[Congressional Record Volume 142, Number 106 (Thursday, July 18, 1996)]
[House]
[Pages H7907-H7990]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WELFARE AND MEDICAID REFORM ACT OF 1996
The SPEAKER pro tempore. 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} 1407
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.
The CHAIRMAN. When the Committee of the Whole rose earlier today, the
amendment printed in part 2 of House Report 104-686 offered by the
gentleman from Ohio [Mr. Ney] had been disposed of.
amendment in the nature of a substitute offered by mr. tanner
Mr. TANNER. Madam Chairman, as the designee of the minority leader, I
offer an amendment in the nature of a substitute.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment in the nature of a substitute is as
follows:
Amendment in the nature of a substitute offered by Mr.
Tanner: Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bipartisan Welfare Reform
Act of 1996''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private
organizations.
Sec. 105. Census data on grandparents as primary caregivers for their
grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and
related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social
security card required.
Sec. 112. Disclosure of receipt of Federal funds.
Sec. 113. Modifications to the job opportunities for certain low-income
individuals program.
Sec. 114. Secretarial submission of legislative proposal for technical
and conforming amendments.
Sec. 115. Application of current AFDC standards under medicaid program.
Sec. 116. Effective date; transition rule.
TITLE II--SUPPLEMENTAL SECURITY INCOME
Sec. 200. Reference to Social Security Act.
Subtitle A--Eligibility Restrictions
Sec. 201. 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. 202. Denial of SSI benefits for fugitive felons and probation and
parole violators.
Sec. 203. Verification of eligibility for certain SSI disability
benefits.
Sec. 204. Treatment of prisoners.
Sec. 205. Effective date of application for benefits.
Sec. 206. Installment payment of large past-due supplemental security
income benefits.
[[Page H7908]]
Sec. 207. Recovery of supplemental security income overpayments from
social security benefits.
Subtitle B--Benefits for Disabled Children
Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability
reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized
individuals whose medical costs are covered by private
insurance.
Sec. 215. Modification respecting parental income deemed to disabled
children.
Sec. 216. Graduated benefits for additional children.
Subtitle C--State Supplementation Programs
Sec. 221. Repeal of maintenance of effort requirements applicable to
optional State programs for supplementation of SSI
benefits.
Subtitle D--Studies Regarding Supplemental Security Income Program
Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study of disability determination process.
Sec. 233. Study by General Accounting Office.
Subtitle E--National Commission on the Future of Disability
Sec. 241. Establishment.
Sec. 242. Duties of the Commission.
Sec. 243. Membership.
Sec. 244. Staff and support services.
Sec. 245. Powers of Commission.
Sec. 246. Reports.
Sec. 247. Termination.
Sec. 248. Authorization of appropriations.
TITLE III--CHILD SUPPORT
Sec. 300. Reference to Social Security Act.
Subtitle A--Eligibility for Services; Distribution of Payments
Sec. 301. State obligation to provide child support enforcement
services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification and hearings.
Subtitle B--Locate and Case Tracking
Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in
child support enforcement.
Subtitle C--Streamlining and Uniformity of Procedures
Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support
orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.
Subtitle D--Paternity Establishment
Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of temporary
family assistance.
Subtitle E--Program Administration and Funding
Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.
Subtitle F--Establishment and Modification of Support Orders
Sec. 351. Simplified process for review and adjustment of child support
orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to
child support.
Sec. 353. Nonliability for financial institutions providing financial
records to State child support enforcement agencies in
child support cases.
Subtitle G--Enforcement of Support Orders
Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the
Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International child support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal
grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the
support of a child.
Subtitle H--Medical Support
Sec. 376. Correction to ERISA definition of medical child support
order.
Sec. 377. Enforcement of orders for health care coverage.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
Sec. 381. Grants to States for access and visitation programs.
Subtitle J--Effect of Enactment
Sec. 391. Effective dates.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 400. Statements of national policy concerning welfare and
immigration.
Subtitle A--Eligibility for Federal Benefits
Sec. 401. Aliens who are not qualified aliens ineligible for Federal
public benefits.
Sec. 402. Limited eligibility of certain qualified aliens for certain
Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal
means-tested public benefit.
Sec. 404. Notification and information reporting.
Subtitle B--Eligibility for State and Local Public Benefits Programs
Sec. 411. Aliens who are not qualified aliens or nonimmigrants
ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for
State public benefits.
Subtitle C--Attribution of Income and Affidavits of Support
Sec. 421. Federal attribution of sponsor's income and resources to
alien for purposes of medicaid eligibility.
Sec. 422. Authority for States to provide for attribution of sponsor's
income and resources to the alien with respect to State
programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Sec. 424. Cosignature of alien student loans.
Subtitle D--General Provisions
Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government agencies and
the Immigration and Naturalization Service.
Sec. 435. Qualifying quarters.
Sec. 436. Title inapplicable to programs specified by Attorney General.
Sec. 437. Title inapplicable to programs of nonprofit charitable
organizations.
Subtitle E--Conforming Amendments
Sec. 441. Conforming amendments relating to assisted housing.
TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS
Sec. 501. Reductions.
Sec. 502. Reductions in Federal bureaucracy.
Sec. 503. Reducing personnel in Washington, D.C. area.
TITLE VI--REFORM OF PUBLIC HOUSING
Sec. 601. Failure to comply with other welfare and public assistance
programs.
Sec. 602. Fraud under means-tested welfare and public assistance
programs.
Sec. 603. Annual adjustment factors for operating costs only; restraint
on rent increases.
Sec. 604. Effective date.
TITLE VII--CHILD CARE
Sec. 701. Short title and references.
Sec. 702. Goals.
Sec. 703. Authorization of appropriations.
Sec. 704. Lead agency.
Sec. 705. Application and plan.
Sec. 706. Limitation on State allotments.
Sec. 707. Activities to improve the quality of child care.
Sec. 708. Repeal of early childhood development and before- and after-
school care requirement.
Sec. 709. Administration and enforcement.
Sec. 710. Payments.
Sec. 711. Annual report and audits.
Sec. 712. Report by the Secretary.
Sec. 713. Allotments.
Sec. 714. Definitions.
Sec. 715. Repeals.
TITLE VIII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
Sec. 801. Value of food assistance.
Sec. 802. Commodity assistance.
Sec. 803. State disbursement to schools.
Sec. 804. Nutritional and other program requirements.
Sec. 805. Free and reduced price policy statement.
[[Page H7909]]
Sec. 806. Special assistance.
Sec. 807. Miscellaneous provisions and definitions.
Sec. 808. Summer food service program for children.
Sec. 809. Commodity distribution.
Sec. 810. Child care food program.
Sec. 811. Pilot projects.
Sec. 812. Reduction of paperwork.
Sec. 813. Information on income eligibility.
Sec. 814. Nutrition guidance for child nutrition programs.
Sec. 815. Information clearinghouse.
Subtitle B--Child Nutrition Act of 1966
Sec. 821. Special milk program.
Sec. 822. Reimbursement rates for free and reduced price breakfasts.
Sec. 823. Free and reduced price policy statement.
Sec. 824. School breakfast program authorization.
Sec. 825. State administrative expenses.
Sec. 826. Regulations.
Sec. 827. Prohibitions.
Sec. 828. Miscellaneous provisions and definitions.
Sec. 829. Accounts and records.
Sec. 830. Special supplemental nutrition program for women, infants,
and children.
Sec. 831. Cash grants for nutrition education.
Sec. 832. Nutrition education and training.
Sec. 833. Breastfeeding promotion program.
TITLE IX--FOOD STAMP AND RELATED PROGRAMS
Sec. 901. Definition of certification period.
Sec. 902. Expanded definition of ``coupon''.
Sec. 903. Treatment of children living at home.
Sec. 904. Adjustment of thrifty food plan.
Sec. 905. Definition of homeless individual.
Sec. 906. Income Exclusions.
Sec. 907. Deductions from income.
Sec. 908. Vehicle allowance.
Sec. 909. Vendor payments for transitional housing counted as income.
Sec. 910. Increased penalties for violating food stamp program
requirements.
Sec. 911. Disqualification of convicted individuals.
Sec. 912. Disqualification.
Sec. 913. Caretaker exemption.
Sec. 914. Employment and training.
Sec. 915. Comparable treatment for disqualification.
Sec. 916. Disqualification for receipt of multiple food stamp benefits.
Sec. 917. Disqualification of fleeing felons.
Sec. 918. Cooperation with child support agencies.
Sec. 919. Disqualification relating to child support arrears.
Sec. 920. Work requirement for able-bodied recipients.
Sec. 921. Encourage electronic benefit transfer systems.
Sec. 922. Value of minimum allotment.
Sec. 923. Benefits on recertification.
Sec. 924. Optional combined allotment for expedited households.
Sec. 925. Failure to comply with other means-tested public assistance
programs.
Sec. 926. Allotments for households residing in centers.
Sec. 927. Authority to establish authorization periods.
Sec. 928. Specific period for prohibiting participation of stores based
on lack of business integrity.
Sec. 929. Information for verifying eligibility for authorization.
Sec. 930. Waiting period for stores that initially fail to meet
authorization criteria.
Sec. 931. Operation of food stamp offices.
Sec. 932. Mandatory claims collection methods.
Sec. 933. Exchange of law enforcement information.
Sec. 934. Expedited coupon service.
Sec. 935. Withdrawing fair hearing requests.
Sec. 936. Income, eligibility, and immigration status verification
systems.
Sec. 937. Bases for suspensions and disqualifications.
Sec. 938. Authority to suspend stores violating program requirements
pending administrative and judicial review.
Sec. 939. Disqualification of retailers who are disqualified from the
WIC program.
Sec. 940. Permanent debarment of retailers who intentionally submit
falsified applications.
Sec. 941. Expanded civil and criminal forfeiture for violations of the
food stamp act.
Sec. 942. Expanded authority for sharing information provided by
retailers.
Sec. 943. Limitation of Federal match.
Sec. 944. Collection of overissuances.
Sec. 945. Standards for administration.
Sec. 946. Response to waivers.
Sec. 947. Authorization of appropriations.
Sec. 948. Authorize States to operate simplified food stamp programs.
Sec. 949. Emergency food assistance program.
Sec. 950. Food bank demonstration project.
Sec. 951. Report on entitlement commodity processing.
TITLE X--MISCELLANEOUS
Subtitle A--General Provisions
Sec. 1001. Expenditure of Federal funds in accordance with laws and
procedures applicable to expenditure of State funds.
Sec. 1002. Elimination of housing assistance with respect to fugitive
felons and probation and parole violators.
Sec. 1003. Sense of the Senate regarding enterprise zones.
Sec. 1004. Sense of the Senate regarding the inability of the non-
custodial parent to pay child support.
Sec. 1005. Food stamp eligibility.
Sec. 1006. Establishing national goals to prevent teenage pregnancies.
Sec. 1007. Sense of the Senate regarding enforcement of statutory rape
laws.
Sec. 1008. Sanctioning for testing positive for controlled substances.
Sec. 1009. Abstinence education.
Sec. 1010. Provisions to encourage electronic benefit transfer systems.
Sec. 1011. Reduction in block grants to States for social services.
Sec. 1012. Efficient use of Federal transportation funds.
Sec. 1013. Enhanced Federal match for child welfare automation
expenses.
Subtitle B--Earned Income Tax Credit
Sec. 1021. Earned income credit and other tax benefits denied to
individuals failing to provide taxpayer identification
numbers.
Sec. 1022. Rules relating to denial of earned income credit on basis of
disqualified income.
Sec. 1023. Modification of adjusted gross income definition for earned
income credit.
Sec. 1024. Notice of availability required to be provided to applicants
and former recipients of AFDC, food stamps, and medicaid.
Sec. 1025. Notice of availability of earned income tax credit and
dependent care tax credit to be included on W-4 form.
Sec. 1026. Advance payment of earned income tax credit through State
demonstration programs.
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
SEC. 101. 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 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.
[[Page H7910]]
(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 103 of this Act) is
intended to address the crisis.
SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
title 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. 103. BLOCK GRANTS TO STATES.
Part A of title IV (42 U.S.C. 601 et seq.) is amended to
read as follows:
``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 meets the
requirements of subsection (b) and has been approved by the
Secretary with respect to the fiscal year.
``(b) Contents of State Plans.--A plan meets the
requirements of this subsection if the plan includes the
following:
``(1) Outline of family assistance program.--
``(A) General provisions.--A written document that outlines
how the State will do the following:
``(i) Conduct a program, designed to serve all political
subdivisions in the State, 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) Determine, on an objective and equitable basis, the
needs of and the amount of assistance to be provided to needy
families, and treat families of similar needs and
circumstances similarly, subject to subparagraph (B).
``(iii) 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.
``(iv) Ensure that parents and caretakers receiving
assistance under the program engage in work activities in
accordance with section 407.
``(v) Grant an opportunity for a fair hearing before the
State agency to any individual to whom assistance under the
program is denied, reduced, or terminated, or whose request
for such assistance is not acted on with reasonable
promptness.
``(vi) 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.
``(vii) Establish goals and take action to prevent and
reduce the incidence of out-of-wedlock pregnancies, with
special emphasis on teenage pregnancies, and establish
numerical goals for reducing the illegitimacy ratio of the
State (as defined in section 403(a)(2)(B)) for calendar years
1996 through 2005.
``(B) Special provisions.--
``(i) The plan 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 plan 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 plan shall contain an estimate of the number of
individuals (if any) who will become ineligible for medical
assistance under the State plan approved under title XIX as a
result of changes in the rules governing eligibility for the
State program funded under this part, and shall indicate the
extent (if any) to which the State will provide medical
assistance to such individuals, and the scope of such medical
assistance.
``(2) Certification that the state will operate a child
support enforcement program.--The plan shall include 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 not operate a
separate financial support program with state funds targeted
at certain child support recipients.--The plan shall include
a certification by the chief executive officer of the State
that, during the fiscal year, the State will not operate a
separate financial support program with State funds targeted
at child support recipients who would be eligible for
assistance under the program funded under this part were it
not for payments from the State-funded financial assistance
program.
``(4) Certification that the state will operate a child
protection program.--The plan shall include 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.
``(5) Certification of the administration of the program.--
The plan shall include 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 working jointly with the State in all
phases of the plan and design of welfare services in the
State so that services are provided in a manner appropriate
to local populations;
``(B) have had at least 60 days to submit comments on the
final plan and the design of such services; and
``(C) will not have unfunded mandates imposed on them under
such plan.
Such certification shall also include assurance that when
local elected officials are currently responsible for the
administration
[[Page H7911]]
of welfare services, the local elected officials will be able
to plan, design, and administer for their jurisdictions the
programs established pursuant to this Act.
``(6) Certification that the state will provide indians
with equitable access to assistance.--The plan shall include
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.
``(7) Certification of nondisplacement and nonreplacement
of employees.--The plan shall include a certification that
the implementation of the plan will not result in--
``(A) the displacement of a currently employed worker or
position by an individual to whom assistance is provided
under the State program funded under this part;
``(B) the replacement of an employee who has been
terminated with an individual to whom assistance is provided
under the State program funded under this part; or
``(C) the replacement of an employee who is on layoff from
the same position filled by an individual to whom assistance
is provided under the State program funded under this part or
any equivalent position.
``(c) Approval of State Plans.--The Secretary shall approve
any State plan that meets the requirements of subsection (b)
if the Secretary determines that operating a State program
pursuant to the plan will contribute to achieving the
purposes of this part.
``(d) 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.--
``(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, the Secretary approved
under former section 402 an amendment to the former State
plan with respect to the provision of emergency assistance in
the context of family preservation; or
``(iii) the amount required to be paid to the State under
former section 403 (as in effect on September 30, 1995) for
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 amount 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 (IV) 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)(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.--In addition to any grant under paragraph
(1), 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.
[[Page H7912]]
``(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
``(II) the population of the State increased by more than
10 percent from April 1, 1990, to July 1, 1994, as determined
by 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) 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 section 407 are
coordinated with the job training programs established by
title II of the Job Training Partnership Act, or (if such
title is repealed by the Consolidated and Reformed
Education, Employment, and Rehabilitation Systems Act) the
Consolidated and Reformed Education, Employment, and
Rehabilitation Systems Act; 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) of this paragraph 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) Appropriations.--
``(i) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary for grants under this
paragraph--
``(I) $150,000,000 for fiscal year 1999;
``(II) $850,000,000 for fiscal year 2000;
``(III) $900,000,000 for fiscal year 2001; and
``(IV) $1,100,000,000 for fiscal year 2002 and for each
succeeding fiscal year.
``(ii) Availability.--Amounts appropriated pursuant to
clause (i) shall 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.--
``(A) Out of any money in the Treasury of the United States
not otherwise appropriated, there are appropriated for fiscal
years 1997, 1998, 1999, 2000, 2001 and 2002 such sums as are
necessary for payment to the Fund in a total amount not to
exceed $2,000,000,000, except as provided in subparagraphs
(B) and (C).
``(B) If--
``(i) the average rate of total unemployment in the United
States for the most recent 3 months for which data for all
States are available is not less than 7 percent; and
``(ii) there are insufficient amounts in the Fund to pay
all State claims under paragraph (4) for a quarter in that
fiscal year;
then there are appropriated for that fiscal year, in addition
to amounts appropriated under paragraph (2)(A), such sums as
equal the difference between the amount needed to pay all
State claims for that quarter and the amount remaining in the
Fund.
``(C) If--
``(i)(I)(aa) the average rate of total unemployment in a
State (seasonally adjusted) for the period consisting of the
most recent 3 months for which data for all States are
published is not less than 9 percent; or
``(bb) the average rate of total unemployment in such State
(seasonally adjusted) for the 3-month period is not less than
120 percent of such average rate for either of the prior 2
years; or
``(II) the average number of persons in the State receiving
assistance under the food stamp program, as defined in
section 3(h) of the Food Stamp Act of 1977, for the most
recent 3-month period for which data are available is not
less than 120 percent of such average monthly number for
fiscal year 1994 or for fiscal year 1995; and
``(ii) there are insufficient amounts in the Fund to pay
all State claims under paragraph (4) for a quarter in that
fiscal year; then
there are appropriated for payment to the Fund for that
fiscal year, in addition to amounts appropriated pursuant to
paragraph (2)(A), for payments to States described in this
subparagraph, the amount by which payments to such States
under paragraph (4) would otherwise be reduced under
paragraph (8).
``(3) Payments to states.--The method of computing and
paying amounts to States from the Fund under this subsection
shall be as follows:
``(A) The Secretary shall, before each quarter, estimate
the amount to be paid to each State for the quarter from the
Fund, such estimate to be based on--
``(i) a report filed by the State containing an estimate by
the State of qualifying State expenditures for the quarter;
and
``(ii) such other information as the Secretary may find
relevant and reliable.
``(B) The Secretary shall then certify to the Secretary of
the Treasury the amount so estimated by the Secretary.
``(C) The Secretary of the Treasury shall thereupon pay to
the State, at the time or times fixed by the Secretary, the
amount so certified.
``(4) Grants.--From amounts appropriated pursuant to
paragraph (2), the Secretary of the Treasury shall pay to
each eligible State for a fiscal year an amount equal to the
lesser of--
``(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 of the State in the fiscal year under
the State program funded under this part and expenditures on
cash assistance under other State programs with respect to
eligible families (as defined in section
409(a)(5)(B)(i)(III)) exceed historic State expenditures (as
defined in section 409(a)(5)(B)(iii)); or
``(B) the number of percentage points (if any) by which 40
percent of the State family assistance grant for the fiscal
year exceeds any payment to the State for the fiscal year
under section 403(a)(3).
[[Page H7913]]
``(5) Annual reconciliation.--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 (4) during the fiscal year exceeds the
lesser of--
``(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 of the State in the fiscal year under
the State program funded under this part and expenditures on
cash assistance under other State programs with respect to
eligible families (as defined in section
409(a)(5)(B)(i)(III)) exceed historic State expenditures (as
defined in section 409(a)(5)(B)(iii)); or
``(B) the amount (if any) by which 40 percent of the State
family assistance grant for the fiscal year exceeds any
payment to the State for the fiscal year under section
403(a)(3).
``(6) Eligible state.--For purposes of this subsection, a
State is an eligible State for a fiscal year, if--
``(A)(i) the average rate of 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 is not less than 6.5 percent; and
``(ii) the average rate of total unemployment in such State
(seasonally adjusted) for the 3-month period is not less than
110 percent of such average rate for either 1994 or 1995;
or
``(B)(i) the average number of persons in the State
receiving assistance under the food stamp program, as defined
in section 3(h) of the Food Stamp Act of 1977, for the most
recent 3-month period for which data are available is not
less than 110 percent of the product of--
``(I) such average monthly number for either fiscal year
1994 or fiscal year 1995; and
``(II) the number of percentage points (if any) by which
100 percent exceeds the percentage by which the Bipartisan
Welfare Reform Act of 1996, had it been in effect, would have
reduced such average monthly number in such State in such
fiscal year, as most recently estimated by the Secretary of
Agriculture before the date of the enactment of such Act; and
``(ii) the State is not participating in the program
established under section 23(b) of the Food Stamp Act of
1977.
``(7) State.--As used in this subsection, the term `State'
means each of the 50 States of the United States and the
District of Columbia.
``(8) Payment priority.--Claims by States for payment from
the Fund shall be filed quarterly. If the total amount of
claims for any quarter exceeds the amount available for
payment from the fund, claims shall be paid on a pro rata
basis in a manner to be determined by the Secretary, except
in the case of a State described in paragraph (2)(C).
``(9) Annual reports.--The Secretary of the Treasury shall
annually report to Congress on the status of the Fund.
``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 20 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 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 the Child Care and Development Block Grant Act of 1990
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 such Act 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(e).
``(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
[[Page H7914]]
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; INDIVIDUAL
RESPONSIBILITY PLANS.
``(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......................................................20
1998......................................................25
1999......................................................30
2000......................................................35
2001......................................................40
2002 or thereafter........................................50.
``(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:
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).
``(C) Special rule.--An individual shall be considered to
be engaged in work and to be an adult recipient of assistance
under a State program funded under this part for purposes of
subparagraph (B) for the first 6 months (whether or not
consecutive) after the first cessation of assistance to an
individual under the program during which the individual is
employed for an average of more than 25 hours per week in an
unsubsidized job in the private sector.
``(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 number of families receiving assistance during
the fiscal year under the State program funded under this
part is less than
``(ii) the number of families that received aid under the
State plan approved under part A (as in effect on September
30, 1995) during fiscal year 1994 or 1995, whichever is the
greater.
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 such
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),
(7), or (8) of subsection (d) (or, if the participation of
the recipient in an activity described in subsection (d)(6)
has been taken into account for purposes of paragraph (1) or
(2) of subsection (b) for fewer than 4 weeks in the fiscal
year, an activity described in subsection (d)(6)):
The minimum
``If the month is average number of
in fiscal year: hours per week is:
1996......................................................20
1997......................................................20
1998......................................................20
1999 or thereafter....................................25.
``(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 such
activities for at least 25 hours per week 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),
(7), or (8) of subsection (d) (or, if the participation of
the recipient in an activity described in subsection (d)(6)
has been taken into account for purposes of paragraph (1) or
(2) of subsection (b) for fewer than 8 weeks (no more than 4
of which may be consecutive) in the fiscal year, an activity
described in subsection (d)(6)).
``(3) 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.
``(4) Option to reduce number of hours of work required of
single parents with a child under age 6.--Notwithstanding
paragraph (1), a State may reduce to 20 the number of hours
per week during which a single custodial parent is required
pursuant to this section to engage in work activities if the
family of the parent includes an individual who has not
attained 6 years of age.
``(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--
``(A) has not completed secondary school; and
``(B) is a dependent child, or a head of household who has
not attained 20 years of age.
``(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
[[Page H7915]]
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 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) 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 applicant for, or
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 paragraph (1) with respect to an individual, the State
agency, in consultation with the individual, shall develop an
individual responsibility plan for the individual, which--
``(i) shall provide that participation by the individual in
job search activities shall be a condition of eligibility for
assistance under the State program funded under this part,
except during any period for which the individual is employed
full-time in an unsubsidized job in the private sector;
``(ii) sets forth an employment goal for the individual and
a plan for moving the individual immediately into private
sector employment;
``(iii) 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;
``(iv) to the greatest extent possible shall be 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;
``(v) shall describe 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
``(vi) at the option of the State, may require the
individual to undergo appropriate substance abuse treatment.
``(B) Timing.--The State agency shall comply with
subparagraph (A) 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) Provision of program and employment information.--The
State shall inform all applicants for and recipients of
assistance under the State program funded under this part of
all available services under the program for which they are
eligible.
``(4) Penalty for noncompliance by individual.--The State
shall reduce, by such amount as the State considers
appropriate, the amount of assistance otherwise payable under
the State program funded under this part to a family that
includes an individual who fails without good cause to comply
with an individual responsibility plan signed by the
individual.
``(h) 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.
``(i) 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.
``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 title I of the
Bipartisan Welfare Reform 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 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, modifying, or enforcing a support
order with respect to a child of the individual, 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
[[Page H7916]]
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, except to the extent
necessary to enable the State to comply with section 457.
``(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--
``(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 cash
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.
``(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.
``(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 90 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
[[Page H7917]]
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 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 a payment under a State plan for
old-age assistance approved under section 2, a State program
funded under part B that provides cash payments for foster
care, or the supplemental security income program under title
XVI, then the State shall not 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) Provision of vouchers to families denied cash
assistance due to state-imposed time limits.--
``(A) Requirement.--If a family is denied assistance under
the State program funded under this part by reason of a time
limit imposed by the State other than pursuant to paragraph
(8), the State shall provide vouchers to the family in
accordance with subparagraph (B).
``(B) Characteristics of vouchers.--The vouchers referred
to in subparagraph (A) shall be--
``(i) in an amount equal to the amount determined by the
State to meet the needs of only the child or children in the
family, which shall be determined in the same manner as the
State would otherwise determines the needs of the child or
children under the program;
``(ii) designed appropriately to pay a third party for
goods and services to be provided by the third party to the
child or children in the family; and
``(iii) redeemable by a third party described in clause
(ii) for a dollar amount equal to the amount of the voucher.
``(b) Aliens.--For special rules relating to the treatment
of aliens, see section 402 of the Bipartisan Welfare Reform
Act of 1996.
``SEC. 409. PENALTIES.
``(a) In General.--Subject to this section:
``(1) 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 for a fiscal quarter if the State submits
the report before the end of the immediately succeeding
fiscal quarter.
``(2) 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.
``(3) 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 in accordance with such
part, 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.
``(4) 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 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.
``(5) 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
1997, 1998, 1999, 2000, 2001, or 2002 by the amount (if any)
by which qualified State expenditures for the then
immediately preceding fiscal year is less than the applicable
percentage of historic State expenditures with respect to the
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
eligible families.
``(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) such 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 such 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 who would be eligible for such assistance but
for the application of paragraph (2) or (8) of section 408(a)
of this Act or section 402 of the Bipartisan Welfare Reform
Act of 1996.
``(ii) Applicable percentage.--The term `applicable
percentage' means--
``(I) for fiscal year 1996, 85 percent; and
``(II) for fiscal years 1997, 1998, 1999, 2000, and 2001,
85 percent adjusted (if appropriate) in accordance with
subparagraph (C).
``(iii) Historic state expenditures.--The term `historic
State expenditures' means, with respect to a State and a
fiscal year specified in subparagraph (A), 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 for the fiscal
year immediately preceding the fiscal year specified in
subparagraph (A), 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) Performance-based adjustments to applicable
percentage.--
``(i) Increase in maintenance of effort threshold for
failure to meet participation rates.--If the Secretary
determines that a State has failed to achieve the
participation rate required by section 407 for a fiscal year,
the Secretary shall increase the applicable percentage for
the State for the immediately succeeding fiscal year by not
more than 5 percentage points. In determining the amount of
any such increase, the Secretary shall take into account any
increase in the number of persons served by the State program
and any increase in the unemployment rate of the State, in
accordance with regulations which the Secretary shall
prescribe.
``(ii) Reduction in maintenance of effort threshold for
high performance states.--
``(I) Criteria.--The Secretary shall, by regulation,
establish measures of the effectiveness of the State program
funded under this part in moving recipients of assistance
under the program into full-time unsubsidized employment. In
developing the regulations, the Secretary shall take into
account the length of time former recipients of assistance
under the program remain employed, the earnings of such
former recipients who obtain private sector employment, the
total State caseload under the program, and the rate of
unemployment in the State.
[[Page H7918]]
``(II) Reduction of threshold.--The Secretary shall reduce
the applicable percentage for a State for a fiscal year by
not more than 5 percentage points if the Secretary determines
that the State achieved the participation rate required by
section 407 for the immediately preceding fiscal year and
exceeded such performance threshold as the Secretary may
establish under subclause (I) of this clause.
``(6) 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) of this paragraph
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.
``(7) 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 State has failed,
during the fiscal year, to expend under the State program
funded under this part an amount equal to at least 100
percent of the level of historic State expenditures (as
defined in paragraph (7)(B)(iii) of this subsection) with
respect to 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 the total of the
amounts so paid to the State.
``(8) 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.
``(9) Failure to provide voucher assistance.--If the
Secretary determines that a State program funded under this
part has failed to comply with section 408(a)(13) during a
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 the difference
between the amount the State would have expended on voucher
assistance pursuant to section 408(a)(13) during the fiscal
year in the absence of such noncompliance and the amount the
State expended on such voucher assistance during the fiscal
year.
``(10) Failure to provide transitional medical
assistance.--If the Secretary determines that a State has not
complied with section 408(a)(15) during a quarter, the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding quarter by
an amount equal to 5 percent of the portion of the State
family assistance grant that is payable to the State for such
succeeding quarter.
``(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 subsection (a)(5).
``(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-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.
``(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.
``(e) Other Penalties.--If, after reasonable notice and
opportunity for hearing to the State agency administering or
supervising the administration of a State program funded
under this part, the Secretary finds that the State has
failed to comply substantially with any provision of this
part or of the State plan approved under section 402, the
Secretary shall, if subsection (a) does not apply to the
failure, notify the State agency that further payments will
not be made to the State under this part (or, in the
Secretary's discretion, that the payments will be reduced or
limited to categories under, or parts of, the State program
not affected by the failure) until the Secretary is satisfied
that there is no longer any such failure to comply. Until the
Secretary is so satisfied, the Secretary shall make no
further payments to the State (or shall reduce or limit
payments to categories under or parts of the State program
not affected by the failure).
``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.--Beginning July 1, 1996, each
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.
[[Page H7919]]
``(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) 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.
``(xv) Any amount of unearned income received by any member
of the family.
``(xvi) The citizenship of the members of the family.
``(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 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,
and 2000 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
[[Page H7920]]
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.--Subsections (a)(4), (b), and (e) 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.
``(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 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) 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).
``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 title I of
the Bipartisan Welfare Reform 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 Bipartisan
Welfare Reform Act of 1996, the amendments made by 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 Bipartisan Welfare Reform
Act of 1996 and approved by the Secretary before the
effective date of this title, 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
Bipartisan Welfare Reform Act of 1996) that are greater than
would occur in the absence of the waiver, such amendments
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.
``(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.
[[Page H7921]]
``(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 the later of--
``(i) January 1, 1996; or
``(ii) 90 days following the adjournment of the first
regular session of the State legislature that begins after
the date of the enactment of the Bipartisan Welfare Reform
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. 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 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.''.
SEC. 104. 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 103 of this Act).
(B) Any other program established or modified under title
I, II, or VI of this Act, 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;
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. 105. 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.
[[Page H7922]]
(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. 106. 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. 107. 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)(5)(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. 108. 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) Amendment to Part B of Title IV.--Section 422(b)(2) (42
U.S.C. 622(b)(2)) is amended by striking ``under the State
plan approved'' and inserting ``under the State program
funded.''.
(c) 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 agency administering the
State plan approved under this part'' after ``found''; and
(C) by striking ``under section 402(a)(26)'' and inserting
``with the State in establishing paternity''.
(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)(4)''.
(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''.
(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''.
(d) Amendments to Part E of Title IV.--
(1) Section 470 (42 U.S.C. 670) is amended--
(A) by striking ``would be'' and inserting ``would have
been''; and
(B) by inserting ``(as such plan was in effect on March 1,
1996)'' after ``part A''.
