[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 865 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 865

To amend part A of title IV of the Social Security Act to offer States 
the option of replacing the Job Opportunities and Basic Skills Training 
 (JOBS) program with a program that would assist all recipients of aid 
to families with dependent children in achieving self-sufficiency, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 1995

  Mr. Orton introduced the following bill; which was referred to the 
  Committee on Ways and Means and, in addition, to the Committees on 
Agriculture, Commerce, and Economic and Educational Opportunities, 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 part A of title IV of the Social Security Act to offer States 
the option of replacing the Job Opportunities and Basic Skills Training 
 (JOBS) program with a program that would assist all recipients of aid 
to families with dependent children in achieving self-sufficiency, 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 ``Self-Sufficiency Act of 1995''.

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--SELF-SUFFICIENCY PROGRAM

Sec. 101. Establishment and operation of program.
Sec. 102. Child care guaranteed to participants in State self-
                            sufficiency programs.
Sec. 103. Increased Federal matching rates for child care provided by 
                            States with self-sufficiency programs.
Sec. 104. Elimination of requirement that families in States with self-
                            sufficiency programs have received AFDC for 
                            a minimum period before becoming eligible 
                            for transitional medicaid benefits or 
                            transitional child care benefits.
Sec. 105. Eligibility for transitional medicaid benefits and 
                            transitional child care benefits in States 
                            with self-sufficiency programs without 
                            regard to type of income that would 
                            otherwise result in ineligibility for 
                            benefits.
Sec. 106. Elimination of certain exceptions from requirement that minor 
                            parents and pregnant minors without 
                            children live with responsible adult in 
                            States with self-sufficiency programs.
                       TITLE II--OTHER PROVISIONS

Sec. 201. Disregard of persons who become family members after initial 
                            receipt of AFDC.
Sec. 202. Enhanced payments for participants in the self-sufficiency 
                            program.
Sec. 203. Diversion payments.
Sec. 204. Aid to families without regard to the number of parents in 
                            the home.
Sec. 205. 2-parent families ineligible for AFDC until 30 days after 
                            loss of employment.
Sec. 206. Increase in earned income disregard and elimination of time 
                            limitation on earned income disregard.
Sec. 207. Increase in asset limitations.
Sec. 208. Amendments to the Food Stamp Act of 1977.
Sec. 209. Option to impose penalty for failure to attend school.
                     TITLE III--RELATED AMENDMENTS

Sec. 301. Denial of welfare benefits to aliens.
Sec. 302. Inclusion in consumer credit reports of information on 
                            overdue child support obligations of the 
                            consumer.
Sec. 303. Quarterly payments of earned income credit.
                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                   TITLE I--SELF-SUFFICIENCY PROGRAM

SEC. 101. ESTABLISHMENT AND OPERATION OF PROGRAM.

    (a) State Plan Requirement.--Section 402(a)(29) of the Social 
Security Act is amended to read as follows:
            ``(29) at the option of the State, in lieu of the 
        requirements of paragraph (19) and part F, provide that--
                    ``(A) the State has in effect and operation a self-
                sufficiency program which meets the requirements of 
                part G;
                    ``(B)(i) not later than the end of the 3-year 
                period that begins on the date the Secretary first 
                approves the State plan under part G, the State shall 
                require not less than 30 percent of the recipients of 
                aid under the State plan (selected by the State in 
                accordance with such criteria as the State establishes 
                in regulations) to participate in the program;
                    ``(ii) not later than the end of the 5-year period 
                that begins on the date the Secretary first approves 
                the State plan under part G, the State shall require 
                not less than 50 percent of the recipients of aid under 
                the State plan (selected by the State in accordance 
                with such criteria as the State establishes in 
                regulations) to participate in the program;
                    ``(iii) not later than the end of the 8-year period 
                that begins on the date the Secretary first approves 
                the State plan under part G, the State shall require 
                not less than 75 percent of the recipients of aid under 
                the State plan (selected by the State in accordance 
                with such criteria as the State establishes in 
                regulations) to participate in the program; and
                    ``(iv) not later than the end of the 10-year period 
                that begins on the date the Secretary first approves 
                the State plan under part G, the State shall, except as 
                provided in subparagraph (C), require each recipient of 
                aid under the State plan to participate in the program;
                    ``(C) the State may not require an individual to 
                participate in the program--
                            ``(i) during a period described in clause 
                        (i), (ii), or (iii) of subparagraph (B), if the 
                        individual resides in an area of the State 
                        where the program is not available; or
                            ``(ii) if the individual is unable to 
                        meaningfully participate in the program due to 
                        a physical or psychological condition; and
                    ``(D) the amount of aid otherwise payable under the 
                State plan to a family that includes an individual who 
                fails without good cause to participate in the program, 
                comply with any term or condition of the self-
                sufficiency plan developed for the individual, or 
                accept a bona fide offer of employment shall be reduced 
                by--
                            ``(i) 25 percent for the 1st month of such 
                        failure; and
                            ``(ii) such equal increments for each of 
                        the next 24 months of such failure as will 
                        result in no benefit at the end of such 24-
                        month period;''.
    (b) Establishment and Operation of Program.--Title IV of such Act 
(42 U.S.C. 601-687) is amended by adding at the end the following:

                   ``PART G--SELF-SUFFICIENCY PROGRAM

``SEC. 491. PURPOSE AND DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to assist needy 
families with children in becoming self-sufficient.
    ``(b) Definitions.--Except to the extent otherwise provided, each 
term used in this part shall have the same meaning given the term in or 
under part A.

