(a)"; and 
(B) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) by inserting "would have" after "(A)"; and 
(II) by inserting "(as in effect on June 1,1995)" 
after "section 402"; and 
(ii) in subparagraph (B)(ii), by inserting "(as in 
effect on June 1, 1995)" after "406(a)". 
(4) Section 472(h) (42 U.S.C. 672(h)) is amended to read 
as follows: 
"(h)(1) For purposes of title XDC, any child with respect to 
whom foster care mainteneince pa5rments are made under this sec-
tion is deemed to be a dependent child as defined in section 406 
(as in effect as of June 1, 1995) and deemed to be a recipient 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2167 
of aid to families with dependent children under part A of this 
title (as so in effect). For purposes of title XX, any child with 
respect to whom foster care maintenance pa3Tiients are made under 
this section is deemed to be a minor child in a needy family 
under a State program funded under part A of this title and 
is deemed to be a recipient of assistsince under such part. 
"(2) For purposes of paragraph (1), a child whose costs in 
a foster family home or child care institution are covered by the 
foster care maintenance payments being made with respect to the 
child's minor parent, as provided in section 475(4)(B), shall be 
considered a child with respect to whom foster care maintenance 
payments are made under this section.". 
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended— 
(A) in subparagraph (A)(i)— 
(i) by inserting "(as such sections were in effect 
on June 1, 1995)" after "407"; 
(ii) by inserting "(as so in effect)" after "specified 
in section 406(a)"; and 
(iii) by inserting "(as such section was in effect 
on June 1, 1995)" after "403"; 
(B) in subparagraph (B)(i)— 
(i) by inserting "would have" after "(B)(i)"; and 
(ii) by inserting "(as in effect on June 1, 1995)" 
after "section 402"; and 
(C) in subparagraph (B)(ii)(II), by inserting "(as in 
effect on June 1, 1995)" after "406(a)". 
(6) Section 473(b) (42 U.S.C. 673(b)) is amended to read 
as follows: 
"(b)(1) For purposes of title XIX, any child who is described 
in paragraph (3) is deemed to be a dependent child as defined 
in section 406 (as in effect as of June 1, 1995) and deemed to 
be a recipient of aid to families with dependent children under 
part A of this title (as so in effect) in the State where such child 
resides. 
"(2) For purposes of title XX, any child who is described in 
paragraph (3) is deemed to be a minor child in a needy family 
under a State program ftmded under part A of this title and 
deemed to be a recipient of assistance under such part. 
"(3) A child described in this paragraph is any child— 
"(A)(i) who is a child described in subsection (a)(2), and 
"(ii) with respect to whom an adoption assistance agree-
ment is in effect under this section (whether or not adoption 
assistance payments are provided under the agreement or are 
being made under this section), including any such child who 
has been placed for adoption in accordance with applicable 
State and local law (whether or not an interlocutory or other 
judicial decree of adoption has been issued), or 
"(B) with respect to whom foster care maintenance pay-
ments £ire being made under section 472. 
"(4) For purposes of paragraphs (1) and (2), a child whose 
costs in a foster family home or child-care institution are covered 
by the foster care maintenance pajrments being made with respect 
to the child's minor parent, as provided in section 475(4XB), shall 
be considered a child with respect to whom foster care maintenance 
pa3anents are being made under section 472.". 
(e) REPEAL OF PART F OF TITLE IV.—Part F of title IV (42 
U.S.C. 681-687) is repealed. 
110 STAT. 2168 
PUBLIC LAW 104-193—AUG. 22, 1996 
(f) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42 U.S.C. 
1202(a)(7)) is amended by striking "aid to families with dependent 
children under the State plan approved under section 402 of this 
Act" and inserting "assistance under a State program funded imder 
part A of title IV". 
(g) AMENDMENTS TO TITLE XI.— 
(1) Section 1109 (42 U.S.C. 1309) is amended by striking 
"or part A of title IV,". 
(2) Section 1115 (42 U.S.C. 1315) is amended— 
(A) in subsection (a)(2)— 
(i) by inserting "(A)" after "(2)"; 
(ii) by striking "403,"; 
(iii) by striking the period at the end and 
inserting ", and"; and 
(iv) by adding at the end the following new 
subparagraph: 
"(B) costs of such project which would not otherwise be 
a permissible use of funds under part A of title IV and which 
are not included as part of the costs of projects under section 
1110, shall to the extent and for the period prescribed by 
the Secretary, be regarded as a permissible use of funds under 
such part."; 
(B) in subsection (c)(3), by striking "the program of 
aid to families with dependent children" and inserting "part 
A of such title"; and 
(C) by striking subsection (b) and redesignating sub-
sections (c) and (d) as subsections (b) and (c), respectively. 
(3) Section 1116 (42 U.S.C. 1316) is amended— 
(A) in each of subsections (a)(1), (b), and (d), by striking 
"or part A of title IV,"; and 
(B) in subsection (a)(3), by striking "404,". 
(4) Section 1118 (42 U.S.C. 1318) is amended— 
(A) by striking "403(a),"; 
(B) by striking "euid part A of title IV,"; and 
(C) by striking ", and shall, in the case of American 
Samoa, mean 75 per centum with respect to part A of 
title IV". 
(5) Section 1119 (42 U.S.C. 1319) is amended— 
(A) by striking "or part A of title IV"; and 
(B) by striking "403(a),". 
(6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
striking "or part A of title IV,". 
(7) Section 1136 (42 U.S.C. 1320b-6) is repealed. 
(8) Section 1137 (42 U.S.C. 1320b-7) is amended— 
(A) in subsection (b), by striking paragraph (1) and 
inserting the following: 
"(1) any State program funded under part A of title IV 
of this Act;"; and 
(B) in subsection (d)(l)(B>— 
(i) by striking "In this subsection—" suid all that 
follows through "(ii) in" and inserting "In this sub-
section, in"; 
(ii) by redesignating subclauses (I), (II), and (III) 
as clauses (i), (ii), and (iii); and 
(iii) by moving such redesignated material 2 ems 
to the left. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2169 
(h) AMENDMENT TO TITLE XIV.—Section 1402(a)(7) (42 U.S.C. 
1352(a)(7)) is amended by striking "aid to families with dependent 
children under the State plan approved under section 402 of this 
Act" and inserting "assistance under a State program funded under 
part A of title IV". 
(i) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT 
TO THE TERRITORIES.—Section 1602(a)(ll), as in effect without 
regard to the amendment made by section 3()1 of the Social Security 
Amendments of 1972 (42 U.S.C. 1382 note), is amended by striking 
"aid under the State plan approved" and inserting "assistance under 
a State program fimded". 
(j) AMENDMENT TO TITLE XVI AS IN EFFECT WITH RESPECT 
TO THE STATES.—Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is 
amended to read as follows: "(A) a State program funded under 
part A of title IV,". 
(k) AMENDMENT TO TITLE XIX.—Section 1902(j) (42 U.S.C. 
1396a(j)) is amended by striking "1108(c)" and inserting "1108(f)". 
SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 
1977 AND RELATED PROVISIONS. 
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
is amended— 
(1) in the second sentence of subsection (a), by striking 
"plan approved" and all that follows through "title IV of the 
Social Security Act" and inserting "program funded under 
part A of title IV of the Social Security Act (42 U.S.C. 601 
et seq.)"; 
(2) in subsection (d)— 
(A) in paragraph (5), by striking "assistance to families 
with dependent children" and inserting "assistance under 
a State program funded"; and 
(B) by striking paragraph (13) and redesignating para-
graphs (14), (15), and (16) as paragraphs (13), (14), and 
(15), respectively; 
(3) in subsection (j), by striking "plan approved under part 
A of title IV of such Act (42 U.S.C. 601 et seq.)" and inserting 
"program funded under part A of title IV of the Act (42 U.S.C. 
601 et seq.)"; and 
(4) by striking subsection (m). 
(b) Section 6 of such Act (7 U.S.C. 2015) is amended— 
(1) in subsection (c)(5), by striking "the State plan 
approved" and inserting "the State program funded"; and 
(2) in subsection (e)(6), by striking "aid to families with 
dependent children" and inserting "benefits under a State pro-
gram funded". 
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended 
by striking "State plans under the Aid to Families with Dependent 
Children Program under" and inserting "State programs funded 
under part A of. 
(d) Section 17 of such Act (7 U.S.C. 2026) is amended— 
(1) in the first sentence of subsection (b)(1)(A), by striking 
"to aid to families with dependent children under part A of 
title IV of the Social Security Act" and inserting "or are 
receiving assistance imder a State program funded imder part 
A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.)"; and 
110 STAT. 2170 
PUBLIC LAW 104-193—AUG. 22, 1996 
(2) in subsection (b)(3), by adding at the end the following 
new subpeiragraph: 
"(I) The Secretary may not grant a waiver under this paragraph 
on or after the date of enactment of this subparagraph. Any ref-
erence in this paragraph to a provision of title IV of the Social 
Security Act shall be deemed to be a reference to such provision 
as in effect on the day before such date."; 
(e) Section 20 of such Act (7 U.S.C. 2029) is amended— 
(1) in subsection (a)(2)(B) by striking "operating—" and 
all that follows through "(ii) any other" and inserting "operating 
any"; and 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striMng "(b)(1) A household" and inserting 
"(b) A household"; and 
(ii) in subparagraph (B), by striking "training pro-
gram" and inserting "activity'; 
(B) by striking paragraph (2); and 
(C) by redesignating subparagraphs (A) through (F) 
as paragraphs (1) through (6), respectively. 
(f) Section 5(h)(1) of the Agriculture and Consumer Protection 
Act of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended 
by striking "the program for aid to families with dependent children" 
and inserting "the State program funded". 
(g) Section 9 of the National School Lunch Act (42 U.S.C. 
1758) is amended— 
(1) in subsection (b)— 
(A) in paragraph (2)(C)(ii)(II)— 
(i) by striking "program for aid to families with 
dependent children" and inserting "State program 
funded"; and 
(ii) by inserting before the period at the end the 
following: "that the Secretary determines complies with 
standards established by the Secretary that ensure 
that the standards under the State program are com-
parable to or more restrictive than those in effect on 
June 1,1995"; and 
(B) in paragraph (6)— 
(i) in subparagraph (A)(ii)— 
(I) by striking "an AFDC assistance unit 
(imder the aid to families with dependent children 
program authorized" and inserting "a family 
(imder the State program funded"; and 
(II) by striking ", in a State" and all that 
follows through "9902(2)))" and inserting "that the 
Secretary determines complies with standards 
established by the Secretary that ensure that the 
standards under the State program are comparable 
to or more restrictive than those in effect on June 
1,1995"; and 
(ii) in subparagraph (B), by striking "aid to families 
with dependent children" and inserting "assistance 
under the State program funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.) 
that the Secretary determines complies with standards 
established by the Secretary that ensure that the 
stsuidards under the State program are comparable 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2171 
to or more restrictive than those in effect on June 
1, 1995"; and 
(2) in subsection (d)(2)(C)— 
(A) by striking "program for aid to famiHes with 
dependent 
children" 
and 
inserting 
"State 
program 
funded"; and 
(B) by inserting before the period at the end the 
following: "that the Secretary determines complies with 
standards established by the Secretary that ensure that 
the standards under the State program are comparable 
to or more restrictive than those in effect on June 1, 1995". 
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended— 
(1) by striking "program for aid to families with dependent 
children 
established" 
and 
inserting 
"State 
program 
funded"; and 
(2) by inserting before the semicolon the following: "that 
the Secretary determines complies with standards established 
by the Secretary that ensure that the standards under the 
State program are comparable to or more restrictive than those 
in effect on June 1, 1995". 
SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS. 
(a) Subsection (b) of section 508 of the Unemployment Com-
pensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94-
566; 90 Stat. 2689) is amended to read as follows: 
"(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.—For pur-
poses of section 455 of the Social Security Act, expenses incurred 
to reimburse State employment offices for furnishing information 
requested of such offices— 
"(1) pursuant to the third sentence of section 3(a) of the 
Act entitled 'An Act to provide for the establishment of a 
national emplojonent system and for cooperation with the 
States in the promotion of such system, and for other purposes', 
approved June 6, 1933 (29 U.S.C. 49b(a)), or 
"(2) by a State or local agency charged with the duty 
of carrying a State plan for child support approved under 
part D of title IV of the Social Security Act, 
shall be considered to constitute expenses incurred in the adminis-
tration of such State plan.". 
(b) Section 9121 of the Omnibus Budget Reconciliation Act 
of 1987 (42 U.S.C. 602 note) is repealed. 
(c) Section 9122 of the Omnibus Budget 
Reconciliation 
Act of 1987 (42 U.S.C. 602 note) is repealed. 
(d) Section 221 of the Housing and Urban-Rural Recovery Act 
of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC 
of certain rental payments for federally assisted housing, is 
repealed. 
(e) Section 159 of the Tax Equity and Fiscal Responsibility 
Act of 1982 (42 U.S.C. 602 note) is repealed. 
(f) Section 202(d) of the Social Security Amendments of 1967 
(81 Stat. 882; 42 U.S.C. 602 note) is repealed. 
(g) Section 903 of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 (42 U.S.C. 11381 note), relating 
to demonstration projects to reduce number of AFDC families in 
welfare hotels, is amended— 
110 STAT. 2172 
PUBLIC LAW 104-193—AUG. 22, 1996 
(1) in subsection (a), by striking "aid to families with 
dependent children under a State plan approved" and inserting 
"assistance under a State program funded ; and 
(2) in subsection (c), by striking "aid to families with 
dependent children in the State under a State plan approved" 
and inserting "assistance in the State under a State program 
funded". 
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) 
is amended— 
(1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by strik-
ing "(Aid to Families with Dependent Children)"; and 
(2) in section 480(b)(2) (20 U.S.C. 1087w(b)(2)), by striking 
"aid to families with dependent children under a State plsin 
approved" and inserting "assistance under a State program 
funded". 
(i) The Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2301 et seq.) is amended— 
(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), 
by striking "The program for aid to dependent children" £ind 
inserting "The State program funded"; 
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
striking "the progrsim for aid to families with dependent chil-
dren" and inserting "the State progrsim funded"; and 
(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), 
by striking "the program for aid to families with dependent 
children" and inserting "the State program funded". 
(j) The Elementary and Secondary Education Act of 1965 (20 
U.S.C. 2701 et seq.) is amended— 
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking 
"Aid to Families with Dependent Children program" and insert-
ing "State program funded under part A of title IV of the 
Social Security Act"; 
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking 
"the program of aid to families with dependent children under 
a State plan approved under" and inserting "a State program 
funded under part A of; and 
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))— 
(A) in subparagraph (A)(xi), by striking "Aid to Fami-
lies with Dependent Children benefits" and inserting 
"assistance under a State program funded under part A 
of title IV of the Social Security Act"; and 
(B) in subparagraph (B)(viii), by striking "Aid to Fami-
lies with Dependent Children" and inserting "assistance 
under the State program funded under part A of title 
rV of the Social Security Act". 
(k) The 4th proviso of chapter VII of title I of Public Law 
99-88 (25 U.S.C. 13d-l) is amended to read as follows: ^'Provided 
further, That general assistance payments made by the Bureau 
of Indian Affairs shall be made— 
"(1) after April 29, 1985, and before October 1, 1995, on 
the basis of Aid to Families with Dependent Children (AFDC) 
standards of need; and 
"(2) on and after October 1, 1995, on the basis of standards 
of need established under the State progr£un funded under 
part A of title IV of the Social Security Act, 
except that where a State ratably reduces its AFDC or State pro-
gram payments, the Bureau shall reduce general assistance pay-
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2173 
ments in such State by the same percentage as the State has 
reduced the AFDC or State program payment.". 
(1) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) 
is amended— 
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all 
that follows "agency as" and inserting "being eligible for finan-
cial assistance under part A of title IV of the Social Security 
Act and as having continually received such financial assistance 
during the 90-day period which immediately precedes the date 
on wMch such individual is hired by the employer."; 
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by strik-
ing "eligibility for aid or services," and all that follows through 
"children approved" and inserting "eligibility for assistance, 
or the amount of such assistance, under a State program 
fiinded"; 
(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), 
by striking "aid to families with dependent children provided 
under a State plan approved" and inserting "a State program 
fiinded"; 
(4) in section 6103(1)(10) (26 U.S.C. 6103(1)(10))— 
(A) by striking "(c) or (d)" each place it appears and 
inserting "(c), (d), or (e)"; and 
(B) by adding at the end of subparagraph (B) the 
following new sentence: "Any return information disclosed 
with respect to section 6402(e) shall only be disclosed to 
officers and employees of the State agency requesting such 
information."; 
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the 
matter preceding subparagraph (A)— 
(A) by striking "(5), (10)" and inserting "(5)"; and 
(B) by striking "(9), or (12)" and inserting "(9), (10), 
or (12)"; 
(6) in section 6334(a)(ll)(A) (26 U.S.C. 6334(a)(ll)(A)), by 
striking "(relating to aid to families with dependent children)"; 
(7) in section 6402 (26 U.S.C. 6402)— 
(A) in subsection (a), by striking "(c) and (d)" and 
inserting "(c), (d), and (e)"; 
(B) by redesignating subsections (e) through (i) as sub-
sections if) through (]•), respectively; and 
(C) by inserting after subsection (d) the following: 
"(e) COLLECTION OF OVERPAYMENTS UNDER TITLE I V - A OF THE 
SOCIAL SECURITY ACT.—The amount of any overpayment to be 
refiinded to the person making the overpayment shall be reduced 
(after reductions pursuant to subsections (c) and (d), but before 
a credit against future liability for an internal revenue tax) in 
accordance with section 405(e) of the Social Security Act (concerning 
recovery of overpayments to individuals under State plans approved 
imder part A of title IV of such Act)."; and 
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
striking "aid to families with dependent children" and inserting 
"assistance under a State program funded imder part A of 
title rV of the Social Security Act". 
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) 
is amended by striking "State plan approved under part A of title 
rV" and inserting "State program funded under part A of 
title IV". 
110 STAT. 2174 
PUBLIC LAW 104-193—AUG. 22, 1996 
(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) 
is amended— 
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by strik-
ing "(42 U.S.C. 601 et seq.)"; 
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by strik-
ing "State aid to families with dependent children records," 
and inserting "records collected under the State program funded 
under part A of title IV of the Social Security Act,"; 
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))— 
(A) by striking "the JOBS program" and inserting "the 
work activities required under title IV of the Social Security 
Act"; and 
(B) by striking the second sentence; 
(4) in section 123(c) (29 U.S.C. 1533(c))— 
(A) in paragraph (1)(E), by repealing clause (vi); and 
(B) in paragraph (2)(D), by repealing clause (v); 
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking 
", including recipients under the JOBS program"; 
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29 
U.S.C. 1604(a)(1) (A) and (B)), by striking "(such as the JOBS 
program)" each place it appeeirs; 
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking para-
graph (4) and inserting the following: 
"(4) the portions of title IV of the Social Security Act 
relating to work activities;"; 
(8) in section 253 (29 U.S.C. 1632)— 
(A) in subsection (b)(2), by repealing subparagraph (C); 
and 
(B) in paragraphs (1)(B) and (2)(B) of subsection (c), 
by striking "the JOBS program or" each place it appears; 
(9) in section 264 (29 U.S.C. 1644)— 
(A) in subparagraphs (A) and (B) of subsection (b)(1), 
by striking "(such as the JOBS program)" each place it 
appears; and 
(B) in subparagraphs (A) and (B) of subsection (d)(3), 
by striking "and the JOBS program" each place it appears; 
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking para-
graph (6) and inserting the following: 
"(6) the portion of title IV of the Social Security Act relating 
to work activities;"; 
(11) in the second sentence of section 429(e) (29 U.S.C. 
1699(e)), by striking "and shall be in an amount that does 
not exceed the maximum amount that may be provided by 
the State pursuant to section 402(g)(1)(C) of the Social Security 
Act (42 U.S.C. 602(g)(1)(C))"; 
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking 
"JOBS and"; 
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking "the 
JOBS program,"; 
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking "aid 
to families with dependent children under part A of title IV 
of the Social Security Act (42 U.S.C. 601 et seq.)" and inserting 
"assistance under the State program funded under part A of 
title IV of the Social Security Act"; 
(15) in section 506(1)(A) (29 U.S.C. 1791e(l)(A)), by striking 
"aid to families with dependent children" and inserting "assist-
ance under the State program funded"; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2175 
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
striking "aid to families with dependent children" and inserting 
"assistance under the State program funded"; and 
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))— 
(A) in clause (v), by striking the semicolon and insert-
ing "; and"; and 
(B) by striking clause (vi). 
(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, 
is amended to read as follows: 
"(iv) assistance under a State program funded under part 
A of title IV of the Social Security Act;". 
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to 
read as follows: 
"(i) assistance under the State program funded 
under part A of title IV of the Social Security Act;", 
(q) Section 303(f)(2) of the Family Support Act of 1988 (42 
U.S.C. 602 note) is amended— 
(1) by striking "(A)"; and 
(2) by striking subparagraphs (B) and (C). 
(r) The Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 900 et seq.) is amended— 
(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking 
"Aid to families with dependent children (75-0412-0-1-609);" 
and inserting "Block grants to States for temporary assistance 
for needy families;"; and 
(2) in section 256 (2 U.S.C. 906)— 
(A) by striking subsection (k); and 
(B) by redesignating subsection (1) as subsection (k). 
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et 
seq.) is amended— 
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking "aid 
under a State plan approved under" each place it appears 
and inserting "assistance under a State program funded under"; 
(2) in section 245A(h) (8 U.S.C. 1255a(h))— 
(A) in paragraph (l)(A)(i), by striking "program of aid 
to families with dependent children" and inserting "State 
program of assistance"; and 
(B) in paragraph (2)(B), by striking "aid to families 
with dependent children" and inserting "assistance under 
a State program funded under part A of title IV of the 
Social Security Act"; and 
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
"State plan approved" and inserting "State program funded". 
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 
9835(a)(4)(B)(i)) is amended by striking "program of aid to families 
with dependent children under a State plan approved" and inserting 
"State program of assistance funded". 
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 
92; 25 U.S.C. 639) is repealed. 
(v) Subparagraph (E) of section 213(d)(6) of the School-To-
Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended 
to read as follows: 
"(E) part A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.) relating to work activities;". 
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, 
is amended by striking "section 464 or 1137 of the Social Security 
110 STAT. 2176 
PUBLIC LAW 104-193—AUG. 22, 1996 
Act" and inserting "section 404(e), 464, or 1137 of the Social 
Security Act". 
42 use 405 note. 
SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESIST-
ANT SOCIAL SECURITY CARD REQUIRED. 
(a) DEVELOPMENT.— 
(1) IN GENERAL.—The Commissioner of Social Security (in 
this section referred to as the "Commissioner") shall, in accord-
ance with this section, develop a prototype of a counterfeit-
resistant social security card. Such prototype card shall— 
(A) be made of a durable, tamper-resistant material 
such as plastic or polyester, 
(B) employ technologies that provide security features, 
such as magnetic stripes, holograms, and 
integrated 
circuits, and 
(C) be developed so as to provide individuals with 
reliable proof of citizenship or legal resident alien status. 
(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney Gen-
eral of the United States shall provide such information and 
assistance as the Commissioner deems necessary to enable 
the Commissioner to comply with this section. 
(b) STUDY AND REPORT.— 
(1) IN GENERAL.—The Commissioner shall conduct a 
study and issue a report to Congress which examines different 
methods of improving the social security card application 
process. 
(2) ELEMENTS OF STUDY.—The study shall include an 
evaluation of the cost and work load implications of issuing 
a counterfeit-resistant social security card for all individuals 
over a 3-, 5-, and 10-year period. The study shall also evaluate 
the feasibility and cost implications of imposing a user fee 
for replacement cards and cards issued to individuals who 
apply for such a card prior to the scheduled 3-, 5-, and 10-
year phase-in options. 
(3) DISTRIBUTION OF REPORT.—The Commissioner shall 
submit copies of the report described in this subsection along 
with a facsimile of the prototype card as described in subsection 
(a) to the Committees on Ways and Means and Judiciary of 
the House of Representatives and the Committees on Finance 
and Judiciary of the Senate within 1 year after the date of 
the enactment of this Act. 
SEC. 112. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN 
LOW-INCOME INDIVIDUALS PROGRAM. 
Section 505 of the Family Support Act of 1988 (42 U.S.C. 
1315 note) is amended— 
(1) in the heading, by striking "DEMONSTRATION"; 
(2) by striking "demonstration" each place such term 
appears; 
(3) in subsection (a), by striking "in each of fiscal years" 
and all that follows through "10" and inserting "shall enter 
into agreements with"; 
(4) in subsection (b)(3), by striking "aid to families with 
dependent children under part A of title IV of the Social Secu-
rity Act" and inserting "assistance under the program funded 
part A of title IV of the Social Security Act of the State in 
which the individual resides"; 
(5) in subsection (c)— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2177 
(A) in pEiragraph (1)(C), by striking "aid to families 
with dependent children under title IV of the Social Secu-
rity Act and inserting "assistance under a State program 
funded part A of title IV of the Social Security Act"; 
(B) in paragraph (2), by striking "aid to families with 
dependent children under title IV of such Act" and inserting 
"assistance under a State program funded part A of title 
IV of the Social Security Act"; 
(6) in subsection (d), by striking "job opportunities and 
basic skills training program (as provided for under title IV 
of the Social Security Act)" and inserting "the State program 
funded under part A of title IV of the Social Security 
Act"; and 
(7) by striking subsections (e) through (g) and inserting 
the following: 
"(e) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of 
conducting projects under this section, there is authorized to be 
appropriated an amount not to exceed $25,000,000 for any fiscal 
year.". 
SEC. 113. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR 
TECHNICAL AND CONFORMING AMENDMENTS. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Health £ind Humein Services and the 
Commissioner of Social Security, in consultation, as appropriate, 
with the heads of other Federal agencies, shall submit to the 
appropriate committees of Congress a legislative proposal proposing 
such technical £ind conforming amendments as are necessary to 
bring the law into conformity with the policy embodied in this 
title. 
SEC. 
114. ASSURING 
MEDICAID 
COVERAGE 
FOR LOW-INCOME 
FAMILIES. 
(a) IN GENERAL.—Title XIX is amended— 
(1) by redesignating section 1931 as section 1932; and 42USC1396v. 
(2) by inserting after section 1930 the following new section: 
"ASSURING COVERAGE FOR CERTAIN LOW-INCOME FAMILIES 
" S E C 1931. (a) REFERENCES TO TITLE I V - A ARE REFERENCES 
42 use 1396U-I. 
TO PRE-WELFARE-REFORM PROVISIONS.—Subject to the succeeding 
provisions of this section, with respect to a State any reference 
in this title (or any other provision of law in relation to the operation 
of this title) to a provision of part A of title IV, or a State plan 
under such part (or a provision of such a plan), including income 
and resource standards and income and resource methodologies 
under such part or plan, shall be considered a reference to such 
a provision or plan as in effect as of July 16, 1996, with respect 
to the State. 
"(b) 
APPLICATION 
OF 
PRE-WELFARE-REFORM 
ELIGIBILITY 
CRITERIA.— 
"(1) IN GENERAL.—For purposes of this title, subject to 
paragraphs (2) and (3), in determining eligibility for medical 
assistance— 
"(A) an individual shall be treated as receiving aid 
or assistance under a State plan approved under part A 
of title rV only if the individual meets— 
110 STAT. 2178 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(i) the income and resource standards for deter-
mining eligibility under such plan, and 
"(ii) the eligibility requirements of such plan under 
subsections (a) through (c) of section 406 and section 
407(a), 
as in effect as of July 16,1996; and 
"(B) the income and resource methodologies under such 
plan as of such date shall be used in the determination 
of whether any individual meets income and resource 
standards under such plan. 
"(2) STATE OPTION.—For purposes of appl5dng this section, 
a State— 
"(A) may lower its income standards applicable with 
respect to part A of title IV, but not below the income 
standards applicable under its State plan under such part 
on May 1,1988; 
"(B) may increase income or resource standards imder 
the State plan referred to in paragraph (1) over a period 
(beginning after July 16, 1996) by a percentage that does 
not exceed the percentage increase in the Consumer Price 
Index for all urban consumers (all items; United States 
city average) over such period; and 
"(C) may use income and resource methodologies that 
are less restaictive than the methodologies used under the 
State plan under such part as of July 16,1996. 
"(3) 
OPTION 
TO TERMINATE 
MEDICAL 
ASSISTANCE FOR 
FAILURE TO MEET WORK REQUIREMENT.— 
"(A) INDIVIDUALS RECEIVING CASH ASSISTANCE UNDER 
TANF.—In the case of an individual who— 
"(i) is receiving cash assistsince under a State pro-
gram fiinded xmder part A of title IV, 
"(ii) is eligible for medical assistance under this 
title on a basis not related to section 1902(1), and 
"(iii) has the cash assistance imder such program 
terminated pursuant to section 407(e)(1)(B) (as in effect 
on or after the welfare reform effective date) because 
of refusing to work, 
the State may terminate such individual's eUgibility for 
medical assistance under this title imtil such time as there 
no longer is a basis for the termination of such cash assist-
ance because of such refusal. 
"(B) 
EXCEPTION FOR CHILDREN.—Subparagraph 
(A) 
shall not be construed as permitting a State to terminate 
medical assistance for a minor child who is not the head 
of a household receiving assistance imder a State program 
funded imder part A of title IV. 
"(c) TREATMENT FOR PURPOSES OF TRANSITIONAL COVERAGE 
PROVISIONS.— 
"(1) TRANSITION IN THE CASE OF CHILD SUPPORT COLLEC-
TIONS.—^The provisions of section 406(h) (as in effect on July 
16, 1996) shall apply, in relation to this title, with respect 
to individuals (and families composed of individuals) who are 
described in subsection (b)(1)(A), in the same manner as they 
applied before such date with respect to individuals who became 
ineligible for aid to families with dependent children as a 
result (wholly or partly) of the collection of child or spousal 
support under part D of title IV. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2179 
"(2) TRANSITION IN THE CASE OF EARNINGS FROM EMPLOY-
MENT.—For continued medical assistance in the case of individ-
uals (and families composed of individuals) described in sub-
section (b)(1)(A) who would otherwise become ineligible because 
of hours or income from employment, see sections 1925 and 
1902(e)(1). 
"(d) WAIVERS.—In the case of a waiver of a provision of part 
A of title IV in effect with respect to a State as of July 16, 
1996, or which is submitted to the Secretary before the date of 
the enactment of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 and approved by the Secretary on or 
before July 1, 1997, if the waiver affects eligibility of individuals 
for medical assistance under this title, such waiver may (but need 
not) continue to be applied, at the option of the State, in relation 
to this title after the date the waiver would otherwise expire. 
"(e) STATE OPTION TO USE 1 APPLICATION FORM.—Nothing 
in this section, or part A of title IV, shall be construed as preventing 
a State from providing for the same application form for assistance 
under a State program funded imder part A of title IV (on or 
after the welfare reform effective date) and for medical assistance 
under this title. 
"(f) ADDITIONAL RULES OF CONSTRUCTION.— 
"(1) With respect to the reference in section 1902(a)(5) 
to a State plan approved under part A of title FV, a State 
may treat such reference as a reference either to a State pro-
gram funded under such part (as in effect on and after the 
welfare reform effective date) or to the State plan under this 
title. 
"(2) Any reference in section 1902(a)(55) to a State plan 
approved under part A of title IV shall be deemed a reference 
to a State program funded under such part. 
"(3) In applying section 1903(f), the applicable income 
limitation otherwise determined shall be subject to increase 
in the same manner as income or resource standards of a 
State may be increased under subsection (b)(2)(B). 
"(g) RELATION TO OTHER PROVISIONS.—The provisions of this 
section shall apply notwithstanding £iny other provision of this 
Act. 
"(h) TRANSITIONAL INCREASED FEDERAL MATCHING RATE FOR 
INCREASED ADMINISTRATIVE COSTS.— 
"(1) IN GENERAL.—Subject to the succeeding provisions of 
this subsection, the Secretary shall provide that with respect 
to administrative expenditures described in paragraph (2) the 
per centum specified in section 1903(a)(7) shall be increased 
to such percentage as the Secretary specifies. 
"(2) 
ADMINISTRATIVE 
EXPENDITURES 
DESCRIBED.—The 
administrative expenditures described in this paragraph are 
expenditures described in section 1903(a)(7) that a State dem-
onstrates to the satisfaction of the Secretary are attributable 
to administrative costs of eligibility determinations that (but 
for the enactment of this section) would not be incurred. 
"(3) LIMITATION.—The total amoiint of additional Federal 
funds that are expended as a result of the application of this 
subsection for the period beginning with fiscal year 1997 and 
ending with fiscal year 2000 shall not exceed $500,000,000. 
In applying this paragraph, the Secretary shall ensure the 
equitable distribution of additional funds among the States. 
29-194 O - 96 - 15 : QL 3 Part 3 
110 STAT. 2180 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(4) TIME LIMITATION.—This subsection shall only apply 
with respect to a State for expenditures incurred during the 
first 12 calendar quarters in which the State program funded 
under part A of title IV (as in effect on and after the welfare 
reform effective date) is in effect. 
"(i) WELFARE REFORM EFFECTIVE DATE.—In this section, the 
term 'welfare reform effective date' means the effective date, with 
respect to a State, of title I of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (as specified in section 
116 of such Act).". 
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C. 1396a(a)) 
is amended— 
(1) by striking "and" at the end of paragraph (61), 
(2) by striking the period at the end of paragraph (62) 
and inserting "; and", and 
(3) by inserting after paragraph (62) the following new 
paragraph: 
"(63) provide for administration £ind determinations of eligi-
bility with respect to individuals who are (or seek to be) eligible 
for medical assistance based on the application of section 1931.". 
(c) EXTENSION OF WORK TRANSITION PROVISIONS.—Sections 
1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(l)(B), 1396r-6(f)) are 
each amended by striking "1998" and inserting "2001". 
(d) ELIMINATION OF REQUIREMENT OF MINIMUM A F D C PAYMENT 
LEVELS.—(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by 
striking "if—" and all that follows and inserting the following: 
"if the State requires individuals described in subsection (1)(1) to 
apply for assistance under the State program funded under part 
A of title IV as a condition of appl)dng for or receiving medical 
assistance under this title.". 
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking 
paragraph (9). 
42 use 862a. 
SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-
RELATED CONVICTIONS. 
(a) IN GENERAL.—^An individual convicted (under Federal or 
State law) of any offense which is classified as a felony by the 
law of the jurisdiction involved and which has as an element the 
possession, use, or distribution of a controlled substance (as defined 
in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6))) 
shall not be eligible for— 
(1) assistance under any State program funded under part 
A of title IV of the Social Security Act, or 
(2) benefits under the food stamp program (as defined 
in section 3(h) of the Food Stamp Act of 1977) or £iny State 
program carried out under the Food Stamp Act of 1977. 
(b) EFFECTS ON ASSISTANCE AND BENEFITS FOR OTHERS.— 
(1) 
PROGRAM OF TEMPORARY 
ASSISTANCE FOR NEEDY 
FAMILIES.—The amount of assistance otherwise required to be 
provided under a State program funded under part A of title 
IV of the Social Security Act to the family members of an 
individual to whom subsection (a) applies shall be reduced 
by the amount which would have otherwise been made available 
to the individual under such part. 
(2) BENEFITS UNDER THE FOOD STAMP ACT OF 1977.—The 
amount of benefits otherwise required to be provided to a 
household under the food stamp program (as defined in section 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2181 
3(h) of the Food Stamp Act of 1977), or any State program 
carried out under the Food Stamp Act of 1977, shall be deter-
mined by considering the individual to whom subsection (a) 
applies not to be a member of such household, except that 
the income £ind resources of the individual shall be considered 
to be income and resources of the household. 
(c) ENFORCEMENT.—^A State that has not exercised its authority 
under subsection (d)(1)(A) shall require each individual appljdng 
for assistance or benefits referred to in subsection (a), during the 
application process, to state, in writing, whether the individual, 
or any member of the household of the individual, has been con-
victed of a crime described in subsection (a). 
(d) LIMITATIONS.— 
(1) STATE ELECTIONS.— 
(A) OPT OUT.—^A State may, by specific reference in 
a law enacted after the date of the enactment of this 
Act, exempt any or all individuals domiciled in the State 
fi'om the application of subsection (a). 
(B) LIMIT PERIOD OF PROHIBITION.—A State may, by 
law enacted after the date of the enactment of this Act, 
limit the period for which subsection (a) shall apply to 
any or all individuals domiciled in the State. 
(2) INAPPLICABILITY TO CONVICTIONS OCCURRING ON OR 
BEFORE ENACTMENT.—Subsection (a) shall not apply to convic-
tions occurring on or before the date of the enactment of this 
Act. 
(e) DEFINITIONS OF STATE.—For purposes of this section, the 
term "State" has the meaning given it— 
(1) in section 419(5) of the Social Security Act, when refer-
ring to assistance provided under a State program fijnded under 
part A of title IV of the Social Security Act, and 
(2) in section 3(m) of the Food Stamp Act of 1977, when 
referring to the food stamp program (as defined in section 
3(h) of the Food Stamp Act of 1977) or any State program 
carried out under the Food Stamp Act of 1977. 
(f) RULE OF INTERPRETATION.—Nothing i n t h i s section shall 
be construed to deny the following Federal benefits: 
(1) Emergency medical services under title XIX of the Social 
Security Act. 
(2) Short-term, noncash, in-kind emergency disaster relief. 
(3)(A) Public health assistance for immunizations. 
(B) Public health assistance for testing and treatment of 
communicable diseases if the Secretary of Health and Human 
Services determines that it is necessary to prevent the spread 
of such disease. 
(4) Prenatal care. 
(5) Job training programs. 
(6) Drug treatment programs. 
SEC. 116. EFFECTIVE DATE; TRANSITION RULE. 
42 USC 601 note. 
(a) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided in this title, 
this title and the amendments made by this title shall take 
effect on July 1, 1997. 
(2) DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS.— 
Notwithstanding any other provision of this section, paragraphs 
(2), (3), (4), (5), (8), and (10) of section 409(a) and section 
110 STAT. 2182 
PUBLIC LAW 104-193—AUG. 22, 1996 
411(a) of the Social Security Act (as added by the amendments 
made by section 103(a) of this Act) shall not take effect with 
respect to a State until, and shall apply only with respect 
to conduct that occurs on or after, the later of— 
(A) July 1, 1997; or 
(B) the date that is 6 months after the date the Sec-
retary of Health and Human Services receives from the 
State a plan described in section 402(a) of the Social Secu-
rity Act (as added by such amendment). 
(3) GRANTS TO OUTLYING AREAS.—The amendments made 
by section 103(b) shall take effect on October 1,1996. 
(4) ELIMINATION OF CHILD CARE PROGRAMS.—The amend-
ments made by section 103(c) shall take effect on October 
1, 1996. 
(5) DEFINITIONS APPLICABLE TO NEW CHILD CARE ENTITLE-
MENT.—Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the 
Social Security Act, as added by the amendments made by 
section 103(a) of this Act, shall take effect on October 1, 1996. 
(b) TRANSITION RULES.—Effective on the date of the enactment 
of this Act: 
(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE.— 
(A) IN GENERAL.—If the Secretary of Health and 
Human Services receives from a State a plan described 
in section 402(a) of the Social Security Act (as added 
by the amendment made by section 103(a)(1) of this Act), 
then— 
(i) on and after the date of such receipt— 
(I) except as provided in clause (ii), this title 
and the amendments made by this title (other 
than by section 103(c) of this Act) shall apply 
with respect to the State; and 
(II) the State shall be considered an eligible 
State for purposes of part A of title IV of the 
Social Security Act (as in effect pursuant to the 
amendments made by such section 103(a)); and 
(ii) during the period that begins on the date of 
such receipt and ends on June 30, 1997, there shall 
remain in effect with respect to the State— 
(I) section 403(h) of the Social Security Act 
(as in effect on September 30,1995); and 
(II) all State reporting requirements under 
parts A and F of title IV of the Social Security 
Act (as in effect on September 30, 1995), modified 
by the Secretary as appropriate, taking into 
account the State program under part A of title 
IV of the Social Security Act (as in effect pursuant 
to the amendments made by such section 103(a)). 
(B) LIMITATIONS ON FEDERAL OBLIGATIONS.— 
(i) UNDER AFDC PROGRAM.—The total obligations 
of the Federal Government to a State under part A 
of title IV of the Social Security Act (as in effect on 
September 30, 1995) with respect to expenditures in 
fiscal year 1997 shall not exceed an amount equal 
to the State family assistance grant. 
(ii) UNDER TEMPORARY FAMILY ASSISTANCE PRO-
GRAM,—Notwithstanding section 403(a)(1) of the Social 
Security Act (as in effect pursuant to the amendments 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2183 
made by section 103(a) of this Act), the total obhgations 
of the Federal Government to a State under such sec-
tion 403(a)(1)— 
(I) for fiscal year 1996, shall be an amount 
equal to— 
(aa) the State family assistance grant; 
multiplied by 
(bb) V366 of the number of days during 
the period that begins on the date the 
Secretary of Health and Human Services first 
receives from the State a plan described in 
section 402(a) of the Social Security Act (as 
added by the amendment made by section 
103(a)(1) of this Act) and ends on September 
30, 1996; and 
(II) for fiscal year 1997, shall be an amount 
equal to the lesser of— 
(aa) the amount (if any) by which the 
State family assistance grant exceeds the total 
obligations of the Federal Government to the 
State under part A of title IV of the Social 
Security Act (as in effect on September 30, 
1995) with respect to expenditures in fiscal 
year 1997; or 
(bb) the State family assistance grant, 
multiplied by Vaes of the number of days dur-
ing the period that begins on October 1, 1996, 
or the date the Secretary of Health and 
Human Services first receives from the State 
a plan described in section 402(a) of the Social 
Security Act (as added by the amendment 
made by section 103(a)(1) of this Act), which-
ever is later, and ends on September 30, 1997. 
(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETER-
MINING FEDERAL AFDC OBLIGATIONS.—As USed in this 
subparagraph, the term "obligations of the Federal 
Government to the State imder part A of title IV 
of the Social Security Act" does not include any obliga-
tion of the Federal Government with respect to child 
care expenditures by the State. 
(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR I996 
OR 1997 DEEMED ACCEPTANCE OF GRANT LIMITATIONS AND 
FORMULA AND TERMINATION OF AFDC ENTITLEMENT.—The 
submission of a plan by a State pursuant to subparagraph 
(A) is deemed to constitute— 
(i) the State's acceptance of the grant reductions 
under subparagraph (B) (including the formula for 
computing the amount of the reduction); and 
(ii) the termination of any entitlement of any 
individual or family to benefits or services under the 
State AFDC program. 
(D) DEFINITIONS.—^As used in this paragraph: 
(i) STATE AFDC PROGRAM.—The term "State AFDC 
program" means the State program under parts A and 
F of title IV of the Social Security Act (as in effect 
on September 30,1995). 
110 STAT. 2184 
PUBLIC LAW 104-193—AUG. 22, 1996 
(ii) STATE.—The term "State" means the 50 States 
and the District of Columbia. 
(iii) STATE FAMILY ASSISTANCE GRANT.—The term 
"State family assistance grant" meeins the State family 
assistance grant (as defined in section 403(a)(1)(B) of 
the Social Security Act, as added by the amendment 
made by section 103(a)(1) of this Act). 
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments 
made by this title shall not apply with respect to— 
(A) powers, duties, functions, rights, claims, penalties, 
or obligations applicable to aid, assistance, or services 
provided before the effective date of this title under the 
provisions amended; and 
(B) administrative actions and proceedings commenced 
before such date, or authorized before such date to be 
commenced, under such provisions. 
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMI-
NATED OR SUBSTANTIALLY MODIFIED BY THIS TITLE.—In closing 
out accounts, Federal and State officials may use scientifically 
acceptable statistical sampling techniques. Claims made with 
respect to State expenditures under a State plan approved 
under part A of title IV of the Social Security Act (as in 
effect on September 30, 1995) with respect to assistance or 
services provided on or before September 30, 1995, shall be 
treated as claims with respect to expenditures during fiscal 
year 1995 for purposes of reimbursement even if payment was 
made by a State on or after October 1, 1995. Each State 
shall complete the filing of all claims under the State plan 
(as so in effect) within 2 years after the date of the enactment 
of this Act. The head of each Federal department shall— 
(A) use the single audit procedure to review and resolve 
any claims in connection with the close out of programs 
under such State plsins; and 
(B) reimburse States for any pajnnents made for assist-
ance or services provided during a prior fiscal year from 
funds for fiscal year 1995, rather than from funds author-
ized by this title. 
(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR 
FAMILY SUPPORT.—The individual who, on the day before the 
effective date of this title, is serving as Assistant Secretary 
for Family Support within the Department of Health and 
Human Services shall, until a successor is appointed to such 
position— 
(A) continue to serve in such position; and 
(B) except as otherwise provided by law— 
(i) continue to perform the functions of the Assist-
ant Secretary for Family Support under section 417 
of the Social Security Act (as in effect before such 
effective date); and 
(ii) have the powers and duties of the Assistant 
Secretary for Family Support under section 416 of 
the Socisd Security Act (as in effect pursuant to the 
amendment made by section 103(a)(1) of this Act). 
(c) TERMINATION OF ENTITLEMENT UNDER A F D C PROGRAM.— 
Effective October 1, 1996, no individual or family shall be entitled 
to any benefits or services under any State plan approved under 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2185 
part A or F of title IV of the Social Security Act (as in effect 
on September 30,1995). 
TITLE II—SUPPLEMENTAL SECURITY 
INCOME 
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT. 
Except as otherwise specifically provided, wherever in this title 
an amendment is expressed in terms of an amendment to or repeal 
of a section or other provision, the reference shall be considered 
to be made to that section or other provision of the Social Security 
Act. 
Subtitle A—Eligibility Restrictions 
SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS 
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED 
R£SII»:NCE IN ORDER TO OBTAIN BENEFITS SIMULTA. 
NEOUSLY IN 2 OR MOBE STATES. 
(a) IN GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as 
amended by section 105(b)(4XA) of the Contract with America 
Advancement Act of 1996, is amended by redesignating paragraph 
(5) as paragraph (3) and by adding at the end the following new 
pEiragraph: 
"(4XA) No person shall be considered an ehgible individual 
or eligible spouse for purposes of this title during the 10-year 
period that begins on the date the person is convicted in Federal 
or State court of having made a fraudulent statement or representa-
tion with respect to the place of residence of the person in order 
to receive assistance simultaneously from 2 or more States under 
programs that are funded under title IV, title XIX, or the Food 
Stamp Act of 1977, or benefits in 2 or more States imder the 
supplemental security income program under this title. 
"(B) As soon as practicable after the conviction of a person 
in a Federal or State court as described in subparagraph (A), 
an official of such court shall notify the Commissioner of such 
conviction.". 
(b) EFFECTIVE DATE.—^The amendment made by this section 
42 use 1382 
shall take effect on the date of the enactment of this Act. 
note-
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBA-
TION AND PAROLE VIOLATORS. 
(a) IN GENERAL.—Section 1611(e) (42 U.S.C. 1382(e)), as 
gmaended by section 201(a) of this Act, is amended by adding at 
the end the following new paragraph: 
"(5) No person shall be considered an eligible individual or 
eligible spouse for purposes of this title with respect to any month 
if (Turing such month the person is— 
"(A) fleeing to avoid prosecution, or custody or confinement 
after conviction, under the laws of the place fi^om which the 
person flees, for a crime, or an attempt to commit a crime, 
which is a felony under the laws of the place ft-om which 
the person flees, or which, in the case of the State of 
New Jersey, is a high misdemeanor under tiie laws ojf such 
State; or 
110 STAT. 2186 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(B) violating a condition of probation or parole imposed 
under Federal or State law.". 
(b) EXCHANGE OF INFORMATION.—Section 1611(e) (42 U.S.C. 
1382(e)), as amended by section 201(a) of this Act and subsection 
(a) of this section, is amended by adding at the end the following 
new paragraph: 
"(6) Notwithstanding any other provision of law (other than 
section 6103 of the Internal Revenue Code of 1986), the Commis-
sioner shall furnish any Federal, State, or local law enforcement 
officer, upon the written request of the officer, with the current 
address. Social Security number, and photograph (if applicable) 
of any recipient of benefits under this title, if the officer furnishes 
the Commissioner with the name of the recipient, and other 
identifying information as reasonably required by the Commissioner 
to establish the unique identity of the recipient, and notifies the 
Commissioner that— 
"(A) the recipient— 
"(i) is described in subparagraph (A) or (B) of para-
graph (5); and 
"(ii) has information that is necessary for the officer 
to conduct the officer's official duties; and 
"(B) the location or apprehension of the recipient is within 
the officer's official duties.". 
42 use 1382 
(c) EFFECTIVE DATE.—The amendments made by this section 
note. 
shall take effect on the date of the enactment of this Act. 
SEC. 203. TREATMENT OF PRISONERS. 
(a) IMPLEMENTATION OF PROHIBITION AGAINST PAYMENT OF 
BENEFITS TO PRISONERS.— 
(1) IN GENERAL.—Section 1611(e)(1) (42 U.S.C. 1382(e)(1)) 
is amended by adding at the end the following new subpara-
graph: 
Contracts. 
"(I)(i) The Commissioner shall enter into an agreement, with 
any interested State or local institution described in clause (i) 
or (ii) of section 202(x)(l)(A) the primary purpose of which is to 
confine individuals as described in section 202(x)(l)(A), imder 
which— 
"(I) the institution shall provide to the Commissioner, on 
a monthly basis £ind in a manner specified by the Commis-
sioner, the names, social security account numbers, dates 
of birth, confinement commencement dates, and, to the extent 
available to the institution, such other identifying information 
concerning the inmates of the institution as the Commissioner 
may require for the purpose of carrying out paragraph (1); 
and 
"(II) the Commissioner shall pay to any such institution, 
with respect to each inmate of the institution who is eligible 
for a benefit under this title for the month preceding the 
first month throughout which such inmate is in such institution 
and becomes ineligible for such benefit as a result of the applica-
tion of this subparagraph, $400 if the institution 
fiimishes 
the information described in subclause (I) to the Commissioner 
within 30 days after the date such individual becomes an 
inmate of such institution, or $200 if the institution furnishes 
such information after 30 days after such date but within 
90 days after such date. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2187 
"(ii)(I) The provisions of section 552a of title 5, United States 
Code, shall not apply to any agreement entered into under clause 
(i) or to information exchanged pursuemt to such agreement. 
"(11) The Commissioner is authorized to provide, on a reimburs-
able Ibasis, information obtained pursuant to agreements entered 
into under clause (i) to any Federal or federally-assisted cash, 
food, or medical assistance program for eligibility purposes. 
"(iii) Payments to institutions required by clause (i)(II) shall 
be made from funds otherwise available for the payment of benefits 
under this title and shall be treated as direct spending for purposes 
of the Balanced Budget and Emergency Deficit Control Act of 1985.". 
(2) EFFECTIVE DATE.—The amendment made by this sub- 
42 use 1382 
section shall apply to individuals whose period of confinement 
^°^-
in an institution commences on or after the first day of the 
seventh month beginning after the month in which this Act 
is enacted. 
(b) STUDY OF OTHER POTENTIAL IMPROVEMENTS IN THE COLLEC- 42 use i382 
TiON OF INFORMATION RESPECTING PUBLIC INMATES.— 
"^o'e. 
(1) STUDY.—The Commissioner of Social Security shall con-
duct a study of the desirability, feasibility, and cost of— 
(A) establishing a system under which Federal, State, 
and local courts would furnish to the Commissioner such 
information respecting court orders by which individuals 
are confined in jails, prisons, or other public penal, correc-
tional, or medical facilities as the Commissioner may 
require for the purpose of canying out section 1611(e)(1) 
of the Social Security Act; and 
(B) requiring that State and local jails, prisons, and 
other institutions that enter into agreements with the 
Commissioner under section 1611(e)(l)(I) of the Social Secu-
rity Act furnish the information required by such agree-
ments to the Commissioner by means of an electronic or 
other sophisticated data exchange system. 
(2) REPORT.—Not later than 1 year after the date of the 
enactment of this Act, the Commissioner of Social Security 
shall submit a report on the results of the study conducted 
pursuEmt to this subsection to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the 
House of Representatives. 
(c) ADDITIONAL REPORT TO CONGRESS.—Not later than October 
42 use 1382 
1, 1998, the Commissioner of Social Security shall provide to the ^o\e. 
Committee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives a list of the institutions 
that are and are not providing information to the Commissioner 
under section 1611(e)(l)(I) of the Social Security Act (as added 
by this section). 
SEC. 204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS. 
(a) IN GENERAL.—Subparagraphs (A) and (B) of section 
1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as follows: 
"(A) the first day of the month following the date such 
application is filed, or 
"(B) the first day of the month following the date such 
individual becomes eligible for such benefits with respect to 
such application.". 
110 STAT. 2188 
PUBLIC LAW 104-193—AUG. 22, 1996 
(b) SPECIAL RULE RELATING TO EMERGENCY ADVANCE PAY-
MENTS.—Section 
1631(a)(4)(A) 
(42 
U.S.C. 
1383(a)(4)(A)) 
is 
amended— 
(1) by inserting "for the month following the date the 
application is filed" after "is presumptively eligible for such 
benefits"; and 
(2) by inserting ", which shall be repaid through propor-
tionate reductions in such benefits over a period of not more 
than 6 months" before the semicolon. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended— 
(A) by striking "or requests" and inserting ", on the 
first day of the month following the date the application 
is filed, or, in any case in which either spouse requests"; 
and 
(B) by striking "application or". 
42USC1383. 
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended 
by inserting "following the month" after "beginning with the 
month". 
42 use 1382 
(d) EFFECTIVE DATE.— 
note. 
(1) IN GENERAL.—The amendments made by this section 
shall apply to applications for benefits under title XVI of the 
Social Security Act filed on or after the date of the enactment 
of this Act, without regard to whether regulations have been 
issued to implement such amendments. 
(2) BENEFITS UNDER TITLE XVI.—For purposes of this sub-
section, the term "benefits under title XVI of the Social Security 
Act" includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a) of the 
Social Security Act, and pajmaents pursuant to an agreement 
entered into under section 212(b) of Public Law 93-66. 
Subtitle B—Benefits for Disabled Children 
SEC. 211. DEFINITION AND ELIGIBILITY RULES. 
(a) DEFINITION OF CHILDHOOD DISABILITY.—Section 1614(a)(3) 
(42 U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of the 
Contract with America Advancement Act of 1996, is amended— 
(1) in subparagraph (A), by striking "An individual" and 
inserting "Except as provided in subparagraph (C), an indi-
vidual"; 
(2) in subparagraph (A), by striking "(or, in the case of 
an individual under the age of 18, if he suffers from any 
medically determinable physical or mental impairment of com-
parable severity)"; 
(3) by redesignating subparagraphs (C) through (I) as sub-
paragraphs (D) through (J), respectively; 
(4) by inserting after subparagraph (B) the following new 
subparagraph: 
"(C)(i) An individual under the age of 18 shall be considered 
disabled for the purposes of this title if that individual has a 
medically determinable physical or mental impairment, which 
results in marked and severe functional limitations, and which 
can be expected to result in death or which has lasted or can 
be expected to last for a continuous period of not less than 12 
months. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2189 
"(ii) Notwithstanding clause (i), no individual under the age 
of 18 who engages in substantial gainful activity (determined in 
accordance with regulations prescribed pursuant to subparagraph 
(E)) may be considered to be disabled."; and 
(5) in subparagraph (F), as redesignated by paragraph (3), 
by striking "(D)" and inserting "(E)". 
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.— 
(1) MODIFICATION TO MEDICAL CRITERIA FOR EVALUATION 
OF MENTAL AND EMOTIONAL DISORDERS.—^The Commissioner of 
Social 
Security 
shall 
modify 
sections 
112.00C.2. 
and 
112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title 
20, Code of Federal Regulations, to eliminate references to 
maladaptive behavior in the domain of personal/behavorial 
function. 
(2) 
DISCONTINUANCE 
OF 
INDIVIDUALIZED 
FUNCTIONAL 
ASSESSMENT.—The Commissioner of Social Security shall dis-
continue the individualized functional assessment for children 
set forth in sections 416.924d and 416.924e of title 20, Code 
of Federal Regulations. 
(c) MEDICAL IMPROVEMENT REVIEW STANDARD AS IT APPLIES 
TO INDIVIDUALS UNDER THE AGE OF 18.—Section 1614(a)(4) (42 
U.S.C. 1382(a)(4)) is amended— 
42 USC 1382c. 
(1) by redesignating subclauses (I) and (II) of clauses (i) 
and (ii) of subparagraph (B) as items (aa) and (bb), respectively; 
(2) by redesignating clauses (i) and (ii) of subparagraphs 
(A) and (B) as subclauses (I) and (II), respectively; 
(3) by redesignating subparagraphs (A) through (C) as 
clauses (i) through (iii), respectively; 
(4) by inserting before clause (i) (as redesignated by para-
graph (3)) the following new subparagraph: 
"(A) in the case of an individual who is age 18 or 
older—"; 
(5) by inserting after and below subparagraph (A)(iii) (as 
so redesignated) the following new subparagraph: 
"(B) in the case of an individual who is under the age 
ofl8— 
"(i) substantial evidence which demonstrates that 
there has been medical improvement in the individual's 
impairment or combination of impairments, and that such 
impairment or combination of impairments no longer 
results in marked and severe functional limitations; or 
"(ii) substantial evidence which demonstrates that, as 
determined on the basis of new or improved diagnostic 
techniques or evaluations, the individual's impairment or 
combination of impairments, is not as disabling as it was 
considered to be at the time of the most recent prior deci-
sion that the individual was under a disability or continued 
to be under a disability, and such impairment or combina-
tion of impairments does not result in marked and severe 
functional limitations; or"; 
(6) by redesignating subparagraph (D) as subparagraph 
(C) and by inserting in such subparagraph "in the case of 
any individual," before "substantial evidence"; and 
(7) in the first sentence following subparagraph (C) (as 
redesignated by paragraph (6)), by— 
(A) inserting "(i)" before "to restore"; and 
110 STAT. 2190 
PUBLIC LAW 104-193—AUG. 22, 1996 
(B) inserting ", or (ii) in the case of an individual 
under the age of 18, to eHminate or improve the individual's 
impairment or combination of impairments so that it no 
longer results in marked and severe functional limitations" 
immediately before the period. 
42 u s e 1382c 
(d) EFFECTIVE DATES, ETC.— 
note. 