(2) Section 471(17) (42 U.S.C. 671(17)) is amended by
striking ``plans approved under parts A and D'' and inserting
``program funded under part A and plan approved under part
D''.
(3) Section 472(a) (42 U.S.C. 672(a)) is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``would meet'' and inserting ``would have
met'';
(ii) by inserting ``(as such sections were in effect on
June 1, 1995)'' after ``407''; and
(iii) by inserting ``(as so in effect)'' after ``406(a)'';
and
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by inserting ``would have'' after ``(A)''; and
(II) by inserting ``(as in effect on June 1, 1995)'' after
``section 402''; and
(ii) in subparagraph (B)(ii), by inserting ``(as in effect
on June 1, 1995)'' after ``406(a)''.
(4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as
follows:
``(h)(1) For purposes of title XIX, any child with respect
to whom foster care maintenance payments are made under this
section shall be deemed to be a dependent child as defined in
section 406 (as in effect as of June 1, 1995) and shall be
deemed to be a recipient of aid to families with dependent
children under part A of this title (as so in effect). For
purposes of title XX, any child with respect to whom foster
care maintenance payments are made under this section shall
be deemed to be a minor child in a needy family under a State
program funded under part A and shall be deemed to be a
recipient of assistance under such part.
``(2) For purposes of paragraph (1), 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 the child's minor parent, as provided in section
475(4)(B), shall be considered a child with respect to whom
foster care maintenance payments are made under this
section.''.
(5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting ``(as such sections were in effect on June
1, 1995)'' after ``407'';
(ii) by inserting ``(as so in effect)'' after ``specified
in section 406(a)''; and
(iii) by inserting ``(as such section was in effect on June
1, 1995)'' after ``403'';
(B) in subparagraph (B)(i)--
(i) by inserting ``would have'' after ``(B)(i)''; and
(ii) by inserting ``(as in effect on June 1, 1995)'' after
``section 402''; and
(C) in subparagraph (B)(ii)(II), by inserting ``(as in
effect on June 1, 1995)'' after ``406(a)''.
(6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as
follows:
``(b)(1) For purposes of title XIX, any child who is
described in paragraph (3) shall be deemed to be a dependent
child as defined in section 406 (as in effect as of June 1,
1995) and shall be deemed to be a recipient of aid to
families with dependent children under part
[[Page H7923]]
A of this title (as so in effect) in the State where such
child resides.
``(2) For purposes of title XX, any child who is described
in paragraph (3) shall be deemed to be a minor child in a
needy family under a State program funded under part A and
shall be deemed to be a recipient of assistance under such
part.
``(3) A child described in this paragraph is any child--
``(A)(i) who is a child described in subsection (a)(2), and
``(ii) with respect to whom an adoption assistance
agreement is in effect under this section (whether or nor
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
``(B) with respect to whom foster care maintenance payments
are being made under section 472.
``(4) For purposes of paragraphs (1) and (2), 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 the child's minor parent, as provided in
section 475(4)(B), shall be considered a child with respect
to whom foster care maintenance payments are being made under
section 472.''.
(e) Repeal of Part F of Title IV.--Part F of title IV (42
U.S.C. 681-687) is repealed.
(f) 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''.
(g) Amendments to Title XI.--
(1) Section 1108 (42 U.S.C. 1308) is amended--
(A) by redesignating subsection (c) as subsection (g);
(B) 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 and B
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
and B 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 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
(C) by striking subsections (d) and (e).
(2) Section 1109 (42 U.S.C. 1309) is amended by striking
``or part A of title IV,''.
(3) 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 ``under the program
of aid to families with dependent children'' and inserting
``part A of such title''.
(4) 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,''.
(5) 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''.
(6) Section 1119 (42 U.S.C. 1319) is amended--
(A) by striking ``or part A of title IV''; and
(B) by striking ``403(a),''.
(7) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by
striking ``or part A of title IV,''.
(8) Section 1136 (42 U.S.C. 1320b-6) is repealed.
(9) 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.
(h) 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''.
(i) 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''.
(j) 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,''.
(k) Amendment to Title XIX.--Section 1902(j) (42 U.S.C.
1396a(j)) is amended by striking ``1108(c)'' and inserting
``1108(g)''.
[[Page H7924]]
SEC. 109. 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 March 1, 1996''; 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 March 1, 1996''; 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 March 1, 1996''; 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. 110. 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,
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) 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,
[[Page H7925]]
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:
``(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. 111. 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
[[Page H7926]]
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. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.
(a) In General.--Whenever an organization that accepts
Federal funds under this Act or the amendments made by this
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 Act or the amendments made by this Act.
(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. 113. 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 part A of 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. 114. 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 title.
SEC. 115. APPLICATION OF CURRENT AFDC STANDARDS UNDER
MEDICAID PROGRAM.
(a) In General.--Title XIX is amended--
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new
section:
``application of afdc standards and methodology
``Sec. 1931. (a)(1) Subject to the succeeding provisions of
this section, with respect to a State 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 (or a provision of such a plan),
including standards and methodologies for determining income
and resources under such part or plan, shall be considered a
reference to such a provision or plan as in effect as of July
1, 1996, with respect to the State.
``(2) In applying section 1925(a)(1), the reference to
`section 402(a)(8)(B)(ii)(II)' is deemed a reference to a
corresponding earning disregard rule (if any) established
under a State program funded under part A of title IV (as in
effect on and after October 1, 1996).
``(3) The provisions of section 406(h) (as in effect on
July 1, 1996) shall apply, in relation to this title, with
respect to individuals who receive assistance under a State
program funded under part A of title IV (as in effect on and
after October 1, 1996) and are eligible for medical
assistance under this title or who are described in
subsection (b)(1) in the same manner as they apply before
such date with respect to individuals who become ineligible
for aid to families with dependent children as a result
(wholly or partly) of the collection or increased collection
of child or spousal support under part D of title IV.
``(4) With respect to the reference in section 1902(a)(5)
to a State plan approved under part A of title IV, a State
may treat such reference as a reference either to a State
program funded under such part (as in effect on and after
October 1, 1996) or to the State plan under this title.
``(b)(1) For purposes of this title, subject to paragraph
(2), in determining eligibility for medical assistance, an
individual shall be deemed to be receiving aid or assistance
under a State plan approved under part A of title IV (and
shall be treated as meeting the income and resource standards
under such part) only if the individual meets--
``(A) the income and resource standards under such plan,
and
``(B) the eligibility requirements of such plan under
subsections (a) through (c) of section 406 and section
407(a),
as in effect as of July 1, 1996. Subject to paragraph (2)(B),
the income and resource methodologies under such plan as of
such date shall be used in the determination of whether any
individual meets income and resource standards under such
plan.
``(2) For purposes of applying this section, a State may--
``(A) lower its income standards applicable with respect to
part A of title IV, but not below the income standards
applicable under its State plan under such part on May 1,
1988; and
``(B) use income and resource standards or methodologies
that are less restrictive than the standards or methodologies
used under the State plan under such part as of July 1, 1996.
``(3) For purposes of applying this section, a State may,
subject to paragraph (4), treat all individuals (or
reasonable categories of individuals) receiving assistance
under the State program funded under part A of title IV (as
in effect on or after October 1, 1996) as individuals who are
receiving aid or assistance under a State plan approved under
part A of title IV (and thereby eligible for medical
assistance under this title).
``(4) For purposes of section 1925, an individual who is
receiving assistance under the State program funded under
part A of title IV (as in effect on or after October 1, 1996)
and is eligible for medical assistance under this title shall
be treated as an individual receiving aid or assistance
pursuant to a plan of the State approved under part A of
title IV (as in effect as of July 1, 1996) (and thereby
eligible for continuation of medical assistance under such
section).
``(c) 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 1,
1996, if the waiver affects eligibility of individuals for
medical assistance under this title, such waiver may (but
need not) continue to be applied, at the option of the State,
in relation to this title after the date the waiver would
otherwise expire. If a State elects not to continue to apply
such a waiver, then, after the date of the expiration of the
waiver, subsection (a) shall be applied as if any provisions
so waived had not been waived.
``(d) Nothing in this section, or part A of title IV, shall
be construed as preventing a State from providing for the
same application form for assistance under a State program
funded under part A of title IV (on or after October 1, 1996)
and for medical assistance under this title.
``(e) The provisions of this section shall apply
notwithstanding any other provision of this title.''.
(b) Plan Amendment.--Section 1902(a) (42 U.S.C. 1396a(a))
is amended--
(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 administration and determinations of
eligibility with respect to individuals who are (or seek to
be) eligible for medical assistance based on the application
of section 1931.''.
(c) Elimination of Requirement of Minimum AFDC Payment
Levels.--(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).
[[Page H7927]]
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) In General.--Except as otherwise provided in this
title, this title and the amendments made by this title shall
take effect on October 1, 1996.
(b) Transition Rules.--
(1) State option to accelerate effective date.--
(A) In general.--If, within 3 months after the date of the
enactment of this Act, 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 103 of this Act), this title and the
amendments made by this title (except section 409(a)(5) of
the Social Security Act, as added by the amendment made by
such section 103) shall also apply with respect to the State
during the period that begins on the date the Secretary
approves the plan and ends on September 30, 1996, except that
the State shall be considered an eligible State for fiscal
year 1996 for purposes of part A of title IV of the Social
Security Act (as in effect pursuant to the amendment made by
such section 103).
(B) Limitations on federal obligations.--
(i) Under afdc program.--If the Secretary receives from a
State the plan referred to in subparagraph (A), 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 by the State
after the date of the enactment of this Act shall not exceed
an amount equal to--
(I) the State family assistance grant (as defined in
section 403(a)(1)(B) of the Social Security Act (as in effect
pursuant to the amendment made by section 103 of this Act));
minus
(II) any 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 by
the State during the period that begins on October 1, 1995,
and ends on the day before the date of the enactment of this
Act.
(ii) Under temporary family assistance program.--
Notwithstanding section 403(a)(1) of the Social Security Act
(as in effect pursuant to the amendment made by section 103
of this Act), the total obligations of the Federal Government
to a State under such section 403(a)(1) for fiscal year 1996
after the termination of the State AFDC program shall not
exceed an amount equal to--
(I) the amount described in clause (i)(I) of this
subparagraph; minus
(II) any 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 by
the State on or after October 1, 1995.
(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 deemed
acceptance of grant limitations and formula.--The submission
of a plan by a State pursuant to subparagraph (A) is deemed
to constitute the State's acceptance of the grant reductions
under subparagraph (B)(ii) (including the formula for
computing the amount of the reduction).
(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.
(2) Claims, actions, and proceedings.--The amendments made
by this title 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 title 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 title.--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 before the effective date of this Act) 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) no later than September 30, 1997. 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 title.
(4) Continuance in office of assistant secretary for family
support.--The individual who, on the day before the effective
date of this title, 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
103 of this Act).
TITLE II--SUPPLEMENTAL SECURITY INCOME
SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in this
title 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.
Subtitle A--Eligibility Restrictions
SEC. 201. 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 1614(a) (42 U.S.C. 1382c(a)) is
amended by adding at the end the following new paragraph:
``(5) An individual shall not be considered an eligible
individual for the purposes of this title 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
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) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND
PROBATION AND PAROLE VIOLATORS.
(a) In General.--Section 1611(e) (42 U.S.C. 1382(e)) is
amended by inserting after paragraph (3) the following new
paragraph:
``(4) A person shall not 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 With Law Enforcement
Agencies.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by
subsection (a), is amended by inserting after paragraph (4)
the following new paragraph:
``(5) Notwithstanding any other provision of law, the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the 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 notifies the Commissioner that--
``(A) the recipient--
``(i) is described in subparagraph (A) or (B) of paragraph
(4); 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. 203. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI
DISABILITY BENEFITS.
Section 1631 (42 U.S.C. 1383) is amended by adding at the
end the following new subsection:
``(o)(1) Notwithstanding any other provision of law, if the
Commissioner of Social Security determines that an
individual, who is 18 years of age or older, is eligible to
receive benefits pursuant to section 1614(a)(3), the
Commissioner shall, at the time of the determination, either
exempt the individual from an eligibility review or establish
a schedule for reviewing the individual's continuing
eligibility in accordance with paragraph (2).
``(2)(A) The Commissioner shall establish a periodic review
with respect to the continuing eligibility of an individual
to receive benefits, unless the individual is exempt from
review under subparagraph (C) or is subject to a scheduled
review under subparagraph (B). A periodic review under this
subparagraph shall be initiated by the Commissioner not later
than 30 months after the date a determination is made that
the individual is eligible for benefits and every 30 months
thereafter, unless a waiver is granted under section
221(i)(2). However, the Commissioner shall not postpone the
initiation
[[Page H7928]]
of a periodic review for more than 12 months in any case in
which such waiver has been granted unless exigent
circumstances require such postponement.
``(B)(i) In the case of an individual, other than an
individual who is exempt from review under subparagraph (C)
or with respect to whom subparagraph (A) applies, the
Commissioner shall schedule a review regarding the
individual's continuing eligibility to receive benefits at
any time the Commissioner determines, based on the evidence
available, that there is a significant possibility that the
individual may cease to be entitled to such benefits.
``(ii) The Commissioner may establish classifications of
individuals for whom a review of continuing eligibility is
scheduled based on the impairments that are the basis for
such individuals' eligibility for benefits. A review of an
individual covered by a classification shall be scheduled in
accordance with the applicable classification, unless the
Commissioner determines that applying such schedule is
inconsistent with the purpose of this Act or the integrity of
the supplemental security income program.
``(C)(i) The Commissioner may exempt an individual from
review under this subsection, if the individual's eligibility
for benefits is based on a condition that, as a practical
matter, has no substantial likelihood of improving to a point
where the individual will be able to perform substantial
gainful activity.
``(ii) The Commissioner may establish classifications of
individuals who are exempt from review under this subsection
based on the impairments that are the basis for such
individuals' eligibility for benefits. Notwithstanding any
such classification, the Commissioner may, at the time of
determining an individual's eligibility, schedule a review of
such individual's continuing eligibility if the Commissioner
determines that a review is necessary to preserve the
integrity of the supplemental security income program.
``(3) The Commissioner may revise a determination made
under paragraph (1) and schedule a review under paragraph
(2)(B), if the Commissioner obtains credible evidence that an
individual may no longer be eligible for benefits or the
Commissioner determines that a review is necessary to
maintain the integrity of the supplemental security income
program. Information obtained under section 1137 may be used
as the basis to schedule a review.
``(4)(A) The requirements of sections 1614(a)(4) and 1633
shall apply to reviews conducted under this subsection.
``(B) Such reviews may be conducted by the applicable State
agency or the Commissioner, whichever is appropriate.
``(5) Not later than 3 months after the date of the
enactment of this subsection, the Commissioner shall
establish a schedule for reviewing the continuing eligibility
of each individual who is receiving benefits pursuant to
section 1614(a)(3) on such date of enactment and who has
attained 18 years of age, unless such individual is exempt
under paragraph (2)(C). Such review shall be scheduled under
the procedures prescribed by or under paragraph (2), except
that the reviews shall be scheduled so that the eligibility
of \1/3\ of all such nonexempt individuals is reviewed within
1 year after such date of enactment, the eligibility of \1/3\
of such nonexempt individuals is reviewed within 1 year after
such date of enactment, and all remaining nonexempt
individuals who continue receiving benefits shall have their
eligibility reviewed within 3 years after such date of
enactment. Each individual determined eligible to continue
receiving benefits in a review scheduled under this paragraph
shall, at the time of the determination, be subject to
paragraph (2).''.
SEC. 204. 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 a contract, with
any interested State or local institution referred to in
subparagraph (A), under which--
``(I) the institution shall provide to the Commissioner, on
a monthly basis, the names, social security account numbers,
dates of birth, and 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 (or
becomes eligible only for a benefit payable at a reduced
rate) as a result of the application of this paragraph, an
amount not to exceed $400 if the institution furnishes the
information described in subclause (I) to the Commissioner
within 30 days after such individual becomes an inmate of
such institution, or an amount not to exceed $200 if the
institution furnishes such information after 30 days after
such date but within 90 days after such date.
``(ii) The provisions of section 552a of title 5, United
States Code, shall not apply to any contract entered into
under clause (i) or to information exchanged pursuant to such
contract.''.
(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 a contract, 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, the names, social security account numbers,
dates of birth, and 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), an amount not
to exceed $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 an amount not to exceed $200 if the
institution furnishes such information after 30 days after
such date but within 90 days after such date.
``(ii) The provisions of section 552a of title 5, United
States Code, shall not apply to any contract entered into
under clause (i) or to information exchanged pursuant to such
contract.''.
(b) Denial of SSI Benefits for 10 Years to a Person Found
To Have Fraudulently Obtained SSI Benefits While in Prison.--
(1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)),
as amended by subsection (a)(1), is amended by adding at the
end the following new subparagraph:
``(J) In any case in which the Commissioner of Social
Security finds that a person has made a fraudulent statement
or representation in order to obtain or to continue to
receive benefits under this title while being an inmate in a
penal institution, such person shall not be considered an
eligible individual or eligible spouse for any month ending
during the 10-year period beginning on the date on which such
person ceases being such an inmate.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to statements or representations
made on or after the date of the enactment of this Act.
(c) 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.
(d) 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 contracts 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 contracts 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.
SEC. 205. 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.
[[Page H7929]]
(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.
SEC. 206. 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 XV or 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. 207. 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.
Subtitle B--Benefits for Disabled Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) Definition of Childhood Disability.--Section 1614(a)(3)
(42 U.S.C. 1382c(a)(3)) 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 (H) as
subparagraphs (D) through (I), respectively;
(4) by inserting after subparagraph (B) the following new
subparagraph:
``(C) 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.''; and
(5) in subparagraph (F), as so redesignated by paragraph
(3) of this subsection, 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) Effective Date; Regulations; Application to Current
Recipients.--
(1) In general.--The amendments made by subsections (a) and
(b) shall apply to applicants for 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.
(2) Regulations.--The Commissioner of Social Security shall
issue such regulations as the Commissioner determines to be
necessary to implement the amendments made by subsections (a)
and (b) not later than 60 days after the date of the
enactment of this Act.
(3) Application to current recipients.--
(A) Eligibility determinations.--Not later than 1 year
after the date of the enactment of this Act, the Commissioner
of Social Security shall redetermine the eligibility of any
individual under age 18 who is receiving supplemental
security income benefits based on a 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 amendments made by subsection
(a) or (b). With respect to any redetermination under this
subparagraph--
[[Page H7930]]
(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 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 redetermination with
respect to the individual.
(C) Notice.--Not later than 90 days after the date of the
enactment of this Act, the Commissioner of Social Security
shall notify an individual described in subparagraph (A) of
the provisions of this paragraph.
SEC. 212. 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 so redesignated by section 211(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 may improve (or, which is
unlikely to improve, at the option of the Commissioner).
``(II) A parent or guardian 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.''.
(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 so redesignated by section 211(a)(3) of
this Act and 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 have attained the age
of 18 years.
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 so redesignated by section 211(a)(3) of
this Act and 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 parent or guardian 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.''.
(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.
(e) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary of Health and Human Services
for the conduct of continuing disability reviews pursuant to
the amendments made by this section--
(1) $200,000,000 for fiscal year 1997;
(2) $75,000,000 for fiscal year 1998; and
(3) $25,000,000 for fiscal year 1999.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) Tightening of Representative Payee Requirements.--
(1) Clarification of role.--Section 1631(a)(2)(B)(ii) (42
U.S.C. 1383(a)(2)(B)(ii)) is amended by striking ``and'' at
the end of subclause (II), by striking the period at the end
of subclause (IV) and inserting ``; and'', and by adding
after subclause (IV) the following new subclause:
``(V) advise such person through the notice of award of
benefits, and at such other times as the Commissioner of
Social Security deems appropriate, of specific examples of
appropriate expenditures of benefits under this title and the
proper role of a representative payee.''.
(2) Documentation of expenditures required.--
(A) In general.--Subparagraph (C)(i) of section 1631(a)(2)
(42 U.S.C. 1383(a)(2)) is amended to read as follows:
``(C)(i) In any case where payment is made to a
representative payee of an individual or spouse, the
Commissioner of Social Security shall--
``(I) require such representative payee to document
expenditures and keep contemporaneous records of transactions
made using such payment; and
``(II) implement statistically valid procedures for
reviewing a sample of such contemporaneous records in order
to identify instances in which such representative payee is
not properly using such payment.''.
(B) Conforming amendment with respect to parent payees.--
Clause (ii) of section 1631(a)(2)(C) (42 U.S.C.
1383(a)(2)(C)) is amended by striking ``Clause (i)'' and
inserting ``Subclauses (II) and (III) of clause (i)''.
(3) Effective date.--The amendments made by this subsection
shall apply to benefits paid after the date of the enactment
of this Act.
(b) Dedicated Savings Accounts.--
(1) In general.--Section 1631(a)(2)(B) (42 U.S.C.
1383(a)(2)(B)) is amended by adding at the end the following:
``(xiv) Notwithstanding clause (x), the Commissioner of
Social Security may, at the request of the representative
payee, pay any lump sum payment for the benefit of a child
into a dedicated savings account that could only be used to
purchase for such child--
``(I) education and job skills training;
``(II) special equipment or housing modifications or both
specifically related to, and required by the nature of, the
child's disability; and
``(III) appropriate therapy and rehabilitation.''.
(2) Disregard of trust funds.--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:
``(12) all amounts deposited in, or interest credited to, a
dedicated savings account described in section
1631(a)(2)(B)(xiv).''.
(3) Effective date.--The amendments made by this subsection
shall apply to payments made after the date of the enactment
of this Act.
SEC. 214. 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--
(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. 215. MODIFICATION RESPECTING PARENTAL INCOME DEEMED TO
DISABLED CHILDREN.
(a) In General.--Section 1614(f)(2) (42 U.S.C. 1382c(f)(2))
is amended--
(1) by adding at the end of subparagraph (A) the following:
``For purposes of the preceding sentence, the income of such
parent or spouse of such parent shall be reduced by--
``(A) the allocation for basic needs described in
subparagraph (C)(i); and
``(B) the earned income disregard described in subparagraph
(C)(ii).''; and
(2) by adding at the end the following:
``(C)(i) The allocation for basic needs described by this
clause is--
``(I) in the case of an individual who does not have a
spouse, an amount equal to 50 percent of the maximum monthly
benefit payable under this title to an eligible individual
who does not have an eligible spouse; or
``(II) in the case of an individual who has a spouse, an
amount equal to 50 percent of the maximum monthly benefit
payable under this title to an eligible individual who has an
eligible spouse.
``(ii) The earned income disregard described by this clause
is an amount determined by deducting the first $780 per year
(or proportionally smaller amounts for shorter periods) plus
64 percent of the remainder
[[Page H7931]]
from the earned income (determined in accordance with section
1612(a)(1)) of the parent (and spouse, if any).''.
(b) Preservation of Medicaid Eligibility.--Section 1634 (42
U.S.C. 1383c) is amended by adding at the end the following:
``(f) Any child who has not attained 18 years of age and
who would be eligible for a payment under this title but for
the amendment made by section 215(a) of the Peronsal
Responsibility and Work Opportunity Act of 1996 shall be
deemed to be receiving such payment for purposes of
eligibility of the child for medical assistance under a State
plan approved under title XIX of this Act.''.
(c) Effective Date.--The amendments made by this section
shall apply to months after 1996.
SEC. 216. GRADUATED BENEFITS FOR ADDITIONAL CHILDREN.
(a) In General.--Section 1611(b) (42 U.S.C. 1382(b)) is
amended by adding at the end the following:
``(3)(A) The benefit under this title for each eligible
blind or disabled individual as determined pursuant to
section 1611(a)(1) who--
``(i) is a child under the age of 18,
``(ii) lives in the same household as 1 or more persons who
are also eligible blind or disabled children under the age of
18, and
``(iii) does not live in a group or foster home,
shall be equal to the applicable percentage of the amount in
section 1611(b)(1), reduced by the amount of any income of
such child, including income deemed to such child under
section 1614(f)(2).
``(B) For purposes of this paragraph, the applicable
percentage shall be determined under the following table:
The applicable percentage for each eligible child is:
100 percentchild.......................................................
81.2 percenthildren....................................................
71.8 percenthildren....................................................
65.9 percenthildren....................................................
61.8 percenthildren....................................................
58.5 percenthildren....................................................
55.9 percenthildren....................................................
53.5 percenthildren....................................................
51.7 percenthildren....................................................
50.2 percentchildren...................................................
48.7 percentchildren...................................................
47.4 percent.''.dren or more...........................................
``(C) For purposes of this paragraph, the applicable
household size shall be determined by the number of eligible
blind and disabled children under the age of 18 in such
household whose countable income and resources do not exceed
the limits specified in section 1611(a)(1).''.
(b) Preservation of Medicaid Eligibility.--Section 1634 (42
U.S.C. 1383c), as amended by section 215(b) of this Act, is
amended by adding at the end the following:
``(g) Any child who has not attained 18 years of age and
would be eligible for a payment under this title but for the
limitation on payment amount imposed by section 1611(b)(3)
shall be deemed to be receiving such benefit for purposes of
establishing such child's eligibility for medical assistance
under a State plan approved under title XIX.''.
(c) Effective Date.--The amendments made by this section
shall take effect--
(1) on the date of the enactment of this Act, with respect
to payments made on the basis of determinations of
eligibility made on or after such date, and
(2) on January 1, 1998, with respect to payments made for
months beginning after such date on the basis of
determinations of eligibility made before the date of the
enactment of this Act.
Subtitle C--State Supplementation Programs
SEC. 221. 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.
Subtitle D--Studies Regarding Supplemental Security Income Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME
PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section
201(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
at initial determinations, reconsiderations, administrative
law judge hearings, council of appeals hearings, and Federal
court appeal hearings;
``(3) historical and current data on characteristics of
recipients and program costs, by recipient group (aged,
blind, work disabled adults, and 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 under this
section.''.
SEC. 232. 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 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. 233. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1998, 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 title 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.
Subtitle E--National Commission on the Future of Disability
SEC. 241. ESTABLISHMENT.
There is established a commission to be known as the
National Commission on the Future of Disability (referred to
in this subtitle as the ``Commission'').
SEC. 242. 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 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;
[[Page H7932]]
(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. 243. 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. 244. 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 subtitle.
(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. 245. 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 subtitle.
(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 subtitle. 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 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. 246. REPORTS.
(a) Interim Report.--Not later than 1 year prior to the
date on which the Commission terminates pursuant to section
247, 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. 247. 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. 248. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out the purposes of the Commission.
TITLE III--CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, where ever in
this title 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.
Subtitle A--Eligibility for Services; Distribution of Payments
SEC. 301. 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 and adoption
assistance are provided under the State program funded under
part B of this title, or (III) medical assistance is provided
under the State plan approved under title XIX, unless the
State agency administering the plan determines (in accordance
with paragraph (29)) that it is against the best interests of
the child to do so; and
``(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
[[Page H7933]]
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. 302. 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.--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.--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 302 of
the Bipartisan Welfare Reform 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 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)(A)) 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.--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 302 of
the Bipartisan Welfare Reform 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 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 of
the 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 necessary to reimburse
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, the State shall treat any support
arrearages collected 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;
and
``(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 Bipartisan Welfare Reform 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 Bipartisan Welfare Reform 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 Bipartisan Welfare Reform Act of 1996); or
``(B) benefits under the State plan approved under part E
of this title (as in effect on the day before the date of the
enactment of the Bipartisan Welfare Reform Act of 1996).
``(2) Federal share.--The term `Federal share' means that
portion of the amount collected resulting from the
application of the Federal medical 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)) in the case of any other State.
[[Page H7934]]
``(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 Bipartisan
Welfare Reform Act of 1996), the State share for the fiscal
year shall be an amount equal to the State share 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. 303. PRIVACY SAFEGUARDS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by section 301(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. 304. RIGHTS TO NOTIFICATION AND HEARINGS.
(a) In General.--Section 454 (42 U.S.C. 654), as amended by
section 302(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.
Subtitle B--Locate and Case Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(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
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 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 State plans 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. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections 301(b) and 303(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 344(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 wages
of the absent parent are subject to withholding pursuant to
section 466(a)(8)(B).
``(2) Operation.--The State disbursement unit shall be
operated--
[[Page H7935]]
``(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.
``(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 344(a)(2) and as amended by section 311 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 wages and other
income--
``(i) within 2 business days after receipt from a court,
another State, an employer, the Federal Parent Locator
Service, or another source recognized by the State of notice
of, and the income source subject to, such withholding; 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 Date.--The amendments made by this section
shall become effective on October 1, 1998.
SEC. 313. STATE DIRECTORY OF NEW HIRES.
(a) State Plan Requirement.--Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a) and 312(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 this section (other than subsection (f)) not later than
October 1, 1997.
``(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 1996 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
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 wages of the employee an amount equal to
the monthly (or
[[Page H7936]]
other periodic) child support obligation (including any past
due support obligation) of the employee, unless the
employee's wages are 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.
``(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)''.
SEC. 314. 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 wages of a person with a
support obligation imposed by a support order issued (or
modified) in the 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 2 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 comply with the procedural
rules relating to income withholding of the State in which
the employee works, regardless of the State where the notice
originates.''.
(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 wage 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 wages, 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) Conforming Amendment.--Section 466(c) (42 U.S.C.
666(c)) is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by adding at
the end 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. 316. 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
[[Page H7937]]
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, 1996, 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).
``(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 such 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
[[Page H7938]]
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 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)''.
SEC. 317. 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 315 of this Act, is amended by
adding at the end 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.''.
Subtitle C--Streamlining and Uniformity of Procedures
SEC. 321. 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. 322. 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 2d
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 in this or another
State 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.
[[Page H7939]]
``(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. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315 and 317(a) of this Act, is amended by adding at the end
the following new paragraph:
``(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. 324. 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) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(11) not later than June 30, 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) no later than October 1, 1996, 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. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) State Law Requirements.--Section 466 (42 U.S.C. 666),
as amended by section 314 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 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 certain records.--To obtain access, subject
to safeguards on privacy and information security, to 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,
including--
``(I) customer records of public utilities and cable
television companies; and
``(II) information (including information on assets and
liabilities) on individuals who owe or are owed support (or
against or with respect to whom a support obligation is
sought) held by financial institutions (subject to
limitations on liability of such entities arising from
affording such access), as provided pursuant to agreements
described in subsection (a)(18).
``(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) 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 name 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
[[Page H7940]]
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 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 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 344(a)(2) and as amended by sections 311 and
312(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).''.
Subtitle D--Paternity Establishment
SEC. 331. 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
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, subject to
such good cause exceptions, taking into account the best
interests of the child, as the State may establish.
``(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 developed
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
[[Page H7941]]
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 develop 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. 332. 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
child support by means the State deems appropriate'' before
the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF
TEMPORARY FAMILY ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections 301(b),
303(a), 312(a), and 313(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 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 such good cause exceptions, taking into
account the best interests of the child, as the State may
establish through the State agency, or at the option of
the State, through the State agencies administering the
State programs funded under part A and 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 and 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 therefore.''.
Subtitle E--Program Administration and Funding
SEC. 341. 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 June 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 IV-D 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 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;''.
(3) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is
amended in the matter preceding clause (i)--
(A) by striking ``paternity establishment percentage'' and
inserting ``IV-D paternity establishment percentage''; and
(B) by striking ``(or all States, as the case may be)''.
(4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended by
adding at the end the following new sentence: ``In meeting
the 90 percent paternity establishment requirement, a State
may calculate either the paternity establishment rate of
cases in the program funded under this part or the paternity
establishment rate of all out-of-wedlock births in the
State.''.
(5) 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;
(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''; and
(C) in subparagraph (B) (as so redesignated) by inserting
``and securing support'' before the period.
(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, 1997, 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. 342. 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 IV-D 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;
[[Page H7942]]
``(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.
SEC. 343. 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 301(b), 303(a), 312(a), 313(a), and
333 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. 344. 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 IV-D 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 303(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 Bipartisan Welfare Reform 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 344(a)(3) of the Bipartisan Welfare Reform 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 May 1, 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. 345. 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.
[[Page H7943]]
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 316 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 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. 346. 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 (1) case'';
(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 ``(2)'' 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 all that follows subparagraph (J), as added by
paragraph (4).
(b) Effective Date.--The amendments made by subsection (a)
shall be effective with respect to fiscal year 1996 and
succeeding fiscal years.
