[Congressional Record Volume 142, Number 107 (Friday, July 19, 1996)]
[Senate]
[Pages S8375-S8380]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

      THE PERSONAL RESPONSIBILITY, WORK OPPORTUNITY, AND MEDICAID 
                       RESTRUCTURING ACT OF 1996

                                 ______
                                 

                D'AMATO (AND OTHERS) AMENDMENT NO. 4927

  Mr. D'AMATO (for himself, Mr. Levin, Mr. Santorum, Mr. Gramm, Mrs. 
Hutchison, Mr. Pressler, Mr. Faircloth, Mr. Craig, Mr. Stevens, Mr. 
Burns, Mr. Smith, Mr. Coverdell, Mr. Grassley, Mr. Ashcroft, Mr. Brown, 
Mr. Thompson, Mr. McConnell, Mr. Bond, Mr. Grams, Mr. Shelby, Mr. 
Jeffords, Mr. Mack, Mr. Murkowski, Mr. Bennett, Mr. Lott, Mr. Domenici, 
and Mr. Nickles) proposed an amendment to the bill (S. 1956) to provide 
for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 1997; as follows:

       Section 402(a)(1)(B) of the Social Security Act, as added 
     by section 2103(a)(1), is amended by adding at the end the 
     following:
       ``(iii) Not later than one year after the date of enactment 
     of this Act, unless the State opts out of this provision by 
     notifying the Secretary, a State shall, consistent with the 
     exception provided in section 407(e)(2), require a parent or 
     caretaker receiving assistance under the program who, after 
     receiving such assistance for two months is not exempt from 
     work requirements and is not engaged in work, as determined 
     under section 407(c), to participate in community service 
     employment, with minimum hours per week and tasks to be 
     determined by the State.''
                                 ______
                                 

                 SIMON (AND OTHERS) AMENDMENT NO. 4928

  Mr. EXON (for Mr. Simon, for himself, Mrs. Murray, Mr. Kerrey, Mr. 
Specter, and Mr. Jeffords) proposed an amendment to the bill, S. 1956, 
supra; as follows:

       Beginning on page 233, strike line 15, and all that follows 
     through line 13 on page 235, and insert the following:
       ``(4) Limitation on 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 30 percent of adults in all families and in 2-
     parent families determined to be engaged in work in the State 
     for a month may meet the work activity requirement through 
     participation in vocational educational training.
       ``(5) Single parent with child under age 6 deemed to be 
     meeting work participation requirements if parent is engaged 
     in work for 20 hours per week.--For purposes of determining 
     monthly participation rates under subsection (b)(1)(B)(i), a 
     recipient in a 1-parent family who is the parent of a child 
     who has not attained 6 years of age is deemed to be engaged 
     in work for a month if the recipient is engaged in work for 
     an average of at least 20 hours per week during the month.
       ``(6) Teen head of household who maintains satisfactory 
     school attendance deemed to be meeting work participation 
     requirements.--For purposes of determining monthly 
     participation rates under subsection (b)(1)(B)(i), a 
     recipient who is a single head of household and has not 
     attained 20 years of age is deemed to be engaged in work for 
     a month in a fiscal year if the recipient--
       ``(A) maintains satisfactory attendance at secondary school 
     or the equivalent during the month; or
       ``(B) participates in education directly related to 
     employment for at least the minimum average number of hours 
     per week specified in the table set forth in paragraph (1).
       ``(d) Work Activities Defined.--As used in this section, 
     the term `work activities' means--
       ``(1) unsubsidized employment:
       ``(2) subsidized private sector employment;
       ``(3) subsidized public sector employment;
       ``(4) work experience (including work associated with the 
     refurbishing of publicly assisted housing) if sufficient 
     private sector employment is not available;
       ``(5) on-the-job training;
       ``(6) job search and job readiness assistance;
       ``(7) community service programs;
       ``(8) educational training (not to exceed 24 months with 
     respect to any individual);
                                 ______
                                 

               FEINSTEIN (AND OTHERS) AMENDMENT NO. 4929

  Mrs. FEINSTEIN (for herself, Mrs. Boxer, and Mr. Graham) proposed an 
amendment to the bill, S. 1956, supra; as follows:

       Beginning on page 569, line 15, strike all through the end 
     of line 10, page 589, and insert the following:
       (D) This provision shall apply beginning on the date of the 
     alien's entry into the United States.
       (3) Specified federal program defined.--For purposes of 
     this chapter, the term ``specified Federal program'' means 
     any of the following:
       (A) SSI.--The supplemental security income program under 
     title XVI of the Social Security Act, including supplementary 
     payments pursuant to an agreement for Federal administration 
     under section 1616(a) of the Social Security Act and payments 
     pursuant to an agreement entered into under section 212(b) of 
     Public Law 93-66.
       (B) Food stamps.--The food stamp program as defined in 
     section 3(h) of the Food Stamp Act of 1977.
       (b) Limited Eligibility for Designated Federal Programs.--
       (1) In general.--Notwithstanding any other provision of law 
     and except as provided in section 2403 and paragraph (2), a 
     State is authorized to determine the eligibility of an alien 
     who is a qualified alien (as defined in section 2431) for any 
     designated Federal program (as defined in paragraph (3)).
       (2) Exceptions.--Qualified aliens under this paragraph 
     shall be eligible for any designated Federal program.
       (A) Time-limited exception for refugees and asylees.--
       (i) An alien who is admitted to the United States as a 
     refugee under section 207 of the Immigration and Nationality 
     Act until 5 years after the date of an alien's entry into the 
     United States.
       (ii) An alien who is granted asylum under section 208 of 
     such Act until 5 years after the date of such grant of 
     asylum.
       (iii) An alien whose deportation is being withheld under 
     section 243(h) of such Act until 5 years after such 
     withholding.
       (B) Certain permanent resident aliens.--An alien who--
       (i) is lawfully admitted to the United States for permanent 
     residence under the Immigration and Nationality Act; and
       (ii)(I) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 2435, and (II) did not receive any Federal means-
     tested public benefit (as defined in section 2403(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).
       (3) This provision shall apply beginning on the date of the 
     alien's entry into the United States.
       (4) Designated federal program defined.--For purposes of 
     this chapter, 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.
       (C) Medicaid.--The program of medical assistance under 
     title XV and XLX of the Social Security Act.

