[Congressional Record Volume 140, Number 37 (Monday, April 11, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 11, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. WOFFORD:
  S. 2007. A bill to require the Secretary of the Treasury to mint 
coins in commemoration of the 50th anniversary of the end of World War 
II and Gen. George C. Marshall's service therein; to the Committee on 
Banking, Housing, and Urban Affairs.


           george c. marshall commemorative coin act of 1994

 Mr. WOFFORD. Mr. President, this year we are marking the 50th 
anniversary of many critical events of World War II. As we honor the 
heroes of World War II, none are more deserving than George C. 
Marshall, a Pennsylvanian, who commanded over 8 million soldiers in the 
U.S. Armed Forces and led the allies in 1944. He chose some of the most 
highly regarded officers of the war in Eisenhower, Bradley, Ridgeway, 
Stillwell, Patton, and Gavin.
  On this day, April 11th, 48 years ago, General Marshall received 
permanent Five Star General rank, and with that honor, he earned the 
title of General of the Army. But Marshall was more than a leader of 
the Armed Forces. After the war, President Truman appointed him 
Secretary of State. In this role, he developed a comprehensive economic 
plan to assist war-torn Europe. The Marshall plan earned the General 
the Nobel Peace Prize in 1953. He is still the only professional 
soldier ever so honored.
  To commemorate World War II and General Marshall's legacy, I 
introduce the George C. Marshall Coin Act of 1994. This bill will 
authorize the minting of a coin in honor of General Marshall, and the 
proceeds would be used for the construction of the George C. Marshall 
Memorial and Visitors Center in Uniontown, PA, his boyhood home. The 
Marshall Center will become a destination for students, scholars, and 
visitors interested in learning more about the General's formative 
years, his leading role in organizing the Civilian Conservation Corps 
in the 1930's, his experiences in World War II, and all his 
extraordinary accomplishments.
  President Truman once said of Marshall that ``his standards of 
character, conduct, and efficiency inspired the entire army, nation, 
and the world.'' We owe it to our children to educate them not only of 
the horrors of World War II, but also of its heroes.
  I urge my colleagues to support this bill, and I ask unanimous 
consent that the full text of the bill be placed in the Record 
following my statement.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2007

       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 ``George C. Marshall 
     Commemorative Coin Act of 1994''.

     SEC. 2. COIN SPECIFICATIONS.

       (a) $1 Silver Coins.--The Secretary of the Treasury 
     (hereafter in this Act referred to as the ``Secretary'') 
     shall mint and issue not more than 500,000 $1 coins, which 
     shall--
       (1) weigh 26.73 grams;
       (2) have a diameter of 1.500 inches; and
       (3) contain 90 percent silver and 10 percent copper.
       (b) Legal Tender.--The coins issued under this Act shall be 
     legal tender, as provided in section 5103 of title 31, United 
     States Code.
       (c) Numismatic Items.--For purposes of section 5134 of 
     title 31, United States Code, the coins minted under this Act 
     shall be considered to be numismatic items.

     SEC. 3. SOURCES OF BULLION.

       The Secretary shall obtain silver for minting coins under 
     this Act only from stockpiles established under the Strategic 
     and Critical Materials Stock Piling Act.

     SEC. 4. DESIGN OF COINS.

       (a) Design Requirements.--
       (1) In general.--The design of the coins minted under this 
     Act shall have the likeness of George C. Marshall on the 
     obverse side of such coins.
       (2) Designation and inscriptions.--On each coin minted 
     under this Act there shall be--
       (A) a designation of the value of the coin;
       (B) an inscription of the year ``1995''; and
       (C) inscriptions of the words ``Liberty'', ``In God We 
     Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (b) Selection.--The design for the coins minted under this 
     Act shall be--
       (1) selected by the Secretary after consultation with the 
     Friends of George C. Marshall and the Commission of Fine 
     Arts; and
       (2) reviewed by the Citizens Commemorative Coin Advisory 
     Committee.

     SEC. 5. ISSUANCE OF COINS.

       (a) Quality of Coins.--Coins minted under this Act shall be 
     issued in uncirculated and proof qualities.
       (b) Mint Facility.--Only 1 facility of the United States 
     Mint may be used to strike any particular quality of the 
     coins minted under this Act.
       (c) Commencement of Issuance.--The Secretary may issue 
     coins minted under this Act beginning January 1, 1995.
       (d) Termination of Minting Authority.--No coins may be 
     minted under this Act after December 31, 1995.

     SEC. 6. SALE OF COINS.

       (a) Sale Price.--The coins issued under this Act shall be 
     sold by the Secretary at a price equal to the sum of--
       (1) the face value of the coins;
       (2) the surcharge provided in subsection (d) with respect 
     to such coins; and
       (3) the cost of designing and issuing the coins (including 
     labor, materials, dies, use of machinery, overhead expenses, 
     marketing, and shipping).
       (b) Bulk Sales.--The Secretary shall make bulk sales of the 
     coins issued under this Act at a reasonable discount.
       (c) Prepaid Orders.--
       (1) In general.--The Secretary shall accept prepaid orders 
     for the coins minted under this Act before the issuance of 
     such coins.
       (2) Discount.--Sale prices with respect to prepaid orders 
     under paragraph (1) shall be at a reasonable discount.
       (d) Surcharges.--All sales shall include a surcharge of $7 
     per coin.

     SEC. 7. GENERAL WAIVER OF PROCUREMENT REGULATIONS.

       (a) In General.--Except as provided in subsection (b), no 
     provision of law governing procurement or public contracts 
     shall be applicable to the procurement of goods and services 
     necessary for carrying out the provisions of this Act.
       (b) Equal Employment Opportunity.--Subsection (a) shall not 
     relieve any person entering into a contract under the 
     authority of this Act from complying with any law relating to 
     equal employment opportunity.

