[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 741 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 741

 To amend title IV of the Social Security Act by reforming the aid to 
   families with dependent children program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 30, 1995

 Mr. Volkmer introduced the following bill; which was referred to the 
  Committee on Ways and Means and, in addition, to the Committees on 
   Economic and Educational Opportunities, Agriculture, Banking and 
  Financial Services, the Judiciary, and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To amend title IV of the Social Security Act by reforming the aid to 
   families with dependent children program, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Welfare to Self-
Sufficiency Act of 1994''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Amendments to Social Security Act.
      TITLE I--FAMILY INVESTMENT PROGRAM AND OTHER WELFARE REFORM

Sec. 101. Family investment program.
Sec. 102. Work incentives.
Sec. 103. Optional State disregard of dependent child's income.
Sec. 104. Family stability.
Sec. 105. Work requirements for unemployed parents.
Sec. 106. JOBS program.
Sec. 107. Increased payments to States.
Sec. 108. Assessment, monitoring, and evaluation.
Sec. 109. Timely preventive health care for children.
Sec. 110. Wage supplementation demonstration projects.
Sec. 111. Delay in certain effective dates.
       TITLE II--IMPROVEMENTS IN THE COLLECTION OF CHILD SUPPORT

Sec. 201. Transmission and assignment of certain child support orders 
                            to the IRS.
Sec. 202. Collection of child support by Internal Revenue Service.
Sec. 203. Publication of delinquent child support obligors.
Sec. 204. Effective date.
               TITLE III--WELFARE RESTRICTIONS FOR ALIENS

Sec. 301. Eligibility of certain aliens for certain Federal benefits.
Sec. 302. State AFDC agencies required to provide information on 
                            illegal aliens to the Immigration and 
                            Naturalization Service.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The welfare system is failing recipients and taxpayers 
        and must be reformed.
            (2) The aid to families with dependent children program 
        under title IV of the Social Security Act (hereafter in this 
        section referred to as ``AFDC'') remains largely unchanged from 
        its predecessor program which was created in 1935, while 
        society has changed dramatically during the same period.
            (3) The number of female-headed households with children 
        under the age of 18 increased by 146 percent from 1970 to 1990, 
        and there are now more children living in single-parent homes 
        than at any time in the Nation's history.
            (4) Expenditures for AFDC increased 13 percent (in 
        inflation adjusted dollars) over a 12-year period, from 
        $19,600,000,000 in 1980 to $22,200,000,000 in 1992.
            (5) The number of families on AFDC has increased 33 percent 
        over a 12-year period, from 3,600,000 families in 1980 to 
        4,800,000 families in 1992.
            (6) There were 2,000,000 more children receiving welfare in 
        1992 than there were in 1980 and 1 in 5 American children 
        currently live in poverty.
            (7) Many States are enacting sweeping changes to welfare 
        programs in an effort to curb expenditures and reduce the 
        number of dependent families.
            (8) Welfare reform legislation must recognize the 
        individuality of each family and enact programs that are 
        consistent with this principle.
            (9) Welfare reform legislation must also recognize the 
        importance of a holistic approach which treats the family as a 
        single unit and not as the sum of its parts.
            (10) Health care reform is essential to welfare reform 
        because many families remain on public assistance simply 
        because they cannot afford to lose benefits under the medicaid 
        program under title XIX of the Social Security Act for 
        themselves, and, most importantly, for their children.
            (11) Parents, including noncustodial parents, have a 
        responsibility to provide financial support for their children 
        and failure to provide child support increases the need for 
        AFDC payments.
            (12) In 1991, the United States Commission on Interstate 
        Child Support reported that the collection of child support 
        fell far short of court awards, with 11,000,000 children being 
        awarded $15,000,000,000 in child support payments while 
        approximately $5,000,000,000 in child support payments remained 
        unpaid.

SEC. 3. AMENDMENTS TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this Act 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.

      TITLE I--FAMILY INVESTMENT PROGRAM AND OTHER WELFARE REFORM

SEC. 101. FAMILY INVESTMENT PROGRAM.