[[Page S8376]]

     SEC. 2403. 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 2431) and who enters 
     the United States on or after the date of the enactment of 
     this Act is not eligible for any Federal means-tested public 
     benefit (as defined in subsection (c)) for a period of five 
     years beginning on the date of the alien's entry into the 
     United States with a status within the meaning of the term 
     ``qualified alien''.
       (b) Exceptions.--The limitation under subsection (a) shall 
     not apply to the following aliens:
       (1) Exception for refugees and asylees.--
       (A) An alien who is admitted to the United States as a 
     refugee under section 207 of the Immigration and Nationality 
     Act.
       (B) An alien who is granted asylum under section 208 of 
     such Act.
       (C) An alien whose deportation is being withheld under 
     section 243(h) of such Act.
       (2) Veteran and active duty exception.--An alien who is 
     lawfully residing in any State and is--
       (A) a veteran (as defined in section 101 of title 38, 
     United States Code) with a discharge characterized as an 
     honorable discharge and not on account of alienage.
       (B) on active duty (other than active duty for training) in 
     the Armed Forces of the United States, or
       (C) the spouse or unmarried dependent child of an 
     individual described in subparagraph (A) or (B).
       (c) Federal Means-tested Public Benefit Defined.--
       (1) Except as provided in paragraph (2), for purposes of 
     this chapter, 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 XV or XIX of the 
     Social Security Act.
       (B) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (C) Assistance or benefits under the National School Lunch 
     Act.
       (D) Assistance or benefits under the Child Nutrition Act of 
     1966.
       (E)(i) Public health assistance for immunizations.
       (ii) Public health assistance for testing and treatment of 
     a 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 E of title IV of the Social Security Act for a child who 
     would, in the abscence 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.

     SEC. 2404. NOTIFICATION AND INFORMATION REPORTING.

       (a) Notification.--Each Federal agency that administers a 
     program to which section 2401, 2402, or 2403 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 subchapter.
       (b) Information Reporting Under Title IV of the Social 
     Security Act.--Part A of title IV of the Social Security Act, 
     as amended by section 2103(a) of this Act, is amended by 
     inserting the following new section after section 411:

     ``SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.

       ``Each State to which a grant is made under section 403, 
     shall, at least 4 times annually and upon request of the 
     Immigration and Naturalization Service, furnish the 
     Immigration and Naturalization Service with the name and 
     address of, and other identifying information on, any 
     individual who the State knows is unlawfully in the United 
     States.''
       (c) SSI.--Section 1631(e) of such Act (42 U.S.C. 1383(e)) 
     is amended--
       (1) by redesignating the paragraphs (6) and (7) inserted by 
     sections 206(d)(2) and 206(f)(1) of the Social Security 
     Independence and Programs Improvement Act of 1994 (Public Law 
     103-296; 108 Stat. 1514, 1515) as paragraphs (7) and (8), 
     respectively; and
       (2) by adding at the end the following new paragraph:
       ``(9) Notwithstanding any other provision of law, the 
     Commissioner shall, at least 4 times annually and upon 
     request of the Immigration and Naturalization Service 
     (hereafter in this paragraph referred to as the `Service'), 
     furnish the Service with the name and address of, and other 
     identifying information on, any individual who the 
     Commissioner knows is unlawfully in the United States, and 
     shall ensure that each agreement entered into under section 
     1616(a) with a State provides that the State shall furnish 
     such information at such times with respect to any individual 
     who the State knows is unlawfully in the United States.''
       (d) Information Reporting for Housing Programs.--Title I of 
     the United States Housing Act of 1937 (42 U.S.C. 1437 et 
     seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND 
                   OTHER AGENCIES.

       ``Notwithstanding any other provision of law, the Secretary 
     shall, at least 4 times annually and upon request of the 
     Immigration and Naturalization Service (hereafter in this 
     section referred to as the `Service'), furnish the Service 
     with the name and address of, and other identifying 
     information on, any individual who the Secretary knows is 
     unlawfully in the United States, and shall ensure that each 
     contract for assistance entered into under section 6 or 8 of 
     this Act with a public housing agency provides that the 
     public housing agency shall furnish such information at such 
     times with respect to any individual who the public housing 
     agency knows is unlawfully in the United States.''.

 Subchapter B--Eligibility for State and Local Public Benefits Programs

     SEC. 2411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR 
                   NONIMMIGRANTS INELIGIBLE FOR STATE AND LOCAL 
                   PUBLIC BENEFITS.