``SEC. 492. ESTABLISHMENT AND OPERATION OF STATE PROGRAMS.

    ``(a) General Requirements.--
            ``(1) State plan required.--
                    ``(A) In general.--Each State that is not operating 
                a program under part F may establish and operate a 
                self-sufficiency program (in this part referred to as 
                the `program') under a plan approved by the Secretary 
                as meeting the requirements of this part and section 
                402(a)(29).
                    ``(B) Contents.--The plan referred to in 
                subparagraph (A) for the program shall--
                            ``(i) describe how the State intends to 
                        implement the program during the period covered 
                        by the plan;
                            ``(ii) indicate, through cross-references 
                        to the appropriate provisions of this part and 
                        part A, that the program will be operated in 
                        accordance with such provisions of law;
                            ``(iii) contain an estimate of the number 
                        of persons to be served by the program;
                            ``(iv) describe the services to be provided 
                        within the State and the political subdivisions 
                        thereof, the needs to be addressed through the 
                        provision of such services, the extent to which 
                        such services are expected to be made available 
                        by other agencies on a nonreimbursable basis, 
                        the extent to which such services are to be 
                        provided or funded by the program, and the way 
                        in which caseworkers are to be retrained to aid 
                        in the development of self-sufficiency plans 
                        for participants in the program; and
                            ``(v) contain such additional information 
                        as the Secretary may require by regulation to 
                        enable the Secretary to determine that the 
                        State program will meet the requirements of 
                        this part and part A.
                    ``(C) Updates.--Not less frequently than every 2 
                years after the Secretary first approves a State plan 
                under this part, the State shall review and update the 
                plan in accordance with regulations prescribed by the 
                Secretary, and submit to the Secretary the updated plan 
                for approval.
            ``(2) No supplantation of non-federal funds.--Federal funds 
        made available to a State for purposes of the program shall not 
        be used to supplant non-Federal funds for existing services and 
        activities which promote the purpose of this part.
            ``(3) Reports.--Each State that establishes a self-
        sufficiency program under this part shall submit to the 
        Secretary on a biannual basis, a report on--
                    ``(A) the number of participants in the program;
                    ``(B) the number of such participants who are 
                employed on a full-time basis;
                    ``(C) the number of such participants who are 
                employed on a part-time basis; and
                    ``(D) the number of participants in the program who 
                have become ineligible for aid to families with 
                dependent children during the preceding year by reason 
                of excessive earnings.
    ``(b) Consultation.--The Secretary shall consult with the Secretary 
of Labor on general plan requirements and on criteria to be used in 
approving State plans under this section.

``SEC. 493. ASSESSMENT AND REVIEW OF NEEDS AND SKILLS OF PARTICIPANTS; 
              SELF-SUFFICIENCY PLANS.

    ``(a) Assessment.--The State agency must make an initial assessment 
of the educational, child care, and other supportive services needs as 
well as the skills, prior work experience, and employability of each 
participant in the program under this part, including a review of the 
family circumstances and the needs of any child of the participant.
    ``(b) Self-Sufficiency Plan.--On the basis of the assessment made 
with respect to a participant under subsection (a), the State agency, 
in consultation with the participant, shall develop a self-sufficiency 
plan for the participant, which--
            ``(1) explains the services (including child care and other 
        supportive services) that will be provided by the State agency 
        and the activities in which the participant will take part 
        under the program;
            ``(2) shall not require the participant to be engaged in 
        such activities for an unreasonable amount of time each week;
            ``(3) sets forth an employment goal for the participant, 
        that, to the maximum extent possible and consistent with this 
        section, reflects the preferences of the participant;
            ``(4) takes into account the participant's supportive 
        services needs, available program resources, and local 
        employment opportunities; and
            ``(5) shall not be considered a contract.
    ``(c) Agreement to Self-Sufficiency Plan.--After a self-sufficiency 
plan has been developed under subsection (b) with respect to a 
participant, the State agency shall--
            ``(1) require the participant (or the adult caretaker in 
        the family of which the participant is a member) to negotiate 
        and enter into an agreement with the State agency that 
        specifies such matters as the participant's obligations under 
        the program, the duration of participation in the program, and 
        the activities to be conducted and the services to be provided 
        in the course of such participation; and
            ``(2) give the participant such assistance as the 
        participant may require in reviewing and understanding the 
        agreement.
    ``(d) Authority To Assign Case Managers.--The State agency may 
assign to each participant in the program and the participant's family 
a case manager who is responsible for assisting the family to obtain 
any services which may be needed to assure effective participation in 
the program.

``SEC. 494. PROVISION OF PROGRAM AND EMPLOYMENT INFORMATION.

