[Congressional Record Volume 142, Number 106 (Thursday, July 18, 1996)]
[House]
[Pages H7796-H7907]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WELFARE AND MEDICAID REFORM ACT OF 1996
The SPEAKER pro tempore [Mr. Kolbe]. Pursuant to House Resolution 482
and rule XXIII, the Chair declares the House in the Committee of the
Whole House on the State of the Union for the further consideration of
the bill, H.R. 3734.
{time} 1047
in the committee of the whole
Accordingly the House resolved itself into the Committee of the Whole
House on the State of the Union for the further consideration of the
bill (H.R. 3734) to provide for reconciliation pursuant to section
201(a)(1) of the concurrent resolution on the budget for fiscal year
1997, with Ms. Greene of Utah in the chair.
The Clerk read the title of the bill.
point of order
Mr. ORTON. Madam Chairman, I rise to make a point of order against
consideration of H.R. 3724.
The CHAIRMAN. The gentleman will state his point of order.
Mr. ORTON. Madam Chairman, section 425 of the Congressional Budget
Act prohibits us from considering legislation which would create an
unfunded mandate upon the States. The Congressional Budget Office has
ruled that H.R. 3734 falls $12.9 billion short in funding necessary to
fund the work requirements of the bill. Also the National Governors
Association has stated: We are concerned that the bill restricts State
flexibility and will create additional unfunded costs.
This bill clearly creates an unfunded mandate, violates section 425
of the Congressional Budget Act, and I would further point out that
section 426 of the Congressional Budget Act prohibits this House from
considering a rule which would waive section 425. So that in any event
we would have a vote and a determination as to whether or not a bill
does in fact create an unfunded mandate.
The CHAIRMAN. The Chair would respond to the gentleman's point of
order as follows. Points of order against consideration of the bill
H.R. 3734 were waived by unanimous consent on July 17, 1996. Further, a
point of order against consideration of House Resolution 482 would not
be timely after adoption of that resolution.
The gentleman's points are not in order.
Mr. ORTON. I thank the Chairman. I think it is clear to the House and
the country that in fact we are violating the first bill we passed in
this Congress with the adoption of this bill.
The CHAIRMAN. When the Committee of the Whole rose on Wednesday, July
17, 1996, all time for general debate pursuant to the previous order of
the House had expired.
Pursuant to House Resolution 482, there will be 2 additional hours of
general debate. The gentleman from Ohio [Mr. Kasich] and the gentleman
from Minnesota [Mr. Sabo] will each control 1 hour.
Mr. SABO. Madam Chairman, I ask unanimous consent that the gentleman
from Texas [Mr. Archer] be allowed to control the time for the
gentleman from Ohio [Mr. Kasich] temporarily and be allowed to yield
time.
The CHAIRMAN. Is there objection to the request of the gentleman from
Minnesota?
There was no objection.
The CHAIRMAN. The Chair recognizes the gentleman from Texas [Mr.
Archer].
Mr. ARCHER. Madam Chairman, I yield myself such time as I may
consume.
Madam Chairman, since 1965, roughly 30 years ago, government in this
country has spent $5.5 trillion on welfare programs, more than has been
spent on all of the wars fought in this century. Yet people are poorer
and more dependent than ever. Despite our best efforts, despite the
expenditure of these massive amounts of money, we have lost the war on
poverty.
Madam Chairman, today, we stand on the threshold of a new effort, an
effort that can win the war.
With the vote we take today, we recognize that the Great Society's
welfare programs have not helped people. They have destroyed people.
They have not kept families together. They have torn them apart.
These policies haven't turned urban areas of America into shining
cities on a hill. They have made them into war zones where law-abiding
citizens are afraid to go out at night.
They have led to the creation of two Americas. One marked by hope and
opportunity. The other by despair and decay.
In short, the welfare state has created a world in which children
have no dreams for tomorrow and parents have abandoned their hopes for
today.
The people trapped in welfare, the mothers, the children, the
fathers, are our fellow citizens, one and all. We have a moral
obligation to them, as Americans, to lend a helping hand.
For the people on welfare aren't abusing welfare, as much as welfare
is abusing them.
We are on the threshold of improving America by fixing our failed
welfare state. We're improving America for the children on welfare, for
the parents on welfare, and for ourselves.
Our reforms are based on five pillars. The pillars represent the
values that made America great.
One--we think people on welfare should work for their benefits. A
welfare worker I spoke with told me the biggest beneficiaries of work
aren't the moms or the dads. Yes, they benefit. But she said it's the
children who watch their parents get up each morning, go to a job, and
return home at night who are the big winners. These children get better
grades in school, have fewer problems with crime, and are less likely
to end up on welfare because the values and virtues of work, not
idleness, are instilled in them at a young age.
Two--Time limit benefits. Welfare should be a temporary helping hand,
not a way of life.
[[Page H7797]]
Three--Provide no welfare for felons and noncitizens. America always
has been and always will be the land of opportunity for immigrants. But
it's not right to ask hardworking, taxpaying Americans to support
noncitizens who come here and then go on welfare.
Four--Return power and control of welfare to the states and
communities where help can best be delivered. We must remove
Washington's control over welfare. This city built the failed welfare
state. It's time to get Washington out of the welfare business.
Five--Reward personal responsibility and fight illegitimacy. We
shouldn't have a welfare system that promotes illegitimacy and
discourages marriage. It's time to change signals and return to old-
fashioned values.
Madam Chairman, today's vote will be historic.
It represents the biggest, most helpful change to social policy in
America since the 1930s.
This vote recognizes that America is a caring country, that Americans
are a giving people, and that welfare recipients are capable of success
if we would only let them try.
Our colleague, J.C. Watts, has a wonderful way of expressing it. He
says America's welfare recipients are eagles waiting to soar.
Madam Chairman, I think it's time we removed the heavy hand of the
Federal Government from their wings. We must let our fellow citizens on
welfare reach new heights as they climb the economic ladder of life.
That's what this bill does. It helps people to help themselves. It
restores hope and it provides opportunity. It's strong welfare reform
and it's what the American people have wanted for years.
Madam Chairman, there is no good reason why this bill should not be
passed by the Congress and signed into law. The American people expect
nothing less, and families on welfare deserve much, much more than the
sad status quo.
For the sake of all Americans, I hope the President will let this
bill become law.
Madam Chairman, I reserve the balance of my time.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentleman from
California [Mr. Matsui].
Mr. MATSUI. Madam Chairman, yesterday we heard the chairman of the
Budget Committee say that this debate was really about Judeo-Christian
ethics. That is why I was somewhat disappointed last night when I read
Congress Daily. In the Congress Daily we talked about welfare reform
and we talked about what this debate was really all about. The chairman
of the subcommittee that has jurisdiction over welfare was quoted as
stating from a political point of view, the President of the United
States is in a box.
Madam Chairman, that is what this debate is all about--to jeopardize
9 million children who will be affected by this bill just to put the
President of the United States in a box.
What kind of people would draft legislation for political purposes to
affect so many children of America? This bill is weak on work and tough
on America's children.
{time} 1100
The Congressional Budget Office, their own agency, hired by the
Republican House and Senate, has said that the 1.7 million jobs that
the Republicans say will be created by a woman going off welfare is an
illusion. It is deceptive, it is not going to happen, because they do
not provide the resources for it. Their own agency has said they will
not obtain those 1.7 million jobs. So this is not a jobs bill. This is
not a bill to get people off of welfare into work.
But the worst part of this bill is what it will do to children.
Because of those time limits and because of the fact that the
Republican bill prohibits the States from using Federal funds for
vouchers or any kind of assistance after a woman meets those time
limits, she will then become destitute, she will become homeless, her
children will probably have to go into foster care, even though she
might be a good mother.
This is what this is all about. It is about politics to hurt
America's children. I urge a ``no'' vote on this legislation.
Mr. ARCHER. Madam Chairman, I yield 2\1/2\ minutes to the gentlewoman
from Connecticut [Mrs. Johnson], the chairman of the Subcommittee on
Oversight of the Committee on Ways and Means, the chairman of the
Committee on Standards of Official Conduct, a person who is so greatly
respected on our committee and has given such great service to this
House, the country, in all of those roles.
Mrs. JOHNSON of Connecticut. Madam Chairman, I rise in strong support
of this bill, and I could not disagree more with the preceding speaker.
We have to change the future. Welfare cannot be a way of life for
either women or children. It is not a satisfactory way of life. There
is no hope, there is no opportunity when you are on welfare.
Now, remember, under this bill at the end of 5 years you get
Medicaid, nutrition assistance, housing assistance, energy assistance,
all those programs that provide services, on a means-tested basis. In
addition, 20 percent of the whole caseload can be carried forward. So
we are not talking about a draconian system; we are talking about
reform and creating hope and opportunity in our welfare system for both
the women and children on welfare.
This bill, let me show you, will allow States, for instance, to be
free of the rigid law that now governs income disregards.
The woman is on welfare and starts earning money, and we right away
start reducing benefits. Under this reform bill States will have
complete freedom to design a fairer system. They may choose to keep her
benefits up, and, as her salary goes up, to then decline her benefits.
States have the power to help her get a good start in those 5 years.
They have the power to educate and train, but to combine that with work
experience. Under this program, women on welfare could immediately go
to work for half a day in new day care centers, use State day care
subsidies to give informed leadership to those centers as skilled
master teachers. Let welfare mothers, who are good care providers, be
the soldiers in those day care centers and then in the afternoon go on
education and training centers while other welfare recipients staff the
day care centers. It will cut the cost of day care and it will allow
the money to be used powerfully in the transition period. This gives
opportunity to States to create the kind of humane and supportive
system women need to literally change their lives.
In addition, the terrible decline in the cities is in part the result
of nonpayment of rent. Part of the problem of our cities is that if a
welfare recipient fails to pay their rent, it takes at least 6 months
to solve the problem and sometimes much more than that. Under this new
system, States can say you miss a month's rent? Fine, we will pay it
directly now until you get on your feet. So we can prevent the
degradation of our housing stock in the cities just by requiring
personal responsibility on the part of welfare recipients and providing
States the flexibility to create a more realistic support system, under
the umbrella of Federal concern, compassion and support.
Mr. SABO. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, if I might inquire of the chairman of the Committee
on Ways and Means, we are curious if there is a final version of the
bill and if there is a final summary of the last minute changes?
Mr. ARCHER. Madam Chairman, will the gentleman yield?
Mr. SABO. I yield to the gentleman from Texas.
Mr. ARCHER. Madam Chairman, the Committee on Rules had the statutory
language of the bill. That was made a part of the rule we voted on.
Mr. SABO. Is there a summary of the last minute changes that were
made?
Mr. ARCHER. Not to my knowledge, although the gentleman is aware that
this bill did not come out of the Committee on Ways and Means; it came
out of his committee, the Committee on the Budget.
Mr. SABO. Well, it has been substantially changed since it came
through the Committee on the Budget. Many of us are curious what the
final form of the bill is.
Madam Chairman, I yield 2 minutes to the gentlewoman from California
[Ms. Woolsey].
(Ms. WOOLSEY asked and was given permission to revise and extend her
remarks.)
[[Page H7798]]
Ms. WOOLSEY. Madam Chairman, we all agree that welfare does not work,
the welfare system does not work for the taxpayers, and it does not
work for the families who are on welfare, and we all agree that the
welfare system must be overhauled. It must be overhauled so that it
helps recipients get jobs and stay off welfare permanently. But that is
the easy part.
The challenge and responsibility we face as legislators, however, is
finding the answers to, what if's. What if a mother on welfare cannot
find a job? What if she is not earning enough to take care of her
family? What if her benefits are cut off and she is unable to provide
her children with food, with clothes, and with health care?
Madam Chairman, this bill does not even attempt to answer these, what
if's. In fact, the majority has gone out of its way to prevent States
from meeting the basic needs of children, children whose parents are
unable to get a job.
This bill says to poor children, do not get hungry, do not get sick,
and, for Pete's sake, do not get cold, because your time is up, and we
do not think you are important enough to provide you with the basics
that you need to survive.
Madam Chairman, no other Member of this body knows better than I do
that this is the wrong way to fix welfare. As a single mother with
three small children, working, many years ago, I could not have stayed
in the work force if I did not have the safety net of health care,
child care, and food that the welfare system provided for my family.
So I urge my colleagues, do not take this vote lightly. Your vote
today will have consequences, consequences for children long after
election day, and it will be too late to answer the, what if's
tomorrow.
Mr. ARCHER. Madam Chairman, I yield 2 minutes to the gentleman from
California [Mr. Herger], a respected member of the Committee on Ways
and Means.
Mr. HERGER. Madam Chairman, over the last three decades the American
taxpayer has spent $5 trillion on our welfare system. Working Americans
may be asking themselves, what have we gained from all that spending?
Do we have less poverty in the United States? No; are welfare
recipients spending less time on welfare? No; after spending $5
trillion on welfare, have we solved the problems of poverty and
dependency on Federal dollars? Is it extreme to think that maybe there
is a better way of running our welfare system? Madam Chairwoman, the
Republican welfare reform proposal will allow welfare to work better
for all Americans. Our welfare reform makes welfare a way out--not a
way of life. It promotes work over a continual cycle of welfare. It
returns power and money to the States and encourages personal
responsibility. Madam, Chairwoman, this reform proposal also denies
welfare for noncitizens and includes a provision I developed with a
sheriff in my district to deny imprisoned criminals welfare and create
an incentive for local law enforcement officials to help stop this
abuse. Currently, an estimated 5 to 10 percent of inmates in local and
State jails are illegally receiving welfare checks. Without this
welfare reform, the American taxpayer will allegedly give prisoners
$270 million over the next 7 years in welfare payments.
Madam Chairwoman, our current welfare system is inefficient, unfair,
and damaging to those it is supposed to help. The American people
deserve a better welfare program that is unaccepting to those abusing
the system and compassionate to those in real need.
I urge my colleagues to vote for this welfare reform.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from New York [Mr. Rangel].
(Mr. RANGEL asked and was given permission to revise and extend his
remarks.)
Mr. RANGEL. Madam Chairman, we have gotten off the subject now of
substantive legislation, and we are now dealing with Presidential
politics.
Well, let us do it. The welfare bill now has become like a tennis
ball in a political volley, and the question is, Does it make more
sense to force the President to keep his commitment to change welfare
as we know it, or really do we want to get the President in the
position that he has to veto the bill?
Well, we have tried so many times on the Republican side to find out
just what is it that the President hates. Obviously, it was the
tremendous cuts that were recommended by the other side as relates to
Medicaid. So what was the solution? Continue to make certain it was one
package, until it becomes politically expedient to change that and to
put another poison pill, and several other poison pills, so you can go
home and say the President has vetoed the welfare bill once again.
Who really suffers? It is really the voters, or it is our children?
This obsession in saying that the Federal Government cannot take care
of them has no responsibility to our children, but that the Governors
should be trusted. And then to have the Christian coalition to come up
and embrace this in a Christian way.
Well, thank God we have the National Council of Catholic Bishops that
say the program stinks. Thank God we have the Jewish Council Against
Poverty that says it is no good. Thank God we have the Protestant
Council that says it is no good. It may be good politics, but it is bad
for the children of our Nation.
The whole concept that we are saying 5 years, but the Governors can
say 2: We are relinquishing our responsibility to the children of the
United States of America, and it is a bad day in the congressional
history.
Mr. ARCHER. Madam Chairman, I yield 2 minutes to the very respected
gentleman from Louisiana [Mr. McCrery], a member of the Committee on
Ways and Means.
Mr. McCRERY. Madam Chairman, I thank the gentleman for yielding me
time.
Madam Chairman, I want to talk for just a while about the basis for
reform. I think it is worthwhile to examine the current welfare system
and its results over the last few years.
This chart shows very graphically, this line right here is the
poverty rate in the United States. Beginning in 1950, you can see it
drops until about 1965 or so.
Well, it just happens to be that 1965 was the beginning of the Great
Society programs, and the avalanche of welfare spending in this
country; as it has been said, $5 trillion over the last 30 years.
What happens in 1965? It flattens out, the poverty rate, and then
even goes up. So nothing has happened on the poverty rate. It has even
gone up a little bit since 1965, since we have spent $5 trillion.
This blue line right here is spending on welfare. Look, it is going
off the chart in 1995. We are not getting the results, folks, that were
advertised with all the taxpayer spending that we have done.
It is the current system that is trapping children in poverty. It is
the current system that is cruel to children. And if you do not
recognize that, you have not been paying attention.
Now is the time, not next year, not 5 or 10 years from now, now is
the time finally to do something about this terrible welfare system
that we have got. The status quo stinks. Admit it. Let us do something
about it and quit talking about it.
We sent the President two welfare bills. We are going to send him
another one. We keep modifying it. This one is patterned after the
bipartisan Governors' proposal. I have met with the President to talk
about welfare reform, and this is very, very close. This bill is very,
very close to what the President says he wants.
Let us pass it, send it to him, and I hope he signs it.
Mr. SABO. Madam Chairman, I yield 2\1/2\ minutes to the distinguished
gentleman from Tennessee [Mr. Ford].
Mr. FORD. Madam Chairman, let me thank my colleague for yielding me
time.
Madam Chairman, much of today's welfare news is good. There are fewer
welfare and food stamp recipients today than when President Clinton
took office. The poverty rate is down and teen pregnancy rates are
lower in most States. Teen birth rates have dropped as well. Child
support collections have grown and welfare reform is alive and well in
States, thanks to 38 waivers approved by the Clinton administration.
[[Page H7799]]
{time} 1115
That is all good news for the President and even better news for
American families.
Unfortunately, Madam Chairman, we have not made much progress on
national welfare reform. Partisan politics seems to have gotten in the
way, and that is a shame. President Clinton has twice sent Congress
welfare reform proposals. He has sent clear signals about the kind of
reform he will sign into law. He wants a bill that requires work,
promotes responsibility, and protects children. He would impose tough
time limits and work requirements, provide more funding for child care,
require teen parents to live at home and stay in school, and crack down
on child support enforcement. And that is real welfare reform.
He vetoed the Republican plan, H.R. 4, because it was not real
welfare reform. He rejected H.R. 4 because it was weak on work, it did
little to move people from welfare to work, it did not guarantee child
care, it gutted the earned income tax credit, it was tough on children,
it made unacceptable deep cuts that undermined child welfare, school
lunch, and aid to disabled children. It was a step backward in an
effort to get health care coverage to all Americans and it eliminated
the guaranteed medical coverage that single parents need to move from
welfare to entry-level jobs.
Thanks to the National Governors' Association, today we will try
again to send another welfare package to the President. I remain
skeptical about what my Republican colleagues want as a bipartisan
effort in a Republican bill. Admittedly, this new Republican plan
corrects some of the worst mistakes of the vetoed bill, confirming that
the President was right to say ``no'' to the last Republican plan, but
it looks to me like the Republicans want to make certain that this bill
is also unacceptable to the President.
I want one point to clear, Madam Chairman. I support welfare reform.
So does our President. But we also want to make sure that needy
children are not the victims of excessive election-year posturing. Real
welfare reform should give children a safety net on which to rely, and
it makes certain children are not punished for the mistakes of their
parents.
Mr. ARCHER. Madam Chairman, I yield 3 minutes to the gentleman from
Texas [Mr. DeLay], the whip of the House.
Mr. DeLAY. Madam Chairman, I thank the chairman for yielding me this
time, and I rise in support of this legislation. I really commend the
chairman of the Committee on Ways and Means and the Committee on the
Budget for their efforts in producing this legislation.
Madam Chairman, as my colleagues ponder their vote on this important
issue, I would just urge them to consider this question: Does the
current welfare system help people realize the American dream? If the
answer is no, we should vote for this reform legislation.
I believe that the current welfare system has destroyed the American
dream for too many people, and this bill represents an important part
of our agenda to restore the American dream. It also represents a core
philosophical principle; that a hand-up is better than a hand-out.
The American people have rightfully demanded that we fix this welfare
system. They instinctively understand that the current welfare system
undermines incentives to work, encourages the expansion of the
underclass, breaks up families, and promotes welfare as a way of life.
And they understand that the current system is a perversion of basic
American values that value work, that promote personal responsibility,
and that foster freedom.
This reform legislation values work. It requires that every able-
bodied welfare recipient work for their benefits within 2 years. It
promotes personal responsibility. It cracks down on deadbeat dads,
giving States the tools to track down men who leave or abandon their
families and leave their children to fend for themselves. And it
fosters freedom.
Scripture says if you give a man a fish, he can eat for a day; but if
you teach a man to fish, he can eat for the rest of his life.
Our reform plan gives welfare recipients the incentives to gain their
freedom, to gain control of their lives and to become productive
members of society.
Madam Chairman, some on the left call our efforts mean and extreme.
Well, I say that defending the status quo is extreme. Continuing the
current system that has destroyed families and promoted dependency is
mean. The legislation, this legislation, is a commonsense effort to
restore the basic American values of work, personal responsibility and
freedom to our Federal welfare system. It is a necessary step to
restore the American dream for those who are currently in the welfare
system.
I urge my colleagues to have the courage to change this system. Stand
with the American people and vote for this commonsense reform plan.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentleman from
Virginia [Mr. Payne].
Mr. PAYNE of Virginia. Madam Chairman, I thank my colleague for
yielding me this time.
Madam Chairman, Republicans and Democrats agree that the current
welfare system does not work. Instead of requiring work, it punishes
those who go to work; instead of instilling personal responsibility, it
encourages dependence on the Government; and instead of encouraging
marriage and family stability, it penalizes two-parent families and
rewards teenage pregnancies.
We all agree that welfare must be dramtically reformed, and that
welfare should only offer transitional assistance leading to work, not
a way of life. Where we disagree, however, is whether the Republican
bill will make transition to work a reality or whether it is just empty
rhetoric.
Real welfare reform must be about replacing a welfare check with a
paycheck. Real welfare reform gets people into the work force as
quickly as possible. In order to do that, real welfare reform provides
enough money for the work requirements to be effective.
The Congressional Budget Office has concluded that the Republican
bill will not work because most States will fail to meet the work
requirements. It will be less expensive for the States to accept the
penalties for failing to meet the participation rates than it will be
to meet the costs of the work programs.
Creating a system that is prone to failure from the outset is not
real welfare reform.
The Castle-Tanner bipartisan bill provides $3 billion in supplemental
funds for States to meet the costs of work programs for welfare
recipients. This is money in the bank, not just an authorization backed
by a hope that someday we might actually find this money.
The Castle-Tanner bipartisan bill provides real welfare reform and I
urge my colleagues to support this plan.
Mr. SHAW. Madam Chairman, I yield 2 minutes to the gentleman from New
Jersey [Mr. Zimmer], a distinguished member of the Committee on Ways
and Means.
Mr. ZIMMER. Madam Chairman, I thank the gentleman from Florida for
yielding me this time, and I commend him for his tenacious and
principled support for true welfare reform.
Madam Chairman, welfare as we know it has unmercifully condemned
generation after generation of Americans to a life without hope and
without access to the American dream. This bill will foster
independence by breaking the chains that bind families to the welfare
state.
The current system, which fosters poverty, despair, hopelessness, and
illegitimacy will be replaced with a program that generates hope,
optimism, and self-esteem. People will be accountable for their own
lives. Mothers and fathers will be responsible for the children they
bring into this world.
What this bill proposes is very straightforward: No more money for
nothing. It tells the poor that we will help you get on your feet but
we owe it to you as well as to ourselves, to require that you work for
your benefits, and that after a specified period of time you get a real
job.
You see, work is not punishment. Work is the foundation of the
American dream. It gives us self-respect and gives our children respect
for us and for themselves.
I urge those who have rejected reform in the past to reconsider for
the sake of our future. I urge this House to
[[Page H7800]]
pass this legislation. I urge the President to sign this legislation.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentlewoman from North Carolina [Mrs. Clayton].
Mrs. CLAYTON. Madam Chairman, I thank the gentleman for yielding me
this time.
Madam Chairman, in a ideal world we would not be forced to save money
while sacrificing even some of our children. In an ideal world we would
provide something to wear, something to eat, and a place to sleep for
all of our children, even those who happen to be born in circumstances
not of their own creation or their own will. In an ideal world we would
not set time limits and spending caps and impose budget savings
requirements on the most vulnerable people of our society, our
children.
I realize, however, we do not live in an ideal world. I too believe
we must reform our welfare system because the current welfare system
surely is not working. However, the proposed welfare system by the
Republicans is doomed not to work either. In fact, I offer to say that
it will not work for millions of children and for millions of mothers
that we want to be self-sufficient and who desire to work.
I intend to vote for Castle-Tanner because it treats our children
better than the bill before us treats them. It honors people's will.
The bill before us is short on reform, weak on work, and tough on
our children. Millions of children will be abandoned.
I admonish my colleagues, as they consider the decision they will
make in the context of the decisions we make all the time, and the ones
we have made. Last week this House refused to fund teenage pregnancy
prevention programs by $30 million, yet now we are talking about
teenage pregnancy as if we wanted to prevent it. We are now willing to
punish them, however, if indeed they happen to have a child.
We should have stepping stones for our children and not have them as
stumbling blocks. Recently the education funding was slashed. Where is
the development in our children? This House has voted numerous times to
cut nutrition programs.
We should not abandon our children. The proposal before us does not
honor the principle of work, responsibility and caring for children.
Mr. SHAW. Madam Chairman, I yield myself such time as I may consume
to advise the last speaker who said that our bill is tough on children
that the bill she referred to, which will be the Gephardt substitute,
mimics exactly what is in the bill that she is criticizing as far as
the children's program are concerned.
I would also tell the gentlewoman that in the bill there is some $6
billion of cuts in EITC, which is what the President criticized the
Republicans for as calling that a tax increase. It is not in our bill,
it is in her bill.
Madam Chairman, I yield 2 minutes to the gentlewoman from Washington
[Ms. Dunn], a distinguished member of the Committee on Ways and Means.
Ms. DUNN of Washington. Madam Chairman, I am involved in this debate
on welfare because I believe that the current welfare system and what
it does to children, and families is a crime. The system is cruel, it
is broken, and it needs to be fixed.
For the third time today, Madam Chairman, we are going to vote to
send to the President a welfare bill so he can keep his promise that he
made in his campaign to reform welfare. It is a clean bill and it
protects children.
It is based on three principles: One, that welfare should not be a
way of life; that these poor children, some of whom never have a
working role model in their lives, will not be put in that position
ever, ever again. It is also based on the second principle of returning
flexibility to the States; and, third, it is based on the principle
that if Government is going to provide incentives in our lives, that
the incentive in welfare should be to encourage personal responsibility
in our citizens.
Today I want to focus on one thing that is probably the most
important thing in this whole debate, and that is the children. Back
home in Washington State women tell me, ``Jennifer, my child support is
the sole difference between making ends meet and going on welfare.'' On
behalf of these women, we have a responsibility to make sure that
deadbeat parents pay their child support to their own flesh and blood
children.
{time} 1130
Today in this Nation, Madam Chairman, $34 billion is owed by parents
who have left their children's home to custodial parents. Thirty
percent of these people leave the State in order to avoid that
responsibility. I think it is outrageous. The tools this bill provides
give us the way to track those deadbeat parents down.
I know what it is like to raise children as a single parent. I have
done that. I worried about money, and I worried about child care. I
worried about how you fit a full-time job around the responsibilities
of my own children's needs. It is hard enough in my case, Madam
Chairman, where I did receive support. I cannot imagine what it would
be like when a parent did not receive that support.
It is the mothers and the children that we have included in these
provisions. As far as I am concerned, Madam Chairman, the President
needs to sign this bill for the sake of our children.
Mr. SABO. Madam Chairman, I yield 30 seconds to the gentlewoman from
North Carolina [Mrs. Clayton].
Mrs. CLAYTON. Madam Chairman, I want to respond to the distinguished
chair of the Committee on Ways and Means. The bill that he said that I
am supporting, I am delighted to be supporting, Castle-Tanner, really
indeed allows States to provide for vouchers, wherein his bill does
not.
Castle-Tanner also provides Medicaid coverage for children, where his
bill indeed does not. Castle-Tanner also has a no caps on assistance in
the event of an economic turndown. The bill he has makes no provisions
for that, or very limited, in their contingency fund.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentleman from
Maryland [Mr. Cardin].
Mr. CARDIN. Madam Chairman, I along with many of my colleagues on
both sides of the aisle have been working for almost 4 years to
dramatically reform our Nation's welfare system. The current system has
failed. A new system is needed. The Federal Government in partnership
with our States needs to provide temporary compassionate assistance to
those who have genuine need, making it clear that people who receive
welfare must become employed as soon as possible in a private sector
job. We must move people off of welfare to work.
My concern is that the Republican bill will move people off of
welfare, but in far too many cases our children will end up on the
streets.
The Republican bill is woefully inadequate in providing resources to
our States. It is inadequate in financing safe, affordable day care for
welfare parents. It does not adequately deal with one of the principal
problems in our welfare system; that is, preventing out-of-wedlock
births, particularly among our teenagers.
Quite frankly, the failure of the Republican bill is because it was
developed in a partisan political manner, rather than in an open
legislative format. We have not even really had a chance to review this
bill because it was developed by the Republicans in a closed meeting,
rather than using an open forum so that we could debate some of these
issues and could work out some of these issues.
The Castle-Tanner bill substitute is the only bill that has been
worked out in a bipartisan manner in an open forum. I urge my
colleagues to support the Castle-Tanner substitute. It is far better
than the Republican bill and although I believe it can be improved, I
urge my colleagues to vote for the substitute and against the
underlying bill.
Then let us work together, Democrats and Republicans, to dramatically
change our welfare system. It can be done this year. If our objective
is to get a welfare bill enacted, I urge my colleagues to follow that
action. If our objective is to get the President to veto another bill,
then I understand what the Republicans are doing.
Mr. SHAW. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from the State of Georgia [Mr. Collins, a valued member of
the Committee on Ways and Means.
Mr. COLLINS of Georgia. Madam Chairman, I thank the chairman for
yielding the time to me.
Madam Chairman, we have previously debated and passed legislative
proposals that will change the welfare
[[Page H7801]]
system. And although President Clinton vetoed those measures, he has
proposed welfare legislation of his own.
So today, we have two different approaches to welfare reform. We must
clearly understand that the real debate is about whether we are going
to just piecemeal reform the broken welfare system, or if we are going
to entirely change welfare as we know it.
We all agree the welfare system is a failure. It is an open-ended
Federal entitlement that encourages people to believe that receiving a
welfare check, free health care, and other free services without
working is their right. By the end of the decade, American workers will
have spent over $6 trillion on welfare programs. After 30 years under
the current system, our poverty rate remains unchanged and we have
millions of people trapped, dependent upon broken welfare programs.
Americans are tired of paying for a welfare system that just doesn't
work. And although Presidential candidate Clinton once stated that he
intended to change welfare as we know it, his proposal will only make
limited reforms to a system that fails those who receive welfare and
those working people who pay the bill.
In sharp contrast to the President's patchwork plan, the Republican
majority's proposal changes the welfare system as we know it. The
Republican plan will remove the one-size-fits-all entitlement system.
This measure will transfer the management authority from the
bureaucratic Federal level to the States. Local authorities will
finally have the ability to design a welfare program that best meets
the needs of the poor in their region. Welfare programs will be
administered on a local level through a State/Federal financial
partnership. The responsibility for administering welfare programs will
be where it needs to be: closer to those who know what works, closer to
those who need the assistance, and closer to the workers who pay the
bill.
Working Americans support the Personal Responsibility and Work
Opportunity Act because it will comprehensively change the welfare
system as we know it.
Mr. SABO. Madam Chairman, I yield 2 minutes and 30 seconds to the
distinguished gentleman from California [Mr. Waxman].
Mr. WAXMAN. Madam Chairman, I rise in opposition to the Republican
welfare bill. This legislation masquerades as reform, but it is not
that. It is instead a giant step back into poverty for millions of
American children.
But it is more. This bill will have a devastating impact on the
health care system in many urban areas and in many States in this
Nation because of its mean-spirited and shortsighted provisions to deny
Medicaid funds for necessary medical care for legal immigrants.
Whatever the view Members may have as to whether we should provide
cash support to legal immigrants who end up in need of assistance,
there can be no justification to deny health care services to persons
who are legally in this country. Cutting Medicaid funds is not going to
keep people from getting sick. It is not going to keep them from
needing health care services. All this bill will accomplish is to keep
them from going for care when they need it and causing them to be
sicker and more costly cases when the situation becomes so bad they end
up in an emergency room.
Local hospitals and local governments are going to be left holding
the bag for these costs. The sad fact is, they cannot afford it. There
should not be a Member from California in this House that supports this
policy. It will have devastating consequences for Los Angeles, and it
will have devastating consequences for the State of California.
The $12 billion reduction in Medicaid expenditures resulting from
these provisions is fully one-fifth of the expenditures my Republican
colleagues were trying to cut from Medicaid with their block grant
proposal. Trying to achieve a big chunk of those so-called savings
through the back door of the welfare bill by taking away any access to
Medicaid for legal immigrants is wrong. It will hurt urban hospitals.
It will hurt innocent people. It is the wrong thing to do.
Mr. SABO. Madam Chairman, will the gentleman yield?
Mr. WAXMAN. I yield to the gentleman from Minnesota.
Mr. SABO. Madam Chairman, is what the gentleman is saying that this
bill will mean a significant transfer from Federal resources to
obligations on the local property tax?
Mr. WAXMAN. Absolutely.
Mr. SABO. Madam Chairman, I thank the gentleman for his answer.
Mr. SHAW. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from Pennsylvania [Mr. English], a valued member of the
Subcommittee on Human Resources of the Committee on Ways and Means.
Mr. ENGLISH of Pennsylvania. Madam Chairman, today we will vote on
fundamental welfare reform legislation, a mainstream proposal that
working families across the Nation have been demanding for years. Three
decades and $5 trillion ago, this Nation declared war on poverty. What
was the outcome? All we have to show are casualties. Children killing
children, boys and girls growing up without fathers, and welfare
recipients spending an average of 13 years out of work because work
does not pay as well as Uncle Sam.
Madam Chairman, generations have been trapped in this soul-destroying
system, prisoners of the lost war on poverty. I have to ask this House:
How many more of our children must we lose to poverty and violence
before we say, enough is enough? We have the opportunity today to
change America by fixing the failed welfare state and restoring the
American dream for an abandoned underclass.
Under this bill, welfare will be converted into a work program. Every
person receiving welfare must work within 2 years or cash benefits will
end. Under our bill, lifetime welfare benefits will be limited to 5
years but up to 20 percent of families can be exempted for hardship.
States are required to have 50 percent of welfare families working by
2002.
Our bill will end welfare payments for noncitizens; those we welcome
to our country as guests should not abuse the hospitality of hard-
working Americans. American families are spending $8 billion every year
on welfare for noncitizens. That is not fair.
Our bill will stop the destructive practice of giving Social Security
cash benefits to drug addicts and alcoholics, blighting their lives at
great public expense.
Madam Chairman, we in Washington need to learn from past mistakes. We
must create a welfare system that ties welfare rights to responsible
behavior.
I urge all of my colleagues to put aside petty partisan politics.
Support this bill and allow this Congress to leave an enduring legacy
of social reform.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentlewoman from Florida [Mrs. Meek].
(Mrs. MEEK of Florida asked and was given permission to revise and
extend her remarks.)
Mrs. MEEK of Florida. Madam Chairman, I thank my ranking member for
yielding the time to me.
I say over and over again, this is a flawed bill. It is not hard to
see it. They are wrapping it in politics to try and save the fact that
there is no substance in this bill that is going to save the children
of this country.
Everything I have heard from the majority side makes me know they
have never, ever experienced welfare. Now they are beginning to try to
reform it. I want to reform it. I know it needs to be reformed. But it
does not have to be reformed on the backs of the children of this
country. It does not have to be reformed on food stamps. And they are
having a similar idea that people who get food stamps, AFDC, do not
know how to choose their food. That is not correct. The same Members
who feel that way are the ones who drafted this bill.
This bill is going to deny 300,000 children of legal immigrants from
getting food stamps. Do they want to cut children off from food? They
have said they have a family-friendly atmosphere in the Republican
Party. This does not meet the test of family-friendly.
Until yesterday they have changed back and forth so much, it is hard.
I have not seen this new language. But yesterday their bill prohibited
benefits and vouchers. Now they have switched over and now they are
making that, they are putting that in, but they are not requiring it.
They are not fooling
[[Page H7802]]
me, because they are making it permissive. They cannot do it or they
may do it. Why not say, as our bills do, that they will be required to
provide vouchers to these children who will go off Medicaid?
My colleagues have exceeded the limits of care and sympathy and
compassion which this Congress is supposed to give to the American
people. They are not fooling the American people by saying this is a
good welfare bill. We all want to reform welfare. Why can we not get
together, both Republicans and Democrats, put our heads together and
reform this without having a one-sided view toward Medicare and toward
welfare?
I say to my colleagues, turn this bill back. I do not blame the
President of the United States. Every time we send him a bad bill, he
should veto it, no matter how many times.
Mr. SHAW. Madam Chairman, I yield 1 minute to the gentlewoman from
Washington [Ms. Dunn].
Ms. DUNN of Washington. Madam Chairman, I thank the gentleman for
yielding the time to me.
I am very alarmed at the misinformation I have heard last evening and
today coming out on the issue of child care. I want to set something
straight. In the Republican bill, the bill that we are debating and
voting on today, in fact, we have been told by the people who make
these estimates that we need, in child care, $16 billion to perform the
duties that are outlined in the bill. We have, in fact, in the
Republican bill provided $23 billion.
Madam Chairman, I just want to say in my book of mathematics, that
leaves $7 billion aside that can be helped to ease working mothers off
AFDC into the working world.
{time} 1145
In addition, Madam Chairman, that is $4.5 billion more than is in the
current child care portion of the welfare bill. It is also very
important, as it is also $2 billion more than the President has in his
own legislation.
Mr. SHAW. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from Nevada [Mr. Ensign], a member of the Committee on Ways
and Means.
Mr. ENSIGN. Madam Chairman, I think we have to ask ourselves a couple
of fundamental questions. First of all, has the current welfare system
worked? Has it helped children? Is it compassionate, especially to
those children? Should we continue to give cash payments to prisoners
and drug addicts?
The answers to these questions are obvious. Out-of-wedlock births
have skyrocketed since our welfare system began. Crime rates have
skyrocketed. This is federally funded child abuse.
Madam Chairman, we tell the teenage mom, ``If you have a child out of
wedlock, move away from your parents, we'll get you an apartment. By
the way, don't work, don't save, and if you want a little extra money,
have another child out of wedlock.'' This is truly federally funded
child abuse.
Our bill does something remarkable. It reforms welfare in a
compassionate way. It has $2 billion more, as the previous speaker
talked about, for child care than the President does so that in the
transition from welfare to work we can help families do that.
We also provide transitional health care, which is one of the biggest
incentives to staying on welfare, the lack of health care coverage.
We also stopped cash payments to noncitizens and prisoners. There is
a fundamental disagreement between that side of the aisle and this side
of the aisle on whether we should continue cash payments to
noncitizens. We believe, I believe strongly, that it should be reserved
for U.S. citizens.
We also fundamentally believe that we to have a limit, a time limit
on the amount of time that somebody can receive welfare benefits. There
is no greater incentive than to know that at the end of a certain
period of time they are going to have to get a job, they better get
their life together, they better get out there, take advantage of the
job training we provide, get their life together so that they can get
off of welfare so that they can take care of their own family and have
that personal responsibility.
Lastly, from somebody who grew up with a deadbeat dad, I am
applauding this bill for the strong child support enforcement
provisions that it has so we can go after those deadbeat parents who
are abandoning their children and not taking full responsibility.
I thank the chairman of the subcommittee for writing a great bill.
Mr. SABO. Madam Chairman, I yield myself 1 minute to say I find it
very unfortunate when we compare legal immigrants in this country with
prisoners and put them in the same category.
In fact I find it sort of personal. My parents were both immigrants
to this country. I remember when my mother became a citizen. I also
hear this discussion of nothing has ever been given or done in
conjunction with legal immigrants. My father was a homesteader. That
was how he and many other immigrants got started in this country, and
they worked hard and did well.
But regardless of how one feels on this question, to rhetorically
combine legal immigrants with prisoners I think is totally unfortunate.
Madam Chairman, I yield 2 minutes to the gentleman from Maryland [Mr.
Hoyer].
(Mr. HOYER asked and was given permission to revise and extend his
remarks.)
Mr. HOYER. Madam Chairman, there is a consensus on this floor that
our welfare system undermines the core values Americans believe in:
responsibility, work, opportunity, and family. Too many people who do
not want to be on welfare cannot escape it. Too many people who want to
be on welfare are allowed to coast at the taxpayers' expenses.
We agree that we must create a different kind of social safety net
which will uphold the values our current system undermines. It must
require work, it must demand responsibility, and it must protect
children.
Today the House will consider two alternative welfare reform
proposals. One, offered by the House Republican leadership, I suggest,
is not reform at all, although it has much in it with which we agree
and Castle-Tanner agree. It lacks the funds for serious work
requirements. CBO says so, not us. And under this bill children can be
denied all support, even in an emergency, when their families are cut
off welfare due to time limits.
When the American people demanded an end to welfare, this is not what
they had in mind.
The so-called welfare reform bill offered today by the Republican
leadership makes a mockery, in my opinion, of the American values of
work and family. It does have progress in it. But it is not bipartisan,
and that is what the American public wanted. They wanted us to come
together in-bipartisan manner and reform welfare. Governor Castle, now
a Congressman, and the gentleman from Tennessee [Mr. Tanner] have done
exactly that. Their bill brings together and reinforces family values,
while meeting our responsibilities to our people and reinforcing our
expectations on their personal responsibility.
I urge my colleagues to come together in a bipartisan fashion, as
most of the Members on this side of the aisle will do. Democrats will
support a bipartisan effort to accomplish this objective. All of us
should do the same.
America's welfare system is at odds with the core values Americans
believe in: Responsibility, work, opportunity, and family. Too many
people who don't want to be on welfare can't escape it. Too many people
who want to be on welfare are allowed to coast at the taxpayers'
expense. In both cases, this broken system weakens families, undermines
personal responsibility, destroys self-respect and initiative, and
fails to move able-bodied people from welfare to work.
A complete overhaul of the welfare system is long overdue. We must
create a different kind of social safety net which will uphold the
values our current system destroys. It must require work. It must
demand responsibility. And it must protect children, to break the
generational cycle of poverty.
Today, the House will consider two alternative welfare reform
proposals. First, offered by the House Republican leadership, is not
reform at all. It lacks the funds for serious work requirements. It
shreds the safety net for chidlren. The Nation's Governors adopted a
resolution expressing their concern about restrictions on States'
flexibility and unfunded costs in the Job Program, a shortfall of $13
billion which will knock the teeth out of the much-touted work
requirements in the Republican bill.
[[Page H7803]]
The second alternative, the bipartisan Tanner-Castle welfare reform
proposal, will truly reform our broken system. It, and it alone,
requires all recipients to start work--real work, in real jobs--within
2 years. It provides funding to make those requirements real. It
establishes a 5-year lifetime limit for welfare benefits, with a State
option to create a shorter limit. It requires teen parents to live at
home or in a supervised setting, and teaches responsibility by
requiring school or training attendance as a condition of receiving
assistance. It includes tough child support enforcement provisions to
make sure deadbeat parents live up to their responsibility to support
their children.
Unlike the Republican leadership proposal, the Tanner-Castle bill is
tough on work without being tough on kids. It includes additional
funding above the leadership bill for child care, to make sure children
aren't left on the streets when their parents go to work. Under the
Republican leadership bill children could be denied all support, even
in an emergency, when their families are cut off welfare because of a
time limit. The bipartisan bill provides vouchers to meet the needs of
children if their parents exceed the welfare time limit. While the
Republican leadership bill would deny Medicaid coverage for children in
families who exceed a time limit, the bipartisan bill ensures that no
child loses medical care because of welfare reform.
The so-called welfare reform bill offered today by the Republican
leadership makes a mockery of the American values of work and family.
It contains a hollow promise of work requirements which the Nation's
Governors and the Congressional Budget Office both concede States can
never achieve. It strips poor children of food assistance and medical
care. I do not believe that when the American people demanded an end to
welfare as we know it, this is what they had in mind.
The bipartisan Tanner-Castle bill supports those American values we
all share. It demands work and personal responsibility without
shredding the social safety net and abandoning children. I urge my
colleagues to reject the Republican leadership bill, and support the
bipartisan Tanner-Castle proposal.
Mr. SHAW. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I would like to respond very quickly to what the
gentleman from Minnesota [Mr. Sabo] said. Nobody in this House is
criticizing or putting anything saying that people coming into this
country to experience the American dream are in the class of felons.
That is ridiculous. That argument falls on deaf ears. It has no
relevancy.
But I would like to share this with him. When his parents or
grandparents came into this country, they made a pledge not to become a
public charge, and I would bet next week's paycheck that they did not
become a public charge. They came for a better way of life, and they
went to work. They made something of themselves, and they had a child
or a grandchild that came to the U.S. Congress.
I would also like to say, when we are talking about aliens, aliens
over 65 are five times more likely to go on SSI than citizens over 65.
Alien SSI applications have increased 370 percent from 1982 to 1992. We
have got to stop making welfare available for citizens of other
countries. It is that simple.
Madam Chairman, I yield 2 minutes to the gentleman from Nebraska [Mr.
Christensen], a valuable member of the Committee on Ways and Means.
Mr. CHRISTENSEN. Madam Chairman, welfare reform is an issue, like the
previous speaker said, that we can agree on, that we can come together
on in a bipartisan fashion and that we can work together on. I think
all agree that the welfare system has caused people to rely on the
Government instead of themselves. I think Senator John Ashcroft said it
best last week when he talked about the system, that it has deprived
hope, it has diminished opportunity, and it has destroyed lives.
But there are questions that we have to ask. After spending billions
of dollars, has the Government solved the problems of poverty and of
dependency? How many more families are we going to allow to be trapped
in the current system before we get a bill out of this House? How many
more children must we sacrifice to poverty before we say enough is
enough?
As my colleagues know, we have heard many people say, and I think the
statement is accurate, the fact is we cannot have a moral environment
to raise children in America when we have 12-year-olds having babies,
15-year-olds killing each other, 17-year-olds dying of AIDS, and 18-
year-olds who are graduating with diplomas that they cannot read. If we
are to restore our moral health in this country, we must change the
system that fosters that environment.
As Franklin Delano Roosevelt said in the late 1930's, giving
permanent aid to anyone destroys them. Our bill gives people a chance.
It puts a hand out so they can help themselves.
It is time that we worked together in a bipartisan fashion to end
welfare as we know it.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from Washington [Mr. McDermott].
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Madam Chairman, the gentlewoman from Florida put her
finger on the fundamental problem here, and that is that the Republican
bill will not guarantee support to children if all else fails.
Now, my brother runs the public assistance program in the State of
Washington. I know the facts. In the State of Washington there are
100,000 adults on welfare, 125,000 people, unduplicated count, on
unemployment. That is 225,000 people on average every month in the year
1995. If they all showed up for a job on tomorrow, there would be jobs.
Last year they created 44,000 new jobs in the State of Washington.
That means 181,000 adults in the State of Washington, that DRI, McGraw-
Hill, the economic forecaster says is the fifth most rapidly growing
State in this country, could not get jobs, 181,000 people.
Now the Labor Department has recently said that the unemployment rate
is as low as it ever is. Tomorrow Mr. Greenspan is going to meet with
the Federal Reserve to talk about raising the interest rates so that we
can slow the economy so we do not have inflation. Now, we cannot slow
the economy and stop job creation when we have 181,000 people in 1995
in the State of Washington who could not get a job and say to their
children, ``Hey, folks, kids, I'm sorry. Your Ma went down for a job,
but there was none, and you can't eat.'' That is what the Republican
bill says. They will not give a voucher if they have done everything,
and there is no way.
I think the President, who cares about the kids in this country, is
going to take a long careful look at what comes out of this body
because, if we are not careful of how we deal with the weakest and the
most vulnerable in our society, we are not a civil society.
Mr. SHAW. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from Texas, Mr. Sam Johnson, from the Committee on Ways and
Means.
(Mr. SAM JOHNSON of Texas asked and was given permission to revise
and extend his remarks.)
Mr. SAM JOHNSON of Texas. Madam Chairman, I have to disagree with the
gentleman that just spoke. It is a shame, but I tell my colleagues
that. The Government has been spending billions of dollars, and I would
just like to know, has the Government solved our problems of poverty
and dependency? I think not. How many more families are going to be
trapped in the current system while we spin our wheels here in
Washington, DC. talking about it? Do my colleagues not think that State
and local governments, churches and communities can do a better job of
caring and providing for our Nation's welfare recipients? Of course
they can.
As my colleagues know, how many more of our Nation's cities are we
going to surrender to poverty and violence before we here in Washington
decide to act? Why does Washington continue to promote a welfare system
that encourages illegitimacy and discourages parents? Should not
Washington encourage work? I think so.
I tell my colleagues what this bill is about: compassion, hope and
opportunity. It is about people coming together and taking charge of a
system that has failed them and every mother and child on welfare.
Do we trust Washington, or do we trust the local charities, the
churches, community centers, and local government officials? I trust
and believe the American people at home will have the answer. Can we
not do better than the welfare system that we have in place right now?
[[Page H7804]]
This strong welfare reform bill ends welfare as we know it. It gives
power back to the States, power back to the communities, power back to
the people at local communities to solve their own problem. It is a
must that we act today to pass this legislation.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentlewoman from California [Ms. Waters].
{time} 1200
Ms. WATERS. Madam Chairman, both of these welfare reform bills before
us are little more than poll-driven political responses to a real
problem. This is not true welfare reform. Instead we are placing a foot
on the necks of poor children and families and calling it reform. Every
Member of Congress understands the difference between an AFDC
entitlement and not having one. We all understand the difference
between block grants and Federal involvement in this problem.
In desperation, I appeal to each Member's spiritual sense. I
challenge those who claim moral values. To the Christian Coalition
supporters, I challenge you today, the Bible is replete with examples
of how we are obligated to treat the poor. Witness Proverbs 14:31: He
who oppresses a poor man insults his maker, but he who is kind to the
needy honors him.
Proverbs 29:7: A righteous man knows the rights of the poor; a wicked
man does not understand such knowledge.
Ecclesiastes 4:1: Defraud not the poor of his living, and make not
the needy eyes to wait long.
Ecclesiastes 4:4: Reject not the supplication of the afflicted;
neither turn away thy face from a poor man.
Proverbs 21:13: Who so stoppeth his ears at the cry of the poor, he
also shall cry himself, but shall not be heard.
And Deuteronomy 15:7-8: Thou shalt not harden thine heart, nor shut
thine hand from thy poor brother; but thou shalt open thine hand wide
unto him, and shalt surely lend him sufficient for his need.
Mr. SHAW. Madam Chairman, I yield 1 minute to the distinguished
gentleman from Tennessee [Mr. Wamp].
(Mr. WAMP asked and was given permission to revise and extend his
remarks.)
Mr. WAMP. Madam Chairman, one of the most wonderful lessons for the
young people of this country is that great things can be done in our
society when it does not matter who gets the credit. The Republicans
should be commended for taking Medicaid off of their welfare bill
because the President, our President, came here in January and asked us
for a clean welfare bill and said he would sign it into law. We should
not worry if he gets the credit for doing that.
This is the clean bill that he asked for; it is. We disconnected
Medicaid so he would sign it, not so he would veto it. We should pass
it today and give him this clean bill. It does not matter if he gets
the credit. The Democrats should not care if the Republicans get the
credit, because it is these children that are trapped in dependency and
poverty that are going to get the benefit and the reward.
We are doing the people's business. We should support the conference
report when it comes back, and we should support the President so he
can sign this bill into law and do the people's business.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from California [Mr. Fazio].
Mr. FAZIO of California. Madam Chairman, I rise in strong support of
the bipartisan welfare reform bill offered by Mike Castle and John
Tanner.
The Castle-Tanner bipartisan bill is a much better bill than the
alternative presented by the other party. It requires work, and
provides the support needed to make the commitment to work a reality
and not just rhetoric.
The bipartisan bill contains many provisions which represent a
moderate, more balanced approach to welfare reform while still
achieving over $50 billion in savings.
It includes stronger protections for children and families under the
block grant and assures the maintenance of a national nutrition safety
net so that families will not go hungry and children will have the
nutrition they need to grow and learn.
The bipartisan welfare reform bill improves past efforts made by this
House in significant ways while continuing to promote personal
responsibility as its central theme.
Indeed, this approach requires all welfare recipients to sign an
individual responsibility contract which outlines a plan for the
recipient to become self-sufficient as quickly as possible.
And the bipartisan bill holds deadbeat parents responsible for their
children through strong child support enforcement measures.
Castle-Tanner also ensures greater State flexibility by giving the
States the option of providing vouchers for the needs of the child, or
emergency assistance to families that have reached the time limits but
have been unable to find a job.
This bill also provides a more substantial contingency fund to assist
States with high unemployment or increases in child poverty. If the
fund is exhausted during hard times, the bill creates an uncapped
contingency fund for real emergencies.
My colleagues, this bill provides greater resources to ensure that
welfare reform will succeed, it improves State flexibility, and it
guarantees fiscal and personal responsibility. Above all, it protects
innocent children.
We have an historic opportunity to pass a meaningful, bipartisan,
welfare reform bill that the President will sign. Let's not squander
this chance. I urge you to vote ``yes'' on the bipartisan substitute.
Mr. SHAW. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I would ask the gentleman from California if he is
aware that the bill that he has endorsed imposes a tax increase which
the President characterized as a tax increase on the working poor by
slashing EITC?
Mr. FAZIO of California. Madam Chairman, will the gentleman yield?
Mr. SHAW. I yield to the gentleman from California.
Mr. FAZIO of California. Madam Chairman, I would say to the gentleman
from Florida, certainly this side of the aisle has been totally opposed
to the Republican plans to slash the EITC and the budget.
Mr. SHAW. Reclaiming my time, Madam Chairman. I would advise the
gentleman from California that his bill does precisely that. Our bill
does not.
Madam Chairman, I yield 2 minutes to the gentleman from Ohio [Mr.
Traficant].
(Mr. TRAFICANT asked and was given permission to revise and extend
his remarks.)
Mr. TRAFICANT. Madam Chairman, I support the bill. While Congress has
tried with good intentions, the Congress of the United States has
failed. What began as a hand up is now a handout. Generation after
generation are literally trapped at the bottom of the ladder without a
good view of what America has to offer. The welfare system is not only
broken, it is token. It has become a social placebo with a failing
track record.
I ask all who are in here today to deny the following. I say the
welfare system currently promotes dependency and illegitimacy,
discourages thrift, discourages work, separates, separates and destroys
families, isolates children, and from an early age, stifles their
ambition, no less.
There is one other element here, folks, in this formula. Our current
welfare system penalizes hardworking Americans who pay for this failing
train that keeps rolling down the track at us, hurting us.
This is not about Republican and Democrat. There should be more
consensus today. This is about a welfare system that is bad for
America. Let me submit that the Founders are rolling over in their
graves looking at the great Constitution and saying, my God, how could
this great instrument somehow be so misused, misapplied, that there are
now Americans without hope, Americans without goals, and Americans
without ambition? Shame, Congress. Come together on this issue. Pass
this bill.
Mr. SABO. Madam Chairman, I yield myself 30 seconds.
Madam Chairman, I would indicate to the gentleman from Florida [Mr.
Shaw] that all the EITC changes in Castle-Tanner rely on compliance.
None of them change the phase-out rates as proposed originally by the
House Republican plan. Those are not
[[Page H7805]]
included in Castle-Tanner. Fortunately, you have pulled those
provisions out of your bill but they are scheduled to reappear in your
budget resolution in reconciliation bill No. 3, and then some further
additional cuts in EITC even beyond what you did in this bill
originally.
Madam Chairman, I yield 2 minutes to the gentleman from Massachusetts
[Mr. Olver].
(Mr. OLVER asked and was given permission to revise and extend his
remarks.)
Mr. OLVER. Madam Chairman, I thank the gentleman for yielding time to
me.
Madam Chairman, along with every Member of this Chamber, I believe
that the current welfare system needs to be reformed. Over the course
of this debate, which has continued now for more than a year, each and
every one of us has voted to end welfare as we know it. Some of us want
to move people to work while protecting the well-being of our children.
Others want to squeeze as much money as possible from the system even
if the action is punitive, unworkable, and threatens children. That is
the crucial difference between the Republican bill and the bipartisan
bill that we have before us today.
Madam Chairman, H.R. 3734, the Republican bill, offers little
protection for poor children. H.R. 3734, the Republican bill, prohibits
vouchers for children of parents who have reached the time limit on
welfare but cannot find jobs. H.R. 3734 slashes food stamps, the
ultimate social safety net, assuring that more of our own children, our
own poor children, will go hungry in a country whose farmers are so
magnificently productive that they can feed half of the world.
H.R. 3734 ends the guarantee of child protection and child abuse
services, and worst of all, it ends the guarantee of health coverage
for millions of poor women and children. We all want to see welfare
reformed, Madam Chairman, but we should not jeopardize the health and
well-being of children who are really totally without responsibility
for the conditions that they are forced to grow up in.
I urge a ``no'' vote on the Republican bill, Madam Chairman.
Mr. SHAW. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I would invite the gentleman from Minnesota to read
on page 7, subtitle B, the earned income tax credit of the gentleman's
bill. It provides and it has been scored that that is a $6 billion
statement. The gentleman stands there and tells us that we are going to
somehow put this into our bill. It is not in our bill, it is in the
gentleman's bill.
It is a tax increase. It is the gentleman's problem, and he is going
to have to deal with it. We took it out of our bill because we did not
want a tax increase on the working poor. He left it in his bill because
obviously he wanted to take $6 billion out of the pockets of working
Americans.
Madam Chairman, I yield 2 minutes to the gentlewoman from Washington
[Ms. Dunn].
Ms. DUNN of Washington. Madam Chairman, I thank the gentleman for
yielding time to me.
Madam Chairman, Democrats have been arguing today that noncitizens
are less likely to receive welfare than citizens, but the leading
scholar in this area, whose name is George Borjas of the Kennedy
School, says just the opposite.
We have a chart here that I would like Members to look at. These
numbers are percentages of households receiving welfare programs. The
first line says ``Aid to Families with Dependent Children,'' our AFDC
program. 4.4 percent of immigrant households receive this kind of aid,
as opposed to 2.9 percent of folks who are citizens of the United
States, and the chart continues.
In short, Madam Chairman, I just want to say that there is simply no
question that some Members are today on this floor spreading
misinformation. Welfare for noncitizens has gotten out of hand. We have
an opportunity through this legislation to change that.
Madam Chairman, I would say, too, that America is a generous country.
We welcome legal immigrants into this Nation, as long as they are here
because they want to take advantage of a nation of opportunity. But we
can no longer ask our citizens who work for a living to support people
who are not citizens of the United States.
Mr. SABO. Madam Chairman, I yield 1\1/2\ minutes to the gentleman
from Michigan [Mr. Levin].
Mr. LEVIN. Madam Chairman, the Republican bill is weak on work. It
does not provide the resources, according to CBO. I want to say
something, though, to my friend, the gentleman from Florida [Mr. Shaw],
on the tax subject. Look, we forced you to drop your tax increases on
the working poor. They were in your bill and you know it. We forced
them out. Every bit of the EIT change in Castle-Tanner relates to
compliance.
Mr. SHAW. Madam Chairman, will the gentleman yield?
Mr. LEVIN. I yield to the gentleman from Florida.
Mr. SHAW. You forced it out, and where did it go? It went to your
bill.
Mr. LEVIN. Madam Chairman, I take my time back. The gentleman is 100
percent wrong. You had a phasing down of the amount of money people
could earn and still be eligible for the EITC. You had changes in terms
of calculation of Social Security and its impact on EITC. We do not
change the substance of the EITC law as it affects the working poor.
We forced you not to do that, so do not use that sham argument. We
say there should be compliance. We say the law should be followed. That
is where all of our money is, and it is disgraceful that you do not
have it in, and that you for months and months wanted to hit the
working poor. Shame on you for using that argument.
Mr. SHAW. Madam Chairman, I yield myself such time as I may consume.
I want to respond to my good friend, a valued Member and a good friend
of mine, and someone who has really worked hard, trying to work on
welfare reform.
Madam Chairman, I can tell the gentleman from Michigan, he is wrong.
He has the increase in his bill. We do not have the increase in our
bill. The gentleman gets up there and says shame on us for having it in
there and then taking it out. That is absolutely ridiculous.
{time} 1215
Mr. LEVIN. Madam Chairman, will the gentleman yield?
Mr. SHAW. I yield to the gentleman from Michigan.
Mr. LEVIN. Madam Chairman, compliance is not an increase.
Mr. SHAW. Modification is. I would tell the gentleman, read section
1023 of your bill.
Mr. LEVIN. I have read it.
Mr. SHAW. Modification of Adjusted Gross Income Definition for the
Earned Income Tax Credit. You take working poor out by a modification
of the definition.
Mr. LEVIN. That is simply not true.
Mr. SHAW. Madam Chairman, I reserve the balance of my time.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentleman from
North Dakota [Mr. Pomeroy].
Mr. POMEROY. Madam Chairman, the plan of the majority to reform the
welfare system is weak on work and tough on kids. In my comments, I
will talk about the work requirement.
We must reform the welfare system. This reform is in fact overdue.
The heart of the reform has to be time-limiting benefits and instilling
a tough work requirement. There is broad agreement in the Chamber on
that point. But the key distinction between the proposals before us
this afternoon is that the bipartisan plan has a work requirement which
will succeed and the majority's plan cannot.
This is a very complex issue. There is nothing all that tough about
understanding what it takes to make a work requirement succeed.
Individuals presently receiving welfare benefits and not in a workplace
must have the training required to achieve vocational skills before
they will be employable and can stand on their own as constructive
members in the workplace. Folks without jobs just will not be able to
get jobs if they do not have job skills and employers. We cannot expect
employers to hire folks that offer nothing in terms of what they need
in the workplace.
The nonpartisan Congressional Budget Office has assessed the two
plans on this critical point. They say the work requirement in the
bipartisan plan can
[[Page H7806]]
succeed but the work requirement in the majority's proposal falls $9 to
$12 billion short of what it takes to make a work requirement succeed.
That is the choice. The bipartisan plan, which time-limits benefits
and gets today's recipients off welfare into the workplace as
constructive members of our society, versus the majority's proposal
which, while it claims to have a work requirement, by the Congressional
Budget Office's own evaluation it falls short of what it takes to
create a work requirement which has any chance of getting people off of
the welfare rolls and into the workplace.
Vote ``yes'' on Castle-Tanner and no on the majority proposal.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentlewoman from
Connecticut [Mrs. Kennelly].
Mrs. KENNELLY. Madam Chairman, there are differing opinions on to how
to reform welfare. But one area that we all agree on is the need to
improve our child support laws. In fact, this might be the single area
where we have had consistent bipartisan cooperation.
However, a last-minute change was inserted into the bill's child
support title that weakens assurances of fair child support awards.
The majority's welfare bill now guts a provision in current law that
requires States to review child support orders every 3 years for AFDC
families.
I should first point out that this change will cost the Federal
Government $63 million over the next 6 years. Child support paid on
behalf of families on AFDC helps offset the cost of welfare. Therefore,
regular updates in child support orders mean fewer dollars being spent
on AFDC. The change in the bill ignores this fact and lets noncustodial
parents off the hook, while sticking Federal taxpayers with the bill.
I am also concerned this change in modifying child support orders
might hurt families leaving AFDC. If we want families to leave welfare
and become self-sufficient then we should ensure that they have the
child support they are owed.
I urge my colleagues to think twice before watering down child
support enforcement, while preaching getting tough on young mothers.
Let's all agree that we need tough child support enforcement that says
both parents should be involved in providing for their children.
Mr. SHAW. Madam Chairman, I yield 3 minutes to the distinguished
gentleman from Louisiana [Mr. Hayes], a member of the Committee on Ways
and Means.
(Mr. HAYES asked and was given permission to revise and extend his
remarks.)
Mr. HAYES. Madam Chairman, it was the mid-1960's, and I remember the
day very well when as a student in a Louisiana public high school and
part of a debate squad, we were talking about Lyndon Johnson's effort
at a Great Society with an alleged war on poverty. Three decades later,
that same high school is in the midst of a war with drugs, teen
pregnancy, and guns. Poverty has not changed. Over the course of that
30 years, America has spent $5 trillion, an amount ironically close to
the total national debt, on a fake war on poverty.
So what happens to real veterans of real wars? Oh, I represent many
of them. I represent a young man who was in a real war in Vietnam, who
has got to find a way through his impaired health to get someone to
drive him almost 100 miles to go to a real military installation to
have a real druggist give him an honest, legitimate prescription.
Unfortunately, within my congressional district there are crack
addicts that cannot be evicted from Federal public housing because
their neighbors cannot find a legal way to throw them out to prevent
their own kids from being sold crack, and that person has a Federal
welfare check delivered to their doorstep.
I represent a group of Americans who in that three decades now knows
that today they must work and work and work until May 7 of each year
just to pay Government taxes. Then they get to earn money for their own
family. Within the course of that work they recognize that there is
almost $200 billion a year, most of which is thrown away on the dole to
families who put work behind the rewards of a Federal handout. In 17
States, the equivalent of welfare for starting welfare recipients is
above $10 an hour. In 40 States, including my Louisiana, a starting
welfare recipient is above $8 an hour, which is better than in many
counties a starting teacher or a starting police officer.
There are the kind of things where America looks and says: We don't
want to change welfare as you folks in Washington know it, we want to
change welfare as we know it in our neighborhoods, where senior
citizens are terrified to leave at night because the monies that are
diverted in a failed system for three decades prevent our own safety,
our own sanctity, and the educational future of our own children.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentleman from
Rhode Island [Mr. Kennedy]
Mr. KENNEDY of Rhode Island. Madam Chairman, do you not love all this
talk about how we are going to get money from these poor people to give
money to other constituents who are more deserving? Yet this same
Republican majority who is talking about cutting $53 billion from
welfare has no problem giving a tax cut of $245 billion over 7 years,
better than half of which goes to individuals and families with incomes
of $100,000 or more.
It seems to me that our Republican friends are against welfare for
the poor but they have no problem with welfare for the rich. I do not
want to hear my Republican colleagues talk about local control, because
I worked in a State legislature and I know what block granting is all
about. This mantra of States rights, let the States decides, let the
States manage it, in my State of Rhode Island, that is a prescription
for disaster. I will tell Members why. Because without the assistance
that comes through entitlement programs, the money goes to the States.
So the money goes to the State bureaucrats; it does not go to the women
and children and the poor people who need the assistance.
Once again under States rights, just as it stood 30 years ago, States
rights means justice will depend on geography. If you are a poor person
in Rhode Island, you will not be treated the same as if you are a poor
person in a State like Tennessee, which has got a much better economy
than we have in Rhode Island.
Finally, my last point is that what this bill does to legal residents
is shameful. To cut assistance to people who already pay taxes and in
fact tax-paying, legal residents who do not enjoy many of the
exemptions that regular citizens enjoy because they have not attained
citizenship. They will be denied the same benefits as citizens. This to
me represents no more than the same immigrant bashing that this
majority has continued all 2 years it has been in the majority.
Mr. SHAW. Madam Chairman, I yield 1 minute to the gentleman from
Maryland [Mr. Gilchrest].
Mr. GILCHREST. Madam Chairman, I thank the gentleman for yielding me
this time.
Madam Chairman, I think to a large extent the debate has covered most
of the material on why it is important to change the welfare system as
we know it today. I do not think there is one person in this Congress
that would say the welfare system is working. It has perpetuated the
paralysis of poverty far too long.
There are some minor disagreements about how we ought to move
forward. But at least we as a Congress want to move forward to make a
fair assessment, to provide a program so that people have a sense of
opportunity for the wonders that this Nation has to offer.
This program that the gentleman from Florida [Mr. Shaw] is offering
before this Congress does some amazing things. He discovers, in my
judgment, the mystery of human initiative, and that is a sense of
responsibility and a sense of dignity for all Americans.
This is a fair bill, it is fundamentally sound. It will offer
opportunity for individuals, whether they are on welfare now or may be
on welfare in the future.
Madam Chairman, I urge my colleagues to vote for Mr. Shaw's bill.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from Wisconsin [Mr. Obey].
Mr. OBEY. Madam Chairman, the existing welfare system is broken, it
needs radical overhaul. There is no doubt about that. But in doing it,
I ask
[[Page H7807]]
every Member of this House to please put the politics aside. Taxpayers
are tired of people who will not work taking a bite out of their tax
dollars. They want us to be tough, but they do not want us to be mean.
They do not want us to say to a worker who is laid off because his
company moved out of town or out of the country, ``Tough luck, Charlie,
you're on your own, baby.'' They do not want us to say to a sick or
hungry kid, ``Sorry, kid, God gave you the wrong set of parents. You're
on your own.'' They do not want us to pass a political document that
will never become law, that is just designed to define the differences
between Bill Clinton and Bob Dole one more time. They want us to work
it out. They want us to get it done.
That is what Castle-Tanner does. It is a bipartisan package. It does
work it out. It is tough, but it is not mean. A friend of mine in the
legislature used to say, ``You know, the problem with politics is that
all too often it gives the poor and the rich the same amount of ice,
but the poor get theirs in the wintertime.''
That is the difference between the Castle-Tanner bill and the
committee bill. Vote for Castle-Tanner. It is a tough, good welfare
reform bill that gets the job done without being mean.
Mr. SHAW. Madam Chairman, I yield such time as he may consume to the
gentleman from Minnesota [Mr. Ramstad].
(Mr. RAMSTAD asked and was given permission to revise and expend his
remarks.)
Mr. RAMSTAD. I thank the gentleman for yielding me this time.
Madam Chairman, I rise in strong support of the Personal
Responsibility and Work Opportunity Act.
Madam Chairman, in 1992, Presidential candidate Bill Clinton pledged
to ``end welfare as we know it.'' Today 4 years later, welfare
recipients and taxpayers are still waiting for President Clinton to
make good on his promise.
The President could keep his word by signing the welfare reform
waiver proposals on his desk from Wisconsin and Minnesota, as well as
the comprehensive Federal welfare reform bill before us today which
would empower States to proceed with innovative changes.
To hasten approval of badly needed welfare reform, we in this
Congress took a bold step toward meeting the President halfway when we
separated welfare reform from the Medicaid reform bill that had
threatened to doom both reforms.
The time for action is long overdue. Our Nation's welfare system is
in dire need of reform. America has spent $5.4 trillion on social
welfare programs since the beginning of the ``War on Poverty'' in the
1960's. Yet, the poverty rate has not decreased and the number of
families on welfare has skyrocketed from 1.9 million in 1970 to 5
million today. The sad history of welfare is one of three generations
of people who have become trapped in a cycle of dependency. Since 1993
alone, the number of single women who are heads of households in
poverty has increased by 175,000 women.
Frustrated by inaction at the Federal level, individual States have
moved forward with their own reform proposals. Minnesota and Wisconsin,
for example, have put together comprehensive welfare reform plans to
move welfare recipients from welfare to work. A Minnesota Department of
Human Services pilot project--the Minnesota Family Investment Plan
[MFIP]--has resulted in reduced caseloads for the Aid to Families with
Dependent Children [AFDC] program in the seven counties in which it
operates. Minnesota would like to expand MFIP throughout the State as
well as implement a number of additional pioneering measures recently
passed by the State legislature.
Wisconsin would like to implement ``Wisconsin Works,'' the welfare
plan praised by President Clinton during his May 18 Saturday radio
address as a ``sweeping welfare reform plan, one of [the] boldest yet
attempted in America * * * We should get it done.''
Unfortunately, since the President has twice vetoed welfare reform
passed by Congress that would allow States to change the welfare system
in ways which meet the needs of their residents, States must still go
through an arduous special waiver process to enact their reform plans.
But the President has yet to approve the waiver requests of Minnesota
and Wisconsin. Minnesota submitted its waiver requests last March 28.
According to the Minnesota Department of Human Services, it is critical
these waivers be approved before the end of this month. And while the
President said he would make the final decision on the Wisconsin waiver
request by mid-July, he has yet to do so. I remain hopeful the
President has truly had a change of heart and will approve both States'
requests.
It should be pointed out that the Clinton administration has granted
several waivers to allow other States to implement similar proposals.
But why should we approach this in a piecemeal, one-waiver-at-a-time
fashion and waste valuable time and taxpayer dollars--time and money
which could be better spent helping families and children escape the
web of welfare dependency?
How much longer can we continue to wait for the President to ``end
welfare as we know it?'' How much longer will the President defend the
welfare status quo and deny people in need and American taxpayers the
opportunity for true reform?
I believe the time is right to move beyond the piecemeal waiver
process, put partisan politics aside and pass the comprehensive welfare
reform legislation before us today.
Madam Chairman, it's time to change the failed welfare system's
vicious cycle of dependency.
When this legislation is placed before the President again soon, we
will find out if he has, indeed, really changed his position or if he
will continue to fight to preserve the status quo. I hope the President
will take the opportunity to support the Minnesota and Wisconsin
plans--as well as proposals for the 48 other States--and sign the bill.
Without national welfare reform for all 50 States, the cycle of poverty
is destined to continue indefinitely.
{time} 1230
Mr. SHAW. Madam Chairman, I yield myself 5 minutes.
(Mr. SHAW asked and was given permission to revise and extend his
remarks.)
Mr. SHAW. Madam Chairman, today I think is a defining day in the
history of this Congress. We are going straight at probably one of the
biggest problems that we have in this country and something that I can
only describe as a national disgrace.
I respect every Member of this body, and I respect the great
diversity all across this country. I respect the Governors of this
country, and I respect the 50 States.
But I would say to all of my colleagues, let us recognize that we
have a failed welfare system in this country. Let us realize that at
one time or another, every sitting Member of this Congress who has been
here through the 104th Congress has at one time voted against the
existing welfare system.
What brings us together is that we all agree that the existing
welfare system is not worth defending. We must change. We have got
stagnation of population. We have tremendous problems out there that
have been caused by a welfare system that the Congress procrastinated
with, did nothing about, did not change. Now we are bringing forth
change.
Last year there was a Democrat substitute which took the vote of
every Member on the minority side, and then there was a Republican bill
that prevailed and went on to the President, and he vetoed it. It went
to the President again and he vetoed it.
What we are giving to the President today is another chance, another
chance to deliver upon his promise to change welfare as we know it
today.
That is tremendously important. Those of you who vote for the Castle-
Tanner substitute which will be put forth by Mr. Gephardt at a later
time today, you are saying you will have faith in the States and you
are willing to send the programs back to the States and let them run
it, and you are going to give them great latitude in designing it.
I have great respect for the authors of that bill and what is in that
bill. But can we do better? Yes, we can do better. We can do better by
passing the bill that the Republicans have put forth, that has come to
us from the Committee on Ways and Means.
Why is that a better bill? One, it does not slash the earned income
tax credit. I would like to read a provision from the Executive Office
of the President in talking about the Republican bill when the
Republicans were cutting EITC.
He says the bill would still raise taxes on millions of working
families by cutting the earned income tax credit. This is a letter
written on July 16 to the gentleman from New York [Mr. Solomon]. At a
later time I may put it into the Record.
Now, when is a tax increase not a tax increase? To hear some of the
Members come to the floor, they say it is not a tax increase when it is
in the Democrat bill, but it is when it is in the Republican bill.
[[Page H7808]]
Mr. Chairman, we took it out. We were criticized for it. We went back
and looked at it and said, ``You are right,'' and we took it out and we
are not going to put it back in. But it is in the substitute, in the
one we are going to be asked to vote on later this evening.
That is an important distinction for many of the Members on the
Democrat side of the aisle. I respect that. I respect it so much that
we took it out of our bill.
What else have we done? The President said that Medicaid was a poison
pill. We took it out of our bill.
This is not an exercise in politics. This is a rescue mission by the
Members of Congress to smash a corrupt system that has led to poverty
across this country, has perpetuated it, and led to stagnation of
people, an unforgivable sin, a stagnation of people within our inner
cities all across this country who are paid to do nothing with there
lives, paid not to get married, paid not to work, paid to have
children, who then themselves turn around and go into the welfare
system.
This is a rescue mission. I respect every Member for wanting to
change that system, but I would say that the best way to go is with the
Republican bill. Vote against the substitute that will be offered by
Mr. Gephardt.
If you truly believe that noncitizens who are growing on our welfare
rolls at a tremendous speed, if you believe they should still receive
welfare, fine, vote for the Gephardt substitute. If you believe that
welfare should truly not be time-limited, fine, vote for the
substitute. But vote for something. That is what is very important.
This I think is an historic moment. I think that the President will
end up signing the bill that we will send him. It makes a lot of sense.
It is a good bill.
Mr. LEVIN. Madam Chairman, I yield myself 10 seconds.
To the gentleman from Florida [Mr. Shaw], what we force Republicans
to take out in the EITC change relating to rates, Democrats do not put
back in period. That is a fib.
Madam Chairman, I yield 2 minutes to the gentleman from California
[Mr. Becerra].
(Mr. BECERRA asked and was given permission to revise and extend his
remarks.)
Mr. BECERRA. Madam Chairman, I thank the gentleman for yielding me
time.
Let me begin by trying to dispel some myths and correct something
that the chairman of the Subcommittee on Human Resources of the
Committee on Ways and Means has just said. Legal immigrants are not
over utilizing welfare, AFDC, for example. In fact, they use it as a
lower rate than does the citizen population.
What we find is a skew in the numbers because of the refugee
population, which by definition comes without anything because they are
escaping persecution. We have in the law a requirement that we try to
aid them as they try to transition from a place they had to escape
without bringing anything with them.
We hear people say that we have to deny immigrants, legal immigrants,
not undocumented, access to services for which they pay with their
taxes, because in every respect they do what a citizen does. They must
contribute in their taxes.
We are saying here in this bill, ``Let's deny them services because
they are coming in this country to get welfare.'' Absolutely not true.
A respected, well-known research center, conservative research center
which the Republican majority often uses, the Cato Institute, told us
immigrants contribute about $285 billion to the economy, pay $70
billion in taxes, and net, in other words, in excess, they contribute
$25 billion more than they use in services from the government.
Now, why do we hear all this talk? Because they cannot vote, they
cannot hurt people who attack them, and they are an easy target,
especially when we call them non-citizens. On behalf of my parents who
were immigrants, on behalf of the over 1 million active and now veteran
legal immigrants who served this country in time of war, and on behalf
of the two Congressional Medal of Honor winners who served this
country, both legal immigrants, that I can talk of, I say they do not
come here to take, they come to give.
The proof is in the pudding, and we should not attack a group just
because it happens to be politically tenable to go after them, because
they cannot go after us. It is unfortunate it is done. Let us have some
decent debate on this and get meaningful welfare reform, but let us not
attack folks trying to make this country better than what it is.
Mr. SHAW. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I would say to the gentleman in the well, we exempt
veterans who are non-citizens.
Madam Chairman, I yield the balance of my time back to the gentleman
from Ohio [Mr. Kasich] and ask unanimous consent that he be allowed to
control the remainder of the time.
The CHAIRMAN. Is there objection to the request of the gentleman from
Florida?
There was no objection.
Mr. KASICH. Madam Chairman, I yield 2 minutes to the very
distinguished gentleman from Florida [Mr. Stearns].
(Mr. STEARNS asked and was given permission to revise and extend his
remarks.)
Mr. STEARNS. Madam Chairman, I thank the distinguished chairman for
yielding me time.
Madam Chairman, Margaret Thatcher once said, ``Pennies do not come
from heaven, they have to be earned here on earth.''
For years we have asked the question, does increased social spending
equate with a better childhood? Since 1960, the $5 trillion spent on
social programs has increased at a rate above inflation. The simple
answer, however, is that children are still suffering because the
system is flawed.
I would like to give, Madam Chairman, another quote. ``Work banishes
those three great evils: Boredom, vice, and poverty.'' That came from
the great philosopher, Voltaire. There is nothing wrong with work.
Our plan increases funding for welfare. Now, we are going to hear on
that side of the aisle that there are huge cuts that affect children,
huge cuts that affect the underprivileged. But as Margaret Thatcher
said and the philosopher Voltaire said, work does not hurt anyone.
Yet, even notwithstanding that fact, if we look at this graph, we
will see welfare spending will increase 31 percent. Spending will
increase $137 billion under the House welfare reform plan. Clearly when
we hear the President say there is not enough money, there is going to
be plenty, ample amounts of money for their program.
I would say to my colleagues on this side of the aisle, it is time we
force the President to end this double talk on welfare and keep his
promise to end welfare as we know it, correcting the inequalities that
are in the system. This bill does it. The Republican bill does it, and
it enforces the things that President Clinton talked about in his 1992
campaign.
So, by signing our bill, he has nothing to lose. Continuing to pour
more money into the welfare system is not the answer.
Mr. LEVIN. Madam Chairman, I yield 1 minute to the distinguished
gentlewoman from New York [Mrs. Maloney].
(Mrs. MALONEY asked and was given permission to revise and extend her
remarks.)
Mrs. MALONEY. Madam Chairman, the American people do not want to hurt
children. The Republican bill is so removed from reality, it punishes
children and penalizes working families. The bill would hurt millions
of innocent children by making deep cuts in benefits, especially during
economic downturns, by limiting the contingency fund to only $2
billion. The Tanner-Castle substitute has an uncapped contingency fund
for use during these troubling times.
When we completely eliminate the Federal guarantee, those of us who
have worked in city and State legislatures know that given the
financial pressures, the poor will often fall through the cracks.
This Republican bill just tells defenseless children, tough luck.
This bill will not put people to work. CBO says that it needs $10
billion more for the program, for their work program. It will put
families with children out on the street. That is not welfare reform,
it is a blueprint for disaster.
Say yes to welfare reform, and no to this cruel and senseless bill.
[[Page H7809]]
Mr. KASICH. Madam Chairman, I yield 2 minutes to the gentlewoman from
North Carolina [Mrs. Myrick].
Mrs. MYRICK. Madam Chairman, back home in Charlotte, we have many
successes in moving people off of welfare--because we have created
programs that work best for the folks in our community.
As mayor of Charlotte, I worked closely with many people who found
themselves needing the helping hand of welfare assistance.
Many people on welfare are young, single mothers. In working with
them, I learned what kind of help they need to become self-sufficient.
Our bill will offer them exactly that form of help.
It will restore power and flexibility to the States, confirming our
commitment to send power, money, and influence back home--and finally
get Washington bureaucrats out of the picture so we can design our own
programs at home.
It will help young mothers obtain jobs so they can feel good about
themselves, and their kids can be proud of them.
Child care is one of their major concerns. Our bill has specific
provisions for child care assistance. I was a working mom and I know
that it is difficult to go out in search of a better life when you have
your kids to care for.
It will also ensure that children receive nutritious meals at school
through the school breakfast and lunch programs, as well as the special
milk program.
Our bill will offer protections, as well as assistance, by assuring
that certain vulnerable people--such a pregnant women and people
certified as physically or mentally unable to work--are exempt from the
work requirement.
In short, our bill makes sure that the needy are helped--and that
those that can--help themselves.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentlewoman from New York [Mrs. Lowey].
Mrs. LOWEY. Madam Chairman, I rise today in opposition to the
Republican welfare bill and in support of the bipartisan alternative,
the Castle-Tanner bill. We all agree that reform of our failed welfare
system is long overdue. The system is failing both the taxpayers who
fund it and the individuals that it is supposed to help.
Welfare must be reformed to better reflect and reinforce our shared
American values of work and responsibility, but, unfortunately, the
Republican welfare bill does not reflect our values. It is just too
tough on children and too weak on work.
The American people want welfare reform to move Americans into the
work force, not to punish children. This bill fails this fundamental
test.
{time} 1245
In reforming the welfare system, our focus must be on moving people
into real jobs. Unfortunately, this bill will not move welfare
recipients into the work force. It does not create a real incentive for
the States to move people off welfare and on to jobs, and it does not
improve access to education and training so that people have the skills
they need to get a job.
Quite simply, this bill imposes time limits without giving recipients
the skills and education they need to find jobs before the time limits
kick in. That is cruel and unfair. Real welfare reform should move
recipients off the dole and on to jobs, not off the dole and on to the
streets.
The other major flaws in the Republican bill: The legislation
prohibits Federal assistance from going to children if their parents
reach the bill's time limit. That is wrong. We must not punish children
for the failures of their parents.
By contrast, the bipartisan Castle-Tanner bill requires States to
provide help to children if their parents reach the time limit. Castle-
Tanner also preserves the nutritional safety net for our children
instead of giving States the option to block grant food stamps.
The Republican bill is also bad for New York. The Republican bill
shifts Medicaid costs from the Federal Government to State and local
governments, and we are going to lose $1.8 billion in Medicaid costs.
Mr. KASICH. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from New York, the young Mr. Lazio.
Mr. LAZIO of New York. Madam Chairman, I want to take a moment to
express my deepest sorrow over the tragedy of TWA flight 800, which
went down just last night off the shore of my own home on Long Island.
Our thoughts and our prayers are with the families of the victims as
they deal with their loss, and our gratitude goes to the rescuers
throughout the country who are helping to recover important evidence.
Today almost 1.5 million people in my home State of New York are
receiving some sort of public assistance. That is a big number. And far
too often that is exactly how these people are treated, as numbers to
be fed into a broken welfare system, processed and pushed out again.
The current system is inefficient, unfair and damaging to those it is
supposed to help. Is this how we are supposed to show compassion? I
think we can do better. This reform will replace our failed welfare
system with one based on individual responsibility, accountability and
hope for future generations.
By destroying the work ethic and encouraging fathers to leave home,
our current system results in broken families, a disintegration of
moral standards and devastated communities.
In contrast, these reforms would strengthen families, require able-
bodied recipients to work, attack fraud and abuse, and crack down on
deadbeat parents. Most importantly, it provides hope for children by
giving them the tools to break the cruel cycle of dependency. We will
give them the incentive and tools to break out of the welfare trap that
holds them down and limits their potential. By honoring work we allow
people to assume responsibilities for themselves.
By providing more funding, more funding for child care, we will
provide them with the opportunity to provide a better life for their
children and end the cycle of dependency that has resulted in families
raising a fourth generation on public assistance.
As a result of a welfare system that discourages two-parent families,
today's illegitimacy rate among welfare families has continued to rise.
This plan seeks to reverse this trend by increasing efforts to
establish paternity and by demanding deadbeat fathers pay child
support. Under the plan all mothers will be encouraged to identify the
father of their children or face the risk of reduced benefits.
Most importantly, this reform gives hope to our children, the most
defenseless victims of our current system. The system fosters
dependency, crime, violence and despair, yet somehow we expect children
born and raised under these circumstances to be able to break the cycle
of dependency. That is simply not fair.
Madam Chairman, I am proud to support this bill. It moves us in the
right direction.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from New York [Mr. Owens].
(Mr. OWENS asked and was given permission to revise and extend his
remarks.)
Mr. OWENS. Madam Chairman, welfare reform is very much in order. The
business of policymakers is reform. As legislators, the constant
improvement of Government functions and programs is our job. Reform is
a permanent, ongoing process. There is not a single Government program
in existence that cannot use some reform. But reform should not be
driven by manufactured hysteria and scapegoating. Welfare reform should
not become the oppression and persecution of the poor.
At the heart of the welfare program is the aid to families with
dependent children. Children are the primary recipients. The survival
and development of children is what aid to families with dependent
children is all about. Children are our Nation's greatest resource, and
the AFDC program is about the salvation of those children.
Welfare reform can be accomplished without the kind of extremism and
the persecution of the poor which is involved in the Republican reform
bill.
Put the problem in perspective. We are talking about 1 percent,
approximately 1 percent, of the total Federal budget. There are many
other subsidy programs we should be looking at which would cost us far
more. The farm subsidy program, farmers home loan mortgages, and the
subsidies to farmers not to grow grain or plant or plow
[[Page H7810]]
fields; those are very expensive subsidies.
We give aid to people who are in earthquake zones, we give aid to
people who are victims of hurricanes and floods. We have numerous
places where we subsidize people.
There are also other areas where there is definite waste in
Government that we should take a hard look at.
The CIA found they had $3 billion they did not know they had in a
slush fund. The Federal Reserve Board has $3 billion for rainy days,
and they have not had a rainy day in 79 years. So we have a lot of
places to look for waste and improving Government and reforming
Government. We do not have to persecute the poor in order to get rid of
waste.
AFDC is a program for children. It has been badly administered. It is
not administered by poor people. we can improve the administration of
it. We can find ways to improve it in many ways, but we should not
persecute the poor. We should not persecute children in the process.
This is about developing children, and we should be about the business
of developing children.
Mr. KASICH. Madam Chairman. I yield 2 minutes to the distinguished
gentleman from the State of Arizona [Mr. Kolbe].
Mr. KOLBE. Madam Chairman, I thank the gentleman for yielding me this
time.
Madam Chairman, we are able to come to the floor today and offer the
American people a meaningful welfare reform proposal because of the
work done by my colleagues Representatives Castle and Tanner. I have
remained committed to changing the welfare system as we know it and
worked with Representatives Castle and Tanner to continue the welfare
debate. Their efforts continued the discussions between the majority
and minority in the House, the administration, and the Governors to
find a workable welfare compromise. I am pleased that the Republican
majority have incorporated many of the suggestions included in the
Castle-Tanner proposal. Therefore, I will join my fellow colleagues in
support of H.R. 3734 as offered by the Republican majority.
Madam Chairman, this bill answers the American people's demands to
reform the current welfare program and addresses many of the concerns
of the bipartisan Castle-Tanner group, the Governors and the
administration. Over the past 18 months, this Congress has set out to
truly reform the welfare program, and twice our efforts have been
stopped by two Presidential vetoes.
Madam Chairman, the American people recognize that the current
welfare system is a failure. It traps welfare recipients in a cycle of
dependency, and undermines the values of work and family that form the
foundation of communities. The welfare state has created a world where
children have no hope for tomorrow. Welfare cannot be a way of life for
women and children. This bill provides women with the support to become
working members of our society through the job training and child
support programs.
This bill restores power and flexibility to the States through the
cash welfare and child care block grants. States will be given maximum
flexibility to reform welfare, to develop income-support programs, and
move families into the work force.
We all agree the program must be changed, however some of my
colleagues are saying the changes we are making is going to cut welfare
programs, and that is simply untrue.
Madam Chairman, over the last 6 years the Federal Government has
spent over $441 billion on welfare programs. Through the next 6 years,
through 2002 our welfare bill proposes to spend $578 billion. It is not
cutting spending in the welfare bill that will be sent to the
President, it increases it by $137 billion. This is not a cut to
welfare. We should support this bill.
This bill ends the long-term dependency of the welfare program and
encourages self-sufficiency through imposing tougher work requirements.
This bill guarantees that welfare becomes a helping hand and not a
lifetime handout by imposing a 5-year lifetime limit for collecting
AFDC. This bill is a common-sense effort to restore the basic values of
work and restore the American dream for those currently in the welfare
system.
This bill restores power and flexibility to the States, confirming
our commitment to give the decisionmaking, money, and influence back to
the States and get Washington bureaucrats out of your pockets. Through
the cash welfare and child care block grants States will be given the
maximum flexibility to reform welfare, develop income-support programs,
and move families into the work force.
Washington's answers have not ended the war on poverty. We have found
that the best welfare solutions come from those closet to the
problems--not from bureaucrats in Washington. It is time to get the
Washington bureaucrats out of the welfare system.
We all agree the program must be changed, however, some of my
colleagues are saying these changes will cut funding to welfare
programs--this is completely untrue.
Madame Chairman, over the last 6 years the Federal Government has
spent $441.3 billion on welfare programs, including aid to families
with dependent children [AFDC], child care, child support enforcement,
food stamps, and child support.
Over the next 6 years, through 2002, our welfare bill will spend
$578.3 billion. Our bill is not cutting spending in the welfare bill
that will be sent to the President. In actuality, over the next 6
years, even after reform, welfare spending will increase by $137
billion. Let me say this again, the Federal Government will spend an
additional $137 billion on welfare over the next 6 years. This is not a
funding cut to the welfare program.
Madame Chairman, we are presenting to the President a meaningful
welfare plan that incorporates changes requested by the governors and
the bipartisan Castle-Tanner group. It is bipartisan effort and I urge
my colleague to join me in supporting this welfare proposal and I
encourage President Clinton to move beyond his words of support and
sign our bill.
Mr. SABO. Madam Chairman, how much time is remaining on both sides?
The CHAIRMAN. The gentleman from Minnesota [Mr. Sabo] has 11\1/2\
minutes remaining, and the gentleman from Ohio [Mr. Kasich] has 7
minutes remaining.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentlewoman from
Connecticut [Ms. DeLauro].
Ms. DeLAURO. Madam Chairman, today is a sad day for those of us who
support real welfare reform. The Republican bill fails to meet the goal
of moving people from the welfare dole to the working rolls. It fails
to protect children from the ravages of stark poverty. This bill is
tough on kids and weak on work.
The American people want welfare reform that replaces dependency with
the dignity that is earned from working for a living. At the same time
the American people want us to protect innocent children who have no
means to take care of themselves, and this bill moves in the opposite
direction on both counts.
The Republicans' Congressional Budget Office says that the Gingrich
welfare plan underfunds the work program by $10 billion, by $10
billion, making it impossible to take people from welfare to work. It
builds in the failure of getting people to work.
Under this bill's food stamp block grant plan more than 1 million
children in this country could be forced into poverty. One million. It
is outrageous. This bill is an unforgivable assault on our Nation's
values and what we are about.
Fortunately, today, we have a viable and a fair substitute, a
bipartisan plan, Tanner-Castle, I repeat bipartisan, that puts people
to work without throwing more kids into poverty. It has strong work
requirements and the needed funds to make them work. It reforms AFDC
and ends the cycle of dependency for welfare recipients and their
families. It emphasizes the dignity of work over the punishment of
children.
We have precedent here. Last year the Republican leadership tried to
drop 2 million children from the school lunch program. Now they are
targeting kids again. It is wrong, and I call on my colleagues to
reject it.
We must not miss the opportunity today, it is an historic moment, to
deliver real welfare reform that this country needs. Let us stand
together for a bipartisan commonsense approach. Reject this failed
agenda and support Tanner-Castle.
Mr. KASICH. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from the State of Connecticut [Mr. Shays], a member of the
Committee on the Budget.
Mr. SHAYS. Madam Chairman, I thank my colleague for yielding me this
time.
Madam Chairman, this new Republican majority has three primary
objectives: One is to balance our Federal
[[Page H7811]]
budget and to get our financial house in order; the second is to save
our trust funds for future generations; and the third, and that is the
one most involved with this effort today, we are trying to transform
our caretaking social and corporate and welfare state into a caring
opportunity society.
There is nothing caring about our present welfare system. When I see
my own communities, I see young children having babies, I see young
children selling drugs, I see young children killing each other. In my
communities there is nothing humane or caring about the system that we
have. I see 24-year-olds who have never had a job, not because a job
does not exist, because maybe it is a dead-end job, in their view. If I
had ever said that to my dad, my dad would have doubled the amount of
time I took that job.
And 30-year-old grandparents. We basically have three generations of
people on welfare. We have helped subsidize and create the very system
we are trying to eliminate.
Madam Chairman, I believe that child care and job training should be
designed by the States, not the Federal Government. I believe child
care and job training should be designed by local governments, not the
Federal Government. I want to move power and money and influence out of
this place and back to local communities, who know how to spend the
money.
Madam Chairman, I want to add to what the gentleman from Arizona [Mr.
Kolbe] said: $441 billion for welfare up to $578 billion, an increase
of $137 billion. Hardly a cut. We need to change the system, and this
bill does it.
I would conclude by saying that in the final analysis, it is not what
we do for our children but what we have taught them to do for
themselves that will help make them be successful human beings. We need
to teach them how to grow the seeds, how to grow the seeds, not just
hand them the food.
This is a caring bill, and the sooner we pass it, the better.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentleman from Michigan [Mr. Dingell].
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Madam Chairman, we must reform welfare. But as we work
to reform welfare it is important to remember that we do not need to
provide welfare assistance solely for altruistic reasons.
We provide welfare assistance and financial assistance to those in
need because it is in the best interest of our society to do so as we
fit them for return to work and to membership in this society and in
the productive units of this society.
{time} 1300
Madam Chairman, work works. One of the highest priorities must be
giving States and their residents the tools to find and keep good-
paying jobs. No Federal, State, or local government funds should be
given to individuals without expecting something from those individuals
in return. The purpose of welfare is to give financial lift to help
people out of difficult times. Yet it must also provide them with the
tools, training, education to support their families and to become
productive parts of our work force.
The Castle-Tanner bipartisan reform welfare program, of which I am
proud cosponsor, provides the States with tools to reduce welfare rolls
through education and training of recipients. I support this proposal
for this reason, because it is the only version of welfare reform being
considered today which will help Michiganians off welfare by providing
the skills to achieve good jobs.
Madam Chairman, we must care for the kids. Twenty-one percent of our
children through no fault of their own are living in poverty. The
Castle-Tanner bipartisan welfare reform will improve our welfare system
so that abused children are protected. Neglected children get care, and
hungry children will be fed. It will provide families with the support
they need to care for their children while they move to become useful
working components of our society. Without a guarantee for our children
for food, shelter, and medical care, we will have a failure in this
bill.
The Republican bill fails by comparison. It does not take care of
children. It does not take care of the hungry. It does not provide
means for getting people back to work.
I urge support of Castle-Tanner.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentlewoman from Texas [Ms. Jackson-Lee].
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Madam Chairman, I thank the gentleman for
yielding the time.
I think that I really know America. I know an America that rose to
help the victims in Oklahoma City. I know an America that rushed to the
Midwest when floods overtook that community. I know an America that
extended themselves to help those in hurricane-ridden Florida. And I
know an America who stood on June 1, 100,000 strong and stood for our
children.
The Castle-Tanner bill is what we call real welfare reform. It fares
well for Americans. We do not need a bill that cuts Americans who need
some $60 billion, as the Republican bill does. We need a bill that has
Americans who work hard and pay taxes joining us in saying that is
fair. If you have a cutoff, then require the States to provide a bridge
for those who may not yet be able to be independent after a 5- or 2-
year cutoff. Provide vouchers. If you cut Medicaid, allow families with
children to still carry Medicaid. Excess shelter provision is needed,
and the Castle-Tanner has that.
Although we are in a climate of bashing hard-working immigrants, of
which many of us came to this Nation in so many shapes and sizes, they
pay taxes. They work. This provision in the Castle-Tanner bill allows
for legal immigrants who have fallen on hard times, who cannot find
work, to be able to be provided for.
Yes, the Castle-Tanner bill does not increase the taxes of working
poor, people who have made the decision that I would rather stand up
and be counted in the work force but yet still need food stamps in
order to carry the day for their children.
I do not know about my colleagues, but the bill to pass today for
real welfare reform that fares America well is the bill that supports
our children. Why can we not do this in a bipartisan manner and stop
the accusations? I am going to stand for the children of America and
not cast aside those who are least able to serve.
Please support the Castle-Tanner legislation.
Mr. KASICH. Madam Chairman, I yield 1\1/2\ minutes to the
distinguished gentleman from Arizona [Mr. Hayworth].
Mr. HAYWORTH. Madam Chairman, I thank the chairman of the Committee
on the Budget, my colleague from Ohio, for this time.
Madam Chairman, she is called by an unlikely nickname, Pee Wee. Pee
Wee Mestas of Holbrook, AZ, operates the Wayside Drive-in and offers a
true spirit of compassion that goes beyond bromides to putting her
philosophy and, yes, her faith in action. For, you see, Madam Chairman,
Pee Wee Mestas, the operator of the Wayside Drive-in in Holbrook tries
to do a gigantic job, not only providing for her family but trying to
introduce the concept of work to young ladies in her hometown who have
had children out of wedlock.
Recently Pee Wee shared with me her frustration, for inevitably, Pee
Wee says, when she offers jobs to these young ladies, they come and
they work for a couple of weeks. But then invariably, and this is the
sad fact, then invariably they say: Pee Wee, listen, I appreciate the
opportunity to have this job, but, you see, the government will pay me
more to stay home and do nothing.
Madam Chairman, I respectfully submit that the issue is not about the
care of children, for all of us in this Chamber truly care for
children. The issue is teaching those mothers, those parents who have
failed to take responsibility, they need responsibility, they need
work. That is genuine compassion. Vote for the majority plan.
Mr. SABO. Madam Chairman, I yield the balance of my time to the
distinguished gentleman from Massachusetts [Mr. Neal] who has worked
very hard on the issue of welfare reform.
The CHAIRMAN. The gentleman from Massachusetts [Mr. Neal] is
recognized for 5\1/2\ minutes.
(Mr. NEAL of Massachusetts asked and was given permission to revise
and extend his remarks.)
[[Page H7812]]
Mr. NEAL of Massachusetts. Madam Chairman, there is a great verse
from the old folksong that goes like this: When will we ever learn?
Two years ago, one side in this institution learned that they would
be unsuccessful in imposing their will on the other side when it came
to the health care debate. And for the better part of 18 months, the
majority in this House has failed to successfully pass welfare reform.
The truth is, today, and Members will never hear them give any credit
to this gentleman, but Bill Clinton forever changed the culture of the
welfare debate in this country when he said we would end welfare as we
currently know it.
There is but one piece of legislation in front of this House today
that commands the respect of Democrats and Republicans alike. That is
the Castle-Tanner legislation. That is legislation based upon the hard-
won experience of the former Governor of Delaware and the distinguished
gentleman from Tennessee, because they worked diligently to come up
with a piece of legislation that Republicans and Democrats alike could
support.
No Member of this institution supports or defends the status quo when
it comes to the current welfare system in America. We reject the notion
that one out of three children being born out of wedlock in the long
run ensures the social viability of this Nation. But as Al Smith used
to say, let us take a look at the facts.
Members will never hear it from the majority in this House, but today
there are 1.3 million fewer welfare recipients across this Nation. Bill
Clinton has granted 67 experiments in 40 States. Seventy-five percent
of the welfare recipients in this country today are in work programs
across this Nation.
But let us not lose sight of this fact. I reject the suggestion of
the previous speaker on the Republican side, when he said that this
debate was not about children. There are 12.8 million AFDC recipients
in America today; 8.8 million of those AFDC recipients are children.
Despite the mistakes of parents who may well have been involved in
antisocial behavior or, through no fault of their own, receiving
welfare benefits, we ask ourselves today, what do we do about those 8.8
million children? Is there anybody of the Jewish faith or the
Protestant faith or the Catholic faith today or other faiths in this
institution that would reject the instruction of those religious creeds
and say that we have an obligation to those children to move them
through this difficult time in their lives? Their only mistake was to
be born into circumstances over which they had no control.
But what is ironic about much of this debate today is that we have an
opportunity in this Chamber to reject the status quo, to do it as
Democrats and Republicans alike and, indeed, everybody would
acknowledge how far the Democratic Party has moved during the last 18
months on this issue.
Do my colleagues know what else is extraordinary? As the Democratic
Party has moved to the center in this debate, the Republican Party has
moved more to the right. The goal of welfare reform has been elusive
because there is an element on the other side that does not want to
change in policy. They want a campaign issue for November. And the
nominee of the Republican Party really had very little interest in
coming to terms with a welfare bill that he knew that the President of
the United States would sign.