    (a) State Plan To Include Family Investment Program.--Section 
402(a) (42 U.S.C. 602(a)) is amended by inserting after paragraph (28) 
the following new paragraph:
            ``(29) except in the case of a State receiving a waiver 
        from the Secretary, provide that the State has in effect a 
        family investment program described in subsection (j);''.
    (b) Family Investment Program.--Section 402 (42 U.S.C. 602) is 
amended by adding at the end the following new subsection:
    ``(j) For purposes of subsection (a)(29)--
            ``(1) The term `family investment program' means a program 
        under which the State agency--
                    ``(A) negotiates a family investment agreement (as 
                defined in section 406(i)) with each family, and
                    ``(B) offers a family the opportunity to enter into 
                a limited benefit agreement (as defined in section 
                406(j)) in lieu of such family investment agreement.
            ``(2)(A) Any agreement described in section 406(i) shall be 
        entered into by each caretaker relative, any other relative 
        with whom a dependent relative is living, and any other 
        individual living in the same home as such relative and the 
        dependent child whose needs are taken into account in making 
        the determination under section 402(a)(7).
            ``(B) An individual shall not be required to enter into the 
        agreement if such individual is--
                    ``(i) a parent of a child who is less than 6 months 
                of age, but if both parents are living in the child's 
                home, only one parent shall be exempt from entering 
                into the agreement;
                    ``(ii) employed for 30 or more hours per week;
                    ``(iii) ill, incapacitated, or of advanced age; or
                    ``(iv) needed in the home because of the illness or 
                incapacity of another member of the household.
            ``(3) The State agency shall ensure that--
                    ``(A) any correspondence with an individual 
                described in paragraph (2) relating to the family 
                investment program (including the initial notice of the 
                requirement to enter into a family investment 
                agreement) shall be in a format which is designed to be 
                easily understandable to such individual;
                    ``(B) the correspondence described in subparagraph 
                (A) shall be designed to be understandable to 
                individuals who are not English language speakers; and
                    ``(C) employees of the State agency are readily 
                available to assist individuals in completing any 
                documents required for participation in the family 
                investment program.
            ``(4) The State agency shall establish a dispute resolution 
        procedure for disputes related to participation in the family 
        investment agreement that provides the opportunity for a 
        hearing consistent with the hearing requirement under section 
        482(h).
            ``(5)(A) A State shall be treated as meeting the 
        requirements of paragraph (1) for fiscal years 1995 through 
        2002 if it enters into family investment agreements with at 
        least the implementation percentage of the applicable 
        population.
            ``(B) For purposes of subparagraph (A), the implementation 
        percentage is equal to--
                    ``(i) 10 percent in fiscal year 1995;
                    ``(ii) 15 percent in fiscal year 1996;
                    ``(iii) 20 percent in fiscal year 1997;
                    ``(iv) 30 percent in fiscal year 1998;
                    ``(v) 40 percent in fiscal year 1999;
                    ``(vi) 60 percent in fiscal year 2000;
                    ``(vii) 70 percent in fiscal year 2001; and
                    ``(viii) 90 percent in fiscal year 2002.
            ``(C) For purposes of subparagraph (A), the applicable 
        population is the average total number of individuals in the 
        State during the fiscal year who--
                    ``(i) receive aid to families with dependent 
                children; and
                    ``(ii) are not exempt from entering a family 
                investment agreement under clauses (i) through (iv) of 
                paragraph (2)(B).''.
    (c) Family Investment Agreement and Limited Benefit Plan.--Section 
406 (42 U.S.C. 606) is amended by adding at the end the following new 
subsections:
    ``(i) The term `family investment agreement' means a social 
contract between the State and each family receiving aid to families 
with dependent children which--
            ``(1) outlines the steps a family will take to obtain self-
        sufficiency;
            ``(2) specifies a negotiated time-limited period of 
        eligibility for receipt of aid to families with dependent 
        children that is consistent with unique family circumstances 
        and is based on a reasonable plan to facilitate the transition 
        of the family to self-sufficiency;
            ``(3)(A) contains a requirement that each relative and any 
        other individual entering into the agreement (except those 
        determined to need child care assistance but for whom the State 
        does not guarantee such assistance in accordance with section 
        402(g)), participate in one or more of the following activities 
        providing such relative or individual with a significant level 
        of commitment up to the level required for full-time 
        employment:
                    ``(i) Full-time or part-time employment.
                    ``(ii) Job-search activities.
                    ``(iii) Participation in a job opportunities and 
                basic skills training program which meets the 
                requirements of part F.
                    ``(iv) Participation in education or training 
                programs.
                    ``(v) Unpaid community service (subject to the 
                provisions of subparagraph (B)), only as part of a plan 
                to improve the employability of the individual and 
                leading to the eventual self-sufficiency of the family.
                    ``(vi) Placement in a community work experience 
                program in accordance with section 482(f).
                    ``(vii) High school completion activities (or the 
                equivalent) for a parent under the age of 20; and
            ``(B)(i) provides that an individual who participates in 
        unpaid community service under subparagraph (A)(v) shall not be 
        required to perform such unpaid community service for a greater 
        number of hours per month than the maximum number of hours an 
        individual may be required to work in any month under the 
        community work experience program as determined under section 
        482(f)(1)(B)(i);
            ``(ii) requires any sponsor of unpaid community service to 
        comply with the rules described in subsections (b), (c), (d), 
        and (g) of section 484 of the Social Security Act (42 U.S.C. 
        684); and
            ``(iii) provides that an individual's participation in 
        unpaid community service may not exceed 3 months;
            ``(4) provides each relative and any other individual 
        entering into the agreement with the supplemental services 
        required to obtain self-sufficiency and comply with the terms 
        of the family investment agreement, including health care, 
transportation, child care, education, and training;
            ``(5) if the State agency and a relative or other 
        individual entering into the agreement agree, provides that the 
        relative or other individual participate in--
                    ``(A) a substance abuse treatment program, or other 
                social service program that the State agency determines 
                necessary to increase the employability of such 
                relative or individual;
                    ``(B) programs and support services to strengthen 
                parenting skills and assure family stability; and
                    ``(C) programs that lead to improved school 
                readiness for preschool children and on-grade 
                performance for school age children;
            ``(6) provides that the State agency shall provide the 
        family with reasonable support and case management in the 
        creation, monitoring, and adaptation of a family investment 
        agreement to respond to changes in family circumstances and 
        factors outside family control;
            ``(7) provides that the State agency shall renegotiate the 
        family investment agreement--
                    ``(A) during the period of the agreement, to 
                reflect substantial changes in family circumstances or 
                needs; and
                    ``(B) at the conclusion of the original agreement, 
                if each relative and any other individual entering into 
                the agreement has made a good faith effort to comply 
                with the agreement but were unable to reach self-
                sufficiency because of factors outside of the control 
                of the relative or other individual;
            ``(8) provides that the family will automatically enter 
        into a limited benefit plan (as described in subsection (j)) if 
        a relative or other individual who has entered into the family 
        investment agreement fails to comply with the agreement; and
            ``(9) provides that the agreement shall be invalid if the 
        State agency fails to comply with the agreement.
    ``(j) The term `limited benefit plan' means a plan which, 
notwithstanding any other provision of this title, provides that--
            ``(1)(A) during the first 3-month period in which a family 
        receives aid under the plan, the family shall receive benefits 
        as normally determined under this title;
            ``(B) during the second 3-month period in which the family 
        receives aid under the plan, the needs of the caretaker 
        relative, any other relative with whom a dependent child is 
        living, and any other individual living in the same home as 
        such relative and the dependent child whose needs are taken 
        into account in making the determination under section 
        402(a)(7), shall not be taken into account in making the 
        determination with respect to the family for purposes of 
        paragraph (7) and in the case of a family which is eligible by 
        reason of section 407, both parents shall not be taken into 
        account into making such a determination; and
            ``(C) after the expiration of a 6-month period beginning on 
        the date on which the family entered into the limited benefit 
        plan, the family shall be ineligible for benefits under this 
        title and may not reapply for such benefits within a 6-month 
        period beginning on the date of such expiration;
            ``(2) during the duration of a limited benefit plan, a 
        third-party counselor shall inquire as to the well-being of the 
        dependent children; and
            ``(3) within a 45-day period beginning on the date that the 
        family automatically enters a limited benefit plan by reason of 
        the family investment agreement provision described in 
        subsection (i)(8) or elects to enter a limited benefit plan 
        under section 402(j)(1), the family shall have the option to 
        void the limited benefit plan by regaining compliance with the 
        negotiated family investment agreement or if no agreement has 
        been negotiated, negotiate an agreement.''.
    (d) Coordination Between Departments.--
            (1) In general.--The Secretary of Health and Human 
        Services, the Secretary of Labor, and the Secretary of 
        Education shall ensure appropriate coordination in the 
        planning, development, and operation of the programs described 
        in paragraph (2) in order to--
                    (A) improve the quality and effectiveness of 
                services provided by the Department of Health and Human 
                Services, the Department of Labor, and the Department 
                of Education;
                    (B) reduce the overlap of such programs; and
                    (C) reduce the administrative costs of such 
                programs.
            (2) Programs described.--The programs described in this 
        paragraph are as follows:
                    (A) The family investment program under section 
                402(j) of the Social Security Act (42 U.S.C. 602(j)).
                    (B) The JOBS program under part F of title IV of 
                the Social Security Act (42 U.S.C. 681 et seq.).
                    (C) Job training programs.
                    (D) Child care programs.
                    (E) Educational programs.
                    (F) Any other program administered by the 
                Department of Health and Human Services, the Department 
                of Labor, or the Department of Education which has the 
                effect of promoting self-sufficiency among recipients 
                of aid to families with dependent children under title 
                IV of the Social Security Act (42 U.S.C. 601 et seq.).
    (e) Effective Date.--Except as provided in section 111, the 
amendments made by this section shall take effect on the first day of 
the first fiscal year beginning after the date of the enactment of this 
Act.

SEC. 102. WORK INCENTIVES.