     SEC. 8. DISTRIBUTION OF SURCHARGES.

       (a) In General.--All surcharges received by the Secretary 
     from the sale of coins issued under this Act shall be 
     promptly paid by the Secretary to the Friends of George C. 
     Marshall to be used solely for the construction of the George 
     C. Marshall Memorial and Visitor Center in Uniontown, 
     Pennsylvania.
       (b) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the Friends of George C. 
     Marshall as may be related to the expenditures of amounts 
     paid under subsection (a).

     SEC. 9. FINANCIAL ASSURANCES.

       (a) No Net Cost to the Government.--The Secretary shall 
     take such actions as may be necessary to ensure that minting 
     and issuing coins under this Act will not result in any net 
     cost to the United States Government.
       (b) Payment for Coins.--A coin shall not be issued under 
     this Act unless the Secretary has received--
       (1) full payment for the coin;
       (2) security satisfactory to the Secretary to indemnify the 
     United States for full payment; or
       (3) a guarantee of full payment satisfactory to the 
     Secretary from a depository institution whose deposits are 
     insured by the Federal Deposit Insurance Corporation or the 
     National Credit Union Administration Board.
                                 ______

      By Mr. HARKIN (for himself, Mr. Bond and Mr. Stevens):
  S. 2009. 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.


                Welfare to self-sufficiency Act of 1994

 Mr. HARKIN. Mr. President, today my distinguished colleague 
from Missouri, Kit Bond and I are introducing the first bipartisan plan 
to reform welfare--the Welfare to Self-Sufficiency Act.
  Mr. President, our welfare system is failing the people it was 
designed to help and it is failing the American taxpayers. It must be 
fundamentally overhauled.
  I would like to begin with a simple definition of welfare from the 
Random House Dictionary. Welfare is ``the good fortune, health, 
happiness, prosperity, etc. of a person, group or organization.''
  This simple definition effectively demonstrates just how badly broken 
our welfare system really is. I do not believe there is anyone who 
believes that our welfare programs promote the good fortune, health, 
happiness, and prosperity of the recipients. So it seems that the real 
question is, How did we get so far off the track?
  As many of my colleagues know, our current welfare system had its 
beginning in the 1930's with the creation of aid to dependent children. 
Policymakers believed that children would be happier and more 
prosperous if left in their own homes rather than being sent off to an 
institution. At that time, the death of the father usually created the 
need for public assistance.
  Well, times have certainly changed. Now, most families receiving AFDC 
are still headed by single parents. However, most of the parents are 
unmarried, not widowed. Incredible societal changes have created this 
significant shift.
  Not too long ago, a high school dropout could get a high-paying 
factory job, that would more than meet the needs of the family. In the 
1990's this is no longer true. A worker needs to be better educated and 
more skilled in order to provide a decent income for the family.
  And finally, most families today need two incomes in order to 
survive. In few families is one income sufficient.
  These changes have created the need for a vastly different kind of 
welfare system--one that does not keep parents at home, but prepares 
and supports working families. These changes require a system that 
provides financial support for children from both parents--even if the 
parents are divorced or were never married. We now view welfare as a 
safety net. That's wrong. A net binds and traps. And that's exactly how 
people on welfare feel--trapped by the safety net.
  Trapped by a system that does not reward work and encourages 
dependence. Trapped in a cycle of poverty that is virtually impossible 
to escape. Trapped in programs that are more interested in filling out 
forms than helping people find jobs and become self-sufficient.
  The first positive contribution we can make to this debate is to stop 
referring to welfare as a safety net. On many occasions, I have 
described what I believe welfare should be--a ladder, or ramp of 
opportunity; a program that helps people help themselves and supports 
them along the way; a system that empowers people and rewards 
initiative; a plan that does not judge and punish families.
  I have talked with a lot of families on welfare. I have also visited 
with a lot of welfare caseworkers. I have talked with policymakers and 
concerned citizens. This is what I have learned.
  Familes on AFDC love their children and want to make their lives 
better. Most hate being on welfare. They want to get off of welfare and 
they want to do it now. They want to be self-sufficient and they 
desperately want to work. They don't want to wait--they want to work 
right now.
  Social workers believe they spend too much time filling out forms and 
too little time helping people. The focus on error rates instead of 
graduation rates and job placements.
  Policymakers and concerned citizens are troubled by escalating 
poverty rates, increases AFDC caseloads, and rising costs. Everyone is 
concerned about the impact on children and everyone agrees that we must 
reform the welfare system.
  Mr. President, there are over 9 million children on welfare--that is 
more than three times the number of people that live in the entire 
state of Iowa. Without reform, these children will languish on the 
welfare rolls and may likely end up on welfare as adults. Welfare 
reform must focus on breaking this cycle and the legislation we are 
introducing will do just that.
  The Welfare to Self-Sufficiency Act provides welfare recipients with 
the support and skills they need to become self-sufficient and move off 
of welfare. The bill provides incentives to encourage families to work 
and save and demands welfare recipients take responsibility for their 
families by requiring them to sign a binding contract, tailored to 
their specific situation. This contract outlines the steps an 
individual family will take to reach self-sufficiency and states when 
welfare benefits will end.
  This is a very important point and one that I would like to stress. 
These are individual agreements based on the unique circumstances of 
the family. This is not one-size-fits-all welfare reform.
  The contract, or Family Investment Agreement, is a two-way street. If 