       (a) In General.--Notwithstanding any other provision of law 
     and except as provided in subsections (b) and (d), an alien 
     who is not--
       (1) a qualified alien (as defined in section 2431),
       (2) a nonimmigrant under the Immigration and Nationality 
     Act, or
       (3) an alien who is paroled into the United States under 
     section 212(d)(5) of such Act for less than one year,

     is not eligible for any State or local public benefit (as 
     defined in subsection (c)).
       (b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following State or local public benefits:
       (1) Emergency medical services under title XV or XIX of the 
     Social Security Act.
       (2) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (3)(A) Public health assistance for immunizations.
       (B) Public health assistance for testing and treatment of a 
     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 provide in paragraph (2), for purposes of 
     this subchapter the term ``State or local public benefit'' 
     means--
       (A) any grant, contract, loan, professional license, or 
     commercial license provided by an agency of a State or local 
     government or by appropriated funds of a State or local 
     government; and
       (B) any retirement, welfare, health, disability, public or 
     assisted housing, postsecondary education, food assistance, 
     unemployment benefit, or any other similar benefit for which 
     payments or assistance are provided to an individual, 
     household, or family eligibility unit by an agency of a State 
     or local government or by appropriated funds of a State or 
     local government.
       (2) Such term shall not apply--
       (A) to any contract, professional license, or commercial 
     license for a nonimmigrant whose visa for entry is related to 
     such employment in the United States; or
       (B) with respect to benefits for an alien who as a work 
     authorized nonimmigrant or as an alien lawfully admitted for 
     permanent residence under the Immigration and Nationality Act 
     qualified for such benefits and for whom the United States 
     under reciprocal treaty agreements is required to pay 
     benefits, as determined by the Secretary of State, after 
     consultation with the Attorney General.
       (d) State Authority To Provide for Eligibility of Illegal 
     Aliens for State and Local Public Benefits.--A State may 
     provide that an alien who is not lawfully present in the 
     United States is eligible for

[[Page S8377]]

     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. 2412. 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 2431), a nonimmigrant 
     under the Immigration and Nationality Act, or an alien who is 
     paroled into the United States under section 212(d)(5) of 
     such Act for less than one year.
       (b) Exceptions.--Qualified aliens under this subsection 
     shall be eligible for any State public benefits.
       (1) Time-limited exception for refugees and asylees.--
       (A) An alien who is admitted to the United States as a 
     refugee under section 207 of the Immigration and Nationality 
     Act until 5 years after the date of an alien's entry into the 
     United States.
       (B) An alien who is granted asylum under section 208 of 
     such Act until 5 years after the date of such grant of 
     asylum.
       (C) An alien whose deportation is being withheld under 
     section 243(h) of such Act until 5 years after such 
     withholding.
       (2) Certain permanent resident aliens.--An alien who--
       (A) is lawfully admitted to the United States for permanent 
     residence under the Immigration and Nationality Act; and
       (B)(i) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 2435, and (ii) did not receive any Federal means-
     tested public benefit (as defined in section 2403(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) This provision applies to those entering the country on 
     or after the enactment.
       (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.

     Subchapter C--Attribution of Income and Affidavits of Support

     SEC. 2421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND 
                   RESOURCES TO ALIEN.

       (a) In General.--Notwithstanding any other provision of 
     law, in determining the eligibility and the amount of 
     benefits of an alien for any Federal means-tested public 
     benefits program (as defined in section 2403(c)), the income 
     and resources of the alien shall be deemed to include the 
     following:
       (1) The income and resources of any person who executed an 
     affidavit of support pursuant to section 213A of the 
     Immigration and Nationality Act (as added by section 2423) on 
     behalf of such alein.
       (2) The income and resources of the spouse (if any) of the 
     person.
       (b) Application.--Subsection (a) shall apply with respect 
     to an alien until such time as the alien--
       (1) achieves United States citizenship through 
     naturalization pursuant to chapter 2 of title III of the 
     Immigration and Nationality Act; or
       (2)(A) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 2435, and (B) did not receive any Federal means-
     tested public benefit (as defined in section 2403(c)) during 
     any such quarter.
       (c) Review of Income and Resources of Alien Upon 
     Reapplication.--Whenever an alien is required to reapply for 
     benefits under any Federal means-tested public benefits 
     program, the applicable agency shall review the income and 
     resources attributed to the alien under subsection (a).
       (d) This provision shall apply beginning on the date of the 
     aliens entry into the United States.
                                 ______
                                 

                 HELMS (AND OTHERS) AMENDMENT NO. 4930

  Mr. HELMS (for himself, Mr. Faircloth, Mr. Nickles, Mr. Shelby, Mr. 
Smith, and Mr. Gramm) proposed an amendment to the bill, S. 1956, 
supra; as follows:

       Strike section 1134 and insert the following:

     SEC. 1134. WORK REQUIREMENT.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as 
     amended by section 1133, is amended by adding at the end the 
     following:
       ``(o) Work Requirement.--
       ``(1) Definition of work program.--In this subsection, the 
     term `work program' means--
       ``(A) a program under the Job Training Partnership Act (29 
     U.S.C. 1501 et seq.);
       ``(B) a program under section 236 of the Trade Act of 1974 
     (19 U.S.C. 2296); or
       ``(C) a program of employment or training operated or 
     supervised by a State or political subdivision of a State 
     that meets standards approved by the Governor of the State, 
     including a program under subsection (d)(4), other than a job 
     search program or a job search training program.
       ``(2) Work requirement.--Subject to paragraph (3), no 
     individual shall be eligible to participate in the food stamp 
     program as a member of any household if the individual did 
     not--
       ``(A) work 20 hours or more per week, averaged monthly;
       ``(B) participate in and comply with the requirements of a 
     work program for at least 20 hours or more per week, as 
     determined by the State agency; or
       ``(C) participate in and comply with the requirements of a 
     program under section 20 or a comparable program established 
     by a State or political subdivision of a State.
       ``(3) Exemptions.--Paragraph (1) shall not apply to an 
     individual if the individual is--
       ``(A) a parent residing with a dependent child under 18 
     years of age;
       ``(B) mentally or physically unfit;
       ``(C) under 18 years of age;
       ``(D) 50 years of age or older; or
       ``(E) a pregnant woman.''.
                                 ______
                                 

                 CHAFEE (AND OTHERS) AMENDMENT NO. 4931

  Mr. CHAFEE (for himself, Mr. Breaux, Mr. Cohen, Mr. Graham, Mr. 
Jeffords, Mr. Kerrey, Mr. Hatfield, Mrs. Murray, Ms. Snowe, Mr. 
Lieberman, Mr. Reid, and Mr. Rockefeller) proposed an amendment to the 
bill, S. 1956, supra; as follows:

       Beginning with page 256, line 20, strike all through page 
     259, line 4, and insert the following:
       ``(12) Assuring medicaid coverage for low-income 
     families.--
       ``(A) In general.--Notwithstanding any other provision of 
     this Act, subject to the succeeding provisions of this 
     paragraph, with respect to a State any reference in title XIX 
     (or other provision of law in relation to the operation of 
     such title) to a provision of this part, or a State plan 
     under this part (or a provision of such a plan), including 
     standards and methodologies for determining income and 
     resources under this part or such 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.
       ``(B) Construction.--
       ``(i) 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 this part (as in effect on 
     or after October 1, 1996).
       ``(ii) The provisions of former section 406(h) (as in 
     effect on July 1, 1996) shall apply, in relation to title 
     XIX, with respect to individuals who receive assistance under 
     a State program funded under this part (as in effect on or 
     after October 1, 1996) and are eligible for medical 
     assistance under title XIX or who are described in 
     subparagraph (C)(i) in the same manner as they apply as of 
     July 1, 1996, 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 this 
     title.
       ``(iii) With respect to the reference in section 1902(a)(5) 
     to a State plan approved under this part, a State may treat 
     such reference as a reference either to a State program 
     funded under this part (as in effect on or after October 1, 
     1996) or to the State plan under title XIX.
       ``(C) Eligibility criteria.--
       ``(i) In general.--For purposes of title XIX, subject to 
     clause (ii), in determining eligibility for medical 
     assistance under such title, an individual shall be treated 
     as receiving aid or assistance under a State plan approved 
     under this part (and shall be treated as meeting the income 
     and resource standards under this part) only if the 
     individual meets--
       ``(I) the income and resource standards for determining 
     eligibility under such plan; and
       ``(II) the eligibility requirements of such plan under 
     subsections (a) through (c) of former section 406 and former 
     section 407(a),

     as in effect as of July 1, 1996. Subject to clause (ii)(II), 
     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.
       ``(ii) State option.--For purposes of applying this 
     paragraph, a State may--
       ``(I) lower its income standards applicable with respect to 
     this part, but not below the income standards applicable 
     under its State plan under this part on May 1, 1988; and
       ``(II) use income and resource standards or methodologies 
     that are less restrictive than the standards or methodologies 
     used under the State plan under this part as of July 1, 1996.
       ``(iii) Additional state option with respect to tanf 
     recipients.--For purposes of applying this paragraph to title 
     XIX, a State may, subject to clause (iv), treat all 
     individuals (or reasonable categories of individuals)

[[Page S8378]]

     receiving assistance under the State program funded under 
     this part (as in effect on or after October 1, 1996) as 
     individuals who are receiving aid or assistance under a State 
     plan approved under this part (and thereby eligible for 
     medical assistance under title XIX).
       ``(iv) Transitional coverage.--For purposes of section 
     1925, an individual who is receiving assistance under the 
     State program funded under this part (as in effect on or 
     after October 1, 1996) and is eligible for medical assistance 
     under title XIX shall be treated as an individual receiving 
     aid or assistance pursuant to a State plan approved under 
     this part (as in effect as of July 1, 1996) (and thereby 
     eligible for continuation of medical assistance under such 
     section 1925).
       ``(D) Waivers.--In the case of a waiver of a provision of 
     this part in effect with respect to a State as of July 1, 
     1996, if the waiver affects eligibility of individuals for 
     medical assistance under title XIX, such waiver may (but need 
     not) continue to be applied, at the option of the State, in 
     relation to such 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, subparagraphs (A), (B), and (C) shall be applied as 
     if any provision so waived had not been waived.
       ``(E) State option to use 1 application form.--Nothing in 
     this paragraph, this part, or title XIX, shall be construed 
     as preventing a State from providing for the same application 
     form for assistance under a State program funded under this 
     part (on or after October 1, 1996) and for medical assistance 
     under title XIX.
       ``(F) Requirement for receipt of funds.--A State to which a 
     grant is made under section 403 shall take such action as may 
     be necessary to ensure that the provisions of this paragraph 
     are carried out provided that the State is otherwise 
     participating in title XIX of this Act.
                                 ______
                                 