Subtitle F--Establishment and Modification of Support Orders
SEC. 351. 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.--Procedures under which the State shall review and
adjust each support order being enforced under this part upon
the request of either parent or the State if there is an
assignment. Such procedures shall provide the following:
``(A) In general.--
``(i) 3-year cycle.--Except as provided in subparagraphs
(B) and (C), the State shall review and, as appropriate,
adjust the support order every 3 years, taking into account
the best interests of the child involved.
``(ii) Methods of adjustment.--The State may elect to
review and, if appropriate, adjust an order pursuant to
clause (i) by--
``(I) 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; or
``(II) 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).
``(iii) No proof of change in circumstances necessary.--Any
adjustment under this subparagraph (A) shall be made without
a requirement for proof or showing of a change in
circumstances.
``(B) Automated method.--The State may use 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) Request upon substantial change in circumstances.--
The State shall, at the request of either parent subject to
such an order or of any State child support enforcement
agency, review and, if appropriate, adjust the order in
accordance with the guidelines established pursuant to
section 467(a) based upon a substantial change in the
circumstances of either parent.
``(D) Notice of right to review.--The State shall provide
notice not less than once every 3 years to the parents
subject to such an order 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. 352. 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. 353. 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 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
[[Page H7944]]
(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(v));
(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).
(3) State child support enforcement agency.--The term
``State child support enforcement agency'' means a State
agency which administers a State program for establishing and
enforcing child support obligations.
Subtitle G--Enforcement of Support Orders
SEC. 361. 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. 362. 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
``(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,
[[Page H7945]]
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. 662(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. 662(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. 363. 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--
(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--
[[Page H7946]]
(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 362(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, 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. 364. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section 321 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. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD
SUPPORT.
(a) In General.--Section 466(a) of the Social Security Act
(42 U.S.C. 666(a)), as amended by sections 315, 317(a), and
323 of this Act, is amended by adding at the end 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 seek a court 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. 366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections 316 and
345(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. 367. 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. 368. 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,
without registration of the underlying order.''.
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315, 317(a), 323, and 365 of this Act, is amended by adding
at the end 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. 370. 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 345 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 section 370(b) of the Bipartisan Welfare Reform
Act of 1996.
``(2) The Secretary shall not be liable to an individual
for any action with respect to a certification by a State
agency under this section.''.
(2) State case agency responsibility.--Section 454 (42
U.S.C. 654), as amended by sections 301(b), 303(a), 312(b),
313(a), 333, and 343(b) of this Act, is amended--
(A) by striking ``and'' at the end of paragraph (29);
(B) by striking the period at the end of paragraph (30) and
inserting ``; and''; and
(C) by adding after paragraph (30) the following new
paragraph:
``(31) 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) State Department Procedure for Denial of Passports.--
(1) In general.--The Secretary of State shall, upon
certification by the Secretary of Health and Human Services
transmitted
[[Page H7947]]
under section 452(k) of the Social Security Act, refuse to
issue a passport to such individual, and may revoke,
restrict, or limit a passport issued previously to such
individual.
(2) Limit on liability.--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.
(c) Effective Date.--This section and the amendments made
by this section shall become effective October 1, 1996.
SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.
(a) Authority for International Agreements.--Part D of
title IV, as amended by section 362(a) of this Act, is
amended by adding after section 459 the following new
section:
``SEC. 459A. INTERNATIONAL CHILD 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 nation
regarding the establishment and enforcement of duties of
support have been so changed, or the foreign nation'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.--Child 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 child support enforcement in cases
involving residents of the foreign nation 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 child support enforcement in
cases involving residents of the United States and residents
of foreign nations 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 child 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 301(b), 303(a), 312(b), 313(a), 333,
343(b), and 370(a)(2) of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (30);
(2) by striking the period at the end of paragraph (31) and
inserting ``; and''; and
(3) by adding after paragraph (31) the following new
paragraph:
``(32)(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. 372. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315, 317(a), 323, 365, and 369 of this Act, is amended by
adding at the end 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' means any Federal or State commercial savings
bank, including savings association or cooperative bank,
Federal- or State-chartered credit union, benefit
association, insurance company, safe deposit company, money-
market mutual fund, or any similar entity authorized to do
business in the State; and
``(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. 373. 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
315, 317(a), 323, 365, 369, and 372 of this Act, is amended
by adding at the end 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 parents 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 parents of such child.''.
SEC. 374. 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) in paragraph (16) by striking the period at the end and
inserting ``; or'',
(2) by adding at the end the following:
``(17) to a State or municipality for assistance provided
by such State or municipality under a State program funded
under section 403 of the Social Security Act to the extent
that such assistance is provided for the support of a child
of the debtor.'', and
(3) in paragraph (5), by inserting `` or section 408''
after ``section 402(a)(26).
(b) Amendment to the Social Security Act.--Section 456(b)
of the Social Security Act (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) to a State (as
defined in such section) or municipality (as defined in such
section) for assistance provided by such State or
municipality under a State program funded under section 403
is not dischargeable under section 727, 1141, 1228(a),
1228(b), or 1328(b) of title 11 of the United States Code to
the extent that such assistance is provided for the support
of a child of the debtor (as defined in such section).''.
[[Page H7948]]
(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 effective
date of this section.
Subtitle H--Medical Support
SEC. 376. 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. 377. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections
315, 317(a), 323, 365, 369, 372, and 373 of this Act, is
amended by adding at the end 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.''.
Subtitle I--Enhancing Responsibility and Opportunity for Non-
Residential Parents
SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITATION
PROGRAMS.
Part D of title IV (42 U.S.C. 651-669) is amended by adding
at the end the following:
``SEC. 469A. 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 the amount
appropriated 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 1996 or 1997; 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 non-profit 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.''.
Subtitle J--Effect of Enactment
SEC. 391. EFFECTIVE DATES.
(a) In General.--Except as otherwise specifically provided
(but subject to subsections (b) and (c))--
(1) the provisions of this title 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 title shall become
effective upon the date of the enactment of this Act.
(b) Grace Period for State Law Changes.--The provisions of
this title shall become effective with respect to a State on
the later of--
(1) the date specified in this title, 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 title 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.
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
SEC. 400. 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 title, 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 the least restrictive means
available for achieving the compelling governmental
interest of assuring that aliens be self-reliant in
accordance with national immigration policy.
Subtitle A--Eligibility for Federal Benefits
SEC. 401. 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 431) 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 or XXI of
the Social Security Act.
(B) Short-term, non-cash, in-kind emergency disaster
relief.
(C)(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.
(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
[[Page H7949]]
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.
(F) Assistance or benefits under the National School Lunch
Act or the Child Nutrition Act of 1966.
(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.
(3) Subsection (a) shall not apply--
(A) for up to 48 months if the alien can demonstrate that
(i) the alien has been battered or subject to extreme cruelty
in the United States by a spouse or parent, or by a member of
the spouse or parent's family residing in the same household
as the alien and the spouse or parent consented or acquiesced
to such battery or cruelty, or (ii) the alien's child has
been battered or subject to extreme cruelty in the United
States by a spouse or parent of the alien (without the active
participation of the alien in the battery or extreme
cruelty), or by a member of the spouse or parent's family
residing in the same household as the alien when the spouse
or parent consented or acquiesced to and the alien did not
actively participate in such battery or cruelty, and (iii)
the need for the public benefits applied for has a
substantial connection to the battery or cruelty described in
subclause (I) or (II); and
(B) for more than 48 months if the alien can demonstrate
that any battery or cruelty under subparagraph (A) is
ongoing, has led to the issuance of an order of a judge or an
administrative law judge or a prior determination of the
Service, and that the need for such benefits has a
substantial connection to such battery or cruelty.
(c) Federal Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this title 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, post-secondary 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. 402. LIMITED ELIGIBILITY OF CERTAIN 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 431) 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 20 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 403(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.
(E) FICA exception.--Paragraph (1) shall not apply to an
alien if there has been paid with respect to the self-
employment income or employment of the alien, or of a parent
or spouse of the alien, taxes under chapter 2 or chapter 21
of the Internal Revenue Code of 1986 in each of 20 different
calendar quarters.
(F) Exception for battered women and children.--Paragraph
(1) shall not apply--
(i) for up to 48 months if the alien can demonstrate that
(I) the alien has been battered or subject to extreme cruelty
in the United States by a spouse or parent, or by a member of
the spouse or parent's family residing in the same household
as the alien and the spouse or parent consented or acquiesced
to such battery or cruelty, or (II) the alien's child has
been battered or subject to extreme cruelty in the United
States by a spouse or parent of the alien (without the active
participation of the alien in the battery or extreme
cruelty), or by a member of the spouse or parent's family
residing in the same household as the alien when the spouse
or parent consented or acquiesced to and the alien did not
actively participate in such battery or cruelty, and (III)
the need for the public benefits applied for has a
substantial connection to the battery or cruelty described in
this clause; and
(ii) for more than 48 months if the alien can demonstrate
that any battery or cruelty under clause (i) is ongoing, has
led to the issuance of an order of a judge or an
administrative law judge or a prior determination of the
Service, and that need for such benefits has a substantial
connection to such battery or cruelty.
(G) SSI disability exception.--Paragraph (1) shall not
apply to an alien who has not attained 18 years of age and is
eligible by reason of disability for supplemental security
income benefits under title XVI of the Social Security Act.
(H) Food stamp exception for children.--Paragraph (1) shall
not apply to the eligibility of an alien who has not attained
18 years of age for the food stamp program under paragraph
(3)(B).
(3) Specified federal program defined.--For purposes of
this title, 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.
(B) Food stamps.--The food stamp program as defined in
section 3(h) of the Food Stamp Act of 1977.
(b) Limited Eligibility for Designated Federal Programs.--
(1) In general.--Notwithstanding any other provision of law
and except as provided
[[Page H7950]]
in section 403 and paragraph (2), a State is authorized to
determine the eligibility of an alien who is a qualified
alien (as defined in section 431) 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 20 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 403(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.
(E) FICA exception.--Paragraph (1) shall not apply to an
alien if there has been paid with respect to the self-
employment income or employment of the alien, or of a parent
or spouse of the alien, taxes under chapter 2 or chapter 21
of the Internal Revenue Code of 1986 in each of 20 different
calendar quarters.
(F) Time-limited exception for battered women and
children.--Paragraph (1) shall not apply--
(i) for up to 48 months if the alien can demonstrate that
(I) the alien has been battered or subject to extreme cruelty
in the United States by a spouse or parent, or by a member of
the spouse or parent's family residing in the same household
as the alien and the spouse or parent consented or acquiesced
to such battery or cruelty, or (II) the alien's child has
been battered or subject to extreme cruelty in the United
States by a spouse or parent of the alien (without the active
participation of the alien in the battery or extreme
cruelty), or by a member of the spouse or parent's family
residing in the same household as the alien when the spouse
or parent consented or acquiesced to and the alien did not
actively participate in such battery or cruelty, and (III)
the need for the public benefits applied for has a
substantial connection to the battery or cruelty described in
subclause (I) or (II); and
(ii) for more than 48 months if the alien can demonstrate
that any battery or cruelty under clause (i) is ongoing, has
led to the issuance of an order of a judge or an
administrative law judge or a prior determination of the
Service, and that the need for such benefits has a
substantial connection to such battery or cruelty.
(G) SSI disability exception.--Paragraph (1) shall not
apply to an alien who has not attained 18 years of age and is
eligible by reason of disability for supplemental security
income benefits under title XVI of the Social Security Act.
(3) Designated federal program defined.--For purposes of
this title, 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. 403. 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 431) 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).
(3) FICA exception.--An alien if there has been paid with
respect to the self-employment income or employment of the
alien, or of a parent or spouse of the alien, taxes under
chapter 2 or chapter 21 of the Internal Revenue Code of 1986
in each of 20 different calendar quarters.
(4) Exception for battered women and children.--An alien--
(A) for up to 48 months if the alien can demonstrate that
(i) the alien has been battered or subject to extreme cruelty
in the United States by a spouse or parent, or by a member of
the spouse or parent's family residing in the same household
as the alien and the spouse or parent consented or acquiesced
to such battery or cruelty, or (ii) the alien's child has
been battered or subject to extreme cruelty in the United
States by a spouse or parent of the alien (without the active
participation of the alien in the battery or extreme
cruelty), or by a member of the spouse or parent's family
residing in the same household as the alien when the spouse
or parent consented or acquiesced to and the alien did not
actively participate in such battery or cruelty, and (iii)
the need for the public benefits applied for has a
substantial connection to the battery or cruelty described in
clause (i) or (ii); and
(B) for more than 48 months if the alien can demonstrate
that any battery or cruelty under subparagraph (A) is
ongoing, has led to the issuance of an order of a judge or an
administrative law judge or a prior determination of the
Service, and that need for such benefits has a substantial
connection to such battery or cruelty.
(5) SSI disability exception.--An alien who has not
attained 18 years of age and is eligible by reason of
disability for supplemental security income benefits under
title XVI of the Social Security Act.
(6) Food stamp exception for children.--An alien who has
not attained 18 years of age only for purposes of eligibility
for the food stamp program as defined in section 3(h) of the
Food Stamp Act of 1977.
(c) Federal Means-Tested Public Benefit Defined.--
(1) Except as provided in paragraph (2), for purposes of
this title, 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 or XXI 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)(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.
(F) Payments for foster care and adoption assistance under
part B 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) The program of medical assistance under title XIX and
title XXI of the Social Security Act.
[[Page H7951]]
SEC. 404. NOTIFICATION AND INFORMATION REPORTING.
(a) Notification.--Each Federal agency that administers a
program to which section 401, 402, or 403 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 title.
(b) Information Reporting Under Title IV of the Social
Security Act.--Part A of title IV of the Social Security 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 of
the Social Security Act 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 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.), as amended by this Act, is further amended by adding
at the end the following new section:
``SEC. 28. 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.''.
Subtitle B--Eligibility for State and Local Public Benefits Programs
SEC. 411. 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 described under a paragraph of this subsection is
not eligible for any State or local public benefit (as
defined in subsection (c)):
(1) A qualified alien (as defined in section 431).
(2) A nonimmigrant under the Immigration and Nationality
Act.
(3) An alien who is paroled into the United States under
section 212(d)(5) of such Act for less than one year.
(4) An alien--
(A) for up to 48 months if the alien can demonstrate that
(i) the alien has been battered or subject to extreme cruelty
in the United States by a spouse or parent, or by a member of
the spouse or parent's family residing in the same household
as the alien and the spouse or parent consented or acquiesced
to such battery or cruelty, or (ii) the alien's child has
been battered or subject to extreme cruelty in the United
States by a spouse or parent of the alien (without the active
participation of the alien in the battery or extreme
cruelty), or by a member of the spouse or parent's family
residing in the same household as the alien when the spouse
or parent consented or acquiesced to and the alien did not
actively participate in such battery or cruelty, and (iii)
the need for the public benefits applied for has a
substantial connection to the battery or cruelty described in
clause (i) or (ii), and
(B) for more than 48 months if the alien can demonstrate
that any battery or cruelty under subparagraph (A) is
ongoing, has led to the issuance of an order of a judge or an
administrative law judge or a prior determination of the
Service, and that the need for such benefits has a
substantial connection to such battery or cruelty.
(b) Exceptions.--Subsection (a) shall not apply with
respect to the following State or local public benefits:
(1) Emergency medical services under title XIX or XXI of
the Social Security Act.
(2) Short-term, noncash, in-kind emergency disaster relief.
(3)(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.
(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 subtitle 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, post-secondary 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. 412. 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 431), 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 20 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 403(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.
(5) Exception for battered women and children.--An alien--
[[Page H7952]]
(A) for up to 48 months if the alien can demonstrate that
(i) the alien has been battered or subject to extreme cruelty
in the United States by a spouse or parent, or by a member of
the spouse or parent's family residing in the same household
as the alien and the spouse or parent consented or acquiesced
to such battery or cruelty, or (ii) the alien's child has
been battered or subject to extreme cruelty in the United
States by a spouse or parent of the alien (without the active
participation of the alien in the battery or extreme
cruelty), or by a member of the spouse or parent's family
residing in the same household as the alien when the spouse
or parent consented or acquiesced to and the alien did not
actively participate in such battery or cruelty, and (iii)
the need for the public benefits applied for has a
substantial connection to the battery or cruelty described in
clause (i) or (ii); and
(B) for more than 48 months if the alien can demonstrate
that any battery or cruelty under subparagraph (A) is
ongoing, has led to the issuance of an order of a judge or an
administrative law judge or a prior determination of the
Service, and that the need for such benefits has a
substantial connection to such battery or cruelty.
(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.
Subtitle C--Attribution of Income and Affidavits of Support
SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND
RESOURCES TO ALIEN FOR PURPOSES OF MEDICAID
ELIGIBILITY.
(a) In General.--Notwithstanding any other provision of
law, in determining the eligibility and the amount of
benefits of an alien (other than an alien who has not
attained 18 years of age or an alien who is pregnant) for the
program of medical assistance under title XIX and title XXI
of the Social Security Act, 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 423) 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 (other than an alien who has not attained 18
years of age or an alien who is pregnant) 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 20 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 (B) did not receive any Federal means-tested
public benefit (as defined in section 403(c)) during any such
quarter.
(c) Review of Income and Resources of Alien Upon
Reapplication.--Whenever an alien (other than an alien who
has not attained 18 years of age or an alien who is pregnant)
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).
SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF
SPONSOR'S 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 412(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 423) 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, noncash, 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)(A) Public health assistance for immunizations.
(B) Public health assistance for testing and treatment of a
serious communicable disease if the appropriate chief State
health official determines that it is necessary to prevent
the spread of such 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. 423. 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--
``(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 sections 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--
[[Page H7953]]
``(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) has attained the age of 18 years;
``(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 not be 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 or XXI of
the Social Security Act.
(2) Short-term, noncash, 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)(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.
(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 403
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.
SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.
Section 484(b) of the Higher Education Act of 1965 (20
U.S.C. 1091(b)) is amended by adding at the end the following
new paragraph:
``(6) Notwithstanding sections 427(a)(2)(A), 428B(a),
428C(b)(4)(A), and 464(c)(1)(E), or any other provision of
this title, a student who is an alien lawfully admitted for
permanent residence under the Immigration and Nationality Act
shall not be eligible for a loan under this title unless the
loan is endorsed and cosigned by the alien's sponsor under
section 213A of the Immigration and Nationality Act or by
another creditworthy individual who is a United States
citizen.''.
Subtitle D--General Provisions
SEC. 431. DEFINITIONS.
(a) In General.--Except as otherwise provided in this
title, the terms used in this title have the same meaning
given such terms in section 101(a) of the Immigration and
Nationality Act.
(b) Qualified Alien.--For purposes of this title, 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. 432. 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 401(c)), to which the
limitation under section 401 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. 433. STATUTORY CONSTRUCTION.
(a) Limitation.--
(1) Nothing in this title 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 title, eligibility relates
only to the general issue of eligibility or ineligibility on
the basis of alienage.
(2) Nothing in this title 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 title 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 title or the
application of such provision to any person or circumstance
is held to be unconstitutional, the remainder of this title
and the application of the provisions of such to any person
or circumstance shall not be affected thereby.
SEC. 434. 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. 435. QUALIFYING QUARTERS.
For purposes of this title, 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 403(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 403(c)) during any such quarter and the alien
remains married to such spouse or such spouse is deceased.
SEC. 436. TITLE INAPPLICABLE TO PROGRAMS SPECIFIED BY
ATTORNEY GENERAL.
Notwithstanding any other provision of this title, this
title or any provision of this title shall not apply to
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 (1)
deliver services at the community level, including through
public or private nonprofit agencies; (2) 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 (3) are
necessary for the protection of life, safety or the public
health.
SEC. 437. TITLE INAPPLICABLE TO PROGRAMS OF NONPROFIT
CHARITABLE ORGANIZATIONS.
Notwithstanding any other provision of this title, this
title or any provision of this title shall not apply to
programs, services, or assistance of a nonprofit charitable
organization, regardless of whether such programs, services,
or assistance are funded, in whole or in part, by the Federal
Government or the government of any State or political
subdivision of a State.
Subtitle E--Conforming Amendments
SEC. 441. 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'';
[[Page H7954]]
(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).
TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS
SEC. 501. 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 title II) that the Department is
required to carry out, and amendments and repeals made by
such 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 title II); or
(B) a provision of Federal law that is amended or repealed
by this Act (other than title II).
(b) Reports.--
(1) Contents.--Not later than December 31, 1995, 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.
(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 October 1, 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 502 and 503.
(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, 1996, 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. 502. 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. 503. 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.
TITLE VI--REFORM OF PUBLIC HOUSING
SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC
ASSISTANCE 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. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC
ASSISTANCE PROGRAMS.
``(a) In General.--If the benefits of a family are reduced
under a Federal, State, or local law relating to welfare or a
public assistance program for the failure of any member of
the family to perform an action required under the law or
program, the family may not, for the duration of the
reduction, receive any increased assistance under this Act as
the result of a decrease in the income of the family to the
extent that the decrease in income is the result of the
benefits reduction.
[[Page H7955]]
``(b) Exception.--Subsection (a) shall not apply in any
case in which the benefits of a family are reduced because
the welfare or public assistance program to which the
Federal, State, or local law relates limits the period during
which benefits may be provided under the program.''.
SEC. 602. 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.).
SEC. 603. ANNUAL ADJUSTMENT FACTORS FOR OPERATING COSTS ONLY;
RESTRAINT ON RENT INCREASES.
(a) Annual Adjustment Factors for Operating Costs Only.--
Section 8(c)(2)(A) of the United States Housing Act of 1937
(42 U.S.C. 1437f(c)(2)(A)) is amended--
(1) by striking ``(2)(A)'' and inserting ``(2)(A)(i)'';
(2) by striking the second sentence and all that follows
through the end of the subparagraph; and
(3) by adding at the end the following new clause:
``(ii) Each assistance contract under this section shall
provide that--
``(I) if the maximum monthly rent for a unit in a new
construction or substantial rehabilitation project to be
adjusted using an annual adjustment factor exceeds 100
percent of the fair market rent for an existing dwelling unit
in the market area, the Secretary shall adjust the rent using
an operating costs factor that increases the rent to reflect
increases in operating costs in the market area; and
``(II) if the owner of a unit in a project described in
subclause (I) demonstrates that the adjusted rent determined
under subclause (I) would not exceed the rent for an
unassisted unit of similar quality, type, and age in the same
market area, as determined by the Secretary, the Secretary
shall use the otherwise applicable annual adjustment
factor.''.
(b) Restraint on Section 8 Rent Increases.--Section
8(c)(2)(A) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)(2)(A)), as amended by subsection (a), is
amended by adding at the end the following new clause:
``(iii)(I) Subject to subclause (II), with respect to any
unit assisted under this section that is occupied by the same
family at the time of the most recent annual rental
adjustment, if the assistance contract provides for the
adjustment of the maximum monthly rent by applying an annual
adjustment factor, and if the rent for the unit is otherwise
eligible for an adjustment based on the full amount of the
annual adjustment factor, 0.01 shall be subtracted from the
amount of the annual adjustment factor, except that the
annual adjustment factor shall not be reduced to less than
1.0.
``(II) With respect to any unit described in subclause (I)
that is assisted under the certificate program, the adjusted
rent shall not exceed the rent for a comparable unassisted
unit of similar quality, type, and age in the market area in
which the unit is located.''.
(c) Effective Date.--The amendments made by this section
shall become effective on October 1, 1996.
SEC. 604. EFFECTIVE DATE.
This title and the amendment made by this title shall
become effective on the date of enactment of this Act.
TITLE VII--CHILD CARE
SEC. 701. SHORT TITLE AND REFERENCES.
(a) Short Title.--This title may be cited as the ``Child
Care and Development Block Grant Amendments of 1995''.
(b) References.--Except as otherwise expressly provided,
whenever in this title 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. 702. GOALS.
(a) 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. 803. 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 (as amended by section 103 of this Act) is
amended by redesignating section 417 as section 418 and
inserting after section 416 the following:
``SEC. 417. 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 the greatest of--
``(A) the sum of--
``(i) the total amount required to be paid to the State
under former section 403 for fiscal year 1994 with respect to
amounts expended for child care under section 402(g) of this
Act (as such section was in effect before October 1, 1995);
and
``(ii) such total amount with respect to amounts expended
for child care under section 403(i) of this Act (as so in
effect); or
``(B) the sum described in subparagraph (A) for fiscal year
1995; or
``(C) 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).
``(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 (5)
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 subsection (a)(1) for such
year and the amount of State expenditures in fiscal year 1995
that equal the non-Federal share for the programs described
in subparagraphs (A), (B) and (C) of paragraph (1).
``(3) Appropriation.--There are authorized to be
appropriated, and there are appropriated, to carry out this
section--
``(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) $2,767,000,000 for fiscal year 2002.
``(4) Redistribution.--With respect to any fiscal year, if
the Secretary determines that amounts under any grant awarded
to a State under this subsection for such fiscal year will
not be used by such State for carrying out the purpose for
which the grant is made, the Secretary shall make such
amounts available for carrying out such purpose to 1 or more
other States which apply for such funds to the extent the
Secretary determines that such other 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'. Any amount made available to a
State from an appropriation for a fiscal year in accordance
with the preceding sentence shall, for purposes of this part,
be regarded as part of such State's payment (as determined
under this subsection) for such year.
``(5) 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.
``(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
[[Page H7956]]
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. 704. 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. 705. 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 organizations receiving assistance under
this subchapter.'';
(vi) by striking ``Provide assurances'' and inserting
``Certify''; and
(vii) by striking subparagraphs (H), (I), and (J) and
inserting the following:
``(G) 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 who are at risk of becoming dependent on such
assistance program.
``(H) Preserving parental choice.--Certify that the State
will not implement any policy or practice which has the
effect of significantly restricting parental choice by--
``(i) expressly or effectively excluding any category of
care or type of provider within a category of care;
``(ii) limiting parental access to or choices from among
various categories of care or types of providers; or
``(iii) excluding a significant number of providers in any
category of care.
``(I) Informing parents of options.--Provides assurances
that parents will be informed regarding their options under
this section, including the option to receive a child care
certificate or voucher.'';
(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
417(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 this subchapter in each fiscal year is used to
provide assistance to low-income working families other than
families described in paragraph (2)(F).''; 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. 706. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b) (42 U.S.C. 9858d(b)) is amended--
(1) in paragraph (1), by striking ``No'' and inserting
``Except as provided for in section 658O(c)(6), no''; and
(2) in paragraph (2), by striking ``referred to in section
658E(c)(2)(F)''.
SEC. 707. 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. 708. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE-
AND AFTER-SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 709. 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. 710. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended by striking
``expended'' and inserting ``obligated''.
SEC. 711. 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;
``(III) housing assistance;
[[Page H7957]]
``(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. 712. 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. 713. 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. 714. 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. 715. 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.
SEC. 716. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this
title and the amendments made by this title shall take effect
on October 1, 1996.
(b) Exception.--The amendment made by section 803(a) shall
take effect on the date of enactment of this Act.
TITLE VIII--CHILD NUTRITION PROGRAMS
Subtitle A--National School Lunch Act
SEC. 801. VALUE OF FOOD ASSISTANCE.
(a) In General.--Section 6(e)(1) of the National School
Lunch Act (42 U.S.C. 1755(e)(1)) is amended by striking
subparagraph (B) and inserting the following:
``(B) Adjustments.--
``(i) In general.--The value of food assistance for each
meal shall be adjusted each July 1 by the annual percentage
change in a 3-month average value of the Price Index for
Foods Used in Schools and Institutions for March, April, and
May each year.
``(ii) Adjustments.--Except as otherwise provided in this
subparagraph, in the case of each school year, the Secretary
shall--
``(I) base the adjustment made under clause (i) on the
amount of the unrounded adjustment for the preceding school
year;
``(II) adjust the resulting amount in accordance with
clause (i); and
``(III) round the result to the nearest lower cent
increment.
``(iii) Adjustment for 24-month period beginning july 1,
1996.--In the case of the 24-month period beginning July 1,
1996, the value of food assistance shall be the same as the
value of food assistance in effect on June 30, 1996.
``(iv) Adjustment for school year beginning july 1, 1998.--
In the case of the school year beginning July 1, 1998, the
Secretary shall--
``(I) base the adjustment made under clause (i) on the
amount of the unrounded adjustment for the value of food
assistance for the school year beginning July 1, 1995;
``(II) adjust the resulting amount to reflect the annual
percentage change in a 3-month average value of the Price
Index for Foods Used in Schools and Institutions for March,
April, and May for the most recent 12-month period for which
the data are available; and
``(III) round the result to the nearest lower cent
increment.''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on July 1, 1996.
SEC. 802. COMMODITY ASSISTANCE.
(a) In General.--Section 6(g) of the National School Lunch
Act (42 U.S.C. 1755(g)) is
[[Page H7958]]
amended by striking ``12 percent'' and inserting ``8
percent''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on July 1, 1996.
SEC. 803. 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, fifth, and eighth 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.
No institution that is not otherwise eligible to participate
in the program under section 17 shall be considered eligible
because of this paragraph.''.
SEC. 804. 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), by
striking the first sentence and inserting the following:
``Schools may use any reasonable approach to meet the
requirements of this paragraph, including any approach
described in paragraph (3).''.
(f) Use of Resources.--Section 9 of the Act is amended by
striking subsection (h).
SEC. 805. 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 802(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. 806. SPECIAL ASSISTANCE.
(a) Reimbursement Rates for Lunches, Breakfasts, and
Supplements.--
(1) In general.--Section 11(a)(3)(B) of the National School
Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
(A) by designating the second and third sentences as
subparagraphs (C) and (D), respectively; and
(B) by striking subparagraph (D) (as so designated) and
inserting the following:
``(D) Rounding.--Except as otherwise provided in this
paragraph, in the case of each school year, the Secretary
shall--
``(i) base the adjustment made under this paragraph on the
amount of the unrounded adjustment for the preceding school
year;
``(ii) adjust the resulting amount in accordance with
subparagraphs (B) and (C); and
``(iii) round the result to the nearest lower cent
increment.
``(E) Adjustment for 12-month period beginning july 1,
1996.--In the case of the 12-month period beginning July 1,
1996, the national average payment rates for paid lunches,
paid breakfasts, and paid supplements shall be the same as
the national average payment rate for paid lunches, paid
breakfasts, and paid supplements, respectively, for the
school year beginning July 1, 1995, rounded to the nearest
lower cent increment.
``(F) Adjustment for school year beginning july 1, 1997.--
In the case of the school year beginning July 1, 1997, the
Secretary shall--
``(i) base the adjustments made under this paragraph for--
``(I) paid lunches and paid breakfasts on the amount of the
unrounded adjustment for paid lunches for the school year
beginning July 1, 1996; and
``(II) paid supplements on the amount of the unrounded
adjustment for paid supplements for the school year beginning
July 1, 1996;
``(ii) adjust each resulting amount in accordance with
subparagraph (C); and
``(iii) round each result to the nearest lower cent
increment.''.
(2) Effective date.--The amendments made by paragraph (1)
shall become effective on July 1, 1996.
(b) Financing Based on Need.--Section 11(b) of the Act is
amended--
(1) in the second sentence, by striking ``, within'' and
all that follows through ``all States,''; and
(2) by striking the third sentence.
(c) 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. 807. 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 801(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 (1)(A)(i), by inserting after ``program''
the following: ``and would not have the effect of
transferring funds or commodities from the support of meals
for children with incomes below the income criteria for free
or reduced price meals, as provided in section 9(b)'';
(2) in paragraph (2)--
(A) by striking ``(A)'';
(B) in clause (iii), by adding ``and'' at the end;
(C) in clause (iv), by striking the semicolon at the end
and inserting a period;
[[Page H7959]]
(D) by striking clauses (v) through (vii);
(E) by striking subparagraph (B); and
(F) by redesignating clauses (i) through (iv), as so
amended, as subparagraphs (A) through (D), respectively;
(3) in paragraph (3)--
(A) by striking ``(A)''; and
(B) by striking subparagraphs (B) through (D);
(4) 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 subparagraphs (B), (D), (F), (H), (J), (K),
and (L);
(C) by redesignating subparagraphs (C), (E), (G), (I), (M),
and (N) as subparagraphs (B) through (G), respectively; and
(D) in subparagraph (F), as redesignated by subparagraph
(C), by striking ``and'' at the end and inserting ``or''; and
(5) 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. 808. 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 insert ``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) $2.00 for each lunch and supper served;
``(ii) $1.20 for each breakfast served; and
``(iii) 50 cents for each meal supplement served.
