[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3742 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3742

To establish a commission to design a plan for transition from certain 
    welfare, job training, and child care programs to new programs 
providing temporary financial aid and assistance in locating permanent 
                              employment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1994

Mr. Fingerhut introduced the following bill; which was referred jointly 
  to the Committees on Ways and Means, Agriculture, and Education and 
                                 Labor

_______________________________________________________________________

                                 A BILL


 
To establish a commission to design a plan for transition from certain 
    welfare, job training, and child care programs to new programs 
providing temporary financial aid and assistance in locating permanent 
                              employment.

    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 ``Welfare Elimination Act of 1994''.

SEC. 2. ESTABLISHMENT OF COMMISSION TO ELIMINATE WELFARE.

    There is established a commission to be known as the ``Commission 
to Eliminate Welfare'' (in this Act referred to as the ``Commission'').

SEC. 3. DUTIES OF COMMISSION.

    (a) Welfare and Job Training Reform.--
            (1) In general.--The Commission shall design a replacement 
        for the program of aid to families with dependent children 
        under part A of title IV of the Social Security Act, the food 
        stamp program under the Food Stamp Act of 1977, the programs 
        under the Job Training Partnership Act, and the targeted jobs 
        credit under section 51 of the Internal Revenue Code of 1986 
        that is composed of--
                    (A) the use of amounts equal to the State and local 
                shares under such programs for education and job 
                training assistance for unemployed individuals in 
                accordance with paragraph (2);
                    (B) a temporary emergency assistance program that 
                meets the requirements of paragraph (3);
                    (C) such modifications to the program of 
                supplemental security income benefits under title XVI 
                of the Social Security Act as may be necessary to 
                accomplish the goals described in paragraph (4);
                    (D) a national service work program that meets the 
                requirements of paragraph (5);
                    (E) a targeted job training tax credit that meets 
                the requirements of paragraph (6); and
                    (F) an enhanced earned income tax credit that meets 
                the requirements of paragraph (7).
            (2) Use of state and local shares for education and job 
        training assistance for unemployed individuals.--Each State and 
        local government is to ensure that amounts equal to the 
        aggregate amounts of State and local shares used to carry out 
        programs specified in the matter preceding subparagraph (A) of 
        paragraph (1) are to be used to provide education and job 
        training assistance to unemployed individuals.
            (3) Temporary emergency assistance program.--The 
        requirements of this paragraph are as follows:
                    (A) Eligibility for benefits.--A household is to be 
                eligible for benefits under the program if--
                            (i) the total income of the members of the 
                        household is less than 50 percent of the 
                        poverty line; and
                            (ii) the head of the household is not a 
                        recipient of supplemental security income 
                        benefits under title XVI of the Social Security 
                        Act.
                    (B) Disregard of ssi recipients.--Except as 
                provided in subparagraph (A)(ii), recipients of 
                supplemental security income benefits under title XVI 
                of the Social Security Act are to be disregarded in 
                determining the eligibility of a household for 
                benefits, and the amount of benefits payable to the 
                household, under the program.
                    (C) Amount of benefits.--Benefits under the program 
                are to be paid to a household in an amount equal to the 
                amount by which 50 percent of the poverty line exceeds 
                the total income of the members of the household.
                    (D) Duration of benefits.--
                            (i) In general.--Subject to clauses (ii) 
                        and (iii), benefits under the program are to be 
                        provided to a household for not more than 6 
                        months in any 24-month period.
                            (ii) Exception for certain households that 
                        include a newborn baby or disabled minor.--A 
                        household that meets the requirement of 
                        subparagraph (A) is to remain eligible for 
                        benefits under the program for so long as--
                                    (I) the household includes a single 
                                parent or guardian of a member of the 
                                household who--
                                            (aa) has not attained 3 
                                        months of age; or
                                            (bb) is disabled; and
                                    (II) each member of the household 
                                who has not attained 18 years of age is 
                                living in a living arrangement 
                                supervised by an adult.
                            (iii) Exception for certain full-time 
                        students.--An individual who has not attained 
                        20 years of age is to remain eligible for 
                        benefits under the program for so long as--
                                    (I) the household of which the 
                                individual is a member (but for clause 
                                (i)) would be eligible for such 
                                benefits; and
                                    (II) the individual is a full-time 
                                student in a secondary school (or in 
                                the equivalent level of vocational or 
                                technical training).
                    (E) Poverty line.--As used in this paragraph, the 
                term ``poverty line'' means, with respect to a 
                household the income official poverty line (as defined 
                by the Office of Management and Budget, and revised 
                annually in accordance with section 673(2) of the 
                Omnibus Budget Reconciliation Act of 1981) applicable 
                to a family of the same size as the household involved.