We have a chance in the next hours of this day to create a welfare
bill that Republicans and Democrats can go home and point to as a
tangible achievement and to remind the American people that the system
really does work when there is an element of goodwill that governs our
lives.
The choice is relatively simple today. Will we vote for a piece of
legislation that protects 8.8 million American children, or will we be
caught up in a political issue for the fall?
I would remind all that, again, it was Bill Clinton who changed the
culture of the welfare debate in this country and has said repeatedly,
if a good, sound welfare bill is put on his desk, he will sign that
legislation. Do Members know what else is interesting? He has already
stated he will sign the Castle-Tanner bill if put on his desk.
We can accomplish that in the next few hours. Vote for Castle-Tanner
and to welfare say farewell.
Mr. KASICH. Madam Chairman, I yield myself the balance of my time.
The CHAIRMAN. The gentleman from Ohio [Mr. Kasich] is recognized for
3\1/2\ minutes.
Mr. KASICH. Madam Chairman, I want to compliment the previous
speaker. I think he did a pretty good job down here putting out his
point of view, some of which I would agree with and some of which I
would not. But I think he did a nice job with his remarks. I do want to
say that when we look at what is happening in the House of
Representatives, I said it this morning and have been saying it now for
many months, the kind of change that we have seen in this House of
Representatives is absolutely breathtaking.
We have had a welfare system that did not have time limits, did not
have good work requirements, did not have good incentives for people to
go to work, did not have good training requirements.
The American people are very smart. They knew we did not have a
system that worked. I think the American people, because I am one of
them, kind of grew up with the philosophy of Judeo-Christianity. We
help people who need help and to teach people how to help themselves.
That is the bottom line.
Somebody may have something, may fall on hard times, we are there at
the doorstep. But it gets old after awhile when those very same people
who needed the help decide for whatever reason not to help themselves.
What does this bill do? It says, look, you have got to go to work;
you have got to get trained. You cannot be on welfare forever. If you
are down and out, if you are down on your luck, if you need some help,
if your kids are sick, if you are sick, we are going to help you.
But at some point, in fairness to all those people, frankly, who are
in this building today, who get up and go to work and pay their taxes,
this is what they want. They want the time limits. They want the
training requirements. They want the work requirements, and they want
people to go to work.
{time} 1315
And for those who can never go to work because they are just not
capable, we are going to take care of them, but for the vast majority
of Americans who want to work, we are going to fundamentally change the
system.
For those that wonder about this Congress, as my colleagues know, the
President did make a campaign speech a couple years ago saying he was
going to change welfare as we know it. He has vetoed two bills, third
time is the charm, but he vetoed the two bills that we sent to him
since this Republican Congress took control.
Now, this is not braggadocio or partisanship. Frankly, it is the
facts. The facts are the reason why we are debating fundamental welfare
reform is because this Congress kept its word. The reason why people
who go to work are going to feel better about the newly created welfare
program is because we kept our word, and it is significant. The
substitute that is being offered is a pretty positive substitute. Does
not go far enough; it is too much, too much give, too much compromise,
too much of the old system. But the compromise legislation ends the
entitlement. It has work requirements. It has some form of time limits.
Can my colleagues imagine, the Republicans and Democrats today in the
House of Representatives are debating the most fundamental change in
welfare since the program was created, and we are doing it because we
want to help those people who are poor, we want to help those people
who are disadvantaged get to work, and at the same time we are sticking
up for the taxpayers in this country who go to work, who are willing to
share their income with those who are less fortunate but who only ask
that at some point in time those who are less fortunate get out and
help themselves.
I think this is a win-win today. I would defeat the substitute, I
would pass the bill. Let us have real welfare reform, and I think at
the end of the day the President signs it and this Congress will go
down in history as the Congress that stood up for working people in
America.
[[Page H7813]]
Mr. NADLER. Madam Chairman, I rise in strong opposition to H.R. 3734,
the Republican Welfare Reform Act being considered today on the House
floor.
This welfare reform bill is a direct assault on America's children,
and on America's future. Most of the provisions of this bill would have
their primary impact on low-income children. This bill would cut $61.1
billion from vital family survival programs, denying benefits to
millions of children who are in desperate need.
This bill eliminates AFDC as an entitlement program, and creates a
block grant to the States, denying the assurance of basic necessities
to poor families and children when they are in need.
The child care assistance provided in this bill is insufficient. How
do the authors of this legislation expect low-income families to get
off welfare if they can't even afford a safe, decent, place for their
children to be cared for while they work? According to the CBO, this
bill falls $800 million short of the costs of providing child care
assistance to individuals required to work.
Furthermore, the CBO has estimated that this bill would fall $12.9
billion short of the funding necessary to meet the work program
requirements in the bill. If we are to move families effectively toward
financial independence, we must--before we remove a vital safety net--
provide the training necessary to perform jobs that will provide
financial independence.
Madam Chairman, the magnitude of cuts to and elimination of programs
that provide children and families important protections is
unprecedented. Not only does this bill take away the assurance of
emergency assistance for the very poor, but it also reduces drastically
funding for child nutrition programs and food stamps. More than half of
all food stamp recipients are children, and this bill slashes food
stamp spending by $28.4 billion over 6 years, putting many children in
jeopardy of not receiving the nutrition they need.
Madam Chairman, this bill is counter to the so-called family values
about which there has been much discussion during the 104th Congress.
If this really were a bill to promote and foster independence, it would
focus on creating jobs and providing training, educational
opportunities, and child care assistance. But instead, this
legislation's focus is on removing basic assistance from children in
dire need.
Madam Chairman, I urge my colleagues to vote against this very
damaging bill.
Mr. SMITH of New Jersey. Madam Chairman, I would first like to
commend Mr. Shaw and Mr. Archer, along with the other members of their
respective committees, for once again forging legislation which will
truly end welfare as we know it.
Although we had previously passed welfare reform legislation on two
separate occasions, Mr. Clinton, in failing to keep his promise to the
American people twice vetoed our welfare bills. Madam Chairman, I am
hopeful that once this monumental legislation is again passed and
presented to the President, he will sign the bill this time, if for no
other reason than it will be politically expedient for him to do so.
As you are aware Madam Chairman, this welfare proposal includes a
general rule which prohibits States from providing cash assistance
under the family assistance block grant to a child born to a recipient
of cash welfare benefits or who received cash benefits anytime during
the pregnancy. This has been referred to as the ``family cap''
provision. However, the bill does permit States to opt out of this
prohibition if a State passes legislation specifically exempting the
State program funded under the family assistance block grant from
application of the prohibition. I worked hard for this relief option
and I am hopeful that most States will utilize it.
For those States, however, that do not opt out, Madam Chairman, and
in particular for the children of these States, I am pleased that the
bill includes my amendment that permits States to provide vouchers for
children born to families receiving assistance. I worked diligently to
have this amendment included in our original welfare reform bill (H.R.
1214 and H.R. 4), where it was passed overwhelmingly during
consideration of that bill--352 to 80.
I admit the original family cap-child exclusion had surface appeal to
many Americans who are fed up with people being on the dole. Americans
want the abuse of the system to end.
However, the voucher-exception provision to the family cap will help
the weakest and most vulnerable people in our society--children. I am
sure everyone agrees that we must not punish children for the sins of
their parents.
My voucher-exception amendment now included in this legislation
enables us to accomplish the goal of the family cap provision--i.e.,
discouraging out-of-wedlock pregnancies--without driving children
further into poverty or forcing their mothers to have an abortion. My
provision maintains the restriction on cash benefits, but allows
vouchers to be used to pay for particular goods and services specified
by the State as suitable for the care of the child involved.
This means that State's will be able to provide for the most
essential needs of the children: clothing, shoes, diapers, powders,
bedding, laundry detergents, and travel to the doctor.
Over the years numerous studies have shown that money--or more
precisely the lack of it--heavily influences a woman's decision to
abort her child. Without my amendment, we would be saying to mothers,
``the State will not help you feed your child, but we will--as they do
in many States--pay for you to destroy your child.''
A major study by the Alan Guttmacher Institute, a research
organization associated with Planned Parenthood, which performs or
refers for 230,000 abortions a year found that 68 percent of women
having abortions said they did so because ``they could not afford to
have a child now.'' Among 21 percent of the total sample, this was the
most important reason for the abortion; no other factor was cited more
frequently as most important.
The voucher-exception provision permits states to provide
compassionate care for children--care which offers help to women who do
not want to have abortions, or who may otherwise feel trapped by a
State program that limits their ability to care for another child.
Mr. PORTMAN. Madam Chairman, I rise in support of real welfare
reform--something that is long, long overdue.
The current welfare system is broken. It needs a major overhaul. No
one can doubt the fact the war on poverty has failed--no one. We have
spent over $5.4 trillion on welfare in the last generation, but, in the
long term, the current system has more often harmed the very people it
was designed to help.
Madam Chairman, the welfare reform issue has been thoroughly and, I
believe, thoughtfully studies and debated by this Congress. Remember,
this marks the third time this session that this Congress will pass a
welfare reform bill and sent it to the President.
This new proposal is a fundamental change in the direction of our
welfare system. It is the product of many, many hours of hearings and
many sensible compromises. We are not, as some might have you believe,
turning our backs on welfare recipients, nor should we. This bill
continues to protect the children that are the most vulnerable people
affected by our broken welfare system. It will continue to protect and
to strengthen the role of families. But, it also protects our
taxpayers. We're telling our taxpayers that, for now on, welfare will
be a helping hand, not a handout.
The new plan contains the major provisions I have worked for--work
requirements, flexibility to allow States to address their own unique
needs, and a 5-year time limit for those on welfare. My home State of
Ohio has developed creative and innovative solutions closer to the real
needs of people on welfare.
I applaud Subcommittee Chairman Shaw, Chairman Archer, and Chairman
Kasich for their leadership and urge my colleagues to support this
bill. I think this bill is long overdue and urge the President to sign
it.
Ms. JACKSON-LEE of Texas. Madam Chairman, I rise today to speak out
against a great injustice--an injustice that is being committed against
our Nation's children--defenseless, nonvoting, children. I am referring
of course to H.R. 3734, the Welfare Budget Reconciliation Act for
fiscal year 1997.
We speak so often in this House about family values and protecting
children. At the same time however, my colleagues on the other side of
the aisle, have presented a welfare reform bill that will effectively
eliminate the Federal guarantee of assistance for poor children in this
country for the first time in 60 years and will push millions more
children into poverty.
This partisan bill is anti-family and anti-child. The Republican bill
continues to be weak on work and hard on families. Without adequate
funding for education, training, child care and employment, most of our
Nation's poor will be unable to avoid or escape the welfare trap. Even
before the adoption of amendments increasing work in committee, the
Congressional Budget Office [CBO] estimated that the Republican
proposal is some $9 billion short of what would be needed in fiscal
years 1999 through 2002 to provide adequate money for the States to
carry out the work program. Furthermore, the increase in the minimum
work hours requirement, without a commensurate increase in child care
funding, will make it almost impossible for States to provide child
care for families making the transition from welfare to work. True
welfare reform can never be achieved and welfare dependency will never
be broken, unless we provide adequate education, training, child care,
and jobs that pay a living wage.
I am also concerned about block grants in the bill which would
eliminate any assurance of Federal funding for the prevention of child
abuse. Child protection systems across the Nation are overwhelmed by
the crisis facing families and their children. Federal, State and local
efforts to prevent abuse have done little
[[Page H7814]]
to alleviate the problem. In its April, 1995 report on child abuse and
neglect fatalities, the U.S. Advisory Board on Child Abuse and Neglect
reported that almost 2,000 infants and young children die from abuse
and neglect at the hands of parents and caretakers each year. The vast
majority of these children were under age 5 when they died and 45
percent were under the age of 1. It is critically important that child
protection agencies increase their efforts to help children earlier in
their lives. This bill does not go far enough to protect the Nation's
children.
Similarly, the proposed cuts in the Summer Food Program will
seriously jeopardize the program's continued viability--threatening the
health and well-being of the 2 million low-income children who rely on
the program.
More children will be hurt by the bill's denial of benefits to legal
immigrants. The Republican bill would cut benefits for immigrants by
about $19 billion and only 6 percent of these savings would come from
denying benefits to illegal immigrants. Low-income legal immigrants
would be denied aid provided under major programs such as SSI, Medicaid
and food stamps. They would also be denied assistance under smaller
programs such as meals-on-wheels to the homebound elderly and prenatal
care for pregnant women. Under this bill, nearly half a million current
elderly and disabled beneficiaries who are legal immigrants would be
terminated from the SSI program. Similarly, the Congressional Budget
Office estimates that by 2002, approximately 140,000 low-income legal
immigrant children who would be eligible for Medicaid under current law
would be denied it under this legislation. Most of these children are
likely to have no other health insurance. I cannot believe we would
pass legislation that would result in even one more child being denied
health care that could prevent disease and illness.
This bill also changes the guidelines under which nonimmigrant
children qualify for benefits under the SSI program. As a result, the
CBO estimates that by 2002, some 315,000 low-income disabled children
who would qualify for benefits under current law would be denied SSI.
This represents 22 percent of the children that would qualify under
current law. The bill would reduce the total benefits the program
provides to disabled children by more than $7 billion over 6 years.
Madam Chairman, mandatory welfare-to-work programs can get parents
off welfare and into jobs, but only if the program is well designed and
is given the resources to be successful. The GOP bill is punitive and
wrong-headed. It will not put people to work, it will put them on the
street. Any restructuring of the welfare system must move people away
from dependency toward self-sufficiency. Facilitating the transition
off welfare requires job training, guaranteed child care and health
insurance at an affordable price.
We cannot expect to reduce our welfare rolls if we do not provide the
women of this Nation the opportunity to better themselves and their
families through job training and education, if we do not provide them
with good quality child care and most importantly if we do not provide
them with a job.
Together, welfare programs make up the safety net that poor children
and their families rely on in times of need. We must not allow the
safety net to be shredded. We must keep our promises to the children of
this Nation. We must ensure that in times of need they receive the
health care, food, and general services they need to survive. I urge my
colleagues to oppose this dangerous legislation and to live up to our
moral responsibility to help the poor help themselves. Therefore, I
support the Castle-Tanner welfare reform legislation which remedies
many of these problems and fairly moves people from welfare to work.
Mr. BUYER. Madam Chairman, in passing real welfare reform, thus
ending welfare as millions know it, Congress is giving more hope, more
opportunity, and more responsibility to families across America.
Our current welfare system destroys lives by providing permanent aid
to anyone. It creates poverty, dependence, hopelessness--repeated
generation after generation in the same families. Some people are
saddened that President Clinton vetoed real welfare reform not once but
twice. I am more than saddened--I am angry. By keeping in place the
same failed welfare policies of the past, the President has retained
the status quo and denied the American Dream to millions of families.
This is wrong. Government at the very least should not continue
programs that hurt families and especially children. Welfare should be
a helping hand in times of trouble, not a hand-out that becomes a way
of life. I urge the President to not offer his veto a third time, but
to provide his signature for the first time.
The current welfare system subsidizes illegitimacy, destroys
families, and promotes waste, fraud, and abuse. It is not a morally
healthy environment when you have 12-year-olds having babies, 15-year-
olds killing each other, 17-year-olds dying of AIDS and 18-year-olds
graduating with diplomas they cannot read. Welfare as we now know it is
a system that keeps over a third of poor Americans locked in a
seemingly endless cycle of destitution that has not stemmed a steady
and growing epidemic of people living in poverty--14.5 percent of
Americans in 1994.
The debate surrounding welfare should not be centered around cost--
although the costs have been enormous over the years--but rather about
principles such as purpose, dignity, and hope. Currently welfare
consists of 80 Federal programs which provide cash payments, food,
housing, and medical benefits. When created, it was thought that
providing these handouts would allow individuals time in which to make
the necessary changes in their lives to become a productive and self-
sufficient member of society.
It is important to note that among industrialized nations at the
start of this decade, the United States had the most murders, the worst
schools, the most abortions, the highest infant mortality, the most
illegitimacy, the most one-parent families, the most children in jail,
and the most children on government aid.
Many of our successes in fighting welfare have begun in communities
and neighborhoods. There are a number of alternatives to Washington
bureaucracy. Habitat for Humanity is one such example. While the
Department of Housing and Urban Development [HUD] requires absolutely
nothing from tenants, Habitat requires recipients to learn the
responsibility of home ownership and requires them to build a home for
someone else before they help build their own home. One works to foster
responsibility while the other fosters only more dependence. HUD
requires only taxpayer dollars while Habitat for Humanity requires hard
work and commitment from the individual, the family and community
volunteers and donations. One works, the other does not work.
The 104th Congress has passed two dramatic welfare reform plans, only
to see them end at the desk of President Clinton and his veto pen. The
overriding messages of this bill are compassion, work, and
responsibility. Our welfare reform plan includes:
Deadbeat dads: This bill assures that children receive the support
necessary by establishing State tracking procedures, promoting
automation of child support procedures in every State, takes measures
to establish paternity, and toughens child support collections.
Work requirement: In 1979, 14 percent of welfare beneficiaries were
working at paid jobs. By 1990, the number had dropped by one-half to 7
percent. Today, fewer than 7 percent of AFDC recipients work.
Approximately 4.7 million families currently are on AFDC and over 90
percent will spend more than 2 years on welfare, and 77 percent will
spend more than 5 years on welfare. This bill provides tough work
requirements and enforces those work requirements. Able-bodied food
stamp recipients between the age of 18 and 50 years with no dependents
are required to either work 20 hours per week in a job or participate
in a State work or training program within 120 days for receipt of
benefits. It also gives incentives to reward States who are successful
in moving families off welfare and into work. Work offers the best
opportunity for long-term prosperity.
Congress also worked with the Nation's Governors to assure single
parents will be able to balance work with caring for their young
children. At the Governors' requests, exceptions can be made at the
State level to the lifetime 5-year benefits limit if a hardship exists.
States must have 50 percent of welfare families working by 2002 or face
losing Federal funds.
Child care: This bill provides for child care to allow parents to
receive proper training and education in pursuit of employment.
Child nutrition: Child nutrition programs are streamlined to reduce
costs without making cuts in school lunch, school breakfast or WIC
programs.
Food stamp program: Food stamps remain a Federal program but it
requires able-bodied single adults to spend at least 20 hours a week in
work-related activity or lose food-stamp benefits. In addition, it
allows States to use one set of eligibility rules for families seeking
cash welfare and food stamps.
Supplemental security income: Denies SSI to prisoners, people who
fraudulently receive SSI while in prison, people who receive SSI from
two or more States, fugitive felons, and probation and parole
violators.
Provisions for noncitizens: Present law requires that when aliens
come to the United States to live they must sign an affidavit that
states they will not become dependent on the State, in other words they
will get a job and become productive members of society. Unfortunately,
many come to the United States, never become U.S. citizens, and receive
assistance from taxpayers. This bill ends, 1 year after enactment,
Medicaid and food stamps for most noncitizens now on the welfare rolls
until they become citizens.
This welfare reform plan is the first step to allow millions an
opportunity at the American
[[Page H7815]]
Dream. Washington has finally come to the realization what our States
and local communities have long known that dollars alone won't solve
this problem.
In changing welfare we must also change people's habits. If
beneficiaries believe, as many currently do, that all they need to do
is sign-up for benefits and wait for the check, then they have no
incentive to find work. In contrast, if able bodies individuals know
they only have 2 years to find a job, they will have to change their
behavior and seek training that will lead to a job. By passing this
bill we are extending our hand and offering real assistance, not just a
handout but an opportunity for a new and better life. We are offering a
way out of a system which has trapped adults and children for the past
three decades.
This welfare reform bill moves toward individual responsibility, work
ethic, learning, and commitment. It allows individuals in their own
communities to reach out and help their neighbors. It helps children,
encourages families to stay together, puts people back to work and
strengthens America's moral fiber. It returns the program to its
original intent--a temporary helping hand for those most in need. In
the end, it provides opportunities that do not currently exist for
welfare beneficiaries to seek the American Dream with a sense of
purpose, dignity, and hope.
Mr. COYNE. Madam Chairman, in 1935 the Social Security Act became
law. It established a commitment by the Federal Government to provide a
guaranteed safety net for people who need assistance in making ends
meet. The Republican welfare reform legislation currently being
considered by the House of Representatives ends this 60-year commitment
to poor families and leaves their economic fate to the vagaries of
State politics. Further, this bill makes substantial cuts in the earned
income tax credit [EITC], puts millions of children in jeopardy of
losing their access to health care, and gives the States millions of
Federal taxpayer dollars and provides inadequate Federal oversight to
ensure that they will spend these funds wisely. For these reasons, I
cannot support this legislation.
The bill before us today will end the Federal guarantee of economic
assistance for families in need. This means that individual States will
determine who will be eligible for assistance and how to provide for
these families with limited Federal dollars. Under this system, if you
are poor and happen to live in New York, you may be eligible to receive
welfare assistance, while if you are poor and happen to live in
Mississippi, you may not be eligible to receive any assistance at all.
This is hardly an equitable means of distributing Federal dollars.
Eliminating the Federal commitment to the Nation's poor is something
that I simply cannot support. Families in need of assistance should
have somewhere to turn, regardless of the State in which they live.
Under this legislation, many children who currently have access to
health care services through the Medicaid Program may lose this
critically important access. It is estimated that as many as 1 million
children may lose their health care coverage under this legislation.
This legislation will allow States to deny health care coverage to
children who are currently receiving cash assistance but who will
become ineligible for assistance under this bill. Not only will this
legislation make many children ineligible for economic assistance, it
will hit them twice by making them ineligible for health care services
as well. At a time when the number of uninsured children is rising, it
is unconscionable that we are considering legislation that will
increase the number of uninsured children.
It is ironic that the Republican majority has chosen to make the
working poor pay for the costs of this bill through cuts to the EITC.
This bill actually raises taxes on approximately 4.3 million working
families earning between $17,000 and $29,000 per year by phrasing out
the EITC more quickly. Instead of placing the burden of funding their
welfare proposal on those who can best afford it, the Republican
majority has chosen to place this burden squarely on the shoulders of
those who can least afford it.
During the Ways and Means Committee's consideration of this bill, the
Democratic minority was assured that the cuts in the earned income tax
credit would be balanced by a nonrefundable $500 per child tax credit.
However, because this child tax credit is nonrefundable, millions of
working poor families will not be eligible to receive the child credit
because they do not earn enough income. Many families who are hurt by
the cuts in the EITC will be ineligible to receive the child tax
credit. Not surprisingly, the bill before us does not contain the $500
per child tax credit but retains the devastating cuts to the EITC.
This legislation sends a mixed message to welfare recipients. Under
current law, States are prohibited from counting families' EITC
payments in the calculation of their welfare eligibility and benefits.
The legislation under consideration today will permit States to use
EITC payments in these calculations. Individuals who are trying to make
ends meet through paid work but who just don't make enough money to get
by, face punishment by the State for their efforts. I offered an
amendment during the Ways and Means Committee's markup of this
legislation that would have required States to continue the current
policy of disregarding EITC payments in welfare determinations, but it
was defeated by the Republican majority. The EITC was established and
has enjoyed bipartisan support because it rewards work--exactly what
this bill is trying to accomplish--and so I do not understand why my
Republican colleagues insist on allowing States to punish families who
are genuinely trying to make work pay.
I believe that individuals who can work and who can find a job should
do so. I also believe that families who play by the rules should not be
penalized for their inability to find work. This legislation does
exactly that. By refusing to acknowledge that not everyone who
currently receives welfare will be able to find a job that will provide
a living wage, the Republican majority is setting up its welfare reform
proposal to fail. It will fail because it will harm innocent children
as well as their parents. The welfare reform bill before the House of
Representatives contains provisions that will push more children into
poverty--some estimate as many as 1.5 million--with little hope of ever
getting out. The bill explicitly leaves open the possibility that
children will suffer for the deeds of their parents and allows States
to use children as pawns in influencing the behavior of their parents.
The Republican majority, during markup of this legislation in the
Ways and Means Committee, repeatedly refused to soften provisions in
the bill that will undoubtedly hurt the children of individuals who
cannot find work within the bill's arbitrary time limit. Under this
legislation, States are prohibited from using Federal block grant funds
to provide vouchers for the children whose parents who are cut off from
cash assistance because of the time limit. This means that children
will be punished because their parents cannot find work. I cannot
support legislation with these effects on millions of our Nation's most
vulnerable citizens.
This bill grants States millions of Federal dollars and gives the
Federal Government sorely inadequate oversight in return. Under this
legislation, States must outline for the Department of Health and Human
Services how they plan to meet the bill's requirements. However, the
bill provides no organization, department or entity with the authority
to ensure that States do what they say they are going to do. It will be
exceedingly easy for States to submit fair and equitable plans to move
individuals from welfare to work, yet fail to do so in practice. The
Federal Government, although it will supply funding for the States'
assistance programs, will have no recourse to protect beneficiaries
from the failure of the States to act fairly.
The Republican majority is again placing before the House of
Representatives legislation that is part of a partisan political
agenda. They know as well as I do that President Clinton's welfare
reform efforts have already yielded substantial results. They know that
the President has granted 67 welfare waivers to 40 States to allow them
to experiment with different types of welfare-to-work strategies. They
know that welfare rolls are down by nearly 10 percent since President
Bush left office--that represents nearly 1.3 million fewer individuals
receiving welfare checks each month. They know that teen pregnancy
rates are down in 30 of the 41 States that report such rates. In the
face of these statistics, I do not understand the Republican majority's
uncalled-for attempt to bring radical and punitive change to the
Nation's 60-year-old safety net for the poor.
The bill before us today ends the Federal guarantee of assistance to
poor families. It punishes children for the deeds of their parents and
will almost surely force millions more children into poverty and
deprive them of health care.
Welfare reform does not need to be punitive. It does not need to end
the responsibility of the Federal Government for the economic well-
being of its citizens. The Republican majority's brand of welfare
reform does little to address existing barriers to economic self
sufficiency: inadequate education and training opportunities,
unaffordable health care, inadequate child care and a dearth of viable
job opportunities. Instead, the Republican majority has chosen again to
continue its agenda of pursuing policies that injure our Nation's most
defenseless citizens while doing little to reduce the pernicious
effects of poverty.
Mr. REED. Madam Chairman, I believe it is vital that we pass a
meaningful welfare reform bill. Meaningful welfare reform should move
individuals to work and instill individual responsibility, while
ensuring that children are protected.
The Republican bill debated today, just like the one vetoed by the
President last year, does not pass these essential tests. In fact, the
Republican bill fails to provide sufficient
[[Page H7816]]
funding to move welfare recipients to work; does not provide adequate
resources for States and individuals in the event of a severe
recession; and unduly and unnecessarily harms children. The Republican
bill can be summed up as weak on work and tough on children.
I support the Castle-Tanner alternative which is a tough, balanced,
and bipartisan welfare reform bill that can be signed into law if the
Republicans would let it reach the President's desk. Castle-Tanner
contains the funding States need to put people to work according to the
Congressional Budget Office. In addition, Castle-Tanner contains time
limits for welfare benefits, guarantees protections for children,
requires State accountability in operating welfare programs, and
improves the response to economic downturns.
In my State of Rhode Island, a coalition of State officials, business
leaders, and anti-poverty groups are currently working out the final
details of a compromise welfare reform package. Unlike the Republican
bill which would jeopardize this Rhode Island welfare reform effort,
Castle-Tanner compliments it by providing the necessary resources and
flexibility to move Rhode Island welfare recipients into work.
I urge my colleagues to support the Castle-Tanner substitute. Castle-
Tanner is the only bill offered today that will provide the funding,
flexibility, and protections necessary to create a reformed welfare
system that promotes work. Castle-Tanner is responsible and meaningful
welfare reform and it is a better bill for both Rhode Island and
America.
Mr. DURBIN. Madam Chairman, I rise in support of welfare reform.
The current welfare system is in desperate need of reform. For public
aid recipients trapped in the system, for those who exploit the welfare
system, and for the taxpayers who foot the bills, an overhaul of
welfare in America is a high priority.
The fundamental problem with our current system is that for many
people welfare becomes more than a helping hand; it becomes a way of
life. For some who enroll in the primary welfare program, Aid to
Families with Dependent Children [AFDC], welfare becomes a trap they
cannot escape. Some are afraid to lose the health benefits they receive
through Medicaid. Others are unable to secure child care to enable them
to go to work. We must eliminate these barriers and chart a clear path
for welfare recipients to go after a paycheck instead of a welfare
check. Welfare should be viewed as temporary assistance, not a
lifestyle.
I believe welfare benefits should be cut off for recipients who are
unwilling to pursue work, education or training. I also believe we must
strengthen child support enforcement. Billions of dollars in child
support payments go uncollected each year. By establishing paternity at
birth and pursuing deadbeat parents, we can reduce the number of
families that are impoverished by the failure of non-custodial parents
to fulfill their financial obligations.
Today the House of Representatives is considering two proposals--the
Gingrich bill and a bipartisan proposal offered by Representatives
Castle and Tanner. The bipartisan Castle-Tanner welfare reform bill is
dramatically better than the Gingrich bill.
The bipartisan bill will move people form welfare to work. It
provides sufficient funding for work programs, and provides needed
child care assistance for mothers who will be required to work and for
working poor families.
The bipartisan bill protects children. It requires States to provide
vouchers for the children of families who are removed from welfare
before they reach the 5-year time limit, and it gives States the option
of providing vouchers for children of families who exceed the 5-year
limit. It allows families to continue their Medicaid coverage if they
lose welfare benefits because of a time limit. And it continues the
eligibility of the children of legal immigrants for SSI and food
stamps.
In contrast, the Gingrich welfare bill is weak on work and tough on
children. It cuts resources for programs that move people from welfare
to work, potentially leaving States with a $9 billion deficit over 6
years. It discourages work by reducing the Earned Income Tax Credit,
which has the effect of raising taxes on more than 4 million poor
working families. It makes deep cuts in food stamps, endangering the
nutrition of millions of children and elderly Americans. It denies food
assistance to more than 300,000 children simply because they or their
parents are immigrants. It does not ensure Medicaid eligibility when
States change their welfare rules, endangering the health of millions
of poor families. And it fails to ensure that child support orders are
updated regularly to reflect the growing income of the non-custodial
parent.
I still have significant problems with parts of the Castle-Tanner
bill, particularly provisions relating to legal immigrants. Legal
immigrants play by the rules and contribute to the progress of our
country, just as all of our ancestors have done. I support effective
requirements on the sponsors of legal immigrants who apply for
benefits, but I do not believe that people who live legally in our
country should be treated unfairly.
I am supporting Castle-Tanner in the hope that bipartisan welfare
reform will become a reality this year. But before I support sending a
measure to the President, I hope that the House-Senate conference
committee addresses the serious flaws in the House effort.
Mr. RICHARDSON. Madam Chairman, I oppose this closed rule which
prohibits this House from taking a vote on issues critical to Native
American tribes.
Yesterday, I testified before the committee on two amendments
important for the safety and futures of American Indian children. My
amendments would have restored the current set-aside level for tribes
under the Child Care Block Grant and made tribes eligible for Title IV-
E adoption and foster care assistance funds.
I am disappointed that the Congress will not have an opportunity to
vote on these important issues.
Because of my particular concern about the Title IV-E adoption
assistance and foster care program, I will be introducing legislation
to make Indian children eligible for this assistance. I strongly
believe this is an issue that this Congress on obligation to vote on
whether it is a part of welfare reform or a free standing bill.
Mr. HORN. Madam Chairman, after the billions of taxpayer dollars
spent to end poverty, why do the welfare rolls continue to grow?
Why can't we do better than the welfare system we have in place right
now?
How many more families will be trapped in the current welfare system
before Congress and the President finally act?
Isn't it time that the President lived up to his campaign promise to
``end welfare as we know it?''
And, isn't it time for Congress to act?
These are the questions that America wants answered. I urge my
colleagues to provide those answers by voting for welfare reform today.
Mr. COSTELLO. Madam Chairman, I rise in opposition to the welfare
reform plan presented to this House today. This plan is another mean-
spirited attack on the most vulnerable citizens in our society, who
have been asked to endure huge cuts in programs to pay for tax cuts for
the very wealthy. In the interest of scoring political points, the
leadership of this House has offered to send the President a bill that
begs to be vetoed. This bill should not go forward.
I fully believe our welfare reform system is in dire need of reform.
For too long, it has fostered dependence and not provided the resources
or incentive for work. However, I cannot in good conscience support a
bill that as a policy turns its back on poor and needy children. This
bill eliminates the Federal safety net of Medicaid and food stamps for
many kids, and cuts millions of dollars by denying Supplemental
Security Income [SSI] assistance to the poor and disabled. And, by
mandating that individuals work without providing adequate employment
resources and child assistance, this bill threatens the health and
safety of thousands of children who now rely on their parents care.
This legislation is now responsible reform, and the real losers under
this bill are the 1 million children who will be pushed into poverty
under this so-called reform.
I urge my colleagues to support the Castle-Tanner substitute, which
represents a modest compromise that will protect children while
reforming our welfare system. The Castle-Tanner proposal guarantees
protections for children and provides the support necessary for
individuals to move into work. Castle-Tanner is serious about moving
individuals from welfare to work. It imposes work requirements within 2
years of receiving assistance and ends subsidies after 5 years. It does
not however, end food or medical assistance to children whose parents
no longer qualify. Further, the Castle-Tanner substitute holds fathers
responsible for their children through strong child support
enforcement.
Castle-Tanner provides States with broad flexibility to develop
successful welfare programs based on the needs of local communities.
However, unlike the Republican bill, the Castle-Tanner compromise does
not allow States to shirk their responsibilities to provide for their
citizens. Under Castle-Tanner, States must continue to spend a
reasonable and responsible amount of State dollars on assistance
programs. Successful welfare reform must be a thoughtful joint
partnership between the States and the Federal Government.
Madam Chairman, we have a responsibility to pass meaningful reform in
this House. We cannot abuse this responsibility by passing legislation
that will hurt thousands of children. I urge my colleagues to defeat
the Republican bill and pass the bipartisan Castle-Tanner substitute,
so that we can achieve meaningful, lasting welfare reform that
President Clinton can sign into law.
Mrs. COLLINS of Illinois. Madam Chairman, welfare as we know it
today, had its roots in
[[Page H7817]]
American society almost 75 years ago. It is challenging to observe what
the public and private sectors are doing to support children and
families in the transition from welfare to work to self-sufficiency.
Congress has the important role of providing a national view and in
assuring that national priorities are addressed at the State and local
levels of service administration and delivery. Many families need help
to transition from public assistance, known as welfare, to self-
sufficiency. We, as the national representatives of our society, must
help build bridges and extend ladders to support parents and families
as they move from welfare to work to self-sufficiency.
Work, responsibility, empowerment, and self-sufficiency should be the
hallmarks of this welfare reform debate. The Republican philosophy is
simply to get people off the public payrolls, with no attention to or
concern about what these families will do when they face the challenges
that may be inevitable for many of them. The best plan is one which
must not come about at the expense of the children, and which will help
people make the difficult transition from welfare to work. That's the
real test of welfare reform.
There are five basic principles that must be considered in any
welfare reform effort: Welfare reform must protect children. Their
well-being must be our top priority; parents must take responsibility
for their families, personally, emotionally, and financially; it is
critically important to empower young people to reduce teen pregnancy
and out-of-wedlock childbirth; quality child care is an issue that must
be addressed and provided; and there must be access to quality health
care.
We, as Federal legislators, must assure that the children are
protected. They must not be required to pay for either the mistakes of
their parents nor for the failures of our educational or private,
corporate system that has left too many parents without adequate life
and work skills to be self-sufficient. Reform ought not be just a race
to save money by kicking needy families off welfare. Instead, our
emphasis must be on enabling and empowering, not punishing parents and
families--a true profamily agenda. Workable welfare reform legislation
has to have not only real requirements for work, but also for job
training, counseling, and personal as well as financial support.
One positive approach is based on a simple compact: Job training, job
contracts, child care and child support enforcement to transition
people to work; plus time limits on cash assistance to ensure parents'
self-sufficiency so that welfare is not a way of life. Most people will
find jobs in the private sector, but for those who do not, we should
take the money which would have been spent on welfare checks and use it
to find a subsidized job, preferably within the private sector. Merely
passing the problem back to the States with reduced resources is not
the answer. Job skill for real work is the answer.
child support collections
It is my belief that both parents should be required to support their
children. Child support enforcement is an integral part of real welfare
reform. For example, we have to develop and implement a multipronged
approach to increasing child support collections. Therefore, paternity
should be required to be established in the hospital, at the birth of
the child, if at all possible, and without penalizing the mothers. I'd
like to see a Federal law requiring uniform State laws which will
prevent parents from evading their responsibilities by crossing State
lines. This would require centralized registries and new hire reporting
procedures or a national employment registry, which could be the IRS.
There are over 19 States that are using professional license
suspension or revocation as a method to enforce child support payments.
The threat of taking away driving, professional, and other work-related
licenses works. The Congressional Budget Office has estimated that the
Federal Government could save over $146 million in welfare payments in
the first 5 years as a result of a nationwide license revocation or
suspension program. Therefore, it is reasonable to predict that just
one major child support enforcement proposal would help boost child
support collections to $20 billion by the year 2000.
teen pregnancy and poverty
The link between teen births and poverty is clear: 80 percent of the
children born to teenage parents who dropped out of high school and did
not marry are poor. That contrasts to only 8 percent of children born
to married high school graduates over 20. Simply denying AFDC benefits
to a teenage mother, as the original Republican plan proposed, won't do
anything to move her family toward self-sufficiency. It's mean-spirited
and makes the children pay the price. This approach will lead to more
dependency, not less. One solution is possible when there is a stable
functional home environment: Require teen mothers to live at home with
their parents, identify their child's father, finish high school, learn
parenting skills and work. Welfare reform efforts must be flexible.
child care
There are welfare reform experiments in place that have been testing
various ways we can use requirements to move from welfare to self-
sufficiency. All of them stress work and responsibility. When we talk
about empowering families to move from welfare to self-sufficiency we
must also talk about child care. Child care support is particularly
critical for low-income parents because it is such a significant part
of a low-income family's budget. On average, poor working families pay
more than a quarter of their income on child care.
The child care development block grant signed into law by President
Bush with bipartisan support has made a significant contribution to
low-income working families. In 1993, 65 percent of the children served
were in families with incomes at or below the poverty line. Real
welfare reform requires more child care, not less. The original
Republican plan would reduce Federal funding for child care by $1.6
billion, or 15 percent over 5 years, and yet it kicks mothers off
welfare after 2 years. This is hypocritical. That would mean 320,000
fewer children would be served by the year 2000. That means working
families would be pitted against welfare recipients for scarce child
care assistance. That's not the way to reform welfare and move families
to self-sufficiency.
Recent studies have shown that children from low-income families are
more likely to be in low-quality centers. The child care development
and block grants have been instrumental in raising the standards for
child care programs. We need to focus not only on safe, nurturing
environments for children while their parents work and go to school,
but also on the quality of the developmental and educational
environment for the children's benefit; and, we must continue to expand
child care opportunities to help working parents stay out of the
welfare system, and for parents on welfare to transition off.
In summary: Work, responsibility, and empowerment are the keys to
helping people make the transition from welfare to self-sufficiency.
Budget cutting is not welfare reform. Supporting parents to develop
self-sufficiency is. Putting people to work is. With continue advocacy,
we can make the changes that are necessary. We can establish and
maintain the bridges from welfare to self-sufficiency for families. I
have recently learned a startling statistic prepared by The Brookings
Institution. A chart showing change in adjusted real personal income
demonstrated that the top levels of income increased from 30 to 40
percent over the last two decades. The middle incomes saw a modest
increase in adjusted real personal income; however, the lowest levels
of income saw a dramatic decline of down to a 30-percent decrease. From
a plus 40-percent increase for the very wealthy to a 30-percent
decrease for the very poor, and the Dole-Gingrich Republicans want to
decrease welfare.
I cannot help but wonder whether the Dole-Gingrich Republicans even
know who the welfare recipients are. Well, let me put a face on them.
They are the single mom who dropped out of high school as a pregnant
teenager, who was abused by adults as a child and abused by her spouse
or partner as an adult. She receives a pittance in Aid to Families with
Dependent Children [AFDC] and an allotment for food stamps. She can't
get a midlevel paying job because she has no skills. Even if she could
get a low paying job--where the competition is tough--there aren't any
health care benefits; and after she pays for babysitting and
transportation she is hard pressed to pay the rent. And heaven forbid
if the kids get sick--she can't afford medical care.
Will the Dole-Gingrich Republicans give her a job? Will they help
support jobs training programs so she can develop some employable
skill? Not in this original bill. That mom and her kids make up the
largest population of welfare recipients. The next large population
group that the Federal Government subsidizes with welfare are the
disabled--and the eligibility is that they cannot hold a job. Will the
Dole-Gingrich Republicans employ that person with disabilities? Or will
they support training programs or funding to assist an employer with
providing any adaptive or assistive equipment that would make most
persons with disabilities employable. Their record of little compassion
and understanding for the least fortunate doesn't indicate that they
will.
Madam Chairman, I stand for responsible government, for responsible
parents, and for a responsible and responsive private sector. We all
must join together to achieve reform of a system that can benefit all
sectors by enabling all families to be proud and self-sufficient.
While I do not agree with several of the provisions of the Castle-
Tanner substitute it is better than the Republican bill.
Ms. BROWN of Florida. Madam Chairman, I rise in opposition to the
Republican welfare reform proposal. Instead of solving the welfare
problems in this country, this bill creates new ones. By relying on
block grants to distribute
[[Page H7818]]
money to States, the neediest and most vulnerable people of this
country could be left out in the cold.
Sending money in the form of block grants is a virtual guarantee that
rapid growth States like Florida will either have to make up for the
loss of money on their own--or deny assistance to the neediest families
in their jurisdiction. We need to balance this country's budget in a
way that holds everyone responsible--not just the poor and the needy.
By cutting the earned-income tax credit, the Republicans are simply
punishing low-income working families. And by getting rid of job
training programs, the Republicans are eliminating the chance that
welfare recipients will have the necessary skills to get a job.
The Republican proposal is a mean-spirited attempt to punish those
who are already suffering.
Ms. ESHOO. Madam Chairman, I rise in opposition to this bill and in
strong support of the Tanner-Castle substitute for welfare reform.
The Tanner-Castle proposal is sounder policy for our country and
reforms a broken system by focusing on two critical elements: It
protects children and it promotes and assures work.
The Tanner-Castle proposal differs from H.R. 3734 in several other
important areas: It provides $3 billion in mandatory resources for work
programs; it requires vouchers for the needs of children during the 5-
year time limit for benefits; enough mandatory funding is provided for
child care for all welfare recipients; local governments are allowed
greater participation in the process of setting up programs in their
areas that meet the needs of their citizens; it includes an open ended
contingency fund for States to access in the event of an economic
recession; it requires a greater annual commitment by the States for
welfare programs; it provides food stamp benefits for the children of
legal immigrants.
These are not differences that negate the reforms of the welfare
system that my Republican colleagues are seeking. The provisions I have
listed ensure that when we make these reforms we are improving the
current system while maintaining a safety net for those who need it.
Change for the sake of change is not good enough unless there is a
regard for the impact it will have.
Madam Chairman, the Tanner-Castle legislation meets the test that
those who are in the system are given the assistance they need to move
from welfare to work. H.R. 3734 does not.
Our country must have a sound, workable, and fair welfare reform
policy. H.R. 3734 is tough on kids and weak on work. More than 1
million children could be pushed into poverty and in 70 percent of
these families, one of the parents is working. The bill makes it less
likely that child support orders will be updated regularly--actually
weakening current law on deadbeat parents--while increasing Federal
costs. I urge my colleagues to support the Tanner-Castle substitute and
oppose the underlying bill.
Mrs. VUCANOVICH. Madam Chairman, in the board game called life, there
is no welfare square that keeps your game piece there indefinitely.
Instead, there is hope, opportunity to go to college, to go to work, to
get married and have a family, to be a success and win the game. We
teach these values to our children through the games that they play,
yet our Government over the years has changed the values for our
children to live by.
Today on the House floor we are not playing a game. Today we are
taking a step, hopefully with the President's support, to restore our
American values and reform the welfare system so that welfare is no
longer a way of life. We can offer our citizens and children a chance--
a chance to work, a chance to go to school, and a chance to be a
success and win the real game of life.
H.R. 3734 promotes work and helps mothers on welfare by providing the
job training and child care they need to achieve this goal. This bill
says no more handouts to prisoners and noncitizens who have imposed on
our system, and reduced opportunities for those who truly deserve
assistance.
In addition, this bill restores power and flexibility of the welfare
program to the States. You and I both know that Washington bureaucrats
do not know what is best for Nevadans--most of them have not even been
to the Silver State to learn what Nevadans need and what challenges
must be faced. The best solutions can come from those who know us best,
our own State government. To help our States, the bill provides
appropriate funding and additional funding opportunities for those
States, like Nevada, with growing populations.
Lastly, and I find most importantly, the bill encourages
responsibility of families to reduce illegitimacy rates and to have
parents take financial responsibility for their children. Today's
illegitimacy rate among welfare families is almost 50 percent and is
expected to rise. This bill takes bold steps to establish paternity and
to make fathers pay child support. These are tough provisions, and it
is about time that the Federal Government helps States track down
parents who are unwilling to take care of their own family members. You
see, Madam Chairman, this is not a game--the 104th Congress means
business.
H.R. 3734 helps our future by helping our children. Our children will
be our leaders someday and we must instill in them the values we grew
up with. Responsibility for family, hope to go to college or have a
good job, dreams to be a success--they are not not just squares on a
board game, but are attainable goals in the real game of life. H.R.
3437 is a first step in making these goals become a reality, and I
encourage my colleagues to support this legislation, and urge the
President's to sign this essential bill for our children.
Mr. RICHARDSON. Madam Chairman, I am committed to reforming our
failing welfare system. Our Nation needs a welfare reform that gives
people back the dignity and control that comes from work and
independence.
Our current system pays cash assistance when people lack adequate
means to provide for their families rather than providing them with the
means to support themselves.
My voting record reflects what I want to see in a welfare reform
bill.
I believe that welfare should be a temporary program that provides a
safety net for people who fall on hard times. I have voted for a
program that limits persons to a 5-year lifetime limit for welfare
assistance.
I believe that able-bodied adults with no children should not be
eligible for food stamp benefits if they are not working at least part
time.
I also believe that welfare recipients must be aggressively looking
for a job. I have voted for legislation which terminates a persons
benefits if they refused to work, to accept a job, or refused to look
for work. If a job is not available, welfare recipients should be put
in community service jobs.
Central to the welfare debate are our children. I believe that people
should not have children until they are able to support them. I support
provisions which reduce benefits for teen parents who fail to maintain
minimum performance in school and denies teen parents assistance unless
they are living with a parent or responsible adult.
Additionally, I believe that parents--both parents--have
responsibilities to support their children. I have voted for
legislation which withholds paychecks for parents who do not pay child
support.
At the same time we are holding parents responsible for their
children, we should not punish a child whose parents fail. We have a
moral obligation to provide that no child goes hungry, is denied needed
medical care, or is left with inadequate supervision.
Welfare reform must include child care moneys for people entering the
work force with small children.
I also believe a welfare reform plan should give people access to the
training they need, but expect them to work in return. I am
disappointed that H.R. 3734 has no provisions to move people into the
work force.
Madam Chairman, I am ready to make welfare reform a reality. Welfare
reform must be tough on work, but fair to children.
Mr. CLAY. Madam Chairman, I rise to oppose this partisan and
politically motivated welfare bill that would push 1 million more
children into poverty.
Were it not for the fact that many have exploited this issue for raw
political purposes, perhaps we could reform a welfare system badly in
need of revision.
Were it not for the fact that those promoting an agenda of slashing
domestic assistance programs to finance unfair economic priorities,
perhaps real welfare reform could be achieved. Were it not for the fact
that the Republican majority in this House is willing to exploit the
condition of our Nation's poor in a desperate attempt to resuscitate
their extreme and failed agenda, perhaps a proposal could be framed
that fostered realistic work requirements and compassionate safety
nets.
Rather than exhausting my time objecting to the most reprehensible
provisions of this Republican plan, let me focus on some of the things
that must be contained in any welfare reform bill I can support in good
conscience:
First, welfare reform must contain realistic work requirements, not
harsh punitive measures devised to appeal to a crazed, cynical, public
scapegoating of the poor. Most welfare recipients want what is best for
themselves and their families. They want fulfilling jobs that pay a
livable wage. But when those clamoring for workfare oppose adequate
resources for job training, and education, their sincerity is called
into question. When those championing workfare in place of welfare show
no concern that jobs are available which pay decent wages, welfare
reform is an empty vessel.
Second, welfare reform must ensure that parents seeking to stay off
welfare are able to leave their children in safe and healthy child care
settings. Without adequate child care funding, welfare reform is a
bizarre notion.
Third, welfare reform must ensure that the poor are protected against
hunger and illness.
[[Page H7819]]
There must be an adequate contingency funding to shelter the poor
against recessions. Adequate food stamps must be available for poor
families so they don't starve, and, Medicaid must be preserved to
protect welfare recipients from the range of health risks that threaten
the medical well-being of the poor and the elderly.
Welfare reform must preserve critical Federal efforts to protect
children from abuse and neglect. It must not be used as a vehicle for
reckless experimentation with those protections.
Madam Chairman, we have a solemn responsibility to address the
Nation's problems with logical, compassionate legislation. The
Republican welfare bill before us has little to do with logic,
compassion or the reform of welfare.
I urge my colleagues to reject this misnamed, misdirected bill that
espouses unrealistic, inhumane expectations. The architects of this
flawed plan are willing to inflict suffering and misery on children.
Their bill speaks volumes about the warped morality of those who would
let children and the elderly starve.
Madam Chairman, the mere consideration of this trashy legislation
evidence that this Congress and the American people who insist on this
perversion of decency have lost all sense of purpose. This assault on
the poor is driven by dishonesty and deception. It constitutes a
reckless abandonment of humane values.
I urge its defeat.
Mr. BEREUTER. Madam Chairman, this Member is pleased to support
welfare reform legislation currently before the House for
consideration.
This Member has been a long-time supporter of efforts to reform our
current welfare system to ensure that only those who are unable to
provide their own basic needs receive assistance.
Enactment of a strong welfare reform measure that places an emphasis
on work as its centerpiece is long overdue. The Congressional Budget
Office has estimated that 1.3 million families now on welfare will be
working in fiscal year 2002 as a result of the enactment of this
legislation which converts welfare into a work program.
President Clinton promised to end welfare as we know it during his
1992 Presidential campaign. The President should be true to his initial
instincts and campaign promise and sign this much needed welfare reform
measure. The President's prior two vetoes of welfare reform
legislation represented another broken promise to the American people
for they were consistent with what the President requested. This Member
is hopeful that speedy action will be taken to enact this welfare
reform bill. It provides a compassionate solution for a failed welfare
system.
However, this Member is concerned that once again, the President by
his rhetoric in the past week, is laying the groundwork to reverse his
course, violate his own statements, and again veto strong welfare
reform legislation. It seems that Marian Wright Edelman will oppose any
welfare reform bill that is worthy of reform. It would seem that as
long as Marian Wright Edelman is opposed to this welfare reform bill,
Mrs. Clinton will oppose it, and the President will veto this
legislation and every welfare reform bill that is worthy of being
called a reform bill.
For millions of poor Americans trapped in a system of despair, this
measure offers them hope to escape the welfare cycle. It does that by
replacing our current welfare bureaucracy with reforms based on the
dignity and necessity of work for the able-bodied, and on the strength
of families. States are also granted maximum flexibility to help needy
individuals achieve self-reliance.
In addition, this important legislation ensures that absent parents
are not allowed to walk away from their moral and financial
responsibility to care for their children. Deadbeat parents currently
compound the Nation's welfare problems, causing millions of children to
live in poverty.
Madam Chairman, this Member urges his colleagues to support this
strong welfare reform measure which ensures that the system of
something for nothing is ended, and to require that welfare recipients
meet reasonable and responsible standards.
Mr. KLECZKA. Madam Chairman, I rise in support of the welfare
proposal put forth by the majority today.
I commend my colleagues on their decision to remove the poison pill
of Medicaid from this bill.
And I commend my colleagues for the substantial steps they have taken
to address the President's concerns, and the concerns of my Democratic
colleagues.
This new bill ensures the continuation of health care coverage for
those no longer eligible for AFDC. It deletes the unwarranted
reductions to the earned income tax credit that were included in the
original bill. And, it adds in $3 billion in work program funding.
No piece of legislation is perfect; this one is no exception. We know
full well that we will revisit this issue repeatedly as problems arise.
I would have preferred to see more Federal funding for job placement
and training, for child care, and for protection during recessions.
I would have preferred to increase State flexibility by giving States
the option to use Federal funds to provide vouchers for children whose
parents hit the time limits, rather than removing the protection of
those vouchers by including a mandate against them.
I have fought, unsuccessfully, for stronger nondisplacement language
so that America's workers can be assured that their jobs won't be put
in jeopardy. This omission still concerns me.
However, this legislation is a solid start.
It gives our States the tools and the flexibility they need to enact
meaningful, constructive reform.
A reform based upon personal responsibility, and personal
achievement. A reform that moves people into the work force--
permanently.
Congress must put aside partisan differences and pass this plan--to
reform and revitalize our welfare system.
Ms. PELOSI. Madam Chairman, we can all agree that the welfare status
quo is unacceptable. But the Republican welfare reform proposal will
make the problems of poverty and dependence much worse because it
refuses to make work the cornerstone of welfare reform.
Real welfare reform is about work. Opportunities for work, jobs that
pay a living wage, job training opportunities to provide skills
necessary to earn a living wage are long-term solutions for a permanent
and productive reform in our welfare system.
Real welfare reform must emphasize the importance of work. Real
welfare reform must also aid rather than punish children. Fourteen
million children live in poverty in the United States. Passage of this
legislation would add millions more to that statistic. This welfare
bill is punitive and unrealistic.
Abolishing the safety net for children, imposing family caps, denying
legal immigrants benefits, imposing arbitrary time limits, and failing
to provide adequate child care, health care, education, job training,
and work opportunities for people in need will thrust millions more
into poverty.
This bill cuts almost $60 billion from the poor in this country.
These cuts will affect children whose parents are on welfare. These
cuts will trap countless women in abusive relationships, with nowhere
to turn--without a realistic way to gain independence, gain work, and
provide for their children.
Welfare reform must be about education, job training, and work. We
must keep families together, rather than ripping them apart. We cannot
simply reduce the deficit at the cost of our poorest Americans. This
proposal has little wisdom, conscience, or heart.
Some of my colleagues will vote for this bill and then wash their
hands of welfare reform, saying they have done their job. But the job
of welfare reform is more complex and dire. People living in poverty
are not cardboard cutouts--they do not have the same stories, they do
not need the same services. This bill treats everyone alike--with
unrealistic time limits and no real, lasting, and effective plan to
move welfare recipients to work at a living wage.
The denial of benefits to legal immigrants in this legislation will
do great harm to children and have a devastative impact on the health
care system in our country. Only 3.9 percent of immigrants, who come to
the United States to join their families or to work, rely on public
assistance, compared to 4.2 percent of native-born citizens. According
to the Urban Institute, immigrants pay $25 billion more annually than
they receive in benefits. Yet the myth persists that welfare benefits
are the primary purpose for immigration to the United States. Instead
of appreciating legal immigrants for their significant contributions to
this, their adopted country, this bill blatantly punishes them,
especially young children and the elderly. It bans SSI and food stamps
for virtually all legal immigrants. It tosses aside people who pay
taxes, serve our country, and play by the rules. This lacks compassion
and common sense.
If we want to achieve real welfare reform, we need to offer some
long-term solutions to help people move up and out from the cycle of
poverty.
The current welfare system is not adequate, but this bill makes it
far worse. I urge my colleagues to oppose the Republican bill and work
together for meaningful reform that puts people to work and pulls them
out of poverty for good.
Mr. SERRANO. Madam Chairman, I rise in emphatic opposition to the
Republicans' welfare reform bill. I am tempted to simply repeat the
remarks I made last year, on the so-called Personal Responsibility Act,
since the flaws in this bill are remarkably similar. But I do have a
few new things to say.
It is clear to all thinking people that our current welfare system
fails the people it is meant to help, and every Member of this House,
Democrat as well as Republican, has voted for
[[Page H7820]]
some form of welfare reform in the last 2 years. But the Republicans'
approach will make the situation of the poor--and of the charities that
help them and the cities that contain them--much worse.
The clearest sign that this bill is totally misguided is that it
saves so much money. Everyone knows it takes more spending, not less,
to give poor mothers the tools they need to get and keep jobs and to
escape poverty. They need education, training, job-search assistance,
day care and health care for their children, and jobs--and that means
jobs that don't displace others.
Cost is the main reason Congress has been slow to face welfare reform
in the past. But this bill cuts the programs that sustain our neediest
families. It slashes the safety net for the poorest children and
families.
And, Madam Chairman, it is incomprehensible to me that we have now
reached a point where not one of the proposals before the House today
preserves the entitlement--the guarantee that some modest assistance
will be there for those families whose desperate circumstances make
them eligible. What recourse will these wretched families have?
A very, very big problem with this bill is how it treats our
children. No child chooses to be born into a poor family, but an eighth
of the country's children now receive some support from the welfare
system, and the Republican bill will push more than 1 million
additional children into poverty.
But, Madam Chairman, I want to concentrate on provisions related to
immigrants and public assistance. The immigrant provisions in this
bill--and, sadly, in the otherwise superior Castle-Tanner substitute--
are a disgrace, and an absolute bar to my supporting either bill.
The United States is a nation of immigrants. That is a cliche
precisely because it is true. We all have roots beyond the borders of
the United States; we all have ancestors, as near as our parents or as
remote as our many-times-great grandparents, who, willingly or not,
came to America.
We know that immigrants don't come for public assistance; they come
to join family members and to provide a better life for their children.
They work, they pay taxes, they participate in their schools and
churches and communities, and they play by the rules. Why should they
be targeted by this bill? Why should fully half the savings in this
bill be achieved on the backs of legal immigrants who are in trouble or
who wish to better themselves?
I can think of only one reason. For the past several years, this
country has seen a rising tide of antiimmigrant feeling, whipped up by
public officials who find naming scapegoats easier than dealing with
the real problems facing their constituents. If the economy turns down,
why, it must be immigrants. If schools are crowded, immigrants must be
the reason. Crime? Immigrants. Deficits? Immigrants. Strange languages
on the subway? Immigrants.
The assault is broad and comprehensive. it may begin with legitimate
concerns over control of our Nation's borders, but it quickly moves
to encompass those immigrants who have done everything we have asked of
them--and more--to qualify for the rights to live here, work and pay
taxes, and become Americans.
The antiterrorism bill has already made long-term immigrants with
deep roots in America suddenly subject to detention and deportation for
long-ago, mostly minor brushes with the law.
The immigration bill--supposed to deal with control of our borders
and enforcement of our employment eligibility laws--included provisions
to deny citizens and legal residents the right to reunite their
families in America.
Both the immigration bill and this bill would go way beyond enforcing
sponsors' obligations to support the immigrants they bring to this
country. Instead, they would make it impossible for our society to meet
its moral obligations to help people in trouble. It would also deny
immigrants the ability to better themselves through education and
training.
Funds for bilingual education are slashed, even as some Members of
this House would impose English-only policies on government. Bilingual
ballots and voting assistance are under attack, when even life-long
English speakers think they need law degrees to understand some of the
propositions that appear on our ballots.
Madam Chairman, one thing that disturbs me very much is that this
assault seems to be related to changes in the ethnicity of many recent
immigrants. This suggests that ethnic discrimination is likely to rise.
If immigrants are singled out as the class of people who are not worthy
of, or entitled to, assistance available to citizens, those who look or
sound foreign are at risk of extra scrutiny. You may recall reports
that, after proposition 187 passed in California, Hispanics' rights to
buy a pizza were questioned. People who look like you, Madam Chairman,
are unlikely to be asked, but increasingly, people who look like me are
being questioned about our immigration status. This is illegal,
undemocratic, unfair, but increasingly real.
Madam Chairman, I could go on, but I will close by urging all of my
colleagues to reject the Republicans' ugly, mean-spirited welfare
reform bill. It is simply too far off course. We need to return to
basic principles and start all over again if welfare reform is to
result in a welfare system that is compassionate, workable, and, above
all, fair.
Mr. JOHNSON of South Dakota. Madam Chairman, I rise today in
reluctant support of H.R. 3734 so that we may move forward with needed
welfare reform in this country. While I preferred the bipartisan
approach taken in the amendment by Mr. Castle and Mr. Tanner, which
gives States more flexibility to develop and implement workfare
programs, it is paramount that we no longer accept the status quo. The
provisions in H.R. 3734 are much improved compared to H.R. 4 of last
year, which I could not support and was also vetoed by the President.
It is too late in the congressional session to start over, and my vote
for H.R. 3734 is a vote to keep the debate and the possibility of a
bipartisan agreement on welfare reform alive.
The welfare reform bill which passed the House today was an
improvement over H.R. 4 because it does the following: First, deletes
the elimination of Medicaid changes that threatened access to medical
care for the most vulnerable in our country; second, deletes the block
granting of the child nutrition program; third, adds resources for
child care above the level in previous bills; fourth, includes a work
performance bonus that gives States an incentive to move people from
welfare to work; and fifth, preserves funding for foster care and
adoption assistance programs.
There are several things that I believe must and will be improved via
Senate and conference committee action on this legislation. Among
these, I believe we simply must further ensure that children who happen
to have been born into difficult circumstances do not go hungry.
Punishing innocent children is not a solution nor should it even be an
option. We must require States to protect children if their parents are
removed from the welfare rolls.
As this bill moves to conference, it is my judgment that we must
address the concerns raised recently by the National Governors
Association regarding the restrictions on State flexibility and
unfunded costs in the work requirements of H.R. 3734. The Congressional
Budget Office has concluded that most States would fail to meet the
work requirements and that most would simply accept the penalties
rather than implement the requirements for work. The most important
reform we can enact in the welfare system is to move people to self-
sufficiency. We must not fail in that regard and therefore I am hopeful
that this bill is improved in conference to ensure adequate resources
to States to implement solid work requirements.
We must ensure that no families lose health care coverage when States
change AFDC rules. Even though the Medicaid reconciliation provisions
have been removed, we need to guarantee that families do not lose
health care coverage even if they are removed from welfare rolls.
Madam Chairman, our Nation demands that we reform our welfare system.
This legislation moves a long way toward needed reform, but it can
still be better. I offer my reluctant support and hope that the Senate
and the conference committee address my concerns and make this bill the
best that it can possibly be.
The CHAIRMAN. All time for debate pursuant to House Resolution 482
has expired.
Pursuant to the rule, an amendment in the nature of a substitute
consisting of the text of H.R. 3829, modified by the amendment printed
in part 1 of House Report 104-686 is adopted. The bill, as amended,
shall be considered as an original bill for the purpose for further
amendment and is considered read.
The text of the amendment in the nature of a substitute, as modified,
is as follows:
H.R. 3829
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Welfare Reform
Reconciliation Act of 1996''.
SEC. 2. TABLE OF TITLES.
The table of titles of this Act is as follows:
Title I--Committee on Agriculture
Title II--Committee on Commerce
Title III--Committee on Economic and Educational Opportunities
Title IV--Committee on Ways and Means
TITLE I--COMMITTEE ON AGRICULTURE
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Food Stamp Reform and
Commodity Distribution Act of 1996''.
SEC. 1002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
[[Page H7821]]
Sec. 1001. Short title.
Sec. 1002. Table of contents.
Subtitle A--Food Stamp Program
Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household
determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program
requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp
benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance
programs.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and
wholesale food concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization
criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.
Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification
systems.
Sec. 1050. Disqualification of retailers who intentionally submit
falsified applications.
Sec. 1051. Disqualification of retailers who are disqualified under the
WIC program.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements
pending administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Response to waivers.
Sec. 1060. Employment initiatives program.
Sec. 1061. Reauthorization.
Sec. 1062. Simplified food stamp program.
Sec. 1063. State food assistance block grant.
Sec. 1064. A study of the use of food stamps to purchase vitamins and
minerals.
Sec. 1065. Investigations.
Sec. 1066. Food stamp eligibility.
Sec. 1067. Report by the Secretary.
Sec. 1068. Deficit reduction.
Subtitle B--Commodity Distribution Programs
Sec. 1071. Emergency food assistance program.
Sec. 1072. Food bank demonstration project.
Sec. 1073. Hunger prevention programs.
Sec. 1074. Report on entitlement commodity processing.
Subtitle C--Electronic Benefit Transfer Systems
Sec. 1091. Provisions to encourage electronic benefit transfer systems.
Subtitle A--Food Stamp Program
SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C.
2012(c)) is amended by striking ``Except as provided'' and
all that follows and inserting the following: ``The
certification period shall not exceed 12 months, except that
the certification period may be up to 24 months if all adult
household members are elderly or disabled. A State agency
shall have at least 1 contact with each certified household
every 12 months.''.
SEC. 1012. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.
2012(d)) is amended by striking ``or type of certificate''
and inserting ``type of certificate, authorization card, cash
or check issued in lieu of a coupon, or an access device,
including an electronic benefit transfer card or personal
identification number,''.
SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(i)) is amended by striking ``(who are
not themselves parents living with their children or married
and living with their spouses)''.
SEC. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE
HOUSEHOLD DETERMINATIONS.
Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.
2012(i)) is amended by inserting after the third sentence the
following: ``Notwithstanding the preceding sentences, a State
may establish criteria that prescribe when individuals who
live together, and who would be allowed to participate as
separate households under the preceding sentences, shall be
considered a single household, without regard to the common
purchase of food and preparation of meals.''.
SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(o)) is amended--
(1) by striking ``shall (1) make'' and inserting the
following: ``shall--
``(1) make'';
(2) by striking ``scale, (2) make'' and inserting ``scale;
``(2) make'';
(3) by striking ``Alaska, (3) make'' and inserting the
following: ``Alaska;
``(3) make''; and
(4) by striking ``Columbia, (4) through'' and all that
follows through the end of the subsection and inserting the
following: ``Columbia; and
``(4) on October 1, 1996, and each October 1 thereafter,
adjust the cost of the diet to reflect the cost of the diet,
in the preceding June, and round the result to the nearest
lower dollar increment for each household size, except that
on October 1, 1996, the Secretary may not reduce the cost
of the diet in effect on September 30, 1996.''.
SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2012(s)(2)(C)) is amended by inserting ``for not more than 90
days'' after ``temporary accommodation''.
SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)) is amended by striking ``(b) The Secretary'' and
inserting the following:
``(b) Eligibility Standards.--Except as otherwise provided
in this Act, the Secretary''.
SEC. 1018. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking ``21'' and inserting
``19''.
SEC. 1019. ENERGY ASSISTANCE.
(a) In General.--Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and
inserting the following: ``(11) a 1-time payment or allowance
made under a Federal or State law for the costs of
weatherization or emergency repair or replacement of an
unsafe or inoperative furnace or other heating or cooling
device,''.
(b) Conforming Amendments.--
(1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``plan for aid to
families with dependent children approved'' and inserting
``program funded''; and
(ii) in subparagraph (B), by striking ``, not including
energy or utility-cost assistance,'';
(B) in paragraph (2), by striking subparagraph (C) and
inserting the following:
``(C) a payment or allowance described in subsection
(d)(11);''; and
(C) by adding at the end the following:
``(4) Third party energy assistance payments.--
``(A) Energy assistance payments.--For purposes of
subsection (d)(1), a payment made under a Federal or State
law to provide energy assistance to a household shall be
considered money payable directly to the household.
``(B) Energy assistance expenses.--For purposes of
subsection (e)(7), an expense paid on behalf of a household
under a Federal or State law to provide energy assistance
shall be considered an out-of-pocket expense incurred and
paid by the household.''.
(2) Section 2605(f) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended--
(A) by striking ``(f)(1) Notwithstanding'' and inserting
``(f) Notwithstanding'';
(B) in paragraph (1), by striking ``food stamps,''; and
(C) by striking paragraph (2).
SEC. 1020. DEDUCTIONS FROM INCOME.
(a) In General.--Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended by striking subsection (e) and
inserting the following:
``(e) Deductions From Income.--
``(1) Standard deduction.--The Secretary shall allow a
standard deduction for each household in the 48 contiguous
States and the District of Columbia, Alaska, Hawaii, Guam,
and the Virgin Islands of the United States of $134, $229,
$189, $269, and $118, respectively.
``(2) Earned income deduction.--
``(A) Definition of earned income.--In this paragraph, the
term `earned income' does not include income excluded by
subsection (d) or any portion of income earned
[[Page H7822]]
under a work supplementation or support program, as defined
under section 16(b), that is attributable to public
assistance.
``(B) Deduction.--Except as provided in subparagraph (C), a
household with earned income shall be allowed a deduction of
20 percent of all earned income to compensate for taxes,
other mandatory deductions from salary, and work expenses.
``(C) Exception.--The deduction described in subparagraph
(B) shall not be allowed with respect to determining an
overissuance due to the failure of a household to report
earned income in a timely manner.
``(3) Dependent care deduction.--
``(A) In general.--A household shall be entitled, with
respect to expenses (other than excluded expenses described
in subparagraph (B)) for dependent care, to a dependent care
deduction, the maximum allowable level of which shall be $200
per month for each dependent child under 2 years of age and
$175 per month for each other dependent, for the actual cost
of payments necessary for the care of a dependent if the care
enables a household member to accept or continue employment,
or training or education that is preparatory for employment.
``(B) Excluded expenses.--The excluded expenses referred to
in subparagraph (A) are--
``(i) expenses paid on behalf of the household by a third
party;
``(ii) amounts made available and excluded for the expenses
referred to in subparagraph (A) under subsection (d)(3); and
``(iii) expenses that are paid under section 6(d)(4).
``(4) Deduction for child support payments.--
``(A) In general.--A household shall be entitled to a
deduction for child support payments made by a household
member to or for an individual who is not a member of the
household if the household member is legally obligated to
make the payments.
``(B) Methods for determining amount.--The Secretary may
prescribe by regulation the methods, including calculation on
a retrospective basis, that a State agency shall use to
determine the amount of the deduction for child support
payments.
``(5) Homeless shelter allowance.--A State agency may
develop a standard homeless shelter allowance, which shall
not exceed $143 per month, for such expenses as may
reasonably be expected to be incurred by households in which
all members are homeless individuals but are not receiving
free shelter throughout the month. A State agency that
develops the allowance may use the allowance in determining
eligibility and allotments for the households, except that
the State agency may prohibit the use of the allowance for
households with extremely low shelter costs.
``(6) Excess medical expense deduction.--
``(A) In general.--A household containing an elderly or
disabled member shall be entitled, with respect to expenses
other than expenses paid on behalf of the household by a
third party, to an excess medical expense deduction for the
portion of the actual costs of allowable medical expenses,
incurred by the elderly or disabled member, exclusive of
special diets, that exceeds $35 per month.
``(B) Method of claiming deduction.--
``(i) In general.--A State agency shall offer an eligible
household under subparagraph (A) a method of claiming a
deduction for recurring medical expenses that are initially
verified under the excess medical expense deduction in lieu
of submitting information or verification on actual expenses
on a monthly basis.
``(ii) Method.--The method described in clause (i) shall--
``(I) be designed to minimize the burden for the eligible
elderly or disabled household member choosing to deduct the
recurrent medical expenses of the member pursuant to the
method;
``(II) rely on reasonable estimates of the expected medical
expenses of the member for the certification period
(including changes that can be reasonably anticipated based
on available information about the medical condition of the
member, public or private medical insurance coverage, and the
current verified medical expenses incurred by the member);
and
``(III) not require further reporting or verification of a
change in medical expenses if such a change has been
anticipated for the certification period.
``(7) Excess shelter expense deduction.--
``(A) In general.--A household shall be entitled, with
respect to expenses other than expenses paid on behalf of the
household by a third party, to an excess shelter expense
deduction to the extent that the monthly amount expended by a
household for shelter exceeds an amount equal to 50 percent
of monthly household income after all other applicable
deductions have been allowed.
``(B) Maximum amount of deduction.--In the case of a
household that does not contain an elderly or disabled
individual, the excess shelter expense deduction shall not
exceed--
``(i) in the 48 contiguous States and the District of
Columbia, $247 per month; and
``(ii) in Alaska, Hawaii, Guam, and the Virgin Islands of
the United States, $429, $353, $300, and $182 per month,
respectively.
``(C) Standard utility allowance.--
``(i) In general.--In computing the excess shelter expense
deduction, a State agency may use a standard utility
allowance in accordance with regulations promulgated by the
Secretary, except that a State agency may use an allowance
that does not fluctuate within a year to reflect seasonal
variations.
``(ii) Restrictions on heating and cooling expenses.--An
allowance for a heating or cooling expense may not be used in
the case of a household that--
``(I) does not incur a heating or cooling expense, as the
case may be;
``(II) does incur a heating or cooling expense but is
located in a public housing unit that has central utility
meters and charges households, with regard to the expense,
only for excess utility costs; or
``(III) shares the expense with, and lives with, another
individual not participating in the food stamp program,
another household participating in the food stamp program, or
both, unless the allowance is prorated between the household
and the other individual, household, or both.
``(iii) Mandatory allowance.--
``(I) In general.--A State agency may make the use of a
standard utility allowance mandatory for all households with
qualifying utility costs if--
``(aa) the State agency has developed 1 or more standards
that include the cost of heating and cooling and 1 or more
standards that do not include the cost of heating and
cooling; and
``(bb) the Secretary finds that the standards will not
result in an increased cost to the Secretary.
``(II) Household election.--A State agency that has not
made the use of a standard utility allowance mandatory under
subclause (I) shall allow a household to switch, at the end
of a certification period, between the standard utility
allowance and a deduction based on the actual utility
costs of the household.
``(iv) Availability of allowance to recipients of energy
assistance.--
``(I) In general.--Subject to subclause (II), if a State
agency elects to use a standard utility allowance that
reflects heating or cooling costs, the standard utility
allowance shall be made available to households receiving a
payment, or on behalf of which a payment is made, under the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621
et seq.) or other similar energy assistance program, if the
household still incurs out-of-pocket heating or cooling
expenses in excess of any assistance paid on behalf of the
household to an energy provider.
``(II) Separate allowance.--A State agency may use a
separate standard utility allowance for households on behalf
of which a payment described in subclause (I) is made, but
may not be required to do so.
``(III) States not electing to use separate allowance.--A
State agency that does not elect to use a separate allowance
but makes a single standard utility allowance available to
households incurring heating or cooling expenses (other than
a household described in subclause (I) or (II) of
subparagraph (C)(ii)) may not be required to reduce the
allowance due to the provision (directly or indirectly) of
assistance under the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.).
``(IV) Proration of assistance.--For the purpose of the
food stamp program, assistance provided under the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.)
shall be considered to be prorated over the entire heating or
cooling season for which the assistance was provided.''.
(b) Conforming Amendment.--Section 11(e)(3) of the Act (7
U.S.C. 2020(e)(3)) is amended by striking ``Under rules
prescribed'' and all that follows through ``verifies higher
expenses;''.
SEC. 1021. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by striking paragraph (2) and inserting
the following:
``(2) Included assets.--
``(A) In general.--Subject to the other provisions of this
paragraph, the Secretary shall, in prescribing inclusions in,
and exclusions from, financial resources, follow the
regulations in force as of June 1, 1982 (other than those
relating to licensed vehicles and inaccessible resources).
``(B) Additional included assets.--The Secretary shall
include in financial resources--
``(i) any boat, snowmobile, or airplane used for
recreational purposes;
``(ii) any vacation home;
``(iii) any mobile home used primarily for vacation
purposes;
``(iv) subject to subparagraph (C), any licensed vehicle
that is used for household transportation or to obtain or
continue employment to the extent that the fair market value
of the vehicle exceeds $4,600; and
``(v) any savings or retirement account (including an
individual account), regardless of whether there is a penalty
for early withdrawal.
``(C) Excluded vehicles.--A vehicle (and any other
property, real or personal, to the extent the property is
directly related to the maintenance or use of the vehicle)
shall not be included in financial resources under this
paragraph if the vehicle is--
``(i) used to produce earned income;
``(ii) necessary for the transportation of a physically
disabled household member; or
``(iii) depended on by a household to carry fuel for
heating or water for home use and provides the primary source
of fuel or water, respectively, for the household.''.
[[Page H7823]]
SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED
AS INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2014(k)(2)) is amended--
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and (H) as
subparagraphs (F) and (G), respectively.
SEC. 1023. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM
REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended--
(1) in clause (i), by striking ``six months'' and inserting
``1 year''; and
(2) in clause (ii), by striking ``1 year'' and inserting
``2 years''.
SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)(iii)) is amended--
(1) in subclause (II), by striking ``or'' at the end;
(2) in subclause (III), by striking the period at the end
and inserting ``; or''; and
(3) by inserting after subclause (III) the following:
``(IV) a conviction of an offense under subsection (b) or
(c) of section 15 involving an item covered by subsection (b)
or (c) of section 15 having a value of $500 or more.''.
SEC. 1025. DISQUALIFICATION.
(a) In General.--Section 6(d) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless
otherwise exempted by the provisions'' and all that follows
through the end of paragraph (1) and inserting the following:
``(d) Conditions of Participation.--
``(1) Work requirements.--
``(A) In general.--No physically and mentally fit
individual over the age of 15 and under the age of 60 shall
be eligible to participate in the food stamp program if the
individual--
``(i) refuses, at the time of application and every 12
months thereafter, to register for employment in a manner
prescribed by the Secretary;
``(ii) refuses without good cause to participate in an
employment and training program under paragraph (4), to the
extent required by the State agency;
``(iii) refuses without good cause to accept an offer of
employment, at a site or plant not subject to a strike or
lockout at the time of the refusal, at a wage not less than
the higher of--
``(I) the applicable Federal or State minimum wage; or
``(II) 80 percent of the wage that would have governed had
the minimum hourly rate under section 6(a)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been
applicable to the offer of employment;
``(iv) refuses without good cause to provide a State agency
with sufficient information to allow the State agency to
determine the employment status or the job availability of
the individual;
``(v) voluntarily and without good cause--
``(I) quits a job; or
``(II) reduces work effort and, after the reduction, the
individual is working less than 30 hours per week; or
``(vi) fails to comply with section 20.
``(B) Household ineligibility.--If an individual who is the
head of a household becomes ineligible to participate in the
food stamp program under subparagraph (A), the household
shall, at the option of the State agency, become ineligible
to participate in the food stamp program for a period,
determined by the State agency, that does not exceed the
lesser of--
``(i) the duration of the ineligibility of the individual
determined under subparagraph (C); or
``(ii) 180 days.
``(C) Duration of ineligibility.--
``(i) First violation.--The first time that an individual
becomes ineligible to participate in the food stamp program
under subparagraph (A), the individual shall remain
ineligible until the later of--
``(I) the date the individual becomes eligible under
subparagraph (A);
``(II) the date that is 1 month after the date the
individual became ineligible; or
``(III) a date determined by the State agency that is not
later than 3 months after the date the individual became
ineligible.
``(ii) Second violation.--The second time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual shall
remain ineligible until the later of--
``(I) the date the individual becomes eligible under
subparagraph (A);
``(II) the date that is 3 months after the date the
individual became ineligible; or
``(III) a date determined by the State agency that is not
later than 6 months after the date the individual became
ineligible.
``(iii) Third or subsequent violation.--The third or
subsequent time that an individual becomes ineligible to
participate in the food stamp program under subparagraph (A),
the individual shall remain ineligible until the later of--
``(I) the date the individual becomes eligible under
subparagraph (A);
``(II) the date that is 6 months after the date the
individual became ineligible;
``(III) a date determined by the State agency; or
``(IV) at the option of the State agency, permanently.
``(D) Administration.--
``(i) Good cause.--The Secretary shall determine the
meaning of good cause for the purpose of this paragraph.
``(ii) Voluntary quit.--The Secretary shall determine the
meaning of voluntarily quitting and reducing work effort for
the purpose of this paragraph.
``(iii) Determination by state agency.--
``(I) In general.--Subject to subclause (II) and clauses
(i) and (ii), a State agency shall determine--
``(aa) the meaning of any term in subparagraph (A);
``(bb) the procedures for determining whether an individual
is in compliance with a requirement under subparagraph (A);
and
``(cc) whether an individual is in compliance with a
requirement under subparagraph (A).
``(II) Not less restrictive.--A State agency may not
determine a meaning, procedure, or determination under
subclause (I) to be less restrictive than a comparable
meaning, procedure, or determination under a State program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.).
``(iv) Strike against the government.--For the purpose of
subparagraph (A)(v), an employee of the Federal Government, a
State, or a political subdivision of a State, who is
dismissed for participating in a strike against the Federal
Government, the State, or the political subdivision of the
State shall be considered to have voluntarily quit without
good cause.
``(v) Selecting a head of household.--
``(I) In general.--For the purpose of this paragraph, the
State agency shall allow the household to select any adult
parent of a child in the household as the head of the
household if all adult household members making application
under the food stamp program agree to the selection.
``(II) Time for making designation.--A household may
designate the head of the household under subclause (I) each
time the household is certified for participation in the food
stamp program, but may not change the designation during a
certification period unless there is a change in the
composition of the household.
``(vi) Change in head of household.--If the head of a
household leaves the household during a period in which the
household is ineligible to participate in the food stamp
program under subparagraph (B)--
``(I) the household shall, if otherwise eligible, become
eligible to participate in the food stamp program; and
``(II) if the head of the household becomes the head of
another household, the household that becomes headed by the
individual shall become ineligible to participate in the food
stamp program for the remaining period of ineligibility.''.
(b) Conforming Amendment.--
(1) The second sentence of section 17(b)(2) of the Act (7
U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and
inserting ``6(d)(1)(A)(i)''.
(2) Section 20 of the Act (7 U.S.C. 2029) is amended by
striking subsection (f) and inserting the following:
``(f) Disqualification.--An individual or a household may
become ineligible under section 6(d)(1) to participate in the
food stamp program for failing to comply with this
section.''.
SEC. 1026. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by striking subparagraph (B) and
inserting the following: ``(B) a parent or other member of a
household with responsibility for the care of (i) a dependent
child under the age of 6 or any lower age designated by the
State agency that is not under the age of 1, or (ii) an
incapacitated person;''.
SEC. 1027. EMPLOYMENT AND TRAINING.
(a) In General.--Section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)) is amended--
(1) in subparagraph (A)--
(A) by striking ``Not later than April 1, 1987, each'' and
inserting ``Each'';
(B) by inserting ``work,'' after ``skills, training,''; and
(C) by adding at the end the following: ``Each component of
an employment and training program carried out under this
paragraph shall be delivered through a statewide workforce
development system, unless the component is not available
locally through the statewide workforce development
system.'';
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking the
colon at the end and inserting the following: ``, except that
the State agency shall retain the option to apply employment
requirements prescribed under this subparagraph to a program
applicant at the time of application:'';
(B) in clause (i), by striking ``with terms and
conditions'' and all that follows through ``time of
application''; and
(C) in clause (iv)--
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as
subclauses (I) and (II), respectively;
(3) in subparagraph (D)--
(A) in clause (i), by striking ``to which the application''
and all that follows through ``30 days or less'';
(B) in clause (ii), by striking ``but with respect'' and
all that follows through ``child care''; and
(C) in clause (iii), by striking ``, on the basis of'' and
all that follows through ``clause (ii)'' and inserting ``the
exemption continues to be valid'';
(4) in subparagraph (E), by striking the third sentence;
[[Page H7824]]
(5) in subparagraph (G)--
(A) by striking ``(G)(i) The State'' and inserting ``(G)
The State''; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ``(H)(i) The
Secretary'' and all that follows through ``(ii) Federal
funds'' and inserting ``(H) Federal funds'';
(7) in subparagraph (I)(i)(II), by striking ``, or was in
operation,'' and all that follows through ``Social Security
Act'' and inserting the following: ``), except that no such
payment or reimbursement shall exceed the applicable local
market rate'';
(8)(A) by striking subparagraphs (K) and (L) and inserting
the following:
``(K) Limitation on funding.--Notwithstanding any other
provision of this paragraph, the amount of funds a State
agency uses to carry out this paragraph (including under
subparagraph (I)) for participants who are receiving benefits
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) shall not exceed
the amount of funds the State agency used in fiscal year 1995
to carry out this paragraph for participants who were
receiving benefits in fiscal year 1995 under a State program
funded under part A of title IV of the Act (42 U.S.C. 601 et
seq.).''; and
(B) by redesignating subparagraphs (M) and (N) as
subparagraphs (L) and (M), respectively; and
(9) in subparagraph (L), as redesignated by paragraph
(8)(B)--
(A) by striking ``(L)(i) The Secretary'' and inserting
``(L) The Secretary''; and
(B) by striking clause (ii).
(b) Funding.--Section 16(h) of the Act (7 U.S.C. 2025(h))
is amended by striking ``(h)(1)(A) The Secretary'' and all
that follows through the end of paragraph (1) and inserting
the following:
``(h) Funding of Employment and Training Programs.--
``(1) In general.--
``(A) Amounts.--To carry out employment and training
programs, the Secretary shall reserve for allocation to State
agencies from funds made available for each fiscal year under
section 18(a)(1) the amount of--
``(i) for fiscal year 1996, $75,000,000;
``(ii) for fiscal year 1997, $79,000,000;
``(iii) for fiscal year 1998, $81,000,000;
``(iv) for fiscal year 1999, $84,000,000;
``(v) for fiscal year 2000, $86,000,000;
``(vi) for fiscal year 2001, $88,000,000; and
``(vii) for fiscal year 2002, $90,000,000.
``(B) Allocation.--The Secretary shall allocate the amounts
reserved under subparagraph (A) among the State agencies
using a reasonable formula (as determined by the Secretary)
that gives consideration to the population in each State
affected by section 6(o).
``(C) Reallocation.--
``(i) Notification.--A State agency shall promptly notify
the Secretary if the State agency determines that the State
agency will not expend all of the funds allocated to the
State agency under subparagraph (B).
``(ii) Reallocation.--On notification under clause (i), the
Secretary shall reallocate the funds that the State agency
will not expend as the Secretary considers appropriate and
equitable.
``(D) Minimum allocation.--Notwithstanding subparagraphs
(A) through (C), the Secretary shall ensure that each State
agency operating an employment and training program shall
receive not less than $50,000 in each fiscal year.''.
(c) Additional Matching Funds.--Section 16(h)(2) of the Act
(7 U.S.C. 2025(h)(2)) is amended by inserting before the
period at the end the following: ``, including the costs for
case management and casework to facilitate the transition
from economic dependency to self-sufficiency through work''.
(d) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h))
is amended--
(1) in paragraph (5)--
(A) by striking ``(5)(A) The Secretary'' and inserting
``(5) The Secretary''; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015) is amended by adding at the end the following:
``(i) Comparable Treatment for Disqualification.--
``(1) In general.--If a disqualification is imposed on a
member of a household for a failure of the member to perform
an action required under a Federal, State, or local law
relating to a means-tested public assistance program, the
State agency may impose the same disqualification on the
member of the household under the food stamp program.
``(2) Rules and procedures.--If a disqualification is
imposed under paragraph (1) for a failure of an individual to
perform an action required under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), the State agency
may use the rules and procedures that apply under part A of
title IV of the Act to impose the same disqualification under
the food stamp program.
``(3) Application after disqualification period.--A member
of a household disqualified under paragraph (1) may, after
the disqualification period has expired, apply for benefits
under this Act and shall be treated as a new applicant,
except that a prior disqualification under subsection (d)
shall be considered in determining eligibility.''.
(b) State Plan Provisions.--Section 11(e) of the Act (7
U.S.C. 2020(e)) is amended--
(1) in paragraph (24), by striking ``and'' at the end;
(2) in paragraph (25), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(26) the guidelines the State agency uses in carrying out
section 6(i); and''.
(c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7
U.S.C. 2015(d)(2)(A)) is amended by striking ``that is
comparable to a requirement of paragraph (1)''.
SEC. 1029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD
STAMP BENEFITS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by section 1028, is amended by adding at the end the
following:
``(j) Disqualification for Receipt of Multiple Food Stamp
Benefits.--An individual shall be ineligible to participate
in the food stamp program as a member of any household for a
10-year period if the individual is found by a State agency
to have made, or is convicted in a Federal or State court of
having made, a fraudulent statement or representation with
respect to the identity or place of residence of the
individual in order to receive multiple benefits
simultaneously under the food stamp program.''.
SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by sections 1028 and 1029, is amended by adding at
the end the following:
``(k) Disqualification of Fleeing Felons.--No member of a
household who is otherwise eligible to participate in the
food stamp program shall be eligible to participate in the
program as a member of that or any other household during any
period during which the individual is--
``(1) fleeing to avoid prosecution, or custody or
confinement after conviction, under the law of the place from
which the individual is fleeing, for a crime, or attempt to
commit a crime, that is a felony under the law of the place
from which the individual is fleeing or that, in the case of
New Jersey, is a high misdemeanor under the law of New
Jersey; or
``(2) violating a condition of probation or parole imposed
under a Federal or State law.''.
SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by sections 1028 through 1030, is amended by adding
at the end the following:
``(l) Custodial Parent's Cooperation With Child Support
Agencies.--
``(1) In general.--At the option of a State agency, subject
to paragraphs (2) and (3), no natural or adoptive parent or
other individual (collectively referred to in this subsection
as `the individual') who is living with and exercising
parental control over a child under the age of 18 who has an
absent parent shall be eligible to participate in the food
stamp program unless the individual cooperates with the State
agency administering the program established under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
``(B) in obtaining support for--
``(i) the child; or
``(ii) the individual and the child.
``(2) Good cause for noncooperation.--Paragraph (1) shall
not apply to the individual if good cause is found for
refusing to cooperate, as determined by the State agency in
accordance with standards prescribed by the Secretary in
consultation with the Secretary of Health and Human Services.
The standards shall take into consideration circumstances
under which cooperation may be against the best interests of
the child.
``(3) Fees.--Paragraph (1) shall not require the payment of
a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(m) Noncustodial Parent's Cooperation With Child Support
Agencies.--
``(1) In general.--At the option of a State agency, subject
to paragraphs (2) and (3), a putative or identified
noncustodial parent of a child under the age of 18 (referred
to in this subsection as `the individual') shall not be
eligible to participate in the food stamp program if the
individual refuses to cooperate with the State agency
administering the program established under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
``(B) in providing support for the child.
``(2) Refusal to cooperate.--
``(A) Guidelines.--The Secretary, in consultation with the
Secretary of Health and Human Services, shall develop
guidelines on what constitutes a refusal to cooperate under
paragraph (1).
``(B) Procedures.--The State agency shall develop
procedures, using guidelines developed under subparagraph
(A), for determining whether an individual is refusing to
cooperate under paragraph (1).
``(3) Fees.--Paragraph (1) shall not require the payment of
a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(4) Privacy.--The State agency shall provide safeguards
to restrict the use of information collected by a State
agency administering the program established under part D of
title IV of the Social Security Act (42
[[Page H7825]]
U.S.C. 651 et seq.) to purposes for which the information is
collected.''.
SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUPPORT
ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by sections 1028 through 1031, is amended by adding
at the end the following:
``(n) Disqualification for Child Support Arrears.--
``(1) In general.--At the option of the State agency, no
individual shall be eligible to participate in the food stamp
program as a member of any household during any month that
the individual is delinquent in any payment due under a court
order for the support of a child of the individual.
``(2) Exceptions.--Paragraph (1) shall not apply if--
``(A) a court is allowing the individual to delay payment;
or
``(B) the individual is complying with a payment plan
approved by a court or the State agency designated under part
D of title IV of the Social Security Act (42 U.S.C. 651 et
seq.) to provide support for the child of the individual.''.
SEC. 1033. WORK REQUIREMENT.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015), as amended by sections 1028 through 1032, is
amended by adding at the end the following:
``(o) Work Requirement.--
``(1) Definition of work program.--In this subsection, the
term `work program' means--
``(A) a program under the Job Training Partnership Act (29
U.S.C. 1501 et seq.);
``(B) a program under section 236 of the Trade Act of 1974
(19 U.S.C. 2296); or
``(C) a program of employment and training operated or
supervised by a State or political subdivision of a State
that meets standards approved by the Governor of the State,
including a program under section 6(d)(4), other than a job
search program or a job search training program.
``(2) Work requirement.--Subject to the other provisions of
this subsection, no individual shall be eligible to
participate in the food stamp program as a member of any
household if, during the preceding 12-month period,
the individual received food stamp benefits for not less
than 4 months during which the individual did not--
``(A) work 20 hours or more per week, averaged monthly; or
``(B) participate in and comply with the requirements of a
work program for 20 hours or more per week, as determined by
the State agency; or
``(C) participate in a program under section 20 or a
comparable program established by a State or political
subdivision of a State.
``(3) Exception.--Paragraph (2) shall not apply to an
individual if the individual is--
``(A) under 18 or over 50 years of age;
``(B) medically certified as physically or mentally unfit
for employment;
``(C) a parent or other member of a household with
responsibility for a dependent child;
``(D) otherwise exempt under section 6(d)(2); or
``(E) a pregnant woman.
``(4) Waiver.--
``(A) In general.--On the request of a State agency, the
Secretary may waive the applicability of paragraph (2) to any
group of individuals in the State if the Secretary makes a
determination that the area in which the individuals reside--
``(i) has an unemployment rate of over 10 percent; or
``(ii) does not have a sufficient number of jobs to provide
employment for the individuals.
``(B) Report.--The Secretary shall report the basis for a
waiver under subparagraph (A) to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
``(5) Subsequent eligibility.--
``(A) In general.--Paragraph (2) shall cease to apply to an
individual if, during a 30-day period, the individual--
``(i) works 80 or more hours;
``(ii) participates in and complies with the requirements
of a work program for 80 or more hours, as determined by a
State agency; or
``(iii) participates in a program under section 20 or a
comparable program established by a State or political
subdivision of a State.
``(B) Limitation.--During the subsequent 12-month period,
the individual shall be eligible to participate in the food
stamp program for not more than 4 months during which the
individual does not--
``(i) work 20 hours or more per week, averaged monthly;
``(ii) participate in and comply with the requirements of a
work program for 20 hours or more per week, as determined by
the State agency; or
``(iii) participate in a program under section 20 or a
comparable program established by a State or political
subdivision of a State.''.
(b) Transition Provision.--Prior to 1 year after the date
of enactment of this Act, the term ``preceding 12-month
period'' in section 6(o) of the Food Stamp Act of 1977, as
amended by subsection (a), means the preceding period that
begins on the date of enactment of this Act.
SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.
(a) In General.--Section 7(i) of the Food Stamp Act of 1977
(7 U.S.C. 2016(i)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Electronic benefit transfers.--
``(A) Implementation.--Each State agency shall implement an
electronic benefit transfer system in which household
benefits determined under section 8(a) or 26 are issued
from and stored in a central databank before October 1,
2002, unless the Secretary provides a waiver for a State
agency that faces unusual barriers to implementing an
electronic benefit transfer system.
``(B) Timely implementation.--State agencies are encouraged
to implement an electronic benefit transfer system under
subparagraph (A) as soon as practicable.
``(C) State flexibility.--Subject to paragraph (2), a State
agency may procure and implement an electronic benefit
transfer system under the terms, conditions, and design that
the State agency considers appropriate.
``(D) Operation.--An electronic benefit transfer system
should take into account generally accepted standard
operating rules based on--
``(i) commercial electronic funds transfer technology;
``(ii) the need to permit interstate operation and law
enforcement monitoring; and
``(iii) the need to permit monitoring and investigations by
authorized law enforcement agencies.'';
(2) in paragraph (2)--
(A) by striking ``effective no later than April 1, 1992,'';
(B) in subparagraph (A)--
(i) by striking ``, in any 1 year,''; and
(ii) by striking ``on-line'';
(C) by striking subparagraph (D) and inserting the
following:
``(D)(i) measures to maximize the security of a system
using the most recent technology available that the State
agency considers appropriate and cost effective and which may
include personal identification numbers, photographic
identification on electronic benefit transfer cards, and
other measures to protect against fraud and abuse; and
``(ii) effective not later than 2 years after the effective
date of this clause, to the extent practicable, measures that
permit a system to differentiate items of food that may be
acquired with an allotment from items of food that may not be
acquired with an allotment.'';
(D) in subparagraph (G), by striking ``and'' at the end;
(E) in subparagraph (H), by striking the period at the end
and inserting ``; and''; and
(F) by adding at the end the following:
``(I) procurement standards.''; and
(3) by adding at the end the following:
``(7) Replacement of benefits.--Regulations issued by the
Secretary regarding the replacement of benefits and liability
for replacement of benefits under an electronic benefit
transfer system shall be similar to the regulations in effect
for a paper food stamp issuance system.
``(8) Replacement card fee.--A State agency may collect a
charge for replacement of an electronic benefit transfer card
by reducing the monthly allotment of the household receiving
the replacement card.
``(9) Optional photographic identification.--
``(A) In general.--A State agency may require that an
electronic benefit card contain a photograph of 1 or more
members of a household.
``(B) Other authorized users.--If a State agency requires a
photograph on an electronic benefit card under subparagraph
(A), the State agency shall establish procedures to ensure
that any other appropriate member of the household or any
authorized representative of the household may utilize the
card.
``(10) Application of anti-tying restrictions to electronic
benefit transfer systems.--
``(A) In general.--A company shall not sell or provide
electronic benefit transfer services, or fix or vary the
consideration for such services, on the condition or
requirement that the customer--
``(i) obtain some additional point-of-sale service from the
company or any affiliate of the company; or
``(ii) not obtain some additional point-of-sale service
from a competitor of the company or competitor of any
affiliate of the company.
``(B) Definitions.--In this paragraph--
``(i) Affiliate.--The term `affiliate' shall have the same
meaning as in section 2(k) of the Bank Holding Company Act.
``(ii) Company.--The term `company' shall have the same
meaning as in section 106(a) of the Bank Holding Company Act
Amendments of 1970, but shall not include a bank, bank
holding company, or any subsidiary of a bank holding company.
``(iii) Electronic benefit transfer service.--The term
`electronic benefit transfer service' means the processing of
electronic transfers of household benefits determined under
section 8(a) or 26 where the benefits are--
``(I) issued from and stored in a central databank;
``(II) electronically accessed by household members at the
point of sale; and
``(III) provided by a Federal or state government.
``(iv) Point-of-sale service.--The term `point-of-sale
service' means any product or service related to the
electronic authorization and processing of payments for
merchandise at a retail food store, including but
[[Page H7826]]
not limited to credit or debit card services, automated
teller machines, point-of-sale terminals, or access to on-
line systems.
``(C) Consultation with the federal reserve board.--Before
promulgating regulations or interpretations of regulations to
carry out this paragraph, the Secretary shall consult with
the Board of Governors of the Federal Reserve System.''.
(b) Sense of Congress.--It is the sense of Congress that a
State that operates an electronic benefit transfer system
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)
should operate the system in a manner that is compatible with
electronic benefit transfer systems operated by other States.
SEC. 1035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act of 1977
(7 U.S.C. 2017(a)) is amended by striking ``, and shall be
adjusted'' and all that follows through ``$5''.
SEC. 1036. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)(2)(B)) is amended by striking ``of more than one
month''.
SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)) is amended by striking paragraph (3) and inserting
the following:
``(3) Optional combined allotment for expedited
households.--A State agency may provide to an eligible
household applying after the 15th day of a month, in lieu of
the initial allotment of the household and the regular
allotment of the household for the following month, an
allotment that is equal to the total amount of the initial
allotment and the first regular allotment. The allotment
shall be provided in accordance with section 11(e)(3) in the
case of a household that is not entitled to expedited service
and in accordance with paragraphs (3) and (9) of section
11(e) in the case of a household that is entitled to
expedited service.''.
SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by striking subsection (d) and inserting the
following:
``(d) Reduction of Public Assistance Benefits.--
``(1) In general.--If the benefits of a household are
reduced under a Federal, State, or local law relating to a
means-tested public assistance program for the failure of a
member of the household to perform an action required under
the law or program, for the duration of the reduction--
``(A) the household may not receive an increased allotment
as the result of a decrease in the income of the household to
the extent that the decrease is the result of the reduction;
and
``(B) the State agency may reduce the allotment of the
household by not more than 25 percent.
``(2) Rules and procedures.--If the allotment of a
household is reduced under this subsection for a failure to
perform an action required under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), the State agency
may use the rules and procedures that apply under part A of
title IV of the Act to reduce the allotment under the food
stamp program.''.
SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by adding at the end the following:
``(f) Allotments for Households Residing in Centers.--
``(1) In general.--In the case of an individual who resides
in a center for the purpose of a drug or alcoholic treatment
program described in the last sentence of section 3(i), a
State agency may provide an allotment for the individual to--
``(A) the center as an authorized representative of the
individual for a period that is less than 1 month; and
``(B) the individual, if the individual leaves the center.
``(2) Direct payment.--A State agency may require an
individual referred to in paragraph (1) to designate the
center in which the individual resides as the authorized
representative of the individual for the purpose of receiving
an allotment.''.
SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)(1)) is amended by adding at the end the following:
``No retail food store or wholesale food concern of a type
determined by the Secretary, based on factors that include
size, location, and type of items sold, shall be approved to
be authorized or reauthorized for participation in the food
stamp program unless an authorized employee of the Department
of Agriculture, a designee of the Secretary, or, if
practicable, an official of the State or local government
designated by the Secretary has visited the store or concern
for the purpose of determining whether the store or concern
should be approved or reauthorized, as appropriate.''.
SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)) is amended by adding at the end the following:
``(3) Authorization periods.--The Secretary shall establish
specific time periods during which authorization to accept
and redeem coupons, or to redeem benefits through an
electronic benefit transfer system, shall be valid under the
food stamp program.''.
SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C.
2018(c)) is amended--
(1) in the first sentence, by inserting ``, which may
include relevant income and sales tax filing documents,''
after ``submit information''; and
(2) by inserting after the first sentence the following:
``The regulations may require retail food stores
and wholesale food concerns to provide written
authorization for the Secretary to verify all relevant tax
filings with appropriate agencies and to obtain
corroborating documentation from other sources so that the
accuracy of information provided by the stores and
concerns may be verified.''.
SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO MEET
AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.
2018(d)) is amended by adding at the end the following: ``A
retail food store or wholesale food concern that is denied
approval to accept and redeem coupons because the store or
concern does not meet criteria for approval established by
the Secretary may not, for at least 6 months, submit a new
application to participate in the program. The Secretary may
establish a longer time period under the preceding sentence,
including permanent disqualification, that reflects the
severity of the basis of the denial.''.