    ``(a) The State agency shall ensure that all applicants for and 
recipients of aid to families with dependent children are encouraged, 
assisted, and required to fulfill their responsibilities to support 
their children by preparing for, accepting, and retaining such 
employment as they are capable of performing.
    ``(b) The State agency shall inform all applicants for and 
recipients of aid to families with dependent children of the education, 
employment, and training opportunities, and the support services 
(including child care and health coverage transition options), for 
which they are eligible, the obligations of the State agency, and the 
rights, responsibilities, and obligations of participants in the 
program.
    ``(c) The State agency shall--
            ``(1) provide (directly or through arrangements with 
        others) information on the types and locations of child care 
        services reasonably accessible to participants in the program;
            ``(2) inform participants that assistance is available to 
        help them select appropriate child care services; and
            ``(3) on request, provide assistance to participants in 
        obtaining child care services.
    ``(d) The State agency must inform applicants for and recipients of 
aid to families with dependent children of the grounds for exemption 
from participation in the program and the consequences of refusal to 
participate if not exempt, and provide other appropriate information 
with respect to such participation.
    ``(e) Within 1 month after the State agency gives a recipient of 
aid to families with dependent children the information described in 
the preceding provisions of this subsection, the State agency must 
notify the recipient of the opportunity to indicate a desire to 
participate in the program, including a clear description of how to 
enter the program.

``SEC. 495. SERVICES AND ACTIVITIES UNDER THE PROGRAM.

    ``(a) In General.--In carrying out the program, each State may make 
available the services and activities authorized to be made available 
under part F, family counseling services, mental health treatment 
services, and such other services and activities as the State deems 
appropriate.
    ``(b) Authority To Use Amounts That Would Otherwise Be Expended for 
Food Stamp Benefits To Provide Jobs for, Subsidized Wages of, or Make 
Cash Payments to Participants.--
            ``(1) In general.--Any State may, upon mutual agreement 
        with any participant in the program--
                    ``(A) inform the Secretary of Agriculture that the 
                participant consents to have the State receive an 
                amount equal to the value of the food stamp benefits 
                that would be received, but for the operation of this 
                part, under the food stamp program (as defined in 
                section 3(h) of the Food Stamp Act of 1977) by the 
                household (as defined in section 3(i) of the Food Stamp 
                Act of 1977) of which the participant is a member;
                    ``(B) if such amount is received under section 
                16(l) of the Food Stamp Act of 1977, reserve part or 
                all of such amount; and
                    ``(C) use the amount reserved under subparagraph 
                (B) for the purpose of providing a job for, subsidizing 
                in accordance with paragraph (2) the wages of, or 
                paying cash to the participant.
            ``(2) Wage subsidy agreements.--The State may enter into an 
        agreement with an employer who agrees to provide the 
        participant with a subsidized job, under which--
                    ``(A) the State is required to pay the employer an 
                amount specified in the agreement as the subsidized 
                portion of the wages of the participant; and
                    ``(B) the employer is required to pay the 
                participant wages of not less than an amount specified 
                in the agreement.
            ``(3) Use of unreserved amounts.--A State may use for the 
        purpose of this part any amount received as a result of 
        requests submitted under paragraph (1)(A) that is not used in 
        accordance with paragraph (1)(C).

``SEC. 496. DISPUTE RESOLUTION PROCEDURES.

    ``Each State shall establish a conciliation procedure for the 
resolution of disputes involving an individual's participation in the 
program and (if the dispute involved is not resolved through 
conciliation) shall provide an opportunity for a hearing with respect 
to the dispute, which hearing may be provided through a hearing process 
established for purposes of resolving disputes with respect to the 
program or through the provision of a hearing pursuant to section 
402(a)(4). The State may not suspend, reduce, discontinue, or terminate 
aid to families with dependent children as a result of a dispute 
involving an individual's participation in the program until the 
individual has an opportunity for a hearing that meets the standards 
set forth by the United States Supreme Court in Goldberg v. Kelly, 397 
U.S. 254 (1970).

``SEC. 497. PERFORMANCE STANDARDS.

    ``(a) Not later than 3 years after the effective date of title I of 
the Self-Sufficiency Act of 1995, the Secretary shall--
            ``(1) in consultation with the Secretary of Labor, 
        representatives of organizations representing Governors, State 
        and local program administrators, educators, State job training 
        coordinating councils, community-based organizations, 
        recipients, and other interested persons, develop performance 
        standards with respect to the programs established pursuant to 
        this part; and
            ``(2) submit to the appropriate committees of jurisdiction 
        of the Congress the recommendations of the Secretary for 
        performance standards developed under paragraph (1), which 
        recommendations shall be made with respect to specific 
        measurements of outcomes and be based on the degree of success 
        which may reasonably be expected of particular States in 
        helping individuals to increase earnings, achieve self-
        sufficiency, and reduce welfare dependency, and shall not be 
        measured solely by levels of activity or participation.
Performance standards developed under this subsection shall be reviewed 
periodically by the Secretary and modified to the extent necessary.
    ``(b) The Secretary may collect information from the States to 
assist in the development of performance standards under subsection 
(a), and shall include in the regulations issued pursuant to section 
102 of the Self-Sufficiency Act of 1995 provisions establishing uniform 
reporting requirements under which States must furnish periodically 
information and data, including information and data (for each program 
activity) on the average monthly number of families assisted, the types 
of such families, the amounts spent per family, the length of their 
participation, and such other matters as the Secretary may determine.
    ``(c) The Secretary shall develop and transmit to the Congress, for 
appropriate legislative action, a proposal for measuring State 
progress, providing technical assistance to enable States to meet 
performance standards, and modifying the Federal matching rate to 
reflect the relative effectiveness of the various States in carrying 
out the program.