``(C) Adjustments.--Amounts specified in subparagraph (B)
shall be adjusted each January 1 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 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) Health Department Inspections.--Section 13(k) of the
Act is amended by striking paragraph (3).
(i) 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).
(j) 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''.
(k) 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''.
(l) 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.
(m) 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).
(n) 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.
(o) Effective Date.--The amendments made by subsection (b)
shall become effective on January 1, 1996.
SEC. 809. 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. 810. 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) Institutions Providing Child Care.--Section 17(a) of
the Act (42 U.S.C. 1766(a)) is amended--
(1) in the second sentence--
(A) by inserting ``the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858 et seq.) or'' after ``from
amounts granted to the States under''; and
(B) by striking ``(but only if'' and all that follows and
inserting a period; and
(2) in the fourth sentence, by striking ``Reimbursement''
and inserting ``Notwithstanding the type of institution
providing the meal or supplement, reimbursement''.
(c) 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.''.
(d) 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''.
(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:
[[Page H7960]]
``(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 or
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 the date of
enactment of this subclause.
``(IV) Adjustments.--The reimbursement factors under this
subparagraph shall be adjusted on August 1, 1996, 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 $1.00 for lunches and suppers, 30 cents for breakfasts,
and 15 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 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 1996.
``(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 808(d)(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 1994 as a percentage of the
number of all family day care homes participating in the
program during fiscal year 1994.
``(iii) Retention of funds.--Of the amount of funds made
available to a State for fiscal year 1996 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
[[Page H7961]]
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) in clause (i)--
(I) by striking ``(i)'';
(II) in the first sentence, by striking ``and expansion
funds'' and all that follows through ``rural areas'';
(III) by striking the second sentence; and
(IV) by striking ``and expansion funds'' each place it
appears; and
(ii) by striking clause (ii); and
(2) by striking paragraph (4).
(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''.
(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), (3), and (4) of
subsection (f) shall become effective on August 1, 1996.
(3) Regulations.--
(A) Interim regulations.--Not later than February 1, 1996,
the Secretary shall issue interim regulations to implement--
(i) the amendments made by paragraphs (1), (3), and (4) of
subsection (f); 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 August 1, 1996, 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 July 31, 1996, and July 31, 1997;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on July 31,
1996, and July 31, 1997; 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. 811. 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. 812. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C.
1769a) is repealed.
SEC. 813. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C.
1769d) is repealed.
SEC. 814. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C.
1769e) is repealed.
SEC. 815. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42 U.S.C.
1769g) is repealed.
Subtitle B--Child Nutrition Act of 1966
SEC. 821. SPECIAL MILK PROGRAM.
(a) Definition.--Section 3(a)(3) of the Child Nutrition Act
of 1966 (42 U.S.C. 1772(a)(3)) is
[[Page H7962]]
amended by striking ``the Trust Territory of the Pacific
Islands'' and inserting ``the Commonwealth of the Northern
Mariana Islands''.
(b) Adjustments to Reimbursements.--
(1) In general.--Section 3(a) of the Act is amended by
striking paragraph (8) and inserting the following:
``(8) Adjustments.--
``(A) In general.--Except as otherwise provided in this
paragraph, in the case of each school year, the Secretary
shall--
``(i) base the adjustment made under paragraph (7) on the
amount of the unrounded adjustment for the preceding school
year;
``(ii) adjust the resulting amount in accordance with
paragraph (7); and
``(iii) round the result to the nearest lower cent
increment.
``(B) Adjustment for 12-month period beginning july 1,
1996.--In the case of the 12-month period beginning July 1,
1996, the minimum rate shall be the same as the minimum rate
in effect on June 30, 1996, rounded to the nearest lower cent
increment.
``(C) Adjustment for school year beginning july 1, 1997.--
In the case of the school year beginning July 1, 1997, the
Secretary shall--
``(i) base the adjustment made under paragraph (7) on the
amount of the unrounded adjustment for the minimum rate for
the school year beginning July 1, 1996;
``(ii) adjust the resulting amount to reflect changes in
the Producer Price Index for Fresh Processed Milk published
by the Bureau of Labor Statistics of the Department of Labor
for the most recent 12-month period for which the data are
available; and
``(iii) round the result to the nearest lower cent
increment.''.
(2) Effective date.--The amendment made by paragraph (1)
shall become effective on July 1, 1996.
SEC. 822. REIMBURSEMENT RATES FOR FREE AND REDUCED PRICE
BREAKFASTS.
(a) In General.--Section 4(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1773(b)) is amended--
(1) in paragraph (1)(B)--
(A) in the first sentence, by striking ``section 11(a)''
and inserting ``subparagraphs (B) through (D) of section
11(a)(3)''; and
(B) in the second sentence, by striking ``, adjusted to the
nearest one-fourth cent'' and inserting ``(as adjusted
pursuant to subparagraphs (B) through (D) of section 11(a)(3)
of the National School Lunch Act (42 U.S.C. 1759a(a)(3)))'';
and
(2) in paragraph (2)(B)(ii)--
(A) by striking ``nearest one-fourth cent'' and inserting
``nearest lower cent increment for the applicable school
year''; and
(B) by inserting before the period at the end the
following: ``, and the adjustment required by this clause
shall be based on the unrounded adjustment for the preceding
school year''.
(b) Effective Date.--The amendments made by subsection (a)
shall become effective on July 1, 1996.
SEC. 823. 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. 824. 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. 825. 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. 826. REGULATIONS.
Section 10 of the Child Nutrition Act of 1966 (42 U.S.C.
1779) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``(1)''; and
(B) by striking paragraphs (2) through (4); and
(2) in subsection (c)--
(A) by striking ``may'' and inserting ``shall'';
(B) by inserting ``, except the program authorized under
section 17,'' after ``under this Act''; and
(C) by adding at the end the following: ``Such regulations
shall prohibit the transfer of funds that are used to support
meals served to children with incomes below the income
eligibility criteria for free or reduced price meals, as
provided in section 9(b) of the National School Lunch Act.''.
SEC. 827. 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. 828. 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. 829. 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. 830. 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 90 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;
(3) by striking paragraph (4) and inserting the following:
``(4) Information.--The State agency 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 ``A
local agency may''; 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) by striking clauses (vii), (ix), (x), and (xii);
(iv) in clause (xiii), by striking ``may require'' and
inserting ``may reasonably require''; and
(v) by redesignating clauses (viii), (xi), and (xiii), as
so amended, as clauses (vii), (viii), and (ix), respectively;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subparagraph (D);
(2) by striking paragraphs (2), (6), (8), (20), (22), and
(24);
(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'';
[[Page H7963]]
(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), (21), and (23), as so amended, as paragraphs
(2), (3), (4), (5), (6) through (16), (17), and (18),
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)(A), by striking ``shall'' and
inserting ``may''.
(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. 831. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C.
1787) is repealed.
SEC. 832. 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; and
(iv) in subparagraph (H), as so redesignated, by inserting
``and'' at the end;
(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.
SEC. 833. BREASTFEEDING PROMOTION PROGRAM.
Section 21 of the Child Nutrition Act of 1966 (42 U.S.C.
1790) is repealed.
TITLE IX--FOOD STAMP PROGRAM AND RELATED PROGRAMS
SEC. 901. 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. 902. EXPANDED 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 cards,
cash or checks issued in lieu of coupons or access devices,
including, but not limited to, electronic benefit transfer
cards and personal identification numbers''.
SEC. 903. 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. 904. 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 the
following:
``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. 905. 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. 906. INCOME EXCLUSIONS.
(a) Exclusion of Certain JTPA Income.--Section 5 of the
Food Stamp Act of 1977 (7 U.S.C. 2014) is amended--
(1) in subsection (d)--
(A) by striking ``and (16)'' and inserting ``(16)''; and
(B) by inserting before the period at the end the
following: ``, and (17) income received under the Job
Training Partnership Act (29 U.S.C. 1501 et seq.) by a
household member who is less than 19 years of age''; and
(2) in subsection (l), by striking ``under section
204(b)(1)(C)'' and all that follows and inserting ``shall be
considered earned income for purposes of the food stamp
program.''.
(b) Exclusion of Life Insurance Policies.--Section 5(g) of
the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by
adding at the end the following:
``(6) The Secretary shall exclude from financial resources
the cash value of any life
[[Page H7964]]
insurance policy owned by a member of a household.''.
(c) In-Tandem Exclusions From Income.--Section 5 of the
Food Stamp Act of 1977 (7 U.S.C. 2014) is amended by adding
at the end the following:
``(n) Whenever a Federal statute enacted after the date of
the enactment of this Act excludes funds from income for
purposes of determining eligibility, benefit levels, or both
under State plans approved under part A of title IV of the
Social Security Act, then such funds shall be excluded from
income for purposes of determining eligibility, benefit
levels, or both, respectively, under the food stamp program
of households all of whose members receive benefits under a
State plan approved under part A of title IV of the Social
Security Act.''.
SEC. 907. DEDUCTIONS FROM INCOME.
Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C.
2014(e)) is amended--
(1) in the 1st sentence--
(A) by striking ``$85'' and inserting ``$134'';
(B) by striking ``$145, $120, $170, and $75, respectively''
and inserting the following:
``$229, $189, $269, and $118, respectively, for fiscal year
1996; and a standard deduction of $120 a month for each
household, except that households in Alaska, Hawaii, Guam,
and the Virgin Islands of the United States shall be allowed
a standard deduction of $200, $165, $234, and $103,
respectively, for fiscal years thereafter, adjusted in
accordance with this subsection'';
(2) in the 2nd sentence by striking ``Such'' and all that
follows through ``each October 1 thereafter,'' and inserting
``On October 1, 2001, and on each October 1 thereafter, such
standard deductions shall be adjusted'';
(3) by striking the 14th sentence; and
(4) by inserting after the 9th sentence the following:
``A State agency may make use of a standard utility allowance
mandatory for all households with qualifying utility costs if
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 if the Secretary finds that the standards will
not result in an increased cost to the Secretary. A State
agency that has not made the use of a standard utility
allowance mandatory 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.''.
SEC. 908. VEHICLE ALLOWANCE.
Section 5(g)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)(2)) is amended to read as follows:
``(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 a level set by the Secretary, which
shall be $4,600 beginning October 1, 1995, and adjusted on
each October 1 thereafter to reflect changes in the new car
component of the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics for the 12-month
period ending on June 30 preceding the date of such
adjustment and rounded to the nearest $50; 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.''.
SEC. 909. 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. 910. INCREASED 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)--
(A) by striking ``six months'' and inserting ``1 year'';
and
(B) by adding ``and'' at the end; and
(2) striking clauses (ii) and (iii) and inserting the
following:
``(ii) permanently upon--
``(I) the second occasion of any such determination; or
``(II) the first occasion of a finding by a Federal, State,
or local court of the trading of a controlled substance (as
defined in section 102 of the Controlled Substances Act (21
U.S.C. 802)), firearms, ammunition, or explosives for
coupons.''.
SEC. 911. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(ii) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)(iii)), as amended by section 910, is amended--
(1) in subclause (I), by striking ``or'' at the end;
(2) in subclause (II), by striking the period at the end
and inserting ``; or''; and
(3) by inserting after subclause (II) 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. 912. 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 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.--
[[Page H7965]]
``(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 Food
Stamp Act of 1977 (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(f) of the Food Stamp Act of 1977 (7 U.S.C.
2029(f)) is amended to read as follows:
``(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. 913. CARETAKER EXEMPTION.
Section 6(d)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)(B)) is amended to read as follows: ``(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. 914. 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 (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'';
(2) in subparagraph (E), by striking the third sentence;
AND
(3) by adding at the end the following:
``(O) Notwithstanding any other provision of this
paragraph, the amount of Federal funds a State agency uses in
any fiscal year after fiscal year 1996 to carry out this
paragraph with respect to individuals who receive benefits
under a State plan approved under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) shall not exceed
the amount of Federal funds the State agency used in fiscal
year 1995 to carry out this paragraph with respect to
individuals who received benefits under such plan.''.
(b) Funding.--Section 16(h) of the Food Stamp Act of 1977
(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 $150,000,000 for each of the
fiscal years 1996 through 2002.
``(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.''.
(d) Reports.--Section 16(h) of the Food Stamp Act of 1977
(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. 915. 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 such 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 Food Stamp
Act of 1977 (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 Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by
striking ``that is comparable to a requirement of paragraph
(1)''.
SEC. 916. 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 915, 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. 917. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by sections 915 and 916, 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. 918. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by sections 915, 916, and 917, 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
[[Page H7966]]
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 U.S.C. 651 et seq.)
to purposes for which the information is collected.''.
SEC. 919. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as
amended by sections 915, 916, 917 and 918, is amended by
adding at the end the following:
``(o) Disqualification for Child Support Arrears.--
``(1) In general.--At the option of a State agency, except
as provided in paragraph (2), 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. 920. WORK REQUIREMENT FOR ABLE-BODIED RECIPIENTS.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015), as amended by sections 915, 916, 917, 918, and
919, is amended by adding at the end the following:
``(p) 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 or training operated or
supervised by a State or local government, as determined
appropriate by the Secretary.
``(2) Work requirement.--No individual shall be eligible to
participate in the food stamp program as a member of any
household if, during the preceding 12 months, the individual
received food stamp benefits for not less than 6 months
during which the individual did not--
``(A) work 20 hours or more per week, averaged monthly;
``(B) participate in a workfare program under section 20 or
a comparable State or local workfare program;
``(C) participate in and comply with the requirements of an
approved employment and training program under subsection
(d)(4); or
``(D) participate in and comply with the requirements of a
work program for 20 hours or more per week.
``(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 a
dependent child under 18 years of age; or
``(D) otherwise exempt under subsection (d)(2).
``(4) Waiver.--
``(A) In general.--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 8 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.''.
(b) Work and Training Programs.--Section 6(d)(4) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended by
adding at the end the following:
``(O) Required participation in work and training
programs.--A State agency shall provide an opportunity to
participate in the employment and training program under this
paragraph to any individual who would otherwise become
subject to disqualification under subsection (p).
``(P) Coordinating work requirements.--
``(i) In general.--Notwithstanding any other provision of
this paragraph, a State agency that meets the participation
requirements of clause (ii) may operate the employment and
training program of the State for individuals who are members
of households receiving allotments under this Act as part of
a program operated by the State under part F of title IV of
the Social Security Act (42 U.S.C. 681 et seq.), subject to
the requirements of such Act.
``(ii) Participation requirements.--A State agency may
exercise the option under clause (i) if the State agency
provides an opportunity to participate in an approved
employment and training program to an individual who is--
``(I) subject to subsection (p);
``(II) not employed at least an average of 20 hours per
week;
``(III) not participating in a workfare program under
section 20 (or a comparable State or local program); and
``(IV) not subject to a waiver under subsection (i)(4).''.
SEC. 921. 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 amending paragraph (1) to read as follows:
``(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 24 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'';
(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.''.
(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. 922. 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. 923. 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. 924. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.
Section 8(c)(3) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)(3)) is amended to read as follows:
``(3) Optional combined allotment for expedited
households.--A State agency
[[Page H7967]]
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. 925. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.
Section 8(d) of the Food Stamp Act of 1977 (7 U.S.C.
2017(d)) is amended to read as follows:
``(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 such Act to reduce the allotment under the food
stamp program.''.
SEC. 926. 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. 927. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
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:
``The Secretary is authorized to issue regulations
establishing specific time periods during which authorization
to accept and redeem coupons under the food stamp program
shall be valid.''.
SEC. 928. SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF
STORES BASED ON LACK OF BUSINESS INTEGRITY.
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)(1)), as amended by section 927, is amended by adding
at the end the following:
``The Secretary is authorized to issue regulations
establishing specific time periods during which a retail food
store or wholesale food concern that has an application for
approval to accept and redeem coupons denied or that has such
an approval withdrawn on the basis of business integrity and
reputation cannot submit a new application for approval. Such
periods shall reflect the severity of business integrity
infractions that are the basis of such denials or
withdrawals.''.
SEC. 929. 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 1st sentence by inserting ``, which may include
relevant income and sales tax filing documents,'' after
``submit information'' ; and
(2) by inserting after the 1st 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 in order that the accuracy
of information provided by such stores and concerns may be
verified.''.
SEC. 930. WAITING PERIOD FOR STORES THAT INITIALLY 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:
``Regulations issued pursuant to this Act shall prohibit a
retail food store or wholesale food concern that has an
application for approval to accept and redeem coupons denied
because it does not meet criteria for approval established by
the Secretary in regulations from submitting a new
application for six months from the date of such denial.''.
SEC. 931. OPERATION OF FOOD STAMP OFFICES.
Section 11(e)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(2)) is amended to read as follows:
``(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) 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) 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) 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.'';
(2) in the last sentence of subsection (i) by striking
``No'' and inserting ``Other than in a case of
disqualification as a penalty for failure to comply with a
public assistance program rule or regulation, no''.
SEC. 932. MANDATORY CLAIMS COLLECTION METHODS.
(a) Administration.--Section 11(e)(8) of the Food Stamp Act
of 1977 (7 U.S.C. 2020(e)(8)) is amended by inserting ``or
refunds of Federal taxes as authorized pursuant to section
3720A of title 31 of the United States Code'' before the
semicolon at the end.
(b) Collection of Claims.--Section 13(d) of the Food Stamp
Act of 1977 (7 U.S.C. 2022(d)) is amended--
(1) by striking ``may'' and inserting ``shall''; and
(2) by inserting ``or refunds of Federal taxes as
authorized pursuant to section 3720A of title 31 of the
United States Code'' before the period at the end.
(c) Related Amendments.--Section 6103(1) of the Internal
Revenue Code (26 U.S.C. 6103(1)) is amended--
(1) by striking ``officers and employees'' in paragraph
(10)(A) and inserting ``officers, employees or agents,
including State agencies''; and
(2) by striking ``officers and employees'' in paragraph
(10)(B) and inserting ``officers, employees or agents,
including State agencies''.
SEC. 933. 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
[[Page H7968]]
``(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. 934. 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 subparagraph (B);
(3) in subparagraph (D) by striking ``, (B), or (C)'' and
inserting ``or (B)''; and
(4) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
SEC. 935. 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. 936. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS
VERIFICATION SYSTEMS.
Section 11(e)(19) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(19)) is amended by striking ``that information is''
and inserting ``at the option of the State agency, that
information may be''.
SEC. 937. BASES FOR SUSPENSIONS AND DISQUALIFICATIONS.
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. 938. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS PENDING ADMINISTRATIVE AND
JUDICIAL REVIEW.
(a) Suspension Authority.--Section 12(a) of the Food Stamp
Act of 1977 (7 U.S.C. 2021(a)), as amended by section 937, is
amended by adding at the end the following:
``Such regulations may establish criteria under which the
authorization of a retail food store or wholesale food
concern to accept and redeem coupons may be suspended at the
time such store or concern is initially found to have
committed violations of program requirements. Such suspension
may coincide with the period of a review as provided in
section 14. The Secretary shall not be liable for the value
of any sales lost during any suspension or disqualification
period.''.
(b) Conforming Amendment.--Section 14(a) of the Food Stamp
Act of 1977 (7 U.S.C. 2023(a)) is amended--
(1) in the 1st sentence by inserting ``suspended,'' before
``disqualified or subjected'';
(2) in the 5th sentence by inserting before the period at
the end the following:
``, except that in the case of the suspension of a retail
food store or wholesale food concern pursuant to section
12(a), such suspension shall remain in effect pending any
administrative or judicial review of the proposed
disqualification action, and the period of suspension shall
be deemed a part of any period of disqualification which is
imposed.''; and
(3) by striking the last sentence.
SEC. 939. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
FROM 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) The Secretary shall issue regulations providing
criteria for the disqualification of approved retail food
stores and wholesale food concerns that are otherwise
disqualified from accepting benefits under the Special
Supplemental Nutrition Program for Women, Infants and
Children (WIC) authorized under section 17 of the Child
Nutrition Act of 1966. Such disqualification--
``(1) shall be for the same period as the disqualification
from the WIC Program;
``(2) may begin at a later date; and
``(3) notwithstanding section 14 of this Act, shall not be
subject to administrative or judicial review.''.
SEC. 940. PERMANENT DEBARMENT OF RETAILERS WHO INTENTIONALLY
SUBMIT FALSIFIED APPLICATIONS.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021),
as amended by section 939, is amended by adding at the end
the following:
``(h) The Secretary shall issue regulations providing for
the permanent disqualification of a retail food store or
wholesale food concern that is determined to have knowingly
submitted an application for approval to accept and redeem
coupons which contains false information about one or more
substantive matters which were the basis for providing
approval. Any disqualification imposed under this subsection
shall be subject to administrative and judicial review
pursuant to section 14, but such disqualification shall
remain in effect pending such review.''.
SEC. 941. EXPANDED CIVIL AND CRIMINAL FORFEITURE FOR
VIOLATIONS OF THE FOOD STAMP ACT.
(a) Forfeiture of Items Exchanged in Food Stamp
Trafficking.--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) Civil and Criminal Forfeiture.--Section 15 of the Food
Stamp Act of 1977 (7 U.S.C. 2024)) is amended by adding at
the end the following:
``(h)(1) Civil Forfeiture for Food Stamp Benefit
Violations.--
``(A) Any food stamp benefits and any property, real or
personal--
``(i) constituting, derived from, or traceable to any
proceeds obtained directly or indirectly from, or
``(ii) used, or intended to be used, to commit, or to
facilitate,
the commission of a violation of subsection (b) or subsection
(c) involving food stamp benefits having an aggregate value
of not less than $5,000, shall be subject to forfeiture to
the United States.
``(B) The provisions of chapter 46 of title 18, United
States Code, relating to civil forfeitures shall extend to a
seizure or forfeiture under this subsection, insofar as
applicable and not inconsistent with the provisions of this
subsection.
``(2) Criminal Forfeiture for Food Stamp Benefit
Violations.--
``(A)(i) Any person convicted of violating subsection (b)
or subsection (c) involving food stamp benefits having an
aggregate value of not less than $5,000, shall forfeit to the
United States, irrespective of any State law--
``(I) any food stamp benefits and any property
constituting, or derived from, or traceable to any proceeds
such person obtained directly or indirectly as a result of
such violation; and
``(II) any food stamp benefits and any of such person's
property used, or intended to be used, in any manner or part,
to commit, or to facilitate the commission of such violation.
``(ii) In imposing sentence on such person, the court shall
order that the person forfeit to the United States all
property described in this subsection.
``(B) All food stamp benefits and any property subject to
forfeiture under this subsection, any seizure and disposition
thereof, and any administrative or judicial proceeding
relating thereto, shall be governed by subsections (b), (c),
(e), and (g) through (p) of section 413 of the Comprehensive
Drug Abuse Prevention and Control Act of 1970 (21 U.S.C.
853), insofar as applicable and not inconsistent with the
provisions of this subsection.
``(3) Applicability.--This subsection shall not apply to
property specified in subsection (g) of this section.
``(4) Rules.--The Secretary may prescribe such rules and
regulations as may be necessary to carry out this
subsection.''.
SEC. 942. EXPANDED AUTHORITY FOR SHARING INFORMATION PROVIDED
BY RETAILERS.
(a) Amendment to Social Security Act.--Section
205(c)(2)(C)(iii) of the Social Security Act (42 U.S.C.
405(c)(2)(C)(iii)), as amended by section 316(a) of the
Social Security Administrative Reform Act of 1994 (Public Law
103-296; 108 Stat. 1464), is amended--
(1) by inserting in the 1st sentence of subclause (II)
after ``instrumentality of the United States'' the following:
``, or State government officers and employees with law
enforcement or investigative responsibilities, or State
agencies that have the responsibility for administering the
Special Supplemental Nutrition Program for Women, Infants and
Children (WIC)'';
(2) by inserting in the last sentence of subclause (II)
immediately after ``other Federal'' the words ``or State'';
and
(3) by inserting ``or a State'' in subclause (III)
immediately after ``United States''.
(b) Amendment to Internal Revenue Code of 1986.--Section
6109(f)(2) of the Internal Revenue Code of 1986 (26 U.S.C.
6109(f)(2)) (as added by section 316(b) of the Social
Security Administrative Reform Act of 1994 (Public Law 103-
296; 108 Stat. 1464)) is amended--
(1) by inserting in subparagraph (A) after
``instrumentality of the United States'' the following: ``,
or State government officers and employees with law
enforcement or investigative responsibilities, or State
agencies that have the responsibility for administering the
Special Supplemental Nutrition Program for Women, Infants and
Children (WIC)'';
(2) in the last sentence of subparagraph (A) by inserting
``or State'' after ``other Federal''; and
(3) in subparagraph (B) by inserting ``or a State'' after
``United States''.
SEC. 943. 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. 944. COLLECTION OF OVERISSUANCES.
Section 16(a) of the Food Stamp Act of 1977 (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''.
[[Page H7969]]
SEC. 945. 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 1st sentence of section 11(g) of the Food Stamp Act
of 1977 (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 Food Stamp Act of 1977 (7
U.S.C. 2025(c)(1)(B)) is amended by striking ``pursuant to
subsection (b)''.
SEC. 946. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended by adding at the end the following:
``(C) 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. 947. AUTHORIZATION OF APPROPRIATIONS.
The 1st 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. 948. AUTHORIZE STATES TO OPERATE SIMPLIFIED FOOD STAMP
PROGRAMS.
(a) Authority for Program.--The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) is amended by adding at the end the
following:
``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.
``(a) Definition.--In this section, the term `Federal
costs' does not include any Federal costs incurred under
section 17.
``(b) State Option.--Subject to subsection (d), a State may
elect to carry out a simplified food stamp program for
households described in subsection (c)(1), statewide or in a
political subdivision of the State, in accordance with this
section.
``(c) Program Requirements.--If a State elects to carry out
such simplified food stamp program, within the State or a
political subdivision of the State--
``(1) only households 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
receive benefits under this section. Such households shall be
automatically eligible to participate in such simplified food
stamp program; and
``(2) subject to subsection (f), benefits under such
simplified food stamp 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; or
``(C) a combination of a State program funded under part A
of title IV of the Social Security Act (42 US..C. 601 et
seq.) and the food stamp program.
``(d) State Plan.--(1) A State may not operate such
simplified food stamp program unless the Secretary approves a
State plan for the operation of such simplified food stamp
program under paragraph (2).
``(2) The Secretary is authorized to approve any State plan
to carry out such simplified food stamp program if the
Secretary determines that the plan--
``(A) simplifies program administration while fulfilling
the goals of the food stamp program to permit low-income
households to obtain a more nutritious diet;
``(B) complies with this section;
``(C) would not increase Federal costs for any fiscal year;
and
``(D) would not substantially alter, as determined by the
Secretary, the appropriate distribution of benefits according
to household need.
``(e) Cost Determination.--(1) During each fiscal year and
not later than 90 days after the end of each fiscal year, the
Secretary shall determine using data provided by the State
deemed appropriate by the Secretary whether such simplified
food stamp program being carried out by a State is increasing
Federal costs under this Act above what the costs would have
been for the same population had they been subject to the
rules of the food stamp program.
``(2) If the Secretary determines that such simplified food
stamp 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)(A) 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 such simplified food stamp
program from increasing Federal costs under this Act.
``(B) 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 operating such simplified food stamp program and the
State shall be ineligible to operate a future Simplified
Program.
``(f) Rules and Procedures.--(1) In operating such
simplified food stamp 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) In operating such simplified food stamp program, a
State or political subdivision shall comply with the
requirements of--
``(A) section 5(e) to the extent that it requires an excess
shelter expense deduction;
``(B) subsections (a) through (g) of section 7;
``(C) 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.));
``(D) subsections (b) and (d) of section 8;
``(E) subsections (a), (c), (d), and (n) of section 11;
``(F) paragraphs (8), (9), (12), (18), (20), (24), and (25)
of section 11(e);
``(G) section 11(e)(2), to the extent that it requires the
State agency to provide an application to households on the
1st day they contact a food stamp office in person during
office hours to make what may reasonably be interpreted as an
oral or written request for food stamp assistance and to
allow those households to file such application on the same
day;
``(H) section 11(e)(3), to the extent that it requires the
State agency to complete certification of an eligible
household and provide an allotment retroactive to the period
of application to an eligible household not later than 30
days following the filing of an application;
``(I) 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
``(J) section 16.
``(3) 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 such
simplified food stamp program.''.
(b) Repealer.--Section 8 of the Food Stamp Act of 1977 (7
U.S.C. 2017) is amended by striking subsection (e).
(c) Requirements.--Section 11(e) of the Food Stamp Act of
1977 (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
(3) by adding at the end the following:
``(26) if a State elects to carry out a simplified food
stamp program under section 24, the plan of the State agency
for operating such simplified food stamp program, including--
``(A) the rules and procedures to be followed by the State
to determine food stamp benefits; and
``(B) a description of the method by which the State will
carry out a quality control system under section 16(c).''.
(d) Repeal of Demonstration Projects.--Section 17 of the
Food Stamp Act of 1977 (7 U.S.C. 2026) is amended by--
(1) by striking subsection (i); and
(2) redesignating subsections (j) through (l) as
subsections (i) through (k), respectively.
SEC. 949. 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
[[Page H7970]]
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.
``(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 Emergency Food
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note)
(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 Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) (7 U.S.C.
612c note) is amended--
(1) in the 1st sentence--
(A) by striking ``1991 through 1995'' and inserting ``1996
through 2002''; and
(B) 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) Technical Amendments.--The Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) (7 U.S.C.
612c note) is amended--
(1) in the 1st 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''; and
(3) by striking section 212.
(e) Report on EFAP.--Section 1571 of the Food Security Act
of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
SEC. 950. 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. 951. 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).
TITLE X--MISCELLANEOUS
SEC. 1001. EXPENDITURE OF FEDERAL FUNDS IN ACCORDANCE WITH
LAWS AND PROCEDURES APPLICABLE TO EXPENDITURE
OF STATE FUNDS.
(a) In General.--Notwithstanding any other provision of
law, any funds received by a State under the provisions of
law specified in subsection (b) shall be expended only in
accordance with the laws and procedures applicable to
expenditures of the State's own revenues, including
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. 1002. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO
FUGITIVE FELONS AND PROBATION AND PAROLE
VIOLATORS.
(a) Eligibility for Assistance.--The United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
(1) in section 6(l)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(C) by inserting immediately after paragraph (6) the
following new paragraph:
``(7) provide that it shall be cause for immediate
termination of the tenancy of a public housing tenant if such
tenant--
``(A) is 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 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
``(2) is violating a condition of probation or parole
imposed under Federal or State law.''; and
(2) in section 8(d)(1)(B)--
(A) in clause (iii), by striking ``and'' at the end;
(B) in clause (iv), by striking the period at the end and
inserting ``; and''; and
(C) by adding after clause (iv) the following new clause:
``(v) it shall be cause for termination of the tenancy of a
tenant if such tenant--
``(I) is 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 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) is violating a condition of probation or parole
imposed under Federal or State law;''.
(b) Provision of Information to Law Enforcement Agencies.--
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), as amended by section 601 of this Act, is
amended by adding at the end the following:
``SEC. 28. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT
AGENCIES.
``Notwithstanding any other provision of law, each public
housing agency that enters into a contract for assistance
under section 6 or 8 of this Act with the Secretary shall
furnish any Federal, State, or local law enforcement officer,
upon the request of the officer, with the current address,
Social Security number, and photograph (if applicable) of any
recipient of assistance under this Act, if the officer--
``(1) furnishes the public housing agency with the name of
the recipient; and
``(2) notifies the agency that--
``(A) such recipient--
``(i) is 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 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) is violating a condition of probation or parole
imposed under Federal or State law; or
``(iii) has information that is necessary for the officer
to conduct the officer's official duties;
[[Page H7971]]
``(B) the location or apprehension of the recipient is
within such officer's official duties; and
``(C) the request is made in the proper exercise of the
officer's official duties.''.
SEC. 1003. SENSE OF THE SENATE REGARDING ENTERPRISE ZONES.