            (4) Modifications to ssi program.--The goals described in 
        this paragraph are as follows:
                    (A) Inclusion of minor children of eligible 
                individuals.--Expand the program to include benefits 
                for minor children of individuals eligible for such 
                benefits.
                    (B) Provisions of benefits based on household 
                size.--Provide benefits to a household in an amount 
                that is based on the size of the household.
                    (C) Reduce need for state assistance.--Ensure that 
                all individuals who are eligible for and have applied 
                for such benefits receive such benefits in a timely 
                manner, and expand the program to the extent necessary 
                to provide benefits to individuals and families who 
                cannot support themselves through work and available 
                benefits under State income assistance programs.
            (5) National service work program.--The requirements of 
        this paragraph are as follows:
                    (A) Establishment of delivery system.--
                            (i) Grants to local governments.--The 
                        Federal government is to provide grants on an 
                        annual basis to local governments to provide 
                        job training and job placement assistance under 
                        the program to unemployed individuals for the 
                        purpose of placing such individuals in 
                        unsubsidized employment.
                            (ii) Subgrants to service providers.--(I) A 
                        local government that receives a grant under 
                        clause (i) is to use amounts from such grant to 
                        provide subgrants on a competitive basis to 
                        eligible service providers for the purpose of 
                        providing the assistance described under 
                        subparagraph (B) to participants.
                            (II) For purposes of this paragraph, the 
                        term ``eligible service providers'' includes--
                                    (aa) existing entities providing 
                                services to unemployed individuals 
                                under Federal, State, or local law, 
                                including those entities providing 
                                services under the Job Opportunities 
                                and Basic Skills Training Program under 
                                part F of title IV of the Social 
                                Security Act (42 U.S.C. 681 et seq.) 
                                and the Job Training Partnership Act 
                                (29 U.S.C. 1501 et seq.); and
                                    (bb) appropriate nonprofit and for 
                                profit organizations.
                    (B) Job training assistance.--An eligible service 
                provider that receives a subgrant under subparagraph 
                (A)(ii) is to use amounts from such subgrant to provide 
                the following assistance to participants:
                            (i) Initial assessment.--The service 
                        provider is to conduct an initial assessment of 
                        each participant to determine the level of 
                        education and work experience of each such 
                        participant. After such assessment, the 
                        participant, in consultation with a trained 
                        counselor, is to choose to receive either 
                        intensive placement assistance under clause 
                        (ii) or work/study assistance under clause 
                        (iii).
                            (ii) Intensive placement assistance.--(I) 
                        The service provider is to provide intensive 
                        placement assistance to participants for the 
                        purpose of preparing participants for and 
                        placing participants in unsubsidized 
                        employment. Such assistance is to include--
                                    (aa) training to improve and update 
                                the work skills of participants;
                                    (bb) training to improve and update 
                                the job interviewing skills and resume 
                                preparation skills of participants;
                                    (cc) instruction in personal 
                                financial management;
                                    (dd) where appropriate, classes 
                                designed to assist participants attain 
                                certificates of high school 
                                equivalency; and
                                    (ee) job placement assistance, 
                                including assistance provided by a 
                                counselor who matches participants with 
                                unsubsidized job opportunities based 
                                upon the skills of the participant.
                            (II) The service provider is to provide, to 
                        the extent practicable, 40 hours per week of 
                        assistance to a participant under subclause (I) 
                        and is to provide compensation to such 
                        participant in an amount equal to $4.00 per 
                        hour for each such hour that such participant 
                        participates in intensive placement under 
                        subclause (I).
                            (III) The service provider is to provide 
                        assistance to a participant under subclause (I) 
                        until such participant is placed in 
                        unsubsidized employment, or 180 days after the 
                        date on which the participant begins receiving 
                        assistance under such subclause, whichever 
                        occurs first.
                            (iii) Work/study assistance.--(I) The 
                        service provider is to provide work/study 
                        assistance to participants for the purpose of 
                        preparing such participants for unsubsidized 
                        employment. Such assistance is to include--
                                    (aa) placement in part-time 
                                unsubsidized jobs, or if such jobs are 
                                not available, placement in part-time 
                                subsidized jobs; and
                                    (bb) educational assistance related 
                                to such jobs and to the full-time 
                                unsubsidized jobs that such 