a contract specifies that the State will provide education, training or 
child care, then the State must provide those services. The same would 
apply to a family that needed assistance to improve parenting skills or 
other temporary community services. Failure to do so will nullify the 
contract. The State would be unable to reduce benefits for the family 
in that situation.
  Likewise, failure by the recipient to live up the terms of the 
agreement will result in default, leading to reduction and termination 
of welfare benefits. The bill allows renegotiation of the agreement to 
deal with significant changes in family circumstances and provides 
appeal procedures. Further, an inquiry will be made by a third party 
prior to benefit termination to make sure the children will be 
protected.
  The plan is based on a simple premise--Government is a contract. The 
Government has a responsibility to offer a hand up, and individuals 
have a responsibility to grab onto it.
  Mr. President, this is a realistic and responsible welfare reform 
plan. It focuses on establishing the framework to help make families 
self-sufficient and I believe this program will help break the welfare 
cycle for many families by providing incentives to work and save.
  I am deeply troubled by the fact that so families are forced to 
return to the welfare rolls. Many point to the fact that most families 
that are off of welfare are on the program for less than 2 years to 
justify a 2-year time limit on benefits. This argument ignores the fact 
that many of the families will return after a short period of 
employment or that for others, it is just a return visit to the welfare 
system.
  Therefore, welfare reform must focus not only on getting people off 
the welfare rolls, but also on how we keep families off--permanently.
  Our legislation has a number of other provisions that I would also 
like to discuss.
  You might remember that in his State of the Union speech President 
Clinton proclaimed, ``Governments don't raise children; parents do.''
  The President was right; too often, only one parent does the 
raising--while the other one does the running away. In fact, at least 
$5 billion in court-ordered child support goes uncollected every year. 
There is over $560 million in delinquent child support owed to Iowa 
children.
  That's not fair to those kids or to the custodial parents. We need a 
little realism and responsibility when it comes to child support.
  This legislation would turn the collection of some past due child 
support over to the IRS. States would refer some of the hardest to 
collect cases to that Federal agency. Cases in which less than 50 
percent of the court-ordered support has been collected within the past 
year would be referred to the IRS for collection. That means people can 
still run from State to State--but they can no longer hide. They can't 
hide from the police. They can't hide from their kids. And they can't 
hide from their responsibility.
  We should not ignore the impact that good old public pressure can 
have on making people pay their debts. In Iowa, under the leadership of 
Attorney General Bonnie Campbell, an innovative program in which wanted 
posters picturing deadbeat parents have been released has been very 
successful. Since this program began, collection of child support in 
Iowa has increased by 16 percent.
  Recently, the Iowa Child Support Recovery Unit made the list 
available of individuals who did not pay child support during November, 
December, or January. The unit's hotline has been ringing off the hook 
with people calling in with information that will help locate more of 
the noncustodial parents who are delinquent on their child support 
obligations.
  In our legislation, we apply this successful program nationally by 
giving States the authority to make the names and locations of deadbeat 
parents available for publication.
  The legislation also authorizes a wage supplementation demonstration 
program to aid welfare recipients in obtaining self-sufficient 
employment. For newly created jobs, the value of the AFDC grant and 
food stamps will supplement the earnings of a welfare recipient for up 
to 48 months.
  If there is one thing we know about welfare, its that it is not 
working. We need to test some new ideas to see if there is a better way 
of helping achieve the goal of making welfare families self-sufficient.
  Kansas City, MO is trying to create some new jobs for welfare 
recipients. This is a serious problem in many areas. Kansas City 
officials would like to implement a wage supplementation program under 
which employers would be required to pay workers at least the base 
minimum wage. To provide an incentive for welfare recipients to take 
these jobs, the value of the recipients AFDC grant and food stamps 
would be paid, in cash, as a wage supplement. This effectively creates 
a job that pays far in excess of $4.25 and may allow the family to 
become self-sufficient. They believe this can be a powerful incentive 
for welfare recipients to join the work force and work their way off of 
welfare. I believe it is a program that should be tested.
  To address any concerns that such a program could displace other 
workers, Senator Bond and I worked together to include language in the 
bill that makes it clear that these must be new jobs and that no worker 
can be displaced. We also added language to strengthen the grievance 
procedure and require union concurrence.
  While the wage supplementation demonstration would allow the testing 
of cashing out food stamps benefits if certain condition are met, I 
want to make it very clear that I will strongly oppose any efforts to 
reduce support for this vital program and this provision should not be 
taken as an indication that I support the total cash-out of food stamp 
benefits. The Food Stamp Program clearly is an example of a program 
that works. There is no question about that. However, I do believe 
there is always a benefit in trying to see if there are ways good 
programs might be improved. Our legislation includes a provision to 
study the impact of the program, which should include any impact on the 
nutrition of the families involved.
  I have seen some remarkable things happen with an Iowa program, 
sponsored by the Institute for Social and Economic Development. This 
program trains AFDC recipients and helps them start small businesses. 
Iowans are starting small companies called microenterprises with the 
help of a little training and technical assistance. And they are 