    (a) Increase in Work Expense Disregard.--Section 402(a)(8)(A)(ii) 
(42 U.S.C. 602(a)(8)(A)(ii)) is amended by inserting ``, or at the 
option of the State (on a statewide basis or in a defined area of the 
State), the greater of the first $90, or up to the first 20 percent of 
the total of such earned income for such month'' after ``such month''.
    (b) Increase in Earned Income Incentive.--
            (1) In general.--Section 402(a)(8)(A)(iv) (42 U.S.C. 
        602(a)(8)(A)(iv)) is amended--
                    (A) by striking ``(II)''; and
                    (B) by inserting ``, or (II) at the option of the 
                State (on a statewide basis or in a defined area of the 
                State), up to one-half of the total of such earned 
                income not disregarded under any other clause of this 
                subparagraph if such amount is greater than the amount 
                disregarded under subclause (I)'' before the semicolon 
                at the end.
            (2) No time limitation.--Section 402(a)(8)(B) (42 U.S.C. 
        602(a)(8)(B)) is amended to read as follows:
            ``(B) provide that (with respect to any month) the State 
        agency shall not disregard under clause (ii), (iii), or (iv) of 
        subparagraph (A) any earned income of any one of the 
        individuals specified in subparagraph (A)(ii) if such 
        individual--
                    ``(i) terminated the individual's employment or 
                reduced the individual's earned income without good 
                cause within such period (of not less than 30 days) 
                preceding such month as may be prescribed by the 
                Secretary;
                    ``(ii) refused without good cause, within such 
                period preceding such month as may be prescribed by the 
                Secretary, to accept employment in which the individual 
                is able to engage which is offered through the public 
                employment offices of the State, or is otherwise 
                offered by an employer if the offer of such employer is 
                determined by the State or local agency administering 
                the State plan, after notification by the employer, to 
                be a bona fide offer of employment; or
                    ``(iii) failed without good cause to make a timely 
                report (as prescribed by the State plan pursuant to 
                paragraph (14)) to the State agency of earned income 
                received in such month; and''.
    (c) Work Transition Period.--
            (1) In general.--Section 402(a)(8)(A) (42 U.S.C. 
        602(a)(8)(A)) is amended--
                    (A) by striking ``and'' at the end of clause (vii); 
                and
                    (B) by inserting after clause (viii) the following 
                new clause:
                    ``(ix) at the option of the State (on a statewide 
                basis or in a defined area of the State), may disregard 
                up to the first 4 months of earned income due to new 
                employment 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 are taken into account in making 
                such a determination not disregarded under any other 
                clause of this subparagraph, if--
                            ``(I) such individual earned less than 
                        $1,200 in the 12-month period preceding the new 
                        employment; and
                            ``(II) such individual timely reports the 
                        earnings to the State agency; and''.
            (2) AFDC quality control.--Section 408(c)(3) (42 U.S.C. 
        608(c)(3)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (D);
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) the State's reliance on the best information 
                available in determining eligibility for the earned 
                income disregard described in section 
                402(a)(8)(A)(ix).''.
    (d) Retrospective Budgeting Procedures.--Section 402(a)(13) (42 
U.S.C. 602(a)(13)) is amended--
            (1) by striking ``subparagraph (B)'' in subparagraph (A) 
        and inserting ``subparagraphs (B) and (C)'';
            (2) by striking ``and'' at the end of subparagraph (A);
            (3) by adding ``and'' at the end of subparagraph (B); and
            (4) by adding at the end the following new subparagraph:
                    ``(C) in the case of the termination of a source of 
                income of an individual whose income is taken into 
                account in making a determination under paragraph (7), 
                the State agency shall consider the loss of income in 
                making a determination regarding the amount of aid, 
                beginning in the first month such loss of income 
                occurs, but only if the termination is timely reported 
                and, in the case of earned income, the individual shows 
                good cause for the termination of employment;''.
    (e) Disregard of Interest Income.--Section 402(a)(8)(A) (42 U.S.C. 
602(a)(8)(A)), as amended by subsection (c) of this section, is 
amended--
            (1) by striking ``and'' at the end of clause (viii); and
            (2) by inserting after clause (ix) the following new 
        clause:
                    ``(x) at the option of the State (on a statewide 
                basis or in a defined area of the State), may disregard 
                all interest income of any child or relative applying 
                for or receiving aid to families with dependent 
                children, or of any other individual (living in the 
                same home as such relative and child) whose needs are 
                taken into account in making such a determination; 
                and''.
    (f) Disregard of Income and Resources Designated for Education, 
Training, and Employability.--
            (1) Disregard as resource.--Section 402(a)(7)(B) (42 U.S.C. 
        602(a)(7)(B)) is amended--
                    (A) by striking ``or'' before ``(iv)''; and
                    (B) by inserting ``, or (v) at the option of the 
                State (on a statewide basis or in a defined area of the 
                State), in the case of a family receiving aid under the 
                State plan (and a family not receiving such aid but 
                which received such aid in at least 1 of the preceding 
                4 months or became ineligible for such aid during the 
                preceding 12 months because of excessive earnings), any 
                amount not to exceed $10,000 in a qualified asset 
                account (as such term is defined in section 406(k)) of 
                such family, reduced by the amount (if any) excluded 
                from the resources of the family pursuant to paragraph 
                (46)(A)(i)'' before ``; and''.
            (2) Disregard as income.--
                    (A) Nonrecurring lump sum exempt from lump-sum 
                rule.--Section 402(a)(17) (42 U.S.C. 602(a)(17)) is 
                amended by adding at the end the following: ``; at the 
                option of the State (on a statewide basis or in a 
                defined area of the State), that this paragraph shall 
                not apply to earned or unearned income received in a 
                month on a nonrecurring basis to the extent that such 
                income is placed in a qualified asset account (as 
                defined in section 406(k)) the total amounts in which, 
                after such placement, does not exceed $10,000;''.
                    (B) Treatment as income.--Section 402(a)(7) (42 
                U.S.C. 602(a)(7)) is amended--
                            (i) by striking ``and'' at the end of 
                        subparagraph (B);
                            (ii) by striking the semicolon at the end 
                        of subparagraph (C) and inserting ``; and''; 
                        and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(D) shall treat as income any distributions from 
                a qualified asset account (as defined in section 
                406(k)(1)) which do not meet the definition of a 
                qualified distribution under section 406(k)(2);''.
            (3) Qualified asset accounts.--Section 406 (42 U.S.C. 606), 
        as amended by section 101(b) of this Act, is amended by adding 
        at the end the following new subsection:
    ``(k)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distributions' means distributions for 
expenses directly related to 1 or more of the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.''.
    (g) Disregard of Income and Resources Related to Self-Employment.--
            (1) State plan requirements.--Section 402(a) (42 U.S.C. 
        602(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (44);
                    (B) by striking the period at the end of paragraph 
                (45) and inserting ``; and''; and
                    (C) by inserting after paragraph (45) the following 
                new paragraph:
            ``(46) at the option of the State (on a statewide basis or 
        in a defined area of the State), provide that the State agency 
        for a period not to exceed 2 years--
                    ``(A)(i) shall not include as a resource of the 
                family of which a child referred to in paragraph (7)(A) 
                is a member, for purposes of paragraph (7)(B), the 
                lesser of--
                            ``(I) the first $10,000 of the net worth 
                        (assets reduced by liabilities with respect 
                        thereto) of all microenterprises (as defined in 
                        section 406(l)(1)) owned, in whole or in part, 
                        by the child or by a relative or other 
                        individual referred to in paragraph (7)(A), or
                            ``(II) such net worth attributable to such 
                        ownership; and
                    ``(ii) shall take into consideration as earned 
                income of the family of which the child is a member, 
                only the net profits (as defined in section 406(l)(2)) 
                of such microenterprises; and
                    ``(B) shall ensure that caseworkers are able to 
                properly advise recipients of aid under the State plan 
                of the option of microenterprise as a legitimate route 
                toward self-sufficiency, and that caseworkers encourage 
                recipients of such aid who are interested in starting a 
                microenterprise to participate in a program designed to 
                assist them in such effort.''.
            (2) Definitions.--Section 406 (42 U.S.C. 606), as amended 
        by section 101(b) of this Act and subsection (f)(3) of this 
        section, is amended by adding at the end the following new 
        subsection:
    ``(l)(1) The term `microenterprise' means a commercial enterprise 
which has 5 or fewer employees, 1 or more of whom owns the enterprise.
    ``(2) The term `net profits' means, with respect to a 
microenterprise, the gross receipts of the business, minus--
            ``(A) payments of principal or interest on a loan to the 
        microenterprise;
            ``(B) transportation expenses;
            ``(C) inventory costs;
            ``(D) expenditures to purchase capital equipment;
            ``(E) cash retained by the microenterprise for future use 
        by the business;
            ``(F) taxes paid by reason of the business;
            ``(G) if the business is covered under a policy of 
        insurance against loss--
                    ``(i) the premiums paid for such insurance; and
                    ``(ii) the losses incurred by the business that are 
                not reimbursed by the insurer solely by reason of the 
existence of a deductible with respect to the insurance policy;
            ``(H) the reasonable costs of obtaining 1 motor vehicle 
        necessary for the conduct of the business; and
            ``(I) the other expenses of the business.''.
            (3) Inclusion of microenterprise training and activities in 
        the jobs program.--
                    (A) In general.--Section 482(d)(1) (42 U.S.C. 
                682(d)(1)) is amended by adding at the end the 
                following new subparagraph:
    ``(C) The services and activities referred to in subparagraph (A)--
            ``(i) in the case of a State in which at least 3 percent of 
        the adult recipients of aid under the State plan approved under 
        part A (as of the close of the immediately preceding fiscal 
        year) elect to participate in microenterprise activities, shall 
        include programs described in paragraph (4); or
            ``(ii) in the case of a State in which less than 3 percent 
        of the adult recipients of such aid (as of such time) elect to 
        participate in microenterprise activities, may include programs 
        described in paragraph (4).''.
                    (B) Microenterprise programs.--Section 482(d) (42 
                U.S.C. 682(d)) is amended by adding at the end the 
                following:
    ``(4) The programs described in this paragraph are programs of 
public and private organizations, agencies, and other entities 
(including nonprofit and for-profit entities) to enable such entities 
to facilitate economic development by--
            ``(A) providing technical assistance, advice, and business 
        support services (including assistance, advice, and support 
        relating to business planning, financing, marketing, and other 
        microenterprise development activities) to owners of 
        microenterprises and persons developing microenterprises; and
            ``(B) providing general support (such as peer support and 
        self-esteem programs) to owners of microenterprises and persons 
        developing microenterprises.''.
    (h) Extension of Transitional Child Care.--Section 
402(g)(1)(A)(iii) (42 U.S.C. 602(g)(1)(A)(iii)) is amended by striking 
``12 months'' and inserting ``24 months''.
    (i) Effective Date.--Except as provided in section 111, the 
amendments made by this section shall take effect on the first day of 
the first fiscal year beginning after the date of the enactment of this 
Act.

