[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 741 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 741

    To amend title IV of the Social Security Act to provide welfare 
families with the education, training, job search, and work experience 
 needed to prepare them to leave welfare within 2 years, to authorize 
 States to conduct demonstration projects to test the effectiveness of 
   policies designed to help people leave welfare and increase their 
              financial security, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1993

  Mr. Shaw (for himself, Mrs. Johnson of Connecticut, Mr. Grandy, Mr. 
Santorum, Mr. Michel, and Mr. Gingrich) introduced the following bill; 
    which was referred jointly to the Committees on Ways and Means, 
Agriculture, Education and Labor, Energy and Commerce, Banking, Finance 
                  and Urban Affairs, and the Judiciary

_______________________________________________________________________

                                 A BILL


 
    To amend title IV of the Social Security Act to provide welfare 
families with the education, training, job search, and work experience 
 needed to prepare them to leave welfare within 2 years, to authorize 
 States to conduct demonstration projects to test the effectiveness of 
   policies designed to help people leave welfare and increase their 
              financial security, and for other purposes.

    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 ``Responsibility and Empowerment 
Support Program Providing Employment, Child Care, and Training Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
               TITLE I--AFDC TRANSITION AND WORK PROGRAM

Sec. 101. AFDC transition and work program.
Sec. 102. Community work experience program amendments.
Sec. 103. Work supplementation program amendments.
Sec. 104. Effective date; regulations.
               TITLE II--EXPANDED STATE WAIVER AUTHORITY

Sec. 201. Authority to grant waivers to provisions of social welfare 
                            statutes to better enable providers of 
                            social services to promote self-
                            sufficiency.
                  TITLE III--MISCELLANEOUS AMENDMENTS

Sec. 301. AFDC recipients required to undergo necessary substance abuse 
                            treatment as a condition of receiving AFDC.
Sec. 302. Authority of State to modify certain AFDC income disregard 
                            rules.