succeeding. We all know the risks associated with starting a new 
business. Only 20 percent survive longer than 6 months. However, 
businesses started with the help of ISED break that mold and succeed. 
Since 1988, 75 percent of businesses started with the guidance and 
assistance of ISED are still operating. I was so impressed with this 
program that the Welfare to Self-Sufficiency Act contains a number of 
provisions designed to expand it nationwide.
  As my distinguished colleague and undisputed leader on welfare reform 
in the Senate, Pat Moynihan, has long pointed out, a significant 
contributor to the current welfare system has been the steady increase 
in the birth rate to teenagers. It has risen for 5 straight years 
beginning in 1986. A study by the Center for Population Options 
estimates that if all births to teens in 1992 had been delayed until 
the mother was in her twenties, taxpayers could have saved $13 billion.
  Title X family planning services have proven effective in reducing 
unintended pregnancies; therefore, the Welfare to Self-Sufficiency Act 
includes an additional $100 million for this program to reduce teen 
pregnancy. This investment will be cost effective. For every $1 spent 
on family planning services, the taxpayer saves $4.40 to support an 
unintended pregnancy and birth.
  Our legislation also seeks to better ensure that poor children have a 
healthy start in life. The bill creates incentives for AFDC parents to 
have their children receive appropriate preventive health care, 
including timely immunization.
  Finally, the legislation increases the authorization of funding the 
JOBS program to $3 billion in 1999 and reduces the required State match 
to enable participation by more families.
  While paying for comprehensive welfare reform will not be easy, we 
are committed to assuring that the cost of our legislation is fully 
offset. As soon as we receive an estimate from the Congressional Budget 
Office on the cost of this bill, we will include offsets in our 
proposal. We have preliminarily identified savings from two changes to 
be targeted for our proposed plan. First, we should reform and control 
the rate of growth in Federal payments for the administration of AFDC, 
food stamps, and Medicaid. Second, we should require that the income 
and resources of the sponsors of noncitizens be counted in determining 
the eligibility of those noncitizens for major means tested Federal 
benefit programs.
  Mr. President, welfare reform cannot occur in a vacuum. We must also 
continue working on a host of other issues.
  Last year we took one important step to assist many welfare families 
in becoming self-sufficient with the expansion of the earned income tax 
credit. When fully phased in, the expansion will mean more money in the 
pockets of many workers. This can mean a 40-cent pay raise for each 
dollar earned.
  We need to get the word out about the earned income tax credit. I 
frequently ask Nowans if they know about this program and the benefits 
it could provide for their families. Unfortunately, few are aware of 
it.
  We need to spread the word and to also get more people to ask their 
employers for advance payments rather than waiting for a refund at the 
end of the year.
  We must also reform our health care system and provide universal 
coverage for all Americans. That way, uninsured families will not be 
forced to stay on welfare in order to provide health insurance for 
their families.
  But most importantly, we must create jobs. Jobs that will pay enough 
money so the families can be self-sufficient. Unfortunately, in recent 
years, the trend has been in the opposite direction. We must redouble 
our efforts to create high-skilled, high-wage jobs so all families can 
participate in the American dream.
  The minimum wage has simply not kept pace with inflation. Full-time, 
full-year earnings now fall well below the annual poverty rate for most 
families. We must continue our efforts to increase the minimum wage so 
that it truly provides an income sufficient for a family to meet its 
most basic needs without public assistance.
  Mr. President, I'm concerned that a 2-year limit on the welfare rolls 
will actually become a 2-year minimum. If people aren't encouraged, or 
in some cases required, to help themselves, many simply will not.
  The fact is, many families don't need to be on welfare for 2 more 
years--with the proper assistance they can start moving into the job 
market within months.
  This plan requires responsibility from day one, not year two. It's 
realistic, and it's responsible.
  This is a plan that will work and this is why I'm so sure: I know a 
lot of people who are doing it right now in my home State of Iowa.
  Since the work incentives went into effect in Iowa on October 1, the 
number of welfare recipients with jobs has increased from 18 percent 
when the program started to 27.2 percent at the end of March. Now, that 
is what I call making work pay. It is paying off for former welfare 
recipients who now have jobs and it is paying off for taxpayers as 
well. Since more families getting more of the income from work rather 
than the Government, the cost per welfare grant is also down. It has 
declined almost $19 per household, or 5 percent, since last September.
  Americans caught up in the system should not have to wait for 2 more 
years to move from welfare into the work force. Taxpayers shouldn't 
have to foot the bills for 2 more years. We all want to end welfare as 
we know it, and our plan would start doing it on day one, not year two.
  Mr. President, I began with a definition of welfare from the Random 
House dictionary. I will close with another definition. Welfare Work is 
``the efforts or programs of an agency, community, business 
organization, et cetera, to improve living conditions, increase job 
opportunities, secure hospitalization, and the like for needy persons 
within its jurisdiction.''
  Mr. President, this definition should serve as the guiding principle 
for welfare reform. I believe the Welfare to Self Sufficiency Act meet 
this principle. Our legislation will improve the living conditions and 
increase job opportunities for people on welfare.
  I urge my colleagues to examine the Harkin-Bond plan and join us in 
this sensible bipartisan approach. I look forward to working with the 
Clinton administration and with my Senate colleagues as we work toward 
enactment of bipartisan welfare reform.
  Mr. President, I ask unanimous consent that a summary and section-by-
section analysis of the legislation appear in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