SEC. 1044. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020),
as amended by sections 1020(b) and 1028(b), is amended--
(1) in subsection (e)--
(A) by striking paragraph (2) and inserting the following:
``(2)(A) that the State agency shall establish procedures
governing the operation of food stamp offices that the State
agency determines best serve households in the State,
including households with special needs, such as households
with elderly or disabled members, households in rural areas
with low-income members, homeless individuals, households
residing on reservations, and households in areas in which a
substantial number of members of low-income households speak
a language other than English;
``(B) that in carrying out subparagraph (A), a State
agency--
``(i) shall provide timely, accurate, and fair service to
applicants for, and participants in, the food stamp program;
``(ii) shall develop an application containing the
information necessary to comply with this Act;
``(iii) shall permit an applicant household to apply to
participate in the program on the same day that the household
first contacts a food stamp office in person during office
hours;
``(iv) shall consider an application that contains the
name, address, and signature of the applicant to be filed on
the date the applicant submits the application;
``(v) shall require that an adult representative of each
applicant household certify in writing, under penalty of
perjury, that--
``(I) the information contained in the application is true;
and
``(II) all members of the household are citizens or are
aliens eligible to receive food stamps under section 6(f);
``(vi) shall provide a method of certifying and issuing
coupons to eligible homeless individuals, to ensure that
participation in the food stamp program is limited to
eligible households; and
``(vii) may establish operating procedures that vary for
local food stamp offices to reflect regional and local
differences within the State;
``(C) that nothing in this Act shall prohibit the use of
signatures provided and maintained electronically, storage of
records using automated retrieval systems only, or any other
feature of a State agency's application system that does not
rely exclusively on the collection and retention of paper
applications or other records;
``(D) that the signature of any adult under this paragraph
shall be considered sufficient to comply with any provision
of Federal law requiring a household member to sign an
application or statement;'';
(B) in paragraph (3), as amended by section 1020(b)--
(i) by striking ``shall--'' and all that follows through
``provide each'' and inserting ``shall provide each''; and
(ii) by striking ``(B) assist'' and all that follows
through ``representative of the State agency;'';
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15) through (24) as
paragraphs (14) through (23), respectively; and
(ii) by redesignating paragraph (26), as added by section
1028(b), as paragraph (24); and
(2) in subsection (i)--
(A) by striking ``(i) Notwithstanding'' and all that
follows through ``(2)'' and inserting the following:
``(i) Application and Denial Procedures.--
``(1) Application procedures.--Notwithstanding any other
provision of law,''; and
(B) by striking ``; (3) households'' and all that follows
through ``title IV of the Social Security Act. No'' and
inserting a period and the following:
``(2) Denial and termination.--Other than in a case of
disqualification as a penalty for failure to comply with a
public assistance program rule or regulation, no''.
[[Page H7827]]
SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(6)) is amended--
(1) by striking ``that (A) the'' and inserting ``that--
``(A) the'';
(2) by striking ``Act; (B) the'' and inserting ``Act; and
``(B) the'';
(3) in subparagraph (B), by striking ``United States Civil
Service Commission'' and inserting ``Office of Personnel
Management''; and
(4) by striking subparagraphs (C) through (E).
SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(8)) is amended--
(1) by striking ``that (A) such'' and inserting the
following: ``that--
``(A) the'';
(2) by striking ``law, (B) notwithstanding'' and inserting
the following: ``law;
``(B) notwithstanding'';
(3) by striking ``Act, and (C) such'' and inserting the
following: ``Act;
``(C) the''; and
(4) by adding at the end the following:
``(D) notwithstanding any other provision of law, the
address, social security number, and, if available,
photograph of any member of a household shall be made
available, on request, to any Federal, State, or local law
enforcement officer if the officer furnishes the State agency
with the name of the member and notifies the agency that--
``(i) the member--
``(I) is fleeing to avoid prosecution, or custody or
confinement after conviction, for a crime (or attempt to
commit a crime) that, under the law of the place the member
is fleeing, is a felony (or, in the case of New Jersey, a
high misdemeanor), or is violating a condition of probation
or parole imposed under Federal or State law; or
``(II) has information that is necessary for the officer to
conduct an official duty related to subclause (I);
``(ii) locating or apprehending the member is an official
duty; and
``(iii) the request is being made in the proper exercise of
an official duty; and
``(E) the safeguards shall not prevent compliance with
paragraph (16);''.
SEC. 1047. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(9)) is amended--
(1) in subparagraph (A)--
(A) by striking ``five days'' and inserting ``7 days''; and
(B) by inserting ``and'' at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as subparagraph (B);
and
(4) in subparagraph (B), as redesignated by paragraph (3),
by striking ``, (B), or (C)''.
SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(10)) is amended by inserting before the semicolon at
the end a period and the following: ``At the option of a
State, at any time prior to a fair hearing determination
under this paragraph, a household may withdraw, orally or in
writing, a request by the household for the fair hearing. If
the withdrawal request is an oral request, the State agency
shall provide a written notice to the household confirming
the withdrawal request and providing the household with an
opportunity to request a hearing''.
SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS
VERIFICATION SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is
amended--
(1) in subsection (e)(18), as redesignated by section
1044(1)(D)--
(A) by striking ``that information is'' and inserting ``at
the option of the State agency, that information may be'';
and
(B) by striking ``shall be requested'' and inserting ``may
be requested''; and
(2) by adding at the end the following:
``(p) State Verification Option.--Notwithstanding any other
provision of law, in carrying out the food stamp program, a
State agency shall not be required to use an income and
eligibility or an immigration status verification system
established under section 1137 of the Social Security Act (42
U.S.C. 1320b-7).''.
SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY
SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C.
2021(b)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) for a reasonable period of time to be determined by
the Secretary, including permanent disqualification, on the
knowing submission of an application for the approval or
reauthorization to accept and redeem coupons that contains
false information about a substantive matter that was a part
of the application.''.
SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is
amended by adding at the end the following:
``(g) Disqualification of Retailers Who Are Disqualified
Under the WIC Program.--
``(1) In general.--The Secretary shall issue regulations
providing criteria for the disqualification under this Act of
an approved retail food store and a wholesale food concern
that is disqualified from accepting benefits under the
special supplemental nutrition program for women, infants,
and children established under section 17 of the Child
Nutrition Act of 1966 (7 U.S.C. 1786).
``(2) Terms.--A disqualification under paragraph (1)--
``(A) shall be for the same length of time as the
disqualification from the program referred to in paragraph
(1);
``(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
``(C) notwithstanding section 14, shall not be subject to
judicial or administrative review.''.
SEC. 1052. COLLECTION OF OVERISSUANCES.
(a) Collection of Overissuances.--Section 13 of the Food
Stamp Act of 1977 (7 U.S.C. 2022) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Collection of Overissuances.--
``(1) In general.--Except as otherwise provided in this
subsection, a State agency shall collect any overissuance of
coupons issued to a household by--
``(A) reducing the allotment of the household;
``(B) withholding amounts from unemployment compensation
from a member of the household under subsection (c);
``(C) recovering from Federal pay or a Federal income tax
refund under subsection (d); or
``(D) any other means.
``(2) Cost effectiveness.--Paragraph (1) shall not apply if
the State agency demonstrates to the satisfaction of the
Secretary that all of the means referred to in paragraph (1)
are not cost effective.
``(3) Maximum reduction absent fraud.--If a household
received an overissuance of coupons without any member of the
household being found ineligible to participate in the
program under section 6(b)(1) and a State agency elects to
reduce the allotment of the household under paragraph (1)(A),
the State agency shall not reduce the monthly allotment of
the household under paragraph (1)(A) by an amount in excess
of the greater of--
``(A) 10 percent of the monthly allotment of the household;
or
``(B) $10.
``(4) Procedures.--A State agency shall collect an
overissuance of coupons issued to a household under paragraph
(1) in accordance with the requirements established by the
State agency for providing notice, electing a means of
payment, and establishing a time schedule for payment.''; and
(2) in subsection (d)--
(A) by striking ``as determined under subsection (b) and
except for claims arising from an error of the State
agency,'' and inserting ``, as determined under subsection
(b)(1),''; and
(B) by inserting before the period at the end the
following: ``or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code''.
(b) Conforming Amendments.--Section 11(e)(8) of the Act (7
U.S.C. 2020(e)(8)) is amended--
(1) by striking ``and excluding claims'' and all that
follows through ``such section''; and
(2) by inserting before the semicolon at the end the
following: ``or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code''.
(c) Retention Rate.--Section 16(a) of the Act (7 U.S.C.
2025(a)) is amended by striking ``25 percent during the
period beginning October 1, 1990'' and all that follows
through ``error of a State agency'' and inserting the
following: ``25 percent of the overissuances collected by the
State agency under section 13, except those overissuances
arising from an error of the State agency''.
SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS PENDING ADMINISTRATIVE AND
JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C.
2023(a)) is amended--
(1) by redesignating the first through seventeenth
sentences as paragraphs (1) through (17), respectively; and
(2) by adding at the end the following:
``(18) Suspension of stores pending review.--
Notwithstanding any other provision of this subsection, any
permanent disqualification of a retail food store or
wholesale food concern under paragraph (3) or (4) of section
12(b) shall be effective from the date of receipt of the
notice of disqualification. If the disqualification is
reversed through administrative or judicial review, the
Secretary shall not be liable for the value of any sales lost
during the disqualification period.''.
SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.
(a) Forfeiture of Items Exchanged in Food Stamp
Trafficking.--The first sentence of section 15(g) of the Food
Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended by striking
``or intended to be furnished''.
(b) Criminal Forfeiture.--Section 15 of the Act (7 U.S.C.
2024) is amended by adding at the end the following:
``(h) Criminal Forfeiture.--
[[Page H7828]]
``(1) In general.--In imposing a sentence on a person
convicted of an offense in violation of subsection (b) or
(c), a court shall order, in addition to any other sentence
imposed under this subsection, that the person forfeit to the
United States all property described in paragraph (2).
``(2) Property subject to forfeiture.--All property, real
and personal, used in a transaction or attempted transaction,
to commit, or to facilitate the commission of, a violation
(other than a misdemeanor) of subsection (b) or (c), or
proceeds traceable to a violation of subsection (b) or (c),
shall be subject to forfeiture to the United States under
paragraph (1).
``(3) Interest of owner.--No interest in property shall be
forfeited under this subsection as the result of any act or
omission established by the owner of the interest to have
been committed or omitted without the knowledge or consent of
the owner.
``(4) Proceeds.--The proceeds from any sale of forfeited
property and any monies forfeited under this subsection shall
be used--
``(A) first, to reimburse the Department of Justice for the
costs incurred by the Department to initiate and complete the
forfeiture proceeding;
``(B) second, to reimburse the Department of Agriculture
Office of Inspector General for any costs the Office incurred
in the law enforcement effort resulting in the forfeiture;
``(C) third, to reimburse any Federal or State law
enforcement agency for any costs incurred in the law
enforcement effort resulting in the forfeiture; and
``(D) fourth, by the Secretary to carry out the approval,
reauthorization, and compliance investigations of retail
stores and wholesale food concerns under section 9.''.
SEC. 1055. LIMITATION OF FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2025(a)(4)) is amended by inserting after the comma at the
end the following: ``but not including recruitment
activities,''.
SEC. 1056. STANDARDS FOR ADMINISTRATION.
(a) In General.--Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 11(g) of the Act (7
U.S.C. 2020(g)) is amended by striking ``the Secretary's
standards for the efficient and effective administration of
the program established under section 16(b)(1) or''.
(2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B))
is amended by striking ``pursuant to subsection (b)''.
SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025),
as amended by section 1056(a), is amended by inserting after
subsection (a) the following:
``(b) Work Supplementation or Support Program.--
``(1) Definition of work supplementation or support
program.--In this subsection, the term `work supplementation
or support program' means a program under which, as
determined by the Secretary, public assistance (including any
benefits provided under a program established by the State
and the food stamp program) is provided to an employer to be
used for hiring and employing a public assistance recipient
who was not employed by the employer at the time the public
assistance recipient entered the program.
``(2) Program.--A State agency may elect to use an amount
equal to the allotment that would otherwise be issued to a
household under the food stamp program, but for the operation
of this subsection, for the purpose of subsidizing or
supporting a job under a work supplementation or support
program established by the State.
``(3) Procedure.--If a State agency makes an election under
paragraph (2) and identifies each household that participates
in the food stamp program that contains an individual who is
participating in the work supplementation or support
program--
``(A) the Secretary shall pay to the State agency an amount
equal to the value of the allotment that the household would
be eligible to receive but for the operation of this
subsection;
``(B) the State agency shall expend the amount received
under subparagraph (A) in accordance with the work
supplementation or support program in lieu of providing the
allotment that the household would receive but for the
operation of this subsection;
``(C) for purposes of--
``(i) sections 5 and 8(a), the amount received under this
subsection shall be excluded from household income and
resources; and
``(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an
allotment provided to the household; and
``(D) the household shall not receive an allotment from the
State agency for the period during which the member continues
to participate in the work supplementation or support
program.
``(4) Other work requirements.--No individual shall be
excused, by reason of the fact that a State has a work
supplementation or support program, from any work requirement
under section 6(d), except during the periods in which the
individual is employed under the work supplementation or
support program.
``(5) Length of participation.--A State agency shall
provide a description of how the public assistance recipients
in the program shall, within a specific period of time, be
moved from supplemented or supported employment to employment
that is not supplemented or supported.
``(6) Displacement.--A work supplementation or support
program shall not displace the employment of individuals who
are not supplemented or supported.''.
SEC. 1058. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) in subparagraph (A)--
(A) by striking the second sentence; and
(B) by striking ``benefits to eligible households,
including'' and inserting the following: ``benefits to
eligible households, and may waive any requirement of this
Act to the extent necessary for the project to be conducted.
``(B) Project requirements.--
``(i) Program goal.--The Secretary may not conduct a
project under subparagraph (A) unless the project is
consistent with the goal of the food stamp program of
providing food assistance to raise levels of nutrition among
low-income individuals.
``(ii) Permissible projects.--The Secretary may conduct a
project under subparagraph (A) to--
``(I) improve program administration;
``(II) increase the self-sufficiency of food stamp
recipients;
``(III) test innovative welfare reform strategies; and
``(IV) allow greater conformity with the rules of other
programs than would be allowed but for this paragraph.
``(iii) Impermissible projects.--The Secretary may not
conduct a project under subparagraph (A) that--
``(I) involves the payment of the value of an allotment in
the form of cash, unless the project was approved prior to
the date of enactment of this subparagraph;
``(II) substantially transfers funds made available under
this Act to services or benefits provided primarily through
another public assistance program; or
``(III) is not limited to a specific time period.
``(iv) Additional included projects.--Pilot or experimental
projects may include''.
SEC. 1059. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)), as amended by section 1058, is amended by adding
at the end the following:
``(D) Response to waivers.--
``(i) Response.--Not later than 60 days after the date of
receiving a request for a waiver under subparagraph (A), the
Secretary shall provide a response that--
``(I) approves the waiver request;
``(II) denies the waiver request and explains any
modification needed for approval of the waiver request;
``(III) denies the waiver request and explains the grounds
for the denial; or
``(IV) requests clarification of the waiver request.
``(ii) Failure to respond.--If the Secretary does not
provide a response in accordance with clause (i), the waiver
shall be considered approved, unless the approval is
specifically prohibited by this Act.
``(iii) Notice of denial.--On denial of a waiver request
under clause (i)(III), the Secretary shall provide a copy of
the waiver request and a description of the reasons for the
denial to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.''.
SEC. 1060. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is
amended by striking subsection (d) and inserting the
following:
``(d) Employment Initiatives Program.--
``(1) Election to participate.--
``(A) In general.--Subject to the other provisions of this
subsection, a State may elect to carry out an employment
initiatives program under this subsection.
``(B) Requirement.--A State shall be eligible to carry out
an employment initiatives program under this subsection only
if not less than 50 percent of the households that
received food stamp benefits during the summer of 1993
also received benefits under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) during the summer of 1993.
``(2) Procedure.--
``(A) In general.--A State that has elected to carry out an
employment initiatives program under paragraph (1) may use
amounts equal to the food stamp allotments that would
otherwise be issued to a household under the food stamp
program, but for the operation of this subsection, to provide
cash benefits in lieu of the food stamp allotments to the
household if the household is eligible under paragraph (3).
``(B) Payment.--The Secretary shall pay to each State that
has elected to carry out an employment initiatives program
under paragraph (1) an amount equal to the value of the
allotment that each household would be eligible to receive
under this Act but for the operation of this subsection.
``(C) Other provisions.--For purposes of the food stamp
program (other than this subsection)--
``(i) cash assistance under this subsection shall be
considered to be an allotment; and
``(ii) each household receiving cash benefits under this
subsection shall not receive any other food stamp benefit for
the period for which the cash assistance is provided.
``(D) Additional payments.--Each State that has elected to
carry out an employment
[[Page H7829]]
initiatives program under paragraph (1) shall--
``(i) increase the cash benefits provided to each household
under this subsection to compensate for any State or local
sales tax that may be collected on purchases of food by any
household receiving cash benefits under this subsection,
unless the Secretary determines on the basis of information
provided by the State that the increase is unnecessary on the
basis of the limited nature of the items subject to the State
or local sales tax; and
``(ii) pay the cost of any increase in cash benefits
required by clause (i).
``(3) Eligibility.--A household shall be eligible to
receive cash benefits under paragraph (2) if an adult member
of the household--
``(A) has worked in unsubsidized employment for not less
than the preceding 90 days;
``(B) has earned not less than $350 per month from the
employment referred to in subparagraph (A) for not less than
the preceding 90 days;
``(C)(i) is receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.); or
``(ii) was receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) at the time the member first received
cash benefits under this subsection and is no longer eligible
for the State program because of earned income;
``(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
``(E) elects to receive cash benefits in lieu of food stamp
benefits under this subsection.
``(4) Evaluation.--A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under
this subsection. The State agency, with the concurrence of
the Secretary, shall determine the content of the
evaluation.''.
SEC. 1061. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food Stamp
Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking
``1991 through 1997'' and inserting ``1996 through 2002''.
SEC. 1062. SIMPLIFIED FOOD STAMP PROGRAM.
(a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
``SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
``(a) Definition of Federal Costs.--In this section, the
term `Federal costs' does not include any Federal costs
incurred under section 17.
``(b) Election.--Subject to subsection (d), a State may
elect to carry out a Simplified Food Stamp Program (referred
to in this section as a `Program'), statewide or in a
political subdivision of the State, in accordance with this
section.
``(c) Operation of Program.--If a State elects to carry out
a Program, within the State or a political subdivision of the
State--
``(1) a household in which all members receive assistance
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) shall
automatically be eligible to participate in the Program; and
``(2) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established by
the State under--
``(A) a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.);
``(B) the food stamp program (other than section 27); or
``(C) a combination of a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) and the food stamp program (other than section 27).
``(d) Approval of Program.--
``(1) State plan.--A State agency may not operate a Program
unless the Secretary approves a State plan for the operation
of the Program under paragraph (2).
``(2) Approval of plan.--The Secretary shall approve any
State plan to carry out a Program if the Secretary determines
that the plan--
``(A) complies with this section; and
``(B) contains sufficient documentation that the plan will
not increase Federal costs for any fiscal year.
``(e) Increased Federal Costs.--
``(1) Determination.--During each fiscal year and not later
than 90 days after the end of each fiscal year, the Secretary
shall determine whether a Program being carried out by a
State agency is increasing Federal costs under this Act above
the Federal costs incurred under the food stamp program in
operation in the State or political subdivision of the State
for the fiscal year prior to the implementation of the
Program, adjusted for any changes in--
``(A) participation;
``(B) the income of participants in the food stamp program
that is not attributable to public assistance; and
``(C) the thrifty food plan under section 3(o).
``(2) Notification.--If the Secretary determines that the
Program has increased Federal costs under this Act for any
fiscal year or any portion of any fiscal year, the Secretary
shall notify the State not later than 30 days after the
Secretary makes the determination under paragraph (1).
``(3) Enforcement.--
``(A) Corrective action.--Not later than 90 days after the
date of a notification under paragraph (2), the State shall
submit a plan for approval by the Secretary for prompt
corrective action that is designed to prevent the Program
from increasing Federal costs under this Act.
``(B) Termination.--If the State does not submit a plan
under subparagraph (A) or carry out a plan approved by the
Secretary, the Secretary shall terminate the approval of the
State agency operating the Program and the State agency shall
be ineligible to operate a future Program.
``(f) Rules and Procedures.--
``(1) In general.--In operating a Program, a State or
political subdivision of a State may follow the rules and
procedures established by the State or political subdivision
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) or under the food
stamp program.
``(2) Standardized deductions.--In operating a Program, a
State or political subdivision of a State may standardize the
deductions provided under section 5(e). In developing the
standardized deduction, the State shall consider the work
expenses, dependent care costs, and shelter costs of
participating households.
``(3) Requirements.--In operating a Program, a State or
political subdivision shall comply with the requirements of--
``(A) subsections (a) through (g) of section 7;
``(B) section 8(a) (except that the income of a household
may be determined under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.));
``(C) subsection (b) and (d) of section 8;
``(D) subsections (a), (c), (d), and (n) of section 11;
``(E) paragraphs (8), (12), (16), (18), (20), (24), and
(25) of section 11(e);
``(F) section 11(e)(10) (or a comparable requirement
established by the State under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.)); and
``(G) section 16.
``(4) Limitation on eligibility.--Notwithstanding any other
provision of this section, a household may not receive
benefits under this section as a result of the eligibility of
the household under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.),
unless the Secretary determines that any household with
income above 130 percent of the poverty guidelines is not
eligible for the program.''.
(b) State Plan Provisions.--Section 11(e) of the Act (7
U.S.C. 2020(e)), as amended by sections 1020(b), 1028(b), and
1044, is amended by adding at the end the following:
``(25) if a State elects to carry out a Simplified Food
Stamp Program under section 26, the plans of the State agency
for operating the program, including--
``(A) the rules and procedures to be followed by the State
agency to determine food stamp benefits;
``(B) how the State agency will address the needs of
households that experience high shelter costs in relation to
the incomes of the households; and
``(C) a description of the method by which the State agency
will carry out a quality control system under section
16(c).''.
(c) Conforming Amendments.--
(1) Section 8 of the Act (7 U.S.C. 2017), as amended by
section 1039, is amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Act (7 U.S.C. 2026) is amended--
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (l) as
subsections (i) through (k), respectively.
SEC. 1063. STATE FOOD ASSISTANCE BLOCK GRANT.
(a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.), as amended by section 1062, is amended by adding at
the end the following:
``SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.
``(a) Definitions.--In this section:
``(1) Food assistance.--The term `food assistance' means
assistance that may be used only to obtain food, as defined
in section 3(g).
``(2) State.--The term `State' means each of the 50 States,
the District of Columbia, Guam, and the Virgin Islands of the
United States.
``(b) Establishment.--The Secretary shall establish a
program to make grants to States in accordance with this
section to provide--
``(1) food assistance to needy individuals and families
residing in the State; and
``(2) funds for administrative costs incurred in providing
the assistance.
``(c) Election.--
``(1) In general.--A State may annually elect to
participate in the program established under subsection (b)
if the State--
``(A) has fully implemented an electronic benefit transfer
system that operates in the entire State;
``(B) has a payment error rate under section 16(c) that is
not more than 6 percent as announced most recently by the
Secretary; or
``(C) has a payment error rate in excess of 6 percent and
agrees to contribute non-Federal funds for the fiscal year of
the grant, for
[[Page H7830]]
benefits and administration of the State's food assistance
program, the amount determined under paragraph (2).
``(2) State mandatory contributions.--
``(A) In general.--In the case of a State that elects to
participate in the program under paragraph (1)(C), the State
shall agree to contribute, for a fiscal year, an amount equal
to--
``(i) the benefits issued in the State; multiplied by
``(ii) the payment error rate of the State; minus
``(B)(i) the benefits issued in the State; multiplied by
``(ii) 6 percent.
``(B) Determination.--Notwithstanding sections 13 and 14,
the calculation of the contribution shall be based solely on
the determination of the Secretary of the payment error rate.
``(C) Data.--For purposes of implementing subparagraph (A)
for a fiscal year, the Secretary shall use the data for the
most recent fiscal year available.
``(3) Election limitation.--
``(A) Re-entering food stamp program.--A State that elects
to participate in the program under paragraph (1) may in a
subsequent year decline to elect to participate in the
program and instead participate in the food stamp program in
accordance with the other sections of this Act.
``(B) Limitation.--Subsequent to re-entering the food stamp
program under subparagraph (A), the State shall only be
eligible to participate in the food stamp program in
accordance with the other sections of this Act and shall not
be eligible to elect to participate in the program
established under subsection (b).
``(4) Program exclusive.--
``(A) In general.--A State that is participating in the
program established under subsection (b) shall not be subject
to, or receive any benefit under, this Act except as provided
in this section.
``(B) Contract with federal government.--Nothing in this
section shall prohibit a State from contracting with the
Federal Government for the provision of services or materials
necessary to carry out a program under this section.
``(d) Lead Agency.--A State desiring to receive a grant
under this section shall designate, in an application
submitted to the Secretary under subsection (e)(1), an
appropriate State agency responsible for the
administration of the program under this section as the
lead agency.
``(e) Application and Plan.--
``(1) Application.--To be eligible to receive assistance
under this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary shall by
regulation require, including--
``(A) an assurance that the State will comply with the
requirements of this section;
``(B) a State plan that meets the requirements of paragraph
(3); and
``(C) an assurance that the State will comply with the
requirements of the State plan under paragraph (3).
``(2) Annual plan.--The State plan contained in the
application under paragraph (1) shall be submitted for
approval annually.
``(3) Requirements of plan.--
``(A) Lead agency.--The State plan shall identify the lead
agency.
``(B) Use of block grant funds.--The State plan shall
provide that the State shall use the amounts provided to the
State for each fiscal year under this section--
``(i) to provide food assistance to needy individuals and
families residing in the State, other than residents of
institutions who are ineligible for food stamps under section
3(i); and
``(ii) to pay administrative costs incurred in providing
the assistance.
``(C) Groups served.--The State plan shall describe how and
to what extent the program will serve specific groups of
individuals and families and how the treatment will differ
from treatment under the food stamp program under the other
sections of this Act of the individuals and families,
including--
``(i) elderly individuals and families;
``(ii) migrants or seasonal farmworkers;
``(iii) homeless individuals and families;
``(iv) individuals and families who live in institutions
eligible under section 3(i);
``(v) individuals and families with earnings; and
``(vi) members of Indian tribes or tribal organizations.
``(D) Assistance for entire state.--The State plan shall
provide that benefits under this section shall be available
throughout the entire State.
``(E) Notice and hearings.--The State plan shall provide
that an individual or family who applies for, or receives,
assistance under this section shall be provided with notice
of, and an opportunity for a hearing on, any action under
this section that adversely affects the individual or family.
``(F) Assessment of Needs.--The State plan shall assess the
food and nutrition needs of needy persons residing in the
State.
``(G) Eligibility standards.--The State plan shall describe
the income, resource, and other eligibility standards that
are established for the receipt of assistance under this
section.
``(H) Disqualification of fleeing felons.--The State plan
shall provide for the disqualification of any individual who
would be disqualified from participating in the food stamp
program under section 6(k).
``(I) Receiving benefits in more than 1 jurisdiction.--The
State plan shall establish a system for the exchange of
information with other States to verify the identity and
receipt of benefits by recipients.
``(J) Privacy.--The State plan shall provide for
safeguarding and restricting the use and disclosure
of information about any individual or family receiving
assistance under this section.
``(K) Other information.--The State plan shall contain such
other information as may be required by the Secretary.
``(4) Approval of application and plan.--The Secretary
shall approve an application and State plan that satisfies
the requirements of this section.
``(f) No Individual or Family Entitlement to Assistance.--
Nothing in this section--
``(1) entitles any individual or family to assistance under
this section; or
``(2) limits the right of a State to impose additional
limitations or conditions on assistance under this section.
``(g) Benefits for Aliens.--
``(1) Eligibility.--No individual who is an alien shall be
eligible to receive benefits under a State plan approved
under subsection (e)(4) if the individual is not eligible to
participate in the food stamp program due to the alien status
of the individual.
``(2) Income.--The State plan shall provide that the income
of an alien shall be determined in accordance with section
5(i).
``(h) Employment and Training.--
``(1) Work requirements.--No individual or household shall
be eligible to receive benefits under a State plan funded
under this section if the individual or household is not
eligible to participate in the food stamp program under
subsection (d) or (o) of section 6.
``(2) Work programs.--Each State shall implement an
employment and training program in accordance with the terms
and conditions of section 6(d)(4) for individuals under the
program and shall be eligible to receive funding under
section 16(h).
``(i) Enforcement.--
``(1) Review of compliance with state plan.--The Secretary
shall review and monitor State compliance with this section
and the State plan approved under subsection (e)(4).
``(2) Noncompliance.--
``(A) In general.--If the Secretary, after reasonable
notice to a State and opportunity for a hearing, finds that--
``(i) there has been a failure by the State to comply
substantially with any provision or requirement set forth in
the State plan approved under subsection (e)(4); or
``(ii) in the operation of any program or activity for
which assistance is provided under this section, there is a
failure by the State to comply substantially with any
provision of this section;
the Secretary shall notify the State of the finding and that
no further grants will be made to the State under this
section (or, in the case of noncompliance in the operation of
a program or activity, that no further grants to the State
will be made with respect to the program or activity) until
the Secretary is satisfied that there is no longer any
failure to comply or that the noncompliance will be promptly
corrected.
``(B) Other penalties.--In the case of a finding of
noncompliance made pursuant to subparagraph (A), the
Secretary may, in addition to, or in lieu of, imposing the
penalties described in subparagraph (A), impose other
appropriate penalties, including recoupment of money
improperly expended for purposes prohibited or not authorized
by this section and disqualification from the receipt of
financial assistance under this section.
``(C) Notice.--The notice required under subparagraph (A)
shall include a specific identification of any additional
penalty being imposed under subparagraph (B).
``(3) Issuance of regulations.--The Secretary shall
establish by regulation procedures for--
``(A) receiving, processing, and determining the validity
of complaints made to the Secretary concerning any failure of
a State to comply with the State plan or any requirement of
this section; and
``(B) imposing penalties under this section.
``(j) Grant.--
``(1) In general.--For each fiscal year, the Secretary
shall pay to a State that has an application approved by the
Secretary under subsection (e)(4) an amount that is equal to
the grant of the State under subsection (m) for the fiscal
year.
``(2) Method of grant.--The Secretary shall make a grant to
a State for a fiscal year under this section by issuing 1 or
more letters of credit for the fiscal year, with necessary
adjustments on account of overpayments or underpayments, as
determined by the Secretary.
``(3) Spending of grants by state.--
``(A) In general.--Except as provided in subparagraph (B),
a grant to a State determined under subsection (m)(1) for a
fiscal year may be expended by the State only in the fiscal
year.
``(B) Carryover.--The State may reserve up to 10 percent of
a grant determined under subsection (m)(1) for a fiscal year
to provide assistance under this section in subsequent fiscal
years, except that the reserved funds may not exceed 30
percent of the total grant received under this section for a
fiscal year.
``(4) Food assistance and administrative expenditures.--In
each fiscal year, not more than 6 percent of the Federal and
State funds required to be expended by a State under
[[Page H7831]]
this section shall be used for administrative expenses.
``(5) Provision of food assistance.--A State may provide
food assistance under this section in any manner determined
appropriate by the State, such as electronic benefit transfer
limited to food purchases, coupons limited to food purchases,
or direct provision of commodities.
``(k) Quality Control.--Each State participating in the
program established under this section shall maintain a
system in accordance with, and shall be subject to section
16(c), including sanctions and eligibility for incentive
payment under section 16(c), adjusted for State specific
characteristics under regulations issued by the Secretary.
``(l) Nondiscrimination.--
``(1) In general.--The Secretary shall not provide
financial assistance for any program, project, or activity
under this section if any person with responsibilities for
the operation of the program, project, or activity
discriminates with respect to the program, project, or
activity because of race, religion, color, national origin,
sex, or disability.
``(2) Enforcement.--The powers, remedies, and procedures
set forth in title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.) may be used by the Secretary to enforce
paragraph (1).
``(m) Grant Calculation.--
``(1) State grant.--
``(A) In general.--Except as provided in subparagraph (B),
from the amounts made available under section 18 for each
fiscal year, the Secretary shall provide a grant to each
State participating in the program established under this
section an amount that is equal to the sum of--
``(i) the greater of, as determined by the Secretary--
``(I) the total dollar value of all benefits issued under
the food stamp program established under this Act by the
State during fiscal year 1994; or
``(II) the average per fiscal year of the total dollar
value of all benefits issued under the food stamp program by
the State during each of fiscal years 1992 through 1994; and
``(ii) the greater of, as determined by the Secretary--
``(I) the total amount received by the State for
administrative costs under section 16(a) (not including any
adjustment under section 16(c)) for fiscal year 1994; or
``(II) the average per fiscal year of the total amount
received by the State for administrative costs under section
16(a) (not including any adjustment under section 16(c)) for
each of fiscal years 1992 through 1994.
``(B) Insufficient funds.--If the Secretary finds that the
total amount of grants to which States would otherwise be
entitled for a fiscal year under subparagraph (A) will exceed
the amount of funds that will be made available to provide
the grants for the fiscal year, the Secretary shall reduce
the grants made to States under this subsection, on a pro
rata basis, to the extent necessary.
``(2) Reduction.--The Secretary shall reduce the grant of a
State by the amount a State has agreed to contribute under
subsection (c)(1)(C).''.
(b) Employment and Training Funding.--Section 16(h) of the
Act (7 U.S.C. 2025(a)), as amended by section 1027(d)(2), is
amended by adding at the end the following:
``(6) Block grant states.--Each State electing to operate a
program under section 27 shall--
``(A) receive the greater of--
``(i) the total dollar value of the funds received under
paragraph (1) by the State during fiscal year 1994; or
``(ii) the average per fiscal year of the total dollar
value of all funds received under paragraph (1) by the State
during each of fiscal years 1992 through 1994; and
``(B) be eligible to receive funds under paragraph (2),
within the limitations in section 6(d)(4)(K).''.
(c) Research on Optional State Food Assistance Block
Grant.--Section 17 of the Act (7 U.S.C. 2026), as amended by
section 1062(c)(2), is amended by adding at the end the
following:
``(l) Research on Optional State Food Assistance Block
Grant.--The Secretary may conduct research on the effects and
costs of a State program carried out under section 27.''.
SEC. 1064. A STUDY OF THE USE OF FOOD STAMPS TO PURCHASE
VITAMINS AND MINERALS.
The Secretary of Agriculture shall, in consultation with
the National Academy of Sciences and the Center for Disease
Control and Prevention, conduct a study of the use of food
stamps to purchase vitamins and minerals. The study shall
include an analysis of scientific findings on the efficacy of
and need for vitamins and minerals, including the adequacy of
vitamin and mineral intake in low income populations, as
shown by existing research and surveys, and the potential
value of nutritional supplements in filling nutrient gaps
that may exist in the population as a whole or in vulnerable
subgroups in the U.S. population; the impact of nutritional
improvements (including vitamin or mineral supplementation)
on health status and health care costs for women of
childbearing age, pregnant or lactating women, and the
elderly; the cost of vitamin and mineral supplements
commercially available; the purchasing habits of low income
populations with regard to vitamins and minerals; the impact
on the food purchases of low income households; and the
economic impact on agricultural commodities. The Secretary
shall report the results of the study to the Committee on
Agriculture of the U.S. House of Representatives not later
than December 15, 1996.''.
SEC. 1065. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C.
2021(a)) is amended by adding at the end the following:
``Regulations issued pursuant to this Act shall provide
criteria for the finding of violations and the suspension or
disqualification of a retail food store or wholesale food
concern on the basis of evidence which may include, but is
not limited to, facts established through on-site
investigations, inconsistent redemption data or evidence
obtained through transaction reports under electronic
benefit transfer systems.''.
SEC. 1066. FOOD STAMP ELIGIBILITY.
Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C.
2015(f)) is amended by striking the third sentence and
inserting the following:
``The State agency shall, at its option, consider either all
income and financial resources of the individual rendered
ineligible to participate in the food stamp program under
this subsection, or such income, less a pro rata share, and
the financial resources of the ineligible individual, to
determine the eligibility and the value of the allotment of
the household of which such individual is a member.''.
SEC. 1067. REPORT BY THE SECRETARY.
The Secretary of Agriculture may report to the Committee on
Agriculture of the House of Representatives, not later than
January 1, 2000, on the effect of the food stamp reforms in
the Welfare and Medicaid Reform Act of 1996 and the ability
of State and local governments to deal with people in
poverty. The report must answer the question: ``Did people
become more personally responsible and were work
opportunities provided such that poverty in America is better
managed?''.
SEC. 1068. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of the
House of Representatives that reductions in outlays resulting
from this title shall not be taken into account for purposes
of section 552 of the Balanced Budget and Emergency Deficit
Control Act of 1985.
Subtitle B--Commodity Distribution Programs
SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) Definitions.--Section 201A of the Emergency Food
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note)
is amended to read as follows:
``SEC. 201A. DEFINITIONS.
``In this Act:
``(1) Additional commodities.--The term `additional
commodities' means commodities made available under section
214 in addition to the commodities made available under
sections 202 and 203D.
``(2) Average monthly number of unemployed persons.--The
term `average monthly number of unemployed persons' means the
average monthly number of unemployed persons in each State in
the most recent fiscal year for which information concerning
the number of unemployed persons is available, as determined
by the Bureau of Labor Statistics of the Department of Labor.
``(3) Eligible recipient agency.--The term `eligible
recipient agency' means a public or nonprofit organization--
``(A) that administers--
``(i) an emergency feeding organization;
``(ii) a charitable institution (including a hospital and a
retirement home, but excluding a penal institution) to the
extent that the institution serves needy persons;
``(iii) a summer camp for children, or a child nutrition
program providing food service;
``(iv) a nutrition project operating under the Older
Americans Act of 1965 (42 U.S.C. 3001 et seq.), including a
project that operates a congregate nutrition site and a
project that provides home-delivered meals; or
``(v) a disaster relief program;
``(B) that has been designated by the appropriate State
agency, or by the Secretary; and
``(C) that has been approved by the Secretary for
participation in the program established under this Act.
``(4) Emergency feeding organization.--The term `emergency
feeding organization' means a public or nonprofit
organization that administers activities and projects
(including the activities and projects of a charitable
institution, a food bank, a food pantry, a hunger relief
center, a soup kitchen, or a similar public or private
nonprofit eligible recipient agency) providing nutrition
assistance to relieve situations of emergency and distress
through the provision of food to needy persons, including
low-income and unemployed persons.
``(5) Food bank.--The term `food bank' means a public or
charitable institution that maintains an established
operation involving the provision of food or edible
commodities, or the products of food or edible commodities,
to food pantries, soup kitchens, hunger relief centers, or
other food or feeding centers that, as an integral part of
their normal activities, provide meals or food to feed needy
persons on a regular basis.
``(6) Food pantry.--The term `food pantry' means a public
or private nonprofit organization that distributes food to
low-income and unemployed households, including food from
sources other than the Department of Agriculture, to relieve
situations of emergency and distress.
[[Page H7832]]
``(7) Poverty line.--The term `poverty line' has the same
meaning given the term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)).
``(8) Soup kitchen.--The term `soup kitchen' means a public
or charitable institution that, as an integral part of the
normal activities of the institution, maintains an
established feeding operation to provide food to needy
homeless persons on a regular basis.
``(9) Total value of additional commodities.--The term
`total value of additional commodities' means the actual cost
of all additional commodities made available under section
214 that are paid by the Secretary (including the
distribution and processing costs incurred by the Secretary).
``(10) Value of additional commodities allocated to each
state.--The term `value of additional commodities allocated
to each State' means the actual cost of additional
commodities made available under section 214 and allocated to
each State that are paid by the Secretary (including the
distribution and processing costs incurred by the
Secretary).''.
(b) State Plan.--Section 202A of the Act (7 U.S.C. 612c
note) is amended to read as follows:
``SEC. 202A. STATE PLAN.
``(a) In General.--To receive commodities under this Act, a
State shall submit a plan of operation and administration
every 4 years to the Secretary for approval. The plan may be
amended at any time, with the approval of the Secretary.
``(b) Requirements.--Each plan shall--
``(1) designate the State agency responsible for
distributing the commodities received under this Act;
``(2) set forth a plan of operation and administration to
expeditiously distribute commodities under this Act;
``(3) set forth the standards of eligibility for recipient
agencies; and
``(4) set forth the standards of eligibility for individual
or household recipients of commodities, which shall require--
``(A) individuals or households to be comprised of needy
persons; and
``(B) individual or household members to be residing in the
geographic location served by the distributing agency at the
time of applying for assistance.
``(c) State Advisory Board.--The Secretary shall encourage
each State receiving commodities under this Act to establish
a State advisory board consisting of representatives of all
interested entities, both public and private, in the
distribution of commodities received under this Act in the
State.''.
(c) Authorization of Appropriations for Administrative
Funds.--Section 204(a)(1) of the Act (7 U.S.C. 612c note) is
amended--
(1) in the first sentence by striking ``for State and
local'' and all that follows through ``under this title'' and
inserting ``to pay for the direct and indirect administrative
costs of the State related to the processing, transporting,
and distributing to eligible recipient agencies
of commodities provided by the Secretary under this Act
and commodities secured from other sources''; and
(2) by striking the fourth sentence.
(d) Delivery of Commodities.--Section 214 of the Act (7
U.S.C. 612c note) is amended--
(1) by striking subsections (a) through (e) and (j);
(2) by redesignating subsections (f) through (i) as
subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph (2)--
(A) in the first sentence, by striking ``subsection (f) or
subsection (j) if applicable,'' and inserting ``subsection
(a)''; and
(B) in the second sentence, by striking ``subsection (f)''
and inserting ``subsection (a)'';
(4) by striking subsection (c), as redesignated by
paragraph (2), and inserting the following:
``(c) Administration.--
``(1) In general.--Commodities made available for each
fiscal year under this section shall be delivered at
reasonable intervals to States based on the grants calculated
under subsection (a), or reallocated under subsection (b),
before December 31 of the following fiscal year.
``(2) Entitlement.--Each State shall be entitled to receive
the value of additional commodities determined under
subsection (a).''; and
(5) in subsection (d), as redesignated by paragraph (2), by
striking ``or reduce'' and all that follows through ``each
fiscal year''.
(e) Technical Amendments.--The Act (7 U.S.C. 612c note) is
amended--
(1) in the first sentence of section 203B(a), by striking
``203 and 203A of this Act'' and inserting ``203A'';
(2) in section 204(a), by striking ``title'' each place it
appears and inserting ``Act'';
(3) in the first sentence of section 210(e), by striking
``(except as otherwise provided for in section 214(j))''; and
(4) by striking section 212.
(f) Report on EFAP.--Section 1571 of the Food Security Act
of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
(g) Availability of Commodities Under the Food Stamp
Program.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by sections 1062 and 1063, is amended by adding at
the end the following:
``SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.
``(a) Purchase of Commodities.--From amounts appropriated
under this Act, for each of fiscal years 1997 through 2002,
the Secretary shall purchase $300,000,000 of a variety of
nutritious and useful commodities of the types that the
Secretary has the authority to acquire through the Commodity
Credit Corporation or under section 32 of the Act entitled
`An Act to amend the Agricultural Adjustment Act, and for
other purposes', approved August 24, 1935 (7 U.S.C. 612c),
and distribute the commodities to States for distribution in
accordance with section 214 of the Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note).
``(b) Basis for Commodity Purchases.--In purchasing
commodities under subsection (a), the Secretary shall, to the
extent practicable and appropriate, make purchases based on--
``(1) agricultural market conditions;
``(2) preferences and needs of States and distributing
agencies; and
``(3) preferences of recipients.''.
(h) Effective Date.--The amendments made by subsection (d)
shall become effective on October 1, 1996.
SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food Bank Act of
1987 (Public Law 100-232; 7 U.S.C. 612c note) is repealed.
SEC. 1073. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law 100-435; 7
U.S.C. 612c note) is amended--
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROCESSING.
Section 1773 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is
amended by striking subsection (f).
Subtitle C--Electronic Benefit Transfer Systems
SEC. 1091. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT
TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15 U.S.C.
1693b) is amended--
(1) by striking ``(d) In the event'' and inserting ``(d)
Applicability to Service Providers Other Than Certain
Financial Institutions.--
``(1) In general.--In the event''; and
(2) by adding at the end the following new paragraph:
``(2) State and local government electronic benefit
transfer programs.--
``(A) Exemption generally.--The disclosures, protections,
responsibilities, and remedies established under this title,
and any regulation prescribed or order issued by the Board in
accordance with this title, shall not apply to any electronic
benefit transfer program established under State or local law
or administered by a State or local government.
``(B) Exception for direct deposit into recipient's
account.--Subparagraph (A) shall not apply with respect to
any electronic funds transfer under an electronic benefit
transfer program for deposits directly into a consumer
account held by the recipient of the benefit.
``(C) Rule of construction.--No provision of this paragraph
may be construed as--
``(i) affecting or altering the protections otherwise
applicable with respect to benefits established by Federal,
State, or local law; or
``(ii) otherwise superseding the application of any State
or local law.
``(D) Electronic benefit transfer program defined.--For
purposes of this paragraph, the term `electronic benefit
transfer program'--
``(i) means a program under which a government agency
distributes needs-tested benefits by establishing accounts to
be accessed by recipients electronically, such as through
automated teller machines, or point-of-sale terminals; and
``(ii) does not include employment-related payments,
including salaries and pension, retirement, or unemployment
benefits established by Federal, State, or local
governments.''.
TITLE II--COMMITTEE ON COMMERCE
SEC. 2000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 2000. Table of contents.
Subtitle A--Involvement of Commerce Committee in Federal Government
Position Reductions
Sec. 2001. Involvement of Commerce Committee in Federal government
position reductions.
Subtitle B--Restricting Public Benefits for Aliens
Chapter 1--Eligibility for Federal Benefits
Sec. 2101. Aliens who are not qualified aliens ineligible for Federal
public benefits.
Sec. 2102. Five-year limited eligibility of qualified aliens for
Federal means-tested public benefit.
Sec. 2103. Notification.
Chapter 2--General Provisions
Sec. 2111. Definitions.
Sec. 2112. Verification of eligibility for Federal public benefits.
Subtitle C--Energy Assistance
Sec. 2201. Energy assistance.
Subtitle D--Abstinence Education
Sec. 2301. Abstinence education.
[[Page H7833]]
Subtitle A--Involvement of Commerce Committee in Federal Government
Position Reductions
SEC. 2001. INVOLVEMENT OF COMMERCE COMMITTEE IN FEDERAL
GOVERNMENT POSITION REDUCTIONS.
In any provision of law that provides for consultation with
(or a report to) a relevant committee of Congress respecting
reductions in Federal Government positions, a reference to
the Committee on Commerce of the House of Representatives
shall be deemed to have been made in relation to matters
within the jurisdiction of such Committee.
Subtitle B--Restricting Public Benefits for Aliens
CHAPTER 1--ELIGIBILITY FOR FEDERAL BENEFITS
SEC. 2101. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR
FEDERAL PUBLIC BENEFITS.
(a) In General.--Notwithstanding any other provision of law
and except as provided in subsection (b), an alien who is not
a qualified alien (as defined in section 2111) is not
eligible for any Federal public benefit (as defined in
subsection (c)).
(b) Exceptions.--Subsection (a) shall not apply with
respect to the following Federal public benefits:
(1) Emergency medical services under title XIX of the
Social Security Act.
(2)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of a
serious communicable disease if the Secretary of Health and
Human Services determines that it is necessary to prevent the
spread of such disease.
(c) Federal Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this part, the term ``Federal public benefit'' means--
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of the United States
or by appropriated funds of the United States; and
(B) any retirement, welfare, health, disability, or any
other similar benefit for which payments or assistance are
provided to an individual, household, or family eligibility
unit by an agency of the United States or by appropriated
funds of the United States,
but only if such grant, contract, loan, or license under
subparagraph (A) or program providing benefits under
subparagraph (B) is under the jurisdiction of the Committee
on Commerce of the House of Representatives.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related to
such employment in the United States; or
(B) with respect to benefits for an alien who as a work
authorized nonimmigrant or as an alien lawfully admitted for
permanent residence under the Immigration and Nationality Act
qualified for such benefits and for whom the United States
under reciprocal treaty agreements is required to pay
benefits, as determined by the Attorney General, after
consultation with the Secretary of State.
SEC. 2102. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS
FOR FEDERAL MEANS-TESTED PUBLIC BENEFIT.
(a) In General.--Notwithstanding any other provision of law
and except as provided in subsection (b), an alien who is a
qualified alien (as defined in section 2111) and who enters
the United States on or after the date of the enactment of
this Act is not eligible for any Federal means-tested public
benefit (as defined in subsection (c)) for a period of five
years beginning on the date of the alien's entry into the
United States with a status within the meaning of the term
``qualified alien''.
(b) Exceptions.--The limitation under subsection (a) shall
not apply to the following aliens:
(1) Exception for refugees and asylees.--
(A) An alien who is admitted to the United States as a
refugee under section 207 of the Immigration and Nationality
Act.
(B) An alien who is granted asylum under section 208 of
such Act.
(C) An alien whose deportation is being withheld under
section 243(h) of such Act.
(2) Veteran and active duty exception.--An alien who is
lawfully residing in any State and is--
(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training) in
the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(c) Federal Means-Tested Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this part, the term ``Federal means-tested public benefit''
means a Federal public benefit described in section 2101(c)
in which the eligibility of an individual, household, or
family eligibility unit for benefits, or the amount of such
benefits, or both are determined on the basis of income,
resources, or financial need of the individual, household, or
unit.
(2) Such term does not include the following:
(A) Emergency medical services under title XIX of the
Social Security Act.
(B)(i) Public health assistance for immunizations.
(ii) Public health assistance for testing and treatment of
a serious communicable disease if the Secretary of Health and
Human Services determines that it is necessary to prevent the
spread of such disease.
SEC. 2103. NOTIFICATION.
Each Federal agency that administers a program to which
section 2101 or 2102 applies shall, directly or through the
States, post information and provide general notification to
the public and to program recipients of the changes regarding
eligibility for any such program pursuant to this subpart.
CHAPTER 2--GENERAL PROVISIONS
SEC. 2111. DEFINITIONS.
(a) In General.--Except as otherwise provided in this part,
the terms used in this part have the same meaning given such
terms in section 101(a) of the Immigration and Nationality
Act.
(b) Qualified Alien.--For purposes of this part, the term
``qualified alien'' means an alien who, at the time the alien
applies for, receives, or attempts to receive a Federal
public benefit, is--
(1) an alien who is lawfully admitted for permanent
residence under the Immigration and Nationality Act,
(2) an alien who is granted asylum under section 208 of
such Act,
(3) a refugee who is admitted to the United States under
section 207 of such Act,
(4) an alien who is paroled into the United States under
section 212(d)(5) of such Act for a period of at least 1
year,
(5) an alien whose deportation is being withheld under
section 243(h) of such Act, or
(6) an alien who is granted conditional entry pursuant to
section 203(a)(7) of such Act as in effect prior to April 1,
1980.
SEC. 2112. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC
BENEFITS.
(a) In General.--Not later than 18 months after the date of
the enactment of this Act, the Attorney General of the United
States, after consultation with the Secretary of Health and
Human Services, shall promulgate regulations requiring
verification that a person applying for a Federal public
benefit (as defined in section 2101(c)), to which the
limitation under section 2101 applies, is a qualified alien
and is eligible to receive such benefit. Such regulations
shall, to the extent feasible, require that information
requested and exchanged be similar in form and manner to
information requested and exchanged under section 1137 of the
Social Security Act.
(b) State Compliance.--Not later than 24 months after the
date the regulations described in subsection (a) are adopted,
a State that administers a program that provides a
Federal public benefit shall have in effect a verification
system that complies with the regulations.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the purpose of this section.
Subtitle C--Energy Assistance
SEC. 2201. ENERGY ASSISTANCE.
Section 2605(f) of the Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8624(f)) is amended--
(1) by striking ``(f)(1) Notwithstanding'' and inserting
``(f) Notwithstanding''; and
(2) by striking paragraph (2).
Subtitle D--Abstinence Education
SEC. 2301. ABSTINENCE EDUCATION.
(a) Increases in Funding.--Section 501(a) of the Social
Security Act (42 U.S.C. 701(a)) is amended in the matter
preceding paragraph (1) by striking ``Fiscal year 1990 and
each fiscal year thereafter'' and inserting ``Fiscal years
1990 through 1995 and $761,000,000 for fiscal year 1996 and
each fiscal year thereafter''.
(b) Abstinence Education.--Section 501(a)(1) of such Act
(42 U.S.C. 701(a)(1)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by adding ``and'' at the end; and
(3) by adding at the end the following new subparagraph:
``(E) to provide abstinence education, and at the option of
the State, where appropriate, mentoring, counseling, and
adult supervision to promote abstinence from sexual activity,
with a focus on those groups which are most likely to bear
children out-of-wedlock.''.
(c) Abstinence Education Defined.--Section 501(b) of such
Act (42 U.S.C. 701(b)) is amended by adding at the end the
following new paragraph:
``(5) Abstinence education.--For purposes of this
subsection, the term `abstinence education' means an
educational or motivational program which--
``(A) has as its exclusive purpose, teaching the social,
psychological, and health gains to be realized by abstaining
from sexual activity;
``(B) teaches abstinence from sexual activity outside
marriage as the expected standard for all school age
children;
``(C) teaches that abstinence from sexual activity is the
only certain way to avoid out-of-wedlock pregnancy, sexually
transmitted diseases, and other associated health problems;
``(D) teaches that a mutually faithful monogamous
relationship in context of marriage is the expected standard
of human sexual activity;
[[Page H7834]]
``(E) teaches that sexual activity outside of the context
of marriage is likely to have harmful psychological and
physical effects;
``(F) teaches that bearing children out-of-wedlock is
likely to have harmful consequences for the child, the
child's parents, and society;
``(G) teaches young people how to reject sexual advances
and how alcohol and drug use increases vulnerability to
sexual advances; and
``(H) teaches the importance of attaining self-sufficiency
before engaging in sexual activity.''.
(d) Set-Aside.--
(1) In general.--Section 502(c) of such Act (42 U.S.C.
702(c)) is amended in the matter preceding paragraph (1) by
striking ``From'' and inserting ``Except as provided in
subsection (e), from''.
(2) Set-aside.--Section 502 of such Act (42 U.S.C. 702) is
amended by adding at the end the following new subsection:
``(e) Of the amounts appropriated under section 501(a) for
any fiscal year, the Secretary shall set aside $75,000,000
for abstinence education in accordance with section
501(a)(1)(E).''.
TITLE III--COMMITTEE ON ECONOMIC AND EDUCATIONAL OPPORTUNITIES
SEC. 3001. SHORT TITLE.
This title may be cited as the ``Personal Responsibility
and Work Opportunity Act of 1996''.
SEC. 3002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 3001. Short title.
Sec. 3002. Table of contents.
Subtitle A--Child Care
Sec. 3101. Short title and references.
Sec. 3102. Goals.
Sec. 3103. Authorization of appropriations and entitlement authority.
Sec. 3104. Lead agency.
Sec. 3105. Application and plan.
Sec. 3106. Limitation on State allotments.
Sec. 3107. Activities to improve the quality of child care.
Sec. 3108. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 3109. Administration and enforcement.
Sec. 3110. Payments.
Sec. 3111. Annual report and audits.
Sec. 3112. Report by the Secretary.
Sec. 3113. Allotments.
Sec. 3114. Definitions.
Sec. 3115. Repeals.
Sec. 3116. Effective date.
Subtitle B--Child Nutrition Programs
Chapter 1--National School Lunch Act
Sec. 3201. State disbursement to schools.
Sec. 3202. Nutritional and other program requirements.
Sec. 3203. Free and reduced price policy statement.
Sec. 3204. Special assistance.
Sec. 3205. Miscellaneous provisions and definitions.
Sec. 3206. Summer food service program for children.
Sec. 3207. Commodity distribution.
Sec. 3208. Child care food program.
Sec. 3209. Pilot projects.
Sec. 3210. Reduction of paperwork.
Sec. 3211. Information on income eligibility.
Sec. 3212. Nutrition guidance for child nutrition programs.
Sec. 3213. Information clearinghouse.
Chapter 2--Child Nutrition Act of 1966
Sec. 3221. Special milk program.
Sec. 3222. Free and reduced price policy statement.
Sec. 3223. School breakfast program authorization.
Sec. 3224. State administrative expenses.
Sec. 3225. Regulations.
Sec. 3226. Prohibitions.
Sec. 3227. Miscellaneous provisions and definitions.
Sec. 3228. Accounts and records.
Sec. 3229. Special supplemental nutrition program for women, infants,
and children.
Sec. 3230. Cash grants for nutrition education.
Sec. 3231. Nutrition education and training.
Chapter 3--Miscellaneous Provisions
Sec. 3241. Coordination of school lunch, school breakfast, and summer
food service programs.
Subtitle C--Related Provisions
Sec. 3301. Requirement that data relating to the incidence of poverty
in the United States be published at least every 2 years.
Sec. 3302. Sense of the Congress.
Sec. 3303. Legislative accountability.
Subtitle A--Child Care
SEC. 3101. SHORT TITLE AND REFERENCES.
(a) Short Title.--This subtitle may be cited as the ``Child
Care and Development Block Grant Amendments of 1996''.
(b) References.--Except as otherwise expressly provided,
whenever in this subtitle an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
SEC. 3102. GOALS.
Section 658A (42 U.S.C. 9801 note) is amended--
(1) in the section heading by inserting ``and goals'' after
``title'';
(2) by inserting ``(a) Short Title.--'' before ``This'';
and
(3) by adding at the end the following:
``(b) Goals.--The goals of this subchapter are--
``(1) to allow each State maximum flexibility in developing
child care programs and policies that best suit the needs of
children and parents within such State;
``(2) to promote parental choice to empower working parents
to make their own decisions on the child care that best suits
their family's needs;
``(3) to encourage States to provide consumer education
information to help parents make informed choices about child
care;
``(4) to assist States to provide child care to parents
trying to achieve independence from public assistance; and
``(5) to assist States in implementing the health, safety,
licensing, and registration standards established in State
regulations.''.
SEC. 3103. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT
AUTHORITY.
(a) In General.--Section 658B (42 U.S.C. 9858) is amended
to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this
subchapter $1,000,000,000 for each of the fiscal years 1996
through 2002.''.
(b) Social Security Act.--Part A of title IV of the Social
Security Act (42 U.S.C. 601-617) is amended by adding at the
end the following new section:
``SEC. 418. FUNDING FOR CHILD CARE.
``(a) General Child Care Entitlement.--
``(1) General entitlement.--Subject to the amount
appropriated under paragraph (3), each State shall, for the
purpose of providing child care assistance, be entitled to
payments under a grant under this subsection for a fiscal
year in an amount equal to--
``(A) the sum of the total amount required to be paid to
the State under section 403 for fiscal year 1994 or 1995
(whichever is greater) with respect to amounts expended for
child care under section--
``(i) 402(g) of this Act (as such section was in effect
before October 1, 1995); and
``(ii) 402(i) of this Act (as so in effect); or
``(B) the average of the total amounts required to be paid
to the State for fiscal years 1992 through 1994 under the
sections referred to in subparagraph (A);
whichever is greater.
``(2) Remainder.--
``(A) Grants.--The Secretary shall use any amounts
appropriated for a fiscal year under paragraph (3), and
remaining after the reservation described in paragraph (4)
and after grants are awarded under paragraph (1), to make
grants to States under this paragraph.
``(B) Amount.--Subject to subparagraph (C), the amount of a
grant awarded to a State for a fiscal year under this
paragraph shall be based on the formula used for determining
the amount of Federal payments to the State under section
403(n) (as such section was in effect before October 1,
1995).
``(C) Matching requirement.--The Secretary shall pay to
each eligible State in a fiscal year an amount, under a grant
under subparagraph (A), equal to the Federal medical
assistance percentage for such State for fiscal year 1995 (as
defined in section 1905(b)) of so much of the expenditures by
the State for child care in such year as exceed the State
set-aside for such State under paragraph (1)(A) for such year
and the amount of State expenditures in fiscal year 1994 or
1995 (whichever is greater) that equal the non-Federal share
for the programs described in subparagraph (A) of paragraph
(1).
``(D) Redistribution.--
``(i) In general.--With respect to any fiscal year, if the
Secretary determines (in accordance with clause (ii)) that
amounts under any grant awarded to a State under this
paragraph for such fiscal year will not be used by such State
during such fiscal year for carrying out the purpose for
which the grant is made, the Secretary shall make such
amounts available in the subsequent fiscal year for
carrying out such purpose to 1 or more States which apply
for such funds to the extent the Secretary determines that
such States will be able to use such additional amounts
for carrying out such purpose. Such available amounts
shall be redistributed to a State pursuant to section
402(i) (as such section was in effect before October 1,
1995) by substituting `the number of children residing in
all States applying for such funds' for `the number of
children residing in the United States in the second
preceding fiscal year'.
``(ii) Time of determination and distribution.--The
determination of the Secretary under clause (i) for a fiscal
year shall be made not later than the end of the first
quarter of the subsequent fiscal year. The redistribution of
amounts under clause (i) shall be made as close as
practicable to the date on which such determination is made.
Any amount made available to a State from an appropriation
for a fiscal year in accordance with this subparagraph shall,
for purposes of this part, be regarded as part of such
State's payment (as determined under this subsection) for the
fiscal year in which the redistribution is made.
``(3) Appropriation.--For grants under this section, there
are appropriated--
``(A) $1,967,000,000 for fiscal year 1997;
``(B) $2,067,000,000 for fiscal year 1998;
``(C) $2,167,000,000 for fiscal year 1999;
``(D) $2,367,000,000 for fiscal year 2000;
``(E) $2,567,000,000 for fiscal year 2001; and
``(F) $2,717,000,000 for fiscal year 2002.
[[Page H7835]]
``(4) Indian tribes.--The Secretary shall reserve not more
than 1 percent of the aggregate amount appropriated to carry
out this section in each fiscal year for payments to Indian
tribes and tribal organizations.
``(b) Use of Funds.--
``(1) In general.--Amounts received by a State under this
section shall only be used to provide child care assistance.
Amounts received by a State under a grant under subsection
(a)(1) shall be available for use by the State without fiscal
year limitation.
``(2) Use for certain populations.--A State shall ensure
that not less than 70 percent of the total amount of funds
received by the State in a fiscal year under this section are
used to provide child care assistance to families who are
receiving assistance under a State program under this part,
families who are attempting through work activities to
transition off of such assistance program, and families who
are at risk of becoming dependent on such assistance program.
``(c) Application of Child Care and Development Block Grant
Act of 1990.--Notwithstanding any other provision of law,
amounts provided to a State under this section shall be
transferred to the lead agency under the Child Care and
Development Block Grant Act of 1990, integrated by the State
into the programs established by the State under such Act,
and be subject to requirements and limitations of such Act.
``(d) Definition.--As used in this section, the term
`State' means each of the 50 States or the District of
Columbia.''.
SEC. 3104. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``State'' the first
place that such appears and inserting ``governmental or
nongovernmental''; and
(B) in subparagraph (C), by inserting ``with sufficient
time and Statewide distribution of the notice of such
hearing,'' after ``hearing in the State''; and
(2) in paragraph (2), by striking the second sentence.
SEC. 3105. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended--
(1) in subsection (b)--
(A) by striking ``implemented--'' and all that follows
through ``(2)'' and inserting ``implemented''; and
(B) by striking ``for subsequent State plans'';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i) by striking ``, other than through
assistance provided under paragraph (3)(C),''; and
(II) by striking ``except'' and all that follows through
``1992'', and inserting ``and provide a detailed description
of the procedures the State will implement to carry out the
requirements of this subparagraph'';
(ii) in subparagraph (B)--
(I) by striking ``Provide assurances'' and inserting
``Certify''; and
(II) by inserting before the period at the end ``and
provide a detailed description of such procedures'';
(iii) in subparagraph (C)--
(I) by striking ``Provide assurances'' and inserting
``Certify''; and
(II) by inserting before the period at the end ``and
provide a detailed description of how such record is
maintained and is made available'';
(iv) by amending subparagraph (D) to read as follows:
``(D) Consumer education information.--Certify that the
State will collect and disseminate to parents of eligible
children and the general public, consumer education
information that will promote informed child care choices.'';
(v) in subparagraph (E), to read as follows:
``(E) Compliance with state licensing requirements.--
``(i) In general.--Certify that the State has in effect
licensing requirements applicable to child care services
provided within the State, and provide a detailed description
of such requirements and of how such requirements are
effectively enforced. Nothing in the preceding sentence shall
be construed to require that licensing requirements be
applied to specific types of providers of child care
services.
``(ii) Indian tribes and tribal organizations.--In lieu of
any licensing and regulatory requirements applicable under
State and local law, the Secretary, in consultation with
Indian tribes and tribal organizations, shall develop minimum
child care standards (that appropriately reflect tribal needs
and available resources) that shall be applicable to Indian
tribes and tribal organization receiving assistance under
this subchapter.'';
(vi) in subparagraph (G) by striking ``Provide assurances''
and inserting ``Certify''; and
(vii) by striking subparagraphs (H), (I), and (J) and
inserting the following:
``(H) Meeting the needs of certain populations.--
Demonstrate the manner in which the State will meet the
specific child care needs of families who are receiving
assistance under a State program under part A of title IV of
the Social Security Act, families who are attempting through
work activities to transition off of such assistance program,
and families that are at risk of becoming dependent on such
assistance program.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking ``(B) and (C)'' and
inserting ``(B) through (D)'';
(ii) in subparagraph (B)--
(I) by striking ``.--Subject to the reservation contained
in subparagraph (C), the'' and inserting ``and related
activities.--The'';
(II) in clause (i) by striking ``; and'' at the end and
inserting a period;
(III) by striking ``for--'' and all that follows through
``section 658E(c)(2)(A)'' and inserting ``for child care
services on sliding fee scale basis, activities that improve
the quality or availability of such services, and any other
activity that the State deems appropriate to realize any of
the goals specified in paragraphs (2) through (5) of section
658A(b)''; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to read as follows:
``(C) Limitation on administrative costs.--Not more than 5
percent of the aggregate amount of funds available to the
State to carry out this subchapter by a State in each fiscal
year may be expended for administrative costs incurred by
such State to carry out all of its functions and duties under
this subchapter. As used in the preceding sentence, the term
`administrative costs' shall not include the costs of
providing direct services.''; and
(iv) by adding at the end thereof the following:
``(D) Assistance for certain families.--A State shall
ensure that a substantial portion of the amounts available
(after the State has complied with the requirement of section
418(b)(2) of the Social Security Act with respect to each of
the fiscal years 1997 through 2002) to the State to carry out
activities under this subchapter in each fiscal year is used
to provide assistance to low-income working families other
than families described in paragraph (2)(H).''; and
(C) in paragraph (4)(A)--
(i) by striking ``provide assurances'' and inserting
``certify'';
(ii) in the first sentence by inserting ``and shall provide
a summary of the facts relied on by the State to determine
that such rates are sufficient to ensure such access'' before
the period; and
(iii) by striking the last sentence.
SEC. 3106. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by
striking ``No'' and inserting ``Except as provided for in
section 658O(c)(6), no''.
SEC. 3107. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read as
follows:
``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
``A State that receives funds to carry out this subchapter
for a fiscal year, shall use not less than 4 percent of the
amount of such funds for activities that are designed to
provide comprehensive consumer education to parents and the
public, activities that increase parental choice, and
activities designed to improve the quality and availability
of child care (such as resource and referral services).''.
SEC. 3108. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE-
AND AFTER-SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 3109. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended--
(1) in paragraph (1), by striking ``, and shall have'' and
all that follows through ``(2)''; and
(2) in the matter following clause (ii) of paragraph
(2)(A), by striking ``finding and that'' and all that follows
through the period and inserting ``finding and shall require
that the State reimburse the Secretary for any funds that
were improperly expended for purposes prohibited or not
authorized by this subchapter, that the Secretary deduct from
the administrative portion of the State allotment for the
following fiscal year an amount that is less than or equal to
any improperly expended funds, or a combination of such
options.''.
SEC. 3110. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended by striking
``expended'' and inserting ``obligated''.
SEC. 3111. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended--
(1) in the section heading by striking ``annual report''
and inserting ``reports'';
(2) in subsection (a), to read as follows:
``(a) Reports.--
``(1) Collection of information by states.--
``(A) In general.--A State that receives funds to carry out
this subchapter shall collect the information described in
subparagraph (B) on a monthly basis.
``(B) Required information.--The information required under
this subparagraph shall include, with respect to a family
unit receiving assistance under this subchapter information
concerning--
``(i) family income;
``(ii) county of residence;
``(iii) the gender, race, and age of children receiving
such assistance;
``(iv) whether the family includes only 1 parent;
``(v) the sources of family income, including the amount
obtained from (and separately identified)--
``(I) employment, including self-employment;
``(II) cash or other assistance under part A of title IV of
the Social Security Act;
[[Page H7836]]
``(III) housing assistance;
``(IV) assistance under the Food Stamp Act of 1977; and
``(V) other assistance programs;
``(vi) the number of months the family has received
benefits;
``(vii) the type of child care in which the child was
enrolled (such as family child care, home care, or center-
based child care);
``(viii) whether the child care provider involved was a
relative;
``(ix) the cost of child care for such families; and
``(x) the average hours per week of such care;
during the period for which such information is required to
be submitted.
``(C) Submission to secretary.--A State described in
subparagraph (A) shall, on a quarterly basis, submit the
information required to be collected under subparagraph (B)
to the Secretary.
``(D) Sampling.--The Secretary may disapprove the
information collected by a State under this paragraph if the
State uses sampling methods to collect such information.
``(2) Biannual reports.--Not later than December 31, 1997,
and every 6 months thereafter, a State described in paragraph
(1)(A) shall prepare and submit to the Secretary a report
that includes aggregate data concerning--
``(A) the number of child care providers that received
funding under this subchapter as separately identified based
on the types of providers listed in section 658P(5);
``(B) the monthly cost of child care services, and the
portion of such cost that is paid for with assistance
provided under this subchapter, listed by the type of child
care services provided;
``(C) the number of payments made by the State through
vouchers, contracts, cash, and disregards under public
benefit programs, listed by the type of child care services
provided;
``(D) the manner in which consumer education information
was provided to parents and the number of parents to whom
such information was provided; and
``(E) the total number (without duplication) of children
and families served under this subchapter;
during the period for which such report is required to be
submitted.''; and
(2) in subsection (b)--
(A) in paragraph (1) by striking ``a application'' and
inserting ``an application'';
(B) in paragraph (2) by striking ``any agency administering
activities that receive'' and inserting ``the State that
receives''; and
(C) in paragraph (4) by striking ``entitles'' and inserting
``entitled''.
SEC. 3112. REPORT BY THE SECRETARY.
Section 658L (42 U.S.C. 9858j) is amended--
(1) by striking ``1993'' and inserting ``1997'';
(2) by striking ``annually'' and inserting ``biennially'';
and
(3) by striking ``Education and Labor'' and inserting
``Economic and Educational Opportunities''.
SEC. 3113. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended--
(1) in subsection (a)--
(A) in paragraph (1)
(i) by striking ``Possessions'' and inserting
``possessions'';
(ii) by inserting ``and'' after ``States,''; and
(iii) by striking ``, and the Trust Territory of the
Pacific Islands''; and
(B) in paragraph (2), by striking ``3 percent'' and
inserting ``1 percent'';
(2) in subsection (c)--
(A) in paragraph (5) by striking ``our'' and inserting
``out''; and
(B) by adding at the end thereof the following new
paragraph:
``(6) Construction or renovation of facilities.--
``(A) Request for use of funds.--An Indian tribe or tribal
organization may submit to the Secretary a request to use
amounts provided under this subsection for construction or
renovation purposes.
``(B) Determination.--With respect to a request submitted
under subparagraph (A), and except as provided in
subparagraph (C), upon a determination by the Secretary that
adequate facilities are not otherwise available to an Indian
tribe or tribal organization to enable such tribe or
organization to carry out child care programs in accordance
with this subchapter, and that the lack of such facilities
will inhibit the operation of such programs in the future,
the Secretary may permit the tribe or organization to use
assistance provided under this subsection to make payments
for the construction or renovation of facilities that will be
used to carry out such programs.
``(C) Limitation.--The Secretary may not permit an Indian
tribe or tribal organization to use amounts provided under
this subsection for construction or renovation if such use
will result in a decrease in the level of child care services
provided by the tribe or organization as compared to the
level of such services provided by the tribe or organization
in the fiscal year preceding the year for which the
determination under subparagraph (A) is being made.
``(D) Uniform procedures.--The Secretary shall develop and
implement uniform procedures for the solicitation and
consideration of requests under this paragraph.''; and
(3) in subsection (e), by adding at the end thereof the
following new paragraph:
``(4) Indian tribes or tribal organizations.--Any portion
of a grant or contract made to an Indian tribe or tribal
organization under subsection (c) that the Secretary
determines is not being used in a manner consistent with the
provision of this subchapter in the period for which the
grant or contract is made available, shall be allotted by the
Secretary to other tribes or organizations that have
submitted applications under subsection (c) in accordance
with their respective needs.''.
SEC. 3114. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended--
(1) in paragraph (2), in the first sentence by inserting
``or as a deposit for child care services if such a deposit
is required of other children being cared for by the
provider'' after ``child care services''; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ``75 percent'' and
inserting ``85 percent'';
(4) in paragraph (5)(B)--
(A) by inserting ``great grandchild, sibling (if such
provider lives in a separate residence),'' after
``grandchild,'';
(B) by striking ``is registered and''; and
(C) by striking ``State'' and inserting ``applicable''.
(5) by striking paragraph (10);
(6) in paragraph (13)--
(A) by inserting ``or'' after ``Samoa,''; and
(B) by striking ``, and the Trust Territory of the Pacific
Islands'';
(7) in paragraph (14)--
(A) by striking ``The term'' and inserting the following:
``(A) In general.--The term''; and
(B) by adding at the end thereof the following new
subparagraph:
``(B) Other organizations.--Such term includes a Native
Hawaiian Organization, as defined in section 4009(4) of the
Augustus F. Hawkins-Robert T. Stafford Elementary and
Secondary School Improvement Amendments of 1988 (20 U.S.C.
4909(4)) and a private nonprofit organization established for
the purpose of serving youth who are Indians or Native
Hawaiians.''.
SEC. 3115. REPEALS.
(a) Child Development Associate Scholarship Assistance Act
of 1985.--Title VI of the Human Services Reauthorization Act
of 1986 (42 U.S.C. 10901-10905) is repealed.
(b) State Dependent Care Development Grants Act.--
Subchapter E of chapter 8 of subtitle A of title VI of the
Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9871-
9877) is repealed.
(c) Programs of National Significance.--Title X of the
Elementary and Secondary Education Act of 1965, as amended by
Public Law 103-382 (108 Stat. 3809 et seq.), is amended--
(1) in section 10413(a) by striking paragraph (4),
(2) in section 10963(b)(2) by striking subparagraph (G),
and
(3) in section 10974(a)(6) by striking subparagraph (G).
(d) Native Hawaiian Family-Based Education Centers.--
Section 9205 of the Native Hawaiian Education Act (Public Law
103-382; 108 Stat. 3794) is repealed.
(e) Certain Child Care Programs Under the Social Security
Act.--
(1) AFDC and transitional child care programs.--Section 402
of the Social Security Act (42 U.S.C. 602) is amended by
striking subsection (g).
(2) At-risk child care program.--
(A) Authorization.--Section 402 of the Social Security Act
(42 U.S.C. 602) is amended by striking subsection (i).
(B) Funding provisions.--Section 403 of the Social Security
Act (42 U.S.C. 603) is amended by striking subsection (n).
SEC. 3116. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this
subtitle and the amendments made by this subtitle shall take
effect on October 1, 1996.
(b) Exception.--The amendment made by section 3303(a) shall
take effect on the date of enactment of this Act.
Subtitle B--Child Nutrition Programs
CHAPTER 1--NATIONAL SCHOOL LUNCH ACT
SEC. 3201. STATE DISBURSEMENT TO SCHOOLS.
(a) In General.--Section 8 of the National School Lunch Act
(42 U.S.C. 1757) is amended--
(1) in the third sentence, by striking ``Nothing'' and all
that follows through ``educational agency to'' and inserting
``The State educational agency may'';
(2) by striking the fourth and fifth sentences;
(3) by redesignating the first through sixth sentences, as
amended by paragraph (1), as subsections (a) through (f),
respectively;
(4) in subsection (b), as redesignated by paragraph (3), by
striking ``the preceding sentence'' and inserting
``subsection (a)''; and
(5) in subsection (d), as redesignated by paragraph (3), by
striking ``Such food costs'' and inserting ``Use of funds
paid to States''.
(b) Definition of Child.--Section 12(d) of the Act (42
U.S.C. 1760(d)) is amended by adding at the end the
following:
``(9) `child' includes an individual, regardless of age,
who--
``(A) is determined by a State educational agency, in
accordance with regulations prescribed by the Secretary, to
have 1 or more mental or physical disabilities; and
``(B) is attending any institution, as defined in section
17(a), or any nonresidential public or nonprofit private
school of high school grade or under, for the purpose of
participating in a school program established for individuals
with mental or physical disabilities.
[[Page H7837]]
No institution that is not otherwise eligible to participate
in the program under section 17 shall be considered eligible
because of this paragraph.''.
SEC. 3202. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
(a) Nutritional Standards.--Section 9(a) of the National
School Lunch Act (42 U.S.C. 1758(a)) is amended--
(1) in paragraph (2)--
(A) by striking ``(2)(A) Lunches'' and inserting ``(2)
Lunches'';
(B) by striking subparagraph (B); and
(C) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively;
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(b) Eligibility Guidelines.--Section 9(b) of the Act is
amended--
(1) in paragraph (2)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(2) in paragraph (5), by striking the third sentence; and
(3) in paragraph (6), by striking ``paragraph (2)(C)'' and
inserting ``paragraph (2)(B)''.
(c) Utilization of Agricultural Commodities.--Section 9(c)
of the Act is amended by striking the second, fourth, and
sixth sentences.
(d) Conforming Amendment.--The last sentence of section
9(d)(1) of the Act is amended by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)''.
(e) Nutritional Information.--Section 9(f) of the Act is
amended--
(1) by striking paragraph (1);
(2) by striking ``(2)'';
(3) by redesignating subparagraphs (A) through (D) as
paragraphs (1) through (4), respectively;
(4) by striking paragraph (1), as redesignated by paragraph
(3), and inserting the following:
``(1) Nutritional requirements.--Except as provided in
paragraph (2), not later than the first day of the 1996-1997
school year, schools that are participating in the school
lunch or school breakfast program shall serve lunches and
breakfasts under the program that--
``(A) are consistent with the goals of the most recent
Dietary Guidelines for Americans published under section 301
of the National Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341); and
``(B) provide, on the average over each week, at least--
``(i) with respect to school lunches, \1/3\ of the daily
recommended dietary allowance established by the Food and
Nutrition Board of the National Research Council of the
National Academy of Sciences; and
``(ii) with respect to school breakfasts, \1/4\ of the
daily recommended dietary allowance established by the Food
and Nutrition Board of the National Research Council of the
National Academy of Sciences.'';
(5) in paragraph (3), as redesignated by paragraph (3)--
(A) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively; and
(B) in subparagraph (A), as so redesignated, by
redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively; and
(6) in paragraph (4), as redesignated by paragraph (3)--
(A) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A) (as redesignated by subparagraph
(A)), by redesignating subclauses (I) and (II) as clauses (i)
and (ii), respectively; and
(C) in subparagraph (A)(ii) (as redesignated by
subparagraph (B)), by striking ``subparagraph (C)'' and
inserting ``paragraph (3)''.
(f) Use of Resources.--Section 9 of the Act is amended by
striking subsection (h).
SEC. 3203. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42 U.S.C.
1758(b)(2)), as amended by section 3202(b)(1), is further
amended by adding at the end the following:
``(C) Free and reduced price policy statement.--After the
initial submission, a school shall not be required to submit
a free and reduced price policy statement to a State
educational agency under this Act unless there is a
substantive change in the free and reduced price policy of
the school. A routine change in the policy of a school, such
as an annual adjustment of the income eligibility guidelines
for free and reduced price meals, shall not be sufficient
cause for requiring the school to submit a policy
statement.''.
SEC. 3204. SPECIAL ASSISTANCE.
(a) Extension of Payment Period.--Section 11(a)(1)(D)(i) of
the National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i))
is amended by striking ``, on the date of enactment of this
subparagraph,''.
(b) Applicability of Other Provisions.--Section 11 of the
Act is amended--
(1) by striking subsection (d);
(2) in subsection (e)(2)--
(A) by striking ``The'' and inserting ``On request of the
Secretary, the''; and
(B) by striking ``each month''; and
(3) by redesignating subsections (e) and (f), as so
amended, as subsections (d) and (e), respectively.
SEC. 3205. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) Accounts and Records.--Section 12(a) of the National
School Lunch Act (42 U.S.C. 1760(a)) is amended by striking
``at all times be available'' and inserting ``be available at
any reasonable time''.
(b) Restriction on Requirements.--Section 12(c) of the Act
is amended by striking ``neither the Secretary nor the State
shall'' and inserting ``the Secretary shall not''.
(c) Definitions.--Section 12(d) of the Act, as amended by
section 3201(b), is further amended--
(1) in paragraph (1), by striking ``the Trust Territory of
the Pacific Islands'' and inserting ``the Commonwealth of the
Northern Mariana Islands'';
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and (5) through
(9) as paragraphs (6), (7), (3), (4), (2), (5), and (1),
respectively, and rearranging the paragraphs so as to appear
in numerical order.
(d) Adjustments to National Average Payment Rates.--Section
12(f) of the Act is amended by striking ``the Trust Territory
of the Pacific Islands,''.
(e) Expedited Rulemaking.--Section 12(k) of the Act is
amended--
(1) by striking paragraphs (1), (2), and (5); and
(2) by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively.
(f) Waiver.--Section 12(l) of the Act is amended--
(1) in paragraph (2)(A)--
(A) in clause (iii), by adding ``and'' at the end;
(B) in clause (iv), by striking the semicolon at the end
and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)--
(A) by striking ``(A)''; and
(B) by striking subparagraphs (B) through (D);
(3) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
``of any requirement relating'' and inserting ``that
increases Federal costs or that relates'';
(B) by striking subparagraph (D);
(C) by redesignating subparagraphs (E) through (N) as
subparagraphs (D) through (M), respectively; and
(D) in subparagraph (L), as redesignated by subparagraph
(C), by striking ``and'' at the end and inserting ``or''; and
(4) in paragraph (6)--
(A) by striking ``(A)(i)'' and all that follows through
``(B)''; and
(B) by redesignating clauses (i) through (iv) as
subparagraphs (A) through (D), respectively.
(g) Food and Nutrition Projects.--Section 12 of the Act is
amended by striking subsection (m).
SEC. 3206. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) Establishment of Program.--Section 13(a) of the
National School Lunch Act (42 U.S.C. 1761(a)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``initiate,
maintain, and expand'' and inserting ``initiate and
maintain''; and
(B) in subparagraph (E) of the second sentence, by striking
``the Trust Territory of the Pacific Islands,''; and
(2) in paragraph (7)(A), by striking ``Except as provided
in subparagraph (C), private'' and inserting ``Private''.
(b) Service Institutions.--Section 13(b) of the Act is
amended by striking ``(b)(1)'' and all that follows through
the end of paragraph (1) and inserting the following:
``(b) Service Institutions.--
``(1) Payments.--
``(A) In general.--Except as otherwise provided in this
paragraph, payments to service institutions shall equal the
full cost of food service operations (which cost shall
include the costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
``(B) Maximum amounts.--Subject to subparagraph (C),
payments to any institution under subparagraph (A) shall not
exceed--
``(i) $1.82 for each lunch and supper served;
``(ii) $1.13 for each breakfast served; and
``(iii) 46 cents for each meal supplement served.
``(C) Adjustments.--Amounts specified in subparagraph (B)
shall be adjusted on January 1, 1997, and each January 1
thereafter, to the nearest lower cent increment in accordance
with the changes for the 12-month period ending the preceding
November 30 in the series for food away from home of the
Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor. Each
adjustment shall be based on the unrounded adjustment for the
prior 12-month period.''.
(c) Administration of Service Institutions.--Section
13(b)(2) of the Act is amended--
(1) in the first sentence, by striking ``four meals'' and
inserting ``3 meals, or 2 meals and 1 supplement,''; and
(2) by striking the second sentence.
(d) Reimbursements.--Section 13(c)(2) of the Act is
amended--
(1) by striking subparagraph (A);
(2) in subparagraph (B)--
(A) in the first sentence--
(i) by striking ``, and such higher education
institutions,''; and
(ii) by striking ``without application'' and inserting
``upon showing residence in areas in which poor economic
conditions exist or on the basis of income eligibility
statements for children enrolled in the program''; and
(B) by adding at the end the following: ``The higher
education institutions referred
[[Page H7838]]
to in the preceding sentence shall be eligible to participate
in the program under this paragraph without application.'';
(3) in subparagraph (C)(ii), by striking ``severe need'';
and
(4) by redesignating subparagraphs (B) through (E), as so
amended, as subparagraphs (A) through (D), respectively.
(e) Advance Program Payments.--Section 13(e)(1) of the Act
is amended--
(1) by striking ``institution: Provided, That (A) the'' and
inserting ``institution. The'';
(2) by inserting ``(excluding a school)'' after ``any
service institution''; and
(3) by striking ``responsibilities, and (B) no'' and
inserting ``responsibilities. No''.
(f) Food Requirements.--Section 13(f) of the Act is
amended--
(1) by redesignating the first through seventh sentences as
paragraphs (1) through (7), respectively;
(2) by striking paragraph (3), as redesignated by paragraph
(1);
(3) in paragraph (4), as redesignated by paragraph (1), by
striking ``the first sentence'' and inserting ``paragraph
(1)'';
(4) in paragraph (6), as redesignated by paragraph (1), by
striking ``that bacteria levels'' and all that follows
through the period at the end and inserting ``conformance
with standards set by local health authorities.''; and
(5) by redesignating paragraphs (4) through (7), as
redesignated by paragraph (1), as paragraphs (3) through (6),
respectively.
(g) Permitting Offer Versus Serve.--Section 13(f) of the
Act, as amended by subsection (f), is further amended by
adding at the end the following:
``(7) Offer versus serve.--A school food authority
participating as a service institution may permit a child
attending a site on school premises operated directly by the
authority to refuse not more than 1 item of a meal that the
child does not intend to consume. A refusal of an offered
food item shall not affect the amount of payments made under
this section to a school for the meal.''.
(h) Food Service Management Companies.--Section 13(l) of
the Act is amended--
(1) by striking paragraph (4);
(2) in paragraph (5), by striking the first sentence; and
(3) by redesignating paragraph (5), as so amended, as
paragraph (4).
(i) Records.--The second sentence of section 13(m) of the
Act is amended by striking ``at all times be available'' and
inserting ``be available at any reasonable time''.
(j) Removing Mandatory Notice to Institutions.--Section
13(n)(2) of the Act is amended by striking ``, and its plans
and schedule for informing service institutions of the
availability of the program''.
(k) Plan.--Section 13(n) of the Act is amended--
(1) in paragraph (2), by striking ``, including the State's
methods of assessing need'';
(2) by striking paragraph (3);
(3) in paragraph (4), by striking ``and schedule''; and
(4) by redesignating paragraphs (4) through (7), as so
amended, as paragraphs (3) through (6), respectively.
(l) Monitoring and Training.--Section 13(q) of the Act is
amended--
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ``paragraphs (1) and (2)
of this subsection'' and inserting ``paragraph (1)''; and
(3) by redesignating paragraph (3), as so amended, as
paragraph (2).
(m) Expired Program.--Section 13 of the Act is amended--
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r), as so
amended, as subsections (p) and (q), respectively.
(n) Effective Date.--The amendments made by subsection (b)
shall become effective on January 1, 1997.
SEC. 3207. COMMODITY DISTRIBUTION.
(a) Cereal and Shortening in Commodity Donations.--Section
14(b) of the National School Lunch Act (42 U.S.C. 1762a(b))
is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(b) Impact Study and Purchasing Procedures.--Section 14(d)
of the Act is amended by striking the second and third
sentences.
(c) Cash Compensation for Pilot Project Schools.--Section
14(g) of the Act is amended by striking paragraph (3).
(d) State Advisory Council.--Section 14 is amended--
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g), as so
amended, as subsections (e) and (f), respectively.
SEC. 3208. CHILD CARE FOOD PROGRAM.
(a) Establishment of Program.--Section 17 of the National
School Lunch Act (42 U.S.C. 1766) is amended--
(1) in the section heading, by striking ``and adult''; and
(2) in the first sentence of subsection (a), by striking
``initiate, maintain, and expand'' and inserting ``initiate
and maintain''.
(b) Payments to Sponsor Employees.--Paragraph (2) of the
last sentence of section 17(a) of the Act (42 U.S.C. 1766(a))
is amended--
(1) by striking ``and'' at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) in the case of a family or group day care home
sponsoring organization that employs more than 1 employee,
the organization does not base payments to an employee of the
organization on the number of family or group day care homes
recruited.''.
(c) Technical Assistance.--The last sentence of section
17(d)(1) of the Act is amended by striking ``, and shall
provide technical assistance'' and all that follows through
``its application''.
(d) Reimbursement of Child Care Institutions.--Section
17(f)(2)(B) of the Act (42 U.S.C. 1766(f)(2)(B)) is amended
by striking ``two meals and two supplements or three meals
and one supplement'' and inserting ``two meals and one
supplement''.
(e) Improved Targeting of Day Care Home Reimbursements.--
(1) Restructured day care home reimbursements.--Section
17(f)(3) of the Act is amended by striking ``(3)(A)
Institutions'' and all that follows through the end of
subparagraph (A) and inserting the following:
``(3) Reimbursement of family or group day care home
sponsoring organizations.--
``(A) Reimbursement factor.--
``(i) In general.--An institution that participates in the
program under this section as a family or group day care home
sponsoring organization shall be provided, for payment to a
home sponsored by the organization, reimbursement factors in
accordance with this subparagraph for the cost of obtaining
and preparing food and prescribed labor costs involved in
providing meals under this section.
``(ii) Tier i family or group day care homes.--
``(I) Definition.--In this paragraph, the term `tier I
family or group day care home' means--
``(aa) a family or group day care home that is located in a
geographic area, as defined by the Secretary based on census
data, in which at least 50 percent of the children residing
in the area are members of households whose incomes meet the
income eligibility guidelines for free or reduced price meals
under section 9;
``(bb) a family or group day care home that is located in
an area served by a school enrolling elementary students in
which at least 50 percent of the total number of children
enrolled are certified eligible to receive free or reduced
price school meals under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.); or
``(cc) a family or group day care home that is operated by
a provider whose household meets the income eligibility
guidelines for free or reduced price meals under section 9
and whose income is verified by the sponsoring organization
of the home under regulations established by the Secretary.
``(II) Reimbursement.--Except as provided in subclause
(III), a tier I family or group day care home shall be
provided reimbursement factors under this clause without a
requirement for documentation of the costs described in
clause (i), except that reimbursement shall not be provided
under this subclause for meals or supplements served to the
children of a person acting as a family or group day care
home provider unless the children meet the income eligibility
guidelines for free or reduced price meals under section 9.
``(III) Factors.--Except as provided in subclause (IV), the
reimbursement factors applied to a home referred to in
subclause (II) shall be the factors in effect on July 1,
1996.
``(IV) Adjustments.--The reimbursement factors under this
subparagraph shall be adjusted on July 1, 1997, and each July
1 thereafter, to reflect changes in the Consumer Price Index
for food at home for the most recent 12-month period for
which the data are available. The reimbursement factors under
this subparagraph shall be rounded to the nearest lower cent
increment and based on the unrounded adjustment in effect on
June 30 of the preceding school year.
``(iii) Tier ii family or group day care homes.--
``(I) In general.--
``(aa) Factors.--Except as provided in subclause (II), with
respect to meals or supplements served under this clause by a
family or group day care home that does not meet the criteria
set forth in clause (ii)(I), the reimbursement factors shall
be 90 cents for lunches and suppers, 25 cents for breakfasts,
and 10 cents for supplements.
``(bb) Adjustments.--The factors shall be adjusted on July
1, 1997, and each July 1 thereafter, to reflect changes in
the Consumer Price Index for food at home for the most recent
12-month period for which the data are available. The
reimbursement factors under this item shall be rounded down
to the nearest lower cent increment and based on the
unrounded adjustment for the preceding 12-month period.
``(cc) Reimbursement.--A family or group day care home
shall be provided reimbursement factors under this subclause
without a requirement for documentation of the costs
described in clause (i), except that reimbursement shall not
be provided under this subclause for meals or supplements
served to the children of a person acting as a family or
group day care home provider unless the children meet the
income eligibility guidelines for free or reduced price meals
under section 9.
``(II) Other factors.--A family or group day care home that
does not meet the criteria set forth in clause (ii)(I) may
elect to be provided reimbursement factors determined in
accordance with the following requirements:
``(aa) Children eligible for free or reduced price meals.--
In the case of meals or
[[Page H7839]]
supplements served under this subsection to children who are
members of households whose incomes meet the income
eligibility guidelines for free or reduced price meals under
section 9, the family or group day care home shall be
provided reimbursement factors set by the Secretary in
accordance with clause (ii)(III).
``(bb) Ineligible children.--In the case of meals or
supplements served under this subsection to children who are
members of households whose incomes do not meet the income
eligibility guidelines, the family or group day care home
shall be provided reimbursement factors in accordance with
subclause (I).
``(III) Information and determinations.--
``(aa) In general.--If a family or group day care home
elects to claim the factors described in subclause (II), the
family or group day care home sponsoring organization serving
the home shall collect the necessary income information, as
determined by the Secretary, from any parent or other
caretaker to make the determinations specified in subclause
(II) and shall make the determinations in accordance with
rules prescribed by the Secretary.
``(bb) Categorical eligibility.--In making a determination
under item (aa), a family or group day care home sponsoring
organization may consider a child participating in or
subsidized under, or a child with a parent participating in
or subsidized under, a federally or State supported child
care or other benefit program with an income eligibility
limit that does not exceed the eligibility standard for free
or reduced price meals under section 9 to be a child who is a
member of a household whose income meets the income
eligibility guidelines under section 9.
``(cc) Factors for children only.--A family or group day
care home may elect to receive the reimbursement factors
prescribed under clause (ii)(III) solely for the children
participating in a program referred to in item (bb) if the
home elects not to have income statements collected from
parents or other caretakers.
``(IV) Simplified meal counting and reporting procedures.--
The Secretary shall prescribe simplified meal counting and
reporting procedures for use by a family or group day care
home that elects to claim the factors under subclause (II)
and by a family or group day care home sponsoring
organization that sponsors the home. The procedures the
Secretary prescribes may include 1 or more of the following:
``(aa) Setting an annual percentage for each home of the
number of meals served that are to be reimbursed in
accordance with the reimbursement factors prescribed under
clause (ii)(III) and an annual percentage of the number of
meals served that are to be reimbursed in accordance with the
reimbursement factors prescribed under subclause (I), based
on the family income of children enrolled in the home in a
specified month or other period.
``(bb) Placing a home into 1 of 2 or more reimbursement
categories annually based on the percentage of children in
the home whose households have incomes that meet the income
eligibility guidelines under section 9, with each such
reimbursement category carrying a set of reimbursement
factors such as the factors prescribed under clause (ii)(III)
or subclause (I) or factors established within the range
of factors prescribed under clause (ii)(III) and subclause
(I).
``(cc) Such other simplified procedures as the Secretary
may prescribe.
``(V) Minimum verification requirements.--The Secretary may
establish any necessary minimum verification requirements.''.
(2) Grants to states to provide assistance to family or
group day care homes.--Section 17(f)(3) of the Act is amended
by adding at the end the following:
``(D) Grants to states to provide assistance to family or
group day care homes.--
``(i) In general.--
``(I) Reservation.--From amounts made available to carry
out this section, the Secretary shall reserve $5,000,000 of
the amount made available for fiscal year 1997.
``(II) Purpose.--The Secretary shall use the funds made
available under subclause (I) to provide grants to States for
the purpose of providing--
``(aa) assistance, including grants, to family and day care
home sponsoring organizations and other appropriate
organizations, in securing and providing training, materials,
automated data processing assistance, and other assistance
for the staff of the sponsoring organizations; and
``(bb) training and other assistance to family and group
day care homes in the implementation of the amendment to
subparagraph (A) made by section 3208(e)(1) of the Personal
Responsibility and Work Opportunity Act of 1996.
``(ii) Allocation.--The Secretary shall allocate from the
funds reserved under clause (i)(I)--
``(I) $30,000 in base funding to each State; and
``(II) any remaining amount among the States, based on the
number of family day care homes participating in the program
in a State during fiscal year 1995 as a percentage of the
number of all family day care homes participating in the
program during fiscal year 1995.
``(iii) Retention of funds.--Of the amount of funds made
available to a State for fiscal year 1997 under clause (i),
the State may retain not to exceed 30 percent of the amount
to carry out this subparagraph.
``(iv) Additional payments.--Any payments received under
this subparagraph shall be in addition to payments that a
State receives under subparagraph (A).''.
(3) Provision of data.--Section 17(f)(3) of the Act, as
amended by paragraph (2), is further amended by adding at the
end the following:
``(E) Provision of data to family or group day care home
sponsoring organizations.--
``(i) Census data.--The Secretary shall provide to each
State agency administering a child care food program under
this section data from the most recent decennial census
survey or other appropriate census survey for which the data
are available showing which areas in the State meet the
requirements of subparagraph (A)(ii)(I)(aa). The State agency
shall provide the data to family or group day care home
sponsoring organizations located in the State.
``(ii) School data.--
``(I) In general.--A State agency administering the school
lunch program under this Act or the school breakfast program
under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.) shall provide to approved family or group day care
home sponsoring organizations a list of schools serving
elementary school children in the State in which not less
than \1/2\ of the children enrolled are certified to
receive free or reduced price meals. The State agency
shall collect the data necessary to create the list
annually and provide the list on a timely basis to any
approved family or group day care home sponsoring
organization that requests the list.
``(II) Use of data from preceding school year.--In
determining for a fiscal year or other annual period whether
a home qualifies as a tier I family or group day care home
under subparagraph (A)(ii)(I), the State agency administering
the program under this section, and a family or group day
care home sponsoring organization, shall use the most current
available data at the time of the determination.
``(iii) Duration of determination.--For purposes of this
section, a determination that a family or group day care home
is located in an area that qualifies the home as a tier I
family or group day care home (as the term is defined in
subparagraph (A)(ii)(I)), shall be in effect for 3 years
(unless the determination is made on the basis of census
data, in which case the determination shall remain in effect
until more recent census data are available) unless the State
agency determines that the area in which the home is located
no longer qualifies the home as a tier I family or group day
care home.''.
(4) Conforming amendments.--Section 17(c) of the Act is
amended by inserting ``except as provided in subsection
(f)(3),'' after ``For purposes of this section,'' each place
it appears in paragraphs (1), (2), and (3).
(f) Reimbursement.--Section 17(f) of the Act is amended--
(1) in paragraph (3)--
(A) in subparagraph (B), by striking the third and fourth
sentences; and
(B) in subparagraph (C)--
(i) by striking ``(i)'' and
(ii) by striking clause (ii); and
(2) in paragraph (4), by striking ``shall'' and inserting
``may'' in the first sentence.
(g) Nutritional Requirements.--Section 17(g)(1) of the Act
is amended--
(1) in subparagraph (A), by striking the second sentence;
and
(2) in subparagraph (B), by striking the second sentence.
(h) Elimination of State Paperwork and Outreach Burden.--
Section 17 of the Act is amended by striking subsection (k)
and inserting the following:
``(k) Training and Technical Assistance.--A State
participating in the program established under this section
shall provide sufficient training, technical assistance, and
monitoring to facilitate effective operation of the program.
The Secretary shall assist the State in developing plans to
fulfill the requirements of this subsection.''.
(i) Records.--The second sentence of section 17(m) of the
Act is amended by striking ``at all times'' and inserting
``at any reasonable time''.
(j) Modification of Adult Care Food Program.--Section 17(o)
of the Act is amended--
(1) in the first sentence of paragraph (1)--
(A) by striking ``adult day care centers'' and inserting
``day care centers for chronically impaired disabled
persons''; and
(B) by striking ``to persons 60 years of age or older or'';
and
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``adult day care center'' and inserting
``day care center for chronically impaired disabled
persons''; and
(ii) in clause (i)--
(I) by striking ``adult'';
(II) by striking ``adults'' and inserting ``persons''; and
(III) by striking ``or persons 60 years of age or older'';
and
(B) in subparagraph (B), by striking ``adult day care
services'' and inserting ``day care services for chronically
impaired disabled persons''.
(k) Unneeded Provision.--Section 17 of the Act is amended
by striking subsection (q).
(l) Conforming Amendments.--
(1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is
amended--
(A) in the subsection heading, by striking ``and Adult'';
and
(B) in paragraph (1), by striking ``and adult''.
[[Page H7840]]
(2) Section 18(e)(3)(B) of the Act (42 U.S.C.
1769(e)(3)(B)) is amended by striking ``and adult''.
(3) Section 25(b)(1)(C) of the Act (42 U.S.C.
1769f(b)(1)(C)) is amended by striking ``and adult''.
(4) Section 3(1) of the Healthy Meals for Healthy Americans
Act of 1994 (Public Law 103-448) is amended by striking ``and
adult''.
(m) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall become effective on the
date of enactment of this Act.
(2) Improved targeting of day care home reimbursements.--
The amendments made by paragraphs (1) and (4) of subsection
(e) shall become effective on July 1, 1997.
(3) Regulations.--
(A) Interim regulations.--Not later than January 1, 1997,
the Secretary shall issue interim regulations to implement--
(i) the amendments made by paragraphs (1), (3), and (4) of
subsection (e); and
(ii) section 17(f)(3)(C) of the National School Lunch Act
(42 U.S.C. 1766(f)(3)(C)).
(B) Final regulations.--Not later than July 1, 1997, the
Secretary shall issue final regulations to implement the
provisions of law referred to in subparagraph (A).
(n) Study of Impact of Amendments on Program Participation
and Family Day Care Licensing.--
(1) In general.--The Secretary of Agriculture, in
conjunction with the Secretary of Health and Human Services,
shall study the impact of the amendments made by this section
on--
(A) the number of family day care homes participating in
the child care food program established under section 17 of
the National School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsoring organizations
participating in the program;
(C) the number of day care homes that are licensed,
certified, registered, or approved by each State in
accordance with regulations issued by the Secretary;
(D) the rate of growth of the numbers referred to in
subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of meals served in
family day care homes that--
(i) received reimbursement under the program prior to the
amendments made by this section but do not receive
reimbursement after the amendments made by this section; or
(ii) received full reimbursement under the program prior to
the amendments made by this section but do not receive full
reimbursement after the amendments made by this section; and
(F) the proportion of low-income children participating in
the program prior to the amendments made by this section and
the proportion of low-income children participating in the
program after the amendments made by this section.
(2) Required data.--Each State agency participating in the
child care food program under section 17 of the National
School Lunch Act (42 U.S.C. 1766) shall submit to the
Secretary data on--
(A) the number of family day care homes participating in
the program on June 30, 1997, and June 30, 1998;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on June 30,
1997, and June 30, 1998; and
(C) such other data as the Secretary may require to carry
out this subsection.
(3) Submission of report.--Not later than 2 years after the
effective date of this section, the Secretary shall submit
the study required under this subsection to the Committee on
Economic and Educational Opportunities of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 3209. PILOT PROJECTS.
(a) Universal Free Pilot.--Section 18(d) of the National
School Lunch Act (42 U.S.C. 1769(d)) is amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
(b) Demo Project Outside School Hours.--Section 18(e) of
the Act is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``(A)''; and
(ii) by striking ``shall'' and inserting ``may''; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the following:
``(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
such sums as are necessary for each of fiscal years 1997 and
1998.''.