``SEC. 498. COORDINATION REQUIREMENTS.

    ``(a)(1) The Governor of each State shall assure that program 
activities under this part are coordinated in that State with programs 
operated under the Job Training Partnership Act and with any other 
relevant employment, training, and education programs available in that 
State. Appropriate components of the State's plan developed under 
section 492(a)(1) which relate to job training and work preparation 
shall be consistent with the coordination criteria specified in the 
Governor's coordination and special services plan required under 
section 121 of the Job Training Partnership Act.
    ``(2) The State plan so developed shall be submitted to the State 
job training coordinating council not less than 60 days before its 
submission to the Secretary, for the purpose of review and comment by 
the council. Concurrent with submission of the plan to the State job 
training coordinating council, the proposed State plan shall be 
published and made reasonably available to the general public through 
local news facilities and public announcements, in order to provide the 
opportunity for review and comment.
    ``(3) The comments and recommendations of the State job training 
coordinating council under paragraph (2) shall be transmitted to the 
Governor of the State.
    ``(b) The Secretary of Health and Human Services shall consult with 
the Secretaries of Education and of Labor on a continuing basis for the 
purpose of assuring the maximum coordination of education and training 
services in the development and implementation of the program under 
this part.
    ``(c) The State agency responsible for administering or supervising 
the administration of the State plan approved under part A shall 
consult with the State education agency and the agency responsible for 
administering job training programs in the State in order to promote 
coordination of the planning and delivery of services under the program 
with programs operated under the Job Training Partnership Act and with 
education programs available in the State (including any program under 
the Adult Education Act or Carl D. Perkins Vocational Education 
Act).''.
    (c) Funding.--Section 403 of such Act (42 U.S.C. 603) is amended by 
adding at the end the following:
    ``(o)(1) Each State with a plan approved under part G shall be 
entitled to payments under paragraph (6) for any fiscal year in an 
amount equal to the sum of the applicable percentages (specified in 
paragraph (6)) of its expenditures to carry out the program under part 
G during the fiscal year (subject to limitations prescribed by or 
pursuant to such part or this section on expenditures that may be 
included for purposes of determining payment under paragraph (6)), but 
such payments with respect to the State for the fiscal year may not 
exceed the limitation determined under paragraph (2) 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--
            ``(A) the amount allotted to the State for fiscal year 1987 
        under part C as then in effect, plus
            ``(B) 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 paragraph 
        (4)) in the State in the immediately preceding fiscal year 
        bears to the average monthly number of such recipients in all 
        of the States for the immediately preceding fiscal year.
    ``(3) The amount specified in this paragraph is $1,300,000,000, 
reduced by the aggregate amount allotted to all the States for fiscal 
year 1987 pursuant to part C as then in effect.
    ``(4) For purposes of this subsection, the term `adult recipient' 
means, with respect to a State, an individual other than a dependent 
child (unless the child is the custodial parent of another dependent 
child) whose needs are met (in whole or in part) with payments of aid 
to families with dependent children under the State plan approved under 
this part.
    ``(5) None of the funds available to a State for purposes of the 
programs or activities conducted under part G shall be used for 
construction.
    ``(6)(A) In lieu of any payment under subsection (a) or (l), the 
Secretary shall pay to each State with a plan approved under part G 
with respect to expenditures by the State to carry out a program under 
part G, an amount equal to--
            ``(i) with respect to so much of such expenditures in a 
        fiscal year as do not exceed the State's expenditures in the 
        fiscal year 1987 with respect to which payments were made to 
        the State from its allotment for such fiscal year pursuant to 
        part C as then in effect, 90 percent; and
            ``(ii) with respect to so much of such expenditures in a 
        fiscal year as exceed the amount described in clause (i)--
                    ``(I) 50 percent, in the case of expenditures for 
                administrative costs made by a State in operating such 
                a program for such fiscal year (other than the 
                personnel costs for staff employed full-time in the 
                operation of such program) and the costs of 
                transportation and other work-related supportive 
                services under section 402(g)(2), and
                    ``(II) the greater of 60 percent or 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), in the case of expenditures made 
                by a State in operating such a program for such fiscal 
                year (other than for costs described in subclause (I)).
    ``(B) With respect to the amount for which payment is made to a 
State under subparagraph (A)(i), the State's expenditures for the costs 
of operating a program established under part G may be in cash or in 
kind, fairly evaluated.''.
    (d) States Operating Self-Sufficiency Plans Entitled to Half of 
Resulting Savings.--Section 403 of such Act (42 U.S.C. 603), as amended 
by subsection (c) of this section, is amended by adding at the end the 
following:
    ``(p)(1) In addition to any other payment under this part, each 
State with a plan approved under part G for a fiscal year shall be 
entitled to receive from the Secretary during the immediately 
succeeding fiscal year an amount equal to \1/2\ of the amount (if any) 
by which--
            ``(A) the total amount paid to the State under this part 
        for the immediately preceding fiscal year, adjusted in 
        accordance with paragraph (2); exceeds
            ``(B) the total amount paid to the State under this part 
        for the fiscal year.
    ``(2) The Director of the Office of Management and Budget shall 
adjust the amount described in paragraph (1)(A) for a State with 
respect to a fiscal year, in direct proportion to--
            ``(A) the net change (if any) during the fiscal year in the 
        Consumer Price Index for All Urban Consumers; and
            ``(B) the net change (if any) during the fiscal year in the 
        number of individuals eligible for aid under the State plan 
        approved under this part, without regard to whether such 
        individuals have applied for such aid.
    ``(3) Each State to which funds are paid under this subsection may 
not use such funds for any purpose other than the purposes for which 
funds may be used under this part.''.
    (e) Regulations.--
            (1) In general.--The Secretary, in consultation with the 
        Secretary of Labor and with the responsible State agencies 
        described in section 492(a)(2) of the Social Security Act, 
        shall prescribe such regulations as may be necessary to 
        implement the amendments made by this section, including 
        regulations establishing uniform data collection requirements.
            (2) Deadline for issuance of proposed regulations.--Not 
        later than 3 months after the date of the enactment of this 
        Act, the Secretary of Health and Human Services shall issue 
        proposed regulations pursuant to paragraph (1).
            (3) Deadline for issuance of final regulations.--Not later 
        than 9 months after the date of the enactment of this Act, the 
        Secretary shall issue final regulations pursuant to paragraph 
        (1).