                        ROTH AMENDMENT NO. 4932

  Mr. ROTH proposed an amendment to amendment No. 4931 proposed by Mr. 
Chafee to the bill, S. 1956, supra; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:
       ``(12) Continuation of medicaid for certain low-income 
     individuals.--
       ``(A) In general.--Notwithstanding any other provision of 
     this Act, a State to which a grant is made under section 403 
     shall take such action as may be necessary to ensure that--
       ``(i) any individual who, as of the date of the enactment 
     of the Personal Responsibility and Work Opportunity Act of 
     1996, is receiving medical assistance under title XIX as a 
     result of such individual's receipt of aid or assistance 
     under a State plan approved under this part (as in effect on 
     July 1, 1996), or under a State plan approved under part E 
     (as so in effect)--
       ``(I) shall be eligible for medical assistance under the 
     State's plan approved under title XIX, so long as such 
     individual continues to meet the eligibility requirements 
     applicable to such individual under the State's plan approved 
     under this part (as in effect on July 1, 1996); and
       ``(II) with respect to such individual, any reference in--
       ``(aa) title XIX;
       ``(bb) any other provision of law in relation to the 
     operation of such title;
       ``(cc) the State plan under such title of the State in 
     which such individual resides; or
       ``(dd) any other provision of State law in relation to the 
     operation of such State plan under such title,

     to a provision of this part, or a State plan under this part 
     (or a provision of such a plan), including standards and 
     methodologies for determining income and resources under this 
     part or such plan, shall be considered a reference to such a 
     provision or plan as in effect as of July 1, 1996; and
       ``(ii) except as provided in subparagraph (B), if any 
     family becomes ineligible to receive assistance under the 
     State program funded under this part as a result of--
       ``(I) increased earnings from employment;
       ``(II) the collection or increased collection of child or 
     spousal support; or
       ``(III) a combination of the matters described in 
     subclauses (I) and (II),

     and such family received such assistance in at least 3 of the 
     6 months immediately preceding the month in which such 
     ineligibility begins, the family shall be eligible for 
     medical assistance under the State's plan approved under 
     title XIX during the immediately succeeding 12-month period 
     for so long as family income (as defined by the State), 
     excluding any refund of Federal income taxes made by reason 
     of section 32 of the Internal Revenue Code of 1986 (relating 
     to earned income tax credit) and any payment made by an 
     employer under section 3507 of such Code (relating to advance 
     payment of earned income credit), is less than the poverty 
     line, and that the family will be appropriately notified of 
     such eligibility.
       ``(B) Exception.--No medical assistance may be provided 
     under subparagraph (A) to any family that contains an 
     individual who has had all or part of any assistance provided 
     under this part (as in effect on July 1, 1996, or as in 
     effect, with respect to a State, on and after the effective 
     date of chapter 1 of subtitle A of title II of the Personal 
     Responsibility and Work Opportunity Act of 1996) terminated 
     as a result of the application of--
       ``(i) a preceding paragraph of this subsection;
       ``(ii) section 407(e)(1); or
       ``(iii) in the case of a family that includes an individual 
     described in clause (i) of subparagraph (A), a sanction 
     imposed under the State plan under this part (as in effect on 
     July 1, 1996).
                                 ______
                                 

                 CHAFEE (AND OTHERS) AMENDMENT NO. 4933

  Mr. CHAFEE (for himself, Mr. Breaux, Mr. Cohen, Mr. Graham, Mr. 
Jeffords, Mr. Kerrey, Mr. Hatfield, Mrs. Murray, Ms. Snowe, Mr. 
Lieberman, Mr. Reid, and Mr. Rockefeller) proposed an amendment to 
amendment No. 4931 proposed by Mr. Chafee to the bill, S. 1956, supra; 
as follows:

       Strike all after the first word and insert the following:
       ``Medicaid Coverage for Low-Income Families.
       ``(A) In general.--Notwithstanding any other provision of 
     this Act, subject to the succeeding provisions of this 
     paragraph, with respect to a State any reference in title XIX 
     (or other provision of law in relation to the operation of 
     such title) to a provision of this part, or a State plan 
     under this part (or provision of such a plan), including 
     standards and methodologies for determining income and 
     resources under this part or such 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.
       ``(B) Constructions.--
       ``(i) 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 this part (as in effect on 
     or after October 1, 1996).
       ``(ii) The provisions of former section 406(h) (as in 
     effect on July 1, 1996) shall apply, in relation to title 
     XIX, with respect to individuals who receive assistance under 
     a State program funded under this part (as in effect on or 
     after October 1, 1996) and are eligible for medical 
     assistance under title XIX or who are described in 
     subparagraph (C)(i) in the same manner as they apply as of 
     July 1, 1996, 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 this 
     title.
       ``(iii) With respect to the reference in section 1902(a)(5) 
     to a State plan approved under this part, a State may treat 
     such reference as a reference either to a State program 
     funded under this part (as in effect on or after October 1, 
     1996) or to the State plan under title XIX.
       ``(C) Eligibility criteria.--
       ``(i) In general.--For purposes of title XIX, subject to 
     clause (ii), in determining eligibility for medical 
     assistance under such title, an individual shall be treated 
     as receiving aid or assistance under a State plan approved 
     under this part (and shall be treated as meeting the income 
     and resource standards under this part) only if the 
     individual meets--
       ``(I) the income and resource standards for determining 
     eligibility under such plan; and
       ``(II) the eligibility requirements of such plan under 
     subsections (a) through (c) of former section 406 and former 
     section 407(a),