(c) Eliminating Projects.--Section 18 of the Act is
amended--
(1) by striking subsections (a) and (g) through (i); and
(2) by redesignating subsections (b) through (f), as so
amended, as subsections (a) through (e), respectively.
(d) Conforming Amendment.--Section 17B(d)(1)(A) of the Act
(42 U.S.C. 1766b(d)(1)(A)) is amended by striking ``18(c)''
and inserting ``18(b)''.
SEC. 3210. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C.
1769a) is repealed.
SEC. 3211. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C.
1769d) is repealed.
SEC. 3212. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C.
1769e) is repealed.
SEC. 3213. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42 U.S.C.
1769g) is repealed.
CHAPTER 2--CHILD NUTRITION ACT OF 1966
SEC. 3221. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966 (42
U.S.C. 1772(a)(3)) is amended by striking ``the Trust
Territory of the Pacific Islands'' and inserting ``the
Commonwealth of the Northern Mariana Islands''.
SEC. 3222. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966 (42
U.S.C. 1773(b)(1)) is amended by adding at the end the
following:
``(E) Free and reduced price policy statement.--After the
initial submission, a school shall not be required to submit
a free and reduced price policy statement to a State
educational agency under this Act unless there is a
substantive change in the free and reduced price policy of
the school. A routine change in the policy of a school, such
as an annual adjustment of the income eligibility guidelines
for free and reduced price meals, shall not be sufficient
cause for requiring the school to submit a policy
statement.''.
SEC. 3223. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) Training and Technical Assistance in Food
Preparation.--Section 4(e)(1) of the Child Nutrition Act of
1966 (42 U.S.C. 1773(e)(1)) is amended--
(1) in subparagraph (A), by striking ``(A)''; and
(2) by striking subparagraph (B).
(b) Expansion of Program; Startup and Expansion Costs.--
(1) In general.--Section 4 of the Act is amended by
striking subsections (f) and (g).
(2) Effective date.--The amendments made by paragraph (1)
shall become effective on October 1, 1996.
SEC. 3224. STATE ADMINISTRATIVE EXPENSES.
(a) Use of Funds for Commodity Distribution Administration;
Studies.--Section 7 of the Child Nutrition Act of 1966 (42
U.S.C. 1776) is amended--
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i) as
subsections (e), (f), and (g), respectively.
(b) Approval of Changes.--Section 7(e) of the Act, as so
redesignated, is amended--
(1) by striking ``each year an annual plan'' and inserting
``the initial fiscal year a plan''; and
(2) by adding at the end the following: ``After submitting
the initial plan, a State shall only be required to submit to
the Secretary for approval a substantive change in the
plan.''.
SEC. 3225. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C.
1779(b)) is amended--
(1) in paragraph (1), by striking ``(1)''; and
(2) by striking paragraphs (2) through (4).
SEC. 3226. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1780(a)) is amended by striking ``neither the Secretary nor
the State shall'' and inserting ``the Secretary shall not''.
SEC. 3227. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
Section 15 of the Child Nutrition Act of 1966 (42 U.S.C.
1784) is amended--
(1) in paragraph (1), by striking ``the Trust Territory of
the Pacific Islands'' and inserting ``the Commonwealth of the
Northern Mariana Islands''; and
(2) in the first sentence of paragraph (3)--
(A) in subparagraph (A), by inserting ``and'' at the end;
and
(B) by striking ``, and (C)'' and all that follows through
``Governor of Puerto Rico''.
SEC. 3228. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nutrition
Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ``at
all times be available'' and inserting ``be available at any
reasonable time''.
SEC. 3229. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.
(a) Definitions.--Section 17(b) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(b)) is amended--
(1) in paragraph (15)(B)(iii), by inserting ``of not more
than 365 days'' after ``accommodation''; and
(2) in paragraph (16)--
(A) in subparagraph (A), by adding ``and'' at the end; and
(B) in subparagraph (B), by striking ``; and'' and
inserting a period; and
(C) by striking subparagraph (C).
(b) Secretary's Promotion of WIC.--Section 17(c) of the Act
is amended by striking paragraph (5).
(c) Eligible Participants.--Section 17(d) of the Act is
amended by striking paragraph (4).
(d) Nutrition Education and Drug Abuse Education.--Section
17(e) of the Act is amended--
(1) in the first sentence of paragraph (1), by striking
``shall ensure'' and all that follows through ``is provided''
and inserting ``shall provide nutrition education and may
provide drug abuse education'';
(2) in paragraph (2), by striking the third sentence;
[[Page H7841]]
(3) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
``shall'';
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(D) in subparagraphs (A) and (B) (as redesignated), by
inserting ``shall'' before ``provide'' each place it appears;
(E) in subparagraph (A) (as redesignated), by striking
``and'' at the end;
(F) in subparagraph (B) (as redesignated), by striking the
period and inserting ``; and''; and
(G) by adding at the end the following:
``(C) may provide a local agency with materials describing
other programs for which participants in the program may be
eligible.'';
(4) in paragraph (5), by striking ``The State'' and all
that follows through ``local agency shall'' and inserting
``Each local agency shall''; and
(5) by striking paragraph (6).
(e) State Plan.--Section 17(f) of the Act is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``annually to the Secretary, by a date
specified by the Secretary, a'' and inserting ``to the
Secretary, by a date specified by the Secretary, an
initial''; and
(ii) by adding at the end the following: ``After submitting
the initial plan, a State shall only be required to submit to
the Secretary for approval a substantive change in the
plan.'';
(B) in subparagraph (C)--
(i) by striking clause (iii) and inserting the following:
``(iii) a plan to coordinate operations under the program
with other services or programs that may benefit participants
in, and applicants for, the program;'';
(ii) in clause (vi), by inserting after ``in the State''
the following: ``(including a plan to improve access to the
program for participants and prospective applicants who are
employed, or who reside in rural areas)'';
(iii) in clause (vii), by striking ``to provide program
benefits'' and all that follows through ``emphasis on'' and
inserting ``for'';
(iv) by striking clauses (ix), (x), and (xii);
(v) in clause (xiii), by striking ``may require'' and
inserting ``may reasonably require''; and
(vi) by redesignating clauses (xi) and (xiii), as so
amended, as clauses (ix) and (x), respectively;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subparagraph (D);
(2) by striking paragraphs (2), (6), (8), and (22);
(3) in the second sentence of paragraph (5), by striking
``at all times be available'' and inserting ``be available at
any reasonable time'';
(4) in paragraph (9)(B), by striking the second sentence;
(5) in the first sentence of paragraph (11), by striking
``, including standards that will ensure sufficient State
agency staff'';
(6) in paragraph (12), by striking the third sentence;
(7) in paragraph (14), by striking ``shall'' and inserting
``may'';
(8) in paragraph (17), by striking ``and to accommodate''
and all that follows through ``facilities'';
(9) in paragraph (19), by striking ``shall'' and inserting
``may''; and
(10) by redesignating paragraphs (3), (4), (5), (7), (9)
through (19), (20), (21), (23), and (24), as so amended, as
paragraphs (2), (3), (4), (5), (6) through (16), (17), (18),
(19), and (20), respectively.
(f) Information.--Section 17(g) of the Act is amended--
(1) in paragraph (5), by striking ``the report required
under subsection (d)(4)'' and inserting ``reports on program
participant characteristics''; and
(2) by striking paragraph (6).
(g) Procurement of Infant Formula.--
(1) In general.--Section 17(h) of the Act is amended--
(A) in paragraph (4)(E), by striking ``and, on'' and all
that follows through ``(d)(4)'';
(B) in paragraph (8)--
(i) by striking subparagraphs (A), (C), and (M);
(ii) in subparagraph (G)--
(I) in clause (i), by striking ``(i)''; and
(II) by striking clauses (ii) through (ix);
(iii) in subparagraph (I), by striking ``Secretary--'' and
all that follows through ``(v) may'' and inserting
``Secretary may'';
(iv) by redesignating subparagraphs (B) and (D) through (L)
as subparagraphs (A) and (B) through (J), respectively;
(v) in subparagraph (A)(i), as so redesignated, by striking
``subparagraphs (C), (D), and (E)(iii), in carrying out
subparagraph (A),'' and inserting ``subparagraphs (B) and
(C)(iii),'';
(vi) in subparagraph (B)(i), as so redesignated, by
striking ``subparagraph (B)'' each place it appears and
inserting ``subparagraph (A)''; and
(vii) in subparagraph (C)(iii), as so redesignated, by
striking ``subparagraph (B)'' and inserting ``subparagraph
(A)''; and
(C) in paragraph (10)(B)--
(i) in clause (i), by striking the semicolon and inserting
``; and'';
(ii) in clause (ii), by striking ``; and'' and inserting a
period; and
(iii) by striking clause (iii).
(2) Application.--The amendments made by paragraph (1)
shall not apply to a contract for the procurement of infant
formula under section 17(h)(8) of the Act that is in effect
on the effective date of this subsection.
(h) National Advisory Council on Maternal, Infant, and
Fetal Nutrition.--Section 17(k)(3) of the Act is amended by
striking ``Secretary shall designate'' and inserting
``Council shall elect''.
(i) Completed Study; Community College Demonstration;
Grants for Information and Data System.--Section 17 of the
Act is amended by striking subsections (n), (o), and (p).
(j) Disqualification of Vendors Who Are Disqualified Under
the Food Stamp Program.--Section 17 of the Act, as so
amended, is further amended by adding at the end the
following:
``(n) Disqualification of Vendors Who Are Disqualified
Under the Food Stamp Program.--
``(1) In general.--The Secretary shall issue regulations
providing criteria for the disqualification under this
section of an approved vendor that is disqualified from
accepting benefits under the food stamp program established
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
``(2) Terms.--A disqualification under paragraph (1)--
``(A) shall be for the same period as the disqualification
from the program referred to in paragraph (1);
``(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
``(C) shall not be subject to judicial or administrative
review.''.
SEC. 3230. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C.
1787) is repealed.
SEC. 3231. NUTRITION EDUCATION AND TRAINING.
(a) Findings.--Section 19 of the Child Nutrition Act of
1966 (42 U.S.C. 1788) is amended--
(1) in subsection (a), by striking ``that--'' and all that
follows through the period at the end and inserting ``that
effective dissemination of scientifically valid information
to children participating or eligible to participate in the
school lunch and related child nutrition programs should be
encouraged.''; and
(2) in subsection (b), by striking ``encourage'' and all
that follows through ``establishing'' and inserting
``establish''.
(b) Use of Funds.--Section 19(f) of the Act is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (B); and
(B) in subparagraph (A)--
(i) by striking ``(A)'';
(ii) by striking clauses (ix) through (xix);
(iii) by redesignating clauses (i) through (viii) and (xx)
as subparagraphs (A) through (H) and (I), respectively;
(iv) in subparagraph (I), as so redesignated, by striking
the period at the end and inserting ``; and''; and
(v) by adding at the end the following:
``(J) other appropriate related activities, as determined
by the State.'';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) Accounts, Records, and Reports.--The second sentence of
section 19(g)(1) of the Act is amended by striking ``at all
times be available'' and inserting ``be available at any
reasonable time''.
(d) State Coordinators for Nutrition; State Plan.--Section
19(h) of the Act is amended--
(1) in the second sentence of paragraph (1)--
(A) by striking ``as provided in paragraph (2) of this
subsection''; and
(B) by striking ``as provided in paragraph (3) of this
subsection'';
(2) in paragraph (2), by striking the second and third
sentences; and
(3) by striking paragraph (3).
(e) Authorization of Appropriations.--Section 19(i) of the
Act is amended--
(1) in the first sentence of paragraph (2)(A), by striking
``and each succeeding fiscal year'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Fiscal years 1997 through 2002.--
``(A) In general.--There are authorized to be appropriated
to carry out this section $10,000,000 for each of fiscal
years 1997 through 2002.
``(B) Grants.--
``(i) In general.--Grants to each State from the amounts
made available under subparagraph (A) shall be based on a
rate of 50 cents for each child enrolled in schools or
institutions within the State, except that no State shall
receive an amount less than $75,000 per fiscal year.
``(ii) Insufficient funds.--If the amount made available
for any fiscal year is insufficient to pay the amount to
which each State is entitled under clause (i), the amount of
each grant shall be ratably reduced.''.
(f) Assessment.--Section 19 of the Act is amended by
striking subsection (j).
(g) Effective Date.--The amendments made by subsection (e)
shall become effective on October 1, 1996.
[[Page H7842]]
CHAPTER 3--MISCELLANEOUS PROVISIONS
SEC. 3241. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST,
AND SUMMER FOOD SERVICE PROGRAMS.
(a) Coordination.--
(1) In general.--The Secretary of Agriculture shall develop
proposed changes to the regulations under the school lunch
program under the National School Lunch Act, the summer food
service program under section 13 of that Act, and the school
breakfast program under section 4 of the Child Nutrition Act
of 1966, for the purpose of simplifying and coordinating
those programs into a comprehensive meal program.
(2) Consultation.--In developing proposed changes to the
regulations under paragraph (1), the Secretary of Agriculture
shall consult with local, State, and regional administrators
of the programs described in such paragraph.
(b) Report.--Not later than November 1, 1997, the Secretary
of Agriculture shall submit to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on
Economic and Educational Opportunities of the House of
Representatives a report containing the proposed changes
developed under subsection (a).
Subtitle C--Related Provisions
Sec. 3301. REQUIREMENT THAT DATA RELATING TO THE INCIDENCE OF
POVERTY IN THE UNITED STATES BE PUBLISHED AT
LEAST EVERY 2 YEARS.
(a) In General.--The Secretary shall, to the extent
feasible, produce and publish for each State, county, and
local unit of general purpose government for which data have
been compiled in the then most recent census of population
under section 141(a) of title 13, United States Code, and for
each school district, data relating to the incidence of
poverty. Such data may be produced by means of sampling,
estimation, or any other method that the Secretary determines
will produce current, comprehensive, and reliable data.
(b) Content; Frequency.--Data under this section--
(1) shall include--
(A) for each school district, the number of children age 5
to 17, inclusive, in families below the poverty level; and
(B) for each State and county referred to in subsection
(a), the number of individuals age 65 or older below the
poverty level; and
(2) shall be published--
(A) for each State, county, and local unit of general
purpose government referred to in subsection (a), in 1997 and
at least every second year thereafter; and
(B) for each school district, in 1999 and at least every
second year thereafter.
(c) Authority To Aggregate.--
(1) In general.--If reliable data could not otherwise be
produced, the Secretary may, for purposes of subsection
(b)(1)(A), aggregate school districts, but only to the extent
necessary to achieve reliability.
(2) Information relating to use of authority.--Any data
produced under this subsection shall be appropriately
identified and shall be accompanied by a detailed explanation
as to how and why aggregation was used (including the
measures taken to minimize any such aggregation).
(d) Report To Be Submitted Whenever Data Is Not Timely
Published.--If the Secretary is unable to produce and publish
the data required under this section for any State, county,
local unit of general purpose government, or school district
in any year specified in subsection (b)(2), a report shall be
submitted by the Secretary to the President of the Senate and
the Speaker of the House of Representatives, not later than
90 days before the start of the following year, enumerating
each government or school district excluded and giving the
reasons for the exclusion.
(e) Criteria Relating to Poverty.--In carrying out this
section, the Secretary shall use the same criteria relating
to poverty as were used in the then most recent census of
population under section 141(a) of title 13, United States
Code (subject to such periodic adjustments as may be
necessary to compensate for inflation and other similar
factors).
(f) Consultation.--The Secretary shall consult with the
Secretary of Education in carrying out the requirements of
this section relating to school districts.
(g) Definition.--For the purpose of this section, the term
``Secretary'' means the Secretary of Health and Human
Services.
(h) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $1,500,000 for
each of fiscal years 1997 through 2000.
SEC. 3302. SENSE OF THE CONGRESS.
It is the sense of the Congress that this title, and the
amendments made by this title, should not result in an
increase in the number of children who are hungry, homeless,
poor, or medically uninsured.
SEC. 3303. LEGISLATIVE ACCOUNTABILITY.
In the event that this title, or the amendments made by
this title, results in an increase in the number of children
in the United States who are hungry, homeless, poor, or
medically uninsured by the end of the fiscal year 1997, the
Congress--
(1) shall revisit the provisions of this title, or the
amendments made by this title, which caused such increase;
and
(2) shall, as soon as practicable thereafter, pass
legislation that stops the continuation of such increase.
TITLE IV--COMMITTEE ON WAYS AND MEANS
SEC. 4001. SHORT TITLE.
This title may be cited as the ``Personal Responsibility
and Work Opportunity Act of 1996''.
SEC. 4002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 4001. Short title.
Sec. 4002. Table of contents.
Subtitle A--Block Grants for Temporary Assistance for Needy Families
Sec. 4101. Findings.
Sec. 4102. Reference to Social Security Act.
Sec. 4103. Block grants to States.
Sec. 4104. Services provided by charitable, religious, or private
organizations.
Sec. 4105. Census data on grandparents as primary caregivers for their
grandchildren.
Sec. 4106. Report on data processing.
Sec. 4107. Study on alternative outcomes measures.
Sec. 4108. Conforming amendments to the Social Security Act.
Sec. 4109. Conforming amendments to the Food Stamp Act of 1977 and
related provisions.
Sec. 4110. Conforming amendments to other laws.
Sec. 4111. Development of prototype of counterfeit-resistant social
security card required.
Sec. 4112. Disclosure of receipt of Federal funds.
Sec. 4113. Modifications to the job opportunities for certain low-
income individuals program.
Sec. 4114. Secretarial submission of legislative proposal for technical
and conforming amendments.
Sec. 4115. Conforming amendments to medicaid program.
Sec. 4116. Effective date; transition rule.
Subtitle B--Supplemental Security Income
Sec. 4200. Reference to Social Security Act.
Chapter 1--Eligibility Restrictions
Sec. 4201. Denial of SSI benefits for 10 years to individuals found to
have fraudulently misrepresented residence in order to
obtain benefits simultaneously in 2 or more States.
Sec. 4202. Denial of SSI benefits for fugitive felons and probation and
parole violators.
Sec. 4203. Treatment of prisoners.
Sec. 4204. Effective date of application for benefits.
Chapter 2--Benefits For Disabled Children
Sec. 4211. Definition and eligibility rules.
Sec. 4212. Eligibility redeterminations and continuing disability
reviews.
Sec. 4213. Additional accountability requirements.
Sec. 4214. Reduction in cash benefits payable to institutionalized
individuals whose medical costs are covered by private
insurance.
Sec. 4215. Regulations.
Chapter 3--Additional Enforcement Provisions
Sec. 4221. Installment payment of large past-due supplemental security
income benefits.
Sec. 4222. Recovery of supplemental security income overpayments from
social security benefits.
Sec. 4223. Regulations.
Chapter 4--State Supplementation Programs
Sec. 4225. Repeal of maintenance of effort requirements applicable to
optional State programs for supplementation of SSI
benefits.
Chapter 5--Studies Regarding Supplemental Security Income Program
Sec. 4231. Annual report on the supplemental security income program.
Sec. 4232. Study of disability determination process.
Sec. 4233. Study by General Accounting Office.
Chapter 6--National Commission on the Future of Disability
Sec. 4241. Establishment.
Sec. 4242. Duties of the commission.
Sec. 4243. Membership.
Sec. 4244. Staff and support services.
Sec. 4245. Powers of commission.
Sec. 4246. Reports.
Sec. 4247. Termination.
Sec. 4248. Authorization of appropriations.
Subtitle C--Child Support
Sec. 4300. Reference to Social Security Act.
Chapter 1--Eligibility For Services; Distribution of Payments
Sec. 4301. State obligation to provide child support enforcement
services.
Sec. 4302. Distribution of child support collections.
Sec. 4303. Privacy safeguards.
Sec. 4304. Rights to notification of hearings.
Chapter 2--Locate And Case Tracking
Sec. 4311. State case registry.
Sec. 4312. Collection and disbursement of support payments.
Sec. 4313. State directory of new hires.
Sec. 4314. Amendments concerning income withholding.
Sec. 4315. Locator information from interstate networks.
[[Page H7843]]
Sec. 4316. Expansion of the Federal Parent Locator Service.
Sec. 4317. Collection and use of social security numbers for use in
child support enforcement.
Chapter 3--Streamlining And Uniformity of Procedures
Sec. 4321. Adoption of uniform State laws.
Sec. 4322. Improvements to full faith and credit for child support
orders.
Sec. 4323. Administrative enforcement in interstate cases.
Sec. 4324. Use of forms in interstate enforcement.
Sec. 4325. State laws providing expedited procedures.
Chapter 4--Paternity Establishment
Sec. 4331. State laws concerning paternity establishment.
Sec. 4332. Outreach for voluntary paternity establishment.
Sec. 4333. Cooperation by applicants for and recipients of part A
assistance.
Chapter 5--Program Administration and Funding
Sec. 4341. Performance-based incentives and penalties.
Sec. 4342. Federal and State reviews and audits.
Sec. 4343. Required reporting procedures.
Sec. 4344. Automated data processing requirements.
Sec. 4345. Technical assistance.
Sec. 4346. Reports and data collection by the Secretary.
Sec. 4347. Child support delinquency penalty.
Chapter 6--Establishment And Modification of Support Orders
Sec. 4351. Simplified process for review and adjustment of child
support orders.
Sec. 4352. Furnishing consumer reports for certain purposes relating to
child support.
Sec. 4353. Nonliability for financial institutions providing financial
records to State child support enforcement agencies in
child support cases.
Chapter 7--Enforcement Of Support Orders
Sec. 4361. Internal Revenue Service collection of arrearages.
Sec. 4362. Authority to collect support from Federal employees.
Sec. 4363. Enforcement of child support obligations of members of the
Armed Forces.
Sec. 4364. Voiding of fraudulent transfers.
Sec. 4365. Work requirement for persons owing past-due child support.
Sec. 4366. Definition of support order.
Sec. 4367. Reporting arrearages to credit bureaus.
Sec. 4368. Liens.
Sec. 4369. State law authorizing suspension of licenses.
Sec. 4370. Denial of passports for nonpayment of child support.
Sec. 4371. International support enforcement.
Sec. 4372. Financial institution data matches.
Sec. 4373. Enforcement of orders against paternal or maternal
grandparents in cases of minor parents.
Sec. 4374. Nondischargeability in bankruptcy of certain debts for the
support of a child.
Chapter 8--Medical Support
Sec. 4376. Correction to ERISA definition of medical child support
order.
Sec. 4377. Enforcement of orders for health care coverage.
Chapter 9--Enhancing Responsibility and Opportunity for Non-residential
Parents
Sec. 4381. Grants to States for access and visitation programs.
Chapter 10--Effective Dates and Conforming Amendments
Sec. 4391. Effective dates and conforming amendments.
Subtitle D--Restricting Welfare and Public Benefits for Aliens
Sec. 4400. Statements of national policy concerning welfare and
immigration.
Chapter 1--Eligibility For Federal Benefits
Sec. 4401. Aliens who are not qualified aliens ineligible for Federal
public benefits.
Sec. 4402. Limited eligibility of qualified aliens for certain Federal
programs.
Sec. 4403. Five-year limited eligibility of qualified aliens for
Federal means-tested public benefit.
Sec. 4404. Notification and information reporting.
Chapter 2--Eligibility For State and Local Public Benefits Programs
Sec. 4411. Aliens who are not qualified aliens or nonimmigrants
ineligible for State and local public benefits.
Sec. 4412. State authority to limit eligibility of qualified aliens for
State public benefits.
Chapter 3--Attribution Of Income and Affidavits of Support
Sec. 4421. Federal attribution of sponsor's income and resources to
alien.
Sec. 4422. Authority for States to provide for attribution of sponsors
income and resources to the alien with respect to State
programs.
Sec. 4423. Requirements for sponsor's affidavit of support.
Chapter 4--General Provisions
Sec. 4431. Definitions.
Sec. 4432. Verification of eligibility for Federal public benefits.
Sec. 4433. Statutory construction.
Sec. 4434. Communication between State and local government agencies
and the Immigration and Naturalization Service.
Sec. 4435. Qualifying quarters.
Chapter 5--Conforming Amendments Relating to Assisted Housing
Sec. 4441. Conforming amendments relating to assisted housing.
Chapter 6--Earned Income Credit Denied to Unauthorized Employees
Sec. 4451. Earned income credit denied to individuals not authorized to
be employed in the United States.
Subtitle E--Reform of Public Housing
Sec. 4601. Fraud under means-tested welfare and public assistance
programs.
Subtitle F--Child Protection Block Grant Programs and Foster Care,
Adoption Assistance, and Independent Living Programs
Chapter 1--Child Protection Block Grant Program and Foster Care,
Adoption Assistance, and Independent Living Programs
SUBCHAPTER A--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN
Sec. 4701. Establishment of program.
Sec. 4702. Conforming amendments.
SUBCHAPTER B--FOSTER CARE, ADOPTION ASSISTANCE, AND INDEPENDENT LIVING
PROGRAMS
Sec. 4711. Conforming amendments to part E of title IV.
SUBCHAPTER C--MISCELLANEOUS
Sec. 4721. Secretarial submission of legislative proposal for technical
and conforming amendments.
Sec. 4722. Sense of the Congress regarding timely adoption of children.
Sec. 4723. Removal of barriers to interethnic adoption.
Sec. 4724. Effective date; transition rules.
Chapter 2--Child And Family Services Block Grant
Sec. 4751. Child and family services block grant.
Sec. 4752. Reauthorizations.
Sec. 4753. Repeals.
Subtitle G--Reductions in Federal Government Positions
Sec. 4801. Reductions.
Sec. 4802. Reductions in Federal bureaucracy.
Sec. 4803. Reducing personnel in Washington, D.C. area.
Subtitle H--Miscellaneous
Sec. 4901. Appropriation by State legislatures.
Sec. 4902. Sanctioning for testing positive for controlled substances.
Sec. 4903. Reduction in block grants to States for social services.
Subtitle A--Block Grants for Temporary Assistance for Needy Families
SEC. 4101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful society.
(2) Marriage is an essential institution of a successful
society which promotes the interests of children.
(3) Promotion of responsible fatherhood and motherhood is
integral to successful child rearing and the well-being of
children.
(4) In 1992, only 54 percent of single-parent families with
children had a child support order established and, of that
54 percent, only about one-half received the full amount due.
Of the cases enforced through the public child support
enforcement system, only 18 percent of the caseload has a
collection.
(5) The number of individuals receiving aid to families
with dependent children (in this section referred to as
``AFDC'') has more than tripled since 1965. More than two-
thirds of these recipients are children. Eighty-nine percent
of children receiving AFDC benefits now live in homes in
which no father is present.
(A)(i) The average monthly number of children receiving
AFDC benefits--
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving AFDC benefits
increased nearly threefold between 1965 and 1992, the total
number of children in the United States aged 0 to 18 has
declined by 5.5 percent.
(B) The Department of Health and Human Services has
estimated that 12,000,000 children will receive AFDC benefits
within 10 years.
(C) The increase in the number of children receiving public
assistance is closely related to the increase in births to
unmarried women. Between 1970 and 1991, the percentage of
live births to unmarried women increased nearly threefold,
from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies and births
is well documented as follows:
(A) It is estimated that the rate of nonmarital teen
pregnancy rose 23 percent from 54 pregnancies per 1,000
unmarried teenagers in 1976 to 66.7 pregnancies in 1991. The
overall
[[Page H7844]]
rate of nonmarital pregnancy rose 14 percent from 90.8
pregnancies per 1,000 unmarried women in 1980 to 103 in both
1991 and 1992. In contrast, the overall pregnancy rate for
married couples decreased 7.3 percent between 1980 and 1991,
from 126.9 pregnancies per 1,000 married women in 1980 to
117.6 pregnancies in 1991.
(B) The total of all out-of-wedlock births between 1970 and
1991 has risen from 10.7 percent to 29.5 percent and if the
current trend continues, 50 percent of all births by the year
2015 will be out-of-wedlock.
(7) The negative consequences of an out-of-wedlock birth on
the mother, the child, the family, and society are well
documented as follows:
(A) Young women 17 and under who give birth outside of
marriage are more likely to go on public assistance and to
spend more years on welfare once enrolled. These combined
effects of ``younger and longer'' increase total AFDC costs
per household by 25 percent to 30 percent for 17-year-olds.
(B) Children born out-of-wedlock have a substantially
higher risk of being born at a very low or moderately low
birth weight.
(C) Children born out-of-wedlock are more likely to
experience low verbal cognitive attainment, as well as more
child abuse, and neglect.
(D) Children born out-of-wedlock were more likely to have
lower cognitive scores, lower educational aspirations, and a
greater likelihood of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly reduces the
chances of the child growing up to have an intact marriage.
(F) Children born out-of-wedlock are 3 times more likely to
be on welfare when they grow up.
(8) Currently 35 percent of children in single-parent homes
were born out-of-wedlock, nearly the same percentage as that
of children in single-parent homes whose parents are divorced
(37 percent). While many parents find themselves, through
divorce or tragic circumstances beyond their control, facing
the difficult task of raising children alone, nevertheless,
the negative consequences of raising children in single-
parent homes are well documented as follows:
(A) Only 9 percent of married-couple families with children
under 18 years of age have income below the national poverty
level. In contrast, 46 percent of female-headed households
with children under 18 years of age are below the national
poverty level.
(B) Among single-parent families, nearly \1/2\ of the
mothers who never married received AFDC while only \1/5\ of
divorced mothers received AFDC.
(C) Children born into families receiving welfare
assistance are 3 times more likely to be on welfare when they
reach adulthood than children not born into families
receiving welfare.
(D) Mothers under 20 years of age are at the greatest risk
of bearing low-birth-weight babies.
(E) The younger the single parent mother, the less likely
she is to finish high school.
(F) Young women who have children before finishing high
school are more likely to receive welfare assistance for a
longer period of time.
(G) Between 1985 and 1990, the public cost of births to
teenage mothers under the aid to families with dependent
children program, the food stamp program, and the medicaid
program has been estimated at $120,000,000,000.
(H) The absence of a father in the life of a child has a
negative effect on school performance and peer adjustment.
(I) Children of teenage single parents have lower cognitive
scores, lower educational aspirations, and a greater
likelihood of becoming teenage parents themselves.
(J) Children of single-parent homes are 3 times more likely
to fail and repeat a year in grade school than are children
from intact 2-parent families.
(K) Children from single-parent homes are almost 4 times
more likely to be expelled or suspended from school.
(L) Neighborhoods with larger percentages of youth aged 12
through 20 and areas with higher percentages of single-parent
households have higher rates of violent crime.
(M) Of those youth held for criminal offenses within the
State juvenile justice system, only 29.8 percent lived
primarily in a home with both parents. In contrast to these
incarcerated youth, 73.9 percent of the 62,800,000 children
in the Nation's resident population were living with both
parents.
(9) Therefore, in light of this demonstration of the crisis
in our Nation, it is the sense of the Congress that
prevention of out-of-wedlock pregnancy and reduction in out-
of-wedlock birth are very important Government interests and
the policy contained in part A of title IV of the Social
Security Act (as amended by section 4103(a) of this Act) is
intended to address the crisis.
SEC. 4102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
subtitle an amendment is expressed in terms of an amendment
to or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
SEC. 4103. BLOCK GRANTS TO STATES.
(a) In General.--Part A of title IV (42 U.S.C. 601 et seq.)
is amended--
(1) by striking all that precedes section 418 (as added by
section 4803(b)(2) of this Act) and inserting the following:
``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
``SEC. 401. PURPOSE.
``(a) In General.--The purpose of this part is to increase
the flexibility of States in operating a program designed
to--
``(1) provide assistance to needy families so that children
may be cared for in their own homes or in the homes of
relatives;
``(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and marriage;
``(3) prevent and reduce the incidence of out-of-wedlock
pregnancies and establish annual numerical goals for
preventing and reducing the incidence of these pregnancies;
and
``(4) encourage the formation and maintenance of two-parent
families.
``(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
``SEC. 402. ELIGIBLE STATES; STATE PLAN.
``(a) In General.--As used in this part, the term `eligible
State' means, with respect to a fiscal year, a State that,
during the 2-year period immediately preceding the fiscal
year, has submitted to the Secretary a plan that the
Secretary has found includes the following:
``(1) Outline of family assistance program.--
``(A) General provisions.--A written document that outlines
how the State intends to do the following:
``(i) Conduct a program, designed to serve all political
subdivisions in the State (not necessarily in a uniform
manner), that provides assistance to needy families with (or
expecting) children and provides parents with job
preparation, work, and support services to enable them to
leave the program and become self-sufficient.
``(ii) Require a parent or caretaker receiving assistance
under the program to engage in work (as defined by the State)
once the State determines the parent or caretaker is ready to
engage in work, or once the parent or caretaker has received
assistance under the program for 24 months (whether or not
consecutive), whichever is earlier.
``(iii) Ensure that parents and caretakers receiving
assistance under the program engage in work activities in
accordance with section 407.
``(iv) Take such reasonable steps as the State deems
necessary to restrict the use and disclosure of information
about individuals and families receiving assistance under the
program attributable to funds provided by the Federal
Government.
``(B) Special provisions.--
``(i) The document shall indicate whether the State intends
to treat families moving into the State from another State
differently than other families under the program, and if so,
how the State intends to treat such families under the
program.
``(ii) The document shall indicate whether the State
intends to provide assistance under the program to
individuals who are not citizens of the United States, and
if so, shall include an overview of such assistance.
``(iii) The document shall set forth objective criteria for
the delivery of benefits and the determination of eligibility
and for fair and equitable treatment, including an
explanation of how the State will provide opportunities for
recipients who have been adversely affected to be heard in a
State administrative or appeal process.
``(2) Certification that the state will operate a child
support enforcement program.--A certification by the chief
executive officer of the State that, during the fiscal year,
the State will operate a child support enforcement program
under the State plan approved under part D.
``(3) Certification that the state will operate a child
protection program.--A certification by the chief executive
officer of the State that, during the fiscal year, the State
will operate a child protection program under the State plan
approved under part B.
``(4) Certification of the administration of the program.--
A certification by the chief executive officer of the State
specifying which State agency or agencies will administer and
supervise the program referred to in paragraph (1) for the
fiscal year, which shall include assurances that local
governments and private sector organizations--
``(A) have been consulted regarding the plan and design of
welfare services in the State so that services are provided
in a manner appropriate to local populations; and
``(B) have had at least 45 days to submit comments on the
plan and the design of such services.
``(5) Certification that the state will provide indians
with equitable access to assistance.--A certification by the
chief executive officer of the State that, during the fiscal
year, the State will provide each Indian who is a member of
an Indian tribe in the State that does not have a tribal
family assistance plan approved under section 412 with
equitable access to assistance under the State program funded
under this part attributable to funds provided by the Federal
Government.
``(b) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan
submitted by the State under this section.
``SEC. 403. GRANTS TO STATES.
``(a) Grants.--
[[Page H7845]]
``(1) Family assistance grant.--
``(A) In general.--Each eligible State shall be entitled to
receive from the Secretary, for each of fiscal years 1996,
1997, 1998, 1999, 2000, and 2001 a grant in an amount equal
to the State family assistance grant.
``(B) State family assistance grant defined.--As used in
this part, the term `State family assistance grant' means the
greatest of--
``(i) \1/3\ of the total amount required to be paid to the
State under former section 403 (as in effect on September 30,
1995) for fiscal years 1992, 1993, and 1994 (other than with
respect to amounts expended by the State for child care under
subsection (g) or (i) of former section 402 (as so in
effect));
``(ii)(I) the total amount required to be paid to the State
under former section 403 for fiscal year 1994 (other than
with respect to amounts expended by the State for child care
under subsection (g) or (i) of former section 402 (as so in
effect)); plus
``(II) an amount equal to 85 percent of the amount (if any)
by which the total amount required to be paid to the State
under former section 403(a)(5) for emergency assistance
for fiscal year 1995 exceeds the total amount required to
be paid to the State under former section 403(a)(5) for
fiscal year 1994, if, during fiscal year 1994 or 1995, the
Secretary approved under former section 402 an amendment
to the former State plan to allow the provision of
emergency assistance in the context of family
preservation; or
``(iii) \4/3\ of the total amount required to be paid to
the State under former section 403 (as in effect on September
30, 1995) for the 1st 3 quarters of fiscal year 1995 (other
than with respect to amounts expended by the State under the
State plan approved under part F (as so in effect) or for
child care under subsection (g) or (i) of former section 402
(as so in effect)), plus the total amount required to be paid
to the State for fiscal year 1995 under former section 403(l)
(as so in effect).
``(C) Total amount required to be paid to the state under
former section 403 defined.--As used in this part, the term
`total amount required to be paid to the State under former
section 403' means, with respect to a fiscal year--
``(i) in the case of a State to which section 1108 does not
apply, the sum of--
``(I) the Federal share of maintenance assistance
expenditures for the fiscal year, before reduction pursuant
to subparagraph (B) or (C) of section 403(b)(2) (as in effect
on September 30, 1995), as reported by the State on ACF Form
231;
``(II) the Federal share of administrative expenditures
(including administrative expenditures for the development of
management information systems) for the fiscal year, as
reported by the State on ACF Form 231;
``(III) the Federal share of emergency assistance
expenditures for the fiscal year, as reported by the State on
ACF Form 231;
``(IV) the Federal share of expenditures for the fiscal
year with respect to child care pursuant to subsections (g)
and (i) of former section 402 (as in effect on September 30,
1995), as reported by the State on ACF Form 231; and
``(V) the aggregate amount required to be paid to the State
for the fiscal year with respect to the State program
operated under part F (as in effect on September 30, 1995),
as determined by the Secretary, including additional
obligations or reductions in obligations made after the close
of the fiscal year; and
``(ii) in the case of a State to which section 1108
applies, the lesser of--
``(I) the sum described in clause (i); or
``(II) the total amount certified by the Secretary under
former section 403 (as in effect during the fiscal year) with
respect to the territory.
``(D) Information to be used in determining amounts.--
``(i) For fiscal years 1992 and 1993.--
``(I) In determining the amounts described in subclauses
(I) through (IV) of subparagraph (C)(i) for any State for
each of fiscal years 1992 and 1993, the Secretary shall use
information available as of April 28, 1995.
``(II) In determining the amount described in subparagraph
(C)(i)(V) for any State for each of fiscal years 1992 and
1993, the Secretary shall use information available as of
January 6, 1995.
``(ii) For fiscal year 1994.--In determining the amounts
described in subparagraph (C)(i) for any State for fiscal
year 1994, the Secretary shall use information available as
of April 28, 1995.
``(iii) For fiscal year 1995.--
``(I) In determining the amount described in subparagraph
(B)(ii)(II) for any State for fiscal year 1995, the Secretary
shall use the information which was reported by the States
and estimates made by the States with respect to emergency
assistance expenditures and was available as of August 11,
1995.
``(II) In determining the amounts described in subclauses
(I) through (III) of subparagraph (C)(i) for any State for
fiscal year 1995, the Secretary shall use information
available as of October 2, 1995.
``(III) In determining the amount described in subparagraph
(C)(i)(IV) for any State for fiscal year 1995, the Secretary
shall use information available as of February 28, 1996.
``(IV) In determining the amount described in subparagraph
(C)(i)(V) for any State for fiscal year 1995, the Secretary
shall use information available as of October 5, 1995.
``(E) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1996, 1997, 1998, 1999, 2000,
and 2001 such sums as are necessary for grants under this
paragraph.
``(2) Grant to reward states that reduce out-of-wedlock
births.--
``(A) In general.--Each eligible State shall be entitled to
receive from the Secretary for fiscal year 1998 or any
succeeding fiscal year, a grant in an amount equal to the
State family assistance grant multiplied by--
``(i) 5 percent if--
``(I) the illegitimacy ratio of the State for the fiscal
year is at least 1 percentage point lower than the
illegitimacy ratio of the State for fiscal year 1995; and
``(II) the rate of induced pregnancy terminations in the
State for the fiscal year is less than the rate of induced
pregnancy terminations in the State for fiscal year 1995; or
``(ii) 10 percent if--
``(I) the illegitimacy ratio of the State for the fiscal
year is at least 2 percentage points lower than the
illegitimacy ratio of the State for fiscal year 1995; and
``(II) the rate of induced pregnancy terminations in the
State for the fiscal year is less than the rate of induced
pregnancy terminations in the State for fiscal year 1995.
``(B) Illegitimacy ratio.--As used in this paragraph, the
term `illegitimacy ratio' means, with respect to a State and
a fiscal year--
``(i) the number of out-of-wedlock births that occurred in
the State during the most recent fiscal year for which such
information is available; divided by
``(ii) the number of births that occurred in the State
during the most recent fiscal year for which such information
is available.
``(C) Disregard of changes in data due to changed reporting
methods.--For purposes of subparagraph (A), the Secretary
shall disregard--
``(i) any difference between the illegitimacy ratio of a
State for a fiscal year and the illegitimacy ratio of the
State for fiscal year 1995 which is attributable to a change
in State methods of reporting data used to calculate the
illegitimacy ratio; and
``(ii) any difference between the rate of induced pregnancy
terminations in a State for a fiscal year and such rate for
fiscal year 1995 which is attributable to a change in State
methods of reporting data used to calculate such rate.
``(D) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal year 1998 and for each succeeding
fiscal year such sums as are necessary for grants under this
paragraph.
``(3) Supplemental grant for population increases in
certain states.--
``(A) In general.--Each qualifying State shall, subject to
subparagraph (F), be entitled to receive from the Secretary--
``(i) for fiscal year 1997 a grant in an amount equal to
2.5 percent of the total amount required to be paid to the
State under former section 403 (as in effect during fiscal
year 1994) for fiscal year 1994; and
``(ii) for each of fiscal years 1998, 1999, and 2000, a
grant in an amount equal to the sum of--
``(I) the amount (if any) required to be paid to the State
under this paragraph for the immediately preceding fiscal
year; and
``(II) 2.5 percent of the sum of--
``(aa) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; and
``(bb) the amount (if any) required to be paid to the State
under this paragraph for the fiscal year preceding the fiscal
year for which the grant is to be made.
``(B) Preservation of grant without increases for states
failing to remain qualifying states.--Each State that is not
a qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State for a prior
fiscal year shall, subject to subparagraph (F), be entitled
to receive from the Secretary for the specified fiscal year,
a grant in an amount equal to the amount required to be paid
to the State under this paragraph for the most recent fiscal
year for which the State was a qualifying State.
``(C) Qualifying state.--
``(i) In general.--For purposes of this paragraph, a State
is a qualifying State for a fiscal year if--
``(I) the level of welfare spending per poor person by the
State for the immediately preceding fiscal year is less than
the national average level of State welfare spending per poor
person for such preceding fiscal year; and
``(II) the population growth rate of the State (as
determined by the Bureau of the Census) for the most recent
fiscal year for which information is available exceeds the
average population growth rate for all States (as so
determined) for such most recent fiscal year.
``(ii) State must qualify in fiscal year 1997.--
Notwithstanding clause (i), a State shall not be a qualifying
State for any fiscal year after 1997 by reason of clause (i)
if the State is not a qualifying State for fiscal year 1997
by reason of clause (i).
``(iii) Certain states deemed qualifying states.--For
purposes of this paragraph, a State is deemed to be a
qualifying State for fiscal years 1997, 1998, 1999, and 2000
if--
``(I) the level of welfare spending per poor person by the
State for fiscal year 1996 is less than 35 percent of the
national average level of State welfare spending per poor
person for fiscal year 1996; or
[[Page H7846]]
``(II) the population of the State increased by more than
10 percent from April 1, 1990 to July 1, 1994, according to
the population estimates in publication CB94-204 of the
Bureau of the Census.
``(D) Definitions.--As used in this paragraph:
``(i) Level of welfare spending per poor person.--The term
`level of State welfare spending per poor person' means, with
respect to a State and a fiscal year--
``(I) the sum of--
``(aa) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; and
``(bb) the amount (if any) paid to the State under this
paragraph for the immediately preceding fiscal year; divided
by
``(II) the number of individuals, according to the 1990
decennial census, who were residents of the State and whose
income was below the poverty line.
``(ii) National average level of state welfare spending per
poor person.--The term `national average level of State
welfare spending per poor person' means, with respect to a
fiscal year, an amount equal to--
``(I) the total amount required to be paid to the States
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994; divided by
``(II) the number of individuals, according to the 1990
decennial census, who were residents of any State and whose
income was below the poverty line.
``(iii) State.--The term `State' means each of the 50
States of the United States and the District of Columbia.
``(E) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1997, 1998, 1999, and 2000 such
sums as are necessary for grants under this paragraph, in a
total amount not to exceed $800,000,000.
``(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated pursuant to this
paragraph for a fiscal year is less than the total amount of
payments otherwise required to be made under this paragraph
for the fiscal year, then the amount otherwise payable to any
State for the fiscal year under this paragraph shall be
reduced by a percentage equal to the amount so appropriated
divided by such total amount.
``(G) Budget scoring.--Notwithstanding section 257(b)(2) of
the Balanced Budget and Emergency Deficit Control Act of
1985, the baseline shall assume that no grant shall be made
under this paragraph after fiscal year 2000.
``(4) Bonus to reward high performance states.--
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus year
for which the State is a high performing State.
``(B) Amount of grant.--
``(i) In general.--Subject to clause (ii) of this
subparagraph, the Secretary shall determine the amount of the
grant payable under this paragraph to a high performing State
for a bonus year, which shall be based on the score assigned
to the State under subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus year.
``(ii) Limitation.--The amount payable to a State under
this paragraph for a bonus year shall not exceed 5 percent of
the State family assistance grant.
``(C) Formula for measuring state performance.--Not later
than 1 year after the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996, the
Secretary, in consultation with the National Governors'
Association and the American Public Welfare Association,
shall develop a formula for measuring State performance in
operating the State program funded under this part so as to
achieve the goals set forth in section 401(a).
``(D) Scoring of state performance; setting of performance
thresholds.--For each bonus year, the Secretary shall--
``(i) use the formula developed under subparagraph (C) to
assign a score to each eligible State for the fiscal year
that immediately precedes the bonus year; and
``(ii) prescribe a performance threshold in such a manner
so as to ensure that--
``(I) the average annual total amount of grants to be made
under this paragraph for each bonus year equals $100,000,000;
and
``(II) the total amount of grants to be made under this
paragraph for all bonus years equals $500,000,000.
``(E) Definitions.--As used in this paragraph:
``(i) Bonus year.--The term `bonus year' means fiscal years
1999, 2000, 2001, 2002, and 2003.
``(ii) High performing state.--The term `high performing
State' means, with respect a bonus year, an eligible State
whose score assigned pursuant to subparagraph (D)(i) for the
fiscal year immediately preceding the bonus year equals or
exceeds the performance threshold prescribed under
subparagraph (D)(ii) for such preceding fiscal year.
``(F) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated for fiscal years 1999 through 2003 $500,000,000
for grants under this paragraph.
``(5) Supplemental grant for operation of work program.--
``(A) Application requirements.--An eligible State may
submit to the Secretary an application for additional funds
to meet the requirements of section 407 with respect to a
fiscal year if the Secretary determines that--
``(i) the total expenditures of the State to meet such
requirements for the fiscal year exceed the total
expenditures of the State during fiscal year 1994 to carry
out part F (as in effect on September 30, 1994);
``(ii) the work programs of the State under this section
are coordinated with the job training programs established by
title II of the Job Training Partnership Act, or (if such
title is repealed by an Act that becomes law during the 104th
Congress) the Act that repeals such title; and
``(iii) the State needs additional funds to meet such
requirements or certifies that it intends to exceed such
requirements.
``(B) Grants.--The Secretary may make a grant to any
eligible State which submits an application in accordance
with subparagraph (A) for a fiscal year in an amount equal to
the Federal medical assistance percentage of the amount (if
any) by which the total expenditures of the State to meet or
exceed the requirements of section 407 for the fiscal year
exceeds the total expenditures of the State during fiscal
year 1994 to carry out part F (as in effect on September 30,
1994).
``(C) Regulations.--The Secretary shall issue regulations
providing for the equitable distribution of funds under this
paragraph.
``(D) Authorization of appropriations.--
``(i) In general.--There are authorized to be appropriated
for grants under this paragraph $3,000,000,000 for fiscal
year 1999.
``(ii) Availability.--Amounts appropriated pursuant to
clause (i) are authorized to remain available until expended.
``(b) Contingency Fund.--
``(1) Establishment.--There is hereby established in the
Treasury of the United States a fund which shall be known as
the `Contingency Fund for State Welfare Programs' (in this
section referred to as the `Fund').
``(2) Deposits into fund.--Out of any money in the Treasury
of the United States not otherwise appropriated, there are
appropriated for fiscal years 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for payment to the Fund in a
total amount not to exceed $2,000,000,000.
``(3) Grants.--
``(A) Provisional payments.--If an eligible State submits
to the Secretary a request for funds under this paragraph
during an eligible month, the Secretary shall, subject to
this paragraph, pay to the State, from amounts appropriated
pursuant to paragraph (2), an amount equal to the amount of
funds so requested.
``(B) Payment priority.--The Secretary shall make payments
under subparagraph (A) in the order in which the Secretary
receives requests for such payments.
``(C) Limitations.--
``(i) Monthly payment to a state.--The total amount paid to
a single State under subparagraph (A) during a month shall
not exceed \1/12\ of 20 percent of the State family
assistance grant.
``(ii) Payments to all states.--The total amount paid to
all States under subparagraph (A) during fiscal years 1997
through 2001 shall not exceed the total amount appropriated
pursuant to paragraph (2).
``(4) Annual reconciliation.--Notwithstanding paragraph
(3), at the end of each fiscal year, each State shall remit
to the Secretary an amount equal to the amount (if any) by
which the total amount paid to the State under paragraph (3)
during the fiscal year exceeds--
``(A) the Federal medical assistance percentage for the
State for the fiscal year (as defined in section 1905(b), as
in effect on September 30, 1995) of the amount (if any) by
which the expenditures under the State program funded under
this part for the fiscal year exceed historic State
expenditures (as defined in section 409(a)(7)(B)(iii));
multiplied by
``(B) \1/12\ times the number of months during the fiscal
year for which the Secretary makes a payment to the State
under this subsection.
``(5) Eligible month.--As used in paragraph (3)(A), the
term `eligible month' means, with respect to a State, a month
in the 2-month period that begins with any month for which
the State is a needy State.
``(6) Needy state.--For purposes of paragraph (5), a State
is a needy State for a month if--
``(A) the average rate of--
``(i) total unemployment in such State (seasonally
adjusted) for the period consisting of the most recent 3
months for which data for all States are published equals or
exceeds 6.5 percent; and
``(ii) total unemployment in such State (seasonally
adjusted) for the 3-month period equals or exceeds 110
percent of such average rate for either (or both) of the
corresponding 3-month periods ending in the 2 preceding
calendar years; or
``(B) as determined by the Secretary of Agriculture (in the
discretion of the Secretary of Agriculture), the monthly
average number of individuals (as of the last day of each
month) participating in the food stamp program in the
State in the then most recently concluded 3-month period
for which data are available exceeds by not less than 10
percent the lesser of--
``(i) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding
3-month period in fiscal year 1994 if the amendments made by
subtitles D and J of
[[Page H7847]]
the Personal Responsibility and Work Opportunity Act of 1996
had been in effect throughout fiscal year 1994; or
``(ii) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding
3-month period in fiscal year 1995 if the amendments made by
subtitles D and J of the Personal Responsibility and Work
Opportunity Act of 1996 had been in effect throughout fiscal
year 1995.
``(7) Other terms defined.--As used in this subsection:
``(A) State.--The term `State' means each of the 50 States
of the United States and the District of Columbia.
``(B) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(8) Annual reports.--The Secretary shall annually report
to the Congress on the status of the Fund.
``(9) Budget scoring.--Notwithstanding section 257(b)(2) of
the Balanced Budget and Emergency Deficit Control Act of
1985, the baseline shall assume that no grant shall be made
under this subsection after fiscal year 2001.
``SEC. 404. USE OF GRANTS.
``(a) General Rules.--Subject to this part, a State to
which a grant is made under section 403 may use the grant--
``(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to provide low
income households with assistance in meeting home heating and
cooling costs; or
``(2) in any manner that the State was authorized to use
amounts received under part A or F, as such parts were in
effect on September 30, 1995.
``(b) Limitation on Use of Grant for Administrative
Purposes.--
``(1) Limitation.--A State to which a grant is made under
section 403 shall not expend more than 15 percent of the
grant for administrative purposes.
``(2) Exception.--Paragraph (1) shall not apply to the use
of a grant for information technology and computerization
needed for tracking or monitoring required by or under this
part.
``(c) Authority to Treat Interstate Immigrants Under Rules
of Former State.--A State operating a program funded under
this part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another
State if the family has moved to the State from the other
State and has resided in the State for less than 12 months.
``(d) Authority to Use Portion of Grant for Other
Purposes.--
``(1) In general.--A State may use not more than 30 percent
of the amount of the grant made to the State under section
403 for a fiscal year to carry out a State program pursuant
to any or all of the following provisions of law:
``(A) Part B or E of this title.
``(B) Title XX of this Act.
``(C) The Child Care and Development Block Grant Act of
1990.
``(2) Applicable rules.--Any amount paid to the State under
this part that is used to carry out a State program pursuant
to a provision of law specified or described in paragraph (1)
shall not be subject to the requirements of this part, but
shall be subject to the requirements that apply to Federal
funds provided directly under the provision of law to
carry out the program.
``(e) Authority to Reserve Certain Amounts for
Assistance.--A State may reserve amounts paid to the State
under this part for any fiscal year for the purpose of
providing, without fiscal year limitation, assistance under
the State program funded under this part.
``(f) Authority to Operate Employment Placement Program.--A
State to which a grant is made under section 403 may use the
grant to make payments (or provide job placement vouchers) to
State-approved public and private job placement agencies that
provide employment placement services to individuals who
receive assistance under the State program funded under this
part.
``(g) Implementation of Electronic Benefit Transfer
System.--A State to which a grant is made under section 403
is encouraged to implement an electronic benefit transfer
system for providing assistance under the State program
funded under this part, and may use the grant for such
purpose.
``SEC. 405. ADMINISTRATIVE PROVISIONS.
``(a) Quarterly.--The Secretary shall pay each grant
payable to a State under section 403 in quarterly
installments.
``(b) Notification.--Not later than 3 months before the
payment of any such quarterly installment to a State, the
Secretary shall notify the State of the amount of any
reduction determined under section 412(a)(1)(B) with respect
to the State.
``(c) Computation and Certification of Payments to
States.--
``(1) Computation.--The Secretary shall estimate the amount
to be paid to each eligible State for each quarter under this
part, such estimate to be based on a report filed by the
State containing an estimate by the State of the total sum to
be expended by the State in the quarter under the State
program funded under this part and such other information as
the Secretary may find necessary.
``(2) Certification.--The Secretary of Health and Human
Services shall certify to the Secretary of the Treasury the
amount estimated under paragraph (1) with respect to a State,
reduced or increased to the extent of any overpayment or
underpayment which the Secretary of Health and Human Services
determines was made under this part to the State for any
prior quarter and with respect to which adjustment has not
been made under this paragraph.
``(d) Payment Method.--Upon receipt of a certification
under subsection (c)(2) with respect to a State, the
Secretary of the Treasury shall, through the Fiscal Service
of the Department of the Treasury and before audit or
settlement by the General Accounting Office, pay to the
State, at the time or times fixed by the Secretary of Health
and Human Services, the amount so certified.
``(e) Collection of State Overpayments to Families From
Federal Tax Refunds.--
``(1) In general.--Upon receiving notice from the Secretary
of Health and Human Services that a State agency
administering a program funded under this part has notified
the Secretary that a named individual has been overpaid under
the State program funded under this part, the Secretary of
the Treasury shall determine whether any amounts as refunds
of Federal taxes paid are payable to such individual,
regardless of whether the individual filed a tax return as a
married or unmarried individual. If the Secretary of the
Treasury finds that any such amount is so payable, the
Secretary shall withhold from such refunds an amount equal to
the overpayment sought to be collected by the State and pay
such amount to the State agency.
``(2) Regulations.--The Secretary of the Treasury shall
issue regulations, after review by the Secretary of Health
and Human services, that provide--
``(A) that a State may only submit under paragraph (1)
requests for collection of overpayments with respect to
individuals--
``(i) who are no longer receiving assistance under the
State program funded under this part;
``(ii) with respect to whom the State has already taken
appropriate action under State law against the income or
resources of the individuals or families involved to collect
the past-due legally enforceable debt; and
``(iii) to whom the State agency has given notice of its
intent to request withholding by the Secretary of the
Treasury from the income tax refunds of such individuals;
``(B) that the Secretary of the Treasury will give a timely
and appropriate notice to any other person filing a joint
return with the individual whose refund is subject to
withholding under paragraph (1); and
``(C) the procedures that the State and the Secretary of
the Treasury will follow in carrying out this subsection
which, to the maximum extent feasible and consistent with the
provisions of this subsection, will be the same as those
issued pursuant to section 464(b) applicable to collection of
past-due child support.
``SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
``(a) Loan Authority.--
``(1) In general.--The Secretary shall make loans to any
loan-eligible State, for a period to maturity of not more
than 3 years.
``(2) Loan-eligible state.--As used in paragraph (1), the
term `loan-eligible State' means a State against which a
penalty has not been imposed under section 409(a)(1).
``(b) Rate of Interest.--The Secretary shall charge and
collect interest on any loan made under this section at a
rate equal to the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the period to maturity of
the loan.
``(c) Use of Loan.--A State shall use a loan made to the
State under this section only for any purpose for which grant
amounts received by the State under section 403(a) may be
used, including--
``(1) welfare anti-fraud activities; and
``(2) the provision of assistance under the State program
to Indian families that have moved from the service area of
an Indian tribe with a tribal family assistance plan approved
under section 412.
``(d) Limitation on Total Amount of Loans to a State.--The
cumulative dollar amount of all loans made to a State under
this section during fiscal years 1997 through 2001 shall not
exceed 10 percent of the State family assistance grant.
``(e) Limitation on Total Amount of Outstanding Loans.--The
total dollar amount of loans outstanding under this section
may not exceed $1,700,000,000.
``(f) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated such sums as may be necessary for the cost of
loans under this section.
``SEC. 407. MANDATORY WORK REQUIREMENTS.
``(a) Participation Rate Requirements.--
``(1) All families.--A State to which a grant is made under
section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for
the fiscal year with respect to all families receiving
assistance under the State program funded under this part:
The minimum
participation
``If the fiscal year is: rate is:
1997........................................................25
1998........................................................30
1999........................................................35
2000........................................................40
2001........................................................45
2002 or thereafter..........................................50.
[[Page H7848]]
``(2) 2-parent families.--A State to which a grant is made
under section 403 for a fiscal year shall achieve the minimum
participation rate specified in the following table for the
fiscal year with respect to 2-parent families receiving
assistance under the State program funded under this part:
The minimum
participation
``If the fiscal year is: rate is:
1996........................................................50
1997........................................................75
1998........................................................75
1999 or thereafter..........................................90.
``(b) Calculation of Participation Rates.--
``(1) All families.--
``(A) Average monthly rate.--For purposes of subsection
(a)(1), the participation rate for all families of a State
for a fiscal year is the average of the participation rates
for all families of the State for each month in the fiscal
year.
``(B) Monthly participation rates.--The participation rate
of a State for all families of the State for a month,
expressed as a percentage, is--
``(i) the number of families receiving assistance under the
State program funded under this part that include an adult
who is engaged in work for the month; divided by
``(ii) the amount by which--
``(I) the number of families receiving such assistance
during the month that include an adult receiving such
assistance; exceeds
``(II) the number of families receiving such assistance
that are subject in such month to a penalty described in
subsection (e)(1) but have not been subject to such penalty
for more than 3 months within the preceding 12-month period
(whether or not consecutive).
``(2) 2-parent families.--
``(A) Average monthly rate.--For purposes of subsection
(a)(2), the participation rate for 2-parent families of a
State for a fiscal year is the average of the participation
rates for 2-parent families of the State for each month in
the fiscal year.
``(B) Monthly participation rates.--The participation rate
of a State for 2-parent families of the State for a month
shall be calculated by use of the formula set forth in
paragraph (1)(B), except that in the formula the term `number
of 2-parent families' shall be substituted for the term
`number of families' each place such latter term appears.
``(3) Pro rata reduction of participation rate due to
caseload reductions not required by federal law.--
``(A) In general.--The Secretary shall prescribe
regulations for reducing the minimum participation rate
otherwise required by this section for a fiscal year by the
number of percentage points equal to the number of percentage
points (if any) by which--
``(i) the average monthly number of families receiving
assistance during the fiscal year under the State program
funded under this part is less than
``(ii) the average monthly number of families that received
aid under the State plan approved under part A (as in effect
on September 30, 1995) during fiscal year 1995.
The minimum participation rate shall not be reduced to the
extent that the Secretary determines that the reduction in
the number of families receiving such assistance is required
by Federal law.
``(B) Eligibility changes not counted.--The regulations
described in subparagraph (A) shall not take into account
families that are diverted from a State program funded under
this part as a result of differences in eligibility criteria
under a State program funded under this part and eligibility
criteria under the State program operated under the State
plan approved under part A (as such plan and such part were
in effect on September 30, 1995). Such regulations shall
place the burden on the Secretary to prove that such
families were diverted as a direct result of differences
in such eligibility criteria.
``(4) State option to include individuals receiving
assistance under a tribal family assistance plan.--For
purposes of paragraphs (1)(B) and (2)(B), a State may, at its
option, include families receiving assistance under a tribal
family assistance plan approved under section 412.
``(5) State option for participation requirement
exemptions.--For any fiscal year, a State may, at its option,
not require an individual who is a single custodial parent
caring for a child who has not attained 12 months of age to
engage in work and may disregard such an individual in
determining the participation rates under subsection (a).
``(c) Engaged in Work.--
``(1) All families.--For purposes of subsection
(b)(1)(B)(i), a recipient is engaged in work for a month in a
fiscal year if the recipient is participating in work
activities for at least the minimum average number of hours
per week specified in the following table during the month,
not fewer than 20 hours per week of which are attributable to
an activity described in paragraph (1), (2), (3), (4), (5),
(6), (7), or (8) of subsection (d):
The minimum
``If the month is average number of
in fiscal year: hours per week is:
1996......................................................20
1997......................................................20
1998......................................................20
1999......................................................25
2000 or thereafter........................................30.
``(2) 2-parent families.--For purposes of subsection
(b)(2)(B)(i), an adult is engaged in work for a month in a
fiscal year if the adult is making progress in work
activities for at least 35 hours per week during the month,
not fewer than 30 hours per week of which are attributable to
an activity described in paragraph (1), (2), (3), (4), (5),
(6), (7), or (8) of subsection (d).
``(3) Limitation on number of weeks for which job search
counts as work.--Notwithstanding paragraphs (1) and (2), an
individual shall not be considered to be engaged in work by
virtue of participation in an activity described in
subsection (d)(6), after the individual has participated in
such an activity for 8 weeks in a fiscal year, or if the
participation is for a week that is in a fiscal year and that
immediately follows 4 consecutive weeks of such participation
in the fiscal year. An individual shall be considered to be
participating in such an activity for a week if the
individual participates in such an activity at any time
during the week.
``(4) Limitation on vocational education activities counted
as work.--For purposes of determining monthly participation
rates under paragraphs (1)(B)(i) and (2)(B)(i) of subsection
(b), not more than 20 percent of adults in all families and
in 2-parent families determined to be engaged in work in the
State for a month may meet the work activity requirement
through participation in vocational educational training.
``(5) Single parent with child under age 6 deemed to be
meeting work participation requirements if parent is engaged
in work for 20 hours per week.--For purposes of determining
monthly participation rates under subsection (b)(1)(B)(i), a
recipient in a 1-parent family who is the parent of a child
who has not attained 6 years of age is deemed to be engaged
in work for a month if the recipient is engaged in work
for an average of at least 20 hours per week during the
month.
``(6) Teen head of household who maintains satisfactory
school attendance deemed to be meeting work participation
requirements.--For purposes of determining monthly
participation rates under subsection (b)(1)(B)(i), a
recipient who is a single head of household and has not
attained 20 years of age is deemed to be engaged in work for
a month in a fiscal year if the recipient--
``(A) maintains satisfactory attendance at secondary school
or the equivalent during the month; or
``(B) participates in education directly related to
employment for at least the minimum average number of hours
per week specified in the table set forth in paragraph (1).
``(d) Work Activities Defined.--As used in this section,
the term `work activities' means--
``(1) unsubsidized employment;
``(2) subsidized private sector employment;
``(3) subsidized public sector employment;
``(4) work experience (including work associated with the
refurbishing of publicly assisted housing) if sufficient
private sector employment is not available;
``(5) on-the-job training;
``(6) job search and job readiness assistance;
``(7) community service programs;
``(8) vocational educational training (not to exceed 12
months with respect to any individual);
``(9) job skills training directly related to employment;
``(10) education directly related to employment, in the
case of a recipient who has not received a high school
diploma or a certificate of high school equivalency; and
``(11) satisfactory attendance at secondary school, in the
case of a recipient who has not completed secondary school.
``(e) Penalties Against Individuals.--
``(1) In general.--Except as provided in paragraph (2), if
an adult in a family receiving assistance under the State
program funded under this part refuses to engage in work
required in accordance with this section, the State shall--
``(A) reduce the amount of assistance otherwise payable to
the family pro rata (or more, at the option of the State)
with respect to any period during a month in which the adult
so refuses; or
``(B) terminate such assistance,
subject to such good cause and other exceptions as the State
may establish.
``(2) Exception.--Notwithstanding paragraph (1), a State
may not reduce or terminate assistance under the State
program funded under this part based on a refusal of an adult
to work if the adult is a single custodial parent caring for
a child who has not attained 11 years of age, and the adult
proves that the adult has a demonstrated inability (as
determined by the State) to obtain needed child care, for 1
or more of the following reasons:
``(A) Unavailability of appropriate child care within a
reasonable distance from the individual's home or work site.
``(B) Unavailability or unsuitability of informal child
care by a relative or under other arrangements.
``(C) Unavailability of appropriate and affordable formal
child care arrangements.
``(f) Nondisplacement in Work Activities.--
``(1) In general.--Subject to paragraph (2), an adult in a
family receiving assistance under a State program funded
under this part attributable to funds provided by the Federal
Government may fill a vacant employment position in order to
engage in a work activity described in subsection (d).
``(2) No filling of certain vacancies.--No adult in a work
activity described in subsection (d) which is funded, in
whole or in
[[Page H7849]]
part, by funds provided by the Federal Government shall be
employed or assigned--
``(A) when any other individual is on layoff from the same
or any substantially equivalent job; or
``(B) if the employer has terminated the employment of any
regular employee or otherwise caused an involuntary reduction
of its workforce in order to fill the vacancy so created with
an adult described in paragraph (1).
``(3) No preemption.--Nothing in this subsection shall
preempt or supersede any provision of State or local law that
provides greater protection for employees from displacement.
``(g) Sense of the Congress.--It is the sense of the
Congress that in complying with this section, each State that
operates a program funded under this part is encouraged to
assign the highest priority to requiring adults in 2-parent
families and adults in single-parent families that include
older preschool or school-age children to be engaged in work
activities.
``(h) Sense of the Congress That States Should Impose
Certain Requirements on Noncustodial, Nonsupporting Minor
Parents.--It is the sense of the Congress that the States
should require noncustodial, nonsupporting parents who have
not attained 18 years of age to fulfill community work
obligations and attend appropriate parenting or money
management classes after school.
``(i) Review of Implementation of State Work Programs.--
During fiscal year 1999, the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate shall hold hearings and engage in other
appropriate activities to review the implementation of this
section by the States, and shall invite the Governors of the
States to testify before them regarding such implementation.
Based on such hearings, such Committees may introduce such
legislation as may be appropriate to remedy any problems with
the State programs operated pursuant to this section.
In section 404(d) of the Social Security Act, as proposed
to be added by section 4103(a)(1), strike paragraph (2) and
insert the following:
``(2) Limitation on amount transferable to title xx
programs.--Notwithstanding paragraph (1), not more than \1/3\
of the total amount paid to a State under this part for a
fiscal year that is used to carry out State programs pursuant
to provisions of law specified in paragraph (1) may be used
to carry out State programs pursuant to title XX.
``(3) Applicable rules.--
``(A) In general.--Except as provided in subparagraph (B)
of this paragraph, any amount paid to a State under this part
that is used to carry out a State program pursuant to a
provision of law specified in paragraph (1) shall not be
subject to the requirements of this part, but shall be
subject to the requirements that apply to Federal funds
provided directly under the provision of law to carry out the
program.
``(B) Exception relating to title xx programs.--All amounts
paid to a State under this part that are used to carry out
State programs pursuant to title XX shall be used only for
programs and services to children or their families.
At the end of section 408(a)(8) of the Social Security Act,
as proposed to be added by section 4103(a)(2), add the
following:
``(E) Rule of interpretation.--This part shall not be
interpreted to prohibit any State from expending State funds
not originating with the Federal Government on benefits for
children or families that have become ineligible for
assistance under the State program funded under this part by
reason of subparagraph (A).
In section 409(a)(7)(B) of the Social Security Act, as
proposed to be added by section 4103(a)(1), strike clause
(ii) and insert the following:
``(ii) Applicable percentage.--The term `applicable
percentage' means for fiscal years 1997 through 2001, 80
percent (or, if the State meets the requirements of section
407(a) for the fiscal year, 75 percent) reduced (if
appropriate) in accordance with subparagraph (C)(ii).
In section 1931(a) of the Social Security Act, as proposed
to be inserted by section 4115(a)(2)--
(1) in paragraph (1), strike ``through (4)'' and insert
``through (5)'',
(2) in paragraph (3), strike ``and'' at the end,
(3) in paragraph (4), strike the period at the end and
insert ``; and'', and
(4) insert after paragraph (4) the following:
``(5) a State may terminate medical assistance under this
title for an individual because the individual fails to meet
any requirement imposed pursuant to section 407 if the
individual was eligible for the medical assistance--
``(A) on the basis of receipt of assistance under a State
program funded under part A of title IV, or
``(B) pursuant to paragraph (1), on the basis that the
individual meets the requirements for receipt of aid or
assistance under the State plan under part A of title IV (as
in effect on July 16, 1996).
In paragraph (31)(B) of section 454 of the Social Security
Act, as proposed to be added by section 4347(3)--
(1) strike ``and shall'' and insert ``shall''; and
(2) insert ``, and shall permit the country office of the
State agency administering the State program under this part
which collected such amounts to retain an amount equal to 5
percent of the amount applied to the payment of such
penalties'' before the period.
``SEC. 408. PROHIBITIONS; REQUIREMENTS.
``(a) In General.--
``(1) No assistance for families without a minor child.--A
State to which a grant is made under section 403 shall not
use any part of the grant to provide assistance to a family,
unless the family includes--
``(A) a minor child who resides with a custodial parent or
other adult caretaker relative of the child; or
``(B) a pregnant individual.
``(2) No additional cash assistance for children born to
families receiving assistance.--
``(A) General rule.--A State to which a grant is made under
section 403 shall not use any part of the grant to provide
cash benefits for a minor child who is born to--
``(i) a recipient of assistance under the program operated
under this part; or
``(ii) a person who received such assistance at any time
during the 10-month period ending with the birth of the
child.
``(B) Exception for children born into families with no
other children.--Subparagraph (A) shall not apply to a minor
child who is born into a family that does not include any
other children.
``(C) Exception for vouchers.--Subparagraph (A) shall not
apply to vouchers which are provided in lieu of cash benefits
and which may be used only to pay for particular goods and
services specified by the State as suitable for the care of
the child involved.
``(D) Exception for rape or incest.--Subparagraph (A) shall
not apply with respect to a child who is born as a result of
rape or incest.
``(E) State election to opt out.--Subparagraph (A) shall
not apply to a State if State law specifically exempts the
State program funded under this part from the application of
subparagraph (A).
``(F) Substitution of family caps in effect under
waivers.--Subparagraph (A) shall not apply to a State--
``(i) if, as of the date of the enactment of this part,
there is in effect a waiver approved by the Secretary under
section 1115 which permits the State to deny aid under the
State plan approved under part A of this title (as in effect
without regard to the amendments made by subtitle A of the
Personal Responsibility and Work Opportunity Act of 1996) to
a family by reason of the birth of a child to a family member
otherwise eligible for such aid; and
``(ii) for so long as the State continues to implement such
policy under the State program funded under this part, under
rules prescribed by the State.
``(3) Reduction or elimination of assistance for
noncooperation in establishing paternity or obtaining child
support.--If the agency responsible for administering the
State plan approved under part D determines that an
individual is not cooperating with the State in establishing
paternity or in establishing, modifying, or enforcing a
support order with respect to a child of the individual, and
the individual does not qualify for any good cause or other
exception established by the State pursuant to section
454(29), then the State--
``(A) shall deduct from the assistance that would otherwise
be provided to the family of the individual under the State
program funded under this part the share of such assistance
attributable to the individual; and
``(B) may deny the family any assistance under the State
program.
``(4) No assistance for families not assigning certain
support rights to the state.--
``(A) In general.--A State to which a grant is made under
section 403 shall require, as a condition of providing
assistance to a family under the State program funded under
this part, that a member of the family assign to the State
any rights the family member may have (on behalf of the
family member or of any other person for whom the family
member has applied for or is receiving such assistance) to
support from any other person, not exceeding the total amount
of assistance so provided to the family, which accrue (or
have accrued) before the date the family leaves the program,
which assignment, on and after the date the family leaves the
program, shall not apply with respect to any support (other
than support collected pursuant to section 464) which accrued
before the family received such assistance and which the
State has not collected by--
``(i) September 30, 2000, if the assignment is executed on
or after October 1, 1997, and before October 1, 2000; or
``(ii) the date the family leaves the program, if the
assignment is executed on or after October 1, 2000.
``(B) Limitation.--A State to which a grant is made under
section 403 shall not require, as a condition of providing
assistance to any family under the State program funded under
this part, that a member of the family assign to the State
any rights to support described in subparagraph (A) which
accrue after the date the family leaves the program.
``(5) No assistance for teenage parents who do not attend
high school or other equivalent training program.--A State to
which a grant is made under section 403 shall not use any
part of the grant to provide assistance to an individual who
has not attained 18 years of age, is not married, has a minor
child at least 12 weeks of age in his or her care, and has
not successfully completed a high-school education (or its
equivalent), if the individual does not participate in--
[[Page H7850]]
``(A) educational activities directed toward the attainment
of a high school diploma or its equivalent; or
``(B) an alternative educational or training program that
has been approved by the State.
``(6) No assistance for teenage parents not living in
adult-supervised settings.--
``(A) In general.--
``(i) Requirement.--Except as provided in subparagraph (B),
a State to which a grant is made under section 403 shall not
use any part of the grant to provide assistance to an
individual described in clause (ii) of this subparagraph if
the individual and the minor child referred to in clause
(ii)(II) do not reside in a place of residence maintained by
a parent, legal guardian, or other adult relative of the
individual as such parent's, guardian's, or adult
relative's own home.
``(ii) Individual described.-- For purposes of clause (i),
an individual described in this clause is an individual who--
``(I) has not attained 18 years of age; and
``(II) is not married, and has a minor child in his or her
care.
``(B) Exception.--
``(i) Provision of, or assistance in locating, adult-
supervised living arrangement.--In the case of an individual
who is described in clause (ii), the State agency referred to
in section 402(a)(4) shall provide, or assist the individual
in locating, a second chance home, maternity home, or other
appropriate adult-supervised supportive living arrangement,
taking into consideration the needs and concerns of the
individual, unless the State agency determines that the
individual's current living arrangement is appropriate, and
thereafter shall require that the individual and the minor
child referred to in subparagraph (A)(ii)(II) reside in such
living arrangement as a condition of the continued receipt of
assistance under the State program funded under this part
attributable to funds provided by the Federal Government (or
in an alternative appropriate arrangement, should
circumstances change and the current arrangement cease to be
appropriate).
``(ii) Individual described.--For purposes of clause (i),
an individual is described in this clause if the individual
is described in subparagraph (A)(ii), and--
``(I) the individual has no parent, legal guardian or other
appropriate adult relative described in subclause (II) of his
or her own who is living or whose whereabouts are known;
``(II) no living parent, legal guardian, or other
appropriate adult relative, who would otherwise meet
applicable State criteria to act as the individual's legal
guardian, of such individual allows the individual to live in
the home of such parent, guardian, or relative;
``(III) the State agency determines that--
``(aa) the individual or the minor child referred to in
subparagraph (A)(ii)(II) is being or has been subjected to
serious physical or emotional harm, sexual abuse, or
exploitation in the residence of the individual's own parent
or legal guardian; or
``(bb) substantial evidence exists of an act or failure to
act that presents an imminent or serious harm if the
individual and the minor child lived in the same residence
with the individual's own parent or legal guardian; or
``(IV) the State agency otherwise determines that it is in
the best interest of the minor child to waive the requirement
of subparagraph (A) with respect to the individual or the
minor child.
``(iii) Second-chance home.--For purposes of this
subparagraph, the term `second-chance home' means an entity
that provides individuals described in clause (ii) with a
supportive and supervised living arrangement in which such
individuals are required to learn parenting skills, including
child development, family budgeting, health and nutrition,
and other skills to promote their long-term economic
independence and the well-being of their children.
``(7) No medical services.--
``(A) In general.--Except as provided in subparagraph (B),
a State to which a grant is made under section 403 shall not
use any part of the grant to provide medical services.
``(B) Exception for family planning services.--As used in
subparagraph (A), the term `medical services' does not
include family planning services.
``(8) No assistance for more than 5 years.--
``(A) In general.--Except as provided in subparagraphs (B)
and (C), a State to which a grant is made under section 403
shall not use any part of the grant to provide assistance to
a family that includes an adult who has received assistance
under any State program funded under this part attributable
to funds provided by the Federal Government, for 60 months
(whether or not consecutive) after the date the State program
funded under this part commences.
``(B) Minor child exception.--In determining the number of
months for which an individual who is a parent or pregnant
has received assistance under the State program funded under
this part, the State shall disregard any month for which such
assistance was provided with respect to the individual and
during which the individual was--
``(i) a minor child; and
``(ii) not the head of a household or married to the head
of a household.
``(C) Hardship exception.--
``(i) In general.--The State may exempt a family from the
application of subparagraph (A) by reason of hardship or if
the family includes an individual who has been battered or
subjected to extreme cruelty.
``(ii) Limitation.--The number of families with respect to
which an exemption made by a State under clause (i) is in
effect for a fiscal year shall not exceed 20 percent of the
average monthly number of families to which assistance is
provided under the State program funded under this part.
``(iii) Battered or subject to extreme cruelty defined.--
For purposes of clause (i), an individual has been battered
or subjected to extreme cruelty if the individual has been
subjected to--
``(I) physical acts that resulted in, or threatened to
result in, physical injury to the individual;
``(II) sexual abuse;
``(III) sexual activity involving a dependent child;
``(IV) being forced as the caretaker relative of a
dependent child to engage in nonconsensual sexual acts or
activities;
``(V) threats of, or attempts at, physical or sexual abuse;
``(VI) mental abuse; or
``(VII) neglect or deprivation of medical care.
``(D) Rule of interpretation.--Subparagraph (A) shall not
be interpreted to require any State to provide assistance to
any individual for any period of time under the State program
funded under this part.
``(9) Denial of assistance for 10 years to a person found
to have fraudulently misrepresented residence in order to
obtain assistance in 2 or more states.--A State to which a
grant is made under section 403 shall not use any part of the
grant to provide cash assistance to an individual during the
10-year period that begins on the date the individual is
convicted in Federal or State court of having made a
fraudulent statement or representation with respect to the
place of residence of the individual in order to receive
assistance simultaneously from 2 or more States under
programs that are funded under this title, title XIX, or the
Food Stamp Act of 1977, or benefits in 2 or more States under
the supplemental security income program under title XVI. The
preceding sentence shall not apply with respect to a
conviction of an individual, for any month beginning after
the President of the United States grants a pardon with
respect to the conduct which was the subject of the
conviction.
``(10) Denial of assistance for fugitive felons and
probation and parole violators.--
``(A) In general.--A State to which a grant is made under
section 403 shall not use any part of the grant to provide
assistance to any individual who is--
``(i) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the place
from which the individual flees, for a crime, or an attempt
to commit a crime, which is a felony under the laws of the
place from which the individual flees, or which, in the case
of the State of New Jersey, is a high misdemeanor under the
laws of such State; or
``(ii) violating a condition of probation or parole imposed
under Federal or State law.
The preceding sentence shall not apply with respect to
conduct of an individual, for any month beginning after the
President of the United States grants a pardon with respect
to the conduct.
``(B) Exchange of information with law enforcement
agencies.--If a State to which a grant is made under section
403 establishes safeguards against the use or disclosure of
information about applicants or recipients of assistance
under the State program funded under this part, the
safeguards shall not prevent the State agency administering
the program from furnishing a Federal, State, or local law
enforcement officer, upon the request of the officer, with
the current address of any recipient if the officer furnishes
the agency with the name of the recipient and notifies the
agency that--
``(i) the recipient--
``(I) is described in subparagraph (A); or
``(II) has information that is necessary for the officer to
conduct the official duties of the officer; and
``(ii) the location or apprehension of the recipient is
within such official duties.
``(11) Denial of assistance for minor children who are
absent from the home for a significant period.--
``(A) In general.--A State to which a grant is made under
section 403 shall not use any part of the grant to provide
assistance for a minor child who has been, or is expected by
a parent (or other caretaker relative) of the child to be,
absent from the home for a period of 45 consecutive days or,
at the option of the State, such period of not less than 30
and not more than 180 consecutive days as the State may
provide for in the State plan submitted pursuant to section
402.
``(B) State authority to establish good cause exceptions.--
The State may establish such good cause exceptions to
subparagraph (A) as the State considers appropriate if such
exceptions are provided for in the State plan submitted
pursuant to section 402.
``(C) Denial of assistance for relative who fails to notify
state agency of absence of child.--A State to which a grant
is made under section 403 shall not use any part of the grant
to provide assistance for an individual who is a parent (or
other caretaker relative) of a minor child and who fails to
notify the agency administering the State program funded
under this part of the absence of the minor child from the
home for
[[Page H7851]]
the period specified in or provided for pursuant to
subparagraph (A), by the end of the 5-day period that begins
with the date that it becomes clear to the parent (or
relative) that the minor child will be absent for such period
so specified or provided for.
``(12) Income security payments not to be disregarded in
determining the amount of assistance to be provided to a
family.--If a State to which a grant is made under section
403 uses any part of the grant to provide assistance for any
individual who is receiving benefits, or on behalf of whom
benefits are paid, under a State plan for old-age assistance
approved under section 2, under section 202, 205(j)(1), 223,
or 228, under a State program funded under part E that
provides cash payments for foster care, or under the
supplemental security income program under title XVI, then
the State may disregard the payment in determining the amount
of assistance to be provided under the State program funded
under this part, from funds provided by the Federal
Government, to the family of which the individual is a
member.
``(13) Medical assistance required to be provided for 1
year for families becoming ineligible for cash assistance
under this part due to increased earnings from employment.--A
State to which a grant is made under section 403 shall take
such action as may be necessary to ensure that, if an
individual or family becomes ineligible to receive cash
assistance under the State program funded under this part as
a result of increased earnings from employment, having
received such assistance in at least 3 of the 6 months
immediately preceding the month in which such ineligibility
begins, the individual (or in the case of a family, each
individual in the family) shall be eligible for medical
assistance under the State's plan approved under title XIX
during the immediately succeeding 12-month period for so long
as family income (as defined by the State), excluding any
refund of Federal income taxes made by reason of section 32
of the Internal Revenue Code of 1986 (relating to earned
income tax credit) and any payment made by an employer under
section 3507 of such Code (relating to advance payment of
earned income credit), is less than the poverty line, and
that the family will be appropriately notified of such
eligibility.
``(14) Medical assistance required to be provided for 4
months for families becoming ineligible for cash assistance
under this part due to collection of child support.--A State
to which a grant is made under section 403 shall take such
action as may be necessary to ensure that, if any individual
or family becomes ineligible to receive cash assistance under
the State program funded under this part as a result of the
collection or increased collection of child or spousal
support under part D, having received such assistance in at
least 3 of the 6 months immediately preceding the month in
which such ineligibility begins, the individual (or, in the
case of a family, each individual in the family) shall be
eligible for medical assistance under the State's plan
approved under title XIX during the 4-month period beginning
with the month in which such ineligibility begins.
``(15) Medical assistance required to be provided for
certain individuals.--A State to which a grant is made under
section 403 shall take such action as may be necessary to
ensure that, under section 1931, individuals who would be
eligible for cash assistance under the State plan approved
under this part (as in effect as of July 16, 1996) if such
State plan were still in effect are eligible for medical
assistance under the State's plan approved under title XIX.
``(b) Individual Responsibility Plans.--
``(1) Assessment.--The State agency responsible for
administering the State program funded under this part shall
make an initial assessment of the skills, prior work
experience, and employability of each recipient of assistance
under the program who--
``(A) has attained 18 years of age; or
``(B) has not completed high school or obtained a
certificate of high school equivalency, and is not attending
secondary school.
``(2) Contents of plans.--
``(A) In general.--On the basis of the assessment made
under subsection (a) with respect to an individual, the State
agency, in consultation with the individual, may develop an
individual responsibility plan for the individual, which--
``(i) sets forth an employment goal for the individual and
a plan for moving the individual immediately into private
sector employment;
``(ii) sets forth the obligations of the individual, which
may include a requirement that the individual attend school,
maintain certain grades and attendance, keep school age
children of the individual in school, immunize children,
attend parenting and money management classes, or do other
things that will help the individual become and remain
employed in the private sector;
``(iii) to the greatest extent possible is designed to move
the individual into whatever private sector employment the
individual is capable of handling as quickly as possible, and
to increase the responsibility and amount of work the
individual is to handle over time;
``(iv) describes the services the State will provide the
individual so that the individual will be able to obtain and
keep employment in the private sector, and describe the job
counseling and other services that will be provided by the
State; and
``(v) may require the individual to undergo appropriate
substance abuse treatment.
``(B) Timing.--The State agency may comply with paragraph
(1) with respect to an individual--
``(i) within 90 days (or, at the option of the State, 180
days) after the effective date of this part, in the case of
an individual who, as of such effective date, is a recipient
of aid under the State plan approved under part A (as in
effect immediately before such effective date); or
``(ii) within 30 days (or, at the option of the State, 90
days) after the individual is determined to be eligible for
such assistance, in the case of any other individual.
``(3) Penalty for noncompliance by individual.--In addition
to any other penalties required under the State program
funded under this part, the State may reduce, by such amount
as the State considers appropriate, the amount of assistance
otherwise payable under the State program to a family that
includes an individual who fails without good cause to comply
with an individual responsibility plan signed by the
individual.
``(4) State discretion.--The exercise of the authority of
this subsection shall be within the sole discretion of the
State.
``(c) Aliens.--For special rules relating to the treatment
of aliens, see section 4402 of the Personal Responsibility
and Work Opportunity Act of 1996.
``SEC. 409. PENALTIES.
``(a) In General.--Subject to this section:
``(1) Use of grant in violation of this part.--
``(A) General penalty.--If an audit conducted under chapter
75 of title 31, United States Code, finds that an amount paid
to a State under section 403 for a fiscal year has been used
in violation of this part, the Secretary shall reduce the
grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year quarter by the amount so
used.
``(B) Enhanced penalty for intentional violations.--If the
State does not prove to the satisfaction of the Secretary
that the State did not intend to use the amount in violation
of this part, the Secretary shall further reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year quarter by an amount
equal to 5 percent of the State family assistance grant.
``(2) Failure to submit required report.--
``(A) In general.--If the Secretary determines that a State
has not, within 1 month after the end of a fiscal quarter,
submitted the report required by section 411(a) for the
quarter, the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the immediately succeeding
fiscal year by an amount equal to 4 percent of the State
family assistance grant.
``(B) Rescission of penalty.--The Secretary shall rescind a
penalty imposed on a State under subparagraph (A) with
respect to a report if the State submits the report before
the end of the fiscal quarter that immediately succeeds the
fiscal quarter for which the report was required.
``(3) Failure to satisfy minimum participation rates.--
``(A) In general.--If the Secretary determines that a State
to which a grant is made under section 403 for a fiscal year
has failed to comply with section 407(a) for the fiscal year,
the Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately succeeding fiscal
year by an amount equal to not more than 5 percent of the
State family assistance grant.
``(B) Penalty based on severity of failure.--The Secretary
shall impose reductions under subparagraph (A) based on the
degree of noncompliance, and may reduce the penalty if the
State experiences an economic downturn that leads to
significantly greater unemployment.
``(4) Failure to participate in the income and eligibility
verification system.--If the Secretary determines that a
State program funded under this part is not participating
during a fiscal year in the income and eligibility
verification system required by section 1137, the Secretary
shall reduce the grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal year by an
amount equal to not more than 2 percent of the State family
assistance grant.
``(5) Failure to comply with paternity establishment and
child support enforcement requirements under part d.--
Notwithstanding any other provision of this Act, if the
Secretary determines that the State agency that administers a
program funded under this part does not enforce the penalties
requested by the agency administering part D against
recipients of assistance under the State program who fail to
cooperate in establishing paternity or in establishing,
modifying, or enforcing a child support order in accordance
with such part and who do not qualify for any good cause or
other exception established by the State under section
454(29), the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the immediately succeeding
fiscal year (without regard to this section) by not more than
5 percent.
``(6) Failure to timely repay a federal loan fund for state
welfare programs.--If the Secretary determines that a State
has failed to repay any amount borrowed from the Federal Loan
Fund for State Welfare Programs established under section 406
within the period of maturity applicable to the loan, plus
any interest owed on the loan, the Secretary shall reduce the
grant payable to
[[Page H7852]]
the State under section 403(a)(1) for the immediately
succeeding fiscal year quarter (without regard to this
section) by the outstanding loan amount, plus the interest
owed on the outstanding amount. The Secretary shall not
forgive any outstanding loan amount or interest owed on the
outstanding amount.
``(7) Failure of any state to maintain certain level of
historic effort.--
``(A) In general.--The Secretary shall reduce the grant
payable to the State under section 403(a)(1) for fiscal year
1998, 1999, 2000, 2001, or 2002 by the amount (if any) by
which qualified State expenditures for the then immediately
preceding fiscal year are less than the applicable percentage
of historic State expenditures with respect to such preceding
fiscal year.
``(B) Definitions.--As used in this paragraph:
``(i) Qualified state expenditures.--
``(I) In general.--The term `qualified State expenditures'
means, with respect to a State and a fiscal year, the total
expenditures by the State during the fiscal year, under all
State programs, for any of the following with respect to
eligible families:
``(aa) Cash assistance.
``(bb) Child care assistance.
``(cc) Educational activities designed to increase self-
sufficiency, job training, and work, excluding any
expenditure for public education in the State except
expenditures which involve the provision of services or
assistance to a member of an eligible family which is not
generally available to persons who are not members of an
eligible family.
``(dd) Administrative costs in connection with the matters
described in items (aa), (bb), (cc), and (ee), but only to
the extent that such costs do not exceed 15 percent of the
total amount of qualified State expenditures for the fiscal
year.
``(ee) Any other use of funds allowable under section
404(a)(1).
``(II) Exclusion of transfers from other state and local
programs.--Such term does not include expenditures under any
State or local program during a fiscal year, except to the
extent that--
``(aa) the expenditures exceed the amount expended under
the State or local program in the fiscal year most recently
ending before the date of the enactment of this part; or
``(bb) the State is entitled to a payment under former
section 403 (as in effect immediately before such date of
enactment) with respect to the expenditures.
``(III) Eligible families.--As used in subclause (I), the
term `eligible families' means families eligible for
assistance under the State program funded under this part,
and families that would be eligible for such assistance but
for the application of section 408(a)(8) of this Act or
section 4402 of the Personal Responsibility and Work
Opportunity Act of 1996.
``(ii) Applicable percentage.--The term `applicable
percentage' means for fiscal years 1997 through 2001, 75
percent reduced (if appropriate) in accordance with
subparagraph (C)(ii).
``(iii) Historic state expenditures.--The term `historic
State expenditures' means, with respect to a State, the
lesser of--
``(I) the expenditures by the State under parts A and F (as
in effect during fiscal year 1994) for fiscal year 1994; or
``(II) the amount which bears the same ratio to the amount
described in subclause (I) as--
``(aa) the State family assistance grant, plus the total
amount required to be paid to the State under former section
403 for fiscal year 1994 with respect to amounts expended by
the State for child care under subsection (g) or (i) of
section 402 (as in effect during fiscal year 1994); bears
to
``(bb) the total amount required to be paid to the State
under former section 403 (as in effect during fiscal year
1994) for fiscal year 1994.
Such term does not include any expenditures under the State
plan approved under part A (as so in effect) on behalf of
individuals covered by a tribal family assistance plan
approved under section 412, as determined by the Secretary.
``(iv) Expenditures by the state.--The term `expenditures
by the State' does not include--
``(I) any expenditures from amounts made available by the
Federal Government;
``(II) State funds expended for the medicaid program under
title XIX; or
``(III) any State funds which are used to match Federal
funds or are expended as a condition of receiving Federal
funds under Federal programs other than under this part.
``(C) Applicable percentage reduced for high performance
states.--
``(i) Determination of high performance states.--The
Secretary shall use the formula developed under section
403(a)(4)(C) to assign a score to each eligible State that
represents the performance of the State program funded under
this part for each fiscal year, and shall prescribe a
performance threshold which the Secretary shall use to
determine whether to reduce the applicable percentage with
respect to any eligible State for a fiscal year.
``(ii) Reduction proportional to performance.--The
Secretary shall reduce the applicable percentage for a fiscal
year with respect to each eligible State by an amount which
is directly proportional to the amount (if any) by which the
score assigned to the State under clause (i) for the
immediately preceding fiscal year exceeds the performance
threshold prescribed under clause (i) for such preceding
fiscal year, subject to clause (iii).
``(iii) Limitation on reduction.--The applicable percentage
for a fiscal year with respect to a State may not be reduced
by more than 8 percentage points under this subparagraph.
``(8) Substantial noncompliance of state child support
enforcement program with requirements of part d.--
``(A) In general.--If a State program operated under part D
is found as a result of a review conducted under section
452(a)(4) not to have complied substantially with the
requirements of such part for any quarter, and the Secretary
determines that the program is not complying substantially
with such requirements at the time the finding is made, the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the quarter and each subsequent quarter
that ends before the 1st quarter throughout which the program
is found to be in substantial compliance with such
requirements by--
``(i) not less than 1 nor more than 2 percent;
``(ii) not less than 2 nor more than 3 percent, if the
finding is the 2nd consecutive such finding made as a result
of such a review; or
``(iii) not less than 3 nor more than 5 percent, if the
finding is the 3rd or a subsequent consecutive such finding
made as a result of such a review.
``(B) Disregard of noncompliance which is of a technical
nature.--For purposes of subparagraph (A) and section
452(a)(4), a State which is not in full compliance with the
requirements of this part shall be determined to be in
substantial compliance with such requirements only if the
Secretary determines that any noncompliance with such
requirements is of a technical nature which does not
adversely affect the performance of the State's program
operated under part D.
``(9) Failure of state receiving amounts from contingency
fund to maintain 100 percent of historic effort.--If, at the
end of any fiscal year during which amounts from the
Contingency Fund for State Welfare Programs have been paid to
a State, the Secretary finds that the expenditures under the
State program funded under this part for the fiscal year are
less than 100 percent of historic State expenditures (as
defined in paragraph (8)(B)(iii) of this subsection), the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year
by the total of the amounts so paid to the State.
``(10) Failure to expend additional state funds to replace
grant reductions.--If the grant payable to a State under
section 403(a)(1) for a fiscal year is reduced by reason of
this subsection, the State shall, during the immediately
succeeding fiscal year, expend under the State program funded
under this part an amount equal to the total amount of such
reductions.
``(11) Failure to provide medical assistance to families
becoming ineligible for cash assistance under this part due
to increased earnings from employment or collection of child
support.--
``(A) In general.--If the Secretary determines that a State
program funded under this part is not in compliance with
paragraph (13) or (14) of section 408(a) for a quarter, the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year
by an amount equal to not more than 5 percent of the State
family assistance grant.
``(B) Penalty based on severity of failure.--The Secretary
shall impose reductions under subparagraph (A) based on the
degree of noncompliance.
``(b) Reasonable Cause Exception.--
``(1) In general.--The Secretary may not impose a penalty
on a State under subsection (a) with respect to a requirement
if the Secretary determines that the State has reasonable
cause for failing to comply with the requirement.
``(2) Exception.--Paragraph (1) of this subsection shall
not apply to any penalty under paragraph (7), (8), or (11) of
subsection (a).
``(c) Corrective Compliance Plan.--
``(1) In general.--
``(A) Notification of violation.--Before imposing a penalty
against a State under subsection (a) with respect to a
violation of this part, the Secretary shall notify the State
of the violation and allow the State the opportunity to enter
into a corrective compliance plan in accordance with this
subsection which outlines how the State will correct the
violation and how the State will insure continuing compliance
with this part.
``(B) 60-day period to propose a corrective compliance
plan.--During the 60-day period that begins on the date the
State receives a notice provided under subparagraph (A) with
respect to a violation, the State may submit to the Federal
Government a corrective compliance plan to correct the
violation.
``(C) Consultation about modifications.--During the 60-day
period that begins with the date the Secretary receives a
corrective compliance plan submitted by a State in accordance
with subparagraph (B), the Secretary may consult with the
State on modifications to the plan.
``(D) Acceptance of plan.-- A corrective compliance plan
submitted by a State in accordance with subparagraph (B) is
deemed to be accepted by the Secretary if the Secretary does
not accept or reject the plan during 60-
[[Page H7853]]
day period that begins on the date the plan is submitted.
``(2) Effect of correcting violation.--The Secretary may
not impose any penalty under subsection (a) with respect to
any violation covered by a State corrective compliance plan
accepted by the Secretary if the State corrects the violation
pursuant to the plan.
``(3) Effect of failing to correct violation.--The
Secretary shall assess some or all of a penalty imposed on a
State under subsection (a) with respect to a violation if the
State does not, in a timely manner, correct the violation
pursuant to a State corrective compliance plan accepted by
the Secretary.
``(4) Inapplicability to failure to timely repay a federal
loan fund for a state welfare program.--This subsection shall
not apply to the imposition of a penalty against a State
under subsection (a)(6).
``(d) Limitation on Amount of Penalty.--
``(1) In general.--In imposing the penalties described in
subsection (a), the Secretary shall not reduce any quarterly
payment to a State by more than 25 percent.
``(2) Carryforward of unrecovered penalties.--To the extent
that paragraph (1) of this subsection prevents the Secretary
from recovering during a fiscal year the full amount of
penalties imposed on a State under subsection (a) of this
section for a prior fiscal year, the Secretary shall apply
any remaining amount of such penalties to the grant payable
to the State under section 403(a)(1) for the immediately
succeeding fiscal year.
``SEC. 410. APPEAL OF ADVERSE DECISION.
``(a) In General.--Within 5 days after the date the
Secretary takes any adverse action under this part with
respect to a State, the Secretary shall notify the chief
executive officer of the State of the adverse action,
including any action with respect to the State plan submitted
under section 402 or the imposition of a penalty under
section 409.
``(b) Administrative Review.--
``(1) In general.--Within 60 days after the date a State
receives notice under subsection (a) of an adverse action,
the State may appeal the action, in whole or in part, to the
Departmental Appeals Board established in the Department of
Health and Human Services (in this section referred to as the
`Board') by filing an appeal with the Board.
``(2) Procedural rules.--The Board shall consider an appeal
filed by a State under paragraph (1) on the basis of such
documentation as the State may submit and as the Board may
require to support the final decision of the Board. In
deciding whether to uphold an adverse action or any portion
of such an action, the Board shall conduct a thorough review
of the issues and take into account all relevant evidence.
The Board shall make a final determination with respect to an
appeal filed under paragraph (1) not less than 60 days after
the date the appeal is filed.
``(c) Judicial Review of Adverse Decision.--
``(1) In general.--Within 90 days after the date of a final
decision by the Board under this section with respect to an
adverse action taken against a State, the State may obtain
judicial review of the final decision (and the findings
incorporated into the final decision) by filing an action
in--
``(A) the district court of the United States for the
judicial district in which the principal or headquarters
office of the State agency is located; or
``(B) the United States District Court for the District of
Columbia.
``(2) Procedural rules.--The district court in which an
action is filed under paragraph (1) shall review the final
decision of the Board on the record established in the
administrative proceeding, in accordance with the standards
of review prescribed by subparagraphs (A) through (E) of
section 706(2) of title 5, United States Code. The review
shall be on the basis of the documents and supporting data
submitted to the Board.
``SEC. 411. DATA COLLECTION AND REPORTING.
``(a) Quarterly Reports by States.--
``(1) General reporting requirement.--
``(A) Contents of report.--Each eligible State shall
collect on a monthly basis, and report to the Secretary on a
quarterly basis, the following disaggregated case record
information on the families receiving assistance under the
State program funded under this part:
``(i) The county of residence of the family.
``(ii) Whether a child receiving such assistance or an
adult in the family is disabled.
``(iii) The ages of the members of such families.
``(iv) The number of individuals in the family, and the
relation of each family member to the youngest child in the
family.
``(v) The employment status and earnings of the employed
adult in the family.
``(vi) The marital status of the adults in the family,
including whether such adults have never married, are
widowed, or are divorced.
``(vii) The race and educational status of each adult in
the family.
``(viii) The race and educational status of each child in
the family.
``(ix) Whether the family received subsidized housing,
medical assistance under the State plan approved under title
XIX, food stamps, or subsidized child care, and if the latter
2, the amount received.
``(x) The number of months that the family has received
each type of assistance under the program.
``(xi) If the adults participated in, and the number of
hours per week of participation in, the following activities:
``(I) Education.
``(II) Subsidized private sector employment.
``(III) Unsubsidized employment.
``(IV) Public sector employment, work experience, or
community service.
``(V) Job search.
``(VI) Job skills training or on-the-job training.
``(VII) Vocational education.
``(xii) Information necessary to calculate participation
rates under section 407.
``(xiii) The type and amount of assistance received under
the program, including the amount of and reason for any
reduction of assistance (including sanctions).
``(xiv) Any amount of unearned income received by any
member of the family.
``(xv) The citizenship of the members of the family.
``(xvi) From a sample of closed cases, whether the family
left the program, and if so, whether the family left due to--
``(I) employment;
``(II) marriage;
``(III) the prohibition set forth in section 408(a)(8);
``(IV) sanction; or
``(V) State policy.
``(B) Use of estimates.--
``(i) Authority.--A State may comply with subparagraph (A)
by submitting an estimate which is obtained through the use
of scientifically acceptable sampling methods approved by the
Secretary.
``(ii) Sampling and other methods.--The Secretary shall
provide the States with such case sampling plans and data
collection procedures as the Secretary deems necessary to
produce statistically valid estimates of the performance of
State programs funded under this part. The Secretary may
develop and implement procedures for verifying the quality of
data submitted by the States.
``(2) Report on use of federal funds to cover
administrative costs and overhead.--The report required by
paragraph (1) for a fiscal quarter shall include a statement
of the percentage of the funds paid to the State under this
part for the quarter that are used to cover administrative
costs or overhead.