SEC. 102. CHILD CARE GUARANTEED TO PARTICIPANTS IN STATE SELF-
              SUFFICIENCY PROGRAMS.

    Section 402(g)(1)(A)(i) of the Social Security Act (42 U.S.C. 
602(g)(1)(A)(i)) is amended--
            (1) by striking ``and'' at the end of subclause (I);
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding after and below the end the following:
            ``(III) for each individual who is participating in the 
        State program established under part G in accordance with the 
        self-sufficiency plan established for the individual under 
        section 492.''.

SEC. 103. INCREASED FEDERAL MATCHING RATES FOR CHILD CARE PROVIDED BY 
              STATES WITH SELF-SUFFICIENCY PROGRAMS.

    (a) AFDC and Transitional Child Care.--Section 402(g)(3)(A) of such 
Act (42 U.S.C. 602(g)(3)(A)) is amended by adding at the end the 
following:
    ``(iii) In the case of a State with a plan approved under part G 
for the fiscal year, the applicable rate for purposes of section 403(a) 
shall be the rate otherwise determined under this subparagraph, 
increased by 10 percentage points.''.
    (b) At-Risk Child Care.--Section 403(n)(1)(A) of such Act (42 
U.S.C. 603(n)(1)(A)) is amended by inserting ``(increased by 10 
percentage points, in the case of a State with a plan approved under 
part G)'' before ``of the expenditures''.

SEC. 104. ELIMINATION OF REQUIREMENT THAT FAMILIES IN STATES WITH SELF-
              SUFFICIENCY PROGRAMS HAVE RECEIVED AFDC FOR A MINIMUM 
              PERIOD BEFORE BECOMING ELIGIBLE FOR TRANSITIONAL MEDICAID 
              BENEFITS OR TRANSITIONAL CHILD CARE BENEFITS.

    (a) Medicaid.--Section 1925(a)(1) of the Social Security Act (42 
U.S.C. 1396r-6(a)(1)) is amended by inserting ``(or, in a State with an 
approved plan under part G of title IV, during any of the 6 months)'' 
after ``6 months''.
    (b) Transitional Child Care.--Section 402(g)(1)(A)(iv) of such Act 
(42 U.S.C. 602(g)(1)(A)(iv)) is amended by inserting ``in a State that 
does not have a plan approved under part G'' after ``A family''.

SEC. 105. ELIGIBILITY FOR TRANSITIONAL MEDICAID BENEFITS AND 
              TRANSITIONAL CHILD CARE BENEFITS IN STATES WITH SELF-
              SUFFICIENCY PROGRAMS WITHOUT REGARD TO TYPE OF INCOME 
              THAT WOULD OTHERWISE RESULT IN INELIGIBILITY FOR 
              BENEFITS.