(1) EFFECTIVE DATES.— 
(A) SUBSECTIONS (a) AND (b).— 
(i) IN GENERAL.—The provisions of, and amend-
ments made by, subsections (a) and (b) of this section 
shall apply to any individual who applies for, or whose 
claim is finally adjudicated with respect to, benefits 
under title XVI of the Social Security Act on or after 
the date of the enactment of this Act, without regard 
to whether regulations have been issued to implement 
such provisions and amendments. 
(ii) DETERMINATION OF FINAL ADJUDICATION.—For 
purposes of clause (i), no individual's claim with respect 
to such benefits may be considered to be finally adju-
dicated before such date of enactment if, on or after 
such date, there is pending a request for either 
administrative or judicial review with respect to such 
claim that has been denied in whole, or there is pend-
ing, with respect to such claim, readjudication by the 
Commissioner of Social Security pursuant to relief in 
a class action or implementation by the Commissioner 
of a court remand order. 
(B) SUBSECTION (O.—The amendments made by sub-
section (c) of this section shall apply with respect to benefits 
under title XVI of the Social Security Act for months begin-
ning on or after the date of the enactment of this Act, 
without regard to whether regulations have been issued 
to implement such amendments. 
(2) APPLICATION TO CURRENT RECIPIENTS.— 
(A) 
ELIGIBILITY 
REDETERMINATIONS.—During 
the 
period beginning on the date of the enactment of this 
Act and ending on the date which is 1 year after such 
date of enactment, the Commissioner of Social Security 
shall redetermine the eligibility of any individual luider 
age 18 who is eligible for supplemental security income 
benefits by reason of disability under title XVI of the Social 
Security Act as of the date of the enactment of this Act 
and whose eligibility for such benefits may terminate by 
reason of the provisions of, or amendments made by, sub-
sections (a) and (b) of this section. With respect to any 
redetermination imder this subparagraph— 
(i) section 1614(a)(4) of the Social Security Act 
(42 U.S.C. 1382c(a)(4)) shall not apply; 
(ii) the Commissioner of Social Security shall apply 
the eligibility criteria for new applicants for benefits 
under title XVI of such Act; 
(iii) the Commissioner shall give such redetermina-
tion priority over all continuing eligibility reviews and 
other reviews under such title; and 
(iv) such redetermination shall be counted as a 
review or redetermination otherwise required to be 
made under section 208 of the Social 
Security 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2191 
Independence and Program Improvements Act of 1994 
or any other provision of title XVI of the Social Security 
Act. 
(B) GRANDFATHER PROVISION.—The provisions of, and 
amendments made by, subsections (a) and (b) of this sec-
tion, and the redetermination under subparagraph (A), 
shall only apply with respect to the benefits of an individual 
described in subparagraph (A) for months beginning on 
or after the later of July 1, 1997, or the date of the redeter-
mination with respect to such individual. 
(C) NOTICE.—Not later than January 1, 1997, the 
Commissioner of Social Security shall notify an individual 
described in subparagraph (A) of the provisions of this 
paragraph. 
(3) REPORT.—The Commissioner of Social Security shall 
report to the Congress regarding the progress made in 
implementing the provisions of, and amendments made by, 
this section on child disability evaluations not later than 180 
days after the date of the enactment of this Act. 
(4) REGULATIONS.—Notwithstanding any other provision of 
law, the Commissioner of Social Security shall submit for review 
to the committees of jurisdiction in the Congress any final 
regulation pertaining to the eligibility of individuals under 
age 18 for benefits under title XVI of the Social Security Act 
at least 45 days before the effective date of such regulation. 
The submission under this paragraph shall include supporting 
documentation providing a cost analysis, workload impact, and 
projections as to how the regulation will effect the future num-
ber of recipients under such title. 
(5) 
CAP ADJUSTMENT 
FOR 
SSI 
ADMINISTRATIVE 
WORK 
REQUIRED BY WELFARE REFORM.— 
(A) AUTHORIZATION.—For the 
additional costs of 
continuing disability reviews and redeterminations under 
title XVI of the Social Security Act, there is hereby author-
ized to be appropriated to the Social Security Administra-
tion, in addition to amounts authorized under section 
201(g)(1)(A) of the Social Security Act, $150,000,000 in 
fiscal year 1997 and $100,000,000 in fiscal year 1998. 
(B) CAP ADJUSTMENT.—Section 251(b)(2)(H) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985, 
as amended by section 103(b) of the Contract with America 
Advancement Act of 1996, is amended— 
2 USC 901. 
(i) in clause (i)— 
(I) in subclause (II) by— 
(aa) striking "$25,000,000" and inserting 
"$175,000,000"; and 
(bb) striking "$160,000,000" and inserting 
"$310,000,000"; and 
(II) in subclause (III) by— 
(aa) striking "$145,000,000" and inserting 
"$245,000,000"; and 
(bb) striking "$370,000,000" and inserting 
"$470,000,000"; and 
(ii) by amending clause (ii)(I) to read as follows: 
"(I) the term 'continuing disability reviews' means 
reviews or redeterminations as defined under section 
201(g)(1)(A) of the Social Security Act and reviews 
110 STAT. 2192 
PUBLIC LAW 104-193—AUG. 22, 1996 
and redeterminations authorized under section 211 of 
the Personal ResponsibiHty and Work Opportunity Rec-
onciHation Act of 1996;". 
2USC665e. 
(C) 
ADJUSTMENTS.—Section 
606(e)(1)(B) 
of 
the 
Congressional Budget Act of 1974 is amended by adding 
at the end the following new sentences: "If the adjustments 
referred to in the preceding sentence are made for an 
appropriations measure that is not enacted into law, then 
the Chairman of the Committee on the Budget of the 
House of Representatives shall, as soon as practicable, 
reverse those adjustments. The Chairman of the Committee 
on the Budget of the House of Representatives shall submit 
any adjustments made under this subparagraph to the 
House of Representatives and have such adjustments pub-
lished in the Congressional Record.". 
(D) CONFORMING AMENDMENT.—Section 103(d)(1) of the 
Contract with America Advancement Act of 1996 (42 U.S.C. 
A
r
e
^
e
, p. 850. 
401 note) is amended by striking "medicaid programs." 
and inserting "medicaid programs, except that the amounts 
appropriated pursuant to the authorization and discre-
tionary 
spending 
allowance 
provisions 
in 
section 
211(d)(2)(5) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 shall be used only for 
continuing disability reviews and redeterminations under 
title XVI of the Social Security Act.". 
(6) BENEFITS UNDER TITLE XVI.—For purposes of this sub-
section, the term "benefits under title XVI of the Social Security 
Act" includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a) of the 
Social Security Act, and payments pursuant to an agreement 
entered into under section 212(b) of Public Law 93-66. 
SEC. 
212. 
ELIGIBILITY 
REDETERMINATIONS 
AND 
CONTINUING 
DISABILITY REVIEWS. 
(a) 
CONTINUING DISABILITY REVIEWS RELATING TO CERTAIN 
CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as 
redesignated by section 211(a)(3) of this Act, is amended— 
(1) by inserting "(i)" after "(H)"; and 
(2) by adding at the end the following new clause: 
"(ii)(I) Not less frequently than once every 3 years, the Commis-
sioner shall review in accordance with paragraph (4) the continued 
eligibility for benefits under this title of each individual who has 
not attained 18 years of age and is eligible for such benefits by 
reason of an impairment (or combination of impairments) which 
is likely to improve (or, at the option of the Commissioner, 
which is unlikely to improve). 
"(II) A representative payee of a recipient whose case is 
reviewed under this clause shall present, at the time of review, 
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and 
available, of the condition which was the basis for providing benefits 
under this title. 
"(Ill) If the representative payee refuses to comply without 
good cause with the requirements of subclause (II), the Commis-
sioner of Social Security shall, if the Commissioner determines 
it is in the best interest of the individual, promptly suspend pay-
ment of benefits to the representative payee, and provide for pay-
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2193 
ment of benefits to an alternative representative payee of the 
individual or, if the interest of the individual under this title would 
be served thereby, to the individual. 
"(IV) Subclause (II) shall not apply to the representative payee 
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary. 
In making such determination, the Commissioner shall take into 
consideration the nature of the individual's impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding 
by the Commissioner that the requirements of subclause (II) should 
not apply to an individual's representative payee.". 
(b) DISABILITY ELIGIBILITY REDETERMINATIONS REQUIRED FOR 
SSI RECIPIENTS WHO ATTAIN 18 YEARS OF AGE.— 
(1) 
IN GENERAL.—Section 
1614(a)(3)(H) 
(42 
U.S.C. 
1382c(a)(3)(H)), as amended by subsection (a) of this section, 
is amended by adding at the end the following new clause: 
"(iii) If an individual is eligible for benefits under this title 
by reason of disability for the month preceding the month in which 
the individual attains the age of 18 years, the Commissioner shall 
redetermine such eligibility— 
"(I) during the 1-year period beginning on the individual's 
18th birthday; and 
"(II) by applying the criteria used in determining the initial 
eligibility for applicsints who are age 18 or older. 
With respect to a redetermination under this clause, paragraph 
(4) shall not apply and such redetermination shall be considered 
a substitute for a review or redetermination otherwise required 
under any other provision of this subparagraph during that 1-
year period.". 
(2) CONFORMING REPEAL.—Section 207 of the Social Secu-
rity Independence and Program Improvements Act of 1994 (42 
U.S.C. 1382 note; 108 Stat. 1516) is hereby repealed. 
(c) CoNTiisruiNG DISABILITY REVIEW REQUIRED FOR LOW BIRTH 
WEIGHT BABIES.—Section 1614(a)(3XH) (42 U.S.C. 1382c(a)(3)(H)), 
as amended by subsections (a) and (b) of this section, is amended 
by adding at the end the following new clause: 
"(iv)(I) Not later than 12 months after the birth of an individual, 
the Commissioner shall review in accordance with paragraph (4) 
the continuing eligibility for benefits under this title by reason 
of disability of such individual whose low birth weight is a contribut-
ing factor material to the Commissioner's determination that the 
individual is disabled. 
"(II) A review under subclause (I) shall be considered a sub-
stitute for a review otherwise required under any other provision 
of this subparagraph during that 12-month period. 
"(Ill) A representative payee of a recipient whose case is 
reviewed under this clause shall present, at the time of review, 
evidence demonstrating that the recipient is, and has been, receiv-
ing treatment, to the extent considered medically necessary and 
available, of the condition which was the basis for providing benefits 
under this title. 
"(IV) If the representative payee refuses to comply without 
good cause with the requirements of subclause (III), the Commis-
sioner of Social Security shall, if the Commissioner determines 
it is in the best interest of the individual, promptly suspend pay-
ment of benefits to the representative payee, and provide for 
payment of benefits to an gJtemative representative payee of the 
110 STAT. 2194 
PUBLIC LAW 104-193—AUG. 22, 1996 
42 use 1382c 
note. 
individual or, if the interest of the individual under this title would 
be served thereby, to the individual. 
"(V) Subclause (III) shall not apply to the representative payee 
of any individual with respect to whom the Commissioner deter-
mines such application would be inappropriate or unnecessary. 
In making such determination, the Commissioner shall take into 
consideration the nature of the individual's impairment (or combina-
tion of impairments). Section 1631(c) shall not apply to a finding 
by the Commissioner that the requirements of subclause (III) should 
not apply to an individual's representative payee.". 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to benefits for months beginning on or after the date 
of the enactment of this Act, without regard to whether regulations 
have been issued to implement such amendments. 
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS. 
(a) REQUIREMENT TO ESTABLISH ACCOUNT,—Section 1631(a)(2) 
(42 U.S.C. 1383(a)(2)) is amended— 
(1) by redesignating subparagraphs (F) and (G) as subpara-
graphs (G) and (H), respectively; and 
(2) by inserting after subparagraph (E) the following new 
subparagraph: 
"(F)(i)(I) Each representative payee of an eligible individual 
under the age of 18 who is eligible for the payment of benefits 
described in subclause (II) shall establish on behalf of such individ-
ual an account in a financial institution into which such benefits 
shall be paid, and shall thereafter maintain such accoimt for use 
in accordance with clause (ii). 
"(II) Benefits described in this subclause are past-due monthly 
benefits under this title (which, for purposes of this subclause, 
include State supplementary payments made by the Commissioner 
pursuant to an agreement under section 1616 or section 212(b) 
of Public Law 93-66) in an amount (after any withholding by 
the Commissioner for reimbursement to a State for interim assist-
ance under subsection (g)) that exceeds the product of— 
"(aa) 6, and 
"(bb) the maximum monthly benefit payable under this 
title to an eligible individual. 
"(ii)(I) A representative payee shall use funds in the account 
established under clause (i) to pay for allowable expenses described 
in subclause (II). 
"(II) An allowable expense described in this subclause is an 
expense for— 
"(aa) education or job skills training; 
"(bb) personal needs assistance; 
"(cc) special equipment; 
"(dd) housing modification; 
"(ee) medical treatment; 
"(ft) therapy or rehabilitation; or 
"(gg) any other item or service that the Commissioner 
determines to be appropriate; 
provided that such expense benefits such individual and, in the 
case of an expense described in item (bb), (cc), (dd), (flD, or (gg), 
is related to the impairment (or combination of impeiirments) of 
such individual. 
"(Ill) The use of funds from an account established under 
clause (i) in any manner not authorized by this clause— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2195 
"(aa) by a representative payee shall be considered a 
misapplication of benefits for all purposes of this paragraph, 
and any representative payee who knowingly misapplies bene-
fits from such an account shall be liable to the Commissioner 
in £in amount equal to the total amount of such benefits; and 
"(bb) by an eligible individual who is his or her own payee 
shall be considered a misapplication of benefits for all purposes 
of this paragraph and the total amount of such benefits so 
used shall be considered to be the uncompensated value of 
a disposed resource and shall be subject to the provisions of 
section 1613(c). 
"(IV) This clause shall continue to apply to funds in the account 
after the child has reached age 18, regardless of whether benefits 
are paid directly to the beneficiary or through a representative 
payee. 
"(iii) The representative payee may deposit into the account 
established pursuant to clause (i)— 
"(I) past-due benefits payable to the eligible individual 
in an amount less than that specified in clause (i)(II), and 
"(II) any other funds representing an underpayment under 
this title to such individual, provided that the amount of such 
underpayment is equal to or exceeds the maximum monthly 
benefit payable under this title to an eligible individual, 
"(iv) The Commissioner of Social Security shall establish a 
system for accountability monitoring whereby such representative 
payee shall report, at such time and in such manner as the Commis-
sioner shall require, on activity respecting fimds in the account 
established pursuant to clause (i).". 
(b) EXCLUSION FROM RESOURCES.—Section 1613(a) (42 U.S.C. 
1382b(a)) is amended— 
(1) by striking "and" at the end of paragraph (10); 
(2) by striking the period at the end of paragraph (11) 
and inserting "; and"; and 
(3) by inserting after paragraph (11) the following new 
paragraph: 
"(12) any account, including accrued interest or other earn-
ings thereon, established and maintained in accordance with 
section 1631(a)(2)(F).". 
(c) EXCLUSION 
FROM INCOME.—Section 1612(b) (42 U.S.C. 
1382a(b)) is amended— 
(1) by striking "and" at the end of paragraph (19); 
(2) by striking the period at the end of paragraph (20) 
and inserting "; and"; and 
(3) by adding at the end the following new paragraph: 
"(21) the interest or other earnings on any account estab-
lished 
and 
maintained 
in 
accordeince 
with 
section 
1631(a)(2)(F).". 
(d) EFFECTIVE DATE.—^The amendments made by this section 
42 use I382a 
shall apply to payments made after the date of the enactment note. 
of this Act. 
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONAL-
IZED 
INDIVIDUALS 
WHOSE 
MEDICAL 
COSTS 
ARE 
COVERED BY PRIVATE INSURANCE. 
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B)) 
is amended by inserting "or, in the case of an eligible individual 
who is a child under the age of 18, receiving payments (with 
110 STAT. 2196 
PUBLIC LAW 104-193—AUG. 22, 1996 
respect to such individual) under any health insurance policy issued 
by 
a 
private 
provider 
of 
such 
insurance" 
after 
"section 
1614(f)(2)(B),". 
42 use 1382 
(b) EFFECTIVE DATE.—The amendment made by this section 
note. 
shall apply to benefits for months be^nning 90 or more days 
after the date of the enactment of this Act, without regard to 
whether regulations have been issued to implement such amend-
ments. 
42 use 1382 
SEC. 215. REGULATIONS. 
Within 3 months after the date of the enactment of this Act, 
the Commissioner of Social Security shall prescribe such regulations 
as may be necessary to implement the amendments made by this 
subtitle. 
Subtitle C—^Additional Enforcement 
Provision 
SEC. 221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLE-
MENTAL SECURITY INCOME BENEFITS. 
(a) IN GENERAL.—Section 1631(a) (42 U.S.C. 1383) is amended 
by adding at the end the following new paragraph: 
"(10)(A) If an individual is eligible for past-due monthly benefits 
under this title in an amount that (after any withholding for 
reimbursement to a State for interim assistance imder subsection 
(g)) equals or exceeds the product of— 
"(i) 12, and 
"(ii) the msiximum monthly benefit payable under this title 
to an eligible individual (or, if appropriate, to an eligible indi-
vidual and eligible spouse), 
then the pa5mient of such past-due benefits (after any such 
reimbursement to a State) shall be made in installments as provided 
in subparagraph (B). 
"(B)(i) The payment of past-due benefits subject to this subpara-
graph shall be made in not to exceed 3 installments that are 
made at 6-month intervals. 
"(ii) Except as provided in clause (iii), the amount of each 
of the first and second installments may not exceed an amount 
equal to the product of clauses (i) and (ii) of subparagraph (A), 
"(iii) In the case of an individual who has— 
"(I) outstanding debt attributable to— 
"(aa) food, 
"(bb) clothing, 
"(cc) shelter, or 
"(dd) medically necessary services, supplies or equip-
ment, or medicine; or 
"(II) current expenses or expenses anticipated in the near 
term attributable to— 
"(aa) medically necessary services, supplies or equip-
ment, or medicine, or 
"(bb) the purchase of a home, and 
such debt or expenses are not subject to reimbursement by a public 
assistance program, the Secretsiry under title XVIII, a State plan 
approved under title XIX, or any private entity legally liable to 
provide payment pursuant to an insurance policy, pre-paid plan, 
or other sirrangement, the limitation specified in clause (ii) may 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2197 
be exceeded by an amount equal to the total of such debt and 
expenses. 
"(C) This paragraph shall not apply to any individual who, 
at the time of the Commissioner's determination that such individ-
ual is eligible for the payment of past-due monthly benefits under 
this title— 
"(i) is afflicted with a medically determinable impairment 
that is expected to result in death within 12 months; or 
"(ii) is ineligible for benefits under this title and the 
Commissioner determines that such individual is likely to 
remain ineligible for the next 12 months. 
"(D) For purposes of this paragraph, the term 'benefits under 
this title' includes supplementary payments pursuant to an agree-
ment for Federal administration under section 1616(a), and pay-
ments pursuant to an agreement entered into under section 212(b) 
ofPublic Law 93-66.". 
(b) CONFORMING AMENDMENT.—Section 1631(a)(1) (42 U.S.C. 
1383(a)(1)) is amended by inserting "(subject to paragraph (10))" 
immediately before "in such installments". 
(c) EFFECTIVE DATE.— 
42 use i383 
(1) IN GENERAL.—The amendments made by this section note. 
are effective with respect to past-due benefits payable under 
title XVI of the Social Security Act after the third month 
following the month in which this Act is enacted. 
(2) BENEFITS PAYABLE UNDER TITLE XVI.—For purposes of 
this subsection, the term "benefits payable under title XVI 
of the Social Security Act" includes supplementary pajntnents 
pursuant to an agreement for Federal administration under 
section 1616(a) of the Social Security Act, and pajonents pursu-
ant to an agreement entered into under section 212(b) of Public 
Law 93-66. 
SEC. 222. REGULATIONS. 
42 USC 1383 
Within 3 months after the date of the enactment of this Act, 
the Commissioner of Social Security shall prescribe such regulations 
as may be necessary to implement the amendments made by this 
subtitle. 
Subtitle D—Studies Regarding 
Supplemental Security Income Program 
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL 
SECURITY 
INCOME PROGRAM. 
Title XVI (42 U.S.C. 1381 et seq.), as amended by section 
105(b)(3) of the Contract with America Advancement Act of 1996, 
is amended by adding at the end the following new section: 
"ANNUAL REPORT ON PROGRAM 
" S E C 1637. (a) Not later than May 30 of each year, the Commis- 42 USC I383f. 
sioner of Social Security shall prepare and deliver a report annually 
to the President and the Congress regarding the program under 
this title, including— 
"(1) a comprehensive description of the program; 
"(2) historical and current data on allowances and denials, 
including number of appUcations and allowance rates for initial 
110 STAT. 2198 
PUBLIC LAW 104-193—AUG. 22, 1996 
determinations, reconsideration determinations, administrative 
law judge hearings, appeals council reviews, and Federal court 
decisions; 
"(3) historical and current data on characteristics of recipi-
ents and program costs, by recipient group (aged, blind, disabled 
adults, and disabled children); 
"(4) historical and current data on prior enrollment by 
recipients in public benefit programs, including State programs 
funded under part A of title IV of the Social Security Act 
and State general assistance programs; 
"(5) projections of future number of recipients and program 
costs, through at least 25 years; 
"(6) number of redeterminations and continuing dis-
ability reviews, and the outcomes of such redeterminations 
and reviews; 
"(7) data on the utilization of work incentives; 
"(8) detailed information on administrative and other pro-
gram operation costs; 
"(9) summaries of relevant research undertaken by the 
Social Security Administration, or by other researchers; 
"(10) State supplementation program operations; 
"(11) a historical summary of statutory changes to this 
title; and 
"(12) such other information as the Commissioner deems 
useful. 
"(b) Each member of the Social Security Advisory Board shall 
be permitted to provide an individual report, or a joint report 
if agreed, of views of the program under this title, to be included 
in the annual report required under this section.". 
42 use 1382 
SEC. 232. STUDY BY GENERAL ACCOUNTING OFFICE. 
Not later than January 1, 1999, the Comptroller General of 
the United States shall study and report on— 
(1) the impact of the amendments made by, and the provi-
sions of, this title on the supplemental security income program 
under title XVI of the Social Security Act; and 
(2) extra expenses incurred by families of children receiving 
benefits under such title that are not covered by other Federal, 
State, or local programs. 
TITLE III—CHILD SUPPORT 
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT. 
Except as otherwise specifically provided, wherever in this 
title an amendment is expressed in terms of an amendment to 
or repeal of a section or other provision, the reference shall be 
considered to be made to that section or other provision of the 
Social Security Act. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2199 
Subtitle A—Eligibility for Services; 
Distribution of Payments 
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCE-
MENT SERVICES. 
(a) STATE PLAN REQUIREMENTS.—Section 454 (42 U.S.C. 654) 
is amended— 
(1) by striking paragraph (4) and inserting the following 
new paragraph: 
"(4) provide that the State will— 
"(A) provide services relating to the establishment of 
paternity or the establishment, modification, or enforce-
ment of child support obligations, as appropriate, under 
the plan with respect to— 
"(i) each child for whom (I) assistance is provided 
under the State program funded under part A of this 
title, (II) benefits or services for foster care mainte-
nance are provided under the State program funded 
under part E of this title, or (III) medical assistance 
is provided under the State plan approved under title 
XIX, unless, in accordance with paragraph (29), good 
cause or other exceptions exist; 
"(ii) any other child, if an individual applies for 
such services with respect to the child; and 
"(B) enforce any support obligation established with 
respect to— 
"(i) a child with respect to whom the State provides 
services under the plan; or 
"(ii) the custodial parent of such a child;"; and 
(2) in paragraph (6)— 
(A) by striking "provide that" and inserting "provide 
that—"; 
(B) by striking subparagraph (A) and inserting the 
following new subparagraph: 
"(A) services under the plan shall be made available 
to residents of other States on the same terms as to resi-
dents of the State submitting the plan;"; 
(C) in subparagraph (B), by inserting "on individuals 
not receiving assistance under any State program funded 
under part A" after "such services shall be imposed"; 
(D) in each of subparagraphs (B), (C), (D), and (E)— 
(i) by indenting the subparagraph in the same 
manner as, and aligning the left margin of the subpara-
graph with the left margin of, the matter inserted 
by subparagraph (B) of this paragraph; and 
(ii) by striking the final comma and inserting a 
semicolon; and 
(E) in subparagraph (E), by indenting each of clauses 
(i) and (ii) 2 additional ems. 
(b) 
CONTINUATION OF SERVICES FOR FAMILIES CEASING TO 
RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER 
PART A.—Section 454 (42 U.S.C. 654) is amended— 
(1) by striking "and" at the end of paragraph (23); 
(2) by striking the period at the end of paragraph (24) 
and inserting "; and"; and 
110 STAT. 2200 
PUBLIC LAW 104-193—AUG. 22, 1996 
(3) by adding after paragraph (24) the following new para-
graph: 
"(25) provide that if a family with respect to which services 
are provided under the plan ceases to receive assistance under 
the State program funded under part A, the State shall provide 
appropriate notice to the family and continue to provide such 
services, subject to the same conditions and on the same basis 
as in the case of other individuals to whom services are fur-
nished under the plan, except that an application or other 
request to continue services shall not be required of such a 
family and paragraph (6)(B) shall not apply to the family.", 
(c) CONFORMING AMENDMENTS.— 
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking 
"454(6)" and inserting "454(4)". 
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended 
by striking "454(6)" each place it appears and inserting 
"454(4)(A)(ii)". 
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended 
by striking "in the case of overdue support which a State 
has agreed to collect under section 454(6)" and inserting "in 
any other case". 
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking 
"paragraph (4) or (6) of section 454" euid inserting "section 
454(4)". 
SEC. 302. DISTRroUTION OF CHILD SUPPORT COLLECTIONS. 
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is amended to 
read as follows: 
"SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT. 
"(a) IN GENERAL.—Subject to subsection (e), an amount collected 
on behalf of a family as support by a State pursuant to a plan 
approved under this part shall oe distributed as follows: 
"(1) FAMILIES RECEIVING ASSISTANCE.—In the case of a 
family receiving assistance from the State, the State shall— 
"(A) pay to the Federal Government the Federal share 
of the amount so collected; and 
"(B) retain, or distribute to the family, the State share 
of the amount so collected. 
"(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In 
the case of a family that formerly received 
assistance 
from the State: 
"(A) CURRENT SUPPORT PAYMENTS.—To the extent that 
the amount so collected does not exceed the amount 
required to be paid to the family for the month in which 
collected, the State shall distribute the amoimt so collected 
to the family. 
"(B) PAYMENTS OF ARREARAGES.—TO the extent that 
the amount so collected exceeds the amount required to 
be paid to the family for the month in which collected, 
the State shall distribute the amount so collected as follows: 
"(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED 
AFTER THE FAMILY CEASED TO RECEIVE ASSISTANCE.— 
"(I) PRE-OCTOBER 1997.—Except as provided in 
subclause (II), the provisions of this section (other 
than subsection (b)(1)) as in effect and applied 
on the day before the date of the enactment of 
section 302 of the Personal Responsibility and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2201 
Work Opportunity Act Reconciliation of 1996 shall 
apply with respect to the distribution of support; 
arrearages that— 
"(aa) accrued after the family ceased to 
receive assistance, and 
"(bb) are collected before October 1, 1997. 
"(11) PoST-SEPTEMBER 1997.—^With respect to 
the amount so collected on or after October 1, 
1997 (or before such date, at the option of the 
State)— 
"(aa) IN GENERAL.—The State shall first 
distribute the amount so collected (other than 
any amount described in clause (iv)) to the 
family to the extent necessary to satisfy any 
support arrearages with respect to the family 
that accrued after the family ceased to receive 
assistance 
fi*om 
the State. 
"(bb) REIMBURSEMENT OF GOVERNMENTS 
FOR ASSISTANCE PROVIDED TO THE FAMILY.— 
After the application of division (aa) and 
clause (ii)(II)(aa) with respect to the amount 
so collected, the State shall retain the State 
share of the amount so collected, and pay to 
the Federal Government the Federal share (as 
defined in subsection (c)(2)) of the amount so 
collected, but only to the extent necessary to 
reimburse amounts paid to the family as 
assistance by the State. 
"(cc) DISTRIBUTION OF THE REMAINDER TO 
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the 
amount so collected, the State shall distribute 
the amount to the family, 
"(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED 
BEFORE THE FAMILY RECEIVED ASSISTANCE.— 
"(I) PRE-OCTOBER 2000.—Except as provided in 
subclause (II), the provisions of this section (other 
than subsection (b)(1)) as in effect and applied 
on the day before the date of the enactment of 
section 302 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 shall 
apply with respect to the distribution of support 
arrearages that— 
"(aa) accrued before the family received 
assistance, and 
"(bb) are collected before October 1, 2000. 
"(II) POST-SEPTEMBER 2000.—Unless, based on 
the report required by paragraph (4), the Congress 
determines otherwise, with respect to the amount 
so collected on or after October 1, 2000 (or before 
such date, at the option of the State)— 
"(aa) IN GENERAL.—The State shall first 
distribute the eimount so collected (other than 
any amount described in clause (iv)) to the 
family to the extent necessary to satisfy any 
support arrearages with respect to the family 
110 STAT. 2202 
PUBLIC LAW 104-193—AUG. 22, 1996 
that accrued before the family received assist-
ance from the State. 
"(bb) 
REIMBURSEMENT OF GOVERNMENTS 
FOR ASSISTANCE PROVIDED TO THE FAMILY.— 
After the application of clause (i)(II)(aa) and 
division (aa) with respect to the amount so 
collected, the State shall retain the State share 
of the amount so collected, and pay to the 
Federal Government the Federal share (as 
defined in subsection (c)(2)) of the amount so 
collected, but only to the extent necessary to 
reimburse amounts paid to the family as 
assistance by the State. 
"(cc) DISTRIBUTION OF THE REMAINDER TO 
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the 
amount so collected, the State shall distribute 
the amount to the family, 
"(iii) DISTRIBUTION OF ARREARAGES THAT ACCRUED 
WHILE THE FAMILY RECEIVED ASSISTANCE.—In the case 
of a family described in this subparagraph, the provi-
sions of paragraph (1) shall apply with respect to the 
distribution of support arrearages that accrued while 
the family received assistance. 
"(iv) AMOUNTS COLLECTED PURSUANT TO SECTION 
464.—Notwithstanding any other provision of this sec-
tion, any amount of support collected pursuant to 
section 464 shall be retained by the State to the extent 
past-due support has been assigned to the State as 
a condition of receiving assistance fi*om the State, up 
to the amount necessary to reimburse the State for 
amounts paid to the family as assistance by the State. 
The State shall pay to the Federal Government the 
Federal share of the amounts so retained. To the extent 
the amount collected pursuant to section 464 exceeds 
the amount so retained, the State shall distribute the 
excess to the family. 
"(v) ORDERING RULES FOR DISTRIBUTIONS.—For 
purposes of this subparagraph, unless an earlier effec-
tive date is required by this section, effective October 
1, 2000, the State shall treat any support arrearages 
collected, except for amounts collected pursuant to sec-
tion 464, as accruing in the following order: 
"(I) To the period after the family ceased to 
receive assistance. 
"(II) To the period before the family received 
assistance. 
"(Ill) To the period while the family was 
receiving assistance. 
"(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the 
case of £iny other family, the State shall distribute the amount 
so collected to the family. 
"(4) FAMILIES UNDER CERTAIN AGREEMENTS.—In the case 
of a family receiving assistance from an Indian tribe, distribute 
the amount so collected pursuant to an agreement entered 
into pursuant to a State plan under section 454(33). 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2203 
"(5) STUDY AND REPORT.—Not later than October 1, 1998, 
the Secretary shall report to the Congress the Secretary's find-
ings with respect to— 
"(A) whether the distribution of post-assistance arrear-
ages to families has been effective in moving people off 
of welfare and keeping them off of welfare; 
"(B) whether early implementation of a pre-assistance 
arrearage program by some States has been effective in 
moving people off of welfare and keeping them off of wel-
fare; 
"(C) what the overall impact has been of the amend-
ments made by the Personal Responsibility and Work 
Opportunity Act of 1996 with respect to child support 
enforcement in moving people off of welfare and keeping 
them off of welfare; and 
"(D) based on the information £ind data the Secretary 
has obtained, what changes, if any, should be made in 
the policies related to the distribution of child support 
arrearages. 
"(b) CONTINUATION OF ASSIGNMENTS.—Any rights to support 
obligations, which were assigned to a State as a condition of receiv-
ing assistance from the State under part A and which were in 
effect on the day before the date of the enactment of the Personal 
Responsibility and Work Opportimity Act of 1996, shall remain 
assigned after such date. 
"(c) DEFINITIONS.—^As used in subsection (a): 
"(1) ASSISTANCE.—The term 'assistance from the State' 
means— 
"(A) assistance under the State program funded under 
part A or under the State plan approved under part A 
of this title (as in effect on the day before the date of 
the enactment of the Personal Responsibility and Work 
Opportunity Act of 1996); and 
"(B) foster care maintenance pajonents under the State 
plan approved imder part E of this title. 
"(2) FEDERAL SHARE.—The term 'Federal share' means that 
portion of the amount collected resulting from the application 
of the Federal medical assistance percentage in effect for the 
fiscal year in which the amount is collected. 
"(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE.—The term 
'Federal medical assistance percentage' means— 
"(A) the Federal medical assistance percentage (as 
defined in section 1118), in the case of Puerto Rico, the 
Virgin Islands, Guam, and American Samoa; or 
"(B) the Federal medical assistance percentage (as 
defined in section 1905(b), as in effect on September 30, 
1996) in the case of any other State. 
"(4) STATE SHARE.—The term 'State share' means 100 per-
cent minus the Federal share. 
"(d) HOLD HARMLESS PROVISION.—If the amounts collected 
which could be retained by the State in the fiscal year (to the 
extent necessary to reimburse the State for amounts paid to families 
as assistance by the State) are less than the State share of the 
amounts collected in fiscal year 1995 (determined in accordance 
with section 457 as in effect on the day before the date of the 
enactment of the Personal Responsibility and Work Opportunity 
110 STAT. 2204 
PUBLIC LAW 104-193—AUG. 22, 1996 
Act of 1996), the State share for the fiscal year shall be an amount 
equal to the State share in fiscal year 1995. 
"(e) GAP PAYMENTS NOT SUBJECT TO DISTRIBUTION UNDER THIS 
SECTION.—^At State option, this section shall not apply to any 
amount collected on behalf of a family as support by the State 
(and paid to the family in addition to the amoimt of assistance 
otherwise payable to the family) pursuant to a plan approved under 
this part if such amoimt would have been paid to the family 
by the State under section 402(a)(28), as in effect and applied 
on the day before the date of the enactment of section 302 of 
the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996. For purposes of subsection (d), the State share of 
such amount paid to the family shall be considered amoimts which 
could be retained by the State if such pajmaents were reported 
by the State as part of the State share of amounts collected in 
fiscal year 1995.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by 
striking "section 457(b)(4) or (d)(3)" and inserting "section 457". 
(2) Section 454 (42 U.S.C. 654) is amended— 
(A) in paragraph (11)— 
(i) by striking "(11)" and inserting "(IIXA)"; and 
(ii) by inserting after the semicolon "and"; and 
(B) by redesignating paragraph (12) as subparagraph 
(B) of paragraph (11). 
42 use 657 note. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), 
the amendments made by this section shall be effective on 
October 1,1996, or earlier at the State's opticm. 
(2) CONFORMING AMENDMENTS.—The amendments made by 
subsection (bX2) shall become effective on the date of the enact-
ment of this Act. 
SEC. 303. PRIVACY SAFEGUARDS. 
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654), 
as amended by section 301(b) of this Act, is amended— 
(1) by striking "and" at the end of paragraph (24); 
(2) by striking the period at the end of paragraph (25) 
and inserting "; and"; and 
(3) by adding after paragraph (25) the following new para-
graph: 
"(26) will have in effect safeguards, applicable to all con-
fidential information handled by the State agency, that are 
designed to protect the privacy rights of the parties, including— 
"(A) safeguards against unauthorized use or disclosure 
of information relating to proceedings or actions to establish 
paternity, or to establish or enforce support; 
"(B) prohibitions against the release of information 
on the whereabouts of 1 party to smother party against 
whom a protective order with respect to the former party 
has been entered; and 
"(C) prohibitions against the release of information 
on the whereabouts of 1 party to another party if the 
State has reason to believe that the release of the informa-
tion may result in physical or emotional harm to the former 
party.". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2205 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 42 use 654 note. 
shall become effective on October 1,1997. 
SEC. 304. RIGHTS TO NOTIFICATION OF HEARINGS. 
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as amended 
by section 302(b)(2) of this Act, is amended by inserting after 
paragraph (11) the following new paragraph: 
"(12) provide for the establishment of procedures to require 
the State to provide individuals who are appl3dng for or receiv-
ing services under the State plan, or who are parties to cases 
in which services are being provided under the State plan— 
"(A) with notice of all proceedings in which support 
obligations might be established or modified; and 
"(B) with a copy of any order establishing or modifying 
a child support obligation, or (in the case of a petition 
for modification) a notice of determination that there should 
be no change in the amount of the child support award, 
within 14 days after issuance of such order or determina-
tion;". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 42 use 654 note, 
shall become effective on October 1, 1997. 
Subtitle B—Locate and Case Tracking 
SEC. 311. STATE CASE REGISTRY. 
Section 454A, as added by section 344(a)(2) of this Act, is 
amended by adding at the end the following new subsections: 
"(e) STATE CASE REGISTRY.— 
"(1) CONTENTS.—^The automated system required by this 
section shall include a registry (which shall be known as the 
'State case registry*) that contains records with respect to— 
"(A) each case in which services are being provided 
by the State agency under the State plan approved under 
this part; and 
"(B) each support order established or modified in the 
State on or after October 1, 1998. 
"(2) LINKING OF LOCAL REGISTRIES.—The State case registry 
may be established by linking local case registries of support 
orders through an automated information network, subject to 
this section. 
"(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records 
shall use standardized data elements for both parents (such 
as names, social security numbers and other uniform identifica-
tion numbers, dates of birth, and case identification numbers), 
and contain such other information (such as on case status) 
as the Secretary may require. 
"(4) PAYMENT RECORDS.—Each case record in the State 
case registry with respect to which services are being provided 
under the State plan approved under this part and with respect 
to which a support order has been established shall include 
a record of— 
"(A) the amount of monthly (or other periodic) support 
owed under the order, and other amounts (including arrear-
ages, interest or late payment pengdties, and fees) due 
or overdue under the order; 
110 STAT. 2206 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(B) any amount described in subparagraph (A) that 
has been collected; 
"(C) the distribution of such collected amounts; 
"(D) the birth date of any child for whom the order 
requires the provision of support; and 
"(E) the amount of any lien imposed with respect to 
the order pursuant to section 466(a)(4). 
"(5) UPDATING AND MONITORING.—The State agency operat-
ing the automated system required by this section shall 
promptly establish and update, maintain, and regularly mon-
itor, case records in the State case registry with respect to 
which services are being provided under the State plan 
approved under this part, on the basis of— 
"(A) 
information 
on 
administrative 
actions 
and 
administrative and judicial proceedings and orders relating 
to paternity and support; 
"(B) information 
obtained 
from 
comparison 
with 
Federal, State, or local sources of information; 
"(C) information on support collections and distribu-
tions; and 
"(D) any other relevant information. 
"(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF 
INFORMATION.—The State shall use the automated system required 
by this section to extract information from (at such times, and 
in such standardized format or formats, as may be required by 
the Secretary), to share and compare information with, and to 
receive information from, other data bases and information compari-
son services, in order to obtain (or provide) information necessary 
to enable the State agency (or the Secretary or other State or 
Federal agencies) to carry out this part, subject to section 6103 
of the Internal Revenue Code of 1986. Such information comparison 
activities shall include the following: 
"(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.— 
Furnishing to the Federal Case Registry of Child Support 
Orders established under section 453(h) (and update as nec-
essary, with information including notice of expiration of orders) 
the minimum amount of information on child support cases 
recorded in the State case registry that is necessary to operate 
the registry (as specified by the Secretary in regulations). 
"(2) 
FEDERAL 
PARENT 
LOCATOR 
SERVICE.—Exchanging 
information with the Federal Parent Locator Service for the 
purposes specified in section 453. 
"(3) 
TEMPORARY 
FAMILY 
ASSISTANCE 
AND 
MEDICAID 
AGENCIES.—Exchanging information with State agencies (of the 
State and of other States) administering programs funded under 
part A, programs operated under a State plan approved under 
title XIX, and other programs designated by the Secretary, 
as necessary to perform State agency responsibilities under 
this part and under such programs. 
"(4) INTRASTATE AND INTERSTATE INFORMATION COMPARI-
SONS.—Exchanging information with other agencies of the 
State, agencies of other States, and interstate information net-
works, as necessary and appropriate to carry out (or assist 
other States to carry out) the purposes of this part.". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2207 
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS. 
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654), 
as amended by sections 301(b) and 303(a) of this Act, is amended— 
(1) by striking "and" at the end of paragraph (25); 
(2) by striking the period at the end of paragraph (26) 
and inserting "; and"; and 
(3) by adding after paragraph (26) the following new para-
graph: 
"(27) provide that, on and after October 1, 1998, the State 
agency will— 
"(A) operate a State disbursement unit in accordance 
with section 454B; and 
"(B) have sufficient State staff (consisting of State 
employees) and (at State option) contractors reporting 
directly to the State agency to— 
"(i) monitor 
and 
enforce 
support 
collections 
through the unit in cases being enforced by the State 
pursuant to section 454(4) (including carrying out the 
automated data processing responsibilities described 
in section 454A(g)); £ind 
"(ii) take the actions described in section 466(c)(1) 
in appropriate cases.". 
(b) ESTABLISHMENT OF STATE DISBURSEMENT UNIT.—Part D 
of title IV (42 U.S.C. 651-669), as amended by section 344(a)(2) 
of this Act, is amended by inserting after section 454A the following 
new section: 
"SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAY- 
42USC654b. 
MENTS. 
"(a) STATE DISBURSEMENT UNIT.— 
"(1) IN GENERAL.—In order for a State to meet the require-
ments of this section, the State agency must establish and 
operate a unit (which shall be known as the 'State disbursement 
unit') for the collection and disbursement of payments under 
support orders— 
"(A) in all cases being enforced by the State pursuant 
to section 454(4); and 
"(B) in all cases not being enforced by the State under 
this part in which the support order is initially issued 
in the State on or after January 1, 1994, and in which 
the income of the noncustodial parent is subject to 
withholding pursuant to section 466(a)(8)(B). 
"(2) OPERATION.—The State disbursement unit shall be 
operated— 
"(A) directly by the State agency (or 2 or more State 
agencies under a regional cooperative agreement), or (to 
the extent appropriate) by a contractor responsible directly 
to the State agency; and 
"(B) except in cases described in paragraph (1)(B), in 
coordination with the automated system established by 
the State pursuant to section 454A. 
"(3) LINKING OF LOCAL DISBURSEMENT UNITS.—The State 
disbursement unit may be established by linking local disburse-
ment units through an automated information network, subject 
to this section, if the Secretary agrees that the system will 
not cost more nor take more time to establish or operate than 
110 STAT. 2208 
PUBLIC LAW 104-193—AUG. 22, 1996 
a centralized system. In addition, employers shall be given 
1 location to which income withholding is sent. 
"(b) REQUIRED PROCEDURES.—The State disbursement unit 
shall use automated procedures, electronic processes, and computer-
driven technology to the maximum extent feasible, efficient, and 
economical, for the collection and disbursement of support pay-
ments, including procedures— 
"(1) for receipt of payments fi-om parents, employers, and 
other States, and for disbursements to custodial parents and 
other obligees, the State agency, and the agencies of other 
States; 
"(2) for accurate identification of payments; 
"(3) to ensure prompt disbursement of the custodial parent's 
share of any pa5anent; and 
"(4) to furnish to any parent, upon request, timely informa-
tion on the current status of support payments under an. order 
requiring pajnnents to be made by or to the parent, except 
that in cases described in subsection (a)(1)(B), the State 
disbursement unit shall not be required to convert and maintain 
in automated form records of payments kept pursuant to section 
466(a)(8)(B)(iii) before the effective date of this section. 
"(c) TIMING OF DISBURSEMENTS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
the State disbursement unit shall distribute all amounts pay-
able under section 457(a) within 2 business days after receipt 
fi'om the employer or other source of periodic income, if suffi-
cient information identifying the payee is provided. 
"(2) PERMISSIVE RETENTION OF ARREARAGES.—The State 
disbursement unit may delay the distribution of collections 
toward arrearages until the resolution of any timely appeal 
with respect to such arrearages. 
"(d) BUSINESS DAY DEFINED.—As used in this section, the term 
^business d a / means a day on which State offices are open for 
regular business.". 
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as added by 
section 344(a)(2) and as amended by section 311 of this Act, is 
amended by adding at the end the following new subsection: 
"(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS.— 
"(1) IN GENERAL.—^The State shall use the automated sys-
tem required by this section, to the maximum extent feasible, 
to assist and facilitate the collection and disbursement of sup-
port payments through the State disbursement unit operated 
under section 454B, through the performance of functions, 
including, at a minimum— 
"(A) transmission of orders and notices to employers 
(and other debtors) for the withholding of income— 
"(i) within 2 business days after receipt of notice 
of, and the income source subject to, such withholding 
from a court, another State, an employer, the Federal 
Parent Locator Service, or another source recognized 
by the State; and 
"(ii) using uniform formats prescribed by the Sec-
retary; 
"(B) ongoing monitoring to promptly identify failures 
to make timely payment of support; and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2209 
"(C) automatic use of enforcement procedures (includ-
ing procedures authorized pursuant to section 466(c)) if 
pajonents are not timely made. 
(2) BUSINESS DAY DEFINED.—^As used in paragraph (1), 
the term 'business day^ means a day on which State offices 
are open for regular business.", 
(d) EFFECTIVE DATES.— 
42 use 654b 
(1) IN GENERAL.—Except as provided in paragraph (2), the note. 
amendments made by this section shall become effective on 
October 1, 1998. 
(2) LIMITED EXCEPTION TO UNIT HANDLING PAYMENTS.— 
Notwithstanding section 454B(b)(l) of the Social Security Act, 
as added by this section, any State which, as of the date 
of the enactment of this Act, processes the receipt of child 
support payments through local courts may, at the option of 
the State, continue to process through September 30, 1999, 
such payments through such courts as processed such pa3mients 
on or before such date of enactment. 
SEC. 313. STATE DIRECTORY OF NEW HIRES. 
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654), 
as amended by sections 301(b), 303(a), and 312(a) of this Act, 
is amended— 
(1) by striking "and" at the end of paragraph (26); 
(2) by striking the period at the end of paragraph (27) 
and inserting "; and"; and 
(3) by adding after paragraph (27) the following new para-
graph: 
"(28) provide that, on and after October 1, 1997, the State 
will operate a State Directory of New Hires in accordance 
with section 453A.". 
(b) STATE DIRECTORY OF NEW HIRES.—Part D of title IV (42 
U.S.C. 651-669) is amended by inserting after section 453 the 
following new section: 
"SEC. 453A. STATE DIRECTORY OF NEW HIRES. 
42USC653a. 
"(a) ESTABLISHMENT.— 
"(1) IN GENERAL.— 
"(A) REQUIREMENT FOR STATES THAT HAVE NO DIREC-
TORY.—Except as provided in subparagraph (B), not later 
than October 1, 1997, each State shall establish an auto-
mated directory (to be known as the 'State Directory of 
New Hires') wnich shall contain information supplied in 
accordance with subsection (b) by employers on each newly 
hired employee. 
"(B) STATES WITH NEW HIRE REPORTING LAW IN EXIST-
ENCE.—^A State which has a new hire reporting law in 
existence on the date of the enactment of this section 
may continue to operate under the State law, but the 
State must meet the requirements of subsection (g)(2) not 
later than October 1, 1997, and the requirements of this 
section (other than subsection (g)(2)) not later than October 
1, 1998. 
"(2) DEFINITIONS 
.—As used in this section: 
"(A) EMPLOYEE.—The term 'employee'— 
"(i) means an individual who is an employee within 
the meaning of chapter 24 of the Internal Revenue 
Code of 1986; and 
110 STAT. 2210 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(ii) does not include an employee of a Federal 
or State agency performing intelligence or coimterintel-
ligence functions, if the head of such agency has deter-
mined that reporting pursuant to paragraph (1) with 
respect to the employee could endanger the safety of 
the employee or compromise an ongoing investigation 
or intelligence mission. 
"(B) EMPLOYER.— 
"(i) IN GENERAL.—The term 'employer' has the 
meaning given such term in section 3401(d) of the 
Internal Revenue Code of 1986 and includes any 
governmental entity and any labor organization. 
"(ii) 
LABOR 
ORGANIZATION.—The 
term 
'labor 
organization* shall have the meaning given such term 
in section 2(5) of the National Labor Relations Act, 
and includes any entity (also known as a 'hiring hall') 
which is used by the organization and an employer 
to carry out requirements described in section 8(f)(3) 
of such Act of an agreement between the organization 
and the employer. 
"(b) EMPLOYER INFORMATION.— 
"(1) REPORTING REQUIREMENT.— 
"(A) IN GENERAL.—Except as provided in subpara-
graphs (B) and (C), each employer shall furnish to the 
Directory of New Hires of the State in which a newly 
hired employee works, a report that contains the name, 
address, and social security number of the employee, and 
the name £ind address of, and identifjdng number assigned 
under section 6109 of the Internal Revenue Code of 1986 
to, the employer. 
"(B) MULTISTATE EMPLOYERS.—An employer that has 
employees who are employed in 2 or more States and 
that transmits reports magnetically or electronically may 
comply with subparagraph (A) by designating 1 State in 
which such employer has employees to which the employer 
will transmit the report described in subparagraph (A), 
Notification. 
and transmitting such report to such State. Any employer 
that transmits reports pursuant to this subparagraph shall 
notify the Secretary in writing as to wMch State such 
employer designates for the purpose of sending reports. 
"(C) FEDERAL GOVERNMENT EMPLOYERS.—Any depart-
ment, agency, or instrumentality of the United States shall 
comply with subparagraph (A) by transmitting the report 
described in subparagraph (A) to the National Directory 
of New Hires established pursuant to section 453. 
"(2) TIMING OF REPORT.—Each State may provide the time 
within which the report required by paragraph (1) shall be 
made with respect to an employee, but such report shall 
be made— 
"(A) not later than 20 days after the date the employer 
hires the employee; or 
"(B) in the case of an employer transmitting reports 
magnetically or electronically, by 2 monthly transmissions 
(if necessary) not less than 12 days nor more than 16 
days apart. 
"(c) REPORTING FORMAT AND METHOD.—Each report required 
by subsection (b) shall be made on a W-4 form or, at the option 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2211 
of the employer, an equivalent form, and may be transmitted by 
1st class mail, magnetically, or electronically. 
"(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.— 
The state shall have the option to set a State civil money penalty 
which shall be less than— 
"(1) $25; or 
"(2) $500 if, under State law, the failure is the result 
of a conspiracy between the employer and the employee to 
not supply the required report or to supply a false or incomplete 
report. 
"(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be 
entered into the data base maintained by the State Directory of 
New Hires within 5 business days of receipt from an employer 
pursuant to subsection (b). 
"(f) INFORMATION COMPARISONS.— 
"(1) IN GENERAL.—Not later than May 1, 1998, an agency 
designated by the State shall, directly or by contract, conduct 
automated comparisons of the social security numbers reported 
by employers pursuEint to subsection (b) and the social security 
numbers appearing in the records of the State case registry 
for cases being enforced under the State plan. 
"(2) NOTICE OF MATCH.—When an information comparison 
conducted under paragraph (1) reveals a match with respect 
to the social security number of an individual required to pro-
vide support under a support order, the State Directory of 
New Hires shall provide the agency administering the State 
plan approved imder this part of the appropriate State with 
the name, address, and social security number of the employee 
to whom the social security number is assigned, and the name 
and address of, and identifying mmiber assigned under section 
6109 of the Internal Revenue Code of 1986 to, the employer. 
"(g) TRANSMISSION OF INFORMATION.— 
"(1) TRANSMISSION OF WAGE WITHHOLDING NOTICES TO 
EMPLOYERS.—^Within 2 business days after the date information 
regarding a newly hired employee is entered into the State 
Directory of New Hires, the State agency enforcing the employ-
ee's child support obligation shall transmit a notice to the 
employer of the employee directing the employer to withhold 
from the income of the employee an amount equal to the 
monthly (or other periodic) child support obligation (including 
any past due support obligation) of the employee, unless the 
employee's income is not subject to withholding pursuant to 
section 466(b)(3). 
"(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW 
HIRES.— 
"(A) NEW HIRE INFORMATION.—Within 3 business days 
after the date information regarding a newly hired 
employee is entered into the State Directory of New Hires, 
the State Directory of New Hires shall furnish the informa-
tion to the National Directory of New Hires. 
"(B) 
WAGE 
AND 
UNEMPLOYMENT 
COMPENSATION Regulations. 
INFORMATION.—The State Directory of New Hires shall, 
on a quarterly basis, furnish to the National Directory 
of New Hires extracts of the reports required under section 
303(a)(6) to be made to the Secretary of Labor concerning 
the wages and unemployment compensation paid to individ-
uals, by such dates, in such format, and containing such 
I - 16 : QL 3 Part 3 
110 STAT. 2212 
PUBLIC LAW 104-193—AUG. 22, 1996 
information as the Secretary of Health and Human Services 
shall specify in regulations. 
"(3) BUSINESS DAY DEFINED.—As used in this subsection, 
the term 'business day* means a day on which State offices 
are open for regular business. 
"(h) OTHER USES OF NEW HIRE INFORMATION.— 
"(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency 
administering the State plan approved imder this part shall 
use information received pursuant to subsection (f)(2) to locate 
individuals for purposes of establishing paternity and establish-
ing, modifying, and enforcing child support obligations, and 
may disclose such information to any agent of the agency that 
is under contract with the agency to carry out such purposes. 
"(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.— 
A State agency responsible for administering a program speci-
fied in section 1137(b) shall have access to information reported 
by employers pursuant to subsection (b) of this section for 
purposes of verifying eligibility for the program. 
"(3) 
ADMINISTRATION OF 
EMPLOYMENT 
SECURITY AND 
WORKERS' COMPENSATION.—State agencies operating employ-
ment security and workers' compensation programs shall have 
access to information reported by employers pursuant to sub-
section (b) for the purposes of administering such programs.". 
(c) 
QUARTERLY WAGE REPORTING.—Section 1137(a)(3) (42 
U.S.C. 1320b-7(a)(3)) is amended— 
(1) by inserting "(including State and local governmental 
entities and labor organizations 
(as defined 
in 
section 
453A(a)(2)(B)(iii))" after "employers"; and 
(2) by inserting ", and except that no report shall be filed 
with respect to £in employee of a State or local agency perform-
ing intelligence or counterintelligence functions, if the head 
of such agency has determined that filing such a report could 
endanger the safety of the employee or compromise an ongoing 
investigation or intelligence mission" after "paragraph (2)". 
(d) DISCLOSURE TO CERTAIN AGENTS.—Section 303(e) (42 U.S.C. 
503(e)) is amended by adding at the end the following: 
"(5) A State or local child support enforcement agency may 
disclose to any agent of the agency that is under contract with 
the agency to carry out the purposes described in paragraph (1)(B) 
wage information that is disclosed to an officer or employee of 
the agency under paragraph (1)(A). Any agent of a State or local 
child support agency that receives wage information under this 
paragraph shall comply with the safeguards established pursuant 
to paragraph (1)(B).". 
SEC. 314. AMENDMENTS CONCERNING D^COME WITHHOLDING. 
(a) MANDATORY INCOME WITHHOLDING.— 
(1) IN GENERAL.—Section 466(a)(1) (42 U.S.C. 666(a)(1)) 
is amended to read as follows: 
"(1)(A) Procedures described in subsection (b) for the 
withholding from income of amounts payable as support in 
cases subject to enforcement imder the State plan. 
"(B) Procedures under which the income of a person with 
a support obligation imposed by a support order issued (or 
modified) in the State before October 1, 1996, if not otherwise 
subject to withholding under subsection (b), shall become sub-
ject to withholding as provided in subsection (b) if arrearages 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2213 
occur, without the need for a judicial or administrative hear-
ing.". 
(2) CONFORMING AMENDMENTS.— 
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in 
the matter preceding paragraph (1), by striking "subsection 
(a)(1)" and inserting "subsection (a)(1)(A)". 
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended 
to read as follows: 
"(4)(A) Such withholding must be carried out in full compli- Notice. 
ance with all procedural due process requirements of the State, 
and the State must send notice to each noncustodial parent 
to whom paragraph (1) applies— 
"(i) that the withholding has commenced; and 
"(ii) of the procedures to follow if the noncustodial 
parent desires to contest such withholding on the grounds 
that the withholding or the amount witWbeld is improper 
due to a mistake of fact. 
"(B) The notice under subparagraph (A) of this paragraph 
shall include the information provided to the employer under 
paragraph (6)(A).". 
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended 
by striking all that follows "administered by" and inserting 
"the State through the State disbursement unit established 
pursuant to section 454B, in accordance with the require-
ments of section 454B.". 
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is 
amended— 
(i) in clause (i), by striking "to the appropriate 
agency" and all that follows and inserting "to the State 
disbursement unit within 7 business days after the 
date the amount would (but for this subsection) have 
been paid or credited to the employee, for distribution 
in accordance with this part. The employer shall with-
hold funds as directed in the notice, except that when 
an employer receives an income withholding order 
issued Dy another State, the employer shall apply the 
income withholding law of the state of the obligor's 
principal place of emplojmaent in determining— 
(I) tne employer's fee for processing an income 
withholding order; 
"(II) the maximum amount permitted to be withheld 
from the obligor's income; 
"(III) the time periods within which the employer must 
implement the income withholding order and forward the 
child support payment; 
"(IV) the priorities for withholding and allocating 
income withheld for multiple child support obligees; and 
"(V) any withholduig terms or conditions not specified 
in the order. 