               TITLE I--AFDC TRANSITION AND WORK PROGRAM

SEC. 101. AFDC TRANSITION AND WORK PROGRAM.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)) is amended by inserting after paragraph (28) the 
following:
            ``(29) provide that--
                    ``(A) the State must have in effect a program 
                that--
                            ``(i) provides qualified individuals with 
                        the education, training, and work experience 
                        needed to prepare them for a life without aid 
                        under the plan; and
                            ``(ii) consists of--
                                    ``(I) a transition component, which 
                                must include the job search program 
                                established by the State under section 
                                482(g), and which may include any other 
                                service, activity, or program of the 
                                State that is referred to in section 
                                482(d)(1); and
                                    ``(II) a work component, which may 
                                include a work supplementation program 
                                operated by the State under section 
                                482(e), a community work experience 
                                program established by the State under 
                                section 482(f), or any other work 
                                program of the State that is approved 
                                by the Secretary;
                    ``(B)(i) as used in this paragraph, the term 
                `qualified individual' means--
                            ``(I) on and after October 1, 1994, all 
                        individuals eligible for aid under the plan who 
                        applied for such aid on or after such date;
                            ``(II) on and after October 1, 1998, all 
                        individuals eligible for aid under the plan; 
                        and
                    ``(ii) notwithstanding clause (i), the term 
                `qualified individual' does not include any 
                individual--
                            ``(I) who is incapacitated;
                            ``(II) at the option of the State, who is 
                        making progress in a substance abuse treatment 
                        program, unless this subclause has been applied 
                        to the individual for 12 months;
                            ``(III) during such 6-month period as the 
                        individual may select, in which the individual 
                        gives birth to the first child born alive to 
                        the individual after becoming eligible for aid 
                        under this part;
                            ``(IV) during such 4-month period as the 
                        individual may select, in which the individual 
                        gives birth to the second or subsequent child 
                        born alive to the individual after becoming 
                        eligible for aid under this part;
                            ``(V) who is the parent of a child who was 
                        returned to the home of the individual during 
                        the preceding 2 months after having been 
                        removed from the home; or
                            ``(VI) who is providing full-time care for 
                        a disabled dependent of the individual;
                    ``(C)(i) each qualified individual must participate 
                in the transition component, except as otherwise 
                provided in this subparagraph;
                    ``(ii) a qualified individual may not be required 
                (but may be allowed) to participate in the transition 
                component if, on the basis of demographic criteria, the 
                State finds that it is unlikely that the individual 
                will be a recipient of aid under the plan during a 
                significant length of time;
                    ``(iii) a qualified individual may not participate 
                in the transition component if the individual has 
                elected to participate in the work component; and
                    ``(iv) a qualified individual may not participate 
                in the transition component after the first 24 months 
                for which the individual is a qualified individual;
                    ``(D)(i) each qualified individual participating in 
                the transition component must participate in activities 
                under such component for an average of not fewer than 
                10 hours per week during the first 24 months of such 
                participation;
                    ``(ii) the State, in consultation with the 
                Secretary, must establish guidelines by which 
                determinations under clause (i) will be made, and 
                which, in the case of educational activities under the 
                transition component, must provide that an individual 
                who is enrolled full-time in a program of study at an 
                educational institution (including a vocational or 
                technical training school), as determined by the 
                institution, and is making satisfactory progress in the 
                program of study, as determined by the institution, is 
                to be regarded as participating in the transition 
                component, in accordance with such rules as the 
                Secretary may prescribe (including rules governing how 
                time spent in such a program of study is to be 
                converted into hours of participation in the transition 
                component);
                    ``(E)(i) the State must require each qualified 
                individual (or, in the case of a family which has 
                received aid under the plan by reason of section 407, 
                at least 1 parent (or, at the option of the State, both 
                parents) in the family) who is not participating in the 
                transition component to participate in the work 
                component; and
                    ``(ii) any qualified individual participating in 
                the work component, may, with the approval of the 
                State, discontinue participation in the work component 
                and begin or resume participation in the transition 
                component, subject to subparagraph (C)(iv);
                    ``(iii) the State may, at its option, exempt a 
                qualified individual, during 12 of the first 24 months 
                for which an individual is a qualified individual, from 
                the requirement to participate in the transition 
                component or the work component if the individual is 
                described in paragraph (35)(A) and is in compliance 
                with paragraph (35)(A);
                    ``(F) each qualified individual must cooperate with 
                the State in developing a plan which--
                            ``(i) describes the respective 
                        responsibilities of the State and of the 
                        individual under the program with the goal of 
                        preparing the individual for work; and
                            ``(ii) includes a written statement 
                        informing the individual that, upon completion 
                        of the transition component, aid under the 
                        State plan under this part will be discontinued 
                        unless the individual finds gainful employment 
                        or is participating in the work component;
                    ``(G) at the end of the first 12 months for which 
                an individual is a qualified individual (or, at the 