``(3) Report on state expenditures on programs for needy
families.--The report required by paragraph (1) for a fiscal
quarter shall include a statement of the total amount
expended by the State during the quarter on programs for
needy families.
``(4) Report on noncustodial parents participating in work
activities.--The report required by paragraph (1) for a
fiscal quarter shall include the number of noncustodial
parents in the State who participated in work activities (as
defined in section 407(d)) during the quarter.
``(5) Report on transitional services.--The report required
by paragraph (1) for a fiscal quarter shall include the total
amount expended by the State during the quarter to provide
transitional services to a family that has ceased to receive
assistance under this part because of employment, along with
a description of such services.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to define the data elements
with respect to which reports are required by this
subsection.
``(b) Annual Reports to the Congress by the Secretary.--Not
later than 6 months after the end of fiscal year 1997, and
each fiscal year thereafter, the Secretary shall transmit to
the Congress a report describing--
``(1) whether the States are meeting--
``(A) the participation rates described in section 407(a);
and
``(B) the objectives of--
``(i) increasing employment and earnings of needy families,
and child support collections; and
``(ii) decreasing out-of-wedlock pregnancies and child
poverty;
``(2) the demographic and financial characteristics of
families applying for assistance, families receiving
assistance, and families that become ineligible to receive
assistance;
``(3) the characteristics of each State program funded
under this part; and
``(4) the trends in employment and earnings of needy
families with minor children living at home.
``SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN
TRIBES.
``(a) Grants for Indian Tribes.--
``(1) Tribal family assistance grant.--
``(A) In general.--For each of fiscal years 1997, 1998,
1999, and 2000, the Secretary shall pay to each Indian tribe
that has an approved tribal family assistance plan a tribal
family assistance grant for the fiscal year in an amount
equal to the amount determined under subparagraph (B), and
shall reduce the grant payable under section 403(a)(1) to any
State in which lies the service area or areas of the Indian
tribe by that portion of the amount so determined that is
attributable to expenditures by the State.
``(B) Amount determined.--
``(i) In general.--The amount determined under this
subparagraph is an amount equal to the total amount of the
Federal payments to a State or States under section 403 (as
in effect during such fiscal year) for fiscal year 1994
attributable to expenditures (other than child care
expenditures) by the State or States under parts A and F
(as so in effect) for fiscal year 1994 for Indian families
residing in the service area or areas identified by
[[Page H7854]]
the Indian tribe pursuant to subsection (b)(1)(C) of this
section.
``(ii) Use of state submitted data.--
``(I) In general.--The Secretary shall use State submitted
data to make each determination under clause (i).
``(II) Disagreement with determination.--If an Indian tribe
or tribal organization disagrees with State submitted data
described under subclause (I), the Indian tribe or tribal
organization may submit to the Secretary such additional
information as may be relevant to making the determination
under clause (i) and the Secretary may consider such
information before making such determination.
``(2) Grants for indian tribes that received jobs funds.--
``(A) In general.--The Secretary shall pay to each eligible
Indian tribe for each of fiscal years 1996, 1997, 1998, 1999,
2000, and 2001 a grant in an amount equal to the amount
received by the Indian tribe in fiscal year 1994 under
section 482(i) (as in effect during fiscal year 1994).
``(B) Eligible indian tribe.--For purposes of subparagraph
(A), the term `eligible Indian tribe' means an Indian tribe
or Alaska Native organization that conducted a job
opportunities and basic skills training program in fiscal
year 1995 under section 482(i) (as in effect during fiscal
year 1995).
``(C) Use of grant.--Each Indian tribe to which a grant is
made under this paragraph shall use the grant for the purpose
of operating a program to make work activities available to
members of the Indian tribe.
``(D) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated $7,638,474 for each fiscal year specified in
subparagraph (A) for grants under subparagraph (A).
``(b) 3-Year Tribal Family Assistance Plan.--
``(1) In general.--Any Indian tribe that desires to receive
a tribal family assistance grant shall submit to the
Secretary a 3-year tribal family assistance plan that--
``(A) outlines the Indian tribe's approach to providing
welfare-related services for the 3-year period, consistent
with this section;
``(B) specifies whether the welfare-related services
provided under the plan will be provided by the Indian tribe
or through agreements, contracts, or compacts with
intertribal consortia, States, or other entities;
``(C) identifies the population and service area or areas
to be served by such plan;
``(D) provides that a family receiving assistance under the
plan may not receive duplicative assistance from other State
or tribal programs funded under this part;
``(E) identifies the employment opportunities in or near
the service area or areas of the Indian tribe and the manner
in which the Indian tribe will cooperate and participate in
enhancing such opportunities for recipients of assistance
under the plan consistent with any applicable State
standards; and
``(F) applies the fiscal accountability provisions of
section 5(f)(1) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450c(f)(1)), relating to
the submission of a single-agency audit report required by
chapter 75 of title 31, United States Code.
``(2) Approval.--The Secretary shall approve each tribal
family assistance plan submitted in accordance with paragraph
(1).
``(3) Consortium of tribes.--Nothing in this section shall
preclude the development and submission of a single tribal
family assistance plan by the participating Indian tribes of
an intertribal consortium.
``(c) Minimum Work Participation Requirements and Time
Limits.--The Secretary, with the participation of Indian
tribes, shall establish for each Indian tribe receiving a
grant under this section minimum work participation
requirements, appropriate time limits for receipt of welfare-
related services under the grant, and penalties against
individuals--
``(1) consistent with the purposes of this section;
``(2) consistent with the economic conditions and resources
available to each tribe; and
``(3) similar to comparable provisions in section 407(d).
``(d) Emergency Assistance.--Nothing in this section shall
preclude an Indian tribe from seeking emergency assistance
from any Federal loan program or emergency fund.
``(e) Accountability.--Nothing in this section shall be
construed to limit the ability of the Secretary to maintain
program funding accountability consistent with--
``(1) generally accepted accounting principles; and
``(2) the requirements of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et seq.).
``(f) Penalties.--
``(1) Subsections (a)(1), (a)(6), and (b) of section 409,
shall apply to an Indian tribe with an approved tribal
assistance plan in the same manner as such subsections apply
to a State.
``(2) Section 409(a)(3) shall apply to an Indian tribe with
an approved tribal assistance plan by substituting `meet
minimum work participation requirements established under
section 412(c)' for `comply with section 407(a)'.
``(g) Data Collection and Reporting.--Section 411 shall
apply to an Indian tribe with an approved tribal family
assistance plan.
``(h) Special Rule for Indian Tribes in Alaska.--
``(1) In general.--Notwithstanding any other provision of
this section, and except as provided in paragraph (2), an
Indian tribe in the State of Alaska that receives a tribal
family assistance grant under this section shall use the
grant to operate a program in accordance with requirements
comparable to the requirements applicable to the program of
the State of Alaska funded under this part. Comparability of
programs shall be established on the basis of program
criteria developed by the Secretary in consultation with the
State of Alaska and such Indian tribes.
``(2) Waiver.--An Indian tribe described in paragraph (1)
may apply to the appropriate State authority to receive a
waiver of the requirement of paragraph (1).
``SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
``(a) Research.--The Secretary shall conduct research on
the benefits, effects, and costs of operating different State
programs funded under this part, including time limits
relating to eligibility for assistance. The research shall
include studies on the effects of different programs and the
operation of such programs on welfare dependency,
illegitimacy, teen pregnancy, employment rates, child well-
being, and any other area the Secretary deems appropriate.
The Secretary shall also conduct research on the costs and
benefits of State activities under section 409.
``(b) Development and Evaluation of Innovative Approaches
To Reducing Welfare Dependency and Increasing Child Well-
Being.--
``(1) In general.--The Secretary may assist States in
developing, and shall evaluate, innovative approaches for
reducing welfare dependency and increasing the well-being of
minor children living at home with respect to recipients of
assistance under programs funded under this part.
The Secretary may provide funds for training and technical
assistance to carry out the approaches developed pursuant
to this paragraph.
``(2) Evaluations.--In performing the evaluations under
paragraph (1), the Secretary shall, to the maximum extent
feasible, use random assignment as an evaluation methodology.
``(c) Dissemination of Information.--The Secretary shall
develop innovative methods of disseminating information on
any research, evaluations, and studies conducted under this
section, including the facilitation of the sharing of
information and best practices among States and localities
through the use of computers and other technologies.
``(d) Annual Ranking of States and Review of Most and Least
Successful Work Programs.--
``(1) Annual ranking of states.--The Secretary shall rank
annually the States to which grants are paid under section
403 in the order of their success in placing recipients of
assistance under the State program funded under this part
into long-term private sector jobs, reducing the overall
welfare caseload, and, when a practicable method for
calculating this information becomes available, diverting
individuals from formally applying to the State program and
receiving assistance. In ranking States under this
subsection, the Secretary shall take into account the average
number of minor children living at home in families in the
State that have incomes below the poverty line and the amount
of funding provided each State for such families.
``(2) Annual review of most and least successful work
programs.--The Secretary shall review the programs of the 3
States most recently ranked highest under paragraph (1) and
the 3 States most recently ranked lowest under paragraph (1)
that provide parents with work experience, assistance in
finding employment, and other work preparation activities and
support services to enable the families of such parents to
leave the program and become self-sufficient.
``(e) Annual Ranking of States and Review of Issues
Relating to Out-of-Wedlock Births.--
``(1) Annual ranking of states.--
``(A) In general.--The Secretary shall annually rank States
to which grants are made under section 403 based on the
following ranking factors:
``(i) Absolute out-of-wedlock ratios.--The ratio
represented by--
``(I) the total number of out-of-wedlock births in families
receiving assistance under the State program under this part
in the State for the most recent fiscal year for which
information is available; over
``(II) the total number of births in families receiving
assistance under the State program under this part in the
State for such year.
``(ii) Net changes in the out-of-wedlock ratio.--The
difference between the ratio described in subparagraph (A)(i)
with respect to a State for the most recent fiscal year for
which such information is available and the ratio with
respect to the State for the immediately preceding year.
``(2) Annual review.--The Secretary shall review the
programs of the 5 States most recently ranked highest under
paragraph (1) and the 5 States most recently ranked the
lowest under paragraph (1).
``(f) State-Initiated Evaluations.--A State shall be
eligible to receive funding to evaluate the State program
funded under this part if--
``(1) the State submits a proposal to the Secretary for the
evaluation;
``(2) the Secretary determines that the design and approach
of the evaluation is rigorous and is likely to yield
information that is
[[Page H7855]]
credible and will be useful to other States, and
``(3) unless otherwise waived by the Secretary, the State
contributes to the cost of the evaluation, from non-Federal
sources, an amount equal to at least 10 percent of the
cost of the evaluation.
``(g) Report on Circumstances of Certain Children and
Families.--
``(1) In general.--Beginning 3 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall prepare and submit to the Committees on Ways
and Means and on Economic and Educational Opportunities of
the House of Representatives and to the Committees on Finance
and on Labor and Resources of the Senate annual reports that
examine in detail the matters described in paragraph (2) with
respect to each of the following groups for the period after
such enactment:
``(A) Individuals who were children in families that have
become ineligible for assistance under a State program funded
under this part by reason of having reached a time limit on
the provision of such assistance.
``(B) Families that include a child who is ineligible for
assistance under a State program funded under this part by
reason of section 408(a)(2).
``(C) Children born after such date of enactment to parents
who, at the time of such birth, had not attained 20 years of
age.
``(D) Individuals who, after such date of enactment, became
parents before attaining 20 years of age.
``(2) Matters described.--The matters described in this
paragraph are the following:
``(A) The percentage of each group that has dropped out of
secondary school (or the equivalent), and the percentage of
each group at each level of educational attainment.
``(B) The percentage of each group that is employed.
``(C) The percentage of each group that has been convicted
of a crime or has been adjudicated as a delinquent.
``(D) The rate at which the members of each group are born,
or have children, out-of-wedlock, and the percentage of each
group that is married.
``(E) The percentage of each group that continues to
participate in State programs funded under this part.
``(F) The percentage of each group that has health
insurance provided by a private entity (broken down by
whether the insurance is provided through an employer or
otherwise), the percentage that has health insurance provided
by an agency of government, and the percentage that does not
have health insurance.
``(G) The average income of the families of the members of
each group.
``(H) Such other matters as the Secretary deems
appropriate.
``(h) Funding of Studies and Demonstrations.--
``(1) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated $15,000,000 for each fiscal year specified in
section 403(a)(1) for the purpose of paying--
``(A) the cost of conducting the research described in
subsection (a);
``(B) the cost of developing and evaluating innovative
approaches for reducing welfare dependency and increasing the
well-being of minor children under subsection (b);
``(C) the Federal share of any State-initiated study
approved under subsection (f); and
``(D) an amount determined by the Secretary to be necessary
to operate and evaluate demonstration projects, relating to
this part, that are in effect or approved under section 1115
as of September 30, 1995, and are continued after such date.
``(2) Allocation.--Of the amount appropriated under
paragraph (1) for a fiscal year--
``(A) 50 percent shall be allocated for the purposes
described in subparagraphs (A) and (B) of paragraph (1), and
``(B) 50 percent shall be allocated for the purposes
described in subparagraphs (C) and (D) of paragraph (1).
``(3) Demonstrations of innovative strategies.--The
Secretary may implement and evaluate demonstrations of
innovative and promising strategies which--
``(A) provide one-time capital funds to establish, expand,
or replicate programs;
``(B) test performance-based grant-to-loan financing in
which programs meeting performance targets receive grants
while programs not meeting such targets repay funding on a
prorated basis; and
``(C) test strategies in multiple States and types of
communities.
``SEC. 414. STUDY BY THE CENSUS BUREAU.
``(a) In General.--The Bureau of the Census shall expand
the Survey of Income and Program Participation as necessary
to obtain such information as will enable interested persons
to evaluate the impact of the amendments made by subtitle A
of the Personal Responsibility and Work Opportunity Act of
1996 on a random national sample of recipients of assistance
under State programs funded under this part and (as
appropriate) other low income families, and in doing so,
shall pay particular attention to the issues of out-of-
wedlock birth, welfare dependency, the beginning and end of
welfare spells, and the causes of repeat welfare spells.
``(b) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated $10,000,000 for each of fiscal years 1996, 1997,
1998, 1999, 2000, 2001, and 2002 for payment to the Bureau of
the Census to carry out subsection (a).
``SEC. 415. WAIVERS.
``(a) Continuation of Waivers.--
``(1) Waivers in effect on date of enactment of welfare
reform.--Except as provided in paragraph (3), if any waiver
granted to a State under section 1115 or otherwise which
relates to the provision of assistance under a State plan
under this part (as in effect on September 30, 1995) is in
effect as of the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996, the
amendments made by such Act (other than by section 4103(d) of
such Act) shall not apply with respect to the State before
the expiration (determined without regard to any extensions)
of the waiver to the extent such amendments are inconsistent
with the waiver.
``(2) Waivers granted subsequently.--Except as provided in
paragraph (3), if any waiver granted to a State under section
1115 or otherwise which relates to the provision of
assistance under a State plan under this part (as in effect
on September 30, 1995) is submitted to the Secretary before
the date of the enactment of the Personal Responsibility and
Work Opportunity Act of 1996 and approved by the Secretary on
or before July 1, 1997, and the State demonstrates to the
satisfaction of the Secretary that the waiver will not result
in Federal expenditures under title IV of this Act (as in
effect without regard to the amendments made by the Personal
Responsibility and Work Opportunity Act of 1996) that are
greater than would occur in the absence of the waiver, the
amendments made by the Personal Responsibility and Work
Opportunity Act of 1996 (other than by section 4103(d) of
such Act) shall not apply with respect to the State before
the expiration (determined without regard to any extensions)
of the waiver to the extent the amendments made by the
Personal Responsibility and Work Opportunity Act of 1996 are
inconsistent with the waiver.
``(3) Financing limitation.--Notwithstanding any other
provision of law, beginning with fiscal year 1996, a State
operating under a waiver described in paragraph (1) shall be
entitled to payment under section 403 for the fiscal year, in
lieu of any other payment provided for in the waiver.
``(b) State Option To Terminate Waiver.--
``(1) In general.--A State may terminate a waiver described
in subsection (a) before the expiration of the waiver.
``(2) Report.--A State which terminates a waiver under
paragraph (1) shall submit a report to the Secretary
summarizing the waiver and any available information
concerning the result or effect of the waiver.
``(3) Hold harmless provision.--
``(A) In general.--Notwithstanding any other provision of
law, a State that, not later than the date described in
subparagraph (B), submits a written request to terminate a
waiver described in subsection (a) shall be held harmless for
accrued cost neutrality liabilities incurred under the
waiver.
``(B) Date described.--The date described in this
subparagraph is 90 days following the adjournment of the
first regular session of the State legislature that begins
after the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996.
``(c) Secretarial Encouragement of Current Waivers.--The
Secretary shall encourage any State operating a waiver
described in subsection (a) to continue the waiver and to
evaluate, using random sampling and other characteristics of
accepted scientific evaluations, the result or effect of the
waiver.
``(d) Continuation of Individual Waivers.--A State may
elect to continue 1 or more individual waivers described in
subsection (a).
``SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
``The programs under this part and part D shall be
administered by an Assistant Secretary for Family Support
within the Department of Health and Human Services, who shall
be appointed by the President, by and with the advice and
consent of the Senate, and who shall be in addition to any
other Assistant Secretary of Health and Human Services
provided for by law.
``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.
``No officer or employee of the Federal Government may
regulate the conduct of States under this part or enforce any
provision of this part, except to the extent expressly
provided in this part.''; and
(2) by inserting after such section 418 the following:
``SEC. 419. DEFINITIONS.
``As used in this part:
``(1) Adult.--The term `adult' means an individual who is
not a minor child.
``(2) Minor child.--The term `minor child' means an
individual who--
``(A) has not attained 18 years of age; or
``(B) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level of
vocational or technical training).
``(3) Fiscal year.--The term `fiscal year' means any 12-
month period ending on September 30 of a calendar year.
``(4) Indian, indian tribe, and tribal organization.--
``(A) In general.--Except as provided in subparagraph (B),
the terms `Indian', `Indian tribe', and `tribal organization'
have the meaning given such terms by section 4 of the
[[Page H7856]]
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b).
``(B) Special rule for indian tribes in alaska.--The term
`Indian tribe' means, with respect to the State of Alaska,
only the Metlakatla Indian Community of the Annette Islands
Reserve and the following Alaska Native regional nonprofit
corporations:
``(i) Arctic Slope Native Association.
``(ii) Kawerak, Inc.
``(iii) Maniilaq Association.
``(iv) Association of Village Council Presidents.
``(v) Tanana Chiefs Conference.
``(vi) Cook Inlet Tribal Council.
``(vii) Bristol Bay Native Association.
``(viii) Aleutian and Pribilof Island Association.
``(ix) Chugachmuit.
``(x) Tlingit Haida Central Council.
``(xi) Kodiak Area Native Association.
``(xii) Copper River Native Association.
``(5) State.--Except as otherwise specifically provided,
the term `State' means the 50 States of the United States,
the District of Columbia, the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, and American
Samoa.''.
(b) Grants to Outlying Areas.--Section 1108 (42 U.S.C.
1308) is amended--
(1) by redesignating subsection (c) as subsection (g);
(2) by striking all that precedes subsection (c) and
inserting the following:
``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN
ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION
ON TOTAL PAYMENTS.
``(a) Limitation on Total Payments to Each Territory.--
Notwithstanding any other provision of this Act, the total
amount certified by the Secretary of Health and Human
Services under titles I, X, XIV, and XVI, under parts A, B,
and E of title IV, and under subsection (b) of this section,
for payment to any territory for a fiscal year shall not
exceed the ceiling amount for the territory for the fiscal
year.
``(b) Entitlement to Matching Grant.--
``(1) In general.--Each territory shall be entitled to
receive from the Secretary for each fiscal year a grant in an
amount equal to 75 percent of the amount (if any) by which--
``(A) the total expenditures of the territory during the
fiscal year under the territory programs funded under parts
A, B, and E of title IV; exceeds
``(B) the sum of--
``(i) the total amount required to be paid to the territory
(other than with respect to child care) under former section
403 (as in effect on September 30, 1995) for fiscal year
1995, which shall be determined by applying subparagraphs (C)
and (D) of section 403(a)(1) to the territory;
``(ii) the total amount required to be paid to the
territory under former section 434 (as so in effect) for
fiscal year 1995; and
``(iii) the total amount expended by the territory during
fiscal year 1995 pursuant to parts A, B, and F of title IV
(as so in effect), other than for child care.
``(2) Use of grant.--Any territory to which a grant is made
under paragraph (1) may expend the amount under any program
operated or funded under any provision of law specified in
subsection (a).
``(c) Definitions.--As used in this section:
``(1) Territory.--The term `territory' means Puerto Rico,
the Virgin Islands, Guam, and American Samoa.
``(2) Ceiling amount.--The term `ceiling amount' means,
with respect to a territory and a fiscal year, the mandatory
ceiling amount with respect to the territory plus the
discretionary ceiling amount with respect to the territory,
reduced for the fiscal year in accordance with subsection
(f).
``(3) Mandatory ceiling amount.--The term `mandatory
ceiling amount' means--
``(A) $105,538,000 with respect to for Puerto Rico;
``(B) $4,902,000 with respect to Guam;
``(C) $3,742,000 with respect to the Virgin Islands; and
``(D) $1,122,000 with respect to American Samoa.
``(4) Discretionary ceiling amount.--The term
`discretionary ceiling amount' means, with respect to a
territory and a fiscal year, the total amount appropriated
pursuant to subsection (d)(3) for the fiscal year for payment
to the territory.
``(5) Total amount expended by the territory.--The term
`total amount expended by the territory'--
``(A) does not include expenditures during the fiscal year
from amounts made available by the Federal Government; and
``(B) when used with respect to fiscal year 1995, also does
not include--
``(i) expenditures during fiscal year 1995 under subsection
(g) or (i) of section 402 (as in effect on September 30,
1995); or
``(ii) any expenditures during fiscal year 1995 for which
the territory (but for section 1108, as in effect on
September 30, 1995) would have received reimbursement from
the Federal Government.
``(d) Discretionary Grants.--
``(1) In general.--The Secretary shall make a grant to each
territory for any fiscal year in the amount appropriated
pursuant to paragraph (3) for the fiscal year for payment to
the territory.
``(2) Use of grant.--Any territory to which a grant is made
under paragraph (1) may expend the amount under any program
operated or funded under any provision of law specified in
subsection (a).
``(3) Limitation on authorization of appropriations.--For
grants under paragraph (1), there are authorized to be
appropriated to the Secretary for each fiscal year--
``(A) $7,951,000 for payment to Puerto Rico;
``(B) $345,000 for payment to Guam;
``(C) $275,000 for payment to the Virgin Islands; and
``(D) $190,000 for payment to American Samoa.
``(e) Authority to Transfer Funds Among Programs.--
Notwithstanding any other provision of this Act, any
territory to which an amount is paid under any provision of
law specified in subsection (a) may use part or all of the
amount to carry out any program operated by the territory, or
funded, under any other such provision of law.
``(f) Maintenance of Effort.--The ceiling amount with
respect to a territory shall be reduced for a fiscal year by
an amount equal to the amount (if any) by which--
``(1) the total amount expended by the territory under all
programs of the territory operated pursuant to the provisions
of law specified in subsection (a) (as such provisions were
in effect for fiscal year 1995) for fiscal year 1995; exceeds
``(2) the total amount expended by the territory under all
programs of the territory that are funded under the
provisions of law specified in subsection (a) for the fiscal
year that immediately precedes the fiscal year referred to in
the matter preceding paragraph (1).''; and
(3) by striking subsections (d) and (e).
(c) Repeal of Provisions Requiring Reduction of Medicaid
Payments to States That Reduce Welfare Payment Levels.--
(1) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by
striking paragraph (9).
(2) Section 1902 (42 U.S.C. 1396a) is amended by striking
subsection (c).
(d) Elimination of Child Care Programs Under the Social
Security Act.--
(1) AFDC and transitional child care programs.--Section 402
(42 U.S.C. 602) is amended by striking subsection (g).
(2) At-risk child care program.--
(A) Authorization.--Section 402 (42 U.S.C. 602) is amended
by striking subsection (i).
(B) Funding provisions.--Section 403 (42 U.S.C. 603) is
amended by striking subsection (n).
SEC. 4104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR
PRIVATE ORGANIZATIONS.
(a) In General.--
(1) State options.--A State may--
(A) administer and provide services under the programs
described in subparagraphs (A) and (B)(i) of paragraph (2)
through contracts with charitable, religious, or private
organizations; and
(B) provide beneficiaries of assistance under the programs
described in subparagraphs (A) and (B)(ii) of paragraph (2)
with certificates, vouchers, or other forms of disbursement
which are redeemable with such organizations.
(2) Programs described.--The programs described in this
paragraph are the following programs:
(A) A State program funded under part A of title IV of the
Social Security Act (as amended by section 4103(a) of this
Act).
(B) Any other program established or modified under
subtitle A, B, or F of this title, that--
(i) permits contracts with organizations; or
(ii) permits certificates, vouchers, or other forms of
disbursement to be provided to beneficiaries, as a means of
providing assistance.
(b) Religious Organizations.--The purpose of this section
is to allow States to contract with religious organizations,
or to allow religious organizations to accept certificates,
vouchers, or other forms of disbursement under any program
described in subsection (a)(2), on the same basis as any
other nongovernmental provider without impairing the
religious character of such organizations, and without
diminishing the religious freedom of beneficiaries of
assistance funded under such program.
(c) Nondiscrimination Against Religious Organizations.--In
the event a State exercises its authority under subsection
(a), religious organizations are eligible, on the same basis
as any other private organization, as contractors to provide
assistance, or to accept certificates, vouchers, or other
forms of disbursement, under any program described in
subsection (a)(2) so long as the programs are implemented
consistent with the Establishment Clause of the United States
Constitution. Except as provided in subsection (k), neither
the Federal Government nor a State receiving funds under such
programs shall discriminate against an organization which is
or applies to be a contractor to provide assistance, or which
accepts certificates, vouchers, or other forms of
disbursement, on the basis that the organization has a
religious character.
(d) Religious Character and Freedom.--
(1) Religious organizations.--A religious organization with
a contract described in subsection (a)(1)(A), or which
accepts certificates, vouchers, or other forms of
disbursement under subsection (a)(1)(B), shall retain its
independence from Federal, State, and local governments,
including such organization's control over the definition,
development, practice, and expression of its religious
beliefs.
(2) Additional safeguards.--Neither the Federal Government
nor a State shall require a religious organization to--
(A) alter its form of internal governance; or
(B) remove religious art, icons, scripture, or other
symbols;
[[Page H7857]]
in order to be eligible to contract to provide assistance, or
to accept certificates, vouchers, or other forms of
disbursement, funded under a program described in subsection
(a)(2).
(e) Rights of Beneficiaries of Assistance.--
(1) In general.--If an individual described in paragraph
(2) has an objection to the religious character of the
organization or institution from which the individual
receives, or would receive, assistance funded under
any program described in subsection (a)(2), the State in
which the individual resides shall provide such individual
(if otherwise eligible for such assistance) within a
reasonable period of time after the date of such objection
with assistance from an alternative provider that is
accessible to the individual and the value of which is not
less than the value of the assistance which the individual
would have received from such organization.
(2) Individual described.--An individual described in this
paragraph is an individual who receives, applies for, or
requests to apply for, assistance under a program described
in subsection (a)(2).
(f) Employment Practices.--A religious organization's
exemption provided under section 702 of the Civil Rights Act
of 1964 (42 U.S.C. 2000e-1a) regarding employment practices
shall not be affected by its participation in, or receipt of
funds from, programs described in subsection (a)(2).
(g) Nondiscrimination Against Beneficiaries.--Except as
otherwise provided in law, a religious organization shall not
discriminate against an individual in regard to rendering
assistance funded under any program described in subsection
(a)(2) on the basis of religion, a religious belief, or
refusal to actively participate in a religious practice.
(h) Fiscal Accountability.--
(1) In general.--Except as provided in paragraph (2), any
religious organization contracting to provide assistance
funded under any program described in subsection (a)(2) shall
be subject to the same regulations as other contractors to
account in accord with generally accepted auditing principles
for the use of such funds provided under such programs.
(2) Limited audit.--If such organization segregates Federal
funds provided under such programs into separate accounts,
then only the financial assistance provided with such funds
shall be subject to audit.
(i) Compliance.--Any party which seeks to enforce its
rights under this section may assert a civil action for
injunctive relief exclusively in an appropriate State court
against the entity or agency that allegedly commits such
violation.
(j) Limitations on Use of Funds for Certain Purposes.--No
funds provided directly to institutions or organizations to
provide services and administer programs under subsection
(a)(1)(A) shall be expended for sectarian worship,
instruction, or proselytization.
(k) Preemption.--Nothing in this section shall be construed
to preempt any provision of a State constitution or State
statute that prohibits or restricts the expenditure of State
funds in or by religious organizations.
SEC. 4105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS
FOR THEIR GRANDCHILDREN.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Commerce, in
carrying out section 141 of title 13, United States Code,
shall expand the data collection efforts of the Bureau of the
Census (in this section referred to as the ``Bureau'') to
enable the Bureau to collect statistically significant data,
in connection with its decennial census and its mid-decade
census, concerning the growing trend of grandparents who are
the primary caregivers for their grandchildren.
(b) Expanded Census Question.--In carrying out subsection
(a), the Secretary of Commerce shall expand the Bureau's
census question that details households which include both
grandparents and their grandchildren. The expanded question
shall be formulated to distinguish between the following
households:
(1) A household in which a grandparent temporarily provides
a home for a grandchild for a period of weeks or months
during periods of parental distress.
(2) A household in which a grandparent provides a home for
a grandchild and serves as the primary caregiver for the
grandchild.
SEC. 4106. REPORT ON DATA PROCESSING.
(a) In General.--Within 6 months after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall prepare and submit to the Congress a report
on--
(1) the status of the automated data processing systems
operated by the States to assist management in the
administration of State programs under part A of title IV of
the Social Security Act (whether in effect before or after
October 1, 1995); and
(2) what would be required to establish a system capable
of--
(A) tracking participants in public programs over time; and
(B) checking case records of the States to determine
whether individuals are participating in public programs of 2
or more States.
(b) Preferred Contents.--The report required by subsection
(a) should include--
(1) a plan for building on the automated data processing
systems of the States to establish a system with the
capabilities described in subsection (a)(2); and
(2) an estimate of the amount of time required to establish
such a system and of the cost of establishing such a system.
SEC. 4107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.
(a) Study.--The Secretary shall, in cooperation with the
States, study and analyze outcomes measures for evaluating
the success of the States in moving individuals out of the
welfare system through employment as an alternative to the
minimum participation rates described in section 407 of the
Social Security Act. The study shall include a determination
as to whether such alternative outcomes measures should be
applied on a national or a State-by-State basis and a
preliminary assessment of the effects of section 409(a)(7)(C)
of such Act.
(b) Report.--Not later than September 30, 1998, the
Secretary shall submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report containing the findings of the study
required by subsection (a).
SEC. 4108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.
(a) Amendments to Title II.--
(1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)),
as so redesignated by section 321(a)(9)(B) of the Social
Security Independence and Program Improvements Act of 1994,
is amended--
(A) by inserting ``an agency administering a program funded
under part A of title IV or'' before ``an agency operating'';
and
(B) by striking ``A or D of title IV of this Act'' and
inserting ``D of such title''.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by
inserting ``under a State program funded under'' before
``part A of title IV''.
(b) Amendments to Part D of Title IV.--
(1) Section 451 (42 U.S.C. 651) is amended by striking
``aid'' and inserting ``assistance under a State program
funded''.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended--
(A) by striking ``aid to families with dependent children''
and inserting ``assistance under a State program funded under
part A'';
(B) by striking ``such aid'' and inserting ``such
assistance''; and
(C) by striking ``under section 402(a)(26) or'' and
inserting ``pursuant to section 408(a)(4) or under section''.
(3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is
amended--
(A) by striking ``aid under a State plan approved'' and
inserting ``assistance under a State program funded''; and
(B) by striking ``in accordance with the standards referred
to in section 402(a)(26)(B)(ii)'' and inserting ``by the
State''.
(4) Section 452(b) (42 U.S.C. 652(b)) is amended in the
first sentence by striking ``aid under the State plan
approved under part A'' and inserting ``assistance under the
State program funded under part A''.
(5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is
amended by striking ``1115(c)'' and inserting ``1115(b)''.
(6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being
paid under the State's plan approved under part A or E'' and
inserting ``assistance is being provided under the State
program funded under part A''.
(7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is
amended in the matter following clause (iii) by striking
``aid was being paid under the State's plan approved under
part A or E'' and inserting ``assistance was being provided
under the State program funded under part A''.
(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in
the matter following subparagraph (B)--
(A) by striking ``who is a dependent child'' and inserting
``with respect to whom assistance is being provided under the
State program funded under part A'';
(B) by inserting ``by the State'' after ``found''; and
(C) by striking ``to have good cause for refusing to
cooperate under section 402(a)(26)'' and inserting ``to
qualify for a good cause or other exception to cooperation
pursuant to section 454(29)''.
(9) Section 452(h) (42 U.S.C. 652(h)) is amended by
striking ``under section 402(a)(26)'' and inserting
``pursuant to section 408(a)(4)''.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by
striking ``aid under part A of this title'' and inserting
``assistance under a State program funded under part A''.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is amended--
(A) by striking ``under section 402(a)(26)'' and inserting
``pursuant to section 408(a)(4)''; and
(B) by striking ``; except that this paragraph shall not
apply to such payments for any month following the first
month in which the amount collected is sufficient to make
such family ineligible for assistance under the State plan
approved under part A;'' and inserting a comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by
striking ``aid under a State plan approved'' and inserting
``assistance under a State program funded''.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by
striking ``under section 402(a)(26)''.
(14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is
amended by striking ``402(a)(26)'' and inserting
``408(a)(3)''.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by
striking ``aid'' and inserting ``assistance under a State
program funded''.
[[Page H7858]]
(16) Section 469(a) (42 U.S.C. 669(a)) is amended--
(A) by striking ``aid under plans approved'' and inserting
``assistance under State programs funded''; and
(B) by striking ``such aid'' and inserting ``such
assistance''.
(c) Repeal of Part F of Title IV.--Part F of title IV (42
U.S.C. 681-687) is repealed.
(d) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C.
1202(a)(7)) is amended by striking ``aid to families with
dependent children under the State plan approved
under section 402 of this Act'' and inserting ``assistance
under a State program funded under part A of title IV''.
(e) Amendments to Title XI.--
(1) Section 1109 (42 U.S.C. 1309) is amended by striking
``or part A of title IV,''.
(2) Section 1115 (42 U.S.C. 1315) is amended--
(A) in subsection (a)(2)--
(i) by inserting ``(A)'' after ``(2)'';
(ii) by striking ``403,'';
(iii) by striking the period at the end and inserting ``,
and''; and
(iv) by adding at the end the following new subparagraph:
``(B) costs of such project which would not otherwise be a
permissible use of funds under part A of title IV and which
are not included as part of the costs of projects under
section 1110, shall to the extent and for the period
prescribed by the Secretary, be regarded as a permissible use
of funds under such part.''; and
(B) in subsection (c)(3), by striking ``the program of aid
to families with dependent children'' and inserting ``part A
of such title''.
(3) Section 1116 (42 U.S.C. 1316) is amended--
(A) in each of subsections (a)(1), (b), and (d), by
striking ``or part A of title IV,''; and
(B) in subsection (a)(3), by striking ``404,''.
(4) Section 1118 (42 U.S.C. 1318) is amended--
(A) by striking ``403(a),'';
(B) by striking ``and part A of title IV,''; and
(C) by striking ``, and shall, in the case of American
Samoa, mean 75 per centum with respect to part A of title
IV''.
(5) Section 1119 (42 U.S.C. 1319) is amended--
(A) by striking ``or part A of title IV''; and
(B) by striking ``403(a),''.
(6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by
striking ``or part A of title IV,''.
(7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
(8) Section 1137 (42 U.S.C. 1320b-7) is amended--
(A) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) any State program funded under part A of title IV of
this Act;''; and
(B) in subsection (d)(1)(B)--
(i) by striking ``In this subsection--'' and all that
follows through ``(ii) in'' and inserting ``In this
subsection, in'';
(ii) by redesignating subclauses (I), (II), and (III) as
clauses (i), (ii), and (iii); and
(iii) by moving such redesignated material 2 ems to the
left.
(f) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C.
1352(a)(7)) is amended by striking ``aid to families with
dependent children under the State plan approved under
section 402 of this Act'' and inserting ``assistance under a
State program funded under part A of title IV''.
(g) Amendment to Title XVI as in Effect With Respect to the
Territories.--Section 1602(a)(11), as in effect without
regard to the amendment made by section 301 of the Social
Security Amendments of 1972 (42 U.S.C. 1382 note), is amended
by striking ``aid under the State plan approved'' and
inserting ``assistance under a State program funded''.
(h) Amendment to Title XVI as in Effect With Respect to the
States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is
amended to read as follows: ``(A) a State program funded
under part A of title IV,''.
(i) Amendment to Title XIX.--Section 1902(j) (42 U.S.C.
1396a(j)) is amended by striking ``1108(c)'' and inserting
``1108(g)''.
SEC. 4109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF
1977 AND RELATED PROVISIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended--
(1) in the second sentence of subsection (a), by striking
``plan approved'' and all that follows through ``title IV of
the Social Security Act'' and inserting ``program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)'';
(2) in subsection (d)--
(A) in paragraph (5), by striking ``assistance to families
with dependent children'' and inserting ``assistance under a
State program funded''; and
(B) by striking paragraph (13) and redesignating paragraphs
(14), (15), and (16) as paragraphs (13), (14), and (15),
respectively;
(3) in subsection (j), by striking ``plan approved under
part A of title IV of such Act (42 U.S.C. 601 et seq.)'' and
inserting ``program funded under part A of title IV of the
Act (42 U.S.C. 601 et seq.)''; and
(4) by striking subsection (m).
(b) Section 6 of such Act (7 U.S.C. 2015) is amended--
(1) in subsection (c)(5), by striking ``the State plan
approved'' and inserting ``the State program funded''; and
(2) in subsection (e)(6), by striking ``aid to families
with dependent children'' and inserting ``benefits under a
State program funded''.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is
amended by striking ``State plans under the Aid to Families
with Dependent Children Program under'' and inserting ``State
programs funded under part A of''.
(d) Section 17 of such Act (7 U.S.C. 2026) is amended--
(1) in the first sentence of subsection (b)(1)(A), by
striking ``to aid to families with dependent children under
part A of title IV of the Social Security Act'' and inserting
``or are receiving assistance under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)''; and
(2) in subsection (b)(3), by adding at the end the
following new subparagraph:
``(I) The Secretary may not grant a waiver under this
paragraph on or after October 1, 1995. Any reference in this
paragraph to a provision of title IV of the Social Security
Act shall be deemed to be a reference to such provision as in
effect on September 30, 1995.'';
(e) Section 20 of such Act (7 U.S.C. 2029) is amended--
(1) in subsection (a)(2)(B) by striking ``operating--'' and
all that follows through ``(ii) any other'' and inserting
``operating any''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1) A household'' and inserting ``(b)
A household''; and
(ii) in subparagraph (B), by striking ``training program''
and inserting ``activity'';
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) through (F) as
paragraphs (1) through (6), respectively.
(f) Section 5(h)(1) of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c
note) is amended by striking ``the program for aid to
families with dependent children'' and inserting ``the State
program funded''.
(g) Section 9 of the National School Lunch Act (42 U.S.C.
1758) is amended--
(1) in subsection (b)--
(A) in paragraph (2)(C)(ii)(II)--
(i) by striking ``program for aid to families with
dependent children'' and inserting ``State program funded'';
and
(ii) by inserting before the period at the end the
following: ``that the Secretary determines complies with
standards established by the Secretary that ensure that the
standards under the State program are comparable to or more
restrictive than those in effect on June 1, 1995''; and
(B) in paragraph (6)--
(i) in subparagraph (A)(ii)--
(I) by striking ``an AFDC assistance unit (under the aid to
families with dependent children program authorized'' and
inserting ``a family (under the State program funded''; and
(II) by striking ``, in a State'' and all that follows
through ``9902(2)))'' and inserting ``that the Secretary
determines complies with standards established by the
Secretary that ensure that the standards under the State
program are comparable to or more restrictive than those in
effect on June 1, 1995''; and
(ii) in subparagraph (B), by striking ``aid to families
with dependent children'' and inserting ``assistance under
the State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) that the
Secretary determines complies with standards established by
the Secretary that ensure that the standards under the State
program are comparable to or more restrictive than those in
effect on June 1, 1995''; and
(2) in subsection (d)(2)(C)--
(A) by striking ``program for aid to families with
dependent children'' and inserting ``State program funded'';
and
(B) by inserting before the period at the end the
following: ``that the Secretary determines complies with
standards established by the Secretary that ensure that the
standards under the State program are comparable to or more
restrictive than those in effect on June 1, 1995''.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
(1) by striking ``program for aid to families with
dependent children established'' and inserting ``State
program funded''; and
(2) by inserting before the semicolon the following: ``that
the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the
State program are comparable to or more restrictive than
those in effect on June 1, 1995''.
SEC. 4110. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment
Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law
94-566; 90 Stat. 2689) is amended to read as follows:
``(b) Provision for Reimbursement of Expenses.--For
purposes of section 455 of the Social Security Act, expenses
incurred to reimburse State employment offices for furnishing
information requested of such offices--
``(1) pursuant to the third sentence of section 3(a) of the
Act entitled `An Act to provide for the establishment of a
national employment system and for cooperation with the
States in the promotion of such system, and for other
purposes', approved June 6, 1933 (29 U.S.C. 49b(a)), or
``(2) by a State or local agency charged with the duty of
carrying a State plan for child support approved under part D
of title IV of the Social Security Act,
[[Page H7859]]
shall be considered to constitute expenses incurred in the
administration of such State plan.''.
(b) Section 9121 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation Act
of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 602 note), relating to treatment under
AFDC of certain rental payments for federally assisted
housing, is repealed.
(e) Section 159 of the Tax Equity and Fiscal Responsibility
Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments of
1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988 (42 U.S.C. 11381 note),
relating to demonstration projects to reduce number of AFDC
families in welfare hotels, is amended--
(1) in subsection (a), by striking ``aid to families with
dependent children under a State plan approved'' and
inserting ``assistance under a State program funded''; and
(2) in subsection (c), by striking ``aid to families with
dependent children in the State under a State plan approved''
and inserting ``assistance in the State under a State program
funded''.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.) is amended--
(1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by
striking ``(Aid to Families with Dependent Children)''; and
(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by
striking ``aid to families with dependent children under a
State plan approved'' and inserting ``assistance under a
State program funded''.
(i) The Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.) is amended--
(1) in section 231(d)(3)(A)(ii) (20 U.S.C.
2341(d)(3)(A)(ii)), by striking ``The program for aid to
dependent children'' and inserting ``The State program
funded'';
(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by
striking ``the program for aid to families with dependent
children'' and inserting ``the State program funded''; and
(3) in section 521(14)(B)(iii) (20 U.S.C.
2471(14)(B)(iii)), by striking ``the program for aid to
families with dependent children'' and inserting ``the State
program funded''.
(j) The Elementary and Secondary Education Act of 1965 (20
U.S.C. 2701 et seq.) is amended--
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by
striking ``Aid to Families with Dependent Children program''
and inserting ``State program funded under part A of title IV
of the Social Security Act'';
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by
striking ``the program of aid to families with dependent
children under a State plan approved under'' and inserting
``a State program funded under part A of''; and
(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
(A) in subparagraph (A)(xi), by striking ``Aid to Families
with Dependent Children benefits'' and inserting ``assistance
under a State program funded under part A of title IV of the
Social Security Act''; and
(B) in subparagraph (B)(viii), by striking ``Aid to
Families with Dependent Children'' and inserting ``assistance
under the State program funded under part A of title IV of
the Social Security Act''.
(k) The 4th proviso of chapter VII of title I of Public Law
99-88 (25 U.S.C. 13d-1) is amended to read as follows:
``Provided further, That general assistance payments made by
the Bureau of Indian Affairs shall be made--
``(1) after April 29, 1985, and before October 1, 1995, on
the basis of Aid to Families with Dependent Children (AFDC)
standards of need; and
``(2) on and after October 1, 1995, on the basis of
standards of need established under the State program funded
under part A of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State
program payments, the Bureau shall reduce general assistance
payments in such State by the same percentage as the State
has reduced the AFDC or State program payment.''.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)
is amended--
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking
all that follows ``agency as'' and inserting ``being eligible
for financial assistance under part A of title IV of the
Social Security Act and as having continually received
such financial assistance during the 90-day period which
immediately precedes the date on which such individual is
hired by the employer.'';
(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by
striking ``eligibility for aid or services,'' and all that
follows through ``children approved'' and inserting
``eligibility for assistance, or the amount of such
assistance, under a State program funded'';
(3) in section 6103(l)(7)(D)(i) (26 U.S.C.
6103(l)(7)(D)(i)), by striking ``aid to families with
dependent children provided under a State plan approved'' and
inserting ``a State program funded'';
(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
(A) by striking ``(c) or (d)'' each place it appears and
inserting ``(c), (d), or (e)''; and
(B) by adding at the end of subparagraph (B) the following
new sentence: ``Any return information disclosed with respect
to section 6402(e) shall only be disclosed to officers and
employees of the State agency requesting such information.'';
(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the
matter preceding subparagraph (A)--
(A) by striking ``(5), (10)'' and inserting ``(5)''; and
(B) by striking ``(9), or (12)'' and inserting ``(9), (10),
or (12)'';
(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)),
by striking ``(relating to aid to families with dependent
children)'';
(7) in section 6402 (26 U.S.C. 6402)--
(A) in subsection (a), by striking ``(c) and (d)'' and
inserting ``(c), (d), and (e)'';
(B) by redesignating subsections (e) through (i) as
subsections (f) through (j), respectively; and
(C) by inserting after subsection (d) the following:
``(e) Collection of Overpayments Under Title IV-A of the
Social Security Act.--The amount of any overpayment to be
refunded to the person making the overpayment shall be
reduced (after reductions pursuant to subsections (c) and
(d), but before a credit against future liability for an
internal revenue tax) in accordance with section 405(e) of
the Social Security Act (concerning recovery of overpayments
to individuals under State plans approved under part A of
title IV of such Act).''; and
(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by
striking ``aid to families with dependent children'' and
inserting ``assistance under a State program funded under
part A of title IV of the Social Security Act''.
(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C.
49b(b)) is amended by striking ``State plan approved under
part A of title IV'' and inserting ``State program funded
under part A of title IV''.
(n) The Job Training Partnership Act (29 U.S.C. 1501 et
seq.) is amended--
(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by
striking ``(42 U.S.C. 601 et seq.)'';
(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by
striking ``State aid to families with dependent children
records,'' and inserting ``records collected under the State
program funded under part A of title IV of the Social
Security Act,'';
(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
(A) by striking ``the JOBS program'' and inserting ``the
work activities required under title IV of the Social
Security Act''; and
(B) by striking the second sentence;
(4) in section 123(c) (29 U.S.C. 1533(c))--
(A) in paragraph (1)(E), by repealing clause (vi); and
(B) in paragraph (2)(D), by repealing clause (v);
(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by
striking ``, including recipients under the JOBS program'';
(6) in subparagraphs (A) and (B) of section 204(a)(1) (29
U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the
JOBS program)'' each place it appears;
(7) in section 205(a) (29 U.S.C. 1605(a)), by striking
paragraph (4) and inserting the following:
``(4) the portions of title IV of the Social Security Act
relating to work activities;'';
(8) in section 253 (29 U.S.C. 1632)--
(A) in subsection (b)(2), by repealing subparagraph (C);
and
(B) in paragraphs (1)(B) and (2)(B) of subsection (c), by
striking ``the JOBS program or'' each place it appears;
(9) in section 264 (29 U.S.C. 1644)--
(A) in subparagraphs (A) and (B) of subsection (b)(1), by
striking ``(such as the JOBS program)'' each place it
appears; and
(B) in subparagraphs (A) and (B) of subsection (d)(3), by
striking ``and the JOBS program'' each place it appears;
(10) in section 265(b) (29 U.S.C. 1645(b)), by striking
paragraph (6) and inserting the following:
``(6) the portion of title IV of the Social Security Act
relating to work activities;'';
(11) in the second sentence of section 429(e) (29 U.S.C.
1699(e)), by striking ``and shall be in an amount that does
not exceed the maximum amount that may be provided by the
State pursuant to section 402(g)(1)(C) of the Social Security
Act (42 U.S.C. 602(g)(1)(C))'';
(12) in section 454(c) (29 U.S.C. 1734(c)), by striking
``JOBS and'';
(13) in section 455(b) (29 U.S.C. 1735(b)), by striking
``the JOBS program,'';
(14) in section 501(1) (29 U.S.C. 1791(1)), by striking
``aid to families with dependent children under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.)''
and inserting ``assistance under the State program funded
under part A of title IV of the Social Security Act'';
(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by
striking ``aid to families with dependent children'' and
inserting ``assistance under the State program funded'';
(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by
striking ``aid to families with dependent children'' and
inserting ``assistance under the State program funded''; and
(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
(A) in clause (v), by striking the semicolon and inserting
``; and''; and
(B) by striking clause (vi).
(o) Section 3803(c)(2)(C)(iv) of title 31, United States
Code, is amended to read as follows:
[[Page H7860]]
``(iv) assistance under a State program funded under part A
of title IV of the Social Security Act;''.
(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is
amended to read as follows:
``(i) assistance under the State program funded under part
A of title IV of the Social Security Act;''.
(q) Section 303(f)(2) of the Family Support Act of 1988 (42
U.S.C. 602 note) is amended--
(1) by striking ``(A)''; and
(2) by striking subparagraphs (B) and (C).
(r) The Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 900 et seq.) is amended--
(1) in the first section 255(h) (2 U.S.C. 905(h)), by
striking ``Aid to families with dependent children (75-0412-
0-1-609);'' and inserting ``Block grants to States for
temporary assistance for needy families;''; and
(2) in section 256 (2 U.S.C. 906)--
(A) by striking subsection (k); and
(B) by redesignating subsection (l) as subsection (k).
(s) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.) is amended--
(1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid
under a State plan approved under'' each place it appears and
inserting ``assistance under a State program funded under'';
(2) in section 245A(h) (8 U.S.C. 1255a(h))--
(A) in paragraph (1)(A)(i), by striking ``program of aid to
families with dependent children'' and inserting ``State
program of assistance''; and
(B) in paragraph (2)(B), by striking ``aid to families with
dependent children'' and inserting ``assistance under a State
program funded under part A of title IV of the Social
Security Act''; and
(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking
``State plan approved'' and inserting ``State program
funded''.
(t) Section 640(a)(4)(B)(i) of the Head Start Act (42
U.S.C. 9835(a)(4)(B)(i)) is amended by striking ``program of
aid to families with dependent children under a State plan
approved'' and inserting ``State program of assistance
funded''.
(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47,
chapter 92; 25 U.S.C. 639) is repealed.
(v) Subparagraph (E) of section 213(d)(6) of the School-To-
Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is
amended to read as follows:
``(E) part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) relating to work activities;''.
(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United
States Code, is amended by striking ``section 464 or 1137 of
the Social Security Act'' and inserting ``section 404(e),
464, or 1137 of the Social Security Act''.
SEC. 4111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT
SOCIAL SECURITY CARD REQUIRED.
(a) Development.--
(1) In general.--The Commissioner of Social Security (in
this section referred to as the ``Commissioner'') shall, in
accordance with this section, develop a prototype of a
counterfeit-resistant social security card. Such prototype
card shall--
(A) be made of a durable, tamper-resistant material such as
plastic or polyester,
(B) employ technologies that provide security features,
such as magnetic stripes, holograms, and integrated circuits,
and
(C) be developed so as to provide individuals with reliable
proof of citizenship or legal resident alien status.
(2) Assistance by attorney general.--The Attorney General
of the United States shall provide such information and
assistance as the Commissioner deems necessary to enable the
Commissioner to comply with this section.
(b) Study and Report.--
(1) In general.--The Commissioner shall conduct a study and
issue a report to Congress which examines different methods
of improving the social security card application process.
(2) Elements of study.--The study shall include an
evaluation of the cost and work load implications of issuing
a counterfeit-resistant social security card for all
individuals over a 3-, 5-, and 10-year period. The study
shall also evaluate the feasibility and cost implications of
imposing a user fee for replacement cards and cards issued to
individuals who apply for such a card prior to the scheduled
3-, 5-, and 10-year phase-in options.
(3) Distribution of report.--The Commissioner shall submit
copies of the report described in this subsection along with
a facsimile of the prototype card as described in
subsection (a) to the Committees on Ways and Means and
Judiciary of the House of Representatives and the
Committees on Finance and Judiciary of the Senate within 1
year after the date of the enactment of this Act.
SEC. 4112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.
(a) In General.--Whenever an organization that accepts
Federal funds under this title or the amendments made by this
title (other than funds provided under title IV, XVI, or XX
of the Social Security Act) makes any communication that in
any way intends to promote public support or opposition to
any policy of a Federal, State, or local government through
any broadcasting station, newspaper, magazine, outdoor
advertising facility, direct mailing, or any other type of
general public advertising, such communication shall state
the following: ``This was prepared and paid for by an
organization that accepts taxpayer dollars.''.
(b) Failure To Comply.--If an organization makes any
communication described in subsection (a) and fails to
provide the statement required by that subsection, such
organization shall be ineligible to receive Federal funds
under this title or the amendments made by this title.
(c) Definition.--For purposes of this section, the term
``organization'' means an organization described in section
501(c) of the Internal Revenue Code of 1986.
(d) Effective Dates.--This section shall take effect--
(1) with respect to printed communications 1 year after the
date of enactment of this Act; and
(2) with respect to any other communication on the date of
enactment of this Act.
SEC. 4113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN
LOW-INCOME INDIVIDUALS PROGRAM.
Section 505 of the Family Support Act of 1988 (42 U.S.C.
1315 note) is amended--
(1) in the heading, by striking ``DEMONSTRATION'';
(2) by striking ``demonstration'' each place such term
appears;
(3) in subsection (a), by striking ``in each of fiscal
years'' and all that follows through ``10'' and inserting
``shall enter into agreements with'';
(4) in subsection (b)(3), by striking ``aid to families
with dependent children under part A of title IV of the
Social Security Act'' and inserting ``assistance under the
program funded part A of title IV of the Social Security Act
of the State in which the individual resides'';
(5) in subsection (c)--
(A) in paragraph (1)(C), by striking ``aid to families with
dependent children under title IV of the Social Security
Act'' and inserting ``assistance under a State program funded
part A of title IV of the Social Security Act'';
(B) in paragraph (2), by striking ``aid to families with
dependent children under title IV of such Act'' and inserting
``assistance under a State program funded part A of title IV
of the Social Security Act'';
(6) in subsection (d), by striking ``job opportunities and
basic skills training program (as provided for under title IV
of the Social Security Act)'' and inserting ``the State
program funded under part A of title IV of the Social
Security Act''; and
(7) by striking subsections (e) through (g) and inserting
the following:
``(e) Authorization of Appropriations.--For the purpose of
conducting projects under this section, there is authorized
to be appropriated an amount not to exceed $25,000,000 for
any fiscal year.''.
SEC. 4114. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR
TECHNICAL AND CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of
this Act, the Secretary of Health and Human Services and the
Commissioner of Social Security, in consultation,
as appropriate, with the heads of other Federal agencies,
shall submit to the appropriate committees of Congress a
legislative proposal proposing such technical and
conforming amendments as are necessary to bring the law
into conformity with the policy embodied in this subtitle.
SEC. 4115. CONFORMING AMENDMENTS TO MEDICAID PROGRAM.
(a) In General.--Title XIX is amended--
(1) in section 1931, by inserting ``subject to section
1931(a),'' in subsection (a) after ``under this title,'' and
by redesignating such section as section 1932; and
(2) by inserting after section 1930 the following new
section:
``continued application of standards and methodologies under part a of
title iv for certain individuals
``Sec. 1931. (a) For purposes of applying this title with
respect to a State, notwithstanding any other provision of
this title--
``(1) except as provided in paragraphs (2) through (4), any
reference in this title (or other provision of law in
relation to the operation of this title) to a provision of
part A of title IV, or a State plan under such part, shall be
considered a reference to such provision or plan as in effect
as of July 16, 1996, with respect to the State and
eligibility for medical assistance under this title shall be
determined as if such provision or plan (as in effect as of
such date) remained in effect;
``(2) any reference in section 1902(a)(5) or 1902(a)(55) to
a State plan approved under part A of title IV shall be
deemed a reference to a State program funded under such part;
``(3) a State may provide that any income standard under
the State plan referred to in paragraph (1) may be increased
over a period (beginning after July 16, 1996) by a percentage
that does not exceed the percentage increase in the consumer
price index for all urban consumers (all items; U.S. city
average) over such period; and
``(4) in applying section 1925, medical assistance is
required to be provided under such section only if it is
required to be provided under section 408(a)(13).
``(b) In the case of a waiver of a provision of part A of
title IV in effect with respect to a State as of July 16,
1996, if the waiver affects eligibility of individuals for
medical assistance under this title, such waiver may continue
to be applied, at the option of the State, in relation to
this title after the date the waiver would otherwise
expire.''.
(b) Plan Amendment.--Section 1902(a) (42 U.S.C. 1396a(a))
is amended--
[[Page H7861]]
(1) by striking ``and'' at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62) and
inserting ``; and'', and
(3) by inserting after paragraph (62) the following new
paragraph:
``(63) provide for continuing to administer eligibility
standards with respect to individuals who are (or seek to be)
eligible for medical assistance based on the application of
section 1931.''.
(c) Conforming Amendments.--(1) Section 1902(c) (42 U.S.C.
1396a(c)) is amended by striking ``if--'' and all that
follows and inserting the following: ``if the State requires
individuals described in subsection (l)(1) to apply for
assistance under the State program funded under part A of
title IV as a condition of applying for or receiving medical
assistance under this title.''.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by
striking paragraph (9).
SEC. 4116. EFFECTIVE DATE; TRANSITION RULE.
(a) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subtitle, this subtitle and the amendments made by this
subtitle shall take effect on July 1, 1997.
(2) Delayed effective date for certain provisions.--
Notwithstanding any other provision of this section,
paragraphs (2), (3), (4), (5), (8), and (10) of
section 409(a) and section 411(a) of the Social Security
Act (as added by the amendments made by section 4103(a) of
this Act) shall not take effect with respect to a State
until, and shall apply only with respect to conduct that
occurs on or after, the later of--
(A) July 1, 1997; or
(B) the date that is 6 months after the date the Secretary
of Health and Human Services receives from the State a plan
described in section 402(a) of the Social Security Act (as
added by such amendment).
(3) Elimination of child care programs.--The amendments
made by section 4103(d) shall take effect on October 1, 1996.
(4) Definitions applicable to new child care entitlement.--
Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social
Security Act, as added by the amendments made by section
4103(a) of this Act, shall take effect on October 1, 1996.
(b) Transition Rules.--Effective on the date of the
enactment of this Act:
(1) State option to accelerate effective date.--
(A) In general.--If the Secretary of Health and Human
Services receives from a State a plan described in section
402(a) of the Social Security Act (as added by the amendment
made by section 4103(a)(1) of this Act), then--
(i) on and after the date of such receipt--
(I) except as provided in clause (ii), this subtitle and
the amendments made by this subtitle (other than by section
4103(d) of this Act) shall apply with respect to the State;
and
(II) the State shall be considered an eligible State for
purposes of part A of title IV of the Social Security Act (as
in effect pursuant to the amendments made by such section
4103(a)); and
(ii) during the period that begins on the date of such
receipt and ends on June 30, 1997, there shall remain in
effect with respect to the State--
(I) section 403(h) of the Social Security Act (as in effect
on September 30, 1995); and
(II) all State reporting requirements under parts A and F
of title IV of the Social Security Act (as in effect on
September 30, 1995), modified by the Secretary as
appropriate, taking into account the State program under part
A of title IV of the Social Security Act (as in effect
pursuant to the amendments made by such section 4103(a)).
(B) Limitations on federal obligations.--
(i) Under afdc program.--The total obligations of the
Federal Government to a State under part A of title IV of the
Social Security Act (as in effect on September 30, 1995) with
respect to expenditures in fiscal year 1997 shall not exceed
an amount equal to the State family assistance grant.
(ii) Under temporary family assistance program.--
Notwithstanding section 403(a)(1) of the Social Security Act
(as in effect pursuant to the amendments made by section
4103(a) of this Act), the total obligations of the Federal
Government to a State under such section 403(a)(1)--
(I) for fiscal year 1996, shall be an amount equal to--
(aa) the State family assistance grant; multiplied by
(bb) \1/366\ of the number of days during the period that
begins on the date the Secretary of Health and Human Services
first receives from the State a plan described in section
402(a) of the Social Security Act (as added by the
amendment made by section 4103(a)(1) of this Act) and ends
on September 30, 1996; and
(II) for fiscal year 1997, shall be an amount equal to the
lesser of--
(aa) the amount (if any) by which the State family
assistance grant exceeds the total obligations of the Federal
Government to the State under part A of title IV of the
Social Security Act (as in effect on September 30, 1995) with
respect to expenditures in fiscal year 1997; or
(bb) the State family assistance grant, multiplied by \1/
365\ of the number of days during the period that begins on
October 1, 1996, or the date the Secretary of Health and
Human Services first receives from the State a plan described
in section 402(a) of the Social Security Act (as added by the
amendment made by section 4103(a)(1) of this Act), whichever
is later, and ends on September 30, 1997.
(iii) Child care obligations excluded in determining
federal afdc obligations.--As used in this subparagraph, the
term ``obligations of the Federal Government to the State
under part A of title IV of the Social Security Act'' does
not include any obligation of the Federal Government with
respect to child care expenditures by the State.
(C) Submission of state plan for fiscal year 1996 or 1997
deemed acceptance of grant limitations and formula and
termination of afdc entitlement.--The submission of a plan by
a State pursuant to subparagraph (A) is deemed to
constitute--
(i) the State's acceptance of the grant reductions under
subparagraph (B) (including the formula for computing the
amount of the reduction); and
(ii) the termination of any entitlement of any individual
or family to benefits or services under the State AFDC
program.
(D) Definitions.--As used in this paragraph:
(i) State afdc program.--The term ``State AFDC program''
means the State program under parts A and F of title IV of
the Social Security Act (as in effect on September 30, 1995).
(ii) State.--The term ``State'' means the 50 States and the
District of Columbia.
(iii) State family assistance grant.--The term ``State
family assistance grant'' means the State family assistance
grant (as defined in section 403(a)(1)(B) of the Social
Security Act, as added by the amendment made by section
4103(a)(1) of this Act).
(2) Claims, actions, and proceedings.--The amendments made
by this subtitle shall not apply with respect to--
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services
provided before the effective date of this subtitle under the
provisions amended; and
(B) administrative actions and proceedings commenced before
such date, or authorized before such date to be commenced,
under such provisions.
(3) Closing out account for those programs terminated or
substantially modified by this subtitle.--In closing out
accounts, Federal and State officials may use scientifically
acceptable statistical sampling techniques. Claims made with
respect to State expenditures under a State plan approved
under part A of title IV of the Social Security Act (as in
effect on September 30, 1995) with respect to assistance or
services provided on or before September 30, 1995, shall be
treated as claims with respect to expenditures during fiscal
year 1995 for purposes of reimbursement even if payment
was made by a State on or after October 1, 1995. Each
State shall complete the filing of all claims under the
State plan (as so in effect) within 2 years after the date
of the enactment of this Act. The head of each Federal
department shall--
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs under
such State plans; and
(B) reimburse States for any payments made for assistance
or services provided during a prior fiscal year from funds
for fiscal year 1995, rather than from funds authorized by
this subtitle.
(4) Continuance in office of assistant secretary for family
support.--The individual who, on the day before the effective
date of this subtitle, is serving as Assistant Secretary for
Family Support within the Department of Health and Human
Services shall, until a successor is appointed to such
position--
(A) continue to serve in such position; and
(B) except as otherwise provided by law--
(i) continue to perform the functions of the Assistant
Secretary for Family Support under section 417 of the Social
Security Act (as in effect before such effective date); and
(ii) have the powers and duties of the Assistant Secretary
for Family Support under section 416 of the Social Security
Act (as in effect pursuant to the amendment made by section
4103(a)(1) of this Act).
(c) Termination of Entitlement Under AFDC Program.--
Effective October 1, 1996, no individual or family shall be
entitled to any benefits or services under any State plan
approved under part A or F of title IV of the Social Security
Act (as in effect on September 30, 1995).
Subtitle B--Supplemental Security Income
SEC. 4200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
subtitle an amendment is expressed in terms of an amendment
to or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
CHAPTER 1--ELIGIBILITY RESTRICTIONS
SEC. 4201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS
FOUND TO HAVE FRAUDULENTLY MISREPRESENTED
RESIDENCE IN ORDER TO OBTAIN BENEFITS
SIMULTANEOUSLY IN 2 OR MORE STATES.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 105(b)(4) of the Contract with America
Advancement Act of 1996, is amended by redesignating
paragraph (5) as paragraph (3) and by adding at the end the
following new paragraph:
``(4)(A) No person shall be considered an eligible
individual or eligible spouse for purposes of this title
during the 10-year period
[[Page H7862]]
that begins on the date the person is convicted in Federal or
State court of having made a fraudulent statement or
representation with respect to the place of residence of the
person in order to receive assistance simultaneously from 2
or more States under programs that are funded under title IV,
title XIX, or the Food Stamp Act of 1977, or benefits in 2 or
more States under the supplemental security income program
under this title.
``(B) As soon as practicable after the conviction of a
person in a Federal or State court as described in
subparagraph (A), an official of such court shall notify the
Commissioner of such conviction.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 4202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND
PROBATION AND PAROLE VIOLATORS.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as
amended by section 4201(a) of this Act, is amended by adding
at the end the following new paragraph:
``(5) No person shall be considered an eligible individual
or eligible spouse for purposes of this title with respect to
any month if during such month the person is--
``(A) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the place
from which the person flees, for a crime, or an attempt to
commit a crime, which is a felony under the laws of the place
from which the person flees, or which, in the case of the
State of New Jersey, is a high misdemeanor under the laws of
such State; or
``(B) violating a condition of probation or parole imposed
under Federal or State law.''.
(b) Exchange of Information.--Section 1611(e) (42 U.S.C.
1382(e)), as amended by section 4201(a) of this Act and
subsection (a) of this section, is amended by adding at the
end the following new paragraph:
``(6) Notwithstanding any other provision of law (other
than section 6103 of the Internal Revenue Code of 1986), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, Social Security number, and
photograph (if applicable) of any recipient of benefits under
this title, if the officer furnishes the Commissioner with
the name of the recipient, and other identifying information
as reasonably required by the Commissioner to establish the
unique identity of the recipient, and notifies the
Commissioner that--
``(A) the recipient--
``(i) is described in subparagraph (A) or (B) of paragraph
(5); or
``(ii) has information that is necessary for the officer to
conduct the officer's official duties; and
``(B) the location or apprehension of the recipient is
within the officer's official duties.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 4203. TREATMENT OF PRISONERS.
(a) Implementation of Prohibition Against Payment of
Benefits to Prisoners.--
(1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1))
is amended by adding at the end the following new
subparagraph:
``(I)(i) The Commissioner shall enter into an agreement,
with any interested State or local institution described in
clause (i) or (ii) of section 202(x)(1)(A) the primary
purpose of which is to confine individuals as described in
section 202(x)(1)(A), under which--
``(I) the institution shall provide to the Commissioner, on
a monthly basis and in a manner specified by the
Commissioner, the names, social security account numbers,
dates of birth, confinement commencement dates, and, to the
extent available to the institution, such other identifying
information concerning the inmates of the institution as the
Commissioner may require for the purpose of carrying out
paragraph (1); and
``(II) the Commissioner shall pay to any such institution,
with respect to each inmate of the institution who is
eligible for a benefit under this title for the month
preceding the first month throughout which such inmate is in
such institution and becomes ineligible for such benefit as a
result of the application of this subparagraph, $400 if the
institution furnishes the information described in subclause
(I) to the Commissioner within 30 days after the date such
individual becomes an inmate of such institution, or $200 if
the institution furnishes such information after 30 days
after such date but within 90 days after such date.
``(ii)(I) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered
into under clause (i) or to information exchanged pursuant
to such agreement.
``(II) The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any Federal or
federally-assisted cash, food, or medical assistance program
for eligibility purposes.
``(iii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect to
the same individual under an agreement entered into under
section 202(x)(3)(B).
``(iv) Payments to institutions required by clause (i)(II)
shall be made from funds otherwise available for the payment
of benefits under this title and shall be treated as direct
spending for purposes of the Balanced Budget and Emergency
Deficit Control Act of 1985.''.
(2) Conforming oasdi amendments.--Section 202(x)(3) (42
U.S.C. 402(x)(3)) is amended--
(A) by inserting ``(A)'' after ``(3)''; and
(B) by adding at the end the following new subparagraph:
``(B)(i) The Commissioner shall enter into an agreement,
with any interested State or local institution described in
clause (i) or (ii) of paragraph (1)(A) the primary purpose of
which is to confine individuals as described in paragraph
(1)(A), under which--
``(I) the institution shall provide to the Commissioner, on
a monthly basis and in a manner specified by the
Commissioner, the names, social security account numbers,
dates of birth, confinement commencement dates, and, to the
extent available to the institution, such other identifying
information concerning the individuals confined in the
institution as the Commissioner may require for the purpose
of carrying out paragraph (1); and
``(II) the Commissioner shall pay to any such institution,
with respect to each individual who is entitled to a benefit
under this title for the month preceding the first month
throughout which such individual is confined in such
institution as described in paragraph (1)(A), $400 if the
institution furnishes the information described in subclause
(I) to the Commissioner within 30 days after the date such
individual's confinement in such institution begins, or $200
if the institution furnishes such information after 30 days
after such date but within 90 days after such date.
``(ii)(I) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered into
under clause (i) or to information exchanged pursuant to such
agreement.
``(II) The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any Federal or
federally-assisted cash, food, or medical assistance program
for eligibility purposes.
``(iii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect to
the same individual under an agreement entered into under
section 1611(e)(1)(I).
``(iv) There shall be transferred from the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, as appropriate, such sums as may be
necessary to enable the Commissioner to make payments to
institutions required by clause (i)(II). Sums so transferred
shall be treated as direct spending for purposes of the
Balanced Budget and Emergency Deficit Control Act of 1985 and
excluded from budget totals in accordance with section 13301
of the Budget Enforcement Act of 1990.''.
(3) Effective date.--The amendments made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the
seventh month beginning after the month in which this Act is
enacted.
(b) Elimination of OASDI Requirement That Confinement Stem
From Crime Punishable by Imprisonment for More Than 1 Year.--
(1) In general.--Section 202(x)(1)(A) (42 U.S.C.
402(x)(1)(A)) is amended--
(A) in the matter preceding clause (i), by striking
``during'' and inserting ``throughout'';
(B) in clause (i), by striking ``pursuant'' and all that
follows through ``imposed)''; and
(C) in clause (ii)(I), by striking ``an offense punishable
by imprisonment for more than 1 year'' and inserting ``a
criminal offense''.
(2) Effective date.--The amendments made by this subsection
shall be effective with respect to benefits payable for
months beginning more than 180 days after the date of the
enactment of this Act.
(c) Study of Other Potential Improvements in the Collection
of Information Respecting Public Inmates.--
(1) Study.--The Commissioner of Social Security shall
conduct a study of the desirability, feasibility, and cost
of--
(A) establishing a system under which Federal, State, and
local courts would furnish to the Commissioner such
information respecting court orders by which individuals are
confined in jails, prisons, or other public penal,
correctional, or medical facilities as the Commissioner may
require for the purpose of carrying out sections 202(x) and
1611(e)(1) of the Social Security Act; and
(B) requiring that State and local jails, prisons, and
other institutions that enter into agreements with the
Commissioner under section 202(x)(3)(B) or 1611(e)(1)(I) of
the Social Security Act furnish the information required by
such agreements to the Commissioner by means of an electronic
or other sophisticated data exchange system.
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, the Commissioner of Social Security
shall submit a report on the results of the study conducted
pursuant to this subsection to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives.
(d) Additional Report to Congress.--Not later than October
1, 1998, the Commissioner of Social Security shall provide to
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a list of the
institutions that are and are not providing information to
the Commissioner under sections 202(x)(3)(B) and
1611(e)(1)(I) of the Social Security Act (as added by this
section).
[[Page H7863]]
SEC. 4204. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.
(a) In General.--Subparagraphs (A) and (B) of section
1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as
follows:
``(A) the first day of the month following the date such
application is filed, or
``(B) the first day of the month following the date such
individual becomes eligible for such benefits with respect to
such application.''.
(b) Special Rule Relating to Emergency Advance Payments.--
Section 1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
(1) by inserting ``for the month following the date the
application is filed'' after ``is presumptively eligible for
such benefits''; and
(2) by inserting ``, which shall be repaid through
proportionate reductions in such benefits over a period of
not more than 6 months'' before the semicolon.
(c) Conforming Amendments.--
(1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended by
striking ``at the time the application or request is
filed'' and inserting ``on the first day of the month
following the date the application or request is filed''.
(2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended
by inserting ``following the month'' after ``beginning with
the month''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to applications for benefits under title XVI of the
Social Security Act filed on or after the date of the
enactment of this Act, without regard to whether regulations
have been issued to implement such amendments.
(2) Benefits under title xvi.--For purposes of this
subsection, the term ``benefits under title XVI of the Social
Security Act'' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a) of
the Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Public Law 93-
66.
CHAPTER 2--BENEFITS FOR DISABLED CHILDREN
SEC. 4211. DEFINITION AND ELIGIBILITY RULES.
(a) Definition of Childhood Disability.--Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)), as amended by section 105(b)(1) of
the Contract with America Advancement Act of 1996, is
amended--
(1) in subparagraph (A), by striking ``An individual'' and
inserting ``Except as provided in subparagraph (C), an
individual'';
(2) in subparagraph (A), by striking ``(or, in the case of
an individual under the age of 18, if he suffers from any
medically determinable physical or mental impairment of
comparable severity)'';
(3) by redesignating subparagraphs (C) through (I) as
subparagraphs (D) through (J), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
``(C)(i) An individual under the age of 18 shall be
considered disabled for the purposes of this title if that
individual has a medically determinable physical or mental
impairment, which results in marked and severe functional
limitations, and which can be expected to result in death or
which has lasted or can be expected to last for a continuous
period of not less than 12 months.
``(ii) The Commissioner shall ensure that the combined
effects of all physical or mental impairments of an
individual are taken into account in determining whether an
individual is disabled in accordance with clause (i).
``(iii) The Commissioner shall ensure that the regulations
prescribed under this subparagraph provide for the evaluation
of children who cannot be tested because of their young age.
``(iv) Notwithstanding the preceding provisions of this
subparagraph, no individual under the age of 18 who engages
in substantial gainful activity (determined in accordance
with regulations prescribed pursuant to subparagraph (E)) may
be considered to be disabled.''; and
(5) in subparagraph (F), as redesignated by paragraph (3),
by striking ``(D)'' and inserting ``(E)''.
(b) Changes to Childhood SSI Regulations.--
(1) Modification to medical criteria for evaluation of
mental and emotional disorders.--The Commissioner of Social
Security shall modify sections 112.00C.2. and 112.02B.2.c.(2)
of appendix 1 to subpart P of part 404 of title 20, Code of
Federal Regulations, to eliminate references to maladaptive
behavior in the domain of personal/behavorial function.
(2) Discontinuance of individualized functional
assessment.--The Commissioner of Social Security shall
discontinue the individualized functional assessment for
children set forth in sections 416.924d and 416.924e of title
20, Code of Federal Regulations.
(c) Medical Improvement Review Standard as it Applies to
Individuals Under the Age of 18.--Section 1614(a)(4) (42
U.S.C. 1382(a)(4)) is amended--
(1) by redesignating subclauses (I) and (II) of clauses (i)
and (ii) of subparagraph (B) as items (aa) and (bb),
respectively;
(2) by redesignating clauses (i) and (ii) of subparagraphs
(A) and (B) as subclauses (I) and (II), respectively;
(3) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively;
(4) by inserting before clause (i) (as redesignated by
paragraph (3)) the following new subparagraph:
``(A) in the case of an individual who is age 18 or older--
'';
(5) by inserting after and below subparagraph (A)(iii) (as
so redesignated) the following new subparagraph:
``(B) in the case of an individual who is under the age of
18--
``(i) substantial evidence which demonstrates that there
has been medical improvement in the individual's impairment
or combination of impairments, and that such impairment or
combination of impairments no longer results in marked and
severe functional limitations; or
``(ii) substantial evidence which demonstrates that, as
determined on the basis of new or improved diagnostic
techniques or evaluations, the individual's impairment or
combination of impairments, is not as disabling as it was
considered to be at the time of the most recent prior
decision that the individual was under a disability or
continued to be under a disability, and such impairment or
combination of impairments does not result in marked and
severe functional limitations; or'';
(6) by redesignating subparagraph (D) as subparagraph (C)
and by inserting in such subparagraph ``in the case of any
individual,'' before ``substantial evidence''; and
(7) in the first sentence following subparagraph (C) (as
redesignated by paragraph (6)), by--
(A) inserting ``(i)'' before ``to restore''; and
(B) inserting ``, or (ii) in the case of an individual
under the age of 18, to eliminate or improve the individual's
impairment or combination of impairments so that it no longer
results in marked and severe functional limitations''
immediately before the period.
(d) Effective Dates, Etc.--
(1) Effective dates.--
(A) Subsections (a) and (b).--
(i) In general.--The provisions of, and amendments made by,
subsections (a) and (b) shall apply to any individual who
applies for, or whose claim is finally adjudicated with
respect to, benefits under title XVI of the Social Security
Act on or after the date of the enactment of this Act,
without regard to whether regulations have been issued to
implement such provisions and amendments.
(ii) Determination of final adjudication.--For purposes of
clause (i), no individual's claim with respect to such
benefits may be considered to be finally adjudicated before
such date of enactment if, on or after such date, there is
pending a request for either administrative or judicial
review with respect to such claim that has been denied in
whole, or there is pending, with respect to such claim,
readjudication by the Commissioner of Social Security
pursuant to relief in a class action or implementation by the
Commissioner of a court remand order.
(B) Subsection (c).--The amendments made by subsection (c)
shall apply with respect to benefits under title XVI of the
Social Security Act for months beginning on or after the date
of the enactment of this Act, without regard to whether
regulations have been issued to implement such amendments.
(2) Application to current recipients.--
(A) Eligibility redeterminations.--During the period
beginning on the date of the enactment of this Act and ending
on the date which is 1 year after such date of enactment,
the Commissioner of Social Security shall redetermine the
eligibility of any individual under age 18 who is eligible
for supplemental security income benefits by reason of
disability under title XVI of the Social Security Act as
of the date of the enactment of this Act and whose
eligibility for such benefits may terminate by reason of
the provisions of, or amendments made by, subsections (a)
and (b). With respect to any redetermination under this
subparagraph--
(i) section 1614(a)(4) of the Social Security Act (42
U.S.C. 1382c(a)(4)) shall not apply;
(ii) the Commissioner of Social Security shall apply the
eligibility criteria for new applicants for benefits under
title XVI of such Act;
(iii) the Commissioner shall give such redetermination
priority over all continuing eligibility reviews and other
reviews under such title; and
(iv) such redetermination shall be counted as a review or
redetermination otherwise required to be made under section
208 of the Social Security Independence and Program
Improvements Act of 1994 or any other provision of title XVI
of the Social Security Act.
(B) Grandfather provision.--The provisions of, and
amendments made by, subsections (a) and (b), and the
redetermination under subparagraph (A), shall only apply with
respect to the benefits of an individual described in
subparagraph (A) for months beginning on or after the date of
the redetermination with respect to such individual.
(C) Notice.--Not later than January 1, 1997, the
Commissioner of Social Security shall notify an individual
described in subparagraph (A) of the provisions of this
paragraph.
(3) Report.--The Commissioner of Social Security shall
report to the Congress regarding the progress made in
implementing the provisions of, and amendments made by, this
section on child disability evaluations not later than 180
days after the date of the enactment of this Act.
(4) Regulations.--Notwithstanding any other provision of
law, the Commissioner of Social Security shall submit for
review to the committees of jurisdiction in the Congress any
final regulation pertaining to the eligibility of individuals
under age 18 for benefits under title XVI of the Social
Security Act at least 45 days before the effective
[[Page H7864]]
date of such regulation. The submission under this paragraph
shall include supporting documentation providing a cost
analysis, workload impact, and projections as to how the
regulation will effect the future number of recipients under
such title.
(5) Benefits under title xvi.--For purposes of this
subsection, the term ``benefits under title XVI of the Social
Security Act'' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a) of
the Social Security Act, and payments pursuant to an
agreement entered into under section 212(b) of Public Law 93-
66.
SEC. 4212. ELIGIBILITY REDETERMINATIONS AND CONTINUING
DISABILITY REVIEWS.
(a) Continuing Disability Reviews Relating to Certain
Children.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)),
as redesignated by section 4211(a)(3) of this Act, is
amended--
(1) by inserting ``(i)'' after ``(H)''; and
(2) by adding at the end the following new clause:
``(ii)(I) Not less frequently than once every 3 years, the
Commissioner shall review in accordance with paragraph (4)
the continued eligibility for benefits under this title of
each individual who has not attained 18 years of age and is
eligible for such benefits by reason of an impairment (or
combination of impairments) which is likely to improve (or,
at the option of the Commissioner, which is unlikely to
improve).
``(II) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of
review, evidence demonstrating that the recipient is, and has
been, receiving treatment, to the extent considered medically
necessary and available, of the condition which was the basis
for providing benefits under this title.
``(III) If the representative payee refuses to comply
without good cause with the requirements of subclause (II),
the Commissioner of Social Security shall, if the
Commissioner determines it is in the best interest of the
individual, promptly suspend payment of benefits to the
representative payee, and provide for payment of benefits
to an alternative representative payee of the individual
or, if the interest of the individual under this title
would be served thereby, to the individual.
``(IV) Subclause (II) shall not apply to the representative
payee of any individual with respect to whom the Commissioner
determines such application would be inappropriate or
unnecessary. In making such determination, the Commissioner
shall take into consideration the nature of the individual's
impairment (or combination of impairments). Section 1631(c)
shall not apply to a finding by the Commissioner that the
requirements of subclause (II) should not apply to an
individual's representative payee.''.
(b) Disability Eligibility Redeterminations Required for
SSI Recipients Who Attain 18 Years of Age.--
(1) In general.--Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as amended by subsection (a) of this
section, is amended by adding at the end the following new
clause:
``(iii) If an individual is eligible for benefits under
this title by reason of disability for the month preceding
the month in which the individual attains the age of 18
years, the Commissioner shall redetermine such eligibility--
``(I) during the 1-year period beginning on the
individual's 18th birthday; and
``(II) by applying the criteria used in determining the
initial eligibility for applicants who are age 18 or older.
With respect to a redetermination under this clause,
paragraph (4) shall not apply and such redetermination shall
be considered a substitute for a review or redetermination
otherwise required under any other provision of this
subparagraph during that 1-year period.''.
(2) Conforming repeal.--Section 207 of the Social Security
Independence and Program Improvements Act of 1994 (42 U.S.C.
1382 note; 108 Stat. 1516) is hereby repealed.
(c) Continuing Disability Review Required for Low Birth
Weight Babies.--Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as amended by subsections (a) and (b) of
this section, is amended by adding at the end the following
new clause:
``(iv)(I) Not later than 12 months after the birth of an
individual, the Commissioner shall review in accordance with
paragraph (4) the continuing eligibility for benefits under
this title by reason of disability of such individual whose
low birth weight is a contributing factor material to the
Commissioner's determination that the individual is disabled.
``(II) A review under subclause (I) shall be considered a
substitute for a review otherwise required under any other
provision of this subparagraph during that 12-month period.
``(III) A representative payee of a recipient whose case is
reviewed under this clause shall present, at the time of
review, evidence demonstrating that the recipient is, and has
been, receiving treatment, to the extent considered medically
necessary and available, of the condition which was the basis
for providing benefits under this title.
``(IV) If the representative payee refuses to comply
without good cause with the requirements of subclause (III),
the Commissioner of Social Security shall, if the
Commissioner determines it is in the best interest of the
individual, promptly suspend payment of benefits to the
representative payee, and provide for payment of benefits to
an alternative representative payee of the individual or, if
the interest of the individual under this title would be
served thereby, to the individual.
``(V) Subclause (III) shall not apply to the representative
payee of any individual with respect to whom the Commissioner
determines such application would be inappropriate or
unnecessary. In making such determination, the Commissioner
shall take into consideration the nature of the individual's
impairment (or combination of impairments). Section 1631(c)
shall not apply to a finding by the Commissioner that the
requirements of subclause (III) should not apply to an
individual's representative payee.''.
(d) Effective Date.--The amendments made by this section
shall apply to benefits for months beginning on or after the
date of the enactment of this Act, without regard to whether
regulations have been issued to implement such amendments.
SEC. 4213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) Disposal of Resources for Less Than Fair Market
Value.--
(1) In general.--Section 1613(c) (42 U.S.C. 1382b(c)) is
amended to read as follows:
``Disposal of Resources for Less Than Fair Market Value
``(c)(1)(A)(i) If an individual who has not attained 18
years of age (or any person acting on such individual's
behalf) disposes of resources of the individual for less than
fair market value on or after the look-back date specified in
clause (ii)(I), the individual is ineligible for benefits
under this title for months during the period beginning on
the date specified in clause (iii) and equal to the number of
months specified in clause (iv).
``(ii)(I) The look-back date specified in this subclause is
a date that is 36 months before the date specified in
subclause (II).
``(II) The date specified in this subclause is the date on
which the individual applies for benefits under this title
or, if later, the date on which the disposal of the
individual's resources for less than fair market value
occurs.
``(iii) The date specified in this clause is the first day
of the first month that follows the month in which the
individual's resources were disposed of for less than fair
market value and that does not occur in any other period of
ineligibility under this paragraph.
``(iv) The number of months of ineligibility under this
clause for an individual shall be equal to--
``(I) the total, cumulative uncompensated value of all the
individual's resources so disposed of on or after the look-
back date specified in clause (ii)(I), divided by
``(II) the amount of the maximum monthly benefit payable
under section 1611(b) to an eligible individual for the month
in which the date specified in clause (ii)(II) occurs.
``(B) An individual shall not be ineligible for benefits
under this title by reason of subparagraph (A) if the
Commissioner determines that--
``(i) the individual intended to dispose of the resources
at fair market value;
``(ii) the resources were transferred exclusively for a
purpose other than to qualify for benefits under this title;
``(iii) all resources transferred for less than fair market
value have been returned to the individual; or
``(iv) the denial of eligibility would work an undue
hardship on the individual (as determined on the basis of
criteria established by the Commissioner in regulations).
``(C) For purposes of this paragraph, in the case of a
resource held by an individual in common with another person
or persons in a joint tenancy, tenancy in common, or similar
arrangement, the resource (or the affected portion of such
resource) shall be considered to be disposed of by such
individual when any action is taken, either by such
individual or by any other person, that reduces or eliminates
such individual's ownership or control of such resource.
``(D)(i) Notwithstanding subparagraph (A), this subsection
shall not apply to a transfer of a resource to a trust if the
portion of the trust attributable to such resource is
considered a resource available to the individual pursuant to
subsection (e)(3) (or would be so considered, but for the
application of subsection (e)(4)).
``(ii) In the case of a trust established by an individual
(within the meaning of subsection (e)(2)(A)), if from such
portion of the trust (if any) that is considered a resource
available to the individual pursuant to subsection (e)(3) (or
would be so considered but for the application of subsection
(e)(2)) or the residue of such portion upon the termination
of the trust--
``(I) there is made a payment other than to or for the
benefit of the individual, or
``(II) no payment could under any circumstance be made to
the individual,
then the payment described in subclause (I) or the
foreclosure of payment described in subclause (II) shall be
considered a disposal of resources by the individual subject
to this subsection, as of the date of such payment or
foreclosure, respectively.
``(2)(A) At the time an individual (and the individual's
eligible spouse, if any) applies for benefits under this
title, and at the time the eligibility of an individual (and
such spouse, if any) for such benefits is redetermined, the
Commissioner of Social Security shall--
``(i) inform such individual of the provisions of paragraph
(1) providing for a period
[[Page H7865]]
of ineligibility for benefits under this title for
individuals who make certain dispositions of resources for
less than fair market value, and inform such individual that
information obtained pursuant to clause (ii) will be made
available to the State agency administering a State plan
approved under title XIX (as provided in subparagraph (B));
and
``(ii) obtain from such individual information which may be
used in determining whether or not a period of ineligibility
for such benefits would be required by reason of paragraph
(1).
``(B) The Commissioner of Social Security shall make the
information obtained under subparagraph (A)(ii) available, on
request, to any State agency administering a State plan
approved under title XIX.
``(3) For purposes of this subsection--
``(A) the term `trust' includes any legal instrument or
device that is similar to a trust; and
``(B) the term `benefits under this title' includes
supplementary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant
to an agreement entered into under section 212(b) of Public
Law 93-66.''.
(2) Effective date.--The amendment made by this subsection
shall be effective with respect to transfers that occur at
least 90 days after the date of the enactment of this Act.
(b) Treatment of Assets Held in Trust.--
(1) Treatment as resource.--Section 1613 (42 U.S.C. 1382)
is amended by adding at the end the following new subsection:
``Trusts
``(e)(1) In determining the resources of an individual who
has not attained 18 years of age, the provisions of paragraph
(3) shall apply to a trust established by such individual.
``(2)(A) For purposes of this subsection, an individual
shall be considered to have established a trust if any assets
of the individual were transferred to the trust.
``(B) In the case of an irrevocable trust to which the
assets of an individual and the assets of any other person or
persons were transferred, the provisions of this subsection
shall apply to the portion of the trust attributable to the
assets of the individual.
``(C) This subsection shall apply without regard to--
``(i) the purposes for which the trust is established;
``(ii) whether the trustees have or exercise any discretion
under the trust;
``(iii) any restrictions on when or whether distributions
may be made from the trust; or
``(iv) any restrictions on the use of distributions from
the trust.
``(3)(A) In the case of a revocable trust, the corpus of
the trust shall be considered a resource available to the
individual.
``(B) In the case of an irrevocable trust, if there are any
circumstances under which payment from the trust could be
made to or for the benefit of the individual, the portion of
the corpus from which payment to or for the benefit of the
individual could be made shall be considered a resource
available to the individual.
``(4) The Commissioner may waive the application of this
subsection with respect to any individual if the Commissioner
determines, on the basis of criteria prescribed in
regulations, that such application would work an undue
hardship on such individual.
``(5) For purposes of this subsection--
``(A) the term `trust' includes any legal instrument or
device that is similar to a trust;
``(B) the term `corpus' means all property and other
interests held by the trust, including accumulated earnings
and any other addition to such trust after its establishment
(except that such term does not include any such earnings or
addition in the month in which such earnings or addition is
credited or otherwise transferred to the trust);
``(C) the term `asset' includes any income or resource of
the individual, including--
``(i) any income otherwise excluded by section 1612(b);
``(ii) any resource otherwise excluded by this section; and
``(iii) any other payment or property that the individual
is entitled to but does not receive or have access to because
of action by--
``(I) such individual;
``(II) a person or entity (including a court) with legal
authority to act in place of, or on behalf of, such
individual; or
``(III) a person or entity (including a court) acting at
the direction of, or upon the request of, such individual;
and
``(D) the term `benefits under this title' includes
supplementary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant
to an agreement entered into under section 212(b) of Public
Law 93-66.''.
(2) Treatment as income.--Section 1612(a)(2) (42 U.S.C.
1382a(a)(2)) is amended--
(A) by striking ``and'' at the end of subparagraph (E);
(B) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(G) any earnings of, and additions to, the corpus of a
trust (as defined in section 1613(f)) established by an
individual (within the meaning of section 1613(e)(2)(A)) and
of which such individual is a beneficiary (other than a trust
to which section 1613(e)(4) applies), except that in the case
of an irrevocable trust, there shall exist circumstances
under which payment from such earnings or additions could be
made to, or for the benefit of, such individual.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date which is 90 days after the date
of the enactment of this Act, and shall apply to trusts
established on or after such date.
(c) Requirement To Establish Account.--
(1) In general.--Section 1631(a)(2) (42 U.S.C. 1383(a)(2))
is amended--
(A) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(B) by inserting after subparagraph (E) the following new
subparagraph:
``(F)(i)(I) Each representative payee of an eligible
individual under the age of 18 who is eligible for the
payment of benefits described in subclause (II) shall
establish on behalf of such individual an account in a
financial institution into which such benefits shall be paid,
and shall thereafter maintain such account for use in
accordance with clause (ii).
``(II) Benefits described in this subclause are past-due
monthly benefits under this title (which, for purposes of
this subclause, include State supplementary payments made by
the Commissioner pursuant to an agreement under section 1616
or section 212(b) of Public Law 93-66) in an amount (after
any withholding by the Commissioner for reimbursement to a
State for interim assistance under subsection (g)) that
exceeds the product of--
``(aa) 6, and
``(bb) the maximum monthly benefit payable under this title
to an eligible individual.
``(ii)(I) A representative payee shall use funds in the
account established under clause (i) to pay for allowable
expenses described in subclause (II).
``(II) An allowable expense described in this subclause is
an expense for--
``(aa) education or job skills training;
``(bb) personal needs assistance;
``(cc) special equipment;
``(dd) housing modification;
``(ee) medical treatment;
``(ff) therapy or rehabilitation; or
``(gg) any other item or service that the Commissioner
determines to be appropriate;
provided that such expense benefits such individual and, in
the case of an expense described in item (bb), (cc), (dd),
(ff), or (gg), is related to the impairment (or combination
of impairments) of such individual.
``(III) The use of funds from an account established under
clause (i) in any manner not authorized by this clause--
``(aa) by a representative payee shall be considered a
misapplication of benefits for all purposes of this
paragraph, and any representative payee who knowingly
misapplies benefits from such an account shall be liable to
the Commissioner in an amount equal to the total amount of
such benefits; and
``(bb) by an eligible individual who is his or her own
payee shall be considered a misapplication of benefits for
all purposes of this paragraph and the total amount of such
benefits so used shall be considered to be the uncompensated
value of a disposed resource and shall be subject to the
provisions of section 1613(c).
``(IV) This clause shall continue to apply to funds in the
account after the child has reached age 18, regardless of
whether benefits are paid directly to the beneficiary or
through a representative payee.
``(iii) The representative payee may deposit into the
account established pursuant to clause (i)--
``(I) past-due benefits payable to the eligible individual
in an amount less than that specified in clause (i)(II), and
``(II) any other funds representing an underpayment under
this title to such individual, provided that the amount of
such underpayment is equal to or exceeds the maximum monthly
benefit payable under this title to an eligible individual.
``(iv) The Commissioner of Social Security shall establish
a system for accountability monitoring whereby such
representative payee shall report, at such time and in such
manner as the Commissioner shall require, on activity
respecting funds in the account established pursuant to
clause (i).''.
(2) Exclusion from resources.--Section 1613(a) (42 U.S.C.
1382b(a)) is amended--
(A) by striking ``and'' at the end of paragraph (10);
(B) by striking the period at the end of paragraph (11) and
inserting ``; and''; and
(C) by inserting after paragraph (11) the following new
paragraph:
``(12) any account, including accrued interest or other
earnings thereon, established and maintained in accordance
with section 1631(a)(2)(F).''.
(3) Exclusion from income.--Section 1612(b) (42 U.S.C.
1382a(b)) is amended--
(A) by striking ``and'' at the end of paragraph (19);
(B) by striking the period at the end of paragraph (20) and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(21) the interest or other earnings on any account
established and maintained in accordance with section
1631(a)(2)(F).''.
(4) Effective date.--The amendments made by this subsection
shall apply to payments made after the date of the enactment
of this Act.
SEC. 4214. REDUCTION IN CASH BENEFITS PAYABLE TO
INSTITUTIONALIZED INDIVIDUALS WHOSE MEDICAL
COSTS ARE COVERED BY PRIVATE INSURANCE.
(a) In General.--Section 1611(e)(1)(B) (42 U.S.C.
1382(e)(1)(B)) is amended--
[[Page H7866]]
(1) by striking ``title XIX, or'' and inserting ``title
XIX,''; and
(2) by inserting ``or, in the case of an eligible
individual under the age of 18, receiving payments (with
respect to such individual) under any health insurance policy
issued by a private provider of such insurance'' after
``section 1614(f)(2)(B),''.
(b) Effective Date.--The amendment made by this section
shall apply to benefits for months beginning 90 or more days
after the date of the enactment of this Act, without regard
to whether regulations have been issued to implement such
amendments.
SEC. 4215. REGULATIONS.
Within 3 months after the date of the enactment of this
Act, the Commissioner of Social Security shall prescribe such
regulations as may be necessary to implement the amendments
made by this chapter.
CHAPTER 3--ADDITIONAL ENFORCEMENT PROVISIONS
SEC. 4221. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL
SECURITY INCOME BENEFITS.
(a) In General.--Section 1631(a) (42 U.S.C. 1383) is
amended by adding at the end the following new paragraph:
``(10)(A) If an individual is eligible for past-due monthly
benefits under this title in an amount that (after any
withholding for reimbursement to a State for interim
assistance under subsection (g)) equals or exceeds the
product of--
``(i) 12, and
``(ii) the maximum monthly benefit payable under this title
to an eligible individual (or, if appropriate, to an eligible
individual and eligible spouse),
then the payment of such past-due benefits (after any such
reimbursement to a State) shall be made in installments as
provided in subparagraph (B).
``(B)(i) The payment of past-due benefits subject to this
subparagraph shall be made in not to exceed 3 installments
that are made at 6-month intervals.
``(ii) Except as provided in clause (iii), the amount of
each of the first and second installments may not exceed an
amount equal to the product of clauses (i) and (ii) of
subparagraph (A).
``(iii) In the case of an individual who has--
``(I) outstanding debt attributable to--
``(aa) food,
``(bb) clothing,
``(cc) shelter, or
``(dd) medically necessary services, supplies or equipment,
or medicine; or
``(II) current expenses or expenses anticipated in the near
term attributable to--
``(aa) medically necessary services, supplies or equipment,
or medicine, or
``(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a
public assistance program, the Secretary under title XVIII, a
State plan approved under title XIX, or any private entity
legally liable to provide payment pursuant to an insurance
policy, pre-paid plan, or other arrangement, the limitation
specified in clause (ii) may be exceeded by an amount equal
to the total of such debt and expenses.
``(C) This paragraph shall not apply to any individual who,
at the time of the Commissioner's determination that such
individual is eligible for the payment of past-due monthly
benefits under this title--
``(i) is afflicted with a medically determinable impairment
that is expected to result in death within 12 months; or
``(ii) is ineligible for benefits under this title and the
Commissioner determines that such individual is likely to
remain ineligible for the next 12 months.
``(D) For purposes of this paragraph, the term `benefits
under this title' includes supplementary payments pursuant to
an agreement for Federal administration under section
1616(a), and payments pursuant to an agreement entered into
under section 212(b) of Public Law 93-66.''.
(b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C.
1383(a)(1)) is amended by inserting ``(subject to paragraph
(10))'' immediately before ``in such installments''.
(c) Effective Date.--
(1) In general.--The amendments made by this section are
effective with respect to past-due benefits payable under
title XVI of the Social Security Act after the third month
following the month in which this Act is enacted.
(2) Benefits payable under title xvi.--For purposes of this
subsection, the term ``benefits payable under title XVI of
the Social Security Act'' includes supplementary payments
pursuant to an agreement for Federal administration under
section 1616(a) of the Social Security Act, and payments
pursuant to an agreement entered into under section 212(b) of
Public Law 93-66.
SEC. 4222. RECOVERY OF SUPPLEMENTAL SECURITY INCOME
OVERPAYMENTS FROM SOCIAL SECURITY BENEFITS.
(a) In General.--Part A of title XI is amended by adding at
the end the following new section:
``RECOVERY OF SSI OVERPAYMENTS FROM SOCIAL SECURITY BENEFITS
``Sec. 1146. (a) In General.--Whenever the Commissioner of
Social Security determines that more than the correct amount
of any payment has been made to any person under the
supplemental security income program authorized by title XVI,
and the Commissioner is unable to make proper adjustment or
recovery of the amount so incorrectly paid as provided in
section 1631(b), the Commissioner (notwithstanding section
207) may recover the amount incorrectly paid by decreasing
any amount which is payable under the Federal Old-Age and
Survivors Insurance program or the Federal Disability
Insurance program authorized by title II to that person or
that person's estate.
``(b) No Effect on SSI Benefit Eligibility or Amount.--
Notwithstanding subsections (a) and (b) of section 1611, in
any case in which the Commissioner takes action in accordance
with subsection (a) to recover an overpayment from any
person, neither that person, nor any individual whose
eligibility or benefit amount is determined by considering
any part of that person's income, shall, as a result of such
action--
``(1) become eligible under the program of supplemental
security income benefits under title XVI, or
``(2) if such person or individual is already so eligible,
become eligible for increased benefits thereunder.
``(c) Program Under Title XVI.--For purposes of this
section, the term `supplemental security income program
authorized by title XVI' includes supplementary payments
pursuant to an agreement for Federal administration under
section 1616(a), and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93-66.''.
(b) Conforming Amendments.--
(1) Section 204 (42 U.S.C. 404) is amended by adding at the
end the following new subsection:
``(g) For payments which are adjusted or withheld to
recover an overpayment of supplemental security income
benefits paid under title XVI (including State supplementary
payments which were paid under an agreement pursuant to
section 1616(a) or section 212(b) of Public Law 93-66), see
section 1146.''.
(2) Section 1631(b) is amended by adding at the end the
following new paragraph:
``(5) For the recovery of overpayments of benefits under
this title from benefits payable under title II, see section
1146.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act
and shall apply to overpayments outstanding on or after such
date.
SEC. 4223. REGULATIONS.
Within 3 months after the date of the enactment of this
Act, the Commissioner of Social Security shall prescribe such
regulations as may be necessary to implement the amendments
made by this chapter.
CHAPTER 4--STATE SUPPLEMENTATION PROGRAMS
SEC. 4225. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS
APPLICABLE TO OPTIONAL STATE PROGRAMS FOR
SUPPLEMENTATION OF SSI BENEFITS.
Section 1618 (42 U.S.C. 1382g) is hereby repealed.