An employer who complies with an income withholding notice 
that is regular on its face shall not be subject to civil liability 
to any individual or agency for conduct in compliance with 
the notice."; 
(ii) in clause (ii), by inserting "be in a standard 
format 
prescribed 
by the 
Secretary, 
and" 
after 
"shall"; and 
(iii) by adding at the end the following new clause: 
110 STAT. 2214 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(iii) As used in this subparagraph, the term 'business 
day' means a day on which State offices are open for regular 
businGSS '* 
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is 
amended by striking "any employer" and all that follows 
and inserting "any employer who— 
"(i) discharges from employment, refuses to employ, 
or takes disciplinary action against any noncustodial parent 
subject to income withholding required by this subsection 
because of the existence of such withholding and the obliga-
tions or additional obligations which it imposes upon the 
employer; or 
"(ii) fails to withhold support from income or to pay 
such amounts to the State disbursement unit in accordance 
with this subsection.". 
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by 
adding at the end the following new paragraph: 
"(11) Procedures under which the agency administering 
the State plan approved under this part may execute a 
withholding order without advance notice to the obligor, includ-
ing issuing the withholding order through electronic means.". 
(b) DEFINITION OF INCOME.— 
(1) IN GENERAL.—Section 466(b)(8) (42 U.S.C. 666(b)(8)) 
is amended to read as follows: 
"(8) For purposes of subsection (a) and this subsection, 
the term 'income' means any periodic form of pa3anent due 
to an individual, regardless of source, including wages, salaries, 
commissions, bonuses, worker's compensation, disability, pay-
ments pursuant to a pension or retirement program, and 
interest.". 
(2) CONFORMING AMENDMENTS.— 
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B), 
(b)(6)(A)(i), and (b)(6)(C), and (b)(7) of section 466 (42 U.S.C. 
666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A), (b)(3)(B), (b)(6)(A)(i), and 
(b)(6)(C), and (b)(7)) are each amended by striking "wages" 
each place such term appears eind inserting "income". 
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended 
by striking "wages (as defined by the State for purposes 
of this section)" and inserting "income". 
(c) CONFORMING AMENDMENT.—Section 466(c) (42 U.S.C. 666(c)) 
is repealed. 
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS. 
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after 
paragraph (11) the following new paragraph: 
"(12) 
LOCATOR 
INFORMATION 
FROM 
INTERSTATE 
NET-
WORKS.—Procedures to ensure that all Federal and State agen-
cies conducting activities under this part have access to any 
system used by the State to locate an individual for purposes 
relating to motor vehicles or law enforcement.". 
SEC. 
3
1
6
. 
EXPANSION 
OF 
THE 
FEDERAL 
PARENT 
LOCATOR 
SERVICE. 
(a) 
EXPANDED 
AUTHORITY TO LOCATE 
INDIVIDUALS AND 
ASSETS.—Section 453 (42 U.S.C. 653) is amended— 
(1) in subsection (a), by striking all that follows "subsection 
(c))" and inserting ", for the purpose of establishing parentage, 
establishing, setting the amount of, modifying, or enforcing 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2215 
child support obligations, or enforcing child custody or visitation 
orders— 
"(1) information on, or facilitating the discovery of, the 
location of any individual— 
"(A) v^rho is under an obligation to pay child support 
or provide child custody or visitation rights; 
"(B) against whom such an obligation is sought; 
"(C) to whom such an obligation is owed, 
including the individual's social security number (or numbers), 
most recent address, and the name, address, and employer 
identification number of the individual's employer; 
"(2) information on the individusd's wages (or other income) 
from, and benefits of, employment (including rights to or enroll-
ment in group health csire coverage); and 
"(3) information on the type, status, location, and amount 
of any assets of, or debts owed by or to, any such indi-
vidual."; and 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), by striking 
"social security" and ail that follows through "absent par-
ent" and inserting "information described in subsection 
(a)"; and 
(B) in the flush paragraph at the end, by adding the 
following: "No information shall be disclosed to any person 
if the State has notified the Secretary that the State has 
reasonable evidence of domestic violence or child abuse 
and the disclosure of such information could be harmfiil 
to the custodial parent or the child of such parent. Informa-
tion received or transmitted pursuant to this section shall 
be subject to the safeguard provisions contained in section 
454(26).". 
(b) 
AUTHORIZED 
PERSON 
FOR 
INFORMATION 
REGARDING 
VISITATION RIGHTS.—Section 453(c) (42 U.S.C. 653(c)) is amended— 
(1) in paragraph (1), by striking "support" and inserting 
"support or to seek to enforce orders providing child custody 
or visitation rights"; and 
(2) in pgiragraph (2), by striking ", or any agent of such 
court; and" and inserting "or to issue an order against a resident 
parent for child custody or visitation rights, or any agent of 
such court;". 
(c) 
REIMBURSEMENT 
FOR 
INFORMATION 
FROM 
FEDERAL 
AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in 
the 4th sentence by inserting "in an amount which the Secretary 
determines to be reasonable payment for the information exchange 
(which amount shall not include payment for the costs of obtaining, 
compiling, or msdntaining the information)" before the period. 
(d) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—Section 
453 (42 U.S.C. 653) is amended by adding at the end the following 
new subsection: 
"(g) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—The 
Secretary may reimburse Federal and State agencies for the costs 
. 
incurred by such entities in furnishing information requested by 
the Secretary under this section in an amount which the Secretary 
determines to be reasonable pajmaent for the information exchange 
(which amount shall not include pajnnent for the costs of obtaining, 
compiling, or maintaining the information).". 
(e) CONFORMING AMENDMENTS.— 
110 STAT. 2216 
PUBLIC LAW 104-193—AUG. 22, 1996 
(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and 
663(f)) are each amended by inserting "Federal" before "Parent" 
each place such term appears. 
(2) Section 453 (42 U.S.C. 653) is amended in the heading 
by adding "FEDERAL" before "PARENT". 
(f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653), as 
amended by subsection (d) of this section, is amended by adding 
at the end the following new subsections: 
Establishment. 
"(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.— 
"(1) IN GENERAL.—Not later than October 1, 1998, in order 
to assist States in administering programs under State plans 
approved under this part and programs funded under part 
A, and for the other purposes specified in this section, the 
Secretary shall establish and maintain in the Federal Parent 
Locator Service an automated registry (which shall be known 
as the 'Federal Case Registry of Child Support Orders'), which 
shall contain abstracts of support orders and other information 
described in paragraph (2) with respect to each case in each 
State case registry maintained pursuant to section 454A(e), 
as furnished (and regularly updated), pursuant to section 
454A(f), by State agencies administering programs under this 
part. 
"(2) CASE INFORMATION.—The information referred to in 
paragraph (1) with respect to a case shall be such information 
as the Secretary may specify in regulations (including the 
names, social security numbers or other uniform identification 
numbers, and State case identification numbers) to identify 
the individuals who owe or are owed support (or with respect 
to or on behalf of whom support obligations are sought to 
be established), and the State or States which have the case. 
Establishment. 
"(i) NATIONAL DIRECTORY OF N E W H I R E S . — 
"(1) IN GENERAL.—In order to assist States in administering 
programs imder State plans approved under this part and 
programs funded imder part A, and for the other purposes 
specified in this section, the Secretary shall, not later than 
October 1, 1997, establish and maintedn in the Federal Parent 
Locator Service an automated directory to be known as the 
National Directory of New Hires, which shall contain the 
information supplied pursuant to section 453A(g)(2). 
"(2) ENTRY OF DATA.—Information shall be entered into 
the data base maintained by the National Directory of New 
Hires within 2 business days of receipt pursuant to section 
453A(g)(2). 
"(3) ADMINISTRATION OF FEDERAL TAX LAWS.—The Secretary 
of the Treasury shall have access to the information in the 
National Directory of New Hires for purposes of administering 
section 32 of the Internal Revenue Code of 1986, or the advance 
pa3rment of the earned income tax credit under section 3507 
of such Code, and verif5dng a claim with respect to employment 
in a tax return. 
"(4) LIST OF MULTISTATE EMPLOYERS.—The Secretary shall 
maintain within the National Directory of New Hires a list 
of multistate employers that report information regarding 
newly hired employees pursuant to section 453A(b)(l)(B), and 
the State which each such employer has designated to receive 
such information. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2217 
"(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES.— 
"(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION.— 
"(A) IN GENERAL.—The Secretary 
shall 
transmit 
information on individuals and employers maintained 
under this section to the Social Security Administration 
to the extent necessary for verification in accordance with 
subparagraph (B). 
"(B) 
VERIFICATION 
BY SSA.—The 
Social 
Security 
Administration shall verify the accuracy of, correct, or sup-
ply to the extent possible, and report to the Secretary, 
the following information supplied by the Secretary pursu-
ant to subparagraph (A): 
"(i) The name, social security number, and birth 
date of each such individual. 
"(ii) The employer identification number of each 
such employer. 
"(2) INFORMATION COMPARISONS.—For the purpose of locat-
ing individuals in a paternity establishment case or a case 
involving the establishment, modification, or enforcement of 
a support order, the Secretary shall— 
"(A) compare information in the National Directory 
of New Hires against information in the support case 
abstracts in the Federal Case Registry of Child Support 
Orders not less often than every 2 business days; and 
"(B) within 2 business days after such a comparison Reports, 
reveals a match with respect to an individual, report the 
information to the State agency responsible for the case. 
"(3) 
INFORMATION COMPARISONS AND DISCLOSURES OF 
INFORMATION IN ALL REGISTRIES FOR TITLE IV PROGRAM PUR-
POSES.—To the extent and with the fi-equency that the Sec-
retary determines to be effective in assisting States to carry 
out their responsibilities under programs operated under this 
part and programs funded under part A, the Secretary shall— 
"(A) compare the information in each component of Reports, 
the Federal Psirent Locator Service maintained under this 
section against the information in each other such compo-
nent (other than the comparison required by paragraph 
(2)), and report instances in which such a comparison 
reveals a match with respect to an individual to State 
agencies operating such programs; and 
"(B) disclose information in such registries to such 
State agencies. 
"(4) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL 
SECURITY ADMINISTRATION.—The National Directory of New 
Hires shall provide the Commissioner of Social Security with 
all information in the Nationsd Directory. 
"(5) RESEARCH.—The Secretary may provide access to 
information reported by employers pursuant to section 453A(b) 
for research purposes found by the Secretary to be likely to 
contribute to achieving the purposes of part A or this part, 
but without personal identifiers, 
"(k) FEES.— 
"(1) FOR SSA VERIFICATION.—The Secretary shall reimburse 
the Commissioner of Social Security, at a rate negotiated 
between the Secretary and the Commissioner, for the costs 
incurred by the Commissioner in performing the verification 
services described in subsection (j). 
110 STAT. 2218 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(2) FOR INFORMATION FROM STATE DIRECTORIES OF NEW 
HIRES.—The Secretary shall reimburse costs incurred by State 
directories of new hires in furnishing information as required 
by subsection (j)(3), at rates which the Secretary determines 
to be reasonable (which rates shall not include payment for 
the costs of obtaining, compiling, or maintaining such informa-
tion). 
"(3) FOR INFORMATION FURNISHED TO STATE AND FEDERAL 
AGENCIES.—^A State or Federal agency that receives information 
from the Secretary pursuant to this section shall reimburse 
the Secretary for costs incurred by the Secretary in furnishing 
the information, at rates which the Secretary determines to 
be reasonable (which rates shall include payment for the costs 
of obtaining, verifying, 
maintaining, £ind comparing the 
information). 
"(1) RESTRICTION ON DISCLOSURE AND USE.—Information in the 
Federal Parent Locator Service, and information resulting from 
comparisons using such information, shall not be used or disclosed 
except as expressly provided in this section, subject to section 
6103 of the Internal Revenue Code of 1986. 
"(m) INFORMATION INTEGRITY AND SECURITY.—The Secretary 
shall establish and implement safeguards with respect to the enti-
ties established under this section designed to— 
"(1) ensure the accuracy and completeness of information 
in the Federal Parent Locator Service; and 
"(2) restrict access to confidential information in the 
Federal Parent Locator Service to authorized persons, and 
restrict use of such information to authorized purposes, 
"(n) FEDERAL GOVERNMENT REPORTING.—Each department, 
agency, and instrumentality of the United States shall on a quar-
terly basis report to the Federal Parent Locator Service the name 
and social security number of each employee and the wages paid 
to the employee during the previous quarter, except that such 
a report shall not be filed with respect to an employee of a depart-
ment, agency, or instrumentality performing intelligence or counter-
intelligence functions, if the head of such department, agency, or 
instrumentality has determined that filing such a report could 
endanger the safety of the employee or compromise an ongoing 
investigation or intelligence mission.", 
(g) CONFORMING AMENDMENTS.— 
(1) To PART D OF TITLE IV OF THE SOCLU. SECURITY ACT.— 
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended 
to read as follows: 
"(B) the Federal Parent Locator Service established 
under section 453;". 
(B) Section 454(13) (42 U.S.C.654(13)) is amended by 
inserting "and provide that information requests by parents 
who are residents of other States be treated with the same 
priority as requests by parents who are residents of the 
State submitting the plan" before the semicolon. 
(2) 
To 
FEDERAL 
UNEMPLOYMENT 
TAX ACT.—Section 
3304(a)(16) of the Internal Revenue Code of 1986 is amended— 
(A) by striking "Secretary of Health, Education, and 
Welfare" each place such term appears and inserting "Sec-
retary of Health and Human Services"; 
(B) in subparagraph (B), by striking "such information" 
and all that follows and inserting "information furnished 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2219 
under subparagraph (A) or (B) is used only for the purposes 
authorized under such subparagraph;"; 
(C) by striking "and" at the end of subparagraph (A); 
(D) by redesignating subparagraph (B) as subpara-
graph (C); £ind 
(E) by inserting after subparagraph (A) the following 
new subparagraph: 
"(B) wage and unemplo3anent compensation information 
Regulations. 
contained in the records of such agency shall be furnished 
to the Secretary of Health and Human Services (in accordance 
with regulations promulgated by such Secretary) as necessary 
for the purposes of the National Directory of New Hires estab-
lished under section 453(i) of the Social Security Act, and". 
(3) To STATE GRANT PROGRAM UNDER TITLE III OF THE 
SOCIAL SECURITY ACT.—Subsection (h) of section 303 (42 U.S.C. 
503) is amended to read as follows: 
"(h)(1) The State agency charged with the administration of 
the State law shall, on a reimbursable basis— 
"(A) disclose quarterly, to the Secretary of Health and 
Human Services, wage and claim information, as required 
pursuEmt to section 453(i)(l), contained in the records of such 
agency; 
"(B) ensure that information provided pursuant to subpara-
graph (A) meets such standards relating to correctness and 
verification as the Secretary of Health and Human Services, 
with the concurrence of the Secretary of Labor, may find nec-
essary; and 
"(C) establish such safeguards as the Secretary of Labor 
determines are necessary to insure that information disclosed 
under subparagraph (A) is used only for purposes of section 
453(i)(l) in carrying out the child support enforcement program 
under title IV. 
"(2) Whenever the Secretary of Labor, after reasonable notice Notification. 
and opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to 
comply substantially with the requirements of paragraph (1), the 
Secretary of Labor shall notify such State agency that further 
payments will not be made to the State until the Secretary of 
Labor is satisfied that there is no longer any such failure. Until 
the Secretary of Labor is so satisfied, the Secretary shall make 
no future certification to the Secretary of the Treasury with respect 
to the State. 
"(3) For purposes of this subsection— 
"(A) the term Svage information' means information regard-
ing wages paid to an individual, the social security account 
number of such individual, and the name, address. State, and 
the Federal employer identification number of the employer 
paying such wages to such individual; and 
"(B) the term 'claim information' means information regard-
ing whether an individual is receiving, has received, or has 
made application for, imemplo5nnent compensation, the amount 
of any such compensation being received (or to be received 
by such individual), and the individual's current (or most 
recent) home address.". 
(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF 
CHILD SUPPORT ENFORCEMENT AGENCIES.— 
110 STAT. 2220 
PUBLIC LAW 104-193—AUG. 22, 1996 
(A) IN GENERAL.—Paragraph (6) of section 6103(1) of 
the Internal Revenue Code of 1986 (relating to disclosure 
of return information to Federal, State, and local child 
support enforcement agencies) is amended by redesignating 
subparagraph (B) as subparagraph (C) and by inserting 
after subparagraph (A) the following new subparagraph: 
"(B) DISCLOSURE TO CERTAIN AGENTS.—The following 
information disclosed to any child support enforcement 
agency under subparagraph (A) with respect to any individ-
ual with respect to whom child support obligations are 
sought to be established or enforced may be disclosed by 
such agency to any agent of such agency which is under 
contract with such agency to carry out the purposes 
described in subparagraph (C): 
"(i) The address and social security account num-
ber (or numbers) of such individual. 
"(ii) The amount of any reduction under section 
6402(c) (relating to offset of past-due support against 
overpa3mients) in any overpayment otherwise payable 
to such individual.". 
(B) CONFORMING AMENDMENTS.— 
(i) Paragraph (3) of section 6103(a) of such Code 
is amended by striking "(1)(12)" and inserting "para-
graph (6) or (12) of subsection (1)". 
(ii) Subparagraph (C) of section 6103(1)(6) of such 
Code, as redesignated by subsection (a), is amended 
to read as follows: 
"(C) RESTRICTION ON DISCLOSURE.—Information 
may 
be disclosed under this paragraph only for purposes of, 
and to the extent necessary in, establishing £ind collecting 
child support obligations from, and locating, individuals 
owing such obligations.". 
(iii) The material following subparagraph (F) of 
section 6103(p)(4) of such Code is amended by striking 
"subsection (1)(12)(B)" and inserting "paragraph (6)(A) 
or (12)(B) of subsection (1)". 
42 use 653 note. 
(h) REQUIREMENT FOR COOPERATION.—The Secretary of Labor 
and the Secretary of Health and Human Services shall work jointly 
to develop cost-effective and efficient methods of accessing the 
information in the various State directories of new hires and the 
National Directory of New Hires as established pursuant to the 
amendments made by this subtitle. In developing these methods 
the Secretaries shall take into account the impact, including costs, 
on the States, and shall also consider the need to insure the proper 
and authorized use of wage record information. 
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR 
USE IN CHILD SUPPORT ENFORCEMENT. 
Section 466(a) (42 U.S.C. 666(a)), as amended by section 315 
of this Act, is amended by inserting after paragraph (12) the follow-
ing new paragraph: 
"(13) RECORDING OF SOCIAL SECURITY NUMBERS IN CERTAIN 
FAMILY MATTERS.—Procedures requiring that the social security 
number of— 
"(A) any applicant for a professional license, commer-
cial driver's license, occupational license, or marriage 
license be recorded oh the application; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2221 
"(B) any individual who is subject to a divorce decree, 
support order, or paternity determination or acknowledg-
ment be placed in the records relating to the matter; and 
"(C) any individual who has died be placed in the 
records relating to the death and be recorded on the death 
certificate. 
For purposes of subparagraph (A), if a State allows the use 
of a number other than tne social security number, the State 
shall so advise any applicants.". 
Subtitle C—Streamlining and Uniformity 
of Procedures 
SEC. 321. ADOPTION OF UNIFORM STATE LAWS. 
Section 466 (42 U.S.C. 666) is amended by adding at the end 
the following new subsection: 
"(f) UNIFORM INTERSTATE FAMILY SUPPORT ACT.—In order to 
satisfy section 454(20)(A), on and after January 1, 1998, each State 
must have in effect the Uniform Interstate Family Support Act, 
as approved by the American Bar Association on Feoruary 9, 1993, 
together with any amendments officially adopted before January 
1, 1998 by the National Conference of Commissioners on Uniform 
State Laws.". 
SEC. 
322. 
IMPROVEMENTS TO 
FULL 
FAITH 
AND CREDIT 
FOR CHILD 
SUPPORT 
ORDERS. 
Section 1738B of title 28, United States Code, is amended— 
(1) in subsection (a)(2), by striking "subsection (e)" and 
inserting "subsections (e), (f), and (i)"; 
(2) in subsection (b), by inserting after the 2nd undesig-
nated paragraph the following: 
"'child s home State' means the State in which a child lived 
with a parent or a person acting as parent for at least 6 consecutive 
months immediately preceding the time of filing of a petition or 
comparable pleading for support and, if a child is less than 6 
months old, the State in which the child lived fi*om birth with 
any of them. A period of temporary absence of any of them is 
counted as part of the 6-month period."; 
(3) in subsection (c), by inserting "by a court of a State" 
before "is made"; 
(4) in subsection (c)(1), by inserting "and subsections (e), 
(f), and (g)" after "located"; 
(5) in subsection (d)— 
(A) by inserting "individual" before "contestant"; and 
(B) by striking "subsection (e)" and inserting "sub-
sections (e) and (f)"; 
(6) in subsection (e), by striking "make a modification of 
a child support order with respect to a child that is made" 
and inserting "modify a child support order issued"; 
(7) in subsection (e)(1), by inserting "pursuant to subsection 
(i)" before the semicolon; 
(8) in subsection (e)(2)— 
(A) by inserting "individual" before "contestant" each 
place such term appears; and 
(B) by striking "to that court's making the modification 
£ind assimiing" and inserting "with the State of continuing. 
110 STAT. 2222 
PUBLIC LAW 104-193—AUG. 22, 1996 
exclusive jurisdiction for a court of £inother State to modify 
the order and assume"; 
(9) by redesignating subsections (f) and (g) as subsections 
(g) and (h), respectively; 
(10) by inserting after subsection (e) the following new 
subsection: 
Courts. 
"(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If 1 or more 
child support orders have been issued with regard to an obligor 
and a child, a court shall apply the following rules in determining 
which order to recognize for purposes of continuing, exclusive juris-
diction and enforcement: 
"(1) If only 1 court has issued a child support order, the 
order of that court must be recognized. 
"(2) If 2 or more courts have issued child support orders 
for the same obligor and child, and only 1 of the courts would 
have continuing, exclusive jurisdiction under this section, the 
order of that court must be recognized. 
"(3) If 2 or more courts have issued child support orders 
for the same obligor and child, and more than 1 of the courts 
would have continuing, exclusive jurisdiction under this section, 
an order issued by a court in the current home State of the 
child must be recognized, but if an order has not been issued 
in the current home State of the child, the order most recently 
issued must be recognized. 
"(4) If 2 or more courts have issued child support orders 
for the same obligor and child, and none of the courts would 
have continuing, exclusive jurisdiction under this section, a 
court may issue a child support order, which must be recog-
nized. 
"(5) The court that has issued an order recognized under 
this subsection is the court having continuing, exclusive juris-
diction."; 
(11) in subsection (g) (as so redesignated)— 
(A) by striking "PRIOR" and inserting "MODIFIED"; and 
(B) by striking "subsection (e)" and inserting "sub-
sections (e) and (f)"; 
(12) in subsection (h) (as so redesignated)— 
(A) in paragraph (2), by inserting "including the dura-
tion of current payments and other obligations of support" 
before the comma; and 
(B) in paragraph (3), by inserting "arrears under" after 
"enforce"; and 
(13) by adding at the end the following new subsection: 
"(i) REGISTRATION FOR MODIFICATION.—If there is no individual 
contestant or child residing in the issuing State, the party or 
support enforcement agency seeking to modify, or to modify and 
enforce, a child support order issued in another State shall register 
that order in a State with jurisdiction over the nonmovant for 
the purpose of modification.". 
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES. 
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315 
and 317 of this Act, is amended by inserting after paragraph (13) 
the following new paragraph: 
"(14) 
ADMINISTRATIVE 
ENFORCEMENT 
IN 
INTERSTATE 
CASES.—Procedures under which— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2223 
"(A)(i) the State shall respond within 5 business days 
to a request made by another State to enforce a support 
order; and 
"(ii) the term Tausiness day^ means a day on which 
State offices are open for regular business; 
"(B) the State may, by electronic or other means, trans-
mit to another State a request for assistance in a case 
involving the enforcement of a support order, which 
request— 
"(i) shall include such information as will enable 
the State to which the request is transmitted to com-
pare the information about the case to the information 
in the data bases of the State; and 
"(ii) shall constitute a certification by the re-
questing State— 
"(I) of the amount of support under the order 
the payment of which is in arrears; and 
"(II) that the requesting State has complied 
with all procedural due process requirements 
applicable to the case; 
"(C) if the State provides assistance to smother State 
pursuant to this paragraph with respect to a case, neither 
State shall consider the case to be transferred to the case-
load of such other State; and 
"(D) the State shall maintain records of— 
Records. 
"(i) the number of such requests for assistance 
received by the State; 
"(ii) the number of cases for which the State col-
lected support in response to such a request; and 
"(iii) the amount of such collected support.". 
SEC. 324. USE OF FOKMS IN INTERSTATE ENFORCEMENT. 
(a) PROMULGATION.—Section 452(a) (42 U.S.C. 652(a)) is 
Eimended— 
(1) by striking "and" at the end of paragraph (9); 
(2) by striking the period at the end of paragraph (10) 
(as amended by section 346(a) of this Act) and inserting "; 
and"; and 
(3) by adding at the end the following new paragraph: 
"(11) not later than October 1, 1996, after consulting with 
the State directors of programs under this part, promulgate 
forms to be used by States in interstate cases for— 
"(A) collection of child support through 
income 
withholding; 
"(B) imposition of liens; and 
"(C) administrative subpoenas.". 
(b) USE BY STATES.—Section 454(9) (42 U.S.C. 654(9)) is 
amended— 
(1) by striking "and" at the end of subparagraph (C); 
(2) by inserting "and" at the end of subparagraph 
(D); and 
(3) by adding at the end the following new subparagraph: 
"(E) not later than March 1, 1997, in using the forms 
promulgated pursuant to section 452(a)(ll) for income 
withholding, imposition of liens, and issuance of adminis-
trative subpoenas in interstate child support cases;". 
110 STAT. 2224 
PUBLIC LAW 104-193—AUG. 22, 1996 
SEC. 325. STATE LAWS PROVTOING EXPEDITED PROCEDURES. 
(a) STATE LAW REQUIREMENTS.—Section 466 (42 U.S.C. 666), 
as amended by section 314 of this Act, is amended— 
(1) in subsection (a)(2), by striking the first sentence £ind 
inserting the following: "Expedited administrative and judicial 
procedures (including the procedures specified in subsection 
(c)) for establishing paternity and for establishing, modifying, 
and enforcing support obligations."; and 
(2) by inserting after subsection (b) the following new sub-
section: 
"(c) EXPEDITED PROCEDURES.—The procedures specified in this 
subsection are the following: 
"(1) ADMINISTRATIVE ACTION BY STATE AGENCY.—Procedures 
which give the State agency the authority to take the following 
actions relating to establishment of paternity or to establish-
ment, modification, or enforcement of support orders, without 
the necessity of obtaining an order from any other judicial 
or administrative tribunal, and to recognize and enforce the 
authority of State agencies of other States to take the following 
actions: 
"(A) GENETIC TESTING.—To order genetic testing for 
the purpose of paternity establishment as provided in sec-
tion 466(a)(5). 
"(B) FINANCIAL OR OTHER INFORMATION.—To subpoena 
any financial or other information needed to establish, 
modify, or enforce a support order, and to impose penalties 
for failure to respond to such a subpoena. 
"(C) RESPONSE TO STATE AGENCY REQUEST.—TO require 
all entities in the State (including for-profit, nonprofit, 
and governmental employers) to provide promptly, in 
response to a request by the State agency of that or any 
other State administering a program under this part, 
information on the employment, compensation, and benefits 
of any individual employed by such entity as an employee 
or contractor, and to sanction failure to respond to any 
such request. 
"(D) ACCESS TO INFORMATION CONTAINED IN CERTAIN 
RECORDS.—To obtain access, subject to safeguards on pri-
vacy and information security, and subject to the nonliabil-
ity of entities that afford such access under this subpara-
graph, to information contained in the following records 
(including automated access, in the case of records main-
tained in automated data bases): 
"(i) Records of other State and local government 
agencies, including— 
"(I) vital statistics (including records of mar-
riage, birth, and divorce); 
"(II) State and local tax and revenue records 
(including 
information 
on 
residence 
address, 
employer, income and assets); 
"(III) records concerning real and titled per-
sonal property; 
"(IV) records of occupational and professional 
licenses, and records concerning the ownership and 
control of corporations, partnerships, and other 
business entities; 
"(V) employment security records; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2225 
"(VI) records of agencies administering public 
assistance programs; 
"(VII) records of the motor vehicle depart-
ment; and 
"(VIII) corrections records, 
"(ii) Certain records held by private entities with 
respect to individuals who owe or are owed support 
(or against or with respect to whom a support obliga-
tion is sought), consisting of— 
"(I) the names and addresses of such indi-
viduals and the names and addresses of the 
employers of such individuals, as appearing in cus-
tomer records of public utilities and cable tele-
vision companies, pursuant to an administrative 
subpoena authorized by subparagraph (B); and 
"(II) information (including information on 
assets and liabilities) on such individuals held by 
financial institutions. 
"(E) CHANGE IN PAYEE.—In cases in which support 
is subject to an assignment in order to comply with a 
requirement imposed pursuant to part A or section 1912, 
or to a requirement to pay through the State disbursement 
imit established pursuant to section 454B, upon providing 
notice to obligor and obligee, to direct the obligor or other 
payor to change the payee to the appropriate government 
entity. 
"(F) INCOME WITHHOLDING.—TO order income withhold-
ing in accordance with subsections (a)(1)(A) and (b) of sec-
tion 466. 
"(G) SECURING ASSETS.—In cases in which there is 
a support £irrearage, to secure assets to satisfy the arrear-
age by— 
"(i) intercepting or seizing periodic or lump-sum 
payments from— 
"(I) 
a 
State 
or 
local 
agency, 
including 
unemplojrment compensation, workers' compensa-
tion, and other benefits; and 
"(II) judgments, settlements, and lotteries; 
"(ii) attaching and seizing assets of the obligor 
held in financial institutions; 
"(iii) attaching public and private retirement 
funds; and 
"(iv) imposing liens in accordance with subsection 
(a)(4) and, in appropriate cases, to force sale of property 
and distribution of proceeds. 
"(H) INCREASE MONTHLY PAYMENTS.—For the purpose 
of securing overdue support, to increase the amount of 
monthly support payments to include Eimounts for arrear-
ages, subject to such conditions or limitations as the State 
may provide. 
Such procedures shall be subject to due process safeguards, 
including (as appropriate) requirements for notice, opportimity 
to contest the action, and opportunity for an appeal on the 
record to an independent administrative or judicial tribunal. 
"(2) SUBSTANTIVE AND PROCEDURAL RULES.—The expedited 
procedures required under subsection (a)(2) shall include the 
following rules and authority, applicable with respect to all 
110 STAT. 2226 
PUBLIC LAW 104-193—AUG. 22, 1996 
proceedings to establish paternity or to establish, modify, or 
enforce support orders: 
"(A) 
LOCATOR 
INFORMATION; 
PRESUMPTIONS 
CON-
CERNING NOTICE.—Procedures under which— 
"(i) each party to any paternity or child support 
proceeding is required (subject to privacy safeguards) 
to file with the tribunal and the State case registry 
upon entry of an order, and to update as appropriate, 
information on location and identity of the party, 
including Social Security number, residential and mail-
ing addresses, telephone number, driver's license num-
ber, and name, address, and telephone number of 
employer; and 
"(ii) in any subsequent child support enforcement 
action between the parties, upon sufficient showing 
that diligent effort has been made to ascertain the 
location of such a party, the tribunal may deem State 
due process requirements for notice and service of proc-
ess to be met with respect to the party, upon delivery 
of written notice to the most recent residential or 
employer address filed with the tribunal pursuant to 
clause (i). 
"(B) 
STATEWIDE 
JURISDICTION.—Procedures 
under 
which— 
"(i) the State agency and any administrative or 
judicial tribunal with authority to hear child support 
and paternity cases exerts statewide jurisdiction over 
the parties; and 
"(ii) in a State in which orders are issued by courts 
or administrative tribunals, a case may be transferred 
between local jurisdictions in the State without need 
for any additional filing by the petitioner, or service 
of process upon the respondent, to retain jurisdiction 
over the parties. 
"(3) COORDINATION WITH ERISA.—Notwithstanding sub-
section (d) of section 514 of the Employee Retirement Income 
Security Act of 1974 (relating to effect on other laws), nothing 
in this subsection shall be construed to alter, amend, modify, 
invalidate, impair, or supersede subsections (a), (b), and (c) 
of such section 514 as it applies with respect to any procedure 
referred to in paragraph (1) and any expedited procedure 
referred to in paragraph (2), except to the extent that such 
procedure would be consistent with the requirements of section 
206(d)(3) of such Act (relating to qualified domestic relations 
orders) or the requirements of section 609(a) of such Act (relat-
ing to qualified medical child support orders) if the reference 
in such section 206(d)(3) to a domestic relations order and 
the reference in such section 609(a) to a medical child support 
order were a reference to a support order referred to in para-
graphs (1) and (2) relating to the same matters, respectively.", 
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—Section 454A, 
as added by section 344(a)(2) and as amended by sections 311 
and 312(c) of this Act, is amended by adding at the end the following 
new subsection: 
"(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—The automated 
system required by this section shall be used, to the maximum 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2227 
extent feasible, to implement the expedited administrative proce-
dures required by section 466(c).". 
Subtitle D—Paternity Establishment 
SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT. 
(a) 
STATE 
LAWS REQUIRED.—Section 466(a)(5) (42 U.S.C. 
666(a)(5)) is amended to read as follows: 
"(5) 
PROCEDURES 
CONCERNING 
PATERNITY 
ESTAB-
LISHMENT.— 
"(A) ESTABLISHMENT PROCESS AVAILABLE PROM BIRTH 
UNTIL AGE 18.— 
"(i) Procedures which permit the establishment of 
the paternity of a child at any time before the child 
attains 18 years of age. 
"(ii) As of August 16, 1984, clause (i) shall also 
apply to a child for whom paternity has not been 
established or for whom a paternity action was brought 
but dismissed because a statute of limitations of less 
than 18 years was then in effect in the State. 
"(B) PROCEDURES CONCERNING GENETIC TESTING.— 
"(i) GENETIC TESTING REQUIRED IN CERTAIN CON-
TESTED CASES.—Procedures under which the State is 
required, in a contested paternity case (unless other-
wise barred by State law) to require the child eind 
all other parties (other than individuals found under 
section 454(29) to have good cause and other exceptions 
for refusing to cooperate) to submit to genetic tests 
upon the request of any such party, if the request 
is supported by a sworn statement by the party— 
"(I) alleging paternity, and setting forth facts 
establishing a reasonable possibility of the req-
uisite sexual contact between the parties; or 
"(II) denying paternity, and setting forth facts 
establishing a reasonable possibility of the non-
existence of sexual contact between the parties. 
"(ii) 
OTHER 
REQUIREMENTS.—Procedures 
which 
require the State agency, in any case in which the 
agency orders genetic testing— 
"(I) to pay costs of such tests, subject to 
recoupment (if the State so elects) from the alleged 
father if paternity is established; and 
"(II) to obtain additional testing in any case 
if an original test result is contested, upon request 
£ind advance payment by the contestant. 
"(C) VOLUNTARY PATERNITY ACKNOWLEDGMENT.— 
"(i) SIMPLE CIVIL PROCESS.—Procedures for a sim-
ple civil process for voluntarily acknowledging pater-
nity under which the State must provide that, before 
a mother and a putative father can sign an acknowledg-
ment of paternity, the mother £ind the putative father 
must be given notice, orally £md in writing, of the 
alternatives to, the legal consequences of, and the 
rights (including, if 1 parent is a minor, any rights 
afforded due to minority status) and responsibilities 
that arise from, signing the acknowledgment. 
110 STAT. 2228 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(ii) HOSPITAL-BASED PROGRAM.—Such procedures 
must include a hospital-based program for the vol-
untary acknowledgment of paternity focusing on the 
period immediately before or after the birth of a child, 
"(iii) PATERNITY ESTABLISHMENT SERVICES.— 
"(I) STATE-OFFERED SERVICES.—Such proce-
dures must require the State agency responsible 
for maintaining birth records to offer voluntary 
paternity establishment services. 
"(II) REGULATIONS.— 
"(aa) SERVICES OFFERED BY HOSPITALS AND 
BIRTH RECORD AGENCIES.—The Secretary shall 
prescribe 
regulations 
governing 
voluntary 
paternity establishment services offered by 
hospitals and birth record agencies. 
"(bb) 
SERVICES 
OFFERED 
BY 
OTHER 
ENTITIES.—The Secretary shall prescribe regu-
lations specifying the types of other entities 
that may offer voluntary paternity establish-
ment services, and governing the provision of 
such services, which shall include a require-
ment that such an entity must use the same 
notice provisions used by, use the same mate-
rials used by, provide the personnel providing 
such services with the same training provided 
by, and evaluate the provision of such services 
in the same manner as the provision of such 
services is evaluated by, voluntary paternity 
establishment programs of hospitals and birth 
record agencies. 
"(iv) 
USE 
OF 
PATERNITY 
ACKNOWLEDGMENT 
AFFIDAVIT.—Such procedures must require the State 
to develop and use an affidavit for the volimtary 
acknowledgment of paternity which includes the mini-
mum requirements of the affidavit specified by the 
Secretary under section 452(aX7) for the voluntary 
acknowledgment of paternity, and to give fiill faith 
and credit to such an affidavit signed in any other 
State according to its procedures. 
"(D) 
STATUS 
OF 
SIGNED 
PATERNITY 
ACKNOW-
LEDGMENT.— 
"(i) 
INCLUSION IN BIRTH RECORDS.—Procedures 
under which the name of the father shall be included 
on the record of birth of the child of immarried parents 
only if— 
"(I) the father and mother have signed a vol-
untary acknowledgment of paternity; or 
"(II) a court or an administrative agency of 
competent jurisdiction has issued an adjudication 
of paternity. 
Nothing in this clause shall preclude a State agency 
from obtaining an admission of paternity from the 
father for submission in a judicial or administrative 
proceeding, or prohibit the issuance of an order in 
a judicial or administrative proceeding which bases 
a legal finding of paternity on an admission of paternity 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2229 
by the father and any other additional showing 
required by State law. 
"(ii) LEGAL FINDING OF PATERNITY.—Procedures 
under which a signed voluntary acknowledgment of 
paternity is considered a legal finding of paternity, 
subject to the right of any signatory to rescind the 
acknowledgment within the earlier of— 
"(I) 60 days; or 
"(II) the date of an administrative or judicial 
proceeding relating to the child (including a 
proceeding to establish a support order) in which 
the signatory is a party. 
"(iii) CONTEST.—Procedures under which, after the 
60-day period referred to in clause (ii), a signed vol-
untary acknowledgment of paternity may be challenged 
in court only on the basis of fraud, duress, or material 
mistake of fact, with the burden of proof upon the 
challenger, and under which the legal responsibilities 
(including child support obligations) of any signatory 
arising from the acknowledgment may not be sus-
pended during the challenge, except for good cause 
shown. 
"(E) 
BAR ON ACKNOWLEDGMENT RATIFICATION 
PRO-
CEEDINGS.—Procedures under which judicial or administra-
tive proceedings are not required or permitted to ratify 
an unchallenged acknowledgment of paternity. 
"(F) 
ADMISSIBILITY OF GENETIC TESTING RESULTS.— 
Procedures— 
"(i) requiring the admission into evidence, for pur-
poses of establishing paternity, of the results of any 
genetic test that is— 
"(I) of a type generally acknowledged as reli-
able by accreditation bodies designated by the Sec-
retary; and 
"(II) performed by a laboratory approved by 
such an accreditation body; 
"(ii) requiring an objection to genetic testing 
results to be made in writing not later than a specified 
number of days before any hearing at which the results 
may be introduced into evidence (or, at State option, 
not later than a specified number of days after receipt 
of the results); and 
"(iii) making the test results admissible as evi-
dence of paternity without the need for foundation 
testimony or other proof of authenticity or accuracy, 
unless objection is made. 
"(G) PRESUMPTION OF PATERNITY IN CERTAIN CASES.— 
Procedures which create a rebuttable or, at the option 
of the State, conclusive presumption of paternity upon 
genetic testing results indicating a threshold probability 
that the alleged father is the father of the child. 
"(H) DEFAULT ORDERS.—Procedures requiring a default 
order to be entered in a paternity case upon a showing 
of service of process on the defendant and any additional 
showing required by State law. 
110 STAT. 2230 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(I) No RIGHT TO JURY TRIAL.—Procedures providing 
that the parties to an action to estabUsh paternity are 
not entitled to a trial by jury. 
"(J) TEMPORARY SUPPORT ORDER BASED ON PROBABLE 
PATERNITY IN CONTESTED CASES.—Procedures which require 
that a temporary order be issued, upon motion by a party, 
requiring the provision of child support pending an 
administrative or judicial determination of parentage, if 
there is clear and convincing evidence of paternity (on 
the basis of genetic tests or other evidence). 
"(K) PROOF OF CERTAIN 
SUPPORT AND PATERNITY 
ESTABLISHMENT COSTS.—Procedures imder which bills for 
pregnancy, childbirth, and genetic testing are admissible 
as evidence without requiring third-party foundation testi-
mony, £ind shall constitute prima facie evidence of amounts 
incurred for such services or for testing on behalf of the 
child. 
"(L) 
STANDING OF PUTATIVE 
FATHERS.—Procedures 
ensuring that the putative father has a reasonable oppor-
tunity to initiate a paternity action. 
"(M) FILING OF ACKNOWLEDGMENTS AND ADJUDICATIONS 
IN STATE REGISTRY OF BIRTH RECORDS.—Procedures under 
which voluntary acknowled^ents and adjudications of 
paternity by judicial or admmistrative processes are filed 
with the State registry of birth records for comparison 
with information in the State case registry.". 
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDAVIT.—Sec-
tion 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ", and 
specify the minimum requirements of an affidavit to be used for 
tne voluntary acknowledgment of paternity which shall include 
the Social Security number of each parent and, after consultation 
with the States, other common elements as determined by such 
designee" before the semicolon. 
(c) CONFORMING AMENDMENT.—Section 468 (42 U.S.C. 668) is 
amended by striking "a simple civil process for voluntarily acknowl-
edging paternity and". 
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT. 
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting 
"and will publicize the availability and encourage the use of proce-
dures for voluntary establishment of paternity and child support 
by means the State deems appropriate" before the semicolon. 
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF 
PART A ASSISTANCE. 
Section 454 (42 U.S.C. 654), as amended by sections 301(b), 
303(a), 312(a), and 313(a) of this Act, is amended— 
(1) by striking "and" at the end of paragraph (27); 
(2) by striking the period at the end of paragraph (28) 
and inserting "; and"; and 
(3) by inserting after paragraph (28) the following new 
paragraph: 
"(29) provide that the State agency responsible for admin-
istering the State plan— 
"(A) shall meike the determination (and redetermina-
tion at appropriate intervals) as to whether an individual 
who has applied for or is receiving assistance under the 
State program funded under part A of this title or the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2231 
State program xinder title XIX is cooperating in good faith 
with the State in estabUshing the paternity of, or in 
estabUshing, modifying, or enforcing a support order for, 
any child of the individual by providing the State agency 
with the name of, and such other information as the State 
agency may require with respect to, the noncustodial parent 
of the child, subject to good cause and other exceptions 
which— 
"(i) shall be defined, teiking into account the best 
interests of the child, and 
"(ii) shall be applied in each case, 
by, at the option of the State, the State agency administer-
ing the State program under part A, this part, or title 
"(B) shall require the individual to supply additional 
necessary information and appear at interviews, hearings, 
and legal proceedings; 
"(C) shall require the individual and the child to submit 
to genetic tests pursuant to judicial or administrative order; 
"(D) may request that the individual sign a voluntary 
acknowledgment of paternity, after notice of the rights 
and consequences o
f
^ such an acknowledgment, but may 
not require the individual to sign an acknowledgment or 
otherwise relinquish the right to genetic tests as a condition 
of cooperation and eligibility for assistance under the State 
program funded under part A, or the State program under 
title XIX; and 
"(E) shall promptly notify the individual, the State 
Notification. 
agency administering the State program funded under part 
A, and the State agency administering the State program 
under title XIX, of each such determination, and if non-
cooperation is determined, the basis therefor.". 
Subtitle E—Program Administration and 
Funding 
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES. 
(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary of Health 
42 use 658 note. 
and Human Services, in consultation with State directors of pro-
f
rams under part D of title IV of the Social Security Act, shall 
evelop a new incentive system to replace, in a revenue neutral 
manner, the system under section 458 of such Act. The new system 
shall provide additional payments to any State based on such 
State's performance under such a program. Not later than March Reports. 
1, 1997, the Secretary shall report on the new system to the 
Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate. 
(b) CONFORMING AMENDMENTS TO PRESENT SYSTEM.—Section 
458 (42 U.S.C. 658) is amended— 
(1) in subsection (a), by striking "aid to families with 
dependent children under a State plan approved under part 
A of this title" £ind inserting "assistance under a program 
funded under part A"; 
(2) in subsection (b)(1)(A), by striking "section 402(a)(26)" 
and inserting "section 408(a)(4)"; 
(3) in subsections (b) and (c)— 
110 STAT. 2232 
PUBLIC LAW 104-193—AUG. 22, 1996 
(A) by striking "AFDC collections" each place it appears 
and inserting "title IV-A collections", and 
(B) by striking "non-AFDC collections" each place it 
appears and inserting "non-title IV-A collections"; and 
(4) in subsection (c), by striking "combined AFDC/non-
AFDC administrative costs" both places it appears and inserting 
"combined title IV-A'non-title IV-A administrative costs", 
(c) CALCULATION OF PATERNITY ESTABLISHMENT PERCENTAGE.— 
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended 
by striking "75" and inserting "90". 
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended— 
(A) by redesignating subparagraphs (B) through (E) 
as subparagraphs (C) through (F), respectively, and by 
inserting 
after 
subparagraph 
(A) the following 
new 
subparagraph: 
"(B) for a State with a paternity establishment percentage 
of not less than 75 percent but less than 90 percent for such 
fiscal year, the paternity establishment percentage of the State 
for the immediately preceding fiscal year plus 2 percentage 
points;"; and 
(B) by adding at the end the following new flush 
sentence: 
"In determining compliance imder this section, a State may use 
as its paternity establishment percentage either the State's FV-
D paternity establishment percentage (as defined in paragraph 
(2)(A)) or the State's statewide paternity establishment percentage 
(as defined in paragraph (2)(B)).'. 
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i)— 
(I) 
by 
striking 
"paternity 
establishment 
percentage" 
and 
inserting 
"IV-D 
paternity 
establislmient percentage"; £ind 
(II) by striking "(or all States, as the case 
may be)"; and 
(ii) by striking "and" at the end; and 
(B) by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after suoparagraph (A) the 
following new subparagraph: 
"(B) the term 'statewide paternity establishment percent-
age' means, with respect to a State for a fiscal year, the ratio 
(expressed as a percentage) that the total number of minor 
children— 
"(i) who have been bom out of wedlock, and 
"(ii) the paternity of whom has been established or 
/ 
acknowledged during the fiscal year, 
bears to the total number of children bom out of wedlock 
during the preceding fiscal year; and". 
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended— 
(A) by striking subparagraph (A) and redesignating 
subpgiragraphs (B) and (C) as subparagraphs (A) and (B), 
respectively; and 
(B) in subparagraph (A) (as so redesignated), by strik-
ing "the percentage of children bom out-of-wedlock in a 
State" and inserting "the percentage of children in a State 
who are bom out of wedlock or for whom support has 
not been established". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2233 
(d) EFFECTIVE DATES.— 
(1) INCENTIVE ADJUSTMENTS.— 
42 use 658 note. 
(A) IN GENERAL.—The system developed under sub-
section (a) and the amendments made by subsection (b) 
shall become effective on October 1, 1999, except to the 
extent provided in subparagraph (B). 
(B) APPLICATION OF SECTION 458.—Section 458 of the 
Social Security Act, as in effect on the day before the 
date of the enactment of this section, shall be effective 
for purposes of incentive payments to States for fiscal years 
before fiscal year 2000. 
(2) PENALTY REDUCTIONS.—The amendments made by sub- 42 use 652 note. 
section (c) shall become effective with respect to calendar quar-
ters beginning on or after the date of the enactment of 
this Act. 
SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS. 
(a) STATE AGENCY ACTIVITIES.—Section 454 (42 U.S.C. 654) 
is amended— 
(1) in paragraph (14), by striking "(14)" and inserting 
"(14)(A)"; 
(2) by redesignating paragraph (15) as subparagraph (B) 
of paragraph (14); and 
(3) by inserting after paragraph (14) the following new 
paragraph: 
"(15) provide for— 
"(A) a process for annual reviews of and reports to 
the Secretary on the State program operated under the 
State plan approved under this part, including such 
information as may be necessary to measure State compli-
ance with Federal requirements for expedited procedures, 
using such standards and procedures as are required by 
the Secretary, under which the State agency will determine 
the extent to which the program is operated in compliance 
with this part; and 
"(B) a process of extracting fi*om the automated data 
processing 
system 
required 
by paragraph 
(16) and 
transmitting to the Secretary data and csdculations 
concerning the levels of accomplishment (and rates of 
improvement) with respect to applicable 
performance 
indicators (including paternity establishment percentages) 
to the extent necessary for purposes of sections 452(g) 
and 458;". 
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42 U.S.C. 652(a)(4)) 
is amended to read as follows: 
"(4)(A) review data and calculations transmitted by State 
agencies pursuant to section 454(15)(B) on State progrsmi 
accomplishments with respect to performsince indicators for 
purposes of subsection (g) of this section and section 458; 
"(B) review annual reports submitted pursuant to section 
454(15)(A) and, as appropriate, provide to the State comments, 
recommendations for additional or alternative 
corrective 
actions, and technical assistance; and 
"(C) conduct audits, in accordeuice with the Government 
auditing standards of the Comptroller General of the United 
States— 
110 STAT. 2234 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(i) at least once every 3 years (or more frequently, 
in the case of a State which fails to meet the requirements 
of this part concerning performance standards and reliabil-
ity of program data) to assess the completeness, reliability, 
and security of the data and the accuracy of the reporting 
systems used in calculating performance indicators under 
subsection (g) of this section and section 458; 
"(ii) of the adequacy of financial management of the 
State program operated under the State plan approved 
under this part, including assessments of— 
"(I) whether Federal and other funds made avail-
able to carry out the State program are being appro-
priately 
expended, 
and 
are 
properly 
and fiiUy 
accounted for; and 
"(ID whether collections and disbursements of sup-
port payments are carried out correctly and are fully 
accounted for; and 
"(iii) for such other purposes as the Secretary may 
find necessary;". 
42 use 652 note. 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall be effective with respect to calendar quarters beginning 12 
months or more after the date of the enactment of this Act. 
SEC. 343. REQUIRED REPORTING PROCEDURES. 
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ", and establish procedures to be followed 
by States for collecting and reporting information required to be 
provided under this part, and establish uniform definitions (includ-
ing those necessary to enable the measurement of State compliance 
with the requirements of this part relating to expedited processes) 
to be applied in following such procedures" before the semicolon. 
(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654), 
as amended by sections 301(b), 303(a), 312(a), 313(a), and 333 
of this Act, is amended— 
(1) by striking "and" at the end of paragraph (28); 
(2) by striking the period at the end of paragraph (29) 
and inserting "; and"; and 
(3) by adding after paragraph (29) the following new para-
graph: 
"(30) provide that the State shall use the definitions estab-
lished under section 452(a)(5) in collecting and reporting 
information as required under this part.". 
SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS. 
(.a) REVISED REQUIREMENTS.— 
(1) IN GENERAL.—Section 454(16) (42 U.S.C. 654(16)) is 
amended— 
(A) by striking ", at the option of the State,"; 
(B) by inserting "and operation by the State agency" 
after "for the establishment"; 
(C) by inserting "meeting the requirements of section 
454A" after "information retrieval system"; 
(D) by striking "in the State and localities thereof, 
so as (A)" and inserting "so as"; 
(E) by striking "(i)"; and 
(F) by striking "(including" and £ill that follows and 
inserting a semicolon. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2235 
(2) AUTOMATED DATA PROCESSING.—Part D of title IV (42 
U.S.C. 651-669) is amended by inserting after section 454 
the following new section: 
"SEC.454A. AUTOMATED DATA PROCESSING. 
42USC654a. 
"(a) IN GENERAL.—In order for a State to meet the requirements 
of this section, the State agency administering the State program 
under this part shall have in operation a single statewide automated 
data processing and information retrieval system which has the 
capability to perform the tasks specified in this section with the 
frequency and in the manner required by or under this part. 
"(b) PROGRAM MANAGEMENT.—The automated system required 
by this section shall perform such functions as the Secretary may 
specify relating to management of the State program under this 
part, including— 
"(1) controlling and accounting for use of Federal, State, 
and local funds in carrying out the program; and 
"(2) maintaining the data necessary to meet Federal report-
ing requirements under this part on a timely basis. 
"(c) CALCULATION OF PERFORMANCE INDICATORS.—In order to 
enable the Secretary to determine the incentive payments and 
penalty adjustments required by sections 452(g) and 458, the State 
agency shall— 
"(1) use the automated system— 
"(A) to maintain the requisite data on State perform-
ance with respect to paternity establishment and child 
support enforcement in the State; and 
"(B) to calculate the paternity establishment percent-
age for the State for each fiscal year; and 
"(2) have in place systems controls to ensure the com-
pleteness and reliability of, and ready access to, the data 
described in paragraph (1)(A), and the accuracy of the calcula-
tions described in paragraph (1)(B). 
"(d) INFORMATION INTEGRITY AND SECURITY.—The State agency 
shall have in effect safeguards on the integrity, accuracy, and 
completeness of, access to, and use of data in the automated system 
required by this section, which shall include the following (in addi-
tion to such other safeguards as the Secretary may specify in 
regulations): 
"(1) 
POLICIES 
RESTRICTING 
ACCESS.—Written 
poHcies 
concerning access to data by State agency personnel, and shar-
' ing of data with other persons, which— 
"(A) permit access to and use of data only to the 
extent necessary to carry out the State program under 
this part; and 
"(B) specify the data which may be used for particular 
program purposes, and the personnel permitted access to 
such data. 
"(2) SYSTEMS CONTROLS.—Systems controls (such as pass-
words or blocking of fields) to ensure strict adherence to the 
policies described in paragraph (1). 
"(3) MONITORING OF ACCESS.—Routine monitoring of access 
to and use of the automated system, through methods such 
as audit trails and feedback mechanisms, to guard against 
and promptly identify unauthorized access or use. 
"(4) TRAINING AND INFORMATION.—Procedures to ensure 
that all personnel (including State and local agency staff and 
110 STAT. 2236 
PUBLIC LAW 104-193—AUG. 22, 1996 
contractors) who may have access to or be required to use 
confidential program data are informed of appUcable require-
ments and penalties (including those in section 6103 of the 
Internal Revenue Code of 1986), and are adequately trained 
in security procedures. 
"(5) PENALTIES.—^Administrative penalties (up to and 
including dismissal from employment) for unauthorized access 
to, or disclosure or use of, confidential data.". 
42 use 654a 
(3) REGULATIONS.—The Secretary of Health and Human 
"^ote. 
Services shall prescribe final regulations for implementation 
of section 454A of the Social Security Act not later than 2 
years after the date of the enactment of this Act. 
(4) 
IMPLEMENTATION 
TIMETABLE.—Section 
454(24) 
(42 
U.S.C. 654(24)), as amended by section 303(a)(1) of this Act, 
is amended to read as follows: 
"(24) provide that the State will have in effect an automated 
data processing and information retrieval system— 
"(A) by October 1, 1997, which meets all require-
ments of this part which were enacted on or before the 
date of enactment of the Family Support Act of 1988, 
and 
"(B) by October 1, 2000, which meets all require-
ments of this part enacted on or before the date of the 
enactment of the Personal Responsibility and Work Oppor-
tunity Act of 1996, except that such deadline shall be 
extended by 1 day for each day (if any) by which the 
Secretary fails to meet the deadline imposed by section 
344(a)(3) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996;". 
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVELOPMENT COSTS 
OF AUTOMATED SYSTEMS.— 
(1) IN GENERAL.—Section 455(a) (42 U.S.C. 655(a)) is 
amended— 
(A) in paragraph (1)(B)— 
(i) by striking "90 percent" and inserting "the per-
cent specified in paragraph (3)"; 
(ii) by striking "so much of; and 
(iii) by striking "which the Secretary" and all that 
follows and inserting ", and"; and 
(B) by adding at the end the following new paragraph: 
"(3)(A) The Secretary shall pay to each State, for each quarter 
in fiscal years 1996 and 1997, 90 percent of so much of the State 
expenditures described in peiragraph (1)(B) as the Secretary finds 
are for a system meeting the requirements specified in section 
454(16) (as in effect on September 30, 1995) but limited to the 
amount approved for States in the advance planning documents 
of such States submitted on or before September 30,1995. 
"(B)(i) The Secretary shall pay to each State, for each quarter 
in fiscal years 1996 through 2001, the percentage specified in clause 
(ii) of so much of the State expenditures described in paragraph 
(1)(B) as the Secretary finds are for a system meeting the require-
ments of sections 454(16) and 454A. 
"(ii) The percentage specified in this clause is 80 percent.". 
42 u s e 655 note. 
(2) TEMPORARY LIMITATION ON PAYMENTS UNDER SPECIAL 
FEDERAL MATCHING RATE.— 
(A) IN GENERAL.—The Secretary of Health and Human 
Services may not pay more than $400,000,000 in the aggre-
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2237 
gate under section 455(a)(3)(B) of the Social Security Act 
for fiscal years 1996 through 2001. 
(B) ALLOCATION OF LIMITATION AMONG STATES.—The 
total amount payable to a State under section 455(a)(3)(B) 
of such Act for fiscal years 1996 through 2001 shall not 
exceed the limitation determined for the State by the Sec-
retary of Health and Human Services in regulations. 
(C) ALLOCATION FORMULA.—The regulations referred 
to in subparagraph (B) shall prescribe a formula for allocat-
ing the amount specified in subparagraph (A) among States 
with plans approved under part D of title IV of the Social 
Security Act, which shall take into account— 
(i) the relative size of State caseloads under such 
part; and 
(ii) the level of automation needed to meet the 
automated data processing requirements of such part, 
(c) CONFORMING AMENDMENT.—Section 123(c) of the Family 
Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is 42USC655,655 
repealed. 
^o^. 
SEC. 345. TECHNICAL ASSISTANCE. 