                option of the State, more frequently), the State must 
                determine whether the individual is making clear and 
                substantial progress toward preparing for work (as 
                defined by the State in consultation with the 
                Secretary);
                    ``(H) if the State determines that a qualified 
                individual has failed to meet any requirement imposed 
                under this paragraph--
                            ``(i) in the case of the 1st such failure, 
                        subclauses (I) and (II) of section 
                        402(a)(19)(G)(i) shall apply until the failure 
                        to comply ceases;
                            ``(ii) in the case of the 2nd such failure, 
                        subclauses (I) and (II) of section 
                        402(a)(19)(G)(i) shall apply until the failure 
                        to comply ceases or 3 months, whichever is 
                        longer; and
                            ``(iii) in the case of the 3rd such 
                        failure, the family of the individual shall not 
                        be eligible for aid under the State plan under 
                        this part, notwithstanding any other provision 
                        of this part;
                    ``(I) at the option of the State, the State may 
                impose a rule under which the family of an individual 
                shall not be eligible for aid under the State plan 
                under this part, notwithstanding any other provision of 
                this part, after the individual has been required to 
                participate in the work component for a period 
                (determined by the State) of not less than 3 years; and
                    ``(J) if a family becomes ineligible for aid under 
                the State plan under this part by reason of 
                subparagraph (H)(iii) or (I), the family shall, for 
                purposes of medical assistance under the State plan 
                under title XIX, be deemed to be a recipient of aid 
                under the State plan under this part for so long as the 
                family is otherwise eligible for aid under the State 
                plan under this part.''.
    (b) Payments to States.--Section 403 of such Act (42 U.S.C. 603) is 
amended by adding at the end the following:
    ``(o)(1) Each State which has been paid under subsection (l) for 
any fiscal year an amount equal to the limitation determined under 
subsection (k)(2) for the fiscal year, and which operates a program 
under section 402(a)(29), shall be entitled to payments under paragraph 
(4) of this subsection for the fiscal year in an amount equal to the 
lesser of--
            ``(A) the sum of the applicable percentages (specified in 
        such paragraph (4)) of its expenditures to carry out the 
        program (subject to limitations prescribed by or pursuant to 
        such section or such paragraph (4) on expenditures that may be 
        included for purposes of determining payment under such 
        paragraph (4)); or
            ``(B) the limitation determined under paragraph (2) of this 
        subsection with respect to the State for the fiscal year.
    ``(2) The limitation determined under this paragraph with respect 
to a State for any fiscal year is the amount that bears the same ratio 
to the amount specified in paragraph (3) for the fiscal year as the 
average monthly number of adult recipients (as defined in subsection 
(k)(4)) in the State in the preceding fiscal year bears to the average 
monthly number of such recipients in all the States for such preceding 
year.
    ``(3) The amount specified in this paragraph is--
            ``(A) $50,000,000 for fiscal year 1994;
            ``(B) $200,000,000 for fiscal year 1995;
            ``(C) $600,000,000 for fiscal year 1996;
            ``(D) $1,000,000,000 for fiscal year 1997; and
            ``(E) $1,500,000,000 for fiscal year 1998.
    ``(4) Each State which has been paid under subsection (l) for a 
fiscal year an amount equal to the limitation determined under 
subsection (k)(2) for the fiscal year, and which operates a program 
under section 402(a)(29) during the fiscal year shall, in addition to 
any payment under subsection (a) or (l), be entitled to payment from 
the Secretary of an amount equal to--
            ``(A) 50 percent of the expenditures of the State for 
        administrative costs incurred in operating the program during 
        the fiscal year (other than personnel costs for staff employed 
        in the operation of the program); and
            ``(B) the greater of 70 percent or the Federal medical 
        assistance percentage (as defined in section 1118 in the case 
        of a State to which section 1108 applies, or as defined in 
        section 1905(b) in the case of any other State) of the other 
        expenditures of the State incurred in operating the program 
        during the fiscal year.
    ``(5)(A) Notwithstanding paragraph (4), the Secretary shall pay to 
a State an amount equal to 50 percent of the expenditures of the State 
incurred in operating the program under section 402(a)(29) during a 
fiscal year if the State's participation rate (determined under 
subparagraph (B)) for the immediately preceding fiscal year is less 
than--
            ``(i) 15 percent if the preceding fiscal year is 1994;
            ``(ii) 20 percent if such year is 1995;
            ``(iii) 30 percent if such year is 1996;
            ``(iv) 40 percent if such year is 1997;
            ``(v) 50 percent if such year is 1998;
            ``(vi) 60 percent if such year is 1999; and
            ``(vii) 70 percent if such year is 2000.
    ``(B)(i) The State's participation rate for a fiscal year shall be 
the number, expressed as a percentage, equal to--
            ``(I) the number of individuals who participated in the 
        State's program under section 402(a)(29) in the year; divided 
        by
            ``(II) the number of individuals required to participate in 
        the program in the year (including individuals with respect to 
        whom the State has exercised its option to require their 
        participation).
    ``(ii) For purposes of this subparagraph, an individual shall not 
be considered to have satisfactorily participated in the program under 
section 402(a)(29) solely by reason of the individual being registered 
to participate in the program.
    ``(C) For purposes of this paragraph, an individual shall be 
considered to have participated in the program under section 402(a)(29) 
if the individual has participated in accordance with such 
requirements, consistent with regulations of the Secretary, as the 
State shall establish.
    ``(D) If the Secretary determines that a State has failed to 
achieve the participation rate for any fiscal year specified in 
subparagraph (A), the Secretary may waive, in whole or in part, the 
reduction in the payment rate otherwise required by subparagraph (A) if 
the Secretary finds that the State--
            ``(i) is in conformity with section 402(a)(29);
            ``(ii) has made a good faith effort to achieve the 
        participation rate; and
            ``(iii) has submitted a proposal which is likely to achieve 
        the applicable participation rates for the current fiscal year 
        and any succeeding fiscal year so specified.''.
    (c) Conforming Amendments.--Section 403(l)(3) of such Act (42 
U.S.C. 603(l)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' at the end of clause (v);
                    (B) by striking the period in clause (vi) and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(vii) 30 percent if such year is 1996;
            ``(viii) 40 percent if such year is 1997;
            ``(ix) 50 percent if such year is 1998;
            ``(x) 60 percent if such year is 1999; and
            ``(xi) 70 percent if such year is 2000.''; and
            (2) in subparagraph (B)(ii)(IV), by striking ``and 1995'' 
        and inserting ``through 2000''.