 Summary of the Welfare to Self-Sufficiency Act of 1994--A Bipartisan 
                       Approach to Welfare Reform

       The Welfare to Self-Sufficiency Act of 1994 reforms welfare 
     to help families receiving Aid to Families with Dependent 
     Children benefits become self-sufficient. It provides welfare 
     recipients with the support and skills they need to become 
     self-sufficient and move off of welfare. It also demands that 
     welfare recipients take responsibility for their families by 
     requiring them to sign a binding contract which specifies 
     when welfare benefits will end.
       The centerpiece of the legislation is the authorization of 
     the Family Investment Program. Families receiving or applying 
     for AFDC will be required to negotiate and sign Family 
     Investment Agreements. This agreement is a contract between 
     the state and family which will outline the steps each 
     individual family will take to become self-sufficient and 
     move off of welfare. Unlike other proposals which set a one-
     size-fits-all two year time limit, this plan provides for 
     time limits that will vary from family to family based on the 
     unique circumstances of each family. Failure to comply with 
     the contract would result in termination of benefits.
       The bill provides incentives for families to work and save. 
     The legislation encourages AFDC families to work by allowing 
     them to keep more of their earned income and encourages them 
     to save by raising resource limits.
       The disregard for child care expenses remains the same. 
     $200 for each child under age 2 and $175 for each child over 
     the age of 2.
       The disregard for work expenses is increased from $90 to 
     20% of gross earnings.
       Under current law, an individual has a 12 month work 
     transition period. During the first 4 months, $30 plus \1/3\ 
     of gross earnings are disregarded. For the following 8 months 
     $30 is disregarded. The Family Investment Program disregards 
     50% of gross earnings until a family has reached self-
     sufficiency.
       To encourage work by teen-age members of the household, the 
     wages of teen-age children will be disregarded also.
       The resource limitation for families applying for AFDC is 
     increased from $1000 to $2000. To encourage saving by AFDC 
     families, the resource limitation for recipients already on 
     public assistance is increased from $1000 to $5000. The 
     equity value of a car is increased from $1500 to $3000.
       Families are also encouraged to save and plan for long-term 
     expenses such as starting a small business, buying a first 
     home or for job training or education programs. Families can 
     save up to $10,000 for these purposes. Training programs for 
     small business development are also included.
       Further, to encourage work, states will also be given the 
     option to implement wage supplementation programs in which 
     the value of the AFDC grant and food stamp benefits is added 
     to supplement the minimum wage of the worker.
       Families who refuse to negotiate and sign a contract or 
     fail to meet the obligations outlined in the individual 
     agreement will enter a limited benefit plan that will lead to 
     the termination of welfare benefits. Families will continue 
     to receive full benefits for three months, for the next three 
     months the benefit will be reduced so that payment is made 
     for the children only and benefits will cease at the end of 
     this six month period.
       Many families are forced onto the welfare rolls when an 
     absent parent refuses to meet child support obligations. At 
     the present time, only one-third of court ordered child 
     support is paid. This bill strengthens child support 
     enforcement by referring collection of certain delinquent 
     child support orders to the Internal Revenue Service. Cases 
     in which less than 50% of the child support was collected 
     during the preceding 12 months would be referred to the IRS. 
     To encourage additional collection, the bill allows states to 
     make the names available of deadbeat parents for publication 
     by the news media.
       Other provisions of the bill include:
       An additional $100 million for family planning programs to 
     reduce the number of teenage pregnancies.
       To make children healthier, the bill requires AFDC parents 
     to have their children receive appropriate preventive health 
     care, including timely immunization.
       Increases the authorization of funding the JOBS program and 
     reduces the state match.
       The program will be financed from savings in two areas. 
     First, by reforming and controlling the rate of growth in 
     federal payments for the administration of AFDC, Food Stamps 
     and Medicaid. Second, we will require that the income and 
     resources of the sponsors of noncitizens be counted in 
     determining the eligibility of those noncitizens for certain 
     means tested federal benefits programs.
                                  ____


   Welfare to Self-Sufficiency Act of 1994 Section-by-Section Summary

       The Welfare to Self-Sufficiency Act of 1994 reforms welfare 
     to help families receiving Aid to Families with Dependent 
     Children benefits become self-sufficient. The legislation 
     authorizes the Family Investment Program in which AFDC 
     applicants and recipients will be required to negotiate and 
     sign contracts which outline the steps each individual family 
     will take to become self-sufficient and move off of welfare. 
     The bill provides incentives for families to work and save by 
     increasing limitations on assets and earned income, including 
     income earned by dependent teen-age children. Unlike other 
     proposals which set a one-size-fits-all two year time limit, 
     this plan provides for time limits that will vary from family 
     to family based on the unique circumstances of each family. 
     Failure to comply with the contract would result in 
     termination of benefits.
       The legislation also authorizes a wage supplementation 
     demonstration program to aid welfare recipients in obtaining 
     self-sufficient employment. For newly created jobs, the value 
     of the AFDC grant and Food Stamps will supplement the 
     earnings of a welfare recipient for up to 48 months. The 
     employer is required to pay at least the minimum wage. The 
     legislation includes provisions to ensure that no worker be 
     displaced by the projects.
       In addition, the bill strengthens child support enforcement 
     by referring collection of certain delinquent child support 
     orders to the Internal Revenue Service. Cases in which less 
     than 50% of the child support was collected during the 
     preceding 12 months would be referred to the IRS. Further, to 
     encourage additional collection, the bill allows states to 
     make the names available of deadbeat parents for publication 
     by the news media.
       The legislation also provides an additional $100 million 
     for family planning programs and requires AFDC parents to 
     have their children receive appropriate preventive health 
     care, including timely immunization. Finally, the legislation 
     increases authorization in funding the JOBS program and 
     reduces the state match.