(a) FOR TRAINING OF FEDERAL AND STATE STAFF, RESEARCH 
AND 
DEMONSTRATION PROGRAMS, AND SPECIAL 
PROJECTS OF 
REGIONAL OR NATIONAL SIGNIFICANCE.—Section 452 (42 U.S.C. 652) 
is amended by adding at the end the following new subsection: 
"(j) Out of any money in the Treasury of the United States 
not otherwise appropriated, there is hereby appropriated to the 
Secretary for each fiscal year an amount equal to 1 percent of 
the total amount paid to the Federal Government pursuant to 
section 457(a) during the immediately preceding fiscal year (as 
determined on the basis of the most recent reliable data available 
to the Secretary as of the end of the third calendar quarter following 
the end of such preceding fiscal year), to cover costs incurred 
by the Secretary for— 
"(1) information dissemination and technical assistance to 
States, training of State and Federal staff, staffing studies, 
and related activities needed to improve programs under this 
part (including technical assistance concerning State automated 
systems required by this part); and 
"(2) research, demonstration, and special projects of 
regional or national significance relating to the operation of 
State programs under tWs part. 
The amount appropriated under this subsection shall remain avail-
able until expended.". 
(b) OPERATION OF FEDERAL PARENT LOCATOR SERVICE.—Section 
453 (42 U.S.C. 653), as amended by section 316 of this Act, is 
amended by adding at the end the following new subsection: 
"(o) RECOVERY OF COSTS.—Out of any money in the Treasury 
of the United States not otherwise appropriated, there is hereby 
appropriated to the Secretary for each fiscal year an amount equal 
to 2 percent of the total amount paid to the Federal Government 
pursuant to section 457(a) during the immediately preceding fiscal 
year (as determined on the basis of the most recent reliable data 
available to the Secretary as of the end of the third calendar 
quarter following the end of such preceding fiscal year), to cover 
costs incurred by the Secretary for operation of the Federal Parent 
110 STAT. 2238 
PUBLIC LAW 104-193—AUG. 22, 1996 
Locator Service under this section, to the extent such costs are 
not recovered through user fees,". 
SEC. 
3
4
6
. 
REPORTS 
AND 
DATA 
COLLECTION 
BY 
THE 
SECRETARY. 
(a) ANNUAL REPORT TO CONGRESS.— 
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
£imended— 
(A) by striking "this part;" and inserting "this part, 
including—"; and 
(B) by adding at the end the following new clauses: 
"(i) the total amoiint of child support payments 
collected as a result of services furnished during the 
fiscal year to individuals receiving services under this 
part; 
"(ii) the cost to the States and to the Federal 
Government of so furnishing the services; and 
"(iii) the number of cases involving famihes— 
"(I) who became ineligible for assistance under 
State programs funded imder part A during a 
month in the fiscal year; and 
"(II) with respect to whom a child support 
payment was received in the month;". 
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
amended— 
(A) in the matter preceding clause (i)— 
(i) by striking "with the data required under each 
clause being separately stated for cases" and inserting 
"separately stated for cases"; 
(ii) by striking "cases where the child was formerly 
receiving" and inserting "or formerly received"; 
(iii) by inserting "or 1912" after "471(a)(17)"; and 
(iv) by inserting "for" before "all other"; 
(B) in each of clauses (i) and (ii), by striking ", and 
the total amount of such obligations"; 
(C) in clause (iii), by striking "described in" and all 
that follows and inserting "in which support was collected 
during the fiscal year;"; 
(D) by striking clause (iv); and 
(E) by redesignating clause (v) as clause (vii), sind 
inserting after clause (iii) the following new clauses: 
"(iv) the total amount of support collected during 
such fiscal year and distributed as current support; 
"(v) the total amount of support collected during 
such fiscal year and distributed as arrearages; 
"(vi) the total amount of support due and unpaid 
for all fiscal years; and". 
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
amended by striking "on the use of Federal courts and". 
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended— 
(A) in subparagraph (H), by striking "and"; 
(B) in subpeiragraph (I), by striking the period and 
inserting "; and"; and 
(C) by inserting after subparagraph (I) the following 
new subparagraph: 
"(J) compliance, by State, with the standards estab-
lished pursuant to subsections (h) and (i).". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2239 
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended 
by striking all that follows subparagraph (J), as added by 
paragraph (4). 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall be effective with respect to fiscal year 1997 and succeeding 
fiscal years. 
Subtitle F—Establishment and 
Modification of Support Orders 
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF 
CHILD SUPPORT ORDERS. 
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read 
as follows: 
"(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON 
REQUEST.— 
"(A) 3-YEAR CYCLE.— 
"(i) IN GENERAL.—Procedures under which every 
3 years (or such shorter cycle as the State may deter-
mine), upon the request of either parent, or, if there 
is em assignment under part A, upon the request of 
the State agency under the State plan or of either 
parent, the State shall with respect to a support order 
being enforced under this part, taking into account 
the best interests of the child involved— 
"(I) review and, if appropriate, adjust the order 
in accordance with the guidelines established 
pursuant to section 467(a) if the amount of the 
child support award under the order differs from 
the amoimt that would be awarded in accordance 
with the guidelines; 
"(II) apply a cost-of-living adjustment to the 
order in accordance with a formula developed by 
the State; or 
"(III) use automated methods (including auto-
mated comparisons with wage or State income tax 
data) to identify orders eligible for review, conduct 
the review, identify orders eligible for adjustment, 
and apply the appropriate adjustment to the orders 
eligible for adjustment under any threshold that 
may be established by the State. 
"(ii) OPPORTUNITY TO REQUEST REVIEW OF ADJUST-
MENT.—If the State elects to conduct the review under 
subclause (II) or (III) of clause (i), procedures which 
permit either party to contest the adjustment, within 
30 days after the date of the notice of the adjustment, 
by making a request for review and, if appropriate, 
adjustment of the order in accordance with the child 
support guidelines established pursuant to section 
467(a). 
"(iii) No PROOF OF CHANGE IN CIRCUMSTANCES 
NECESSARY 
IN 
3-YEAR 
CYCLE 
REVIEW.—Procedures 
which provide that any adjustment under clause (i) 
shall be made without a requirement for proof or show-
ing of a chsoige in circumstances. 
110 STAT. 2240 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(B) PROOF OF SUBSTANTIAL CHANGE IN CIRCUMSTANCES 
NECESSARY IN REQUEST FOR REVIEW OUTSIDE 3-YEAR 
CYCLE.—Procedures under which, in the case of a request 
for a review, and if appropriate, an adjustment outside 
the 3-year cycle (or such snorter cycle as the State may 
determine) under clause (i), the State shall review and, 
if the requesting party demonstrates a substantial change 
in circumstances, adjust the order in accordance vnth the 
guidelines established pursuant to section 467(a). 
"(C) NOTICE OF RIGHT TO REVIEW.—Procedures which 
require the State to provide notice not less than once 
every 3 years to the parents subject to the order informing 
the p£irents of their right to request the State to review 
and, if ^propriate, adjust the order pursuant to this para-
graph. The notice may be included in the order.". 
SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES 
RELATING TO CHILD SUPPORT. 
Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) 
is amended by adding at the end the following new paragraphs: 
"(4) In response to a request by the head of a State or local 
child support enforcement agency (or a State or local government 
official authorized by the head of such an agency), if the person 
making the request certifies to the consumer reporting agency 
that— 
"(A) the consumer report is needed for the purpose of 
establishing an individual's capacity to make child support 
payments or determining the appropriate level of such pay-
ments; 
"(B) the paternity of the consumer for the child to which 
the obligation relates has been established or acknowledged 
by the consumer in accordance with State laws under which 
the obligation arises (if required by those laws); 
"(C) the person has provided at least 10 days' prior notice 
to the consumer whose report is requested, by certified or 
registered mail to the last known address of the consumer, 
that the report will be requested; and 
"(D) the consumer report will be kept confidential, will 
be used solely for a purpose described in subparagraph (A), 
and will not be used in connection with any other civil, adminis-
trative, or criminal proceeding, or for any other purpose. 
"(5) To an agency administering a State plan under section 
454 of the Social Security Act (42 U.S.C. 654) for use to set an 
initial or modified child support award.". 
SEC. 363. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING 
FINANCIAL RECORDS TO STATE CHILD SUPPORT 
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES. 
Part D of title IV (42 U.S.C. 651-669) is amended by adding 
at the end the following: 
44 use 6498. 
"SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING 
FINANCIAL RECORDS TO STATE CHILD SUPPORT 
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES. 
"(a) IN GENERAL.—Notwithstanding any other provision of 
Federal or State law, a financial institution shall not be liable 
under any Federal or State law to any person for disclosing any 
financial record of an individual to a State child support enforce-
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2241 
ment agency attempting to establish, modify, or enforce a child 
support obligation of such individual. 
"(b) 
PROHIBITION 
OF 
DISCLOSURE 
OF 
FINANCIAL 
RECORD 
OBTAINED BY STATE CHILD SUPPORT ENFORCEMENT AGENCY.—^A 
State child support enforcement agency which obtains a financial 
record of an individual from a financial institution pursuemt to 
subsection (a) may disclose such financial record only for the pur-
pose of, and to the extent necessary in, establishing, modifying, 
or enforcing a child support obligation of such individu^. 
"(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE.— 
"(1) DISCLOSURE BY STATE OFFICER OR EMPLOYEE.—If any 
person knowingly, or by reason of negligence, discloses a finan-
cial record of an individual in violation of subsection (b), such 
individual may bring a civil action for damages against such 
person in a district court of the United States. 
"(2) 
No 
LIABILITY FOR 
GOOD 
FAITH 
BUT ERRONEOUS 
INTERPRETATION.—No liability shall arise under this subsection 
with respect to any disclosure which results from a good faith, 
but erroneous, interpretation of subsection (b). 
"(3) DAMAGES.—In any action brought under paragraph 
(1), upon a finding of liability on the part of the defendant, 
the defendant shall be liable to the plaintiff in an amount 
equal to the sum of— 
» 
"(A) the greater of— 
"(i) $1,000 for each act of unauthorized disclosure 
of a financial record with respect to which such defend-
ant is found liable; or 
"(ii) the sum o
f
— 
"(I) the actual damages sustained by the 
plaintiff as a result of such unauthorized disclo-
sure; plus 
"(II) in the case of a willful disclosure or a 
disclosure which is the result of gross negligence, 
punitive damages; plus 
"(B) the costs (including attome/s fees) of the action. 
"(d) DEFINITIONS.—For purposes of this section— 
"(1) FINANCIAL INSTITUTION.—The term 'financial institu-
tion' means— 
"(A) a depository institution, as defined in section 3(c) 
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)); 
"(B) an institution-affiliated party, as defined in section 
3(u) of such Act (12 U.S.C. 1813(u)); 
"(C) any Federal credit union or State credit union, 
as defined in section 101 of the Federal Credit Union 
Act (12 U.S.C. 1752), including an institution-affihated 
party of such a credit union, as defined in section 206(r) 
of such Act (12 U.S.C. 1786(r)); and 
"(D) any benefit association, insurance company, safe 
deposit company, money-market mutual fund, or similar 
entity authorized to do business in the State. 
"(2) FINANCIAL RECORD.—The term 'financial record' has 
the meaning given such term in section 1101 of the Right 
to Financial Privacy Act of 1978 (12 U.S.C. 3401).". 
110 STAT. 2242 
PUBLIC LAW 104-193—AUG. 22, 1996 
Subtitle G—Enforcement of Support 
Orders 
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREAR-
AGES. 
(a) COLLECTION OF FEES.—Section 6305(a) of the Internal Reve-
nue Code of 1986 (relating to collection of certain liability) is 
amended— 
(1) by striking "and" at the end of paragraph (3); 
(2) by striking the period at the end of paragraph (4) 
and inserting ", and"; 
(3) by adding at the end the following new paragraph: 
"(5) no additional fee may be assessed for adjustments 
to an amount previously certified pursuant to such section 
452(b) with respect to the same obligor."; and 
(4) by striking "Secretary of Health, Education, and Wel-
fare" each place it appears and inserting "Secretary of Health 
and Human Services . 
26 use 6305 
(b) EFFECTIVE DATE.—The amendments made by this section 
note. 
shall become effective October 1,1997. 
SEC. 362. AUTHORITY TQ COLLECT SUPPORT FROM FEDERAL 
EMPLOYEES. 
(a) CONSOLIDATION AND STREAMLINING OF AUTHORITIES.—Sec-
tion 459 (42 U.S.C. 659) is amended to read as follows: 
-SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLD-
ING, GARNISHMENT, AND SIMILAR PROCEEDINGS FOR 
ENFORCEMENT OF CHILD SUPPORT AND ALIMONY 
OBLIGATIONS. 
"(a) CONSENT TO SUPPORT ENFORCEMENT.—Notwithstanding 
any other provision of law (including section 207 of this Act and 
section 5301 of title 38, United States Code), effective January 
1, 1975, moneys (the entitlement to which is based upon remunera-
tion for emplojmaent) due from, or payable by, the United States 
or the District of Columbia (including any agency, subdivision, 
or instrumentality thereof) to any individual, including members 
of the Armed Forces of the United States, shall be subject, in 
like manner and to the same extent as if the United States or 
the District of Columbia were a private person, to withholding 
in accordance with State law enacted pursuant to subsections (a)(1) 
and (b) of section 466 and regulations of the Secretary under such 
subsections, and to any other legal process brought, by a State 
agency administering a program under a State plan approved under 
this part or by an individual obligee, to enforce the legal obligation 
of the individual to provide child support or alimony. 
"(b) CONSENT TO REQUIREMENTS APPLICABLE TO PRIVATE PER-
SON.—With respect to notice to withhold income pursuant to sub-
section (a)(1) or (b) of section 466, or any other order or process 
to enforce support obligations against an individual (if the order 
or process contains or is accompanied by sufficient data to permit 
prompt identification of the individual and the moneys involved), 
each governmental entity specified in subsection (a) shall be subject 
to the same requirements as would apply if the entity were a 
private person, except as otherwise provided in this section. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2243 
"(c) 
DESIGNATION OF AGENT; 
RESPONSE TO NOTICE OR 
PROCESS— 
"(1) DESIGNATION OF AGENT.—The head of each agency 
subject to this section shall— 
"(A) designate an agent or agents to receive orders 
and accept service of process in matters relating to child 
support or alimony; and 
"(B) annually publish in the Federal Register the des- Federal Register, 
ignation of the agent or agents, identified by title or posi- publication, 
tion, mailing address, and telephone number. 
"(2) RESPONSE TO NOTICE OR PROCESS.—If an agent des-
ignated pursuant to psiragraph (1) of this subsection receives 
notice pursuant to State procedures in effect pursuant to sub-
section (a)(1) or (b) of section 466, or is effectively served 
with any order, process, or interrogatory, with respect to an 
individual's child support or alimony pa5nnent obligations, the 
agent shall— 
"(A) as soon as possible (but not later than 15 days) 
thereafter, send written notice of the notice or service 
(together with a copy of the notice or service) to the individ-
ual at the duty station or last-known home address of 
the individusd; 
"(B) within 30 days (or such longer period as may 
be prescribed by applicable State law) after receipt of a 
notice pursuant to such State procedures, comply with all 
applicable provisions of section 466; and 
"(C) within 30 days (or such longer period as may 
be prescribed by applicable State law) after effective service 
of any other such order, process, or interrogatory, respond 
to the order, process, or interrogatory. 
"(d) PRIORITY OF CLAIMS.—If a governmental entity specified 
in subsection (a) receives notice or is served with process, as pro-
vided in this section, concerning amounts owed by an individual 
to more than 1 person— 
"(1) support collection under section 466(b) must be given 
priority over any other process, as provided in section 466(b)(7); 
"(2) allocation of moneys due or payable to an individual 
among claimEints imder section 466(b) shall be governed by 
section 466(b) and the regulations prescribed under such sec-
tion; and 
"(3) such moneys as remain after compliance with para-
graphs (1) and (2) shall be available to satisfy any other such 
processes on a first-come, first-served basis, with any such 
process being satisfied out of such moneys as remain after 
the satisfaction of all such processes which have been previously 
served. 
"(e) No REQUIREMENT TO VARY PAY CYCLES.—A governmental 
entity that is affected by legal process served for the enforcement 
of an individual's child support or alimony pajnnent obligations 
shall not be required to vary its normal pay and disbursement 
cycle in order to comply with the legal process. 
"(f) RELIEF FROM LIABILITY.— 
"(1) Neither the United States, nor the government of the 
District of Columbia, nor any disbursing officer shsJl be liable 
with respect to any payment made from moneys due or payable 
fi*om the United States to any individual pursuant to legal 
process regular on its face, if the payment is made in accordance 
29-194 O - 96 - 17 : QL 3 Part 3 
110 STAT. 2244 
PUBLIC LAW 104-193—AUG. 22, 1996 
with this section and the regulations issued to carry out this 
section. 
"(2) No Federal employee whose duties include taking 
actions necessary to comply with the requirements of subsection 
(a) with regard to any individual shall be subject under any 
law to any disciplinary action or civil or criminal liability or 
penalty for, or on accoimt of, £iny disclosure of information 
made by the employee in connection with the canying out 
of such actions. 
"(g) REGULATIONS.—^Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)— 
"(1) the United States (other than the legislative or judicial 
branches of the Federal Government) or the government of 
the District of Columbia, be vested in the President (or the 
designee of the President); 
"(2) the legislative branch of the Federal Government, be 
vested jointly in the President pro tempore of the Senate and 
the Speaker of the House of Representatives (or their des-
ignees), and 
"(3) the judicial brsinch of the Federal Government, be 
vested in the Chief Justice of the United States (or the designee 
of the Chief Justice). 
"(h) MONEYS SUBJECT TO PROCESS.— 
"(1) IN GENERAL.—Subject to paragraph (2), moneys paid 
or payable to an individual which are considered to be based 
upon remuneration for employment, for purposes of this 
section— 
"(A) consist of— 
"(i) compensation paid or payable for personal 
services of the individual, whether the compensation 
is denominated as wages, salary, commission, bonus, 
pay, allowances, or otherwise (including severance pay, 
sick pay, and incentive pay); 
"(ii) periodic benefits (including a periodic benefit 
as defined in section 228(h)(3)) or other pajmients— 
"(I) imder the insurance system established 
by title II; 
"(II) under any other system or fund estab-
lished by the United States which provides for 
the payment of pensions, retirement or retired pay, 
ginnuities, dependents' or survivors' benefits, or 
similar amounts payable on account of personal 
services performed by the individual or any other 
individual; 
"(III) as compensation for death under any 
Federal program; 
"(IV) imder any Federal program established 
to provide *black lung* benefits; or 
"(V) by the Secretary of Veterans Affairs as 
compensation for a service-connected disability 
paid by the Secretary to a former member of the 
Armed Forces who is in receipt of retired or 
retedner pay if the former member has waived 
a portion of the retired or retainer pay in order 
to receive such compensation; and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2245 
"(iii) worker's compensation benefits paid under 
Federal or State law but 
"(B) do not include any payment— 
"(i) by way of reimbursement or otherwise, to 
defray expenses incurred by the individual in carrying 
out duties associated with the employment of the 
individual; or 
"(ii) as allowances for members of the uniformed 
services payable pursuant to chapter 7 of title 37, 
United States Code, as prescribed by the Secretaries 
concerned (defined by section 101(5) of such title) as 
necessary for the efficient performance of duty. 
"(2) CERTAIN AMOUNTS EXCLUDED.—In determining the 
amount of any moneys due fi*om, or payable by, the United 
States to any individual, there shall be excluded amounts 
which— 
"(A) are owed by the individual to the United States; 
"(B) are required by law to be, and are, deducted 
from the remuneration or other pajmient involved, includ-
ing Federal emplo3anent taxes, and fines and forfeitures 
ordered by court-martial; 
"(C) are properly withheld for Federal, State, or local 
income tax purposes, if the withholding of the amounts 
is authorized or required by law and if amounts withheld 
are not greater than would be the case if the individual 
claimed all dependents to which he was entitled (the 
withholding of additional amounts pursuant to section 
3402(i) of the Internal Revenue Code of 1986 may be per-
mitted only when the individual presents evidence of a 
tax obligation which supports the additional withholding); 
"(D) are deducted as health insurance premiums; 
"(E) are deducted as normal retirement contributions 
(not including amounts deducted for supplementary cov-
erage); or 
"(F) are deducted as normal life insureince premiums 
firom salary or other remuneration for employment (not 
including amounts deducted for supplementary coverage). 
"(i) DEFINITIONS.—For purposes of this section— 
"(1) UNITED STATES.—The term 'United States' includes 
any department, agency, or instrumentality of the legislative, 
judicial, or executive branch of the Federal Government, the 
United States Postal Service, the Postal Rate Commission, any 
Federal corporation created by an Act of Congress that is wholly 
owned by the Federal Government, and the governments of 
the territories and possessions of the United States. 
"(2) CHILD SUPPORT.—The term 'child support', when used 
in reference to the legal obligations of an individual to provide 
such support, means gimounts required to be paid imder a 
judgment, decree, or order, whether temporary, final, or subject 
to modification, issued by a court or an administrative agency 
of competent jurisdiction, for the support and maintenance 
of a child, including a child who has attained the age of majority 
under the law of the issuing State, or a child and the parent 
with whom the child is living, which provides for monetsiry 
support, health care, arrearages or reimbursement, and which 
may include other related costs and fees, interest £ind penalties, 
income withholding, attorneys fees, and other relief. 
110 STAT. 2246 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(3) ALIMONY.— 
"(A) IN GENERAL.—^The term 'alimony', when used in 
reference to the legal obligations of an individual to provide 
the same, means periodic pa3mients of fiinds for the support 
and maintenance of the spouse (or former spouse) of the 
individual, and (subject to and in accordance with State 
law) includes separate maintenance, alimony pendente lite, 
maintenance, and spousal support, and includes attorney's 
fees, interest, and court costs when and to the extent 
that the same are expressly made recoverable as such 
pursuant to a decree, order, or judgment issued in accord-
ance with applicable State law by a court of competent 
jurisdiction. 
"(B) EXCEPTIONS.—Such term does not include— 
"(i) any child support; or 
"(ii) any payment or transfer of property or its 
value by an individual to the spouse or a former spouse 
of the individual in compliance with any community 
property settlement, equitable distribution of property, 
or other division of property between spouses or former 
spouses. 
"(4) PRIVATE PERSON.—^The term 'private person' means 
a person who does not have sovereign or other special immimity 
or privilege which causes the person not to be subject to legal 
process. 
"(5) LEGAL PROCESS.—The term 'legal process' means any 
writ, order, summons, or other similar process in the nature 
of garnishment— 
"(A) which is issued by— 
"(i) a court or an administrative agency of com-
7 
petent jurisdiction in any State, territory, or possession 
of the United States; 
"(ii) a court or an administrative agency of com-
petent jurisdiction in any foreign country with which 
the United States has entered into an agreement which 
requires the United States to honor the process; or 
"(iii) an authorized official pursuant to an order 
of such a court or an administrative agency of com-
petent jurisdiction or pursuant to State or local law; 
and 
"(B) which is directed to, and the purpose of which 
is to compel, a governmental entity which holds moneys 
which are otherwise payable to an individued to make 
a payment from the moneys to another party in order 
to satisfy a legal obligation of the individual to provide 
child support or make alimony payments.". 
(b) CONFORMING AMENDMENTS.— 
(1) To PART D OF TITLE IV.—Sections 461 and 462 (42 
U.S.C. 661 and 662) are repealed. 
(2) To TITLE 5, UNITED STATES CODE.—Section 5520a of 
title 5, United States Code, is amended, in subsections (h)(2) 
and (i), by striking "sections 459, 461, and 462 of the Social 
Security Act (42 U.S.C. 659, 661, and 662)" and inserting "sec-
tion 459 of the Social Security Act (42 U.S.C. 659)". 
(c) MILITARY RETIRED AND RETAINER PAY.— 
(1) DEFINITION OF COURT.—Section 1408(a)(1) of title 10, 
United States Code, is amended— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2247 
(A) by striking "and" at the end of subparagraph (B); 
(B) by striking the period at the end of subparagraph 
(C) and inserting "; and"; and 
(C) by adding after subparagraph (C) the following 
new subparagraph: 
"(D) any administrative or judicial tribunal of a State 
competent to enter orders for support or maintenance 
(including a State agency administering a program under 
a State plan approved under part D of title IV of the 
Social Security Act), and, for purposes of this subparagraph, 
the term 'State' includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
and American Samoa.". 
(2) DEFINITION OF COURT ORDER.—Section 1408(a)(2) of 
such title is amended— 
(A) by inserting "or a support order, as defined in 
section 453(p) of the Social Security Act (42 U.S.C. 653(p))," 
before "which—"; 
(B) in subparagraph (B)(i), by striking "(as defined 
in section 462(b) of the Social Security Act (42 U.S.C. 
662(b)))" and inserting "(as defined in section 459(i)(2) of 
the Social Security Act (42 U.S.C. 659(i)(2)))"; and 
(C) in subparagraph (B)(ii), by striking "(as defined 
in section 462(c) of the Social Security Act (42 U.S.C. 
662(c)))" and inserting "(as defined in section 459(i)(3) of 
the Social Security Act (42 U.S.C. 659(i)(3)))". 
(3) 
PUBLIC 
PA^-EE.—Section 1408(d) of such title is 
amended— 
(A) in the heading, by inserting "(OR FOR BENEFIT 
OF)" before "SPOUSE OR"; and 
(B) in paragraph (1), in the first sentence, by inserting 
"(or for the benefit of such spouse or former spouse to 
a State disbursement unit established pursuant to section 
454B of the Social Security Act or other public payee des-
ignated by a State, in accordance with part D of title 
IV of the Social Security Act, as directed by court order, 
or as otherwise directed in accordance with such part D)" 
before "in an amount sufficient". 
(4) RELATIONSHIP TO PART D OF TITLE IV.—Section 1408 
of such title is amended by adding at the end the following 
new subsection: 
"(j) RELATIONSHIP TO OTHER LAWS.—In any case involving an 
order providing for payment of child support (as defined in section 
459(i)(2) of the Social Security Act) by a member who has never 
been married to the other parent of the child, the provisions of 
this section shall not apply, and the case shall be subject to the 
provisions of section 459 of such Act.". 
(d) EFFECTIVE DATE.—The amendments made by this section 42 use 659 note. 
shall become effective 6 months after the date of the enactment 
of this Act. 
SEC. 363. ENFORCEMENl' OF CHILD SUPPORT OBLIGATIONS OF 
MEMBERS OF THE ARMED FORCES. 
(a) AVAILABILITY OF LOCATOR INFORMATION.— 
lo use ii3 note. 
(1) MAINTENANCE OF ADDRESS INFORMATION.—The Sec-
retary of Defense shall establish a centralized personnel locator 
service that includes the address of each member of the Armed 
110 STAT. 2248 
PUBLIC LAW 104-193—AUG. 22, 1996 
Forces under the jurisdiction of the Secretary. Upon request 
of the Secretary of Transportation, addresses for members of 
the Coast Guard shall be included in the centralized personnel 
locator service. 
(2) TYPE OF ADDRESS.— 
(A) RESIDENTIAL ADDRESS.—Except as provided in 
subpsiragraph (B), the address for a member of the Armed 
Forces shown in the locator service shall be the residential 
address of that member. 
(B) DUTY ADDRESS.—The address for a member of the 
Armed Forces shown in the locator service shall be the 
duty address of that member in the case of a member— 
(i) who is permanently assigned overseas, to a 
vessel, or to a routinely deployable imit; or 
(ii) with respect to whom the Secretary concerned 
makes a determination that the member's residential 
address should not be disclosed due to national security 
or safety concerns. 
(3) UPDATING OF LOCATOR INFORMATION.—Within 30 days 
after a member listed in the locator service establishes a new 
residential address (or a new duty address, in the case of 
a member covered by paragraph (2)(B)), the Secretary concerned 
shall update the locator service to indicate the new address 
of the member. 
(4) AVAILABILITY OF INFORMATION.—The Secretary of 
Defense shall make information regarding the address of a 
member of the Armed Forces listed in the locator service avail-
able, on request, to the Federal Parent Locator Service estab-
lished under section 453 of the Social Security Act. 
10 u s e 704 note. 
(b) FACILITATING GRANTING OF LEAVE FOR ATTENDANCE AT 
HEARINGS.— 
(1) REGULATIONS.—The Secretary of each military depart-
ment, and the Secretary of Transportation with respect to the 
Coast Guard when it is not operating as a service in the 
Navy, shall prescribe regulations to facilitate the granting of 
leave to a member of the Armed Forces under the jurisdiction 
of that Secretary in a case in which— 
(A) the leave is needed for the member to attend a 
hearing described in paragraph (2); 
(B) the member is not serving in or with a unit 
deployed in a contingency operation (as defined in section 
101 of title 10, United States Code); and 
(C) the exigencies of military service (as determined 
by the Secretary concerned) do not otherwise require that 
such leave not be granted. 
(2) COVERED HEARINGS.—Paragraph (1) applies to a hearing 
that is conducted by a court or pursuant to an administrative 
process established imder State law, in connection with a civil 
action— 
(A) to determine whether a member of the Armed 
Forces is a natural parent of a child; or 
(B) to determine an obligation of a member of the 
Armed Forces to provide child support. 
(3) DEFINITIONS.—For purposes of this subsection— 
(A) The term "court" has the meaning given that term 
in section 1408(a) of title 10, United States Code. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2249 
(B) The term "child support" has the meaning given 
such term in section 459(i) of the Social Security Act (42 
U.S.C. 659(i)). 
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLIANCE WITH 
CHILD SUPPORT ORDERS.— 
(1) DATE OF CERTIFICATION OF COURT ORDER.—Section 
1408 of title 10, United States Code, as amended by section 
362(c)(4) of this Act, is amended— 
(A) by redesignating subsections (i) and (j) as sub-
sections (j) and (k), respectively; and 
(B) by inserting after subsection (h) the following new 
subsection: 
"(i) 
CERTIFICATION DATE.—It is not necessary that the 
date of a certification of the authenticity or completeness of a 
copy of a court order for child support received by the Secretary 
concerned for the purposes of this section be recent in relation 
to the date of receipt by the Secretary.". 
(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS OF RIGHTS 
TO STATES.—Section 1408(d)(1) of such title is amended by 
inserting after the first sentence the following new sentence: 
"In the case of a spouse or former spouse who, pursuant to 
section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(4)), 
assigns to a State the rights of the spouse or former spouse 
to receive support, the Secretary concerned may make the 
child support payments referred to in the preceding sentence 
to that State in amounts consistent with that assignment of 
rights.". 
(3) ARREARAGES OWED BY MEMBERS OF THE UNIFORMED 
SERVICES.—Section 1408(d) of such title is amended by adding 
at the end the following new paragraph: 
"(6) In the case of a court order for which effective service 
is made on the Secretary concerned on or after the date of the 
enactment of this paragraph and which provides for payments 
from the disposable retired pay of a member to satisfy the amount 
of child support set forth in the order, the authority provided 
in paragraph (1) to make payments fi*om the disposable retired 
pay of a member to satisfy the amount of child support set forth 
in a court order shall apply to payment of any amount of child 
support arrearages set forth in that order as well as to amounts 
of cliild support that currently become due.". 
(4) PAYROLL DEDUCTIONS.—The Secretary of Defense shall 
lO USC1408 
begin payroll deductions within 30 days after receiving notice ^°^-
of withholding, or for the first pay period that begins after 
such 30-day period. 
SEC. 364. VOroiNG OF FRAUDULENT TRANSFERS. 
Section 466 (42 U.S.C. 666), as amended by section 321 of 
this Act, is amended by adding at the end the following new 
subsection: 
"(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In order to 
satisfy section 454(20)(A), each State must have in effect— 
"(1)(A) the Uniform Fraudulent Conveyance Act of 1981; 
"(B) the Uniform Fraudulent Transfer Act of 1984; or 
"(C) another law, specifying indicia of fraud which create 
a prima facie case that a debtor transferred income or property 
to avoid payment to a child support creditor, which the 
110 STAT. 2250 
PUBLIC LAW 104-193—AUG. 22, 1996 
Secretary finds affords comparable rights to child support credi-
tors; and 
"(2) procedures under which, in any case in which the 
State knows of a transfer by a child support debtor with respect 
to which such a prima facie case is established, the State 
must— 
"(A) seek to void such transfer; or 
"(B) obtain a settlement in the best interests of the 
child support creditor.". 
SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD 
SUPPORT. 
(a) IN GENERAL.—Section 466(a) (42 U.S.C. 666(a)), as amended 
by sections 315, 317, and 323 of this Act, is amended by inserting 
after paragraph (14) the following new paragraph: 
"(15) PROCEDURES TO ENSURE THAT PERSONS OWING PAST-
DUE SUPPORT WORK OR HAVE A PLAN FOR PAYMENT OF SUCH 
SUPPORT.— 
"(A) IN GENERAL.—Procedures under which the State 
has the authority, in any case in which an individual 
owes past-due support with respect to a child receiving 
assistance under a State program funded under part A, 
to issue an order or to request that a court or an adminis-
trative process established pursuant to State law issue 
an order that requires the individual to— 
"(i) pay such support in accordance with a plan 
approved by the court, or, at the option of the State, 
a plan approved by the State agency administering 
the State program under this part; or 
"(ii) if the individual is subject to such a plan 
and is not incapacitated, participate in such work 
activities (as defined in section 407(d)) as the court, 
or, at the option of the State, the State agency admin-
istering the State program under this part, deems 
appropriate. 
"(B) PAST-DUE SUPPORT DEFINED.—For purposes of 
subparagraph (A), the term 'past-due support' means the 
amount of a delinquency, determined under a court order, 
or an order of an administrative process established under 
State law, for support and maintenance of a child, or of 
a child and the parent with whom the child is living.". 
(b) CONFORMING AMENDMENT.—The flush paragraph at the end 
of section 466(a) (42 U.S.C. 666(a)) is amended by striking "and 
(7)" and inserting "(7), and (15)". 
SEC. 366. DEFINITION OF SUPPORT ORDER. 
Section 453 (42 U.S.C. 653) as amended by sections 316 and 
345(b) of this Act, is amended by adding at the end the following 
new subsection: 
"(p) SUPPORT ORDER DEFINED.—^As used in this part, the term 
'support order' means a judgment, decree, or order, whether tem-
porary, final, or subject to modification, issued by a court or an 
administrative agency of competent jurisdiction, for the support 
and maintenance of a child, including a child who has attained 
the age of majority under the law of the issuing State, or a child 
and the parent with whom the child is living, which provides 
for monetary support, health care, arrearages, or reimbursement. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2251 
and which may include related costs and fees, interest and pensilties, 
income withholding, attorneys' fees, and other relief.". 
SEC. 
367. 
REPORTING 
ARREARAGES 
TO 
CREDIT 
BUREAUS. 
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as 
follows: 
"(7) REPORTING ARREARAGES TO CREDIT BUREAUS.— 
"(A) IN GENERAL.—Procedures (subject to safeguards 
pursuant to subparagraph (B)) requiring the State to report 
periodically to consumer reporting agencies (as defined in 
section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 
1681a(f)) the name of any noncustodial parent who is delin-
quent in the payment of support, and the amount of over-
due support owed by such parent. 
"(B) SAFEGUARDS.—Procedures ensuring that, in carry-
ing out subparagraph (A), information with respect to a 
noncustodial parent is reported— 
"(i) only after such parent has been afforded all 
due process required imder State law, including notice 
and a reasonable opportimity to contest the accuracy 
of such information; and 
"(ii) only to an entity that has furnished evidence 
satisfactory to the State that the entity is a consumer 
reporting agency (as so defined).". 
SEC. 368. LIENS. 
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read 
as follows: 
"(4) LIENS.—Procedures imder which— 
"(A) liens arise by operation of law against real and 
personal property for amounts of overdue support owed 
by a noncustodial parent who resides or owns property 
in the State; and 
"(B) the State accords fiill faith and credit to liens 
described in subparagraph (A) arising in another State, 
when the State agency, party, or other entity seeking to 
enforce such a lien complies with the procedural rules 
relating to recording or serving liens that arise within 
the State, except that such rules may not require judicial 
notice or heeiring prior to the enforcement of such a lien.". 
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF UCENSES. 
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317, 323, and 365 of this Act, is amended by inserting after para-
graph (15) the following: 
"(16) 
AUTHORITY TO WITHHOLD OR SUSPEND LICENSES.— 
Procedures under which the State has (and uses in appropriate 
cases) authority to withhold or suspend, or to restrict the use 
of driver's licenses, professional and occupational licenses, and 
recreational Ucenses of individuals owing overdue support or 
failing, after receiving appropriate notice, to comply with 
subpoenas or warrants relating to paternity or child support 
proceedings.". 
SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD 
SUPPORT. 
(a) HHS CERTIFICATION PROCEDURE.— 
110 STAT. 2252 
PUBLIC LAW 104-193—AUG. 22, 1996 
(1) SECRETARIAL RESPONSIBILITY.—Section 452 (42 U.S.C. 
652), as amended by section 345 of this Act, is amended by 
adding at the end the following new subsection: 
"(k)(l) If the Secretary receives a certification by a State agency 
in accordance with the requirements of section 454(31) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000, the Secretary shall transmit such certification to the Sec-
retary of State for action (with respect to denial, revocation, or 
limitation of passports) pursuant to paragraph (2). 
"(2) The Secretary of State shall, upon certification by the 
Secretary transmitted xmder paragraph (1), refiise to issue a pass-
port to such individual, and may revoke, restrict, or limit a passport 
issued previously to such individual. 
"(3) The Secretary and the Secretary of State shall not be 
liable to an individual for any action with respect to a certification 
by a State agency under this section.". 
(2) STATE AGENCY RESPONSIBILITY.—Section 454 (42 U.S.C. 
654), as amended by sections 301(b), 303(a), 312(b), 313(a), 
333, and 343(b) of this Act, is amended— 
(A) by striking "and" at the end of paragraph (29); 
(B) by striking the period at the end of paragraph 
(30) and inserting "; and"; and 
(C) by adding after paragraph (30) the following new 
paragraph: 
"(31) provide that the State agency will have in effect 
a procedure for certifying to the Secretary, for purposes of 
the procedure under section 452(k), determinations that individ-
uals owe arrearages of child support in an eunount exceeding 
$5,000, under which procedure— 
"(A) each individual concerned is afforded notice of 
such determination and the consequences thereof, and an 
opportunity to contest the determination; and 
"(B) the certification by the State agency is furnished 
to the Secretary in such format, and accompanied by such 
supporting documentation, as the Secretary may require.". 
42 use 652 note. 
(b) EFFECTIVE DATE.—This section and the amendments made 
by this section shall become effective October 1,1997. 
SEC. 371. INTERNATIONAL SUPPORT ENFORCEMENT. 
(a) AUTHORITY FOR INTERNATIONAL AGREEMENTS.—Part D of 
title IV, as amended by section 362(a) of this Act, is amended 
by adding after section 459 the following new section: 
42 use 659a. 
"SEC. 459A, INTERNATIONAL SUPPORT ENFORCEMENT. 
"(a) AUTHORITY FOR DECLARATIONS.— 
"(1) DECLARATION.—The Secretary of State, with the 
concurrence of the Secretary of Health and Human Services, 
is authorized to declare any foreign coimtry (or a political 
subdivision thereof) to be a foreign reciprocating country if 
the foreign country has established, or undertakes to establish, 
procedures for the establishment and enforcement of duties 
of support owed to obligees who are residents of the United 
States, and such procedures are substantisdly in conformity 
with the standards prescribed under subsection (b). 
"(2) REVOCATION.—A declaration with respect to a foreign 
country made pursuant to paragraph (1) may be revoked if 
the Secretaries of State and Health and Human Services deter-
mine that— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2253 
"(A) the procedures established by the foreign country 
regeirding the estabUshment and enforcement of duties of 
support have been so chsinged, or the foreign countrjr's 
implementation of such procedures is so unsatisfactory, 
that such procedures do not meet the criteria for such 
a declaration; or 
"(B) continued operation of the declaration is not 
consistent with the purposes of this part. 
"(3) FORM OF DECLARATION.—A declaration under para-
graph (1) may be made in the form of an international agree-
ment, in connection with an international agreement or cor-
responding foreign declaration, or on a unilateral basis. 
"(b) 
STANDARDS 
FOR FOREIGN 
SUPPORT 
ENFORCEMENT 
PROCEDURES.— 
"(1) MANDATORY ELEMENTS.—Support enforcement proce-
dures of a foreign country which may be the subject of a 
declaration pursuant to subsection (a)(1) shall include the fol-
lowing elements: 
"(A) The foreign country (or political subdivision 
thereof) has in effect procedures, available to residents 
of the United States— 
"(i) for establishment of paternity, and for 
establishment of orders of support for children and 
custodial parents; and 
"(ii) for enforcement of orders to provide support 
to children and custodial parents, including procedures 
for collection and appropriate distribution of support 
payments under such orders. 
"(B) The procedures described in subparagraph (A), 
including legal and administrative assistance, are provided 
to residents of the United States at no cost. 
"(C) An agency of the foreign country is designated 
as a Central Authority responsible for— 
"(i) facilitating 
support enforcement in cases 
involving residents of the foreign country and residents 
of the United States; and 
"(ii) ensuring compliance with the standards estab-
lished pursuant to this subsection. 
"(2) ADDITIONAL ELEMENTS.—The Secretary of Health and 
Humsin Services and the Secretary of State, in consultation 
with the States, may establish such additional standards as 
may be considered necessary to further the purposes of this 
section. 
"(c) DESIGNATION OF UNITED STATES CENTRAL AUTHORITY.— 
It shall be the responsibility of the Secretary of Health and Human 
Services to facilitate support enforcement in cases involving resi-
dents of the United States £ind residents of foreign countries that 
are the subject of a declaration under this section, by activities 
including— 
"(1) development of uniform forms and procedures for use 
in such cases; 
"(2) notification of foreign reciprocating countries of the 
State of residence of individuals sought for support enforcement 
purposes, on the basis of information provided by the Federal 
Parent Locator Service; and 
"(3) such other oversight, assistance, and coordination 
activities as the Secretary may find necessary and appropriate. 
110 STAT. 2254 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(d) EFFECT ON OTHER LAWS.—States may enter into reciprocal 
arrangements for the establishment and enforcement of support 
obligations with foreign countries that are not the subject of a. 
declaration pursuant to subsection (a), to the extent consistent 
with Federal law.", 
(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654), 
as amended by sections 301(b), 303(a), 312(b), 313(a), 333, 343(b), 
and 370(a)(2) of this Act, is amended— 
(1) by striking "and" at the end of paragraph (30); 
(2) by striking the period at the end of paragraph (31) 
and inserting "; and"; £ind 
(3) by adding after paragraph (31) the following new para-
graph: 
"(32)(A) provide that any request for services under this 
part by a foreign reciprocating country or a foreign country 
with which the State has an arrangement described in section 
459A(d)(2) shall be treated as a request by a State; 
"(B) provide, at State option, notwithstanding paragraph 
(4) or any other provision of this part, for services under the 
plan for enforcement of a spousal support order not described 
in paragraph (4)(B) entered by such a coimtry (or subdivision); 
and 
"(C) provide that no applications will be required from, 
and no costs will be assessed for such services against, the 
foreign reciprocating coimtry or foreign obligee (but costs may 
at State option be assessed against the obligor).". 
SEC. 372. FINANCIAL INSTITUTION DATA MATCHES. 
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317, 323, 365, and 369 of this Act, is amended by inserting after 
paragraph (16) the following new paragraph: 
"(17) FINANCIAL INSTITUTION DATA MATCHES.— 
"(A) IN GENERAL.—Procedures under which the State 
agency shall enter into agreements with financial institu-
tions doing business in the State— 
"(i) to develop and operate, in coordination with 
such financial institutions, a data match system, using 
automated data exchanges to the maximum extent fea-
sible, in which each such financial institution is 
required to provide for each calendar qusirter the name, 
record address, social security number or other tax-
payer identification number, and other identifying 
information for each noncustodial parent who main-
tains an account at such institution and who owes 
past-due support, as identified by the State by name 
and social security number or other taxpayer identifica-
tion number; and 
"(ii) in response to a notice of lien or levy, encum-
ber or surrender, as the case may be, assets held 
by such institution on behalf of any noncustodial parent 
who is subject to a child support lien pursuant to 
paragraph (4). 
"(B) REASONABLE FEES.—The State agency may pay 
a reasonable fee to a financial institution for conducting 
the data match provided for in subparagraph (A)(i), not 
to exceed the actual costs incurred by such financial 
institution. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2255 
"(C) LIABILITY.—^A financial institution shall not be 
liable under any Federal or State law to any person— 
"(i) for any disclosure of information to tne State 
agency under subparagraph (A)(i); 
"(ii) for encumbering or surrendering any assets 
held by such financial institution in response to a 
notice of lien or levy issued by the State agency as 
provided for in subparagraph (A)(ii); or 
"(iii) for any other action taken in good faith to 
comply with the requirements of subparagraph (A). 
"(D) DEFINITIONS.—For purposes of this pgiragraph— 
"(i) FINANCIAL INSTITUTION.—The term 'financial 
institution' has the meaning given to such term by 
section 469A(d)(l). 
"(ii) ACCOUNT.—^The term 
'account' means 
a 
demand deposit account, checking or negotiable with-
drawal order account, savings account, time deposit 
account, or money-market mutual fiind account.". 
SEC. 373. ENFORCEMENT 
OF ORDERS AGAINST 
PATERNAL 
OR 
MATERNAL 
GRANDPARENTS 
IN 
CASES 
OF 
MINOR 
PARENTS. 
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317, 323, 365, 369, and 372 of this Act, is amended by inserting 
after psiragraph (17) the following new paragraph: 
"(18) 
ENFORCEMENT OF ORDERS AGAINST PATERNAL OR 
MATERNAL GRANDPARENTS.—Procedures under which, at the 
State's option, any child support order enforced under this 
part with respect to a child of minor parents, if the custodial 
parent of such child is receiving assistance under the State 
program under part A, shall be enforceable, jointly and sever-
ally, against the parents of the noncustodial parent of such 
child.". 
SEC 374. NONDISCHARGEABILITY 
IN BANKRUPTCY 
OF CERTAIN 
DEBTS FOR THE SUPPORT OF A CHILD. 
(a) AMENDMENT TO TITLE 11 OF THE UNITED STATES CODE.— 
Section 523(a) of title 11, United States Code, is amended— 
(1) by striking "or" at the end of paragraph (16); 
(2) by striking the period at the end of paragraph (17) 
and inserting "; or"; 
(3) by adding at the end the following: 
"(18) owed imder State law to a State or municipality 
that is— 
"(A) in the nature of support, and 
"(B) enforceable imder part D of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.)."; and 
(4) in paragraph (5), by striking "section 402(a)(26)" £ind 
inserting "section 408(a)(3)". 
(b) AMENDMENT TO THE SOCIAL SECURITY ACT.—Section 456(b) 
(42 U.S.C. 656(b)) is amended to read as follows: 
"(b) NONDISCHARGEABILITY.—A debt (as defined in section 101 
of title 11 of the United States Code) owed under State law to 
a State (as defined in such section) or municipality (as defined 
in such section) that is in the nature of support and that is enforce-
able imder this part is not released by a discharge in bankruptcy 
under title 11 of the United States Code.". 
110 STAT. 2256 
PUBLIC LAW 104-193—AUG. 22, 1996 
11 use 523 note. 
(c) APPLICATION OF AMENDMENTS.—The amendments made by 
this section shall apply only with respect to cases commenced iinder 
title 11 of the United States Code after the date of the enactment 
of this Act. 
SEC. 375. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES. 
(a) CHILD SUPPORT ENFORCEMENT AGREEMENTS.—Section 454 
(42 U.S.C. 654), as amended by sections 301(b), 303(a), 312(b), 
313(a), 333, 343(b), 370(a)(2), and 371(b) of this Act, is amended— 
(1) by striking "and" at the end of paragraph (31); 
(2) by striking the period at the end of paragraph (32) 
and inserting "; and"; 
(3) by adding after paragraph (32) the following new para-
graph: 
"(33) provide that a State that receives funding pursuant 
to section 428 and that has within its borders Indian country 
(as defined in section 1151 of title 18, United States Code) 
may enter into cooperative agreements with an Indian tribe 
or tribal organization (as defined in subsections (e) and (1) 
of section 4 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b)), if the Indisui tribe or tribal 
organization demonstrates that such tribe or organization has 
an established tribal court system or a Court of Indian Offenses 
with the authority to establish paternity, establish, modify, 
and enforce support orders, and to enter support orders in 
accordance with child support guidelines established by such 
tribe or organization, under which the State and tribe or 
organization shall provide for the cooperative delivery of child 
support enforcement services in Indian country and for the 
forwarding of all funding collected pursuant to the fimctions 
performed by the tribe or organization to the State agency, 
or conversely, by the State agency to the tribe or organization, 
which shall distribute such fiinding in accordance with such 
agreement."; and 
(4) by adding at the end the following new sentence: "Noth-
ing in paragraph (33) shall void any provision of any cooperative 
agreement entered into before the date of the enactment of 
such paragraph, nor shall such paragraph deprive any State 
of jurisdiction over Indian country (as so defined) that is law-
ftiUy exercised under section 402 of the Act entitled 'An Act 
to prescribe penalties for certain acts of violence or intimidation, 
and for other purposes', approved April 11, 1968 (25 U.S.C. 
1322).". 
(b) DIRECT FEDERAL FUNDING TO INDIAN TRIBES AND TRIBAL 
ORGANIZATIONS.—Section 455 (42 U.S.C. 655) is amended by adding 
at the end the following new subsection: 
"(b) The Secretary may, in appropriate cases, make direct pay-
ments under this p£u-t to an Indian tribe or tribal organization 
which has an approved child support enforcement plan under this 
title. In determining whether such payments are appropriate, the 
Secretary shedl, at a minimum, consider whether services are being 
provided to eligible Indian recipients by the State agency through 
an agreement entered into pursuant to section 454(34).". 
(c) COOPERATIVE ENFORCEMENT AGREEMENTS.—Paragraph (7) 
of section 454 (42 U.S.C. 654) is amended by inserting "and Indian 
tribes or tribal organizations (as defined in subsections (e) and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2257 
(1) of section 4 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b))" after "law enforcement officials". 
Native 
(d) CONFORMING AMENDMENT.—Subsection (c) of section 428 Americans. 
(42 U.S.C. 628) is amended to read as follows: 
"(c) For purposes of this section, the terms 'Indian tribe' and 
'tribal organization' shall have the meanings given such terms 
by subsections (e) and (1) of section 4 of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 450b), respectively.". 
Subtitle H—Medical Support 
SEC. 381. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
SUPPORT ORDER. 
(a) IN GENERAL.—Section 609(a)(2)(B) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is 
amended— 
(1) by striking "issued by a court of competent jurisdiction"; 
(2) by striking the period at the end of clause (ii) and 
inserting a comma; and 
(3) by adding, after and below clause (ii), the following: 
"if such judgment, decree, or order (I) is issued by a court 
of competent jurisdiction or (II) is issued through an 
administrative process established under State law and 
has the force and effect of law imder applicable State 
law.". 
(b) EFFECTIVE DATE.-— 
29 use ii69 
(1) IN GENERAL.—The amendments made by this section note. 
shall take effect on the date of the enactment of this Act. 
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY i, 
1997.—^Any amendment to a plan required to be made by an 
amendment made by this section shall not be required to be 
made before the 1st plan year beginning on or after January 
1, 1997, if— 
(A) during the period after the date before the date 
of the enactment of this Act and before such 1st plan 
year, the plan is operated in accordance with the require-
ments of the amendments made by this section; and 
(B) such plan amendment applies retroactively to the 
period after the date before the date of the enactment 
of this Act and before such 1st plan year. 
A plan shall not be treated as failing to be operated in accord-
ance with the provisions of the plan merely because it operates 
in accordance with this paragraph. 
SEC. 382. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE. 
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317, 323, 365, 369, 372, and 373 of this Act, is amended by inserting 
after paragraph (18) the following new paragraph: 
"(19) HEALTH CARE COVERAGE.—Procedures under which 
all child support orders enforced pursuant to this part shall 
include a provision for the health care coverage of the child, 
and in the case in which a noncustodial parent provides such 
coverage and changes employment, and the new employer pro-
vides health care coverage, the State agency shall transfer 
notice of the provision to the employer, wWch notice shaJl 
110 STAT. 2258 
PUBLIC LAW 104-193—AUG. 22, 1996 
operate to enroll the child in the noncustodial parent's health 
plan, unless the noncustodial parent contests the notice.". 
Subtitle I—Enhancing Responsibility and 
Opportunity for Non-Residential Parents 
SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION PRO-
GRAMS. 
Part D of title IV (42 U.S.C. 651-669), as amended by section 
353 of this Act, is amended by adding at the end the following 
new section: 
42 use 669B. 
"SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION PRO-
GRAMS. 
"(a) IN GENERAL.—The Administration for Children and Fami-
lies shall make grants under this section to enable States to estab-
lish and administer programs to support and facilitate noncustodial 
parents' access to and visitation of their children, by means of 
activities including mediation (both volimtary and mandatory), 
counseling, education, development of parenting plans, visitation 
enforcement (including monitoring, supervision and neutral drop-
off and pickup), and development of guidelines for visitation and 
alternative custody arrangements. 
"(b) AMOUNT OF GRANT.—The amount of the grant to be made 
to a State under this section for a fiscal year shall be an amount 
equal to the lesser of— 
"(1) 90 percent of State expenditures during the fiscal 
year for activities described in subsection (a); or 
"(2) the allotment of the State under subsection (c) for 
the fiscal year. 
"(c) ALLOTMENTS TO STATES.— 
"(1) IN GENERAL.—The allotment of a State for a fiscal 
year is the amount that bears the same ratio to $10,000,000 
for grants under this section for the fiscal year as the number 
of children in the State living with only 1 biological parent 
bears to the total number of such children in all States. 
"(2) MINIMUM ALLOTMENT.—The Administration for Chil-
dren Eind Families shall adjust allotments to States under para-
graph (1) as necessary to ensure that no State is allotted 
less than— 
"(A) $50,000 for fiscal year 1997 or 1998; or 
"(B) $100,000 for any succeeding fiscal year. 
"(d) No SUPPLANTATION OF STATE EXPENDITURES FOR SIMILAR 
ACTIVITIES.—^A State to which a grant is made under this section 
may not use the grant to supplant expenditures by the State for 
activities specified in subsection (a), but shall use the grant to 
supplement such expenditures at a level at least equal to the 
level of such expenditures for fiscal year 1995. 
"(e) STATE ADMINISTRATION.—Each State to which a grant is 
made under this section— 
"(1) may administer State programs funded with the grant, 
directly or through grants to or contracts with courts, local 
public agencies, or nonprofit private entities; 
"(2) shall not be required to operate such programs on 
a statewide basis; and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2259 
"(3) shall monitor, evaluate, and report on such programs 
in accordance with regulations prescribed by the Secretary.". 
Subtitle J—Effective Dates and 
Conforming Amendments 
SEC. 395. EFFECTIVE DATES AND CONFORMING AMENDMENTS. 
(a) IN GENERAL,—Except as otherwise specifically provided (but 
42 use 654 note. 
subject to subsections (b) and (c))— 
(1) the provisions of this title requiring the enactment 
or amendment of State laws under section 466 of the Social 
Security Act, or revision of State plans under section 454 of 
such Act, shall be effective with respect to periods beginning 
on and after October 1, 1996; and 
(2) all other pro\dsions of this title shall become effective 
42 USC 654 note. 
upon the date of the enactment of this Act. 
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The provisions 
of this title shall become effective with respect to a State on the 
later of— 
(1) the date specified in this title, or 
(2) the effective date of laws enacted by the legislature 
of such State implementing such provisions, 
but in no event later than the 1st day of the 1st calendar quarter 
beginning after the close of the 1st regular session of the State 
legislature that begins after the date of the enactment of this 
Act. For purposes of the previous sentence, in the case of a State 
that has a 2-year legislative session, each year of such session 
shall be deemed to be a separate regular session of the State 
legislature. 
(c) GRACE PERIOD FOR STATE CONSTITUTIONAL AMENDMENT.— 42 use 654 note. 
A State shall not be found out of compliance with any requirement 
enacted by this title if the State is unable to so comply without 
amending the State constitution until the earlier of— 
(1) 1 year after the effective date of the necessary State 
constitutional amendment; or 
(2) 5 years after the date of the enactment of this Act. 
(d) CONFORMING AMENDMENTS.— 
(1) The following provisions are amended by striking 
"absent" each place it appears and inserting "noncustodial": 
(A) Section 451 (42 U.S.C. 651). 
(B) Subsections (a)(1), (a)(8), (a)(10)(E), (a)(10)(F), (f), 
and (h) of section 452 (42 U.S.C. 652). 
(C) Section 453(f) (42 U.S.C. 653(f)). 
(D) Paragraphs (8), (13), and (21)(A) of section 454 
(42 U.S.C. 654). 
(E) Section 455(e)(1) (42 U.S.C. 655(e)(1)). 
(F) Section 458(a) (42 U.S.C. 658(a)). 
(G) Subsections (a), (b), and (c) of section 463 
(42 U.S.C. 663). 
(H) 
Subsections 
(a)(3)(A), 
(a)(3)(C), 
(a)(6), 
and 
(a)(8)(B)(ii), the last sentence of subsection (a), and sub-
sections (b)(1), (b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i), (b)(9), and 
(e) of section 466 (42 U.S.C. 666). 
(2) The following provisions are amended by striking "an 
absent" each place it appears and inserting "a noncustodial": 
110 STAT. 2260 
PUBLIC LAW 104-193—AUG. 22, 1996 
(A) 
Paragraphs 
(2) 
and 
(3) 
of 
section 
453(c) 
(42 U.S.C. 653(c)). 
(B) Subparagraphs (B) and (C) of section 454(9) (42 
U.S.C. 654(9)). 
(C) Section 456(a)(3) (42 U.S.C. 656(a)(3)). 
(D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i), (b)(3)(A), 
and (b)(3)(B) of section 466 (42 U.S.C. 666). 
(E) Paragraphs (2) and (4) of section 469(b) (42 U.S.C. 
669(b)). 
TITLE IV—RESTRICTING WELFARE AND 
PUBLIC BENEFITS FOR ALIENS 
8 use 1601. 
SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE 
AND IMMIGRATION. 
The Congress makes the following statements concerning 
national policy with respect to welfare £ind immigration: 
(1) Self-sufficiency has been a basic principle of United 
States immigration law since this countr^s earliest immigra-
tion statutes. 
(2) It continues to be the immigration policy of the United 
States that— 
(A) aliens within the Nation's borders not depend on 
public resources to meet their needs, but rather rely 
on their own capabilities and the resources of their families, 
their sponsors, and private organizations, and 
(B) the availability of public benefits not constitute 
an incentive for immigration to the United States. 
(3) Despite the principle of self-sufficiency, aliens have 
been applying for £ind receiving public benefits fi'om Federal, 
State, and local governments at increasing rates. 
(4) Current eligibility rules for public assist£ince and 
unenforceable financial support agreements have proved wholly 
incapable of assuring that individual aliens not burden the 
public benefits system. 