(a) Findings.--The Senate finds that:
(1) Many of the Nation's urban centers are places with high
levels of poverty, high rates of welfare dependency, high
crime rates, poor schools, and joblessness;
(2) Federal tax incentives and regulatory reforms can
encourage economic growth, job creation and small business
formation in many urban centers;
(3) Encouraging private sector investment in America's
economically distressed urban and rural areas is essential to
breaking the cycle of poverty and the related ills of crime,
drug abuse, illiteracy, welfare dependency, and unemployment;
(4) The empowerment zones enacted in 1993 should be
enhanced by providing incentives to increase entrepreneurial
growth, capital formation, job creation, educational
opportunities, and home ownership in the designated
communities and zones.
(b) Sense of the Senate.--Therefore, it is the Sense of the
Senate that the Congress should adopt enterprise zone
legislation in the One Hundred Fourth Congress, and that such
enterprise zone legislation provide the following incentives
and provisions:
(1) Federal tax incentives that expand access to capital,
increase the formation and expansion of small businesses, and
promote commercial revitalization;
(2) Regulatory reforms that allow localities to petition
Federal agencies, subject to the relevant agencies' approval,
for waivers or modifications of regulations to improve job
creation, small business formation and expansion, community
development, or economic revitalization objectives of the
enterprise zones;
(3) Home ownership incentives and grants to encourage
resident management of public housing and home ownership of
public housing;
(4) School reform pilot projects in certain designated
enterprise zones to provide low-income parents with new and
expanded educational options for their children's elementary
and secondary schooling.
SEC. 1004. SENSE OF THE SENATE REGARDING THE INABILITY OF THE
NONCUSTODIAL PARENT TO PAY CHILD SUPPORT.
It is the sense of the Senate that--
(a) States should diligently continue their efforts to
enforce child support payments by the noncustodial parent to
the custodial parent, regardless of the employment status or
location of the noncustodial parent; and
(b) States are encouraged to pursue pilot programs in which
the parents of a nonadult, noncustodial parent who refuses to
or is unable to pay child support must--
(1) pay or contribute to the child support owed by the
noncustodial parent; or
(2) otherwise fulfill all financial obligations and meet
all conditions imposed on the noncustodial parent,
such as participation in a work program or other related
activity.
SEC. 1005. 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. 1006. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE
PREGNANCIES.
(a) In General.--Not later than January 1, 1997, the
Secretary of Health and Human Services shall establish and
implement a strategy for--
(1) preventing out-of-wedlock teenage pregnancies, and
(2) assuring that at least 25 percent of the communities in
the United States have teenage pregnancy prevention programs
in place.
(b) Report.--Not later than June 30, 1998, and annually
thereafter, the Secretary shall report to the Congress with
respect to the progress that has been made in meeting the
goals described in paragraphs (1) and (2) of subsection (a).
SEC. 1007. SENSE OF THE SENATE REGARDING ENFORCEMENT OF
STATUTORY RAPE LAWS.
It is the sense of the Senate that States and local
jurisdictions should aggressively enforce statutory rape
laws.
SEC. 1008. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED
SUBSTANCES.
Notwithstanding any other provision of law, States shall
not be prohibited by the Federal Government from sanctioning
welfare recipients who test positive for use of controlled
substances.
SEC. 1009. ABSTINENCE EDUCATION.
Title V of the Social Security Act (42 U.S.C. 701-709) is
amended by adding at the end the following new section:
``abstinence education
``Sec. 510. (a) There are authorized to be appropriated
$75,000,000 for the purposes of enabling the Secretary,
through grants, contracts, or otherwise to provide for
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 liekly to bear children out of
wedlock.
``(b) For purposes of this section, the term `abstinence
education' means an educational or motivational program
which--
``(1) has as its exclusive purpose, teaching the social,
psychological, and health gains to be realized by abstaining
from sexual activity;
``(2) teaches abstinence from sexual activity outside
marriage as the expected standard for all school age
children;
``(3) 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;
``(4) teaches that a mutually faithful monogamous
relationship in context of marriage is the expected standard
of human sexual activity;
``(5) teaches that sexual activity outside of the context
of marriage is likely to have harmful psychological and
physical effects;
``(6) teaches that bearing children out-of-wedlock is
likely to have harmful consequences for the child, the
child's parents, and society;
``(7) teaches young people how to reject sexual advances
and how alcohol and drug use increases vulnerability to
sexual advances; and
``(8) teaches the importance of attaining self-sufficiency
before engaging in sexual activity.''.
SEC. 1010. 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.''.
SEC. 1011. 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 1996 and for each fiscal year after fiscal year 2002;
and
``(6) $2,520,000,000 for each of the fiscal years 1997
through 2002.''.
SEC. 1012. EFFICIENT USE OF FEDERAL TRANSPORTATION FUNDS.
The Secretary of Health and Human Services is encouraged to
work in coordination with State agencies to ensure that
Federal transportation funds that may be used for the benefit
of persons receiving public assistance pursuant to this Act
and the amendments made by this Act are most efficiently used
for such purpose. The Secretary shall work with the
individual States to develop criteria and measurements to
report back to the Congress, within 3 years after the date of
the enactment of this Act, the following:
(1) The use of competitive contracting or other market-
oriented strategies to achieve efficiencies.
(2) The efficient use of all related transportation funds
to support persons receiving assistance pursuant to this Act
and the amendments made by this Act.
(3) The actual value derived from transportation services
to achieve such purposes.
(4) The application of such analyses to other support
services to achieve such purposes.
[[Page H7972]]
SEC. 1013. ENHANCED FEDERAL MATCH FOR CHILD WELFARE
AUTOMATION EXPENSES.
(a) In General.--Section 474(a)(3)(C) of the Social
Security Act (42 U.S.C. 674(a)(3)(C)) is amended to read as
follows:
``(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;''.
(b) Effective Date.--The amendments made by this section
shall be effective on and after October 1, 1996.
Subtitle B--Earned Income Tax Credit
SEC. 1021. EARNED INCOME CREDIT AND OTHER TAX BENEFITS DENIED
TO INDIVIDUALS FAILING TO PROVIDE TAXPAYER
IDENTIFICATION NUMBERS.
(a) Earned Income Credit.--
(1) 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.''
(2) 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 subclause
(II) (or that portion of subclause (III) that relates to
subclause (II)) of section 205(c)(2)(B)(i) of the Social
Security Act).''
(b) Personal Exemption.--
(1) In general.--Section 151 of such Code (relating to
allowance of deductions for personal exemptions) is amended
by adding at the end the following new subsection:
``(e) Indentifying Information Required.--No exemption
shall be allowed under this section with respect to any
individual unless the taxpayer identification number of such
individual is included on the return claiming the
exemption.''
(2) Conforming amendments.--
(A) Subsection (e) of section 6109 of such Code is
repealed.
(B) Section 6724(d)(3) of such Code is amended by adding
``and'' at the end of subparagraph (C), by striking
subparagraph (D), and by redesignating subparagraph (E) as
subparagraph (D).
(c) Dependent Care Credit.--Subsection (e) of section 21 of
such Code (relating to expenses for household and dependent
care services necessary for gainful employment) is amended by
adding at the end the following new paragraph:
``(10) Identifying information required with respect to
qualifying individuals.--No credit shall be allowed under
this section with respect to any qualifying individual unless
the taxpayer identification number of such individual is
included on the return claiming the credit.''
(d) 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--
(1) by striking ``and'' at the end of subparagraph (D), and
(2) by striking the period at the end of subparagraph (E)
and inserting a comma, and
(3) by adding at the end the following new subparagraphs:
``(F) an omission of a correct taxpayer identification
number required under section 21 (relating to expenses for
household and dependent care services necessary for gainful
employment), section 32 (relating to the earned income
credit) to be included on a return, or section 151 (relating
to allowance of deductions for personal exemptions), 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.''
(e) Effective Date.--The amendments made by this section
shall apply with respect to returns the due date for which
(without regard to extensions) is more than 30 days after the
date of the enactment of this Act.
SEC. 1022. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT
ON BASIS OF DISQUALIFIED INCOME.
(a) Reduction in Disqualified Income Threshold.--
(1) In general.--Section 32(i)(1) of the Internal Revenue
Code of 1986 (relating to denial of credit for individuals
having excessive investment income) is amended by striking
``$2,350'' and inserting ``$2,200''.
(2) Adjustment for inflation.--Section 32(j) of such Code
is amended to read as follows:
``(j) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning after the applicable calendar year, each dollar
amount referred to in paragraph (2)(B) shall be increased by
an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, except that subparagraph (B) thereof shall be
applied by reference to the CPI for the calendar year
preceding the applicable calendar year rather than the CPI
for calendar year 1992.
``(2) Definitions, etc.--For purposes of paragraph (1)--
``(A) Applicable calendar year.--The term `applicable
calendar year' means--
``(i) 1994 in the case of the dollar amounts referred to in
clause (i) of subparagraph (B), and
``(ii) 1996 in the case of the dollar amount referred to in
clause (ii) of subparagraph (B).
``(B) Dollar amounts.--The dollar amounts referred to in
this subparagraph are--
``(i) the dollar amounts contained in subsection (b)(2)(A),
and
``(ii) the dollar amount contained in subsection (i)(1).
``(3) Rounding.--
``(A) In general.--Except as provided in subparagraph (B),
if any dollar amount after being increased under paragraph
(1) is not a multiple of $10, such dollar amount shall be
rounded to the nearest multiple of $10 (or, if such dollar
amount is a multiple of $5, such dollar amount shall be
increased to the next higher multiple of $10).
``(B) Disqualified income threshold amount.--If the dollar
amount referred to in paragraph (2)(B)(ii) after being
increased under paragraph (1) is not a multiple of $50, such
amount shall be rounded to the next lowest multiple of $50.''
(b) Definition of Disqualified Income.--Paragraph (2) of
section 32(i) of such Code (defining disqualified income) is
amended by striking ``and'' at the end of subparagraph (B),
by striking the period at the end of subparagraph (C) and
inserting a comma, and by adding at the end the following new
subparagraphs:
``(D) the capital gain net income (as defined in section
1222) of the taxpayer for such taxable year, and
``(E) the excess (if any) of--
``(i) the aggregate income from all passive activities for
the taxable year (determined without regard to any amount
included in earned income under subsection (c)(2) or
described in a preceding subparagraph), over
``(ii) the aggregate losses from all passive activities for
the taxable year (as so determined).
For purposes of subparagraph (E), the term `passive activity'
has the meaning given such term by section 469.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1995.
SEC. 1023. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION
FOR EARNED INCOME CREDIT.
(a) In General.--Subsections (a)(2), (c)(1)(C), and
(f)(2)(B) of section 32 of the Internal Revenue Code of 1986
are each amended by striking ``adjusted gross income'' and
inserting ``modified adjusted gross income''.
(b) Modified Adjusted Gross Income Defined.--Section 32(c)
of such Code (relating to definitions and special rules) is
amended by adding at the end the following new paragraph:
``(5) Modified adjusted gross income.--
``(A) In general.--The term `modified adjusted gross
income' means adjusted gross income--
``(i) determined without regard to the amounts described in
subparagraph (B), and
``(ii) increased by
``(I) the amount of interest received or accrued by the
taxpayer during the taxable year which is exempt from tax,
and
``(II) amounts received as a pension or annuity, and any
distributions or payments received from an individual
retirement plan, by the taxpayer during the taxable year to
the extent not included in gross income.
Clause (ii)(II) shall not include any amount which is not
includible in gross income by reason of section 402(c),
403(a)(4), 403(b)(8), 408(d) (3), (4), or (5), or 457(e)(10).
``(B) Certain amounts disregarded.--An amount is described
in this subparagraph if it is--
``(i) the amount of losses from sales or exchanges of
capital assets in excess of gains from such sales or
exchanges to the extent such amount does not exceed the
amount under section 1211(b)(1),
``(ii) the net loss from estates and trusts,
``(iii) the excess (if any) of amounts described in
subsection (i)(2)(C)(ii) over the amounts described in
subsection (i)(2)(C)(i)
[[Page H7973]]
(relating to nonbusiness rents and royalties), and
``(iv) the net loss from the carrying on of trades or
businesses, computed separately with respect to--
``(I) trades or businesses (other than farming) conducted
as sole proprietorships,
``(II) trades or businesses of farming conducted as sole
proprietorships, and
``(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken into
account items which are attributable to a trade or business
which consists of the performance of services by the taxpayer
as an employee.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1995.
SEC. 1024. NOTICE OF AVAILABILITY REQUIRED TO BE PROVIDED TO
APPLICANTS AND FORMER RECIPIENTS OF TEMPORARY
ASSISTANCE FOR NEEDY FAMILIES, FOOD STAMPS, AND
MEDICAID.
(a) Temporary Assistance for Needy Families.--Section
408(a), as added by section 103 of this Act, is amended by
adding at the end the following:
``(16) Notice of eitc availability.--A State to which a
grant is made under section 403 shall provide written notice
of the existence and availability of the earned income credit
under section 32 of the Internal Revenue Code of 1986 to--
``(A) any individual who applies for assistance under the
State program funded under this part, upon receipt of the
application; and
``(B) any individual whose assistance under the State
program is terminated, in the notice of termination of such
assistance.''.
(b) Food Stamps.--Section 11(e) of the Food Stamp Act of
1977 (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 ``; and''; and
(3) by inserting after paragraph (25) the following:
``(26) that whenever a household applies for food stamp
benefits, and whenever such benefits are terminated with
respect to a household, the State agency shall provide to
each member of such household notice of--
``(A) the existence of the earned income tax credit under
section 32 of the Internal Revenue Code of 1986; and
``(B) the fact that such credit may be applicable to such
member.''.
(c) Medicaid.--Section 1902(a) (42 U.S.C. 1396a(a)) is
amended--
(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 adding at the end the following new paragraph:
``(63) provide that the State shall provide notice of the
existence and availability of the earned income tax credit
under section 32 of the Internal Revenue Code of 1986 to each
individual applying for medical assistance under the State
plan and to each individual whose eligibility for medical
assistance under the State plan is terminated.''.
SEC. 1025. NOTICE OF AVAILABILITY OF EARNED INCOME TAX CREDIT
AND DEPENDENT CARE TAX CREDIT TO BE INCLUDED ON
W-4 FORM.
Section 11114 of the Omnibus Budget Reconciliation Act of
1990 (26 U.S.C. 21 note), relating to program to increase
public awareness, is amended by adding at the end the
following new sentence: ``Such means shall include printing a
notice of the availability of such credits on the forms used
by employees to determine the proper number of withholding
exemptions under chapter 24 of the Internal Revenue Code of
1986.''.
SEC. 1026. ADVANCE PAYMENT OF EARNED INCOME TAX CREDIT
THROUGH STATE DEMONSTRATION PROGRAMS.
(a) In General.--Section 3507 of the Internal Revenue Code
of 1986 (relating to the advance payment of the earned income
tax credit) is amended by adding at the end the following:
``(g) State Demonstrations.--
``(1) In general.--In lieu of receiving earned income
advance amounts from an employer under subsection (a), a
participating resident shall receive advance earned income
payments from a responsible State agency pursuant to a State
Advance Payment Program that is designated pursuant to
paragraph (2).
``(2) Designations.--
``(A) In general.--From among the States submitting
proposals satisfying the requirements of subsection (g)(3),
the Secretary (in consultation with the Secretary of Health
and Human Services) may designate not more than 4 State
Advance Payment Demonstrations. States selected for the
demonstrations may have, in the aggregate, no more than 5
percent of the total number of household participating in the
program under the Food Stamp program in the immediately
preceding fiscal year, Administrative costs of a State in
conducting a demonstration under this section may be included
for matching under section 403(a) of the Social Security Act
and section 16(a) of the Food Stamp Act of 1977.
``(B) When designation may be made.--Any designation under
this paragraph shall be made no later than December 31, 1995.
``(C) Period for which designation is in effect.--
``(i) In general.--Designations made under this paragraph
shall be effective for advance earned income payments made
after December 31, 1995, and before January 1, 1999.
``(ii) Special rules.--
``(I) Revocation of designations.--The Secretary may revoke
the designation under this paragraph if the Secretary
determines that the State is not complying substantially with
the proposal described in paragraph (3) submitted by the
State.
``(II) Automatic termination of designations.--Any failure
by a State to comply with the reporting requirements
described in paragraphs (3)(F) and (3)(G) has the effect of
immediately terminating the designation under this paragraph
(2) and rendering paragraph (5)(A)(ii) inapplicable to
subsequent payments.
``(3) Proposals.--No State may be designated under
subsection (g)(2) unless the State's proposal for such
designation--
``(A) identifies the responsible State agency,
``(B) describes how and when the advance earned income
payments will be made by that agency, including a description
of any other State or Federal benefits with which such
payments will be coordinated,
``(C) describes how the State will obtain the information
on which the amount of advance earned income payments made to
each participating resident will be determined in accordance
with paragraph (4),
``(D) describes how State residents who will be eligible to
receive advance earned income payments will be selected,
notified of the opportunity to receive advance earned income
payments from the responsible State agency, and given the
opportunity to elect to participate in the program,
``(E) describes how the State will verify, in addition to
receiving the certifications and statement described in
paragraph (7)(D)(iv), the eligibility of participating
residents for the earned tax credit,
``(F) commits the State to furnishing to each participating
resident and to the Secretary by January 31 of each year a
written statement showing--
``(i) the name and taxpayer identification number of the
participating resident, and
``(ii) the total amount of advance earned income payments
made to the participating resident during the prior calendar
year,
``(G) commits the State to furnishing to the Secretary by
December 1 of each year a written statement showing the name
and taxpayer identification number of each participating
resident,
``(H) commits the State to treat the advanced earned income
payments as described in subsection (g)(5) and any repayments
of excessive advance earned income payments as described in
subsection (g)(6),
``(I) commits the State to assess the development and
implementation of its State Advance Payment Program,
including an agreement to share its findings and lessons with
other interested States in a manner to be described by the
Secretary, and
``(J) is submitted to the Secretary on or before June 30,
1995.
``(4) Amount and timing of advance earned income
payments.--
``(A) Amount.--
``(i) In general.--The method for determining the amount of
advance earned income payments made to each participating
resident is to conform to the full extent possible with the
provisions of subsection (c).
``(ii) Special rule.--A State may, at its election, apply
the rules of subsection (c)(2)(B) by substituting `between 60
percent and 75 percent of the credit percentage in effect
under section 32(b)(1) for an individual with the
corresponding number of qualifying children' for `60
percent of the credit percentage in effect under section
32(b)(1) for such an eligible individual with 1 qualifying
child' in clause (i) and `the same percentage (as applied
in clause (i))' for `60 percent' in clause (ii).
``(B) Timing.--The frequency of advance earned income
payments may be made on the basis of the payroll periods of
participating residents, on a single statewide schedule, or
on any other reasonable basis prescribed by the State in its
proposal; however, in no event may advance earned income
payments be made to any participating resident less
frequently than on a calendar-quarter basis.
``(5) Payments to be treated as payments of withholding and
fica taxes.--
``(A) In general.--For purposes of this title, advance
earned income payments during any calendar quarter--
``(i) shall neither be treated as a payment of compensation
nor be included in gross income, and
``(ii) shall be treated as made out of--
``(I) amounts required to be deducted by the State and
withheld for the calendar quarter by the State under section
3401 (relating to wage withholding), and
``(II) amounts required to be deducted for the calendar
quarter under section 3102 (relating to FICA employee taxes),
and
``(III) amounts of the taxes imposed on the State for the
calendar quarter under section 3111 (relating to FICA
employer taxes),
as if the State had paid to the Secretary, on the day on
which payments are made to participating residents, an amount
equal to such payments.
``(B) Advance payments exceed taxes due.--If for any
calendar quarter the aggregate amount of advance earned
income payments made by the responsible State agency under a
State Advance Payment Program exceeds the sum of the amounts
referred to in subparagraph (A)(ii) (without regard to
paragraph (6)(A)), each such advance earned income payment
shall be reduced by an
[[Page H7974]]
amount which bears the same ratio to such excess as such
advance earned income payment bears to the aggregate amount
of all such advance earned income payments.
``(6) State repayment of excessive advance earned income
payments.--
``(A) In general.--Notwithstanding any other provision of
law, in the case of an excessive advance earned income
payment a State shall be treated as having deducted and
withheld under section 3401 (relating to wage withholding),
and therefore is required to pay to the United States, the
repayment amount during the repayment calendar quarter.
``(B) Excessive advance earned income payment.--For
purposes of this section, an excessive advance income payment
is that portion of any advance earned income payment that,
when combined with other advance earned income payments
previously made to the same participating resident during the
same calendar year, exceeds the amount of earned income tax
credit to which that participating resident is entitled under
section 32 for that year.
``(C) Repayment amount.--The repayment amount is equal to
50 percent of the excess of--
``(i) excessive advance earned income payments made by a
State during a particular calendar year, over
``(ii) the sum of--
``(I) 4 percent of all advance earned income payments made
by the State during that calendar year, and
``(II) the excessive advance earned income payments made by
the State during that calendar year that have been collected
from participating residents by the Secretary.
``(D) Repayment calendar quarter.--The repayment calendar
quarter is the second calendar quarter of the third calendar
year after the calendar year in which an excessive earned
income payment is made.
``(7) Definitions.--For purposes of this section--
``(A) State advance payment program.--The term `State
Advance Payment Program' means the program described in a
proposal submitted for designation under paragraph (1) and
designated by the Secretary under paragraph (2).
``(B) Responsible state agency.--The term `responsible
State agency' means the single State agency that will be
making the advance earned income payments to residents of the
State who elect to participate in a State Advance Payment
Program.
``(C) Advance earned income payments.--The term `advance
earned income payments' means an amount paid by a responsible
State agency to residents of the State pursuant to a State
Advance Payment Program.
``(D) Participating resident.--The term `participating
resident' means an individual who--
``(i) is a resident of a State that has in effect a
designated State Advance Payment Program,
``(ii) makes the election described in paragraph (3)(C)
pursuant to guidelines prescribed by the State,
``(iii) certifies to the State the number of qualifying
children the individual has, and
``(iv) provides to the State the certifications and
statement set forth in subsections (b)(1), (b)(2), (b)(3),
and (b)(4) (except that for purposes of this clause (iv), the
term `any employer' shall be substituted for `another
employer' in subsection (b)(3)), along with any other
information required by the State.''.
(b) Technical Assistance.--The Secretaries of Treasury and
Health and Human Services shall jointly ensure that technical
assistance is provided to State Advance Payment Programs and
that these programs are rigorously evaluated.
(c) Annual Reports.--The Secretary shall issue annual
reports detailing the extent to which--
(1) residents participate in the State Advance Payment
Programs,
(2) participating residents file Federal and State tax
returns,
(3) participating residents report accurately the amount of
the advance earned income payments made to them by the
responsible State agency during the year, and
(4) recipients of excessive advance earned income payments
repaid those amounts.
The report shall also contain an estimate of the amount of
advance earned income payments made by each responsible State
agency but not reported on the tax returns of a participating
resident and the amount of excessive advance earned income
payments.
(d) Authorization of Appropriations.--For purposes of
providing technical assistance described in subsection (b),
preparing the reports described in subsection (c), and
providing grants to States in support of designated State
Advance Payment Programs, there are authorized to be
appropriated in advance to the Secretary of the Treasury and
the Secretary of Health and Human Services a total of
$1,400,000 for fiscal years 1996 through 1999.
The CHAIRMAN. Pursuant to House Resolution 482, the gentleman from
Tennessee [Mr. Tanner] and a Member opposed will each control 30
minutes.
The Chair recognizes the gentleman from Tennessee [Mr. Tanner].
Mr. TANNER. Madam Chairman, I yield myself such time as I may
consume.
Madam Chairman, I would like to thank the minority leader for
allowing us to present the so-called Castle-Tanner amendment to the
matter pending before the body in this fashion. I want to, at the
outset, thank my cosponsor, the gentleman from Delaware [Mr. Castle],
the cosponsor of this Castle-Tanner bill. It has received some
favorable comment around, and I appreciate it being considered on the
floor today.
Madam Chairman, with those words, I yield 3 minutes to the gentleman
from Delaware [Mr. Castle].
Mr. CASTLE. Madam Chairman, I thank the gentleman for yielding me
time.
Madam Chairman, I will say very briefly, because we do not have much
time, it has been a tremendous pleasure working with the gentleman and
the others who worked on this for many, many months, in what is truly a
bipartisan and bicameral piece of legislation, to resolve the problems
of welfare in the United States of America. It was a bipartisan
problem, and I think it is going to take a bipartisan solution to get
there.
The differences between the Castle-Tanner proposal and the Archer
legislation have been, I think, overstated as I have listened to the
debate. Both are very tough, they end welfare as we know it, and they
require work. There is unanimity of opinion that we need to reform
welfare.
I think what I need to do in the brief time which I have is highlight
some of the differences between these two pieces of legislation so
people can make up their minds which they are going to support, or, as
in my case, if they are going to support both.
First in the case of vouchers, Castle-Tanner continues benefits that
can be used for the care of the child after a State-imposed time limit,
be it up until the time of a job, 2 years, 5 years or after 5 years,
while the Archer legislation strictly prohibits it. That is a highly
important change, and, quite frankly, that has to be done before we
pass any welfare reform bill.
Our bill has an additional $3 billion for work funding. There simply
is not enough money in the Republican proposal right now to make it
work. Maybe it can be put in later, but let us do it now. It is
authorized in the Republican bill. It is committed in this particular
bill.
The lack of money for the work requirement also gives States
flexibility in terms of being able to put together programs to put
people to work. There just is not sufficient money, and what we have
really is an unfunded mandated if it goes to that level.
The maintenance of effort is extremely important. We are requiring
the State spend at least 85 percent of what they spent in 1994. The
States are doing very well by this in terms of saving money, maybe even
better than the Federal Government. This is a minimal requirement in my
opinion, and something we should do.
There is a contingency fund. I can tell Members that the Archer
legislation does not provide a safety net if the contingency fund is
wiped out by recession. Ours is more responsive to economic downturns.
It gives people an opportunity.
There will be economic downturns. Welfare will never get better than
it is now in terms of people not being on it with respect to the
economy we have.
Transferability is important, for example. We want to limit the
transferability to some degree between these different block grants
which are being created to make sure the children receive the benefits
of that. I believe our bill does that better.
Medicaid linkage is important. If you qualify now, you qualify later.
People should have access to medical care.
In the area of food stamps, our bill ensures the food stamp safety
net is not cut off if people are not working after 4 months, even if
job slots are not available.
There are other changes in our legislation. There are many things
which address this. But, overall, we have the same fundamental focus of
ending welfare as we know it. I think we have carefully crafted the
safety nets in a variety of areas to help the States carry out their
programs, to give them flexibility, to make sure particularly the
children, but those who are in the situation in which they cannot take
care of themselves, are served by the piece of legislation we have
before us.
I do not know what the will of the House is today. My preference is
to
[[Page H7975]]
pass this legislation, but I would be satisfied in passing the
Republican legislation. But we must move forward with a concept of
welfare reform. I hope before anyone votes on this, they will look at
it carefully and decide this is the best way to do it, and support
Castle-Tanner.
Mr. SHAW. Madam Chairman, I rise in opposition to the amendment.
The CHAIRMAN. The gentleman from Florida [Mr. Shaw] is recognized for
30 minutes.
Mr. SHAW. Madam Chairman, I yield 4 minutes to the gentleman from
Pennsylvania [Mr. Goodling], the chairman of the Committee on Economic
and Educational Opportunities.
(Mr. GOODLING asked and was given permission to revise and extend his
remarks.)
{time} 1415
Mr. GOODLING. Madam Chairman, there is good news to announce on the
floor of the House today. The good news basically is that all of those
who have, over the last 30 some years, generated an unworkable welfare
program, have now come to the floor and admitted that it does not work.
Well, obviously, anyone knew it was not going to work if the idea was
to help Americans get a part of the American dream. It certainly worked
very well if the intention was to make sure that millions of Americans
would become wards of the State and never have an opportunity to get
part of the American dream.
I want to point out some of the things that came from our committee,
because they have been misrepresented, and why I feel so strongly that
the Republican proposal is the way to go.
First of all, we designed the program with several things in mind. We
said welfare must be a safety net, not a way of life. There must be
very clear emphasis on work and on getting those on welfare into work.
We need to stop abuses of the system. We need to return power and
flexibility to the States because they have a better idea of how to
handle it than we do. Welfare should not encourage, it should
discourage destructive personal behavior that contributes so clearly to
welfare dependence as sell as a host of other social problems.
Now, let me talk briefly about the bill. Under our bill, States must
ensure an increasing percentage of their caseload as participating in
work activities. The percentage increases to 50 percent by the year
2002. What is unique about the Republican welfare bill is that these
are meaningful, honest numbers, unlike the numbers that we will hear in
the other bill.
One of the easiest things to do in putting in work participation
rates is to put in a high percentage, but then either exempt most
welfare recipients from the calculation or count those who cycle on and
off welfare toward meeting those numbers. That is one problem with the
bill being offered by the other side. The work participation numbers
are not honest numbers. We try to balance the need for States to have
flexibility and how they put people to work with tough and meaningful
goals and accountability.
Second, working together with the Committee on Ways and Means and
others, I am pleased that the bill authorizes more money for child
care, more money than anybody ever dreamed could become available.
Clearly, if welfare reform is to succeed, there must be adequate child
care.
We have increased funding to nearly $5 billion more than the current
law and more than the President offered when claiming our bills were
short on child care. One problem may arise, however. All of the working
poor and those from low, middle income are going to say we cannot get
child care but we are going to have to pay for someone else's.
We also made some other important improvements in child care. We
consolidated programs to try to help both the States and, more
importantly, families access child care. The bill increase the amount
of money set aside for quality improvement activities and maintains the
language on health and safety standards that is the child care
development block grant.
The second, on child protection, we consolidated again six small
separate single purpose grants into a new block that would be
distributed by formula to the States. The results, more flexibility and
more money for States to use in setting up programs to prevent as well
as treat child abuse and related problems.
In the areas of child nutrition, the bill saves some money, primarily
by means testing the family day care program, the only program that is
not means tested, the only nutrition program. So it does not matter
what the income is, we take from the money that we would have to feed
the low income and the poor and give it to those who can otherwise pay
for the care,
I would also note, unlike the substitute bill, the leadership welfare
reform bill makes no reduction in reimbursement rates for school lunch
and breakfast. Is it not ironic: All the misrepresentation last year
when we talked about school lunch and child nutrition, and all of the
abuse that got? And now the very people who made those promises and
those abuses are doing just what they thought we were doing when we
were not. They, as a matter of fact, are reducing the amount of money
available for school lunch and school breakfast.
I would finally point out that we have come a long way on both sides.
We are getting closer all the time. I truly believe that the Republican
proposal is the way to go for meaningful welfare reform.
Mr. TANNER. Madam Chairman, I yield myself such time as I may consume
to parenthetically note that the gentleman's criticism of our plan with
respect to work participation is what the Governors' conference told us
that they thought they could achieve. The numbers came from the
Governors, not from us.
Madam Chairman, I yield 2 minutes to the gentleman from Ohio [Mr.
Sawyer].
Mr. SAWYER. Madam Chairman, I rise today in recognition of the
contributions of the previous speaker through the Committee on Economic
and Educational Opportunities to improving this bill, but it is not
sufficient to improve the work that came out of other committees and,
therefore, I rise in support of the Castle-Tanner substitute.
I am opposed to the Republican bill not because it tries to reform
welfare, but because it tries to do so on the cheap. The Republican
plan is based on the premise that the primary goal and the first
objective of welfare reform ought to be to save money, and sadly it
cannot be that alone.
If personal self-sufficiency for every American were easy or cheap,
it would have been done long ago. The fact is that real and lasting and
effective welfare reform will save money in the long run, but it will
be difficult and costly and different in every State no matter what we
do here today.
Today we have before us two bills that stand in stark contrast to one
another, and what we do will make a difference. In one bill we ask the
children to pay the price. It does not pay for work requirements, but
it takes away the guarantee of food and health care for America's
children.
We have another bill, the Castle-Tanner bill. It is tough. It
requires self-sufficiency of adults, but it protects the children. It
makes sure that at every level, no matter what we expect of adults, the
children are fed and cared for. It has adequate funding for work
programs. It recognizes this country sometimes has hard times, and it
will not make the poorest and the youngest pay the most when the whole
country is in a downturn.
Madam Chairman, we frequently point out that the devil is in the
details. In this case both bills are filled with mind-numbing details,
but the cumulative consequences of all those details are clear. We
should not make the children pay an arbitrary and unfair share of the
cost of reform, but we do need to reform.