SEC. 102. COMMUNITY WORK EXPERIENCE PROGRAM AMENDMENTS.

    Section 482(f)(1)(B) of the Social Security Act (42 U.S.C. 
682(f)(1)(B)) is amended--
            (1) in clause (i)--
                    (A) by inserting ``(I)'' after ``(B)(i)''; and
                    (B) by striking ``(as determined by the State)'' 
                and inserting ``in the transition component of the 
                program under section 402(a)(29) who is required to 
                participate in the program established under this 
                subsection''; and
                    (C) by adding at the end the following:
    ``(II) Each participant in the work component of the program under 
section 402(a)(29) who is required to participate in the program 
established under this subsection may not be required to work in any 
month for a number of hours that exceeds 35 (or 30, if the State 
requires the participant to engage in a job search program established 
by the State under subsection (g)).''; and
            (2) in clause (ii), by inserting ``who is a participant in 
        the transition component of the program under section 
        402(a)(29)'' after ``an individual''.

SEC. 103. WORK SUPPLEMENTATION PROGRAM AMENDMENTS.

    (a) Authority of States To Assign Participants to Unfilled Jobs.--
Section 484(c) of the Social Security Act (42 U.S.C. 684(c)) is amended 
by striking the last sentence.
    (b) Authority of States To Use Sums That Would Otherwise Be 
Expended for Food Stamp Benefits To Provide Subsidized Jobs for 
Participants.--
            (1) In general.--Section 482(e)(1) of such Act (42 U.S.C. 
        682(e)(1)) is amended--
                    (A) by inserting ``, and the sums that would 
                otherwise be used to provide participants in the 
                program under this subsection with food stamp benefits 
                under the Food Stamp Act of 1977,'' before ``and use''; 
                and
                    (B) by inserting ``and the food stamp benefits that 
                would otherwise be so provided to them'' before the 
                period.
            (2) Subsidies provided to employers and included in wages 
        of participants; minimum employer contribution.--Section 
        482(e)(3) of such Act (42 U.S.C. 682(e)(3)) is amended by 
        adding at the end the following:
    ``(E) Each State operating a work supplementation program under 
this subsection shall enter into an agreement with the employer who is 
to provide an eligible individual with a supplemented job under the 
program, under which--
            ``(i) the State is required to pay the employer an amount 
        specified in the agreement as the subsidized portion of the 
        wages of the eligible individual; and
            ``(ii) the employer is required to pay the eligible 
        individual wages which, when added to an amount that will be 
        payable as aid to families with dependent children to the 
        individual if the individual is paid such wages, are not less 
        than 125 percent of the sum of--
                    ``(I) the amount that would otherwise be payable as 
                aid to families with dependent children to the eligible 
                individual if the State did not have a work 
                supplementation program under this subsection in 
                effect; and
                    ``(II) if the State elects to subsidize jobs for 
                participants in the program through the reservation of 
                sums that would otherwise be used to provide such 
                participants with food stamp benefits under the Food 
                Stamp Act of 1977, the amount paid to the State by the 
                Secretary of Agriculture that represents the cash value 
                of the food stamp benefits for which the household of 
                the eligible individual is a member is eligible under 
                such Act.
    ``(F) For purposes of computing the amount of the Federal payment 
to a State under paragraph (1) or (2) of section 403(a), for 
expenditures incurred in making payments to individuals and employers 
under the State's work supplementation program under this section, the 
State may claim as such expenditures the maximum amount payable to the 
State under paragraph (4) of this subsection.
    ``(G) Notwithstanding paragraph (1), a State may use for any 
purpose the sums reserved under paragraph (1) which are not used to 
subsidize jobs under this subsection attributable to savings achieved 
by operation of subparagraph (E).''.
            (3) Conforming amendment.--Section 482(e)(3)(A) of such Act 
        (42 U.S.C. 682(e)(3)(A)) is amended by striking the 2nd 
        sentence.
            (4) Employment cashout of food stamp benefits.--Section 16 
        of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by 
        adding at the end the following:
    ``(l) If a State agency of a State that makes the election 
described in section 482(e)(3)(E)(ii)(II) of the Social Security Act 
informs the Secretary that an individual who is participating in the 
work supplementation program carried out under section 482(e) of such 
Act is a member of a household that participates in the food stamp 
program and all the members of the household receive benefits under a 
State plan approved under part A of title IV of such Act--
            ``(1) the Secretary shall pay to the State an amount equal 
        to the value of the food stamp benefits the household is 
        eligible to receive under this Act;
            ``(2) the State shall expend the amount in accordance with 
        section 482(e)(3) of the Social Security Act to make a payment 
        to the individual in lieu of food stamp benefits the household 
        would receive but for the operation of this subsection;
            ``(3) for purposes of--
                    ``(A) sections 5 and 8(a) of this Act, the amount 
                shall be excluded from household income and resources; 
                and
                    ``(B) section 8(b) of this Act, the amount shall be 
                considered as the value of an allotment provided to the 
                household; and
            ``(4) the household shall not receive food stamp benefits 
        from the State agency for the period during which the member 
        continues to participate in the work supplementation 
        program.''.

SEC. 104. EFFECTIVE DATE; REGULATIONS.

    (a) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this Act shall take effect on October 1, 
        1994.
            (2) State option for early applicability.--If a State 
        formally notifies the Secretary of Health and Human Services of 
        its desire to operate a program pursuant to section 402(a)(29) 
        of the Social Security Act, during any period which begins 
        after the date of the enactment of this Act and ends on 
        September 30, 1994, with respect to 1 or more groups of 
        individuals selected by the State who are eligible for aid 
        under the State plan approved under section 402 of the Social 
        Security Act, and makes such changes in the plan as are 
        required in order to so operate the program (except that, in 
        lieu of the definition contained in section 402(a)(29)(B)(i), 
        there is substituted a definition which describes such group or 
        groups) then--
                    (A) such section 402(a)(29) (with such exceptions) 
                shall apply to the State during the period; and
                    (B) section 403(o)(4)(B) of the Social Security Act 
                shall be applied to the State for the first 12 months 
                of such period by substituting ``85 percent'' for ``the 
                greater of 70 percent or the Federal medical assistance 
                percentage (as defined in section 1118 in the case of a 
                State to which section 1108 applies, or as defined in 
                section 1905(b) in the case of any other State)''.
    (b) Regulations.--Not later than 1 year after the effective date of 
this Act, the Secretary of Health and Human Services shall prescribe 
such regulations as may be necessary to enable States to establish and 
operate programs pursuant to section 402(a)(29) of the Social Security 
Act.

               TITLE II--EXPANDED STATE WAIVER AUTHORITY

SEC. 201. AUTHORITY TO GRANT WAIVERS TO PROVISIONS OF SOCIAL WELFARE 
              STATUTES TO BETTER ENABLE PROVIDERS OF SOCIAL SERVICES TO 
              PROMOTE SELF-SUFFICIENCY.