(5) It is a compelling government interest to enact new 
rules for eligibility and sponsorship agreements in order to 
assure that aliens be self-reliant in accordance with national 
immigration policy. 
(6) It is a compelling government interest to remove the 
incentive for illegal immigration provided by the availability 
of public benefits. 
(7) With respect to the State authority to make determina-
tions concerning the eligibility of qualified aliens for public 
benefits in this title, a State that chooses to follow the Federal 
classification in determining the eligibility of such aliens for 
public assistance shall be considered to have chosen the least 
restrictive means available for achieving the compelling govern-
mental interest of assuring that aliens be self-reliant in accord-
ance with national immigration policy. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2261 
Subtitle A—Eligibility for Federal Benefits 
SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR 8 USC 1611. 
FEDERAL PUBLIC BENEFITS. 
(a) IN GENERAL.—Notwithstanding any other provision of law 
and except as provided in subsection (b), an aUen who is not 
a quaUfied alien (as defined in section 431) is not eligible for 
any Federal public benefit (as defined in subsection (c)). 
(b) EXCEPTIONS.— 
(1) Subsection (a) shall not apply with respect to the fol-
lowing Federal public benefits: 
(A) Medical assistsince under title XIX of the Social 
Security Act (or any successor program to such title) for 
care and services that are necessary for the treatment 
of an emergency medical condition (as defined in section 
1903(v)(3) of such Act) of the alien involved and are not 
related to an organ transplant procedure, if the alien 
involved otherwise meets the eligibility requirements for 
medical assistance under the State plan approved luider 
such title (other than the requirement of the receipt of 
aid or assistance under title IV of such Act, supplemental 
security income benefits under title XVI of such Act, or 
a State supplementary payment). 
(B) Short-term, non-cash, in-kind emergency disaster 
relief. 
(C) Public health assistance (not including any assist-
ance under title XIX of the Social Security Act) for 
immunizations with respect to immunizable diseases and 
for testing and treatment of symptoms of communicable 
diseases whether or not such symptoms are caused by 
a communicable disease. 
(D) Programs, services, or assistance (such as soup 
kitchens, crisis counseling and intervention, and short-term 
shelter) specified by the Attorney General, in the Attorney 
General's sole and unreviewable discretion after consulta-
tion with appropriate Federal agencies and departments, 
which (i) deliver in-kind services at the community level, 
including through public or private nonprofit agencies; (ii) 
do not condition the provision of assistance, the amount 
of assistance provided, or the cost of assistance provided 
on the individual recipient's income or resources; and (iii) 
are necessary for the protection of life or safety. 
(E) Programs for housing or community development 
assistance or financial assistance administered by the Sec-
retary of Housing and Urban Development, £iny program 
under title V of the Housing Act of 1949, or any assistance 
imder section 306C of the Consolidated Farm and Rural 
Development Act, to the extent that the alien is receiving 
such a benefit on the date of the enactment of this Act. 
(2) Subsection (a) shall not apply to any benefit payable 
under title II of the Social Security Act to an alien who is 
lawfully present in the United States as determined by the 
Attorney GenersQ, to any benefit if nonpayment of such benefit 
would contravene an international agreement described in sec-
tion 233 of the Social Security Act, to any benefit if nonpayment 
would be contrary to section 202(t) of the Social Security Act, 
110 STAT. 2262 
PUBLIC LAW 104-193—AUG. 22, 1996 
or to any benefit payable under title II of the Social Security 
Act to which entitlement is based on an application filed in 
or before the month in which this Act becomes law. 
(c) FEDERAL PUBLIC BENEFIT DEFINED.— 
(1) Except as provided in paragraph (2), for purposes of 
this title the term "Federal public benefit" means— 
(A) any grant, contract, loan, professional license, or 
commercial license provided by an agency of the United 
States or by appropriated funds of the United States; and 
(B) any retirement, welfare, health, disability, public 
or assisted housing, postsecondary education, food assist-
ance, unemplo5nnent benefit, or any other similar benefit 
for which pa3anents or assistance are provided to an 
individual, household, or family eligibility unit by an 
agency of the United States or by appropriated funds of 
the United States. 
(2) Such term shall not apply— 
(A) to any contract, professional license, or commercial 
license for a nonimmigrant whose visa for entry is related 
to such emplo3anent in the United States; or 
(B) with respect to benefits for an alien who as a 
work authorized nonimmigreuit or as an alien lawfully 
admitted for permanent residence under the Immigration 
and Nationality Act qualified for such benefits and for 
whom the United States under reciprocal treaty agree-
ments is required to pay benefits, as determined by the 
Attorney General, after consultation with the Secretary 
of State. 
8 use 1612. 
SEC. 402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN 
FEDERAL PROGRAMS. 
(a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL PROGRAMS.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law and except as provided in paragraph (2), an alien who 
is a qualified alien (as defined in section 431) is not eligible 
for any specified Federal program (as defined in para-
graph (3)). 
(2) EXCEPTIONS.— 
(A) 
TIME-LIMITED 
EXCEPTION 
FOR REFUGEES AND 
ASYLEES.—Paragraph (1) shall not apply to an alien until 
5 years after the date— 
(i) an alien is admitted to the United States as 
a refugee under section 207 of the Immigration and 
Nationality Act; 
(ii) an alien is granted asylum under section 208 
of such Act; or 
(iii) an alien's deportation is withheld under sec-
tion 243(h) of such Act. 
(B) CERTAIN PERMANENT RESIDENT ALIENS.—Paragraph 
(1) shall not apply to an alien who— 
(i) is lawfully admitted to the United States for 
permanent residence under the Immigration and 
Nationality Act; and 
(ii)(I) has worked 40 qusdifying quarters of cov-
erage as defined under title II of the Social Security 
Act or can be credited with such qualifying quarters 
as provided imder section 435, and (II) in the case 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2263 
of any such qualifying quarter creditable for any period 
beginning after December 31, 1996, did not receive 
any Federal means-tested public benefit (as provided 
under section 403) during any such period. 
(C) VETERAN AND ACTIVE DUTY EXCEPTION.—Paragraph 
(1) shall not apply to an gJien who is lawfully residing 
in any State and is— 
(i) a veteran (as defined in section 101 of title 
38, United States Code) with a dischsirge characterized 
as an honorable discharge and not on account of 
£ilienage, 
(ii) on active duty (other than active duty for 
training) in the Armed Forces of the United States, 
or 
(iii) the spouse or unmarried dependent child of 
an individual described in clause (i) or (ii). 
(D) 
TRANSITION FOR ALIENS CURRENTLY RECEIVING 
BENEFITS.— 
(i) SSL— 
(I) IN GENERAL.—^With respect to the specified 
Federal program described in paragraph (3)(A), 
during the period beginning on the date of the 
enactment of this Act and ending on the date 
which is 1 year after such date of enactment, the 
Commissioner of Social Security shall redetermine 
the eligibiUty of any individual who is receiving 
benefits under such program as of the date of 
the enactment of this Act and whose eligibility 
for such benefits may terminate by reason of the 
provisions of this subsection. 
(II) 
REDETERMINATION 
CRITERIA.— 
With 
respect to any redetermination under subclause 
(I), the Commissioner of Social Security shall apply 
the eligibility criteria for new applicants for bene-
fits under such program. 
(III) 
GRANDFATHER PROVISION.—The provi-
sions of this subsection and the redetermination 
under subclause (I), shall only apply with respect 
to the benefits of an individual described in sub-
clause (I) for months beginning on or after the 
date of the redetermination with respect to such 
individual. 
(IV) NOTICE.—Not later than March 31, 1997, 
the Commissioner of Socied Security shall notify 
an individual described in subclause (I) of the 
provisions of this clause. 
(ii) FOOD STAMPS.— 
(I) IN GENERAL.—^With respect to the specified 
Federal program described in paragraph (3)(B), 
during the period beginning on the date of enact-
ment of this Act and ending on the date which 
is 1 year after the date of enactment, the State 
agency shall, at the time of the recertification, 
recertify the eligibility of any individual who is 
receiving benefits under such program as of the 
date of enactment of this Act and whose eligibility 
110 STAT. 2264 
PUBLIC LAW 104-193—AUG. 22, 1996 
for such benefits may terminate by reason of the 
provisions of this subsection. 
(II) RECERTIFICATION CRITERIA.—With respect 
to any recertification under subclause (I), the State 
agency shall apply the eligibility criteria for 
appHcants for benefits under such program. 
(III) 
GRANDFATHER 
PROVISION.—The provi-
sions of this subsection and the recertification 
under subclause (I) shall only apply with respect 
to the eligibility of an alien for a program for 
months beginning on or after the date of recertifi-
cation, if on the date of enactment of this Act 
the alien is lawfully residing in any State and 
is receiving benefits under such program on such 
date of enactment. 
(3) SPECIFIED FEDERAL PROGRAM DEFINED.—For purposes 
of this title, the term "specified Federal program" means 
any of the following: 
(A) SSI.—The supplemental security income program 
under title XVI of the Social Security Act, including supple-
mentary payments pursuant to £in agreement for Federal 
administration under section 1616(a) of the Social Security 
Act and payments pursuant to an agreement entered into 
under section 212(b) of Public Law 93-66. 
(B) FOOD STAMPS.—^The food stamp program as defined 
in section 3(h) of the Food Stamp Act of 1977. 
(b) 
LIMITED 
ELIGIBILITY 
FOR 
DESIGNATED 
FEDERAL 
PROGRAMS.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law and except as provided in section 403 and paragraph (2), 
a State is authorized to determine the eligibility of an alien 
who is a qualified alien (as defined in section 431) for £iny 
designated Federal program (as defined in paragraph (3)). 
(2) EXCEPTIONS.—Qualified aliens under this paragraph 
shall be eligible for any designated Federal program. 
(A) 
TIME-LIMITED 
EXCEPTION 
FOR 
REFUGEES 
AND 
ASYLEES.— 
(i) An alien who is admitted to the United States 
as a refugee under section 207 of the Immigration 
and Nationality Act until 5 years after the date of 
an alien's entry into the United States. 
(ii) An alien who is granted asylum under section 
208 of such Act until 5 years after the date of such 
grant of asylum. 
(iii) An alien whose deportation is being withheld 
under section 243(h) of such Act until 5 years after 
such withholding. 
(B) 
CERTAIN 
PERMANENT 
RESIDENT 
ALIENS.—An 
alien who— 
(i) is lawfully admitted to the United States for 
permanent residence under the Immigration 
and 
Nationality Act; and 
(ii)(I) has worked 40 qualifying quarters of cov-
erage as defined under title II of the Social Security 
Act or can be credited with such qualifying quarters 
as provided under section 435, and (II) in the case 
of any such qualifying quarter creditable for any period 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2265 
beginning after December 31, 1996, did not receive 
any Federal means-tested public benefit (as provided 
under section 403) during any such period. 
(C) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien 
who is lawfully residing in any State and is— 
(i) a veteran (as defined in section 101 of title 
38, United States Code) with a discharge characterized 
as an honorable discharge and not on account of 
alienage, 
(ii) on active duty (other than active duty for 
training) in the Armed Forces of the United States, 
or 
(iii) the spouse or unmarried dependent child of 
an individual described in clause (i) or (ii). 
(D) 
TRANSITION FOR THOSE 
CURRENTLY 
RECEIVING 
BENEFITS.—An alien who on the date of the enactment 
of this Act is lawfully residing in any State and is receiving 
benefits under such program on the date of the enactment 
of this Act shall continue to be eligible to receive such 
benefits until January 1,1997. 
(3) DESIGNATED FEDERAL PROGRAM DEFINED.—For purposes 
of this title, the term "designated Federal program" means 
any of the following: 
(A) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES.—The 
program of block grants to States for temporary assistance 
for needy families under part A of title IV of the Social 
Security Act. 
(B) SOCIAL SERVICES BLOCK GRANT.—The program of 
block grants to States for social services under title XX 
of the Social Security Act. 
(C) MEDICAID.—^A State plan approved under title XIX 
of the Social Security Act, other than medical assistance 
described in section 401(b)(1)(A). 
SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR 
8 USC 1613. 
FEDERAL MEANS-TESTED PUBLIC BENEFIT. 
(a) IN GENERAL.—Notwithstanding any other provision of law 
and except as provided in subsections (b), (c), £ind (d), an alien 
who is a qualified alien (as defined in section 431) and who enters 
the United States on or after the date of the enactment of this 
Act is not eligible for any Federal means-tested public benefit 
for a period of 5 years beginning on the date of the alien's entry 
into the United States with a status within the meaning of the 
term "qualified alien". 
(b) EXCEPTIONS.—The limitation under subsection (a) shall not 
apply to the following aliens: 
(1) EXCEPTION FOR REFUGEES AND ASYLEES .— 
(A) An alien who is admitted to the United States 
as a refugee under section 207 of the Immigration and 
Nationality Act. 
(B) An alien who is granted asylum under section 
208 of such Act. 
(C) An alien whose deportation is being withheld imder 
section 243(h) of such Act. 
(2) VETERAN AND ACTIVE DUTY EXCEPTION.—An alien who 
is lawfully residing in any State and is— 
110 STAT. 2266 
PUBLIC LAW 104-193—AUG. 22, 1996 
(A) a veteran (as defined in section 101 of title 38, 
United States Code) with a discharge characterized as an 
honorable discharge and not on account of alienage, 
(B) on active duty (other than active duty for training) 
in the Armed Forces of the United States, or 
(C) the spouse or immarried dependent child of £in 
individual described in subparagraph (A) or (B). 
(c) 
APPLICATION OF TERM FEDERAL MEANS-TESTED PUBLIC 
BENEFIT.— 
(1) The limitation under subsection (a) shall not apply 
to assistance or benefits under paragraph (2). 
(2) Assistance and benefits under this paragraph are as 
follows: 
(A) Medical assistance described in section 401(b)(1)(A). 
(B) Short-term, non-cash, in-kind emergency disaster 
relief. 
(C) Assistance or benefits under the Nationsd School 
Lunch Act. 
(D) Assistance or benefits under the Child Nutrition 
Act of 1966. 
(E) Public health assistance (not including any assist-
ance imder title XIX of the Social Security Act) for 
immunizations with respect to immunizable diseases and 
for testing and treatment of symptoms of communicable 
diseases whether or not such s3nnptoms are caused by 
a commiuiicable disease. 
(F) Payments for foster care and adoption assistance 
xinder parts B and E of title IV of the Social Security 
Act for a parent or a child who would, in the absence 
of subsection (a), be eligible to have such pajmients made 
on the child's behalf imder such part, but only if the foster 
or adoptive parent (or parents) of such child is a qualified 
alien (as defined in section 431). 
(G) Programs, services, or assistance (such as soup 
kitchens, crisis counseling and intervention, and short-term 
shelter) specified by the Attorney General, in the Attorney 
General's sole and luireviewable discretion after consulta-
tion with appropriate Federal agencies and departments, 
which (i) deliver in-kind services at the community level, 
including through public or private nonprofit agencies; (ii) 
do not condition the provision of assistance, the amount 
of assistance provided, or the cost of assistance provided 
on the individual recipient's income or resources; and (iii) 
are necessary for the protection of life or safety. 
(H) Programs of student assistance under titles IV, 
V, IX, and X of the Higher Education Act of 1965, and 
titles III, VII, and VIII of the PubHc Health Service Act. 
(I) Means-tested programs imder the Elementary and 
Secondary Education Act of 1965. 
(J) Benefits under the Head Start Act. 
(K) Benefits under the Job Training Partnership Act. 
(d) SPECIAL RULE FOR REFUGEE AND ENTRANT ASSISTANCE FOR 
CUBAN AND HAITL\N ENTRANTS.—The limitation imder subsection 
(a) shall not apply to refiigee and entrant assistance activities, 
authorized by title IV of the Immigration £ind Nationality Act 
and section 501 of the Refiigee Education Assistance Act of 1980, 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2267 
for Cuban eind Haitian entrants as defined in section 501(e)(2) 
of the Refugee Education Assistance Act of 1980. 
SEC. 404. NOTIFICATION AND INFORMATION REPORTING. 
8 USC 1614. 
(a) NOTIFICATION.—Each Federal agency that administers a 
program to which section 401, 402, or 403 appHes shall, directly 
or through the States, post information and provide general notifica-
tion to the public and to program recipients of the changes regarding 
eligibility for any such program pursuant to this subtitle. 
(b) INFORMATION REPORTING UNDER TITLE IV OF THE SOCIAL 
SECURITY ACT.—Part A of title IV of the Social Security Act is 
amended by inserting the following new section after section 411: 
"SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION. 
42 USC 611a. 
"Each State to which a grant is made under section 403 shall, 
at least 4 times annually and upon request of the Immigration 
£ind Naturalization Service, furnish the Immigration and Natu-
ralization Service with the name and address of, £ind other identify-
ing information on, any individual who the State knows is unlaw-
fully in the United States.". 
(c) SSL—Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
amended— 
(1) by redesignating the paragraphs (6) and (7) inserted 
by sections 206(d)(2) and 206(f)(1) of the Social Security 
Independence and Programs Improvement Act of 1994 (F\iblic 
Law 103-296; 108 Stat. 1514, 1515) as paragraphs (7) and 
(8), respectively; and 
(2) by adding at the end the following new paragraph: 
"(9) Notwithstanding any other provision of law, the Commis-
sioner shall, at least 4 times annually and upon request of the 
Immigration and Naturalization Service (hereafter in this para-
graph referred to as the 'Service'), furnish the Service with the 
name and address of, and other identifying information on, any 
individual who the Commissioner knows is unlawfully in the United 
States, and shall ensure that each agreement entered into imder 
section 1616(a) with a State provides that the State shall furnish 
such information at such times with respect to any individual 
who the State knows is unlawfully in the United States.". 
(d) INFORMATION REPORTING FOR HOUSING PROGRAMS.—Title 
I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new section: 
"SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND 
42 USC 1437y. 
OTHER AGENCIES. 
"Notwithstanding any other provision of law, the Secretary 
shall, at least 4 times annually and upon request of the Immigration 
and Naturalization Service (hereafter in this section referred to 
as the 'Service'), furnish the Service with the name and address 
of, and other identifying information on, any individual who the 
Secretary knows is unlawfully in the United States, and shall 
ensure that each contract for assistance entered into under section 
6 or 8 of this Act with a public housing agency provides that 
the public housing agency shall furnish such information at such 
times with respect to any individual who the public housing agency 
knows is unlawfully in the United States.". 
110 STAT. 2268 
PUBLIC LAW 104-193—AUG. 22, 1996 
Subtitle B—Eligibility for State and Local 
Public Benefits Programs 
8 use 1621. 
SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR NON-
IMMIGRANTS INELIGIBLE FOR STATE AND LOCAL PUB-
LIC BENEFITS. 
(a) IN GENERAL.—Notwithstanding any other provision of law 
and except as provided in subsections (b) and (d), an aHen who 
is not— 
(1) a quaUfied alien (as defined in section 431), 
(2) a nonimmigrant imder the Immigration and Nationality 
Act, or 
(3) an alien who is paroled into the United States under 
section 212(d)(5) of such Act for less than one year, 
is not eligible for any State or local public benefit (as defined 
in subsection (c)). 
(b) EXCEPTIONS.—Subsection (a) shall not apply with respect 
to the following State or local public benefits: 
(1) Assistance for health care items and services that are 
necessary for the treatment of an emergency medical condition 
(as defined in section 1903(v)(3) of the Social Security Act) 
of the alien involved and are not related to an organ transplant 
procedure. 
(2) Short-term, non-cash, in-kind emergency disaster relief. 
(3) Public health assistance for immunizations with respect 
to immunizable diseases and for testing and treatment of S3anp-
toms of communicable diseases whether or not such S3anptoms 
are caused by a communicable disease. 
(4) Programs, services, or assistance (such as soup kitchens, 
crisis counseling and intervention, and short-term shelter) 
specified by the Attorney General, in the Attorney General's 
sole and unreviewable discretion after consultation with appro-
priate Federal agencies and departments, which (A) deliver 
in-kind services at the community level, including through pub-
lic or private nonprofit agencies; (B) do not condition the provi-
sion of assistance, the amount of assistance provided, or the 
cost of assistance provided on the individual recipient's income 
or resources; and (C) are necessary for the protection of life 
or safety. 
(c) STATE OR LOCAL PUBLIC BENEFIT DEFINED.— 
(1) Except as provided in paragraphs (2) and (3), for pur-
poses of this subtitle the term "State or local public benefit" 
means— 
(A) any grant, contract, loan, professional license, or 
commercial 
license 
provided 
by 
an 
agency 
of 
a 
State or local government or by appropriated funds of a 
State or local government; and 
(B) any retirement, welfare, health, disability, public 
or assisted housing, postsecondary education, food assist-
ance, unemplojnnent benefit, or any other similar benefit 
for which pa3mients or assistance are provided to an 
individual, household, or family eligibility unit by an 
agency of a State or local government or by appropriated 
funds of a State or local government. 
(2) Such term shall not apply— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2269 
(A) to any contract, professional license, or commercial 
license for a nonimmigrant whose visa for entry is related 
to such emplo3anent in the United States; or 
(B) with respect to benefits for an alien who as a 
work authorized nonimmigrant or as an aUen lawfully 
admitted for permanent residence imder the Immigration 
and Nationality Act qualified for such benefits and for 
whom the United States under reciprocal treaty agree-
ments is required to pay benefits, as determined by the 
Secretary of State, after consultation with the Attorney 
General. 
(3) Such term does not include any Federal public benefit 
imder section 4001(c). 
(d) STATE AUTHORITY TO PROVIDE FOR ELIGIBILITY OF ILLEGAL 
ALIENS FOR STATE AND LOCAL PUBLIC BENEFITS.—A State may 
provide that an alien who is not lawfully present in the United 
States is eligible for any State or local public benefit for which 
such alien would otherwise be ineligible under subsection (a) only 
through the enactment of a State law after the date of the enact-
ment of this Act which affirmatively provides for such eligibility. 
SEC. 412. STATE AUTHORITY TO LIMIT EUGIBILITY OF QUALIFIED 8 USC 1622. 
ALIENS FOR STATE PUBUC BENEFITS. 
(a) IN GENERAL.—Notwithstanding any other provision of law 
and except as provided in subsection (b), a State is authorized 
to determine the eligibility for any State public benefits of an 
alien who is a qualified alien (as aefined in section 431), a non-
immigrant under the Immigration £ind Nationality Act, or an alien 
who is paroled into the United States under section 212(d)(5) of 
such Act for less than one year. 
(b) EXCEPTIONS.—Qualified aliens under this subsection shall 
be eligible for any State public benefits. 
(1) TIME-LIMITED EXCEPTION FOR REFUGEES AND ASYLEES.— 
(A) An alien who is admitted to the United States 
as a refugee imder section 207 of the Immigration and 
Nationality Act until 5 years after the date of an alien's 
entry into the United States. 
(B) An alien who is granted asylum under section 
208 of such Act until 5 years after the date of such grant 
of asylum. 
(C) An alien whose deportation is being withheld under 
section 243(h) of such Act imtil 5 years after such with-
holding. 
(2) CERTAIN PERMANENT RESIDENT ALIENS.—An alien who— 
(A) is lawfully admitted to the United States for perma-
nent residence under the Immigration £ind Nationality 
Act; and 
(B)(i) has worked 40 qualifying quarters of coverage 
as defined under title II of the Social Security Act or 
can be credited with such qualifying quarters as provided 
under section 435, and (ii) in the case of any such qualifying 
quarter creditable for any period beginning after December 
31, 1996, did not receive any Federal means-tested public 
benefit (as provided under section 403) during £iny such 
period. 
(3) VETERAN AND ACTIVE DUTY EXCEPTION.—^An alien who 
is lawfully residing in any State and is— 
110 STAT. 2270 
PUBLIC LAW 104-193—AUG. 22, 1996 
(A) a veteran (as defined in section 101 of title 38, 
United States Code) with a discharge characterized as an 
honorable discharge and not on account of alienage, 
(B) on active duty (other than active duty for training) 
in the Armed Forces of the United States, or 
(C) the spouse or unmarried dependent child of an 
individual described in subparagraph (A) or (B). 
(4) TRANSITION FOR THOSE CURRENTLY RECEIVING BENE-
FITS.—^An alien who on the date of the enactment of this Act 
is lawfully residing in any State and is receiving benefits on 
the date of the enactment of this Act shall continue to be 
eligible to receive such benefits until January 1, 1997. 
Subtitle C—^Attribution of Income and 
Affidavits of Support 
8 use 1631. 
SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND 
RESOURCES TO ALIEN. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
in determining the eligibility and the amount of benefits of an 
alien for any Federal means-tested public benefits program (as 
provided under section 403), the income and resources of the alien 
shall be deemed to include the following: 
(1) The income and resources of any person who executed 
an affidavit of support pursuant to section 213 
A of the Immigra-
tion and Nationality Act (as added by section 423) on behalf 
of such Edien. 
(2) The income and resources of the spouse (if any) of 
the person. 
(b) DURATION OF ATTRIBUTION PERIOD.—Subsection (a) shall 
apply with respect to an alien until such time as the alien— 
(1) achieves United States citizenship through naturaliza-
tion pursuant to chapter 2 of title III of the Immigration and 
Nationality Act; or 
(2)(A) has worked 40 qualifying quarters of coverage as 
defined under title II of the Social Security Act or can be 
credited with such qualifying quarters as provided under section 
435, and (B) in the case of any such qualifying quarter cred-
itable for any period beginning after December 31, 1996, did 
not receive any Federal means-tested public benefit (as provided 
under section 403) during any such period. 
(c) REVIEW OF INCOME AND RESOURCES OF ALIEN UPON RE-
APPLICATION.—Whenever an alien is required to reapply for benefits 
imder any Federal means-tested public benefits program, the 
applicable agency shall review the income and resources attributed 
to the alien under subsection (a). 
(d) APPLICATION.— 
(1) If on the date of the enactment of this Act, a Federal 
means-tested public benefits program attributes a sponsor's 
income and resources to an alien in determining the alien's 
eligibility and the amount of benefits for an alien, this section 
shall apply to any such determination beginning on the day 
after the date of the enactment of this Act. 
(2) If on the date of the enactment of this Act, a Federal 
means-tested public benefits program does not attribute a spon-
sor's income and resources to an alien in determining the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2271 
alien's eligibility and the amount of benefits for an alien, this 
section shall apply to any such determination beginning 180 
days srfter the date of the enactment of this Act. 
SEC. 422. AUTHORITY FOR STATUS TO PROVTOE FOR ATTRIBUTION 
8 USC 1632. 
OF SPONSORS INCOME AND RESOURCES TO THE ALIEN 
WITH RESPECT TO STATE PROGRAMS. 
(a) OPTIONAL APPLICATION TO STATE PROGRAMS.—Except as 
provided in subsection (b), in determining the eligibility and the 
amount of benefits of an alien for any State public benefits (as 
defined in section 412(c)), the State or political subdivision that 
offers the benefits is authorized to provide that the income and 
resources of the alien shall be deemed to include— 
(1) the income and resources of any individual who executed 
an affidavit of support pursuant to section 213A of the Immigra-
tion and Nationality Act (as added by section 423) on behalf 
of such alien, and 
(2) the income and resources of the spouse (if any) of 
the individual. 
(b) EXCEPTIONS.—Subsection (a) shall not apply with respect 
to the following State public benefits: 
(1) Assistance described in section 411(b)(1). 
(2) Short-term, non-cash, in-kind emergency disaster relief. 
(3) Programs comparable to assistance or benefits under 
the National School Lunch Act. 
(4) Programs comparable to assistance or benefits under 
the Child Nutrition Act of 1966. 
(5) Public health assistance for immunizations with respect 
to immunizable diseases and for testing and treatment of symp-
toms of communicable diseases whether or not such symptoms 
are caused by a communicable disease. 
(6) Payments for foster care and adoption assistance. 
(7) Programs, services, or assistance (such as soup kitchens, 
crisis counseling and intervention, and short-term shelter) 
specified by the Attorney General of a State, after consultation 
with appropriate agencies and departments, which (A) deliver 
in-kind services at the community level, including through pub-
lic or private nonprofit agencies; (B) do not condition the provi-
sion of assistance, the amount of assistance provided, or 
the cost of assistance provided on the individual recipient's 
income or resources; and (C) are necessary for the protection 
of life or safety. 
SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT. 
(a) IN GENERAL.—Title II of the Immigration and Nationality 
Act is amended by inserting after section 213 the following new 
section: 
"REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT 
" S E C 213A. (a) ENFORCEABILITY.—(1) No affidavit of support 8USCii83a. 
may be accepted by the Attorney General or by £iny consular officer 
to establish that an alien is not excludable as a public charge 
under section 212(a)(4) unless such affidavit is executed as a 
contract— 
"(A) which is legally enforceable against the sponsor by 
the sponsored alien, the Federal Government, and by any State 
(or any political subdivision of such State) which provides any 
110 STAT. 2272 
PUBLIC LAW 104-193—AUG. 22, 1996 
means-tested public benefits program, but not later than 10 
years after the alien last receives any such benefit; 
"(B) in which the sponsor agrees to financially support 
the alien, so that the alien will not become a public 
charge; and 
"(C) in which the sponsor agrees to submit to the jurisdic-
tion of any Federal or State court for the purpose of actions 
brought under subsection (e)(2). 
"(2) A contract under paragraph (1) shall be enforceable with 
respect to benefits provided to the alien until such time as the 
alien achieves United States citizenship through naturalization 
pursuant to chapter 2 of title IIL 
"(b) FORMS.—Not later than 90 days after the date of enactment 
of this section, the Attorney General, in consultation with the 
Secretary of State and the Secretary of Health and Human Services, 
shall formulate an affidavit of support consistent with the provisions 
of this section. 
"(c) REMEDIES.—Remedies available to enforce an affidavit of 
support under this section include any or all of the remedies 
described in section 3201, 3203, 3204, or 3205 of title 28, United 
States Code, as well as an order for specific performance and 
payment of legal fees and other costs of collection, and include 
corresponding remedies available under State law. A Federal agency 
may seek to collect amounts owed under this section in accordance 
with the provisions of subchapter II of chapter 37 of title 31, 
United States Code. 
"(d) NOTIFICATION OF CHANGE OF ADDRESS.— 
"(1) IN GENERAL.—The sponsor shall notify the Attorney 
General and the State in which the sponsored alien is currently 
resident within 30 days of any change of address of the sponsor 
during the period specified in subsection (a)(2). 
"(2) PENALTY.—^Any person subject to the requirement of 
paragraph (1) who fails to satisfy such requirement shsdl be 
subject to a civil penalty of— 
"(A) not less than $250 or more than $2,000, or 
"(B) if such failure occurs with knowledge that the 
alien has received any means-tested public benefit, not 
less than $2,000 or more than $5,000. 
"(e) REIMBURSEMENT OF GOVERNMENT EXPENSES.—(1)(A) Upon 
notification that a sponsored alien, has received any benefit under 
any means-tested public benefits program, the appropriate Federal, 
State, or local official shall request reimbursement by the sponsor 
in the amount of such assistance. 
"(B) The Attorney General, in consultation with the Secretary 
of Health and Human Services, shall prescribe such regulations 
as may be necessary to carry out subparagraph (A). 
"(2) If within 45 days after requesting reimbursement, the 
appropriate Federal, State, or locsd agency has not received a 
response from the sponsor indicating a willingness to commence 
pa5anents, an action may be brought against the sponsor pursuant 
to the affidavit of support. 
"(3) If the sponsor fails to abide by the repajonent terms estab-
lished by such agency, the agency may, within 60 days of such 
failure, bring an action against the sponsor pursuant to the affidavit 
of support. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2273 
"(4) No cause of action may be brought under this subsection 
later than 10 years after the aUen last received any benefit under 
any means-tested public benefits program. 
"(5) If, pursuant to the terms of this subsection, a Federal, 
State, or local agency requests reimbursement fi*om the sponsor 
in the amount of assistance provided, or brings an action against 
the sponsor pursuant to the affidavit of support, the appropriate 
agency may appoint or hire an individual or other person to act 
on behalf of such agency acting under the authority of law for 
purposes of collecting any moneys owed. Nothing in this subsection 
shall preclude any appropriate Federal, State, or local agency fi-om 
directly requesting reimbursement fi-om a sponsor for the amount 
of assistance provided, or from bringing an action against a sponsor 
pursuant to £in affidavit of support. 
"(f) DEFINITIONS.—For the purposes of this section— 
"(1) 
SPONSOR.—^The term 
'sponsor' 
means 
an 
indi-
vidual who— 
"(A) is a citizen or national of the United States or 
an alien who is lawfully admitted to the United States 
for permanent residence; 
"(B) is 18 yeai's of age or over; 
"(C) is domiciled in any of the 50 States or the District 
of Columbia; and 
"(D) is the person petitioning for the admission of 
the £ilien imder section 204.". 
(b) CLERICAL AMENDMENT.—The table of contents of such Act 
is amended by inserting after the item relating to section 213 
the following: 
"Sec. 213A. Requirements for sponsor's affidavit of support.". 
(c) EFFECTIVE DATE.—Subsection (a) of section 213A of the 
Immigration and Nationality Act, as inserted by subsection (a) 
of this section, shall apply to affidavits of support executed on 
or after a date specified by the Attorney General, which date 
shall be not earlier than 60 days (and not later than 90 days) 
after the date the Attorney General formulates the form for such 
affidavits under subsection (b) of such section. 
(d) BENEFITS NOT SUBJECT TO REIMBURSEMENT.—Requirements 
for reimbursement by a sponsor for benefits provided to a sponsored 
gJien pursuant to an affidavit of support under section 213A of 
the Immigration and Nationality Act shall not apply with respect 
to the following: 
(1) Medical assistance described in section 401(b)(1)(A) or 
assistance described in section 411(b)(1). 
(2) Short-term, non-cash, in-kind emergency disaster relief. 
(3) Assistance or benefits under the National School 
Lunch Act. 
(4) Assistance or benefits under the Child Nutrition Act 
of 1966. 
(5) Public health assistance for immunizations (not includ-
ing any assistance under title XIX of the Social Security Act) 
with respect to immunizable diseases and for testing and treat-
ment of symptoms of commimicable diseases whether or not 
such sjonptoms are caused by a commimicable disease. 
(6) Payments for foster care eind adoption assistance under 
parts B and E of title IV of the Social Security Act for a 
parent or a child, but only if the foster or adoptive parent 
8 use 1138a 
note. 
8USC1138a 
note. 
110 STAT. 2274 
PUBLIC LAW 104-193—AUG. 22, 1996 
(or parents) of such child is a qualified eilien (as defined in 
section 431). 
(7) Programs, services, or assistance (such as soup kitchens, 
crisis counseling and intervention, £ind short-term shelter) 
specified by the Attorney Greneral, in the Attorney General's 
sole and imreviewable discretion after consultation with appro-
priate Federal agencies and departments, which (A) deliver 
in-kind services at the community level, including through pub-
lic or private nonprofit agencies; (B) do not condition the provi-
sion of assistance, the amount of assistance provided, or 
the cost of assistance provided on the individual recipient's 
income or resources; and (C) are necessary for the protection 
of life or safety. 
(8) Programs of student assistance under titles IV, V, DC, 
£ind X of the Higher Education Act of 1965, and titles III, 
VII, and VIII of the Pubhc Health Service Act. 
(9) Benefits under the Head Start Act. 
(10) Means-tested programs under the Elementeiry and 
Secondary Education Act of 1965. 
(11) Benefits imder the Job Training Partnership Act. 
Subtitle D—General Provisions 
8 use 1641. 
SEC. 431. DEFINITIONS. 
(a) IN GENERAL.—Except as otherwise provided in this title, 
the terms used in this title have the same meaning given such 
terms in section 101(a) of the Immigration and Nationality Act. 
(b) QUALIFIED ALIEN.—For purposes of this title, the term 
"qualified alien" means an alien who, at the time the alien applies 
for, receives, or attempts to receive a Federal public benefit, is— 
(1) an alien who is lawfully admitted for permanent resi-
dence under the Immigration and Nationality Act, 
(2) an alien who is granted asylum imder section 208 
of such Act, 
(3) a refugee who is admitted to the United States under 
section 207 of such Act, 
(4) an alien who is paroled into the United States under 
section 212(d)(5) of such Act for a period of at least 1 year, 
(5) an alien whose deportation is being withheld under 
section 243(h) of such Act, or 
(6) an alien who is granted conditional entry pursuant 
to section 203(a)(7) of such Act as in effect prior to April 
1,1980. 
8 use 1642. 
SEC. 432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC 
BENEFITS. 
(a) IN GENERAL.—Not later than 18 months after the date 
of the enactment of this Act, the Attorney General of the United 
States, after consultation with the Secretary of Health and Human 
Services, shall promulgate regulations requiring verification that 
a person applying for a FederaJ public benefit (as defined in section 
401(c)), to which the limitation under section 401 applies, is a 
qualified alien and is ehgible to receive such benefit. Such regula-
tions shall, to the extent feasible, require that information requested 
and exchanged be similar in form and manner to information 
requested and exchanged under section 1137 of the Social Security 
Act. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2275 
(b) STATE COMPLIANCE.—Not later than 24 months after the 
date the regulations described in subsection (a) are adopted, a 
State that administers a program that provides a Federal public 
benefit shall have in effect a verification system that complies 
with the regulations. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
the purpose of this section. 
SEC. 433. STATUTORY CONSTRUCTION. 
8USC1643. 
(a) LIMITATION.— 
(1) Nothing in this title may be construed as an entitlement 
or a determination of an individual's eligibility or fulfillment 
of the requisite requirements for any Federal, State, or local 
governmental program, assistance, or benefits. For purposes 
of this title, eligibility relates only to the general issue of 
eligibility or ineligibility on the basis of alienage. 
(2) Nothing in this title may be construed as addressing 
sdien eligibility for a basic public education as determined by 
the Supreme Court of the United States under Plyler v. Doe 
(457 U.S. 202X1982). 
(b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—This title does 
not apply to any Federal, State, or local governmental program, 
assistance, or benefits provided to an alien under any program 
of foreign assistance as determined by the Secretary of State in 
consultation with the Attorney General. 
(c) SEVERABILITY.—If any provision of this title or the applica-
tion of such provision to any person or circumstance is held to 
be unconstitutional, the remainder of this title £uid the application 
of the provisions of such to any person or circumstance shall not 
be affected thereby. 
SEC. 434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERN- 
8USC1644. 
MENT 
AGENCIES 
AND 
THE 
IMMIGRATION 
AND 
NATURALIZATION SERVICE. 
Notwithstanding any other provision of Federsd, State, or local 
law, no State or local government entity may be prohibited, or 
in any way restricted, fi-om sending to or receiving fi-om 
the Immigration and Naturalization Service information regarding 
the immigration status, lawful or unlawful, of an alien in the 
United States. 
SEC. 435. QUALIFYING QUARTERS. 
8 USC 1645. 
For purposes of this title, in determining the number of qualify-
ing quarters of coverage under title II of the Social Security Act 
an alien shall be credited with— 
(1) all of the qualifying quarters of coverage as defined 
under title II of the Social Security Act worked by a parent 
of such £dien while the alien was under age 18, and 
(2) all of the qualifying quarters worked by a spouse of 
such alien during thteir marriage and the alien remains married 
to such spouse or such spouse is deceased. 
No such qualifying quarter of coverage that is creditable under 
title II of the Social Security Act for any period beginning after 
December 31, 1996, may be credited to an alien imder paragraph 
(1) or (2) if the parent or spouse (as the case may be) of such 
alien received any Federal means-tested public benefit (as provided 
29-194 O - 96 - 18: QL 3 Part 3 
110 STAT. 2276 
PUBLIC LAW 104-193—AUG. 22, 1996 
under section 403) during the period for which such qualifying 
quarter of coverage is so credited. 
Subtitle E—Conforming Amendments 
Relating to Assisted Housing 
SEC. 441. CONFORMING AMENDMENTS 
RELATING TO ASSISTED 
HOUSING. 
(a) LIMITATIONS ON ASSISTANCE.—Section 214 of the Housing 
and Community Development Act of 1980 (42 U.S.C. 1436a) is 
amended— 
(1) by striking "Secretary of Housing and Urban Develop-
ment" each place it appears and inserting 
"applicable 
Secretary"; 
(2) in subsection (b), by inserting after "National Housing 
Act," the following: "the direct loan program under section 
502 of the Housing Act of 1949 or section 502(c)(5)(D), 504, 
521(a)(2XA), or 542 of such Act, subtitle A of title HI of the 
Cranston-Gonzalez NationgJ Affordable Housing Act,"; 
(3) in paragraphs (2) through (6) of subsection (d), by 
striking "Secretary each place it appears and inserting 
"applicable Secretaiy"; 
(4) in subsection (d), in the matter following paragraph 
(6), by striking "the term 'Secretar)^'" and inserting "the term 
'applicable Secretary"; and 
(5) by adding at the end the following new subsection: 
"(h) For purposes of this section, the term 'applicable Secretar}^' 
means— 
"(1) the Secretary of Housing and Urban Development, 
with respect to financial assistance administered by such Sec-
retary and financial assistance xmder subtitle A of title HI 
of the Cranston-Gonzalez National Affordable Housing Act; and 
"(2) the Secretary of Agriculture, with respect to financial 
assistance administered by such Secretary.". 
(b) CONFORMING AMENDMENTS.—Section 501(h) of the Housing 
Act of 1949 (42 U.S.C. 1471(h)) is amended— 
(1) by striking "(1)"; 
(2) by striking "by the Secretary of Housing and Urban 
Development"; and 
(3) by striking paragraph (2). 
Subtitle F—Earned Income Credit Denied to Unauthorized 
Employees 
SEC. 451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT 
AUTHORIZED TO BE EMPLOYED IN THE UNITED STATES. 
(a) IN GENERAL.—Section 32(c)(1) of the Internal Revenue Code 
of 1986 (relating to individusds eligible to claim the earned income 
credit) is amended by adding at the end the following new subpara-
graph: 
"(F) IDENTIFICATION NUMBER REQUIREMENT.—The term 
'eligible individual' does not include £iny individual who 
does not include on the return of tax for the taxable year— 
"(i) 
such 
individugJ's 
taxpayer 
identification 
number, and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2277 
"(ii) if the individual is married (within the mean-
ing of section 7703), the taxpayer identification number 
of such individual's spouse.". 
(b) SPECIAL IDENTIFICATION NUMBER.—Section 32 of such Code 
is amended by adding at the end the following new subsection: 
"(1) IDENTIFICATION NUMBERS.—Solely for purposes of sub-
sections (c)(1)(F) £ind (c)(3)(D), a taxpayer identification number 
means a social security number issued to an individual by the 
Social Security Administration (other than a social security number 
issued pursuant to clause (II) (or that portion of clause (III) that 
relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security 
Act).". 
(c) EXTENSION OF PROCEDURES APPLICABLE TO MATHEMATICAL 
OR CLERICAL ERRORS.—Section 6213(g)(2) of such Code (relating 
to the definition of mathematical or clerical errors) is amended 
by striking "and" at the end of subparagraph (D), by striking 
the period at the end of subparagraph (E) and inserting a comma, 
and by inserting after subparagraph (E) the following new subpara-
graphs: 
"(F) an omission of a correct taxpayer identification 
number required under section 32 (relating to the earned 
income credit) to be included on a return, and 
"(G) £in entrj' on a return claiming the credit imder 
section 32 with respect to net earnings from self-employ-
ment described in section 32(c)(2)(A) to the extent the 
tax imposed by section 1401 (relating to self-employment 
tax) on such net earnings has not been paid.". 
(d) EFFECTIVE DATE.—^The amendments made by this section 26 use 32 note, 
shall apply with respect to returns the due date for which (without 
regard to extensions) is more th£in 30 days after the date of the 
enactment of this Act. 
TITLE V—CHILD PROTECTION 
SEC. 501. AUTHORITY OF STATES TO MAKE FOSTER CARE MAINTE-
NANCE PAYMENTS ON BEHALF OF CHILDREN IN ANY 
PRIVATE CHILD CARE INSTITUTION. 
Section 472(c)(2) of the Social Security Act (42 U.S.C. 672(c)(2)) 
is amended by striking "nonprofit". 
SEC. 502. EXTENSION OF ENHANCED MATCH FOR IMPLEMENTATION 
OF STATEWIDE AUTOMATED CHILD WELFARE INFORMA-
TION SYSTEMS. 
Section 13713(b)(2) of the Omnibus Budget Reconciliation Act 
of 1993 (42 U.S.C. 674 note; 107 Stat. 657) is amended by striking 
"1996" and inserting "1997". 
SEC. 503. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE. 
Part B of title IV of the Social Security Act (42 U.S.C. 620-
628a) is amended by adding at the end the following: 
"SEC. 429A. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE. 
42 USC 628b. 
"(a) IN GENERAL.—The Secretary shall conduct a national study 
based on random samples of children who are at risk of child 
abuse or neglect, or are determined by States to have been abused 
or neglected. 
110 STAT. 2278 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(b) REQUIREMENTS.—^The study required by subsection (a) 
shall— 
"(1) have a longitudinal component; and 
"(2) yield data reliable at the State level for as many 
States as the Secretary determines is feasible. 
"(c) PREFERRED CONTENTS.—In conducting the study required 
by subsection (a), the Secretary should— 
"(1) carefully consider selecting the sample from cases of 
confirmed abuse or neglect; and 
"(2) follow each case for several years while obtaining 
information on, among other things— 
"(A) the type of abuse or neglect involved; 
"(B) the frequency of contact with State or local 
agencies; 
"(C) whether the child involved has been separated 
from the family, and, if so, under what circumstances; 
"(D) the number, type, and characteristics of out-of-
home placements of the child; and 
"(E) the average duration of each placement. 
"(d) REPORTS.— 
"(1) IN GENERAL.—From time to time, the Secretary shall 
prepare reports summarizing the results of the study required 
by subsection (a). 
"(2) AVAILABILITY.—^The Secretary shall make available to 
the public any report prepared under paragraph (1), in writing 
or in the form of an electronic data tape. 
"(3) AUTHORITY TO CHARGE FEE.—^The Secretary may charge 
and collect a fee for the furnishing of reports under para-
graph (2). 
"(e) APPROPRIATION.—Out of any money in the Treasury of 
the United States not otherwise appropriated, there are appro-
priated to the Secretary for each of fiscal years 1996 through 
2002 $6,000,000 to carry out this section.". 
SEC. 504. REDESIGNATION OF SECTION 1123. 
The Social Security Act is amended by redesignating sec-
42 use 1320a- 
tion 1123, the second place it appears (42 U.S.C. 1320a-la), as 
2a. 
section 1123A. 
SEC. 505. KINSHIP CARE. 
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) 
is amended— 
(1) by striking "and" at the end of paragraph (16); 
(2) by striking the period at the end of paragraph (17) 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(18) provides that the State shall consider giving pref-
erence to an adult relative over a non-related caregiver when 
determining a placement for a child, provided that the relative 
caregiver meets all relevant State child protection standards.". 
Child Care and 
TITLE VI—CHILD CARE 
Development 
Block Grant 
Amendments of 
SEC. 601. SHORT TITLE AND REFERENCES. 
42^USC980i 
(^) SHORT TITLE.—This title may be cited as the "Child Care 
note. 
and Development Block Grant Amendments of 1996". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2279 
(b) REFERENCES.—Except as otherwise expressly provided, 
whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Child Care and Development Block Grsint Act 
of 1990 (42 U.S.C. 9858 et seq.). 
SEC. 602. GOALS. 
Section 658A (42 U.S.C. 9801 note) is amended— 
(1) in the section heading by inserting "AND GOALS" after 
"TITLE"; 
(2) by inserting "(a) SHORT TITLE.—" before "This"; and 42 use 9801 
(3) by adding at the end the following: 
^^^ian QQCO 
"(b) GOALS.—The goals of this subchapter are— 
^[^ use 9858 
"(1) to allow each State maximum flexibility in developing 
child care programs and poUcies that best suit the needs of 
children and parents within such State; 
"(2) to promote parental choice to empower working parents 
to msike their own decisions on the child care that best suits 
their family's needs; 
"(3) to encourage States to provide consumer education 
information to help parents make informed choices about child 
care; 
"(4) to assist States to provide child care to parents trying 
to achieve independence from public assistance; and 
"(5) to assist States in implementing the health, safety, 
licensing, and registration stsuidards established in State regu-
lations.". 
SEC. 603. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT 
AUTHORITY. 
(a) IN GENERAL.—Section 658B (42 U.S.C. 9858) is amended 
to read as follows: 
"SEC. 658B. AUTHORIZATION OF APPROPRIATIONS. 
"There is authorized to be appropriated to carry out this sub-
chapter $1,000,000,000 for each of the fiscal years 1996 through 
2002.". 
(b) SOCIAL SECURITY ACT.—Part A of title IV of the Social 
Security Act (42 U.S.C. 601-617) is amended by adding at the 
end the following new section: 
"SEC. 418. FUNDING FOR CHILD CARE. 
42 USC 618. 
"(a) GENERAL CHILD CARE ENTITLEMENT.— 
"(1) GENERAL ENTITLEMENT.—Subject to the amount appro-
priated imder paragraph (3), each State shall, for the purpose 
of providing child care assistance, be entitled to payments 
under a grant imder this subsection for a fiscal year in an 
amoimt equal to— 
"(A) the sum of the total amount required to be paid 
to the State under section 403 for fiscal year 1994 or 
1995 (whichever is greater) with respect to amounts 
expended for child care under section— 
"(i) 402(g) of this Act (as such section was in effect 
before October 1, 1995); and 
"(ii) 402(i) of this Act (as so in effect); or 
110 STAT. 2280 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(B) the average of the total amounts required to be 
pgiid to the State for fiscal years 1992 through 1994 under 
the sections referred to in subparagraph (A); 
whichever is greater. 
"(2) REMAINDER.— 
"(A) GRANTS.—The Secretsiry shall use any amounts 
appropriated for a fiscal year under psiragraph (3), and 
remaining after the reservation described in paragraph 
(4) and after grants are awarded under paragraph (1), 
to make grants to States under this paragraph. 
"(B) AMOUNT.—Subject to subparagraph (C), the 
amount of a grsint awarded to a State for a fiscal year 
under this paragraph shall be based on the formula used 
for determining the amount of Federal payments to the 
State under section 403(n) (as such section was in effect 
before October 1, 1995). 
"(C) MATCHING REQUIREMENT.—The Secretary shall 
pay to each eligible State in a fiscal year an amount, 
under a grant under subparagraph (A), equ£d to the Federal 
medical assistance percentage for such State for fiscal year 
1995 (as defined in section 1905(b)) of so much of the 
expenditures by the State for child care in such year as 
exceed the State set-aside for such State under paragraph 
(1)(A) for such year and the amoimt of State expenditures 
in fiscal year 1994 or 1995 (whichever is greater) that 
equal the non-Federal share for the programs described 
in subparagraph (A) of psiragraph (1). 
"(D) REDISTRIBUTION.— 
"(i) IN GENERAL.—^With respect to any fiscal year, 
if the Secretary determines (in accordance with clause 
(ii)) that amounts under any grant awarded to a State 
under this paragraph for such fiscal year will not be 
used by such State during such fiscal year for carrying 
out the purpose for which the grant is made, the Sec-
retary shall make such amounts available in the subse-
quent fiscal year for carrying out such purpose to one 
or more States which apply for such funds to the 
extent the Secretary determines that such States will 
be able to use such additional amounts for canying 
out such purpose. Such available amounts shall be 
redistributed to a State pursuant to section 403(n) 
(as such section was in effect before October 1, 1995) 
by substituting 'the number of children residing in 
all States applying for such fiinds' for 'the number 
of children residing in the United States in the second 
preceding fiscal year'. 
"(ii) TIME OF DETERMINATION AND DISTRIBUTION.— 
The determination of the Secretary under clause (i) 
for a fiscal year shall be made not later than the 
end of the first quarter of the subsequent fiscal year. 
The redistribution of amounts under clause (i) shall 
be made as close as practicable to the date on which 
such determination is made. Any amount made avail-
able to a State from an appropriation for a fiscal year 
in accordance with this subparagraph shall, for pur-
poses of this part, be regarded as part of such State's 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2281 
pa3niient (as determined under this subsection) for the 
fiscal year in which the redistribution is made. 
"(3) APPROPRIATION.—For grants under this section, there 
are appropriated— 
"(A) $1,967,000,000 for fiscal year 1997; 
"(B) $2,067,000,000 for fiscal year 1998; 
"(C) $2,167,000,000 for fiscal year 1999; 
"(D) $2,367,000,000 for fiscal year 2000; 
"(E) $2,567,000,000 for fiscal year 2001; and 
"(F) $2,717,000,000 for fiscal year 2002. 
"(4) INDIAN TRIBES.—The Secretary shall reserve not less 
than 1 percent, and not more than 2 percent, of the aggregate 
amount appropriated to carry out tlus section in each fiscal 
year for pajonents to Indian tribes and tribal organizations. 
"(b) USE OF FUNDS.— 
"(1) IN GENERAL.—^Amounts received by a State under this 
section shall only be used to provide child care assistance. 
Amounts received by a State under a grant under subsection 
(a)(1) shall be available for use by the State without fiscal 
year limitation. 
"(2) USE FOR CERTAIN POPULATIONS.—A State shall ensure 
that not less than 70 percent of the total amoimt of funds 
received by the State in a fiscal year under this section are 
used to provide child care assistance to families who are receiv-
ing assistance imder a State progrsim imder this part, fsimilies 
who are attempting through work activities to transition off 
of such assistance program, and families who are at risk of 
becoming dependent on such assistance program. 
"(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK 
GRANT ACT of 1990.—Notwithstanding any other provision of law, 
amounts provided to a State imder this section shedl be transferred 
to the lead agency under the Child Care and Development Block 
Grant Act of 1990, integrated by the State into the programs 
established by the State under such Act, and be subject to require-
ments and limitations of such Act. 
"(d) DEFINITION.—As used in this section, the term 'State' 
means each of the 50 States or the District of Columbia.". 
SEC. 604. LEAD AGENCY. 
Section 658D(b) (42 U.S.C. 9858b(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking "State" the first 
place that sucn appears and inserting "governmental or 
nongovernmental"; and 
(B) in subparagraph (C), by inserting "with sufficient 
time and Statewide distribution of the notice of such hear-
ing," after "hearing in the State"; and 
(2) in paragraph (2), by striking the second sentence. 
SEC. 605. APPLICATION AND PLAN. 
Section 658E (42 U.S.C. 9858c) is amended— 
(1) in subsection (b)— 
(A) by striking "implemented—" and all that follows 
through "(2)" and inserting "implemented"; and 
(B) by striking "for subsequent State plans"; 
(2) in subsection (c)— 
(A) in paragraph (2)— 
(i) in subparagraph (A)— 
110 STAT. 2282 
PUBLIC LAW 104-193—AUG. 22, 1996 
(I) in clause (i) by striking ", other than 
through assistance provided under 
paragraph 
(3)(C),"; and 
(II) by striking "except" and all that follows 
through "1992", and inserting "and provide a 
detailed description of the procedures the State 
will implement to carry out the requirements of 
this subparagraph"; 
(ii) in subparagraph (B)— 
(I) by striking "Provide assurances" and insert-
ing "Certify"; and 
(II) by inserting before the period at the end 
"and provide a detailed description of such proce-
dures , 
(iii) in subparagraph (C)— 
(I) by striking "Provide assurances" and insert-
ing "Certify'; and 
(II) by inserting before the period at the end 
"and provide a detailed description of how such 
record is maintained and is made available"; 
(iv) by amending subparagraph (D) to read as 
follows: 
"(D) CONSUMER EDUCATION INFORMATION.—Certify that 
the State will collect and disseminate to parents of eligible 
children and the general public, consumer education 
information that will promote informed child care choices."; 
(v) in subparagraph (E), to read as follows: 
"(E) 
COMPLIANCE WITH STATE LICENSING REQUIRE-
MENTS.— 
"(i) IN GENERAL.—Certify that the State has in 
effect licensing requirements applicable to child care 
services provided within the State, and provide a 
detailed description of such requirements and of how 
such requirements are effectively enforced. Nothing 
in the preceding sentence shall be construed to require 
that licensing requirements be applied to specific types 
of providers of child care services. 
"(ii) INDL\N TRIBES AND TRIBAL ORGANIZATIONS.— 
In lieu of any licensing and regulatory requirements 
applicable under State and local law, the Secretary, 
in consultation with Indian tribes and tribal organiza-
tions, shall develop minimum child care standards 
(that appropriately reflect tribal needs and available 
resources) that shall be applicable to Indian tribes 
and tribal organization receiving assistance under this 
subchapter."; 
(vi) in subparagraph (F) by striking "Provide assur-
ances" and inserting "Certify"; 
(vii) in subparagraph (G) by striking "Provide 
assurances" and inserting "Certify"; and 
(viii) by striking subparagraphs (H), (I), and (J) 
£ind inserting the following: 
"(H) MEETING THE NEEDS OF CERTAIN POPULATIONS.— 
Demonstrate the manner in which the State will meet 
the specific child care needs of families who are receiving 
assistance under a State progremi under part A of title 
rV of the Socied Security Act, families who are attempting 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2283 
through work activities to transition off of such assistance 
program, and famiUes that are at risk of becoming depend-
ent on such assistance program."; 
(B) in paragraph (3)— 
(i) in subparagraph (A), by striking "(B) and (C)" 
and inserting "(B) through (D)"; 
(ii) in subparagraph (B)— 
(I) by striking ".—Subject to the reservation 
contained in subparagraph (C), the" and inserting 
"AND RELATED ACTIVITIES.—The"; 
(II) in clause (i) by striking "; and" at the 
end and inserting a period; 
(III) by striking "for—" and all that follows 
through "section 658E(c)(2)(A)" and inserting "for 
child care services on a sliding fee scale basis, 
activities that improve the quality or availability 
of such services, and £iny other activity that the 
State deems appropriate to realize any of the goals 
specified in paragraphs (2) through (5) of section 
658A(b)"; and 
(IV) by striking clause (ii); 
(iii) by amending subparagraph (C) to read as 
follows: 
"(C) LIMITATION ON ADMINISTRATIVE COSTS.—Not more 
than 5 percent of the aggregate amount of funds available 
to the State to carry out this subchapter by a State in 
each fiscal year may be expended for administrative costs 
incurred by such State to carry out all of its functions 
and duties under this subchapter. As used in the preceding 
sentence, the term 'administrative costs' shall not include 
the costs of providing direct services."; and 
(iv) by adding at the end thereof the following: 
"(D) ASSISTANCE FOR CERTAIN FAMILIES.—A State shall 
ensure that a substsintial portion of the amounts available 
(after the State has complied with the requirement of sec-
tion 418(b)(2) of the Social Security Act with respect to 
each of the fiscal years 1997 through 2002) to the State 
to carry out activities under this subchapter in each fiscal 
year is used to provide assistance to low-income working 
families other than families described in paragraph (2)(H)."; 
and 
(C) in paragraph (4)(A)— 
(i) by striking "provide assurances" and inserting 
"certify"; 
(ii) in the first sentence by inserting "and shall 
provide a summary of the facts relied on by the State 
to determine that such rates are sufficient to ensure 
such access" before the period; and 
(iii) by striking the last sentence. 