SEC. 103. OPTIONAL STATE DISREGARD OF DEPENDENT CHILD'S INCOME.

    (a) In General.--Section 402(a)(8) (42 U.S.C. 602(a)(8)), as 
amended by subsections (c) and (e) of section 102 of this Act, is 
amended--
            (1) by striking ``and'' at the end of clause (ix);
            (2) by striking the semicolon at the end of clause (x) and 
        inserting ``; and''; and
            (3) by inserting after clause (x) the following new clause:
                    ``(xi) at the option of the State (on a statewide 
                basis or in a defined area of the State), may disregard 
                all or any part of the earned income of a dependent 
                child; and''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first fiscal year beginning after the 
date of the enactment of this Act.

SEC. 104. FAMILY STABILITY.

    (a) Equivalent Treatment of Stepparent Income and Parent Income.--
Section 402(a)(31) (42 U.S.C. 602(a)(31)) is amended--
            (1) in subparagraph (A), by inserting ``, or at the option 
        of the State (on a statewide basis or in a defined area of the 
        State), the greater of $90, or the first 20 percent of such 
        total'' before the comma at the end;
            (2) by striking ``and'' at the end of subparagraph (C); and
            (3) by striking the semicolon at the end of subparagraph 
        (D) and inserting ``, (E) an amount equal to the expenditure 
        for care in such month for a dependent child of the stepparent 
        who is living in the same home as the stepparent, not receiving 
        aid to families for dependent children, and requiring care for 
        such month to the extent that such amount (for each such 
        dependent child) does not exceed $175 (or such lesser amount as 
        the Secretary may prescribe in the case of an individual not 
        engaged in full-time employment, or not employed throughout the 
        month), or, in the case such child is under age 2, $200, and 
        (F) at the option of the State (on a statewide basis or in a 
        defined area of the State), up to one-half of the total of such 
        earned income not disregarded under any other subparagraph of 
        this paragraph;''.
    (b) Unemployed Parent Households.--
            (1) Elimination of principal earner requirement.--
                    (A) In general.--Section 407 (42 U.S.C. 607) is 
                amended--
                            (i) by striking ``of the parent who is the 
                        principal earner'' in subsection (a) and 
                        inserting ``of either parent in a home in which 
                        both parents of such child are living'';
                            (ii) by striking ``the parent who is the 
                        principal earner'' in subsection 
                        (b)(2)(B)(ii)(II) and inserting ``either 
                        parent'';
                            (iii) by striking ``; and'' at the end of 
                        paragraph (3) of subsection (d) and inserting a 
                        period; and
                            (iv) by striking paragraph (4) of 
                        subsection (d).
                    (B) Conforming amendment.--Section 402(a)(19)(D) 
                (42 U.S.C. 602(a)(19)(D)) is amended by striking ``the 
                parent who is the principal earner'' and inserting 
                ``either parent''.
            (2) Modification of other requirements.--Subparagraph (A) 
        of section 407(b)(1) (42 U.S.C. 607(b)(1)) is amended to read 
        as follows:
            ``(A) subject to paragraph (2), shall require the payment 
        of aid to families with dependent children with respect to a 
        dependent child as defined in subsection (a) when--
                    ``(i) for at least 30 days--
                            ``(I) prior to the receipt of aid, either 
                        parent has been employed for less than a 
                        monthly cap specified by the State plan (not to 
                        exceed 100 hours), and at the time of the 
                        application for aid, both parents are employed 
                        for less than such monthly cap; or
                            ``(II) after the application for aid, one 
                        or both parents are employed for less than the 
                        monthly cap established under subclause (I),
                    ``(ii) either such parent has not without good 
                cause, within such period (of not less than 30 days) as 
                may be prescribed by the Secretary, refused a bona fide 
                offer of employment or training for employment, and
                    ``(iii) notwithstanding the number of hours either 
                such parent is working after the initial determination 
                of eligibility, such family remains otherwise eligible 
                for payment under this section; and''.
    (c) Increase in Asset Limits.--Section 402(a)(7)(B) (42 U.S.C. 
602(a)(7)(B)) is amended in the matter preceding clause (i) by 
inserting ``(or, at the option of the State (on a statewide basis or in 
a defined area of the State), exceeds an amount prescribed by the State 
not to exceed $2,000 for applicant families and $5,000 for recipient 
families)'' after ``may determine''.
    (d) Increase in Motor Vehicle Limit.--Section 402(a)(7)(B) (42 
U.S.C. 602(a)(7)(B)), as amended by section 102(f) of this Act, is 
amended--
            (1) in clause (i), by striking ``and so much of the family 
        member's ownership interest in one automobile as does not 
        exceed such amount as the Secretary may prescribe'';
            (2) by striking ``or'' at the end of clause (iv); and
            (3) by striking ``; and'' at the end of clause (v) and 
        inserting ``, or (vi) the greater of so much of the family 
        member's ownership interest in 1 automobile as does not exceed 
        (I) such amount as the Secretary may prescribe, or (II) at the 
        option of the State (on a statewide basis or in a defined area 
        of the State), an amount not to exceed $3,000, adjusted on 
        October 1 of each year (beginning in 1994) to equal the amount 
        determined under this subclause for the previous fiscal year 
        plus the product of such amount and the increase in the 
        Consumer Price Index for used vehicles during such fiscal year; 
        and''.
    (e) Effective Date.--Except as provided in section 111, the 
amendments made by this section shall take effect on the first day of 
the first fiscal year beginning after the date of the enactment of this 
Act.

SEC. 105. WORK REQUIREMENTS FOR UNEMPLOYED PARENTS.

    (a) Elimination of Required Participation of One Parent in Work 
Component of JOBS Program.--Section 403(l) (42 U.S.C. 603(l)) is 
amended by striking paragraph (4).
    (b) Required Participation of Both Parents.--Section 407(b)(2)(A) 
(42 U.S.C. 607(b)(2)(A)) is amended to read as follows:
    ``(2)(A)(i) In carrying out the program under this section, a State 
may condition continued eligibility for aid to families with dependent 
children by reason of the unemployment of either parent, on the 
participation of both parents in a program established by the State 
agency which shall include job search activities, counseling, and 
training services when the State agency determines that such 
participation is required, except as provided in clause (ii).
    ``(ii) A parent shall not be subject to the requirement under 
subparagraph (A), if such parent is employed at least 30 hours per 
week, is needed in the home to care for a child under 6 months of age, 
or if the State agency determines the existence of other good cause.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first fiscal year beginning after the 
date of the enactment of this Act.