CHAPTER 5--STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME PROGRAM
SEC. 4231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME
PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section
4201(c) of this Act, is amended by adding at the end the
following new section:
``ANNUAL REPORT ON PROGRAM
``Sec. 1637. (a) Not later than May 30 of each year, the
Commissioner of Social Security shall prepare and deliver a
report annually to the President and the Congress regarding
the program under this title, including--
``(1) a comprehensive description of the program;
``(2) historical and current data on allowances and
denials, including number of applications and allowance rates
for initial determinations, reconsideration determinations,
administrative law judge hearings, appeals council reviews,
and Federal court decisions;
``(3) historical and current data on characteristics of
recipients and program costs, by recipient group (aged,
blind, disabled adults, and disabled children);
``(4) projections of future number of recipients and
program costs, through at least 25 years;
``(5) number of redeterminations and continuing disability
reviews, and the outcomes of such redeterminations and
reviews;
``(6) data on the utilization of work incentives;
``(7) detailed information on administrative and other
program operation costs;
``(8) summaries of relevant research undertaken by the
Social Security Administration, or by other researchers;
``(9) State supplementation program operations;
``(10) a historical summary of statutory changes to this
title; and
``(11) such other information as the Commissioner deems
useful.
``(b) Each member of the Social Security Advisory Board
shall be permitted to provide an individual report, or a
joint report if agreed, of views of the program under this
title, to be included in the annual report required under
this section.''.
SEC. 4232. STUDY OF DISABILITY DETERMINATION PROCESS.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, and from funds otherwise
appropriated, the Commissioner of Social Security shall make
arrangements with the National Academy of Sciences, or other
independent entity, to conduct a study of the disability
determination process under titles II and XVI of the
[[Page H7867]]
Social Security Act. This study shall be undertaken in
consultation with professionals representing appropriate
disciplines.
(b) Study Components.--The study described in subsection
(a) shall include--
(1) an initial phase examining the appropriateness of, and
making recommendations regarding--
(A) the definitions of disability in effect on the date of
the enactment of this Act and the advantages and
disadvantages of alternative definitions; and
(B) the operation of the disability determination process,
including the appropriate method of performing comprehensive
assessments of individuals under age 18 with physical and
mental impairments;
(2) a second phase, which may be concurrent with the
initial phase, examining the validity, reliability, and
consistency with current scientific knowledge of the
standards and individual listings in the Listing of
Impairments set forth in appendix 1 of subpart P of part 404
of title 20, Code of Federal Regulations, and of related
evaluation procedures as promulgated by the Commissioner of
Social Security; and
(3) such other issues as the applicable entity considers
appropriate.
(c) Reports and Regulations.--
(1) Reports.--The Commissioner of Social Security shall
request the applicable entity, to submit an interim report
and a final report of the findings and recommendations
resulting from the study described in this section to the
President and the Congress not later than 18 months and 24
months, respectively, from the date of the contract for such
study, and such additional reports as the Commissioner deems
appropriate after consultation with the applicable entity.
(2) Regulations.--The Commissioner of Social Security shall
review both the interim and final reports, and shall issue
regulations implementing any necessary changes following each
report.
SEC. 4233. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1999, the Comptroller General of
the United States shall study and report on--
(1) the impact of the amendments made by, and the
provisions of, this subtitle on the supplemental security
income program under title XVI of the Social Security Act;
and
(2) extra expenses incurred by families of children
receiving benefits under such title that are not covered by
other Federal, State, or local programs.
CHAPTER 6--NATIONAL COMMISSION ON THE FUTURE OF DISABILITY
SEC. 4241. ESTABLISHMENT.
There is established a commission to be known as the
National Commission on the Future of Disability (referred to
in this chapter as the ``Commission'').
SEC. 4242. DUTIES OF THE COMMISSION.
(a) In General.--The Commission shall develop and carry out
a comprehensive study of all matters related to the nature,
purpose, and adequacy of all Federal programs serving
individuals with disabilities. In particular, the
Commission shall study the disability insurance program
under title II of the Social Security Act and the
supplemental security income disability program under
title XVI of such Act.
(b) Matters Studied.--The Commission shall prepare an
inventory of Federal programs serving individuals with
disabilities, and shall examine--
(1) trends and projections regarding the size and
characteristics of the population of individuals with
disabilities, and the implications of such analyses for
program planning;
(2) the feasibility and design of performance standards for
the Nation's disability programs;
(3) the adequacy of Federal efforts in rehabilitation
research and training, and opportunities to improve the lives
of individuals with disabilities through all manners of
scientific and engineering research; and
(4) the adequacy of policy research available to the
Federal Government, and what actions might be undertaken to
improve the quality and scope of such research.
(c) Recommendations.--The Commission shall submit to the
appropriate committees of the Congress and to the President
recommendations and, as appropriate, proposals for
legislation, regarding--
(1) which (if any) Federal disability programs should be
eliminated or augmented;
(2) what new Federal disability programs (if any) should be
established;
(3) the suitability of the organization and location of
disability programs within the Federal Government;
(4) other actions the Federal Government should take to
prevent disabilities and disadvantages associated with
disabilities; and
(5) such other matters as the Commission considers
appropriate.
SEC. 4243. MEMBERSHIP.
(a) Number and Appointment.--
(1) In general.--The Commission shall be composed of 15
members, of whom--
(A) five shall be appointed by the President, of whom not
more than 3 shall be of the same major political party;
(B) three shall be appointed by the Majority Leader of the
Senate;
(C) two shall be appointed by the Minority Leader of the
Senate;
(D) three shall be appointed by the Speaker of the House of
Representatives; and
(E) two shall be appointed by the Minority Leader of the
House of Representatives.
(2) Representation.--The Commission members shall be chosen
based on their education, training, or experience. In
appointing individuals as members of the Commission, the
President and the Majority and Minority Leaders of the Senate
and the Speaker and Minority Leader of the House of
Representatives shall seek to ensure that the membership of
the Commission reflects the general interests of the business
and taxpaying community and the diversity of individuals with
disabilities in the United States.
(b) Comptroller General.--The Comptroller General of the
United States shall advise the Commission on the methodology
and approach of the study of the Commission.
(c) Term of Appointment.--The members shall serve on the
Commission for the life of the Commission.
(d) Meetings.--The Commission shall locate its headquarters
in the District of Columbia, and shall meet at the call of
the Chairperson, but not less than 4 times each year during
the life of the Commission.
(e) Quorum.--Ten members of the Commission shall constitute
a quorum, but a lesser number may hold hearings.
(f) Chairperson and Vice Chairperson.--Not later than 15
days after the members of the Commission are appointed, such
members shall designate a Chairperson and Vice Chairperson
from among the members of the Commission.
(g) Continuation of Membership.--If a member of the
Commission becomes an officer or employee of any government
after appointment to the Commission, the individual may
continue as a member until a successor member is appointed.
(h) Vacancies.--A vacancy on the Commission shall be filled
in the manner in which the original appointment was made not
later than 30 days after the Commission is given notice of
the vacancy.
(i) Compensation.--Members of the Commission shall receive
no additional pay, allowances, or benefits by reason of their
service on the Commission.
(j) Travel Expenses.--Each member of the Commission shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of
title 5, United States Code.
SEC. 4244. STAFF AND SUPPORT SERVICES.
(a) Director.--
(1) Appointment.--Upon consultation with the members of the
Commission, the Chairperson shall appoint a Director of the
Commission.
(2) Compensation.--The Director shall be paid the rate of
basic pay for level V of the Executive Schedule.
(b) Staff.--With the approval of the Commission, the
Director may appoint such personnel as the Director considers
appropriate.
(c) Applicability of Civil Service Laws.--The staff of the
Commission shall be appointed without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification
and General Schedule pay rates.
(d) Experts and Consultants.--With the approval of the
Commission, the Director may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code.
(e) Staff of Federal Agencies.--Upon the request of the
Commission, the head of any Federal agency may detail, on a
reimbursable basis, any of the personnel of such agency to
the Commission to assist in carrying out the duties of the
Commission under this chapter.
(f) Other Resources.--The Commission shall have reasonable
access to materials, resources, statistical data, and other
information from the Library of Congress and agencies and
elected representatives of the executive and legislative
branches of the Federal Government. The Chairperson of the
Commission shall make requests for such access in writing
when necessary.
(g) Physical Facilities.--The Administrator of the General
Services Administration shall locate suitable office space
for the operation of the Commission. The facilities shall
serve as the headquarters of the Commission and shall include
all necessary equipment and incidentals required for proper
functioning of the Commission.
SEC. 4245. POWERS OF COMMISSION.
(a) Hearings.--The Commission may conduct public hearings
or forums at the discretion of the Commission, at any time
and place the Commission is able to secure facilities and
witnesses, for the purpose of carrying out the duties of the
Commission under this chapter.
(b) Delegation of Authority.--Any member or agent of the
Commission may, if authorized by the Commission, take any
action the Commission is authorized to take by this section.
(c) Information.--The Commission may secure directly from
any Federal agency information necessary to enable the
Commission to carry out its duties under this chapter. Upon
request of the Chairperson or Vice Chairperson of the
Commission, the head of a Federal agency shall furnish the
information to the Commission to the extent permitted by law.
(d) Gifts, Bequests, and Devises.--The Commission may
accept, use, and dispose of gifts, bequests, or devises of
services or property, both real and personal, for the purpose
of aiding or facilitating the work of the Commission. Gifts,
bequests, or devises of money
[[Page H7868]]
and proceeds from sales of other property received as gifts,
bequests, or devises shall be deposited in the Treasury and
shall be available for disbursement upon order of the
Commission.
(e) Mails.--The Commission may use the United States mails
in the same manner and under the same conditions as other
Federal agencies.
SEC. 4246. REPORTS.
(a) Interim Report.--Not later than 1 year prior to the
date on which the Commission terminates pursuant to section
4247, the Commission shall submit an interim report to the
President and to the Congress. The interim report shall
contain a detailed statement of the findings and conclusions
of the Commission, together with the Commission's
recommendations for legislative and administrative action,
based on the activities of the Commission.
(b) Final Report.--Not later than the date on which the
Commission terminates, the Commission shall submit to the
Congress and to the President a final report containing--
(1) a detailed statement of final findings, conclusions,
and recommendations; and
(2) an assessment of the extent to which recommendations of
the Commission included in the interim report under
subsection (a) have been implemented.
(c) Printing and Public Distribution.--Upon receipt of each
report of the Commission under this section, the President
shall--
(1) order the report to be printed; and
(2) make the report available to the public upon request.
SEC. 4247. TERMINATION.
The Commission shall terminate on the date that is 2 years
after the date on which the members of the Commission have
met and designated a Chairperson and Vice Chairperson.
SEC. 4248. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out the purposes of the Commission.
Subtitle C--Child Support
SEC. 4300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
subtitle an amendment is expressed in terms of an amendment
to or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
CHAPTER 1--ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
SEC. 4301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT
ENFORCEMENT SERVICES.
(a) State Plan Requirements.--Section 454 (42 U.S.C. 654)
is amended--
(1) by striking paragraph (4) and inserting the following
new paragraph:
``(4) provide that the State will--
``(A) provide services relating to the establishment of
paternity or the establishment, modification, or enforcement
of child support obligations, as appropriate, under the plan
with respect to--
``(i) each child for whom (I) assistance is provided under
the State program funded under part A of this title, (II)
benefits or services for foster care maintenance are provided
under the State program funded under part E of this title, or
(III) medical assistance is provided under the State plan
under title XIX, unless, in accordance with paragraph (29),
good cause or other exceptions exist;
``(ii) any other child, if an individual applies for such
services with respect to the child; and
``(B) enforce any support obligation established with
respect to--
``(i) a child with respect to whom the State provides
services under the plan; or
``(ii) the custodial parent of such a child;''; and
(2) in paragraph (6)--
(A) by striking ``provide that'' and inserting ``provide
that--'';
(B) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) services under the plan shall be made available to
residents of other States on the same terms as to residents
of the State submitting the plan;'';
(C) in subparagraph (B), by inserting ``on individuals not
receiving assistance under any State program funded under
part A'' after ``such services shall be imposed'';
(D) in each of subparagraphs (B), (C), (D), and (E)--
(i) by indenting the subparagraph in the same manner as,
and aligning the left margin of the subparagraph with the
left margin of, the matter inserted by subparagraph (B) of
this paragraph; and
(ii) by striking the final comma and inserting a semicolon;
and
(E) in subparagraph (E), by indenting each of clauses (i)
and (ii) 2 additional ems.
(b) Continuation of Services for Families Ceasing To
Receive Assistance Under the State Program Funded Under Part
A.--Section 454 (42 U.S.C. 654) is amended--
(1) by striking ``and'' at the end of paragraph (23);
(2) by striking the period at the end of paragraph (24) and
inserting ``; and''; and
(3) by adding after paragraph (24) the following new
paragraph:
``(25) provide that if a family with respect to which
services are provided under the plan ceases to receive
assistance under the State program funded under part A, the
State shall provide appropriate notice to the family and
continue to provide such services, subject to the same
conditions and on the same basis as in the case of other
individuals to whom services are furnished under the plan,
except that an application or other request to continue
services shall not be required of such a family and paragraph
(6)(B) shall not apply to the family.''.
(c) Conforming Amendments.--
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by
striking ``454(6)'' and inserting ``454(4)''.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is
amended by striking ``454(6)'' each place it appears and
inserting ``454(4)(A)(ii)''.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is
amended by striking ``in the case of overdue support which a
State has agreed to collect under section 454(6)'' and
inserting ``in any other case''.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by
striking ``paragraph (4) or (6) of section 454'' and
inserting ``section 454(4)''.
SEC. 4302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) In General.--Section 457 (42 U.S.C. 657) is amended to
read as follows:
``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
``(a) In General.--Subject to subsection (e), an amount
collected on behalf of a family as support by a State
pursuant to a plan approved under this part shall be
distributed as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal share of
the amount so collected; and
``(B) retain, or distribute to the family, the State share
of the amount so collected.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from the
State:
``(A) Current support payments.--To the extent that the
amount so collected does not exceed the amount required to be
paid to the family for the month in which collected, the
State shall distribute the amount so collected to the family.
``(B) Payments of arrearages.--To the extent that the
amount so collected exceeds the amount required to be paid to
the family for the month in which collected, the State shall
distribute the amount so collected as follows:
``(i) Distribution of arrearages that accrued after the
family ceased to receive assistance.--
``(I) Pre-october 1997.--Except as provided in subclause
(II), the provisions of this section (other than subsection
(b)(1)) as in effect and applied on the day before the date
of the enactment of section 4302 of the Personal
Responsibility and Work Opportunity Act of 1996 shall apply
with respect to the distribution of support arrearages that--
``(aa) accrued after the family ceased to receive
assistance, and
``(bb) are collected before October 1, 1997.
``(II) Post-september 1997.--With respect to the amount so
collected on or after October 1, 1997 (or before such date,
at the option of the State)--
``(aa) In general.--The State shall first distribute the
amount so collected (other than any amount described in
clause (iv)) to the family to the extent necessary to satisfy
any support arrearages with respect to the family that
accrued after the family ceased to receive assistance from
the State.
``(bb) Reimbursement of governments for assistance provided
to the family.--After the application of division (aa) and
clause (ii)(II)(aa) with respect to the amount so collected,
the State shall retain the State share of the amount so
collected, and pay to the Federal Government the Federal
share (as defined in subsection (c)(2)) of the amount so
collected, but only to the extent necessary to reimburse
amounts paid to the family as assistance by the State.
``(cc) Distribution of the remainder to the family.--To the
extent that neither division (aa) nor division (bb) applies
to the amount so collected, the State shall distribute the
amount to the family.
``(ii) Distribution of arrearages that accrued before the
family received assistance.--
``(I) Pre-october 2000.--Except as provided in subclause
(II), the provisions of this section (other than subsection
(b)(1)) as in effect and applied on the day before the date
of the enactment of section 4302 of the Personal
Responsibility and Work Opportunity Act of 1996 shall apply
with respect to the distribution of support arrearages that--
``(aa) accrued before the family received assistance, and
``(bb) are collected before October 1, 2000.
``(II) Post-september 2000.--Unless, based on the report
required by paragraph (4), the Congress determines otherwise,
with respect to the amount so collected on or after October
1, 2000 (or before such date, at the option of the State)--
``(aa) In general.--The State shall first distribute the
amount so collected (other than any amount described in
clause (iv)) to the family to the extent necessary to satisfy
any support arrearages with respect to the family that
accrued before the family received assistance from the State.
``(bb) Reimbursement of governments for assistance provided
to the family.--After the application of clause (i)(II)(aa)
and division (aa) with respect to the amount so collected,
the State shall retain the State share
[[Page H7869]]
of the amount so collected, and pay to the Federal Government
the Federal share (as defined in subsection (c)(2)) of the
amount so collected, but only to the extent necessary to
reimburse amounts paid to the family as assistance by the
State.
``(cc) Distribution of the remainder to the family.--To the
extent that neither division (aa) nor division (bb) applies
to the amount so collected, the State shall distribute the
amount to the family.
``(iii) Distribution of arrearages that accrued while the
family received assistance.--In the case of a family
described in this subparagraph, the provisions of paragraph
(1) shall apply with respect to the distribution of support
arrearages that accrued while the family received assistance.
``(iv) Amounts collected pursuant to section 464.--
Notwithstanding any other provision of this section, any
amount of support collected pursuant to section 464 shall be
retained by the State to the extent past-due support has been
assigned to the State as a condition of receiving assistance
from the State, up to the amount necessary to reimburse the
State for amounts paid to the family as assistance by the
State. The State shall pay to the Federal Government the
Federal share of the amounts so retained. To the extent the
amount collected pursuant to section 464 exceeds the amount
so retained, the State shall distribute the excess to the
family.
``(v) Ordering rules for distributions.--For purposes of
this subparagraph, unless an earlier effective date is
required by this section, effective October 1, 2000, the
State shall treat any support arrearages collected, except
for amounts collected pursuant to section 464, as accruing in
the following order:
``(I) To the period after the family ceased to receive
assistance.
``(II) To the period before the family received assistance.
``(III) To the period while the family was receiving
assistance.
``(3) Families that never received assistance.--In the case
of any other family, the State shall distribute the amount so
collected to the family.
``(4) Study and report.--Not later than October 1, 1998,
the Secretary shall report to the Congress the Secretary's
findings with respect to--
``(A) whether the distribution of post-assistance
arrearages to families has been effective in moving people
off of welfare and keeping them off of welfare;
``(B) whether early implementation of a pre-assistance
arrearage program by some States has been effective in moving
people off of welfare and keeping them off of welfare;
``(C) what the overall impact has been of the amendments
made by the Personal Responsibility and Work Opportunity Act
of 1996 with respect to child support enforcement in moving
people off of welfare and keeping them off of welfare; and
``(D) based on the information and data the Secretary has
obtained, what changes, if any, should be made in the
policies related to the distribution of child support
arrearages.
``(b) Continuation Of Assignments.--Any rights to support
obligations, which were assigned to a State as a condition of
receiving assistance from the State under part A and which
were in effect on the day before the date of the enactment of
the Personal Responsibility and Work Opportunity Act of 1996,
shall remain assigned after such date.
``(c) Definitions.--As used in subsection (a):
``(1) Assistance.--The term `assistance from the State'
means--
``(A) assistance under the State program funded under part
A or under the State plan approved under part A of this title
(as in effect on the day before the date of the enactment of
the Personal Responsibility and Work Opportunity Act of
1996); and
``(B) foster care maintenance payments under the State plan
approved under part E of this title.
``(2) Federal share.--The term `Federal share' means that
portion of the amount collected resulting from the
application of the Federal medical assistance percentage in
effect for the fiscal year in which the amount is collected.
``(3) Federal medical assistance percentage.--The term
`Federal medical assistance percentage' means--
``(A) the Federal medical assistance percentage (as defined
in section 1118), in the case of Puerto Rico, the Virgin
Islands, Guam, and American Samoa; or
``(B) the Federal medical assistance percentage (as defined
in section 1905(b), as in effect on September 30, 1996) in
the case of any other State.
``(4) State share.--The term `State share' means 100
percent minus the Federal share.
``(d) Hold Harmless Provision.--If the amounts collected
which could be retained by the State in the fiscal year (to
the extent necessary to reimburse the State for amounts paid
to families as assistance by the State) are less than the
State share of the amounts collected in fiscal year 1995
(determined in accordance with section 457 as in effect on
the day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996), the State
share for the fiscal year shall be an amount equal to the
State share in fiscal year 1995.
``(e) Gap Payments not Subject to Distribution Under This
Section.--At State option, this section shall not apply to
any amount collected on behalf of a family as support by the
State (and paid to the family in addition to the amount of
assistance otherwise payable to the family) pursuant to a
plan approved under this part if such amount would have been
paid to the family by the State under section 402(a)(28), as
in effect and applied on the day before the date of the
enactment of section 4302 of the Personal Responsibility and
Work Opportunity Act of 1996. For purposes of subsection (d),
the State share of such amount paid to the family shall be
considered amounts which could be retained by the State if
such payments were reported by the State as part of the State
share of amounts collected in fiscal year 1995.''.
(b) Conforming Amendments.--
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by
striking ``section 457(b)(4) or (d)(3)'' and inserting
``section 457''.
(2) Section 454 (42 U.S.C. 654) is amended--
(A) in paragraph (11)--
(i) by striking ``(11)'' and inserting ``(11)(A)''; and
(ii) by inserting after the semicolon ``and''; and
(B) by redesignating paragraph (12) as subparagraph (B) of
paragraph (11).
(c) Effective Dates.--
(1) In General.--Except as provided in paragraph (2), the
amendments made by this section shall be effective on October
1, 1996, or earlier at the State's option.
(2) Conforming amendments.--The amendments made by
subsection (b)(2) shall become effective on the date of the
enactment of this Act.
SEC. 4303. PRIVACY SAFEGUARDS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by section 4301(b) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25) and
inserting ``; and''; and
(3) by adding after paragraph (25) the following new
paragraph:
``(26) will have in effect safeguards, applicable to all
confidential information handled by the State agency, that
are designed to protect the privacy rights of the parties,
including--
``(A) safeguards against unauthorized use or disclosure of
information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
``(B) prohibitions against the release of information on
the whereabouts of 1 party to another party against whom a
protective order with respect to the former party has been
entered; and
``(C) prohibitions against the release of information on
the whereabouts of 1 party to another party if the State has
reason to believe that the release of the information may
result in physical or emotional harm to the former party.''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on October 1, 1997.
SEC. 4304. RIGHTS TO NOTIFICATION OF HEARINGS.
(a) In General.--Section 454 (42 U.S.C. 654), as amended by
section 4302(b)(2) of this Act, is amended by inserting after
paragraph (11) the following new paragraph:
``(12) provide for the establishment of procedures to
require the State to provide individuals who are applying for
or receiving services under the State plan, or who are
parties to cases in which services are being provided under
the State plan--
``(A) with notice of all proceedings in which support
obligations might be established or modified; and
``(B) with a copy of any order establishing or modifying a
child support obligation, or (in the case of a petition for
modification) a notice of determination that there should be
no change in the amount of the child support award, within 14
days after issuance of such order or determination;''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on October 1, 1997.
CHAPTER 2--LOCATE AND CASE TRACKING
SEC. 4311. STATE CASE REGISTRY.
Section 454A, as added by section 4344(a)(2) of this Act,
is amended by adding at the end the following new
subsections:
``(e) State Case Registry.--
``(1) Contents.--The automated system required by this
section shall include a registry (which shall be known as the
`State case registry') that contains records with respect
to--
``(A) each case in which services are being provided by the
State agency under the State plan approved under this part;
and
``(B) each support order established or modified in the
State on or after October 1, 1998.
``(2) Linking of local registries.--The State case registry
may be established by linking local case registries of
support orders through an automated information network,
subject to this section.
``(3) Use of standardized data elements.--Such records
shall use standardized data elements for both parents (such
as names, social security numbers and other uniform
identification numbers, dates of birth, and case
identification numbers), and contain such other information
(such as on case status) as the Secretary may require.
``(4) Payment records.--Each case record in the State case
registry with respect to which services are being provided
under the State plan approved under this part and with
[[Page H7870]]
respect to which a support order has been established shall
include a record of--
``(A) the amount of monthly (or other periodic) support
owed under the order, and other amounts (including
arrearages, interest or late payment penalties, and fees) due
or overdue under the order;
``(B) any amount described in subparagraph (A) that has
been collected;
``(C) the distribution of such collected amounts;
``(D) the birth date of any child for whom the order
requires the provision of support; and
``(E) the amount of any lien imposed with respect to the
order pursuant to section 466(a)(4).
``(5) Updating and monitoring.--The State agency operating
the automated system required by this section shall promptly
establish and update, maintain, and regularly monitor, case
records in the State case registry with respect to which
services are being provided under the State plan approved
under this part, on the basis of--
``(A) information on administrative actions and
administrative and judicial proceedings and orders relating
to paternity and support;
``(B) information obtained from comparison with Federal,
State, or local sources of information;
``(C) information on support collections and distributions;
and
``(D) any other relevant information.
``(f) Information Comparisons and Other Disclosures of
Information.--The State shall use the automated system
required by this section to extract information from (at such
times, and in such standardized format or formats, as may be
required by the Secretary), to share and compare information
with, and to receive information from, other data bases and
information comparison services, in order to obtain (or
provide) information necessary to enable the State agency (or
the Secretary or other State or Federal agencies) to carry
out this part, subject to section 6103 of the Internal
Revenue Code of 1986. Such information comparison activities
shall include the following:
``(1) Federal case registry of child support orders.--
Furnishing to the Federal Case Registry of Child Support
Orders established under section 453(h) (and update as
necessary, with information including notice of expiration of
orders) the minimum amount of information on child support
cases recorded in the State case registry that is necessary
to operate the registry (as specified by the Secretary in
regulations).
``(2) Federal parent locator service.--Exchanging
information with the Federal Parent Locator Service for the
purposes specified in section 453.
``(3) Temporary family assistance and medicaid agencies.--
Exchanging information with State agencies (of the State and
of other States) administering programs funded under part A,
programs operated under a State plan approved under title
XIX, and other programs designated by the Secretary, as
necessary to perform State agency responsibilities under this
part and under such programs.
``(4) Intrastate and interstate information comparisons.--
Exchanging information with other agencies of the State,
agencies of other States, and interstate information
networks, as necessary and appropriate to carry out (or
assist other States to carry out) the purposes of this
part.''.
SEC. 4312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections 4301(b) and 4303(a) of this Act, is
amended--
(1) by striking ``and'' at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26) and
inserting ``; and''; and
(3) by adding after paragraph (26) the following new
paragraph:
``(27) provide that, on and after October 1, 1998, the
State agency will--
``(A) operate a State disbursement unit in accordance with
section 454B; and
``(B) have sufficient State staff (consisting of State
employees) and (at State option) contractors reporting
directly to the State agency to--
``(i) monitor and enforce support collections through the
unit in cases being enforced by the State pursuant to section
454(4) (including carrying out the automated data processing
responsibilities described in section 454A(g)); and
``(ii) take the actions described in section 466(c)(1) in
appropriate cases.''.
(b) Establishment of State Disbursement Unit.--Part D of
title IV (42 U.S.C. 651-669), as amended by section
4344(a)(2) of this Act, is amended by inserting after section
454A the following new section:
``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
``(a) State Disbursement Unit.--
``(1) In general.--In order for a State to meet the
requirements of this section, the State agency must establish
and operate a unit (which shall be known as the `State
disbursement unit') for the collection and disbursement of
payments under support orders--
``(A) in all cases being enforced by the State pursuant to
section 454(4); and
``(B) in all cases not being enforced by the State under
this part in which the support order is initially issued in
the State on or after January 1, 1994, and in which the
income of the noncustodial parent are subject to withholding
pursuant to section 466(a)(8)(B).
``(2) Operation.--The State disbursement unit shall be
operated--
``(A) directly by the State agency (or 2 or more State
agencies under a regional cooperative agreement), or (to the
extent appropriate) by a contractor responsible directly to
the State agency; and
``(B) except in cases described in paragraph (1)(B), in
coordination with the automated system established by the
State pursuant to section 454A.
``(3) Linking of local disbursement units.--The State
disbursement unit may be established by linking local
disbursement units through an automated information network,
subject to this section, if the Secretary agrees that the
system will not cost more nor take more time to establish or
operate than a centralized system. In addition, employers
shall be given 1 location to which income withholding is
sent.
``(b) Required Procedures.--The State disbursement unit
shall use automated procedures, electronic processes, and
computer-driven technology to the maximum extent feasible,
efficient, and economical, for the collection and
disbursement of support payments, including procedures--
``(1) for receipt of payments from parents, employers, and
other States, and for disbursements to custodial parents and
other obligees, the State agency, and the agencies of other
States;
``(2) for accurate identification of payments;
``(3) to ensure prompt disbursement of the custodial
parent's share of any payment; and
``(4) to furnish to any parent, upon request, timely
information on the current status of support payments under
an order requiring payments to be made by or to the parent,
except that, with respect to a case described in subsection
(a)(1)(B), the State disbursement unit shall not be required
to maintain records of payments which, after the effective
date of this section, are made to, and distributed by, the
unit.
``(c) Timing of Disbursements.--
``(1) In general.--Except as provided in paragraph (2), the
State disbursement unit shall distribute all amounts payable
under section 457(a) within 2 business days after receipt
from the employer or other source of periodic income, if
sufficient information identifying the payee is provided.
``(2) Permissive retention of arrearages.--The State
disbursement unit may delay the distribution of collections
toward arrearages until the resolution of any timely appeal
with respect to such arrearages.
``(d) Business Day Defined.--As used in this section, the
term `business day' means a day on which State offices are
open for regular business.''.
(c) Use of Automated System.--Section 454A, as added by
section 4344(a)(2) and as amended by section 4311 of this
Act, is amended by adding at the end the following new
subsection:
``(g) Collection and Distribution of Support Payments.--
``(1) In general.--The State shall use the automated system
required by this section, to the maximum extent feasible, to
assist and facilitate the collection and disbursement of
support payments through the State disbursement unit operated
under section 454B, through the performance of functions,
including, at a minimum--
``(A) transmission of orders and notices to employers (and
other debtors) for the withholding of income--
``(i) within 2 business days after receipt of notice of,
and the income source subject to, such withholding from a
court, another State, an employer, the Federal Parent Locator
Service, or another source recognized by the State; and
``(ii) using uniform formats prescribed by the Secretary;
``(B) ongoing monitoring to promptly identify failures to
make timely payment of support; and
``(C) automatic use of enforcement procedures (including
procedures authorized pursuant to section 466(c)) if payments
are not timely made.
``(2) Business day defined.--As used in paragraph (1), the
term `business day' means a day on which State offices are
open for regular business.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall become effective on
October 1, 1998.
(2) Limited exception to unit handling payments.--
Notwithstanding section 454B(b)(1) of the Social Security
Act, as added by this section, any State which, as of the
date of the enactment of this Act, processes the receipt of
child support payments through local courts may, at the
option of the State, continue to process through September
30, 1999, such payments through such courts as processed such
payments on or before such date of enactment.
(e) Sense of the Congress.--It is the sense of the Congress
that, in determining whether to comply with section 454B of
the Social Security Act by establishing a single, centralized
unit for the collection and disbursement of support payments
or by linking together through automation local units for the
collection and disbursement of support payments, a
State should choose the method of compliance which best
meets the needs of parents, employers, and children.
SEC. 4313. STATE DIRECTORY OF NEW HIRES.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections
[[Page H7871]]
4301(b), 4303(a) and 4312(a) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27) and
inserting ``; and''; and
(3) by adding after paragraph (27) the following new
paragraph:
``(28) provide that, on and after October 1, 1997, the
State will operate a State Directory of New Hires in
accordance with section 453A.''.
(b) State Directory of New Hires.--Part D of title IV (42
U.S.C. 651-669) is amended by inserting after section 453 the
following new section:
``SEC. 453A. STATE DIRECTORY OF NEW HIRES.
``(a) Establishment.--
``(1) In general.--
``(A) Requirement for States that have no directory.--
Except as provided in subparagraph (B), not later than
October 1, 1997, each State shall establish an automated
directory (to be known as the `State Directory of New Hires')
which shall contain information supplied in accordance with
subsection (b) by employers on each newly hired employee.
``(B) States with new hire reporting in existence.--A State
which has a new hire reporting law in existence on the date
of the enactment of this section may continue to operate
under the State law, but the State must meet the requirements
of subsection (g)(2) not later than October 1, 1997, and the
requirements of this section (other than subsection (g)(2))
not later than October 1, 1998.
``(2) Definitions.--As used in this section:
``(A) Employee.--The term `employee'--
``(i) means an individual who is an employee within the
meaning of chapter 24 of the Internal Revenue Code of 1986;
and
``(ii) does not include an employee of a Federal or State
agency performing intelligence or counterintelligence
functions, if the head of such agency has determined that
reporting pursuant to paragraph (1) with respect to the
employee could endanger the safety of the employee or
compromise an ongoing investigation or intelligence mission.
``(B) Employer.--
``(i) In general.--The term `employer' has the meaning
given such term in section 3401(d) of the Internal Revenue
Code of 1986 and includes any governmental entity and any
labor organization.
``(ii) Labor organization.--The term `labor organization'
shall have the meaning given such term in section 2(5) of the
National Labor Relations Act, and includes any entity (also
known as a `hiring hall') which is used by the organization
and an employer to carry out requirements described in
section 8(f)(3) of such Act of an agreement between the
organization and the employer.
``(b) Employer Information.--
``(1) Reporting requirement.--
``(A) In general.--Except as provided in subparagraphs (B)
and (C), each employer shall furnish to the Directory of New
Hires of the State in which a newly hired employee works, a
report that contains the name, address, and social security
number of the employee, and the name and address of, and
identifying number assigned under section 6109 of the
Internal Revenue Code of 1986 to, the employer.
``(B) Multistate employers.--An employer that has employees
who are employed in 2 or more States and that transmits
reports magnetically or electronically may comply with
subparagraph (A) by designating 1 State in which such
employer has employees to which the employer will transmit
the report described in subparagraph (A), and transmitting
such report to such State. Any employer that transmits
reports pursuant to this subparagraph shall notify the
Secretary in writing as to which State such employer
designates for the purpose of sending reports.
``(C) Federal government employers.--Any department,
agency, or instrumentality of the United States shall comply
with subparagraph (A) by transmitting the report described in
subparagraph (A) to the National Directory of New Hires
established pursuant to section 453.
``(2) Timing of report.--Each State may provide the time
within which the report required by paragraph (1) shall be
made with respect to an employee, but such report shall be
made--
``(A) not later than 20 days after the date the employer
hires the employee; or
``(B) in the case of an employer transmitting reports
magnetically or electronically, by 2 monthly transmissions
(if necessary) not less than 12 days nor more than 16 days
apart.
``(c) Reporting Format and Method.--Each report required by
subsection (b) shall be made on a W-4 form or, at the option
of the employer, an equivalent form, and may be transmitted
by 1st class mail, magnetically, or electronically.
``(d) Civil Money Penalties on Noncomplying Employers.--The
State shall have the option to set a State civil money
penalty which shall be less than--
``(1) $25; or
``(2) $500 if, under State law, the failure is the result
of a conspiracy between the employer and the employee to not
supply the required report or to supply a false or incomplete
report.
``(e) Entry of Employer Information.--Information shall be
entered into the data base maintained by the State Directory
of New Hires within 5 business days of receipt from an
employer pursuant to subsection (b).
``(f) Information Comparisons.--
``(1) In general.--Not later than May 1, 1998, an agency
designated by the State shall, directly or by contract,
conduct automated comparisons of the social security numbers
reported by employers pursuant to subsection (b) and the
social security numbers appearing in the records of the State
case registry for cases being enforced under the State plan.
``(2) Notice of match.--When an information comparison
conducted under paragraph (1) reveals a match with respect to
the social security number of an individual required to
provide support under a support order, the State Directory of
New Hires shall provide the agency administering the State
plan approved under this part of the appropriate State with
the name, address, and social security number of the employee
to whom the social security number is assigned, and the name
and address of, and identifying number assigned under section
6109 of the Internal Revenue Code of 1986 to, the employer.
``(g) Transmission of Information.--
``(1) Transmission of wage withholding notices to
employers.--Within 2 business days after the date information
regarding a newly hired employee is entered into the State
Directory of New Hires, the State agency enforcing the
employee's child support obligation shall transmit a notice
to the employer of the employee directing the employer to
withhold from the income of the employee an amount equal to
the monthly (or other periodic) child support obligation
(including any past due support obligation) of the employee,
unless the employee's income is not subject to withholding
pursuant to section 466(b)(3).
``(2) Transmissions to the national directory of new
hires.--
``(A) New hire information.--Within 3 business days after
the date information regarding a newly hired employee is
entered into the State Directory of New Hires, the State
Directory of New Hires shall furnish the information to the
National Directory of New Hires.
``(B) Wage and unemployment compensation information.--The
State Directory of New Hires shall, on a quarterly basis,
furnish to the National Directory of New Hires extracts of
the reports required under section 303(a)(6) to be made to
the Secretary of Labor concerning the wages and unemployment
compensation paid to individuals, by such dates, in such
format, and containing such information as the Secretary of
Health and Human Services shall specify in regulations.
``(3) Business day defined.--As used in this subsection,
the term `business day' means a day on which State offices
are open for regular business.
``(h) Other Uses of New Hire Information.--
``(1) Location of child support obligors.--The agency
administering the State plan approved under this part shall
use information received pursuant to subsection (f)(2) to
locate individuals for purposes of establishing paternity and
establishing, modifying, and enforcing child support
obligations, and may disclose such information to any agent
of the agency that is under contract with the agency to carry
out such purposes.
``(2) Verification of eligibility for certain programs.--A
State agency responsible for administering a program
specified in section 1137(b) shall have access to information
reported by employers pursuant to subsection (b) of this
section for purposes of verifying eligibility for the
program.
``(3) Administration of employment security and workers'
compensation.--State agencies operating employment security
and workers' compensation programs shall have access to
information reported by employers pursuant to subsection (b)
for the purposes of administering such programs.''.
(c) Quarterly Wage Reporting.--Section 1137(a)(3) (42
U.S.C. 1320b-7(a)(3)) is amended--
(1) by inserting ``(including State and local governmental
entities and labor organizations (as defined in section
453A(a)(2)(B)(iii))'' after ``employers''; and
(2) by inserting ``, and except that no report shall be
filed with respect to an employee of a State or local agency
performing intelligence or counterintelligence functions, if
the head of such agency has determined that filing such a
report could endanger the safety of the employee or
compromise an ongoing investigation or intelligence mission''
after ``paragraph (2)''.
(d) Disclosure to Certain Agents.--Section 303(e) (42
U.S.C. 503(e)) is amended by adding at the end the following:
``(5) A State or local child support enforcement agency may
disclose to any agent of the agency that is under contract
with the agency to carry out the purposes described in
paragraph (1)(B) wage information that is disclosed to an
officer or employee of the agency under paragraph (1)(A). Any
agent of a State or local child support agency that receives
wage information under this paragraph shall comply with the
safeguards established pursuant to paragraph (1)(B).''.
SEC. 4314. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) Mandatory Income Withholding.--
(1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is
amended to read as follows:
``(1)(A) Procedures described in subsection (b) for the
withholding from income of amounts payable as support in
cases subject to enforcement under the State plan.
``(B) Procedures under which the income of a person with a
support obligation imposed by a support order issued (or
modified) in the
[[Page H7872]]
State before October 1, 1996, if not otherwise subject to
withholding under subsection (b), shall become subject to
withholding as provided in subsection (b) if arrearages
occur, without the need for a judicial or administrative
hearing.''.
(2) Conforming amendments.--
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in the
matter preceding paragraph (1), by striking ``subsection
(a)(1)'' and inserting ``subsection (a)(1)(A)''.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to
read as follows:
``(4)(A) Such withholding must be carried out in full
compliance with all procedural due process requirements of
the State, and the State must send notice to each
noncustodial parent to whom paragraph (1) applies--
``(i) that the withholding has commenced; and
``(ii) of the procedures to follow if the noncustodial
parent desires to contest such withholding on the grounds
that the withholding or the amount withheld is improper due
to a mistake of fact.
``(B) The notice under subparagraph (A) of this paragraph
shall include the information provided to the employer under
paragraph (6)(A).''.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by
striking all that follows ``administered by'' and inserting
``the State through the State disbursement unit established
pursuant to section 454B, in accordance with the requirements
of section 454B.''.
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is
amended--
(i) in clause (i), by striking ``to the appropriate
agency'' and all that follows and inserting ``to the State
disbursement unit within 5 business days after the date the
amount would (but for this subsection) have been paid or
credited to the employee, for distribution in accordance with
this part. The employer shall withhold funds as directed in
the notice. For terms and conditions for withholding income
that are not specified in a notice issued by another State,
the employer shall apply the law of the State in which the
obligor works. An employer who complies with an income
withholding notice that is regular on its face shall not be
subject to civil liability to any individual or agency for
conduct in compliance with the notice.''.
(ii) in clause (ii), by inserting ``be in a standard format
prescribed by the Secretary, and'' after ``shall''; and
(iii) by adding at the end the following new clause:
``(iii) As used in this subparagraph, the term `business
day' means a day on which State offices are open for regular
business.''.
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is
amended by striking ``any employer'' and all that follows and
inserting ``any employer who--
``(i) discharges from employment, refuses to employ, or
takes disciplinary action against any noncustodial parent
subject to income withholding required by this subsection
because of the existence of such withholding and the
obligations or additional obligations which it imposes upon
the employer; or
``(ii) fails to withhold support from income or to pay such
amounts to the State disbursement unit in accordance with
this subsection.''.
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by adding
at the end the following new paragraph:
``(11) Procedures under which the agency administering the
State plan approved under this part may execute a withholding
order without advance notice to the obligor, including
issuing the withholding order through electronic means.''.
(b) Definition of Income.--
(1) In general.--Section 466(b)(8) (42 U.S.C. 666(b)(8)) is
amended to read as follows:
``(8) For purposes of subsection (a) and this subsection,
the term `income' means any periodic form of payment due to
an individual, regardless of source, including wages,
salaries, commissions, bonuses, worker's compensation,
disability, payments pursuant to a pension or retirement
program, and interest.''.
(2) Conforming amendments.--
(A) Subsections (a)(8)(A), (a)(8)(B)(i), (b)(3)(A),
(b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and (b)(7) of section
466 (42 U.S.C. 666(a)(8)(A), (a)(8)(B)(i), (b)(3)(A),
(b)(3)(B), (b)(6)(A)(i), and (b)(6)(C), and (b)(7)) are each
amended by striking ``wages'' each place such term appears
and inserting ``income''.
(B) Section 466(b)(1) (42 U.S.C. 666(b)(1)) is amended by
striking ``wages (as defined by the State for purposes of
this section)'' and inserting ``income''.
(c) Conforming Amendment.--Section 466(c) (42 U.S.C.
666(c)) is repealed.
SEC. 4315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by inserting
after paragraph (11) the following new paragraph:
``(12) Locator information from interstate networks.--
Procedures to ensure that all Federal and State agencies
conducting activities under this part have access to any
system used by the State to locate an individual for purposes
relating to motor vehicles or law enforcement.''.
SEC. 4316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.
(a) Expanded Authority To Locate Individuals and Assets.--
Section 453 (42 U.S.C. 653) is amended--
(1) in subsection (a), by striking all that follows
``subsection (c))'' and inserting ``, for the purpose of
establishing parentage, establishing, setting the amount of,
modifying, or enforcing child support obligations, or
enforcing child custody or visitation orders--
``(1) information on, or facilitating the discovery of, the
location of any individual--
``(A) who is under an obligation to pay child support or
provide child custody or visitation rights;
``(B) against whom such an obligation is sought;
``(C) to whom such an obligation is owed,
including the individual's social security number (or
numbers), most recent address, and the name, address, and
employer identification number of the individual's employer;
``(2) information on the individual's wages (or other
income) from, and benefits of, employment (including rights
to or enrollment in group health care coverage); and
``(3) information on the type, status, location, and amount
of any assets of, or debts owed by or to, any such
individual.''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking
``social security'' and all that follows through ``absent
parent'' and inserting ``information described in subsection
(a)''; and
(B) in the flush paragraph at the end, by adding the
following: ``No information shall be disclosed to any person
if the State has notified the Secretary that the State has
reasonable evidence of domestic violence or child abuse and
the disclosure of such information could be harmful to the
custodial parent or the child of such parent. Information
received or transmitted pursuant to this section shall be
subject to the safeguard provisions contained in section
454(26).''.
(b) Authorized Person for Information Regarding Visitation
Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
(1) in paragraph (1), by striking ``support'' and inserting
``support or to seek to enforce orders providing child
custody or visitation rights''; and
(2) in paragraph (2), by striking ``, or any agent of such
court; and'' and inserting ``or to issue an order against a
resident parent for child custody or visitation rights, or
any agent of such court;''.
(c) Reimbursement for Information From Federal Agencies.--
Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th
sentence by inserting ``in an amount which the Secretary
determines to be reasonable payment for the information
exchange (which amount shall not include payment for the
costs of obtaining, compiling, or maintaining the
information)'' before the period.
(d) Reimbursement for Reports by State Agencies.--Section
453 (42 U.S.C. 653) is amended by adding at the end the
following new subsection:
``(g) Reimbursement for Reports by State Agencies.--The
Secretary may reimburse Federal and State agencies for the
costs incurred by such entities in furnishing information
requested by the Secretary under this section in an amount
which the Secretary determines to be reasonable payment for
the information exchange (which amount shall not include
payment for the costs of obtaining, compiling, or maintaining
the information).''.
(e) Conforming Amendments.--
(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and
463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e),
and 663(f)) are each amended by inserting ``Federal'' before
``Parent'' each place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in the heading
by adding ``federal'' before ``parent''.
(f) New Components.--Section 453 (42 U.S.C. 653), as
amended by subsection (d) of this section, is amended by
adding at the end the following new subsections:
``(h) Federal Case Registry of Child Support Orders.--
``(1) In general.--Not later than October 1, 1998, in order
to assist States in administering programs under State plans
approved under this part and programs funded under part A,
and for the other purposes specified in this section, the
Secretary shall establish and maintain in the Federal Parent
Locator Service an automated registry (which shall be known
as the `Federal Case Registry of Child Support Orders'),
which shall contain abstracts of support orders and other
information described in paragraph (2) with respect to each
case in each State case registry maintained pursuant to
section 454A(e), as furnished (and regularly updated),
pursuant to section 454A(f), by State agencies administering
programs under this part.
``(2) Case information.--The information referred to in
paragraph (1) with respect to a case shall be such
information as the Secretary may specify in regulations
(including the names, social security numbers or other
uniform identification numbers, and State case identification
numbers) to identify the individuals who owe or are owed
support (or with respect to or on behalf of whom support
obligations are sought to be established), and the State or
States which have the case.
``(i) National Directory of New Hires.--
``(1) In general.--In order to assist States in
administering programs under State plans approved under this
part and programs funded under part A, and for the other
purposes specified in this section, the Secretary shall, not
later than October 1, 1997, establish and maintain in the
Federal Parent Locator Service an automated directory to be
known as the National Directory of New Hires, which shall
contain the information supplied pursuant to section
453A(g)(2).
[[Page H7873]]
``(2) Entry of data.--Information shall be entered into the
data base maintained by the National Directory of New Hires
within 2 business days of receipt pursuant to section
453A(g)(2).
``(3) Administration of federal tax laws.--The Secretary of
the Treasury shall have access to the information in the
National Directory of New Hires for purposes of administering
section 32 of the Internal Revenue Code of 1986, or the
advance payment of the earned income tax credit under
section 3507 of such Code, and verifying a claim with
respect to employment in a tax return.
``(4) List of multistate employers.--The Secretary shall
maintain within the National Directory of New Hires a list of
multistate employers that report information regarding newly
hired employees pursuant to section 453A(b)(1)(B), and the
State which each such employer has designated to receive such
information.
``(j) Information Comparisons and Other Disclosures.--
``(1) Verification by social security administration.--
``(A) In general.--The Secretary shall transmit information
on individuals and employers maintained under this section to
the Social Security Administration to the extent necessary
for verification in accordance with subparagraph (B).
``(B) Verification by ssa.--The Social Security
Administration shall verify the accuracy of, correct, or
supply to the extent possible, and report to the Secretary,
the following information supplied by the Secretary pursuant
to subparagraph (A):
``(i) The name, social security number, and birth date of
each such individual.
``(ii) The employer identification number of each such
employer.
``(2) Information comparisons.--For the purpose of locating
individuals in a paternity establishment case or a case
involving the establishment, modification, or enforcement of
a support order, the Secretary shall--
``(A) compare information in the National Directory of New
Hires against information in the support case abstracts in
the Federal Case Registry of Child Support Orders not less
often than every 2 business days; and
``(B) within 2 business days after such a comparison
reveals a match with respect to an individual, report the
information to the State agency responsible for the case.
``(3) Information comparisons and disclosures of
information in all registries for title iv program
purposes.--To the extent and with the frequency that the
Secretary determines to be effective in assisting States to
carry out their responsibilities under programs operated
under this part and programs funded under part A, the
Secretary shall--
``(A) compare the information in each component of the
Federal Parent Locator Service maintained under this section
against the information in each other such component (other
than the comparison required by paragraph (2)), and report
instances in which such a comparison reveals a match with
respect to an individual to State agencies operating such
programs; and
``(B) disclose information in such registries to such State
agencies.
``(4) Provision of new hire information to the social
security administration.--The National Directory of New Hires
shall provide the Commissioner of Social Security with all
information in the National Directory, which shall be used to
determine the accuracy of payments under the supplemental
security income program under title XVI and in connection
with benefits under title II.
``(5) Research.--The Secretary may provide access to
information reported by employers pursuant to section 453A(b)
for research purposes found by the Secretary to be likely to
contribute to achieving the purposes of part A or this part,
but without personal identifiers.
``(k) Fees.--
``(1) For ssa verification.--The Secretary shall reimburse
the Commissioner of Social Security, at a rate negotiated
between the Secretary and the Commissioner, for the costs
incurred by the Commissioner in performing the
verification services described in subsection (j).
``(2) For information from state directories of new
hires.--The Secretary shall reimburse costs incurred by State
directories of new hires in furnishing information as
required by subsection (j)(3), at rates which the Secretary
determines to be reasonable (which rates shall not include
payment for the costs of obtaining, compiling, or maintaining
such information).
``(3) For information furnished to state and federal
agencies.--A State or Federal agency that receives
information from the Secretary pursuant to this section shall
reimburse the Secretary for costs incurred by the Secretary
in furnishing the information, at rates which the Secretary
determines to be reasonable (which rates shall include
payment for the costs of obtaining, verifying, maintaining,
and comparing the information).
``(l) Restriction on Disclosure and Use.--Information in
the Federal Parent Locator Service, and information resulting
from comparisons using such information, shall not be used or
disclosed except as expressly provided in this section,
subject to section 6103 of the Internal Revenue Code of 1986.
``(m) Information Integrity and Security.--The Secretary
shall establish and implement safeguards with respect to the
entities established under this section designed to--
``(1) ensure the accuracy and completeness of information
in the Federal Parent Locator Service; and
``(2) restrict access to confidential information in the
Federal Parent Locator Service to authorized persons, and
restrict use of such information to authorized purposes.
``(n) Federal Government Reporting.--Each department,
agency, and instrumentality of the United States shall on a
quarterly basis report to the Federal Parent Locator Service
the name and social security number of each employee and the
wages paid to the employee during the previous quarter,
except that such a report shall not be filed with respect to
an employee of a department, agency, or instrumentality
performing intelligence or counterintelligence functions, if
the head of such department, agency, or instrumentality has
determined that filing such a report could endanger the
safety of the employee or compromise an ongoing investigation
or intelligence mission.''.
(g) Conforming Amendments.--
(1) To part d of title iv of the social security act.--
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to
read as follows:
``(B) the Federal Parent Locator Service established under
section 453;''.
(B) Section 454(13) (42 U.S.C.654(13)) is amended by
inserting ``and provide that information requests by parents
who are residents of other States be treated with the same
priority as requests by parents who are residents of the
State submitting the plan'' before the semicolon.
(2) To federal unemployment tax act.--Section 3304(a)(16)
of the Internal Revenue Code of 1986 is amended--
(A) by striking ``Secretary of Health, Education, and
Welfare'' each place such term appears and inserting
``Secretary of Health and Human Services'';
(B) in subparagraph (B), by striking ``such information''
and all that follows and inserting ``information furnished
under subparagraph (A) or (B) is used only for the purposes
authorized under such subparagraph;'';
(C) by striking ``and'' at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subparagraph (C);
and
(E) by inserting after subparagraph (A) the following new
subparagraph:
``(B) wage and unemployment compensation information
contained in the records of such agency shall be furnished to
the Secretary of Health and Human Services (in accordance
with regulations promulgated by such Secretary) as
necessary for the purposes of the National Directory of
New Hires established under section 453(i) of the Social
Security Act, and''.
(3) To state grant program under title iii of the social
security act.--Subsection (h) of section 303 (42 U.S.C. 503)
is amended to read as follows:
``(h)(1) The State agency charged with the administration
of the State law shall, on a reimbursable basis--
``(A) disclose quarterly, to the Secretary of Health and
Human Services, wage and claim information, as required
pursuant to section 453(i)(1), contained in the records of
such agency;
``(B) ensure that information provided pursuant to
subparagraph (A) meets such standards relating to correctness
and verification as the Secretary of Health and Human
Services, with the concurrence of the Secretary of Labor, may
find necessary; and
``(C) establish such safeguards as the Secretary of Labor
determines are necessary to insure that information disclosed
under subparagraph (A) is used only for purposes of section
453(i)(1) in carrying out the child support enforcement
program under title IV.
``(2) Whenever the Secretary of Labor, after reasonable
notice and opportunity for hearing to the State agency
charged with the administration of the State law, finds that
there is a failure to comply substantially with the
requirements of paragraph (1), the Secretary of Labor shall
notify such State agency that further payments will not be
made to the State until the Secretary of Labor is satisfied
that there is no longer any such failure. Until the Secretary
of Labor is so satisfied, the Secretary shall make no future
certification to the Secretary of the Treasury with respect
to the State.
``(3) For purposes of this subsection--
``(A) the term `wage information' means information
regarding wages paid to an individual, the social security
account number of such individual, and the name, address,
State, and the Federal employer identification number of the
employer paying such wages to such individual; and
``(B) the term `claim information' means information
regarding whether an individual is receiving, has received,
or has made application for, unemployment compensation, the
amount of any such compensation being received (or to be
received by such individual), and the individual's current
(or most recent) home address.''.
(4) Disclosure of certain information to agents of child
support enforcement agencies.--
(A) In general.--Paragraph (6) of section 6103(l) of the
Internal Revenue Code of 1986 (relating to disclosure of
return information to Federal, State, and local child support
enforcement agencies) is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting after
subparagraph (A) the following new subparagraph:
``(B) Disclosure to certain agents.--The following
information disclosed to any child
[[Page H7874]]
support enforcement agency under subparagraph (A) with
respect to any individual with respect to whom child support
obligations are sought to be established or enforced may be
disclosed by such agency to any agent of such agency which is
under contract with such agency to carry out the purposes
described in subparagraph (C):
``(i) The address and social security account number (or
numbers) of such individual.
``(ii) The amount of any reduction under section 6402(c)
(relating to offset of past-due support against overpayments)
in any overpayment otherwise payable to such individual.''
(B) Conforming amendments.--
(i) Paragraph (3) of section 6103(a) of such Code is
amended by striking ``(l)(12)'' and inserting ``paragraph (6)
or (12) of subsection (l)''.
(ii) Subparagraph (C) of section 6103(l)(6) of such Code,
as redesignated by subsection (a), is amended to read as
follows:
``(C) Restriction on disclosure.--Information may be
disclosed under this paragraph only for purposes of, and to
the extent necessary in, establishing and collecting child
support obligations from, and locating, individuals owing
such obligations.''
(iii) The material following subparagraph (F) of section
6103(p)(4) of such Code is amended by striking ``subsection
(l)(12)(B)'' and inserting ``paragraph (6)(A) or (12)(B) of
subsection (l)''.
(h) Requirement for Cooperation.--The Secretary of Labor
and the Secretary of Health and Human Services shall work
jointly to develop cost-effective and efficient methods of
accessing the information in the various State directories of
new hires and the National Directory of New Hires as
established pursuant to the amendments made by this chapter.
In developing these methods the Secretaries shall take into
account the impact, including costs, on the States, and shall
also consider the need to insure the proper and authorized
use of wage record information.
SEC. 4317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR
USE IN CHILD SUPPORT ENFORCEMENT.
(a) State Law Requirement.--Section 466(a) (42 U.S.C.
666(a)), as amended by section 4315 of this Act, is amended
by inserting after paragraph (12) the following new
paragraph:
``(13) Recording of social security numbers in certain
family matters.--Procedures requiring that the social
security number of--
``(A) any applicant for a professional license, commercial
driver's license, occupational license, or marriage license
be recorded on the application;
``(B) any individual who is subject to a divorce decree,
support order, or paternity determination or acknowledgment
be placed in the records relating to the matter; and
``(C) any individual who has died be placed in the records
relating to the death and be recorded on the death
certificate.
For purposes of subparagraph (A), if a State allows the use
of a number other than the social security number, the State
shall so advise any applicants.''.
(b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C.
405(c)(2)(C)), as amended by section 321(a)(9) of the Social
Security Independence and Program Improvements Act of 1994,
is amended--
(1) in clause (i), by striking ``may require'' and
inserting ``shall require'';
(2) in clause (ii), by inserting after the 1st sentence the
following: ``In the administration of any law involving the
issuance of a marriage certificate or license, each State
shall require each party named in the certificate or license
to furnish to the State (or political subdivision thereof),
or any State agency having administrative responsibility for
the law involved, the social security number of the party.'';
(3) in clause (ii), by inserting ``or marriage
certificate'' after ``Such numbers shall not be recorded on
the birth certificate''.
(4) in clause (vi), by striking ``may'' and inserting
``shall''; and
(5) by adding at the end the following new clauses:
``(x) An agency of a State (or a political subdivision
thereof) charged with the administration of any law
concerning the issuance or renewal of a license, certificate,
permit, or other authorization to engage in a profession, an
occupation, or a commercial activity shall require all
applicants for issuance or renewal of the license,
certificate, permit, or other authorization to provide the
applicant's social security number to the agency for the
purpose of administering such laws, and for the purpose of
responding to requests for information from an agency
operating pursuant to part D of title IV.
``(xi) All divorce decrees, support orders, and paternity
determinations issued, and all paternity acknowledgments
made, in each State shall include the social security number
of each party to the decree, order, determination, or
acknowledgment in the records relating to the matter, for the
purpose of responding to requests for information from an
agency operating pursuant to part D of title IV.''.
CHAPTER 3--STREAMLINING AND UNIFORMITY OF PROCEDURES
SEC. 4321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding at the end
the following new subsection:
``(f) Uniform Interstate Family Support Act.--
``(1) Enactment and use.--In order to satisfy section
454(20)(A), on and after January 1, 1998, each State must
have in effect the Uniform Interstate Family Support Act, as
approved by the American Bar Association on February 9, 1993,
together with any amendments officially adopted before
January 1, 1998 by the National Conference of Commissioners
on Uniform State Laws.
``(2) Employers to follow procedural rules of State where
employee works.--The State law enacted pursuant to paragraph
(1) shall provide that an employer that receives an income
withholding order or notice pursuant to section 501 of the
Uniform Interstate Family Support Act follow the procedural
rules that apply with respect to such order or notice under
the laws of the State in which the obligor works.''.
SEC. 4322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD
SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is amended--
(1) in subsection (a)(2), by striking ``subsection (e)''
and inserting ``subsections (e), (f), and (i)'';
(2) in subsection (b), by inserting after the 2nd
undesignated paragraph the following:
`` `child's home State' means the State in which a child
lived with a parent or a person acting as parent for at least
6 consecutive months immediately preceding the time of filing
of a petition or comparable pleading for support and, if a
child is less than 6 months old, the State in which the child
lived from birth with any of them. A period of temporary
absence of any of them is counted as part of the 6-month
period.'';
(3) in subsection (c), by inserting ``by a court of a
State'' before ``is made'';
(4) in subsection (c)(1), by inserting ``and subsections
(e), (f), and (g)'' after ``located'';
(5) in subsection (d)--
(A) by inserting ``individual'' before ``contestant''; and
(B) by striking ``subsection (e)'' and inserting
``subsections (e) and (f)'';
(6) in subsection (e), by striking ``make a modification of
a child support order with respect to a child that is made''
and inserting ``modify a child support order issued'';
(7) in subsection (e)(1), by inserting ``pursuant to
subsection (i)'' before the semicolon;
(8) in subsection (e)(2)--
(A) by inserting ``individual'' before ``contestant'' each
place such term appears; and
(B) by striking ``to that court's making the modification
and assuming'' and inserting ``with the State of continuing,
exclusive jurisdiction for a court of another State to modify
the order and assume'';
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively;
(10) by inserting after subsection (e) the following new
subsection:
``(f) Recognition of Child Support Orders.--If 1 or more
child support orders have been issued with regard to an
obligor and a child, a court shall apply the following rules
in determining which order to recognize for purposes of
continuing, exclusive jurisdiction and enforcement:
``(1) If only 1 court has issued a child support order, the
order of that court must be recognized.
``(2) If 2 or more courts have issued child support orders
for the same obligor and child, and only 1 of the courts
would have continuing, exclusive jurisdiction under this
section, the order of that court must be recognized.
``(3) If 2 or more courts have issued child support orders
for the same obligor and child, and more than 1 of the courts
would have continuing, exclusive jurisdiction under this
section, an order issued by a court in the current home State
of the child must be recognized, but if an order has not been
issued in the current home State of the child, the order most
recently issued must be recognized.
``(4) If 2 or more courts have issued child support orders
for the same obligor and child, and none of the courts would
have continuing, exclusive jurisdiction under this section, a
court may issue a child support order, which must be
recognized.
``(5) The court that has issued an order recognized under
this subsection is the court having continuing, exclusive
jurisdiction.'';
(11) in subsection (g) (as so redesignated)--
(A) by striking ``Prior'' and inserting ``Modified''; and
(B) by striking ``subsection (e)'' and inserting
``subsections (e) and (f)'';
(12) in subsection (h) (as so redesignated)--
(A) in paragraph (2), by inserting ``including the duration
of current payments and other obligations of support'' before
the comma; and
(B) in paragraph (3), by inserting ``arrears under'' after
``enforce''; and
(13) by adding at the end the following new subsection:
``(i) Registration for Modification.--If there is no
individual contestant or child residing in the issuing State,
the party or support enforcement agency seeking to modify, or
to modify and enforce, a child support order issued in
another State shall register that order in a State with
jurisdiction over the nonmovant for the purpose of
modification.''.
SEC. 4323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
4315 and 4317(a) of this Act, is amended by inserting after
paragraph (13) the following new paragraph:
[[Page H7875]]
``(14) Administrative enforcement in interstate cases.--
Procedures under which--
``(A)(i) the State shall respond within 5 business days to
a request made by another State to enforce a support order;
and
``(ii) the term `business day' means a day on which State
offices are open for regular business;
``(B) the State may, by electronic or other means, transmit
to another State a request for assistance in a case involving
the enforcement of a support order, which request--
``(i) shall include such information as will enable the
State to which the request is transmitted to compare the
information about the case to the information in the data
bases of the State; and
``(ii) shall constitute a certification by the requesting
State--
``(I) of the amount of support under the order the payment
of which is in arrears; and
``(II) that the requesting State has complied with all
procedural due process requirements applicable to the case;
``(C) if the State provides assistance to another State
pursuant to this paragraph with respect to a case, neither
State shall consider the case to be transferred to the
caseload of such other State; and
``(D) the State shall maintain records of--
``(i) the number of such requests for assistance received
by the State;
``(ii) the number of cases for which the State collected
support in response to such a request; and
``(iii) the amount of such collected support.''.
SEC. 4324. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is
amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) (as
amended by section 4346(a) of this Act) and inserting ``;
and''; and
(3) by adding at the end the following new paragraph:
``(11) not later than October 1, 1996, after consulting
with the State directors of programs under this part,
promulgate forms to be used by States in interstate cases
for--
``(A) collection of child support through income
withholding;
``(B) imposition of liens; and
``(C) administrative subpoenas.''.
(b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is
amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by inserting ``and'' at the end of subparagraph (D);
and
(3) by adding at the end the following new subparagraph:
``(E) not later than March 1, 1997, in using the forms
promulgated pursuant to section 452(a)(11) for income
withholding, imposition of liens, and issuance of
administrative subpoenas in interstate child support
cases;''.
SEC. 4325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) State Law Requirements.--Section 466 (42 U.S.C. 666),
as amended by section 4314 of this Act, is amended--
(1) in subsection (a)(2), by striking the first sentence
and inserting the following: ``Expedited administrative and
judicial procedures (including the procedures specified in
subsection (c)) for establishing paternity and for
establishing, modifying, and enforcing support
obligations.''; and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Expedited Procedures.--The procedures specified in
this subsection are the following:
``(1) Administrative action by state agency.--Procedures
which give the State agency the authority to take the
following actions relating to establishment of paternity or
to establishment, modification, or enforcement of support
orders, without the necessity of obtaining an order from any
other judicial or administrative tribunal, and to recognize
and enforce the authority of State agencies of other States
to take the following actions:
``(A) Genetic testing.--To order genetic testing for the
purpose of paternity establishment as provided in section
466(a)(5).
``(B) Financial or other information.--To subpoena any
financial or other information needed to establish, modify,
or enforce a support order, and to impose penalties for
failure to respond to such a subpoena.
``(C) Response to state agency request.--To require all
entities in the State (including for-profit, nonprofit, and
governmental employers) to provide promptly, in response to a
request by the State agency of that or any other State
administering a program under this part, information on the
employment, compensation, and benefits of any individual
employed by such entity as an employee or contractor, and to
sanction failure to respond to any such request.
``(D) Access to information contained in certain records.--
To obtain access, subject to safeguards on privacy and
information security, and subject to the nonliability of
entities that afford such access under this subparagraph,
to information contained in the following records
(including automated access, in the case of records
maintained in automated data bases):
``(i) Records of other State and local government agencies,
including--
``(I) vital statistics (including records of marriage,
birth, and divorce);
``(II) State and local tax and revenue records (including
information on residence address, employer, income and
assets);
``(III) records concerning real and titled personal
property;
``(IV) records of occupational and professional licenses,
and records concerning the ownership and control of
corporations, partnerships, and other business entities;
``(V) employment security records;
``(VI) records of agencies administering public assistance
programs;
``(VII) records of the motor vehicle department; and
``(VIII) corrections records.
``(ii) Certain records held by private entities with
respect to individuals who owe or are owed support (or
against or with respect to whom a support obligation is
sought), consisting of--
``(I) the names and addresses of such individuals and the
names and addresses of the employers of such individuals, as
appearing in customer records of public utilities and cable
television companies, pursuant to an administrative subpoena
authorized by subparagraph (B); and
``(II) information (including information on assets and
liabilities) on such individuals held by financial
institutions.
``(E) Change in payee.--In cases in which support is
subject to an assignment in order to comply with a
requirement imposed pursuant to part A or section 1912, or to
a requirement to pay through the State disbursement unit
established pursuant to section 454B, upon providing notice
to obligor and obligee, to direct the obligor or other payor
to change the payee to the appropriate government entity.
``(F) Income withholding.--To order income withholding in
accordance with subsections (a)(1)(A) and (b) of section 466.
``(G) Securing assets.--In cases in which there is a
support arrearage, to secure assets to satisfy the arrearage
by--
``(i) intercepting or seizing periodic or lump-sum payments
from--
``(I) a State or local agency, including unemployment
compensation, workers' compensation, and other benefits; and
``(II) judgments, settlements, and lotteries;
``(ii) attaching and seizing assets of the obligor held in
financial institutions;
``(iii) attaching public and private retirement funds; and
``(iv) imposing liens in accordance with subsection (a)(4)
and, in appropriate cases, to force sale of property and
distribution of proceeds.
``(H) Increase monthly payments.--For the purpose of
securing overdue support, to increase the amount of monthly
support payments to include amounts for arrearages, subject
to such conditions or limitations as the State may provide.
Such procedures shall be subject to due process safeguards,
including (as appropriate) requirements for
notice, opportunity to contest the action, and opportunity
for an appeal on the record to an independent
administrative or judicial tribunal.
``(2) Substantive and procedural rules.--The expedited
procedures required under subsection (a)(2) shall include the
following rules and authority, applicable with respect to all
proceedings to establish paternity or to establish, modify,
or enforce support orders:
``(A) Locator information; presumptions concerning
notice.--Procedures under which--
``(i) each party to any paternity or child support
proceeding is required (subject to privacy safeguards) to
file with the tribunal and the State case registry upon entry
of an order, and to update as appropriate, information on
location and identity of the party, including social security
number, residential and mailing addresses, telephone number,
driver's license number, and name, address, and telephone
number of employer; and
``(ii) in any subsequent child support enforcement action
between the parties, upon sufficient showing that diligent
effort has been made to ascertain the location of such a
party, the tribunal may deem State due process requirements
for notice and service of process to be met with respect to
the party, upon delivery of written notice to the most recent
residential or employer address filed with the tribunal
pursuant to clause (i).
``(B) Statewide jurisdiction.--Procedures under which--
``(i) the State agency and any administrative or judicial
tribunal with authority to hear child support and paternity
cases exerts statewide jurisdiction over the parties; and
``(ii) in a State in which orders are issued by courts or
administrative tribunals, a case may be transferred between
local jurisdictions in the State without need for any
additional filing by the petitioner, or service of process
upon the respondent, to retain jurisdiction over the parties.
``(3) Coordination with erisa.--Notwithstanding subsection
(d) of section 514 of the Employee Retirement Income Security
Act of 1974 (relating to effect on other laws), nothing in
this subsection shall be construed to alter, amend, modify,
invalidate, impair, or supersede subsections (a), (b), and
(c) of such section 514 as it applies with respect to any
procedure referred to in paragraph (1) and any expedited
procedure referred to in paragraph (2), except to the extent
that such procedure would be consistent with the requirements
of section 206(d)(3) of such Act (relating to qualified
domestic relations orders) or the requirements of section
609(a) of
[[Page H7876]]
such Act (relating to qualified medical child support orders)
if the reference in such section 206(d)(3) to a domestic
relations order and the reference in such section 609(a) to a
medical child support order were a reference to a support
order referred to in paragraphs (1) and (2) relating to the
same matters, respectively.''.
(b) Automation of State Agency Functions.--Section 454A, as
added by section 4344(a)(2) and as amended by sections 4311
and 4312(c) of this Act, is amended by adding at the end the
following new subsection:
``(h) Expedited Administrative Procedures.--The automated
system required by this section shall be used, to the maximum
extent feasible, to implement the expedited administrative
procedures required by section 466(c).''.
CHAPTER 4--PATERNITY ESTABLISHMENT
SEC. 4331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.
(a) State Laws Required.--Section 466(a)(5) (42 U.S.C.
666(a)(5)) is amended to read as follows:
``(5) Procedures concerning paternity establishment.--
``(A) Establishment process available from birth until age
18.--
``(i) Procedures which permit the establishment of the
paternity of a child at any time before the child attains 18
years of age.
``(ii) As of August 16, 1984, clause (i) shall also apply
to a child for whom paternity has not been established or for
whom a paternity action was brought but dismissed because a
statute of limitations of less than 18 years was then in
effect in the State.
``(B) Procedures concerning genetic testing.--
``(i) Genetic testing required in certain contested
cases.--Procedures under which the State is required, in a
contested paternity case (unless otherwise barred by State
law) to require the child and all other parties (other than
individuals found under section 454(29) to have good cause
and other exceptions for refusing to cooperate) to submit to
genetic tests upon the request of any such party, if the
request is supported by a sworn statement by the party--
``(I) alleging paternity, and setting forth facts
establishing a reasonable possibility of the requisite sexual
contact between the parties; or
``(II) denying paternity, and setting forth facts
establishing a reasonable possibility of the nonexistence of
sexual contact between the parties.
``(ii) Other requirements.--Procedures which require the
State agency, in any case in which the agency orders genetic
testing--
``(I) to pay costs of such tests, subject to recoupment (if
the State so elects) from the alleged father if paternity is
established; and
``(II) to obtain additional testing in any case if an
original test result is contested, upon request and advance
payment by the contestant.
``(C) Voluntary paternity acknowledgment.--
``(i) Simple civil process.--Procedures for a simple civil
process for voluntarily acknowledging paternity under which
the State must provide that, before a mother and a putative
father can sign an acknowledgment of paternity, the mother
and the putative father must be given notice, orally and in
writing, of the alternatives to, the legal consequences of,
and the rights (including, if 1 parent is a minor, any rights
afforded due to minority status) and responsibilities that
arise from, signing the acknowledgment.
``(ii) Hospital-based program.--Such procedures must
include a hospital-based program for the voluntary
acknowledgment of paternity focusing on the period
immediately before or after the birth of a child.
``(iii) Paternity establishment services.--
``(I) State-offered services.--Such procedures must require
the State agency responsible for maintaining birth records to
offer voluntary paternity establishment services.
``(II) Regulations.--
``(aa) Services offered by hospitals and birth record
agencies.--The Secretary shall prescribe regulations
governing voluntary paternity establishment services offered
by hospitals and birth record agencies.
``(bb) Services offered by other entities.--The Secretary
shall prescribe regulations specifying the types of other
entities that may offer voluntary paternity establishment
services, and governing the provision of such services,
which shall include a requirement that such an entity must
use the same notice provisions used by, use the same
materials used by, provide the personnel providing such
services with the same training provided by, and evaluate
the provision of such services in the same manner as the
provision of such services is evaluated by, voluntary
paternity establishment programs of hospitals and birth
record agencies.
``(iv) Use of paternity acknowledgment affidavit.--Such
procedures must require the State to develop and use an
affidavit for the voluntary acknowledgment of paternity which
includes the minimum requirements of the affidavit specified
by the Secretary under section 452(a)(7) for the voluntary
acknowledgment of paternity, and to give full faith and
credit to such an affidavit signed in any other State
according to its procedures.
``(D) Status of signed paternity acknowledgment.--
``(i) Inclusion in birth records.--Procedures under which
the name of the father shall be included on the record of
birth of the child of unmarried parents only if--
``(I) the father and mother have signed a voluntary
acknowledgment of paternity; or
``(II) a court or an administrative agency of competent
jurisdiction has issued an adjudication of paternity.
Nothing in this clause shall preclude a State agency from
obtaining an admission of paternity from the father for
submission in a judicial or administrative proceeding, or
prohibit the issuance of an order in a judicial or
administrative proceeding which bases a legal finding of
paternity on an admission of paternity by the father and any
other additional showing required by State law.
``(ii) Legal finding of paternity.--Procedures under which
a signed voluntary acknowledgment of paternity is considered
a legal finding of paternity, subject to the right of any
signatory to rescind the acknowledgment within the earlier
of--
``(I) 60 days; or
``(II) the date of an administrative or judicial proceeding
relating to the child (including a proceeding to establish a
support order) in which the signatory is a party.
``(iii) Contest.--Procedures under which, after the 60-day
period referred to in clause (ii), a signed voluntary
acknowledgment of paternity may be challenged in court only
on the basis of fraud, duress, or material mistake of fact,
with the burden of proof upon the challenger, and under which
the legal responsibilities (including child support
obligations) of any signatory arising from the acknowledgment
may not be suspended during the challenge, except for good
cause shown.
``(E) Bar on acknowledgment ratification proceedings.--
Procedures under which judicial or administrative proceedings
are not required or permitted to ratify an unchallenged
acknowledgment of paternity.
``(F) Admissibility of genetic testing results.--
Procedures--
``(i) requiring the admission into evidence, for purposes
of establishing paternity, of the results of any genetic test
that is--
``(I) of a type generally acknowledged as reliable by
accreditation bodies designated by the Secretary; and
``(II) performed by a laboratory approved by such an
accreditation body;
``(ii) requiring an objection to genetic testing results to
be made in writing not later than a specified number of days
before any hearing at which the results may be introduced
into evidence (or, at State option, not later than a
specified number of days after receipt of the results); and
``(iii) making the test results admissible as evidence of
paternity without the need for foundation testimony or other
proof of authenticity or accuracy, unless objection is made.
``(G) Presumption of paternity in certain cases.--
Procedures which create a rebuttable or, at the option of the
State, conclusive presumption of paternity upon genetic
testing results indicating a threshold probability that the
alleged father is the father of the child.
``(H) Default orders.--Procedures requiring a default order
to be entered in a paternity case upon a showing of service
of process on the defendant and any additional showing
required by State law.
``(I) No right to jury trial.--Procedures providing that
the parties to an action to establish paternity are not
entitled to a trial by jury.
``(J) Temporary support order based on probable paternity
in contested cases.--Procedures which require that a
temporary order be issued, upon motion by a party, requiring
the provision of child support pending an administrative or
judicial determination of parentage, if there is clear and
convincing evidence of paternity (on the basis of genetic
tests or other evidence).
``(K) Proof of certain support and paternity establishment
costs.--Procedures under which bills for pregnancy,
childbirth, and genetic testing are admissible as evidence
without requiring third-party foundation testimony, and shall
constitute prima facie evidence of amounts incurred for such
services or for testing on behalf of the child.
``(L) Standing of putative fathers.--Procedures ensuring
that the putative father has a reasonable opportunity to
initiate a paternity action.
``(M) Filing of acknowledgments and adjudications in state
registry of birth records.--Procedures under which voluntary
acknowledgments and adjudications of paternity by judicial or
administrative processes are filed with the State registry of
birth records for comparison with information in the State
case registry.''.
(b) National Paternity Acknowledgment Affidavit.--Section
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``,
and specify the minimum requirements of an affidavit to be
used for the voluntary acknowledgment of paternity which
shall include the social security number of each parent and,
after consultation with the States, other common elements as
determined by such designee'' before the semicolon.
(c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is
amended by striking ``a simple civil process for voluntarily
acknowledging paternity and''.
SEC. 4332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting
``and will publicize the availability and encourage the use
of procedures for voluntary establishment of paternity and
[[Page H7877]]
child support by means the State deems appropriate'' before
the semicolon.
SEC. 4333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF
PART A ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections
4301(b), 4303(a), 4312(a), and 4313(a) of this Act, is
amended--
(1) by striking ``and'' at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28) and
inserting ``; and''; and
(3) by inserting after paragraph (28) the following new
paragraph:
``(29) provide that the State agency responsible for
administering the State plan--
``(A) shall make the determination (and redetermination at
appropriate intervals) as to whether an individual who has
applied for or is receiving assistance under the State
program funded under part A of this title or the State
program under title XIX is cooperating in good faith with the
State in establishing the paternity of, or in establishing,
modifying, or enforcing a support order for, any child of the
individual by providing the State agency with the name of,
and such other information as the State agency may require
with respect to, the noncustodial parent of the child,
subject to good cause and other exceptions which--
``(i) shall be defined, taking into account the best
interests of the child, and
``(ii) shall be applied in each case,
by, at the option of the State, the State agency
administering the State program under part A, this part, or
title XIX;
``(B) shall require the individual to supply additional
necessary information and appear at interviews, hearings, and
legal proceedings;
``(C) shall require the individual and the child to submit
to genetic tests pursuant to judicial or administrative
order;
``(D) may request that the individual sign a voluntary
acknowledgment of paternity, after notice of the rights and
consequences of such an acknowledgment, but may not require
the individual to sign an acknowledgment or otherwise
relinquish the right to genetic tests as a condition of
cooperation and eligibility for assistance under the State
program funded under part A, or the State program under title
XIX; and
``(E) shall promptly notify the individual, the State
agency administering the State program funded under part A,
and the State agency administering the State program under
title XIX, of each such determination, and if noncooperation
is determined, the basis therefor.''.
CHAPTER 5--PROGRAM ADMINISTRATION AND FUNDING
SEC. 4341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) Development of New System.--The Secretary of Health and
Human Services, in consultation with State directors of
programs under part D of title IV of the Social Security Act,
shall develop a new incentive system to replace, in a revenue
neutral manner, the system under section 458 of such Act. The
new system shall provide additional payments to any State
based on such State's performance under such a program. Not
later than November 1, 1996, the Secretary shall report on
the new system to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate.
(b) Conforming Amendments to Present System.--Section 458
(42 U.S.C. 658) is amended--
(1) in subsection (a), by striking ``aid to families with
dependent children under a State plan approved under part A
of this title'' and inserting ``assistance under a program
funded under part A'';
(2) in subsection (b)(1)(A), by striking ``section
402(a)(26)'' and inserting ``section 408(a)(4)'';
(3) in subsections (b) and (c)--
(A) by striking ``AFDC collections'' each place it appears
and inserting ``title IV-A collections'', and
(B) by striking ``non-AFDC collections'' each place it
appears and inserting ``non-title IV-A collections''; and
(4) in subsection (c), by striking ``combined AFDC/non-AFDC
administrative costs'' both places it appears and inserting
``combined title IV-A/non-title IV-A administrative costs''.
(c) Calculation of Paternity Establishment Percentage.--
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is
amended by striking ``75'' and inserting ``90''.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
(A) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively, and by inserting
after subparagraph (A) the following new subparagraph:
``(B) for a State with a paternity establishment percentage
of not less than 75 percent but less than 90 percent for such
fiscal year, the paternity establishment percentage of the
State for the immediately preceding fiscal year plus 2
percentage points;''; and
(B) by adding at the end the following new flush sentence:
``In determining compliance under this section, a State may
use as its paternity establishment percentage either the
State's IV-D paternity establishment percentage (as defined
in paragraph (2)(A)) or the State's statewide paternity
establishment percentage (as defined in paragraph (2)(B)).''.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i)--
(I) by striking ``paternity establishment percentage'' and
inserting ``IV-D paternity establishment percentage''; and
(II) by striking ``(or all States, as the case may be)'';
and
(ii) by striking ``and'' at the end; and
(B) by redesignating subparagraph (B) as subparagraph (C)
and by inserting after subparagraph (A) the following new
subparagraph:
``(B) the term `statewide paternity establishment
percentage' means, with respect to a State for a fiscal year,
the ratio (expressed as a percentage) that the total number
of minor children--
``(i) who have been born out of wedlock, and
``(ii) the paternity of whom has been established or
acknowledged during the fiscal year,
bears to the total number of children born out of wedlock
during the preceding fiscal year; and''.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
(A) by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively; and
(B) in subparagraph (A) (as so redesignated), by striking
``the percentage of children born out-of-wedlock in a State''
and inserting ``the percentage of children in a State who are
born out of wedlock or for whom support has not been
established''.
(d) Effective Dates.--
(1) Incentive adjustments.--
(A) In general.--The system developed under subsection (a)
and the amendments made by subsection (b) shall become
effective on October 1, 1998, except to the extent provided
in subparagraph (B).
(B) Application of section 458.--Section 458 of the Social
Security Act, as in effect on the day before the date of the
enactment of this section, shall be effective for purposes of
incentive payments to States for fiscal years before fiscal
year 1999.
(2) Penalty reductions.--The amendments made by subsection
(c) shall become effective with respect to calendar quarters
beginning on or after the date of the enactment of this Act.
SEC. 4342. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) State Agency Activities.--Section 454 (42 U.S.C. 654)
is amended--
(1) in paragraph (14), by striking ``(14)'' and inserting
``(14)(A)'';
(2) by redesignating paragraph (15) as subparagraph (B) of
paragraph (14); and
(3) by inserting after paragraph (14) the following new
paragraph:
``(15) provide for--
``(A) a process for annual reviews of and reports to the
Secretary on the State program operated under the State plan
approved under this part, including such information as may
be necessary to measure State compliance with Federal
requirements for expedited procedures, using such standards
and procedures as are required by the Secretary, under which
the State agency will determine the extent to which the
program is operated in compliance with this part; and
``(B) a process of extracting from the automated data
processing system required by paragraph (16) and transmitting
to the Secretary data and calculations concerning the levels
of accomplishment (and rates of improvement) with respect to
applicable performance indicators (including paternity
establishment percentages) to the extent necessary for
purposes of sections 452(g) and 458;''.
(b) Federal Activities.--Section 452(a)(4) (42 U.S.C.
652(a)(4)) is amended to read as follows:
``(4)(A) review data and calculations transmitted by State
agencies pursuant to section 454(15)(B) on State program
accomplishments with respect to performance indicators for
purposes of subsection (g) of this section and section 458;
``(B) review annual reports submitted pursuant to section
454(15)(A) and, as appropriate, provide to the State
comments, recommendations for additional or alternative
corrective actions, and technical assistance; and
``(C) conduct audits, in accordance with the Government
auditing standards of the Comptroller General of the United
States--
``(i) at least once every 3 years (or more frequently, in
the case of a State which fails to meet the requirements of
this part concerning performance standards and reliability of
program data) to assess the completeness, reliability, and
security of the data and the accuracy of the reporting
systems used in calculating performance indicators under
subsection (g) of this section and section 458;
``(ii) of the adequacy of financial management of the State
program operated under the State plan approved under this
part, including assessments of--
``(I) whether Federal and other funds made available to
carry out the State program are being appropriately expended,
and are properly and fully accounted for; and
``(II) whether collections and disbursements of support
payments are carried out correctly and are fully accounted
for; and
``(iii) for such other purposes as the Secretary may find
necessary;''.
(c) Effective Date.--The amendments made by this section
shall be effective with respect to calendar quarters
beginning 12 months or more after the date of the enactment
of this Act.
[[Page H7878]]
SEC. 4343. REQUIRED REPORTING PROCEDURES.
(a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5))
is amended by inserting ``, and establish procedures to be
followed by States for collecting and reporting information
required to be provided under this part, and establish
uniform definitions (including those necessary to enable the
measurement of State compliance with the requirements of this
part relating to expedited processes) to be applied in
following such procedures'' before the semicolon.
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections 4301(b), 4303(a), 4312(a), 4313(a),
and 4333 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29) and
inserting ``; and''; and
(3) by adding after paragraph (29) the following new
paragraph:
``(30) provide that the State shall use the definitions
established under section 452(a)(5) in collecting and
reporting information as required under this part.''.
SEC. 4344. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) Revised Requirements.--
(1) In general.--Section 454(16) (42 U.S.C. 654(16)) is
amended--
(A) by striking ``, at the option of the State,'';
(B) by inserting ``and operation by the State agency''
after ``for the establishment'';
(C) by inserting ``meeting the requirements of section
454A'' after ``information retrieval system'';
(D) by striking ``in the State and localities thereof, so
as (A)'' and inserting ``so as'';
(E) by striking ``(i)''; and
(F) by striking ``(including'' and all that follows and
inserting a semicolon.
(2) Automated data processing.--Part D of title IV (42
U.S.C. 651-669) is amended by inserting after section 454 the
following new section:
``SEC. 454A. AUTOMATED DATA PROCESSING.
``(a) In General.--In order for a State to meet the
requirements of this section, the State agency administering
the State program under this part shall have in operation a
single statewide automated data processing and information
retrieval system which has the capability to perform the
tasks specified in this section with the frequency and in the
manner required by or under this part.
``(b) Program Management.--The automated system required by
this section shall perform such functions as the Secretary
may specify relating to management of the State program under
this part, including--
``(1) controlling and accounting for use of Federal, State,
and local funds in carrying out the program; and
``(2) maintaining the data necessary to meet Federal
reporting requirements under this part on a timely basis.
``(c) Calculation of Performance Indicators.--In order to
enable the Secretary to determine the incentive payments and
penalty adjustments required by sections 452(g) and 458, the
State agency shall--
``(1) use the automated system--
``(A) to maintain the requisite data on State performance
with respect to paternity establishment and child support
enforcement in the State; and
``(B) to calculate the paternity establishment percentage
for the State for each fiscal year; and
``(2) have in place systems controls to ensure the
completeness and reliability of, and ready access to, the
data described in paragraph (1)(A), and the accuracy of the
calculations described in paragraph (1)(B).
``(d) Information Integrity and Security.--The State agency
shall have in effect safeguards on the integrity, accuracy,
and completeness of, access to, and use of data in the
automated system required by this section, which shall
include the following (in addition to such other safeguards
as the Secretary may specify in regulations):
``(1) Policies restricting access.--Written policies
concerning access to data by State agency personnel, and
sharing of data with other persons, which--
``(A) permit access to and use of data only to the extent
necessary to carry out the State program under this part; and
``(B) specify the data which may be used for particular
program purposes, and the personnel permitted access to such
data.
``(2) Systems controls.--Systems controls (such as
passwords or blocking of fields) to ensure strict adherence
to the policies described in paragraph (1).
``(3) Monitoring of access.--Routine monitoring of access
to and use of the automated system, through methods such as
audit trails and feedback mechanisms, to guard against and
promptly identify unauthorized access or use.
``(4) Training and information.--Procedures to ensure that
all personnel (including State and local agency staff and
contractors) who may have access to or be required to use
confidential program data are informed of applicable
requirements and penalties (including those in section 6103
of the Internal Revenue Code of 1986), and are adequately
trained in security procedures.
``(5) Penalties.--Administrative penalties (up to and
including dismissal from employment) for unauthorized access
to, or disclosure or use of, confidential data.''.
(3) Regulations.--The Secretary of Health and Human
Services shall prescribe final regulations for implementation
of section 454A of the Social Security Act not later than 2
years after the date of the enactment of this Act.
(4) Implementation timetable.--Section 454(24) (42 U.S.C.
654(24)), as amended by section 4303(a)(1) of this Act, is
amended to read as follows:
``(24) provide that the State will have in effect an
automated data processing and information retrieval system--
``(A) by October 1, 1997, which meets all requirements of
this part which were enacted on or before the date of
enactment of the Family Support Act of 1988, and
``(B) by October 1, 1999, which meets all requirements of
this part enacted on or before the date of the enactment of
the Personal Responsibility and Work Opportunity Act of 1996,
except that such deadline shall be extended by 1 day for each
day (if any) by which the Secretary fails to meet the
deadline imposed by section 4344(a)(3) of the Personal
Responsibility and Work Opportunity Act of 1996;''.
(b) Special Federal Matching Rate for Development Costs of
Automated Systems.--
(1) In general.--Section 455(a) (42 U.S.C. 655(a)) is
amended--
(A) in paragraph (1)(B)--
(i) by striking ``90 percent'' and inserting ``the percent
specified in paragraph (3)'';
(ii) by striking ``so much of''; and
(iii) by striking ``which the Secretary'' and all that
follows and inserting ``, and''; and
(B) by adding at the end the following new paragraph:
``(3)(A) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 and 1997, 90 percent of so much
of the State expenditures described in paragraph (1)(B) as
the Secretary finds are for a system meeting the requirements
specified in section 454(16) (as in effect on September 30,
1995) but limited to the amount approved for States in the
advance planning documents of such States submitted on or
before September 30, 1995.
``(B)(i) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 through 2001, the percentage
specified in clause (ii) of so much of the State expenditures
described in paragraph (1)(B) as the Secretary finds are for
a system meeting the requirements of sections 454(16) and
454A.
``(ii) The percentage specified in this clause is 80
percent.''.
(2) Temporary limitation on payments under special federal
matching rate.--
(A) In general.--The Secretary of Health and Human Services
may not pay more than $400,000,000 in the aggregate under
section 455(a)(3)(B) of the Social Security Act for fiscal
years 1996 through 2001.
(B) Allocation of limitation among states.--The total
amount payable to a State under section 455(a)(3)(B) of such
Act for fiscal years 1996 through 2001 shall not exceed the
limitation determined for the State by the Secretary of
Health and Human Services in regulations.
(C) Allocation formula.--The regulations referred to in
subparagraph (B) shall prescribe a formula for allocating the
amount specified in subparagraph (A) among States with plans
approved under part D of title IV of the Social Security Act,
which shall take into account--
(i) the relative size of State caseloads under such part;
and
(ii) the level of automation needed to meet the automated
data processing requirements of such part.
(c) Conforming Amendment.--Section 123(c) of the Family
Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is
repealed.
SEC. 4345. TECHNICAL ASSISTANCE.
(a) For Training of Federal and State Staff, Research and
Demonstration Programs, and Special Projects of Regional or
National Significance.--Section 452 (42 U.S.C. 652) is
amended by adding at the end the following new subsection:
``(j) Out of any money in the Treasury of the United States
not otherwise appropriated, there is hereby appropriated to
the Secretary for each fiscal year an amount equal to 1
percent of the total amount paid to the Federal Government
pursuant to section 457(a) during the immediately preceding
fiscal year (as determined on the basis of the most recent
reliable data available to the Secretary as of the end of the
3rd calendar quarter following the end of such preceding
fiscal year), to cover costs incurred by the Secretary for--
``(1) information dissemination and technical assistance to
States, training of State and Federal staff, staffing
studies, and related activities needed to improve programs
under this part (including technical assistance concerning
State automated systems required by this part); and
``(2) research, demonstration, and special projects of
regional or national significance relating to the operation
of State programs under this part.
The amount appropriated under this subsection shall remain
available until expended.''.
(b) Operation of Federal Parent Locator Service.--Section
453 (42 U.S.C. 653), as amended by section 4316 of this Act,
is amended by adding at the end the following new subsection:
``(o) Recovery of Costs.--Out of any money in the Treasury
of the United States not otherwise appropriated, there is
hereby appropriated to the Secretary for each fiscal year an
amount equal to 2 percent of the total amount paid to the
Federal Government pursuant to section 457(a) during the
immediately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
as of the
[[Page H7879]]
end of the 3rd calendar quarter following the end of such
preceding fiscal year), to cover costs incurred by the
Secretary for operation of the Federal Parent Locator Service
under this section, to the extent such costs are not
recovered through user fees.''.
SEC. 4346. REPORTS AND DATA COLLECTION BY THE SECRETARY.
(a) Annual Report to Congress.--
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is
amended--
(A) by striking ``this part;'' and inserting ``this part,
including--''; and
(B) by adding at the end the following new clauses:
``(i) the total amount of child support payments collected
as a result of services furnished during the fiscal year to
individuals receiving services under this part;
``(ii) the cost to the States and to the Federal Government
of so furnishing the services; and
``(iii) the number of cases involving families--
``(I) who became ineligible for assistance under State
programs funded under part A during a month in the fiscal
year; and
``(II) with respect to whom a child support payment was
received in the month;''.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended--
(A) in the matter preceding clause (i)--
(i) by striking ``with the data required under each clause
being separately stated for cases'' and inserting
``separately stated for cases'';
(ii) by striking ``cases where the child was formerly
receiving'' and inserting ``or formerly received'';
(iii) by inserting ``or 1912'' after ``471(a)(17)''; and
(iv) by inserting ``for'' before ``all other'';
(B) in each of clauses (i) and (ii), by striking ``, and
the total amount of such obligations'';
(C) in clause (iii), by striking ``described in'' and all
that follows and inserting ``in which support was collected
during the fiscal year;'';
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii), and
inserting after clause (iii) the following new clauses:
``(iv) the total amount of support collected during such
fiscal year and distributed as current support;
``(v) the total amount of support collected during such
fiscal year and distributed as arrearages;
``(vi) the total amount of support due and unpaid for all
fiscal years; and''.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is
amended by striking ``on the use of Federal courts and''.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
(A) in subparagraph (H), by striking ``and'';
(B) in subparagraph (I), by striking the period and
inserting ``; and''; and
(C) by inserting after subparagraph (I) the following new
subparagraph:
``(J) compliance, by State, with the standards established
pursuant to subsections (h) and (i).''.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by
striking ``The information contained in any such report under
subpargraph (A)'' and all that follows through ``the State
plan approved under part A.''.
(b) Effective Date.--The amendments made by subsection (a)
shall be effective with respect to fiscal year 1997 and
succeeding fiscal years.
SEC. 4347. CHILD SUPPORT DELINQUENCY PENALTY.
Section 454 (42 U.S.C. 654), as amended by sections
4301(b), 4303(a), 4312(a), 4313(a), 4333, and 4343(b) of this
Act, is amended--
(1) by striking ``and'' at the end of paragraph (29);
(2) by striking the period at the end of paragraph (30) and
inserting ``; and''; and
(3) by adding after paragraph (30) the following new
paragraph:
``(31) provide that the State shall have in effect such
laws and procedures as may be necessary to ensure that--
``(A) any person who, at the end of any calendar year, is
delinquent in the payment of child support is civilly liable
to the State for a penalty in an amount equal to 10 percent
of the amount of the delinquency (excluding any delinquency
of the person with respect to which a penalty has been
imposed pursuant to this paragraph for a prior calendar
year); and
``(B) the State shall apply amounts collected from a person
described in subparagraph (A) to the payment of penalties
imposed pursuant to subparagraph (A), after all child support
delinquencies of the person have been extinguished and the
person has repaid the State for all public assistance
provided to the person owed such support, and shall remit to
the Federal Government an amount equal to 50 percent of the
amount applied to the payment of such penalties.''
CHAPTER 6--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
SEC. 4351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to
read as follows:
``(10) Review and adjustment of support orders upon
request.--
``(A) In general.--Procedures under which--
``(i) upon the request of either parent, the State shall
review and, as appropriate, adjust each support order being
enforced under this part, taking into account the best
interests of the child involved; and
``(ii) upon the State's own initiative, the State may
review and, if appropriate, adjust any support order being
enforced under this part with respect to which there is an
assignment under part A, taking into account the best
interests of the child involved.Such procedures shall provide
the following:
``(B) Methods of adjustment.--Such procedures shall provide
that the State may elect to review and, if appropriate,
adjust an order--
``(i) by reviewing and, if appropriate, adjusting the order
in accordance with the guidelines established pursuant to
section 467(a) if the amount of the child support award under
the order differs from the amount that would be awarded in
accordance with the guidelines;
``(ii) by applying a cost-of-living adjustment to the order
in accordance with a formula developed by the State and
permit either party to contest the adjustment, within 30 days
after the date of the notice of the adjustment, by making a
request for review and, if appropriate, adjustment of the
order in accordance with the child support guidelines
established pursuant to section 467(a); or
``(iii) by using automated methods (including automated
comparisons with wage or State income tax data) to identify
orders eligible for review, conduct the review, identify
orders eligible for adjustment, and apply the appropriate
adjustment to the orders eligible for adjustment under the
threshold established by the State.
``(C) No proof of change in circumstances necessary.--Such
procedures shall provide that any adjustment under this
paragraph shall be made without a requirement for proof or
showing of a change in circumstances.
``(D) Notice of right to review.--Such procedures shall
require the State to provide notice not less than once every
3 years to the parents subject to an order being enforced
under this part informing them of their right to request the
State to review and, if appropriate, adjust the order
pursuant to this paragraph. The notice may be included in the
order.''.
SEC. 4352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES
RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15 U.S.C.
1681b) is amended by adding at the end the following new
paragraphs:
``(4) In response to a request by the head of a State or
local child support enforcement agency (or a State or local
government official authorized by the head of such an
agency), if the person making the request certifies to the
consumer reporting agency that--
``(A) the consumer report is needed for the purpose of
establishing an individual's capacity to make child support
payments or determining the appropriate level of such
payments;
``(B) the paternity of the consumer for the child to which
the obligation relates has been established or acknowledged
by the consumer in accordance with State laws under which the
obligation arises (if required by those laws);
``(C) the person has provided at least 10 days' prior
notice to the consumer whose report is requested, by
certified or registered mail to the last known address of the
consumer, that the report will be requested; and
``(D) the consumer report will be kept confidential, will
be used solely for a purpose described in subparagraph (A),
and will not be used in connection with any other civil,
administrative, or criminal proceeding, or for any other
purpose.
``(5) To an agency administering a State plan under section
454 of the Social Security Act (42 U.S.C. 654) for use to set
an initial or modified child support award.''.
SEC. 4353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
Part D of title IV (42 U.S.C. 651-669) is amended by adding
at the end the following:
``SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE CHILD
SUPPORT ENFORCEMENT AGENCIES IN CHILD SUPPORT
CASES.
``(a) In General.--Notwithstanding any other provision of
Federal or State law, a financial institution shall not be
liable under any Federal or State law to any person for
disclosing any financial record of an individual to a State
child support enforcement agency attempting to establish,
modify, or enforce a child support obligation of such
individual.
``(b) Prohibition of Disclosure of Financial Record
Obtained by State Child Support Enforcement Agency.--A State
child support enforcement agency which obtains a financial
record of an individual from a financial institution pursuant
to subsection (a) may disclose such financial record only for
the purpose of, and to the extent necessary in, establishing,
modifying, or enforcing a child support obligation of such
individual.
``(c) Civil Damages for Unauthorized Disclosure.--
``(1) Disclosure by state officer or employee.--If any
person knowingly, or by reason of negligence, discloses a
financial record of an individual in violation of subsection
(b), such individual may bring a civil
[[Page H7880]]
action for damages against such person in a district court of
the United States.
``(2) No liability for good faith but erroneous
interpretation.--No liability shall arise under this
subsection with respect to any disclosure which results from
a good faith, but erroneous, interpretation of subsection
(b).
``(3) Damages.--In any action brought under paragraph (1),
upon a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal
to the sum of--
``(A) the greater of--
``(i) $1,000 for each act of unauthorized disclosure of a
financial record with respect to which such defendant is
found liable; or
``(ii) the sum of--
``(I) the actual damages sustained by the plaintiff as a
result of such unauthorized disclosure; plus
``(II) in the case of a willful disclosure or a disclosure
which is the result of gross negligence, punitive damages;
plus
``(B) the costs (including attorney's fees) of the action.
``(d) Definitions.--For purposes of this section--
``(1) Financial institution.--The term `financial
institution' means--
``(A) a depository institution, as defined in section 3(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
``(B) an institution-affiliated party, as defined in
section 3(u) of such Act (12 U.S.C. 1813(u));
``(C) any Federal credit union or State credit union, as
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752), including an institution-affiliated party of
such a credit union, as defined in section 206(r) of such Act
(12 U.S.C. 1786(r)); and
``(D) any benefit association, insurance company, safe
deposit company, money-market mutual fund, or similar entity
authorized to do business in the State.
``(2) Financial record.--The term `financial record' has
the meaning given such term in section 1101 of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401).''.
CHAPTER 7--ENFORCEMENT OF SUPPORT ORDERS
SEC. 4361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.
(a) Collection of Fees.--Section 6305(a) of the Internal
Revenue Code of 1986 (relating to collection of certain
liability) is amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``, and'';
(3) by adding at the end the following new paragraph:
``(5) no additional fee may be assessed for adjustments to
an amount previously certified pursuant to such section
452(b) with respect to the same obligor.''; and
(4) by striking ``Secretary of Health, Education, and
Welfare'' each place it appears and inserting ``Secretary of
Health and Human Services''.
(b) Effective Date.--The amendments made by this section
shall become effective October 1, 1997.
SEC. 4362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL
EMPLOYEES.
(a) Consolidation and Streamlining of Authorities.--Section
459 (42 U.S.C. 659) is amended to read as follows:
``SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD SUPPORT
AND ALIMONY OBLIGATIONS.
``(a) Consent to Support Enforcement.--Notwithstanding any
other provision of law (including section 207 of this Act and
section 5301 of title 38, United States Code), effective
January 1, 1975, moneys (the entitlement to which is based
upon remuneration for employment) due from, or payable by,
the United States or the District of Columbia (including any
agency, subdivision, or instrumentality thereof) to any
individual, including members of the Armed Forces of the
United States, shall be subject, in like manner and to the
same extent as if the United States or the District of
Columbia were a private person, to withholding in accordance
with State law enacted pursuant to subsections (a)(1) and (b)
of section 466 and regulations of the Secretary under such
subsections, and to any other legal process brought, by a
State agency administering a program under a State plan
approved under this part or by an individual obligee, to
enforce the legal obligation of the individual to provide
child support or alimony.