SEC. 606. LIMITATION ON STATE ALLOTMENTS. 
Section 658F(b)(l) (42 U.S.C. 9858d(b)(l)) is amended by 
striking "No" and inserting "Except as provided for in section 
6580(c)(6), no". 
SEC. 607. ACTIYITIES TO IMPROVE THE QUALITY OF CHILD CAKE. 
Section 658G (42 U.S.C. 9858e) is amended to read as follows: 
110 STAT. 2284 
PUBLIC LAW 104-193—AUG. 22, 1996 
42 use 9858e. 
"SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE. 
"A State that receives funds to carry out this subchapter for 
a fiscal year, shall use not less than 4 percent of the amount 
of such funds for activities that are designed to provide comprehen-
sive consumer education to parents and the public, activities that 
increase parental choice, and activities designed to improve the 
quality and availability of child care (such as resource and referral 
services).". 
SEC. 608. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE-
AND AFTER-SCHOOL CARE REQUIREMENT. 
Section 658H (42 U.S.C. 9858f) is repealed. 
SEC. 609. ADMINISTRATION AND ENFORCEMENT. 
Section 6581(b) (42 U.S.C. 9858g(b)) is amended— 
(1) in paragraph (1), by striking ", and shall have" and 
all that follows through "(2)"; and 
(2) in the matter following clause (ii) of paragraph (2)(A), 
by striking "finding and that" and all that follows through 
the period and inserting "finding and shall require that the 
State reimburse the Secretary for any fiinds that were improp-
erly expended for purposes prohibited or not authorized by 
this subchapter, that the Secretary deduct fi*om the administra-
tive portion of the State allotment for the following fiscal year 
an amount that is less than or equal to any improperly 
expended fimds, or a combination of such options.". 
SEC. 610. PAYMENTS. 
Section 658J(c) (42 U.S.C. 9858h(c)) is amended— 
(1) by striking "expended" and inserting "obligated"; and 
(2) by striking "3 fiscal years" and inserting "fiscal year". 
SEC. 611. ANNUAL REPORT AND AUDITS. 
Section 658K (42 U.S.C. 98581) is amended— 
(1) in the section heading by striking "ANNUAL REPORT" 
and inserting "REPORTS"; 
(2) in subsection (a), to read as follows: 
"(a) REPORTS.— 
"(1) COLLECTION OF INFORMATION BY STATES.— 
"(A) IN GENERAL.—^A State that receives fimds to carry 
out this subchapter shall collect the information described 
in subparagraph (B) on a monthly basis. 
"(B) 
REQUIRED 
INFORMATION.—The 
information 
required under this subparagraph shall include, with 
respect to a family unit receiving assistance under this 
subchapter information concerning— 
"(i) family income; 
"(ii) county of residence; 
"(iii) the gender, race, £ind age of children receiving 
such assistance; 
"(iv) whether the family includes only one parent; 
"(v) the sources of family income, including the 
amoimt obtained 
fi*om 
(and separately identified)— 
"(I) emplojnnent, including self-emplojrment; 
"(II) cash or other assistance under part A 
of title IV of the SocisJ Security Act; 
"(III) housing assistance; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2285 
"(IV) assistance under the Food Stamp Act 
of 1977; and 
"(V) other assistance programs; 
"(vi) the number of months the family has received 
benefits; 
"(vii) the t3^e of child care in which the child 
was enrolled (such as family child care, home care, 
or center-based child care); 
"(viii) whether the child care provider involved 
was a relative; 
"(ix) the cost of child care for such families; and 
"(x) the average hours per week of such care; 
during the period for which such information is required 
to be submitted. 
"(C) SUBMISSION TO SECRETARY.—A State described in 
subparagraph (A) shall, on a quarterly basis, submit the 
information required to be collected under subparagraph 
(B) to the Secretary. 
"(D) SAMPLING.—The Secretary may disapprove the 
information collected by a State under this paragraph if 
the State uses sampling methods to collect such informa-
tion. 
"(2) BIANNUAL REPORTS.—Not later than December 31, 
1997, and every 6 months thereafter, a State described in 
paragraph (1)(A) shall prepare and submit to the Secretary 
a report that includes aggregate data concerning— 
"(A) the number of child care providers that received 
funding under this subchapter as separately identified 
based on the tjrpes of providers listed in section 658P(5); 
"(B) the monthly cost of child care services, and the 
portion of such cost that is paid for with assistance provided 
under this subchapter, listed by the type of cluld care 
services provided; 
"(C) the number of payments made by the State 
through vouchers, contracts, cash, and disregards under 
public benefit programs, listed by the type of child care 
services provided; 
"(D) the manner in which consumer education informa-
tion was provided to parents £ind the number of parents 
to whom such information was provided; and 
"(E) the total number (without duplication) of children 
and families served imder this subchapter; 
during the period for which such report is required to be sub-
mitted."; and 
(2) in subsection (b)— 
(A) in paragraph (1) by striking "a application" and 
inserting "an application"; 
(B) in paragraph (2) by striking "any agency admin-
istering activities that receive" and inserting "the State 
that receives"; and 
(C) in paragraph (4) by striking "entitles" and inserting 
"entitled". 
SEC. 612. REPORT BY THE SECRETARY. 
Section 658L (42 U.S.C. 9858j) is amended— 
(1) by striking "1993" and inserting "1997"; 
(2) by striking "annually" and inserting "biennially"; and 
110 STAT. 2286 
PUBLIC LAW 104-193—AUG. 22, 1996 
(3) by striking "Education and Labor" and inserting 
"Economic and Educational Opportunities". 
SEC. 613. ALLOTMENTS. 
Section 6580 (42 U.S.C. 9858m) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking 
"POSSESSIONS" and 
inserting 
"POSSESSIONS"; 
(ii) by inserting "and" after "States,"; and 
(iii) by striking ", and the Trust Territory of the 
Pacific Islands"; and 
(B) in paragraph (2), by striking "more than 3 percent" 
and inserting "less than 1 percent, and not more than 
2 percent,"; 
(2) in subsection (c)— 
(A) in paragraph (5) by striking "our" and inserting 
"out"; and 
(B) by adding at the end thereof the following new 
paragraph: 
"(6) CONSTRUCTION OR RENOVATION OF FACILITIES.— 
"(A) REQUEST FOR USE OF FUNDS.—An Indian tribe 
or tribal organization may submit to the Secretary a 
request to use amounts provided under this subsection 
for construction or renovation purposes. 
"(B) DETERMINATION.—With respect to a request 
submitted under subparagraph (A), and except as provided 
in subparagraph (C), upon a determination by the Secretary 
that adequate facilities are not otherwise available to an 
Indian tnbe or tribal organization to enable such tribe 
or organization to carry out child care programs in accord-
ance with this subchapter, and that the lack of such facili-
ties will inhibit the operation of such programs in the 
fiiture, the Secretary may permit the tribe or organization 
to use assistance provided luider this subsection to make 
pa3rments for the construction or renovation of facilities 
that will be used to cany out such programs. 
"(C) LIMITATION.—The Secretary may not permit an 
Indian tribe or tribal organization to use amounts provided 
under this subsection for construction or renovation if such 
use will result in a decrease in the level of child care 
services provided by the tribe or organization as compared 
to the level of such services provided by the tribe or 
organization in the fiscal yeeir preceding the year for which 
the determination under subparagraph (A) is being made. 
"(D) 
UNIFORM 
PROCEDURES.—The 
Secretary 
shall 
develop and implement uniform procedures for the soUcita-
tion and consideration of requests under this paragraph."; 
and 
(3) in subsection (e), by adding at the end thereof the 
following new paragraph: 
"(4) INDIAN TRIBES OR TRIBAL ORGANIZATIONS.—Any portion 
of a grant or contract made to an Indian tribe or tribal organiza-
tion under subsection (c) that the Secretary determines is not 
being used in a manner consistent with the provision of this 
subchapter in the period for which the grant or contract is 
made available, shall be allotted by the Secretary to other 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2287 
tribes or organizations that have submitted applications under 
subsection (c) in accordance with their respective needs.". 
SEC. 614. DEFDnnONS. 
Section 658P (42 U.S.C. 9858n) is amended— 
(1) in paragraph (2), in the first sentence by inserting 
"or as a deposit for child care services if such a deposit is 
required of other children being cared for by the provider" 
after "child care services"; and 
(2) by striking paragraph (3); 
(3) in paragraph (4XB), by striking "75 percent" and 
inserting "85 percent"; 
(4) in paragraph (5)(B)— 
(A) by inserting "great grandchild, sibling (if such 
provider lives in a separate residence)," after "grandchild,"; 
(B) by striking "is registered and"; and 
(C) by striking "State" and inserting "applicable". 
(5) by striking paragraph (10); 
(6) in paragraph (13)— 
(A) by inserting "or" after "Samoa,"; and 
(B) by striking ", £ind the Trust Territory of the Pacific 
Islands"; 
(7) in paragraph (14)— 
(A) by striking "The term" and inserting the following: 
"(A) IN GE^fERAL.—The term"; and 
(B) by adding at the end thereof the following new 
subparagraph: 
"(B) OTHER 
ORGANIZATIONS.—Such term includes a 
Native Hawaiian Organization, as defined in section 
4009(4) of the Augustus F. Hawkins-Robert T. Stafford 
Elementary and Secondsiry School Improvement Amend-
ments of 1988 (20 U.S.C. 4909(4)) and a private nonprofit 
organization established for the purpose of serving youth 
who are Indians or Native Hawaiians.". 
SEC. 616. EFFECTIVE DATE. 
42 USC 9858 
(a) IN GENERAL.—Except as provided in subsection (b), this 
title and the amendments made by this title shall take effect 
on October 1, 1996. 
(b) EXCEPTION.—The amendment made by section 603(a) shall 
take effect on the date of enactment of this Act. 
TITLE YII—CHILD NUTRITION 
PROGRAMS 
Subtitle A—^National School Lunch Act 
SEC. 701. STATE DISBURSEMENT TO SCHOOLS. 
(a) IN GENERAL.—Section 8 of the National School Lunch Act 
(42 U.S.C. 1757) is amended— 
(1) in the third sentence, by striking "Nothing" and all 
that follows through "educational agency to" and inserting "The 
State educational agency may"; 
(2) by striking the fourth and fifth sentences; 
110 STAT. 2288 
PUBLIC LAW 104-193—AUG. 22, 1996 
(3) by redesignating the first through seventh sentences, 
as amended by paragraph (2), as subsections (a) through (g), 
respectively; 
(4) in subsection (b), as redesignated by paragraph (3), 
by striking "the preceding sentence" and inserting "subsection 
(a)"; and 
(5) in subsection (d), as redesignated by paragraph (3), 
by striking "Such food costs" and inserting "Use of ftinds paid 
to States". 
(b) DEFINITION OF CHILD.—Section 12(d) of the National School 
Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the end 
the following: 
"(9) CHILD.— 
"(A) IN GENERAL.—The term 'child' includes an indi-
vidual, regardless of age, who— 
"(i) is determined by a State educational agency, 
in accordance with regulations prescribed by the Sec-
retary, to have one or more mental or physical disabil-
ities; and 
"(ii) is attending any institution, as defined in 
section 17(a), or any nonresidential public or nonprofit 
private school of high school grade or under, for the 
{mrpose of participating in a school program estab-
ished for individuals with mental or physical dis-
abilities. 
"(B) RELATIONSHIP TO CHILD AND ADULT CARE FOOD 
PROGRAM.—No institution that is not otherwise eligible 
to participate in the program under section 17 shall be 
considered eligible because of this paragraph.". 
SEC. 702. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS. 
(a) NUTRITIONAL STANDARDS.—Section 9(a) of the National 
School Lunch Act (42 U.S.C. 1758(a)) is amended— 
(1) in paragraph (2)— 
(A) by striking "(2)(A) Lunches" and inserting "(2) 
Lunches"; 
(B) by striking subparagraph (B); and 
(C) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as paragraph (3). 
(b) UTILIZATION OF AGRICULTURAL COMMODITIES.—Section 9(c) 
of the National School Lunch Act (42 U.S.C. 1758(c)) is amended— 
(1) in the fifth sentence, by striking "of the provisions 
of law referred to in the preceding sentence" and inserting 
"provision of law"; £ind 
(2) by striking the second, fourth, and sixth sentences. 
(c) NUTRITIONAL INFORMATION.—Section 9(f) of the National 
School Lunch Act (42 U.S.C. 1758(f)) is amended— 
(1) by striking paragraph (1); 
(2) by striking "(2)"; 
(3) by redesignating subparagraphs (A) through (D) as 
paragraphs (1) through (4), respectively; 
(4) by striking paragraph (1), as redesignated by paragraph 
(3), £ind inserting the following: 
"(1) NUTRITIONAL REQUIREMENTS.—Except as provided in 
paragraph (2), not later than the first day of the 1996-1997 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2289 
school year, schools that are participating in the school lunch 
or school breakfast program shall serve lunches and breakfasts 
under the program that— 
"(A) are consistent with the goals of the most recent 
Dietary Guidelines for Americans published under section 
301 of the National Nutrition Monitoring and Related 
Research Act of 1990 (7 U.S.C. 5341); and 
"(B) provide, on the average over each week, at least— 
"(i) with respect to school lunches, V
a of the daily 
recommended dietary allowance established by the 
Food and Nutrition Board of the National Research 
Council of the National Academy of Sciences; and 
"(ii) with respect to school breakfasts, Vi of the 
daily recommended dietary allowance established by 
the Food and Nutrition Board of the National Research 
Council of the National Academy of Sciences."; 
(5) in paragraph (3), as redesignated by paragraph (3)— 
(A) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; and 
(B) in subparagraph (A), as so redesignated, by 
redesignating subclauses (I) and (II) as clauses (i) and 
(ii), respectively; and 
(6) in paragraph (4), as redesignated by paragraph (3)— 
(A) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; 
(B) in subparagraph (A), as redesignated by subpara-
graph (A), by redesignating subclauses (I) and (II) as 
clauses (i) and (ii), respective^; and 
(C) in subparagraph 
(A)(ii), as redesignated by 
subparagraph (B), by striking "subparagraph (C)" and 
inserting "paragraph (3)", 
(d) USE OF RESOURCES.—Section 9 of the National School Lunch 
Act (42 U.S.C. 1758) is amended by striking subsection (h). 
SEC. 703. FREE AND REDUCED PRICE POLICY STATEMENT. 
Section 9(b)(2) of the National School Lunch Act (42 U.S.C. 
1758(b)(2)) is amended by adding at the end the following: 
"(D) FREE AND REDUCED PRICE POLICY STATEMENT.— 
After the initial submission, a school food authority shall 
not be required to submit a free and reduced price policy 
statement to a State educational agency under this Act 
unless there is a substantive change in the free and reduced 
price policy of the school food authority. A routine change 
in the policy of a school food authority, such as an annual 
adjustment of the income eligibility guidelines for free and 
reduced price meals, shall not be sufficient cause for requir-
ing the school food authority to submit a policy statement.". 
SEC. 704. SPECIAL ASSISTANCE. 
(a) EXTENSION OF PAYMENT PERIOD.—Section ll(a)(l)(D)(i) of 
the National School Lunch Act (42 U.S.C. 1759a(a)(l)(D)(i)) is 
amended by striking ", on the date of enactment of this subpara-
graph,". 
(b) ROUNDING RULE FOR LUNCH, BREAKFAST, AND SUPPLEMENT 
RATES.— 
(1) IN GENERAL.—The third sentence of section 11(a)(3)(B) 
of the National School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) 
is amended by adding before the period at the end the following: 
110 STAT. 2290 
PUBLIC LAW 104-193—AUG. 22, 1996 
", except that adjustments to payment rates for meals and 
supplements served to individuals not determined to be eligible 
for free or reduced price meals and supplements shall be com-
puted to the nearest lower cent increment and based on the 
unrounded amount for the preceding 12-month period". 
42 use 1759a 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 
note. 
(1) shall become effective on July 1, 1997. 
(c) APPLICABILITY OF OTHER PROVISIONS.—Section 11 of 
the 
National School Lunch Act (42 U.S.C. 1759a) is amended— 
(1) by striking subsection (d); 
(2) in subsection (e)(2)— 
(A) by striking "The" and inserting "On request of 
the Secretary, the"; and 
(B) by striking "each month"; and 
(3) by redesignating subsections (e) and (f), as so amended, 
as subsections (d) and (e), respectively. 
SEC. 705. MISCELLANEOUS PROVISIONS AND DEFINITIONS. 
(a) ACCOUNTS AND RECORDS.—The second sentence of section 
12(a) of the National School Lunch Act (42 U.S.C. 1760(a)) is 
amended by striking "at all times be available" and inserting "be 
available at any reasonable time". 
(b) 
RESTRICTION ON REQUIREMENTS.—Section 
12(c) 
of 
the 
National School Lunch Act (42 U.S.C. 1760(c)) is amended by strik-
ing "neither the Secretary nor the State shall" eind inserting "the 
Secretary shall not". 
(c) DEFINITIONS.—Section 12(d) of the National School Limch 
Act (42 U.S.C. 1760(d)), as amended by section 701(b), is amended— 
(1) in paragraph (1), by striking "the Trust Territory of 
the Pacific Islands and inserting "the Commonwealth of the 
Northern Mariana Islands"; 
(2) by striking paragraphs (3) and (4); and 
(3) by redesignating paragraphs (1), (2), and (5) through 
(9) as paragraphs (6), (7), (3), (4), (2), (5), and (1), respectively, 
and rearranging the paragraphs so as to appear in numerical 
order. 
(d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT RATES.— 
Section 12(f) of the National School Lunch Act (42 U.S.C. 1760(f)) 
is amended by striking "the Trust Territory of the Pacific Islands,". 
(e) EXPEDITED RULEMAKING.—Section 12(k) of the National 
School Lunch Act (42 U.S.C. 1760(k)) is amended— 
(1) by striking paragraphs (1), (2), and (5); 
(2) by redesignating paragraphs (3) and (4) as paragraphs 
(1) and (2), respectively; and 
(3) in paragraph (1), as redesignated by paragraph (2), 
by striking "Guidelines" and inserting "guidelines contained 
in the most recent 'Dietary Guidelines for Americans' that 
is published under section 301 of the National Nutrition Mon-
itoring and Related Research Act of 1990 (7 U.S.C. 5341)". 
(f) WAIVER.—Section 12(1) of the National School Lunch Act 
(42 U.S.C. 1760(1)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (iii), by adding "and" at the end; 
(B) in clause (iv), by striking the semicolon at the 
end and inserting a period; and 
(C) by striking clauses (v) through (vii); 
(2) in paragraph (3)— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2291 
(A) in subparagraph (A), by striking "(A)"; and 
(B) by striking subparagraphs (B) through (D); 
(3) in paragraph (4)— 
(A) in the matter preceding subparagraph (A), by strik-
ing "of any requirement relating^' and inserting "that 
increases Federal costs or that relates"; 
(B) by striking subparagraph (D); 
(C) by redesignating subparagraphs (E) through (N) 
as subparagraphs (D) through (M), respectively; and 
(D) in subparagraph (L), as redesignated by subpara-
graph (C), by strikSig "and" at the end and inserting "or"; 
Eind 
(4) in paragraph (6)— 
(A) by striking "(A)(i)" and all that follows through 
"(B)"; and 
(B) by redesignating clauses (i) through (iv) as subpara-
graphs (A) through (D), respectively. 
SEC. 706. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN. 
(a) ESTABLISHMENT OF PROGRAM.—Section 13(a) of the National 
School Lunch Act (42 U.S.C. 1761(a)) is amended— 
(1) in paragraph (1)— 
(A) in the first sentence, by striking "initiate, maintain, 
and expand" and inserting "initiate and msdntain"; and 
(B) in subparagraph (E) of the second sentence, by 
striking "the Trust Territory of the Pacific Islands,"; and 
(2) in paragraph (7)(A), by striking "Except as provided 
in subparagraph (C), private" and inserting "Private". 
(b) SERVICE INSTITUTIONS.—Section 13(b) of the National School 
Lunch Act (42 U.S.C. 1761(b)) is amended by striking "(b)(1)" and 
all that follows through the end of paragraph (1) and inserting 
the following: 
"(b) SERVICE INSTITUTIONS.— 
"(1) PAYMENTS.— 
"(A) IN GENERAL.—Except as otherwise provided in 
this paragraph, payments to service institutions shall equal 
the full cost of food service operations (which cost shall 
include the costs of obtaining, preparing, and serving food, 
but shall not include administrative costs). 
"(B) MAXIMUM AMOUNTS.—Subject to subparagraph (C), 
payments to any institution under subparagraph (A) shall 
not exceed— 
"(i) $1.97 for each lunch and supper served; 
"(ii) $1.13 for each breakfast served; and 
"(iii) 46 cents for each meal supplement served. 
"(C) ADJUSTMENTS.—^Amoimts specified in subpara-
graph (B) shall be adjusted on January 1, 1997, and each 
January 1 thereafter, to the nearest lower cent increment 
to reflect changes for the 12-month period ending the 
preceding November 30 in the series for food away fi-om 
home of the Consumer Price Index for All Urban Con-
sumers published by the Bureau of Labor Statistics of 
the Department of Labor. Each adjustment shall be based 
on the unrounded adjustment for the prior 12-month 
period.". 
110 STAT. 2292 
PUBLIC LAW 104-193—AUG. 22, 1996 
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—Section 13(b)(2) 
of the National School Lunch Act (42 U.S.C. 1761(b)(2)) is 
amended— 
(1) in the first sentence, by striking "four meals" and insert-
ing "3 meals, or 2 meals £ind 1 supplement,"; and 
(2) by striking the second sentence. 
(d) REIMBURSEMENTS.—Section 13(c)(2) of the National School 
Lunch Act (42 U.S.C. 1761(c)(2)) is amended— 
(1) by striking subparagraphs (A), (C), (D), and (E); 
(2) by striking "(B)"; 
(3) by strikmg ", and such higher education institu-
tions,"; and 
(4) by striking "without application" and inserting "on 
showing residence in areas in which poor economic conditions 
exist or on the basis of income eligibility statements for children 
enrolled in the program". 
(e) ADVANCE PROGRAM PAYMENTS.—Section 13(e)(1) of the 
National School Lunch Act (42 U.S.C. 1761(e)(1)) is amended— 
(1) by striking "institution: Provided, That (A) the" and 
inserting "institution. The"; 
(2) by inserting "(excluding a school)" after "any service 
institution"; eind 
(3) by striking "responsibilities, and (B) no" and inserting 
"responsibilities. No". 
(f) FOOD REQUIREMENTS.—Section 13(f) of the National School 
Lunch Act (42 U.S.C. 1761(f)) is amended— 
(1) by redesignating the first through seventh sentences 
as paragraphs (1) through (7), respectively; 
(2) by striking paragraph (3), as redesignated by para-
graph (1); 
(3) in paragraph (4), as redesignated by paragraph (1), 
by striking "the first sentence" and inserting "paragraph (1)"; 
(4) in subparagraph 
(B) of paragraph 
(6), as re-
designated by paragraph (1), by striking "that bacteria levels" 
and all that follows through the period at the end and inserting 
"conformance with standards set by local health authorities."; 
and 
(5) by redesignating paragraphs (4) through (7), as redesig-
nated by paragraph (1), as paragraphs (3) through (6), respec-
tively. 
(g) PERMITTING OFFER VERSUS SERVE.—Section 13(f) of the 
National School Lunch Act (42 U.S.C. 1761(f)), as amended by 
subsection (f), is amended by adding at the end the following: 
"(7) OFFER VERSUS SERVE.—^A school food authority partici-
pating as a service institution may permit a child attending 
a site on school premises operated directly by the authority 
to refuse one or more items of a meal that the child does 
not intend to consume, under rules that the school uses for 
school meals programs. A refusal of an offered food item shall 
not affect the amount of pa5anents made under this section 
to a school for the meal.", 
(h) RECORDS.—^The second sentence of section 13(m) of the 
National School Limch Act (42 U.S.C. 1761(m)) is amended by 
striking "at all times be available" and inserting "be available 
at any reasonable time". 
(i) REMOVING MANDATORY NOTICE TO INSTITUTIONS.—Section 
13(n)(2) of the National School Lunch Act (42 U.S.C. 1761(n)(2)) 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2293 
is amended by striking ", and its plans and schedule for informing 
service institutions of the availability of the program", 
(j) PLAN.—Section 13(n) of the National School Lunch Act (42 
U.S.C. 1761(n)), as amended by subsection (i), is amended— 
(1) in paragraph (2), by striking ", including the State's 
methods of assessing need"; 
(2) by striking paragraph (3); 
(3) in paragrapn (4), by striking "and schedule"; and 
(4) by redesignating paragraphs (4) through (7) as para-
graphs (3) through (6), respectively. 
(k) MONITORING AND TRAINING.—Section 13(q) of the National 
School Lunch Act (42 U.S.C. 1761(q)) is amended— 
(1) by striking paragraphs (2) and (4); 
(2) in paragraph (3), by striking "peiragraphs (1) and (2) 
of this subsection" and inserting "paragraph (1)"; and 
(3) by redesignating paragrapn (3) as paragraph (2). 
(1) EXPIRED PROGRAM.—Section 13 of the National School Limch 
Act (42 U.S.C. 1761) is amended— 
(1) by striking subsection (p); and 
(2) by redesignating subsections (q) and (r) as subsections 
(p) and (q), respectively. 
(m) EFFECTIVE DATE.—The amendments made by subsection 
42 use 1761 
(b) shall become effective on January 1, 1997. 
note. 
SEC. 707. COMMODITY DISTRTOUTION. 
(a) CEREAL AND SHORTENING IN COMMODITY DONATIONS.—Sec-
tion 14(b) of the National School Lunch Act (42 U.S.C. 1762a(b)) 
is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) and (3) as paragraphs 
(1) £ind (2), respectively. 
(b) STATE ADVISORY COUNCIL.—Section 14(e) of the National 
School Lunch Act (42 U.S.C. 1762a(e)) is amended to read as follows: 
"(e) Each State agency that receives food assistance payments 
under this section for any school year shall consult with representa-
tives of schools in the State that participate in the school lunch 
program with respect to the needs of sucn schools relating to the 
manner of selection and distribution of commodity assistance for 
such program.". 
(c) CASH COMPENSATION FOR PILOT PROJECT SCHOOLS.—Section 
14(g) of the National School Lunch Act (42 U.S.C. 1762a(g)) is 
amended by striking paragraph (3). 
SEC. 708. CHILD AND ADULT CARE FOOD PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the National 
School Lunch Act (42 U.S.C. 1766) is amended in the first sentence 
of subsection (a), by striking "initiate, maintain, and expand" and 
inserting "initiate and maintain". 
(b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph (2) of the 
last sentence of section 17(a) of the National School Lunch Act 
(42 U.S.C. 1766(a)) is amended— 
(1) in subparagraph (B), by striking "and" at the end; 
(2) in subparagraph (C), by striking the period at the 
end and inserting "; and"; and 
(3) by adding at the end the following: 
"(D) in the case of a family or group day care home 
sponsoring organization that employs more than one 
employee, the organization does not base pajnnents to an 
110 STAT. 2294 
PUBLIC LAW 104-193—AUG. 22, 1996 
employee of the organization on the number of family or 
group day care homes recruited.". 
(c) TECHNICAL ASSISTANCE.—The last sentence of section 
17(d)(1) of the National School Lunch Act (42 U.S.C. 1766(d)(1)) 
is amended by striking ", and shall provide technical assistance" 
and all that follows through "its application". 
(d) 
REIMBURSEMENT OF CHILD CARE INSTITUTIONS.—Section 
17(f)(2)(B) of the National School Lunch Act (42 U.S.C. 1766(f)(2)(B)) 
is amended by striking "two meals and two supplements or three 
meals and one supplement" and inserting "2 meals and 1 supple-
ment". 
(e) 
IMPROVED TARGETING OF DAY CARE HOME REIMBURSE-
MENTS.— 
(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS.—Sec-
tion 17(f)(3) of the National School Lunch Act (42 U.S.C. 
1766(f)(3)) is amended by striking "(3)(A) Institutions" and all 
that follows through the end of subparagraph (A) and inserting 
the following: 
"(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME 
SPONSORING ORGANIZATIONS.— 
"(A) REIMBURSEMENT FACTOR.— 
"(i) IN GENERAL.—^An institution that participates 
in the program under this section as a family or group 
day C£ire home sponsoring organization shall be pro-
vided, for payment to a home sponsored by the 
organization, reimbursement factors in accordance with 
this subparagraph for the cost of obtaining and prepar-
ing food and prescribed labor costs involved in provid-
ing meals under this section. 
"(ii) TIER I FAMILY OR GROUP DAY CARE HOMES.— 
"(I) DEFINITION OF TIER I FAMILY OR GROUP 
DAY CARE HOME.—In this paragraph, the term 'tier 
I family or group day care home' means— 
"(aa) a family or group day care home 
that is located in a geographic area, as defined 
by the Secretary based on census data, in 
which at least 50 percent of the children resid-
ing in the area are members of households 
whose incomes meet the income eligibility 
guidelines for free or reduced price meals 
under section 9; 
"(bb) a family or group day care home 
that is located in £in area served by a school 
enrolling elementary students in which at 
least 50 percent of the total number of children 
enrolled are certified eligible to receive free 
or reduced price school meals under this Act 
or the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.); or 
"(cc) a family or group day care home 
that is operated by a provider whose household 
meets the income eligibility guidelines for free 
or reduced price meals under section 9 and 
whose income is verified by the sponsoring 
organization of the home imder regulations 
established by the Secretary. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2295 
"(II) REIMBURSEMENT.—Except as provided in 
subclause (III), a tier I family or group day care 
home shall be provided reimbursement factors 
under this clause without a requirement for docu-
mentation of the costs described in clause (i), 
except that reimbursement shall not be provided 
under this subclause for meals or supplements 
served to the children of a person acting as a 
family or group day care home provider unless 
the children meet the income eligibility guidelines 
for free or reduced price meals under section 9. 
"(Ill) FACTORS.—Except as provided in sub-
clause (IV), the reimbursement factors applied to 
a home referred to in subclause (II) shall be the 
factors in effect on July 1,1996. 
"(IV) ADJUSTMENTS.—The reimbursement fac-
tors under this subparagraph shall be adjusted 
on July 1, 1997, and each July 1 thereafter, to 
reflect changes in the Consumer Price Index for 
food at home for the most recent 12-month period 
for which the data are available. The reimburse-
ment factors under this subpeiragraph shall be 
rounded to the nearest lower cent increment and 
based on the unrounded adjustment in effect on 
June 30 of the preceding school year, 
"(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.— 
"(I) IN GENERAL.— 
"(aa) FACTORS.—Except as provided in 
subclause (II), with respect to meals or supple-
ments served under this clause by a family 
or group day care home that does not meet 
the criteria set forth in clause (ii)(I), the 
reimbursement factors shall be 95 cents for 
lunches and suppers, 27 cents for breakfasts, 
and 13 cents for supplements. 
"(bb) ADJUSTMENTS.—The factors shall be 
adjusted on July 1, 1997, and each July 1 
thereafter, to reflect changes in the Consumer 
Price Index for food at home for the most 
recent 12-month period for which the data 
are available. The reimbursement 
factors 
under this item shall be rounded down to the 
nearest lower cent increment and based on 
the unrounded adjustment for the preceding 
12-month period. 
"(cc) REIMBURSEMENT.—^A family or group 
day care home shall be provided reimburse-
ment factors imder this subclause without a 
requirement for documentation of the costs 
described in clause (i), except that reimburse-
ment shall not be provided under this sub-
clause for meals or supplements served to the 
children of a person acting as a family or 
group 
day 
care 
home 
provider 
unless 
the children meet the income eligibility guide-
lines for free or reduced price meals imder 
section 9. 
110 STAT. 2296 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(II) OTHER FACTORS.—^A family or group day 
care home that does not meet the criteria set forth 
in clause (ii)(I) may elect to be provided reimburse-
ment factors determined in accordance with the 
following requirements: 
"(aa) CHILDREN ELIGIBLE FOR FREE OR 
REDUCED PRICE MEALS.—In the case of meals 
or supplements served under this subsection 
to children who are members of households 
whose incomes meet the income eligibility 
guidelines for free or reduced price meals 
imder section 9, the family or group day c£ire 
home shall be provided reimbursement factors 
set by the Secreteiry in accordance with clause 
(iiXIII). 
"(bb) INELIGIBLE CHILDREN.—In the case 
of meals or supplements served under this 
subsection to children who are members of 
households whose incomes do not meet the 
income eligibility guidelines, the family or 
group day care home shall be provided 
reimbursement factors in accordance with sub-
clause (I). 
"(Ill) INFORMATION AND DETERMINATIONS.— 
"(aa) IN GENERAL.—If a family or group 
day care home elects to claim the factors 
described in subclause (II), the family or group 
day care home sponsoring organization serving 
the home shall collect the necessary income 
information, as determined by the Secretary, 
from any parent or other caretaker to make 
the determinations specified in subclause (II) 
and shall make the determinations in accord-
ance with rules prescribed by the Secretary, 
"(bb) CATEGORICAL ELIGIBILITY.—In mak-
ing a determination under item (aa), a family 
or group day care home sponsoring organiza-
tion may consider a child participating in or 
subsidized under, or a child with a parent 
participating in or subsidized under, a feder-
ally or State supported child care or other 
benefit program with an income eligibility 
limit that does not exceed the eligibility stand-
ard for free or reduced price meals under sec-
tion 9 to be a child who is a member of a 
household whose income meets the income 
eligibility guidelines under section 9. 
"(cc) FACTORS FOR CHILDREN ONLY.—A 
family or group day care home may elect to 
receive the reimbursement factors prescribed 
under clause (ii)(III) solely for the children 
pgirticipating in a program referred to in item 
(bb) if the home elects not to have income 
statements collected from parents or other 
caretakers. 
"(IV) SIMPLIFIED MEAL COUNTING AND REPORT-
ING PROCEDURES.—^The Secretary shall prescribe 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2297 
simplified meal counting and reporting procedures 
for use by a family or group day care home that 
elects to claim the factors under subclause (II) 
and by a family or group day care home sponsoring 
organization that sponsors the home. The proce-
dures the Secretary prescribes may include 1 or 
more of the following: 
"(aa) Setting an annual percentage for 
each home of the number of meals served that 
are to be reimbursed in accordance with the 
reimbursement factors prescribed luider clause 
(iiXIII) and an annual percentage of the num-
ber of meals served that are to be reimbursed 
in accordance with the reimbursement factors 
prescribed under subclause (I), based on the 
family income of children enrolled in the home 
in a specified month or other period. 
"(bb) Placing a home into 1 of 2 or more 
reimbursement categories annually based on 
the percentage of children in the home whose 
households have incomes that meet the income 
eligibility guidelines under section 9, with each 
such reimbursement category carrying a set 
of reimbursement factors such as the factors 
prescribed vuider clause (ii)(III) or subclause 
(I) or factors established within the range of 
factors prescribed under clause (iiXIII) and 
subclause (I). 
"(cc) Such other simplified procedures as 
the Secretary may prescribe. 
"(V) MINIMUM VERIFICATION REQUIREMENTS.— 
The Secretary may establish any minimum ver-
ification requirements that are necessary to carry 
out this clause.". 
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY 
OR GROUP DAY CARE HOMES.—Section 17(f)(3) of the National 
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by adding 
at the end the following: 
"(D) 
GRANTS TO STATES TO PROVIDE ASSISTANCE TO 
FAMILY 
OR 
GROUP 
DAY 
CARE 
HOMES.— 
"
(
i
) 
IN 
GENERAL.— 
"(I) RESERVATION.—From amoimts made avail-
able to carry out this section, the Secretary shall 
reserve $5,000,000 of the amount made available 
for fiscal year 1997. 
"(II) PURPOSE.—The Secretary shall use the 
funds made available under subclause (I) to pro-
vide grants to States for the purpose of providing— 
"(aa) assistance, including grants, to fam-
ily and day care home sponsoring orgeuiiza-
tions and other appropriate organizations, in 
securing £uid providing training, materials, 
automated data processing assistance, and 
other assistance for the staff of the sponsoring 
organizations; and 
"(bb) training and other assistance to 
family and group day care homes in the 
110 STAT. 2298 
PUBLIC LAW 104-193—AUG. 22, 1996 
implementation of the amendment to subpara-
graph (A) made by section 708(e)(1) of the 
Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996. 
"(ii) ALLOCATION.—The Secretary shall allocate 
from the funds reserved under clause (i)(I)— 
"(I) 
$30,000 
in 
base 
funding 
to 
each 
State; and 
"(II) any remaining amoimt among the States, 
based on the number of family day care homes 
participating in the program in a State during 
fiscal year 1995 as a percentage of the number 
of all family day care homes participating in the 
program during fiscal year 1995. 
"(iii) RETENTION OF FUNDS.—Of the amount of 
funds made available to a State for fiscal year 1997 
under clause (i), the State may retain not to exceed 
30 percent of the amount to carry out this subpara-
graph. 
"(iv) 
ADDITIONAL 
PAYMENTS.—Any 
payments 
received under this subparagraph shall be in addition 
to pa5nnents that a State receives under subparagraph 
(A).". 
(3) PROVISION OF DATA.—Section 17(f)(3) of the National 
School Lunch Act (42 U.S.C. 1766(f)(3)), as amended by para-
graph (2), is amended by adding at the end the following: 
"(E) 
PROVISION OF DATA TO FAMILY OR GROUP DAY 
CARE HOME SPONSORING ORGANIZATIONS.— 
"(i) CENSUS DATA.—The Secretary shall provide 
to each State agency administering a child and adult 
care food program imder this section data from the 
most recent decennial census survey or other appro-
priate census survey for which the data are available 
showing which areas in the State meet the require-
ments of subparagraph (A)(ii)(I)(aa). The State agency 
shall provide the data to family or group day care 
home sponsoring organizations located in the State, 
"(ii) SCHOOL DATA.— 
"(I) IN GENERAL.—^A State agency administer-
ing the school lunch program under this Act or 
the school breakfast program under the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
shall provide to approved family or group day care 
home sponsoring organizations a list of schools 
serving elementary school children in the State 
in which not less than V
^ of the children enrolled 
are certified to receive free or reduced price meals. 
The State agency shall collect the data necessary 
to create the list annually and provide the list 
on a timely basis to any approved family or group 
day care home sponsoring organization 
that 
requests the list. 
"(II) USE OF DATA FROM PRECEDING SCHOOL 
YEAR.—In determining for a fiscal year or other 
annual period whether a home qualifies as a tier 
I family or group day care home under subpara-
graph (A)(ii)(I), the State agency administering the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2299 
program under this section, and a family or group 
day care home sponsoring organization, shall use 
the most current available data at the time of 
the determination. 
"(iii) DURATION OF DETERMINATION.—For purposes 
of this section, a determination that a family or group 
day care home is located in an area that qualifies 
the home as a tier I family or group day care home 
(as the term is defined in subparagraph (A)(ii)(I)), shall 
be in effect for 3 years (unless the determination is 
made on the basis of census data, in which case the 
determination shall remain in effect until more recent 
census data are available) iinless the State agency 
determines that the area in which the home is located 
no longer qualifies the home as a tier I family or 
group day care home.". 
(4) 
CONFORMING 
AMENDMENTS.—Section 
17(c) 
of 
the 
National School Lunch Act (42 U.S.C. 1766(c)) is amended 
by inserting "except as provided in subsection (f)(3)," after 
"For purposes of this section," each place it appears in para-
graphs (1), (2), and (3). 
(f) REIMBURSEMENT.—Section 17(f) of the National School 
Lunch Act (42 U.S.C. 1766(f)) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (B), by striking the third and 
fourth sentences; and 
(B) in subparagraph (C)(ii), by striking "conduct out-
reach" and all that follows through "may become" and 
inserting "assist unlicensed family or group day care homes 
in becoming"; and 
(2) in the first sentence of paragraph (4), by striking "shall" 
and inserting "may". 
(g) NUTRITIONAL 
REQUIREMENTS.—Section 17(g)(1) of the 
National School Lunch Act (42 U.S.C. 1766(g)(1)) is amended— 
(1) 
in 
subparagraph 
(A), 
by 
striking 
the 
second 
sentence; and 
(2) in subparagraph (B), by striking the second sentence, 
(h) 
ELIMINATION 
OF 
STATE 
PAPERWORK 
AND 
OUTREACH 
BURDEN.—Section 17 of the National School Limch Act (42 U.S.C. 
1766) is amended by striking subsection (k) and inserting the follow-
ing: 
"(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participat-
ing in the program established under this section shall provide 
sufficient training, technical assistance, and monitoring to facilitate 
effective operation of the program. The Secretary shall assist the 
State in developing pleins to fulfill the requirements of this sub-
section.". 
(i) RECORDS.—The second sentence of section 17(m) of the 
National School Lunch Act (42 U.S.C. 1766(m)) is amended by 
striking "at all times" and inserting "at any reasonable time". 
(j) UNNEEDED PROVISION.—Section 17 of the National School 
Lunch Act is amended by striking subsection (q). 
42 USC 1766. 
(k) EFFECTIVE DATE.— 
42 use i766 
(1) IN GENERAL.—Except as provided in paragraph (2), the note. 
amendments made by this section shall become effective on 
the date of enactment of this Act. 
110 STAT. 2300 
PUBLIC LAW 104-193—AUG. 22, 1996 
(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSE-
MENTS.—^The amendments made by paragraphs (1) and (4) of 
subsection (e) shall become effective on July 1,1997. 
42 use 1766 
(3) REGULATIONS.— 
note. 
(A) INTERIM REGULATIONS.—Not later than January 
1, 1997, the Secretary of Agriculture shsdl issue interim 
regulations to implement— 
(i) the amendments made by paragraphs (1), (3), 
2ind (4) of subsection (e); and 
(ii) section 17(f)(3)(C) of the National School Lunch 
Act (42 U.S.C. 1766(f)(3)(C)). 
(B) FINAL REGULATIONS.—Not later than July 1, 1997, 
the Secretary of Agriculture shall issue final regulations 
to implement the provisions of law referred to in subpara-
graph (A). 
42 use 1766 
(1) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM PARTICIPA-
note. 
TION AND FAMILY DAY CARE LICENSING.— 
(1) IN GENERAL.—The Secretary of Agriculture, in conjunc-
tion with the Secretary of Health and Humein Services, shall 
study 
the impact 
of the amendments 
made 
by this 
section on— 
(A) the number of family day care homes participating 
in the child and adult care food program established under 
section 17 of the National School Lunch Act (42 U.S.C. 
1766); 
(B) the number of day care home sponsoring organiza-
tions participating in the program; 
(C) the number of day care homes that are licensed, 
certified, registered, or approved by each State in accord-
ance with regulations issued by the Secretary; 
(D) the rate of growth of the numbers referred to 
in subparagraphs (A) through (C); 
(E) the nutritional adequacy and quality of meals 
served in family day care homes that— 
(i) received reimbursement under the program 
prior to the amendments made by this section but 
do not receive reimbursement after the amendments 
made by this section; or 
(ii) received full reimbursement under the program 
prior to the amendments made by this section but 
do not receive full reimbursement after the amend-
ments made by this section; and 
(F) the proportion of low-income children participating 
in the program prior to the amendments made by this 
section and the proportion of low-income children partici-
pating in the program after the amendments made by 
this section. 
(2) REQUIRED DATA.—Each State agency participating in 
the child and adult care food program under section 17 of 
the National School Lunch Act (42 U.S.C. 1766) shall submit 
to the Secretary of Agriculture data on— 
(A) the nimiber of family day care homes participating 
in the program on June 30, 1997, and June 30, 1998; 
(B) the number of family day care homes licensed, 
certified, registered, or approved for service on June 30, 
1997, and June 30, 1998; and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2301 
(C) such other data as the Secretary may require to 
cany out this subsection. 
(3) SUBMISSION OF REPORT.—Not later than 2 years after 
the date of enactment of this section, the Secretary of Agri-
culture shall submit the study required under this subsection 
to the Committee on Economic and Educational Opportiuiities 
of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
SEC. 709. PILOT PROJECTS. 
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the National 
School Lunch Act (42 U.S.C. 1769(d)) is amended— 
(1) by striking paragraph (3); and 
(2) by redesignating paragraphs (4) and (5) as paragraphs 
(3) and (4), respectively. 
(b) DEMONSTRATION PROJECT OUTSIDE SCHOOL HOURS.—Sec-
tion 18(e) of the National School Lunch Act (42 U.S.C. 1769(e)) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) by striking "(A)"; and 
(ii) by striking "shall" and inserting "may"; and 
(B) by striking subparagraph (B); and 
(2) by striking paragraph (5) and inserting the following: 
"(5) 
AUTHORIZATION 
OF 
APPROPRIATIONS.—There 
are 
authorized to be appropriated to carry out this subsection such 
sums as are necessary for each of fiscal years 1997 and 1998.". 
SEC. 710. REDUCTION OF PAPERWORK. 
Section 19 of the National School Lunch Act (42 U.S.C. 1769a) 
is repealed. 
SEC. 711. INFORMATION ON INCOME EUGBBILnY. 
Section 23 of the National School Lunch Act (42 U.S.C. 1769d) 
is repealed. 
SEC. 712. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS. 
Section 24 of the National School Lunch Act (42 U.S.C. 1769e) 
is repealed. 
Subtitle B—Child Nutrition Act of 1966 
SEC. 721. SPECIAL MILK PROGRAM. 
Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1772(a)(3)) is amended by striking "the Trust Territory of the Pacific 
Islands" and inserting "the Commonwealth of the Northern Mariana 
Islands". 
SEC. 722. FREE AND REDUCED PRICE POLICY STATEMENT. 
Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1773(b)(1)) is amended by adding at the end the following: 
"(E) FREE AND REDUCED PRICE POLICY STATEMENT.— 
After the initial submission, a school food authority shall 
not be required to submit a firee and reduced price policy 
statement to a State educational agency under this Act 
unless there is a substantive change in the free and reduced 
price policy of the school food authority. A routine change 
110 STAT. 2302 
PUBLIC LAW 104-193—AUG. 22, 1996 
in the policy of a school food authority, such as an £innual 
adjustment of the income eligibility guidelines for free and 
reduced price meals, shall not be sufficient cause for requir-
ing the school food authority to submit a policy statement.". 
SEC. 723. SCHOOL BREAKFAST PROGRAM AUTHORIZATION. 
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD PREPARA-
TION.—Section 4(e)(1)(B) of the Child Nutrition Act of 1966 (42 
U.S.C. 1773(e)(1)(B)) is amended by striking the second sentence. 
(b) EXPANSION OF PROGRAM; STARTUP AND EXPANSION COSTS.— 
(1) IN GENERAL.—Section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773) is amended by striking subsections (f) 
and (g). 
42 use 1773 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
note. 
(1) shall become effective on October 1,1996. 
SEC. 724. STATE ADMINISTRATIVE EXPENSES. 
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION ADMINISTRA-
TION; STUDIES.—Section 7 of the Child Nutrition Act of 1966 (42 
U.S.C. 1776) is amended— 
(1) by striking subsections (e) and (h); and 
(2) by redesignating subsections (f), (g), and (i) as sub-
sections (e), (f), and (g), respectively. 
(b) APPROVAL OF CHANGES.—Section 7(e) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1776(e)), as so redesignated, is amended— 
(1) by striking "each year an annual plan" £ind inserting 
"the initial fiscal year a plan"; and 
(2) by adding at the end the following: "After submitting 
the initial plan, a State shall be required to submit to the 
Secretary for approval only a substantive change in the plan.". 
SEC. 725. REGULATIONS. 
Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C. 
1779(b)) is amended— 
(1) in paragraph (1), by striking "(1)"; and 
(2) by striking paragraphs (2) through (4). 
SEC. 726. PROHmrnONS. 
Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C. 
1780(a)) is amended by striking "neither the Secretary nor the 
State shall" and inserting "the Secretary shall not". 
SEC. 727. MISCELLANEOUS PROVISIONS AND DEFINITIONS. 
Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) 
is amended— 
(1) in paragraph (1), by striking "the Trust Territory of 
the Pacific Islands" and inserting "the Commonwealth of the 
Northern Mariana Islands"; and 
(2) in the first sentence of paragraph (3)— 
(A) in subparagraph (A), by inserting "and" at the 
end; and 
(B) by striking ", and (C)" and all that follows through 
"Governor of Puerto Rico". 
SEC. 728. ACCOUNTS AND RECORDS. 
The second sentence of section 16(a) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1785(a)) is amended by striking "at all 
times be available" and inserting "be available at any reasonable 
time". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2303 
SEC. 729. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR 
WOMEN, INFANTS, AND CHILDREN. 
(a) DEFINITIONS.—Section 17(b) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(b)) is amended— 
(1) in paragraph (15)(B)(iii), by inserting "of not more than 
365 days" after "accommodation"; and 
(2) in paragraph (16)— 
(A) in subparagraph (A), by adding "and" at the 
end; and 
(B) in subparagraph (B), by striking "; and" and insert-
ing a period; and 
(C) by striking subparagraph (C). 
(b) SECRETARY'S PROMOTION OF WIC.—Section 17(c) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(c)) is amended by striking 
paragraph (5). 
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(d)) is amended by striking para-
graph (4). 
(d) NUTRITION EDUCATION.—Section 17(e) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(e)) is amended— 
(1) in paragraph (2), by striking the third sentence; 
(2) in paragraph (4)— 
(A) in the matter preceding subparagraph (A), by strik-
ing "shall"; 
(B) by striking subparagraph (A); 
(C) by redesignating subparagraphs (B) and (C) as 
subparagraphs (A) £ind (B), respectively; 
(D) in subparagraph (A), as so redesignated— 
(i) by inserting "shall" before "provide"; and 
(ii) by striking "and" at the end; 
(E) in subparagraph (B), as so redesignated— 
(i) by inserting "shall" before "provide"; and 
(ii) by striking the period at the end and inserting 
"; and"; and 
(F) by adding at the end the following: 
"(C) may provide a local agency with materials describing 
other programs for which a participant in the program may 
be eligible."; 
(3) in paragraph (5), by striking "The State agency shall 
ensure that each" and inserting "Each"; and 
(4) by striking paragraph (6). 
(e) STATE PLAN.—Section 17(f) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(f)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) by strucing "annually to the Secretary, by a 
date specified by the Secretary, a" and inserting "to 
the Secretary, by a date specified by the Secretary, 
an initial"; and 
(ii) by adding at the end the following: "After 
submitting the initial plan, a State shall be required 
to submit to the Secretary for approval only a sub-
stantive change in the plan."; 
(B) in subparagraph (C)— 
(i) by striking clause (iii) and inserting the 
following: 
110 STAT. 2304 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(iii) a pl£in to coordinate operations under the program 
with other services or programs that may benefit participants 
in, and applicants for, the program;"; 
(ii) in clause (vi), by inserting after "in the State" 
the following: "(including a plan to improve access 
to the program for participants and 
prospective 
applicants who are employed, or who reside in rural 
areas)"; 
(iii) in clause (vii), by striking "to provide program 
benefits" and all that follows through "emphasis on" 
and inserting "for"; 
(iv) by striking clauses (ix), (x), and (xii); 
(v) in clause (xiii), by striking "may require" and 
inserting "may reasonably require"; 
(vi) by redesignating clauses (xi) and (xiii), as so 
amended, as clauses (ix) and (x), respectively; and 
(vii) in clause (ix), as so redesignated, by adding 
"£ind" at the end; 
(C) by striking subparagraph (D); and 
(D) by redesignating subparagraph (E) as subpara-
graph (D); 
(2) by striking paragraphs (6) and (22); 
(3) in the second sentence of paragraph (5), by striking 
"at all times be available" and inserting "be available at any 
reasonable time"; 
(4) in paragraph (9)(B), by striking the second sentence; 
(5) in the first sentence of paragraph (11), by striking 
", including standards that will ensure sufficient State agency 
staff"; 
(6) in peiragraph (12), by striking the third sentence; 
(7) in paragraph (14), by striking "shall" and inserting 
"may"; 
(8) in paragraph (17), by striking "and to accommodate" 
and all that follows through "facilities"; 
(9) in paragraph (19), by striking "shall" and inserting 
"may"; and 
(10) by redesignating paragraphs (7) through (21) as para-
graphs (6) through (20), and paragraphs (23) and (24) as para-
graphs (21) and (22), respectively. 
(f) INFORMATION.—Section 17(g) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(g)) is amended— 
(1) in paragraph (5), by striking "the report required under 
subsection (d)(4)" and inserting "reports on progreun participant 
characteristics"; and 
(2) by striking paragraph (6). 
(g) PROCUREMENT OF INFANT FORMULA.— 
(1) IN GENERAL.—Section 17(h) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(h)) is amended— 
(A) in paragraph (4)(E), by striking "and, on" and all 
that follows through "(d)(4)"; and 
(B) in paragraph (8)— 
(i) by striking subparagraphs (A), (C), and (M); 
(ii) in subparagraph (G)— 
(I) in clause (i), by striking "(i)"; and 
(II) by striking clauses (ii) through (ix); 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2305 
(iii) in subparagraph (I), by striking "Sec-
retary—" and all that follows through "(v) may" and 
inserting "Secretary ma/'; 
(iv) by redesignating subparagraphs (B) and (D) 
through (L) as subparagraphs (A) and (B) through 
(J), respectively; 
(v) in subparagraph (A)(i), as so redesignated, by 
striking "subparagrapns (C), (D), and (EXiii), in carry-
ing out subparagraph (A)," and inserting "subpara-
graphs (B) and (CXiii),"; 
(vi) in subparagraph (B)(i), as so redesignated, by 
striking "subpziragraph (B)" each place it appears and 
inserting "subparagraph (A)"; and 
(vii) in subparagraph (C)(iii), as so redesignated, 
by striking "subparagraph (B)" and inserting "subpsira-
graphCAr 
(2) APPLICATION.—The amendments made by paragraph 42 U
S
C 1786 
(1) shall not apply to a contract for the procurement of infant note. 
formula xinder section 17(h)(8) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(h)(8)) that is in effect on the date of 
enactment of this subsection. 
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL, INFANT, AND 
FETAL NUTRITION.—Section 17(k)(3) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(k)(3)) is amended by striking "Secretary shall 
designate" and inserting "Council shall elect". 
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEMONSTRATION; 
GRANTS FOR INFORMATION AND DATA SYSTEM.—Section 17 of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786) is amended by striking 
subsections (n), (o), and (p). 
(j) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED 
UNDER THE FOOD STAMP PROGRAM.—Section 17 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786), as amended by subsection (i), 
is amended by adding at the end the following: 
"(n) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED 
UNDER THE FOOD STAMP PROGRAM.— 
"(1) IN GENERAL.—^The Secretary shall issue regulations Regulations, 
providing criteria for the disqualification imder this section 
of an approved vendor that is disqualified from accepting bene-
fits under the food stamp program established imder the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et sea.). 
"(2) TERMS.—^A disqualification imder paragraph (1)— 
"(A) shall be for the same period as the disqualification 
fi"om the program referred to in paragraph (1); 
"(B) may begin at a later date than the disqualification 
fi-om the program referred to in paragraph (1); and 
"(C) shsLll not be subject to judici^ or administrative 
review.". 
SEC. 730. CASH GRANTS FOR NUTRITION EDUCATION. 
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787) 
is repealed. 
SEC. 731. NUTRITION EDUCATION AND TRAINING. 
(a) FINDINGS.—Section 19 of the Child Nutrition Act of 1966 
(42 U.S.C. 1788) is amended— 
(1) in subsection (a), by striking "that—" guid all that 
follows through the period at the end and inserting "that effec-
tive dissemination of scientificsdly valid information to children 
110 STAT. 2306 
PUBLIC LAW 104-193—AUG. 22, 1996 
participating or eligible to participate in the school lunch and 
related child nutrition programs should be encouraged."; and 
(2) in subsection (b), by striking "encourage" and all that 
follows through "establishing" and inserting "establish". 
(b) USE OF FUNDS.—Section 19(f) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1788(f)) is amended— 
(1) in paragraph (1)— 
(A) by striking subparagraph (B); and 
(B) in subparagraph (A)— 
(i) by striking "(A)"; 
(ii) by striking clauses (ix) through (xix); 
(iii) by redesignating clauses (i) through (viii) and 
(xx) as subparagraphs (A) through (H) and (I), respec-
tively; 
(iv) in subparagraph (I), as so redesignated, by 
striking the period at the end and inserting "; and"; 
and 
(v) by adding at the end the following: 
"(J) other appropriate related activities, as determined by 
the State."; 
(2) by striking paragraphs (2) and (4); and 
(3) by redesignating paragraph (3) as paragraph (2). 
(c) ACCOUNTS, RECORDS, AND REPORTS.—The second sentence 
of section 19(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(g)(1)) is amended by striking "at all times be available" and 
inserting "be available at any reasonable time". 
(d) STATE COORDINATORS FOR NUTRITION; STATE PLAN.—Section 
19(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(h)) is 
amended— 
(1) in the second sentence of paragraph (1)— 
(A) by striking "as provided in paragraph (2) of this 
subsection"; and 
(B) by striking "as provided in paragraph (3) of this 
subsection"; 
(2) in paragraph (2), by striking the second and third 
sentences; and 
(3) by striking paragraph (3). 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 19(i) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1788(i)) is amended— 
(1) in the first sentence of paragraph (2)(A), by striking 
"and each succeeding fiscal year"; 
(2) by redesignating paragraphs (3) and (4) as paragraphs 
(4) and (5), respectively; and 
(3) by inserting after paragraph (2) the following: 
"(3) FISCAL YEARS 1997 THROUGH 2002.— 
"(A) IN GENERAL.—^There are authorized to be appro-
priated to carry out this section $10,000,000 for each of 
fiscal years 1997 through 2002. 
"(B) GRANTS.— 
"(i) IN GENERAL.—Grants to each State from the 
amounts made available under subparagraph (A) shall 
be based on a rate of 50 cents for each cWld enrolled 
in schools or institutions within the State, except that 
no State shall receive an amount less than $75,000 
per fiscal year. 