SEC. 106. JOBS PROGRAM.

    (a) Requirement of JOBS Participation of Pregnant Individuals.--
Section 402(a)(19)(C) (42 U.S.C. 602(a)(19)(C)) is amended--
            (1) by inserting ``or'' at the end of clause (v);
            (2) by striking clause (vi); and
            (3) by redesignating clause (vii) as clause (vi).
    (b) No Limitation on Length of Job Search Program.--Section 
482(g)(2) (42 U.S.C. 682(g)(2)) is amended by striking ``402(a)(19)(D) 
applies'' through the end of subparagraph (B) and inserting 
``402(a)(19)(D) applies.''.
    (c) Protection of Existing Workers.--
            (1) Nondisplacement.--Section 484(c) (42 U.S.C. 684(c)) is 
        amended by--
                    (A) by striking ``or'' at the end of paragraph (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; or''; and
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) the employment or assignment of a participant or the 
        filling of a position if such participant will perform any 
        services or duties, or engage in activities, that--
                    ``(A) will supplant the hiring of employed workers;
                    ``(B) are services, duties, or activities with 
                respect to which an individual has recall rights 
                pursuant to a collective bargaining agreement or 
                applicable personnel procedures; or
                    ``(C) had been performed by or were assigned to any 
                employee who--
                            ``(i) is subject to a reduction in force; 
                        or
                            ``(ii) has recall rights pursuant to a 
                        collective bargaining agreement or applicable 
                        personnel procedures.''.
            (2) Concurrence of local labor organization.--Section 484 
        (42 U.S.C. 684) is amended by adding at the end the following 
        new subsection:
    ``(g) No work assignment under the program shall be made until the 
State agency has obtained from an employer with whom a participant is 
placed, the written concurrence of any local labor organization 
representing employees of the employer who are engaged in the same or 
substantially similar work as that proposed to be carried out.''.
    (d) Grievance Procedure.--Section 484(d)(1) (42 U.S.C. 684(d)(1)) 
is amended to read as follows:
    ``(d)(1)(A) The State shall establish and maintain a grievance 
procedure for resolving complaints by regular employees or such 
employees' representatives that the work assignment of an individual 
under the program violates any of the prohibitions described in 
subsection (c).
    ``(B) Except for a grievance that alleges fraud or criminal 
activity, a grievance shall be made not later than 1 year after the 
date of the alleged occurrence of the event that is the subject of the 
grievance.
    ``(C)(i) A hearing on any grievance conducted under this paragraph 
shall be conducted not later than 30 days after the filing of such 
grievance.
    ``(ii) A decision on any such grievance shall be made not later 
than 60 days after the filing of such grievance.
    ``(D)(i)(I) In the event of a decision on a grievance that is 
adverse to the party who filed such grievance, or 60 days after the 
filing of such grievance if no decision has been reached, such party 
shall be permitted to submit such grievance to binding arbitration 
before a qualified arbitrator who is jointly selected and independent 
of the interested parties.
    ``(II) If the parties cannot agree on an arbitrator, the Governor 
shall appoint an arbitrator from a list of qualified arbitrators within 
15 days after receiving a request for such appointment from one of the 
parties to the grievance.
    ``(ii) An arbitration proceeding shall be held not later than 45 
days after the request for such arbitration proceeding, or, if the 
arbitrator is appointed by the Governor in accordance with clause 
(i)(II), not later than 30 days after the appointment of such 
arbitrator.
    ``(iii) A decision concerning a grievance shall be made not later 
than 30 days after the date such arbitration proceeding begins.
    ``(iv)(I) Except as provided in subclause (II), the cost of an 
arbitration proceeding shall be divided evenly between the parties to 
the arbitration.
    ``(II) If a regular employee or such employee's representative 
prevails under a binding arbitration proceeding, the State agency shall 
pay the total cost of such proceeding and the attorneys' fees of such 
employee or representative.
    ``(E) Remedies for a grievance filed under this paragraph include--
            ``(i) prohibition of the work assignment in the program 
        under this part; and
            ``(ii)(I) reinstatement of the displaced employee to the 
        position held by such employee prior to displacement;
            ``(II) payment of lost wages and benefits of the displaced 
        employee;
            ``(III) reestablishment of other relevant terms, 
        conditions, and privileges of employment of the displaced 
        employee; and
            ``(IV) such equitable relief as is necessary to make the 
        displaced employee whole.
    ``(F) Suits to enforce arbitration awards under this paragraph may 
be brought in any district court of the United States having 
jurisdiction of the parties, without regard to the amount in 
controversy and without regard to the citizenship of the parties.''.
    (e) Effective Date.--Except as provided in section 111, the 
amendments made by this section shall take effect on the first day of 
the first fiscal year beginning after the date of the enactment of this 
Act.

SEC. 107. INCREASED PAYMENTS TO STATES.

    (a) Changes to JOBS Payment Formula.--
            (1) In general.--Section 403(l)(1)(A) (42 U.S.C. 
        603(l)(1)(A)) is amended--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) in clause (ii), in the matter preceding 
                subclause (I), by striking ``described in clause (i)'' 
                and inserting ``described in clause (i) but do not 
                exceed the amount of such expenditures in fiscal year 
                1994'';
                    (C) by striking the period at the end of clause 
                (ii) and inserting ``; and''; and
                    (D) by adding at the end the following new clause:
            ``(iii) with respect to so much of the expenditures in a 
        fiscal year that exceed the sum of the amounts described in 
        clauses (i) and (ii)--
                    ``(I) 50 percent in the case of expenditures 
                described in clause (i)(II), and
                    ``(II) in the case of expenditures made by a State 
                in operating such a program for a fiscal year (other 
                than for costs described in subclause (I)), the greater 
                of--
                            ``(aa) 70 percent, or
                            ``(bb) the Federal medical assistance 
                        percentage (as defined in section 1118 in the 
                        case of any State to which section 1108 
                        applies, or as defined in section 1905(b) in 
                        the case of any other State).''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply with respect to payments made on and after October 
        1, 1994.
    (b) Increase in JOBS Program Authorization.--Section 403(k)(3) (42 
U.S.C. 603(k)(3)) is amended--
            (1) by striking subparagraphs (E) and (F); and
            (2) by inserting after subparagraph (D) the following new 
        subparagraphs:
            ``(E) $1,500,000,000 in the case of fiscal year 1995,
            ``(F) $2,000,000,000 in the case of fiscal year 1996,
            ``(G) $2,500,000,000 in the case of fiscal year 1997,
            ``(H) $3,000,000,000 in the case of fiscal year 1998, and
            ``(I) $3,500,000,000 in the case of fiscal year 1999.''.
    (c) Increase in Child Care Payment Formula.--
            (1) In general.--
                    (A) Increased percentage.--Section 402(g)(3)(A)(i) 
                of the Social Security Act (42 U.S.C. 602(g)(3)(A)(i)) 
                is amended to read as follows:
    ``(3)(A)(i) In the case of expenditures in any fiscal year for 
child care pursuant to paragraph (1)(A) by any State to which section 
1108 does not apply, the applicable rate for purposes of section 403(a) 
shall be--
            ``(I) with respect to so much of such expenditures as does 
        not exceed the State's expenditures in the fiscal year 1994, 
        the Federal medical assistance percentage (as defined in 
        section 1905(b)), and
            ``(II) with respect to so much of such expenditures as 
        exceed the amount described in subclause (I), the sum of--
                    ``(aa) the Federal medical assistance percentage 
                (as defined in section 1905(b)), and
                    ``(bb) one-half of the difference between 100 
                percent and such Federal medical assistance 
                percentage.''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply with respect to payments 
                made on and after October 1, 1994.
            (2) Conforming amendments.--
                    (A) In general.--Section 402(g)(3)(A)(i) of the 
                Social Security Act (42 U.S.C. 602(g)(3)(A)(i)), as 
                amended by paragraph (1)(A) of this subsection, is 
                amended--
                            (i) by striking ``(i)'' after ``(A)'';
                            (ii) by striking ``subclause (I)'' in 
                        subclause (II) and inserting ``clause (i)'';
                            (iii) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively; and
                            (iv) by redesignating items (aa) and (bb) 
                        as subclauses (I) and (II), respectively.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall take effect on September 30, 
                1998.