``(b) Consent to Requirements Applicable to Private
Person.--With respect to notice to withhold income pursuant
to subsection (a)(1) or (b) of section 466, or any
other order or process to enforce support obligations
against an individual (if the order or process contains or
is accompanied by sufficient data to permit prompt
identification of the individual and the moneys involved),
each governmental entity specified in subsection (a) shall
be subject to the same requirements as would apply if the
entity were a private person, except as otherwise provided
in this section.
``(c) Designation of Agent; Response to Notice or Process--
``(1) Designation of agent.--The head of each agency
subject to this section shall--
``(A) designate an agent or agents to receive orders and
accept service of process in matters relating to child
support or alimony; and
``(B) annually publish in the Federal Register the
designation of the agent or agents, identified by title or
position, mailing address, and telephone number.
``(2) Response to notice or process.--If an agent
designated pursuant to paragraph (1) of this subsection
receives notice pursuant to State procedures in effect
pursuant to subsection (a)(1) or (b) of section 466, or is
effectively served with any order, process, or interrogatory,
with respect to an individual's child support or alimony
payment obligations, the agent shall--
``(A) as soon as possible (but not later than 15 days)
thereafter, send written notice of the notice or service
(together with a copy of the notice or service) to the
individual at the duty station or last-known home address of
the individual;
``(B) within 30 days (or such longer period as may be
prescribed by applicable State law) after receipt of a notice
pursuant to such State procedures, comply with all applicable
provisions of section 466; and
``(C) within 30 days (or such longer period as may be
prescribed by applicable State law) after effective service
of any other such order, process, or interrogatory, respond
to the order, process, or interrogatory.
``(d) Priority of Claims.--If a governmental entity
specified in subsection (a) receives notice or is served with
process, as provided in this section, concerning amounts owed
by an individual to more than 1 person--
``(1) support collection under section 466(b) must be given
priority over any other process, as provided in section
466(b)(7);
``(2) allocation of moneys due or payable to an individual
among claimants under section 466(b) shall be governed by
section 466(b) and the regulations prescribed under such
section; and
``(3) such moneys as remain after compliance with
paragraphs (1) and (2) shall be available to satisfy any
other such processes on a first-come, first-served basis,
with any such process being satisfied out of such moneys as
remain after the satisfaction of all such processes which
have been previously served.
``(e) No Requirement to Vary Pay Cycles.--A governmental
entity that is affected by legal process served for the
enforcement of an individual's child support or alimony
payment obligations shall not be required to vary its normal
pay and disbursement cycle in order to comply with the legal
process.
``(f) Relief From Liability.--
``(1) Neither the United States, nor the government of the
District of Columbia, nor any disbursing officer shall be
liable with respect to any payment made from moneys due or
payable from the United States to any individual pursuant to
legal process regular on its face, if the payment is made in
accordance with this section and the regulations issued to
carry out this section.
``(2) No Federal employee whose duties include taking
actions necessary to comply with the requirements of
subsection (a) with regard to any individual shall be subject
under any law to any disciplinary action or civil or criminal
liability or penalty for, or on account of, any disclosure
of information made by the employee in connection with the
carrying out of such actions.
``(g) Regulations.--Authority to promulgate regulations for
the implementation of this section shall, insofar as this
section applies to moneys due from (or payable by)--
``(1) the United States (other than the legislative or
judicial branches of the Federal Government) or the
government of the District of Columbia, be vested in the
President (or the designee of the President);
``(2) the legislative branch of the Federal Government, be
vested jointly in the President pro tempore of the Senate and
the Speaker of the House of Representatives (or their
designees), and
``(3) the judicial branch of the Federal Government, be
vested in the Chief Justice of the United States (or the
designee of the Chief Justice).
``(h) Moneys Subject to Process.--
``(1) In general.--Subject to paragraph (2), moneys paid or
payable to an individual which are considered to be based
upon remuneration for employment, for purposes of this
section--
``(A) consist of--
``(i) compensation paid or payable for personal services of
the individual, whether the compensation is denominated as
wages, salary, commission, bonus, pay, allowances, or
otherwise (including severance pay, sick pay, and incentive
pay);
``(ii) periodic benefits (including a periodic benefit as
defined in section 228(h)(3)) or other payments--
``(I) under the insurance system established by title II;
``(II) under any other system or fund established by the
United States which provides for the payment of pensions,
retirement or retired pay, annuities, dependents' or
survivors' benefits, or similar amounts payable on account of
personal services performed by the individual or any other
individual;
``(III) as compensation for death under any Federal
program;
``(IV) under any Federal program established to provide
`black lung' benefits; or
``(V) by the Secretary of Veterans Affairs as compensation
for a service-connected disability paid by the Secretary to a
former member of the Armed Forces who is in receipt of
retired or retainer pay if the former member has waived a
portion of the retired or retainer pay in order to receive
such compensation; and
[[Page H7881]]
``(iii) worker's compensation benefits paid under Federal
or State law but
``(B) do not include any payment--
``(i) by way of reimbursement or otherwise, to defray
expenses incurred by the individual in carrying out duties
associated with the employment of the individual; or
``(ii) as allowances for members of the uniformed services
payable pursuant to chapter 7 of title 37, United States
Code, as prescribed by the Secretaries concerned (defined by
section 101(5) of such title) as necessary for the efficient
performance of duty.
``(2) Certain amounts excluded.--In determining the amount
of any moneys due from, or payable by, the United States to
any individual, there shall be excluded amounts which--
``(A) are owed by the individual to the United States;
``(B) are required by law to be, and are, deducted from the
remuneration or other payment involved, including Federal
employment taxes, and fines and forfeitures ordered by court-
martial;
``(C) are properly withheld for Federal, State, or local
income tax purposes, if the withholding of the amounts is
authorized or required by law and if amounts withheld are not
greater than would be the case if the individual claimed all
dependents to which he was entitled (the withholding of
additional amounts pursuant to section 3402(i) of the
Internal Revenue Code of 1986 may be permitted only when the
individual presents evidence of a tax obligation which
supports the additional withholding);
``(D) are deducted as health insurance premiums;
``(E) are deducted as normal retirement contributions (not
including amounts deducted for supplementary coverage); or
``(F) are deducted as normal life insurance premiums from
salary or other remuneration for employment (not including
amounts deducted for supplementary coverage).
``(i) Definitions.--For purposes of this section--
``(1) United states.--The term `United States' includes any
department, agency, or instrumentality of the legislative,
judicial, or executive branch of the Federal Government, the
United States Postal Service, the Postal Rate Commission, any
Federal corporation created by an Act of Congress that is
wholly owned by the Federal Government, and the governments
of the territories and possessions of the United States.
``(2) Child support.--The term `child support', when used
in reference to the legal obligations of an individual to
provide such support, means amounts required to be paid under
a judgment, decree, or order, whether temporary, final, or
subject to modification, issued by a court or an
administrative agency of competent jurisdiction, for the
support and maintenance of a child, including a child who has
attained the age of majority under the law of the issuing
State, or a child and the parent with whom the child is
living, which provides for monetary support, health care,
arrearages or reimbursement, and which may include other
related costs and fees, interest and penalties, income
withholding, attorney's fees, and other relief.
``(3) Alimony.--
``(A) In general.--The term `alimony', when used in
reference to the legal obligations of an individual to
provide the same, means periodic payments of funds for the
support and maintenance of the spouse (or former spouse) of
the individual, and (subject to and in accordance with State
law) includes separate maintenance, alimony pendente lite,
maintenance, and spousal support, and includes attorney's
fees, interest, and court costs when and to the extent that
the same are expressly made recoverable as such pursuant to a
decree, order, or judgment issued in accordance with
applicable State law by a court of competent jurisdiction.
``(B) Exceptions.--Such term does not include--
``(i) any child support; or
``(ii) any payment or transfer of property or its value by
an individual to the spouse or a former spouse of the
individual in compliance with any community property
settlement, equitable distribution of property, or other
division of property between spouses or former spouses.
``(4) Private person.--The term `private person' means a
person who does not have sovereign or other special immunity
or privilege which causes the person not to be subject to
legal process.
``(5) Legal process.--The term `legal process' means any
writ, order, summons, or other similar process in the nature
of garnishment--
``(A) which is issued by--
``(i) a court or an administrative agency of competent
jurisdiction in any State, territory, or possession of the
United States;
``(ii) a court or an administrative agency of competent
jurisdiction in any foreign country with which the United
States has entered into an agreement which requires the
United States to honor the process; or
``(iii) an authorized official pursuant to an order of such
a court or an administrative agency of competent jurisdiction
or pursuant to State or local law; and
``(B) which is directed to, and the purpose of which is to
compel, a governmental entity which holds moneys which are
otherwise payable to an individual to make a payment from the
moneys to another party in order to satisfy a legal
obligation of the individual to provide child support or make
alimony payments.''.
(b) Conforming Amendments.--
(1) To part d of title iv.--Sections 461 and 462 (42 U.S.C.
661 and 662) are repealed.
(2) To title 5, united states code.--Section 5520a of title
5, United States Code, is amended, in subsections (h)(2) and
(i), by striking ``sections 459, 461, and 462 of the Social
Security Act (42 U.S.C. 659, 661, and 662)'' and inserting
``section 459 of the Social Security Act (42 U.S.C. 659)''.
(c) Military Retired and Retainer Pay.--
(1) Definition of court.--Section 1408(a)(1) of title 10,
United States Code, is amended--
(A) by striking ``and'' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C)
and inserting ``; and''; and
(C) by adding after subparagraph (C) the following new
subparagraph:
``(D) any administrative or judicial tribunal of a State
competent to enter orders for support or maintenance
(including a State agency administering a program under a
State plan approved under part D of title IV of the Social
Security Act), and, for purposes of this subparagraph, the
term `State' includes the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and
American Samoa.''.
(2) Definition of court order.--Section 1408(a)(2) of such
title is amended--
(A) by inserting ``or a support order, as defined in
section 453(p) of the Social Security Act (42 U.S.C.
653(p)),'' before ``which--'';
(B) in subparagraph (B)(i), by striking ``(as defined in
section 462(b) of the Social Security Act (42 U.S.C.
662(b)))'' and inserting ``(as defined in section 459(i)(2)
of the Social Security Act (42 U.S.C. 659(i)(2)))''; and
(C) in subparagraph (B)(ii), by striking ``(as defined in
section 462(c) of the Social Security Act (42 U.S.C.
662(c)))'' and inserting ``(as defined in section 459(i)(3)
of the Social Security Act (42 U.S.C. 659(i)(3)))''.
(3) Public payee.--Section 1408(d) of such title is
amended--
(A) in the heading, by inserting ``(or for Benefit of)''
before ``Spouse or''; and
(B) in paragraph (1), in the 1st sentence, by inserting
``(or for the benefit of such spouse or former spouse to a
State disbursement unit established pursuant to section 454B
of the Social Security Act or other public payee designated
by a State, in accordance with part D of title IV of the
Social Security Act, as directed by court order, or as
otherwise directed in accordance with such part D)'' before
``in an amount sufficient''.
(4) Relationship to part d of title iv.--Section 1408 of
such title is amended by adding at the end the following new
subsection:
``(j) Relationship to Other Laws.--In any case involving an
order providing for payment of child support (as defined in
section 459(i)(2) of the Social Security Act) by a member who
has never been married to the other parent of the child, the
provisions of this section shall not apply, and the case
shall be subject to the provisions of section 459 of such
Act.''.
(d) Effective Date.--The amendments made by this section
shall become effective 6 months after the date of the
enactment of this Act.
SEC. 4363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF
MEMBERS OF THE ARMED FORCES.
(a) Availability of Locator Information.--
(1) Maintenance of address information.--The Secretary of
Defense shall establish a centralized personnel locator
service that includes the address of each member of the Armed
Forces under the jurisdiction of the Secretary. Upon request
of the Secretary of Transportation, addresses for members of
the Coast Guard shall be included in the centralized
personnel locator service.
(2) Type of address.--
(A) Residential address.--Except as provided in
subparagraph (B), the address for a member of the Armed
Forces shown in the locator service shall be the residential
address of that member.
(B) Duty address.--The address for a member of the Armed
Forces shown in the locator service shall be the duty address
of that member in the case of a member--
(i) who is permanently assigned overseas, to a vessel, or
to a routinely deployable unit; or
(ii) with respect to whom the Secretary concerned makes a
determination that the member's residential address should
not be disclosed due to national security or safety concerns.
(3) Updating of locator information.--Within 30 days after
a member listed in the locator service establishes a new
residential address (or a new duty address, in the case of a
member covered by paragraph (2)(B)), the Secretary concerned
shall update the locator service to indicate the new address
of the member.
(4) Availability of information.--The Secretary of Defense
shall make information regarding the address of a member of
the Armed Forces listed in the locator service available, on
request, to the Federal Parent Locator Service established
under section 453 of the Social Security Act.
(b) Facilitating Granting of Leave for Attendance at
Hearings.--
(1) Regulations.--The Secretary of each military
department, and the Secretary of Transportation with respect
to the Coast Guard when it is not operating as a service in
the Navy, shall prescribe regulations to facilitate the
granting of leave to a member of the Armed Forces under the
jurisdiction of that Secretary in a case in which--
[[Page H7882]]
(A) the leave is needed for the member to attend a hearing
described in paragraph (2);
(B) the member is not serving in or with a unit deployed in
a contingency operation (as defined in section 101 of title
10, United States Code); and
(C) the exigencies of military service (as determined by
the Secretary concerned) do not otherwise require that such
leave not be granted.
(2) Covered hearings.--Paragraph (1) applies to a hearing
that is conducted by a court or pursuant to an administrative
process established under State law, in connection with a
civil action--
(A) to determine whether a member of the Armed Forces is a
natural parent of a child; or
(B) to determine an obligation of a member of the Armed
Forces to provide child support.
(3) Definitions.--For purposes of this subsection--
(A) The term ``court'' has the meaning given that term in
section 1408(a) of title 10, United States Code.
(B) The term ``child support'' has the meaning given such
term in section 459(i) of the Social Security Act (42 U.S.C.
659(i)).
(c) Payment of Military Retired Pay in Compliance With
Child Support Orders.--
(1) Date of certification of court order.--Section 1408 of
title 10, United States Code, as amended by section
4362(c)(4) of this Act, is amended--
(A) by redesignating subsections (i) and (j) as subsections
(j) and (k), respectively; and
(B) by inserting after subsection (h) the following new
subsection:
``(i) Certification Date.--It is not necessary that the
date of a certification of the authenticity or completeness
of a copy of a court order for child support received by the
Secretary concerned for the purposes of this section be
recent in relation to the date of receipt by the
Secretary.''.
(2) Payments consistent with assignments of rights to
states.--Section 1408(d)(1) of such title is amended by
inserting after the 1st sentence the following new sentence:
``In the case of a spouse or former spouse who, pursuant to
section 408(a)(4) of the Social Security Act (42 U.S.C.
608(a)(4)), assigns to a State the rights of the spouse or
former spouse to receive support, the Secretary concerned may
make the child support payments referred to in the preceding
sentence to that State in amounts consistent with that
assignment of rights.''.
(3) Arrearages owed by members of the uniformed services.--
Section 1408(d) of such title is amended by adding at the end
the following new paragraph:
``(6) In the case of a court order for which effective
service is made on the Secretary concerned on or after the
date of the enactment of this paragraph and which provides
for payments from the disposable retired pay of a member to
satisfy the amount of child support set forth in the order,
the authority provided in paragraph (1) to make payments from
the disposable retired pay of a member to satisfy the amount
of child support set forth in a court order shall apply to
payment of any amount of child support arrearages set forth
in that order as well as to amounts of child support that
currently become due.''.
(4) Payroll deductions.--The Secretary of Defense shall
begin payroll deductions within 30 days after receiving
notice of withholding, or for the 1st pay period that begins
after such 30-day period.
SEC. 4364. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section 4321 of
this Act, is amended by adding at the end the following new
subsection:
``(g) Laws Voiding Fraudulent Transfers.--In order to
satisfy section 454(20)(A), each State must have in effect--
``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
``(B) the Uniform Fraudulent Transfer Act of 1984; or
``(C) another law, specifying indicia of fraud which create
a prima facie case that a debtor transferred income or
property to avoid payment to a child support creditor, which
the Secretary finds affords comparable rights to child
support creditors; and
``(2) procedures under which, in any case in which the
State knows of a transfer by a child support debtor with
respect to which such a prima facie case is established, the
State must--
``(A) seek to void such transfer; or
``(B) obtain a settlement in the best interests of the
child support creditor.''.
SEC. 4365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD
SUPPORT.
(a) In General.--Section 466(a) (42 U.S.C. 666(a)), as
amended by sections 4315, 4317(a), and 4323 of this Act, is
amended by inserting after paragraph (14) the following new
paragraph:
``(15) Procedures to ensure that persons owing past-due
support work or have a plan for payment of such support.--
``(A) In general.--Procedures under which the State has the
authority, in any case in which an individual owes past-due
support with respect to a child receiving assistance under a
State program funded under part A, to issue an order or to
request that a court or an administrative process established
pursuant to State law issue an order that requires the
individual to--
``(i) pay such support in accordance with a plan approved
by the court, or, at the option of the State, a plan approved
by the State agency administering the State program under
this part; or
``(ii) if the individual is subject to such a plan and is
not incapacitated, participate in such work activities (as
defined in section 407(d)) as the court, or, at the option of
the State, the State agency administering the State program
under this part, deems appropriate.
``(B) Past-due support defined.--For purposes of
subparagraph (A), the term `past-due support' means the
amount of a delinquency, determined under a court order, or
an order of an administrative process established under State
law, for support and maintenance of a child, or of a child
and the parent with whom the child is living.''.
(b) Conforming amendment.--The flush paragraph at the end
of section 466(a) (42 U.S.C.666(a)) is amended by striking
``and (7)'' and inserting ``(7), and (15)''.
SEC. 4366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections 4316 and
4345(b) of this Act, is amended by adding at the end the
following new subsection:
``(p) Support Order Defined.--As used in this part, the
term `support order' means a judgment, decree, or order,
whether temporary, final, or subject to modification, issued
by a court or an administrative agency of competent
jurisdiction, for the support and maintenance of a child,
including a child who has attained the age of majority under
the law of the issuing State, or a child and the parent with
whom the child is living, which provides for monetary
support, health care, arrearages, or reimbursement, and which
may include related costs and fees, interest and penalties,
income withholding, attorneys' fees, and other relief.''.
SEC. 4367. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read
as follows:
``(7) Reporting arrearages to credit bureaus.--
``(A) In general.--Procedures (subject to safeguards
pursuant to subparagraph (B)) requiring the State to report
periodically to consumer reporting agencies (as defined in
section 603(f) of the Fair Credit Reporting Act (15 U.S.C.
1681a(f)) the name of any noncustodial parent who is
delinquent in the payment of support, and the amount of
overdue support owed by such parent.
``(B) Safeguards.--Procedures ensuring that, in carrying
out subparagraph (A), information with respect to a
noncustodial parent is reported--
``(i) only after such parent has been afforded all due
process required under State law, including notice and a
reasonable opportunity to contest the accuracy of such
information; and
``(ii) only to an entity that has furnished evidence
satisfactory to the State that the entity is a consumer
reporting agency (as so defined).''.
SEC. 4368. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read
as follows:
``(4) Liens.--Procedures under which--
``(A) liens arise by operation of law against real and
personal property for amounts of overdue support owed by a
noncustodial parent who resides or owns property in the
State; and
``(B) the State accords full faith and credit to liens
described in subparagraph (A) arising in another State, when
the State agency, party, or other entity seeking to enforce
such a lien complies with the procedural rules relating to
recording or serving liens that arise within the State,
except that such rules may not require judicial notice or
hearing prior to the enforcement of such a lien.''.
SEC. 4369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
4315, 4317(a), 4323, and 4365 of this Act, is amended by
inserting after paragraph (15) the following:
``(16) Authority to withhold or suspend licenses.--
Procedures under which the State has (and uses in appropriate
cases) authority to withhold or suspend, or to restrict the
use of driver's licenses, professional and occupational
licenses, and recreational licenses of individuals owing
overdue support or failing, after receiving appropriate
notice, to comply with subpoenas or warrants relating to
paternity or child support proceedings.''.
SEC. 4370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD
SUPPORT.
(a) HHS Certification Procedure.--
(1) Secretarial responsibility.--Section 452 (42 U.S.C.
652), as amended by section 4345 of this Act, is amended by
adding at the end the following new subsection:
``(k)(1) If the Secretary receives a certification by a
State agency in accordance with the requirements of section
454(31) that an individual owes arrearages of child support
in an amount exceeding $5,000, the Secretary shall transmit
such certification to the Secretary of State for action (with
respect to denial, revocation, or limitation of passports)
pursuant to paragraph (2).
``(2) The Secretary of State shall, upon certification by
the Secretary transmitted under paragraph (1), refuse to
issue a passport to such individual, and may revoke,
restrict, or limit a passport issued previously to such
individual.
``(3) The Secretary and the Secretary of State shall not be
liable to an individual for any action with respect to a
certification by a State agency under this section.''.
(2) State agency responsibility.--Section 454 (42 U.S.C.
654), as amended by sections 4301(b), 4303(a), 4312(b),
4313(a), 4333, 4343(b), and 4347 of this Act, is amended--
[[Page H7883]]
(A) by striking ``and'' at the end of paragraph (30);
(B) by striking the period at the end of paragraph (31) and
inserting ``; and''; and
(C) by adding after paragraph (31) the following new
paragraph:
``(32) provide that the State agency will have in effect a
procedure for certifying to the Secretary, for purposes of
the procedure under section 452(k), determinations that
individuals owe arrearages of child support in an amount
exceeding $5,000, under which procedure--
``(A) each individual concerned is afforded notice of such
determination and the consequences thereof, and an
opportunity to contest the determination; and
``(B) the certification by the State agency is furnished to
the Secretary in such format, and accompanied by such
supporting documentation, as the Secretary may require.''.
(b) Effective Date.--This section and the amendments made
by this section shall become effective October 1, 1997.
SEC. 4371. INTERNATIONAL SUPPORT ENFORCEMENT.
(a) Authority for International Agreements.--Part D of
title IV, as amended by section 4362(a) of this Act, is
amended by adding after section 459 the following new
section:
``SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.
``(a) Authority for Declarations.--
``(1) Declaration.--The Secretary of State, with the
concurrence of the Secretary of Health and Human Services, is
authorized to declare any foreign country (or a political
subdivision thereof) to be a foreign reciprocating country if
the foreign country has established, or undertakes to
establish, procedures for the establishment and enforcement
of duties of support owed to obligees who are residents of
the United States, and such procedures are substantially in
conformity with the standards prescribed under subsection
(b).
``(2) Revocation.--A declaration with respect to a foreign
country made pursuant to paragraph (1) may be revoked if the
Secretaries of State and Health and Human Services determine
that--
``(A) the procedures established by the foreign country
regarding the establishment and enforcement of duties of
support have been so changed, or the foreign country's
implementation of such procedures is so unsatisfactory, that
such procedures do not meet the criteria for such a
declaration; or
``(B) continued operation of the declaration is not
consistent with the purposes of this part.
``(3) Form of declaration.--A declaration under paragraph
(1) may be made in the form of an international agreement, in
connection with an international agreement or corresponding
foreign declaration, or on a unilateral basis.
``(b) Standards for Foreign Support Enforcement
Procedures.--
``(1) Mandatory elements.--Support enforcement procedures
of a foreign country which may be the subject of a
declaration pursuant to subsection (a)(1) shall include the
following elements:
``(A) The foreign country (or political subdivision
thereof) has in effect procedures, available to residents of
the United States--
``(i) for establishment of paternity, and for establishment
of orders of support for children and custodial parents; and
``(ii) for enforcement of orders to provide support to
children and custodial parents, including procedures for
collection and appropriate distribution of support payments
under such orders.
``(B) The procedures described in subparagraph (A),
including legal and administrative assistance, are provided
to residents of the United States at no cost.
``(C) An agency of the foreign country is designated as a
Central Authority responsible for--
``(i) facilitating support enforcement in cases involving
residents of the foreign country and residents of the United
States; and
``(ii) ensuring compliance with the standards established
pursuant to this subsection.
``(2) Additional elements.--The Secretary of Health and
Human Services and the Secretary of State, in consultation
with the States, may establish such additional standards as
may be considered necessary to further the purposes of this
section.
``(c) Designation of United States Central Authority.--It
shall be the responsibility of the Secretary of Health and
Human Services to facilitate support enforcement in cases
involving residents of the United States and residents of
foreign countries that are the subject of a declaration under
this section, by activities including--
``(1) development of uniform forms and procedures for use
in such cases;
``(2) notification of foreign reciprocating countries of
the State of residence of individuals sought for support
enforcement purposes, on the basis of information provided by
the Federal Parent Locator Service; and
``(3) such other oversight, assistance, and coordination
activities as the Secretary may find necessary and
appropriate.
``(d) Effect on Other Laws.--States may enter into
reciprocal arrangements for the establishment and enforcement
of support obligations with foreign countries that are not
the subject of a declaration pursuant to subsection (a), to
the extent consistent with Federal law.''.
(b) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections 4301(b), 4303(a), 4312(b), 4313(a),
4333, 4343(b), 4347, and 4370(a)(2) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (31);
(2) by striking the period at the end of paragraph (32) and
inserting ``; and''; and
(3) by adding after paragraph (32) the following new
paragraph:
``(33)(A) provide that any request for services under this
part by a foreign reciprocating country or a foreign country
with which the State has an arrangement described in section
459A(d)(2) shall be treated as a request by a State;
``(B) provide, at State option, notwithstanding paragraph
(4) or any other provision of this part, for services under
the plan for enforcement of a spousal support order not
described in paragraph (4)(B) entered by such a country (or
subdivision); and
``(C) provide that no applications will be required from,
and no costs will be assessed for such services against, the
foreign reciprocating country or foreign obligee (but costs
may at State option be assessed against the obligor).''.
SEC. 4372. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
4315, 4317(a), 4323, 4365, and 4369 of this Act, is amended
by inserting after paragraph (16) the following new
paragraph:
``(17) Financial institution data matches.--
``(A) In general.--Procedures under which the State agency
shall enter into agreements with financial institutions doing
business in the State--
``(i) to develop and operate, in coordination with such
financial institutions, a data match system, using automated
data exchanges to the maximum extent feasible, in which each
such financial institution is required to provide for each
calendar quarter the name, record address, social security
number or other taxpayer identification number, and other
identifying information for each noncustodial parent who
maintains an account at such institution and who owes past-
due support, as identified by the State by name and social
security number or other taxpayer identification number; and
``(ii) in response to a notice of lien or levy, encumber or
surrender, as the case may be, assets held by such
institution on behalf of any noncustodial parent who is
subject to a child support lien pursuant to paragraph (4).
``(B) Reasonable fees.--The State agency may pay a
reasonable fee to a financial institution for conducting the
data match provided for in subparagraph (A)(i), not to exceed
the actual costs incurred by such financial institution.
``(C) Liability.--A financial institution shall not be
liable under any Federal or State law to any person--
``(i) for any disclosure of information to the State agency
under subparagraph (A)(i);
``(ii) for encumbering or surrendering any assets held by
such financial institution in response to a notice of lien or
levy issued by the State agency as provided for in
subparagraph (A)(ii); or
``(iii) for any other action taken in good faith to comply
with the requirements of subparagraph (A).
``(D) Definitions.--For purposes of this paragraph--
``(i) Financial institution.--The term `financial
institution' has the meaning given to such term by section
469A(d)(1).
``(ii) Account.--The term `account' means a demand deposit
account, checking or negotiable withdrawal order account,
savings account, time deposit account, or money-market mutual
fund account.''.
SEC. 4373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL
GRANDPARENTS IN CASES OF MINOR PARENTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
4315, 4317(a), 4323, 4365, 4369, and 4372 of this Act, is
amended by inserting after paragraph (17) the following new
paragraph:
``(18) Enforcement of orders against paternal or maternal
grandparents.--Procedures under which, at the State's option,
any child support order enforced under this part with respect
to a child of minor parents, if the custodial parent of such
child is receiving assistance under the State program under
part A, shall be enforceable, jointly and severally, against
the parents of the noncustodial parent of such child.''.
SEC. 4374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS
FOR THE SUPPORT OF A CHILD.
(a) Amendment to Title 11 of the United States Code.--
Section 523(a) of title 11, United States Code, is amended--
(1) by striking ``or'' at the end of paragraph (16);
(2) by striking the period at the end of paragraph (17) and
inserting ``; or'';
(3) by adding at the end the following:
``(18) owed under State law to a State or municipality that
is--
``(A) in the nature of support, and
``(B) enforceable under part D of title IV of the Social
Security Act (42 U.S.C. 601 et seq.).''; and
(4) in paragraph (5), by striking ``section 402(a)(26)''
and inserting ``section 408(a)(4)''.
(b) Amendment to the Social Security Act.--Section 456(b)
(42 U.S.C. 656(b)) is amended to read as follows:
``(b) Nondischargeability.--A debt (as defined in section
101 of title 11 of the United States Code) owed under State
law to a State (as defined in such section) or municipality
(as defined in such section) that is in the nature of support
and that is enforceable under
[[Page H7884]]
this part is not released by a discharge in bankruptcy under
title 11 of the United States Code.''.
(c) Application of Amendments.--The amendments made by this
section shall apply only with respect to cases commenced
under title 11 of the United States Code after the date of
the enactment of this Act.
CHAPTER 8--MEDICAL SUPPORT
SEC. 4376. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD
SUPPORT ORDER.
(a) In General.--Section 609(a)(2)(B) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1169(a)(2)(B)) is amended--
(1) by striking ``issued by a court of competent
jurisdiction'';
(2) by striking the period at the end of clause (ii) and
inserting a comma; and
(3) by adding, after and below clause (ii), the following:
``if such judgment, decree, or order (I) is issued by a court
of competent jurisdiction or (II) is issued through an
administrative process established under State law and has
the force and effect of law under applicable State law.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on the date of the enactment of this Act.
(2) Plan amendments not required until january 1, 1997.--
Any amendment to a plan required to be made by an amendment
made by this section shall not be required to be made before
the 1st plan year beginning on or after January 1, 1997, if--
(A) during the period after the date before the date of the
enactment of this Act and before such 1st plan year, the plan
is operated in accordance with the requirements of the
amendments made by this section; and
(B) such plan amendment applies retroactively to the period
after the date before the date of the enactment of this Act
and before such 1st plan year.
A plan shall not be treated as failing to be operated in
accordance with the provisions of the plan merely because it
operates in accordance with this paragraph.
SEC. 4377. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
4315, 4317(a), 4323, 4365, 4369, 4372, and 4373 of this Act,
is amended by inserting after paragraph (18) the following
new paragraph:
``(19) Health care coverage.--Procedures under which all
child support orders enforced pursuant to this part shall
include a provision for the health care coverage of the
child, and in the case in which a noncustodial parent
provides such coverage and changes employment, and the new
employer provides health care coverage, the State agency
shall transfer notice of the provision to the employer, which
notice shall operate to enroll the child in the noncustodial
parent's health plan, unless the noncustodial parent contests
the notice.''.
CHAPTER 9--ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-RESIDENTIAL
PARENTS
SEC. 4381. GRANTS TO STATES FOR ACCESS AND VISITATION
PROGRAMS.
Part D of title IV (42 U.S.C. 651-669), as amended by
section 4353 of this Act, is amended by adding at the end the
following new section:
``SEC. 469B. GRANTS TO STATES FOR ACCESS AND VISITATION
PROGRAMS.
``(a) In General.--The Administration for Children and
Families shall make grants under this section to enable
States to establish and administer programs to support and
facilitate noncustodial parents' access to and visitation of
their children, by means of activities including mediation
(both voluntary and mandatory), counseling, education,
development of parenting plans, visitation enforcement
(including monitoring, supervision and neutral drop-off and
pickup), and development of guidelines for visitation and
alternative custody arrangements.
``(b) Amount of Grant.--The amount of the grant to be made
to a State under this section for a fiscal year shall be an
amount equal to the lesser of--
``(1) 90 percent of State expenditures during the fiscal
year for activities described in subsection (a); or
``(2) the allotment of the State under subsection (c) for
the fiscal year.
``(c) Allotments to States.--
``(1) In general.--The allotment of a State for a fiscal
year is the amount that bears the same ratio to $10,000,000
for grants under this section for the fiscal year as the
number of children in the State living with only 1 biological
parent bears to the total number of such children in all
States.
``(2) Minimum allotment.--The Administration for Children
and Families shall adjust allotments to States under
paragraph (1) as necessary to ensure that no State is
allotted less than--
``(A) $50,000 for fiscal year 1997 or 1998; or
``(B) $100,000 for any succeeding fiscal year.
``(d) No Supplantation of State Expenditures for Similar
Activities.--A State to which a grant is made under this
section may not use the grant to supplant expenditures by the
State for activities specified in subsection (a), but shall
use the grant to supplement such expenditures at a level at
least equal to the level of such expenditures for fiscal year
1995.
``(e) State Administration.--Each State to which a grant is
made under this section--
``(1) may administer State programs funded with the grant,
directly or through grants to or contracts with courts, local
public agencies, or nonprofit private entities;
``(2) shall not be required to operate such programs on a
statewide basis; and
``(3) shall monitor, evaluate, and report on such programs
in accordance with regulations prescribed by the
Secretary.''.
CHAPTER 10--EFFECTIVE DATES AND CONFORMING AMENDMENTS
SEC. 4391. EFFECTIVE DATES AND CONFORMING AMENDMENTS.
(a) In General.--Except as otherwise specifically provided
(but subject to subsections (b) and (c))--
(1) the provisions of this subtitle requiring the enactment
or amendment of State laws under section 466 of the Social
Security Act, or revision of State plans under section 454 of
such Act, shall be effective with respect to periods
beginning on and after October 1, 1996; and
(2) all other provisions of this subtitle shall become
effective upon the date of the enactment of this Act.
(b) Grace Period for State Law Changes.--The provisions of
this subtitle shall become effective with respect to a State
on the later of--
(1) the date specified in this subtitle, or
(2) the effective date of laws enacted by the legislature
of such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar
quarter beginning after the close of the 1st regular session
of the State legislature that begins after the date of the
enactment of this Act. For purposes of the previous sentence,
in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate
regular session of the State legislature.
(c) Grace Period for State Constitutional Amendment.--A
State shall not be found out of compliance with any
requirement enacted by this subtitle if the State is unable
to so comply without amending the State constitution until
the earlier of--
(1) 1 year after the effective date of the necessary State
constitutional amendment; or
(2) 5 years after the date of the enactment of this Act.
(d) Conforming Amendments.--
(1) The following provisions are amended by striking
``absent'' each place it appears and inserting
``noncustodial'':
(A) Section 451 (42 U.S.C. 651).
(B) Subsections (a)(1), (a)(8), (a)(10)(E), (a)(10)(F),
(f), and (h) of section 452 (42 U.S.C. 652).
(C) Section 453(f) (42 U.S.C. 653(f)).
(D) Paragraphs (8), (13), and (21)(A) of section 454 (42
U.S.C. 654).
(E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).
(F) Section 458(a) (42 U.S.C. 658(a)).
(G) Subsections (a), (b), and (c) of section 463 (42 U.S.C.
663).
(H) Subsections (a)(3)(A), (a)(3)(C), (a)(6), and
(a)(8)(B)(ii), the last sentence of subsection (a), and
subsections (b)(1), (b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i),
(b)(9), and (e) of section 466 (42 U.S.C. 666).
(2) The following provisions are amended by striking ``an
absent'' each place it appears and inserting ``a
noncustodial'':
(A) Paragraphs (2) and (3) of section 453(c) (42 U.S.C.
653(c)).
(B) Subparagraphs (B) and (C) of section 454(9) (42 U.S.C.
654(9)).
(C) Section 456(a)(3) (42 U.S.C. 656(a)(3)).
(D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i), (b)(3)(A),
and (b)(3)(B) of section 466 (42 U.S.C. 666).
(E) Paragraphs (2) and (4) of section 469(b) (42 U.S.C.
669(b)).
Subtitle D--Restricting Welfare and Public Benefits for Aliens
SEC. 4400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE
AND IMMIGRATION.
The Congress makes the following statements concerning
national policy with respect to welfare and immigration:
(1) Self-sufficiency has been a basic principle of United
States immigration law since this country's earliest
immigration statutes.
(2) It continues to be the immigration policy of the United
States that--
(A) aliens within the Nation's borders not depend on public
resources to meet their needs, but rather rely on their own
capabilities and the resources of their families, their
sponsors, and private organizations, and
(B) the availability of public benefits not constitute an
incentive for immigration to the United States.
(3) Despite the principle of self-sufficiency, aliens have
been applying for and receiving public benefits from Federal,
State, and local governments at increasing rates.
(4) Current eligibility rules for public assistance and
unenforceable financial support agreements have proved wholly
incapable of assuring that individual aliens not burden the
public benefits system.
(5) It is a compelling government interest to enact new
rules for eligibility and sponsorship agreements in order to
assure that aliens be self-reliant in accordance with
national immigration policy.
(6) It is a compelling government interest to remove the
incentive for illegal immigration provided by the
availability of public benefits.
(7) With respect to the State authority to make
determinations concerning the eligibility of qualified aliens
for public benefits in this subtitle, a State that chooses to
follow the Federal classification in determining the
eligibility of such aliens for public assistance shall be
considered to have chosen
[[Page H7885]]
the least restrictive means available for achieving the
compelling governmental interest of assuring that aliens be
self-reliant in accordance with national immigration policy.
CHAPTER 1--ELIGIBILITY FOR FEDERAL BENEFITS
SEC. 4401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR
FEDERAL PUBLIC BENEFITS.
(a) In General.--Notwithstanding any other provision of law
and except as provided in subsection (b), an alien who is not
a qualified alien (as defined in section 4431) is not
eligible for any Federal public benefit (as defined in
subsection (c)).
(b) Exceptions.--
(1) Subsection (a) shall not apply with respect to the
following Federal public benefits:
(A) Emergency medical services under title XIX of the
Social Security Act.
(B) Short-term, non-cash, in-kind emergency disaster
relief.
(C) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such
symptoms are caused by a communicable disease.
(D) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General, in the Attorney
General's sole and unreviewable discretion after consultation
with appropriate Federal agencies and departments, which (i)
deliver in-kind services at the community level, including
through public or private nonprofit agencies; (ii) do not
condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided on
the individual recipient's income or resources; and (iii) are
necessary for the protection of life or safety.
(E) Programs for housing or community development
assistance or financial assistance administered by the
Secretary of Housing and Urban Development, any program under
title V of the Housing Act of 1949, or any assistance under
section 306C of the Consolidated Farm and Rural Development
Act, to the extent that the alien is receiving such a benefit
on the date of the enactment of this Act.
(2) Subsection (a) shall not apply to any benefit payable
under title II of the Social Security Act to an alien who is
lawfully present in the United States as determined by the
Attorney General, to any benefit if nonpayment of such
benefit would contravene an international agreement described
in section 233 of the Social Security Act, to any benefit if
nonpayment would be contrary to section 202(t) of the Social
Security Act, or to any benefit payable under title II of the
Social Security Act to which entitlement is based on an
application filed in or before the month in which this Act
becomes law.
(c) Federal Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this subtitle the term ``Federal public benefit'' means--
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of the United States
or by appropriated funds of the United States; and
(B) any retirement, welfare, health, disability, public or
assisted housing, postsecondary education, food assistance,
unemployment benefit, or any other similar benefit for which
payments or assistance are provided to an individual,
household, or family eligibility unit by an agency of the
United States or by appropriated funds of the United States.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related to
such employment in the United States; or
(B) with respect to benefits for an alien who as a work
authorized nonimmigrant or as an alien lawfully admitted for
permanent residence under the Immigration and Nationality Act
qualified for such benefits and for whom the United States
under reciprocal treaty agreements is required to pay
benefits, as determined by the Attorney General, after
consultation with the Secretary of State.
SEC. 4402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR
CERTAIN FEDERAL PROGRAMS.
(a) Limited Eligibility for Specified Federal Programs.--
(1) In general.--Notwithstanding any other provision of law
and except as provided in paragraph (2), an alien who is a
qualified alien (as defined in section 4431) is not eligible
for any specified Federal program (as defined in paragraph
(3)).
(2) Exceptions.--
(A) Time-limited exception for refugees and asylees.--
Paragraph (1) shall not apply to an alien until 5 years after
the date--
(i) an alien is admitted to the United States as a refugee
under section 207 of the Immigration and Nationality Act;
(ii) an alien is granted asylum under section 208 of such
Act; or
(iii) an alien's deportation is withheld under section
243(h) of such Act.
(B) Certain permanent resident aliens.--Paragraph (1) shall
not apply to an alien who--
(i) is lawfully admitted to the United States for permanent
residence under the Immigration and Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage as
defined under title II of the Social Security Act or can be
credited with such qualifying quarters as provided under
section 435, and (II) did not receive any Federal means-
tested public benefit (as defined in section 4403(c)) during
any such quarter.
(C) Veteran and active duty exception.--Paragraph (1) shall
not apply to an alien who is lawfully residing in any State
and is--
(i) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(ii) on active duty (other than active duty for training)
in the Armed Forces of the United States, or
(iii) the spouse or unmarried dependent child of an
individual described in clause (i) or (ii).
(D) Transition for aliens currently receiving benefits.--
(i) SSI.--
(I) In general.--With respect to the specified Federal
program described in paragraph (3)(A), during the period
beginning on the date of the enactment of this Act and ending
on the date which is 1 year after such date of enactment, the
Commissioner of Social Security shall redetermine the
eligibility of any individual who is receiving benefits under
such program as of the date of the enactment of this Act and
whose eligibility for such benefits may terminate by reason
of the provisions of this subsection.
(II) Redetermination criteria.-- With respect to any
redetermination under subclause (I), the Commissioner of
Social Security shall apply the eligibility criteria for new
applicants for benefits under such program.
(III) Grandfather provision.--The provisions of this
subsection and the redetermination under subclause (I), shall
only apply with respect to the benefits of an individual
described in subclause (I) for months beginning on or after
the date of the redetermination with respect to such
individual.
(IV) Notice.--Not later than January 1, 1997, the
Commissioner of Social Security shall notify an individual
described in subclause (I) of the provisions of this clause.
(ii) Food stamps.--
(I) In general.--With respect to the specified Federal
program described in paragraph (3)(B), during the period
beginning on the date of enactment of this Act and ending on
the date which is 1 year after the date of enactment, the
State agency shall, at the time of the recertification,
recertify the eligibility of any individual who is receiving
benefits under such program as of the date of enactment of
this Act and whose eligibility for such benefits may
terminate by reason of the provisions of this subsection.
(II) Recertification criteria.--With respect to any
recertification under subclause (I), the State agency shall
apply the eligibility criteria for applicants for benefits
under such program.
(III) Grandfather provision.--The provisions of this
subsection and the recertification under subclause (I) shall
only apply with respect to the eligibility of an alien for a
program for months beginning on or after the date of
recertification, if on the date of enactment of this Act the
alien is lawfully residing in any State and is receiving
benefits under such program on such date of enactment.
(iii) Medicaid.--
(I) In general.--With respect to the specified Federal
program described in paragraph (3)(C), during the period
beginning on the date of enactment of this Act and ending on
the date which is 1 year after the date of enactment, the
State agency shall, at the time of the redetermination,
redetermine the eligibility of any individual who is
receiving benefits under such program as of the date of
enactment of this Act and whose eligibility for such benefits
may terminate by reason of the provisions of this subsection.
(II) Redetermination.--With respect to any redetermination
under subclause (I), the State agency shall apply the
eligibility criteria for applicants for benefits under such
program.
(III) Grandfather provision.--The provisions of this
subsection and the redetermination under subclause (I) shall
only apply with respect to the eligibility of an alien for a
program for months beginning on or after the date of
redetermination, if on the date of enactment of this Act the
alien is lawfully residing in any State and is receiving
benefits under such program on such date of enactment.
(3) Specified federal program defined.--For purposes of
this subtitle, the term ``specified Federal program'' means
any of the following:
(A) SSI.--The supplemental security income program under
title XVI of the Social Security Act, including supplementary
payments pursuant to an agreement for Federal administration
under section 1616(a) of the Social Security Act and payments
pursuant to an agreement entered into under section 212(b) of
Public Law 93-66.
(B) Food stamps.--The food stamp program as defined in
section 3(h) of the Food Stamp Act of 1977.
(C) Medicaid.--A State plan approved under title XIX of the
Social Security Act.
(b) Limited Eligibility for Designated Federal Programs.--
(1) In general.--Notwithstanding any other provision of law
and except as provided in section 4403 and paragraph (2), a
State is authorized to determine the eligibility of an alien
who is a qualified alien (as defined in
[[Page H7886]]
section 4431) for any designated Federal program (as defined
in paragraph (3)).
(2) Exceptions.--Qualified aliens under this paragraph
shall be eligible for any designated Federal program.
(A) Time-limited exception for refugees and asylees.--
(i) An alien who is admitted to the United States as a
refugee under section 207 of the Immigration and Nationality
Act until 5 years after the date of an alien's entry into the
United States.
(ii) An alien who is granted asylum under section 208 of
such Act until 5 years after the date of such grant of
asylum.
(iii) An alien whose deportation is being withheld under
section 243(h) of such Act until 5 years after such
withholding.
(B) Certain permanent resident aliens.--An alien who--
(i) is lawfully admitted to the United States for permanent
residence under the Immigration and Nationality Act; and
(ii)(I) has worked 40 qualifying quarters of coverage as
defined under title II of the Social Security Act or can be
credited with such qualifying quarters as provided under
section 4435, and (II) did not receive any Federal means-
tested public benefit (as defined in section 4403(c)) during
any such quarter.
(C) Veteran and active duty exception.--An alien who is
lawfully residing in any State and is--
(i) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(ii) on active duty (other than active duty for training)
in the Armed Forces of the United States, or
(iii) the spouse or unmarried dependent child of an
individual described in clause (i) or (ii).
(D) Transition for those currently receiving benefits.--An
alien who on the date of the enactment of this Act is
lawfully residing in any State and is receiving benefits
under such program on the date of the enactment of this Act
shall continue to be eligible to receive such benefits until
January 1, 1997.
(3) Designated federal program defined.--For purposes of
this subtitle, the term ``designated Federal program'' means
any of the following:
(A) Temporary assistance for needy families.--The program
of block grants to States for temporary assistance for needy
families under part A of title IV of the Social Security Act.
(B) Social services block grant.--The program of block
grants to States for social services under title XX of the
Social Security Act.
SEC. 4403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS
FOR FEDERAL MEANS-TESTED PUBLIC BENEFIT.
(a) In General.--Notwithstanding any other provision of law
and except as provided in subsection (b), an alien who is a
qualified alien (as defined in section 4431) and who enters
the United States on or after the date of the enactment of
this Act is not eligible for any Federal means-tested public
benefit (as defined in subsection (c)) for a period of five
years beginning on the date of the alien's entry into the
United States with a status within the meaning of the term
``qualified alien''.
(b) Exceptions.--The limitation under subsection (a) shall
not apply to the following aliens:
(1) Exception for refugees and asylees.--
(A) An alien who is admitted to the United States as a
refugee under section 207 of the Immigration and Nationality
Act.
(B) An alien who is granted asylum under section 208 of
such Act.
(C) An alien whose deportation is being withheld under
section 243(h) of such Act.
(2) Veteran and active duty exception.--An alien who is
lawfully residing in any State and is--
(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training) in
the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(c) Federal Means-tested Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this subtitle, the term ``Federal means-tested public
benefit'' means a public benefit (including cash, medical,
housing, and food assistance and social services) of the
Federal Government in which the eligibility of an individual,
household, or family eligibility unit for benefits, or the
amount of such benefits, or both are determined on the basis
of income, resources, or financial need of the individual,
household, or unit.
(2) Such term does not include the following:
(A) Emergency medical services under title XIX of the
Social Security Act.
(B) Short-term, non-cash, in-kind emergency disaster
relief.
(C) Assistance or benefits under the National School Lunch
Act.
(D) Assistance or benefits under the Child Nutrition Act of
1966.
(E) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such
symptoms are caused by a communicable disease.
(F) Payments for foster care and adoption assistance under
parts B and E of title IV of the Social Security Act for a
child who would, in the absence of subsection (a), be
eligible to have such payments made on the child's behalf
under such part, but only if the foster or adoptive parent or
parents of such child are not described under subsection (a).
(G) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General, in the Attorney
General's sole and unreviewable discretion after consultation
with appropriate Federal agencies and departments, which (i)
deliver in-kind services at the community level, including
through public or private nonprofit agencies; (ii) do not
condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided on
the individual recipient's income or resources; and (iii) are
necessary for the protection of life or safety.
(H) Programs of student assistance under titles IV, V, IX,
and X of the Higher Education Act of 1965.
(I) Means-tested programs under the Elementary and
Secondary Education Act of 1965.
(J) Benefits under the Head Start Act.
(K) Benefits under the Job Training Partnership Act.
SEC. 4404. NOTIFICATION AND INFORMATION REPORTING.
(a) Notification.--Each Federal agency that administers a
program to which section 4401, 4402, or 4403 applies shall,
directly or through the States, post information and provide
general notification to the public and to program recipients
of the changes regarding eligibility for any such program
pursuant to this chapter.
(b) Information Reporting Under Title IV of the Social
Security Act.--Part A of title IV of the Social Security Act,
as amended by section 4103(a) of this Act, is amended by
inserting the following new section after section 411:
``SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.
``Each State to which a grant is made under section 403
shall, at least 4 times annually and upon request of the
Immigration and Naturalization Service, furnish the
Immigration and Naturalization Service with the name and
address of, and other identifying information on, any
individual who the State knows is unlawfully in the United
States.''.
(c) SSI.--Section 1631(e) of such Act (42 U.S.C. 1383(e))
is amended--
(1) by redesignating the paragraphs (6) and (7) inserted by
sections 206(d)(2) and 206(f)(1) of the Social Security
Independence and Programs Improvement Act of 1994 (Public Law
103-296; 108 Stat. 1514, 1515) as paragraphs (7) and (8),
respectively; and
(2) by adding at the end the following new paragraph:
``(9) Notwithstanding any other provision of law, the
Commissioner shall, at least 4 times annually and upon
request of the Immigration and Naturalization Service
(hereafter in this paragraph referred to as the `Service'),
furnish the Service with the name and address of, and other
identifying information on, any individual who the
Commissioner knows is unlawfully in the United States, and
shall ensure that each agreement entered into under section
1616(a) with a State provides that the State shall furnish
such information at such times with respect to any individual
who the State knows is unlawfully in the United States.''.
(d) Information Reporting for Housing Programs.--Title I of
the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following new
section:
``SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND
OTHER AGENCIES.
``Notwithstanding any other provision of law, the Secretary
shall, at least 4 times annually and upon request of the
Immigration and Naturalization Service (hereafter in this
section referred to as the `Service'), furnish the Service
with the name and address of, and other identifying
information on, any individual who the Secretary knows is
unlawfully in the United States, and shall ensure that each
contract for assistance entered into under section 6 or 8 of
this Act with a public housing agency provides that the
public housing agency shall furnish such information at such
times with respect to any individual who the public housing
agency knows is unlawfully in the United States.''.
CHAPTER 2--ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS PROGRAMS
SEC. 4411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR
NONIMMIGRANTS INELIGIBLE FOR STATE AND LOCAL
PUBLIC BENEFITS.
(a) In General.--Notwithstanding any other provision of law
and except as provided in subsections (b) and (d), an alien
who is not--
(1) a qualified alien (as defined in section 4431),
(2) a nonimmigrant under the Immigration and Nationality
Act, or
(3) an alien who is paroled into the United States under
section 212(d)(5) of such Act for less than one year,
is not eligible for any State or local public benefit (as
defined in subsection (c)).
(b) Exceptions.--Subsection (a) shall not apply with
respect to the following State or local public benefits:
(1) Emergency medical services under title XIX of the
Social Security Act.
[[Page H7887]]
(2) Short-term, non-cash, in-kind emergency disaster
relief.
(3) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such
symptoms are caused by a communicable disease.
(4) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General, in the Attorney
General's sole and unreviewable discretion after consultation
with appropriate Federal agencies and departments, which (A)
deliver in-kind services at the community level, including
through public or private nonprofit agencies; (B) do not
condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided on
the individual recipient's income or resources; and (C) are
necessary for the protection of life or safety.
(c) State or Local Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this chapter the term ``State or local public benefit''
means--
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of a State or local
government or by appropriated funds of a State or local
government; and
(B) any retirement, welfare, health, disability, public or
assisted housing, postsecondary education, food assistance,
unemployment benefit, or any other similar benefit for which
payments or assistance are provided to an individual,
household, or family eligibility unit by an agency of a State
or local government or by appropriated funds of a State or
local government.
(2) Such term shall not apply--
(A) to any contract, professional license, or commercial
license for a nonimmigrant whose visa for entry is related to
such employment in the United States; or
(B) with respect to benefits for an alien who as a work
authorized nonimmigrant or as an alien lawfully admitted for
permanent residence under the Immigration and Nationality Act
qualified for such benefits and for whom the United States
under reciprocal treaty agreements is required to pay
benefits, as determined by the Secretary of State, after
consultation with the Attorney General.
(d) State Authority to Provide for Eligibility of Illegal
Aliens for State and Local Public Benefits.--A State may
provide that an alien who is not lawfully present in the
United States is eligible for any State or local public
benefit for which such alien would otherwise be ineligible
under subsection (a) only through the enactment of a State
law after the date of the enactment of this Act which
affirmatively provides for such eligibility.
SEC. 4412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED
ALIENS FOR STATE PUBLIC BENEFITS.
(a) In General.--Notwithstanding any other provision of law
and except as provided in subsection (b), a State is
authorized to determine the eligibility for any State public
benefits (as defined in subsection (c) of an alien who is a
qualified alien (as defined in section 4431), a nonimmigrant
under the Immigration and Nationality Act, or an alien who is
paroled into the United States under section 212(d)(5) of
such Act for less than one year.
(b) Exceptions.--Qualified aliens under this subsection
shall be eligible for any State public benefits.
(1) Time-limited exception for refugees and asylees.--
(A) An alien who is admitted to the United States as a
refugee under section 207 of the Immigration and Nationality
Act until 5 years after the date of an alien's entry into the
United States.
(B) An alien who is granted asylum under section 208 of
such Act until 5 years after the date of such grant of
asylum.
(C) An alien whose deportation is being withheld under
section 243(h) of such Act until 5 years after such
withholding.
(2) Certain permanent resident aliens.--An alien who--
(A) is lawfully admitted to the United States for permanent
residence under the Immigration and Nationality Act; and
(B)(i) has worked 40 qualifying quarters of coverage as
defined under title II of the Social Security Act or can be
credited with such qualifying quarters as provided under
section 4435, and (ii) did not receive any Federal means-
tested public benefit (as defined in section 4403(c)) during
any such quarter.
(3) Veteran and active duty exception.--An alien who is
lawfully residing in any State and is--
(A) a veteran (as defined in section 101 of title 38,
United States Code) with a discharge characterized as an
honorable discharge and not on account of alienage,
(B) on active duty (other than active duty for training) in
the Armed Forces of the United States, or
(C) the spouse or unmarried dependent child of an
individual described in subparagraph (A) or (B).
(4) Transition for those currently receiving benefits.--An
alien who on the date of the enactment of this Act is
lawfully residing in any State and is receiving benefits on
the date of the enactment of this Act shall continue to be
eligible to receive such benefits until January 1, 1997.
(c) State Public Benefits Defined.--The term ``State public
benefits'' means any means-tested public benefit of a State
or political subdivision of a State under which the State or
political subdivision specifies the standards for
eligibility, and does not include any Federal public benefit.
CHAPTER 3--ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
SEC. 4421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND
RESOURCES TO ALIEN.
(a) In General.--Notwithstanding any other provision of
law, in determining the eligibility and the amount of
benefits of an alien for any Federal means-tested public
benefits program (as defined in section 4403(c)), the income
and resources of the alien shall be deemed to include the
following:
(1) The income and resources of any person who executed an
affidavit of support pursuant to section 213A of the
Immigration and Nationality Act (as added by section 4423) on
behalf of such alien.
(2) The income and resources of the spouse (if any) of the
person.
(b) Application.--Subsection (a) shall apply with respect
to an alien until such time as the alien--
(1) achieves United States citizenship through
naturalization pursuant to chapter 2 of title III of the
Immigration and Nationality Act; or
(2)(A) has worked 40 qualifying quarters of coverage as
defined under title II of the Social Security Act or can be
credited with such qualifying quarters as provided under
section 4435, and (B) did not receive any Federal means-
tested public benefit (as defined in section 4403(c)) during
any such quarter.
(c) Review of Income and Resources of Alien Upon
Reapplication.--Whenever an alien is required to reapply for
benefits under any Federal means-tested public benefits
program, the applicable agency shall review the income and
resources attributed to the alien under subsection (a).
(d) Application.--
(1) If on the date of the enactment of this Act, a Federal
means-tested public benefits program attributes a sponsor's
income and resources to an alien in determining the alien's
eligibility and the amount of benefits for an alien, this
section shall apply to any such determination beginning on
the day after the date of the enactment of this Act.
(2) If on the date of the enactment of this Act, a Federal
means-tested public benefits program does not attribute a
sponsor's income and resources to an alien in determining the
alien's eligibility and the amount of benefits for an alien,
this section shall apply to any such determination beginning
180 days after the date of the enactment of this Act.
SEC. 4422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF
SPONSORS INCOME AND RESOURCES TO THE ALIEN WITH
RESPECT TO STATE PROGRAMS.
(a) Optional Application to State Programs.--Except as
provided in subsection (b), in determining the eligibility
and the amount of benefits of an alien for any State public
benefits (as defined in section 4412(c)), the State or
political subdivision that offers the benefits is authorized
to provide that the income and resources of the alien shall
be deemed to include--
(1) the income and resources of any individual who executed
an affidavit of support pursuant to section 213A of the
Immigration and Nationality Act (as added by section 4423) on
behalf of such alien, and
(2) the income and resources of the spouse (if any) of the
individual.
(b) Exceptions.--Subsection (a) shall not apply with
respect to the following State public benefits:
(1) Emergency medical services.
(2) Short-term, non-cash, in-kind emergency disaster
relief.
(3) Programs comparable to assistance or benefits under the
National School Lunch Act.
(4) Programs comparable to assistance or benefits under the
Child Nutrition Act of 1966.
(5) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such
symptoms are caused by a communicable disease.
(6) Payments for foster care and adoption assistance.
(7) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General of a State, after
consultation with appropriate agencies and departments, which
(A) deliver in-kind services at the community level,
including through public or private nonprofit agencies; (B)
do not condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided on
the individual recipient's income or resources; and (C) are
necessary for the protection of life or safety.
SEC. 4423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.
(a) In General.--Title II of the Immigration and
Nationality Act is amended by inserting after section 213 the
following new section:
``requirements for sponsor's affidavit of support
``Sec. 213A. (a) Enforceability.--(1) No affidavit of
support may be accepted by the Attorney General or by any
consular officer to establish that an alien is not excludable
as a public charge under section 212(a)(4) unless such
affidavit is executed as a contract--
[[Page H7888]]
``(A) which is legally enforceable against the sponsor by
the sponsored alien, the Federal Government, and by any State
(or any political subdivision of such State) which provides
any means-tested public benefits program, but not later than
10 years after the alien last receives any such benefit;
``(B) in which the sponsor agrees to financially support
the alien, so that the alien will not become a public charge;
and
``(C) in which the sponsor agrees to submit to the
jurisdiction of any Federal or State court for the purpose of
actions brought under subsection (e)(2).
``(2) A contract under paragraph (1) shall be enforceable
with respect to benefits provided to the alien until such
time as the alien achieves United States citizenship through
naturalization pursuant to chapter 2 of title III.
``(b) Forms.--Not later than 90 days after the date of
enactment of this section, the Attorney General, in
consultation with the Secretary of State and the Secretary of
Health and Human Services, shall formulate an affidavit of
support consistent with the provisions of this section.
``(c) Remedies.--Remedies available to enforce an affidavit
of support under this section include any or all of the
remedies described in section 3201, 3203, 3204, or 3205 of
title 28, United States Code, as well as an order for
specific performance and payment of legal fees and other
costs of collection, and include corresponding remedies
available under State law. A Federal agency may seek to
collect amounts owed under this section in accordance with
the provisions of subchapter II of chapter 37 of title 31,
United States Code.
``(d) Notification of Change of Address.--
``(1) In general.--The sponsor shall notify the Attorney
General and the State in which the sponsored alien is
currently resident within 30 days of any change of address of
the sponsor during the period specified in subsection (a)(2).
``(2) Penalty.--Any person subject to the requirement of
paragraph (1) who fails to satisfy such requirement shall be
subject to a civil penalty of--
``(A) not less than $250 or more than $2,000, or
``(B) if such failure occurs with knowledge that the alien
has received any means-tested public benefit, not less than
$2,000 or more than $5,000.
``(e) Reimbursement of Government Expenses.--(1)(A) Upon
notification that a sponsored alien has received any benefit
under any means-tested public benefits program, the
appropriate Federal, State, or local official shall request
reimbursement by the sponsor in the amount of such
assistance.
``(B) The Attorney General, in consultation with the
Secretary of Health and Human Services, shall prescribe such
regulations as may be necessary to carry out subparagraph
(A).
``(2) If within 45 days after requesting reimbursement, the
appropriate Federal, State, or local agency has not received
a response from the sponsor indicating a willingness to
commence payments, an action may be brought against the
sponsor pursuant to the affidavit of support.
``(3) If the sponsor fails to abide by the repayment terms
established by such agency, the agency may, within 60 days of
such failure, bring an action against the sponsor pursuant to
the affidavit of support.
``(4) No cause of action may be brought under this
subsection later than 10 years after the alien last received
any benefit under any means-tested public benefits program.
``(5) If, pursuant to the terms of this subsection, a
Federal, State, or local agency requests reimbursement from
the sponsor in the amount of assistance provided, or brings
an action against the sponsor pursuant to the affidavit of
support, the appropriate agency may appoint or hire an
individual or other person to act on behalf of such agency
acting under the authority of law for purposes of collecting
any moneys owed. Nothing in this subsection shall preclude
any appropriate Federal, State, or local agency from directly
requesting reimbursement from a sponsor for the amount of
assistance provided, or from bringing an action against a
sponsor pursuant to an affidavit of support.
``(f) Definitions.--For the purposes of this section--
``(1) Sponsor.--The term `sponsor' means an individual
who--
``(A) is a citizen or national of the United States or an
alien who is lawfully admitted to the United States for
permanent residence;
``(B) is 18 years of age or over;
``(C) is domiciled in any of the 50 States or the District
of Columbia; and
``(D) is the person petitioning for the admission of the
alien under section 204.
``(2) Means-tested public benefits program.--The term
`means-tested public benefits program' means a program of
public benefits (including cash, medical, housing, and food
assistance and social services) of the Federal Government or
of a State or political subdivision of a State in which the
eligibility of an individual, household, or family
eligibility unit for benefits under the program, or the
amount of such benefits, or both are determined on the basis
of income, resources, or financial need of the individual,
household, or unit.''.
(b) Clerical Amendment.--The table of contents of such Act
is amended by inserting after the item relating to section
213 the following:
``Sec. 213A. Requirements for sponsor's affidavit of support.''.
(c) Effective Date.--Subsection (a) of section 213A of the
Immigration and Nationality Act, as inserted by subsection
(a) of this section, shall apply to affidavits of support
executed on or after a date specified by the Attorney
General, which date shall be not earlier than 60 days (and
not later than 90 days) after the date the Attorney General
formulates the form for such affidavits under subsection (b)
of such section.
(d) Benefits Not Subject to Reimbursement.--Requirements
for reimbursement by a sponsor for benefits provided to a
sponsored alien pursuant to an affidavit of support under
section 213A of the Immigration and Nationality Act shall not
apply with respect to the following:
(1) Emergency medical services under title XIX of the
Social Security Act.
(2) Short-term, non-cash, in-kind emergency disaster
relief.
(3) Assistance or benefits under the National School Lunch
Act.
(4) Assistance or benefits under the Child Nutrition Act of
1966.
(5) Public health assistance for immunizations with respect
to immunizable diseases and for testing and treatment of
symptoms of communicable diseases whether or not such
symptoms are caused by a communicable disease.
(6) Payments for foster care and adoption assistance under
part B of title IV of the Social Security Act for a child,
but only if the foster or adoptive parent or parents of such
child are not otherwise ineligible pursuant to section 4403
of this Act.
(7) Programs, services, or assistance (such as soup
kitchens, crisis counseling and intervention, and short-term
shelter) specified by the Attorney General, in the Attorney
General's sole and unreviewable discretion after consultation
with appropriate Federal agencies and departments, which (A)
deliver in-kind services at the community level, including
through public or private nonprofit agencies; (B) do not
condition the provision of assistance, the amount of
assistance provided, or the cost of assistance provided on
the individual recipient's income or resources; and (C) are
necessary for the protection of life or safety.
(8) Programs of student assistance under titles IV, V, IX,
and X of the Higher Education Act of 1965.
(9) Benefits under the Head Start Act.
(10) Means-tested programs under the Elementary and
Secondary Education Act of 1965.
(11) Benefits under the Job Training Partnership Act.
CHAPTER 4--GENERAL PROVISIONS
SEC. 4431. DEFINITIONS.
(a) In General.--Except as otherwise provided in this
subtitle, the terms used in this subtitle have the same
meaning given such terms in section 101(a) of the Immigration
and Nationality Act.
(b) Qualified Alien.--For purposes of this subtitle, the
term ``qualified alien'' means an alien who, at the time the
alien applies for, receives, or attempts to receive a Federal
public benefit, is--
(1) an alien who is lawfully admitted for permanent
residence under the Immigration and Nationality Act,
(2) an alien who is granted asylum under section 208 of
such Act,
(3) a refugee who is admitted to the United States under
section 207 of such Act,
(4) an alien who is paroled into the United States under
section 212(d)(5) of such Act for a period of at least 1
year,
(5) an alien whose deportation is being withheld under
section 243(h) of such Act, or
(6) an alien who is granted conditional entry pursuant to
section 203(a)(7) of such Act as in effect prior to April 1,
1980.
SEC. 4432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC
BENEFITS.
(a) In General.--Not later than 18 months after the date of
the enactment of this Act, the Attorney General of the United
States, after consultation with the Secretary of Health and
Human Services, shall promulgate regulations requiring
verification that a person applying for a Federal public
benefit (as defined in section 4401(c)), to which the
limitation under section 4401 applies, is a qualified alien
and is eligible to receive such benefit. Such regulations
shall, to the extent feasible, require that information
requested and exchanged be similar in form and manner to
information requested and exchanged under section 1137 of the
Social Security Act.
(b) State Compliance.--Not later than 24 months after the
date the regulations described in subsection (a) are adopted,
a State that administers a program that provides a Federal
public benefit shall have in effect a verification system
that complies with the regulations.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the purpose of this section.
SEC. 4433. STATUTORY CONSTRUCTION.
(a) Limitation.--
(1) Nothing in this subtitle may be construed as an
entitlement or a determination of an individual's eligibility
or fulfillment of the requisite requirements for any Federal,
State, or local governmental program, assistance, or
benefits. For purposes of this subtitle, eligibility relates
only to the general issue of eligibility or ineligibility on
the basis of alienage.
[[Page H7889]]
(2) Nothing in this subtitle may be construed as addressing
alien eligibility for a basic public education as determined
by the Supreme Court of the United States under Plyler v. Doe
(457 U.S. 202)(1982).
(b) Not Applicable to Foreign Assistance.--This subtitle
does not apply to any Federal, State, or local governmental
program, assistance, or benefits provided to an alien under
any program of foreign assistance as determined by the
Secretary of State in consultation with the Attorney General.
(c) Severability.--If any provision of this subtitle or the
application of such provision to any person or circumstance
is held to be unconstitutional, the remainder of this
subtitle and the application of the provisions of such to any
person or circumstance shall not be affected thereby.
SEC. 4434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT
AGENCIES AND THE IMMIGRATION AND NATURALIZATION
SERVICE.
Notwithstanding any other provision of Federal, State, or
local law, no State or local government entity may be
prohibited, or in any way restricted, from sending to or
receiving from the Immigration and Naturalization Service
information regarding the immigration status, lawful or
unlawful, of an alien in the United States.
SEC. 4435. QUALIFYING QUARTERS.
For purposes of this subtitle, in determining the number of
qualifying quarters of coverage under title II of the Social
Security Act an alien shall be credited with--
(1) all of the qualifying quarters of coverage as defined
under title II of the Social Security Act worked by a parent
of such alien while the alien was under age 18 if the parent
did not receive any Federal means-tested public benefit (as
defined in section 4403(c)) during any such quarter, and
(2) all of the qualifying quarters worked by a spouse of
such alien during their marriage if the spouse did not
receive any Federal means-tested public benefit (as defined
in section 4403(c)) during any such quarter and the alien
remains married to such spouse or such spouse is deceased.
CHAPTER 5--CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING
SEC. 4441. CONFORMING AMENDMENTS RELATING TO ASSISTED
HOUSING.
(a) Limitations on Assistance.--Section 214 of the Housing
and Community Development Act of 1980 (42 U.S.C. 1436a) is
amended--
(1) by striking ``Secretary of Housing and Urban
Development'' each place it appears and inserting
``applicable Secretary'';
(2) in subsection (b), by inserting after ``National
Housing Act,'' the following: ``the direct loan program under
section 502 of the Housing Act of 1949 or section
502(c)(5)(D), 504, 521(a)(2)(A), or 542 of such Act, subtitle
A of title III of the Cranston-Gonzalez National Affordable
Housing Act,'';
(3) in paragraphs (2) through (6) of subsection (d), by
striking ``Secretary'' each place it appears and inserting
``applicable Secretary'';
(4) in subsection (d), in the matter following paragraph
(6), by striking ``the term `Secretary''' and inserting ``the
term `applicable Secretary'''; and
(5) by adding at the end the following new subsection:
``(h) For purposes of this section, the term `applicable
Secretary' means--
``(1) the Secretary of Housing and Urban Development, with
respect to financial assistance administered by such
Secretary and financial assistance under subtitle A of title
III of the Cranston-Gonzalez National Affordable Housing Act;
and
``(2) the Secretary of Agriculture, with respect to
financial assistance administered by such Secretary.''.
(b) Conforming Amendments.--Section 501(h) of the Housing
Act of 1949 (42 U.S.C. 1471(h)) is amended--
(1) by striking ``(1)'';
(2) by striking ``by the Secretary of Housing and Urban
Development''; and
(3) by striking paragraph (2).
CHAPTER 6--EARNED INCOME CREDIT DENIED TO UNAUTHORIZED EMPLOYEES
SEC. 4451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT
AUTHORIZED TO BE EMPLOYED IN THE UNITED STATES.
(a) In General.--Section 32(c)(1) of the Internal Revenue
Code of 1986 (relating to individuals eligible to claim the
earned income credit) is amended by adding at the end the
following new subparagraph:
``(F) Identification number requirement.--The term
`eligible individual' does not include any individual who
does not include on the return of tax for the taxable year--
``(i) such individual's taxpayer identification number, and
``(ii) if the individual is married (within the meaning of
section 7703), the taxpayer identification number of such
individual's spouse.''.
(b) Special Identification Number.--Section 32 of such Code
is amended by adding at the end the following new subsection:
``(l) Identification Numbers.--Solely for purposes of
subsections (c)(1)(F) and (c)(3)(D), a taxpayer
identification number means a social security number issued
to an individual by the Social Security Administration (other
than a social security number issued pursuant to clause (II)
(or that portion of clause (III) that relates to clause (II))
of section 205(c)(2)(B)(i) of the Social Security Act).''.
(c) Extension of Procedures Applicable to Mathematical or
Clerical Errors.--Section 6213(g)(2) of such Code (relating
to the definition of mathematical or clerical errors) is
amended by striking ``and' at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and
inserting a comma, and by inserting after subparagraph (E)
the following new subparagraphs:
``(F) an omission of a correct taxpayer identification
number required under section 32 (relating to the earned
income tax credit) to be included on a return, and
``(G) an entry on a return claiming the credit under
section 32 with respect to net earnings from self-employment
described in section 32(c)(2)(A) to the extent the tax
imposed by section 1401 (relating to self-employment tax) on
such net earnings has not been paid.''
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1995.
Subtitle E--Reform of Public Housing
SEC. 4601. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC
ASSISTANCE PROGRAMS.
(a) In General.--If an individual's benefits under a
Federal, State, or local law relating to a means-tested
welfare or a public assistance program are reduced because of
an act of fraud by the individual under the law or program,
the individual may not, for the duration of the reduction,
receive an increased benefit under any other means-tested
welfare or public assistance program for which Federal funds
are appropriated as a result of a decrease in the income of
the individual (determined under the applicable program)
attributable to such reduction.
(b) Welfare or Public Assistance Programs for Which Federal
Funds Are Appropriated.--For purposes of subsection (a), the
term ``means-tested welfare or public assistance program for
which Federal funds are appropriated'' includes the food
stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.), any program of public or assisted housing under
title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), and State programs funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.).
Subtitle F--Child Protection Block Grant Programs and Foster Care,
Adoption Assistance, and Independent Living Programs
CHAPTER 1--CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER CARE,
ADOPTION ASSISTANCE, AND INDEPENDENT LIVING PROGRAMS
Subchapter A--Block Grants to States for the Protection of Children
SEC. 4701. ESTABLISHMENT OF PROGRAM.
Title IV of the Social Security Act (42 U.S.C. 601 et seq.)
is amended by striking part B and inserting the following:
``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN
``SEC. 421. PURPOSE.
``The purpose of this part is to enable eligible States to
carry out a child protection program to--
``(1) identify and assist families at risk of abusing or
neglecting their children;
``(2) operate a system for receiving reports of abuse or
neglect of children;
``(3) improve the intake, assessment, screening, and
investigation of reports of abuse and neglect;
``(4) enhance the general child protective system by
improving risk and safety assessment tools and protocols;
``(5) improve legal preparation and representation,
including procedures for appealing and responding to appeals
of substantiated reports of abuse and neglect;
``(6) provide support, treatment, and family preservation
services to families which are, or are at risk of, abusing or
neglecting their children;
``(7) support children who must be removed from or who
cannot live with their families;
``(8) make timely decisions about permanent living
arrangements for children who must be removed from or who
cannot live with their families;
``(9) provide for continuing evaluation and improvement of
child protection laws, regulations, and services;
``(10) develop and facilitate training protocols for
individuals mandated to report child abuse or neglect; and
``(11) develop and enhance the capacity of community-based
programs to integrate shared leadership strategies between
parents and professionals to prevent and treat child abuse
and neglect at the neighborhood level.
``SEC. 422. ELIGIBLE STATES.
``(a) In General.--As used in this part, the term `eligible
State' means a State that has submitted to the Secretary, not
later than October 1, 1996, and every 3 years thereafter, a
plan which has been signed by the chief executive officer of
the State and that includes the following:
``(1) Outline of child protection program.--A written
document that outlines the activities the State intends to
conduct to achieve the purpose of this part, including the
procedures to be used for--
``(A) receiving and assessing reports of child abuse or
neglect;
``(B) investigating such reports;
``(C) with respect to families in which abuse or neglect
has been confirmed, providing services or referral for
services for families and children where the State makes a
determination that the child may safely remain with the
family;
[[Page H7890]]
``(D) protecting children by removing them from dangerous
settings and ensuring their placement in a safe environment;
``(E) providing training for individuals mandated to report
suspected cases of child abuse or neglect;
``(F) protecting children in foster care;
``(G) promoting timely adoptions;
``(H) protecting the rights of families, using adult
relatives as the preferred placement for children separated
from their parents where such relatives meet the relevant
State child protection standards; and
``(I) providing services to individuals, families, or
communities, either directly or through referral, that are
aimed at preventing the occurrence of child abuse and
neglect.
``(2) Certification of state law requiring the reporting of
child abuse and neglect.--A certification that the State has
in effect laws that require public officials and other
professionals to report, in good faith, actual or suspected
instances of child abuse or neglect.
``(3) Certification of procedures for screening, safety
assessment, and prompt investigation.--A certification that
the State has in effect procedures for receiving and
responding to reports of child abuse or neglect, including
the reports described in paragraph (2), and for the immediate
screening, safety assessment, and prompt investigation of
such reports.
``(4) Certification of state procedures for removal and
placement of abused or neglected children.--A certification
that the State has in effect procedures for the removal from
families and placement of abused or neglected children and of
any other child in the same household who may also be in
danger of abuse or neglect.
``(5) Certification of provisions for immunity from
prosecution.--A certification that the State has in effect
laws requiring immunity from prosecution under State and
local laws and regulations for individuals making good faith
reports of suspected or known instances of child abuse or
neglect.
``(6) Certification of provisions and procedures relating
to appeals.--A certification that not later than 2 years
after the date of the enactment of this part, the State shall
have laws and procedures in effect affording individuals an
opportunity to appeal an official finding of abuse or
neglect.
``(7) Certification of state procedures for developing and
reviewing written plans for permanent placement of removed
children.--A certification that the State has in effect
procedures for ensuring that a written plan is prepared for
children who have been removed from their families. Such plan
shall specify the goals for achieving a permanent placement
for the child in a timely fashion, for ensuring that the
written plan is reviewed every 6 months (until such placement
is achieved), and for ensuring that information about such
children is collected regularly and recorded in case records,
and include a description of such procedures.
``(8) Certification of state program to provide independent
living services.--A certification that the State has in
effect a program to provide independent living services, for
assistance in making the transition to self-sufficient
adulthood, to individuals in the child protection program of
the State who are 16, but who are not 20 (or, at the option
of the State, 22), years of age, and who do not have a family
to which to be returned.
``(9) Certification of state procedures to respond to
reporting of medical neglect of disabled infants.--
``(A) In general.--A certification that the State has in
place for the purpose of responding to the reporting of
medical neglect of infants (including instances of
withholding of medically indicated treatment from disabled
infants with life-threatening conditions), procedures or
programs, or both (within the State child protective services
system), to provide for--
``(i) coordination and consultation with individuals
designated by and within appropriate health-care facilities;
``(ii) prompt notification by individuals designated by and
within appropriate health-care facilities of cases of
suspected medical neglect (including instances of withholding
of medically indicated treatment from disabled infants with
life-threatening conditions); and
``(iii) authority, under State law, for the State child
protective service to pursue any legal remedies, including
the authority to initiate legal proceedings in a court of
competent jurisdiction, as may be necessary to prevent the
withholding of medically indicated treatment from disabled
infants with life-threatening conditions.
``(B) Withholding of medically indicated treatment.--As
used in subparagraph (A), the term `withholding of medically
indicated treatment' means the failure to respond to the
infant's life-threatening conditions by providing treatment
(including appropriate nutrition, hydration, and medication)
which, in the treating physician's or physicians' reasonable
medical judgment, will be most likely to be effective in
ameliorating or correcting all such conditions, except that
such term does not include the failure to provide treatment
(other than appropriate nutrition, hydration, or medication)
to an infant when, in the treating physician's or physicians'
reasonable medical judgment--
``(i) the infant is chronically and irreversibly comatose;
``(ii) the provision of such treatment would--
``(I) merely prolong dying;
``(II) not be effective in ameliorating or correcting all
of the infant's life-threatening conditions; or
``(III) otherwise be futile in terms of the survival of the
infant; or
``(iii) the provision of such treatment would be virtually
futile in terms of the survival of the infant and the
treatment itself under such circumstances would be inhumane.
``(10) Identification of child protection goals.--The
quantitative goals of the State child protection program.
``(11) Certification of child protection standards.--With
respect to fiscal years beginning on or after April 1, 1996,
a certification that the State--
``(A) has completed an inventory of all children who,
before the inventory, had been in foster care under the
responsibility of the State for 6 months or more, which
determined--
``(i) the appropriateness of, and necessity for, the foster
care placement;
``(ii) whether the child could or should be returned to the
parents of the child or should be freed for adoption or other
permanent placement; and
``(iii) the services necessary to facilitate the return of
the child or the placement of the child for adoption or legal
guardianship;
``(B) is operating, to the satisfaction of the Secretary--
``(i) a statewide information system from which can be
readily determined the status, demographic characteristics,
location, and goals for the placement of every child who is
(or, within the immediately preceding 12 months, has been) in
foster care;
``(ii) a case review system for each child receiving foster
care under the supervision of the State;
``(iii) a service program designed to help children--
``(I) where appropriate, return to families from which they
have been removed; or
``(II) be placed for adoption, with a legal guardian, or if
adoption or legal guardianship is determined not to be
appropriate for a child, in some other planned, permanent
living arrangement; and
``(iv) a preplacement preventive services program designed
to help children at risk for foster care placement remain
with their families; and
``(C)(i) has reviewed (or not later than October 1, 1997,
will review) State policies and administrative and judicial
procedures in effect for children abandoned at or shortly
after birth (including policies and procedures providing for
legal representation of such children); and
``(ii) is implementing (or not later than October 1, 1997,
will implement) such policies and procedures as the State
determines, on the basis of the review described in clause
(i), to be necessary to enable permanent decisions to be made
expeditiously with respect to the placement of such children.
``(12) Certification of reasonable efforts before placement
of children in foster care.--A certification that the State
in each case will--
``(A) make reasonable efforts prior to the placement of a
child in foster care, to prevent or eliminate the need for
removal of the child from the child's home, and to make it
possible for the child to return home; and
``(B) with respect to families in which abuse or neglect
has been confirmed, provide services or referral for services
for families and children where the State makes a
determination that the child may safely remain with the
family.
``(13) Certification of cooperative efforts.--A
certification by the State, where appropriate, that all steps
will be taken, including cooperative efforts with the State
agencies administering the plans approved under parts A and
D, to secure an assignment to the State of any rights to
support on behalf of each child receiving foster care
maintenance payments under part E.
``(14) Certification of confidentiality and requirements
for information disclosure.--
``(A) In general.--A certification that the State has in
effect and operational--
``(i) requirements ensuring that reports and records made
and maintained pursuant to the purposes of this part shall
only be made available to--
``(I) individuals who are the subject of the report;
``(II) Federal, State, or local government entities, or any
agent of such entities, having a need for such information in
order to carry out their responsibilities under law to
protect children from abuse and neglect;
``(III) child abuse citizen review panels;
``(IV) child fatality review panels;
``(V) a grand jury or court, upon a finding that
information in the record is necessary for the determination
of an issue before the court or grand jury; and
``(VI) other entities or classes of individuals statutorily
authorized by the State to receive such information pursuant
to a legitimate State purpose; and
``(ii) provisions that allow for public disclosure of the
findings or information about cases of child abuse or neglect
that have resulted in a child fatality or near fatality.
``(B) Limitation.--Disclosures made pursuant to clause (i)
or (ii) shall not include the identifying information
concerning the individual initiating a report or complaint
alleging suspected instances of child abuse or neglect.
``(C) Definition.--For purposes of this paragraph, the term
`near fatality' means an
[[Page H7891]]
act that, as certified by a physician, places the child in
serious or critical condition.
``(b) Determinations.--The Secretary shall determine
whether a plan submitted pursuant to subsection (a) contains
the material required by subsection (a), other than the
material described in paragraph (9) of such subsection. The
Secretary may not require a State to include in such a plan
any material not described in subsection (a).
``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.
``(a) Funding of Block Grants.--
``(1) Entitlement component.--
``(A) Eligible states.--Each eligible State shall be
entitled to receive from the Secretary for each fiscal year
specified in subsection (b)(1) a grant in an amount equal to
the State share of 99 percent of the child protection amount
for the fiscal year.
``(B) Indian tribes and tribal organizations.--The
Secretary shall reserve for payments to Indian tribes (as
defined in section 658P(7) of the Child Care and Development
Block Grant Act of 1990) and tribal organizations (as defined
in section 658P(14) of such Act) for each fiscal year
specified in subsection (b)(1) an amount equal to 1 percent
of the child protection amount for the fiscal year.
``(2) Authorization component.--
``(A) In general.--
``(i) Eligible states.--For each eligible State for each
fiscal year specified in subsection (b)(1), the Secretary
shall supplement the grant under paragraph (1)(A) of this
subsection by an amount equal to the State share of 99.64
percent of the amount (if any) appropriated pursuant to
subparagraph (B) of this paragraph for the fiscal year.
``(ii) Indian tribes and tribal organizations.--The
Secretary shall supplement the amount reserved for payments
pursuant to paragraph (1)(B) of this subsection for each
fiscal year specified in subsection (b)(1), by an amount
equal to 0.36 percent of the amount (if any) appropriated
pursuant to subparagraph (B) of this paragraph for the fiscal
year.
``(B) Limitation on authorization of appropriations.--For
grants under subparagraph (A), there are authorized to be
appropriated to the Secretary an amount not to exceed
$325,000,000 for each fiscal year specified in subsection
(b)(1).
``(b) Definitions.--As used in this section:
``(1) Child protection amount.--The term `child protection
amount' means--
``(A) $240,000,000 for fiscal year 1997;
``(B) $255,000,000 for fiscal year 1998;
``(C) $262,000,000 for fiscal year 1999;
``(D) $270,000,000 for fiscal year 2000;
``(E) $278,000,000 for fiscal year 2001; and
``(F) $286,000,000 for fiscal year 2002;
``(2) State share.--
``(A) In general.--The term `State share' means the
qualified child protection expenses of the State divided by
the sum of the qualified child protection expenses of all of
the States.
``(B) Qualified child protection expenses.--The term
`qualified child protection expenses' means, with respect to
a State the greater of--
``(i) the total amount of one-third of the Federal grant
amounts to the State under the provisions of law specified in
clauses (i) and (ii) of subparagraph (C) for fiscal years
1992, 1993, and 1994; or
``(ii) the total amount of the Federal grant amounts to the
State under the provisions of law specified in clauses (i)
and (ii) of subparagraph (C) for fiscal year 1994.
``(C) Provisions of law.--The provisions of law specified
in this subparagraph are the following (as in effect with
respect to each of the fiscal years referred to in
subparagraph (B)):
``(i) Section 423 of this Act.
``(ii) Section 434 of this Act.
``(D) Determination of information.--In determining amounts
for fiscal years 1992, 1993, and 1994 under clauses (i) and
(ii) of subparagraph (B), the Secretary shall use information
listed as actual amounts in the Justification for Estimates
for Appropriation Committees of the Administration for
Children and Families for fiscal years 1994, 1995, and 1996,
respectively.
``(c) Use of Grant.--
``(1) In general.--A State to which a grant is made under
this section may use the grant in any manner that the State
deems appropriate to accomplish the purpose of this part.
``(2) Timing of expenditures.--A State to which a grant is
made under this section for a fiscal year shall expend the
total amount of the grant not later than the end of the
immediately succeeding fiscal year.
``(3) Rule of interpretation.--This part shall not be
interpreted to prohibit short- and long-term foster care
facilities operated for profit from receiving funds provided
under this part or part E.
``(4) Prohibition against use of funds for foster care
maintenance or adoption assistance payments.--Funds provided
under this part shall not be used to make foster care
maintenance payments or adoption assistance payments under
any State plan approved under part E.
``(d) Timing of Payments.--The Secretary shall pay each
eligible State the amount of the grant payable to the State
under this section in quarterly installments.
``(e) Penalties.--
``(1) For use of grant in violation of this part.--If an
audit conducted pursuant to chapter 75 of title 31, United
States Code, finds that an amount paid to a State under
this section for a fiscal year has been used in violation
of this part, then the Secretary shall reduce the amount
of the grant that would (in the absence of this paragraph)
be payable to the State under this section for the
immediately succeeding fiscal year by the amount so used,
plus 5 percent of the grant paid under this section to the
State for such fiscal year.
``(2) For failure to maintain effort.--
``(A) In general.--If an audit conducted pursuant to
chapter 75 of title 31, United States Code, finds that the
amount expended by a State (other than from amounts provided
by the Federal Government) during the fiscal years specified
in subparagraph (B), to carry out the State program funded
under this part is less than the applicable percentage
specified in such subparagraph of the total amount expended
by the State (other than from amounts provided by the Federal
Government) during fiscal year 1994 under part B of this
title (as in effect on the day before the date of the
enactment of this part), then the Secretary shall reduce the
amount of the grant that would (in the absence of this
paragraph) be payable to the State under this section for the
immediately succeeding fiscal year by the amount of the
difference, plus 5 percent of the grant paid under this
section to the State for such fiscal year.
``(B) Specification of fiscal years and applicable
percentages.--The fiscal years and applicable percentages
specified in this subparagraph are as follows:
``(i) For fiscal years 1997 and 1998, 100 percent.
``(ii) For fiscal years 1999 through 2002, 75 percent.
``(3) For failure to submit required report.--
``(A) In general.--The Secretary shall reduce by 3 percent
the amount of the grant that would (in the absence of this
paragraph) be payable to a State under this section for a
fiscal year if the Secretary determines that the State has
not submitted the report required by section 424 for the
immediately preceding fiscal year, within 6 months after the
end of the immediately preceding fiscal year.
``(B) Rescission of penalty.--The Secretary shall rescind a
penalty imposed on a State under subparagraph (A) with
respect to a report for a fiscal year if the State submits
the report before the end of the immediately succeeding
fiscal year.
``(4) State funds to replace reductions in grant.--A State
which has a penalty imposed against it under this subsection
for a fiscal year shall expend additional State funds in an
amount equal to the amount of the penalty for the purpose of
carrying out the State program under this part during the
immediately succeeding fiscal year.
``(5) Reasonable cause exception.--Except in the case of
the penalty described in paragraph (2), the Secretary may not
impose a penalty on a State under this subsection with
respect to a requirement if the Secretary determines that the
State has reasonable cause for failing to comply with the
requirement.
``(6) Corrective compliance plan.--
``(A) In general.--
``(i) Notification of violation.--Before imposing a penalty
against a State under this subsection with respect to a
violation of this part, the Secretary shall notify the State
of the violation and allow the State the opportunity to enter
into a corrective compliance plan in accordance with this
paragraph which outlines how the State will correct the
violation and how the State will insure continuing compliance
with this part.
``(ii) 60-day period to propose a corrective compliance
plan.--During the 60-day period that begins on the date the
State receives a notice provided under clause (i) with
respect to a violation, the State may submit to the Federal
Government a corrective compliance plan to correct the
violation.
``(iii) Consultation about modifications.--During the 60-
day period that begins with the date the Secretary receives a
corrective compliance plan submitted by a State in accordance
with clause (ii), the Secretary may consult with the State on
modifications to the plan.
``(iv) Acceptance of plan.--A corrective compliance plan
submitted by a State in accordance with clause (ii) is deemed
to be accepted by the Secretary if the Secretary does not
accept or reject the plan during the 60-day period that
begins on the date the plan is submitted.
``(B) Effect of correcting violation.--The Secretary may
not impose any penalty under this subsection with respect to
any violation covered by a State corrective compliance plan
accepted by the Secretary if the State corrects the violation
pursuant to the plan.
``(C) Effect of failing to correct violation.--The
Secretary shall assess some or all of a penalty imposed on a
State under this subsection with respect to a violation if
the State does not, in a timely manner, correct the violation
pursuant to a State corrective compliance plan accepted by
the Secretary.
``(7) Limitation on amount of penalty.--
``(A) In general.--In imposing the penalties described in
this subsection, the Secretary shall not reduce any quarterly
payment to a State by more than 25 percent.
``(B) Carryforward of unrecovered penalties.--To the extent
that subparagraph (A) prevents the Secretary from recovering
during a fiscal year the full amount of all penalties imposed
on a State under this subsection for a prior fiscal year, the
Secretary shall apply any remaining amount of such penalties
to the grant payable to the State
[[Page H7892]]
under subsection (a) for the immediately succeeding fiscal
year.
``(f) Treatment of Territories.--
``(1) In general.--A territory, as defined in section
1108(b)(1), shall carry out a child protection program in
accordance with the provisions of this part.
``(2) Payments.--Subject to the mandatory ceiling amounts
specified in section 1108, each territory, as so defined,
shall be entitled to receive from the Secretary for any
fiscal year an amount equal to the total obligations to the
territory under section 434 (as in effect on the day before
the date of the enactment of this part) for fiscal year 1995.
``(g) Limitation on Federal Authority.--Except as expressly
provided in this Act, the Secretary may not regulate the
conduct of States under this part or enforce any provision of
this part.
``SEC. 424. DATA COLLECTION AND REPORTING.
``(a) National Child Abuse and Neglect Data System.--The
Secretary shall establish a national data collection and
analysis program--
``(1) which, to the extent practicable, coordinates
existing State child abuse and neglect reports and which
shall include--
``(A) standardized data on substantiated, as well as false,
unfounded, or unsubstantiated reports; and
``(B) information on the number of deaths due to child
abuse and neglect; and
``(2) which shall collect, compile, analyze, and make
available State child abuse and neglect reporting information
which, to the extent practical, is universal and case-
specific and integrated with other case-based foster care and
adoption data collected by the Secretary.
``(b) Adoption and Foster Care and Analysis and Reporting
Systems.--The Secretary shall implement a system for the
collection of data relating to adoption and foster care in
the United States. Such data collection system shall--
``(1) avoid unnecessary diversion of resources from
agencies responsible for adoption and foster care;
``(2) assure that any data that is collected is reliable
and consistent over time and among jurisdictions through the
use of uniform definitions and methodologies;
``(3) provide comprehensive national information with
respect to--
``(A) the demographic characteristics of adoptive and
foster children and their biological and adoptive or foster
parents;
``(B) the status of the foster care population (including
the number of children in foster care, length of placement,
type of placement, availability for adoption, and goals for
ending or continuing foster care);
``(C) the number and characteristics of--
``(i) children placed in or removed from foster care;
``(ii) children adopted or with respect to whom adoptions
have been terminated; and
``(iii) children placed in foster care outside the State
which has placement and care responsibility; and
``(D) the extent and nature of assistance provided by
Federal, State, and local adoption and foster care programs
and the characteristics of the children with respect to whom
such assistance is provided; and
``(4) utilize appropriate requirements and incentives to
ensure that the system functions reliably throughout the
United States.
``(c) Additional Information.--The Secretary may require
the provision of additional information under the data
collection system established under subsection (b) if the
addition of such information is agreed to by a majority of
the States.
``(d) Annual Report by the Secretary.--Not later than 6
months after the end of each fiscal year, the Secretary shall
prepare a report based on information provided by the States
for the fiscal year pursuant to this section, and shall make
the report and such information available to the Congress and
the public.
``SEC. 425. FUNDING FOR STUDIES OF CHILD WELFARE.
``(a) National Random Sample Study of Child Welfare.--There
are authorized to be appropriated and there are appropriated
to the Secretary for each of fiscal years 1996 through 2002--
``(1) $6,000,000 to conduct a national study based on
random samples of children who are at risk of child abuse or
neglect, or are determined by States to have been abused or
neglected under section 208 of the Child and Family Services
Block Grant Act of 1996; and
``(2) $10,000,000 for such other research as may be
necessary under such section.
``(b) Assessment of State Courts Improvement of Handling of
Proceedings Relating to Foster Care and Adoption.--There are
authorized to be appropriated and there are appropriated to
the Secretary for each of fiscal years 1996 through 1998
$10,000,000 for the purpose of carrying out section 13712 of
the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 670
note). All funds appropriated under this subsection shall be
expended not later than September 30, 1999.
``SEC. 426. DEFINITIONS.
``For purposes of this part and part E, the following
definitions shall apply:
``(1) Administrative review.--The term `administrative
review' means a review open to the participation of the
parents of the child, conducted by a panel of appropriate
persons at least one of whom is not responsible for the case
management of, or the delivery of services to, either the
child or the parents who are the subject of the review.
``(2) Adoption assistance agreement.--The term `adoption
assistance agreement' means a written agreement, binding on
the parties to the agreement, between the State, other
relevant agencies, and the prospective adoptive parents of a
minor child which at a minimum--
``(A) specifies the nature and amount of any payments,
services, and assistance to be provided under such agreement;
and
``(B) stipulates that the agreement shall remain in effect
regardless of the State of which the adoptive parents are
residents at any given time.
The agreement shall contain provisions for the protection
(under an interstate compact approved by the Secretary or
otherwise) of the interests of the child in cases where the
adoptive parents and child move to another State while the
agreement is effective.
``(3) Case plan.--The term `case plan' means a written
document which includes at least the following:
``(A) A description of the type of home or institution in
which a child is to be placed, including a discussion of the
appropriateness of the placement and how the agency which is
responsible for the child plans to carry out the voluntary
placement agreement entered into or judicial determination
made with respect to the child in accordance with section
472(a)(1).
``(B) A plan for assuring that the child receives proper
care and that services are provided to the parents, child,
and foster parents in order to improve the conditions in the
parents' home, facilitate return of the child to his or her
own home or the permanent placement of the child, and address
the needs of the child while in foster care, including a
discussion of the appropriateness of the services that have
been provided to the child under the plan.
``(C) To the extent available and accessible, the health
and education records of the child, including--
``(i) the names and addresses of the child's health and
educational providers;
``(ii) the child's grade level performance;
``(iii) the child's school record;
``(iv) assurances that the child's placement in foster care
takes into account proximity to the school in which the child
is enrolled at the time of placement;
``(v) a record of the child's immunizations;
``(vi) the child's known medical problems;
``(vii) the child's medications; and
``(viii) any other relevant health and education
information concerning the child determined to be appropriate
by the State.
Where appropriate, for a child age 16 or over, the case plan
must also include a written description of the programs and
services which will help such child prepare for the
transition from foster care to independent living.
``(4) Case review system.--The term `case review system'
means a procedure for assuring that--
``(A) each child has a case plan designed to achieve
placement in the least restrictive (most family-like) and
most appropriate setting available and in close proximity to
the parents' home, consistent with the best interests and
special needs of the child, which--
``(i) if the child has been placed in a foster family home
or child-care institution a substantial distance from the
home of the parents of the child, or in a State different
from the State in which such home is located, sets forth the
reasons why such placement is in the best interests of the
child; and
``(ii) if the child has been placed in foster care outside
the State in which the home of the parents of the child is
located, requires that, periodically, but not less frequently
than every 12 months, a caseworker on the staff of the State
in which the home of the parents of the child is located,
or of the State in which the child has been placed, visit
such child in such home or institution and submit a report
on such visit to the State in which the home of the
parents of the child is located;
``(B) the status of each child is reviewed periodically but
no less frequently than once every 6 months by either a court
or by administrative review (as defined in paragraph (1)) in
order to determine the continuing necessity for and
appropriateness of the placement, the extent of compliance
with the case plan, and the extent of progress which has been
made toward alleviating or mitigating the causes
necessitating placement in foster care, and to project a
likely date by which the child may be returned to the home or
placed for adoption or legal guardianship;
``(C) with respect to each such child, procedural
safeguards will be applied, among other things, to assure
each child in foster care under the supervision of the State
of a dispositional hearing to be held, in a family or
juvenile court or another court (including a tribal court) of
competent jurisdiction, or by an administrative body
appointed or approved by the court, no later than 18 months
after the original placement (and not less frequently than
every 12 months thereafter during the continuation of foster
care), which hearing shall determine the future status of the
child (including whether the child should be returned to the
parent, should be continued in foster care for a specified
period, should be placed for adoption, or should (because of
the child's special needs or circumstances) be continued in
foster care on a permanent or long-term basis) and, in the
case of a child described in subparagraph (A)(ii), whether
the out-of-State placement continues to be appropriate and in
the best
[[Page H7893]]
interests of the child, and, in the case of a child who has
attained age 16, the services needed to assist the child to
make the transition from foster care to independent living;
and procedural safeguards shall also be applied with respect
to parental rights pertaining to the removal of the child
from the home of his parents, to a change in the child's
placement, and to any determination affecting visitation
privileges of parents; and
``(D) a child's health and education record (as described
in paragraph (3)(C)) is reviewed and updated, and supplied to
the foster parent or foster care provider with whom the child
is placed, at the time of each placement of the child in
foster care.
``(5) Child-care institution.--The term `child-care
institution' means a private child-care institution, or a
public child-care institution which accommodates no more than
25 children, which is licensed by the State in which it is
situated or has been approved, by the agency of such State
responsible for licensing or approval of institutions of this
type, as meeting the standards established for such
licensing, but the term shall not include detention
facilities, forestry camps, training schools, or any other
facility operated primarily for the detention of children who
are determined to be delinquent.
``(6) Foster care maintenance payments.--
``(A) In general.--The term `foster care maintenance
payments' means payments to cover the cost of (and the cost
of providing) food, clothing, shelter, daily supervision,
school supplies, a child's personal incidentals, liability
insurance with respect to a child, and reasonable travel to
the child's home for visitation. In the case of institutional
care, such term shall include the reasonable costs of
administration and operation of such institution as are
necessarily required to provide the items described in the
preceding sentence.
``(B) Special rule.--In cases where--
``(i) a child placed in a foster family home or child-care
institution is the parent of a son or daughter who is in the
same home or institution; and
``(ii) payments described in subparagraph (A) are being
made under this part with respect to such child,
the foster care maintenance payments made with respect to
such child as otherwise determined under subparagraph (A)
shall also include such amounts as may be necessary to cover
the cost of the items described in that subparagraph with
respect to such son or daughter.
``(7) Foster family home.--The term `foster family home'
means a foster family home for children which is licensed by
the State in which it is situated or has been approved, by
the agency of such State having responsibility for licensing
homes of this type, as meeting the standards established for
such licensing.
``(8) Parents.--The term `parents' means biological or
adoptive parents or legal guardians, as determined by
applicable State law.
``(9) State.--The term `State' means the 50 States and the
District of Columbia.
``(10) Voluntary placement.--The term `voluntary placement'
means an out-of-home placement of a minor, by or with
participation of the State, after the parents or guardians of
the minor have requested the assistance of the State and
signed a voluntary placement agreement.
``(11) Voluntary placement agreement.--The term `voluntary
placement agreement' means a written agreement, binding on
the parties to the agreement, between the State, any other
agency acting on its behalf, and the parents or guardians of
a minor child which specifies, at a minimum, the legal status
of the child and the rights and obligations of the parents or
guardians, the child, and the agency while the child is in
placement.''.
SEC. 4702. CONFORMING AMENDMENTS.
(a) Amendments to Part D of Title IV of the Social Security
Act.--
(1) Section 452(a)(10)(C) of the Social Security Act (42
U.S.C. 652(a)(10)(C)), as amended by section 4108(b)(2) of
this Act, is amended by striking ``or under section
471(a)(17),''.
(2) Section 452(g)(2)(A) of such Act (42 U.S.C.
652(g)(2)(A)), as amended by paragraphs (6) and (7) of
section 4108(b) of this Act, is amended by inserting ``or
benefits or services for foster care maintenance were being
provided under the State program funded under part E'' after
``part A'' each place it appears.
(3) Section 466(a)(3)(B) of such Act (42 U.S.C.
666(a)(3)(B)), as amended by section 4108(b)(14) of this Act,
is amended by striking ``or 471(a)(17)''.
(b) Amendment to Section 9442 of the Omnibus Budget
Reconciliation Act of 1986.--Section 9442(4) of the Omnibus
Budget Reconciliation Act of 1986 (42 U.S.C. 679a(4)) is
amended by inserting ``(as in effect before October 1,
1995)'' after ``Act''.
(c) Redesignation and Amendments of Section 1123.--
(1) Redesignation.--The Social Security Act is amended by
redesignating section 1123, the second place it appears (42
U.S.C. 1320a-1a), as section 1123A.