"(ii) INSUFFICIENT FUNDS.—If the amount made 
available for any fiscal year is insufficient to pay the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2307 
amount to which each State is entitled under clause 
(i), the amount of each grant shall be ratably reduced,". 
if) ASSESSMENT.—Section 19 of the Child Nutrition Act of 1966 
(42 U.S.C. 1788) is amended by striking subsection (j). 
(g) EFFECTIVE DATE,—The amendments made by subsection 
42 use 1788 
(e) shall become effective on October 1,1996. 
note. 
Subtitle C—^Miscellaneous Provisions 
SEC. 741. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST, 42 USC 1751 
AND SUMMER FOOD SERVICE PROGRAMS. 
note. 
(a) COORDINATION,— 
(1) IN GENERAL,—^The Secretary of Agriculture shall develop 
proposed changes to the regulations imder the school lunch 
program under the National School Lunch Act (42 U,S,C, 1751 
et seq,), the summer food service program under section 13 
of that Act (42 U,S.C, 1761), and the school breakfast program 
under section 4 of the Child Nutrition Act of 1966 (42 U,S,C. 
1773), for the purpose of simplifying and coordinating those 
programs into a comprehensive meal program. 
(2) CONSULTATION,—In developing proposed changes to the 
regulations under paragraph (1), the Secretary of Agriculture 
shall consult with locm. State, and regional administrators 
of the programs described in such paragraph, 
(b) REPORT,—Not later than November 1, 1997, the Secretary 
of Agriculture shall submit to the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate and the Committee on Economic 
and Educational Opportunities of the House of Representatives 
a report containing the proposed changes developed under sub-
section (a). 
SEC. 742. REQUIREMENTS RELATING TO PROVISION OF BENEFITS 
8 USC1615. 
BASED ON CITIZENSHIP, ALIENAGE, OR IMMIGRATION 
STATUS UNDER THE NATIONAL SCHOOL LUNCH ACT, THE 
CHILD NUTRITION ACT OF 1966, AND CERTAIN OTHER 
ACTS. 
(a) SCHOOL LUNCH AND BREAKFAST PROGRAMS,—Notwithstand-
ing any other provision of this Act, an individual who is eligible 
to receive free public education benefits under State or local law 
shall not be ineligible to receive benefits provided under the school 
lunch program under the National School Limch Act (42 U,S,C. 
1751 et seq.) or the school breakfast program imder section 4 
of the Child Nutrition Act of 1966 (42 U,S,C, 1773) on the basis 
of citizenship, alienage, or immigration status, 
(b) OTHER PROGRAMS,— 
(1) IN GENERAL,—Nothing in this Act shall prohibit or 
require a State to provide to an individual who is not a citizen 
or a qualified alien, as defined in section 431(b), benefits under 
programs established under the provisions of law described 
in paragraph (2), 
(2) PROVISIONS OF LAW DESCRIBED,—The provisions of law 
described in this paragraph are the following: 
(A) Programs (other than the school lunch program 
and the school breakfast program) under the National 
School Lunch Act (42 U.S.C, 1751 et seq,) and the Child 
Nutrition Act of 1966 (42 U,S,C, 1771 et seq.). 
29-194 O - 96 - 19 : QL 3 Part 3 
110 STAT. 2308 
PUBLIC LAW 104-193—AUG. 22, 1996 
(B) Section 4 of the Agriculture and Consumer Protec-
tion Act of 1973 (7 U.S.C. 612c note). 
(C) The Emergency Food Assistance Act of 1983 (7 
U.S.C 612c note). 
(D) The food distribution program on Indian reserva-
tions estabHshed under section 4(b) of the Food Stamp 
Act of 1977 (7 U.S.C 2013(b)). 
TITLE VIII—FOOD STAMPS AND 
COMMODITY DISTRIBUTION 
Subtitle A—Food Stamp Program 
SEC. 801. DEFINITION OF CERTIFICATION PERIOD. 
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) 
is amended by striking "Except as provided" and all that follows 
and inserting the following: "The certification period shall not 
exceed 12 months, except that the certification period may be up 
to 24 months if all adult household members are elderly or disabled. 
A State agency shall have at least 1 contact with each certified 
household every 12 months.". 
SEC. 802. DEFINITION OF COUPON. 
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) 
is amended by striking "or t5rpe of certificate" and inserting "type 
of certificate, authorization card, cash or check issued in lieu of 
a coupon, or access device, including an electronic benefit transfer 
card or personal identification number,". 
SEC. 803. TREATMENT OF CHILDREN LIVING AT HOME. 
The second sentence of section 3(i) of the Food Stamp Act 
of 1977 (7 U.S.C. 2012(i)) is amended by striking "(who are not 
themselves parents living with their children or married and living 
with their spouses)". 
SEC. 804. ADJUSTMENT OF THRIFTY FOOD PLAN. 
The second sentence of section 3(o) of the Food Stamp Act 
of 1977 (7 U.S.C. 2012(o)) is amended— 
(1) by striking "shall (1) make" and inserting the following: 
"shall— 
"(1) make"; 
(2) by striking "scale, (2) make" and inserting the following: 
"scale; 
"(2) make"; 
(3) by striking "Alaska, (3) make" and inserting the 
following: "Alaska; 
"(3) make"; and 
(4) by striking "Columbia, (4) through" and all that follows 
through the end of the subsection and inserting the following: 
"Columbia; and 
"(4) on October 1, 1996, and each October 1 thereafter, 
adjust the cost of the diet to reflect the cost of the diet in 
the preceding June, and round the result to the nearest lower 
dollar increment for each household size, except that on October 
1, 1996, the Secretary may not reduce the cost of the diet 
in effect on September 30, 1996.". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2309 
SEC. 805. DEFINITION OF HOMELESS INDIVIDUAL. 
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(s)(2)(C)) is amended by inserting "for not more than 90 days" 
after "temporary accommodation". 
SEC. 806. STATE OPTION FOR ELIGIBILITY STANDARDS. 
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) 
is amended by striking "(b) The Secretar/' £ind inserting the 
following: 
"(b) ELIGIBILITY STANDARDS.—Except as otherwise provided in 
this Act, the Secretary". 
SEC. 807. EARNINGS OF STUDENTS. 
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(d)(7)) is amended by striking "21" and inserting "17". 
SEC. 808. ENERGY ASSISTANCE. 
(a) IN GENERAL.—Section 5(d) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and insert-
ing the following: "(11)(A) any payments or allowances made for 
the purpose of providing energy assistance under any Federal law 
(other than part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.)), or (B) a 1-time payment or allowance made imder 
a Federal or State law for the costs of weatherization or emergency 
repair or replacement of an uns£ife or inoperative furnace or other 
heating or cooling device,". 
(b) CONFORMING AMENDMENTS.—Section 5(k) of the Food Stamp 
Act of 1977 (7 U.S.C. 2014(k)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking "plan for aid to 
families with dependent children approved" and inserting 
"program fimded"; and 
(B) in subparagraph (B), by striking ", not including 
energy or utility-cost assistance,"; 
(2) in paragraph (2), by striking subparagraph (C) and 
inserting the following: 
"(C) a pa3nnent or allowance described in subsection 
(d)(ll);"; and 
(3) by adding at the end the following: 
"(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS.— 
"(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of 
subsection (d)(1), a payment made under a State law (other 
than a law referred to in paragraph (2)(H)) to provide 
energy assistance to a household shall be considered money 
payable directly to the household. 
"(B) ENERGY ASSISTANCE EXPENSES.—For purposes of 
subsection (e)(7), an expense paid on behalf of a household 
under a State law to provide energy assistance shall be 
considered an out-of-pocket expense incurred and paid by 
the household.". 
SEC. 809. DEDUCTIONS FROM INCOME. 
(a) IN GENERAL.—Section 5 of the Food Stamp Act of 1977 
(7 U.S.C. 2014) is amended by striking subsection (e) and inserting 
the following: 
"(e) DEDUCTIONS FROM INCOME.— 
"(1) STANDARD DEDUCTION.—The Secretary shall allow a 
standsird deduction for each household in the 48 contiguous 
110 STAT. 2310 
PUBLIC LAW 104-193—AUG. 22, 1996 
States and the District of Columbia, Alaska, Hawaii, Guam, 
and the Virgin Islands of the United States of $134, $229, 
$189, $269, and $118, respectively. 
"(2) EARNED INCOME DEDUCTION.— 
"(A) DEFINITION OF EARNED INCOME.—In this para-
graph, the term 'earned income' does not include— 
"(i) income excluded by subsection (d); or 
"(ii) any portion of income earned under a work 
supplementation or support program, as defined under 
section 16(b), that is attributable to public assisteince. 
"(B) DEDUCTION.—Except as provided in subparagraph 
(C), a household with earned income shall be allowed a 
deduction of 20 percent of all earned income to compensate 
for taxes, other mandatory deductions from salary, and 
work expenses. 
"(C) EXCEPTION.—The deduction described in subpara-
graph (B) shall not be allowed with respect to determining 
an overissuance due to the failure of a household to report 
earned income in a timely manner. 
"(3) DEPENDENT CARE DEDUCTION.— 
"(A) IN GENERAL.—^A household shall be entitled, with 
respect to expenses (other than excluded expenses described 
in subparagraph (B)) for dependent care, to a dependent 
care deduction, the maximum allowable level of which shall 
be $200 per month for each dependent child under 2 years 
of age and $175 per month for each other dependent, for 
the actual cost of payments necessary for the care of a 
dependent if the care enables a household member to accept 
or continue employment, or training or education that is 
preparatory for employment. 
"(B) EXCLUDED EXPENSES.—The excluded 
expenses 
referred to in subparagraph (A) are— 
"(i) expenses paid on behalf of the household by 
a third party; 
"(ii) amounts made available and excluded, for the 
expenses referred to in subparagraph (A), under sub-
section (d)(3); and 
"(iii) expenses that are paid under section 6(d)(4). 
"(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.— 
"(A) IN GENERAL.—A household shall be entitled to 
a deduction for child support payments made by a house-
hold member to or for an individual who is not a member 
of the household if the household member is legally obli-
gated to make the pa5nnents. 
"(B) METHODS FOR DETERMINING AMOUNT.—The Sec-
retary may prescribe by regulation the methods, including 
calculation on a retrospective basis, that a State agency 
shall use to determine the amount of the deduction for 
child support payments. 
"(5) HOMELESS SHELTER ALLOWANCE.—Under rules pre-
scribed by the Secretary, a State agency may develop a standard 
homeless shelter allowance, which shall not exceed $143 per 
month, for such expenses as may reasonably be expected to 
be incurred by households in which all members are homeless 
individuals but are not receiving free shelter throughout the 
month. A State agency that develops the allowance may use 
the allowance in determining eligibility and allotments for the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2311 
households. The State agency may make a household with 
extremely low shelter costs ineligible for the allowance. 
"(6) EXCESS MEDICAL EXPENSE DEDUCTION.— 
"(A) IN GENERAL.—^A household containing an elderly 
or disabled member shall be entitled, with respect to 
expenses other than expenses paid on behalf of the house-
hold by a third party, to an excess medical expense deduc-
tion for the portion of the actual costs of allowable medical 
expenses, incurred by the elderly or disabled member, 
exclusive of special diets, that exceeds $35 per month. 
"(B) METHOD OF CLAIMING DEDUCTION.— 
"(i) IN GENERAL.—A State agency shall offer an 
eligible household under subparagraph (A) a method 
of claiming a deduction for recurring medical expenses 
that are initially verified under the excess medical 
expense deduction in lieu of submitting information 
on, or verification of, actual expenses on a monthly 
basis. 
"(ii) METHOD.—The method described in clause (i) 
shall— 
"(I) be designed to minimize the burden for 
the eligible elderly or disabled household member 
choosing to deduct the recurrent medical expenses 
of the member pursuant to the method; 
"(II) rely on reasonable estimates of the 
expected medical expenses of the member for the 
certification period (including changes that can be 
reasonably anticipated based on available informa-
tion about the medical condition of the member, 
public or private medical insurance coverage, and 
the current verified medical expenses incurred by 
the member); and 
"(III) not require further reporting or verifica-
tion of a change in medical expenses if such a 
change has been anticipated for the certification 
period. 
"(7) EXCESS SHELTER EXPENSE DEDUCTION.— 
"(A) IN GENERAL.—A household shall be entitled, with 
respect to expenses other than expenses paid on behalf 
of the household by a third party, to an excess shelter 
expense deduction to the extent that the monthly amount 
expended by a household for shelter exceeds an amount 
equal to 50 percent of monthly household income afl;er 
all other applicable deductions have been allowed. 
"(B) MAXIMUM AMOUNT OF DEDUCTION.—In the case 
of a household that does not contain an elderly or disabled 
individual, in the 48 contiguous States and the District 
of Columbia, Alaska, Hawaii, Guam, euid the Virgin Islands 
of the United States, the excess shelter expense deduction 
shall not exceed— 
"(i) for the period beginning on the date of enact-
ment of this subparagraph and ending on December 
31, 1996, $247, $429, $353, $300, and $182 per month, 
respectively; 
"(ii) for the period beginning on January 1, 1997, 
and ending on September 30, 1998, $250, $434, $357, 
$304, and $184 per month, respectively; 
110 STAT. 2312 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(iii) for fiscal years 1999 and 2000, $275, $478, 
$393, $334, and $203 per month, respectively; and 
"(iv) for fiscal year 2001 and each subsequent fiscal 
year, $300, $521, $429, $364, and $221 per month, 
respectively. 
"(C) STANDARD UTILITY ALLOWANCE.— 
"(i) IN GENERAL.—In computing the excess shelter 
expense deduction, a State agency may use a standard 
utility allowance in accordance with 
regulations 
promulgated by the Secretary, except that a State 
agency may use an allowance that does not fluctuate 
within a yeaoc to reflect seasonal variations. 
"(ii) 
RESTRICTIONS ON 
HEATING AND COOLING 
EXPENSES.—^An allowance for a heating or cooling 
expense may not be used in the case of a household 
t h a t -
'll) does not incur a heating or cooling 
expense, as the case may be; 
"(II) does incur a heating or cooling expense 
but is located in a public housing unit that has 
central utility meters and charges households, 
with regard to the expense, only for excess utility 
costs; or 
"(III) shares the expense with, and lives with, 
another individual not participating in the food 
stamp program, another household participating 
in the food stamp program, or both, unless the 
allowance is prorated between the household and 
the other individual, household, or both, 
"(iii) MANDATORY ALLOWANCE.— 
"(I) IN GENERAL.—^A State agency may make 
the use of a standard utility allowance mandatory 
for all households with qualifying utility costs if— 
"(aa) the State agency has developed 1 
or more standards that include the cost of 
heating and cooling and 1 or more standards 
that do not include the cost of heating and 
cooling; and 
"(bb) the Secretary finds that the stand-
ards will not result in an increased cost to 
the Secretary. 
"(II) HOUSEHOLD ELECTION.—A State agency 
that has not made the use of a standard utility 
allowance mandatory imder subclause (I) shall 
£dlow a household to switch, at the end of a certifi-
cation period, between the standard utility allow-
ance and a deduction based on the actual utility 
costs of the household. 
"(iv) AVAILABILITY OF ALLOWANCE TO RECIPIENTS 
OF ENERGY ASSISTANCE.— 
"(I) IN GENERAL.—Subject to subclause (II), 
if a State agency elects to use a standard utiUty 
allowance that reflects heating or cooling costs, 
the stsuidard utility allowance shall be made avail-
able to households receiving a pa5nnent, or on 
behalf of which a payment is made, under the 
Low-Income Home Energy Assistance Act of 1981 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2313 
(42 U.S.C. 8621 et seq.) or other similar energy 
assistance program, if the household still incurs 
out-of-pocket heating or cooling expenses in excess 
of any assistance paid on behalf of the household 
to an energy provider. 
"(ID SEPARATE ALLOWANCE.—A State agency 
may use a separate standard utility allowsuice for 
households on behalf of which a payment described 
in subclause (I) is made, but may not be required 
to do so. 
"(Ill) STATES NOT ELECTING TO USE SEPARATE 
ALLOWANCE.—^A State agency that does not elect 
to use a separate allowance but makes a single 
standard utility allowance available to households 
incurring heating or cooling expenses (other than 
a household described in subclause (I) or (II) of 
clause (ii)) may not be required to reduce the allow-
ance due to the provision (directly or indirectly) 
of assistance under the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621 et seq.). 
"(IV) PRORATION OF ASSISTANCE.—For the pur-
pose of the food stamp program, assistance pro-
vided under the Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8621 et seq.) shall 
be considered to be prorated over the entire heat-
ing or cooling season for which the assistance was 
provided.", 
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking 
". Under rules prescribed" and all that follows through "verifies 
higher expenses". 
SEC. 810. VEHICLE ALLOWANCE. 
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) 
is amended by striking paragraph (2) and inserting the following: 
"(2) INCLUDED ASSETS.— 
"(A) IN GENERAL.—Subject to the other provisions of 
this paragraph,, the Secretary shall, in prescribing inclu-
sions in, and exclusions fi*om, financial resources, follow 
the regulations in force as of June 1, 1982 (other than 
those 
relating 
to licensed vehicles 
and 
inaccessible 
resources). 
"(B) 
ADDITIONAL INCLUDED ASSETS.—The Secretary 
shall include in financial resources— 
"(i) any boat, snowmobile, or airplane used for 
recreational purposes; 
"(ii) any vacation home; 
"(iii) any mobile home used primarily for vacation 
purposes; 
"(iv) subject to subparagraph (C), any licensed 
vehicle that is used for household transportation or 
to obtain or continue employment to the extent that 
the fair market value of the vehicle exceeds $4,600 
through September 30, 1996, and $4,650 beginning 
October 1, 1996; and 
110 STAT. 2314 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(v) any savings or retirement account (including 
an individual account), regardless of whether there 
is a penalty for early withdrawal. 
"(C) EXCLUDED VEHICLES.—A vehicle (and any other 
property, real or personal, to the extent the property is 
directly related to the maintenance or use of the vehicle) 
shall not be included in financial resources under this 
paragraph if the vehicle is— 
"(i) used to produce earned income; 
"(ii) necessary for the transportation of a physically 
disabled household member; or 
"(iii) depended on by a household to carry fuel 
for heating or water for home use and provides the 
primary source of fuel or water, respectively, for the 
household.". 
SEC. 811. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED 
AS INCOME. 
Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(k)(2)) is amended— 
(1) by striking subparagraph (F); and 
(2) by redesignating subparagraphs (G) and (H) as subpara-
graphs (F) and (G), respectively. 
SEC. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-
EMPLOYED. 
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), 
as amended by title I, is amended by adding at the end the 
following: 
"(m) 
SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-
EMPLOYED.— 
Regulations. 
"(1) IN GENERAL.—Not later than 1 year after the date 
of enactment of this subsection, the Secretary shall establish 
a procedure by which a State may submit a method, designed 
to not increase Federal costs, for the approval of the Secretary, 
that the Secretary determines will produce a reasonable esti-
mate of income excluded under subsection (d)(9) in lieu of 
calculating the actual cost of producing 
self-emplojnnent 
income. 
"(2) INCLUSIVE OF ALL TYPES OF INCOME OR LIMITED TYPES 
OF INCOME.—^The method submitted by a State imder paragraph 
(1) may allow a State to estimate income for all types of 
self-employment income or may be limited to 1 or more types 
of self-employment income. 
"(3) DIFFERENCES FOR DIFFERENT TYPES OF INCOME.—The 
method submitted by a State under paragraph (1) may differ 
for different types of self-emplojmient income.". 
SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PRO-
GRAM REQUIREMENTS. 
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(b)(1)) is amended— 
(1) in clause (i), by striking "six months" and inserting 
"1 year"; £m.d 
(2) in clause (ii), by striking "1 year" and inserting "2 
years". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2315 
SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS. 
Section 6(b)(l)(iii) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(b)(l)(iii)) is amended— 
(1) in subclause (II), by striking "or" at the end; 
(2) in subclause (III), by striking the period at the end 
and inserting "; or"; and 
(3) by inserting after subclause (III) the following: 
"(IV) a conviction of an offense under subsection (b) 
or (c) of section 15 involving an item covered by subsection 
(b) or (c) of section 15 having a value of $500 or more.". 
SEC. 815. DISQUALIFICATION. 
(a) IN GENERAL,—Section 6(d) of the Food Stamp Act of 1977 
(7 U.S.C. 2015(d)) is amended by striking "(d)(1) Unless otherwise 
exempted by the provisions" and all that follows through the end 
of paragraph (1) and inserting the following: 
"(d) CONDITIONS OF PARTICIPATION.— 
"(1) WORK REQUIREMENTS.— 
"(A) IN GENERAL.—No physically and mentally fit 
individual over the age of 15 and under the age of 60 
shall be eligible to participate in the food stamp program 
if the individual— 
"(i) refuses, at the time of application and every 
12 months thereafter, to register for employment in 
a manner prescribed by the Secretary; 
"(ii) refuses without good cause to participate in 
an employment and training program 
established 
under paragraph (4), to the extent required by the 
State agency; 
"(iii) refuses without good cause to accept an offer 
of emplo5nnent, at a site or plant not subject to a 
strike or lockout at the time of the refusal, at a wage 
not less than the higher of— 
"(I) the applicable Federal or State minimum 
wage; or 
"(II) 80 percent of the wage that would have 
governed had the minimum hourly rate imder sec-
tion 6(a)(1) of the Fair Labor Stsuidards Act of 
1938 (29 U.S.C. 206(a)(1)) been apphcable to the 
offer of emplojnnent; 
"(iv) refuses without good cause to provide a State 
agency with sufficient information to allow the State 
agency to determine the emplojonent status or the 
job availability of the individual; 
"(v) voluntarily and without good cause— 
"(I) quits a job; or 
"(II) reduces work effort and, after the reduc-
tion, the individual is working less than 30 hours 
per week; or 
"(vi) fails to comply with section 20. 
"(B) HOUSEHOLD INELIGIBILITY.—If an individual who 
is the head of a household becomes ineligible to participate 
in the food stamp program under subparagraph (A), the 
household shall, at the option of the State agency, become 
ineligible to participate in the food stamp program for 
a period, determined by the State agency, that does not 
exceed the lesser of— 
110 STAT. 2316 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(i) the duration of the ineUgibiUty of the individual 
determined under subparagraph (C); or 
"(ii) 180 days. 
"(C) DURATION OF INELIGIBILITY.— 
"(i) FIRST VIOLATION.—The first time that an 
individual becomes ineligible to participate in the food 
stamp program under subparagraph (A), the individual 
shall remain ineligible until the later of— 
"(I) the date the individual becomes eligible 
under subparagraph (A); 
"(II) the date that is 1 month after the date 
the individual became ineligible; or 
"(III) a date determined by the State agency 
that is not later than 3 months after the date 
the individual became ineligible. 
"(ii) SECOND VIOLATION.—The second time that an 
individual becomes ineligible to participate in the food 
stamp program under subparagraph (A), the individual 
shall remain ineligible until the later of— 
"(I) the date the individual becomes eligible 
under subparagraph (A); 
"(II) the date that is 3 months after the date 
the individual became ineligible; or 
"(III) a date determined by the State agency 
that is not later than 6 months after the date 
the individual became ineligible, 
"(iii) THIRD OR SUBSEQUENT VIOLATION.—The third 
or subsequent time that an individual becomes ineli-
gible to participate in the food stamp program imder 
subparagraph (A), the individual shall remain ineli-
gible until the later of— 
"(I) the date the individual becomes eligible 
under subparagraph (A); 
"(II) the date that is 6 months after the date 
the individual became ineligible; 
"(III) a date 
determined 
by the State 
agency; or 
"(IV) at the option of the State agency, 
permanently. 
"(D) ADMINISTRATION.— 
"(i) GOOD CAUSE.—The Secretary shall determine 
the meaning of good cause for the purpose of this 
paragraph. 
"(ii) VOLUNTARY QUIT.—The Secretary shall deter-
mine the meaning of voluntarily quitting and reducing 
work effort for the purpose of this paragraph. 
"(iii) DETERMINATION BY STATE AGENCY.— 
"(I) IN GENERAL.—Subject to subclause (II) and 
clauses (i) and (ii), a State agency shall deter-
mine— 
"(aa) the meaning of any term used in 
subparagraph (A); 
"(bb) the procedures for determining 
whether an individual is in compliance with 
a requirement under subparagraph (A); and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2317 
"(cc) whether an individual is in compli-
ance with a requirement imder subpara-
graph (A). 
"(II) NOT LESS RESTRICTIVE.—A State agency 
may not use a meaning, procedure, or determina-
tion under subclause (I) that is less restrictive 
on individuals receiving benefits under this Act 
than a comparable meaning, procedure, or deter-
mination under a State program funded under part 
A of title rV of the Social Security Act (42 U.S.C. 
601 et seq.). 
"(iv) STRIKE AGAINST THE GOVERNMENT.—For the 
purpose of subparagraph (A)(v), £in employee of the 
Federal Government, a State, or a political subdivision 
of a State, who is dismissed for participating in a 
strike against the FedergJ Government, the State, or 
the political subdivision of the State shall be considered 
to have voluntarily quit without good cause. 
"(v) SELECTING A HEAD OF HOUSEHOLD.— 
"(I) IN GENERAL.—For purposes of this para-
graph, the State agency shall allow the household 
to select any adult parent of a child in the house-
hold as the head of the household if all adult 
household members making application under the 
food stamp program agree to the selection. 
"(II) 
TIME 
FOR MAKING 
DESIGNATION.—A 
household may designate the head of the household 
imder subclause (I) each time the household is 
certified for participation in the food stamp pro-
gram, but may not change the designation during 
a certification period unless there is a change in 
the composition of the household, 
"(vi) CHANGE IN HEAD OF HOUSEHOLD.—If the head 
of a household leaves the household during a period 
in which the household is ineligible to participate in 
the food stamp program under subparagraph (B)— 
"(I) the household shall, if otherwise eligible, 
become eligible to participate in the food stamp 
program; and 
"(II) if the head of the household becomes the 
head of another household, the household that 
becomes headed by the individual shall become 
ineligible to participate in the food stamp program 
for the remaining period of ineligibility.". 
(b) CONFORMING AMENDMENT.— 
(1) The second sentence of section 17(b)(2) of the Food 
Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amended by striking 
"6(d)(l)(i)" and inserting "6(d)(l)(A)(i)". 
(2) Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 
2029) is amended by striking subsection (f) and inserting the 
following: 
"(f) DISQUALIFICATION.—An individual or a household may 
become ineligible under section 6(d)(1) to participate in the food 
stamp program for failing to comply with this section.". 
110 STAT. 2318 
PUBLIC LAW 104-193—AUG. 22, 1996 
SEC. 816. CARETAKER EXEMPTION. 
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(d)(2)) is amended by adding at the end the following: "A 
State that requested a waiver to lower the age specified in subpara-
graph (B) and had the waiver denied by the Secretary as of August 
1, 1996, may, for a period of not more than 3 years, lower the 
age of a dependent child that qualifies a parent or other member 
of a household for an exemption under subparagraph (B) to between 
1 and 6 years of age.". 
SEC. 817. EMPLOYMENT AND TRAIND^IG. 
(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp Act of 
1977 (7 U.S.C. 2015(d)(4)) is amended— 
(1) by striking "(4)(A) Not later than April 1, 1987, each" 
£ind inserting the following: 
"(4) EMPLOYMENT AND TRAINING.— 
"(A) IN GENERAL.— 
"(i) IMPLEMENTATION.—Each"; 
(2) in subparagraph (A)— 
(A) by inserting "work," after "skills, training,"; and 
(B) by adding at the end the following: 
"(ii) 
STATEWIDE 
WORKFORCE 
DEVELOPMENT 
SYSTEM.—Each component of an employment and train-
ing program carried out under this paragraph shall 
be delivered through a statewide workforce develop-
ment system, unless the component is not available 
locally through such a system."; 
(3) in subparagraph (B)— 
(A) in the matter preceding clause (i), by striking the 
colon at the end and inserting the following: ", except 
that the State agency shall retain the option to apply 
employment requirements prescribed under this subpara-
graph to a program applicant at the time of application:"; 
(B) in clause (i), by striking 'Svith terms and conditions" 
and all that follows through "time of application"; and 
(C) in clause (iv)— 
(i) by striking subclauses (I) and (II); and 
(ii) by redesignating subclauses (III) and (IV) as 
subclauses (I) and (II), respectively; 
(4) in subparagraph (D)— 
(A) in clause (i), by striking "to which the application" 
and all that follows through "30 days or less"; 
(B) in clause (ii), by striking "but with respect" and 
all that follows through "child care"; and 
(C) in clause (iii), by striking ", on the basis of and 
all that follows through "clause (ii)" and inserting "the 
exemption continues to be valid"; 
(5) in subparagraph (E), by striking the third sentence; 
(6) in subparagraph (G)— 
(A) by striking "(G)(i) The State" and inserting "(G) 
The State'^'; and 
(B) by striking clause (ii); 
(7) in subparagraph (H), by striking "(H)(i) The Secretary" 
and all that follows through "(ii) Federal fiinds" and inserting 
"(H) Federal fimds"; 
(8) in subparagraph (I)(i)(II), by striking ", or was in oper-
ation," and all that follows through "Social Security Act" and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2319 
inserting the following: "), except that no such payment or 
reimbursement shall exceed the applicable local market rate"; 
(9)(A) by striking subparagraphs (K) and (L) and inserting 
the following: 
"(K) LIMITATION ON FUNDING.—Notwithstanding any 
other provision of this paragraph, the amount of funds 
a State agency uses to carry out this paragraph (including 
funds used to carry out subparagraph (I)) for participants 
who are receiving benefits under a State program funded 
under part A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.) shall not exceed the amount of funds 
the State agency used in fiscal year 1995 to carry 
out this paragraph for participants who were receiving 
benefits in fiscal year 1995 under a State program funded 
under part A of title IV of the Act (42 U.S.C. 601 et 
seq.)."; and 
(B) by redesignating subparagraphs (M) and (N) as sub-
paragraphs (L) and (M), respectively; and 
(10) in subparagraph (L), as so redesignated— 
(A) by striking "(L)(i) The Secretary" and inserting 
"(L) The Secretary"; and 
(B) by striking clause (ii). 
(b) FUNDING.—Section 16(h) of the Food Stamp Act of 1977 
(7 U.S.C. 2025(h)) is amended by striking "(h)(1)(A) The Secretary" 
£uid all that follows through the end of paragraph (1) and inserting 
the following: 
"(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.— 
"(1) IN GENERAL.— 
"(A) AMOUNTS.—To carry out emplo5anent suid training 
programs, the Secretary shall reserve for allocation to State 
agencies fi'om fiuids made available for each fiscal year 
under section 18(a)(1) the amount o
f
— 
"(i) for fiscal year 1996, $75,000,000; 
"(ii) for fiscal year 1997, $79,000,000; 
"(iii) for fiscal year 1998, $81,000,000; 
"(iv) for fiscal year 1999, $84,000,000; 
"(v) for fiscal year 2000, $86,000,000; 
"(vi) for fiscal year 2001, $88,000,000; and 
"(vii) for fiscal year 2002, $90,000,000. 
"(B) ALLOCATION.—The Secretary shall allocate the 
amounts reserved under subparagraph (A) among the State 
agencies using a reasonable formula (as determined by 
the Secretary) that gives consideration to the population 
in each State affected by section 6(o). 
"(C) REALLOCATION.— 
"(i) NOTIFICATION.—A State agency shall promptly 
notify the Secretary if the State agency determines 
that the State agency will not expend all of the funds 
allocated to the State agency under subparagraph (B). 
"(ii) REALLOCATION.—On notification under clause 
(i), the Secretary shall reallocate the funds that the 
State agency will not expend as the Secretary considers 
appropriate and equitable. 
"(D) 
MINIMUM 
ALLOCATION.—Notwithstanding sub-
paragraphs (A) through (C), the Secretary shall ensure 
that each State agency operating an employment and train-
110 STAT. 2320 
PUBLIC LAW 104-193—AUG. 22, 1996 
ing program shall receive not less than $50,000 for each 
fiscal year.". 
(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by inserting 
before the period at the end the following: ", including the costs 
for case management and casework to facilitate the transition from 
economic dependency to self-sufficiency through work". 
(d) REPORTS.—Section 16(h) of the Food Stamp Act of 1977 
(7 U.S.C. 2025(h)) is amended— 
(1) in paragraph (5)— 
(A) by striking "(5)(A) The Secretary and inserting 
"(5) The Secretary"; and 
(B) by striking subparagraph (B); and 
(2) by striking paragraph (6). 
SEC. 818. FOOD STAMP ELIGIBILnY. 
The third sentence of section 6(f) of the Food Stamp Act of 
1977 (7 U.S.C. 2015(f)) is amended by inserting ", at State option," 
after "less". 
SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION. 
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977 
(7 U.S.C. 2015) is amended by adding at the end the following: 
"(i) COMPARABLE TREATMENT FOR DISQUALIFICATION.— 
"(1) IN GENERAL.—If a disqualification is imposed on a 
member of a household for a failure of the member to perform 
an action required under a Federal, State, or local law relating 
to a means-tested public assistance program, the State agency 
may impose the same disqualification on the member of the 
household under the food stamp progrsim. 
"(2) RULES AND PROCEDURES.—If a disqualification 
is 
imposed under paragraph (1) for a failure of an individual 
to perform an action required under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.), the State agency 
may use the rules £ind procedures that apply under part A 
of title IV of the Act to impose the same disqualification under 
the food stamp program. 
"(3) 
APPLICATION 
AFTER 
DISQUALIFICATION 
PERIOD.—A 
member of a household disqualified imder paragraph (1) may, 
after the disqualification period has expired, apply for benefits 
under this Act and shall be treated as a new applicant, except 
that a prior disqualification under subsection (d) shall be consid-
ered in determining eligibility.". 
(b) STATE PLAN PROVISIONS.—Section 11(e) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(e)) is amended— 
(1) in paragraph (24), by striking "and" at the end; 
(2) in paragraph (25), by striking the period at the end 
£ind inserting a semicolon; and 
(3) by adding at the end the following: 
"(26) the guidelines the State agency uses in carrying out 
section 6(i); and". 
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of the Food 
Stamp Act of 1977 (7 U.S.C. 2015(dX2)(A)) is amended by striking 
"that is comparable to a requirement of paragraph (1)". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2321 
SEC. 820. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD 
STAMP BENEFITS. 
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), 
as amended by section 819, is amended by adding at the end 
the following: 
"(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP 
BENEFITS.—^An individual shall be ineligible to participate in the 
food stamp program as a member of any household for a 10-
year period if the individual is found by a State agency to have 
made, or is convicted in a Federal or State court of having made, 
a fraudulent statement or representation with respect to the iden-
tity or place of residence of the individual in order to receive 
multiple benefits simultaneously under the food stamp program.". 
SEC. 821. DISQUALIFICATION OF FLEEING FELONS. 
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), 
as amended by section 820, is amended by adding at the end 
the following: 
"(k) DISQUALIFICATION OF FLEEING FELONS.—No member of 
a household who is otherwise eligible to participate in the food 
stamp program shall be eligible to participate in the program as 
a member of that or any other household during any period during 
which the individual is— 
"(1) fleeing to avoid prosecution, or custody or confinement 
after conviction, under the law of the place from which the 
individual is fleeing, for a crime, or attempt to commit a crime, 
that is a felony under the law of the place fi-om which the 
individual is fleeing or that, in the case of New Jersey, is 
a high misdemeanor under the law of New Jersey; or 
"(2) violating a condition of probation or parole imposed 
under a Federal or State law.". 
SEC. 822. COOPERATION WITH CHILD SUPPORT AGENCIES. 
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), 
as amended by section 821, is amended by adding at the end 
the following: 
"(1) CUSTODIAL PARENT'S COOPERATION WITH CHILD SUPPORT 
AGENCIES.— 
"(1) IN GENERAL.—^At the option of a State agency, subject 
to paragraphs (2) and (3), no natural or adoptive parent or 
other individual (collectively referred to in this subsection as 
'the individual') who is living with and exercising parental 
control over a child under the age of 18 who has £in absent 
parent shall be eligible to participate in the food stamp program 
unless the individual cooperates with the State agency admin-
istering the program established under part D of title IV of 
the Social Security Act (42 U.S.C. 651 et seq.)— 
"(A) in establishing the paternity of the child (if the 
child is bom out of wedlock); and 
"(B) in obtaining support for— 
"(i) the child; or 
"(ii) the individual and the child. 
"(2) GOOD CAUSE FOR NONCOOPERATION.—Paragraph (1) 
Regulations, 
shall not apply to the individual if good cause is found for 
refusing to cooperate, as determined by the State agency in 
accordance with standards prescribed by the Secretary in con-
sultation with the Secretary of Health and Human Services. 
110 STAT. 2322 
PUBLIC LAW 104-193—AUG. 22, 1996 
The staindards shall take into consideration circumstances 
under which cooperation may be against the best interests 
of the child. 
"(3) FEES.—Paragraph (1) shall not require the payment 
of a fee or other cost for services provided under part D of 
title IV of the Social Security Act (42 U.S.C. 651 et seq.). 
"(m) NONCUSTODIAL PARENT'S COOPERATION WITH CHILD SUP-
PORT AGENCIES.— 
"(1) IN GENERAL.—^At the option of a State agency, subject 
to paragraphs (2) and (3), a putative or identified noncustodial 
parent of a child under the age of 18 (referred to in this 
subsection as 'the individual') shall not be eligible to participate 
in the food stamp program if the individual refuses to cooperate 
with the State agency administering the program established 
under part D of title IV of the Social Security Act (42 U.S.C. 
651 et seq.)— 
"(A) in establishing the paternity of the child (if the 
child is bom out of wedlock); and 
"(B) in providing support for the child. 
"(2) REFUSAL TO COOPERATE.— 
"(A) GUIDELINES.—The Secretary, in consultation with 
the Secretary of Health and Human Services, shall develop 
guidelines on what constitutes a refusal to cooperate under 
paragraph (1). 
"(B) PROCEDURES.—The State agency shall develop 
procedures, using guidelines developed under subparagraph 
(A), for determining whether an individual is refusing to 
cooperate under paragraph (1). 
"(3) FEES.—Paragraph (1) shall not require the payment 
of a fee or other cost for services provided under part D of 
title IV of the Social Security Act (42 U.S.C. 651 et seq.). 
"(4) PRIVACY.—The State agency shall provide safeguards 
to restrict the use of information collected by a State agency 
administering the program established under part D of title 
IV of the Social Security Act (42 U.S.C. 651 et seq.) to purposes 
for which the information is collected.". 
SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS. 
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), 
as amended by section 822, is amended by adding at the end 
the following: 
"(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.— 
"(1) IN GENERAL.—^At the option of a State agency, no 
individual shall be eligible to participate in the food stamp 
program as a member of any household during any month 
that the individual is delinquent in any payment due under 
a court order for the support of a child of the individual. 
"(2) EXCEPTIONS.—Paragraph (1) shall not apply if— 
"(A) a court is allowing the individual to delay pay-
ment; or 
"(B) the individual is complying with a payment plan 
approved by a court or the State agency designated under 
part D of title IV of the Social Security Act (42 U.S.C. 
651 et seq.) to provide support for the child of the 
individual.". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2323 
SEC. 824. WORK REQUIREMENT. 
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977 
(7 U.S.C. 2015), as amended by section 823, is amended by adding 
at the end the following: 
"(o) WORK REQUIREMENT.— 
"(1) DEFINITION OF WORK PROGRAM.—In this subsection, 
the term 'work program' means— 
"(A) a program under the Job Training Partnership 
Act (29 U.S.C. 1501 et seq.); 
"(B) a program under section 236 of the Trade Act 
of 1974 (19 U.S.C. 2296); and 
"(C) a program of employment and training operated 
or supervised by a State or political subdivision of a State 
that meets standards approved by the Governor of the 
State, including a program under subsection (d)(4), other 
thsin a job search program or a job search training program. 
"(2) WORK REQUIREMENT.—Subject to the other provisions 
of this subsection, no individual shall be eligible to participate 
in the food stamp program as a member of any household 
if, during the preceding 36-month period, the individual 
received food stamp benefits for not less than 3 months 
(consecutive or otherwise) during which the individual did not— 
"(A) work 20 hours or more per week, averaged 
monthly; 
"(B) participate in and comply with the requirements 
of a work program for 20 hours or more per week, as 
determined by the State agency; 
"(C) participate in and comply with the requirements 
of a program under section 20 or a comparable program 
established by a State or political subdivision of a 
State; or 
"(D) receive benefits pursuant to paragraph (3), (4), 
or (5). 
"(3) EXCEPTION.—Paragraph (2) shall not apply to an 
individualif the individual is— 
"(A) under 18 or over 50 years of age; 
"(B) medically certified as physically or mentally unfit 
for employment; 
"(C) a parent or other member of a household with 
responsibility for a dependent child; 
"(D) otherwise exempt under subsection (d)(2); or 
"(E) a pregnsint woman. 
"(4) WAIVER.— 
"(A) IN GENERAL.—On the request of a State agency, 
the Secretary may waive the applicability of paragraph 
(2) to any group of individuals in the State if the Secretary 
makes a determination that the area in which the indi-
viduals reside— 
"(i) has an unemployment rate of over 10 per-
cent; or 
"(ii) does not have a sufficient number of jobs 
to provide employment for the individuals. 
"(B) REPORT.—The Secretary shall report the basis for 
a waiver under subparagraph (A) to the Committee on 
Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate. 
110 STAT. 2324 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(5) SUBSEQUENT ELIGIBILITY.— 
"(A) REGAINING ELIGIBILITY.—An individual denied 
eligibility under paragraph (2) shall regain eligibility to 
participate in the food stamp program if, during a 30-
day period, the individual— 
"(i) works 80 or more hours; 
"(ii) participates in and complies with the require-
ments of a work program for 80 or more hours, as 
determined by a State agency; or 
"(iii) participates in and complies with the require-
ments of a program under section 20 or a comparable 
program established by a State or political subdivision 
of a State. 
"(B) MAINTAINING ELIGIBILITY.—An individual who 
regains eligibility under subparagraph (A) shall remain 
eligible as long as the individual meets the requirements 
of subparagraph (A), (B), or (C) of paragraph (2). 
"(C) Loss OF EMPLOYMENT.— 
"(i) IN GENERAL.—^An individual who regained eligi-
bility under subparagraph (A) and who no longer meets 
the requirements of subparagraph (A), (B), or (C) of 
paragraph (2) shall remain eligible for a consecutive 
3-month period, beginning on the date the individual 
first notifies the State agency that the individual no 
longer meets the requirements of subparagraph (A), 
(B), or (C) of paragraph (2). 
"(ii) LIMITATION.—^An individual shall not receive 
any benefits pursuant to clause (i) for more than a 
single 3-month period in any 36-month period. 
"(6) OTHER PROGRAM RULES.—Nothing in this subsection 
shall make an individual eligible for benefits under this Act 
if the individual is not otherwise eligible for benefits under 
the other provisions of this Act.". 
7 use 2015 note. 
(b) TRANSITION PROVISION.—The term "preceding 36-month 
E
eriod" in section 6(o) of the Food Stamp Act of 1977, as added 
y subsection (a), does not include, with respect to a State, any 
period before the earlier of— 
(1) the date the State notifies recipients of food stamp 
benefits of the application of section 6(o); or 
(2) the date that is 3 months after the date of enactment 
of this Act. 
SEC. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER 
SYSTEMS. 
(a) IN GENERAL.—Section 7(i) of the Food Stamp Act of 1977 
(7 U.S.C. 2016(i)) is amended— 
(1) by striking "(i)(l)(A) Any State" and all that follows 
through the end of paragraph (1) and inserting the following: 
"(i) ELECTRONIC BENEFIT TRANSFERS.— 
"(1) IN GENERAL.— 
"(A) IMPLEMENTATION.—Not later than October 1, 2002, 
each State agency shall implement an electronic benefit 
transfer system under which household benefits determined 
under section 8(a) or 26 are issued from and stored in 
a central databank, unless the Secretary provides a waiver 
for a State agency that faces unusual barriers to 
implementing an electronic benefit transfer system. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2325 
"(B) TIMELY IMPLEMENTATION.—Each State agency is 
encouraged to implement an electronic benefit transfer sys-
tem under subpsiragraph (A) as soon as practicable. 
"(C) STATE FLEXIBILITY.—Subject to paragraph (2), a 
State agency may procure and implement an electronic 
benefit transfer system under the terms, conditions, and 
design that the State agency considers appropriate. 
"(D) OPERATION.—^An electronic benefit transfer system 
should take into account generally accepted stEindsird 
operating rules based on— 
"(i) commercial electronic fiinds transfer tech-
nology; 
"(ii) the need to permit interstate operation and 
law enforcement monitoring; and 
"(iii) the need to permit monitoring and investiga-
tions by authorized law enforcement agencies."; 
(2) in paragraph (2)— 
(A) by striking "effective no later than April 1, 1992,"; 
(B) in subparagraph (A)— 
(i) by striking ", in any 1 year,"; and 
(ii) by striking "on-line"; 
(C) by striking subparagraph (D) and inserting the 
following: 
"(D)(i) measures to maximize the security of a system 
using the most recent technology available that the State 
agency considers appropriate and cost effective and which 
may include personal identification numbers, photographic 
identification on electronic benefit transfer cards, and other 
measures to protect against fi-aud and abuse; and 
"(ii) effective not later than 2 years after the date Effective date, 
of enactment of this clause, to the extent practicable, meas-
ures that permit a system to differentiate items of food 
that may be acquired with £in allotment fi-om items of 
food that may not be acquired with £in allotment;"; 
(D) in subparagraph (G), by striking "and" at the end; 
(E) in subparagraph (H), by strifing the period at 
the end and inserting "; and"; £ind 
(F) by adding at the end the following: 
"(I) procurement standards."; and 
(3) by adding at the end the following: 
"(7) REPLACEMENT OF BENEFITS.—Regulations issued by Regulations, 
the Secretary regarding the replacement of benefits and liability 
for replacement of benefits imder an electronic benefit transfer 
system shall be similar to the regulations in effect for a paper-
based food stamp issuance system. 
"(8) REPLACEMENT CARD FEE.—A State agency may collect 
a charge for replacement of an electronic benefit transfer card 
by reducing the monthly allotment of the household receiving 
the replacement card. 
"(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION.— 
"(A) IN GENERAL.—A State agency may require that 
an electronic benefit card contain a photograph of 1 or 
more members of a household. 
"(B) OTHER AUTHORIZED USERS.—If a State agency 
requires a photograph on an electronic benefit card under 
subparagraph (A), the State agency shall establish proce-
dures to ensure that any other appropriate member of 
110 STAT. 2326 
PUBLIC LAW 104-193—AUG. 22, 1996 
the household or any authorized representative of the 
household may utilize the card. 
"(10) APPLICABLE LAW.—Disclosures, protections, respon-
sibilities, and remedies established by the Federal Reserve 
Board under section 904 of the Electronic Fund Transfer Act 
(15 U.S.C. 1693b) shall not apply to benefits under this Act 
delivered through any electronic benefit transfer system. 
"(11) APPLICATION OF ANTI-TYING RESTRICTIONS TO ELEC-
TRONIC BENEFIT TRANSFER SYSTEMS.— 
"(A) DEFINITIONS.—In this paragraph: 
"(i) AFFILIATE.—The term 'affiliate' has the mean-
ing provided the term in section 2(k) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1841(k)). 
"(ii) COMPANY.—The term 'company* has the mean-
ing provided the term in section 106(a) of the Bank 
Holding Company Act Amendments of 1970 (12 U.S.C. 
1971), but shall not include a bank, a bank holding 
company, or any subsidiary of a bank holding company. 
"(iii) ELECTRONIC BENEFIT TRANSFER SERVICE.— 
The term 'electronic benefit transfer service' means 
the processing of electronic transfers of household 
benefits, determined under section 8(a) or 26, if the 
benefits are— 
"(I) issued from and stored in a central 
databank; 
"(II) electronically accessed by household mem-
bers at the point of sale; and 
"(III) provided by a Federal or State govern-
ment. 
"(iv) POINT-OF-SALE SERVICE.—The term 'point-of-
. 
sale service' means any product or service related to 
the electronic authorization and processing of pay-
ments for merchandise at a retail food store, including 
credit 
or 
debit 
card 
services, 
automated 
teller 
machines, point-of-sale terminals, or access to on-line 
systems. 
"(B) RESTRICTIONS.—A company may not sell or provide 
electronic benefit transfer services, or fix or vary the consid-
eration for electronic benefit transfer services, on the condi-
tion or requirement that the customer— 
"(i) obtain some additional point-of-sale service 
from the company or an affiliate of the company; or 
"(ii) not obtain some additional point-of-sale service 
from a competitor of the company or competitor of 
any affiliate of the company, 
"(C) 
CONSULTATION 
WITH 
THE 
FEDERAL 
RESERVE 
BOARD.—Before promulgating regulations or interpreta-
tions of regulations to carry out this paragraph, the Sec-
retary shall consult with the Board of Governors of the 
Federal Reserve System.", 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
a State that operates an electronic benefit transfer system under 
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate 
the system in a manner that is compatible with electronic benefit 
transfer systems operated by other States, 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2327 
SEC. 826. VALUE OF MINIMUM ALLOTMENT. 
The proviso in section 8(a) of the Food Stamp Act of 1977 
(7 U.S.C. 2017(a)) is amended by striking ", and shall be adjusted" 
and all that follows through "$5". 
SEC. 827. BENEFITS ON RECERTIFICATION. 
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(c)(2)(B)) is amended by striking "of more than one month". 
SEC. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSE-
HOLDS. 
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) 
is amended by striking paragraph (3) and inserting the following: 
"(3) 
OPTIONAL 
COMBINED 
ALLOTMENT 
FOR EXPEDITED 
HOUSEHOLDS.—A State agency may provide to an eligible house-
hold applying after the 15th day of a month, in lieu of the 
initial allotment of the household and the regular allotment 
of the household for the following month, an allotment that 
is equal to the total amount of the initial allotment and the 
first regular edlotment. The allotment shall be provided in 
accordance with section 11(e)(3) in the case of a household 
that is not entitled to expedited service and in accordance 
with paragraphs (3) and (9) of section 11(e) in the case of 
a household that is entitled to expedited service,". 
SEC. 829. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC 
ASSISTANCE PROGRAMS. 
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) 
is amended by striking subsection (d) and inserting the following: 
"(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS.— 
"(1) IN GENERAL.—If the benefits of a household are reduced 
under a Federal, State, or local law relating to a means-tested 
public assistance program for the failure of a member of the 
household to perform an action required under the law or 
program, for the duration of the reduction— 
"(A) the household may not receive an increased allot-
ment as the result of a decrease in the income of the 
household to the extent that the decrease is the result 
of the reduction; and 
"(B) the State agency may reduce the sillotment of 
the household by not more than 25 percent. 
"(2) RULES AND PROCEDURES.—If the allotment of a house-
hold is reduced luider this subsection for a failure to perform 
an action required imder part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.), the State agency may use the 
rules and procedures that apply imder part A of title IV of 
the Act to reduce the allotment under the food stamp program.". 
SEC. 830. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS. 
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) 
is amended by adding at the end the following: 
"(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.— 
"(1) IN GENERAL.—In the case of an individual who resides 
in a center for the purpose of a drug or alcoholic treatment 
program described in the last sentence of section 3(i), a State 
agency may provide an allotment for the individual to— 
"(A) the center as an authorized representative of the 
individual for a period that is less than 1 month; and 
110 STAT. 2328 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(B) the individual, if the individual leaves the center. 
"(2) DIRECT PAYMENT.—A State agency may require an 
individual referred to in paragraph (1) to designate the center 
in which the individual resides as the authorized representative 
of the individual for the purpose of receiving £in allotment.". 
SEC. 
831. 
CONDITION 
PRECEDENT 
FOR 
APPROVAL OF 
RETAIL 
FOOD 
STORES 
AND 
WHOLESALE 
FOOD 
CONCERNS. 
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(a)(1)) is amended by adding at the end the following: "No 
retail food store or wholesale food concern of a type determined 
by the Secretary, based on factors that include size, location, 
and type of items sold, shall be approved to be authorized or 
reauthorized for participation in the food stamp program unless 
an authorized employee of the Department of Agriculture, a des-
ignee of the Secretary, or, if practicable, an official of the State 
or local government designated by the Secretary has visited the 
store or concern for the purpose of determining whether the store 
or concern should be approved or reauthorized, as appropriate.". 
SEC. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS. 
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) 
is amended by adding at the end the following: 
"(3) AUTHORIZATION PERIODS.—The Secretary shall estab-
lish specific time periods during which authorization to accept 
and redeem coupons, or to redeem benefits through an elec-
tronic benefit transfer system, shall be valid under the food 
stamp program.". 
SEC. 
833. 
INFORMATION 
FOR 
VERIFYING 
ELIGmiLITY 
FOR 
AUTHORIZATION. 
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) 
is amended— 
(1) in the first sentence, by inserting ", which may include 
relevant income and sales tax filing documents," after "submit 
information"; and 
(2) by inserting after the first sentence the following: "The 
regulations may require retail food stores and wholesale food 
concerns to provide written authorization for the Secretary 
to verify all relevant tax filings with appropriate agencies and 
to obtain corroborating documentation fi'om other sources so 
that the accuracy of information provided by the stores and 
concerns may be verified.". 
SEC. 834. WATTING PERIOD FOR STORES THAT FAIL TO MEET 
AUTHORIZATION CRITERIA. 
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) 
is amended by adding at the end the following: "A retail food 
store or wholesale food concern that is denied approval to accept 
and redeem coupons because the store or concern does not meet 
criteria for approval established by the Secretary may not, for 
at least 6 months, submit a new application to participate in the 
program. The Secretary may establish a longer time period under 
the preceding sentence, including permanent disqualification, that 
reflects the severity of the basis of the denial.". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2329 
SEC. 835. OPERATION OF FOOD STAMP OFFICES. 
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020), 
as amended by sections 809(b) and 819(b), is eimended— 
(1) in subsection (e)— 
(A) by striking paragraph (2) and inserting the 
following: 
"(2)(A) that the State agency shall establish procedures Regulations, 
governing the operation of food stamp offices that the State 
agency determines best serve households in the State, including 
households with special needs, such as households with elderly 
or disabled members, households in rural areas with low-income 
members, homeless individuals, households residing on reserva-
tions, and households in areas in which a substantial number 
of members of low-income households speak a language other 
than English. 
"(B) In carrying out subparagraph (A), a State agency— 
"(i) shall provide timely, accurate, and fair service to 
applicants for, and participants in, the food stamp program; 
"(ii) shall develop an application containing the 
information necessary to comply with this Act; 
"(iii) shall permit an applicant household to apply to 
participate in the program on the same day that the house-
hold first contacts a food stamp office in person during 
office hours; 
"(iv) shall consider an application that contains the 
name, address, and signature of the applicant to be filed 
on the date the applicant submits the application; 
"(v) shall require that an adult representative of each 
applic£int household certify in writing, under penalty of 
perjury, that— 
"(I) the information contained in the application 
is true; and 
"(II) all members of the household are citizens 
or are aliens eligible to receive food stamps under 
section 6(f); 
"(vi) shall provide a method of certifying and issuing 
coupons to eligible homeless individuals, to ensure that 
participation in the food stamp program is limited to 
eligible households; and 
"(vii) may establish operating procedures that vary 
for local food stamp offices to reflect regional and local 
differences within the State. 
"(C) Nothing in this Act shall prohibit the use of signatures 
provided and maintained electronically, storage of records using 
automated retrieval systems only, or any other feature of a 
State agency's application system that does not rely exclusively 
on the collection and retention of paper applications or other 
records. 
"(D) The signature of any adult under this paragraph shall 
be considered sufficient to comply with any provision of Federal 
law requiring a household member to sign an application or 
statement;"; 
(B) in paragraph (3)— 
(i) by striking "shall—" and all that follows through 
"provide each" and inserting "shall provide each"; and 
(ii) by striking "(B) assist" and all that follows 
through "representative of the State agency;"; 
110 STAT. 2330 
PUBLIC LAW 104-193—AUG. 22, 1996 
(C) by striking peiragraphs (14) and (25); 
(D)(i) by redesignating paragraphs (15) through (24) 
as paragraphs (14) through (23), respectively; and 
(ii) by redesignating paragraph (26), as paragraph 
(24); and 
(2) in subsection (i)— 
(A) by striking "(i) Notwithstanding" and all that fol-
lows through "(2)" and inserting the following: 
"(i) APPLICATION AND DENIAL PROCEDURES.— 
"(1) APPLICATION PROCEDURES.—Notwithstanding any other 
provision of law,"; and 
(B) by striking "; (3) households" and all that follows 
through "title IV of the Social Security Act. No" and insert-
ing a period and the following: 
"(2) DENIAL AND TERMINATION.—Except in a case of 
disqualification as a penalty for failure to comply with a public 
assistance program rule or regulation, no". 
SEC. 836. STATE EMPLOYEE AND TRAINING STANDARDS. 
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(6)) is amended— 
(1) by striking "that (A) the" and inserting "that— 
^(A)the"; 
(2) by striking "Act; (B) the" and inserting "Act; and 
^(B) the"; 
(3) in subparagraph (B), by striking "United States Civil 
Service Commission" and inserting "Office 
of Personnel 
Management"; and 
(4) by striking subparagraphs (C) through (E). 
SEC. 837. EXCHANGE OF LAW ENFORCEMENT INFORMATION. 
Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(8)) is amended— 
(1) by striking "that (A) such" and inserting the follow-
ing: "that— 
"(A) the"; 
(2) by striking "law, (B) notwithstanding" and inserting 
the following: "law; 
"(B) notwithstanding"; 
(3) by striking "Act, and (C) such" and inserting the follow-
ing: "Act; 
"(C) the"; and 
(4) by adding at the end the following: 
"(D) notwithstanding any other provision of law, the 
address, social security number, and, if available, photo-
graph of any member of a household shall be made avail-
able, on request, to any Federal, State, or local law enforce-
ment officer if the officer furnishes the State agency with 
the name of the member and notifies the agency that— 
"(i) the member— 
"(I) is fleeing to avoid prosecution, or custody 
or confinement after conviction, for a crime (or 
attempt to commit a crime) that, under the law 
of the place the member is fleeing, is a felony 
(or, in the case of New Jersey, a high mis-
demeanor), or is violating a condition of probation 
or 
parole 
imposed 
under 
Federal 
or 
State 
law; or 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2331 
"(II) has information that is necessary for the 
officer to conduct an official duty related to sub-
clause (I); 
"(ii) locating or apprehending the member is an 
official duty; and 
"(iii) the request is being made in the proper exer-
cise of an official duty; £ind 
"(E) the safeguards shall not prevent compliance with 
paragraph (16);". 