SEC. 108. ASSESSMENT, MONITORING, AND EVALUATION.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by 
section 102(g)(1) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following new 
        paragraph:
            ``(47) at the option of the State (on a statewide basis or 
        in a defined area of the State), provide that the State agency 
        (in order to increase the percentage of families moving from 
        welfare to self-sufficiency)--
                    ``(A) shall conduct an assessment, in consultation 
                with State and local elected officials, current 
                recipients of aid to families with dependent children, 
                recipients of community-based service systems, and 
                individuals with expertise in business, education, 
                child welfare, juvenile justice, mental health, 
                substance addiction, housing, and labor--
                            ``(i) of the barriers which families that 
                        receive aid to families with dependent children 
                        face in achieving self-sufficiency, including 
                        noneconomic barriers such as family functions, 
                        parenting capacity, child development, housing, 
                        substance abuse, and mental illness;
                            ``(ii) of the capacity within the State to 
                        provide employment opportunities to families 
                        that receive aid to families with dependent 
                        children and to address other barriers such 
                        families face to achieving self-sufficiency; 
                        and
                            ``(iii) of the number and skills of workers 
                        needed to develop the family investment program 
                        under paragraph (29), monitor progress, and 
                        adapt goals to meet new challenges;
                    ``(B) shall establish a system to monitor and 
                evaluate both the economic gains related to employment 
                of individuals in households receiving aid to families 
                with dependent children and the social, health, 
                educational, and developmental impact on children in 
                such households that result from efforts to achieve 
                self-sufficiency; and
                    ``(C) shall establish a system to determine the 
                number of individuals who achieve self-sufficiency 
                through the family investment program under paragraph 
                (29) and the rate of recidivism.''.
    (b) Effective Date.--Except as provided in section 111, the 
amendments made by this section shall take effect on the first day of 
the first fiscal year beginning after the date of the enactment of this 
Act.

SEC. 109. TIMELY PREVENTIVE HEALTH CARE FOR CHILDREN.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by 
section 102(g)(1) and 108(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (46);
            (2) by striking the period at the end of paragraph (47) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (47) the following new 
        paragraph:
            ``(48) provide that (unless the State agency provides the 
        Secretary with adequate certification that the care described 
        in subparagraph (A)(i)(I) is not accessible in the area in 
        which a family resides)--
                    ``(A)(i) the State shall decrease the amount of aid 
                paid to a family under this part (determined without 
                regard to subparagraph (B)) by a percentage amount 
determined appropriate by the Secretary beginning in the month 
following any month in which the State agency has failed to receive--
                            ``(I) written verification that each child 
                        in the family under 6 years of age has been 
                        immunized and has received well-baby and well-
                        child care in accordance with guidelines issued 
                        by the Surgeon General of the Public Health 
                        Service; or
                            ``(II) notice of a medical justification 
                        that would exempt the child or children from 
                        receiving such care; and
                    ``(ii) the State shall end the reduction of payment 
                under clause (i) beginning in the month following the 
                month in which the State agency receives the required 
                verification; and
                    ``(B) aid under the plan to a family shall be 
                increased by a bonus payment equal to the percentage 
                amount determined by the Secretary under subparagraph 
                (A) in the month following a month in which the State 
                agency receives verification that each such child has 
                received the immunizations and care described in 
                subparagraph (A)(i).''.
    (b) Effective Date.--Except as provided in section 111, the 
amendments made by this section shall take effect on the first day of 
the first fiscal year beginning after the date of the enactment of this 
Act.

SEC. 110. WAGE SUPPLEMENTATION DEMONSTRATION PROJECTS.

    (a) In General.--The Secretary of Health and Human Services 
(hereafter in this section referred to as the ``Secretary'') shall 
establish demonstration projects for the purpose of developing a wage 
supplementation program under which--
            (1) certain individuals eligible for aid to families with 
        dependent children under title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.) would be given an incentive to work; 
        and
            (2) the State would use funds available to pay benefits 
        described in paragraph (1) and food stamp benefits under the 
        Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to make monthly 
        incentive payments (in lieu of such benefits) to such 
        individuals.
Each such program shall meet the requirements of subsection (b).
    (b) Wage Supplementation Demonstration Project.--
            (1) In general.--A demonstration project conducted under 
        this section shall provide the following:
                    (A) Incentives to work.--The project shall--
                            (i) require as a condition of participation 
                        in the project that an eligible individual be 
                        employed by a participating employer;
                            (ii) provide that the State shall make 
                        monthly incentive payments to any eligible 
                        individual for each month of employment in an 
                        amount equal to the benefits described in 
                        subsection (a)(2) which would otherwise be 
                        payable to the individual, determined as of the 
                        first day of the first full month of employment 
                        of such individual by a participating employer; 
                        and
                            (iii) provide that such payments be in lieu 
                        of such benefits.
                    (B) Period of participation.--A project shall not 
                permit an eligible individual to participate in the 
                demonstration project for a period in excess of the 
                lesser of--
                            (i) an aggregate period of 48 months, or
                            (ii) a period consisting of the number of 
                        months in which such individual was employed by 
                        a participating employer.
                    (C) Income in excess of limit.--The project shall 
                set a limit (to be determined by the State) on the 
                monthly income (including payments under subparagraph 
                (A)(ii)) of the family of an eligible individual and 
                shall permit the State to--
                            (i) reduce payments under subparagraph 
                        (A)(ii) in excess of the limit; or
                            (ii) determine an individual ineligible for 
                        participation in the project if such income is 
                        in excess of the limit.
            (2) Special rules for treatment under federal programs.--
        Notwithstanding any other provision of law, the following 
        special rules shall apply to an eligible individual 
        participating in the project:
                    (A) Wages as earned income.--Wages paid to an 
                eligible individual by a participating employer (but 
                not payments under the project) shall be considered 
                earned income.
                    (B) Treated as eligibles.--Except for purposes of 
                determining eligibility for benefits for which payments 
                under the project are in lieu of, an eligible 
                individual participating in the project shall be 
                treated as eligible--
                            (i) for 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
                            (ii) for food stamp benefits under the Food 
                        Stamp Act of 1977 (7 U.S.C. 2011 et seq.) if 
                        such individual was otherwise eligible for food 
                        stamp benefits, determined as of the first day 
                        of the first full month of the employment of 
                        such individual by a employer.
                    (C) Additional child support amounts.--An eligible 
                individual who participates in the demonstration 
                project shall remain eligible for the project 
                notwithstanding the receipt of any amounts paid to the 
                family of the individual under section 457(b)(4)(B) of 
                the Social Security Act (42 U.S.C. 657(b)(4)(B)).
                    (D) Housing.--Any wages paid to an eligible 
                individual by a participating employer during the 
                period of time that an eligible individual participates 
                in the demonstration project shall not be taken into 
                account in determining--
                            (i) the monthly rent under section 3(a) of 
                        the United States Housing Act of 1937 for any 
                        family residing in a dwelling unit assisted 
                        under such Act; and
                            (ii) the monthly assistance payment for any 
                        family under section 8(o)(2) of such Act.
            (3) Eligible individual and participating employer.--
                    (A) Eligible individual.--For purposes of this 
                section, an individual is an eligible individual if the 
                individual is in a category of individuals which the 
                State determines should be eligible to participate in 
                the demonstration project, and who would, at the time 
                of placement in the job involved, be eligible for aid 
                to families with dependent children under an approved 
                State plan under title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.).
                    (B) Participating employer.--
                            (i) In general.--For purposes of this 
                        section, an employer is a participating 
                        employer, with respect to an eligible 
                        individual, if the employer provides the State 
                        with a written agreement certifying--
                                    (I) that the employment of the 
                                eligible individual complies with the 
                                rules described in subsections (b), 
                                (c), (d), and (g) of section 484 of the 
                                Social Security Act (42 U.S.C. 684);
                                    (II) that the gross wages (as 
                                defined in section 209 of the Social 
                                Security Act (42 U.S.C. 609) determined 
                                without regard to any dollar 
                                limitation) paid to such eligible 
                                individual by the employer during any 
                                month will not be less than the product 
                                of--
                                            (aa) the greater of the 
                                        Federal minimum wage or the 
                                        applicable State minimum wage, 
                                        and
                                            (bb) the number of hours 
                                        worked by such individual;
                                    (III) that the employer will not 
                                receive any wage subsidy under any 
                                other provision of Federal law, 
                                including part F of title IV of the 
                                Social Security Act with respect to the 
                                employment of such eligible individual; 
                                and
                                    (IV) that the eligible individual 
                                receives the same employer-provided 
                                benefits (other than health care 
                                benefits) that other employees of the 
                                employer receive.
                            (ii) Continuing certification 
                        requirement.--A participating employer shall be 
                        required to submit a monthly report to the 
                        State (in a form and in such manner as the 
                        State requires) certifying that the employer 
                        has complied with the requirements of 
                        subclauses (I), (II), (III), and (IV) of clause 
                        (i) with respect to an eligible individual 
                        during the period such individual participates 
                        under the project.
    (c) Duration.--A demonstration project under this Act shall be 
conducted for not more than 5 years (including any time necessary for 
final evaluation and reporting). The Secretary may terminate a project 
if the Secretary determines that the State conducting the project is 
not in substantial compliance with the terms of the application 
approved by the Secretary under this section.
    (d) Applications.--
            (1) In general.--Each State desiring to conduct a 
        demonstration project under this section shall prepare and 
        submit to the Secretary an application, at such time, in such 
        manner, and containing such information as the Secretary may 
        require, including an explanation of a plan for evaluating the 
        project.
            (2) Approval of applications.--A State that submits an 
        application under paragraph (1) may begin a demonstration 
        project under this section--
                    (A) upon approval of such application by the 
                Secretary; or
                    (B) at the end of the 60-day period beginning on 
                the date such application is submitted, unless the 
                Secretary denies the application during such period.
            (3) Notice and comment.--A State shall issue a public 
        notice on the date the State submits an application under 
        paragraph (1) which contains a general description of the 
        proposed demonstration project. Any interested party may 
        comment on the proposed demonstration project to the State or 
        the Secretary during the 30-day period beginning on the date 
        the public notice is issued.
    (e) Evaluations.--Each State conducting a demonstration project 
under this section shall submit to the Secretary an annual and final 
evaluation that determines the success of the State's demonstration 
project under this section in moving people from welfare dependency to 
self-sufficiency.
    (f) Funding for Demonstration Projects.--For each State that 
conducts a demonstration project under this section--
            (1) the portion of the monthly payments that the State 
        makes to a participant in the project under subsection 
        (b)(1)(A)(ii) that is attributable to aid to families with 
        dependent children under part A of title IV of the Social 
        Security Act (42 U.S.C. 601 et seq.) shall be considered 
        expenditures under the State plan for such aid;
            (2) the expenses incurred by the State in the 
        administration of the demonstration project shall be considered 
        expenditures by the State for administrative costs in operating 
        a program under part F of title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.); and
            (3) the portion of the monthly payments that the State 
        makes to a participant in the project that is attributable to 
        the cash value of food stamp benefits under the Food Stamp Act 
        of 1977 (7 U.S.C. 2011 et seq.) shall be considered to be 
        expenditures for food stamp benefits under such Act.
    (g) Maintenance of Effort.--Any funds available for the activities 
covered by a demonstration project conducted under this section shall 
supplement, and shall not supplant, funds that are expended for similar 
purposes under any State, regional, or local program.

