[Congressional Record Volume 142, Number 139 (Tuesday, October 1, 1996)]
[Senate]
[Pages S12092-S12093]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996

  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of Senate bill 2183 introduced earlier 
today by Senator Domenici.
  The PRESIDING OFFICER. The clerk will report.
  The legislation clerk read as follows:

       A bill (S. 2183) to make technical corrections to the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.


                     Welfare Amendment Description

  Mr. DOMENICI. Mr. President, this bill would clarify congressional 
intent and allow all States, regardless of when the State opts to start 
the new block grant program, access to contingency funds if they 
qualify. The welfare bill limits funds available to a State in 1997 to 
the State's block grant amount, but requires a State of have an 
approved welfare reform plan before being eligible for a contingency 
fund payment.
  Prior to opting into the new Temporary Assistance for Needy Families 
[TANF] Program, the State must operate under the current law Aid to 
Families with Dependent Children [AFDC] entitlement program. There are 
a handful of States that have rising caseloads and rising unemployment 
that normally would be eligible for the contingency fund. The 
authorizing committees, in a letter to HHS Secretary Shalala, indicated 
that congressional intent was that all States should be eligible for 
the contingency fund regardless of when they opt into the new TANF 
program. HHS has stated that legally they cannot give payments out of 
the contingency fund without a legislative change.
  Many States will not be able to opt into the block grant until the 
legislation's effective date of July 1, 1997. For example, New Mexico's 
State Legislature will not convene until January 1997 and the 
legislative process will take time to develop a welfare reform plan.
  Since CBO had assumed States would receive payments from the fund, 
the welfare bill was scored with costs (outlays from the fund.) Since 
this legislation clarifies intent, CBO scored no cost.
  CBO identified a number of States that may have a problem because of 
rising unemployment or rising caseloads. These States include Nevada, 
New Mexico, Alaska, Hawaii, Idaho, and Minnesota. So far it is unclear 
which States will actually have a problem.


                           Amendment No. 5424

  Mr. MURKOWSKI. Mr. President, there is an amendment at the desk by 
Senator Daschle. I ask for its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Alaska [Mr. MURKOWSKI], for Mr. Daschle, 
     proposes an amendment numbered 5424.
       At the appropriate place, insert the following:

     SEC.   . EXTENSION OF NORTHERN GREAT PLAINS RURAL DEVELOPMENT 
                   COMMISSION.

       Section 11 of the Northern Great Plains Rural Development 
     Act (Public Law 103-318; 7 U.S.C. 2661 note) is amended by 
     striking ``the earlier'' and all that follows through the 
     period at the end and inserting ``September 30, 1997.''.

  Mr. DOMENICI. Mr. President, this amendment is very simple. The 
amendment clarifies congressional intent and allows all States, 
regardless of when they opt into the block grant, access to the 
contingency fund.
  The welfare bill restricts States funds in fiscal year 1997 to the 
block grant amount, even though the effective date for the new program 
is July 1, 1997. States may operate under current AFDC rules until 
then.
  Congress never intended that States have financial difficulties prior 
to starting the new program.
  In fact, most States make money under the block grant because 
caseloads have dropped, so the funding limitation never comes into 
question.
  There are handful of States, including my home State, that have had 
caseload increases since the establishment of the block grant. These 
States could experience a funding shortfall during the transition 
period--a situation not foreseen in the original legislation.
  Congress created the contingency fund for just this problem.
  However, the contingency fund is available only to eligible States 
and HHS' interpretation is that an ``eligible State'' is a State that 
has opted into the block grant.
  Most States do not have full-time legislatures that can convene and 
develop a new welfare plan. For example, New Mexico's Legislature does 
not convene until January 1997. Therefore, it will take time for New 
Mexico's welfare plan to be implemented.
  Both the Finance Committee and Ways and Means wrote a letter to HHS 
advising the agency of congressional intent, but HHS responded by 
saying there must be a legislative change.
  This amendment has no cost attached to it. CBO assumed that all 
States could have access to the funds and as such scored outlays in the 
welfare bill.
  This amendment does not change the way States qualify for the fund--
it is not limited to any particular State--any State that qualifies can 
access the funds as well.
  This amendment has the support of the authorizing committees and the 
administration.
  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the 
amendment be agreed to, the bill be advanced to third reading and 
passed, and the motion to reconsider be laid upon the table, all 
without further action, or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 5424) was agreed to.
  The bill (S. 2183), as amended, was passed, as follows:

                                S. 2183

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. TECHNICAL CORRECTIONS TO THE PERSONAL 
                   RESPONSIBILITY AND WORK OPPORTUNITY 
                   RECONCILIATION ACT OF 1996.

       (a) Clarification of Limitation on Certain Federal 
     Obligations for 1997.--Section 116(b)(1)(B)(ii)(II) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 is amended--
       (1) in item (aa), by striking ``the State family assistance 
     grant'' and inserting ``the sum of the State family 
     assistance grant and the amount, if any, that the State would 
     have been eligible to be paid under the Contigency Fund for 
     State Welfare Programs established under section 403(b) of 
     the Social Security Act (as amended by section 103(a)(1) of 
     this Act), during the period beginning on October 1, 1996, 
     and ending on the date the Secretary of Health and Human 
     Services first receives from the State a plan described in 
     section 402(a) of the Social Security Act (as so amended) if, 
     with respect to such State, the effective date of this Act 
     under subsection (a)(1) were August 22, 1996,''; and
       (2) in item (bb)--
       (A) by inserting ``sum of the'' before ``State family 
     assistance grant''; and
       (B) by striking the period and inserting ``, and the 
     amount, if any, that the State would have been eligible to be 
     paid under the Contingency Fund for State Welfare Programs 
     established under section 403(b) of the Social Security Act 
     (as amended by section 103(a)(1) of this Act), during the 
     period beginning on October 1, 1996, and ending on the date 
     the Secretary of Health and Human Services first receives 
     from the State a plan described in section 402(a) of the 
     Social Security Act (as so amended) if, with respect to such 
     State, the effective date of this Act under subsection (a)(1) 
     were August 22, 1996.''.
       (b) Corrections Related to the Contingency Fund for State 
     Welfare Programs.--Section 403(b)(4)(A) of the Social 
     Security Act, as amended by section 103(a)(1) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996, is amended--
       (1) in clause (i)(II), by striking ``minus any Federal 
     payment with respect to such child care expenditures''; and

[[Page S12093]]

       (2) in clause (ii)(I)--
       (A) by inserting ``the sum of'' before ``the 
     expenditures''; and
       (B) by inserting ``, and any additional qualified State 
     expenditures, as defined in section 409(a)(7)(B)(i), for 
     child care assistance made under the Child Care and 
     Development Block Grant Act of 1990'' before the semicolon.
       (c) Clarification of Heading.--The heading of section 
     116(b)(1) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 is amended by inserting ``; 
     limitation on fiscal years 1996 and 1997 payments'' after 
     ``date''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of and the 
     amendments made by the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996.

     SEC. 2. EXTENSION OF NORTHERN GREAT PLAINS RURAL DEVELOPMENT 
                   COMMISSION.

       Section 11 of the Northern Great Plains Rural Development 
     Act (Public Law 103-318; 7 U.S.C. 2661 note) is amended by 
     striking ``the earlier'' and all that follows through the 
     period at the end and inserting ``September 30, 1997.''.

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