     title i--family investment agreement and other welfare reform

       Section 101--Family Investment Program.
       Section 101(a) Provides that states have in effect a family 
     investment program.
       Section 101(b) Family investment program is defined as a 
     program in which the state agency negotiates a family 
     investment agreement and offers a limited benefit in lieu of 
     such agreement.
       An agreement shall be entered into by each adult member of 
     a household receiving AFDC benefits unless the individual is 
     the parent of a child under the age of 6 months; employed for 
     30 or more hours per week; is ill, incapacitated, or of 
     advanced age; or is needed in the home because of the illness 
     or incapacity of another member of the household.
       Any correspondence with program participants shall be in a 
     format that is easily understandable to the individual; shall 
     be understandable to individuals who are not English language 
     speakers and the employees of the State agency are readily 
     available to assist individuals in the completion of any 
     documents required.
       The state agency shall establish a procedure for the 
     resolution of disputes which includes an opportunity for a 
     hearing and provide a family the option of entering into a 
     limited benefit plan in lieu of a family investment 
     agreement.
       The state agency shall phase in the implementation of the 
     family investment program. A minimum of non-exempt families 
     would be required to participate--10 percent in FY 1995; 15 
     percent in FY 1996; 20 percent in FY 1997; 30 percent in FY 
     1998; 40 percent in FY 1999; 60 percent in FY 2000; 70 
     percent in FY 2001 and 90 percent in FY 2002.
       Section 101(c) Family investment agreement is defined. A 
     contract that outlines the steps a family will take to become 
     self-sufficient. Contains a negotiated time-limited period of 
     eligibility for AFDC benefits that is consistent with the 
     unique circumstances of the family.
       Non-exempt individuals are required to participate in one 
     or more of the following activities: full-time or part-time 
     employment; job search activities; JOBS program; education or 
     training program; unpaid community service; work experience 
     placement; high school completion for individuals under the 
     age of 20 or any arrangement to strengthen the individual's 
     parenting skills if the individual participates in one of the 
     preceding options.
       Unpaid community service shall only be included as part of 
     a plan to improve the employability of the individual and 
     lead to self-sufficiency. Unpaid community service shall meet 
     the same requirements of the community work experience 
     program and shall not lead to the displacement of any worker. 
     An individual's participation in unpaid community service 
     shall not exceed 3 months.
       Any member of the household entering into a family 
     investment agreement shall receive the supplemental 
     services required to attain self-sufficiency, including 
     health care, transportation, child care, education or 
     training.
       The state agency shall provide other services that may be 
     required to help an individual reach self-sufficiency 
     including substance abuse treatment, programs to strengthen 
     the parenting skills and assure family stability, programs 
     that lead to the improved school readiness for preschool 
     children and on-grade performance for school age children or 
     other social services.
       The state agency shall provide the family with support and 
     case management in the creation, monitoring and adaptation of 
     the family investment agreement.
       The state agency shall renegotiate the Family Investment 
     Agreement to reflect substantial changes in family 
     circumstances or at the conclusion of the agreement if the 
     family has made a good faith effort to comply with the terms 
     of the agreement but was unable to reach self-sufficiency 
     because of factors outside the control of the family.
       Provides that the family will enter into a limited benefit 
     plan if an individual fails to comply with the agreement and 
     provides that the agreement shall be invalid if the state 
     agency fails to comply with the terms of the agreement.
       Limited benefit plan is defined. The failure of an 
     individual to comply with the Family Investment Agreement 
     will lead to the termination of AFDC benefits. A family will 
     receive 3 months of full benefits followed by 3 months in 
     which benefits are paid for the children only. The family 
     will then be ineligible for benefits for a period of 6 
     months.
       During the duration of a limited benefit plan, a third-
     party counselor shall inquire about the well being of the 
     dependent children. This inquiry is to make sure appropriate 
     arrangements are being made to meet the needs of the children 
     when AFDC benefits are terminated.
       Provides a 45 day reconsideration period for families on a 
     limited benefit plan.
       Section 101(d) The Secretaries of Health and Human 
     Services, Labor and Education shall ensure appropriate 
     coordination in the planning, development and operations of 
     programs related to improving the self-sufficiency of AFDC 
     beneficiaries.
       Section 101(e) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 102--Work Incentives.
       The bill seeks to help families become economically self-
     sufficient by encouraging work and savings. To encourage 
     work, the bill gives states the option to increase the 
     disregards for earned income and increase the resource 
     limitations for families. States may implement the incentives 
     on a statewide basis or in a defined area of the state.
       Section 102(a) Provides an option to change the disregard 
     for work expenses to the first $90 or 20% of earned income 
     (whichever is greater).
       Section 102(b) Provides an option to change the earned 
     income disregard to 50% of earned income and eliminate the 
     time limitation.
       The state agency shall not disregard the earned income of 
     an individual if such individual's employment was terminated 
     without good cause or the individual refused to accept 
     employment without good cause.
       Section 102(c) Provides an option to disregard the first 4 
     months of earned income for a new employee if the individual 
     earned less than $1200 in the preceding 12 months and shall 
     not consider the payment erroneous if the state relied on the 
     best information available in determining eligibility.
       Section 102(d) For new applicants, the state agency may 
     consider the loss of income from the first month income is 
     lost if the termination was for just cause.
       Section 102(e) Provides an option to disregard interest 
     income.
       Section 102(f) Provides an option to disregard income and 
     resources, up to $10,000, that are placed in a qualified 
     asset account for long term expenses such as education and 
     training, self-employment or purchase of a home.
       Section 102(g) Provides an option to disregard income and 
     resources related to establishment of a microenterprise. 
     Includes microenterprise training and activities in the JOBS 
     program. Microenterprise is a commercial enterprise which has 
     5 or fewer employees.
       Section 102(h) Extends the period for transitional child 
     care benefits to 24 months.
       Section 102(i) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 103--Optional State disregard of dependent child's 
     income.
       Section 103(a) At the option of the state, the state agency 
     shall disregard all or any part of the earned income of a 
     dependent child.
       Section 103(b) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 104--Family stability.
       Section 104(a) Extends earned income and child care 
     disregard to non-recipient stepparents.
       Section 104(b) For two parent families, eliminates the 
     primary wage earner provision; the work history requirement 
     and the 100 hour rule
       Section 104(c) Provides the option to increase the asset 
     limitation up to $2000 for applicant families and up to $5000 
     for recipient families.
       Section 104(d) provides the option to increase the equity 
     disregard for automobiles up to $3000.
       Section 104(e) the amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 105--Work requirements for unemployed parents.
       Section 105(a) Eliminates the limitation that requires 
     participation of only one parent in the work component of the 
     JOBS program.
       Section 105(b) A state may condition continued eligibility 
     of AFDC for unemployed parents upon the participation of both 
     parents in the program which shall include job search 
     activities, counseling, and training services.
       Section 105(c) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 106--JOBS program.
       Section 106(a) Eliminates the total exemption for required 
     JOBS participation by pregnant individuals.
       Section 106(b) Removes the limitation on length of job 
     search program.
       Section 106(c) Provides protection for existing workers 
     regarding placements in wage supplementation projects, unpaid 
     community service work programs and community work experience 
     programs. The individuals shall not perform any services or 
     duties or engage in activities that will supplant the hiring 
     of employed workers; are services, duties or activities with 
     respect to which an individual has recall rights pursuant to 
     a collective bargaining agreement or other applicable 
     personnel procedures or had been performed by or assigned to 
     an employee who is subject to a reduction in force or has 