Therefore, I support and urge my colleagues to support the Tanner-
Castle bill because it is responsible, it puts people to work, and it
looks out for America's children.
Mr. SHAW. Madam Chairman, I yield 5\1/2\ minutes to the gentleman
from Kansas [Mr. Roberts], the distinguished chairman of the Committee
on Agriculture.
Mr. ROBERTS. Madam Chairman, I thank the gentleman for yielding me
this time.
Madam Chairman, I rise in opposition to the substitute and for real
welfare reform, and I want to take time to
[[Page H7976]]
thank the gentlewoman for the splendid and fair job that she is doing
in presiding over a controversial issue, but a very important issue.
There have been many speeches over the past 2 days, 2 years, for that
matter, and there has been quite a bit of talk about what is
compassionate, what is caring, what is humane, what is inhumane about
welfare reform.
Well, let us apply these markers to the Food Stamp Program. Now, that
is the provision of the part of welfare reform that comes under the
jurisdiction of the House Committee on Agriculture and to a great
extent has been ignored in this debate.
Does it help the poor to run a program that has no work requirements?
What is compassionate about running a program so rife with abuse and
mismanagement that the public has lost faith in food stamps? How does
it benefit the needy to run a program that the Department of
Agriculture's own inspector general says is overrun with instances of
trafficking food stamps for guns and drugs?
Evidence of those abuses, by the way, became national news on
television as a result of the first hearing held by the Committee on
Agriculture at the beginning of this Congress.
That is not compassion. That is not caring. Those are failures and
they are failures of the current system that we address and reform in
the committee bill.
Now, let me address another recurring part of this debate, and that
is the gridlock or the inability of the Congress and the President to
reach a compromise. We have worked with the Department of Agriculture,
we have worked with the administration and we have reached accord on
many items, 72 percent, in regards to this bill.
I respect the gentleman from Delaware [Mr. Castle] and the gentleman
from Tennessee [Mr. Tanner]. They are two fine Members, with
unimpeachable integrity, and I respect their views. But there are
significant differences. The substitute does not structurally reform
the Food Stamp Program. It achieves much of its savings by cutting food
stamp benefits, and then in later years reintroduces something called
indexing. That is not real reform.
Now, we have also heard much debate, especially from the
administration, in reference to strong work requirements. My colleagues
should know the substitute's work program actually costs $25 million
more than current law. Current law. This substitute's work requirement
is hollow, hollow because it does not apply, does not apply if a State
does not provide every covered individual a position in a work training
program. That is not a real work requirement, that is government make-
work.
Our bill requires that able-bodied persons between the ages of 18 and
50, who have no dependents, may receive food stamps now for up to 3
months, and then the person is disqualified from food stamps unless
they work for 20 hours a week or participate in a work program.
Who are we talking about? Two percent of the people that receive food
stamps. Two-tenths of 1 percent of the population, able-bodied.
Now, let us talk about something that should be talked about
regarding this debate, and that is the spending that has been out of
control. This program has been on automatic pilot. It went from $10
billion to $27 billion in 10 years. If the economy improved, it went
up. If the economy went bad, we would expect it to go up.
Our bill actually cuts the standard deduction provided to all
applications below current levels to achieve savings. But then it goes
back to indexing, the very cause of past runaway spending. Our bill
takes the Food Stamp Program off of automatic pilot by keeping the
deductions at current rates, but allowing the food stamp benefits to be
adjusted to reflect the changes in the cost of food. Food stamps. We
adjust the cost of food. That is simply basic.
Let us talk about unique and innovative work programs. True
compassion. The substitute does not allow States to operate work
support programs, our bill does, programs in which public assistance is
provided to employers who hire recipients and then are used to pay part
of the wages. Hiring, employers, wages: Real work. That allows food
stamp recipients to gain the experience of working in real jobs to earn
a paycheck.
Our bill allows certain States to pay cash in lieu of food stamp
benefits to a household if a member of the household works in a
nonsubsidized job for 90 days, earns at least $350 a month, and is
eligible to receive welfare. My colleagues, that is incentive. That is
not disincentive, that is incentive to work.
Now, let us talk about the real difference in these bills, and that
is how our savings are achieved. Our bill is focused on making
fundamental structural reforms, at the same time a careful and
conscious decision was made to preserve the food assistance levels that
are currently available.
The substitute, which relies on the proposals of the Clinton
administration, preserves the failed structure of the old Food Stamp
Program. Castle-Tanner achieves their savings by significantly cutting
the benefit levels for the poor. Sixty percent of the savings in this
substitute are derived from cuts in the current food assistance
program.
In other words, saving the old failed system is so important that
they would rather take food from the mouths of food stamp recipients
today than make the needed changes to the structure of the program. We
preserve the existing benefit levels. We make the needed reforms in the
structure of the program.
If we are going to be compassionate and caring and humane, defeat the
substitute and adopt the committee bill. Truly reform the Food Stamp
Program.
Mr. TANNER. Madam Chairman, I yield 10 seconds to the gentleman from
Delaware [Mr. Castle].
Mr. CASTLE. Madam Chairman, I admire the Agriculture Committee
chairman greatly, but the Castle-Tanner bill requires all able-bodied
food stamp recipients to work within 6 months of receiving benefits.
Unlike the Republican leadership bill, Castle-Tanner does not deny food
stamps to individuals who are willing to work but are not able to find
a job. Participation in the food stamp program is a fair program.
Mr. TANNER. Madam Chairman, I yield 2 minutes to the gentleman from
Utah [Mr. Orton].
Mr. ORTON. Madam Chairman, let me begin with my sincere
congratulations to my Republican colleagues.
{time} 1430
They have come a long way in the last 18 months since their original
proposal, H.R. 4, which was a harsh and an unworkable bill. I would
also like to congratulate my friends, the gentleman from Delaware [Mr.
Castle] and the gentleman from Tennessee [Mr. Tanner], and all the
others who worked together with us on the bipartisan compromise
legislation. The Castle-Tanner bill is a good reform bill which should
be enacted into law.
While H.R. 3734 is getting much closer to a viable reform package, it
is not quite there yet. I will not again list the problems with the
majority bill and explain how Castle-Tanner resolves them. Others have
done or will do that adequately. Let me just summarize my concerns in
two major categories: the impact of this legislation on States and on
America's children.
If we are going to fix welfare, then our fix must be adequate. The
Republican bill is inadequate, particularly in the area of work
requirements. The National Governors Association 2 days ago adopted a
resolution on welfare which states in part, we are concerned that the
bill restricts State flexibility and will create additional unfunded
costs. CBO in the report accompanying the Republican bill stated that
in fact the estimate of the unfunded mandate will be at $1.9 billion.
By the way, a footnote: The first day we were in session in this
Congress we adopted legislation to prevent us from implementing
unfunded mandates on States.
In my home State of Utah, we have adopted welfare reform with strong
work requirements, but there is concern whether this legislation
provides sufficient flexibility for Utah to continue that program. Most
importantly, our welfare reform should not hurt innocent children who
have no choice where they are born or whether their parents can find
work. The Castle-Tanner provisions on child care funding, vouchers,
maintenance of efforts, contingency funding and limits on shifting
funds from block grants are all designed to protect innocent children
in a way better than the majority bill. These are cured in the Castle-
Tanner
[[Page H7977]]
bill, and I urge adoption of the measure.
Madam Chairman, I am pleased that the House is debating welfare
reform today. I have frequently stated that there are few things that
people in our Nation agree upon more than the fact that our welfare
system is a failure. I believe we all agree that the welfare system
should be reformed so that it is based on work, and I have worked
diligently to ensure that Congress adopts welfare reform which will be
signed into law this year.
In order to achieve this goal, we must put aside partisan differences
and concentrate on issues like requiring work, strengthening child
support enforcement, and increasing State flexibility. At the same
time, we need to provide sufficient funds for States to meet work
requirements and to provide adequate child care, foster care, adoption
assistance, and health care services to make it economically feasible
for parents to go to work. If we fail to meet these objectives, we are
either settling for a system that is designed to fail, or we are
imposing an unfunded mandate on the States.
I am pleased to be a part of the bipartisan effort that has lead to
the creation of the Castle-Tanner bill. The House will have the
opportunity to consider this legislation today, and I strongly urge my
colleagues to support this proposal because it is the only welfare bill
that meets all of the objectives I have just stated.
In March of last year, the House passed the Personal Responsibility
Act. I voted against that bill because it included several extreme
provisions that would have imposed restrictive mandates on the States
and decimated the safety net for American children. My greatest
concerns were that it provided inadequate funding for child care, it
imposed one-size-fits-all work requirements on States, and it did not
provide for accountability of Federal tax dollars.
Adequate child care and health care funding is essential as we move
parents into the workforce. No one wants innocent children to be in an
unsafe environment because their parent is working. In addition, while
everyone supports the concept of greater State flexibility in designing
a welfare program that meets the needs of their population, it is
essential to provide for accountability of Federal tax dollars. The
Personal Responsibility Act provided no guarantee that States would use
Federal grant funds for their stated purpose.
Finally, one of my central concerns in considering the Personal
Responsibility Act was determining the impact of the legislation on the
successful Single Parent Employment Demonstration [SPED] program in
Utah. The premise underlying the Utah program is universal
participation: everyone works toward self-sufficiency. This program has
enjoyed national and local support, and is exactly the kind of program
you would expect welfare reform to be based upon. Certainly, you would
expect that the Utah program would be allowed to continue down the same
successful path under a reformed system.
Instead, the Utah State Department of Human Services was concerned
with the original bill because restrictive work participation
definitions in the Personal Responsibility Act posed a threat to the
program. The restrictive definition meant that a person faithfully
following a self-sufficiency plan specifically designed to assist them
in entering the labor market could be considered a non-participant by
the Federal Government. The bill contained a Federal definition that
would prevent States, who are dealing directly with individuals, from
determining what would best assist a person in getting a job.
Ironically, while the bill did not allow States to count many active
participants toward meeting mandatory rates, people who were forced to
leave the system because of reaching a time limit could be counted
toward meeting work participation rate even if they have never received
any work-related assistance services.
The original bill simultaneously restricted successful State reform
efforts and offered no protection to people on welfare who were willing
to work--it was the worst of both worlds.
This original bill, which I opposed, was the same song only a
different verse. It imposed a one-size-fits-all Federal solution, only
it prohibited certain actions of States rather than mandating them.
The Democratic alternative was far superior, but not perfect
solution. Subsequently, many of us, Democrat and Republicans have
worked together and forged a bipartisan compromise, which has forced
both the Republicans and the President toward a centrist compromise.
Today's Republican welfare reform bill has been improved dramatically
since its original version last year in the following areas:
It provides an additional $4 billion for child care funding, allowing
more parents to be assured of their children's safety as they enter the
workforce,
It removes the annual food stamp spending cap that would have hurt
people during times of economic recession by limiting the food stamp
program regardless of economic downturn,
It no longer allows conversion of child nutrition programs to State
block grants, therefore we as a nation will remain committed to a basic
level of nutrition for all of America's needy children,
It guarantees services to children in the foster care and adoption
assistance programs where many children are waiting to be placed with a
loving family, and
It enhances States' ability to create a flexible program by providing
a work performance bonus, additional funding through the contingency
fund, and a greater hardship exemption.
I commend my colleagues on the other side of the aisle for moving
toward us on these critical issues. However, there still remain some
very serious problems with the current Republican proposal that are
addressed in the Castle/Tanner bill.
Before outlining important differences, it is critical to point out
that where the Congressional Budget Office [CBO] has determined that
the Republican bill provides inadequate funding to meet the
requirements of the bill, the bill imposes an unfunded mandate on the
States. One of the first actions of this Congress was to prohibit
unfunded mandates.
The bipartisan Castle/Tanner bill, of which I am an original
cosponsor, contains the following superior provisions:
Castle/Tanner adopts the recommendations of the National Governor's
Association to give States greater flexibility to meet work
requirements. On the other hand, the Republican bill contains an
unfunded mandate. CBO estimates that the bill provides $12.9 billion
less than necessary to achieve the work requirements in the bill, and
concludes that most States would fail to meet the work requirements.
Finally, CBO assumes that States would choose to accept penalties
rather than meeting the costs of the program. In addition, the National
Governors' Association has recently adopted a resolution regarding
welfare reform in which the Governors state they are concerned that
Republican majority bill H.R. 3734 because it ``restricts State
flexibility and will create additional unfunded costs.''
Castle-Tanner provides for contingency funding for protection during
times of economic downturn, when States are experiencing a regional
recession or when the Nation is in recession. Without this provision,
there will be no funding to assist States when they need it most.
Castle-Tanner provides adequate child care funding. CBO estimates
that the Republican bill provides $800 million less than what is
necessary to serve the children who need care as their parents enter
the work force. Further, Castle/Tanner limits the transfer of block
grant funds to anything but child care whereas the Republican bill
would allow transfer of funds to other programs.
Castle-Tanner requires that States maintain at least 85 percent of
their current level of effort. In contrast, the Republican bill allows
States to decrease their current expenditures by 25 percent, even if
they are not having any success in getting people into jobs. The
Castle/Tanner bill allows some States to decrease their level of
expenditures to 80 percent if they have been successful in getting
people to work. This is a sensible provision that guarantees that
States keep up their end of the partnership with the Federal
Government, and that they are rewarded for their success.
Castle-Tanner requires that individuals in similar situations are
treated similarly. This is a commonsense provision. In addition, it
requires that States have objective and equitable standards for
determining eligibility.
In conclusion, I urge my colleagues to vote in favor of the Castle-
Tanner welfare bill. It outlines tough common sense reforms, but
provides States with assistance in times of economic downturn. Let's
not settle for anything less than welfare reform that works.
Mr. SHAW. Madam Chairman, I would point out to the gentleman in the
well that the letter from the Congressional Budget Office to the
chairman of the Committee on Ways and Means states that the work
requirements contained in the portion of H.R. 3734 titled Temporary
Assistance for Needy Families do not constitute an intergovernmental
mandate as defined under the Unfunded Mandates Reform Act of 1995.
It is a bogus argument.
Madam Chairman, I include for the Record the letter to which I
referred:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 18, 1996.
Hon. Bill Archer,
Chairman, Committee on Ways and Means, House of
Representatives, Washington, DC.
Dear Mr. Chairman: At the request of your staff, the
Congressional Budget Office (CBO) is providing a more
detailed explanation of why the work requirements contained
in the portion of H.R. 3734 titled Temporary Assistance for
Needy Families do not constitute an intergovernmental mandate
as defined under the Unfunded Mandates Reform Act of 1995
(Public Law 104-4). On June
[[Page H7978]]
26, 1996, CBO transmitted an intergovernmental mandates
statement for H.R. 3734, the Welfare and Medicaid Reform Act
of 1996, as ordered reported by the House Committee on the
Budget on June 18, 1996.
Even though the proposed work requirements would be more
stringent than those in current law, the additional
requirements would not constitute a mandate because states
would have the flexibility to offset the cost of the
requirement by reducing their own financial or programmatic
responsibilities. Public Law 104-4 defines a federal
intergovernmental mandate, in part, as:
``* * * any provision in legislation, statute, or
regulation that relates to a then-existing Federal program
under which $500,000,000 or more is provided annually to
State, local, and tribal governments under entitlement
authority, if the provision--
``(i)(I) would increase the stringency of conditions of
assistance to State, local, or tribal governments under that
program; or
``(II) would place caps upon, or otherwise decrease, the
Federal Government's responsibility to provide funding to
State, local, or tribal governments under the program; and
``(ii) the State, local, or tribal governments that
participate in the Federal program lack authority under the
program to amend their financial or programmatic
responsibilities to continue providing required services that
are affected by the legislation, statute, or regulation.''
Under the program titled Temporary Assistance to Needy
Families, states would have the flexibility to determine who
is eligible for assistance and the size of the benefit.
Therefore, the bill would not require states to devote
additional funds to assistance for needy families. States
would have the flexibility to offset the cost of the work
requirements by tightening eligibility for assistance to
needy families or by reducing the size of the benefit.
If you wish further details on this analysis, we will be
pleased to provide them. The staff contact is John Patterson
who can be reached at 225-3220.
Sincerely,
James T. Blum
(For June E. O'Neill, Director.)
Madam Chairman, I yield 1\1/2\ minutes to the gentleman from Texas
[Mr. DeLay], distinguished Republican whip.
Mr. DeLAY. Madam Chairman, I rise in opposition to this substitute
offered by my good friends, the gentleman from Tennessee [Mr. Tanner]
and the gentleman from Delaware [Mr. Castle]. I thought they worked
very hard on this substitute. To me, this substitute is one last
desperate attempt by the minority to cling to the status quo.
They are making an argument about unfunded mandates, yet they still
do not understand the concept of block grants and flexibility given to
the States to make decisions based upon where the money will be spent
among these programs. Our children cannot afford this status quo.
I ask my colleagues this question: Is it right to preserve a system
that has ruined opportunities, destroyed hope, and hurt generations of
our Nation's children?
I say to my colleagues that the current system is tough on children,
weak on work, and easy on deadbeat dads. It is this system that I think
the minority has fought so fiercely to expand and protect.
This substitute does not go far enough to change the current system.
It has loopholes that make any time limits worthless.
It still allows people who will have been on welfare for 5 years to
continue to receive benefits. It puts the States in a straitjacket,
giving them very little freedom to design their own reform programs. In
fact, this substitute gives Secretary Shalala veto power over State
welfare plans.
Madam Chairman, I just urge my colleagues to vote for real reform,
defeat the Tanner substitute and let the American people know that the
status quo is just not good enough.
Mr. TANNER. Madam Chairman, one could categorize our bill as a lot of
things, but status quo it is not.
Madam Chairman, I yield such time as he may consume to the gentleman
from Tennessee [Mr. Clement].
(Mr. CLEMENT asked and was given permission to revise and extend his
remarks.)
Mr. CLEMENT. Madam Chairman, I rise in support of Tanner-Castle. It
is a good piece of legislation.
Let me tell you about Charles Davis, a former NBA basketball star who
grew up in south Nashville on welfare. By utilizing his athletic skill,
he was able to receive a scholarship to college and eventually play for
the Chicago Bulls.
While he may be best known as a basketball great, he remains most
admired in our community for his dedication to helping the
disadvantaged. After years in the spotlight from his basketball
achievements, he never forgot those less fortunate than himself, and he
established the Charles Davis Foundation to provide funds that help
individuals who are on welfare. He never forgot these people, because
he knew firsthand what it was like to grow up on welfare.
As a Congress, we to cannot forget these individuals. We can on
longer delay welfare reform and we must enact a tough, balanced
proposal while striving to preserve the basic guarantees of assistance
to the disadvantaged. Reflecting the principles of work, family, and
responsibility, I feel that the Castle-Tanner welfare reform bill
achieves this effect.
It is the Castle-Tanner substitute that requires work while providing
the necessary support to make it a reality. We cannot forget the
mothers trying to compete for jobs that provide real routes out of
poverty but who find it extremely difficult to get the education or
training they need. We cannot forget the value of good nutrition and
health for the millions of children, working families, and the elderly
on welfare.
I will support the Castle-Tanner substitute that guarantees
protections for children and moves able welfare recipients to work. We
must follow Charles Davis' example and not forget the individuals on
welfare. The Castle-Tanner substitute is welfare reform that we can all
support.
Mr. TANNER. Madam Chairman, I yield 2 minutes to the gentlewoman from
Missouri [Ms. McCarthy].
Ms. McCARTHY. Madam Chairman, I rise as a cosponsor of the Castle-
Tanner proposal and in strong support of this substitute. Castle-Tanner
is a fiscally responsible, bipartisan approach to putting people to
work and protecting our children. It is encouraging to see that the
House leadership has made changes in their bill attempting to move
toward the Castle-Tanner substitute; however, many substantive
differences still remain.
This proposal will give States the tools they need to achieve genuine
welfare reform. Adequate funding is essential to a successful welfare
reform and the Castle-Tanner substitute provides the resources for
States to meet the participation rates required in their work programs.
It will require a more reasonable State maintenance of effort, while
still rewarding States that exceed their work participation rates. In
times of economic downturn, it will ensure additional contingency funds
for States to meet the increased demands.
The bipartisan alternative protects children. It requires States to
provide vouchers for the needs of children in families removed from
welfare rolls as a result of State imposed time limits less than 5
years, and it gives States the option of offering vouchers for children
who leave welfare after the 5-year time limit Castle-Tanner also
protects legal immigrant children by exempting them from the ban on
food stamps and SSI. The substitute contains strong child support
enforcement provisions to ensure that parents take responsibility for
their children. In addition, the Castle-Tanner substitute protects the
nutritional safety net by maintaining the entitlement in the Food
Stamps Program.
THe Castle-Tanner substitute moves more people from welfare to work.
The substitute establishes reasonable work participation requirements
and guarantees States the resources needed to meet those requirements
rather another unfunded Federal mandate.
So that families working their way out of poverty will be able to put
food on the table.
According to the Center on Budget and Policy Priorities, under the
majority's welfare reform bill, households in Missouri could experience
a decrease in food stamp benefits of $301 in 1998 and as much as $435
in the year 2000. When families are struggling to free themselves from
poverty, punitive reductions in food stamp benefits make that job more
difficult. The Castle-Tanner substitute ensures that families working
their way out of poverty will be able to put food on the table.
As a State Legislator in Missouri, I worked diligently to reform the
welfare system in my home State and implement reforms similar to
provisions contained in the Castle-Tanner proposal. Our plan requires
self-sufficiency pacts, similar to the personal responsibility
contracts in this substitute, and we impose time based on these pacts.
We established successful State initiatives such as the Futures
Program, which moves individuals with long-term dependency from welfare
to work, and the Local Investment Commission [LINC] to encourage local
businesses to put recipients to work a sustainable wage. One Futures
participant, Scotti has two children and was on the verge of being
homeless
[[Page H7979]]
when she entered the program. She was able to find housing, enroll in
computer training classes, and find employment in 10 months. Scotti,
along with the other Futures participants were able to reach their goal
of self-sufficiency by utilizing the support of Food Stamps and other
public assistance programs.
All of the Missouri participants were willing to take risks to change
the direction of their life by being confident their children's basic
needs of food and nutrition and health care would not be jeopardized.
These programs have been instrumental in assisting individuals to leave
welfare and become productive taxpayers, and the Castle-Tanner
substitute will give each State the opportunity to make reforms and
experience similar success.
The Castle-Tanner substitute is a fiscally responsible approach to
welfare reform that will move people from welfare to work, encourage
responibility, and protect children. This substitute is supported by a
bipartisan group in Congress and is a bill that the Pesident can sign.
I urge my colleagues to support the Castle-Tanner substitute.
Mr. TANNER. Madam Chairman, I yield 2 minutes to the gentlewoman from
New Jersey [Mrs. Roukema].
(Mrs. ROUKEMA asked and was given permission to revise and extend her
remarks.)
Mrs. ROUKEMA. Madam Chairman, I rise in support of the Tanner-Castle
alternative to the underlying welfare reform package contained in H.R.
3734.
I want to be very clear that I have been in the forefront of welfare
reform that can be correctly characterized as ``tough love'' and I also
support the block grant approach. The flexibility of block grants is
meritorious as long as we preserve the maintenance of effort standards,
protect the safety net with a rainy day fund and the food stamp
program. I support block grants, in other words, does not become a
blank check for the Governors. Tanner-Castle will not open the
possibility that innocent children will go hungry and homeless.
I was quite distressed to learn, late last night, that the welfare
reform package we are debating today contains changes to the food stamp
program that undermine the food stamp program, and in doing so move our
country in exactly the wrong direction--away from maintaining a true
safety net for those truly in need, especially innocent children.
This welfare reform package--as opposed to our prior Republican
plans--gives the States, and their Governors, newfound discretion over
the food stamp program, which I readily suspect will be used in an
attempt to block grant food stamps.
Block granting food stamps was subject to extensive debate and
analysis last year, and ultimately this Congress correctly rejected
this notion.
It is my strongly held position that block grants for food stamps was
intentionally rejected because it represents beginning of the end of
the food stamp program as a safety net for families with children in
need.
Allowing Governors to block grant food stamps is a loophole that
deeply concerns me and many others who have worked so hard to ensure
that these programs help those who need it because they cannot help
themselves.
Throughout all of the debate in recent years over how best to
implement welfare reform, I have repeatedly made clear that I simply
will not support any legislation that results in innocent children
going hungry or homeless.
In my view, the Tanner-Castle alternative meets this test, while the
underlying bill does not.
After reviewing both plans last night, I have concluded that Tanner-
Castle does not erode our Nation's commitment to provide a safety net
for those among us who cannot provide for themselves.
For example, the underlying bill calls for $23 billion in food stamp
savings, while the Tanner-Castle amendment calls for $20 billion in
savings.
Unfortuantely, the underlying bill calls for food stamp benefits to
be terminated if a welfare recipient does not find work within 4
months, regardless of the circumstances. Under this policy, what
happens to the innocent children in this family?
Thankfully, the Tanner-Castle amendment stipulates food stamp
assistance cannot be denied to someone on welfare who can't find work
because jobs aren't available--this is exactly the kind of protections
that will ensure our Nation's safety net remains in place in order to
protect children and ensure that they don't go hungry through no fault
of their own.
I agree with today's New York Times editorial which voiced its clear
support for the alternative plan by saying that Tanner-Castle
``preserves a federally-guaranteed food stamp program,'' in addition to
the editorial in today's Washington Post which said endorsed Tanner-
Castle saying it will ``preserve the income floor [provided by food
stamp benefits] and reduce the severity of the cuts'' proposed by the
underlying bill.
Finally, this legislation allows States to use vouchers--instead of
cash benefits--to pay for certain services needed by welfare recipients
if a State has terminated cash benefits as part of its sanction
program.
This is a large step in the right direction, because even if a
welfare recipient is playing by all of the rules and has not found a
job when the time limits become effective, the use of vouchers for
services plays an important role in helping the family and its children
keep their head above the waterline.
Although last night I indicated my support for the underlying
legislation, I have withdrawn my support for this plan because I
believe that the Tanner-Castle alternative is a more equitable,
balanced approach to welfare reform.
Last April, I supported the initial House version of welfare reform
legislation with some reservations. I was very pleased to see
subsequently that the conference committee report on H.R. 4 last
November included many significant improvements from the Senate-passed
bill, which have properly been retained in the legislation before us
now.
I might add that, at that time, I stressed and received explicit
assurances from our House Agriculture Committee that food stamps would
not be clock granted.
There should be no question that we must enact strong welfare reform
legislation this year. The American people are correctly demanding that
we restore the notion of individual responsibility and self-reliance to
a system that has run amok over the past 20 years.
Although I have strongly supported some welfare reforms that have
been described as tough love measures for several years now, I want to
reiterate that my goal has always been to require self-reliance and
responsibility, while ensuring that innocent children do not go hungry
and homeless as a result of any Federal action--the Tanner-Castle plan
meets that test, too.
Let me also be clear about the need for more flexibility for the
States--I support giving Governors and State legislatures more freedom
to design a welfare program that meets the needs of their people.
However, the notion of block grants giving States more freedom and
flexibility to better design programs for their local areas does not
meet that the Federal Government gives the States a blank check for
which they are not held accountable.
For example, I believe that block grants must still require so-called
maintenance of effort requirements on States in order to ensure that
the safety net of our Nation is maintained, and that States don't
simply fund welfare programs with only Federal funds.
It is primarily for these reasons that I cannot support the
underlying legislation, and must instead vote for the Tanner-Castle
alternative.
First, this bill requires welfare recipients to work--a big step in
the right direction.
Second, this bill places time limits on welfare benefits--no longer
will people be allowed to live their lives on welfare.
Third, this bill keeps the family cap in place, which means that
mothers on welfare don't get extra cash benefits for having babies.
In other words, the United States will no longer be the only nation
in the Western World that pays young girls to have babies.
New Jersey already has this policy in place, and I am pleased to see
that H.R. 3734 retains this worthwhile reform--I should mention that
the New Jersey family cap law was sponsored by a Democratic State
legislator, and gained strong bipartisan support and was ultimately
signed into law by a Democratic Governor.
[[Page H7980]]
Fourth, this bill has a strong and effective child support
enforcement reform title, which is something that I have worked on here
in Congress for more than 10 years.
As I have long maintained, strong child support enforcement reforms
must be an essential component of any true welfare reform plan, because
improved child support enforcement is welfare prevention: one of
primary reasons that so many mothers with children land on welfare
rolls is that they are not receiving the child support payments they
are legally and morally owed.
Failure to pay court-ordered child support is not a victimless crime.
The children going with these payments are the first victims. But, the
taxpayers who have to pick up the tab for deadbeat parents evading
their obligations are the ultimate victims.
The core of these child support enforcement reforms is the absolute
requirement for interstate enforcement of child support, because the
current, State-based system is only as good as its weakest link.
Specifically, I want to note that the Roukema amendment on license
revocation, which the House overwhelmingly approved last April 426 to
5, has been included in this bill. It requires States to implement a
license revocation program for deadbeat parents who have driver's
licenses, professional licenses, occupational licenses, or recreational
licenses.
This reform has worked very well in 19 States--the State of Maine, in
particular, has been a leader--that already have it in place, and if
license revocation is implemented nationwide I am convinced it will
work even more successfully.
Earlier today, I asked the Rules Committee to include a second child
support enforcement proposal--a requirement that States enact criminal
penalties of their own design for willful nonsupport of children--as
part of the manager's amendment to H.R. 3734. I hope that the Rules
Committee will do the right thing, and include this tough reform in the
legislation we will vote on tomorrow.
Fifth, I believe that the legislation's reforms for nutrition
programs represents significant progress in maintaining the safety net
for those in our society who are unable to provide for themselves.
During both Opportunities Committee markup and floor debate on
welfare reform last year, I repeatedly attempted to protect the current
safety net for school lunches so that, during times of recession, when
more families move toward or beyond the poverty level and become
eligible to participate in the School Lunch Program, additional money
would be available to provide nutrition services.
Thankfully, the Senate saved the House from itself with its decision
to preserve the current Federal safety net for school lunches, and H.R.
3734 follows the Senate position on this issue, which I wholeheartedly
support.
I have always preferred to see the School Lunch Program completely
maintained at the Federal level, and this legislation correctly does
just that.
I am also extremely pleased that the welfare reform package before us
does not block grant nutrition services for WIC, the nutrition program
serving low-income, postpartum women with children and infants.
Finally, I am gratified to see that this bill incorporates a rainy
day fund for those States that suffer a recession or economic downturn.
Last year, I repeatedly advocated that this kind of provision be
included in any kind of welfare reform package that contains block
grants in order to ensure that those who truly depend on our safety net
programs can continue to rely on them during times of economic
distress.
Earlier this spring, the National Governors Association called upon
the Congress to put $2 billion of funding into the rainy day fund, and
this legislation meets that goal--I enthusiastically support this
provision.
We have been so close to passing meaningful welfare reform for so
long. Let us today finally move that process forward one more step by
passing this comprehensive welfare reform bill.
This is the bill. This is the time. The people of America should not
have to wait any longer. I urge my colleagues to join me in supporting
this important package.
Mr. SHAW. Madam Chairman, I yield 3 minutes to the gentleman from
Ohio [Mr. Hoke].
Mr. HOKE. Madam Chairman, what mean-spirited right winger said the
following:
The lessons of history, confirmed by the evidence
immediately before me, show conclusively that continued
dependence upon relief induces a spiritual disintegration,
fundamentally destructive to the national fiber. To dole out
relief in this way is to administer a narcotic, a subtle
destroyer of the human spirit. It is in violation of the
traditions of America. The Federal Government must and shall
quit this business of relief?
We heard the gentleman from Utah quote CBO. I am quoting another well
known, much better known three-letter icon in American history, FDR,
who made it very clear, the Federal Government must and shall quit this
business of relief because the lessons of history make clear that to
administer it is to administer a narcotic, a subtle destroyer of the
human spirit.
I rise in opposition to this amendment and in support of the
underlying bill. The reason that I do is because there is a fundamental
difference that I want to highlight. It is the fundamental difference
between allowing noncitizens to have access to our welfare safety net
and not. The Castle-Tanner bill makes it very clear that noncitizens
will have greater access to the welfare system; certainly, much more
access than under the underlying bill.
