[House Report 104-686]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-686
_______________________________________________________________________


             PROVIDING FOR THE FURTHER CONSIDERATION OF
 
          H.R. 3734, THE PERSONAL RESPONSIBILITY ACT OF 1996

                                _______
                                

   July 17, 1996.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


     Mr. Goss, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 482]

    The Committee on Rules, having had under consideration 
House Resolution 482, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               BRIEF SUMMARY OF PROVISIONS OF RESOLUTION

    The resolution provides for further consideration of H.R. 
3734, the ``Personal Responsibility Act of 1996'' under a 
modified closed rule. The rule provides an additional two hours 
of general debate divided equally between the chairman and 
ranking minority member of the Committee on the Budget.
    The rule waives all points of order against consideration 
of the bill. The rule also provides for the adoption in the 
House and in the Committee of the Whole of an amendment in the 
nature of a substitute consisting of the text of H.R. 3829 (as 
modified by the amendment printed in part 1 of this report), 
and that the bill, as amended, be considered as original text 
for the purposes of further amendment.
    The rule provides for the consideration of the amendment 
printed in part 2 of this report if offered by the Chairman of 
the Committee on the Budget or his designee, which shall be 
debatable for the time period specified in this report equally 
divided and controlled by a proponent and an opponent, shall 
not be subject to further amendment or to a demand for division 
of the question and against which all points of order are 
waived.
    The rule further provides for the consideration of an 
amendment if offered by the Minority Leader or his designee, 
consisting of the text of H.R. 3832, debatable for one hour 
equally divided and controlled by a proponent and an opponent, 
which shall not be subject to amendment and against which all 
points of order are waived.
    Finally, the rule provides for one motion to recommit, with 
or without instructions.
    An explanation of the amendment modifying the amendment in 
the nature of a substitute (consisting of the text of H.R. 
3829):
    Review of Implementation of State Work Programs. Three 
years after enactment, the Committee on Ways and Means and the 
Committee on Finance shall conduct hearings and other 
appropriate activities to review how the states are 
implementing the work participation standards, the hours of 
work requirements, and other details of the work program. Based 
on this review, the Committees may introduce legislation as 
appropriate to remedy any problems with the state work 
programs.
    Limitation on Amount Transferable to Title XX Programs. 
States may transfer up to 30% of their annual share of the 
block grant under Title IV-A into other block grants; however, 
not more than one-third of this amount may be transferred into 
the Title XX block grant and all funds so transferred must be 
spent on programs and services for children or their families.
    State Spending Beyond 5-Year Limit. Nothing in the federal 
legislation restricts a state from providing assistance using 
state funds to families that have exceeded the 5-year limit on 
federal benefits under the IV-A program.
    Maintenance of Effort. The maintenance of effort 
requirement is 80% but the requirement is reduced to 75% for 
each year a given state meets the work participation 
requirements of Section 407 of the bill.
    Medicaid Contingent on Satisfying Work Requirement. If IV-A 
recipients fail to meet any of the work requirements of the 
bill, states may terminate their medicaid health insurance.
    Child Support Enforcement Fee. The amendment changes the 
distribution of fees collected from non-custodial parents 
authorized under section 4347. Under the amendment, 5% of the 
collected fees would be allocated to the local child support 
office, 45% to the state government and 50% to the federal 
government. The formula in the base text allocates the fee 50-
50 between the state and federal governments (with none of the 
fees going to the local support office).
    The amendment considered as adopted by the rule is as 
follows.