    (a) Interagency Waiver Request Board.--
            (1) Establishment and Purpose.--In order to provide a focal 
        point within the Federal Government for the development and 
        coordination of waiver requests designed to improve 
        opportunities for low-income individuals and families, there is 
        established an Interagency Waiver Request Board (in this 
        subsection referred to as the ``Board'') which shall provide 
        advice to the Chairman of the Board (in this section referred 
        to as the ``Chairman'') in carrying out this section.
            (2) Membership.--
                    (A) Permanent members.--The Board shall consist of 
                8 permanent members, as follows:
                            (i) A Chairman appointed by and serving at 
                        the pleasure of the President.
                            (ii) The Secretary of Agriculture (or the 
                        designee of the Secretary).
                            (iii) The Secretary of Health and Human 
                        Services (or the designee of the Secretary).
                            (iv) The Secretary of Housing and Urban 
                        Development (or the designee of the Secretary).
                            (v) The Secretary of Labor (or the designee 
                        of the Secretary).
                            (vi) The Secretary of the Interior (or the 
                        designee of the Secretary).
                            (vii) The Attorney General of the United 
                        States (or the designee of the Attorney 
                        General).
                            (viii) The Director of the Office of 
                        Management and Budget (or the designee of the 
                        Director).
                    (B) Limited purpose members.--In addition, for the 
                purpose of carrying out the duty of the Board to 
                provide advice to the Chairman with respect to a 
                particular application for waivers under this section, 
                or with respect to the implementation of the reforms 
                proposed in the application, the Board shall include 
                the head of each department or agency (or the designee 
                of the head) having responsibility for the 
                administration of a program which the application 
                proposes to reform.
            (3) Vacancy.--A vacancy in the position of Chairman shall 
        be filled in the manner in which the original appointment was 
        made.
            (4) Compensation of chairman.--
                    (A) Basic pay.--
                            (i) In general.--The Chairman shall be paid 
                        at a rate equal to the rate of basic pay 
                        payable for level II of the Executive Schedule.
                            (ii) Conforming amendment.--Section 5313 of 
                        title 5, United States Code, is amended by 
                        adding at the end the following new item:
            ``Chairman, Interagency Waiver Request Board.''.
                    (B) Travel expenses.--The Chairman shall receive 
                travel expenses, including per diem in lieu of 
                subsistence, in accordance with sections 5702 and 5703 
                of title 5, United States Code.
            (5) Appointment and compensation of personnel.--The 
        Chairman may appoint and fix the compensation of personnel as 
        may be necessary to assist the Board in carrying out the 
        responsibilities of the Board, in accordance with chapter 51 
        and subchapters III and VIII of chapter 53 of title 5, United 
        States Code.
            (6) Prohibition against additional compensation of federal 
        officers or employees.--Members of the Board who are full-time 
        officers or employees of the United States (other than the 
        Chairman) may not be provided additional pay, allowances, or 
        benefits by reason of their service on the Board.
            (7) Meetings.--The Board shall meet not less than twice 
        annually at the call of the Chairman.
            (8) Powers.--
                    (A) Assistance of other federal entities.--The head 
                of each Federal department or agency who is a permanent 
                or other member of the Board shall make available to 
                the Board such assistance as the Board may require to 
                carry out the activities of the Board.
                    (B) Use of united states mails.--The Board may use 
                the United States mails in the same manner and under 
                the same conditions as other departments and agencies 
                of the United States.
                    (C) Acceptance of gifts, bequests, and devises.--
                The Board may accept, use, and dispose of gifts, 
                bequests, or devises of services or property, both real 
                and personal, for the purpose of aiding or facilitating 
                the work of the Board. Gifts, bequests, or devises of 
                money and proceeds from sales of other property 
                received as gifts, bequests, or devises shall be 
                deposited in the Treasury and shall be available for 
                disbursement upon order of the Chairman.
            (9) Annual reports.--The Board shall transmit annually to 
        the Congress a report containing a detailed statement of the 
        activities of the Board during the year covered by the report.
    (b) Application for Waivers.--Any entity that is receiving or is 
eligible to receive Federal funds or other Federal assistance under a 
program referred to in subsection (h) may submit to the Chairman an 
application which contains--
            (1) a proposal to reform the conduct of the program (and, 
        if appropriate, any other such program) by the entity;
            (2) a written statement, from each other non-Federal 
        officer or entity to which the Federal funds or assistance 
        would otherwise be provided (either directly or through 
        intervening levels of grantees or other recipients) under the 
        program or programs, that such other officer or entity approves 
        of the proposal and will cooperate in the implementation of the 
        proposal by the entity;
            (3) a list of the provisions of law or regulation which 
        prevent the entity from implementing the proposal; and
            (4) a request that the Chairman, and the officer or 
        officers of the Federal Government responsible for the 
        administration of the program or programs proposed to be 
        reformed, waive the application of such provisions of law or 
        regulation, to the extent necessary to enable the entity to 
        implement the proposal.
    (c) Administrative Provisions.--
            (1) Evaluation and recommendations.--The Chairman shall--
                    (A) evaluate the proposal contained in any 
                application submitted in accordance with subsection 
                (b), and make recommendations with respect to the 
                proposal; and
                    (B) transmit the application and recommendations to 
                the officer or officers referred to in subsection 
                (b)(4).
            (2) Interagency coordination.--The Chairman shall provide 
        for the coordination of all actions under this section with 
        respect to an application submitted in accordance with 
        subsection (b) that proposes the coordinated implementation of 
        reforms to 2 or more programs referred to in subsection (h).
    (d) Agency Review.--Within 45 days after an officer of the Federal 