What happens under the welfare reform bill that we are going to vote
on later today is we completely eliminate welfare benefits to
noncitizens except for emergency medical treatment and some other
exceptions for elderly people.
The fact is that we have got to, if we are going to fix the
immigration, illegal immigration problem, and even legal immigration
problem, if we are going to fix that and if we are going to have those
people coming to America because they want to be in America, because
they want to give to America, not take from America, then we have to
eliminate the welfare magnet that we have created here.
The real solution to the immigration problem lies in eliminating and
changing the way that we dole out relief, dole out welfare to anyone
who is in this country, whether legally or illegally, citizen, or
noncitizen. That is a fundamental problem.
We have a certain responsibility with respect to safety nets to
citizens of the United States of America. That responsibility does not
extend to noncitizens. If we are to, in fact, as a compassionate nation
that is able to take care of its own who are falling through the
cracks, if we are to be able to do that in a proper way, then we must
eliminate the welfare that goes to noncitizens.
Mr. TANNER. Madam Chairman, in response, I would simply say we have a
modest exemption in our plan for kids and people who are legally in
this country working and paying taxes.
Madam Chairman, I yield 2 minutes to the gentleman from Indiana [Mr.
Roemer].
Mr. ROEMER. Madam Chairman, this bill, Castle-Tanner, reflects common
sense because it is produced on common ground. How refreshing, Madam
Chairman, to see Democrats and Republicans working together and trying
to fix the welfare system that all Americans want us to fix.
I compliment the gentleman from Tennessee [Mr. Tanner] and the
gentleman from Delaware [Mr. Castle] for bringing us together, and I am
proud to be an original cosponsor of this legislation.
{time} 1445
This is how the system is supposed to work.
Now, why will this bill work? Welfare reform will create work, it
makes people work because it gives people work because it gives people
the skills to work.
This bill protects children with child care, it protects children
with foster care, and it cares about making sure that people work. Way
too many people get on to welfare and then too quickly go off to
welfare and come right back on again. Figures indicate that it might be
from 50 from 60 percent of people are on welfare for a year and then
get off and then come back on. We want to make sure we put a bill
together to keep them off of welfare.
[[Page H7981]]
This bill puts $3 billion extra into the worker training programs. It
provides the States with the needed flexibility so that Indiana can do
some things differently from California in order to do and make people
work. It also saves, Madam Chairman, $53 billion for the taxpayer.
So it puts people to work, and it still saves money.
Finally, in our State, in Indiana, the worker training programs are
working if we put money into them and they are getting people off of
welfare. We have had an impact program in Indiana which as seen a job
placement increase of 162 percent and a 26 percent decrease in AFDC
caseloads.
So I would encourage our Members to vote for a bipartisan bill that
puts people to work and gives them the skills to work.
Mr. SHAW. Madam Chairman, I yield 1\1/2\ minutes to the gentlewoman
from Washington [Ms. Dunn], a Member of the Committee on Ways and
Means.
Ms. DUNN of Washington. Madam Chairman, I commend all the people who
have been active in this debate on welfare. It has been a tough long
haul. We have produced two very good bills, sent them to the President.
He has vetoed both of them. We are working now to put together a bill
that he will sign, and I certainly understand and appreciate the
concern and the compassion of all the folks who have been involved.
I like this alternative bill, but I simply believe that our original
welfare bill is far better balanced and has looked at every issue with
a better eye. There are three areas where I am a bit concerned, Madam
Chairman, about the lay of the land on the substitute bill.
First of all, it reduces earned income tax credit payments to low-
income families by over $3 billion over our original bill. I am
concerned about that. I think that we have been far more careful in
revising the EITC and that this cuts it too much for working families.
Second, this substitute continues welfare after 5 years. There needs
to be an end to welfare. Sixty months is enough in most cases, and as
we continue food stamps and as we continue Medicaid, I believe 5 years
is enough and that the voucher system is not a good part of the
substitute bill.
Last, this substitute provides about $12 billion in extra welfare for
noncitizens.
Madam Chairman, Americans are generous people. We have opened our
arms to people from all over the world as long as they come to this
Nation realizing it is a Nation of opportunity, not a Nation where we
lean on the Government. We have in our original bill tightened the
sponsor agreements. I believe that it is very, very bad to provide
welfare to able-bodied noncitizens. I urge a vote against this
substitute.
Mr. TANNER. Madam Chairman, I yield myself such time as I may
consume.
Madam Chairman, I would simply say that insofar as the EITC matter is
concerned, once again we make no substantive change in the law. What we
do is have savings scored because of compliance with the law.
Madam Chairman, I yield 1 minute to the gentleman from Alabama [Mr.
Cramer].
Mr. CRAMER. Madam Chairman, I thank my colleague from Tennessee for
yielding this time to me, and I rise in strong support of the Tanner-
Castle substitute here today, and I want to congratulate my colleague,
the gentleman from Tennessee [Mr. Tanner] as well as the entire
Conservative Democratic Coalition, the Blue Dogs, as we are fondly
known.
We have worked long and hard to make sure that we had an opportunity
to get to this day when we could engage in some effective give and
take, some effective dialog of this issue to make sure that we had the
opportunity to see that the American people have this chance to see
this worn-out, burned-out welfare system redesigned.
Now, this is not an easy thing to do, and I think that is why my
colleagues need to pay attention. The Tanner-Castle substitute is the
better way to go. When we look at the bottom line of what we are about
to do, we need to do what is effective, not just window dress this
issue. I am concerned about the States, where the States are coming
from and what they will be able to do effectively when we pass part of
this burden, a significant part of this burden, on to the States, and I
think the Tanner-Castle is the reasonable approach to take.
Mr. SHAW. Madam Chairman, I yield 30 seconds to the gentleman from
Tennessee [Mr. Tanner] to find out how he saves $6 billion on EITC
without affecting any benefits.
I mean I have been debating this as a straightforward bill, but I am
wondering how in the world he saves that without affecting the
benefits.
Mr. TANNER. Madam Chairman, I am advised that we made no substantive
changes, that we get scoring for that savings because we cut out waste,
fraud and abuse and maintained compliance. for example, if one has a
trust fund income of $50,000 and has a job that pays 12, one would not
be able to claim the EITC because they have a $12,000 income because we
count the $50,000 unearned that they received from a trust fund.
So, as we score that, we are entitled to savings, and they have been
so stated.
Mr. SHAW. Madam Chairman, I would simply say to the gentleman that
those same provisions are in our bill, and we certainly do not save any
$6 billion.
Madam Chairman, I yield to the 1\1/2\ minutes to the gentleman from
Missouri [Mr. Talent].
Mr. TALENT. Madam Chairman, I thank the gentleman for yielding this
time to me.
Madam Chairman, I have 1\1/2\ minutes; let me get right to the point.
I appreciate very much the tone of the debate to this point, but I
think the reason we ought to oppose the Democratic substitute is that
it is much weaker on work than the underlying bill. It is better than
the ones they have offered in the past, but it is much weaker on work.
In fact, that is one of the things trumpeted as a virtue of it. We have
heard that the Governors like that bill. Of course, they like that
bill. They do not have to do very much under that bill, particularly in
the earlier years. That is what they want, freedom and more money and
not to have to do very much, particularly with regard to work
requirements, and that is what the Democratic substitute does.
First, on face value, in terms of the face work participation
requirements, the main bill is stronger than the substitute. But we
have to look beyond face value when we look at work requirements.
Madam Chairman, at any given time, if we take a snapshot of the
welfare caseload at any given time, there are people coming on and
people going off. Naturally, without doing anything, people are leaving
the welfare caseload, but others are coming on, and historically it has
been growing, and we have been paying more and more money. The
substitute would count people who leave naturally from the caseload
towards meeting the work participation requirements. That is like a 10-
percent bonus every year. What it would mean is that in order to meet
the work requirements in the first year the Governors would have to do
very little. They have to get another 4 percent of the caseload
working.
That is the reason that they like it.
What we have heard basically is that this bill has to be reasonable,
it has to be effective. Of course, it has to be effective. This system
is terrible. Why are we arguing that we should be moderate in
approaching it? If we are going to get substantial change, we have to
have a bill that achieves substantial change and enforces that in the
States. Vote for the main bill and vote against the substitute measure.
Mr. TANNER. Madam Chairman, I yield a minute and a half to the
gentlewoman from Florida [Mrs. Thurman].
Mrs. THURMAN. Madam Chairman, I too would like to take this time to
congratulate the gentleman from Tennessee [Mr. Tanner] and the
gentleman from Delaware [Mr. Castle] and, I might add, Mr. Castle,
being a former Governor, I think lends some respectability to the
issues that we are speaking about today.
I, too, am an original cosponsor of the Castle-Tanner because I think
it does give us real reform and real responsibility. We demand
responsibility not only from welfare recipients, but from the Federal
Government and the States who are our partners in this system. We
require work and hold beneficiaries responsible for their actions,
[[Page H7982]]
but we do not make these demands and then not live up to our end of the
bargain.
Our commitment requires adequate funding levels for the work
requirements in the bill. Castle-Tanner meets this need. The majority
bill does not.
Our commitment requires that we have a plan in the event of a
national or regional rescission. We have seen that in this country.
Castle-Tanner has a real contingency fund to meet this need. The
majority bill has an underfunded contingency fund with unrealistic
limits on a State's access to the fund.
In the Castle-Tanner we are more realistic. If there is no job, one
cannot lose something as basic as food stamps.
We also provide better protections for children. Children must not be
made to suffer for their parents' action. We allow vouchers so that
families who reach that time limit on welfare can still care for the
very basic needs of their children. The majority's bill prohibits the
use of Federal funds to help children once their families have met the
time limit.
These are both tough bills and reform bills. We are just as strict on
fraud and abuse as the majority's bill. But the fact is the Castle-
Tanner treats people fairly withholding them, and we save $53 billion
as well.
Mr. TANNER. Madam Chairman, I yield 3 minutes to the gentleman from
Michigan [Mr. Levin].
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Madam Chairman, let me respond briefly to a couple of
points. First of all, on time limits.
The time limits remain in Tanner-Castle. There are exceptions in both
bills. They have a 20-percent exemption allowed to the States. Castle-
Tanner has a similar provision. The question is whether the States
should have the flexibility to use Federal funds for vouchers for kids
because of the time limit. They say ``no.'' They say they are for
flexibility, but if the States want to use Federal funds not for cash
benefits but to help kids, they say ``no.'' Castle-Tanner is much
better in that respect.
EITC, I want to reiterate, we do not touch the rates. They tried to
in their original bill. We scared them off it. We do not change the
basic EITC. We get savings through compliance efforts, basically
leaving the structure as it is, and it is so ironic they would come
here after trying to take 15, 20 billion from EITC, from working
families, and all of a sudden they are defending them.
Mr. SHAW. Madam Chairman, will the gentleman yield?
Mr. LEVIN. I yield to the gentleman from Florida.
Mr. SHAW. I mean the gentleman has been asking us to work with him in
a bipartisan way, we come toward his position, and he says they scared
us off of it. Come on. Let us lighten up.
Mr. LEVIN. All right, look. They agreed with us finally. All right,
they can call it what they want. We hit them hard, and they finally
said ``OK,'' as they did on a lot of other things where they were weak
on work and hard on kids. They have moved our way. They simply have to
come further.
Now I want to talk about States getting people off welfare into work,
which is so critical. CBO says, ``You do not have money to help States
get people off welfare to work.'' That is the key.
Now they say there is an authorization now. They have given this to
the gentleman from Delaware [Mr. Castle]. The rumors are they will take
it back in a conference. I hope those rumors are wrong. But I do not
care, because it is only an authorization.
What Tanner-Castle says is we are serious about welfare to work. We
are tough on that and we are going to provide the States the moneys to
do it. They provide zero, and CBO says they are between $9 and $12
billion short.
If my colleagues want a bill that is tough on work, getting people
off welfare to work, and does not hurt kids, Castle-Tanner is much
closer to the mark, and they are further away. Vote for the Tanner-
Castle bill. Vote for it, and then against the Republican bill. I hope
the Tanner-Castle bill will pass. It is the only bipartisan effort so
far. We need to keep that bipartisan spirit going.
Vote for it.
{time} 1500
Mr. SHAW. Madam Chairman, I yield 3 minutes to the gentleman from
Connecticut [Mr. Franks], a distinguished member of the Committee on
Commerce.
Mr. FRANKS of Connecticut. Madam Chairman, I thank the gentleman for
yielding time to me.
Madam Chairman, as we argue and continue to delay the passage of real
welfare reform, more families are getting trapped or continue to be
trapped in a system that, to me, is like the slavery system we had
years ago. It is the 20th century version of slavery. We, the
Government, will provide food and shelter but little hope of real
change.
There are differences, however. Slaves were black. Most welfare
recipients are white. Slaves worked but were not paid. Welfare
recipients do not work but they are paid. The Republican bill will take
a major step removing the shackles of Government dependency.
As we have argued and delayed passage of welfare reform over the
years, more fathers have not been getting identified so they can be
forced to take care of their own children. The growth of the single-
parent household in the black community will hit 80 percent and in the
white community 40 percent by the year 2000 if we continue to do
nothing.
Compassion. It has been proven that these youngsters are more likely
to get lower grades, more likely to be involved in crime, and more
likely to fall victim of our welfare state. Compassion will be
demonstrated when we change this slide downward.
As we have argued and delayed passage of welfare reform over the
years, more young ladies have been getting more money for having more
babies. How wrong.
As we have argued and delayed passage of welfare reform over the
years, more drugs have been bought with taxpayers' dollars. Studies
have shown that 25 percent of welfare recipients are drug abusers. So
where are they getting the money? They are getting the money from you,
the taxpayer.
The Republican bill will encourage the adoption of a debit card
electronic benefits transfer system and will move us towards
eliminating cash in our current welfare system.
Madam Chairman, it is like Nero during the Roman Empire. We fiddle
while our welfare state continues to destroy lives. In 1992 Mr. Clinton
promised that he would end welfare as we know it, and he has failed to
do so. The President has vetoed two bills. He has failed to present his
own bill, and he expressed support for the Wisconsin bill and a Senate
bill, but failed to sign on to either one of them. The record of the
Democratic-controlled Congress would be no better. In my first 4 years
in Congress we never even voted on a welfare reform bill.
Madam Chairman, it took Abraham Lincoln, a Republican, to end
slavery. I am becoming more and more convinced that it will take a
Republican-controlled Congress and a Republican President to end
welfare as we know it. I strongly support the Republican plan and I
would strongly suggest opposition to the substitute.
Mr. TANNER. Madam Chairman, I yield myself such time as I may
consume.
Madam Chairman, I thank the gentleman for his previous remarks, and
would point out that our bill contains the electronic transfer
provisions as well.
Madam Chairman, I yield 4 minutes to the gentleman from Texas [Mr.
Stenholm].
(Mr. STENHOLM asked and was given permission to revise and extend his
remarks.)
Mr. STENHOLM. Madam Chairman, let me first begin by commending my
colleagues, the gentleman from Tennessee [Mr. Tanner] and the gentleman
from Delaware [Mr. Castle], for the tireless work they have put in on
this issue, and also to my colleague, the gentleman from Florida [Mr.
Shaw], for his very constructive handling of this bill. With the lone
exception of the rhetoric on EITC, I have appreciated the gentleman's
approach and attitude toward the development on this issue.
To set the record straight one more time, I simply want to reiterate
that Castle-Tanner ensures that scarce EITC dollars go to the working
poor
[[Page H7983]]
who need it, not to the individuals with substantial business income
who do not need it. And I suspect the gentleman from Florida [Mr. Shaw]
would like to see the same provision in his bill today.
Also, I do not see my friend and colleague, the chairman of the House
Committee on Agriculture on the floor, but I find it very, very
interesting that he would be complaining about the fact that our bill
attempts to maintain indexation of housing benefits for the very poor,
those who have to spend over 50 percent of their income for housing;
and at the same time the majority will have next week on the floor a
bill dealing with campaign reform in which they will say indexation of
those who would contribute to us is OK but those who would index those
of the very poorest among us is bad. I find it very, very interesting.
Madam Chairman, I want to take a couple of minutes and try to make it
as plain and simple why I support Castle-Tanner versus the base bill. I
want to do it in a way that is perfectly understandable.
First is the matter of political practicality. I am weary of
political posturing, and we have heard it from a few today over and
over, language that is intended more for campaign platforms than for
realistic problem-solving. The Castle-Tanner proposal was developed to
try to break that partisan stalemate on this issue and reach a
consensus on welfare reform that can be signed into law. Our proposal
is a true compromise, as evidenced by the fact 26 Democrats and 16
Republicans have cosponsored the legislation.
The principles and policies of this substitute can be supported by
both parties in both bodies of Congress. The bill can be signed into
law by the President. The base bill cannot.
Second is the matter of unfunded mandates. One of the first pieces of
legislation passed by the 104th Congress was a resolution ensuring that
the Federal Government pay the cost incurred by State and local
governments in complying with Federal statutes and regulations.
The work mandate placed on the States in the base bill is not matched
by financial support necessary to meet the mandate. CBO says so, the
National Governors Association says so, and in addition to the unfunded
work mandate, there is also an unfunded mandate on health care
providers that will result from Medicaid changes for current welfare
recipients.
So, $7 billion in Medicaid will no longer be available for those
recipients, and yet health care providers in our States will still be
morally if not legally obligated to provide care for these people.
Castle-Tanner does not have unfunded mandates. The base bill does, as
ascertained by CBO.
Third is the matter of how our Nation treats its children. Tanner-
Castle is much stronger than the Republican bill in protecting
children, all children. This substitute requires States to provide
vouchers for the needs of the child for families removed from welfare
rolls as a result of a time limit of less than 5 years, and gives
States the option of providing vouchers for families cut off as a
result of the 5-year time limit. The base bill explicitly prohibits
States from using block grant funds to protect innocent children from
being harmed because of the mistakes of their parents.
Madam Chairman, I urge my colleagues to vote for the bipartisan,
bicameral, commonsense, achievable, enforceable Castle-Tanner
substitute, and against the final passage of the base bill in its
current form.
Mr. SHAW. Madam Chairman, I yield 3 minutes to the gentleman from
Louisiana [Mr. McCrery], a most valuable member of the Committee on
Ways and Means who was very instrumental in crafting the bill before
us.
Mr. McCRERY. Madam Chairman, I have a lot of things to talk about.
First of all, the issue of unfunded mandates. I have in my hand here
a letter from the CBO that my dear friend, the gentleman from Texas,
kept referring to, in which the CBO states clearly:
The work requirements contained in the portion of H.R. 3734
titled ``Temporary Assistance for Needy Families'' do not
constitute an intergovernmental mandate, as defined under the
Unfunded Mandates Reform Act of 1995.
So I hope that will put that to rest once and for all.
The issue of earned income tax credit. We received not too long ago a
letter from the President in which he said, in listing his objections
to our bill, the underlying bill on the floor today, the bill would
still raise taxes on millions of working families by cutting the earned
income tax credit.
Madam Chairman, in trying to satisfy the objections of the President,
we took that out of our bill. We do not raise taxes any more, using the
President's terminology, on working families by cutting the EITC, but
the substitute we are about to vote on does. It does. They do lower the
threshold for disqualified income under the EITC in their substitute.
They do add additional sources of income to disqualified income under
the EITC. Also, they add additional income to the definition of
adjusted gross income, which affects the level of the EITC.
So we can talk around it all we want, but the fact is the substitute
on the floor cuts the EITC by $3 billion in real money to real people.
Do not get me wrong, I agree with the cuts. I think they are good.
Madam Chairman, I think it is good, our EITC changes. I wish we had
more of them. We took them out, trying to satisfy the objections of
Democrats and the President. Members ought not to say they do not have
those cuts in there, because they do.
I think the Castle-Tanner substitute is a good bill. It is far
superior to the present welfare system. The base bill, though, is a
little better, so I hope people will vote against the substitute and
for the underlying bill.
Medicaid, I heard my good friend, the gentleman from Delaware [Mr.
Castle], talking about how the substitute is better on Medicaid. Again,
we have made a change in our bill to satisfy the gentleman from
Delaware [Mr. Castle] and the President. Our provision is exactly the
same as the Castle-Tanner substitute, maintenance of effort. They have
85 percent, we have 80 percent. My goodness, an 80 percent maintenance
of effort requirement is a tough requirement.
Vouchers. Our bill provides for a 20-percent hardship exemption at
the option of the States. Twenty percent of their entire caseload can
be exempted from the 5-year time limit. That is a very generous
exemption. You do not need vouchers and you ought not to have them. You
ought to have a strict time limit with an exemption for hardship cases.
That is what we do in this bill.
Food stamps, there are very strict requirements in the base bill for
block grants. CBO estimates very few States will qualify.
Mr. TANNER. Madam Chairman, I would state again for the record, we do
not do anything with the EITC substantively.
Madam Chairman, I yield 2 minutes to the gentleman from California
[Mr. Fazio].
Mr. FAZIO of California. Madam Chairman, we have heard a lot of talk
about work requirements and where they really exist and where they are
merely a sham. I argue that the Castle-Tanner bill really does the job
of providing the States with the necessary funding to put welfare
recipients to work.
The Republican leadership bill, as drafted, falls $12.9 billion short
of the funding necessary to put people to work. The CBO, which is
headed by a person appointed by the Republican leadership, has done a
study. I refer Members to this chart, because CBO confirms that work
requirements under this bill, the Republican leadership bill, are empty
promises.
CBO concludes that most States would fail to meet the work
requirements. They assume most States would simply accept penalties
rather than implement the work requirements. In other words, the
Republican bill places such a tremendous unfunded mandate on States
that they would not even try to comply with the requirements to put
welfare recipients to work.
Castle-Tanner provides States with the flexibility to design work
programs that are appropriate for their local communities. In fact, the
Republican leadership bill rejects the recommendations of the National
Governors Association for State flexibility. This is an organization
made up, obviously, of many, many Republican Governors, a majority of
them. The NGA unanimously adopted a resolution stating:
[[Page H7984]]
``We are concerned that the Republican leadership bill restricts State
flexibility and will create additional unfunded costs.''
So unless the States are given the flexibility to design work
programs and given the resources to implement those programs, as the
Tanner-Castle bill does, rhetoric about tough work requirements is
either an empty promise, as CBO would maintain, or the greatest
unfunded mandate in history; this, of course, in the Congress of
devolution.
So really, who has the sham work requirement? It is obviously the
Republican leadership bill. The bipartisan Castle-Tanner bill is the
only one that really puts people to work.
Mr. TANNER. Madam Chairman, I yield 1\1/2\ minutes to the gentlewoman
from California [Ms. Harman].
(Ms. HARMAN asked and was given permission to revise and extend her
remarks.)
Ms. HARMAN. Madam Chairman, I commend the gentleman for his
leadership in this important subject.
Madam Chairman, the Castle-Tanner bipartisan welfare reform bill is
smart, fair, and comprehensive. It gives States both flexibility and
the resources necessary for welfare-to-work programs, even in times of
economic downturns. It is also fair to children whose parents are
denied cash benefits. I urge my colleagues in the strongest terms to
support it.
But if the House will not endorse this plan, in my view we cannot
delay any longer enacting welfare reform. I have twice before voted
against proposals which went too far and hurt children. I have many
concerns about the underlying welfare reform plan. I would like to see
Congress increase resources for moving people into the work force, less
dramatic cuts in the eligibility of legal immigrants for some programs,
and vouchers for children whose parents are ineligible for cash
benefits.
But the underlying bill includes significant improvements over the
bills the President vetoed. It provides an additional $4 billion for
child care, removes the earlier bill's spending caps on food stamps,
and increases the minimum required spending by States to 80 percent of
fiscal 1994 levels.
{time} 1515
I also believe the Senate will continue to improve the bill.
Madam Chairman, we must act now to move welfare reform forward. I
urge my colleagues to vote for the Castle-Tanner amendment and to
support final passage of welfare reform today.
Mr. TANNER. Madam Chairman, I yield myself the balance of my time.
Madam Chairman, I want to thank again, as I said at the outset, the
cosponsors of this legislation. Particularly it has been a pleasure
working with the gentleman from Delaware [Mr. Castle] and his staff in
trying to put together a truly bipartisan approach to what is an
American crisis and will require an American solution. The American
solution to me means a bipartisan solution, one that both sides maybe
cannot embrace in total but can accept.
That is really what we have tried to do, because we are honestly,
sincerely, and for no other purpose, interested in changing and
reforming a broken system. Everyone has spoken to that today, and that
is the sole purpose for the countless hours that we have worked on this
and brought it to this point.
We have tried to sail a partisan ship through this place twice this
year, and it has not worked. What happens when we do that? We all fail;
the White House fails, the Congress fails. It does not matter whether
one is Democrat or Republican. We fail to deliver welfare reform to the
American people when we insist on sailing this partisan ship through
the Halls of this Congress.
Our bill does not do that. We have got 42 cosponsors, 26 Democrats
and 16 Republicans. Our premise started when we sailed that ship of
partisanship through here, and it became obvious to us that the
Republican leadership and the White House had a gap. They were apart.
So we got together and said, ``Let's see what we can do to bridge the
gap.''
Our substitute is much like the base bill as the gentleman from
Delaware [Mr. Castle] said in his opening remarks. We impose time
limits on welfare. We change the system. We require personal
responsibility. We have tough work requirements. No one can say that we
do not. We have provisions to combat illegitimacy, and two-parent
families we encourage. We have tough child support measures and so on.
It is clear to anyone, I think, to be fair, who reads these measures
that both of them dramatically reform the current system and end,
hopefully, this destructive cycle of generational dependency.
So why should a Member vote for Castle-Tanner over the base bill?
First of all, one of the speakers, I think the gentleman from Texas
[Mr. Stenholm] said, we have a chance to pass and actually enact law,
if we do, one that is close to the Republican bill in many respects but
is better for kids.
We can pass this and actually make a law this year. We do not have to
wait until next year. The President mentioned it in his radio address
last Saturday morning. He has moved and said he would move to something
like Castle-Tanner.
Second, we do a better job, we think, in providing the necessary
structure, or infrastructure, to actually put people to work. That is
the whole purpose of this bill, getting people off welfare, some say
off the dole, into meaningful jobs, so that they will be role models
for their kids and so on.
We are better, we think, on the State-Federal partnership theory.
That really is what any social program like this ought to be under our
system of government. We provide and we are better on the economic and
necessary responsiveness to a downturn. And then, finally, it has been
alluded to many times, we are really better for the kids.
I do not know anyone who is the most fervent supporter for welfare
reform that thinks that treating a 4-year-old child like they are a 34-
year-old person who will not work is a good idea. If we read the
Republican underlying bill, that is what is happening. I hope Members
will support this amendment.
Mr. SHAW. Madam Chairman, I yield myself the balance of my time.
The CHAIRMAN. The gentleman from Florida [Mr. Shaw] is recognized for
6 minutes.
Mr. SHAW. Madam Chairman, I want to join my other colleagues in
congratulating the chairman for the way that she has presided over this
body today. She has brought us great dignity.
I would like to also speak to the gentleman from Tennessee [Mr.
Tanner], my good friend, who I think has done a wonderful job. I think
it is incredible that the name Mike Castle, as a Republican Member, a
most distinguished Republican Member, appears first on a bill that is
being offered as a substitute by the gentleman from Missouri [Mr.
Gephardt]. My goodness, what in the world is this Chamber coming to?
But I think there are a few things we need to correct here. These are
some of the characteristics that have been and some of the charges that
have been laid toward H.R. 3734, the base bill that we are going to
vote on this afternoon.
We hear speaker, after speaker who has gotten up and said how it is
weak on work. For goodness sake, one of the last speakers gets down
with a poster that says we are weak on work. Which is it, are we too
weak on work or too strong on work? They say that the work requirements
are not even obtainable. Come on, we cannot have it both ways.
At the request of the gentleman from Delaware [Mr. Castle], we also
put in our bill, because he is concerned about, as a former Governor,
whether or not the States are going to be able to meet these
requirements. We provide that the States are going to report back to
the Ways and Means and the Finance Committee in 3 years to take another
look at these work standards to be sure that we have not made them too
strong. That has been the concern that has been voiced here.
Let us put all the cliches aside, obviously the soundbite, weak on
work, hard on kids. Come on. This is not the case. You know that, I
know that. The dignity of this debate should bring us above that, and
we should be talking in specifics. When we have honest disagreements as
to what to do with noncitizens, I think we should face those. But I
think it is also important to understand that in such matters as higher
education, we allow noncitizens to continue to get Pell grants. We
allow
[[Page H7985]]
them, by the way, to sign a college loan by themselves. Castle-Tanner
provides that the sponsor has to cosign that loan. We did not require
that, because we do not consider higher education as welfare. That is
part of the American dream. This is something that we desperately want
to preserve.
I would tell my colleagues as members of this committee that, when we
talk about harder on kids, sure, we do not provide for vouchers out of
the Federal funds after 5 years. You might argue that that is hard on
kids. I do not think so. We provide, however, that the States can
provide 20 percent of the funding for their case load, of the Federal
funds, to go beyond the 5-year work level. What does that mean? It
means that, if they want to create with that 20 percent a voucher
system, they can do it.
So there is virtually no difference in the two bills when you look at
the practical application of what the States can do. But we set forth
the national policy, and the national policy is that we are for now,
and once and for all, going to time-limit the period of time someone
can be on welfare. That is going to be the national policy.
We are going to also allow the States to craft their own bills. We
are not going to continue to make welfare available to noncitizens.
That is a very big difference of opinion that we have here in this
hall, and I respect that difference of opinion.
But soon we are going to be taking a vote, I think, that is going to
be most historic. When we talk about a bipartisan approach, I sincerely
hope, and we have reached out to the Democrat side of the aisle in
bringing Members in and talking to them. The gentleman from Michigan
[Mr. Levin] has said on the floor that he made us do it. Well, whether
he made us do it or whether it is bipartisan, it happened, and it
happened with the Democrats and Republicans coming together.
We are receptive to good ideas not only from the Republican side but
from the Democrat side as well. Once the minority party is fulfilling
its responsibility of criticizing legislation that is provided by the
Republican side, they are fulfilling their requirement under the system
in which we work. When we listen to you, we are working in a bipartisan
way. We are not getting bullied into any position.
One thing I want to answer, too, that the gentleman from Michigan
[Mr. Levin] said, talked about all the rumors that are around about how
we are going to cut this and that out of the bill. I can say the rumors
are starting from my colleague's side; they are not starting on our
side. I do not intend to take any of those provisions out that my
colleague has talked about as being rumored to come out in conference.
I would hope that the other body would move swiftly and pass this bill,
that we could conference it and get it to the President's desk.
I would also hope on final passage that many of the Democrats who
feel strongly about welfare reform, as I do, and as the Republicans do
and as the President has stated, that my colleague will join us and
show support of welfare reform coming out of this body so that, when we
put something on the President's desk, we can truly say this is a
bipartisan effort, this has bipartisan support, because we have worked
with many of you on the Democrat side.
My colleagues have had input into this bill. I would now earnestly
ask them after the substitute, support H.R. 3734.
Mrs. MALONEY. Madam Chairman, the American people do not want to hurt
kids.
The Republican bill is so removed from reality. It punishes children,
penalties working families, and denies benefits to virtually all legal
immigrant children.
The bill would worsen poverty and hunger for 9 million innocent
children by making deep cuts in benefits, especially during economic
downturns by limiting the contingency fund to only $2 billion.
The Castle-Tanner substitute has an uncapped contingency fund for use
during these troubling times.
Working families, who play by the rules, will see their food stamp
benefits cuts by as much as 19 percent.
When you completely eliminate the Federal guarantee, those of us who
work in State and city legislatures know that, given the financial
pressures, poor people often fall through the cracks.
The Castle-Tanner bill provides State vouchers for needed support for
families.
But the Republican bill we're considering today would make a bad
system much worse by allowing only State funds.
This Republican bill just tells defenseless children, tough luck.
This bill won't put people to work. According to the CBO, the bill is
$10 billion short of what they need to carry out their work program.
It will put families with children out on the street.
That's not welfare reform.
It's a blueprint for disaster.
Say yes to welfare reform Castle-Tanner.
Say no to this cruel and senseless bill.
Mrs. LINCOLN. Madam Chairman, today is a landmark day in
congressional history. Today we will pass needed welfare reform that
will hopefully move our Nation's low-income citizens from passively
accepting a welfare check to actively earning a paycheck.