SEC. 111. DELAY IN CERTAIN EFFECTIVE DATES.

    In the case of a State that the Secretary of Health and Human 
Services determines requires State legislation (other than legislation 
appropriating funds) in order to meet the additional requirements 
imposed by the amendments made by section 101, 102, 104, 106, and 108, 
the State shall not be regarded as failing to comply with the 
requirements of such amendments before the first day of the first 
calendar quarter beginning after the close of the first regular session 
of the State legislature that begins after October 1, 1994, if such 
State legislature did not meet in a regular session after the date of 
the enactment of this Act and before October 1, 1994. For purposes of 
this subsection, in the case of a State that has a 2-year legislative 
session, each year of the session shall be treated as a separate 
regular session of the State legislature.

       TITLE II--IMPROVEMENTS IN THE COLLECTION OF CHILD SUPPORT

SEC. 201. TRANSMISSION AND ASSIGNMENT OF CERTAIN CHILD SUPPORT ORDERS 
              TO THE IRS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after 
paragraph (11) the following new paragraph:
            ``(12)(A) Procedures which require any State court or 
        administrative agency that issues or modifies (or has issued or 
        modified) a child support order (including an order for the 
        payment of past-due support) to transmit a copy of the order to 
        the Internal Revenue Service upon the completion of a 12-month 
        period during which less than 50 percent of the court-ordered 
        child support amount for such period has been paid.
            ``(B) Procedures which--
                    ``(i) require any individual with the right to 
                collect child support pursuant to an order issued or 
                modified in the State (whether before or after the 
                effective date of this paragraph) to be presumed to 
                have assigned to the Internal Revenue Service the right 
                to collect such support (including any past-due 
                support) pursuant to subparagraph (A), unless the 
                individual affirmatively elects to retain such right at 
                any time; and
                    ``(ii) allow any individual who has made the 
                election referred to in clause (i) to rescind or revive 
                such election at any time.''.

SEC. 202. COLLECTION OF CHILD SUPPORT BY INTERNAL REVENUE SERVICE.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following new section:

``SEC. 7524. COLLECTION OF CHILD SUPPORT.