    (a) Medicaid.--Section 1925(a)(1) of the Social Security Act (42 
U.S.C. 1396r-6(a)(1)) is amended by inserting ``, the receipt of any 
income of the caretaker relative (in the case of a State with an 
approved plan under part G of title IV),'' after ``subsection (e))''.
    (b) Transitional Child Care.--Section 402(g)(1)(A)(ii) of such Act 
(42 U.S.C. 602(g)(1)(A)(ii)) is amended by striking ``, or increased 
income from, such employment or by reason of subsection 
(a)(8)(B)(ii)(II)'' and inserting ``such employment, by reason of 
subsection (a)(8)(B)(ii)(II), increased income from such employment if 
the State does not have a plan approved under part G, or excessive 
income if the State has such a plan''.

SEC. 106. ELIMINATION OF CERTAIN EXCEPTIONS FROM REQUIREMENT THAT MINOR 
              PARENTS AND PREGNANT MINORS WITHOUT CHILDREN LIVE WITH 
              RESPONSIBLE ADULT IN STATES WITH SELF-SUFFICIENCY 
              PROGRAMS.

    Clauses (iv) and (v) of section 402(a)(43)(B) of the Social 
Security Act (42 U.S.C. 602(a)(43)(B) (iv) and (v)) are each amended by 
inserting ``, and the State does not have a plan approved under part 
G'' before the semicolon.

                       TITLE II--OTHER PROVISIONS

SEC. 201. DISREGARD OF PERSONS WHO BECOME FAMILY MEMBERS AFTER INITIAL 
              RECEIPT OF AFDC.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (44);
            (2) by striking the period at the end of paragraph (45) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (45) the following:
            ``(46) if the State has a plan approved under part G, at 
        the option of the State, provide that, in determining the 
        amount of aid payable under the State plan to a family--
                    ``(A) except as provided in subparagraph (B), the 
                family shall not be regarded as having more members 
                than the number of such members at the time the family 
                first becomes a recipient of aid under the State plan; 
                and
                    ``(B) if the State has exercised the option 
                provided under section 406(b) with respect to aid for 
                pregnant women, a 1-parent or 2-parent family that 
                includes a pregnant woman and no children shall not be 
                regarded as having more members than the number of such 
                members immediately after the end of the pregnancy.''.

SEC. 202. ENHANCED PAYMENTS FOR PARTICIPANTS IN THE SELF-SUFFICIENCY 
              PROGRAM.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by section 201 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:
            ``(47) if the State has a plan approved under part G, at 
        the option of the State, provide that the amount of aid 
        otherwise payable on a monthly basis to a family under the 
        State plan shall be increased by not more than $50 if each 
        member of the family who is required to participate in a self-
        sufficiency program established by the State under part G does 
        so on a full-time basis.''.

SEC. 203. DIVERSION PAYMENTS.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)), as amended by sections 201 and 202 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:
            ``(48) if the State has a plan approved under part G, at 
        the option of the State, provide that, if the caseworker for a 
        family who is eligible for, but not receiving, aid under the 
        State plan determines that the caretaker relative in the family 
        will be employed by the end of the 3-month period that begins 
        with the date the family will become a recipient of such aid 
        and that, upon such employment, the family will not need 
        further assistance, then the State shall, in lieu of the first 
        3 monthly payments of such aid to the family, pay to the 
        family, in a lump sum, an amount equal 3 times the amount of 
        the first such monthly payment, on the date the first such 
        monthly payment would otherwise be made, and subsequent 
        payments (if any) of such aid to the family shall be reduced 
        (but not below zero) by an amount sufficient to recover the 
        amount of the lump-sum payment.''.
    (b) 3 Months of Child Care for Families Receiving a Diversion 
Payment.--Section 402(g)(1)(A)(i) of such Act (42 U.S.C. 
602(g)(1)(A)(i)), as amended by section 102 of this Act, is amended--
            (1) by striking ``and'' at the end of subclause (II);
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding after and below the end the following:
            ``(IV) for 3 months, for each family with a dependent child 
        requiring such care if the family receives a diversion payment 
        under subsection (a)(48).''.
    (c) Medicaid for Families Receiving a Diversion Payment.--Section 
1902(a)(10)(A)(i)(I) of such Act (42 U.S.C. 1396a(a)(10)(A)(i)(I)) is 
amended by inserting ``, and including individuals receiving assistance 
under section 402(a)(48)'' after ``482(e)(6)''.

SEC. 204. AID TO FAMILIES WITHOUT REGARD TO THE NUMBER OF PARENTS IN 
              THE HOME.

    (a) In General.--
            (1) Section 402(a)(41) of the Social Security Act (42 
        U.S.C. 602(a)(41)) is amended by inserting ``if the State does 
        not have a plan approved under part G (otherwise, at the option 
        of the State),'' after ``(41)''.
            (2) Section 407(a) of such Act (42 U.S.C. 607(a)) is 
        amended by inserting ``if the State does not have a plan 
        approved under part G (otherwise, at the option of the 
        State),'' after ``shall,''.
    (b) Conforming Amendments.--
            (1) Section 402(a)(38)(B) of such Act (42 U.S.C. 
        602(a)(38)(B)) is amended by inserting ``, if the State 
        exercises the option provided under paragraph (41),'' after 
        ``406(a) or''.
            (2) Section 406(a)(1) of such Act (42 U.S.C. 606(a)(1)) is 
        amended by inserting ``, if a resident of a State that has 
        exercised the option provided under section 402(a)(41),'' after 
        ``(1) who''.
            (3) Section 406(b)(1) of such Act (42 U.S.C. 606(b)(1)) is 
        amended by inserting ``, in the case of a State that has 
        exercised the option provided under section 402(a)(41),'' after 
        ``mental incapacity of a parent or''.
            (4) Section 472(a) of such Act (42 U.S.C. 672(a)) is 
        amended by inserting ``, in the case of a State that has 
        exercised the option provided under section 402(a)(41),'' after 
        ``406(a) or''.
            (5) Section 473(a)(2)(A)(i) of such Act (42 U.S.C. 
        672(a)(2)(A)(i)) is amended by inserting ``, in the case of a 
        State that has exercised the option provided under section 
        402(a)(41),'' after ``406(a) or''.