     as in effect as of July 1, 1996. Subject to clause (ii)(II), 
     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.
       ``(ii) State option.--For purposes of applying this 
     paragraph, a State may--
       ``(I) lower its income standards applicable with respect to 
     this part, but not below the income standards applicable 
     under its State plan under this part on May 1, 1988; and
       ``(II) use income and resource standards or methodologies 
     that are less restrictive than the standards or methodologies 
     used under the State plan under this part as of July 1, 1996.
       ``(iv) Transitional coverage.--For purposes of section 
     1925, an individual who is receiving assistance under the 
     State program funded under this part (as in effect on or 
     after October 1, 1996) and is eligible for medical assistance 
     under title XIX shall be treated as an individual receiving 
     aid or assistance pursuant to a State plan approved under 
     this part (as in effect as of July 1, 1996) (and thereby 
     eligible for continuation of medical assistance under such 
     section 1925).
       ``(D) Waivers.--In the case of a waiver of a provision of 
     this part in effect with respect to a State as of July 1, 
     1996, if the waiver affects eligibility of individuals for 
     medical assistance under title XIX such waiver may (but need 
     not) continue to be applied, at the option of the State, in 
     relation to such 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, subparagraphs (A), (B), and (C) shall be applied as 
     if any provisions so waived had not been waived.
       ``(E) State option to use 1 application form.--Nothing in 
     this paragraph, this part, or title XIX, shall be construed 
     as preventing a State from providing for the same application 
     form for assistance under a State program funded under this 
     part (on or after October 1, 1996) and for medical assistance 
     under title XIX.

[[Page S8379]]

       ``(F) Requirement for receipt of funds.--A State to which a 
     grant is made under section 403 shall take such action as may 
     be necessary to ensure that the provisions of this paragraph 
     are carried out provided that the State is otherwise 
     participating in title XIX of this Act.
                                 ______
                                 

                 CONRAD (AND OTHERS) AMENDMENT NO. 4934

  Mr. CONRAD (for himself, Mr. Jeffords, Mr. Kerrey, Mr. Leahy, Mrs. 
Murray, and Mr. Reid) proposed an amendment to the bill, S. 1956, 
supra; as follows:

       On page 8, line 24, strike ``for fiscal year 1996'' and 
     insert ``for the period beginning October 1, 1995, and ending 
     November 30, 1996''.
       On page 9, strike lines 1 through 5 and insert the 
     following:
       ``(ii) for the period beginning December 1, 1996, and 
     ending September 30, 2001, $120, $206, $170, $242, and $106, 
     respectively;
       ``(iii) for the period beginning October 1, 2001, and 
     ending August 31, 2002, $113, $193, $159, $227, and $100 
     respectively; and
       ``(iv) for the period beginning September 1, 2002, and 
     ending September 30, 2002, $120, $206, $170, $242, and $106, 
     respectively.
       Beginning on page 94, strike line 14 and all that follows 
     through page 111, line 6.
                                 ______
                                 

                        GRAMM AMENDMENT NO. 4935

  Mr. SANTORUM (for Mr. Gramm) proposed an amendment to the bill, S. 
1956, supra; as follows:

       On page 364, between lines 14 and 15, insert the following 
     new section:

     SEC.   . DENIAL OF BENEFITS FOR CERTAIN DRUG RELATED 
                   CONVICTIONS.

       (a) In General.--An individual convicted (under Federal or 
     State law) of any crime relating to the illegal possession, 
     use, or distribution of a drug shall not be eligible for any 
     Federal means-tested public benefit, as defined in Section 
     2403(c)(1) of this Act.
       (b) Family Members Exempt.--The prohibition contained under 
     subsection (a) shall not apply to the family members or 
     dependants of the convicted individual in a manner that would 
     make such family members or dependants ineligible for welfare 
     benefits that they would otherwise be eligible for. Any 
     benefits provided to family members or dependents of a person 
     described in subsection (a) shall be reduced by the amount 
     which would have otherwise been made available to the 
     convicted individual.
       (c) Period of Prohibition.--The prohibition under 
     subsection (a) shall apply--
       (1) With respect to an individual convicted of a 
     misdemeanor, during the 5-year period beginning on the date 
     of the conviction or the 5-year period beginning on January 
     1, 1997, whichever is later; and
       (2) with respect to an individual convicted of a felony, 
     for the duration of the life of that individual.
       (d) Exceptions.--Subsection (a) shall not apply with 
     respect to the following Federal benefits:
       (1) Emergency medical services under title XV or XIX of the 
     Social Security Act.
       (2) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (3)(A) Public health assistance for immunizations.
       (B) Public health assistance for testing and treatment of 
     communicable diseases if the Secretary of Health and Human 
     Services determines that it is necessary to prevent the 
     spread of such disease.
       (e) Effective Date.--The denial of Federal benefits set 
     forth in this section shall take effect for convictions 
     occurring after the date of enactment.
       (f) Regulations.--Not later than December 31, 1996, the 
     Attorney General shall promulgate regulations detailing the 
     means by which Federal and State agencies, courts, and law 
     enforcement agencies will exchange and share the data and 
     information necessary to implement and enforce the 
     withholding of Federal benefits.
                                 ______
                                 

                GRAHAM (AND BUMPERS) AMENDMENT NO. 4936

  Mr. GRAHAM (for himself and Mr. Bumpers) proposed an amendment to the 
bill, S. 1956, supra; as follows:

       On page 196, strike line 16 and insert the following:
       Defined.--Except as provided in subparagraph (C), as used 
     in this part, the term
       On page 198, between lines 9 and 10, insert the following:
       ``(C) Rules for fiscal years 1997, 1998, 1999, 2000, and 
     2001.--
       ``(i) In general.--Notwithstanding subparagraph (A), in the 
     case of fiscal years 1997, 1998, 1999, 2000, and 2001, the 
     State family assistance grant for a State for a fiscal year 
     shall be an amount equal to the sum of--
       ``(I) the applicable percentage for such fiscal year of the 
     State family assistance grant for such fiscal year, as 
     determined under subparagraph (B), and
       ``(II) an amount equal to the State child poverty 
     allocation determined under clause (iii) for such fiscal 
     year.
       ``(ii) Applicable percentage.--For purposes of this 
     subparagraph, the applicable percentage for a fiscal year is 
     as follows:

                                                         The applicable
        ``If the fiscal year is:                          percentage is
1997.................................................................80
1998.................................................................60
1999.................................................................40
2000.................................................................20
2001..................................................................0

       ``(iii) State child poverty allocation.--For purposes of 
     this subparagraph, the State child poverty allocation for a 
     State for a fiscal year is an amount equal to the poverty 
     percentage of the greater of--
       ``(I) the product of the aggregate amount appropriated for 
     fiscal year 1996 under subparagraph (G) and the child poverty 
     ratio for such State for such fiscal year, as determined 
     under clause (iv); and
       ``(II) the minimum amount determined under clause (v).
     For purposes of this clause, the poverty percentage for any 
     fiscal year is a percentage equal to 100 percent minus the 
     applicable percentage for such fiscal year under clause (ii).
       ``(iv) Child poverty ratio.--For purposes of clause (iii), 
     the term `child poverty ratio' means, with respect to a State 
     and a fiscal year--
       ``(I) the average number of minor children in families 
     residing in the State with incomes below the poverty line, as 
     determined by the Director of the Bureau of the Census, for 
     the 3 preceding fiscal years; divided by
       ``(II) the average number of minor children in families 
     residing in all States with incomes below the poverty line, 
     as so determined, for such 3 preceding fiscal years.
       ``(v) Minimum amount.--For purposes of clause (iii), the 
     minimum amount is the lesser of--
       ``(I) $100,000,000; or
       ``(II) an amount equal to 150 percent of the total amount 
     required to be paid to the State under former section 403 for 
     fiscal year 1995 (as such section was in effect on June 1, 
     1996).
       ``(vi) Reduction if amounts not available.--If the 
     aggregate amount by which State family assistance grants for 
     all States increases for a fiscal year under this paragraph 
     exceeds the aggregate amount appropriated for such fiscal 
     year under subparagraph (G), the amount of the State family 
     assistance grant to a State shall be reduced by an amount 
     equal to the product of the aggregate amount of such excess 
     and the child poverty ratio for such State.
       ``(vii) 3-preceding fiscal years.--For purposes of clause 
     (iv), the term ``3-preceding fiscal years' means the 3 most 
     recent fiscal years preceding the current fiscal year for 
     which data are available.
       ``(D) Publication of allocations.--Not later than January 
     15 of each calendar year, the Secretary shall publish in the 
     Federal Register the amount of the family assistance grant to 
     which each State is entitled under this paragraph for the 
     fiscal year that begins on October 1 of such calendar year.
       On page 198, line 10, strike ``(C)'' and insert ``(E)''.
       On page 200, line 11, strike ``(D)'' and insert ``(F)''.
       On page 200, line 17, strike ``(C)'' and insert ``(E)''.
       On page 200, line 23, strike ``(C)'' and insert ``(E)''.
       On page 201, line 5, strike ``(C)'' and insert ``(E)''.
       On page 201, line 20, strike ``(C)'' and insert ``(E)''.
       On page 201, line 25, strike ``(C)'' and insert ``(E)''.
       On page 202, line 5, strike ``(C)'' and insert ``(E)''.
       On page 202, line 9, strike ``(E)'' and insert ``(G)''.
       Beginning with page 205, line 4, strike all through page 
     211, line 3.
                                 ______
                                 

               PRESSLER (AND DASCHLE) AMENDMENT NO. 4937

  Mr. SANTORUM (for Mr. Pressler, for himself and Mr. Daschle) proposed 
an amendment to the bill, S. 1956, supra; as follows:

       Beginning on page 70, strike line 21 and all that follows 
     through page 71, line 3, and insert the following:
       (c) Retention Rate.--The provision of the first sentence of 
     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 ``section 13(b)(2) of this Act'' and inserting ``35 
     percent of the value of all funds or allotments recovered or 
     collected pursuant to subsections (b)(1) and (c) of section 
     13 and 20 percent of the value of all funds or allotments 
     recovered or collected pursuant to section 13(b)(2) of this 
     Act''.
                                 ______
                                 

                        SIMON AMENDMENT NO. 4938

  Mr. GRAHAM (for Mr. Simon) proposed an amendment to the bill, S. 
1956, supra; as follows:

       In Section 2403(c)(2)(H), after ``1965'' and before the 
     period at the end, add ``, and Titles III, VII, and VIII of 
     the Public Health Service Act''.
                                 ______
                                 