    ``(a) In General.--The Secretary shall establish a program to 
collect child support (including past-due support) pursuant to child 
support orders which are assigned to the Internal Revenue Service under 
section 466(a)(12) of the Social Security Act.
    ``(b) Use of Wage Withholding, Etc.--Such program shall provide for 
the collection of child support required to be paid for any period 
through increases in wage withholding under chapter 24 and estimated 
tax payments under section 6654 during such period. Amounts required to 
be paid through such withholding and payments shall be treated as tax 
for purposes for this subtitle.
    ``(c) Annual Reckoning of Obligation.--
            ``(1) In general.--The entire amount of child support 
        required to be paid by any individual to the Internal Revenue 
        Service during any taxable year shall be paid--
                    ``(A) not later than the last date (determined 
                without regard to extensions) prescribed for filing 
                such individual's return of tax imposed by chapter 1 
                for such taxable year, and
                    ``(B)(i) if such return is filed not later than 
                such date, with such return, or
                    ``(ii) in any case not described in subparagraph 
                (A), in such manner as the Secretary may by regulations 
                prescribe.
            ``(2) Credit for periodic payments.--The amount required to 
        be paid under paragraph (1) shall be reduced by the aggregate 
        payments of child support made under subsection (b) by such 
        individual through increases in wage withholding and estimated 
        tax payments.
    ``(d) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid on or before the last date 
described in subsection (c)(1), the Secretary shall assess and collect 
the unpaid amount in the same manner, with the same powers, and subject 
to the same limitations applicable to a tax imposed by subtitle C the 
collection of which would be jeopardized by delay, except that--
            ``(1) for such purposes, paragraphs (4), (6), and (8) of 
        section 6334(a) (relating to property exempt from levy) shall 
        not apply, and
            ``(2) there shall be exempt from levy so much of the 
        salary, wages, or other income of an individual as is being 
        withheld therefrom in garnishment pursuant to a judgment 
        entered by a court of competent jurisdiction for the support of 
        the individual's minor children.
    ``(e) Collections Dispersed to Individual Specified in Order.--
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts collected under this section pursuant to any child 
        support order shall be paid to the individual entitled to such 
        amounts under such order as quickly as possible. Any penalties 
        and interest collected with respect to such amounts also shall 
        be paid to such individual.
            ``(2) Families receiving state assistance.--In the case of 
        an individual with respect to whom--
                    ``(A) an assignment of child support payments to a 
                State under section 402(a)(26) or 471(a)(17) of the 
                Social Security Act is in effect, or
                    ``(B) an application for State assistance under 
                section 454(6) is in effect,
        amounts collected under this section shall be paid to such 
        State pursuant to section 457 of such Act.
    ``(f) Coordination With Underpayment Provisions.--If the Secretary 
is collecting--
            ``(1) unpaid child support pursuant to an assessment under 
        this section, and
            ``(2) unpaid tax pursuant to an assessment under section 
        6203,
all amounts collected shall be treated as collected pursuant to the 
assessment under this section to the extent of the amount of such 
unpaid child support.
    ``(g) Limitation on Judicial Review.--No court of the United States 
shall have jurisdiction to hear any action, whether legal or equitable, 
brought to restrain or review any assessment or collection authorized 
by this section, nor shall any such assessment or collection be subject 
to review by the Secretary in an administrative proceeding. This 
subsection shall not preclude any legal, equitable, or administrative 
action against the State by an individual in any State court or before 
any State agency to determine his liability for any amount assessed 
against him and collected, or to recover any such amount collected from 
him, under this section.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section.''.
    (b) Estimate of Increased Internal Revenue Funding.--Within 1 year 
of the date of the enactment of this Act, the Secretary of the Treasury 
shall submit to the Congress an estimate of the additional cost per 
fiscal year for administering the program described in section 7524 of 
the Internal Revenue Code of 1986 (as added by this section).
    (c) Clerical Amendment.--The table of sections for chapter 77 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

                              ``Sec. 7524. Collection of child 
                                        support.''

SEC. 203. PUBLICATION OF DELINQUENT CHILD SUPPORT OBLIGORS.

    Section 454 (42 U.S.C. 654) is amended by striking ``and'' at the 
end of paragraph (23), by striking the period at the end of paragraph 
(24) and inserting ``; and'', and by inserting after paragraph (24) the 
following new paragraph:
            ``(25) at the option of the State, provide that with 
        respect to any child support order enforced by the State under 
        this part in which no payment has been made during a preceding 
        3-month period, the State make available for publication on a 
        semi-annual basis a listing of all such orders by name of the 
        support obligor, verified city and State address of such 
        obligor, and any other information deemed appropriate by the 
        State, and publicize the existence of such listing to such 
        support obligors.''.

SEC. 204. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall take effect on the first day of the 
first fiscal year beginning after the date of the enactment of this 
Act.
    (b) Exception.--In the case of a State that the Secretary of Health 
and Human Services determines requires State legislation (other than 
legislation appropriating funds) in order to meet the additional 
requirements imposed by the amendments made by this title, the State 
shall not be regarded as failing to comply with the requirements of 
such amendments before the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after October 1, 1994, if such State 
legislature did not meet in a regular session after the date of the 
enactment of this Act and before October 1, 1994. For purposes of this 
subsection, in the case of a State that has a 2-year 
legislative session, each year of the session shall be treated as a 
separate regular session of the State legislature.

               TITLE III--WELFARE RESTRICTIONS FOR ALIENS

SEC. 301. ELIGIBILITY OF CERTAIN ALIENS FOR CERTAIN FEDERAL BENEFITS.

    (a) Provisions Relating to Unlawful Aliens.--
            (1) Direct federal financial benefits.--
                    (A) In general.--On and after the date of the 
                enactment of this Act, notwithstanding any other 
                provision of law, no benefits shall be available under 
                the programs described in subparagraph (B) to an 
                unlawful alien (as defined in subsection (c)(2)) except 
                pursuant to a provision of the Immigration and 
                Nationality Act.
                    (B) Programs described.--The programs described in 
                this subparagraph are the following:
                            (i) The aid to families with dependent 
                        children program under title IV of the Social 
                        Security Act.
                            (ii) The medicaid program under title XIX 
                        of the Social Security Act (except for care and 
                        services for the treatment of an emergency 
                        medical condition under section 1903(v) of the 
                        Social Security Act).
                            (iii) The food stamp program under the Food 
                        Stamp Act of 1977.
                            (iv) The supplemental security income 
                        program under title XVI of the Social Security 
                        Act.
                            (v) Any Federal unemployment compensation 
                        program.
            (2) Notification of aliens.--The Federal agency 
        administering a program referred to in paragraph (1)(B) shall, 
        directly or through the States, notify any unlawful alien (as 
        defined in subsection (c)(2)) who is receiving benefits under 
        the program on the date of the enactment of this Act and whose 
        eligibility for the program is or will be terminated by reason 
        of this subsection.
    (b) Provisions Relating to Lawful Aliens.--
            (1) Reporting by federal agencies.--On and after the date 
        of the enactment of this Act, notwithstanding any other 
        provision of law, any lawful alien (as defined in subsection 
        (c)(1)) who receives benefits under a program described in 
        subsection (a)(1)(B) for more than 12 months shall be reported 
        to the Immigration and Naturalization Service and shall be 
        treated as a public charge for purposes of section 241(a)(5) of 
        the Immigration and Nationality Act.
            (2) Attribution of sponsor's income and resources to family 
        preference aliens.--On and after the date of the enactment of 
        this Act, notwithstanding any other provision of law, for 
        purposes of determining eligibility of, and the amount of 
        benefits for, a lawful alien (as defined in subsection (c)(1)) 
        under a program described in subsection (a)(1)(B)--
                    (A) the income and resources of any person who, as 
                a sponsor of such alien's entry into the United States, 
                executed an affidavit of support or similar agreement 
                with respect to such alien, and
                    (B) the income and resources of such sponsor's 
                spouse,
        shall be deemed to be the unearned income and resources of such 
        alien until such time as the alien achieves United States 
        citizenship through naturalization pursuant to chapter 2 of 
        title 3 of the Immigration and Nationality Act.
    (c) Definitions.--For the purposes of this section--
            (1) Lawful alien.--
                    (A) In general.--The term ``lawful alien'' means an 
                individual who is described in subparagraph (B) at the 
                time the individual applies for, receives, or attempts 
                to receive any Federal benefit.
                    (B) Individuals described.--An individual described 
                in this subparagraph is--
                            (i) a national of the United States,
                            (ii) an alien lawfully admitted for 
                        permanent residence,
                            (iii) an asylee,
                            (iv) a refugee,
                            (v) an alien whose deportation has been 
                        withheld under section 243(h) of the 
                        Immigration and Nationality Act, or
                            (vi) a parolee who has been paroled for a 
                        period of 1 year or more.
            (2) Unlawful alien.--The term ``unlawful alien'' means an 
        individual who is not--
                    (A) a United States citizen; or
                    (B) an individual described in paragraph (1)(B) at 
                the time the individual applies for, receives, or 
                attempts to receive any Federal benefit.

SEC. 302. STATE AFDC AGENCIES REQUIRED TO PROVIDE INFORMATION ON 
              ILLEGAL ALIENS TO THE IMMIGRATION AND NATURALIZATION 
              SERVICE.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by 
sections 102(g)(1), 108(a), and 109(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (47);
            (2) by striking the period at the end of paragraph (48) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (48) the following new 
        paragraph:
            ``(49) require the State agency to provide to the 
        Immigration and Naturalization Service the name, address, and 
        other identifying information that the agency has with respect 
        to any individual unlawfully in the United States any of whose 
        children is a citizen of the United States.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall take effect on the first 
        day of the first fiscal year beginning after the date of the 
        enactment of this Act.
            (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.
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