Government receives an application transmitted pursuant to subsection 
(c)(1)(B), the officer shall review the application and notify the 
Chairman of the opinion of the officer as to--
            (1) whether the program, as proposed to be reformed, 
        would--
                    (A)(i) help certain individuals for whom long-term 
                assistance is necessary to meet basic human welfare 
                needs and improve their living conditions in the most 
                efficient and effective way possible; and
                    (ii) help able-bodied individuals and their 
                families, on a temporary basis, meet basic human 
                welfare needs and improve their living conditions in 
                the most efficient and effective way possible;
                    (B) help individuals and families acquire skills 
                necessary to--
                            (i) improve their living conditions 
                        substantially;
                            (ii) maintain and strengthen family 
                        relationships; and
                            (iii) attain or retain the capability for 
                        maximum self-support and independence; or
                    (C) promote individual initiative and personal 
                behavior consistent with progress toward self-
                sufficiency and a strong family life;
            (2) whether the program, as proposed to be reformed, would 
        reasonably meet the needs of the intended beneficiaries of the 
        program; and
            (3) whether granting the requested waiver would 
        unnecessarily or unreasonably affect individuals or families 
        adversely.
    (e) Final Action by Chairman.--
            (1) Waiver authority.--The Chairman may approve an 
        application submitted in accordance with subsection (b) and 
        grant the waiver or waivers proposed in the application if the 
        Chairman has determined that--
                    (A) the program or programs proposed to be reformed 
                in the application, as so reformed, would meet the 
                requirements of any subparagraph of subsection (d)(1) 
                and reasonably meet the needs of the intended 
                beneficiaries of the program or programs; and
                    (B) granting the requested waiver would not 
                unnecessarily or unreasonably affect individuals or 
                families adversely.
            (2) Conditional approval.--The Chairman may condition 
        approval of the application on the acceptance by the applicant 
        of specified modifications to the application.
            (3) Deadline.--Within 120 days after the Chairman receives 
        an application submitted in accordance with subsection (b), the 
        Chairman shall approve, conditionally approve, or disapprove 
        the application, and notify the applicant of such action.
            (4) Limitation.--This subsection shall not be construed to 
        authorize the Chairman to waive the application to any entity 
        referred to in subsection (b) of a provision of law or 
        regulation applicable to a program if the waiver would result 
        in net payments by the Federal Government to the entity under 
        the program for a fiscal year in excess of the net payments 
        which would otherwise be so made to the entity.
    (f) Revocation of Waiver.--If, after granting a waiver under 
subsection (e)(1), the Chairman finds that the applicant has failed to 
carry out the program in accordance with any applicable provision of 
law or regulation, or has failed to implement the reforms proposed in 
the application for the waiver, the Chairman may revoke the waiver in 
whole or in part, effective at such time as the Chairman deems 
appropriate.
    (g) Special Rules.--For purposes of this section:
            (1) Indian tribes deemed to be states.--In the case of a 
        program referred to in subsection (h) under which assistance is 
        provided with respect to an Indian Tribe, the Indian tribal 
        organization is deemed to be the State.
            (2) Board of directors of the legal services corporation 
        deemed to be a federal officer.--The Board of Directors of the 
        Legal Services Corporation is deemed to be the officer of the 
        Federal Government responsible for the administration of the 
        program referred to in subsection (h)(67).
    (h) Programs Subject to Waiver Authority.--The programs referred to 
in this subsection are the following:
            (1) The program of medical assistance under title XIX of 
        the Social Security Act.
            (2) The Maternal and Child Health Services Block Grant 
        Program under title V of the Social Security Act.
            (3) The program established in section 330 of the Public 
        Health Service Act (relating to community health centers).
            (4) The program established in section 1001 of the Public 
        Health Service Act (relating to family planning methods and 
        services).
            (5) The program of cash and medical assistance to refugees 
        and Cuban/Haitian entrants under section 412(e) of the 
        Immigration and Nationality Act (8 U.S.C. 1522(e)) and through 
        the exercise of authority under section 501(a) of the Refugee 
        Education Assistance Act of 1980 (Public Law 96-422).
            (6) The program established in section 329 of the Public 
        Health Service Act (relating to migrant health centers).
            (7) The program of aid and services to needy families with 
        children under part A of title IV of the Social Security Act.
            (8) The child welfare services program under part B of 
        title IV of the Social Security Act.
            (9) The supplemental security income program under title 
        XVI of the Social Security Act.
            (10) The program of foster care and adoption assistance 
        under part E of title IV of the Social Security Act.
            (11) The food stamp program, as defined in section 3(h) of 
        the Food Stamp Act of 1977 (7 U.S.C. 2012(h)).
            (12) The school lunch program carried out under the 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
            (13) The special supplemental food program for women, 
        infants, and children carried out under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786).
            (14) The nutrition programs carried out under part C of 
        title III of the Older Americans Act of 1965 (42 U.S.C. 3030e 
        et seq.).
            (15) The school breakfast program carried out under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
            (16) The child and adult care food program carried out 
        under section 17 of the National School Lunch Act (42 U.S.C. 
        1766).
            (17) The Emergency Food Assistance Act of 1983 (7 U.S.C. 
        612c note).
            (18) The summer food service program for children carried 
        out under section 13 of the National School Lunch Act (42 
        U.S.C. 1761).
            (19) The commodity supplemental food program authorized by 
        section 4(a) of the Agriculture and Consumer Protection Act of 
        1973 (7 U.S.C. 612c note).
            (20) The special milk program carried out under section 3 
        of the Child Nutrition Act of 1966 (42 U.S.C. 1772).
            (21) The program of rental assistance on behalf of low-
        income families provided under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f).
            (22) The program of assistance to public housing under 
        title I of the United States Housing Act of 1937 (42 U.S.C. 
        1437 et seq.).