                 SHELBY (AND OTHERS) AMENDMENT NO. 4939

  Mr. SHELBY (for himself, Mr. Craig, Mr. Grams, Mr. Coats, and Mr. 
Helms) proposed an amendment to the bill, S. 1956, supra; as follows:

       At the appropriate place, insert:

     SEC.   . REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal

[[Page S8380]]

     Revenue Code of 1986 (relating to refundable credits) is 
     amended by redesignating section 35 as section 36 and by 
     inserting after section 34 the following new section:

     SEC. 35. ADOPTION EXPENSES.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this subtitle for the taxable year the amount of the 
     qualified adoption expenses paid or incurred by the taxpayer 
     during such taxable year.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The aggregate amount of qualified 
     adoption expenses which may be taken into account under 
     subsection (a) with respect to the adoption of a child shall 
     not exceed $5,000.
       ``(2) Income limitation.--The amount allowable as a credit 
     under subsection (a) for any taxable year shall be reduced 
     (but not below zero) by an amount which bears the same ratio 
     to the amount so allowable (determined without regard to this 
     paragraph but with regard to paragraph (1)) as--
       ``(A) the amount (if any) by which the taxpayer's adjusted 
     gross income exceeds $60,000, bears to
       ``(B) $40,000.
       ``(3) Denial of double benefit.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for any expense for which a deduction or 
     credit is allowable under any other provision of this 
     chapter.
       ``(B) Grants.--No credit shall be allowed under subsection 
     (a) for any expense to the extent that funds for such expense 
     are received under any Federal, State, or local program.
       ``(c) Qualified Adoption Expenses.--For purposes of this 
     section, the term `qualified adoption expenses' means 
     reasonable and necessary adoption fees, court costs, attorney 
     fees, and other expenses which are directly related to the 
     legal and finalized adoption of a child by the taxpayer and 
     which are not incurred in violation of State or Federal law 
     or in carrying out any surrogate parenting arrangement. The 
     term `qualified adoption expenses' shall not include any 
     expenses in connection with the adoption by an individual of 
     a child who is the child of such individual's spouse.
       ``(d) Married Couples Must File Joint Returns.--Rules 
     similar to the rules of paragraphs (2), (3), and (4) of 
     section 21(e) shall apply for purposes of this section.''
       ``(b) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``, or 
     from section 35 of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking the last item and inserting 
     the following:

``Sec. 35. Adoption expenses.
``Sec. 36. Overpayments of tax.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.

     SEC.   . EXCLUSION OF ADOPTION ASSISTANCE.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by 
     redesignating section 137 as section 138 and by inserting 
     after section 136 the following new section:

     ``SEC. 137. ADOPTION ASSISTANCE.

       ``(a) In General.--Gross income of an employee does not 
     include employee adoption assistance benefits, or military 
     adoption assistance benefits, received by the employee with 
     respect to the employee's adoption of a child.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Employee adoption assistance benefits.--The term 
     `employee adoption assistance benefits' means payment by an 
     employer of qualified adoption expenses with respect to an 
     employee's adoption of a child, or reimbursement by the 
     employer of such qualified adoption expenses paid or incurred 
     by the employee in the taxable year.
       ``(2) Employer and employee.--The terms `employer' and 
     `employee' have the respective meanings given such terms by 
     section 127(c).
       ``(3) Military adoption assistance benefits.--The term 
     `military adoption assistance benefits' means benefits 
     provided under section 1052 of title 10, United States Code, 
     or section 514 of title 14, United States Code.
       ``(4) Qualified adoption expenses.--The term `qualified 
     adoption expenses' means reasonable and necessary adoption 
     fees, court costs, attorney fees, and other expenses which 
     are directly related to the legal and finalized adoption of a 
     child by the taxpayer and which are not incurred in violation 
     of State or Federal law or in carrying out any surrogate 
     parenting arrangement. The term `qualified adoption expenses' 
     shall not include any expenses in connection with the 
     adoption by an individual of a child who is the child of such 
     individual's spouse.
       ``(c) Coordination With Other Provisions.--The Secretary 
     shall issue regulations to coordinate the application of this 
     section with the application of any other provision of this 
     title which allows a credit or deduction with respect to 
     qualified adoption expenses.''
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     striking the item relating to section 137 and inserting the 
     following new items:

``Sec. 137. Adoption assistance.
``Sec. 138. Cross references to other Acts.''

       (c) Effective Date.--The amendments made this section shall 
     apply to taxable years beginning after December 31, 1996.

     SEC.   . WITHDRAWAL FROM IRA FOR ADOPTION EXPENSES.

       (a) In General.--Subsection (d) of section 408 of the 
     Internal Revenue Code of 1986 (relating to tax treatment of 
     distributions) is amended by adding at the end the following 
     new paragraph:
       ``(8) Qualified adoption expenses.--
       ``(A) In general.--Any amount which is paid or distributed 
     out of an individual retirement plan of the taxpayer, and 
     which would (but for this paragraph) be includible in gross 
     income, shall be excluded from gross income to the extent 
     that--
       ``(i) such amount exceeds the sum of--
       ``(I) the amount excludable under section 137, and
       ``(II) any amount allowable as a credit under this title 
     with respect to qualified adoption expenses; and
       ``(ii) such amount does not exceed the qualified adoption 
     expenses paid or incurred by the taxpayer during the taxable 
     year.
       ``(B) Qualified adoption expenses.--For purposes of this 
     paragraph, the term `qualified adoption expenses' has the 
     meaning given such term by section 137.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.

                          ____________________