Most of my colleagues in this Chamber would agree with me that the
current welfare system needs to be changed. No one should get something
for nothing, and if the American people are going to be generous with
their tax dollars, they should get something in return.
Madam Chairman, the bipartisan Castle-Tanner substitute, of which I
am an original cosponsor, provides responsible reform through three
main goals: personal responsibility, State flexibility, and work.
Personnel responsibility: Under our plan, all recipients must work
within 2 years of receiving benefits, and the proposal establishes a 5-
year time limit on cash assistance. Also, our plan requires teenage
mothers to stay in school and live with an adult to receive assistance,
and it establishes a family cap halting benefits for additional
children born to welfare recipients. In addition, the bipartisan
Castle-Tanner substitute holds fathers responsible for their children
through strong child support enforcement.
State flexibility: Our plan provides States with the flexibility to
design innovative welfare reform proposals within broad Federal
guidelines. States can develop successful work programs that reflect
the needs of their local communities, and States can deny cash
assistance to teenage mothers. In addition Castle-Tanner gives States
the option of providing vouchers for children or noncash emergency
assistance to families and have lost cash assistance as a result of a
time limit.
Work: Unlike the Republican proposal before us today, our substitute
provides the amount of funding that the Congressional Budget Office has
stated is necessary to fund the work programs, thereby ensuring no
unfunded mandates for our States. Our bipartisan proposal provides $4.5
billion more than the Republican measure for child care assistance to
families that leave welfare for work and need child care help in order
to remain employed and stay off the welfare rolls.
But most importantly, Madam Chairman, if my colleagues want to pass
welfare reform that has the best chance of being signed into law, then
I encourage support of the bipartisan Castle-Tanner substitute. It is
the only proposal that the President has promised to sign.
Mrs. COLLINS of Illinois. Madam Chairman, there is an old saying
``the poor will be with us always.'' And another that ``a person never
stands so tall as when he or she bends to help a child.'' When a child
is poor, that child is at greater risk of being undernourished and
undereducated. My constituents in the Seventh District of Illinois are
among the richest and the poorest of the Nation. I am told that I am
the longest serving African-American female Member in the history of
the United States House of Representatives, and as such, I have for 23
years fought strong and sometimes bitter battles for the benefit of the
vulnerable, the disenfranchised, the young, old, disabled, and poor.
That is what I hope to be remembered for when I retire from this body
at the end of the year.
So, I rise today with some reservations about the Tanner-Castle
substitute welfare reform measure which really is a compromise for me.
I do not like the idea of block granting welfare benefits, but with
sufficient Federal criteria and oversight, perhaps they can work. If
so, they will be the wave of the future.
This substitute requires States to enter into personal responsibility
plans with parents who seek to receive this public assistance. As long
as this is a two way street, spelling out what the States'
responsibilities are as well as those of the parents' it could possible
financially protect the families. The States have asked for block
grants and will be called upon to demonstrate that they can act
responsibly to all vulnerable populations in a nondiscriminatory
manner. My fear and recollection of contemporary history is that many
of them will not.
The Tanner-Castle substitute also incorporates time limits as a
widely accepted way to provide measurements toward performance for both
the family receiving public assistance and the State in providing
sufficient training, guidance and support--both personal and monetary.
A requirement of work is not unreasonable if the person has the
skills to get and perform
[[Page H7986]]
a meaningful job. Thus, with that requirement for work by the parent--
and let's get it clear about whom we're talking: this welfare reform is
for parents--the State has a comparable responsibility to provide that
parent with the tools and means to perform and succeed in a job that
pays a living wage.
I consider a living wage to include the ability to pay the family's
bills: the rent, food, clothing, transportation, medical care, and
child care. Without that ability, no parent now benefiting from AFDC
should be made to take a job when there is no means of providing health
care for a sick child, or which would provide insufficient food for
their bellies. Let's stop making parents look like the bad guys in this
debate.
A special problem has arisen because of the large number of teenage
parents who are, for the most part single, and have not completed their
education--and many will not. They, too, need to have a stable,
dependable support system. Whether that is that teen parent's
biological or substitute parent or a publicly funded shelter, should be
the decision of that child-parent.
I also believe that the Federal Government must oversee the States to
assure that those extremely vulnerable family units of ``kids having
kids'' have alternative homes that will provide the shelter and life-
skill training from which they can draw strength, skills, nurturing,
and self-esteem.
There is a provision in the substitute that I strongly object to. It
ties an arbitrary abortion rate within a State to an illegitimacy rate
for which a State may receive additional bonus funding. I will monitor
this provision as legislation progresses through Congress to assure the
States fair and honest availability to receive performance bonuses when
they develop successful programs to reduce their out-of-wedlock births.
States that currently have waivers of various measures would have the
option to continue under those options until the expiration of those
waivers.
The Tanner-Castle substitute does have a strong child support
enforcement provision. As long as those provisions are implemented
universally and non-discriminatorily nationwide, it may succeed in
providing those vulnerable single parents a valuable additional
resource. I wholeheartedly agree that parents should be responsible for
their children, but when short duration public assistance is needed,
they are entitled by our God almighty, to a decent life.
On the issue of Medicaid eligibility, until and unless Congress can
achieve meaningful health care reform to provide for universal access
to health care financing, there must be Medicaid eligibility for the
unemployed, uninsured families who receive public assistance. Tanner-
Castle retains current law for child protection funding, guidelines,
and requirements. Child protection is what this welfare reform is
really supposed to be all about. It is protecting the vulnerable
children of our Nation against poverty and despair, against hunger and
sickness, and against fear and helplessness. I think that for the most
part, the Tanner-Castle substitute attempts to do that.
Mr. POSHARD. Madam Chairman, I rise today in strong support of the
Castle-Tanner Welfare Reform Act, a tough, balanced welfare reform
proposal that moves able welfare recipients to work and protects
children. I am a cosponsor of this reform bill because I believe it
provides States and our local communities with the resources, support,
and flexibility they need to successfully move welfare recipients into
the work force.
The Castle-Tanner Welfare Act requires all welfare recipients to
begin work within 2 years of receiving assistance and imposes a 5-year
time limit on cash assistance. However, the plan also gives States the
option of providing continued assistance to children and non-cash
emergency assistance to families that have lost cash assistance as a
result of a time limitation.
The bill further requires that minor mothers must stay in school and
live with an adult in order to receive assistance, and stops additional
benefits for additional children born to individuals on welfare. In
addition, the Castle-Tanner plan rewards States that are able to reduce
illegitimacy without increasing the abortion rate. The bill also holds
fathers responsible for their children through strong child support
enforcement.
The Congressional Budget Office [CBO] estimated that the Republican
welfare reform proposal, which we are also considering today, would
fall nearly $13 billion below the funding level necessary to meet the
work requirements outlined in the Republican bill, and $800 million
short of the necessary funds to providing child care assistance to
individuals who are required to work.
The Castle-Tanner plan ensures that States would be able to meet the
work requirements in the bill by providing $3 billion, over the
Republican plan, in additional mandatory funds they can access in order
to meet the costs of moving welfare recipients to work. In addition,
this plan gives more flexibility to States in meeting the bill's work
requirements. The Castle-Tanner plan gives States the opportunity and
the resources to meet the goals all of us support.
CBO has estimated the Castle-Tanner plan contains enough mandatory
funding to provide child care assistance to all welfare recipients who
need such assistance in order to comply with the work requirements in
the bill. The additional funds contained in this plan for transitional
and at-risk child care will give States an important tool in preventing
individuals from returning to welfare.
I am also concerned with the fact that the Republican welfare measure
would cut food stamp funding by $23 billion or 19 percent by converting
the program into a block grant. Instead, the Castle-Tanner plan
maintains the national food stamp program as we know it without
allowing an optional block grant that would freeze funding for food for
children and families.
Madam Chairman, I agree it is time to reform the current welfare
system, but let us do it in a manner that reflects the values of this
country. Let us reform the system to encourage men and women who have
come to rely on welfare to return to work. We must also insure that the
children of those on welfare are not punished in the process of
reforming this system. I believe the Castle-Tanner Welfare Reform Act
meets these goals, and I urge my colleagues on both sides of the aisle
to support this reasonable, but effective reform measure.
Mrs. MORELLA. Madam Chairman, I rise in strong support of the Castle-
Tanner bipartisan welfare reform substitute that will dramatically
overhaul our welfare system. This substitute is based on the welfare
bill that we crafted earlier this year to improve upon the Governors'
plan.
I support bold welfare reform that moves recipients from welfare to
work and encourages personal responsibility. This substitute does that,
allowing States to try new approaches that meet the needs of their
recipients. States are already experimenting with welfare reform. Over
40 waivers have been given to States by the Department of Health and
Human Services, and the results are encouraging. It is clear that we
must dramatically change our system to give women and children hope and
opportunities to build a better future. This substitute does that. In
giving leeway and dollars to States, however, we must ensure that we
protect children and the disabled by adopting Castle-Tanner.
This substitute requires that States invest the resources necessary
for welfare reform to succeed by establishing an 85-percent maintenance
of effort requirement. It also ensures that States will have sufficient
funds to provide work programs to move people off welfare into work.
We know that child care funding is the cornerstone of successful
welfare reform. Without it, women cannot even go to work or job
training. This substitute improves the Governors' plan by increasing
child care funding by $4 billion and requiring States to spend 100
percent of their 1994 child care dollars before they can draw down
Federal funds. It also provides States the flexibility to permit women
with children under 6 to work 20 hours a week and maintains health and
safety standards set by States for child care providers.
This substitute protects children by requiring States to provide
vouchers for children in families removed from the welfare rolls as a
result of a time limit of less than 5 years, and gives States the
option of providing vouchers for families cut off as a result of the 5-
year time limit. It also preserves the national food stamp safety net
and does not allow food stamps to be converted into a block grant. Its
humane immigration provisions would exempt children from the food stamp
ban and exempt disabled children from the SSI ban.
I have been working with the Congressional Caucus for Women's Issues
for many years to enact child support reform that will finally crack
down on deadbeat parents by enacting penalties with real teeth and
establishing Federal registries to help track deadbeats. This
substitute contains these critical provisions.
Madam Chairman, I am pleased that H.R. 3734 contains substantial
improvements over the House-passed bill and the conference report. The
Castle-Tanner substitute, however, is our best opportunity yet to enact
welfare reform that moves people from welfare to work while protecting
children. I urge my colleagues to join me in supporting the Castle-
Tanner substitute.
Mr. CRAMER. Madam Chairman, do we want welfare reform? That is the
bottom line here today. The Castle-Tanner bill is a bipartisan bill. It
shares and improves upon the leadership's ideas on how to restructure
our welfare system that has become a burned-out, broken-down
bureaucracy.
Like the leadership's bill, Castle-Tanner creates a single cash
welfare block grant to replace the current AFDC, JOBS and Emergency
Assistance programs. It requires recipients to work within 2 years and
limits benefits
[[Page H7987]]
to 5 years. Castle-Tanner requires able-bodied individuals with no
dependents between the ages of 18 to 50 to participate in a work
program in order to receive food stamps. It requires minor mothers to
stay in school and live with an adult to receive assistance. In
addition, Castle-Tanner creates a $2 billion contingency fund for
States to meet their need in time of recession.
In this era of giving the States more responsibility, Castle-Tanner
honors the Governor's request for greater flexibility. The leadership's
bill, however, rejects the Governor's request. The National Governor's
Assoication says ``the bill greatly restricts State flexibility and
will result in increased, unfunded costs for States, while undermining
States ability to implement effective welfare reform programs. CBO
estimates the leaderhip's bill would fall $12.9 billion short of the
funding needed to meet the work requirements under their measure.
Castle-Tanner remedies this by providing States necessary help in
implementing their work programs.
I have focused much of my work in Congress on helping our children.
One of the most important additions to the leadership's bill is Castle-
Tanner's protection of our Nation's children. States must be able to
provide for the needs of children. Castle-Tanner requires vouchers for
those children whose families lose cash assistance as a result of a
State time limit less than 5 years. Castle-Tanner contains sufficient
child care assistance for mothers participating in work programs and
provides additional child care assistance for working poor families in
jeopardy of losing employment if child care assistance is not provided.
Fathers are held responsible for their children through strong child
support enforcement provisions. Unfortunately, CBO estimates the
leadership's bill would fall $800 million short of the child care funds
necessary to meet the legislation's work requirements and maintain
current levels of spending on transitional and at-risk child care.
We must permanently erase the current, broken welfare state. To do
this, we must ensure people are able to move into the workforce and
enable them to stay there. Castle-Tanner does this while at the same
time preserving the most sacred of American values--the family. The
working poor should not be required to choose between caring for their
children and the opportunity to be productive, working members of our
society.
The CHAIRMAN. All time for debate on this amendment has expired.
The question is on the amendment in the nature of a substitute
offered by the gentleman from Tennessee [Mr. Tanner].
The question was taken; and the Chairman announced that the noes
appeared to have it.
recorded vote
Mr. TANNER. Madam Chairman, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 168,
noes 258, not voting 8, as follows:
[Roll No. 329]
AYES--168
Abercrombie
Ackerman
Andrews
Baesler
Baldacci
Barcia
Barrett (WI)
Beilenson
Bentsen
Berman
Bevill
Bishop
Blumenauer
Bonior
Borski
Boucher
Brewster
Browder
Brown (CA)
Brown (FL)
Brown (OH)
Bryant (TX)
Cardin
Castle
Chapman
Clay
Clayton
Clement
Clyburn
Collins (IL)
Collins (MI)
Condit
Conyers
Costello
Cramer
Danner
Davis
DeFazio
DeLauro
Deutsch
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Durbin
Edwards
Eshoo
Evans
Farr
Fattah
Fazio
Flake
Foglietta
Ford
Fox
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Geren
Gibbons
Gilman
Gordon
Green (TX)
Greenwood
Hall (OH)
Hall (TX)
Hamilton
Harman
Hastings (FL)
Hefner
Hinchey
Holden
Hoyer
Jackson-Lee (TX)
Jacobs
Johnson (SD)
Johnson, E. B.
Johnston
Kanjorski
Kaptur
Kennedy (MA)
Kennelly
Kildee
Kleczka
Klink
LaFalce
Lantos
Levin
Lewis (GA)
Lipinski
Lowey
Luther
Maloney
Manton
Markey
Mascara
Matsui
McCarthy
McDermott
McHale
McKinney
McNulty
Meehan
Meek
Millender-McDonald
Minge
Moakley
Mollohan
Montgomery
Moran
Morella
Murtha
Neal
Oberstar
Obey
Olver
Orton
Pallone
Payne (VA)
Pelosi
Peterson (FL)
Peterson (MN)
Pickett
Pomeroy
Poshard
Rangel
Reed
Rivers
Roemer
Rose
Roukema
Sabo
Sawyer
Schroeder
Schumer
Scott
Sisisky
Skaggs
Skelton
Slaughter
Spratt
Stenholm
Studds
Stupak
Tanner
Taylor (MS)
Thornton
Thurman
Torkildsen
Torricelli
Traficant
Vento
Visclosky
Volkmer
Ward
Watt (NC)
Waxman
Weldon (PA)
Williams
Wilson
Wise
Woolsey
Wynn
Yates
NOES--258
Allard
Archer
Armey
Bachus
Baker (CA)
Baker (LA)
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Becerra
Bereuter
Bilbray
Bilirakis
Bliley
Blute
Boehlert
Boehner
Bonilla
Bono
Brownback
Bryant (TN)
Bunn
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Coleman
Collins (GA)
Combest
Cooley
Cox
Coyne
Crane
Crapo
Cremeans
Cubin
Cummings
Cunningham
Deal
DeLay
Dellums
Diaz-Balart
Dickey
Doolittle
Dornan
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Engel
English
Ensign
Everett
Ewing
Fawell
Fields (LA)
Fields (TX)
Filner
Flanagan
Foley
Fowler
Franks (CT)
Franks (NJ)
Frelinghuysen
Frisa
Funderburk
Gallegly
Ganske
Gekas
Gilchrest
Gillmor
Gingrich
Gonzalez
Goodlatte
Goodling
Goss
Graham
Greene (UT)
Gunderson
Gutierrez
Gutknecht
Hancock
Hansen
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Heineman
Herger
Hilleary
Hilliard
Hobson
Hoekstra
Hoke
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Jackson (IL)
Jefferson
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kennedy (RI)
Kim
King
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Laughlin
Lazio
Leach
Lewis (CA)
Lewis (KY)
Lightfoot
Linder
Livingston
LoBiondo
Lofgren
Longley
Lucas
Manzullo
Martinez
Martini
McCollum
McCrery
McHugh
McInnis
McIntosh
McKeon
Menendez
Metcalf
Meyers
Mica
Miller (FL)
Mink
Molinari
Moorhead
Myers
Myrick
Nadler
Nethercutt
Neumann
Ney
Norwood
Nussle
Ortiz
Owens
Oxley
Parker
Pastor
Paxon
Payne (NJ)
Petri
Pombo
Porter
Portman
Pryce
Quillen
Quinn
Radanovich
Rahall
Ramstad
Regula
Richardson
Riggs
Roberts
Rogers
Rohrabacher
Ros-Lehtinen
Roth
Roybal-Allard
Royce
Rush
Salmon
Sanders
Sanford
Saxton
Scarborough
Schaefer
Seastrand
Sensenbrenner
Serrano
Shadegg
Shaw
Shays
Shuster
Skeen
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Stark
Stearns
Stockman
Stokes
Stump
Talent
Tate
Tauzin
Taylor (NC)
Tejeda
Thomas
Thompson
Thornberry
Tiahrt
Torres
Towns
Upton
Velazquez
Vucanovich
Walker
Walsh
Wamp
Waters
Watts (OK)
Weldon (FL)
Weller
White
Whitfield
Wicker
Wolf
Young (AK)
Zeliff
Zimmer
NOT VOTING--8
de la Garza
Forbes
Lincoln
McDade
Miller (CA)
Packard
Schiff
Young (FL)
{time} 1545
The Clerk announced the following pairs:
On this vote:
Mrs. Lincoln for, with Mr. Forbes against.
Mr. Miller of California for, with Mr. Packard against.
Mr. GONZALEZ and Mr. HILLIARD changed their vote from ``aye'' to
``no.''
Mrs. COLLINS of Illinois, Mr. FOGLIETTA, and Mr. GILMAN changed their
vote from ``no'' to ``aye.''
So the amendment in the nature of a substitute was rejected.
The result of the vote was announced as above recorded.
The CHAIRMAN. Under the rule, the Committee rises.
Accordingly the Committee rose; and the Speaker pro tempore (Mr.
Armey) 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, pursuant to
House Resolution 482, as amended by the adoption of that rule, she
reported the bill back to the House with a further amendment adopted by
the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
The question is on the further amendment.
The further amendment was agreed to.
[[Page H7988]]
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
motion to recommit offered by mr. tanner
Mr. TANNER. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. TANNER. Yes, Mr. Speaker, in its present form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Tanner moves to recommit the bill H.R. 3734 to the
Committee on Budget with instructions to report the same to
the House with the following amendment:
In section 408(a)(8)(A) of the Social Security Act, as
proposed to be added by section 4103(a)(1), insert ``cash''
before ``assistance to a family.''
Mr. TANNER (during the reading). Mr. Speaker, I ask unanimous consent
that the motion be considered as read and printed in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
The SPEAKER pro tempore. The gentleman from Tennessee [Mr. Tanner] is
recognized for 5 minutes.
Mr. TANNER. Mr. Speaker, I know it has been a long debate. Almost
everything that can be said has been said about the bill. I do not
intend to use the full 5 minutes.
The motion to recommit is a laser beam about children. The Castle-
Tanner substitute that was just voted down requires States to provide
vouchers for the needs of the child for families cut off as a result of
State-imposed time limits of less than 5 years, and gives States the
option of providing vouchers for families cut off as a result of the
Federal 5-year limit.
The bill that we are about to vote on in a minute explicitly
prohibits States from using Federal funds to provide vouchers for
children after this 5-year time limit.
Now, Mr. Speaker, I think both of these bills, under the debate that
has occurred, a fair reading by any fair-minded individual would
conclude both of these proposals are a complete and dramatic reform and
change of the present system, which everybody wants. Our substitute and
time limits, personal responsibility, work requirements, State
flexibility, just like the base bill.
I am going to talk about State flexibility. Why in the world, when we
are going to a block grant and telling the States, ``You fashion the
program that you think is best for your State,'' would we go then and
after 5 years prohibit the States from using any Federal funds for
noncash vouchers for kids whose parents have run over the 5-year or run
out of the 5-year limit?
Mr. Speaker, according to the New Testament there is only one
individual in the whole of human history who was privileged or enabled
to decide the circumstance and the place and time of his birth, and
that was decided for him by his father. These children come into this
world and they cannot help their circumstance.
Now, for this body to say to the State, ``You cannot use block grant
money that is put there for you to devise for children in welfare
programs,'' for this Congress to say, ``But, by the way, you cannot use
any of this money to provide noncash assistance to children because
their,'' according to some, ``deadbeat parent has overstayed his
welcome in society,'' I think is just plain wrong.
This motion to recommit days that States will simply have the option
to use part of the Federal grant money they receive to take care of
these people in vouchers, noncash vouchers for children. I do not know
of anyone who wants a welfare system where we reform it and say to a 3-
year-old child, ``You are just cut off, and it is too bad because your
33-year-old parents are not taking care of you.'' That is not welfare
reform.
This will cure that, and I would urge a ``yes'' vote on this very
simple, straightforward motion to recommit.
Mr. SHAW. Mr. Speaker, I rise in opposition to the motion to
recommit.
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Florida [Mr. Shaw] for 5 minutes.
Mr. SHAW. Mr. Speaker, I want to address some of the remarks made by
the gentleman from Tennessee [Mr. tanner].
This bill has been very, very carefully crafted, and it is something
we did not draw up last night or even last year. We have been working
on this thing for so long, we have had so many drafts, and I think it
has been done in the most compassionate way possible.
I would like to recognize Dr. Ron Haskins as someone who has been a
great resource not only for the Republican side but he has also been a
great resource for the Castle-Tanner people.
To address the question that is immediately before us can States
craft vouchers after 5 years, the bill that is before us, that we are
about to vote on on final passage, has a 20-percent exception in it. It
provides that States can take 20 percent of their caseload and take it
out of the welfare reform picture.
This simply means that they can use that money, the 20 percent, to
issue vouchers if they want to, so in effect it does what the gentleman
from Tennessee [Mr. Tanner] is talking about.
Mr. Speaker, this is extraordinarily important. Also, we particularly
provide in the bill, so that we do maintain States' rights in the bill,
specifically that there is absolutely no Federal hold on what the
States do with their own funds. So, in effect, what Mr. Tanner wants to
do can be done.
The difference is what message do we send from this body. Are we for
genuine welfare reform? Are we for time limits on welfare reform? That
is the message that we have got to send from this Congress if we are
going to look for the people to get up and go to work and cooperate
with us and take hold of their lives. This is the message that we carry
with us when we are trying to rescue people from a corrupted system of
welfare that has prevailed in this country now for 60 years.
Mr. Speaker, I urge a ``no'' vote on the motion to recommit and a
``yes'' vote on final passage.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. TANNER. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 203,
noes 220, not voting 10, as follows:
[Roll No. 330]
AYES--203
Abercrombie
Ackerman
Andrews
Baesler
Baldacci
Barcia
Barrett (WI)
Becerra
Beilenson
Bentsen
Berman
Bevill
Bishop
Blumenauer
Bonior
Borski
Boucher
Brewster
Browder
Brown (CA)
Brown (FL)
Brown (OH)
Bryant (TX)
Bunn
Cardin
Castle
Chapman
Clay
Clayton
Clement
Clyburn
Coleman
Collins (IL)
Collins (MI)
Condit
Conyers
Costello
Coyne
Cramer
Cummings
Danner
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
Furse
Gejdenson
Gephardt
Geren
Gibbons
Gilman
Gonzalez
Gordon
Green (TX)
Gutierrez
Hall (OH)
Hall (TX)
Hamilton
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Holden
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jacobs
Jefferson
Johnson (SD)
Johnson, E. B.
Johnston
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kleczka
Klink
LaFalce
Lantos
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Luther
Maloney
Manton
Markey
Martinez
Mascara
Matsui
McCarthy
McDermott
McHale
McKinney
McNulty
Meehan
Meek
Menendez
Millender-McDonald
Minge
Mink
Moakley
Mollohan
Montgomery
Moran
Morella
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Orton
Owens
Pallone
Pastor
Payne (NJ)
Payne (VA)
Pelosi
Peterson (FL)
Peterson (MN)
Pickett
Pomeroy
Poshard
Rahall
Rangel
Reed
Richardson
Rivers
Roemer
Rose
Roukema
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schroeder
Schumer
Scott
Serrano
Sisisky
[[Page H7989]]
Skaggs
Skelton
Slaughter
Spratt
Stark
Stenholm
Stokes
Studds
Stupak
Tanner
Taylor (MS)
Tejeda
Thompson
Thornton
Thurman
Torres
Torricelli
Towns
Traficant
Upton
Velazquez
Vento
Visclosky
Volkmer
Ward
Waters
Watt (NC)
Waxman
Williams
Wilson
Wise
Woolsey
Wynn
Yates
NOES--220
Allard
Archer
Armey
Bachus
Baker (CA)
Baker (LA)
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Blute
Boehlert
Boehner
Bonilla
Bono
Brownback
Bryant (TN)
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Collins (GA)
Combest
Cooley
Cox
Crane
Crapo
Cremeans
Cubin
Cunningham
Deal
DeLay
Diaz-Balart
Dickey
Doolittle
Dornan
Dreier
Duncan
Dunn
Ehlers
Ehrlich
English
Ensign
Everett
Ewing
Fawell
Fields (TX)
Flanagan
Foley
Fowler
Fox
Franks (CT)
Franks (NJ)
Frelinghuysen
Frisa
Funderburk
Gallegly
Ganske
Gekas
Gilchrest
Gillmor
Goodlatte
Goodling
Goss
Graham
Greene (UT)
Greenwood
Gunderson
Gutknecht
Hancock
Hansen
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Heineman
Herger
Hilleary
Hobson
Hoekstra
Hoke
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Laughlin
Lazio
Leach
Lewis (KY)
Lightfoot
Linder
Livingston
LoBiondo
Longley
Lucas
Manzullo
Martini
McCollum
McCrery
McHugh
McInnis
McKeon
Metcalf
Meyers
Mica
Miller (FL)
Molinari
Moorhead
Myers
Myrick
Nethercutt
Neumann
Ney
Norwood
Nussle
Oxley
Parker
Paxon
Petri
Pombo
Porter
Portman
Pryce
Quillen
Quinn
Radanovich
Ramstad
Regula
Riggs
Roberts
Rogers
Rohrabacher
Ros-Lehtinen
Roth
Royce
Salmon
Sanford
Saxton
Scarborough
Schaefer
Seastrand
Sensenbrenner
Shadegg
Shaw
Shays
Shuster
Skeen
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Stearns
Stockman
Stump
Talent
Tate
Tauzin
Taylor (NC)
Thomas
Thornberry
Tiahrt
Torkildsen
Vucanovich
Walker
Walsh
Wamp
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wolf
Young (AK)
Zeliff
Zimmer
NOT VOTING--10
de la Garza
Forbes
Lewis (CA)
Lincoln
McDade
McIntosh
Miller (CA)
Packard
Schiff
Young (FL)
{time} 1612
The Clerk announced the following pairs:
On this vote:
Mrs. Lincoln for, with Mr. Packard against.
Mr. Miller of California for, with Mr. Schiff against.
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
PERSONAL EXPLANATION
Mr. McINTOSH. Mr. Speaker, on rollcall No. 330, I was unavoidably
detained. Had I been present, I would have voted ``no.''
The SPEAKER pro tempore (Mr. Armey). The question is on the passage
of the bill.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
recorded vote
Mr. SHAW. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 256,
noes 170, not voting 8, as follows:
[Roll No. 331]
AYES--256
Allard
Archer
Armey
Bachus
Baesler
Baker (CA)
Baker (LA)
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bishop
Bliley
Blute
Boehlert
Boehner
Bonilla
Bono
Brewster
Browder
Brownback
Bryant (TN)
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Castle
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Collins (GA)
Combest
Condit
Cooley
Cox
Cramer
Crane
Crapo
Cremeans
Cubin
Cunningham
Danner
Davis
Deal
DeLay
Deutsch
Dickey
Doolittle
Dornan
Doyle
Dreier
Duncan
Dunn
Edwards
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
Gilman
Gingrich
Goodlatte
Goodling
Gordon
Goss
Graham
Greene (UT)
Greenwood
Gunderson
Gutknecht
Hall (TX)
Hamilton
Hancock
Hansen
Harman
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Heineman
Herger
Hilleary
Hobson
Hoekstra
Hoke
Holden
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Johnson (CT)
Johnson (SD)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King
Kingston
Kleczka
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Laughlin
Lazio
Leach
Lewis (CA)
Lewis (KY)
Lightfoot
Linder
Lipinski
Livingston
LoBiondo
Longley
Lucas
Manzullo
Martini
Mascara
McCollum
McCrery
McHale
McHugh
McInnis
McIntosh
McKeon
Metcalf
Meyers
Mica
Miller (FL)
Molinari
Montgomery
Moorhead
Morella
Myers
Myrick
Nethercutt
Neumann
Ney
Norwood
Nussle
Oxley
Parker
Paxon
Peterson (MN)
Petri
Pickett
Pombo
Porter
Portman
Pryce
Quillen
Quinn
Radanovich
Ramstad
Regula
Riggs
Roberts
Roemer
Rogers
Rohrabacher
Roth
Royce
Salmon
Sanford
Saxton
Scarborough
Schaefer
Seastrand
Sensenbrenner
Shadegg
Shaw
Shays
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
Vucanovich
Walker
Walsh
Wamp
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wolf
Young (AK)
Zeliff
Zimmer
NOES--170
Abercrombie
Ackerman
Andrews
Baldacci
Barcia
Barrett (WI)
Becerra
Beilenson
Bentsen
Berman
Bevill
Blumenauer
Bonior
Borski
Boucher
Brown (CA)
Brown (FL)
Brown (OH)
Bryant (TX)
Bunn
Cardin
Chapman
Clay
Clayton
Clement
Clyburn
Coleman
Collins (IL)
Collins (MI)
Conyers
Costello
Coyne
Cummings
DeFazio
DeLauro
Dellums
Diaz-Balart
Dicks
Dingell
Dixon
Doggett
Dooley
Durbin
Engel
Eshoo
Evans
Farr
Fattah
Fazio
Fields (LA)
Filner
Flake
Foglietta
Ford
Frank (MA)
Frost
Gejdenson
Gephardt
Gibbons
Gonzalez
Green (TX)
Gutierrez
Hall (OH)
Hastings (FL)
Hefner
Hilliard
Hinchey
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jacobs
Jefferson
Johnson, E. B.
Johnston
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Klink
LaFalce
Lantos
Levin
Lewis (GA)
Lofgren
Lowey
Luther
Maloney
Manton
Markey
Martinez
Matsui
McCarthy
McDermott
McKinney
McNulty
Meehan
Meek
Menendez
Millender-McDonald
Minge
Mink
Moakley
Mollohan
Moran
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Orton
Owens
Pallone
Pastor
Payne (NJ)
Payne (VA)
Pelosi
Peterson (FL)
Pomeroy
Poshard
Rahall
Rangel
Reed
Richardson
Rivers
Ros-Lehtinen
Rose
Roukema
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schroeder
Schumer
Scott
Serrano
Skaggs
Slaughter
Spratt
Stark
Stenholm
Stokes
Studds
Stupak
Tanner
Tejeda
Thompson
Thornton
Thurman
Torres
Torricelli
Towns
Velazquez
Vento
Visclosky
Volkmer
Ward
Waters
Watt (NC)
Waxman
Williams
Wilson
Wise
Woolsey
Wynn
Yates
NOT VOTING--8
de la Garza
Forbes
Lincoln
McDade
Miller (CA)
Packard
Schiff
Young (FL)
{time} 1632
The Clerk announced the following pair:
On this vote:
Mrs. Lincoln, with Mr. Miller of California against.
[[Page H7990]]
Mr. BECERRA changed his vote from ``aye'' to ``no.''
Mr. BISHOP changed his vote from ``no'' to ``aye.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________