            (23) The loan program under section 502 of the Housing Act 
        of 1949 (42 U.S.C. 1472).
            (24) The program of interest reduction payments pursuant to 
        contracts entered into by the Secretary of Housing and Urban 
        Development under section 236 of the National Housing Act (12 
        U.S.C. 1715z-1).
            (25) The program of loans for rental and cooperative 
        housing under section 515 of the Housing Act of 1949 (42 U.S.C. 
        1485).
            (26) The program of rental assistance payments pursuant to 
        contracts entered into under section 521(a)(2)(A) of the 
        Housing Act of 1949 (42 U.S.C. 1490a(a)(2)(A)).
            (27) The program of assistance payments on behalf of 
        homeowners under section 235 of the National Housing Act (12 
        U.S.C. 1715z).
            (28) The program of rent supplement payments on behalf of 
        qualified tenants pursuant to contracts entered into under 
        section 101 of the Housing and Urban Development Act of 1965 
        (12 U.S.C. 1701s).
            (29) The loan and grant programs under section 504 of the 
        Housing Act of 1949 (42 U.S.C. 1474) for repairs and 
        improvements to rural dwellings.
            (30) The loan and assistance programs under sections 514 
        and 516 of the Housing Act of 1949 (42 U.S.C. 1484, 1486) for 
        housing for farm labor.
            (31) The program of grants for preservation and 
        rehabilitation of housing under section 533 of the Housing Act 
        of 1949 (42 U.S.C. 1490m).
            (32) The program of grants and loans for mutual and self-
        help housing and technical assistance under section 523 of the 
        Housing Act of 1949 (42 U.S.C. 1490c).
            (33) The program of site loans under section 524 of the 
        Housing Act of 1949 (42 U.S.C. 1490d).
            (34) The program under part B of title IV of the Higher 
        Education Act of 1965.
            (35) The program under subpart 1 of part A of title IV of 
        the Higher Education Act of 1965.
            (36) The programs under the Head Start Act (42 U.S.C. 9831 
        et seq.).
            (37) The program under part C of title IV of the Higher 
        Education Act of 1965.
            (38) The program under subpart 3 of part A of title IV of 
        the Higher Education Act of 1965.
            (39) The programs under the Carl D. Perkins Vocational and 
        Applied Technology Education Act.
            (40) The programs for migrant children under sections 1201 
        through 1203 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 2781-83).
            (41) The program under chapter 1 of subpart 2 of part A of 
        title IV of the Higher Education Act of 1965.
            (42) The program under part E of title IV of the Higher 
        Education Act of 1965.
            (43) The program under subpart 4 of part A of title IV of 
        the Higher Education Act of 1965.
            (44) The program under title IX of the Higher Education Act 
        of 1965.
            (45) The program under subpart 5 of part A of title IV of 
        the Higher Education Act of 1965.
            (46) The program under chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965.
            (47) The programs under the Follow Through Act (42 U.S.C. 
        9861-9877).
            (48) The programs established in sections 338A and 338B of 
        the Public Health Service Act and the programs established in 
        part A of title VII of such Act (relating to loans and 
        scholarships for education in the health professions).
            (49) The program established in section 317(j)(1) of the 
        Public Health Service Act (relating to grants for immunizations 
        against vaccine-preventable diseases).
            (50) The program established in section 317A of the Public 
        Health Service Act (relating to grants for screening, 
        referrals, and education regarding leading poisoning in infants 
        and children).
            (51) The program established in part A of title XIX of the 
        Public Health Service Act (relating to block grants for 
        preventive health and health services).
            (52) The programs established in subparts I and II of part 
        B of title XIX of the Public Health Service Act.
            (53) The programs under part C of title IV of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 3081-
        3112).
            (54) The programs carried out under the Child Development 
        Associate Scholarship Assistance Act of 1985 (42 U.S.C. 10901 
        et seq.).
            (55)(A) The program of training for disadvantaged adults 
        and youth under part A of title II of the Job Training 
        Partnership Act (29 U.S.C. 1601 et seq.), as in effect before 
        July 1, 1993.
            (B)(i) The program of training for disadvantaged adults 
        under part A of title II of the Job Training Partnership Act 
        (29 U.S.C. 1601 et seq.), as in effect on and after July 1, 
        1993.
            (ii) The program of training for disadvantaged youth under 
        part C of title II of the Job Training Partnership Act (29 
        U.S.C. 1641 et seq.), as in effect on and after July 1, 1993.
            (56) The Job Corps program under part B of title IV of the 
        Job Training Partnership Act (29 U.S.C. 1692 et seq.).
            (57) The summer youth employment and training programs 
        under part B of title II of the Job Training Partnership Act 
        (29 U.S.C. 1630 et seq.).
            (58) The programs carried out under the Older American 
        Community Service Employment Act (42 U.S.C. 3001 et seq.).
            (59) The programs under title III of the Older Americans 
        Act of 1965.
            (60) The programs carried out under part B of title II of 
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011-
        5012).
            (61) The programs carried out under part C of title II of 
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5013).
            (62) The State unemployment compensation programs approved 
        under section 303 of the Social Security Act and under section 
        3304 of the Internal Revenue Code of 1986.
            (63) The program under the Low-Income Energy Assistance Act 
        of 1981 (42 U.S.C. 8621 et seq.).
            (64) The weatherization assistance program under title IV 
        of the Energy Conservation and Production Act (42 U.S.C. 6851).
            (65) The program of block grants to States for social 
        services under title XX of the Social Security Act.
            (66) The programs carried out under the Community Services 
        Block Grant Act (42 U.S.C. 9901 et seq.).
            (67) The program of legal assistance to eligible clients 
        and other programs under the Legal Services Corporation Act (42 
        U.S.C. 2996 et seq.).
            (68) The program for emergency food and shelter grants 
        under title III of the Stewart B. McKinney Homeless Assistance 
        Act (42 U.S.C. 11331 et seq.).
            (69) The program of social services for refugees and Cuban/
        Haitian entrants under section 412(c) of the Immigration and 
        Nationality Act (8 U.S.C. 1522(c)) and through the exercise of 
        authority under section 501(a) of the Refugee Education 
        Assistance Act of 1980 (Public Law 96-422).
            (70) The programs carried out under the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
            (71) A State program for providing child care under section 
        402(i) of the Social Security Act.
            (72) The program of State legalization impact-assistance 
        grants (SLIAG) under section 204 of the Immigration Reform and 
        Control Act of 1986.