SEC. 838. EXPEDITED COUPON SERVICE. 
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(9)) is amended— 
(1) in subparagraph (A), by striking "five days" and insert-
ing "7 days"; 
(2) by striking subparagraph (B); 
(3) by redesignating subparagraphs (C) and (D) as subpara-
graphs (B) and (C); 
(4) in subparagraph (B), as redesignated by paragraph 
(3), by striking "five days" and inserting "7 days"; and 
(5) in subparagraph (C), as redesignated by paragraph 
(3), by striking ", (B), or (C)" and inserting "or (B)". 
SEC. 839. WITHDRAWING FAIR HEARING REQUESTS. 
Section ll(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(10)) is amended by inserting before the semicolon at the 
end a period and the following: "At the option of a State, at any 
time prior to a fair hearing determination under this paragraph, 
a household may withdraw, orally or in writing, a request by 
the household for the fair hearing. If the withdrawal request is Notice. 
£in oral request, the State agency shall provide a written notice 
to the household confirming the withdrawal request and providing 
the household with an opportunity to request a hearing". 
SEC. 840. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICA-
TION SYSTEMS. 
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) 
is amended— 
(1) in subsection (e)(18), as redesignated by section 
835(1)(D)— 
(A) by striking "that information is" and inserting "at 
the option of the State agency, that information may be"; 
and 
(B) by striking "shall be requested" and inserting "may 
be requested"; and 
(2) by adding at the end the following: 
"(p) STATE VERIFICATION OPTION.—Notwithstanding any other 
provision of law, in canying out the food stamp program, a State 
agency shall not be required to use an income and eligibility or 
an immigration status verification system established imder section 
1137 of the Social Security Act (42 U.S.C. 1320b-7).". 
SEC. 841. INVESTIGATIONS. 
Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) 
is amended by adding at the end the following: "Regulations issued Regulations. 
pursuant to this Act shall provide criteria for the finding of a 
violation and the suspension or disqualification of a retail food 
store or wholesale food concern on the basis of evidence that may 
110 STAT. 2332 
PUBLIC LAW 104-193—AUG. 22, 1996 
include facts established through on-site investigations, inconsistent 
redemption data, or evidence obtained through a transaction report 
under an electronic benefit transfer system.". 
SEC. 842. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY 
SUBMIT FALSIFIED APPLICATIONS. 
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)) 
is amended— 
(1) in paragraph (2), by striking "and" at the end; 
(2) in paragraph (3), by striJking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(4) for a reasonable period of time to be determined by 
the Secretary, including permanent disqualification, on the 
knowing submission of an application for the approval or 
reauthorization to accept and redeem coupons that contains 
false information about a substantive matter that was a part 
of the application.". 
SEC. 843. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED 
UNDER THE WIC PROGRAM. 
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) 
is amended by adding at the end the following: 
"(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED 
UNDER THE WIC PROGRAM.— 
Regulations. 
"(1) IN GENERAL.—The Secretary shall issue regulations 
providing criteria for the disqualification under this Act of 
an approved retail food store or a wholesale food concern that 
is disqualified from accepting benefits under the special supple-
mental nutrition program for women, infants, and chimren 
established under section 17 of the Child Nutrition Act of 
1966 (7 U.S.C. 1786). 
"(2) TERMS.—^A disqualification under paragraph (1)— 
"(A) shall be for the same length of time as the disquali-
fication from the program referred to in paragraph (1); 
"(B) may begin at a later date than the disqualification 
from the program referred to in paragraph (1); and 
"(C) notwithstanding section 14, shall not be subject 
to judicial or administrative review.". 
SEC. 844. COLLECTION OF OVERISSUANCES. 
(a) COLLECTION OF OVERISSUANCES.—Section 13 of the Food 
Stamp Act of 1977 (7 U.S.C. 2022) is amended— 
(1) by striking subsection (b) and inserting the following: 
"(b) COLLECTION OF OVERISSUANCES.— 
"(1) IN GENERAL.—Except as otherwise provided in this 
subsection, a State agency shall collect any overissuance of 
coupons issued to a household by— 
"(A) reducing the allotment of the household; 
"(B) withholding amounts from unemployment com-
pensation fi*om a member of the household under sub-
section (c); 
"(C) recovering from Federal pay or a Federal income 
tax refund under subsection (d); or 
"(D) any other meeins. 
"(2) COST EFFECTIVENESS.—Paragraph (1) shall not apply 
if the State agency demonstrates to the satisfaction of the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2333 
Secretary that all of the mesins referred to in paragraph (1) 
are not cost effective. 
"(3) MAXIMUM REDUCTION ABSENT FRAUD.—If a household 
received an overissuance of coupons without any member of 
the household being found ineligible to participate in the pro-
gram under section 6(b)(1) and a State agency elects to reduce 
tiie allotment of the household under paragraph (1)(A), the 
State agency shall not reduce the monthly allotment of the 
household luider paragraph (1)(A) by an amount in excess 
of the greater of— 
"(A) 10 percent of the monthly allotment of the house-
hold; or 
"(B) $10. 
"(4) PROCEDURES.—^A State agency shall collect £ui overissu-
ance of coupons issued to a household under paragraph (1) 
in accordance with the requirements established by the State 
agency for providing notice, electing a means of payment, and 
establishing a time schedule for pa5nnent."; and 
(2) in subsection (d)— 
(A) by striking "as determined under subsection (b) 
and except for claims arising from an error of the State 
agency," and inserting ", as determined under subsection 
(b)(1),"; and 
(B) by inserting before the period at the end the follow-
ing: "or a Federal income tax refund as authorized by 
section 3720A of title 31, United States Code". 
(b) CONFORMING AMENDMENTS.—Section 11(e)(8)(C) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C)) is amended— 
(1) by striking "and excluding claims" and all that follows 
through "such section"; and 
(2) by inserting before the semicolon at the end the 
following: "or a Federal income tax refund as authorized by 
section 3720A of title 31, United States Code". 
(c) RETENTION RATE.—^The proviso of the first sentence of sec-
tion 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is 
amended by striking "25 percent during the period beginning 
October 1, 1990" and all that follows through "section 13(b)(2) 
which arise" and inserting "35 percent of the value of all funds 
or allotments recovered or collected pursuant to sections 6(b) 
and 13(c) and 20 percent of the value of any other funds or allot-
ments recovered or collected, except the value of fiinds or allotments 
recovered or collected that arise". 
SEC. 846. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM 
REQUIREMENTS 
PENDING 
ADMINISTRATIVE 
AND 
JUDICIAL REVIEW. 
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) 
is amended— 
(1) by redesignating the first through seventeenth sen-
tences as paragraphs (1) through (17), respectively; and 
(2) by adding at the end the following: 
"(18) SUSPENSION OF STORES PENDING REVIEW.—Notwith- Effective date. 
standing any other provision of this subsection, any permanent 
disqualffication of a retail food store or wholesale food concern 
under paragraph (3) or (4) of section 12(b) shall be effective 
from the date of receipt of the notice of disquahfication. If 
the disqualification is reversed through administrative or 
110 STAT. 2334 
PUBLIC LAW 104-193—AUG. 22, 1996 
judicial review, the Secretary shall not be liable for the value 
of any sales lost during the disqualification period.". 
SEC. 846. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS. 
(a) 
FORFEITURE 
OF ITEMS 
EXCHANGED 
IN 
FOOD 
STAMP 
TRAFFICKING.—The first sentence of section 15(g) of the Food Stamp 
Act of 1977 (7 U.S.C. 2024(g)) is amended by striking "or intended 
to be furnished". 
(b) CRIMINAL FORFEITURE.—Section 15 of the Food Stamp Act 
of 1977 (7 U.S.C. 2024) is amended by adding at the end the 
following: 
"(h) CRIMINAL FORFEITURE.— 
"(1) IN GENERAL.—In imposing a sentence on a person 
convicted of an offense in violation of subsection (b) or (c), 
a court shall order, in addition to any other sentence imposed 
under this section, that the person forfeit to the United States 
all property described in paragraph (2). 
"(2) PROPERTY SUBJECT TO FORFEITURE.—All property, real 
and personal, used in a transaction or attempted transaction, 
to commit, or to facilitate the commission of, a violation (other 
th£in a misdemeanor) of subsection (b) or (c), or proceeds trace-
able to a violation of subsection (b) or (c), shall be subject 
to forfeiture to the United States under paragraph (1). 
"(3) INTEREST OF OWNER.—No interest in property shall 
be forfeited under this subsection as the result of any act 
or omission established by the owner of the interest to have 
been committed or omitted without the knowledge or consent 
of the owner. 
"(4) PROCEEDS.—The proceeds fi-om any sale of forfeited 
property and any monies forfeited under this subsection shall 
be used— 
"(A) first, to reimburse the Department of Justice for 
the costs incurred by the Department to initiate and com-
plete the forfeiture proceeding; 
"(B) second, to reimburse the Department of Agri-
culture Office of Inspector General for any costs the Office 
incurred in the law enforcement effort resulting in the 
forfeiture; 
"(C) third, to reimburse any Federal or State law 
enforcement 
agency 
for 
any 
costs 
incurred 
in 
the 
law enforcement effort resulting in the forfeiture; and 
"(D) fourth, by the Secretary to carry out the approval, 
reauthorization, and compliance investigations of retail 
stores and wholesale food concerns under section 9.". 
SEC. 847. LIMITATION ON FEDERAL MATCH. 
Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C, 
2025(a)(4)) is amended by inserting after the comma at the end 
the following: "but not including recruitment activities,". 
SEC. 848. STANDARDS FOR ADMINISTRATION. 
(a) IN GENERAL.—Section 16 of the Food Stamp Act of 1977 
(7 U.S.C. 2025) is amended by striking subsection (b). 
(b) CONFORMING AMENDMENTS.— 
(1) The first sentence of section 11(g) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(g)) is amended by striking "the 
Secretary's standards for the efficient and effective administra-
tion of the program established under section 16(b)(1) or". 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2335 
(2) Section 16(c)(1)(B) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)(1)(B)) is amended by striking "pursuant to sub-
section (b)". 
SEC. 849. WORK SUPPLEMENTATION OR SUPPORT PROGRAM. 
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), 
as amended by section 848(a), is amended by inserting after sub-
section (a) the following: 
"(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM.— 
"(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT 
PROGRAM.—In this subsection, the term 'work supplementation 
or support program' means a program under which, as deter-
mined by the Secretary, public assistance (including any bene-
fits provided under a pro-am established by the State and 
the food stamp program) is provided to an employer to be 
used for hiring and employing a public assistance recipient 
who was not employed by tne employer at the time the public 
assistance recipient entered the program. 
"(2) PROGRAM.—^A State agency may elect to use an amount 
equal to the allotment that would otherwise be issued to a 
household imder the food stamp program, but for the operation 
of this subsection, for the purpose of subsidizing or supporting 
a job under a work supplementation or support program estab-
lished by the State. 
"(3) PROCEDURE.—If a State agency makes an election 
under paragraph (2) and identifies each household that partici-
pates in the food stamp program that contains £in individual 
who is participating in the work supplementation or support 
program— 
"(A) the Secretary shall pay to the State agency an 
amount equal to the value of the allotment that the house-
hold would be eligible to receive but for the operation 
of this subsection; 
"(B) the State agency shall expend the amount received 
under subparagraph (A) in accordance with the work 
supplementation or support program in lieu of providing 
the allotment that the household would receive but for 
the operation of this subsection; 
"(C) for purposes of— 
"(i) sections 5 and 8(a), the amount received under 
this subsection shall be excluded fi-om household 
income and resources; and 
"(ii) section 8(b), the amount received under this 
subsection shall be considered to be the value of an 
allotment provided to the household; and 
"(D) the household shall not receive an allotment fi:om 
the State agency for the period during which the member 
continues to participate in the work supplementation or 
support program. 
"(4) OTHER WORK REQUIREMENTS.—NO individual shall be 
excused, by reason of the fact that a State has a work 
supplementation or support program, from £iny work require-
ment under section 6(d), except during the periods in which 
the individual is employed under the work supplementation 
or support program. 
"(5) LENGTH OF PARTICIPATION.—A State agency shall 
provide a description of how the public assistance recipients 
110 STAT. 2336 
PUBLIC LAW 104-193—AUG. 22, 1996 
in the program shall, within a specific period of time, be moved 
from supplemented or supported employment to employment 
that is not supplemented or supported. 
"(6) DISPLACEMENT.—A work supplementation or support 
program shall not displace the employment of individuals who 
are not supplemented or supported. . 
SEC. 850. WAIVER AUTHORITY. 
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended— 
(1) by redesignating subparagraph (B) as subparagraph 
(C); and 
(2) in subpgiragraph (A)— 
(A) in the first sentence, by striking "benefits to eligible 
households, including" and inserting the following: "benefits 
to eligible households, and may waive any requirement 
of this Act to the extent necessary for the project to be 
conducted. 
"(B) PROJECT REQUIREMENTS.— 
"(i) PROGRAM GOAL.—The Secretary may not con-
duct a project under subparagraph (A) unless— 
"(I) the project is consistent with the goal of 
the food stamp program of providing food assist-
ance to raise levels of nutrition among low-income 
individuals; and 
"(II) the project includes an evaluation to 
determine the effects of the project, 
"(ii) PERMISSIBLE PROJECTS.—The Secretary may 
conduct a project under subparagraph (A) to— 
"(I) improve program administration; 
"(II) increase the self-sufficiency of food stamp 
recipients; 
"(III) test innovative welfare reform strate-
gies; or 
"(IV) allow greater conformity with the rules 
of other programs than would be allowed but for 
this paragraph. 
"(iii) RESTRICTIONS ON PERMISSIBLE PROJECTS.— 
If the Secretary finds that a project under subpara-
graph (A) would reduce benefits by more than 20 per-
cent for more than 5 percent of households in the 
area subject to the project (not including any household 
whose benefits are reduced due to a failure to comply 
with work or other conduct requirements), the project— 
"(I) may not include more than 15 percent 
of the State's food stamp households; and 
"(II) shall continue for not more than 5 years 
after the date of implementation, unless the Sec-
retary approves an extension requested by the 
State agency at any time. 
"(iv) 
IMPERMISSIBLE 
PROJECTS.—The 
Secretary 
may not conduct a project under subparagraph (A) 
that— 
"(I) involves the payment of the value of an 
allotment in the form of cash, unless the project 
was approved prior to the date of enactment of 
this subparagraph; 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2337 
"(ID has the effect of substantially transferring 
fiinds made available under this Act to services 
or benefits provided primarily through another 
public assistance program, or using the funds for 
any purpose other than the purchase of food, pro-
gram administration, or an employment or train-
ing program; 
"(III) is inconsistent with— 
"(aa) the last 2 sentences of section 3(i); 
"(bb) the last sentence of section 5(a), 
insofar as a waiver denies assistance to an 
otherwise eligible household or individual if 
the household or individual has not failed to 
comply with any work, behavioral, or other 
conduct requirement under this or smother 
program; 
"(cc) section 5(c)(2); 
"(dd) paragraph (2)(B), (4)(F)(i), or (4)(K) 
of section 6(d); 
"(ee) section 8(b); 
"(ff) section 11(e)(2)(B); 
"(gg) the time standard under section 
11(e)(3); 
"(hh) subsection (a), (c), (g), (h)(2), or (h)(3) 
of section 16; 
"(ii) this paragraph; or 
"(ij) subsection (a)(1) or (g)(1) of sec-
tion 20; 
"(IV) modifies the operation of section 5 so 
as to have the effect of— 
"(aa) increasing the shelter deduction to 
households with no out-of-pocket housing costs 
or housing costs that consume a low percent-
age of the household's income; or 
"(bb) absolving a State from acting with 
reasonable promptness on substantial reported 
changes in income or household size (except 
that this subclause shall not apply with regard 
to changes related to food stamp deductions); 
"(V) is 
not 
limited 
to 
a 
specific 
time 
period; or 
"(VI) waives a provision of section 26. 
"(v) ADDITIONAL INCLUDED PROJECTS.—A pilot or 
experimental project may include"; 
(B) by striking "to aid to families with dependent chil-
dren under part A of title IV of the Social Security Act" 
and inserting "are receiving assistance under a State pro-
gram funded under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.)"; and 
(C) by striking "coupons. The Secretary" and all that 
follows through "Any pilot" and inserting the following: 
"coupons. 
"(vi) CASH PAYMENT PILOT PROJECTS.—Any pilot". 
110 STAT. 2338 
PUBLIC LAW 104-193—AUG. 22, 1996 
SEC. 851. RESPONSE TO WAIVERS. 
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)), as amended by section 850, is amended by adding 
at the end the following: 
"(D) RESPONSE TO WAIVERS.— 
"(i) RESPONSE.—Not later than 60 days after the 
date of receiving a request for a waiver under subpara-
graph (A), the Secretary shall provide a response that— 
"(I) approves the wsdver request; 
"(II) denies the waiver request and describes 
£iny modification needed for approval of the waiver 
request; 
"(III) denies the waiver request and describes 
the grounds for the denial; or 
"(IV) requests clarification of the wedver 
request. 
"(ii) FAILURE TO RESPOND.—If the Secretary does 
not provide a response in accordance with clause (i), 
the waiver shall be considered approved, xinless the 
approval is specifically prohibited by this Act. 
"(iii) NOTICE OF DENIAL.—On denial of a waiver 
request under clause (i)(III), the Secretary shall pro-
vide a copy of the waiver request eind a description 
of the reasons for the denial to the Committee on 
Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of 
the Senate.". 
SEC. 852. EMPLOYMENT miTIATIVES PROGRAM./ 
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) 
is amended by striking subsection (d) and inserting the following: 
"(d) EMPLOYMENT INITIATIVES PROGRAM.— 
"(1) ELECTION TO PARTICIPATE.— 
"(A) IN GENERAL.—Subject to the other provisions of 
this subsection, a State may elect to carry out an employ-
ment initiatives program under this subsection. 
"(B) REQUIREMENT.—A State shall be eligible to carry 
out an emplo3anent initiatives program imder this sub-
section only if not less than 50 percent of the households 
in the State that received food stamp benefits during the 
summer of 1993 also received benefits imder a State pro-
gram funded under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.) during the summer of 1993. 
"(2) PROCEDURE.— 
"(A) IN GENERAL.—A State that has elected to carry 
out an emplojnnent initiatives program under paragraph 
(1) may use amounts equal to the food stamp allotments 
that would otherwise be issued to a household under the 
food stamp progrsmi, but for the operation of this sub-
section, to provide cash benefits in lieu of the food stamp 
allotments to the household if the household is eligible 
under paragraph (3). 
"(B) PAYMENT.—The Secretary shall pay to each State 
that has elected to carry out an emplo3mient initiatives 
program under paragraph (1) an amount equal to the value 
of the allotment that each household participating in the 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2339 
program in the State would be eligible to receive under 
this Act but for the operation of this subsection. 
"(C) OTHER PROVISIONS.—For purposes of the food 
stamp program (other than this subsection)— 
"(i) cash assistance under this subsection shsdl 
be considered to be an allotment; and 
"(ii) each household receiving cash benefits under 
this subsection shall not receive any other food stamp 
benefit during the period for which the cash assistance 
is provided. 
"(D) ADDITIONAL PAYMENTS.—Each State that has 
elected to carry out an emplo3anent initiatives program 
under paragraph (1) shall— 
"(i) increase the cash benefits provided to each 
household participating in the program in the State 
under this subsection to compensate for any State or 
local sales tax that may be collected on purchases 
of food by the household, imless the Secretary deter-
mines on the basis of information provided by the 
State that the increase is unnecessary on the basis 
of the limited nature of the items subject to the State 
or local sales tsix; and 
"(ii) pay the cost of any increase in cash benefits 
required by clause (i). 
' 
"(3) ELIGIBILITY.—A household shall be eligible to receive 
cash benefits luider paragraph (2) if an adult member of the 
household— 
"(A) has worked in unsubsidized employment for not 
less than the preceding 90 days; 
"(B) has earned not less than $350 per month from 
the employment referred to in subparagraph (A) for not 
less than the preceding 90 days; 
"(C)(i) is receiving benefits iinder a State program 
funded imder part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.); or 
"(ii) was receiving benefits under a State program 
funded under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.) at the time the member first 
received cash benefits imder this subsection and is no 
longer eligible for the State program because of earned 
income; 
"(D) is continuing to earn not less than $350 per month 
from the employment referred to in subparagraph (A); and 
"(E) elects to receive cash benefits in lieu of food stamp 
benefits under this subsection. 
"(4) EVALUATION.—^A State that operates a program under 
this subsection for 2 years shall provide to the Secretary a 
written evaluation of the impact of cash assistance under this 
subsection. The State agency, with the concurrence of the Sec-
retary, shall determine the content of the evaluation.". 
SEC. 853. REAUTHORIZATION. 
The first sentence of section 18(a)(1) of the Food Stamp Act 
of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking "1991 through 
1997" and inserting "1996 through 2002". 
29-194 O - 96 - 20 : QL 3 Part 3 
110 STAT. 2340 
PUBLIC LAW 104-193—AUG. 22, 1996 
SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM. 
(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011 
et seq.) is amended by adding at the end the following: 
7 use 2035. 
"SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM. 
"(a) DEFINITION OF FEDERAL COSTS.—In this section, the term 
'Federal costs' does not include any Federal costs incurred under 
section 17. 
"(b) ELECTION.—Subject to subsection (d), a State may elect 
to carry out a Simplified Food Stamp Program (referred to in 
this section as a 'Program'), statewide or in a political subdivision 
of the State, in accordance with this section. 
"(c) OPERATION OF PROGRAM.—If a State elects to carry out 
a Program, within the State or a political subdivision of the State— 
"(1) a household in which no members receive assistance 
under a State program funded under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.) may not partici-
pate in the Program; 
"(2) a household in which all members receive assistance 
under a State program funded under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.) shall automati-
cally be eligible to participate in the Program; 
"(3) if approved by the Secretary, a household in which 
1 or more members but not all members receive assistance 
under a State program funded under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.) may be eligible 
to participate in the Program; and 
"(4) subject to subsection (f), benefits under the Program 
shall be determined under rules £ind procedures established 
by the State under— 
"(A) a State program funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.); 
"(B) the food stamp program; or 
"(C) a combination of a State program funded under 
part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.) and the food stamp program. 
"(d) APPROVAL OF PROGRAM.— 
"(1) STATE PLAN.—^A State agency may not operate a Pro-
gram unless the Secretary approves a State plan for the oper-
ation of the Program under paragraph (2). 
"(2) APPROVAL OF PLAN.—The Secretary shall approve any 
State plan to carry out a Program if the Secretary determines 
that the plan— 
"(A) complies with this section; and 
"(B) contains sufficient documentation that the plan 
will not increase Federal costs for any fiscal year. 
"(e) INCREASED FEDERAL COSTS.— 
"(1) DETERMINATION.— 
"(A) IN GENERAL.—The Secretary shall determine 
whether a Program being carried out by a State agency 
is increasing Federal costs imder this Act. 
"(B) No EXCLUDED HOUSEHOLDS.—In making a deter-
mination imder subparagraph (A), the Secretary shall not 
require the State agency to collect or report any information 
on households not included in the Program. 
"(C) ALTERNATIVE ACCOUNTING PERIODS.—The Sec-
retary may approve the request of a State agency to apply 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2341 
alternative accounting periods to determine if Federal costs 
do not exceed the Federal costs had the State agency not 
elected to carry out the Program. 
"(2) NOTIFICATION.—If the Secretary determines that the 
Program has increased Federal costs under this Act for any 
fiscal year or any portion of any fiscal year, the Secretary 
shall notify the State not later than 30 days after the Secretary 
makes the determination imder paragraph (1). 
"(3) ENFORCEMENT.— 
"(A) CORRECTIVE ACTION.—Not later than 90 days after 
the date of a notification under paragraph (2), the State 
shall submit a plan for approval by the Secretary for 
prompt corrective action that is designed to prevent the 
Program 
fi*om 
increasing Federal costs imder this Act. 
"(B) TERMINATION.—If the State does not submit a 
plan under subparagraph (A) or carry out a plan approved 
by the Secretary, the Secretary shall terminate the 
approved of the State agency operating the Program and 
the State agency shall be ineligible to operate a future 
Program. 
"(f) RULES AND PROCEDURES.— 
"(1) IN GENERAL.—In operating a Program, a State or politi-
cal subdivision of a State may follow the rules and procedures 
established by the State or political subdivision under a State 
program fimded under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.) or under the food stamp program. 
"(2) STANDARDIZED DEDUCTIONS.—In operating a Program, 
a State or political subdivision of a State may standardize 
the deductions provided under section 5(e). In developing the 
standardized deduction, the State shall consider the work 
expenses, dependent care costs, and shelter costs of participat-
ing households. 
"(3) REQUIREMENTS.—In operating a Program, a State or 
political subdivision shall comply with the requirements of— 
"(A) subsections (a) through (g) of section 7; 
"(B) section 8(a) (except that the income of a household 
may be determined under a State program funded under 
part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.)); 
"(C) subsection (b) and (d) of section 8; 
"(D) subsections (a), (c), (d), and (n) of section 11; 
"(E) paragraphs (8), (12), (16), (18), (20), (24), and 
(25) of section 11(e); 
"(F) section ll(e)(10) (or a comparable requirement 
established by the State under a State program fimded 
under part A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.)); and 
"(G) section 16. 
"(4) 
LIMITATION ON ELIGIBILITY.—Notwithstanding 
any 
other provision of this section, a household may not receive 
benefits iinder this section as a result of the eligibility of 
the household under a State program funded under part A 
of title IV of the Social Security Act (42 U.S.C. 601 et seq.), 
unless the Secretary determines that any household with 
income above 130 percent of the poverty guidelines is not 
eligible for the program.". 
110 STAT. 2342 
PUBLIC LAW 104-193—AUG. 22, 1996 
(b) STATE PLAN PROVISIONS.—Section 11(e) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(e)), as amended by sections 819(b) 
and 835, is amended by adding at the end the following: 
"(25) if a State elects to carry out a Simplified Food Stamp 
Program under section 26, the plans of the State agency for 
operating the program, including— 
"(A) the rules and procedures to be followed by the 
State agency to determine food stamp benefits; 
"(B) how the State agency will address the needs of 
households that experience high shelter costs in relation 
to the incomes of the households; and 
"(C) a description of the method by which the State 
agency will carry out a quality control system under section 
16(c).". 
(c) CONFORMING AMENDMENTS.— 
(1) Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 
2017), as amended by section 830, is amended— 
(A) by strikmg subsection (e); and 
(B) by redesignating subsection (f) as subsection (e). 
(2) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 
2026) is amended— 
(A) by striking subsection (i); and 
(B) by redesignating subsections (j) through (1) as sub-
sections (i) through (k), respectively. 
7 use 2026 note. 
SEC. 855. STUDY OF THE USE OF FOOD STAMPS TO PURCHASE 
VITAMINS AND MINERALS. 
(a) IN GENERAL.—The Secretary of Agriculture, in consultation 
with the National Academy of Sciences and the Center for Disease 
Control and Prevention, shall conduct a study on the use of food 
stamps provided under the Food Stamp Act of 1977 (7 U.S.C. 
2011 et seq.) to purchase vitamins and minerals. 
(b) ANALYSIS.—The study shall include— 
(1) an analysis of scientific findings on the efficacy of and 
need for vitamins and minerals, including— 
(A) the adequacy of vitsmiin and mineral intakes in 
low-income populations, as shown by research and surveys 
conducted prior to the study; and 
(B) the potential value of nutritional supplements in 
filling nutrient gaps that may exist in the United States 
population as a whole or in vulnerable subgroups in the 
population; 
(2) the impact of nutritional improvements (including vita-
min or mineral supplementation) on the health status and 
health care costs of women of childbearing age, pregnant or 
lactating women, and the elderly; 
(3) the cost of commercially available vitamin and mineral 
supplements; 
(4) the purchasing habits of low-income populations with 
regard to vitamins and minerals; 
(5) the impact of using food stamps to purchase vitamins 
and minerals on the food purchases of low-income house-
holds; and 
(6) the economic impact on the production of agricultural 
commodities of using food stamps to purchase vitamins and 
minerals. 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2343 
(c) REPORT.—^Not later than December 15, 1998, the Secretary 
shall report tiie results of the study to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
SEC. 856. DEFICIT REDUCTION. 
It is the sense of the Committee on Agriculture of the House 
of Representatives that reductions in outlays resulting from this 
title shall not be taken into account for purposes of section 252 
of the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 902). 
Subtitle B—Commodity Distribution 
Programs 
SEC. 871. EMERGENCY FOOD ASSISTANCE PROGRAM. 
(a) DEFINITIONS.—Section 201A of the Emergency Food Assist-
ance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended 
to read as follows: 
"SEC. 201A. DEFINITIONS. 
"In this Act: 
"(1) 
ADDITIONAL 
COMMODITIES.—The 
term 
'additional 
commodities' means commodities made available under section 
214 in addition to the commodities made available under sec-
tions 202 and 203D. 
"(2) 
AVERAGE 
MONTHLY 
NUMBER 
OF 
UNEMPLOYED 
PERSONS.—The term 'average monthly number of unemployed 
persons' means the average monthly number of unemployed 
persons in each State during the most recent fiscal year for 
which information concerning the number of unemployed per-
sons is available, as determined by the Bureau of Labor Statis-
tics of the Department of Labor. 
"(3) ELIGIBLE RECIPIENT AGENCY.—The term 'eligible recipi-
ent 
agency 
means 
a 
public 
or 
nonprofit 
organiza-
tion that— 
"(A) administers— 
"(i) an emergency feeding organization; 
"(ii) a charitable institution (including a hospital 
and a retirement home, but excluding a penal institu-
tion) to the extent that the institution serves needy 
persons; 
"(iii) a summer camp for children, or a child nutri-
tion program providing food service; 
"(iv) a nutrition project operating under the Older 
Americans Act of 1965 (42 U.S.C. 3001 et seq.), includ-
ing a project that operates a congregate nutrition site 
and a project that provides home-delivered meals; or 
"(v) a disaster relief program; 
"(B) has been designated by the appropriate State 
agency, or by the Secretary; and 
"(C) has been approved by the Secretary for participa-
tion in the program established under this Act. 
"(4) EMERGENCY FEEDING ORGANIZATION.—The term 'emer-
gency feeding organization' means a public or nonprofit 
organization that administers activities and projects (including 
110 STAT. 2344 
PUBLIC LAW 104-193—AUG. 22, 1996 
the activities and projects of a charitable institution, a food 
bank, a food pantry, a hrniger rehef center, a soup kitchen, 
or a similar public or private nonprofit eligible recipient agency) 
providing nutrition assistance to relieve situations of emergency 
£ind distress through the provision of food to needy persons, 
including low-income and unemployed persons. 
"(5) FOOD BANK.—The term 'food bank' means a public 
or charitable institution that maintains an established oper-
ation involving the provision of food or edible commodities, 
or the products of food or edible commodities, to food pantries, 
soup kitchens, hunger relief centers, or other food or feeding 
centers that, as an integral part of their normal activities, 
provide meals or food to feed needy persons on a regular basis. 
"(6) FOOD PANTRY.—The term 'food pantry* means a public 
or private nonprofit organization that distributes food to low-
income and unemployed households, including food fi*om sources 
other than the Department of Agriculture, to relieve situations 
of emergency and distress. 
"(7) POVERTY LINE.—The term 'poverty line' has the mean-
ing provided in section 673(2) of the Community Services Block 
Grant Act (42 U.S.C. 9902(2)). 
"(8) SOUP KITCHEN.—The term 'soup kitchen' means a pub-
lic or charitable institution that, as an integral part of the 
normal activities of the institution, maintains an established 
feeding operation to provide food to needy homeless persons 
on a regular basis. 
"(9) TOTAL VALUE OF ADDITIONAL COMMODITIES.—The term 
'total value of additional commodities' means the actual cost 
of all additional commodities that are paid by the Secretary 
(including the distribution and processing costs incurred by 
the Secretary). 
"(10) VALUE OF ADDITIONAL COMMODITIES ALLOCATED TO 
EACH STATE.—^The term 'value of additional commodities allo-
cated to each State' means the actual cost of additional commod-
ities allocated to each State that are paid by the Secretary 
(including the distribution and processing costs incurred by 
the Secretary).". 
(b) STATE PLAN.—Section 202A of the Emergency Food Assist-
ance Act of 1983 (PubHc Law 98-8; 7 U.S.C. 612c note) is amended 
to read as follows: 
-SEC. 202A. STATE PLAN. 
"(a) IN GENERAL.—To receive commodities imder this Act, a 
State shall submit a plan of operation and administration every 
4 years to the Secretary for approval. The plan may be amended 
at any time, with the approval of the Secretary. 
"(b) REQUIREMENTS.—Each plan shall— 
"(1) designate the State agency responsible for distributing 
the commodities received under this Act; 
"(2) set forth a plan of operation and administration to 
expeditiously distribute commodities under this Act; 
"(3) set forth the standards of eligibility for recipient agen-
cies; and 
"(4) set forth the standards of eligibility for individual 
or household recipients of commodities, which shall require— 
"(A) individuals or households to be comprised of needy 
persons; and 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2345 
"(B) individual or household members to be residing 
in the geographic location served by the distributing agency 
at the time of applying for assistance. 
"(c) STATE ADVISORY BOARD.—The Secretary shall encourage 
each State receiving commodities under this Act to establish a 
State advisory board consisting of representatives of all entities 
in the State, both public and private, interested in the distribution 
of commodities received under this Act.". 
(c) AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE 
FUNDS.—Section 204(a)(1) of the Emergency Food Assistance Act 
of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended— 
(1) in the first sentence, by striking "for State and local" 
and all that follows through "under this title" and inserting 
"to pay for the direct and indirect administrative costs of the 
States related to the processing, transporting, and distributing 
to eligible recipient agencies of commodities provided by the 
Secretary under this Act and commodities secured from other 
sources"; and 
(2) by striking the fourth sentence. 
(d) DELIVERY OF COMMODITIES.—Section 214 of the Emergency 
Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) 
is amended— 
(1) by striking subsections (a) through (e) and (j); 
(2) by redesignating subsections (f) through (i) as sub-
sections (a) through (d), respectively; 
(3) in subsection (b), as redesignated by paragraph (2)— 
(A) in the first sentence, by striking "subsection (f) 
or subsection (j) if applicable," and inserting "subsection 
(a),"; and 
(B) in the second sentence, by striking "subsection 
(f)" and inserting "subsection (a)"; 
(4) by striking subsection (c), as redesignated by paragraph 
(2), and inserting the following: 
"(c) ADMINISTRATION.— 
"(1) IN GENERAL.—Commodities made available for each 
fiscal year under this section shall be delivered at reasonable 
intervals to States based on the grants calculated under sub-
section (a), or reallocated under subsection (b), before December 
31 of the following fiscal year. 
"(2) ENTITLEMENT.—Each State shall be entitled to receive 
the value of additional commodities determined under sub-
section (a)."; and 
(5) in subsection (d), as redesignated by paragraph (2), 
by striking "or reduce" and all that follows through "each 
fiscal year". 
(e) TECHNICAL AMENDMENTS.—The Emergency Food Assistance 
Act of 1983 (Pubhc Law 98-8; 7 U.S.C. 612c note) is amended— 
(1) in the first sentence of section 203B(a), by striking 
"203 and 203A of this Act" and inserting "203A"; 
(2) in section 204(a), by striking "title" each place it appears 
and inserting "Act"; 
(3) in • the first sentence of section 210(e), by striking 
"(except as otherwise provided for in section 214(j))"; and 
(4) by striking section 212. 
(f) REPORT ON EFAP.—Section 1571 of the Food Security Act 
of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed. 
110 STAT. 2346 
PUBLIC LAW 104-193—AUG. 22, 1996 
(g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP 
PROGRAM.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
as amended by section 854(a), is amended by adding at the end 
the following: 
7 use 2036. 
"SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
ASSISTANCE PROGRAM. 
"(a) PURCHASE OF COMMODITIES.—From amounts made avail-
able to carry out this Act, for each of fiscal years 1997 through 
2002, the Secretary shall purchase $100,000,000 of a variety of 
nutritious and usefiil commodities of the types that the Secretary 
has the authority to acquire through the Commodity Credit Corpora-
tion or under section 32 of the Act entitled 'An Act to amend 
the Agricultural Adjustment Act, and for other purposes', approved 
August 24, 1935 (7 U.S.C. 612c), and distribute the commodities 
to States for distribution in accordance with section 214 of the 
Emergency Food Assistance Act of 1983 (PubUc Law 98-8; 7 U.S.C. 
612c note). 
"(b) 
BASIS 
FOR 
COMMODITY 
PURCHASES.—In purchasing 
commodities under subsection (a), the Secretary shall, to the extent 
practicable and appropriate, make purchases based on— 
"(1) agricultural market conditions; 
"(2) preferences and needs of States and distributing 
agencies; and 
"(3) preferences of recipients.". 
7 use 612c note. 
(h) EFFECTIVE DATE.—^The amendments made by subsection 
(d) shall become effective on October 1,1996. 
SEC. 872. FOOD BANK DEMONSTRATION PROJECT. 
Section 3 of the Charitable Assistance and Food Bank Act 
of 1987 (Public Law 100-232; 7 U.S.C. 612c note) is repealed. 
SEC. 873. HUNGER PREVENTION PROGRAMS. 
The Hunger Prevention Act of 1988 (PubHc Law 100-435; 7 
U.S.C. 612c note) is amended— 
(1) by striking section 110; 
(2) by striking subtitle C of title II; and 
(3) by striking section 502. 
SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING. 
Section 1773 of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is amended 
by striking subsection (f). 
Subtitle C—^Electronic Benefit Transfer 
Systems 
SEC. 
891. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT 
TRANSFER SYSTEMS. 
Section 904 of the Electronic Fimd Transfer Act (15 U.S.C. 
1693b) is amended— 
(1) by striking "(d) In the event that" and inserting "(d) 
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN 
FINANCIAL INSTITUTIONS.— 
"(1) IN GENERAL.—If; and 
(2) by adding at the end the following: 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2347 
"(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT 
TRANSFER SYSTEMS.— 
"(A) 
DEFINITION OF ELECTRONIC BENEFIT TRANSFER 
SYSTEM.—In this paragraph, the term 'electronic benefit 
transfer system'— 
"(i) means a system iinder which a government 
agency distributes needs-tested benefits by estabhshing 
accounts that may be accessed by recipients electroni-
cally, such as through automated teller machines or 
point-of-sale terminals; and 
"(ii) does not include employment-related pay-
ments, including salaries and pension, retirement, or 
unemployment benefits established by a Federal, State, 
or local government agency. 
"(B) ExEMFnON GENERALLY.—The disclosures, protec-
tions, responsibilities, and remedies established under this 
title, and any regulation prescribed or order issued by 
the Board in accordance with this title, shall not apply 
to any electronic benefit transfer system established under 
State or local law or administered by a State or local 
government. 
"(C) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S 
ACCOUNT.—Subparagraph (B) shall not apply with respect 
to £iny electronic funds transfer under an electronic benefit 
transfer system for a deposit directly into a consimier 
account held by the recipient of the benefit. 
"(D) RULE OF CONSTRUCTION.—No provision of this 
paragraph— 
"(i) affects or alters the protections otherwise 
applicable with respect to benefits established by any 
other provision Federal, State, or local law; or 
"(ii) otherwise supersedes the application of any 
State or local law.". 
TITLE K—MISCELLANEOUS 
SEC. 901. APPROPRIATION BY STATE LEGISLATURES. 
42 USC 601 note. 
(a) IN GENERAL,—^Any funds received by a State under the 
provisions of law specified in subsection (b) shall be subject to 
appropriation by the State legislature, consistent with the terms 
and conditions required under such provisions of law. 
(b) PROVISIONS OF LAW.—The provisions of law specified in 
this subsection are the following: 
(1) Part A of title IV of the Social Security Act (relating 
to block grants for temporary assistance for needy families). 
(2) The Child Care and Development Block Grant Act of 
1990 (relating to block grants for child care). 
SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED 21 USC 862b. 
SUBSTANCES. 
Notwithstanding any other provision of law. States shall not 
be prohibited by the Federal Government fi*om testing welfare 
recipients for use of controlled substances nor fi-om sanctioning 
welfare recipients who test positive for use of controlled substances. 
110 STAT. 2348 
PUBLIC LAW 104-193—AUG. 22, 1996 
SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO 
FUGITIVE FELONS AND PROBATION AND PAROLE 
VIOLATORS. 
(a) ELIGIBILITY FOR ASSISTANCE.—The United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended— 
42 use I437d. 
(1) in section 6(1)— 
(A) in paragraph (5), by striking "and" at the end; 
(B) in paragraph (6), by striking the period at the 
end and inserting "; and"; and 
(C) by inserting immediately after paragraph (6) the 
following new paragraph: 
"(7) provide that it shall be cause for immediate termination 
of the tenancy of a public housing tenant if such tenant— 
"(A) is fleeing to avoid prosecution, or custody or 
confinement after conviction, under the laws of the place 
from which the individual flees, for a crime, or attempt 
to commit a crime, which is a felony under the laws of 
the 
place 
from 
which 
the 
individual 
flees, or which, in the case of the State of New Jersey, 
is a high misdemeanor under the laws of such State; or 
"(2) is violating a condition of probation or parole imposed 
under Federal or State law."; and 
42 use I437f. 
(2) in section 8(d)(1)(B)— 
(A) in clause (iii), by striking "and" at the end; 
(B) in clause (iv), by striMng the period at the end 
and inserting "; and"; and 
(C) by adding after clause (iv) the following new clause: 
"(v) it shall be cause for termination of the tenancy 
of a tenant if such tensint— 
"(I) is fleeing to avoid prosecution, or custody 
or confinement after conviction, under the laws 
of the place from which the individual flees, for 
a crime, or attempt to commit a crime, which 
is a felony under the laws of the place from which 
the individual flees, or which, in the case of the 
State of New Jersey, is a high misdemesuior under 
the laws of such State; or 
"(II) is violating a condition of probation or 
parole imposed under Federal or State law;". 
(b) PROVISION OF INFORMATION TO LAW ENFORCEMENT AGEN-
CIES.—Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.) is amended by adding at the end the following: 
42USei437z. 
"SEC. 27. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT 
AGENCIES. 
"Notwithstanding any other provision of law, each public hous-
ing agency that enters into a contract for assistance under section 
6 or 8 of this Act with the Secretary shall furnish any Federal, 
State, or local law enforcement officer, upon the request of the 
officer, with the current address. Social Security number, and photo-
graph (if applicable) of any recipient of assistance under this Act, 
if the officer— 
"(1) furnishes the public housing agency with the name 
of the recipient; and 
"(2) notifies the agency that— 
"(A) such recipient— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2349 
"(i) is fleeing to avoid prosecution, or custody or 
confinement after conviction, under the laws of the 
place from which the individual flees, for a crime, 
or attempt to commit a crime, which is a felony under 
the laws of the place from which the individual flees, 
or which, in the case of the State of New Jersey, 
is a high misdemeanor under the laws of such State; 
or 
"(ii) is violating a condition of probation or parole 
imposed under Federal or State law; or 
"(iii) has information that is necessary for the offi-
cer to conduct the officer's official duties; 
"(B) the location or apprehension of the recipient is 
within such officer's official duties; and 
"(C) the request is made in the proper exercise of 
the officer's official duties.". 
SEC. 
904. 
SENSE 
OF 
THE 
SENATE 
REGARDING 
THE 
INABILITY 
OF 
THE 
NONCUSTODIAL 
PARENT 
TO 
PAY 
CHILD 
SUPPORT. 
It is the sense of the Senate that— 
(a) States should diligently continue their efforts to enforce 
child support payments by the non-custodial parent to the 
custodial parent, regardless of the employment status or loca-
tion of the non-custodial parent; and 
(b) States are encouraged to pursue pilot programs in which 
the parents of a non-adult, non-custodial parent who refuses 
to or is unable to pay child support must— 
(1) pay or contribute to the child support owed by 
the non-custodial parent; or 
(2) otherwise fulfill all financial obligations and meet 
all conditions imposed on the non-custodial parent, such 
as participation in a work program or other related activity. 
SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE 
PREGNANCIES. 
(a) IN GENERAL.—Not later than January 1, 1997, the Secretary 
of Health and Human Services shall establish and implement a 
strategy for— 
(1) preventing out-of-wedlock teenage pregnancies, and 
(2) assuring that at least 25 percent of the communities 
in the United States have teenage pregnancy prevention pro-
grams in place. 
(b) REPORT.—Not later than June 30, 1998, and annually there-
after, the Secretary shall report to the Congress with respect to 
the progress that has been made in meeting the goals described 
in paragraphs (1) and (2) of subsection (a). 
SEC. 906. SENSE OF THE SENATE REGARDING ENFORCEMENT OF 
STATUTORY RAPE LAWS. 
(a) SENSE OF THE SENATE.—It is the sense of the Senate that 
States and local jurisdictions should aggressively enforce statutory 
rape laws. 
(b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY RAPE.—Not 
later than January 1, 1997, the Attorney General shall establish 
and implement a program that— 
(1) studies the linkage between statutory rape and teenage 
pregnancy, particularly by predatory older men committing 
repeat offenses; and 
42 u s e 710 note. 
42 u s e 14016. 
Establishment. 
110 STAT. 2360 
PUBLIC LAW 104-193—AUG. 22, 1996 
(2) educates State and local criminal law enforcement offi-
cials on the prevention and prosecution of statutory rape, focus-
ing in particular on the commission of statutory rape by preda-
tory older men committing repeat offenses, and any links to 
teenage pregnancy. 
(c) 
VIOLENCE AGAINST 
WOMEN 
INITIATIVE.—The Attorney 
General shall ensure that the Department of Justice's Violence 
Against Women initiative addresses the issue of statutory rape, 
particularly the commission of statutory rape by predatory older 
men committing repeat offenses. 
SEC. 907. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT 
TRANSFER SYSTEMS. 
Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 
1693b) is amended— 
(1) by striking "(d) In the event" and inserting "(d) 
APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN 
FiNANCL\L INSTITUTIONS.— 
"(1) IN GENERAL.—In the event"; and 
(2) by adding at the end the following new paragraph: 
"(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT 
TRANSFER PROGRAMS.— 
"(A) EXEMPTION GENERALLY.—The disclosures, protec-
tions, responsibilities, and remedies established under this 
title, and any regulation prescribed or order issued by 
the Bo£ird in accordance with this title, shall not apply 
to any electronic benefit transfer program established 
under State or local law or administered by a State or 
local government. 
"(B) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S 
ACCOUNT.—Subparagraph (A) shall not apply with respect 
to any electronic fiinds transfer under an electronic benefit 
transfer program for deposits directly into a consumer 
account held by the recipient of the benefit. 
"(C) RULE OF CONSTRUCTION.—No provision of this 
pEiragraph may be construed as— 
"(i) affecting or altering the protections otherwise 
applicable with respect to benefits established by Fed-
eral, State, or local law; or 
"(ii) otherwise superseding the application of any 
State or local law. 
"(D) 
ELECTRONIC 
BENEFIT 
TRANSFER 
PROGRAM 
DEFINED.—For purposes of this paragraph, the term 'elec-
tronic benefit transfer program'— 
"(i) means a program under which a government 
agency distributes needs-tested benefits by establishing 
accounts to be accessed by recipients electronically, 
such as through automated teller machines, or point-
of-sale terminals; and 
"(ii) does not include emplojnnent-related pay-
ments, including salaries and pension, retirement, or 
unemployment benefits established by Federal, State, 
or local governments.". 
SEC. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL 
SERVICES; USE OF VOUCHERS. 
(a) REDUCTION OF GRANTS.—Section 2003(c) of the Social Secu-
rity Act (42 U.S.C. 1397b(c)) is amended— 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2351 
(1) by striking "and" at the end of paragraph (4); and 
(2) by striking paragraph (5) and inserting the following: 
"(5) $2,800,000,000 for each of the fiscal years 1990 through 
1995' 
"(6) $2,381,000,000 for the fiscal year 1996; 
"(7) $2,380,000,000 for each of the fiscal years 1997 through 
2002; and 
"(8) $2,800,000,000 for the fiscal year 2003 and each 
succeeding fiscal year.". 
(b) AUTHORITY TO USE VOUCHERS.—Section 2002 of such Act 
(42 U.S.C. 1937a) is amended by adding at the end the following: 
42 USC 1397a. 
"(f) A State may use funds provided under this title to provide 
vouchers, for services directed at the goals set forth in section 
2001, to families, including— 
"(1) families who have become ineligible for assistance 
under a State program funded under part A of title IV 
by reason of a durational limit on the provision of such assist-
ance; and 
"(2) families denied cash assistance under the State pro-
gram funded under part A of title IV for a child who is bom 
to a member of the family who is— 
"(A) a recipient of assistance imder the program; or 
"(B) a person who received such assistance at any 
time during the 10-month period ending with the birth 
of the child.". 
SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT 
ON BASIS OF DISQUALIFIED INCOME. 
(a) REDUCTION IN DISQUALIFIED INCOME THRESHOLD.— 
(1) IN GENERAL.—Paragraph (1) of section 32(i) of the 
Internal Revenue Code of 1986 (relating to denial of credit 
for individuals having excessive investment income) is amended 
by striking "$2,350" and inserting "$2,200". 
(2) ADJUSTMENT FOR INFLATION.—Subsection (j) of section 
32 of such Code is amended to read as follows: 
"(j) INFLATION ADJUSTMENTS.— 
"(1) IN GENERAL.—In the case of any taxable year beginning 
after 1996, each of the dollar amounts in subsections (b)(2) 
and (i)(l) shall be increased by an amount equal to— 
"(A) such dollar amount, multiplied by 
"(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the taxable 
year begins, determined by substituting 'calendar year 
1995' for 'calendar year 1992' in subparagraph (B) thereof 
"(2) ROUNDING.— 
"(A) IN GENERAL.—If any dollar amount in subsection 
(b)(2), after being increased imder paragraph (1), is not 
a multiple of $10, such dollar amount shall be rounded 
to the nearest midtiple of $10. 
"(B) DiSQUAIJFIED INCOME THRESHOLD AMOUNT.—If the 
dollar amoimt in subsection (i)(l), after being increased 
under paragraph (1), is not a multiple of $50, such amount 
shall be roiinded to the next lowest multiple of $50.". 
(3) CONFORMING AMENDMENT.—Paragraph (2) of section 
32(b) of such Code is amended to read as follows: 
110 STAT. 2352 
PUBLIC LAW 104-193—AUG. 22, 1996 
"(2) AMOUNTS.—The earned income amount and the phase-
out amount shall be determined as follows: 
In the case of an eligi- 
The earned income 
The phaseout 
ble individual with: 
amount is: 
amount is: 
1 qualifying child 
$6,330 
$11,610 
2 or more qualifying 
$8,890 
$11,610 
children. 
No qualifying children 
$4,220 
$ 5,280". 
(b) DEFINITION OF DISQUALIFIED INCOME.—Paragraph (2) 
of 
section 32(i) of such Code (defining disqualified income) is amended 
by striking "and" at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting a comma, 
and by adding at the end the following new subparagraphs: 
"(D) the capital gain net income (as defined in section 
1222) of the taxpayer for such taxable year, and 
"(E) the excess (if any) of— 
"(i) the aggregate income from all passive activities 
for the taxable year (determined without regard to 
any amount included in earned income under sub-
section (c)(2) or described in a preceding subpara-
graph), over 
"(ii) the aggregate losses from all passive activities 
for the taxable year (as so determined). 
For purposes of subparagraph (E), the term 'passive activity' 
has the meaning given such term by section 469.". 
26 u s e 32 note. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 1995. 
(2) ADVANCE PAYMENT INDIVIDUALS.—In the case of any 
individual who on or before June 26, 1996, has in effect an 
earned income eligibility certificate for the individual's taxable 
year beginning in 1996, the amendments made by this section 
shall apply to taxable years beginning after December 31, 1996. 
SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION 
FOR EARNED INCOME CREDIT. 
(a) IN GENERAL.—Subsections (a)(2)(B), (c)(1)(C), and (f)(2)(B) 
of section 32 of the Internal Revenue Code of 1986 are each amended 
by striking "adjusted gross income" each place it appears and insert-
ing "modified adjusted gross income". 
(b) MODIFIED ADJUSTED GROSS INCOME DEFINED.—Section 32(c) 
of such Code (relating to definitions and special rules) is amended 
by adding at the end the following new paragraph: 
"(5) MODIFIED ADJUSTED GROSS INCOME.— 
"(A) IN GENERAL.—The term 'modified adjusted gross 
income' means adjusted gross income determined without 
regard to the amounts described in subparagraph (B). 
"(B) CERTAIN AMOUNTS DISREGARDED.—^An amount is 
described in this subparagraph if it is— 
"(i) the amount of losses from sales or exchanges 
of capital assets in excess of gains from such sales 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2353 
or exchanges to the extent such amount does not exceed 
the amount under section 1211(b)(1), 
"(ii) the net loss from estates and trusts, 
"(iii) the excess (if any) of amounts described in 
subsection (i)(2)(C)(ii) over the amounts described in 
subsection (i)(2)(C)(i) (relating to nonbusiness rents 
and royalties), and 
"(iv) 50 percent of the net loss from the carrying 
on of trades or businesses, computed separately with 
respect to— 
"(I) trades or businesses (other than farming) 
conducted as sole proprietorships, 
"(II) trades or businesses of farming conducted 
as sole proprietorships, and 
"(III) other trades or businesses. 
For purposes of clause (iv), there shall not be taken into 
account items which are attributable to a trade or business 
which consists of the performance of services by the tax-
payer as an employee.". 
(c) EFFECTIVE DATES.— 
26 use 32 note. 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 1995. 
(2) ADVANCE PAYMENT INDIVIDUALS.—In the case of any 
individual who on or before June 26, 1996, has in effect an 
earned income eligibility certificate for the individual's taxable 
year beginning in 1996, the amendments made by this section 
shall apply to taxable years beginning after December 31, 1996. 
SEC. 
911. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC 
42 USC 608a. 
ASSISTANCE PROGRAMS. 
(a) IN GENERAL.—If an individual's benefits under a Federal, 
State, or local law relating to a means-tested welfare or a public 
assistance program are reduced because of an act of fraud by 
the individual under the law or program, the individual may not, 
for the duration of the reduction, receive an increased benefit under 
any other means-tested welfare or public assistance program for 
which Federal funds are appropriated as a result of a decrease 
in the income of the individual (determined under the applicable 
program) attributable to such reduction. 
(b) WELFARE OR PLFBLIC ASSISTANCE PROGRAMS FOR WHICH 
FEDERAL FUNDS ARE AI>PROPRIATED.—For purposes of subsection 
(a), the term "means-tested welfare or public assistance program 
for which Federal funds are appropriated" includes the food stamp 
program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.), any program of public or assisted housing under title I of 
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), 
and any State program funded under part A of title IV of the 
Social Security Act (42 U.S.C. 601 et seq.). 
SEC. 912. ABSTINENCE EDUCATION. 
Title V of the Social Security Act (42 U.S.C. 701 et seq.) 
is amended by adding at the end the following section: 
"SEPARATE PROGRAM FOR ABSTINENCE EDUCATION 
"SEC. 510. (a) For the purpose described in subsection (b), 42 USC 710. 
the Secretary shall, for fiscal year 1998 and each subsequent fiscal 
110 STAT. 2354 
PUBLIC LAW 104-193—AUG. 22, 1996 
Appropriation 
authorization. 
Effective date. 
Effective date. 
year, allot to each State which has transmitted an application 
for the fiscal year under section 505(a) an amount equal to the 
product of— 
"(1) the amount appropriated in subsection (d) for the fiscal 
year; and 
"(2) the percentage determined for the State under section 
502(c)(l)(B)(ii). 
"(b)(1) The purpose of an allotment under subsection (a) to 
a State is to enable the State to provide abstinence education, 
and at the option of the State, where appropriate, mentoring, coun-
seling, and adult supervision to promote abstinence from sexual 
activity, with a focus on those groups which are most likely to 
bear children out-of-wedlock. 
"(2) For purposes of this section, the term 'abstinence education' 
means an educational or motivational program which— 
"(A) has as its exclusive purpose, teaching the social, 
psychological, and health gains to be realized by abstaining 
from sexual activity; 
"(B) teaches abstinence from sexual activity .outside 
marriage as the expected standard for all school age chil-
dren; 
"(C) teaches that abstinence from sexual activity is 
the only certain way to avoid out-of-wedlock pregnancy, 
sexually transmitted diseases, and other associated health 
problems; 
"(D) teaches that a mutually faithful monogamous rela-
tionship in context of marriage is the expected standard 
of human sexual activity; 
"(E) teaches that sexual activity outside of the context 
of marriage is likely to have harmful psychological and 
physical effects; 
"(F) teaches that bearing children out-of-wedlock is 
likely to have harmful consequences for the child, the 
child's parents, and society; 
"(G) teaches young people how to reject 
sexual 
advances and how alcohol and drug use increases vulner-
ability to sexual advances; and 
"(H) teaches the importance of attaining self-sufiiciency 
before engaging in sexual activity. 
"(c)(1) Sections 503, 507, and 508 apply to allotments under 
subsection (a) to the same extent and in the same manner as 
such sections apply to allotments under section 502(c). 
"(2) Sections 505 and 506 apply to allotments under subsection 
(a) to the extent determined by the Secretary to be appropriate. 
"(d) For the purpose of allotments under subsection (a), there 
is appropriated, out of any money in the Treasury not otherwise 
appropriated, an additional $50,000,000 for each of the fiscal years 
1998 through 2002. The appropriation under the preceding sentence 
for a fiscal year is made on October 1 of the fiscal year.". 
SEC. 913. CHANGE IN REFERENCE. 
Effective January 1, 1997, the third sentence of section 1902(a) 
and section 1908(e)(1) of the Social Security Act (42 U.S.C. 1396a(a), 
1396g-1(e)(1)) are each amended by striking "The First Church 
of Christ, Scientist, Boston, Massachusetts" and inserting "The 
PUBLIC LAW 104-193—AUG. 22, 1996 
110 STAT. 2355 
Commission for Accreditation of Christian Science Nursing 
Organizations/Facilities, Inc." each place it appears. 
Approved August 22, 1996. 
LEGISLATIVE HISTORY—H.R. 3734 (S. 1956): 
HOUSE REPORTS: Nos. 104-651 (Comm. on the Budget) and 104-725 (Comm. of 
Conference). 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
July 17, 18, considered and passed House. 
July 18, 19, 22, 23, considered and passed Senate, amended, in lieu of 
S. 1956. 
July 31, House agreed to conference report. 
Aug. 1, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Aug. 22, Presidential remarks and statement.