(2) Amendments.--Section 1123A of such Act, as so
redesignated, is amended in subsection (a)--
(A) by striking ``The Secretary'' and inserting
``Notwithstanding section 423(g), the Secretary''; and
(B) in paragraph (2), by inserting ``under this section''
after ``promulgated''.
Subchapter B--Foster Care, Adoption Assistance, and Independent Living
Programs
SEC. 4711. CONFORMING AMENDMENTS TO PART E OF TITLE IV.
(a) Purpose; Appropriation.--Section 470 of the Social
Security Act (42 U.S.C 670) is amended--
(1) by amending the heading to read as follows:
``SEC. 470. PURPOSE; APPROPRIATION.''; and
(2) in the second sentence, by striking ``this part'' and
inserting ``section 422''.
(b) State Plan For Foster Care and Adoption Assistance.--
Section 471 of such Act (42 U.S.C. 671) is amended to read as
follows:
``SEC. 471. ELIGIBLE STATES.
``In order for a State to be eligible for payments under
this part, the State shall have submitted to the Secretary a
plan which satisfies the requirements of section 422.''.
(c) Foster Care Maintenance Payments Program.--Section 472
of such Act (42 U.S.C. 672) is amended to read as follows:
``SEC. 472. REQUIREMENTS FOR FOSTER CARE MAINTENANCE
PAYMENTS.
``(a) In General.--Each State operating a program under
this part shall make foster care maintenance payments, as
defined in section 426(6) with respect to a child who would
meet the requirements of section 406(a) (as in effect on the
day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996) or of
section 407 (as so in effect) but for the removal of the
child from the home of a relative (specified in section
406(a) (as so in effect)), if--
``(1) the removal from the home occurred pursuant to a
voluntary placement agreement entered into by the child's
parent or legal guardian, or was the result of a judicial
determination to the effect that continuation therein would
be contrary to the welfare of such child and that reasonable
efforts of the type described in section 422(a)(12) have been
made;
``(2) such child's placement and care are the
responsibility of--
``(A) the State; or
``(B) any other public agency with which the State has made
an agreement for the administration of the State program
under this part which is still in effect;
``(3) such child has been placed in a foster family home or
child-care institution as a result of the voluntary placement
agreement or judicial determination referred to in paragraph
(1); and
``(4) such child--
``(A) would have been eligible to receive aid under the
eligibility standards under the State plan approved under
section 402 (as in effect on the day before the date of the
enactment of this part and adjusted for inflation, in
accordance with regulations issued by the Secretary) in or
for the month in which such agreement was entered into or
court proceedings leading to the removal of such child from
the home were initiated; or
``(B) would have received such aid in or for such month if
application had been made therefor, or the child had been
living with a relative specified in section 406(a) (as so in
effect) within 6 months prior to the month in which such
agreement was entered into or such proceedings were
initiated, and would have received such aid in or for such
month if in such month such child had been living with such a
relative and application therefor had been made.
``(b) Limitation on Foster Care Payments.--Foster care
maintenance payments may be made under this part only on
behalf of a child described in subsection (a) of this section
who is--
``(1) in the foster family home of an individual, whether
the payments therefore are made to such individual or to a
public or private child placement or child-care agency; or
``(2) in a child-care institution, whether the payments
therefore are made to such institution or to a public or
private child-placement or child-care agency, which payments
shall be limited so as to include in such payments only those
items which are included in the term `foster care maintenance
payments' (as defined in section 426(6)).
``(c) Voluntary Placements.--
``(1) Satisfaction of child protection standards.--
Notwithstanding any other provision of this section, Federal
payments may be made under this part with respect to amounts
expended by any State as foster care maintenance payments
under this part, in the case of children removed from their
homes pursuant to voluntary placement agreements as described
in subsection (a), only if (at the time such amounts were
expended) the State has fulfilled all of the requirements of
section 422(a)(11).
``(2) Removal in excess of 180 days.--No Federal payment
may be made under this part with respect to amounts expended
by any State as foster care maintenance payments, in the case
of any child who was removed from such child's home pursuant
to a voluntary placement agreement as described in subsection
(a) and has remained in voluntary placement for a period in
excess of 180 days, unless there has been a judicial
determination by a court of competent jurisdiction (within
the first 180 days of such placement) that such placement is
in the best interests of the child.
``(3) Deemed revocation of agreements.--In any case where--
``(A) the placement of a minor child in foster care
occurred pursuant to a voluntary placement agreement entered
into by the
[[Page H7894]]
parents or guardians of such child as provided in subsection
(a); and
``(B) such parents or guardians request (in such manner and
form as the Secretary may prescribe) that the child be
returned to their home or to the home of a relative,
the voluntary placement agreement shall be deemed to be
revoked unless the State opposes such request and obtains a
judicial determination, by a court of competent jurisdiction,
that the return of the child to such home would be contrary
to the child's best interests.
``(d) Eligibility for Medical Assistance.--For purposes of
titles XIX and XX, any child with respect to whom foster care
maintenance payments are made under this section is deemed to
be a recipient of cash assistance under part A of this title.
For the purposes of the preceding sentence, a child whose
costs in a foster family home or child-care institution are
covered by the foster care maintenance payments being made
with respect to his or her minor parent, as provided in
section 426(6)(B), shall be considered a child with respect
to whom foster care maintenance payments are made under this
section.''.
(d) Adoption Assistance Program.--Section 473 of such Act
(42 U.S.C. 673) is amended to read as follows:
``SEC. 473. REQUIREMENTS FOR ADOPTION ASSISTANCE PAYMENTS.
``(a) In General.--A State operating a program under this
part shall enter into adoption assistance agreements with the
adoptive parents of children with special needs.
``(b) Payments Under Agreements.--
``(1) In general.--Under any adoption assistance agreement
entered into by a State with parents who adopt a child with
special needs, the State--
``(A) shall make payments of nonrecurring adoption expenses
incurred by or on behalf of such parents in connection with
the adoption of such child, directly through the State agency
or through another public or nonprofit private agency, in
amounts determined under subsection (e), and
``(B) in any case where the child meets the requirements of
subsection (d), may make adoption assistance payments to such
parents, directly through the State agency or through another
public or nonprofit private agency, in amounts so
determined.
``(2) Definition of nonrecurring adoption expenses.--
``(A) In general.--For purposes of paragraph (1)(A), the
term `nonrecurring adoption expenses' means reasonable and
necessary adoption fees, court costs, attorney fees, and
other expenses which are directly related to the legal
adoption of a child with special needs and which are not
incurred in violation of State or Federal law.
``(B) Treatment as an administrative expense.--A State's
payment of nonrecurring adoption expenses under an adoption
assistance agreement shall be treated as an expenditure made
for the proper and efficient administration of the State plan
for purposes of section 474(a)(3)(E).
``(c) Eligibility for Medical Assistance.--For purposes of
titles XIX and XX, any child--
``(1)(A) who is a child described in subsection (b), and
``(B) with respect to whom an adoption assistance agreement
is in effect under this section (whether or not adoption
assistance payments are provided under the agreement or are
being made under this section), including any such child who
has been placed for adoption in accordance with applicable
State and local law (whether or not an interlocutory or other
judicial decree of adoption has been issued), or
``(2) with respect to whom foster care maintenance payments
are being made under section 472,
is deemed to be a recipient of cash assistance under part A
of this title in the State where such child resides. For
purposes of the preceding sentence, a child whose costs in a
foster family home or child-care institution are covered by
the foster care maintenance payments being made with respect
to his or her minor parent, as provided in section 426(6)(B),
shall be considered a child with respect to whom foster care
maintenance payments are being made under section 472.
``(d) Children With Special Needs.--For purposes of
subsection (b)(1)(B), a child meets the requirements of this
subsection if such child--
``(1)(A) at the time adoption proceedings were initiated,
met the requirements of section 406(a) (as in effect on the
day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1996) or section
407 (as so in effect) or would have met such requirements
except for such child's removal from the home of a relative
(specified in section 406(a) (as so in effect)), either
pursuant to a voluntary placement agreement with respect to
which Federal payments are provided under section 474 (or 403
(as so in effect)) or as a result of a judicial determination
to the effect that continuation therein would be contrary to
the welfare of such child;
``(B) meets all of the requirements of title XVI with
respect to eligibility for supplemental security income
benefits; or
``(C) is a child whose costs in a foster family home or
child-care institution are covered by the foster care
maintenance payments being made with respect to his or her
minor parent;
``(2)(A) would have received aid under the eligibility
standards under the State plan approved under section 402 (as
in effect on the day before the date of the enactment of this
part, adjusted for inflation, in accordance with regulations
issued by the Secretary) in or for the month in which such
agreement was entered into or court proceedings leading to
the removal of such child from the home were initiated;
``(B) would have received such aid in or for such month if
application had been made therefor, or had been living with a
relative specified in section 406(a) (as so in effect) within
6 months prior to the month in which such agreement was
entered into or such proceedings were initiated, and would
have received such aid in or for such month if in such month
such child had been living with such a relative and
application therefor had been made; or
``(C) is a child described in subparagraph (A) or (B); and
``(3) has been determined by the State, pursuant to
subsection (h) of this section, to be a child with special
needs.
``(e) Determination of Payments.--The amount of the
payments to be made in any case under subsection (b) shall be
determined through agreement between the adoptive parents and
the State or a public or nonprofit private agency
administering the program under this part, which shall take
into consideration the circumstances of the adopting parents
and the needs of the child being adopted, and may be
readjusted periodically, with the concurrence of the adopting
parents (which may be specified in the adoption assistance
agreement), depending upon changes in such circumstances.
However, in no case may the amount of the adoption assistance
payment exceed the foster care maintenance payment which
would have been paid during the period if the child with
respect to whom the adoption assistance payment is made had
been in a foster family home.
``(f) Payment Exception.--Notwithstanding subsection (e),
no payment may be made to parents with respect to any child
who has attained the age of 18 (or, where the State
determines that the child has a mental or physical disability
which warrants the continuation of assistance, the age of
21), and no payment may be made to parents with respect to
any child if the State determines that the parents are no
longer legally responsible for the support of the child or if
the State determines that the child is no longer receiving
any support from such parents. Parents who have been
receiving adoption assistance payments under this part shall
keep the State or public or nonprofit private agency
administering the program under this part informed of
circumstances which would, pursuant to this section, make
them ineligible for such assistance payments, or eligible for
assistance payments in a different amount.
``(g) Preadoption Payments.--For purposes of this part,
individuals with whom a child who has been determined by the
State, pursuant to subsection (h), to be a child with special
needs is placed for adoption in accordance with applicable
State and local law shall be eligible for adoption assistance
payments during the period of the placement, on the same
terms and subject to the same conditions as if such
individuals had adopted such child.
``(h) Determination of Child With Special Needs.--For
purposes of this section, a child shall not be considered a
child with special needs unless--
``(1) the State has determined that the child cannot or
should not be returned to the home of the child's parents;
and
``(2) the State had first determined--
``(A) that there exists with respect to the child a
specific factor or condition such as the child's ethnic
background, age, or membership in a minority or sibling
group, or the presence of factors such as medical conditions
or physical, mental, or emotional handicaps because of which
it is reasonable to conclude that such child cannot be placed
with adoptive parents without providing adoption assistance
under this part or medical assistance under title XIX; and
``(B) that, except where it would be against the best
interests of the child because of such factors as the
existence of significant emotional ties with prospective
adoptive parents while in the care of such parents as a
foster child, a reasonable, but unsuccessful, effort has been
made to place the child with appropriate adoptive parents
without providing adoption assistance under this section or
medical assistance under title XIX.''.
(e) Payments to States; Allotments to States.--Section 474
of such Act (42 U.S.C. 674) is amended to read as follows:
``SEC. 474. PAYMENTS TO STATES; ALLOTMENTS TO STATES.
``(a) Foster Care, Adoption Assistance, and Independent
Living Programs Payments.--Each eligible State, as determined
under section 471, shall be entitled to receive from the
Secretary for each quarter of each fiscal year a payment
equal to the sum of--
``(1) an amount equal to the Federal medical assistance
percentage (as defined in section 1905(b) of this Act as in
effect on the day before the date of the enactment of the
Personal Responsibility and Work Opportunity Act of 1996) of
the total amount expended during such quarter as foster care
maintenance payments under the child protection program under
this part for children in foster family homes or child-care
institutions; plus
``(2) an amount equal to the Federal medical assistance
percentage (as defined in section 1905(b) of this Act (as so
in effect)) of the total amount expended during such quarter
as adoption assistance payments under
[[Page H7895]]
the child protection program under this part pursuant to
adoption assistance agreements; plus
``(3) an amount equal to the sum of the following
proportions of the total amounts expended during such quarter
as found necessary by the Secretary for the provision of
child placement services and for the proper and efficient
administration of the State foster care and adoption
assistance program--
``(A) 75 percent of so much of such expenditures as are for
the training (including both short and long-term training at
educational institutions through grants to such institutions
or by direct financial assistance to students enrolled in
such institutions) of personnel employed or preparing for
employment by the State agency or by the local agency
administering the plan in the political subdivision;
``(B) 75 percent of so much of such expenditures (including
travel and per diem expenses) as are for the short-term
training of current or prospective foster or adoptive parents
and the members of the staff of State-licensed or State-
approved child care institutions providing care to foster and
adopted children receiving assistance under this part, in
ways that increase the ability of such current or prospective
parents, staff members, and institutions to provide support
and assistance to foster and adopted children, whether
incurred directly by the State or by contract;
``(C) 50 percent (or, if the quarter is in fiscal year
1997, 75 percent) of so much of such expenditures as are for
the planning, design, development, or installation of
statewide mechanized data collection and information
retrieval systems (including 50 percent (or, if the quarter
is in fiscal year 1997, 75 percent) of the full amount of
expenditures for hardware components for such systems) but
only to the extent that such systems--
``(i) meet the requirements imposed by regulations;
``(ii) to the extent practicable, are capable of
interfacing with the State data collection system that
collects information relating to child abuse and neglect;
``(iii) to the extent practicable, have the capability of
interfacing with, and retrieving information from, the State
data collection system that collects information relating to
the eligibility of individuals under part A (for the purposes
of facilitating verification of eligibility of foster
children); and
``(iv) are determined by the Secretary to be likely to
provide more efficient, economical, and effective
administration of the programs carried out under a State plan
approved under this part;
``(D) 50 percent of so much of such expenditures as are for
the operation of the statewide mechanized data collection and
information retrieval systems referred to in subparagraph
(C); and
``(E) one-half of the remainder of such expenditures; plus
``(4) an amount equal to the sum of--
``(A) so much of the amounts expended by such State to
carry out a program under section 476, as do not exceed the
basic amount for such State determined under subsection
(e)(1) of such section; and
``(B) the lesser of--
``(i) one-half of any additional amounts expended by such
State for such programs; or
``(ii) the maximum additional amount for such State under
subsection (e)(1) of such section.
``(b) Automated Data Collection Expenditures.--The
Secretary shall treat as necessary for the proper and
efficient administration of the State plan all expenditures
of a State necessary in order for the State to plan, design,
develop, install, and operate data collection and information
retrieval systems, without regard to whether the systems may
be used with respect to foster or adoptive children other
than those on behalf of whom foster care maintenance payments
or adoption assistance payments may be made under this part.
``(c) Estimates by the Secretary.--
``(1) In general.--The Secretary shall, prior to the
beginning of each quarter, estimate the amount which a State
will be entitled to receive under subsection (a) for such
quarter, such estimates to be based on--
``(A) a report filed by the State containing its estimate
of the total sum to be expended in such quarter in accordance
with subsection (a), and stating the amount appropriated or
made available by the State and its political subdivisions
for such expenditures in such quarter, and if such amount is
less than the State's proportionate share of the total sum of
such estimated expenditures, the source or sources from which
the difference is expected to be derived;
``(B) records showing the number of children in the State
receiving assistance under this part; and
``(C) such other information as the Secretary may find
necessary.
``(2) Payments.--The Secretary shall pay to the States the
amounts so estimated under paragraph (1), reduced or
increased to the extent of any overpayment or underpayment
which the Secretary determines was made under this subsection
to such State for any prior quarter and with respect to which
adjustment has not already been made under this subsection.
``(3) Pro rata share.-- The pro rata share to which the
United States is equitably entitled, as determined by the
Secretary, of the net amount recovered during any quarter by
the State or any political subdivision thereof with respect
to foster care and adoption assistance furnished under this
part shall be considered an overpayment to be adjusted under
this subsection.
``(d) Allowance or Disallowance of Claim.--
``(1) In general.--Within 60 days after receipt of a State
claim for expenditures pursuant to subsection (b)(1), the
Secretary shall allow, disallow, or defer such claim.
``(2) Notice.--Within 15 days after a decision to defer a
State claim, the Secretary shall notify the State of the
reasons for the deferral and of the additional information
necessary to determine the allowability of the claim.
``(3) Decision.--Within 90 days after receiving such
necessary information (in readily reviewable form), the
Secretary shall--
``(A) disallow the claim, if able to complete the review
and determine that the claim is not allowable; or
``(B) in any other case, allow the claim, subject to
disallowance (as necessary)--
``(i) upon completion of the review, if it is determined
that the claim is not allowable; or
``(ii) on the basis of findings of an audit or financial
management review.''.
(f) Definitions.--Section 475 of such Act (42 U.S.C. 675)
is amended to read as follows:
``SEC. 475. DEFINITIONS.
For definitions of terms used in this part, see section
426.''.
(g) Technical Assistance; Data Collection and Evaluation.--
Part E of title IV of such Act is amended by striking section
476.
(h) Independent Living Initiatives.--Part E of title IV of
such Act (42 U.S.C. 670 et seq.), as amended by subsection
(g) of this section, is amended--
(1) by redesignating section 477 as section 476; and
(2) by amending section 476, as so redesignated, to read as
follows:
``SEC. 476. REQUIREMENTS FOR INDEPENDENT LIVING PROGRAMS.
``(a) Payments for Independent Living Programs.--
``(1) In general.--Payments shall be made in accordance
with this section for the purpose of assisting States and
localities in establishing and carrying out programs designed
to assist children described in paragraph (2) who have
attained age 16 in making the transition from foster care to
independent living. Any State which provides for the
establishment and carrying out of one or more such programs
in accordance with this section for a fiscal year shall be
entitled to receive payments under this section for such
fiscal year, in an amount determined under subsection (e).
``(2) Program requirements.--A program established and
carried out under paragraph (1)--
``(A) shall be designed to assist children with respect to
whom foster care maintenance payments are being made by the
State under this part;
``(B) may at the option of the State also include any or
all other children in foster care under the responsibility of
the State; and
``(C) may at the option of the State also include any child
who has not attained age 21 to whom foster care maintenance
payments were previously made by a State under this part and
whose payments were discontinued on or after the date such
child attained age 16, and any child who previously was in
foster care described in subparagraph (B) and for whom such
care was discontinued on or after the date such child
attained age 16; and a written transitional independent
living plan of the type described in subsection (d)(6) shall
be developed for such child as a part of such program.
``(b) Use of Funds.--Payment under this section shall be
made to the State, and shall be used for the purpose of
conducting and providing in accordance with this section
(directly or under contracts with local governmental entities
or private nonprofit organizations) the activities and
services required to carry out the program or programs
involved.
``(c) Submission of Program Description and Assurances.--In
order for a State to receive payments under this section for
any fiscal year, the State, prior to February 1 of such
fiscal year, must submit to the Secretary, in such manner and
form as the Secretary may prescribe, a description of the
program together with satisfactory assurances that the
program will be operated in an effective and efficient manner
and will otherwise meet the requirements of this section.
``(d) Program Objectives.--In carrying out the purpose
described in subsection (a), it shall be the objective of
each program established under this section to help the
individuals participating in such program to prepare to live
independently upon leaving foster care. Such programs may
include (subject to the availability of funds) programs to--
``(1) enable participants to seek a high school diploma or
its equivalent or to take part in appropriate vocational
training;
``(2) provide training in daily living skills, budgeting,
locating and maintaining housing, and career planning;
``(3) provide for individual and group counseling;
``(4) integrate and coordinate services otherwise available
to participants;
``(5) provide for the establishment of outreach programs
designed to attract individuals who are eligible to
participate in the program;
``(6) provide each participant a written transitional
independent living plan which
[[Page H7896]]
shall be based on an assessment of his needs, and which shall
be incorporated into his case plan, as defined in section
426(3); and
``(7) provide participants with other services and
assistance designed to improve their transition to
independent living.
``(e) Determination of Payments.--
``(1) Basic amount.--
``(A) In general.--The basic amount to which a State shall
be entitled under section 474(a)(4) for a fiscal year shall
be an amount which bears the same ratio to the basic ceiling
for such fiscal year as such State's average number of
children receiving foster care maintenance payments under
part E in fiscal year 1984 bore to the total of the average
number of children receiving such payments under such part
for all States for fiscal year 1984.
``(B) Maximum additional amount.--The maximum additional
amount to which a State shall be entitled under section
474(a)(4) for a fiscal year shall be an amount which bears
the same ratio to the additional ceiling for such fiscal year
as the basic amount of such State bears to $45,000,000.
``(C) Definitions.--For purposes of this section:
``(i) Basic ceiling.--The term `basic ceiling' means, for
any fiscal year, $45,000,000.
``(ii) Additional ceiling.--The term `additional ceiling'
means, for any fiscal year, $25,000,000.
``(2) Reallocation of funds.--If any State does not apply
for funds under this section for any fiscal year within the
time provided in subsection (c), the funds to which such
State would have been entitled for such fiscal year shall be
reallocated to one or more other States on the basis of their
relative need for additional payments under this section (as
determined by the Secretary).
``(3) Supplement to other funds.--Any amounts payable to
States under this section shall be in addition to amounts
payable to States under paragraphs (1), (2), and (3) of
section 474(a), and shall supplement and not replace any
other funds which may be available for the same general
purposes in the localities involved.
``(f) Limitation on Use of Funds.--Payments made to a State
under this section for any fiscal year--
``(1) shall be used only for the specific purposes
described in this section;
``(2) may not be used for the provision of room or board;
``(3) may be made on an estimated basis in advance of the
determination of the exact amount, with appropriate
subsequent adjustments to take account of any error in the
estimates; and
``(4) shall be expended by such State in such fiscal year
or in the succeeding fiscal year.
``(g) Reporting Requirements.--Not later than the first
January 1 following the end of each fiscal year, each State
shall submit to the Secretary a report on the programs
carried out during such fiscal year with the amounts received
under this section. Such report shall be in such form and
contain such information as may be necessary to provide an
accurate description of such activities, to provide a
complete record of the purposes for which the funds were
spent, and to indicate the extent to which the expenditure
of such funds succeeded in accomplishing the purpose
described in subsection (a).
``(h) Assistance Not Considered Income or Resources.--
Notwithstanding any other provision of this title, payments
made and services provided to participants in a program under
this section, as a direct consequence of their participation
in such program, shall not be considered as income or
resources for purposes of determining eligibility (or the
eligibility of any other persons) for assistance under the
State's plan approved under this part or part A, or for
purposes of determining the level of such assistance.''.
(i) Collection of Data Relating to Adoption and Foster
Care.--Part E of title IV of such Act (42 U.S.C. 670 et seq.)
is amended--
(1) by redesignating section 479 as section 477; and
(2) by amending section 477, as so redesignated, to read as
follows:
``SEC. 477. COLLECTION OF DATA RELATING TO ADOPTION AND
FOSTER CARE.
``For requirements with respect to the collection of data
relating to adoption and foster care, see section 424.''.
Subchapter C--Miscellaneous
SEC. 4721. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR
TECHNICAL AND CONFORMING AMENDMENTS.
Not later than 90 days after the date of the enactment of
this chapter, the Secretary of Health and Human Services, in
consultation, as appropriate, with the heads of other Federal
agencies, shall submit to the appropriate committees of
Congress a legislative proposal providing for such technical
and conforming amendments in the law as are required by the
provisions of this chapter.
SEC. 4722. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF
CHILDREN.
It is the sense of the Congress that--
(1) too many children who wish to be adopted are spending
inordinate amounts of time in foster care;
(2) there is an urgent need for States to increase the
number of waiting children being adopted in a timely and
lawful manner;
(3) studies have shown that States spend an excess of
$15,000 each year on each special needs child in foster care,
and would save significant amounts of money if they offered
incentives to families to adopt special needs children;
(4) States should allocate sufficient funds under this
subtitle for adoption assistance and medical assistance to
encourage more families to adopt children who otherwise would
languish in the foster care system for a period that many
experts consider detrimental to their development;
(5) States should offer incentives for families that adopt
special needs children to make adoption more affordable for
middle-class families;
(6) when it is necessary for a State to remove a child from
the home of the child's biological parents, the State should
strive--
(A) to provide the child with a single foster care
placement and a single coordinated case team; and
(B) to conclude an adoption of the child, when adoption is
the goal of the child and the State, within one year of the
child's placement in foster care; and
(7) States should participate in local, regional, or
national programs to enable maximum visibility of waiting
children to potential parents. Such programs should include a
nationwide, interactive computer network to disseminate
information on children eligible for adoption to help match
them with families around the country.
SEC. 4723. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.
(a) State Plan Requirements.--Section 422(a) of the Social
Security Act (42 U.S.C 622(a)), as added by section 4701 of
this Act, is amended by adding at the end the following:
``(15) Certification regarding removal of barriers to
interethnic adoption.--A certification that, not later than
January 1, 1997, the State has in effect such laws and
procedures as may be necessary to ensure that neither the
State nor any other entity in the State that receives funds
from the Federal Government and is involved in adoption or
foster care placements may--
``(A) deny to any person the opportunity to become an
adoptive or a foster parent, on the basis of the race, color,
or national origin of the person, or of the child, involved;
or
``(B) delay or deny the placement of a child for adoption
or into foster care, on the basis of the race, color, or
national origin of the adoptive or foster parent, or the
child, involved.''.
(b) Enforcement.--Section 423(e) of such Act (42 U.S.C.
623(e)), as added by section 4701 of this Act, is amended by
redesignating paragraphs (5), (6), and (7) as paragraphs (6),
(7), and (8), respectively, and by inserting after paragraph
(4) the following:
``(5) Penalty for failure to remove barriers to interethnic
adoption.--
``(A) Reduction of payments to the state.--If a State's
program operated under this part is found, as a result of a
review conducted under section 1123, to have violated section
422(a)(15) during a quarter with respect to any person, then,
notwithstanding any regulations promulgated under section
1123(b)(3), the Secretary shall reduce the amount otherwise
payable to the State under this part, for the quarter and for
each subsequent quarter before the 1st quarter for which the
State program is found, as a result of such a review, not to
have violated section 422(a)(15) with respect to any person,
by--
``(i) 2 percent of such otherwise payable amount, in the
case of the 1st such finding with respect to the State;
``(ii) 5 percent of such otherwise payable amount, in the
case of the 2nd such finding with respect to the State; or
``(iii) 10 percent of such otherwise payable amount, in the
case of the 3rd or subsequent such finding with respect to
the State.
``(B) Return of funds paid to other violators.--Any other
entity which is in a State that receives funds under this
part and which violates section 422(a)(15) during a quarter
with respect to any person shall remit to the Secretary all
funds that were paid by the State to the entity during the
quarter from such funds.
``(C) Private cause of action.--
``(i) In general.--Any individual who is aggrieved by a
violation of section 422(a)(15) by a State or other entity
may bring an action seeking relief from the State or other
entity in any United States district court.
``(ii) Limitation.--An action under this subparagraph may
not be brought more than 2 years after the date the alleged
violation occurred.
``(D) No effect on the indian child welfare act of 1978.--
This paragraph shall not be construed to affect the
application of the Indian Child Welfare Act of 1978.''.
(c) Civil Rights.--
(1) Prohibited conduct.--A person or government that is
involved in adoption or foster care placements may not--
(A) deny to any individual the opportunity to become an
adoptive or a foster parent, on the basis of the race, color,
or national origin of the individual, or of the child,
involved; or
(B) delay or deny the placement of a child for adoption or
into foster care, on the basis of the race, color, or
national origin of the adoptive or foster parent, or the
child, involved.
(2) Enforcement.--Noncompliance with paragraph (1) is
deemed a violation of title VI of the Civil Rights Act of
1964.
(3) No effect on the indian child welfare act of 1978.--
This subsection shall not be construed to affect the
application of the Indian Child Welfare Act of 1978.
(d) Conforming Repeal.--Section 553 of the Howard M.
Metzenbaum Multiethnic
[[Page H7897]]
Placement Act of 1994 (42 U.S.C. 5115a) is repealed.
SEC. 4724. EFFECTIVE DATE; TRANSITION RULES.
(a) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
chapter and the amendments made by this chapter shall be
effective on and after October 1, 1996.
(2) Exception.--Section 425 of the Social Security Act, as
added by section 4701 of this Act, shall take effect on the
date of the enactment of this chapter.
(3) Temporary redesignation of section 425.--During the
period beginning on the date of the enactment of this chapter
and ending on October 1, 1996, section 425 of the Social
Security Act, as added by section 4701 of this Act, is
redesignated as section 425A.
(b) Transition Rules.--
(1) Claims, actions, and proceedings.--The amendments made
by this chapter shall not apply with respect to--
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services
provided before the effective date of this chapter under the
provisions amended; and
(B) administrative actions and proceedings commenced before
such date, or authorized before such date to be commenced,
under such provisions.
(2) Closing out account for those programs terminated or
substantially modified by this chapter.--In closing out
accounts, Federal and State officials may use scientifically
acceptable statistical sampling techniques. Claims made under
programs which are repealed or substantially amended in this
chapter and which involve State expenditures in cases where
assistance or services were provided during a prior fiscal
year, shall be treated as expenditures during fiscal year
1995 for purposes of reimbursement even if payment was made
by a State on or after October 1, 1995. States shall complete
the filing of all claims no later than September 30, 1997.
Federal department heads shall--
(A) use the single audit procedure to review and resolve
any claims in connection with the closeout of programs; and
(B) reimburse States for any payments made for assistance
or services provided during a prior fiscal year from funds
for fiscal year 1995, rather than the funds authorized by
this chapter.
CHAPTER 2--CHILD AND FAMILY SERVICES BLOCK GRANT
SEC. 4751. CHILD AND FAMILY SERVICES BLOCK GRANT.
The Child Abuse Prevention and Treatment Act (42 U.S.C.
5101 et seq.) is amended to read as follows:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Child and Family Services
Block Grant Act of 1996'.
``SEC. 2. FINDINGS.
``The Congress finds the following:
``(1) Each year, close to 1,000,000 American children are
victims of abuse and neglect.
``(2) Many of these children and their families fail to
receive adequate protection or treatment.
``(3) The problem of child abuse and neglect requires a
comprehensive approach that--
``(A) integrates the work of social service, legal, health,
mental health, education, and substance abuse agencies and
organizations;
``(B) strengthens coordination among all levels of
government, and with private agencies, civic, religious, and
professional organizations, and individual volunteers;
``(C) emphasizes the need for abuse and neglect prevention,
assessment, investigation, and treatment at the neighborhood
level;
``(D) ensures properly trained and support staff with
specialized knowledge, to carry out their child protection
duties; and
``(E) is sensitive to ethnic and cultural diversity.
``(4) The child protection system should be comprehensive,
child-centered, family-focused, and community-based, should
incorporate all appropriate measures to prevent the
occurrence or recurrence of child abuse and neglect, and
should promote physical and psychological recovery and social
reintegration in an environment that fosters the health,
safety, self-respect, and dignity of the child.
``(5) The Federal Government should provide leadership and
assist communities in their child and family protection
efforts by--
``(A) generating and sharing knowledge relevant to child
and family protection, including the development of models
for service delivery;
``(B) strengthening the capacity of States to assist
communities;
``(C) helping communities to carry out their child and
family protection plans by promoting the competence of
professional, paraprofessional, and volunteer resources; and
``(D) providing leadership to end the abuse and neglect of
the Nation's children and youth.
``SEC. 3. PURPOSES.
``The purposes of this Act are the following:
``(1) To assist each State in improving the child
protective service systems of such State by--
``(A) improving risk and safety assessment tools and
protocols;
``(B) developing, strengthening, and facilitating training
opportunities for individuals who are mandated to report
child abuse or neglect or otherwise overseeing,
investigating, prosecuting, or providing services to children
and families who are at risk of abusing or neglecting their
children; and
``(C) developing, implementing, or operating information,
education, training, or other programs designed to assist and
provide services for families of disabled infants with life-
threatening conditions.
``(2) To support State efforts to develop, operate, expand
and enhance a network of community-based, prevention-focused,
family resource and support programs that are culturally
competent and that coordinate resources among existing
education, vocational rehabilitation, disability, respite,
health, mental health, job readiness, self-sufficiency, child
and family development, community action, Head Start, child
care, child abuse and neglect prevention, juvenile justice,
domestic violence prevention and intervention, housing, and
other human service organizations within the State.
``(3) To facilitate the elimination of barriers to adoption
and to provide permanent and loving home environments for
children who would benefit from adoption, particularly
children with special needs, including disabled infants with
life-threatening conditions, by--
``(A) promoting model adoption legislation and procedures
in the States and territories of the United States in order
to eliminate jurisdictional and legal obstacles to adoption;
``(B) providing a mechanism for the Department of Health
and Human Services to--
``(i) promote quality standards for adoption services,
preplacement, post-placement, and post-legal adoption
counseling, and standards to protect the rights of children
in need of adoption;
``(ii) maintain a national adoption information exchange
system to bring together children who would benefit from
adoption and qualified prospective adoptive parents who are
seeking such children, and conduct national recruitment
efforts in order to reach prospective parents for children
awaiting adoption; and
``(iii) demonstrate expeditious ways to free children for
adoption for whom it has been determined that adoption is the
appropriate plan; and
``(C) facilitating the identification and recruitment of
foster and adoptive families that can meet children's needs.
``(4) To respond to the needs of children, in particular
those who are drug exposed or afflicted with Acquired Immune
Deficiency Syndrome (AIDS), by supporting activities aimed at
preventing the abandonment of children, providing support to
children and their families, and facilitating the recruitment
and training of health and social service personnel.
``(5) To carry out any other activities as the Secretary
determines are consistent with this Act.
``SEC. 4. DEFINITIONS.
``As used in this Act:
``(1) Child.--The term `child' means a person who has not
attained the lesser of--
``(A) the age of 18; or
``(B) except in the case of sexual abuse, the age specified
by the child protection law of the State in which the child
resides.
``(2) Child abuse and neglect.--The term `child abuse and
neglect' means, at a minimum, any recent act or failure to
act on the part of a parent or caretaker, which results in
death, serious physical or emotional harm, sexual abuse or
exploitation, or an act or failure to act which presents an
imminent risk of serious harm.
``(3) Family resource and support programs.--The term
`family resource and support program' means a community-
based, prevention-focused entity that--
``(A) provides, through direct service, the core services
required under this Act, including--
``(i) parent education, support and leadership services,
together with services characterized by relationships between
parents and professionals that are based on equality and
respect, and designed to assist parents in acquiring
parenting skills, learning about child development, and
responding appropriately to the behavior of their children;
``(ii) services to facilitate the ability of parents to
serve as resources to one another (such as through mutual
support and parent self-help groups);
``(iii) early developmental screening of children to assess
any needs of children, and to identify types of support that
may be provided;
``(iv) outreach services provided through voluntary home
visits and other methods to assist parents in becoming aware
of and able to participate in family resources and support
program activities;
``(v) community and social services to assist families in
obtaining community resources; and
``(vi) followup services;
``(B) provides, or arranges for the provision of, other
core services through contracts or agreements with other
local agencies; and
``(C) provides access to optional services, directly or by
contract, purchase of service, or interagency agreement,
including--
``(i) child care, early childhood development and early
intervention services;
``(ii) self-sufficiency and life management skills
training;
``(iii) education services, such as scholastic tutoring,
literacy training, and General Educational Degree services;
``(iv) job readiness skills;
``(v) child abuse and neglect prevention activities;
``(vi) services that families with children with
disabilities or special needs may require;
[[Page H7898]]
``(vii) community and social service referral;
``(viii) peer counseling;
``(ix) referral for substance abuse counseling and
treatment; and
``(x) help line services.
``(4) Indian tribe and tribal organization.--The terms
`Indian tribe' and `tribal organization' shall have the same
meanings given such terms in subsections (e) and (l),
respectively, of section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(e) and (l)).
``(5) Respite services.--The term `respite services' means
short-term care services provided in the temporary absence of
the regular caregiver (parent, other relative, foster parent,
adoptive parent, or guardian) to children who--
``(A) are in danger of abuse or neglect;
``(B) have experienced abuse or neglect; or
``(C) have disabilities, chronic, or terminal illnesses.
Such services shall be provided within or outside the home of
the child, be short-term care (ranging from a few hours to a
few weeks of time, per year), and be intended to enable the
family to stay together and to keep the child living in the
home and community of the child.
``(6) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services.
``(7) Sexual abuse.--The term `sexual abuse' includes--
``(A) the employment, use, persuasion, inducement,
enticement, or coercion of any child to engage in, or assist
any other person to engage in, any sexually explicit conduct
or simulation of such conduct for the purpose of producing a
visual depiction of such conduct; or
``(B) the rape, molestation, prostitution, or other form of
sexual exploitation of children, or incest with children.
``(8) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the Trust
Territory of the Pacific Islands.
``(9) Withholding of medically indicated treatment.--The
term `withholding of medically indicated treatment' means the
failure to respond to the infant's life-threatening
conditions by providing treatment (including appropriate
nutrition, hydration, and medication) which, in the treating
physician's or physicians' reasonable medical judgment, will
be most likely to be effective in ameliorating or correcting
all such conditions, except that the term does not include
the failure to provide treatment (other than appropriate
nutrition, hydration, or medication) to an infant when, in
the treating physician's or physicians' reasonable medical
judgment--
``(A) the infant is chronically and irreversibly comatose;
``(B) the provision of such treatment would--
``(i) merely prolong dying;
``(ii) not be effective in ameliorating or correcting all
of the infant's life-threatening conditions; or
``(iii) otherwise be futile in terms of the survival of the
infant; or
``(C) the provision of such treatment would be virtually
futile in terms of the survival of the infant and the
treatment itself under such circumstances would be inhumane.
``TITLE I--GENERAL BLOCK GRANT
``SEC. 101. CHILD AND FAMILY SERVICES BLOCK GRANTS.
``(a) Eligibility.--The Secretary shall award grants to
eligible States that file a State plan that is approved under
section 102 and that otherwise meet the eligibility
requirements for grants under this title.
``(b) Amount of Grant.--The amount of a grant made to each
State under subsection (a) for a fiscal year shall be based
on the population of children under the age of 18 residing in
each State that applies for a grant under this section.
``(c) Use of Amounts.--Amounts received by a State under a
grant awarded under subsection (a) shall be used to carry out
the purposes described in section 3.
``SEC. 102. ELIGIBLE STATES.
``(a) In General.--As used in this title, the term
`eligible State' means a State that has submitted to the
Secretary, not later than October 1, 1996, and every 3 years
thereafter, a plan which has been signed by the chief
executive officer of the State and that includes the
following:
``(1) Outline of child protection program.--A written
document that outlines the activities the State intends to
conduct to achieve the purpose of this title, including the
procedures to be used for--
``(A) receiving and assessing reports of child abuse or
neglect;
``(B) investigating such reports;
``(C) with respect to families in which abuse or neglect
has been confirmed, providing services or referral for
services for families and children where the State makes a
determination that the child may safely remain with the
family;
``(D) protecting children by removing them from dangerous
settings and ensuring their placement in a safe environment;
``(E) providing training for individuals mandated to report
suspected cases of child abuse or neglect;
``(F) protecting children in foster care;
``(G) promoting timely adoptions;
``(H) protecting the rights of families, using adult
relatives as the preferred placement for children separated
from their parents where such relatives meet the relevant
State child protection standards; and
``(I) providing services to individuals, families, or
communities, either directly or through referral, that are
aimed at preventing the occurrence of child abuse and
neglect.
``(2) Certification of state law requiring the reporting of
child abuse and neglect.--A certification that the State has
in effect laws that require public officials and other
professionals to report, in good faith, actual or suspected
instances of child abuse or neglect.
``(3) Certification of procedures for screening, safety
assessment, and prompt investigation.--A certification that
the State has in effect procedures for receiving and
responding to reports of child abuse or neglect, including
the reports described in paragraph (2), and for the immediate
screening, safety assessment, and prompt investigation of
such reports.
``(4) Certification of state procedures for removal and
placement of abused or neglected children.--A certification
that the State has in effect procedures for the removal from
families and placement of abused or neglected children and of
any other child in the same household who may also be in
danger of abuse or neglect.
``(5) Certification of provisions for immunity from
prosecution.--A certification that the State has in effect
laws requiring immunity from prosecution under State and
local laws and regulations for individuals making good faith
reports of suspected or known instances of child abuse or
neglect.
``(6) Certification of provisions and procedures relating
to appeals.--A certification that not later than 2 years
after the date of the enactment of this Act, the State shall
have laws and procedures in effect affording individuals an
opportunity to appeal an official finding of abuse or
neglect.
``(7) Certification of state procedures for developing and
reviewing written plans for permanent placement of removed
children.--A certification that the State has in effect
procedures for ensuring that a written plan is prepared for
children who have been removed from their families. Such plan
shall specify the goals for achieving a permanent placement
for the child in a timely fashion, for ensuring that the
written plan is reviewed every 6 months (until such placement
is achieved), and for ensuring that information about such
children is collected regularly and recorded in case records,
and include a description of such procedures.
``(8) Certification of state program to provide independent
living services.--A certification that the State has in
effect a program to provide independent living services, for
assistance in making the transition to self-sufficient
adulthood, to individuals in the child protection program of
the State who are 16, but who are not 20 (or, at the option
of the State, 22), years of age, and who do not have a family
to which to be returned.
``(9) Certification of state procedures to respond to
reporting of medical neglect of disabled infants.--
``(A) In general.--A certification that the State has in
place for the purpose of responding to the reporting of
medical neglect of infants (including instances of
withholding of medically indicated treatment from disabled
infants with life-threatening conditions), procedures or
programs, or both (within the State child protective services
system), to provide for--
``(i) coordination and consultation with individuals
designated by and within appropriate health-care facilities;
``(ii) prompt notification by individuals designated by and
within appropriate health-care facilities of cases of
suspected medical neglect (including instances of withholding
of medically indicated treatment from disabled infants with
life-threatening conditions); and
``(iii) authority, under State law, for the State child
protective service to pursue any legal remedies, including
the authority to initiate legal proceedings in a court of
competent jurisdiction, as may be necessary to prevent the
withholding of medically indicated treatment from disabled
infants with life-threatening conditions.
``(B) Withholding of medically indicated treatment.--As
used in subparagraph (A), the term `withholding of medically
indicated treatment' means the failure to respond to the
infant's life-threatening conditions by providing treatment
(including appropriate nutrition, hydration, and medication)
which, in the treating physician's or physicians' reasonable
medical judgment, will be most likely to be effective in
ameliorating or correcting all such conditions, except that
such term does not include the failure to provide treatment
(other than appropriate nutrition, hydration, or medication)
to an infant when, in the treating physician's or physicians'
reasonable medical judgment--
``(i) the infant is chronically and irreversibly comatose;
``(ii) the provision of such treatment would--
``(I) merely prolong dying;
``(II) not be effective in ameliorating or correcting all
of the infant's life-threatening conditions; or
``(III) otherwise be futile in terms of the survival of the
infant; or
``(iii) the provision of such treatment would be virtually
futile in terms of the survival of the infant and the
treatment itself
[[Page H7899]]
under such circumstances would be inhumane.
``(10) Identification of child protection goals.--The
quantitative goals of the State child protection program.
``(11) Certification of child protection standards.--With
respect to fiscal years beginning on or after April 1, 1996,
a certification that the State--
``(A) has completed an inventory of all children who,
before the inventory, had been in foster care under the
responsibility of the State for 6 months or more, which
determined--
``(i) the appropriateness of, and necessity for, the foster
care placement;
``(ii) whether the child could or should be returned to the
parents of the child or should be freed for adoption or other
permanent placement; and
``(iii) the services necessary to facilitate the return of
the child or the placement of the child for adoption or legal
guardianship;
``(B) is operating, to the satisfaction of the Secretary--
``(i) a statewide information system from which can be
readily determined the status, demographic characteristics,
location, and goals for the placement of every child who is
(or, within the immediately preceding 12 months, has been) in
foster care;
``(ii) a case review system for each child receiving foster
care under the supervision of the State;
``(iii) a service program designed to help children--
``(I) where appropriate, return to families from which they
have been removed; or
``(II) be placed for adoption, with a legal guardian, or if
adoption or legal guardianship is determined not to be
appropriate for a child, in some other planned, permanent
living arrangement; and
``(iv) a preplacement preventive services program designed
to help children at risk for foster care placement remain
with their families; and
``(C)(i) has reviewed (or not later than October 1, 1997,
will review) State policies and administrative and judicial
procedures in effect for children abandoned at or shortly
after birth (including policies and procedures providing for
legal representation of such children); and
``(ii) is implementing (or not later than October 1, 1997,
will implement) such policies and procedures as the State
determines, on the basis of the review described in clause
(i), to be necessary to enable permanent decisions to be made
expeditiously with respect to the placement of such children.
``(12) Certification of reasonable efforts before placement
of children in foster care.--A certification that the State
in each case will--
``(A) make reasonable efforts prior to the placement of a
child in foster care, to prevent or eliminate the need for
removal of the child from the child's home, and to make it
possible for the child to return home; and
``(B) with respect to families in which abuse or neglect
has been confirmed, provide services or referral for services
for families and children where the State makes a
determination that the child may safely remain with the
family.
``(13) Certification of confidentiality and requirements
for information disclosure.--
``(A) In general.--A certification that the State has in
effect and operational--
``(i) requirements ensuring that reports and records made
and maintained pursuant to the purposes of this part shall
only be made available to--
``(I) individuals who are the subject of the report;
``(II) Federal, State, or local government entities, or any
agent of such entities, having a need for such information in
order to carry out their responsibilities under law to
protect children from abuse and neglect;
``(III) child abuse citizen review panels;
``(IV) child fatality review panels;
``(V) a grand jury or court, upon a finding that
information in the record is necessary for the determination
of an issue before the court or grand jury; and
``(VI) other entities or classes of individuals statutorily
authorized by the State to receive such information pursuant
to a legitimate State purpose; and
``(ii) provisions that allow for public disclosure of the
findings or information about cases of child abuse or neglect
that have resulted in a child fatality or near fatality.
``(B) Limitation.--Disclosures made pursuant to clause (i)
or (ii) shall not include the identifying information
concerning the individual initiating a report or complaint
alleging suspected instances of child abuse or neglect.
``(C) Definition.--For purposes of this paragraph, the term
`near fatality' means an act that, as certified by a
physician, places the child in serious or critical condition.
``(b) Determinations.--The Secretary shall determine
whether a plan submitted pursuant to subsection (a) contains
the material required by subsection (a), other than the
material described in paragraph (9) of such subsection. The
Secretary may not require a State to include in such a plan
any material not described in subsection (a).
``SEC. 103. DATA COLLECTION AND REPORTING.
``(a) National Child Abuse and Neglect Data System.--The
Secretary shall establish a national data collection and
analysis program--
``(1) which, to the extent practicable, coordinates
existing State child abuse and neglect reports and which
shall include--
``(A) standardized data on substantiated, as well as false,
unfounded, or unsubstantiated reports; and
``(B) information on the number of deaths due to child
abuse and neglect; and
``(2) which shall collect, compile, analyze, and make
available State child abuse and neglect reporting information
which, to the extent practical, is universal and case-
specific and integrated with other case-based foster care and
adoption data collected by the Secretary.
``(b) Adoption and Foster Care and Analysis and Reporting
Systems.--The Secretary shall implement a system for the
collection of data relating to adoption and foster care in
the United States. Such data collection system shall--
``(1) avoid unnecessary diversion of resources from
agencies responsible for adoption and foster care;
``(2) assure that any data that is collected is reliable
and consistent over time and among jurisdictions through the
use of uniform definitions and methodologies;
``(3) provide comprehensive national information with
respect to--
``(A) the demographic characteristics of adoptive and
foster children and their biological and adoptive or foster
parents;
``(B) the status of the foster care population (including
the number of children in foster care, length of placement,
type of placement, availability for adoption, and goals for
ending or continuing foster care);
``(C) the number and characteristics of--
``(i) children placed in or removed from foster care;
``(ii) children adopted or with respect to whom adoptions
have been terminated; and
``(iii) children placed in foster care outside the State
which has placement and care responsibility; and
``(D) the extent and nature of assistance provided by
Federal, State, and local adoption and foster care programs
and the characteristics of the children with respect to whom
such assistance is provided; and
``(4) utilize appropriate requirements and incentives to
ensure that the system functions reliably throughout the
United States.
``(c) Additional Information.--The Secretary may require
the provision of additional information under the data
collection system established under subsection (b) if the
addition of such information is agreed to by a majority of
the States.
``(d) Annual Report by the Secretary.--Within 6 months
after the end of each fiscal year, the Secretary shall
prepare a report based on information provided by the States
for the fiscal year pursuant to this section, and shall make
the report and such information available to the Congress and
the public.
``TITLE II--RESEARCH, DEMONSTRATIONS, TRAINING, AND TECHNICAL
ASSISTANCE
``SEC. 201. RESEARCH GRANTS.
``(a) In General.--The Secretary, in consultation with
appropriate Federal officials and recognized experts in the
field, shall award grants or contracts for the conduct of
research in accordance with subsection (b).
``(b) Research.--Research projects to be conducted using
amounts received under this section--
``(1) shall be designed to provide information to better
protect children from abuse or neglect and to improve the
well-being of abused or neglected children, with at least a
portion of any such research conducted under a project being
field initiated;
``(2) shall at a minimum, focus on--
``(A) the nature and scope of child abuse and neglect;
``(B) the causes, prevention, assessment, identification,
treatment, cultural and socioeconomic distinctions, and the
consequences of child abuse and neglect;
``(C) appropriate, effective and culturally sensitive
investigative, administrative, and judicial procedures with
respect to cases of child abuse; and
``(D) the national incidence of child abuse and neglect,
including--
``(i) the extent to which incidents of child abuse are
increasing or decreasing in number and severity;
``(ii) the incidence of substantiated and unsubstantiated
reported child abuse cases;
``(iii) the number of substantiated cases that result in a
judicial finding of child abuse or neglect or related
criminal court convictions;
``(iv) the extent to which the number of unsubstantiated,
unfounded and false reported cases of child abuse or neglect
have contributed to the inability of a State to respond
effectively to serious cases of child abuse or neglect;
``(v) the extent to which the lack of adequate resources
and the lack of adequate training of reporters have
contributed to the inability of a State to respond
effectively to serious cases of child abuse and neglect;
``(vi) the number of unsubstantiated, false, or unfounded
reports that have resulted in a child being placed in
substitute care, and the duration of such placement;
``(vii) the extent to which unsubstantiated reports return
as more serious cases of child abuse or neglect;
``(viii) the incidence and prevalence of physical, sexual,
and emotional abuse and physical and emotional neglect in
substitute care;
``(ix) the incidence and outcomes of abuse allegations
reported within the context of divorce, custody, or other
family court proceedings, and the interaction between this
[[Page H7900]]
venue and the child protective services system; and
``(x) the cases of children reunited with their families or
receiving family preservation services that result in
subsequent substantiated reports of child abuse and neglect,
including the death of the child; and
``(3) may include the appointment of an advisory board to--
``(A) provide recommendations on coordinating Federal,
State, and local child abuse and neglect activities at the
State level with similar activities at the State and local
level pertaining to family violence prevention;
``(B) consider specific modifications needed in State laws
and programs to reduce the number of unfounded or
unsubstantiated reports of child abuse or neglect while
enhancing the ability to identify and substantiate legitimate
cases of abuse or neglect which place a child in danger; and
``(C) provide recommendations for modifications needed to
facilitate coordinated national and Statewide data collection
with respect to child protection and child welfare.
``SEC. 202. NATIONAL CLEARINGHOUSE FOR INFORMATION RELATING
TO CHILD ABUSE.
``(a) Establishment.--The Secretary shall, through the
Department of Health and Human Services, or by one or more
contracts of not less than 3 years duration provided through
a competition, establish a national clearinghouse for
information relating to child abuse.
``(b) Functions.--The Secretary shall, through the
clearinghouse established by subsection (a)--
``(1) maintain, coordinate, and disseminate information on
all programs, including private programs, that show promise
of success with respect to the prevention, assessment,
identification, and treatment of child abuse and neglect;
``(2) maintain and disseminate information relating to--
``(A) the incidence of cases of child abuse and neglect in
the United States;
``(B) the incidence of such cases in populations determined
by the Secretary under section 105(a)(1) of the Child Abuse
Prevention, Adoption, and Family Services Act of 1988 (as
such section was in effect on the day before the date of
enactment of this Act); and
``(C) the incidence of any such cases related to alcohol or
drug abuse;
``(3) disseminate information related to data collected and
reported by States pursuant to section 103;
``(4) compile, analyze, and publish a summary of the
research conducted under section 201; and
``(5) solicit public comment on the components of such
clearinghouse.
``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.
``(a) Awarding of General Grants.--The Secretary may make
grants to, and enter into contracts with, public and
nonprofit private agencies or organizations (or combinations
of such agencies or organizations) for the purpose of
developing, implementing, and operating time limited,
demonstration programs and projects for the following
purposes:
``(1) Innovative programs and projects.--The Secretary may
award grants to public agencies that demonstrate innovation
in responding to reports of child abuse and neglect including
programs of collaborative partnerships between the State
child protective service agency, community social service
agencies and family support programs, schools, churches and
synagogues, and other community agencies to allow for the
establishment of a triage system that--
``(A) accepts, screens and assesses reports received to
determine which such reports require an intensive
intervention and which require voluntary referral to another
agency, program or project;
``(B) provides, either directly or through referral, a
variety of community-linked services to assist families in
preventing child abuse and neglect; and
``(C) provides further investigation and intensive
intervention where the child's safety is in jeopardy.
``(2) Kinship care programs and projects.--The Secretary
may award grants to public entities to assist such entities
in developing or implementing procedures using adult
relatives as the preferred placement for children removed
from their home, where such relatives are determined to be
capable of providing a safe nurturing environment for the
child and where, to the maximum extent practicable, such
relatives comply with relevant State child protection
standards.
``(3) Adoption opportunities.--The Secretary may award
grants to public entities to assist such entities in
developing or implementing programs to expand opportunities
for the adoption of children with special needs.
``(4) Family resource centers.--The Secretary may award
grants to public or nonprofit private entities to provide for
the establishment of family resource programs and support
services that--
``(A) develop, expand, and enhance statewide networks of
community-based, prevention-focused centers, programs, or
services that provide comprehensive support for families;
``(B) promote the development of parental competencies and
capacities in order to increase family stability;
``(C) support the additional needs of families with
children with disabilities;
``(D) foster the development of a continuum of preventive
services for children and families through State and
community-based collaborations and partnerships (both public
and private); and
``(E) maximize funding for the financing, planning,
community mobilization, collaboration, assessment,
information and referral, startup, training and technical
assistance, information management, reporting, and evaluation
costs for establishing, operating, or expanding a statewide
network of community-based, prevention-focused family
resource and support services.
``(5) Other innovative programs.--The Secretary may award
grants to public or private nonprofit organizations to assist
such entities in developing or implementing innovative
programs and projects that show promise of preventing and
treating cases of child abuse and neglect (such as Parents
Anonymous).
``(b) Grants for Abandoned Infant Programs.--The Secretary
may award grants to public and nonprofit private entities to
assist such entities in developing or implementing
procedures--
``(1) to prevent the abandonment of infants and young
children, including the provision of services to members of
the natural family for any condition that increases the
probability of abandonment of an infant or young child;
``(2) to identify and address the needs of abandoned
infants and young children;
``(3) to assist abandoned infants and young children to
reside with their natural families or in foster care, as
appropriate;
``(4) to recruit, train, and retain foster families for
abandoned infants and young children;
``(5) to carry out residential care programs for abandoned
infants and young children who are unable to reside with
their families or to be placed in foster care;
``(6) to carry out programs of respite care for families
and foster families of infants and young children; and
``(7) to recruit and train health and social services
personnel to work with families, foster care families, and
residential care programs for abandoned infants and young
children.
``(c) Evaluation.--In making grants for demonstration
projects under this section, the Secretary shall require all
such projects to be evaluated for their effectiveness.
Funding for such evaluations shall be provided either as a
stated percentage of a demonstration grant or as a separate
grant entered into by the Secretary for the purpose of
evaluating a particular demonstration project or group of
projects.
``SEC. 204. TECHNICAL ASSISTANCE.
``(a) Child Abuse and Neglect.--
``(1) In general.--The Secretary shall provide technical
assistance under this title to States to assist such States
in planning, improving, developing, and carrying out programs
and activities relating to the prevention, assessment
identification, and treatment of child abuse and neglect.
``(2) Evaluation.--Technical assistance provided under
paragraph (1) may include an evaluation or identification
of--
``(A) various methods and procedures for the investigation,
assessment, and prosecution of child physical and sexual
abuse cases;
``(B) ways to mitigate psychological trauma to the child
victim; and
``(C) effective programs carried out by the States under
this Act.
``(b) Adoption Opportunities.--The Secretary shall provide,
directly or by grant to or contract with public or private
nonprofit agencies or organizations--
``(1) technical assistance and resource and referral
information to assist State or local governments with
termination of parental rights issues, in recruiting and
retaining adoptive families, in the successful placement of
children with special needs, and in the provision of pre- and
post-placement services, including post-legal adoption
services; and
``(2) other assistance to help State and local governments
replicate successful adoption-related projects from other
areas in the United States.
``SEC. 205. TRAINING RESOURCES.
``(a) Training Programs.--The Secretary may award grants to
public or private nonprofit organizations--
``(1) for the training of professional and paraprofessional
personnel in the fields of medicine, law, education, law
enforcement, social work, and other relevant fields who are
engaged in, or intend to work in, the field of prevention,
identification, and treatment of child abuse and neglect,
including the links between domestic violence and child
abuse;
``(2) to provide culturally specific instruction in methods
of protecting children from child abuse and neglect to
children and to persons responsible for the welfare of
children, including parents of and persons who work with
children with disabilities; and
``(3) to improve the recruitment, selection, and training
of volunteers serving in private and public nonprofit
children, youth and family service organizations in order to
prevent child abuse and neglect through collaborative
analysis of current recruitment, selection, and training
programs and development of model programs for dissemination
and replication nationally.
``(b) Dissemination of Information.--The Secretary may
provide for and disseminate
[[Page H7901]]
information relating to various training resources available
at the State and local level to--
``(1) individuals who are engaged, or who intend to engage,
in the prevention, identification, assessment, and treatment
of child abuse and neglect; and
``(2) appropriate State and local officials, including
prosecutors, to assist in training law enforcement, legal,
judicial, medical, mental health, education, and child
welfare personnel in appropriate methods of interacting
during investigative, administrative, and judicial
proceedings with children who have been subjected to abuse.
``SEC. 206. APPLICATIONS AND AMOUNTS OF GRANTS.
``(a) Requirement of Application.--The Secretary may not
make a grant to a State or other entity under this title
unless--
``(1) an application for the grant is submitted to the
Secretary;
``(2) with respect to carrying out the purpose for which
the grant is to be made, the application provides assurances
of compliance satisfactory to the Secretary; and
``(3) the application otherwise is in such form, is made in
such manner, and contains such agreements, assurances, and
information as the Secretary determines to be necessary to
carry out this title.
``(b) Amount of Grant.--The Secretary shall determine the
amount of a grant to be awarded under this title.
``SEC. 207. PEER REVIEW FOR GRANTS.
``(a) Establishment of Peer Review Process.--
``(1) In general.--The Secretary shall, in consultation
with experts in the field and other Federal agencies,
establish a formal, rigorous, and meritorious peer review
process for purposes of evaluating and reviewing applications
for grants under this title and determining the relative
merits of the projects for which such assistance is
requested. The purpose of this process is to enhance the
quality and usefulness of research in the field of child
abuse and neglect.
``(2) Requirements for members.--In establishing the
process required by paragraph (1), the Secretary shall
appoint to the peer review panels only members who are
experts in the field of child abuse and neglect or related
disciplines, with appropriate expertise in the application to
be reviewed, and who are not individuals who are officers or
employees of the Administration for Children and Families.
The panels shall meet as often as is necessary to facilitate
the expeditious review of applications for grants and
contracts under this title, but may not meet less than once a
year. The Secretary shall ensure that the peer review panel
utilizes scientifically valid review criteria and scoring
guidelines for review committees.
``(b) Review of Applications for Assistance.--Each peer
review panel established under subsection (a)(1) that reviews
any application for a grant shall--
``(1) determine and evaluate the merit of each project
described in such application;
``(2) rank such application with respect to all other
applications it reviews in the same priority area for the
fiscal year involved, according to the relative merit of all
of the projects that are described in such application and
for which financial assistance is requested; and
``(3) make recommendations to the Secretary concerning
whether the application for the project shall be approved.
The Secretary shall award grants under this title on the
basis of competitive review.
``(c) Notice of Approval.--
``(1) In general.--The Secretary shall provide grants under
this title from among the projects which the peer review
panels established under subsection (a)(1) have determined to
have merit.
``(2) Requirement of explanation.--In the instance in which
the Secretary approves an application for a program under
this title without having approved all applications ranked
above such application, the Secretary shall append to the
approved application a detailed explanation of the reasons
relied on for approving the application and for failing to
approve each pending application that is superior in merit.
``SEC. 208. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.
``(a) In General.--The Secretary shall conduct a national
study based on random samples of children who are at risk of
child abuse or neglect, or are determined by States to have
been abused or neglected, and such other research as may be
necessary.
``(b) Requirements.--The study required by subsection (a)
shall--
``(1) have a longitudinal component; and
``(2) yield data reliable at the State level for as many
States as the Secretary determines is feasible.
``(c) Preferred Contents.--In conducting the study required
by subsection (a), the Secretary should--
``(1) collect data on the child protection programs of
different small States (or different groups of such States)
in different years to yield an occasional picture of the
child protection programs of such States;
``(2) carefully consider selecting the sample from cases of
confirmed abuse or neglect; and
``(3) follow each case for several years while obtaining
information on, among other things--
``(A) the type of abuse or neglect involved;
``(B) the frequency of contact with State or local
agencies;
``(C) whether the child involved has been separated from
the family, and, if so, under what circumstances;
``(D) the number, type, and characteristics of out-of-home
placements of the child; and
``(E) the average duration of each placement.
``(d) Reports.--
``(1) In general.--From time to time, the Secretary shall
prepare reports summarizing the results of the study required
by subsection (a).
``(2) Availability.--The Secretary shall make available to
the public any report prepared under paragraph (1), in
writing or in the form of an electronic data tape.
``(3) Authority to charge fee.--The Secretary may charge
and collect a fee for the furnishing of reports under
paragraph (2).
``(4) Funding.--The Secretary shall carry out this section
using amounts made available under section 425 of the Social
Security Act.
``TITLE III--GENERAL PROVISIONS
``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
``(a) Title I.--There are authorized to be appropriated to
carry out title I, $230,000,000 for fiscal year 1996, and
such sums as may be necessary for each of the fiscal years
1997 through 2002.
``(b) Title II.--
``(1) In general.--Of the amount appropriated under
subsection (a) for a fiscal year, the Secretary shall make
available 12 percent of such amount to carry out title II
(except for sections 203 and 208).
``(2) Grants for demonstration projects.--Of the amount
made available under paragraph (1) for a fiscal year, the
Secretary shall make available not less than 40 percent of
such amount to carry out section 203.
``(c) Indian Tribes.--Of the amount appropriated under
subsection (a) for a fiscal year, the Secretary shall make
available 1 percent of such amount to provide grants and
contracts to Indian tribes and Tribal Organizations.
``(d) Availability of Appropriations.--Amounts appropriated
under subsection (a) shall remain available until expended.
``SEC. 302. GRANTS TO STATES FOR PROGRAMS RELATING TO THE
INVESTIGATION AND PROSECUTION OF CHILD ABUSE
AND NEGLECT CASES.
``(a) Grants to States.--The Secretary, in consultation
with the Attorney General, is authorized to make grants to
the States for the purpose of assisting States in developing,
establishing, and operating programs designed to improve--
``(1) the handling of child abuse and neglect cases,
particularly cases of child sexual abuse and exploitation, in
a manner which limits additional trauma to the child victim;
``(2) the handling of cases of suspected child abuse or
neglect related fatalities; and
``(3) the investigation and prosecution of cases of child
abuse and neglect, particularly child sexual abuse and
exploitation.
``(b) Eligibility Requirements.--In order for a State to
qualify for assistance under this section, such State shall--
``(1) be an eligible State under section 102;
``(2) establish a task force as provided in subsection (c);
``(3) fulfill the requirements of subsection (d);
``(4) submit annually an application to the Secretary at
such time and containing such information and assurances as
the Secretary considers necessary, including an assurance
that the State will--
``(A) make such reports to the Secretary as may reasonably
be required; and
``(B) maintain and provide access to records relating to
activities under subsection (a); and
``(5) submit annually to the Secretary a report on the
manner in which assistance received under this program was
expended throughout the State, with particular attention
focused on the areas described in paragraphs (1) through (3)
of subsection (a).
``(c) State Task Forces.--
``(1) General rule.--Except as provided in paragraph (2), a
State requesting assistance under this section shall
establish or designate, and maintain, a State
multidisciplinary task force on children's justice (hereafter
in this section referred to as `State task force') composed
of professionals with knowledge and experience relating to
the criminal justice system and issues of child physical
abuse, child neglect, child sexual abuse and exploitation,
and child maltreatment related fatalities. The State task
force shall include--
``(A) individuals representing the law enforcement
community;
``(B) judges and attorneys involved in both civil and
criminal court proceedings related to child abuse and neglect
(including individuals involved with the defense as well as
the prosecution of such cases);
``(C) child advocates, including both attorneys for
children and, where such programs are in operation, court
appointed special advocates;
``(D) health and mental health professionals;
``(E) individuals representing child protective service
agencies;
``(F) individuals experienced in working with children with
disabilities;
``(G) parents; and
``(H) representatives of parents' groups.
``(2) Existing task force.--As determined by the Secretary,
a State commission or task force established after January 1,
1983, with substantially comparable membership and functions,
may be considered the State task force for purposes of this
subsection.
[[Page H7902]]
``(d) State Task Force Study.--Before a State receives
assistance under this section, and at 3-year intervals
thereafter, the State task force shall comprehensively--
``(1) review and evaluate State investigative,
administrative and both civil and criminal judicial handling
of cases of child abuse and neglect, particularly child
sexual abuse and exploitation, as well as cases involving
suspected child maltreatment related fatalities and cases
involving a potential combination of jurisdictions, such as
interstate, Federal-State, and State-Tribal; and
``(2) make policy and training recommendations in each of
the categories described in subsection (e).
The task force may make such other comments and
recommendations as are considered relevant and useful.
``(e) Adoption of State Task Force Recommendations.--
``(1) General rule.--Subject to the provisions of paragraph
(2), before a State receives assistance under this section, a
State shall adopt recommendations of the State task force in
each of the following categories--
``(A) investigative, administrative, and judicial handling
of cases of child abuse and neglect, particularly child
sexual abuse and exploitation, as well as cases involving
suspected child maltreatment related fatalities and cases
involving a potential combination of jurisdictions, such as
interstate, Federal-State, and State-Tribal, in a manner
which reduces the additional trauma to the child victim and
the victim's family and which also ensures procedural
fairness to the accused;
``(B) experimental, model and demonstration programs for
testing innovative approaches and techniques which may
improve the prompt and successful resolution of civil and
criminal court proceedings or enhance the effectiveness of
judicial and administrative action in child abuse and neglect
cases, particularly child sexual abuse and exploitation
cases, including the enhancement of performance of court-
appointed attorneys and guardians ad litem for children; and
``(C) reform of State laws, ordinances, regulations,
protocols and procedures to provide comprehensive protection
for children from abuse, particularly child sexual abuse and
exploitation, while ensuring fairness to all affected
persons.
``(2) Exemption.--As determined by the Secretary, a State
shall be considered to be in fulfillment of the requirements
of this subsection if--
``(A) the State adopts an alternative to the
recommendations of the State task force, which carries out
the purpose of this section, in each of the categories under
paragraph (1) for which the State task force's
recommendations are not adopted; or
``(B) the State is making substantial progress toward
adopting recommendations of the State task force or a
comparable alternative to such recommendations.
``(f) Funds Available.--For grants under this section, the
Secretary shall use the amount authorized by section 1404A of
the Victims of Crime Act of 1984.
``SEC. 303. TRANSITIONAL PROVISION.
``A State or other entity that has a grant, contract, or
cooperative agreement in effect, on the date of enactment of
this Act, under the Family Resource and Support Program, the
Community-Based Family Resource Program, the Family Support
Center Program, the Emergency Child Abuse Prevention Grant
Program, the Abandoned Infants Assistance Act of 1988, or the
Temporary Child Care for Children with Disabilities and
Crisis Nurseries Programs shall continue to receive funds
under such grant, contract, or cooperative agreement, subject
to the original terms under which such funds were provided,
through the end of the applicable grant, contract, or
agreement cycle.
``SEC. 304. RULE OF CONSTRUCTION.
``(a) In General.--Nothing in this Act, or in part B or E
of title IV of the Social Security Act, shall be construed--
``(1) as establishing a Federal requirement that a parent
or legal guardian provide a child any medical service or
treatment against the religious beliefs of the parent or
legal guardian; and
``(2) to require that a State find, or to prohibit a State
from finding, abuse or neglect in cases in which a parent or
legal guardian relies solely or partially upon spiritual
means rather than medical treatment, in accordance with the
religious beliefs of the parent or legal guardian.
``(b) State Requirement.--Notwithstanding subsection (a), a
State shall have in place authority under State law to permit
the child protective service system of the State to pursue
any legal remedies, including the authority to initiate legal
proceedings in a court of competent jurisdiction, to provide
medical care or treatment for a child when such care or
treatment is necessary to prevent or remedy serious harm to
the child, or to prevent the withholding of medically
indicated treatment from children with life threatening
conditions. Except with respect to the withholding of
medically indicated treatments from disabled infants with
life threatening conditions, case by case determinations
concerning the exercise of the authority of this subsection
shall be within the sole discretion of the State.''.
SEC. 4752. REAUTHORIZATIONS.
(a) Missing Children's Assistance Act.--Section 408 of the
Missing Children's Assistance Act (42 U.S.C. 5777) is
amended--
(1) by striking ``To'' and inserting ``(a) In General.--
To''
(2) by striking ``and 1996'' and inserting ``1996, and
1997''; and
(3) by adding at the end thereof the following new
subsection:
``(b) Evaluation.--The Administrator shall use not more
than 5 percent of the amount appropriated for a fiscal year
under subsection (a) to conduct an evaluation of the
effectiveness of the programs and activities established and
operated under this title.''.
(b) Victims of Child Abuse Act of 1990.--Section 214B of
the Victims of Child Abuse Act of 1990 (42 U.S.C. 13004) is
amended--
(1) in subsection (a)(2), by striking ``and 1996'' and
inserting ``1996, and 1997''; and
(2) in subsection (b)(2), by striking ``and 1996'' and
inserting ``1996, and 1997''.
SEC. 4753. REPEALS.
(a) In General.--The following provisions of law are
repealed:
(1) Title II of the Child Abuse Prevention and Treatment
and Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.).
(2) The Abandoned Infants Assistance Act of 1988 (42 U.S.C.
670 note).
(3) The Temporary Child Care for Children with Disabilities
and Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.).
(4) Subtitle F of title VII of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11481 et seq.).
(b) Conforming Amendments.--
(1) Recommended legislation.--After consultation with the
appropriate committees of the Congress and the Director of
the Office of Management and Budget, the Secretary of Health
and Human Services shall prepare and submit to the Congress a
legislative proposal in the form of an implementing bill
containing technical and conforming amendments to reflect the
repeals made by this section.
(2) Submission to congress.--Not later than 6 months after
the date of enactment of this subchapter, the Secretary of
Health and Human Services shall submit the implementing bill
referred to under paragraph (1).
Subtitle G--Reductions in Federal Government Positions
SEC. 4801. REDUCTIONS.
(a) Definitions.--As used in this section:
(1) Appropriate effective date.--The term ``appropriate
effective date'', used with respect to a Department referred
to in this section, means the date on which all provisions of
this Act (other than subtitle B of this title) that the
Department is required to carry out, and amendments and
repeals made by this Act to provisions of Federal law that
the Department is required to carry out, are effective.
(2) Covered activity.--The term ``covered activity'', used
with respect to a Department referred to in this section,
means an activity that the Department is required to carry
out under--
(A) a provision of this Act (other than subtitle B of this
title); or
(B) a provision of Federal law that is amended or repealed
by this Act (other than subtitle B of this title).
(b) Reports.--
(1) Contents.--Not later than January 1, 1997, each
Secretary referred to in paragraph (2) shall prepare and
submit to the relevant committees described in paragraph (3)
a report containing--
(A) the determinations described in subsection (c);
(B) appropriate documentation in support of such
determinations; and
(C) a description of the methodology used in making such
determinations.
(2) Secretary.--The Secretaries referred to in this
paragraph are--
(A) the Secretary of Agriculture;
(B) the Secretary of Education;
(C) the Secretary of Labor;
(D) the Secretary of Housing and Urban Development; and
(E) the Secretary of Health and Human Services.
(3) Relevant committees.--The relevant Committees described
in this paragraph are the following:
(A) With respect to each Secretary described in paragraph
(2), the Committee on Government Reform and Oversight of the
House of Representatives and the Committee on Governmental
Affairs of the Senate.
(B) With respect to the Secretary of Agriculture, the
Committee on Agriculture and the Committee on Economic and
Educational Opportunities of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(C) With respect to the Secretary of Education, the
Committee on Economic and Educational Opportunities of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate.
(D) With respect to the Secretary of Labor, the Committee
on Economic and Educational Opportunities of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate.
(E) With respect to the Secretary of Housing and Urban
Development, the Committee on Banking and Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(F) With respect to the Secretary of Health and Human
Services, the Committee on Economic and Educational
Opportunities of the House of Representatives, the Committee
on Labor and Human Resources of the Senate, the Committee on
Ways and Means of the House of Representatives, and the
Committee on Finance of the Senate.
[[Page H7903]]
(4) Report on changes.--Not later than December 31, 1996,
and each December 31 thereafter, each Secretary referred to
in paragraph (2) shall prepare and submit to the relevant
Committees described in paragraph (3), a report concerning
any changes with respect to the determinations made under
subsection (c) for the year in which the report is being
submitted.
(c) Determinations.--Not later than December 31, 1996, each
Secretary referred to in subsection (b)(2) shall determine--
(1) the number of full-time equivalent positions required
by the Department headed by such Secretary to carry out the
covered activities of the Department, as of the day before
the date of enactment of this Act;
(2) the number of such positions required by the Department
to carry out the activities, as of the appropriate effective
date for the Department; and
(3) the difference obtained by subtracting the number
referred to in paragraph (2) from the number referred to in
paragraph (1).
(d) Actions.--Each Secretary referred to in subsection
(b)(2) shall take such actions as may be necessary, including
reduction in force actions, consistent with sections 3502 and
3595 of title 5, United States Code, to reduce the number of
positions of personnel of the Department--
(1) not later than 30 days after the appropriate effective
date for the Department involved, by at least 50 percent of
the difference referred to in subsection (c)(3); and
(2) not later than 13 months after such appropriate
effective date, by at least the remainder of such difference
(after the application of paragraph (1)).
(e) Consistency.--
(1) Education.--The Secretary of Education shall carry out
this section in a manner that enables the Secretary to meet
the requirements of this section.
(2) Labor.--The Secretary of Labor shall carry out this
section in a manner that enables the Secretary to meet the
requirements of this section.
(3) Health and human services.--The Secretary of Health and
Human Services shall carry out this section in a manner that
enables the Secretary to meet the requirements of this
section and sections 4802 and 4803.
(f) Calculation.--In determining, under subsection (c), the
number of full-time equivalent positions required by a
Department to carry out a covered activity, a Secretary
referred to in subsection (b)(2) shall include the number of
such positions occupied by personnel carrying out program
functions or other functions (including budgetary,
legislative, administrative, planning, evaluation, and legal
functions) related to the activity.
(g) General Accounting Office Report.--Not later than July
1, 1997, the Comptroller General of the United States shall
prepare and submit to the committees described in subsection
(b)(3), a report concerning the determinations made by each
Secretary under subsection (c). Such report shall contain an
analysis of the determinations made by each Secretary under
subsection (c) and a determination as to whether further
reductions in full-time equivalent positions are appropriate.
SEC. 4802. REDUCTIONS IN FEDERAL BUREAUCRACY.
(a) In General.--The Secretary of Health and Human Services
shall reduce the Federal workforce within the Department of
Health and Human Services by an amount equal to the sum of--
(1) 75 percent of the full-time equivalent positions at
such Department that relate to any direct spending program,
or any program funded through discretionary spending, that
has been converted into a block grant program under this Act
and the amendments made by this Act; and
(2) an amount equal to 75 percent of that portion of the
total full-time equivalent departmental management positions
at such Department that bears the same relationship to the
amount appropriated for the programs referred to in paragraph
(1) as such amount relates to the total amount appropriated
for use by such Department.
(b) Reductions in the Department of Health and Human
Services.--Notwithstanding any other provision of this Act,
the Secretary of Health and Human Services shall take such
actions as may be necessary, including reductions in force
actions, consistent with sections 3502 and 3595 of title 5,
United States Code, to reduce the full-time equivalent
positions within the Department of Health and Human
Services--
(1) by 245 full-time equivalent positions related to the
program converted into a block grant under the amendment made
by section 103; and
(2) by 60 full-time equivalent managerial positions in the
Department.
SEC. 4803. REDUCING PERSONNEL IN WASHINGTON, D.C. AREA.
In making reductions in full-time equivalent positions, the
Secretary of Health and Human Services is encouraged to
reduce personnel in the Washington, D.C., area office (agency
headquarters) before reducing field personnel.
Subtitle H--Miscellaneous
SEC. 4901. APPROPRIATION BY STATE LEGISLATURES.
(a) In General.--Any funds received by a State under the
provisions of law specified in subsection (b) shall be
subject to appropriation by the State legislature, consistent
with the terms and conditions required under such provisions
of law.
(b) Provisions of Law.--The provisions of law specified in
this subsection are the following:
(1) Part A of title IV of the Social Security Act (relating
to block grants for temporary assistance for needy families).
(2) Section 25 of the Food Stamp Act of 1977 (relating to
the optional State food assistance block grant).
(3) The Child Care and Development Block Grant Act of 1990
(relating to block grants for child care).
SEC. 4902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED
SUBSTANCES.
Notwithstanding any other provision of law, States shall
not be prohibited by the Federal Government from testing
welfare recipients for use of controlled substances nor from
sanctioning welfare recipients who test positive for use of
controlled substances.
SEC. 4903. REDUCTION IN BLOCK GRANTS TO STATES FOR SOCIAL
SERVICES.
Section 2003(c) of the Social Security Act (42 U.S.C.
1397b(c)) is amended--
(1) by striking ``and'' at the end of paragraph (4); and
(2) by striking paragraph (5) and inserting the following:
``(5) $2,800,000,000 for each of the fiscal years 1990
through 1995;
``(6) $2,520,000,000 for each of the fiscal years 1997
through 2002; and
``(7) $2,380,000,000 for the fiscal year 2003 and each
succeeding fiscal year.''.
The CHAIRMAN. No other amendment shall be in order except the
following amendments:
First, a further amendment printed in part 2 of the report, which may
be offered only by the gentleman from Ohio [Mr. Kasich] or his
designee, shall be considered read, shall be debatable for the time
specified in the report, equally divided and controlled by the
proponent and an opponent, shall not be subject to amendment, and shall
not be subject to a demand for division of the question; and
Second, a further amendment in the nature of a substitute consisting
of the text of H.R. 3832, which may be offered only by the gentleman
from Missouri [Mr. Gephardt] or his designee, shall be considered read,
shall be debatable for 1 hour, equally divided and controlled by the
proponent and an opponent, and shall not be subject to amendment.
amendment offered by Mr. ney
Mr. NEY. Mr. Chairman, I offer an amendment as the designee of the
gentleman from Ohio [Mr. Kasich].
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment offered by Mr. Ney:
Subsection (o) of section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015), as added by section 1033(a), is amended--
(1) in paragraph (2)--
(A) by striking ``, during the preceding 12-month
period,'',
(B) by inserting ``after the effective date of this
subsection'' after ``received'', and
(C) by striking ``4'' and insert ``3'', and
(2) in paragraph (5) by striking subparagraph (B) and
making such technical and conforming changes as may be
appropriate.
Section 1033 is amended by striking subsection (b) and
making such technical and conforming changes as may be
appropriate.
The CHAIRMAN. Pursuant to House Resolution 482, the gentleman from
Ohio [Mr. Ney] and a Member opposed each will control 10 minutes.
Mr. SABO. Madam Chairman, I rise in opposition.
The CHAIRMAN. The gentleman from Minnesota [Mr. Sabo] will be
recognized to control the time in opposition.
The Chair recognizes the gentleman from Ohio [Mr. Ney].
Mr. NEY. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, caring for people is not necessarily synonymous with
taking care of people. Anyone can say that they feel pain, and many
people obviously do feel pain for others that have not had the path of
opportunity in this country. We have to work with all Americans to try
and alleviate and minimize and finally end the pain once and for all.
We need to reach out a helping hand to every person currently in the
welfare system and say to them: If you want to work, we're going to
help you climb that ladder of opportunity in this great country.
My amendment, which is the Kasich-Ney amendment, and I thank my
colleague, the gentleman from Ohio [Mr. Kasich], for his guidance and
support on this amendment; this amendment to H.R. 3437 is just that: It
is a ladder. The amendment will tell every able-bodied person without
children between the ages of 18 and 50 that there is no escalator built
by Washington that will carry them up the ladder of opportunity, but
with a little help from us,
[[Page H7904]]
and if they are willing to help themselves, they can have a chance in
this country.
Madam Chairman, as my colleagues know, under the base text of the
bill, able-bodied adults between the ages of 18 and 50 who have no
children are permitted to receive food stamps without working for 4
months out of every 12-month period. This means they could potentially
work 8 months and take 4 months off. The amendment, while retaining the
exemptions in the base bill; I would like to just restate those
exemptions for the record; this is who the amendment does not affect:
Anyone under 18 or over the age of 50, anyone medically certified as
physically or mentally incapable or unable to be employed, a parent or
other member of the household responsible for a dependent child or a
pregnant woman.
Those are the persons that are not included in this amendment. They
are exempted from it.
What I am talking about, very clearly, are people who have no
dependents, that are 18 years old to 50 years old that are able to work
and are receiving food stamps. So instead of the 4 months off
potentially every year, there will be a 3-month lifetime ability to
take off.
Now, they have to remain employed for at least 20 hours, be in a job
training program or one of the workfare programs.
I believe that this is a very fair measure. I believe that this is a
measure that will help people on the opportunity scale in this country.
I would ask, Madam Chairman, why does Washington continue to promote
a welfare system that discourages work? Is it extreme to think that we
can do better? Is it extreme to want to give welfare recipients hope
instead of an endless cycle of dependency? Should we not be trying to
encourage work?
And that is what this amendment does, but it is an amendment that
provides some safety, it provides a course of a safety net, it has the
ability to have waivers from the State departments of human services.
So it is a well-crafted, very fair amendment, but it simply says: If
you want assistance from your government and you are 18 to 50 years
old, and you don't have any dependents, and you are capable of working,
then you have to simply work.
This is a fair amendment, it provides the change that is necessary in
this country, and let me just say in closing, as my colleague, the
gentleman from Ohio [Mr. Kasich], many times refers to the end of the
day, this amendment is referring to the end of the day because that day
has come that we have to step up to the plate and take the
responsibility to help people.
The easy path is to say to an individual man or woman in this
country, Take the check, don't be seen, take 4 months of the year off,
we don't want to address the problem of what we do with you.
What we are doing is forcing this issue to be addressed, but we are
providing help to a person. But we want to say that, yes, we are going
to be there. There are going to be some problems throughout the course
in welfare reform, we better believe there are. But I can tell my
colleagues for sure that the current system is in hard failure, and the
current system is not creating opportunity, and what the bottom line of
this Congress is and the bottom line of this change in this country,
this is about children, and each and every one of us as human beings
are responsible, we are responsible for whether this planet is going to
be safe and prosperous and peaceful for children, and we do not want to
have a legacy of children who know nothing but the welfare system. We
want to provide opportunity.
This is another step in the right direction, it is a caring step, and
it shows that we are a Congress that cares to help involve people in
that ladder of opportunity.
Madam Chairman, I reserve the balance of my time.
Mr. SABO. Madam Chairman, I yield 3 minutes to the distinguished
gentleman from Texas [Mr. Stenholm].
(Mr. STENHOLM asked and was given permission to revise and extend his
remarks.)
Mr. STENHOLM. Madam Chairman, I rise in opposition to this single-
bullet amendment to this year's first reconciliation bill. I understand
full well the political advantage which is sought with amendments such
as this. I am certainly not interested in ever defending a wasteful use
of food stamps. But I am also interested in abandoning people in real
need, confronted by unexpected, uncontrollable circumstances who count
on food stamps for their survival.
I find it amazing that the Rules Committee took the unprecedented
action of allowing an amendment other than a complete substitute. Had I
known there was any possibility of such amendments being made in order,
I assure my colleagues I would have had a number of my own to offer,
and I know dozens of other Members would have wanted to do the same.
This unprecedented change of the rules aside, I must point out that
this particular amendment is not about a food stamp time limit; it is a
lifetime ban on food stamp benefits if ever they have received them in
their adult life for 3 months and been unable to find work during that
3 months. If they have faced unexpected and uncontrollable
circumstances in their life, if they have been laid off from their job
in a period of recession, if they went on food stamps, searched high
and low for work and found nothing after 3 months, it is tough luck for
them. They are off the food stamp program and until they have reached
age 50 or until you have found a job. It does not matter if they are
following all of the rules, looking for work, in real need of a hand
up, the food stamp program just will not be there for them.
The implication behind this amendment is that finding some kind of
job is always easy. That simply is not true.
For example, food stamp data show that more than 40 percent of those
who would be affected by this provision are women, and nearly one-third
of those women are over the age of 40. Whether widowed, divorced, or
facing some other difficult life circumstance, these 40-plus women
typically have a very difficult time finding employment. Their skills
may be out of date or underdeveloped because they have been raising
their families, and there simply are not many jobs out there for which
they are qualified without training, which is another shortcoming of
the base bill.
Coming from a rural district, I know very well that this amendment
will hit particularly hard because there are an especially limited
number of new employment opportunities in many small towns and rural
communities of America.
This amendment is much more extreme even than the original bill
passed by the House last year. Under that bill, people who were unable
to find work could have continued to get food stamps if they
participated in job search programs. This amendment cuts those people
off the program and imposes the harshest work requirement of any
proposal made during this Congress.
The amendment cannot be said to be toughening the work requirements.
Such a statement assumes that for every person cut off from food stamps
there is a job. Common sense tells us that is not the case. If this
amendment were really intended to put people to work, it would provide
a number of things, including funding for additional workfare slots.
But, of course, that would cost money, and this amendment is intended
to save an additional $2.2 billion. This is just another example of how
extreme philosophy and this year's budget, not sound policy, are
driving welfare reform.
This amendment is bad policy, a paperwork nightmare, and I urge every
Member to vote against it.
Mr. SABO. Madam Chairman, I yield 2 minutes to the distinguished
gentlewoman from North Carolina [Mrs. Clayton].
Mrs. CLAYTON. Madam Chairman, I rise today in strong opposition to
the Kasich-Ney amendment.
I believe that the 4-month time limit presently contained in this
legislation is egregious. This amendment would further reduce this
already short period of time by 30 days.
According to data collected by USDA, three-fourths of able-bodied,
nonelderly food stamp recipients leave within 9 months because they
have found a job or another alternative means to augment their income,
but over one-half of those people need more than 4 months to do so.
[[Page H7905]]
Even our current unemployment compensation system acknowledges that
people need about 6 months to find a job.
That is why I offered an amendment, albeit unsuccessful, during the
Agriculture Committee consideration of the food stamp title to increase
the limit from 4 months to 6 months, which is consistent with last
year's Senate welfare reform package.
The Congressional Budget Office has estimated that 700,000 unemployed
people who are willing to work and willing to comply with the tenets of
a work program would be denied food stamp assistance under the 4-month
ceiling contained in H.R. 3734, whereas under the 6-month scenario of
my amendment only 450,000 workers would be cut off.
If the proposed 120-day limit is shortened further to 90 days, 90
days, close to 1 million Americans will be denied food stamp
assistance, 1 million of the poorest of the poor.
Madam Chairman, the majority must be credited here for the inclusion
of the 4-month bridge, which is not as long as I would like it to be,
but it is far better than the 3-month ceiling that this punitive
amendment seeks to introduce.
Thirty days, Madam Chairman; imagine not eating for 30 days? That is
the reality that some poor Americans who are actively looking for work
will have to face, if the Kasich-Ney amendment passes. Is the small
budget reduction gained by this proposal worth the large loss of food
assistance, sustenance if my colleagues will, to those 1 million
Americans denied assistance under a 90-day ceiling?
{time} 1330
Mr. NEY. Madam Chairman, I yield 3 minutes to my colleague, the
gentleman from Ohio [Mr. Kasich].
Mr. KASICH. Madam Chairman, let me make clear what the amendment does
so that there is no confusion. If you are able-bodied, single, between
the ages of 18 and 50 and you get food stamps, we are saying you have
to work 20 hours a week. It is no more complicated than that. If you
cannot get a job, you go in a workfare program; 45 out of 50 States
have a workfare program.
Let me just suggest to the Members, if there is any program that
Americans who go to work are frustrated about, it is food stamps. They
get frustrated to stand in line at the grocery store and just observe
what goes on and the way in which people buy. They think people are
trading them, they think there is a lot of fraud involved in the
program. The American people, while supporting a food stamp program,
they want the food stamp program cleaned up, tightened up, and fixed
and reformed.
Madam Chairman, what this amendment says is that if you need to get
food stamps and you are single, you are able-bodied, you are between
the ages of 18 and 50, you have to do some work in exchange for the
food stamps.
The opposition to this amendment, frankly, is opposed to the very
premises that underlie our bill, our welfare bill. Our welfare bill
says at some point you have to get trained, you have to go to work. You
have to get off the system and get a job.
What this amendment says is very simple. If your people at home are
frustrated about food stamps, this amendment does not take away food
stamps. It says, though, if you are going to get food stamps, you are
going to work 20 hours a week; 20 hours a week.
If you cannot find a job, you go to work for the State in a workfare
program, and maybe you whitewash the graffiti, or maybe you clean up
the neighborhood, but you participate in a program where you do some
work in exchange, in exchange for the food stamps that you get.
Madam Chairman, it is not complicated. There is not a reason that I
can think of as to why you should not be able to put in 20 hours a week
if you are able-bodied, between the age of 18 to 50, in exchange for
that program.
I would say to the House, think about this. If my colleagues support
the underlying parts of this bill that call for people to work, that
call for people to get trained, then clearly they support this concept.
We are not asking people to work overly generous hours. In fact, there
is already a requirement that says you have to work 8 months out of the
year. What we say is we will give you a little exemption up front for 3
months, you have your 3 months, but after that if you need the food
stamps you have to put in a little bit of work.
I think that is fair for the people who get the food stamps, and I
think it is eminently reasonable and fair for the people that pay the
bills for those who get the food stamps.
Support the Ney amendment.
Mr. SABO. Madam Chairman, I yield 2 minutes to the gentleman from
Michigan [Mr. Levin].
Mr. LEVIN. Madam Chairman, I want to tell the gentleman from Ohio I
fully share, and indeed I have worked hard for the concept, off of
welfare and into work, with time limits. But this amendment goes far
beyond it.
Take the State of Michigan in the early 1980's. We had unemployment
rising for 3 years in a row. We had about 115,000 more people on food
stamps. In the Detroit metropolitan area, unemployment did not hit the
10 percent mark at any point.
So what about people, able bodied, who have been working all their
lives, who are thrown out on the streets because there is no work? They
had been on food stamps for 3 months 10 years earlier. What the
gentleman is saying to those people: Starve. Oh, Members say all they
have to do is get a job through workfare. Is there a workfare program
in Michigan for 50,000 people or 100,000 people thrown out of work in a
recession? Of course there is not.
I believe unequivocally people on welfare, able bodied, get to work
with the adequate support protections in Castle-Tanner. What I do not
say is to the hard-working person, with or without kids, if you cannot
find a job, if you are working hard, looking hard to find one, we are
going to say you starve, because 10 years ago you were on food stamps
for 3 months.
Yes, Madam Chairman, I think this shows the difference between the
two bills. They just insist on thinking tough means mean. I think tough
means getting people off of welfare to work, but not hurting the hard-
working person who hits hard times.
Vote against this amendment. It has been considered in the Senate
before and rejected, across the board, on a bipartisan basis. This
violates the spirit of getting tough on work but not being mean to kids
or mean to anybody else.
Mr. NEY. Madam Chairman, I yield myself the balance of my time.
The CHAIRMAN. The gentleman from Ohio [Mr. Ney] is recognized for 2
minutes.
Mr. NEY. Madam Chairman, let me make this point very clear. This does
not apply to children. Let me read the exemptions once again: Anyone
under 18 years old or over 50, this does not apply to them. Anyone
medically certified as physically or mentally incapable or unfit for
employment, it does not apply to them. A parent or other member of a
household responsible for a dependent child, it does not apply to them.
A pregnant woman, it does not apply to her.
Also, if the gentleman wants to talk about unemployment, if we read
the text, there are hardship exemptions. It can be waived. There are
safeguards in this. The bottom line is it saves $2.2 billion on the
fiscal side, but the real bottom line is it is responsible. It is a
good amendment. It is fair. It is an amendment, and I cannot even
believe some of the statements I have heard about this amendment. It is
a very responsible amendment.
Mr. KASICH. Madam Chairman, will the gentleman yield?
Mr. NEY. I yield to the gentleman from Ohio.
Mr. KASICH. In other words, Madam Chairman, if you are under the age
of 18 or over the age of 50, this does not apply to you. Only if you
are childless and able-bodied and if there is an unemployment rate over
10 percent, it can be waived, is that correct? So if you have high
unemployment or if you have children or if you are sick, it does not
apply. It is only if you are able-bodied, if you are childless, and you
live in an area where you are getting food stamps and there are jobs
available, then it applies.
So if you are able-bodied and there are jobs available, you go and
you have to work 20 hours to get your food stamps. Then of course if
you cannot find a job then you do workfare. That is what it is. But
there are a number of exemptions in here for people who find themselves
in particularly difficult circumstances and in a State with high
[[Page H7906]]
unemployment. Or you can be in job training. They can go to job
training.
Mr. NEY. The gentleman is correct. It just means you simply have to
work, just like everyone else. This is responsible, it is fair, it has
exemptions. I urge support of the amendment.
Mr. SABO. Madam Chairman, I yield 45 seconds to the gentleman from
North Carolina [Mr. Hefner].
Mr. HEFNER. Madam Chairman, I guess I do not understand what the
gentleman talks about, asking about a waiver. How would you get that?
Would it have to do with the percentage of unemployment in this
district?
I have been in this place for 22 years. I have seen some mean-
spirited amendments in this place. To me this is the most mean-spirited
amendment that I have ever seen on any bill that has come before this
House. If this is what you have to do to get reelected to this
Congress, I do not want to be a part of this body any longer if I have
to vote for such mean-spirited legislation as this. It is not worth it
to be in this most deliberative body in the world. I do not think it
speaks well for this body as a whole to accept a mean-spirited
amendment like this. It is degrading.
Mr. SABO. Madam Chairman, I yield the balance of my time to the
gentlewoman from Florida [Mrs. Thurman].
The CHAIRMAN. The gentlewoman from Florida [Mrs. Thurman] is
recognized for 2 minutes.
Mrs. THURMAN. Madam Chairman, I have to tell the Members, I am
shocked at this attempt one more time to further erode one of the few
protections we have for laidoff and downsized employees in America. The
Kasich-Ney amendment actually penalizes people who play by the rules
and do exactly what we want people on welfare to do: find a job.
Someone who loses her job during a recession is often forced to turn
to food stamp assistance to meet her basic needs. If this person acts
responsibly and finds a new job within 3 short months, she should not
be disqualified, yes, for the rest of her adult years, from further
food stamp assistance. If 10 years later this welfare success story is
downsized, as so many people in modern America have been, the Kasich-
Ney amendment would deny her the temporary assistance needed for her to
get back into the job market.
Why? Because it is about money, not policy. Good policy would be to
reinforce the goal of moving people to work instead of offering an
amendment that penalizes people who are trying to fulfill that goal. I
sit on the Committee on Agriculture in the House. No one came before
our committee to offer this amendment. In fact, we had a discussion
about how the 4-month time limit in the majority's bill was unrealistic
if job slots are not available.
I was actually encouraged by the conversation and believed we may
have been able to reach a compromise on this issue. Now, all of a
sudden, an amendment surfaces to not only cut back the time limit to 3
months, but to prohibit 18- to 50-year-olds from any further food
assistance. The logic escapes me. Is it not the people that we want to
work that we are trying to help? This amendment simply is another
example of money over policy. While the majority may believe that this
saves them money, the policy is quite costly.
The CHAIRMAN. All time for debate on this amendment has expired.
The question is on the amendment offered by the gentleman from Ohio
[Mr. Ney].
The question was taken; and the chairman announced that the noes
appeared to have it.
recorded vote
Mr. NEY. Madam Chairman, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 239,
noes 184, not voting 10, as follows:
[Roll No 328]
AYES--239
Allard
Archer
Armey
Bachus
Baesler
Baker (CA)
Baker (LA)
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Boehner
Bonilla
Bono
Browder
Brownback
Bryant (TN)
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clement
Clinger
Coble
Coburn
Collins (GA)
Combest
Cooley
Cox
Cramer
Crane
Crapo
Cremeans
Cubin
Cunningham
Danner
Deal
DeLay
Diaz-Balart
Dickey
Dornan
Dreier
Duncan
Dunn
Ehlers
Ehrlich
English
Ensign
Everett
Ewing
Fawell
Fields (TX)
Flanagan
Foley
Fowler
Fox
Franks (CT)
Franks (NJ)
Frelinghuysen
Frisa
Funderburk
Furse
Gallegly
Ganske
Gekas
Geren
Gilchrest
Gillmor
Goodlatte
Goodling
Gordon
Goss
Graham
Greene (UT)
Greenwood
Gunderson
Gutknecht
Hall (TX)
Hamilton
Hancock
Hansen
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Heineman
Herger
Hilleary
Hobson
Hoekstra
Hoke
Holden
Horn
Hostettler
Hunter
Hutchinson
Hyde
Inglis
Istook
Johnson (SD)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Laughlin
Lazio
Leach
Lewis (CA)
Lewis (KY)
Lightfoot
Linder
Lipinski
Livingston
LoBiondo
Longley
Lucas
Manzullo
Martini
McCollum
McCrery
McHale
McHugh
McInnis
McIntosh
McKeon
Metcalf
Meyers
Mica
Miller (FL)
Molinari
Moorhead
Moran
Myers
Myrick
Neumann
Ney
Norwood
Nussle
Oxley
Parker
Paxon
Peterson (MN)
Petri
Pombo
Porter
Portman
Poshard
Pryce
Quillen
Radanovich
Ramstad
Regula
Richardson
Riggs
Roberts
Roemer
Rogers
Rohrabacher
Ros-Lehtinen
Roth
Royce
Salmon
Sanford
Saxton
Schaefer
Seastrand
Sensenbrenner
Shadegg
Shaw
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Stearns
Stockman
Stump
Talent
Tate
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Tiahrt
Torkildsen
Traficant
Upton
Visclosky
Vucanovich
Walker
Wamp
Ward
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Williams
Wolf
Young (AK)
Zeliff
Zimmer
NOES--184
Abercrombie
Ackerman
Andrews
Baldacci
Barcia
Barrett (WI)
Becerra
Beilenson
Bentsen
Berman
Bevill
Bishop
Blumenauer
Blute
Boehlert
Bonior
Borski
Boucher
Brewster
Brown (CA)
Brown (FL)
Brown (OH)
Bryant (TX)
Bunn
Cardin
Castle
Chapman
Clay
Clayton
Clyburn
Coleman
Collins (IL)
Collins (MI)
Condit
Conyers
Costello
Coyne
Cummings
Davis
DeFazio
DeLauro
Dellums
Deutsch
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Durbin
Edwards
Engel
Eshoo
Evans
Farr
Fattah
Fazio
Fields (LA)
Filner
Flake
Foglietta
Ford
Frank (MA)
Frost
Gejdenson
Gephardt
Gibbons
Gilman
Gonzalez
Green (TX)
Gutierrez
Hall (OH)
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Houghton
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jacobs
Jefferson
Johnson (CT)
Johnson, E. B.
Johnston
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kleczka
Klink
LaFalce
Lantos
Levin
Lewis (GA)
Lofgren
Lowey
Luther
Maloney
Manton
Markey
Martinez
Mascara
Matsui
McCarthy
McDermott
McKinney
McNulty
Meehan
Meek
Menendez
Millender-McDonald
Minge
Mink
Moakley
Mollohan
Montgomery
Morella
Murtha
Nadler
Neal
Nethercutt
Oberstar
Obey
Olver
Ortiz
Orton
Owens
Pallone
Pastor
Payne (NJ)
Payne (VA)
Pelosi
Peterson (FL)
Pickett
Pomeroy
Quinn
Rahall
Rangel
Reed
Rivers
Rose
Roukema
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schroeder
Schumer
Scott
Serrano
Shays
Skaggs
Slaughter
Spratt
Stark
Stenholm
Stokes
Studds
Stupak
Tanner
Tejeda
Thompson
Thornton
Thurman
Torres
Torricelli
Towns
Velazquez
Vento
Volkmer
Walsh
Waters
Watt (NC)
Waxman
Wilson
Wise
Woolsey
Wynn
Yates
NOT VOTING--10
de la Garza
Doolittle
Forbes
Lincoln
McDade
Miller (CA)
Packard
Scarborough
Schiff
Young (FL)
{time} 1401
The Clerk announced the following pair:
On this vote:
Mr. Forbes for, with Mrs. Lincoln against.
[[Page H7907]]
Messrs. NADLER, DEUTSCH, and SHAYS, and Mrs. JOHNSON of Connecticut
changed their vote from ``aye'' to ``no.''
Mr. PETERSON of Minnesota, Mrs. KELLY, and Mr. JOHNSON of South
Dakota changed their vote from ``no'' to ``aye.''
So the amendment was agreed to.
The result of the vote was announced as above recorded.
personal explanation
Mr. SCARBOROUGH. Madam Chairman, on rollcall No. 328, I was detained
at a meeting. Had I been present, I would have voted ``aye.''
Mr. SHAW. Mr. Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly the Committee rose; and the Speaker pro tempore (Mr.
Upton) having assumed the chair, Ms. Greene of Utah, Chairman of the
Committee of the Whole House on the State of the Union, reported that
that Committee, having had under consideration the bill (H.R. 3734) to
provide for reconciliation pursuant to section 201(a)(1) of the
concurrent resolution on the budget for fiscal year 1997, had come to
no resolution thereon.
____________________