     recall rights.
       No work assignment shall be made until the State agency has 
     obtained the written concurrence of any local labor 
     organization representing employees of the employer.
       Section 106(d) The state shall establish and maintain a 
     grievance procedure for resolving complaints. Except for a 
     grievance that alleges fraud or criminal activity, a 
     grievance shall be made not later than one year after the 
     date of the alleged occurrence that is the subject of the 
     grievance.
       A hearing shall be conducted within 30 days and a decision 
     shall be made not later than 60 days after the filing of the 
     grievance. In the event the decision is adverse to the party 
     who filed the grievance, or if no decision has been made 
     within the 60 day period, the party shall be permitted to 
     submit the grievance to binding arbitration before a 
     qualified arbitrator who is jointly selected and independent 
     of the interested parties. If the parties cannot agree to an 
     arbitrator, the Governor shall appoint one within 15 days.
       An arbitration proceeding shall be held not later than 45 
     days after the request for such action. A decision shall be 
     made not later than 30 days after the date the arbitration 
     proceeding begins.
       The cost of the arbitration shall be divided evenly between 
     the two parties except if the employee or the employee's 
     representative prevails, the state agency shall pay the total 
     cost of the proceeding.
       Remedies would include the prohibition of the work 
     assignment; reinstatement of the displaced employee to the 
     position held prior to displacement; payment of lost wages 
     and benefits to the displaced employee; and other relief as 
     is necessary to make the displaced employee whole. Suits to 
     enforce arbitration awards may be brought in district court.
       Section 106(e) the amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 107--Increased Payments to States.
       Section 107(a) Reduces the state matching requirements in 
     the JOBS for expenditures over the FY 94 level.
       Section 107(b) Increases the authorization for JOBS. $1.5 
     billion in FY 1995; $2 billion in FY 1996; $2.5 billion in FY 
     1997; $3 billion in FY 1998 and $3.5 billion in FY 1999.
       Section 107(c) Reduces the state matching requirements for 
     the AFDC child care program.
       Section 108--Assessment, monitoring, and evaluation.
       Section 108(a) In order to increase the percentage of 
     families moving from welfare to self-sufficiency, allows 
     states to conduct an assessment to determine the barriers 
     that AFDC families face in becoming self sufficient; the 
     capacity of the state to provide employment opportunities for 
     AFDC families; and the number and skills of workers needed to 
     develop Family Investment Agreements. Allows states to 
     establish a system to monitor and evaluate the economic gains 
     related to employment by AFDC families as well as the impact 
     on the children.
       Section 108(b) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 109--Timely preventive health care for children.
       Section 109(a) Requires parents to provide timely 
     preventive health care for their children. Families would 
     receive a bonus payment upon receipt of the verification that 
     each child under the age of 6 has been immunized and received 
     well-baby and well-child care in accordance with the 
     guidelines issued by the Surgeon General. Aid shall be 
     reduced if such verification is not provided. The Secretary 
     shall determine the amount of the bonus or deduction. This 
     provision shall not apply if the state agency provides the 
     Secretary with adequate certification that the services are 
     not available in the area in which the family resides.
       Section 109(b) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 110--Wage supplementation demonstration projects.
       Section 110(a) The Secretary shall establish wage 
     supplementation demonstration projects for certain 
     individuals eligible for AFDC to provide an incentive to 
     work.
       Section 110(b) An eligible individual would be employed by 
     a participating employer. The state shall make monthly 
     incentive payments to the eligible individual for each month 
     of employment. The incentive payment would be an amount equal 
     to the AFDC and food stamps that would otherwise be payable 
     to the individual and the incentive payment would be in lieu 
     of such benefits.
       An eligible individual shall participate for the lesser of 
     48 months or the length of employment by the participating 
     employer. The state will establish a limitation on income for 
     eligible individuals.
       Wages paid to the individuals shall be treated as earned 
     income. Participants shall remain eligible for AFDC and food 
     stamps for the duration of their participation in this 
     program. Participating individuals shall remain eligible 
     notwithstanding the receipt of child support payments. Wages 
     paid to an eligible individual by the participating employer 
     shall not be taken into account in determining assistance for 
     federal housing programs.
       Eligible individual means an individual eligible for AFDC. 
     Participating employer means an employer certifying the gross 
     wages will be the product of applicable minimum wage and the 
     hours worked. The employer shall not receive a wage subsidy 
     under any other provision of federal law. The eligible 
     individual receives the same employer-provided benefits (with 
     the exception of health care benefits, which are provided by 
     Medicaid). The employer shall submit a monthly certification 
     report.
       The demonstration project shall not last longer than 5 
     years.
       The state will submit an application to the Secretary which 
     includes an explanation of the plan for evaluating the 
     project. A state shall begin a demonstration upon approval by 
     the Secretary or within 60 days of the application unless the 
     proposal is denied by the Secretary. A state shall issue a 
     public notice when the application is submitted which 
     contains a description of the project and allow any 
     interested party to comment to the state or to the Secretary 
     within 30 days.
       Each state conducting a demonstration project shall submit 
     an annual and final evaluation that determines the success of 
     moving people from welfare dependence to self-sufficiency.
       The portion of the monthly AFDC benefit shall be considered 
     as expenditures under the state plan. The expenses incurred 
     by the state for administration shall be considered 
     expenditures by the state for administrative costs in 
     operating a program under Part F of the Social Security Act. 
     The portion of the monthly payments to a participant in the 
     project that is attributable to the cash value of food stamp 
     benefits shall be considered expenditures under the food 
     stamp program.
       Funds for the activities covered by the demonstration 
     project shall supplement and shall not supplant funds.
       Section 111--Increase in authorizations of Public Health 
     Service title X planning grants.
       Section 111  Increases authorization by $100 million for 
     Title X family planning services under the Public Health 
     Service Act.
       Section 112--Delay in Certain Effective Dates.
       Section 112  Provides a special rule for states that 
     require state legislation to enact the provisions of the 
     bill.
       Title II--Improvements in the Collection of Child Support
       Section 201--Transmission and submission of certain child 
     support orders to the IRS.
       Section 201  Establish procedures which require any state 
     court or administrative agency to transmit a copy of any 
     child support order to the IRS upon completion of a 12 month 
     period during which less than 50% of the court-ordered child 
     support has been paid.
       Any individual with a right to child support assigns the 
     right to collect the support unless the individual rescinds 
     the assignment. The assignment may be revived at any time.
       Section 202--Collection of child support by the Internal 
     Revenue Service.
       Section 202(a) The Secretary shall establish a program to 
     collect child support orders. The program shall provide for 
     wage withholding and estimated tax payments.
       Payment of the entire child support obligation is required 
     within the taxable year. If an individual fails to pay the 
     full amount required, the Secretary is authorized to assess 
     and collect the unpaid amount.
       Child support is dispersed to the individual specified in 
     the child support order as quickly as possible. Authorizes 
     payment of penalties and interest collected to such 
     individual.
       Section 202(b) The Secretary shall submit an estimate of 
     the additional cost of administering the program within one 
     year of enactment.
       Section 202(c) Clerical amendment.
       Section 203--Publication of delinquent child support 
     obligers.
       Section 203 At the option of the state, provide that for 
     any case in which no payment has been made within a preceding 
     3-month period, the state make available for publication a 
     listing of all such orders by name of the obligor, the 
     verified city and state address, and any other information 
     deemed appropriate.
       Section 204--Effective date.
       Section 204(a) The amendments made in this section shall 
     take effect on the first day of the first fiscal year 
     beginning after the date of enactment of this Act.
       Section 204(b) Provides a special rule for states that 
     require state legislation to enact the provisions of this 
     section.