SEC. 205. 2-PARENT FAMILIES INELIGIBLE FOR AFDC UNTIL 30 DAYS AFTER 
              LOSS OF EMPLOYMENT.

    Section 402(a)(10) of the Social Security Act (42 U.S.C. 
602(a)(10)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by adding ``and'' at the end of subparagraph (B); and
            (3) by adding at the end the following:
            ``(C) notwithstanding subparagraph (B), if the State has a 
        plan approved under part G, at the option of the State, provide 
        that an application for aid under the plan that is submitted on 
        behalf of a family that includes 2 unemployed parents shall not 
        be effective until the end of the 30-day period that begins 
        with the most recent date of employment of either such 
        parent;''.

SEC. 206. INCREASE IN EARNED INCOME DISREGARD AND ELIMINATION OF TIME 
              LIMITATION ON EARNED INCOME DISREGARD.

    Section 402(a)(8) of the Social Security Act (42 U.S.C. 602(a)(8)) 
is amended--
            (1) by striking ``one-third of the remainder thereof'' and 
        inserting ``(aa) in the case of a State which does not have a 
        plan approved under part G, \1/3\ of the remainder thereof, or, 
        (bb) in the case of a State which has such a plan, whichever of 
        the following (but not both) as the State shall elect to 
        disregard: (1) not more than \1/2\ of the remainder thereof, or 
        (2) all earned income of the caretaker relative (if the 
        caretaker relative has not attained 20 years of age) which is 
        derived from a summer youth employment and training program 
        carried out under part B of title II of the Job Training 
        Partnership Act (29 U.S.C. 1630 et seq.)''; and
            (2) in subparagraph (B)(ii), by striking ``(ii)(I)'' and 
        inserting ``(ii) at the option of the State (I)''.

SEC. 207. INCREASE IN ASSET LIMITATIONS.

    Section 402(a)(7)(B) of the Social Security Act (42 U.S.C. 
602(a)(7)(B)) is amended--
            (1) by inserting ``(or, in the case of a State which has a 
        plan approved under part G, $2,000)'' after ``$1,000''; and
            (2) in clause (i)--
                    (A) by striking ``so much of''; and
                    (B) by striking ``as does not exceed such amount as 
                the Secretary may prescribe''.

SEC. 208. AMENDMENTS TO THE FOOD STAMP ACT OF 1977.

    (a) Exclusion From Income.--Section 5(d) of the Food Stamp Act of 
1977 (7 U.S.C. 2014(d)) is amended--
            (1) by striking ``and (16)'' and inserting ``(16)'', and
            (2) by inserting before the period at the end the 
        following:
``, and (17) at the option of the State agency, not more than $90 per 
month during the 1-year period beginning on the date a household member 
completes participation in the program established by a State under 
part G of title IV of the Social Security Act''.
    (b) Deduction.--Section 5(e) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)) is amended by adding at the end the following:
``All households that include a member who is a full-time participant 
in the program established by a State under part G of title IV of the 
Social Security Act shall be allowed a deduction of $100 in each month 
of participation in such program.''.
    (c) Employment Cash Out 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)(1) If a State that has a plan approved under part G of title 
IV of the Social Security Act informs the Secretary that an individual 
who--
            ``(A) is engaged on a full-time basis in activities under 
        the self-sufficiency plan in effect under part G of title IV of 
        the Social Security Act;
            ``(B) is a member of household all of whose members receive 
        benefits under a State plan approved under part A of title IV 
        of the Social Security Act; and
            ``(C) consents to have the State receive an amount equal to 
        the value of the food stamp benefits that would be received 
        under the food stamp program by such household but for the 
        operation of this subsection, then paragraph (2) shall apply 
        with respect to such amount, such State, and such household.
    ``(2)(A) The Secretary shall pay such amount to the State.
    ``(B) The State shall expend such amount with respect to such 
individual in accordance with subsection (b) of section 495 of the 
Social Security Act.
    ``(C) For purposes of--
            ``(i) sections 5 and 8(a) of this Act, such amount shall be 
        excluded from household income and resources; and
            ``(ii) section 8(b) of this Act, such amount shall be 
        considered as the value of an allotment provided to the 
        household.
    ``(D) Such household shall not receive food stamp benefits from the 
State agency for the period during which the member continues to be 
employed in a job provided, to receive such wages subsidized, or to 
receive such cash payments made under such section.''.
    (d) Effective Date and Application of Amendments.--The amendments 
made by this section shall not apply with respect to certification 
periods beginning before the effective date of this Act.