                                participants obtain after receiving 
                                assistance under this subparagraph, 
                                including technical training or 
                                placement in apprenticeship programs.
                            (II) The service provider is to provide, to 
                        the extent practicable, 40 hours per week of 
                        assistance to a participant under subclause (I) 
                        and is to provide compensation to such 
                        participant in an amount equal to $4.00 per 
                        hour for each such hour that such participant 
                        receives such assistance, except that such 
                        compensation shall not include amounts received 
                        from placement in a part-time subsidized job.
                            (III) The service provider is to provide 
                        assistance to a participant under subclause (I) 
                        until such participant is placed in full-time 
                        unsubsidized employment, except that a 
                        participant may not receive such assistance for 
                        more than a total of 4 years.
                            (iv) Support services.--The service 
                        provider is to provide support services to 
                        participants receiving assistance under clauses 
                        (ii) and (iii). Such services are to include--
                                    (I) case management and counseling 
                                services provided by a case manager, 
                                including referrals to appropriate 
                                social service agencies and 
                                identification of barriers to 
                                successful job performance, such as 
                                mental illness, learning disabilities, 
                                and substance abuse; and
                                    (II) legal services to assist 
                                participants in eliminating barriers 
                                to, placement in, and retention of 
                                unsubsidized employment.
                    (C) Placement in public service jobs.--(i) The 
                Federal government is to ensure that each participant 
                who is unable to obtain unsubsidized employment after 
                receiving assistance under subparagraph (B) is placed 
                in a public sector job until such time as the 
                participant obtains such unsubsidized employment.
                    (ii) An individual who receives a public sector job 
                under clause (i) is to be paid $4.00 per hour.
                    (iii) An individual who receives a public sector 
                job under clause (i) is to be provided ongoing support 
                services in accordance with subparagraph (B)(iv) to 
                ensure that such individual obtains unsubsidized 
                employment.
                    (D) Continuing support services during unsubsidized 
                employment.--The Federal government is to ensure that 
                each participant who obtains unsubsidized employment 
                after receiving assistance under subparagraph (B) 
                continues to receive the support services described in 
                subparagraph (B)(iv) for up to 1 year after the date on 
                which the participant receives such employment.
            (6) Targeted job training tax credit.--The requirements of 
        this paragraph are that employers be provided with a 
        nonrefundable credit against Federal income tax for some 
        portion of the expenses paid by the employer in providing job 
        training.
            (7) Enhanced earned income tax credit.--The requirements of 
        this paragraph are that--
                    (A) the earned income credit under section 32 of 
                the Internal Revenue Code of 1986 be restructured such 
                that--
                            (i) for households in which an adult 
                        participates in the National Service Work 
                        Program, the amount of such credit will, when 
                        added to the taxpayer's earned income, equal 75 
                        percent of the poverty level for such 
                        household,
                            (ii) for households in which no adult 
                        participates in the National Service Work 
                        Program and in which there is an adult full-
                        time worker (or the equivalent), the amount of 
                        such credit will be the greater of--
                                    (I) the amount determined under 
                                such section 32 without regard to this 
                                paragraph, or
                                    (II) the amount which, when added 
                                to the taxpayer's earned income, will 
                                equal 100 percent of the poverty level 
                                for such household, and
                            (iii) for households in which no adult 
                        participates in the National Service Work 
                        Program and to which subparagraph (B) does not 
                        apply, the amount of such credit will be the 
                        amount determined under such section 32 without 
                        regard to this paragraph, and
                    (B) the earned income credit under such section 32 
                be paid on a periodic basis during the taxable year 
                other than as provided in section 3507 of such Code.
    (b) Child Care Reform.--
            (1) In general.--The Commission shall design a program that 
        consolidates existing child care programs under Federal law 
        into a single program under which a household is to be eligible 
        for child care services under the program if the total income 
        of the members of the household is less than 200 percent of the 
        poverty line.
            (2) Other requirements.--The single program described in 
        paragraph (1)--
                    (A) shall include a sliding fee scale that provides 
                for cost sharing by households that receive child care 
                services under the program; and
                    (B) shall, to the extent practicable, be 
                coordinated with appropriate State and local programs 
                providing child care services.
            (3) Poverty line defined.--As used in this subsection, the 
        term ``poverty line'' means, with respect to a household the 
        income official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Omnibus Budget Reconciliation Act of 
        1981) applicable to a family of the same size as the household 
        involved.