 Mr. BOND. Mr. President, in the last 2 or 3 months the debate 
over welfare reform ideas has taken place largely in the editorial 
pages. Earlier today the Labor/HHS/Education Appropriations 
Subcommittee held a hearing to kick off the congressional debate in 
earnest. Several bills have been introduced recently; several other 
bills are in the works right now. The administration has a working 
group; there is a House Republican plan and a Senate Republican plan. 
Today Senator Harkin and I will introduce the first bipartisan welfare 
reform plan. Its centerpiece is a binding contract between a welfare 
recipient and the State from day one outlining how and when the 
recipient will leave the welfare rolls and become self-sufficient. I 
believe our plan has a number of strengths in comparison with other 
approaches now being proposed.
  First, the philosophy behind the family investment agreement, or 
family self-sufficiency pact as it is called in Missouri, truly breaks 
new ground. For the past 30 years, government has said ``If you meet 
our income guidelines, you are entitled to aid, for years if 
necessary.'' The Harkin/Bond approach says ``government has a 
responsibility to provide for those in need; however, those in need 
also have a responsibility to work toward self-sufficiency.'' I believe 
this philosophy, implemented through the family investment agreements, 
has real potential in getting large numbers of people to move off the 
system and into self-sufficiency.
  Our bill, based on what our respective States are already doing or 
propose, is based on an individualized and binding contract between 
welfare recipients and the State. Each contract is tailored to the 
individual, unique needs and circumstances of the recipient. It 
requires recipients to take responsibility for their families and 
outlines specific steps that each welfare recipient will take to move 
off of welfare. The contract states clearly when welfare benefits will 
end. If a recipient fails to live up to the terms of the agreement at 
any time, benefits will be reduced and ultimately terminated.
  The contract also obligates the State to live up to its side of the 
agreement, based on the individual's specific needs, by providing 
education, training, or child care. If a State fails in its 
responsibilities, the contract is nullified and the family's benefits 
may not be reduced or eliminated.
  The Harkin/Bond plan differs from other welfare reform proposals in 
other key ways. The flexible and individual approach will move 
recipients off welfare before 2 years, which is the time limit for 
welfare benefits set in most proposals. Also, our proposal does not 
rely on creating costly and inefficient public sector jobs, but focuses 
on moving individuals into permanent jobs in the private sector.
  Our bill also makes it easier for young women with children to move 
off the rolls through work. One of the biggest criticisms I have heard 
of the present system is that it penalizes work. Women who are able to 
find part- or full-time jobs are not able to keep very much of what 
they earn, nor are they able to save it, nor are they able to keep 
their Medicaid and child-care benefits for long once they start 
working. Our bill will allow States to experiment with a number of 
disincentives to work. States will have the option to allow recipients 
to keep more of what they earn, and to begin to accumulate assets. We 
also permit welfare families to save money for education or home 
purchasing purposes. Finally, recognizing that child care is a costly 
impediment to self-sufficiency, we will extend the transitional child-
care benefits from 12 months to 2 years. The current system also 
penalizes marriage. Our approach will eliminate some disincentives to 
marriage by making it easier for two-parent families to qualify for 
benefits.
  Our bill represents real welfare reform. We do not propose to go 
outside the existing system for cost savings. We plan to pay for our 
bill by reforming the administrative cost reimbursement system for 
AFDC, food stamps, and Medicaid. And we will require that the income 
and resources of the sponsors of legal aliens be counted in determining 
the eligibility of those persons for AFDC and other means tested 
Federal benefit programs. We will not increase taxes, nor cut 
discretionary spending to pay for this program. We pay for our ideas by 
trimming the excesses of the current system.
  Later this week I will have more to say about our particular approach 
and why it makes sense. I urge other Senators to take a look at our 
bill, and look forward to working with Members on both sides of the 
aisle as we begin to tackle this topic.

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