SEC. 209. OPTION TO IMPOSE PENALTY FOR FAILURE TO ATTEND SCHOOL.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201, 202, and 203(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:
            ``(49) if the State has a plan approved under part G, 
        provide that if a member of a family receiving aid under the 
        State plan approved under this part who is required by State 
        law to attend school fails without good cause (as determined by 
        the State) to maintain satisfactory school attendance (as 
        defined by the State), the State may disregard part or all of 
        the needs of the family member in making the determination with 
        respect to the family under paragraph (7).''.

SEC. 210. OPTION TO IMPOSE PENALTY FOR FAILURE TO HAVE CHILDREN 
              IMMUNIZED.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by sections 201, 202, 203(a), and 209 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (48);
            (2) by striking the period at the end of paragraph (49) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (49) the following:
            ``(50) if the State has a plan approved under part G, 
        provide that the State may impose such penalties as the State 
        deems appropriate on a recipient of aid under the State plan 
        approved under this part whose dependent child has not received 
        immunizations in accordance with the then most recent 
        recommendations of the public health department (or equivalent) 
        of the State.''.

                     TITLE III--RELATED AMENDMENTS

SEC. 301. DENIAL OF WELFARE BENEFITS TO ALIENS.

    (a) Welfare Benefits Denied to Illegal Aliens.--An alien who is 
unlawfully present in the United States shall not be eligible for 
benefits or services under any Federal or federally assisted program 
which provides benefits or services based, in whole or in part, on 
need.
    (b) State Option To Deny Welfare Benefits to Other Aliens.--A State 
that is operating a federally assisted program under which eligibility 
for benefits or services is based, in whole or in part, on need may 
deny benefits and services under the program to any alien who is 
lawfully present in the United States.

SEC. 302. INCLUSION IN CONSUMER CREDIT REPORTS OF INFORMATION ON 
              OVERDUE CHILD SUPPORT OBLIGATIONS OF THE CONSUMER.

    (a) Provision to Consumer Reporting Agencies of Information on 
Overdue Child Support Obligations of Absent Parents.--Section 466(a)(7) 
of the Social Security Act (42 U.S.C. 666(a)(7)) is amended--
            (1) by striking ``will'' and inserting ``shall'';
            (2) by striking ``upon the request of such agency'';
            (3) by inserting ``and'' before ``(B)''; and
            (4) by striking ``, and (C)'' and all that follows through 
        ``State''.
    (b) Inclusion in Definition of Overdue Support of Child Support 
Delinquencies Owed With Respect to Adults.--Section 466(e) of such Act 
(42 U.S.C. 666(e)) is amended by inserting ``For purposes of subsection 
(a)(7), overdue support includes support owed to or on behalf of a 
child who is not a minor.'' after the 1st sentence.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the 1st day of the 1st calendar quarter that begins 6 or more 
months after the date of the enactment of this Act.

SEC. 303. QUARTERLY PAYMENTS OF EARNED INCOME CREDIT.

    (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. QUARTERLY PAYMENTS BY DEPARTMENT OF TREASURY OF EARNED 
              INCOME CREDIT.

    ``(a) In General.--The Secretary shall establish a program under 
which eligible individuals receive, upon request, advance payments from 
the Secretary of the credit under section 32 (relating to earned income 
tax credit).
    ``(b) Payments.--
            ``(1) Frequency.--The payments under the program 
        established pursuant to subsection (a) shall be made not less 
        frequently than quarterly.
            ``(2) Amount.--The amount paid to any individual for any 
        period during a calendar year shall be such period's 
        proportionate share of the Secretary's estimate of the 
        overpayment of tax by such individual (for the taxable year 
        ending with or within such calendar year) which is attributable 
        to the credit referred to in subsection (a).
    ``(c) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means, with respect to a calendar year, any 
individual if--
            ``(1) the credit referred to in subsection (a) is allowable 
        to such individual for the taxable year ending with or within 
        such calendar year,
            ``(2) the liability for tax imposed by subtitle A is 
        reasonably expected to be less than the amount of the credit 
        which is reasonably expected to be allowed for such taxable 
        year, and
            ``(3) such individual provides the Secretary with such 
        information as the Secretary requires in order to determine the 
        amounts payable under this section.''.
    (b) Coordination With Credit on Return.--Paragraph (1) of section 
32(g) of such Code is amended by inserting ``or by the Secretary under 
section 7524'' after ``section 3507''.
    (c) Clerical Amendment.--The table of sections for such chapter 77 
is amended by adding at the end the following new item:

                              ``Sec. 7524. Quarterly payments of earned 
                                        income credit.''
    (d) Appropriation.--There are hereby appropriated such sums as are 
necessary to make the payments under section 7524 of the Internal 
Revenue Code of 1986, as added by this section.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect 6 months after the date 
of the enactment of this Act.
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