SEC. 4. MEMBERSHIP.

    (a) Number; Appointment.--The Commission shall be composed of 23 
members, as follows:
            (1) The Secretary of Labor.
            (2) The Secretary of Health and Human Services.
            (3) The Secretary of Housing and Urban Development.
            (4) The Secretary of Education.
            (5) The Secretary of Agriculture.
            (6) The Secretary of the Treasury.
            (7) The Secretary of Veterans Affairs.
            (8) 4 Members of the House of Representatives, 2 appointed 
        by the majority leader of the House of Representatives, and 2 
        appointed by the minority leader of the House of 
        Representatives.
            (9) 4 Members of the Senate, 2 appointed by the majority 
        leader of the Senate, and 2 appointed by the minority leader of 
        the Senate.
            (10) 6 officials of State and local governments with 
        expertise in welfare, education, or training issues, appointed 
        by the President.
            (11) 2 individuals with expertise in job placement for 
        persons receiving cash assistance from the Federal Government 
        or a State government, appointed by the President.
    (b) Term of Office.--Each member of the Commission shall be 
appointed for the life of the Commission.
    (c) Appointment Deadline.--All appointments to the Commission shall 
be made not more than 60 days after the date of the enactment of this 
Act.
    (d) Vacancies.--A vacancy on the Commission shall be filled in the 
manner in which the original appointment was made.
    (e) Chairperson.--The Secretary of Labor shall serve as the 
chairperson of the Commission (in this Act referred to as the 
``Chairperson'').
    (f) Compensation.--
            (1) Generally none.--Except as provided in paragraph (2), 
        the members of the Commission may not receive pay, allowances, 
        or benefits by reason of their service on the Commission.
            (2) Travel expenses allowed.--Each Commission member shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.

SEC. 5. STAFF; EXPERTS AND CONSULTANTS.

    (a) Staff of Federal Agencies.--Upon request of the Chairperson, 
the head of any Federal agency may detail, on a reimbursable basis, any 
of the personnel of that agency to the Commission to assist the 
Commission in carrying out its duties under this Act.
    (b) Experts and Consultants.--The Commission may procure temporary 
or intermittent services under section 3109(b) of title 5, United 
States Code.

SEC. 6. PROCEDURE OF COMMISSION.

    (a) Meetings.--The Commission shall meet at the call of the 
Chairperson or a majority of the members of the Commission.
    (b) Quorum.--A majority of the members of the Commission shall 
constitute a quorum but a lesser number may hold hearings.
    (c) Action.--The Commission may act only by a vote of a majority of 
the members of the Commission.

SEC. 7. POWERS OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may hold the hearings, 
sit and act at the times and places, take the testimony, and receive 
the evidence the Commission considers appropriate to carry out this 
Act.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action that 
the Commission is authorized to take by this section.
    (c) Obtaining Official Data.--On request of the Chairperson of the 
Commission, the head of a Federal department or agency shall furnish to 
the Commission such information as the Chairperson may request to 
enable the Commission to carry out this Act, unless the release of the 
information is prohibited by law.
    (d) Gifts.--The Commission may accept, use, and dispose of gifts of 
services or property, both real and personal, for the purpose of aiding 
the work of the Commission, except that gifts of money and proceeds 
from sales of property received as gifts shall be deposited in the 
Treasury of the United States and credited as miscellaneous receipts.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other Federal agencies.
    (f) Support Services.--On request of the Commission, the head of a 
Federal department or agency may make available to the Commission any 
facility or service of the agency to assist the Commission in carrying 
out the duties of the Commission under this Act.

SEC. 8. REPORT.

    Within 6 months after the date a majority of the members of the 
Commission have been appointed, the Commission shall submit to the 
Congress a report that describes in detail the programs, modifications, 
and tax credits designed under section 3(a), and contains 
recommendations for legislation to enact such programs, modifications, 
and tax credits. Such legislation will demonstrate that the costs of 
any new programs recommended herein are offset by the costs of programs 
to be eliminated by the terms of the legislation.

SEC. 9. TERMINATION OF COMMISSION.

    The Commission shall terminate upon the adjournment sine die of the 
Congress during which the report required by section 8 is submitted.

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