                                 PART 1

    At the end of section 407 of the Social Security Act, as 
proposed to be added by section 4103(a)(1), add the following:
    ``(i) Review of Implementation of State Work Programs.--
During fiscal year 1999, the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the 
Senate shall hold hearings and engage in other appropriate 
activities to review the implementation of this section by the 
States, and shall invite the Governors of the States to testify 
before them regarding such implementation. Based on such 
hearings, such Committees may introduce such legislation as may 
be appropriate to remedy any problems with the State programs 
operated pursuant to this section.
    In section 404(d) of the Social Security Act, as proposed 
to be added by section 4103(a)(1), strike paragraph (2) and 
insert the following:
          ``(2) Limitation on amount transferable to title xx 
        programs.--Notwithstanding paragraph (1), not more than 
        \1/3\ of the total amount paid to a State under this 
        part for a fiscal year that is used to carry out State 
        programs pursuant to provisions of law specified in 
        paragraph (1) may be used to carry out State programs 
        pursuant to title XX.
          ``(3) Applicable rules.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph, any amount 
                paid to a State under this part that is used to 
                carry out a State program pursuant to a 
                provision of law specified in paragraph (1) 
                shall not be subject to the requirements of 
                this part, but shall be subject to the 
                requirements that apply to Federal funds 
                provided directly under the provision of law to 
                carry out the program.
                  ``(B) Exception relating to title xx 
                programs.--All amounts paid to a State under 
                this part that are used to carry out State 
                programs pursuant to title XX shall be used 
                only for programs and services to children or 
                their families.''
    At the end of section 408(a)(8) of the Social Security Act, 
as proposed to be added by section 4103(a)(2), add the 
following:
                  ``(E) Rule of interpretation.--This part 
                shall not be interpreted to prohibit any State 
                from expending State funds not originating with 
                the Federal Government on benefits for children 
                or families that have become ineligible for 
                assistance under the State program funded under 
                this part by reason of subparagraph (A).''
    In section 409(a)(7)(B) of the Social Security Act, as 
proposed to be added by section 4103(a)(1), strike clause (ii) 
and insert the following:
                          ``(ii) Applicable percentage.--The 
                        term `applicable percentage' means for 
                        fiscal years 1997 through 2001, 80 
                        percent (or, if the State meets the 
                        requirements of section 407(a) for the 
                        fiscal year, 75 percent) reduced (if 
                        appropriate) in accordance with 
                        subparagraph (C)(ii).''
    In section 1931(a) of the Social Security Act, as proposed 
to be inserted by section 4115(a)(2)
          (1) in paragraph (1), strike ``through (4)'' and 
        insert ``through (5)'',
          (2) in paragraph (3), strike ``and'' at the end,
          (3) in paragraph (4), strike the period at the end 
        and insert ``; and'', and
          (4) insert after paragraph (4) the following;
          ``(5) a State may terminate medical assistance under 
        this title for an individual because the individual 
        fails to meet any requirement imposed pursuant to 
        section 407 if the individual was eligible for the 
        medical assistance--
                  ``(A) on the basis of receipt of assistance 
                under a State program funded under part A of 
                title IV, or
                  ``(B) pursuant to paragraph (1), on the basis 
                that the individual meets the requirements for 
                receipt of aid or assistance under the State 
                plan under part A of title IV (as in effect on 
                July 16, 1996).''
    In paragraph (31)(B) of section 454 of the Social Security 
Act, as proposed to be added by section 4347(3)--
          (1) strike ``and shall'' and insert ``shall''; and
          (2) insert ``, and shall permit the county office of 
        the State agency administering the State program under 
        this part which collected such amounts to retain an 
        amount equal to 5 percent of the amount applied to the 
        payment of such penalties'' before the period.
                              ----------                              


                                 PART 2

  An Amendment To Be Offered by Representative Kasich of Ohio or His 
                   Designee, Debatable for 20 Minutes

    Subsection (o) of section 6 of the Food Stamp Act of 1977 
(7 U.S.C. 2015), as added by section 1033(a), is amended--
          (1) in paragraph (2)--
                  (A) by striking ``, during the preceding 12-
                month period,'',
                  (B) by inserting ``after the effective date 
                of this subsection'' after ``received'', and
                  (C) by striking ``4'' and inserting ``3'', 
                and
          (2) in paragraph (5) by striking subparagraph (B) and 
        making such technical and conforming changes as may be 
        appropriate.
    Section 1033 is amended by striking subsection (b) and 
making such technical and conforming changes as may be 
appropriate.

                                
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