                  TITLE III--MISCELLANEOUS AMENDMENTS

SEC. 301. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE 
              TREATMENT AS A CONDITION OF RECEIVING AFDC.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)) is amended by inserting after paragraph (34) the 
following:
            ``(35) provide that--
                    ``(A) as a condition of eligibility for aid, each 
                applicant or recipient who the State determines is 
                addicted to alcohol or drugs must be required to agree 
                to participate, and must maintain satisfactory 
                participation (as determined by the State), in an 
                appropriate addiction treatment program; and
                    ``(B) each applicant or recipient who fails to 
                comply with any requirement imposed pursuant to 
                subparagraph (A) shall not be eligible for aid during 
                the 2-year period that begins with such failure to 
                comply.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall take effect on the date 
        of the enactment of this Act, and apply to payments under part 
        A of title IV of the Social Security Act for calendar quarters 
        ending after such date.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 402(a) of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirement imposed by the amendment made by 
        subsection (a) of this section, the State plan shall not be 
        regarded as failing to comply with the requirements of such 
        section 402(a) solely on the basis of the failure of the plan 
        to meet such additional requirement before the end of the 2-
        year period that begins with the date of the enactment of this 
        Act.

SEC. 302. AUTHORITY OF STATE TO MODIFY CERTAIN AFDC INCOME DISREGARD 
              RULES.

    (a) In General.--Section 402(a)(8)(B) of the Social Security Act 
(42 U.S.C. 602(a)(8)(B)) is amended--
            (1) by striking ``and'' at the end of clause (i); and
            (2) by adding at the end the following:
                    ``(iii) notwithstanding clauses (ii) and (iv) of 
                subparagraph (A) and clause (ii) of this subparagraph, 
                may disregard earned income of any child or relative 
                receiving aid to families with dependent children, or 
                of any other individual (living in the same home as 
                such relative and child) whose needs as taken into 
                account in making the determination under paragraph 
                (7), in accordance with any combination of rules which 
                (as determined by the State in accordance with 
                regulations prescribed by the Secretary) is at least as 
                favorable to the recipient of such aid as the 
                combination of rules contained in such clauses, but not 
                more favorable to the recipient than a rule providing 
                for the disregard of the first $200 of the total of 
                such earned income for such month plus \1/3\ of the 
                remainder thereof; and''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to benefits payable for calendar months beginning after the date 
of the enactment of this Act.

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